<Page>
OMB APPROVAL
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07843
--------------------------------------------
J.P. Morgan Mutual Fund Select Group
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
522 Fifth Avenue, New York, NY 10036
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(Address of principal executive offices) (Zip code)
BISYS Fund Services, 3435 Stelzer Road, Columbus, OH 43219
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(Name and address of agent for service)
Registrant's telephone number, including area code: 1-800-348-4782
-----------------------------
Date of fiscal year end: October 31, 2003
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Date of reporting period: November 1, 2002 through April 30, 2003
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Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form
N-CSR, and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Include a copy of the report transmitted to stockholders pursuant to Rule
30e-1 under the Act (17 CFR 270.30e-1).
<Page>
[GRAPHIC]
SEMI-ANNUAL REPORT APRIL 30, 2003 (UNAUDITED)
JPMORGAN FUNDS
INTERNATIONAL EQUITY FUNDS
FLEMING EUROPEAN FUND
FLEMING JAPAN FUND
FLEMING INTERNATIONAL GROWTH FUND
FLEMING INTERNATIONAL VALUE FUND
FLEMING INTERNATIONAL OPPORTUNITIES FUND
FLEMING EMERGING MARKETS EQUITY FUND
FLEMING ASIA EQUITY FUND
FLEMING INTERNATIONAL EQUITY FUND
[JPMORGAN FLEMING ASSET MANAGEMENT LOGO]
<Page>
<Table>
President's Letter 1
Fund Commentaries
Fleming European Fund 3
Fleming Japan Fund 6
Fleming International Growth Fund 9
Fleming International Value Fund 12
Fleming International Opportunities Fund 15
Fleming Emerging Markets Equity Fund 18
Fleming Asia Equity Fund 21
Fleming International Equity Fund 24
Portfolio of Investments 27
Financial Statements 57
Notes to Financial Statements 69
Financial Highlights 90
</Table>
HIGHLIGHTS
- "Baghdad bounce" revives international markets
- International equity returns aided by weak dollar
- Highly variable market performances
- Earnings expansion key to equity price rises
Investments in a Fund are not bank deposits or obligations of, or guaranteed or
endorsed by, any bank and are not insured or guaranteed by the FDIC, the Federal
Reserve Board or any other government agency. You could lose money if you sell
when the Fund's share price is lower than when you invested.
Past performance is no guarantee for future performance. The general market
views expressed in this report are opinions based on current market conditions
and are subject to change without notice. These views are not intended to
predict the future performance of a Fund or the securities markets. References
to specific securities and their issuers are for illustrative purposes only and
are not intended to be, and should not be interpreted as, recommendations to
purchase or sell such securities. Such views are not meant as investment advice
and may not be relied on as an indication of trading intent on behalf of any
Fund.
Prospective investors should refer to the Fund's prospectus for a discussion of
the Fund's investment objective, strategies and risks. Call JPMorgan Funds
Service Center at (800) 348-4782 for a prospectus containing more complete
information about a Fund including management fees and other expenses. Please
read it carefully before investing.
JPMorgan Funds are distributed by J.P. Morgan Fund Distributors, Inc.
<Page>
JPMORGAN INTERNATIONAL EQUITY FUNDS
PRESIDENT'S LETTER JUNE 2, 2003
DEAR SHAREHOLDER:
We are pleased to present this semi-annual report for the JPMorgan Fleming
International Equity Funds. Inside, you'll find information detailing the
performance of the Funds for the six months ended April 30, 2003, along with a
report from the Portfolio Managers.
SWIFT WAR DRIVES POSITIVE RETURNS
The past few months served as a reminder of the old investment maxim "buy when
the shooting starts." After months of uncertainty, equity markets around the
world started to rally in early March, once it became clear that war in Iraq was
inevitable. In the weeks that followed, oil prices fell, reducing the threat
that war in Iraq would have serious economic ramifications. Equities retraced
much of their earlier losses to the relief of investors.
Even so, the performance of international markets was highly variable. Broadly
speaking, Europe outperformed Asia, where geopolitical worries, the emergence of
SARS and a weak Japanese economy all held back markets. The broad-based MSCI
EAFE Index of international markets rose 1.8% in U.S. dollar terms for the six
months, which compares with an appreciation of 4.5% for the S&P 500 Index. It
should be noted that the MSCI EAFE return benefited from the sustained fall of
the U.S. dollar during the period.
Economically, growth continued to be poor almost everywhere, with fears of
deflation stalking Japan in particular, and Germany to a lesser extent. Perhaps
the most positive sign was that corporate earnings did not disappoint, although
there are no expectations of large rebounds in earnings.
VARIABLE PERFORMANCES
Within the international arena, different markets posted a considerable variety
of returns. At one extreme, the MSCI EMF Latin America Index rose by 24.5%,
while in Asia the MSCI Japan Index fell 7.3%. Brazil performed exceptionally
well with high hopes for fiscal reform from the Lula government. Meanwhile,
Japan suffered as economic growth remained flat and pension funds sold their
blue-chip stocks for technical reasons.
OUTLOOK
Following the end of the war, the world's financial markets are more relaxed.
There are, however, some issues that still need to be resolved before equities
can resume an upward course. These include: lack of economic growth, deflation
1
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concerns, U.S. equity market valuations, excess capacity and a debt ridden U.S.
consumer. The key to a strong and prolonged rise in prices is resumption in
corporate earnings growth -- both in the United States and international
markets.
The portfolio management team and all of us here at JPMorgan Fleming Asset
Management thank you for your continued business and anticipate serving your
investment needs for many years to come. Should you have any questions, please
feel free to contact your financial advisor or the JPMorgan Funds Service Center
at 1-800-348-4782.
Sincerely yours,
/s/ George C.W. Gatch
George C.W. Gatch
President
JPMorgan Funds
International investing involves a greater degree of risk and increased
volatility. Changes in currency exchange rates and differences in accounting and
taxation policies outside the U.S. can raise or lower returns. Also, some
overseas markets may not be as politically and economically stable as the United
States and other nations.
2
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JPMORGAN FLEMING EUROPEAN FUND
As of April 30, 2003
Q. HOW DID THE FUND PERFORM?
A. JPMorgan Fleming European Fund, which seeks capital appreciation from a
portfolio of European stocks, returned 4.7% (Class A Shares, without sales
charge) in the six months ended April 30, 2003. This compares with a rise of
4.2% for the MSCI Europe Index (in U.S. dollars).
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK?
A. The Fund slightly outperformed its benchmark chiefly due to judicious and
timely stock selection among oil, telecommunications, utilities and cyclical
companies.
For most of the period, the Fund maintained an overweight exposure to oil
producers, where the combination of cheap valuations and rising oil prices
proved very attractive. Holdings in Norwegian producer Statoil ASA, Finnish
supplier Fortum OYJ and Spanish company Repsol worked particularly well as all
three benefited from low multiples, high dividend yields and earnings upgrades.
In telecommunications, overweight positions in many operators were established
during the final quarter of 2002 as the sector began to report improved
quarterly earnings. Holdings in Scandinavian operators TDC and TeliaSonera AB
added to performance.
Midway through the review period, we increased exposure to the Utilities sector,
where cheap valuations juxtaposed with strong earnings upgrades led us to
identify opportunities. Holdings such as Scottish Power from the U.K., Endesa SA
from Spain, and U.K. water company Severn Trent PLC all worked well.
During April we moved into cyclical companies, many of which are generating
strong earnings growth yet remain on attractive valuations. We found
opportunities in both growth and value cyclical companies, including
consumer-related stocks like French women's clothing retailer Etam Developpement
SA, and media companies such as Spanish telephone directory publisher Telefonica
Publicidad e Informacion.
Q. HOW WAS THE FUND MANAGED?
A. The Fund seeks to invest in the best European growth and value stocks,
focusing only on those stocks that we have identified as the most attractive. No
company is owned simply to reduce risk against the benchmark. Instead, risk
continues to be managed by holding a large number of stocks (50-100) and by
ensuring that the fund always has positive tilts to both growth and value
compared to the broad market.
(UNAUDITED)
3
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[CHART]
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
<Table>
Germany 17.40%
United Kingdom 16.80%
France 13.30%
Italy 12.20%
The Netherlands 4.90%
Finland 4.70%
Sweden 4.50%
Portugal 4.40%
Spain 4.40%
Austria 4.00%
Norway 3.80%
Denmark 2.80%
Greece 2.10%
Belgium 2.00%
Ireland 2.00%
Croatia 0.60%
Switzerland 0.10%
</Table>
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. FRANCE TELECOM (FRANCE) (4.3%)
2. FORTUM OYJ (FINLAND) (4.0%)
3. SCHWARZ PHARMA AG (GERMANY) (3.6%)
4. BT GROUP PLC (UNITED KINGDOM) (3.4%)
5. DEUTSCHE TELEKOM AG (GERMANY) (3.3%)
6. FRESENIUS MEDICAL CARE AG (GERMANY) (2.9%)
7. SEAT-PAGINE GIALLE SPA (ITALY) (2.7%)
8. VINCI SA (FRANCE) (2.7%)
9. TELEKOM AUSTRIA AG (AUSTRIA) (2.6%)
10. SAAB AB, CLASS B (SWEDEN) (2.5%)
TOP 10 EQUITY HOLDINGS COMPRISED 32.0% OFTHE PORTFOLIO'S MARKET VALUE OF
INVESTMENTS ($18,148,345). AS OF APRIL 30, 2003, THE FUND HELD 82 EQUITY
HOLDINGS. PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME.
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
SINCE
INCEPTION
1 YEAR 3 YEARS 5 YEARS (11/2/95)
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Class A Shares
Without Sales Charge (8.84%) (9.96%) (0.17%) 9.79%
With Sales Charge* (14.10%) (11.72%) (1.35%) 8.93%
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Class B Shares
Without CDSC (9.51%) (10.63%) (0.90%) 9.00%
With CDSC** (14.01%) (11.43%) (1.25%) 9.00%
- --------------------------------------------------------------------------------
Class C Shares
Without CDSC (9.57%) (10.67%) (0.93%) 8.98%
With CDSC*** (10.47%) (10.67%) (0.93%) 8.98%
- --------------------------------------------------------------------------------
Institutional Shares (8.31%) (9.65%) 0.04% 9.95%
- --------------------------------------------------------------------------------
Select Shares (8.74%) (9.88%) (0.12%) 9.83%
- --------------------------------------------------------------------------------
</Table>
* Sales Charge for Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period,
3% CDSC for the three year period, 2% CDSC for the five year period and 0% for
the period since inception.
*** Assumes a 1% CDSC for the one year period and 0% CDSC thereafter.
(UNAUDITED)
4
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[CHART]
LIFE OF FUND PERFORMANCE (11/2/95 TO 4/30/03)
<Table>
<Caption>
JPMORGAN FLEMING EUROPEAN FUND (CLASS A SHARES) MSCI EUROPE INDEX LIPPER EUROPEAN FUNDS INDEX
11/2/95 $ 9,425 $ 10,000 $ 10,000
$ 9,444 $ 10,000 $ 10,000
$ 9,598 $ 10,317 $ 10,210
$ 9,664 $ 10,384 $ 10,287
$ 10,013 $ 10,573 $ 10,633
$ 10,333 $ 10,700 $ 10,887
4/30/96 $ 10,532 $ 10,777 $ 11,097
$ 10,701 $ 10,860 $ 11,378
$ 11,099 $ 10,979 $ 11,483
$ 10,720 $ 10,842 $ 11,175
$ 10,966 $ 11,164 $ 11,540
$ 11,223 $ 11,399 $ 11,686
$ 11,385 $ 11,663 $ 11,930
$ 11,936 $ 12,254 $ 12,433
$ 12,296 $ 12,492 $ 12,711
$ 12,451 $ 12,526 $ 12,843
$ 12,730 $ 12,691 $ 13,036
$ 12,988 $ 13,101 $ 13,341
4/30/97 $ 12,905 $ 13,036 $ 13,172
$ 13,060 $ 13,592 $ 13,693
$ 13,836 $ 14,272 $ 14,338
$ 14,363 $ 14,941 $ 14,758
$ 13,732 $ 14,088 $ 14,035
$ 14,788 $ 15,455 $ 15,298
$ 14,592 $ 14,694 $ 14,659
$ 14,541 $ 14,921 $ 14,769
$ 14,924 $ 15,465 $ 15,113
$ 15,760 $ 16,108 $ 15,676
$ 17,182 $ 17,368 $ 16,968
$ 18,580 $ 18,605 $ 18,253
4/30/98 $ 19,142 $ 18,966 $ 18,672
$ 19,643 $ 19,351 $ 19,141
$ 19,824 $ 19,564 $ 19,197
$ 20,603 $ 19,951 $ 19,563
$ 17,179 $ 17,441 $ 16,738
$ 16,461 $ 16,743 $ 15,801
$ 17,323 $ 18,083 $ 16,906
$ 18,257 $ 19,045 $ 17,869
$ 19,128 $ 19,877 $ 18,702
$ 20,145 $ 19,750 $ 19,035
$ 18,981 $ 19,248 $ 18,479
$ 18,945 $ 19,458 $ 18,531
4/30/99 $ 19,587 $ 20,038 $ 19,061
$ 18,569 $ 19,076 $ 18,369
$ 18,932 $ 19,399 $ 18,835
$ 19,271 $ 19,579 $ 19,152
$ 19,478 $ 19,779 $ 19,307
$ 19,515 $ 19,626 $ 19,096
$ 20,024 $ 20,349 $ 19,744
$ 22,727 $ 20,898 $ 21,116
$ 26,025 $ 23,040 $ 23,844
$ 25,715 $ 21,400 $ 23,076
$ 28,207 $ 22,515 $ 26,256
$ 27,615 $ 23,057 $ 26,275
E4/30/00 $ 25,999 $ 22,040 $ 24,851
$ 25,050 $ 21,860 $ 24,349
$ 25,396 $ 22,330 $ 24,926
$ 24,865 $ 21,972 $ 24,734
$ 24,656 $ 21,713 $ 24,828
$ 23,423 $ 20,697 $ 23,547
$ 22,053 $ 20,540 $ 22,831
$ 20,869 $ 19,745 $ 21,609
$ 22,194 $ 21,105 $ 23,232
$ 22,125 $ 21,116 $ 23,163
$ 20,893 $ 19,262 $ 21,210
$ 18,906 $ 17,825 $ 19,348
E4/30/01 $ 19,838 $ 19,092 $ 20,629
$ 19,413 $ 18,160 $ 19,834
$ 18,454 $ 17,474 $ 19,027
$ 18,139 $ 17,518 $ 18,835
$ 18,632 $ 17,062 $ 18,351
$ 17,181 $ 15,359 $ 16,292
$ 17,756 $ 15,848 $ 16,862
$ 19,386 $ 16,483 $ 17,592
$ 19,454 $ 16,905 $ 17,967
$ 18,838 $ 16,021 $ 17,180
$ 19,331 $ 16,018 $ 17,192
$ 20,249 $ 16,886 $ 18,052
E4/30/02 $ 20,824 $ 16,758 $ 18,003
$ 21,399 $ 16,706 $ 18,014
$ 21,070 $ 16,126 $ 17,531
$ 19,713 $ 14,331 $ 15,699
$ 19,315 $ 14,328 $ 15,594
$ 17,918 $ 12,443 $ 13,662
$ 18,125 $ 13,646 $ 14,708
$ 19,481 $ 14,316 $ 15,404
$ 17,976 $ 13,796 $ 14,835
$ 17,576 $ 13,144 $ 14,187
$ 17,121 $ 12,715 $ 13,645
$ 17,288 $ 12,526 $ 13,479
E4/30/03 $ 18,982 $ 14,216 $ 15,173
</Table>
Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund commenced operations on 11/2/95.
Returns for the Institutional and Select Shares prior to 9/10/01 (offering date
of the Institutional and Select Shares) are calculated using the historical
expenses of the Class A Shares, which are higher than the expenses of the
Institutional and Select Shares.
Returns for the Class B Shares prior to 11/3/95 (offering date of the Class B
Shares) are calculated using the historical expenses of the Class A Shares,
which are lower than the expenses of the Class B Shares.
Returns for the Class C Shares prior to 11/1/98 (offering date of the Class C
Shares) are calculated using the historical expenses of the Class A Shares,
which are lower than the expenses of the Class C Shares.
The graph illustrates comparative performance for $10,000 invested in Class A
Shares of the JPMorgan Fleming European Fund, MSCI Europe Index, and Lipper
European Funds Index from November 2, 1995 to April 30, 2003. The performance of
the Fund assumes reinvestment of all dividends and capital gains and includes a
sales charge. The performance of the indices reflects an initial investment at
the end of the month following the Fund's inception. The performance of the
indices does not include a sales charge and has been adjusted to reflect
reinvestment of all dividends and capital gains of the securities included in
the benchmark. The MSCI Europe Index is a replica (or model) of the performance
of the European markets. The Lipper European Funds Index represents the total
returns of the funds in the indicated category, as defined by Lipper, Inc.
Investors cannot invest directly in an index.
Class A Shares have a $2,500 minimum initial deposit and carry a 5.75% sales
charge.
Certain fees and expenses of the Fund are currently being waived and reimbursed
as described in the prospectus. Had the expenses not been subsidized or waived,
returns would have been lower. Also, all performance shown in this section does
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or redemption of fund shares.
(UNAUDITED)
5
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JPMORGAN FLEMING JAPAN FUND
As of April 30, 2003
Q. HOW DID THE FUND PERFORM?
A. JPMorgan Fleming Japan Fund, which seeks to provide long-term capital
appreciation from a portfolio of Japanese stocks, declined 6.3% (Class A Shares,
without sales charge) in the six months ended April 30, 2003. This compares with
a fall of 7.3% for the MSCI Japan Index (in U.S. dollars).
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK?
A. While this was a period unsuited to its preference for investing in the
highest quality blue-chip Japanese companies, the Fund succeeded in
outperforming its MSCI Japan Index benchmark by switching a significant
percentage of the portfolio into smaller companies. Consequently, it minimized
capital losses during a period of market uncertainty.
The Fund was able to acquire a number of undervalued smaller companies that were
trading on low valuations and generating strong earnings growth. As a result,
they either rose in price or at least were resilient to the broader equity
market's falls. Examples of these smaller companies include: Geo Co., LTD, a
video rental chain (up 58% in Yen); Goodwill Group, Inc., Japan's largest
supplier of temporary labor (up 6.3% in Yen); and Phoenix Electric Co., LTD, a
supplier of lighting equipment (up 12% in Yen since listing in December).
There were considerable share-price losses among the high-quality blue-chip
companies. The share prices of companies such as Canon, Inc. and Honda Motor
Co., LTD, which make a substantial percentage of their sales in the United
States and Europe, were depressed by data suggesting weak consumer demand in the
buildup to the Iraq war. Those blue chips generally reported earnings for the
period slightly ahead of investors' expectations.
Blue-chip stock prices were also harmed by a measure that encouraged pension
fund managers to sell stocks and instead participate in a pooled government run
pension scheme.
Q. HOW WAS THE FUND MANAGED?
A. While the portfolio management team remains convinced that Japan's high
quality blue chip stocks may outperform over the long-term, much of the Fund was
switched into smaller companies to suit the short-term mood of the market. The
Fund's top holdings remain names such as Canon, Inc., NTT Docomo, Inc., Fuji
Photo Film Co., LTD and Shin-Etsu Chemical Co., LTD. However, a fifth of the
fund's holdings have a capitalization of less than $425 million.
(UNAUDITED)
6
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[CHART]
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
<Table>
Industrial Products & Services 34.70%
Consumer Goods & Services 34.00%
Technology 26.00%
Telecommunications 5.30%
</Table>
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. CANON, INC. (5.8%)
2. NTT DOCOMO, INC. (4.0%)
3. FUJI PHOTO FILM CO., LTD (3.7%)
4. SHIN-ETSU CHEMICAL CO., LTD (3.4%)
5. SMC CORP. (3.2%)
6. FANUC LTD (2.9%)
7. MABUCHI MOTOR CO., LTD (2.7%)
8. TDK CORP. (2.5%)
9. BRIDGESTONE CORP. (2.4%)
10. DAIKIN INDUSTRIES LTD (2.4%)
TOP 10 EQUITY HOLDINGS COMPRISED 33.0% OF THE PORTFOLIO'S MARKET VALUE OF
INVESTMENTS ($460,877). AS OF APRIL 30, 2003, THE FUND HELD 57 EQUITY HOLDINGS.
PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME.
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
SINCE
INCEPTION
1 YEAR 3 YEARS 5 YEARS 11/2/95)
- --------------------------------------------------------------------------------
Class A Shares
Without Sales Charge (26.55%) (25.18%) (12.19%) (10.15%)
With Sales Charge* (30.72%) (26.64%) (13.24%) (10.86%)
- --------------------------------------------------------------------------------
Class B Shares
Without CDSC (27.29%) (25.78%) (12.79%) (10.79%)
With CDSC** (30.92%) (26.53%) (13.14%) (10.79%)
- --------------------------------------------------------------------------------
</Table>
* Sales Charge for Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period,
3% CDSC for the three year period, 2% CDSC for the five year period and 0% for
the period since inception.
(UNAUDITED)
7
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[CHART]
LIFE OF FUND PERFORMANCE (11/2/95 TO 4/30/03)
<Table>
<Caption>
JPMORGAN FLEMING JAPAN TOKYO STOCK EXCHANGE
FUND (CLASS A SHARES) MSCI JAPAN INDEX (TOPIX) 1ST SECTION INDEX LIPPER JAPAN EQUITY FUNDS AVERAGE
11/2/95 $ 9,425 $ 10,000 $ 10,000 $ 10,000
$ 9,425 $ 10,000 $ 10,000 $ 10,000
$ 9,679 $ 10,511 $ 10,479 $ 10,444
$ 9,802 $ 10,373 $ 10,338 $ 10,459
$ 9,604 $ 10,189 $ 10,168 $ 10,243
$ 10,038 $ 10,548 $ 10,544 $ 10,618
4/30/96 $ 10,518 $ 11,149 $ 11,246 $ 11,294
$ 10,057 $ 10,574 $ 10,697 $ 10,888
$ 10,179 $ 10,630 $ 10,744 $ 11,064
$ 9,699 $ 10,154 $ 10,216 $ 10,576
$ 9,190 $ 9,700 $ 9,782 $ 10,173
$ 9,473 $ 10,036 $ 10,086 $ 10,372
$ 8,879 $ 9,363 $ 9,409 $ 9,784
$ 8,973 $ 9,541 $ 9,479 $ 9,873
$ 8,605 $ 8,882 $ 8,749 $ 9,426
$ 8,470 $ 7,916 $ 7,806 $ 8,916
$ 8,768 $ 8,101 $ 7,957 $ 9,068
$ 8,633 $ 7,834 $ 7,696 $ 8,906
4/30/97 $ 8,951 $ 8,119 $ 7,880 $ 9,257
$ 9,779 $ 9,015 $ 8,853 $ 10,384
$ 10,260 $ 9,688 $ 9,423 $ 10,865
$ 10,789 $ 9,393 $ 9,050 $ 11,054
$ 9,573 $ 8,579 $ 8,239 $ 9,835
$ 9,718 $ 8,449 $ 8,006 $ 9,777
$ 9,187 $ 7,662 $ 7,392 $ 9,121
$ 9,033 $ 7,191 $ 6,831 $ 8,677
$ 8,745 $ 6,780 $ 6,293 $ 8,224
$ 8,643 $ 7,385 $ 6,961 $ 8,858
$ 8,368 $ 7,423 $ 7,016 $ 8,782
$ 8,205 $ 6,918 $ 6,572 $ 8,397
4/30/98 $ 8,094 $ 6,891 $ 6,481 $ 8,456
$ 8,185 $ 6,512 $ 6,172 $ 8,248
$ 8,114 $ 6,603 $ 6,209 $ 8,253
$ 8,022 $ 6,516 $ 6,122 $ 8,423
$ 7,279 $ 5,773 $ 5,489 $ 7,752
$ 7,086 $ 5,615 $ 5,390 $ 7,495
$ 6,526 $ 6,557 $ 6,248 $ 7,983
$ 6,821 $ 6,857 $ 6,541 $ 8,586
$ 7,025 $ 7,122 $ 6,777 $ 8,869
$ 6,913 $ 7,174 $ 6,807 $ 8,942
$ 6,689 $ 7,017 $ 6,641 $ 8,896
$ 7,616 $ 7,990 $ 7,562 $ 10,153
4/30/99 $ 7,921 $ 8,323 $ 7,917 $ 10,718
$ 7,575 $ 7,854 $ 7,527 $ 10,384
$ 8,206 $ 8,598 $ 8,270 $ 11,994
$ 8,929 $ 9,456 $ 9,108 $ 13,284
$ 9,132 $ 9,389 $ 9,393 $ 13,985
$ 9,631 $ 9,959 $ 10,030 $ 14,800
$ 10,018 $ 10,387 $ 10,621 $ 15,395
$ 10,537 $ 10,832 $ 11,386 $ 16,881
$ 11,260 $ 11,505 $ 11,928 $ 18,235
$ 10,476 $ 11,007 $ 11,311 $ 17,336
$ 10,394 $ 10,722 $ 11,094 $ 17,641
$ 10,934 $ 11,606 $ 11,830 $ 18,592
E4/30/00 $ 10,089 $ 10,733 $ 10,852 $ 16,866
$ 9,193 $ 10,187 $ 10,060 $ 15,601
$ 9,682 $ 10,887 $ 10,704 $ 16,625
$ 8,460 $ 9,633 $ 9,436 $ 14,568
$ 9,152 $ 10,256 $ 10,086 $ 15,747
$ 8,979 $ 9,746 $ 9,711 $ 14,900
$ 8,266 $ 9,181 $ 9,017 $ 13,593
$ 8,083 $ 8,800 $ 8,777 $ 13,021
$ 7,442 $ 8,265 $ 8,022 $ 11,879
$ 7,422 $ 8,167 $ 7,980 $ 11,795
$ 6,800 $ 7,799 $ 7,556 $ 10,899
$ 6,739 $ 7,567 $ 7,306 $ 10,745
E4/30/01 $ 7,146 $ 8,081 $ 7,929 $ 11,616
$ 7,238 $ 8,062 $ 7,908 $ 11,489
$ 6,759 $ 7,581 $ 7,481 $ 10,867
$ 6,240 $ 7,017 $ 6,835 $ 9,894
$ 5,976 $ 6,841 $ 6,652 $ 9,407
$ 5,375 $ 6,202 $ 6,184 $ 8,559
$ 5,385 $ 6,189 $ 6,229 $ 8,792
$ 5,599 $ 6,257 $ 6,140 $ 8,822
$ 5,253 $ 5,834 $ 5,668 $ 8,308
$ 4,937 $ 5,377 $ 5,229 $ 7,654
$ 5,212 $ 5,601 $ 5,454 $ 7,937
$ 5,569 $ 5,922 $ 5,787 $ 8,483
E4/30/02 $ 5,752 $ 6,266 $ 6,096 $ 8,805
$ 6,017 $ 6,657 $ 6,529 $ 9,302
$ 5,701 $ 6,310 $ 6,186 $ 8,790
$ 5,212 $ 5,871 $ 5,831 $ 8,169
$ 5,080 $ 5,809 $ 5,749 $ 8,035
$ 4,764 $ 5,549 $ 5,496 $ 7,610
$ 4,510 $ 5,163 $ 5,113 $ 7,094
$ 4,754 $ 5,372 $ 5,294 $ 7,343
$ 4,622 $ 5,234 $ 5,165 $ 7,114
$ 4,531 $ 5,022 $ 4,976 $ 6,827
$ 4,541 $ 5,051 $ 5,035 $ 6,874
$ 4,195 $ 4,822 $ 4,863 $ 6,557
E4/30/03 $ 4,225 $ 4,784 $ 4,888 $ 6,567
</Table>
Source: Lipper AnalyticalServices, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund commenced operations on 11/2/95.
Returns for the Class B Shares prior to 11/3/95 (offering date of the Class B
Shares) are calculated using the historical expenses of the Class A Shares,
which are lower than the expenses of the Class B Shares. The graph illustrates
comparative performance for $10,000 invested in Class A Shares of the JPMorgan
Fleming Japan Fund, MSCI Japan Index, Tokyo Stock Exchange (TOPIX) 1st Section
Index and Lipper Japan Equity Funds Average from November 2, 1995 to April 30,
2003. The performance of the Fund assumes reinvestment of all dividends and
capital gains and includes a sales charge. The performance of the indices
reflects an initial investment at the end of the month following the Fund's
inception. The performance of the indices does not include a sales charge and
has been adjusted to reflect reinvestment of all dividends and capital gains of
the securities included in the benchmark. The MSCI Japan Index is a replica (or
model) of the performance of the Japan Equity Markets. The Tokyo Stock Exchange
(TOPIX) 1st Section Index, also known as the Tokyo Price Index, is an unmanaged
capitalization-weighted index of all companies listed on the First Section of
the Tokyo Stock Exchange. The Lipper Japan Equity Funds Average describes the
average total returns for all of the funds in the indicated category, as defined
by Lipper, Inc. Investors cannot invest directly in an index.
Class A Shares have a $2,500 minimum initial deposit and carry a 5.75% sales
charge.
Certain fees and expenses of the Fund are currently being waived and reimbursed
as described in the prospectus. Had the expenses not been subsidized or waived,
returns would have been lower. Also, all performance shown in this section does
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or redemption of fund shares.
(UNAUDITED)
8
<Page>
JPMORGAN FLEMING INTERNATIONAL GROWTH FUND
As of April 30, 2003
Q. HOW DID THE FUND PERFORM?
A. JPMorgan Fleming International Growth Fund, which seeks to provide long-term
capital appreciation from a portfolio of foreign growth stocks, appreciated 3.0%
(Class A shares, without sales charge) in the six months ended April 30, 2003.
This compares with a rise of 0.6% for the MSCI EAFE Growth Index (in U.S.
dollars).
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK?
A. The Fund outperformed its MSCI EAFE Growth Index benchmark, demonstrating
exceptionally strong performance as the markets rallied from mid-March onward
with relief that the Iraq war had reached a swift conclusion. Many of the stocks
that performed well for the portfolio benefited particularly from increased
confidence in financial markets.
The most direct beneficiaries were European financial stocks such as BNP
Paribas, Nordea AB and Royal Bank of Scotland Group PLC. The stock prices of
these companies bounced with improved perceptions about the quality of their
loan books, increased optimism about capital markets activity, and in sympathy
with stronger equity prices. Another financial stock that made a significant
positive impact was Brazilian bank Unibanco, which rallied in line with the
Brazilian equity market.
Otherwise, performance was boosted by an eclectic group of growth stocks. French
software company Dassault Systemes SA performed well, reporting first quarter
results in excess of market expectations. French basic materials company
Saint-Gobain was a strong performer both as its results demonstrated strong cash
flow, and as investors anticipated increased profits from any pickup in economic
growth. U.K. cellular phone company Vodafone Group PLC also did well as European
telecom stocks recovered from low valuations.
Not all holdings performed well, however. There was weak performance from Asian
growth stocks. Korean stocks Kookmin Bank and Samsung Electronics Co., LTD fell
as North Korea threatened to step up its nuclear program. In Japan, Nikko
Cordial Corp. made a full year loss as a result of the local stock market
malaise. In the U.K., defense contractor BAE Systems PLC warned of cost overruns
and delays on U.K. defense projects. Additionally, Dutch publisher Wolters
Kluwer NV fell significantly after making a downbeat profit outlook.
Q. HOW WAS THE FUND MANAGED?
A. There were only modest changes to the Portfolio during the period. The Fund
continued to be managed using a bottom-up, active approach focusing on
proprietary fundamental research at both the local and global sector levels. It
is diversified across a broad range of countries and industrial sectors to
ensure appropriate diversification.
(UNAUDITED)
9
<Page>
[CHART]
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
<Table>
United Kingdom 31.70%
France 17.10%
Japan 13.80%
Germany 7.40%
South Korea 5.80%
The Netherlands 4.40%
Finland 3.70%
Hong Kong 2.70%
Sweden 2.60%
Switzerland 2.50%
Belgium 2.00%
Italy 1.90%
Spain 1.90%
Taiwan 1.40%
Brazil 1.10%
</Table>
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. VODAFONE GROUP PLC (UNITED KINGDOM) (5.0%)
2. GLAXOSMITHKLINE PLC (UNITED KINGDOM) (4.5%)
3. TOTAL FINA ELF SA (FRANCE) (4.2%)
4. AVENTIS SA (FRANCE) (4.0%)
5. CANON, INC. (JAPAN) (3.8%)
6. ROYAL BANK OF SCOTLAND GROUP PLC (UNITED KINGDOM) (3.7%)
7. NOKIA OYJ (FINLAND) (3.7%)
8. DASSAULT SYSTEMES SA (FRANCE) (3.5%)
9. BG GROUP PLC (UNITED KINGDOM) (3.0%)
10. BARCLAYS PLC (UNITED KINGDOM) (3.0%)
TOP 10 EQUITY HOLDINGS COMPRISED 38.4% OF THE PORTFOLIO'S MARKET VALUE OF
INVESTMENTS ($1,237,697). AS OF APRIL 30, 2003, THE FUND HELD 44 EQUITY
HOLDINGS. PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME.
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
SINCE INCEPTION
1 YEAR (12/29/00)
- -------------------------------------------------------------------
Class A Shares
Without Sales Charge (19.20%) (17.12%)
With Sales Charge* (23.88%) (19.20%)
- -------------------------------------------------------------------
Class B Shares
Without CDSC (19.55%) (17.51%)
With CDSC** (23.57%) (18.58%)
- -------------------------------------------------------------------
</Table>
* Sales Charge for Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period
and 3% CDSC for the period since inception.
(UNAUDITED)
10
<Page>
[CHART]
LIFE OF FUND PERFORMANCE (12/29/00 TO 4/30/03)
<Table>
<Caption>
JPMORGAN FLEMING INTERNATIONAL
GROWTH FUND (CLASS A SHARES) MSCI EAFE GROWTH INDEX LIPPER INTERNATIONAL FUNDS INDEX
E12/29/00 $ 9,425 $ 10,000 $ 10,000
$ 9,425 $ 10,000 $ 10,000
$ 9,595 $ 9,972 $ 10,059
$ 8,624 $ 8,960 $ 9,353
$ 7,907 $ 8,340 $ 8,695
E4/30/01 $ 8,633 $ 8,911 $ 9,224
$ 8,275 $ 8,552 $ 9,001
$ 7,845 $ 8,136 $ 8,747
$ 7,543 $ 7,939 $ 8,520
$ 7,307 $ 7,577 $ 8,348
$ 6,429 $ 6,860 $ 7,438
$ 6,816 $ 7,133 $ 7,640
$ 7,316 $ 7,500 $ 7,925
$ 7,533 $ 7,543 $ 8,066
$ 7,137 $ 7,136 $ 7,740
$ 7,156 $ 7,233 $ 7,848
$ 7,543 $ 7,508 $ 8,264
E4/30/02 $ 7,524 $ 7,548 $ 8,321
$ 7,439 $ 7,563 $ 8,440
$ 7,203 $ 7,368 $ 8,107
$ 6,438 $ 6,583 $ 7,298
$ 6,428 $ 6,532 $ 7,304
$ 5,494 $ 5,964 $ 6,517
$ 5,900 $ 6,301 $ 6,855
$ 6,325 $ 6,486 $ 7,180
$ 6,013 $ 6,335 $ 6,950
$ 5,654 $ 6,022 $ 6,696
$ 5,531 $ 5,892 $ 6,497
$ 5,418 $ 5,830 $ 6,338
E4/30/03 $ 6,080 $ 6,335 $ 6,966
</Table>
Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund commenced operations on 12/29/00.
The graph illustrates comparative performance for $10,000 invested in Class A
Shares of the JPMorgan Fleming International Growth Fund, MSCI EAFE Growth Index
and Lipper International Funds Index from December 29, 2000 to April 30, 2003.
The performance of the Fund assumes reinvestment of all dividends and capital
gains and includes a sales charge. The performance of the indices reflects an
initial investment at the end of the month following the Fund's inception. The
performance of the indices does not include a sales charge and has been adjusted
to reflect reinvestment of all dividends and capital gains of the securities
included in the benchmark. The MSCI EAFE Growth Index is a market
capitalization-weighted index representing all 20 developed markets that make up
that index. The Lipper International Funds Index represents the total returns of
the funds in the indicated category, as defined by Lipper, Inc. Investors cannot
invest directly in an index.
Class A Shares have a $2,500 minimum initial deposit and carry a 5.75% sales
charge.
Certain fees and expenses of the Fund are currently being waived and reimbursed
as described in the prospectus. Had the expenses not been subsidized or waived,
returns would have been lower. Also, all performance shown in this section does
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or redemption of fund shares.
(UNAUDITED)
11
<Page>
JPMORGAN FLEMING INTERNATIONAL VALUE FUND
As of April 30, 2003
Q. HOW DID THE FUND PERFORM?
A. JPMorgan Fleming International Value Fund, which seeks to provide long-term
capital appreciation from a portfolio of foreign value stocks, appreciated 0.8%
(Institutional Shares) in the six months ended April 30, 2003. This compares
with a rise of 1.7% for the Salomon Smith Barney PMI Value EPAC Index (in U.S.
dollars).
Q. WHY DID THE FUND PERFORM THIS WAY?
A. The Fund trailed its SSB PMI Value EPAC Index benchmark by a small margin in
six months when the U.S. dollar-denominated benchmark achieved a small rise
chiefly as a result of dollar weakness. While stock selection was mixed, an
overweight position in the stock markets of East Asia contributed to the small
underperformance.
European financial services companies such as BNP Paribas, Royal Bank of
Scotland Group PLC and Zurich Financial Services performed well. The stock
prices of these companies bounced with improved perceptions about the quality of
loan books, increased optimism about capital markets activity, and in sympathy
with stronger equity prices. In the case of Zurich Financial Services, new
management took decisive action to return the loss making group to profit by
pulling out of non-core businesses. It also launched a successful rights issue.
Iberdrola SA, the Spanish electricity company, was one of the biggest individual
contributors to portfolio performance. The company reported strong profits in
spite of a decline in Spanish wholesale electricity prices. This follows a
recent change in management, which has had a positive impact on the way in which
the group is managed.
From a negative perspective, unpredictable events in Asia caused the Fund's
overweight position to detract from performance. In particular, rising tensions
over North Korea's nuclear ambitions hurt stock prices in South Korea.
Additionally, the outbreak of Severe Acute Respiratory Syndrome (SARS) prevented
stocks in the region from participating in the post Iraq war global equity
market rally. In Hong Kong, the stock price of property, ports and
telecommunications group Wharf Holdings fell as its earnings were judged
particularly vulnerable to SARS.
Q. HOW WAS THE FUND MANAGED?
A. From a geographical perspective, the Fund was overweight in East Asia and
underweight in Japan. Recent stock price falls in East Asia led us to such an
allocation, and we believe the Fund will be well positioned for a
recovery.
(UNAUDITED)
12
<Page>
[CHART]
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
<Table>
United Kingdom 21.60%
Japan 13.60%
The Netherlands 11.80%
Germany 9.40%
Switzerland 8.60%
France 7.20%
Spain 6.40%
Australia 5.00%
Singapore 3.60%
Italy 3.00%
Russia 2.20%
India 1.40%
Brazil 1.30%
South Korea 1.20%
Hong Kong 1.10%
Denmark 1.00%
Belgium 0.90%
United States 0.70%
</Table>
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. IBERDROLA SA (SPAIN) (3.6%)
2. BNP PARIBAS (FRANCE) (3.6%)
3. UNILEVER PLC (UNITED KINGDOM) (3.4%)
4. E.ON AG (GERMANY) (3.3%)
5. ROYAL DUTCH PETROLEUM CO. (THE NETHERLANDS) (3.3%)
6. ING GROEP NV (THE NETHERLANDS) (3.1%)
7. BARCLAYS PLC (UNITED KINGDOM) (3.1%)
8. UBS AG (SWITZERLAND) (3.0%)
9. TELEFONICA SA (SPAIN) (2.8%)
10 AUSTRALIA & NEW ZEALAND BANKING GROUP LTD (AUSTRALIA) (2.8%)
TOP 10 EQUITY HOLDINGS COMPRISED 32.0% OF THE PORTFOLIO'S MARKET VALUE OF
INVESTMENTS ($11,467,714). AS OF APRIL 30, 2003, THE FUND HELD 50 EQUITY
HOLDINGS. PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME.
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- --------------------------------------------------------------------------------
Class A Shares
Without Sales Charge (18.94%) (17.93%) (7.55%) 0.06%
With Sales Charge* (23.62%) (19.52%) (8.64%) (0.53%)
- --------------------------------------------------------------------------------
Class B Shares
Without CDSC (19.37%) (18.11%) (7.67%) (0.01%)
With CDSC** (23.26%) (18.94%) (7.99%) (0.01%)
- --------------------------------------------------------------------------------
Institutional Shares (18.59%) (17.42%) (7.14%) 0.40%
- --------------------------------------------------------------------------------
Select Shares (18.87%) (17.82%) (7.47%) 0.10%
- --------------------------------------------------------------------------------
</Table>
* Sales Charge for Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period,
3% CDSC for the three year period, 2% CDSC for the five year period and 0% for
the ten year period.
(UNAUDITED)
13
<Page>
[CHART]
10-YEAR PERFORMANCE (4/30/93 TO 4/30/03)
<Table>
<Caption>
JPMORGAN FLEMING INTERNATIONAL
VALUE FUND (INSTITUTIONAL SHARES) SSB PMI VALUE EPAC INDEX LIPPER INTERNATIONAL FUNDS INDEX
4/30/93 $ 3,000,000 $ 3,000,000 $ 3,000,000
5/31/93 $ 3,084,300 $ 3,057,900 $ 3,069,300
6/30/93 $ 2,991,154 $ 2,974,419 $ 3,008,835
7/31/93 $ 3,119,176 $ 3,113,920 $ 3,104,215
8/31/93 $ 3,258,603 $ 3,266,190 $ 3,309,714
9/30/93 $ 3,173,879 $ 3,189,761 $ 3,297,468
10/31/93 $ 3,243,704 $ 3,280,670 $ 3,460,363
11/30/93 $ 2,963,448 $ 3,019,856 $ 3,322,986
12/31/93 $ 3,138,292 $ 3,226,113 $ 3,656,282
1/31/94 $ 3,402,222 $ 3,509,365 $ 3,884,068
2/28/94 $ 3,383,170 $ 3,491,467 $ 3,790,462
3/31/94 $ 3,252,918 $ 3,368,568 $ 3,616,859
4/30/94 $ 3,386,613 $ 3,514,764 $ 3,712,706
5/31/94 $ 3,408,964 $ 3,510,897 $ 3,707,137
6/30/94 $ 3,408,964 $ 3,577,253 $ 3,648,564
7/31/94 $ 3,447,145 $ 3,617,676 $ 3,760,940
8/31/94 $ 3,488,510 $ 3,694,371 $ 3,891,068
9/30/94 $ 3,364,319 $ 3,588,712 $ 3,790,679
10/31/94 $ 3,443,717 $ 3,726,878 $ 3,858,532
11/30/94 $ 3,281,518 $ 3,533,825 $ 3,678,339
12/31/94 $ 3,326,803 $ 3,553,968 $ 3,629,417
1/31/95 $ 3,198,056 $ 3,423,893 $ 3,449,398
2/28/95 $ 3,162,557 $ 3,394,105 $ 3,448,363
3/31/95 $ 3,310,565 $ 3,620,831 $ 3,539,055
4/30/95 $ 3,407,234 $ 3,755,526 $ 3,669,292
5/31/95 $ 3,339,770 $ 3,724,731 $ 3,705,251
6/30/95 $ 3,262,622 $ 3,653,961 $ 3,719,331
7/31/95 $ 3,471,756 $ 3,898,045 $ 3,923,894
8/31/95 $ 3,407,528 $ 3,734,328 $ 3,857,580
9/30/95 $ 3,436,492 $ 3,822,458 $ 3,922,002
10/31/95 $ 3,359,171 $ 3,711,606 $ 3,840,424
11/30/95 $ 3,436,432 $ 3,837,059 $ 3,880,365
12/31/95 $ 3,591,759 $ 3,997,831 $ 3,992,895
1/31/96 $ 3,634,860 $ 3,989,436 $ 4,087,128
2/29/96 $ 3,621,774 $ 4,001,005 $ 4,104,702
3/31/96 $ 3,704,351 $ 4,097,430 $ 4,168,736
4/30/96 $ 3,823,261 $ 4,225,269 $ 4,304,636
5/31/96 $ 3,776,999 $ 4,169,918 $ 4,299,901
6/30/96 $ 3,820,057 $ 4,200,776 $ 4,339,030
7/31/96 $ 3,690,939 $ 4,089,875 $ 4,192,805
8/31/96 $ 3,704,226 $ 4,127,502 $ 4,247,311
9/30/96 $ 3,803,500 $ 4,237,294 $ 4,342,451
10/31/96 $ 3,780,298 $ 4,218,650 $ 4,325,081
11/30/96 $ 3,916,011 $ 4,390,349 $ 4,528,360
12/31/96 $ 3,896,431 $ 4,342,494 $ 4,568,663
1/31/97 $ 3,806,813 $ 4,154,030 $ 4,574,602
2/28/97 $ 3,847,927 $ 4,225,479 $ 4,657,402
3/31/97 $ 3,882,173 $ 4,256,748 $ 4,682,086
4/30/97 $ 3,895,761 $ 4,260,153 $ 4,702,688
5/31/97 $ 4,112,755 $ 4,578,386 $ 4,967,919
6/30/97 $ 4,291,659 $ 4,837,523 $ 5,206,379
7/31/97 $ 4,336,293 $ 4,896,057 $ 5,373,504
8/31/97 $ 4,023,212 $ 4,600,825 $ 4,986,074
9/30/97 $ 4,226,385 $ 4,852,950 $ 5,306,180
10/31/97 $ 3,919,972 $ 4,522,949 $ 4,903,441
11/30/97 $ 3,892,532 $ 4,445,607 $ 4,862,252
12/31/97 $ 3,952,866 $ 4,469,613 $ 4,900,178
1/31/98 $ 4,095,960 $ 4,681,026 $ 5,018,762
2/28/98 $ 4,320,009 $ 4,965,164 $ 5,337,454
3/31/98 $ 4,452,201 $ 5,181,149 $ 5,627,277
4/30/98 $ 4,522,101 $ 5,210,681 $ 5,713,938
5/31/98 $ 4,525,718 $ 5,219,018 $ 5,725,365
6/30/98 $ 4,555,136 $ 5,255,030 $ 5,675,555
7/31/98 $ 4,566,068 $ 5,301,274 $ 5,762,391
8/31/98 $ 3,949,649 $ 4,563,867 $ 4,933,183
9/30/98 $ 3,736,763 $ 4,385,420 $ 4,779,761
10/31/98 $ 4,114,923 $ 4,877,464 $ 5,131,073
11/30/98 $ 4,316,966 $ 5,127,678 $ 5,388,140
12/31/98 $ 4,492,235 $ 5,222,027 $ 5,520,688
1/31/99 $ 4,488,641 $ 5,166,151 $ 5,554,364
2/28/99 $ 4,375,078 $ 5,102,091 $ 5,411,617
3/31/99 $ 4,568,019 $ 5,388,318 $ 5,591,824
4/30/99 $ 4,757,135 $ 5,721,316 $ 5,852,403
5/31/99 $ 4,537,831 $ 5,412,365 $ 5,634,694
6/30/99 $ 4,753,378 $ 5,587,726 $ 5,901,778
7/31/99 $ 4,901,208 $ 5,770,444 $ 6,033,388
8/31/99 $ 4,923,754 $ 5,834,496 $ 6,081,052
9/30/99 $ 4,942,464 $ 5,857,834 $ 6,100,511
10/31/99 $ 5,131,760 $ 6,051,729 $ 6,313,419
11/30/99 $ 5,354,992 $ 6,092,880 $ 6,776,192
12/31/99 $ 5,849,793 $ 6,440,784 $ 7,608,986
E1/31/00 $ 5,528,640 $ 5,875,283 $ 7,163,861
E2/29/00 $ 5,797,884 $ 5,810,067 $ 7,636,675
E3/31/00 $ 5,897,028 $ 6,230,716 $ 7,656,531
E4/30/00 $ 5,544,386 $ 6,018,249 $ 7,171,107
E5/31/00 $ 5,354,214 $ 6,016,443 $ 6,973,901
E6/30/00 $ 5,552,319 $ 6,287,183 $ 7,296,793
E7/31/00 $ 5,354,102 $ 6,048,899 $ 7,060,377
E8/31/00 $ 5,354,102 $ 6,174,716 $ 7,179,697
E9/30/00 $ 5,072,476 $ 5,959,219 $ 6,761,121
E10/31/00 $ 4,866,533 $ 5,881,153 $ 6,531,243
E11/30/00 $ 4,636,833 $ 5,720,597 $ 6,255,624
E12/31/00 $ 4,811,178 $ 6,004,339 $ 6,488,959
E1/31/01 $ 4,798,188 $ 5,986,926 $ 6,527,244
E2/28/01 $ 4,420,091 $ 5,696,560 $ 6,069,031
E3/31/01 $ 4,111,568 $ 5,330,272 $ 5,642,379
E4/30/01 $ 4,407,190 $ 5,694,862 $ 5,985,435
E5/31/01 $ 4,281,144 $ 5,556,477 $ 5,840,588
E6/30/01 $ 4,076,934 $ 5,415,343 $ 5,675,883
E7/31/01 $ 3,959,518 $ 5,279,417 $ 5,528,310
E8/31/01 $ 3,902,897 $ 5,227,679 $ 5,417,191
E9/30/01 $ 3,528,999 $ 4,689,228 $ 4,826,717
E10/31/01 $ 3,598,521 $ 4,772,228 $ 4,957,521
E11/30/01 $ 3,728,787 $ 4,890,579 $ 5,142,437
E12/31/01 $ 3,756,380 $ 4,914,543 $ 5,233,972
E1/31/02 $ 3,588,470 $ 4,691,422 $ 5,022,520
E2/28/02 $ 3,544,332 $ 4,748,189 $ 5,092,835
E3/31/02 $ 3,765,144 $ 5,018,835 $ 5,362,246
E4/30/02 $ 3,835,928 $ 5,099,639 $ 5,399,782
E5/31/02 $ 3,937,580 $ 5,240,899 $ 5,476,999
E6/30/02 $ 3,761,177 $ 5,034,407 $ 5,260,657
E7/31/02 $ 3,399,352 $ 4,561,676 $ 4,735,644
E8/31/02 $ 3,372,837 $ 4,573,993 $ 4,739,432
E9/30/02 $ 2,975,517 $ 4,068,109 $ 4,228,995
E10/31/02 $ 3,099,001 $ 4,234,495 $ 4,448,480
E11/30/02 $ 3,235,976 $ 4,433,940 $ 4,658,893
E12/31/02 $ 3,104,919 $ 4,272,544 $ 4,509,809
E1/31/03 $ 3,017,982 $ 4,110,615 $ 4,344,750
E2/28/03 $ 2,921,708 $ 4,018,948 $ 4,216,145
E3/31/03 $ 2,825,584 $ 3,918,474 $ 4,112,849
E4/30/03 $ 3,122,386 $ 4,305,228 $ 4,520,022
</Table>
Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund commenced operations on 10/4/93.
Returns for the Institutional Shares prior to 10/4/93 (offering date of the
Institutional Shares) are calculated using the historical expenses of the J.P.
Morgan International Equity Fund, which are higher than the expenses of the
Institutional Shares.
Returns for the Select Shares prior to 9/10/01 (offering date of the Select
Shares) are calculated using the historical expenses of the J.P. Morgan
International Equity Fund, which were lower than the expenses of the Select
Share.
Returns for the Class A and B Shares prior to 9/28/01 (offering date of the
Class A and B Shares) are calculated using the historical expenses of the Select
Shares, which are lower than the expenses of the Class A and B Shares.
The graph illustrates comparative performance for $3,000,000 invested in of the
JPMorgan Fleming International Value Fund, Salomon Smith Barney PMI Value EPAC
Index, and Lipper International Funds Index from April 30, 1993 to April 30,
2003. The performance of the Fund assumes reinvestment of all dividends and
capital gains and does not include a sales charge. The performance of the
indices does not include a sales charge and has been adjusted to reflect
reinvestment of all dividends and capital gains of the securities included in
the benchmark. The Salomon Smith Barney PMI Value EPAC Index consists of stocks
in the Euro Pacific region of the Primary Market Index (The Primary Market Index
are stocks that fall in the top 80% of each country's cumulative available
capital) that have a value style. The Lipper International Funds Index
represents the total returns of the funds in the indicated category, as defined
by Lipper, Inc. Investors cannot invest directly in an index.
Institutional Shares have a $3,000,000 minimum initial deposit and carry no
sales charge.
Certain fees and expenses of the Fund are currently being waived and reimbursed
as described in the prospectus. Had the expenses not been subsidized or waived,
returns would have been lower. Also, all performance shown in this section does
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or redemption of fund shares.
(UNAUDITED)
14
<Page>
JPMORGAN FLEMING INTERNATIONAL OPPORTUNITIES FUND
As of April 30, 2003
Q. HOW DID THE FUND PERFORM?
A. JPMorgan Fleming International Opportunities Fund, which seeks long-term
capital appreciation through investing in foreign equities, declined by 0.9%
(Institutional Shares) in the six months ended April 30, 2003. This compares
with a rise of 1.8% for the MSCI EAFE Index (in U.S. dollars). Please note that
the Fund's benchmark was changed to the MSCI EAFE Index on February 28, 2003.
Q. WHY DID THE FUND PERFORM THIS WAY?
A. The Fund trailed its MSCI EAFE Index benchmark in a six months when the U.S.
dollar denominated benchmark achieved a small rise chiefly as a result of dollar
weakness. Stock price movements were mixed. The portfolio was caught out by a
combination of difficulties in just a few holdings, and its Asian country
allocation. These negatives were partially offset by strong performances from
some European stocks.
The greatest problems occurred at holdings in the U.K. and the Netherlands. U.K.
electrical retailer Dixons Group PLC fell back sharply following poor Christmas
trading and the announcement of a monopolies inquiry into its sale of extended
warranties, from which it makes significant profits. At Corus, the Anglo-Dutch
steel group, the Dutch Supervisory Board stopped the sale of the aluminum
business, so preventing it from paying down debt and focusing on its carbon
steel business. Dutch insurer Aegon NV was caught up in the confusion
surrounding accounting fraud at Ahold, the Dutch food retailer where it holds a
5% stake.
There was also a disappointment in Japan, where miniature ball bearings
manufacturer Minebea Co., LTD fell in price following poor demand for the
consumer electronics goods in which these components are used.
Asset allocation caused the Fund to be vulnerable to rising tensions in East
Asia. An overweight position in South Korea hurt performance as North Korea
publicized its nuclear ambitions.
There was, however, strong performance from a number of European holdings. In
particular, the retail banks Barclays PLC, BNP Paribas and UniCredito Italiano
SPA performed well. Additionally, Spanish utility Iberdrola SA showed signs of
benefiting from the actions of new management.
Q. HOW WAS THE FUND MANAGED?
A. Current positions reflect a fairly neutral view regarding the economic cycle,
with holdings fairly well balanced between defensive and cyclical stocks. The
biggest sector overweights are in the Banking and Telecommunications sectors,
while the greatest underweight is in Energy.
(UNAUDITED)
15
<Page>
[CHART]
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
<Table>
United Kingdom 28.20%
Japan 14.80%
France 11.90%
Switzerland 9.20%
The Netherlands 5.00%
Australia 4.20%
Spain 3.30%
Germany 3.20%
Italy 3.10%
Hong Kong 2.60%
Finland 2.40%
India 2.40%
Sweden 2.10%
Russia 2.00%
South Korea 1.60%
Belgium 1.20%
Mexico 1.10%
Singapore 1.00%
United States 0.70%
</Table>
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. VODAFONE GROUP PLC (UNITED KINGDOM) (3.8%)
2. BNP PARIBAS (FRANCE) (2.8%)
3. UNILEVER PLC (UNITED KINGDOM) (2.6%)
4. NOKIA OYJ (FINLAND) (2.4%)
5. UNICREDITO ITALIANO SPA (ITALY) (2.4%)
6. TOTAL FINA ELF SA (FRANCE) (2.3%)
7. NOVARTIS AG (SWITZERLAND) (2.3%)
8. IBERDROLA SA (SPAIN) (2.2%)
9. ASTRAZENECA PLC (UNITED KINGDOM) (2.1%)
10. LUKOIL, ADR (RUSSIA) (2.0%)
TOP 10 EQUITY HOLDINGS COMPRISED 24.9% OF THE PORTFOLIO'S MARKET VALUE OF
INVESTMENTS ($50,178,323). AS OF APRIL 30, 2003, THE FUND HELD 105 EQUITY
HOLDINGS. PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME.
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
SINCE
INCEPTION
1 YEAR 3 YEARS 5 YEARS (2/26/97)
- ---------------------------------------------------------------------------------
Class A Shares
Without Sales Charge (20.02%) (16.60%) (7.02%) (3.63%)
With Sales Charge* (24.59%) (18.24%) (8.11%) (4.55%)
- ---------------------------------------------------------------------------------
Class B Shares
Without CDSC (20.50%) (16.82%) (7.16%) (3.75%)
With CDSC** (24.43%) (17.63%) (7.51%) (3.75%)
- ---------------------------------------------------------------------------------
Institutional Shares (19.28%) (15.91%) (6.52%) (3.17%)
- ---------------------------------------------------------------------------------
Select Shares (19.44%) (16.25%) (6.78%) (3.44%)
- ---------------------------------------------------------------------------------
</Table>
* Sales Charge for Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period,
3% CDSC for the three year period, 2% CDSC for the five year period and 0% CDSC
for the period since inception.
(UNAUDITED)
16
<Page>
[CHART]
LIFE OF FUND PERFORMANCE (2/26/97 TO 4/30/03)
<Table>
<Caption>
JPMORGAN FLEMING INTERNATIONAL MSCI ALL COUNTRY WORLD LIPPER INTERNATIONAL
OPPORTUNITIES FUND (INSTITUTIONAL SHARES) MSCI EAFE INDEX INDEX FREE (EX - U.S.) FUNDS INDEX
2/26/97 $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 3,000,000
$ 2,988,000 $ 3,000,000 $ 3,000,000 $ 3,000,000
$ 3,002,940 $ 3,010,800 $ 2,993,700 $ 3,015,900
4/30/97 $ 3,023,961 $ 3,026,757 $ 3,019,146 $ 3,029,170
$ 3,140,988 $ 3,223,799 $ 3,205,428 $ 3,200,015
$ 3,284,845 $ 3,401,430 $ 3,382,367 $ 3,353,616
$ 3,374,850 $ 3,456,534 $ 3,450,691 $ 3,461,267
$ 3,137,935 $ 3,198,331 $ 3,179,122 $ 3,211,710
$ 3,314,915 $ 3,377,437 $ 3,351,112 $ 3,417,901
$ 3,008,948 $ 3,117,712 $ 3,065,598 $ 3,158,483
$ 2,981,868 $ 3,085,912 $ 3,027,278 $ 3,131,951
$ 3,052,240 $ 3,112,759 $ 3,062,091 $ 3,156,381
$ 3,091,614 $ 3,255,012 $ 3,153,648 $ 3,232,765
$ 3,263,817 $ 3,463,984 $ 3,363,996 $ 3,438,046
$ 3,408,730 $ 3,570,675 $ 3,480,390 $ 3,624,731
4/30/98 $ 3,444,863 $ 3,598,883 $ 3,505,449 $ 3,680,552
$ 3,351,162 $ 3,581,248 $ 3,441,650 $ 3,687,913
$ 3,299,890 $ 3,608,466 $ 3,428,916 $ 3,655,829
$ 3,312,099 $ 3,644,911 $ 3,461,491 $ 3,711,763
$ 2,722,877 $ 3,193,307 $ 2,973,420 $ 3,177,640
$ 2,595,718 $ 3,095,272 $ 2,910,681 $ 3,078,816
$ 2,922,779 $ 3,417,800 $ 3,215,430 $ 3,305,108
$ 3,062,195 $ 3,592,791 $ 3,388,098 $ 3,470,694
$ 3,169,066 $ 3,734,347 $ 3,504,988 $ 3,556,073
$ 3,196,954 $ 3,723,144 $ 3,501,132 $ 3,577,766
$ 3,100,406 $ 3,634,533 $ 3,422,707 $ 3,485,817
$ 3,293,251 $ 3,786,093 $ 3,588,023 $ 3,601,895
4/30/99 $ 3,461,207 $ 3,939,430 $ 3,767,425 $ 3,769,743
$ 3,361,524 $ 3,736,549 $ 3,590,356 $ 3,629,508
$ 3,557,501 $ 3,882,275 $ 3,755,512 $ 3,801,547
$ 3,674,899 $ 3,997,578 $ 3,843,767 $ 3,886,322
$ 3,712,382 $ 4,012,369 $ 3,857,220 $ 3,917,024
$ 3,749,878 $ 4,052,894 $ 3,883,449 $ 3,929,558
$ 3,849,999 $ 4,204,878 $ 4,027,913 $ 4,066,700
$ 4,037,494 $ 4,350,787 $ 4,189,030 $ 4,364,789
$ 4,432,765 $ 4,741,488 $ 4,588,663 $ 4,901,221
$ 4,157,047 $ 4,440,403 $ 4,339,499 $ 4,614,500
$ 4,293,398 $ 4,559,850 $ 4,456,665 $ 4,919,057
$ 4,325,169 $ 4,736,772 $ 4,624,236 $ 4,931,846
E4/30/00 $ 4,134,862 $ 4,487,618 $ 4,366,203 $ 4,619,167
$ 4,071,598 $ 4,378,120 $ 4,254,429 $ 4,492,140
$ 4,267,849 $ 4,549,305 $ 4,435,667 $ 4,700,126
$ 4,141,094 $ 4,358,689 $ 4,260,458 $ 4,547,842
$ 4,210,665 $ 4,396,609 $ 4,313,288 $ 4,624,701
$ 3,985,394 $ 4,182,494 $ 4,073,901 $ 4,355,081
$ 3,814,022 $ 4,083,788 $ 3,944,351 $ 4,207,008
$ 3,611,116 $ 3,930,646 $ 3,767,249 $ 4,029,472
$ 3,713,672 $ 4,070,183 $ 3,896,089 $ 4,179,772
$ 3,726,670 $ 4,068,148 $ 3,954,530 $ 4,204,432
$ 3,441,580 $ 3,763,037 $ 3,641,332 $ 3,909,281
$ 3,169,695 $ 3,512,043 $ 3,383,889 $ 3,634,459
E4/30/01 $ 3,402,667 $ 3,756,130 $ 3,613,994 $ 3,855,434
$ 3,383,272 $ 3,623,538 $ 3,514,248 $ 3,762,132
$ 3,273,316 $ 3,475,336 $ 3,379,301 $ 3,656,040
$ 3,129,617 $ 3,412,084 $ 3,304,280 $ 3,560,983
$ 3,113,343 $ 3,325,759 $ 3,222,334 $ 3,489,407
$ 2,742,855 $ 2,988,859 $ 2,880,444 $ 3,109,062
$ 2,807,861 $ 3,065,374 $ 2,961,097 $ 3,193,317
$ 2,957,239 $ 3,178,486 $ 3,096,419 $ 3,312,428
$ 3,005,738 $ 3,197,240 $ 3,136,363 $ 3,371,389
$ 2,851,243 $ 3,027,466 $ 3,002,126 $ 3,235,185
$ 2,851,243 $ 3,048,658 $ 3,023,742 $ 3,280,478
$ 3,008,917 $ 3,213,591 $ 3,187,931 $ 3,454,015
E4/30/02 $ 3,045,024 $ 3,234,800 $ 3,208,652 $ 3,478,193
$ 3,097,703 $ 3,275,882 $ 3,243,627 $ 3,527,931
$ 2,933,524 $ 3,145,502 $ 3,103,502 $ 3,388,578
$ 2,641,052 $ 2,835,041 $ 2,800,911 $ 3,050,398
$ 2,670,632 $ 2,828,521 $ 2,801,191 $ 3,052,838
$ 2,348,821 $ 2,524,738 $ 2,504,265 $ 2,724,048
$ 2,480,120 $ 2,660,316 $ 2,638,493 $ 2,865,426
$ 2,611,566 $ 2,781,094 $ 2,765,405 $ 3,000,960
$ 2,487,778 $ 2,687,650 $ 2,676,082 $ 2,904,930
$ 2,364,882 $ 2,575,575 $ 2,582,152 $ 2,798,609
$ 2,305,050 $ 2,516,594 $ 2,529,734 $ 2,715,770
$ 2,235,207 $ 2,467,269 $ 2,480,657 $ 2,649,234
E4/30/03 $ 2,458,936 $ 2,709,061 $ 2,719,792 $ 2,911,508
</Table>
Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund commenced operations on 2/26/97.
Returns for the Institutional Shares prior to 9/10/01 (offering date of the
Institutional Shares) are calculated using the historical expenses of the J.P.
Morgan Institutional International Opportunities Fund, which are higher than the
expenses of the Institutional Shares.
Returns for the Select Shares prior to 9/10/01 (offering date of the Select
Shares) are calculated using the historical expenses of the J.P. Morgan
International Opportunities Fund, which are similar to the expenses of the
Select Shares.
Returns for the Class A and B Shares prior to 9/10/01 (offering date of the
Class A and B Shares) are calculated using the historical expenses of the J.P.
Morgan International Opportunities Fund, which are lower than the expenses of
the Class A and B Shares.
The graph illustrates comparative performance for $3,000,000 invested in
Institutional Shares of the JPMorgan Fleming International Opportunities Fund,
MSCI EAFE Index, MSCI All Country World Index Free (ex-U.S.), and Lipper
International Funds Index from February 26, 1997 to April 30, 2003. The
performance of the Fund assumes reinvestment of all dividends and capital gains
and does not include a sales charge. The performance of the indices reflects an
initial investment at the end of the month following the Fund's inception. The
performance of the indices does not include a sales charge and has been adjusted
to reflect reinvestment of all dividends and capital gains of the securities
included in the benchmark. The MSCI EAFE (Europe, Australasia, Far East) Index
is a replica (or model) of the performance of the worlds equity markets,
excluding the U.S. and Canada. The MSCI All Country World Index Free (ex-U.S.)
is an unmanaged index that measures developed and emerging foreign stock market
performance. The Lipper International Funds Index represents the total returns
of the funds in the indicated category, as defined by Lipper, Inc. Investors
cannot invest directly in an index.
Institutional Shares have a $3,000,000 minimum initial deposit and carry no
sales charge.
Certain fees and expenses of the Fund are currently being waived and reimbursed
as described in the prospectus. Had the expenses not been subsidized or waived,
returns would have been lower. Also, all performance shown in this section does
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or redemption of fund shares.
(UNAUDITED)
17
<Page>
JPMORGAN FLEMING EMERGING MARKETS EQUITY FUND
As of April 30, 2003
Q. HOW DID THE FUND PERFORM?
A. JPMorgan Fleming Emerging Markets Equity Fund, which seeks capital
appreciation from a portfolio of emerging market equities, rose 4.3%
(Institutional Shares) in the six months ended April 30, 2003. This compares
with a rise of 5.9% for the MSCI Emerging Markets Equity Free Index (in U.S.
dollars).
Q. WHY DID THE FUND PERFORM THIS WAY?
A. The Fund trailed its MSCI Emerging Markets Equity Free Index benchmark as a
result of an overweight position in South Korea. A confluence of unforeseeable
events depressed Korean equity prices, causing the Fund to underperform in Asia
as a whole. Outside Asia -- where market movements were more predictable -- the
Fund performed relatively well against the benchmark. The sudden escalation in
tensions between North Korea and the United States over North Korea's nuclear
ambitions caused many foreign investors to sell South Korean equities. This
added to market uncertainties regarding the government investigation of
accounting at the Chaebol business empires, and the durability of the consumer
credit boom. The stock prices of two holdings -- Kookmin Bank and SK Telecom
Co., LTD -- fell sharply.
In Latin America, Brazil rallied as President Lula da Silva's coalition building
paved the way for much needed fiscal reforms and central bank autonomy. The Fund
was overweight in Brazil which contributed to performance. Its two leading
holdings were blue chips Banco Itau Holding Financeira SA and TNE, the fixed
line telecommunications company.
There was also strong performance from Russia. The Fund gained from a slightly
overweight position and good stock selection. Cellular phone stocks Mobile
Telesystems and Vimpel-Communication performed well in sympathy with strong
subscriber and earnings growth.
Q. HOW WAS THE FUND MANAGED?
A. The Fund's asset allocation remains broadly as it was throughout the period.
We are still overweight in Brazil, where we believe the Lula government will
introduce market-friendly economic policies and restructure the national debt.
In Asia, we remain overweight in South Korean equities, where recent stock price
falls have caused equities to trade below their book value. The most significant
changes in allocation have been in Russia and South Africa, where we have
reduced the overweight positions.
(UNAUDITED)
18
<Page>
[CHART]
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
<Table>
South Korea 25.50%
South Africa 15.50%
Brazil 10.60%
Taiwan 7.50%
Russia 7.40%
Mexico 6.10%
India 4.30%
China 4.00%
Malaysia 3.60%
Israel 2.70%
Hong Kong 2.20%
Indonesia 2.20%
Chile 1.90%
Poland 1.30%
Turkey 1.30%
Thailand 1.10%
Other (below 1%) 2.80%
</Table>
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. SAMSUNG ELECTRONICS CO., LTD (SOUTH KOREA) (8.8%)
2. ANGLO AMERICAN PLC (SOUTH AFRICA) (4.8%)
3. KOOKMIN BANK (SOUTH KOREA) (4.4%)
4. SK TELECOM CO., LTD, ADR (SOUTH KOREA) (4.2%)
5. POSCO (SOUTH KOREA) (3.2%)
6. PETROLEO BRASILEIRO SA, ADR (BRAZIL) (2.7%)
7. TEVA PHARMACEUTICAL INDUSTRIES LTD, ADR (ISRAEL) (2.3%)
8. CHINA MOBILE LTD (CHINA) (2.3%)
9. YUKOS, ADR (RUSSIA) (2.2%)
10. SAPPI LTD (SOUTH AFRICA) (2.1%)
TOP 10 EQUITY HOLDINGS COMPRISED 37.0% OF THE PORTFOLIO'S MARKET VALUE OF
INVESTMENTS ($22,028,162). AS OF APRIL 30, 2003, THE FUND HELD 88 EQUITY
HOLDINGS. PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME.
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
SINCE
INCEPTION
1 YEAR 3 YEARS 5 YEARS (11/15/93)
- --------------------------------------------------------------------------------
Class A Shares
Without Sales Charge (18.57%) (12.30%) (8.50%) (4.38%)
With Sales Charge* (23.29%) (14.02%) (9.58%) (4.97%)
- --------------------------------------------------------------------------------
Class B Shares
Without CDSC (18.72%) (12.47%) (8.60%) (4.44%)
With CDSC** (22.76%) (13.29%) (8.92%) (4.44%)
- --------------------------------------------------------------------------------
Institutional Shares (18.05%) (11.89%) (8.06%) (4.07%)
- --------------------------------------------------------------------------------
Select Shares (18.28%) (12.19%) (8.43%) (4.34%)
- --------------------------------------------------------------------------------
</Table>
* Sales Charge for Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period,
3% CDSC for the three year period, 2% CDSC for the five year period and 0% for
the period since inception.
(UNAUDITED)
19
<Page>
[CHART]
LIFE OF FUND PERFORMANCE (11/15/93 TO 4/30/03)
<Table>
<Caption>
JPMORGAN FLEMING EMERGING MARKETS MSCI EMERGING MARKETS LIPPER EMERGING MARKET
EQUITY FUND (INSTITUTIONAL SHARES) EQUITY FREE INDEX EQUITY FUNDS AVERAGE
11/15/93 $ 3,000,000 $ 3,000,000 $ 3,000,000
$ 3,062,700 $ 3,000,000 $ 3,000,000
$ 3,519,961 $ 3,495,900 $ 3,416,700
$ 3,752,983 $ 3,559,525 $ 3,576,602
$ 3,669,291 $ 3,496,166 $ 3,485,398
$ 3,358,502 $ 3,179,763 $ 3,216,325
4/30/94 $ 3,257,075 $ 3,116,168 $ 3,110,508
$ 3,319,937 $ 3,222,741 $ 3,174,896
$ 3,239,262 $ 3,133,793 $ 3,058,060
$ 3,397,662 $ 3,328,715 $ 3,239,708
$ 3,711,267 $ 3,741,808 $ 3,549,101
$ 3,791,801 $ 3,784,465 $ 3,585,301
$ 3,726,203 $ 3,716,345 $ 3,507,500
$ 3,582,744 $ 3,523,095 $ 3,354,573
$ 3,267,104 $ 3,240,190 $ 3,116,063
$ 2,868,844 $ 2,895,434 $ 2,821,907
$ 2,792,820 $ 2,821,311 $ 2,780,143
$ 2,853,703 $ 2,839,367 $ 2,807,388
4/30/95 $ 2,951,015 $ 2,966,855 $ 2,922,210
$ 3,072,597 $ 3,124,691 $ 3,070,951
$ 3,087,652 $ 3,134,066 $ 3,075,557
$ 3,212,393 $ 3,204,269 $ 3,195,504
$ 3,124,374 $ 3,128,648 $ 3,134,789
$ 3,094,067 $ 3,113,943 $ 3,138,238
$ 2,951,121 $ 2,994,679 $ 3,000,783
$ 2,862,883 $ 2,941,374 $ 2,953,670
$ 2,950,773 $ 3,071,971 $ 3,052,028
$ 3,177,393 $ 3,290,388 $ 3,322,743
$ 3,162,141 $ 3,238,071 $ 3,301,809
$ 3,201,984 $ 3,263,328 $ 3,322,611
4/30/96 $ 3,306,049 $ 3,393,861 $ 3,475,783
$ 3,330,514 $ 3,378,589 $ 3,527,920
$ 3,339,839 $ 3,399,536 $ 3,553,321
$ 3,180,529 $ 3,167,347 $ 3,345,096
$ 3,251,136 $ 3,248,432 $ 3,444,780
$ 3,235,856 $ 3,276,693 $ 3,468,549
$ 3,146,870 $ 3,189,205 $ 3,381,835
$ 3,183,688 $ 3,242,784 $ 3,465,705
$ 3,211,705 $ 3,257,376 $ 3,528,088
$ 3,471,211 $ 3,479,529 $ 3,813,510
$ 3,567,016 $ 3,628,453 $ 3,950,796
$ 3,557,742 $ 3,533,025 $ 3,863,484
4/30/97 $ 3,539,242 $ 3,539,384 $ 3,899,414
$ 3,665,946 $ 3,640,611 $ 4,077,227
$ 3,851,443 $ 3,835,384 $ 4,313,706
$ 3,978,156 $ 3,892,531 $ 4,460,804
$ 3,564,030 $ 3,397,012 $ 4,065,130
$ 3,700,176 $ 3,491,109 $ 4,229,768
$ 3,047,835 $ 2,918,218 $ 3,569,078
$ 2,961,276 $ 2,811,703 $ 3,430,241
$ 2,963,941 $ 2,879,465 $ 3,486,840
$ 2,744,906 $ 2,653,715 $ 3,240,669
$ 2,917,561 $ 2,930,763 $ 3,539,459
$ 3,057,020 $ 3,057,958 $ 3,672,897
4/30/98 $ 3,083,616 $ 3,024,626 $ 3,696,403
$ 2,638,959 $ 2,610,252 $ 3,219,567
$ 2,336,798 $ 2,336,437 $ 2,918,860
$ 2,418,119 $ 2,410,502 $ 3,010,804
$ 1,729,680 $ 1,713,626 $ 2,161,155
$ 1,792,814 $ 1,822,270 $ 2,221,451
$ 1,965,820 $ 2,014,155 $ 2,422,270
$ 2,072,171 $ 2,181,732 $ 2,579,476
$ 2,064,918 $ 2,150,097 $ 2,539,236
$ 2,010,198 $ 2,115,481 $ 2,478,040
$ 1,973,813 $ 2,136,001 $ 2,465,898
$ 2,199,618 $ 2,417,526 $ 2,741,092
4/30/99 $ 2,512,843 $ 2,716,574 $ 3,124,023
$ 2,480,176 $ 2,700,818 $ 3,094,969
$ 2,720,505 $ 3,007,360 $ 3,464,509
$ 2,665,823 $ 2,925,560 $ 3,381,707
$ 2,676,753 $ 2,952,183 $ 3,343,155
$ 2,614,920 $ 2,852,399 $ 3,221,464
$ 2,629,564 $ 2,913,155 $ 3,336,471
$ 2,859,124 $ 3,174,465 $ 3,701,147
$ 3,291,996 $ 3,578,257 $ 4,368,464
$ 3,244,262 $ 3,599,727 $ 4,329,584
$ 3,222,201 $ 3,647,243 $ 4,517,921
$ 3,214,790 $ 3,665,114 $ 4,563,101
E4/30/00 $ 2,961,786 $ 3,317,662 $ 4,063,897
$ 2,855,458 $ 3,180,642 $ 3,829,817
$ 3,013,079 $ 3,292,601 $ 4,023,606
$ 2,870,259 $ 3,123,361 $ 3,840,934
$ 2,910,443 $ 3,138,666 $ 3,920,057
$ 2,657,525 $ 2,864,660 $ 3,523,739
$ 2,448,644 $ 2,656,972 $ 3,265,802
$ 2,206,718 $ 2,424,753 $ 2,954,571
$ 2,296,752 $ 2,483,189 $ 3,059,754
$ 2,604,976 $ 2,825,125 $ 3,424,782
$ 2,421,586 $ 2,603,917 $ 3,162,101
$ 2,190,324 $ 2,348,213 $ 2,869,607
E4/30/01 $ 2,285,822 $ 2,464,214 $ 3,034,896
$ 2,355,540 $ 2,493,538 $ 3,125,640
$ 2,304,189 $ 2,442,421 $ 3,066,878
$ 2,135,523 $ 2,288,060 $ 2,865,997
$ 2,109,896 $ 2,265,408 $ 2,808,391
$ 1,794,256 $ 1,914,723 $ 2,411,846
$ 1,885,942 $ 2,033,627 $ 2,558,486
$ 2,080,383 $ 2,245,938 $ 2,816,893
$ 2,202,293 $ 2,424,265 $ 2,994,076
$ 2,298,534 $ 2,506,448 $ 3,111,144
$ 2,342,895 $ 2,547,554 $ 3,177,412
$ 2,446,451 $ 2,700,916 $ 3,357,889
E4/30/02 $ 2,472,384 $ 2,718,472 $ 3,391,132
$ 2,439,006 $ 2,675,249 $ 3,360,272
$ 2,242,910 $ 2,474,605 $ 3,112,284
$ 2,035,665 $ 2,286,288 $ 2,881,664
$ 2,061,518 $ 2,321,496 $ 2,903,565
$ 1,858,046 $ 2,071,007 $ 2,620,467
$ 1,943,145 $ 2,205,415 $ 2,742,581
$ 2,072,753 $ 2,357,148 $ 2,914,266
$ 2,007,668 $ 2,278,891 $ 2,840,535
$ 2,007,668 $ 2,268,863 $ 2,816,959
$ 1,944,427 $ 2,207,604 $ 2,756,113
$ 1,854,983 $ 2,144,908 $ 2,665,988
E4/30/03 $ 2,026,101 $ 2,336,020 $ 2,913,658
</Table>
Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund commenced operations on 11/15/93.
Returns for the Institutional Shares prior to 9/10/01 (offering date of the
Institutional Shares) are calculated using the historical expenses of the J.P.
Morgan Institutional Emerging Markets Equity Fund, which are similar to the
expenses of the Institutional Shares.
Returns for the Select Shares prior to 9/10/01 (offering date of the Select
Shares) are calculated using the historical expenses of the J.P. Morgan Emerging
Markets Equity Fund, which are similar to the expenses of the Select Shares.
Returns for the Class A and B Shares prior to 9/28/01 (offering date of the
Class A and B Shares) are calculated using the historical expenses of the Select
Shares, which are lower than the expenses of the Class A and B Shares.
The graph illustrates comparative performance for $3,000,000 invested in
Institutional Shares of the JPMorgan Fleming Emerging Markets Equity Fund, MSCI
Emerging Markets Equity Free Index and Lipper Emerging Markets Equity Funds
Average from November 15, 1993 to April 30, 2003. The performance of the Fund
assumes reinvestment of all dividends and capital gains and does not include a
sales charge. The performance of the indices reflects an initial investment at
the end of the month following the Fund's inception. The performance of the
indices does not include a sales charge and has been adjusted to reflect
reinvestment of all dividends and capital gains of the securities included in
the benchmark. The MSCI Emerging Markets Equity Free Index is a replica (or
model) of the world's emerging market equity markets. The Lipper Emerging Market
Equity Funds Average describes the average total returns for all the funds in
the indicated category, as defined by Lipper, Inc. Investors cannot invest
directly in an index.
Institutional Shares have a $3,000,000 minimum initial deposit and carry no
sales charge.
Certain fees and expenses of the Fund are currently being waived and reimbursed
as described in the prospectus. Had the expenses not been subsidized or waived,
returns would have been lower. Also, all performance shown in this section does
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or redemption of fund shares.
(UNAUDITED)
20
<Page>
JPMORGAN FLEMING ASIA EQUITY FUND
AS OF APRIL 30, 2003
Q. HOW DID THE FUND PERFORM?
A. JPMorgan Fleming Asia Equity Fund, which seeks total return from long term
capital growth, declined by 9.7% (Class A Shares, without sales charge) during
the six months ended April 30, 2003. This compares with a fall of 6.4% for the
MSCI All Country Far East Free ex Japan Index (in U.S. dollars).
Q. WHY DID THE FUND PERFORM THIS WAY?
A. In a highly volatile and unpredictable market, the Fund underperformed its
MSCI All Country Far East Free ex Japan Index benchmark for reasons that were
essentially short-term in nature. A combination of sentiment driven rallies,
geopolitically motivated corrections, and falls in individual stock prices
driven by the outbreak of the SARS (Severe Acute Respiratory Syndrome) virus
rendered stock selection according to corporate fundamentals largely irrelevant
during the six-month period.
During October and November of 2002, the Fund suffered from being underweight in
Taiwanese technology stocks, which rallied in sympathy with the U.S. NASDAQ
market on hopes for an improvement in global capital expenditure. The Fund was
underweight in these stocks, which seemed unduly expensive, and its relative
performance suffered accordingly.
With the advent of SARS in March and April, the Fund was unfortunate enough to
own two of the stocks most vulnerable to efforts to minimize the spread of the
disease. Chinese airlines China National Aviation and China Southern had been
acquired as beneficiaries of China's burgeoning economy. Instead, their ticket
revenues faltered as people shied away from travel.
Finally, the Fund did not own two of the period's best performers. These were
two Korean stocks: the utility KEPCO and LG Electronics.
To an extent these disappointments were offset by strong performances from the
portfolio's China plays. Techtronic Industries Co. is a manufacturer of low-cost
drills and drill bits for which it has long-term supply contracts with leading
U.S. retailers such as Wal-Mart. Another outperformer was PetroChina Co., LTD,
which benefited from rising oil prices and growing demand for its petrochemical
products.
Q. HOW WAS THE FUND MANAGED?
A. The Fund added to its holdings in companies exposed to Chinese economic
growth. These stocks now represent 13% of the portfolio, compared with about 6%
at the beginning of the period.
(UNAUDITED)
21
<Page>
[CHART]
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
<Table>
South Korea 24.60%
Hong Kong 19.80%
Taiwan 19.20%
China 13.60%
Singapore 9.80%
Malaysia 8.40%
United Kingdom 1.90%
Indonesia 1.60%
Thailand 1.10%
</Table>
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. SAMSUNG ELECTRONICS, CO., LTD (SOUTH KOREA) (9.8%)
2. POSCO (SOUTH KOREA) (3.7%)
3. HUTCHISON WHAMPOA LTD (HONG KONG) (3.7%)
4. CLP HOLDINGS LTD (HONG KONG) (3.2%)
5. KOOKMIN BANK (SOUTH KOREA) (3.0%)
6. CHINA MOBILE LTD (CHINA) (2.7%)
7. SK TELECOM CO., LTD (SOUTH KOREA) (2.5%)
8. TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD (TAIWAN) (2.2%)
9. PETROCHINA CO., LTD, CLASS H (CHINA) (2.0%)
10. SUN HUNG KAI PROPERTIES LTD (HONG KONG) (2.0%)
TOP 10 EQUITY HOLDINGS COMPRISED 34.8% OF THE PORTFOLIO'S MARKET VALUE OF
INVESTMENTS ($7,846,981). AS OF APRIL 30, 2003, THE FUND HELD 72 EQUITY
HOLDINGS. PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME.
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
SINCE INCEPTION
1 YEAR (11/1/01)
- ---------------------------------------------------------------------
Class A Shares
Without Sales Charge (25.32%) (12.16%)
With Sales Charge* (29.61%) (15.59%)
- ---------------------------------------------------------------------
Class B Shares
Without CDSC (25.68%) (12.59%)
With CDSC** (29.40%) (14.95%)
- ---------------------------------------------------------------------
Institutional Shares (25.08%) (11.97%)
- ---------------------------------------------------------------------
Select Shares (25.14%) (12.02%)
- ---------------------------------------------------------------------
</Table>
* Sales Charge for Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period
and 4% CDSC for the period since inception.
(UNAUDITED)
22
<Page>
[CHART]
LIFE OF FUND PERFORMANCE (11/1/01 TO 4/30/03)
<Table>
<Caption>
JPMORGAN FLEMING ASIA MSCI ALL COUNTRY FAR EAST LIPPER PACIFIC REGION FUNDS
EQUITY FUND (CLASS A SHARES) FREE INDEX (EX-JAPAN) INDEX (EX-JAPAN)
E11/1/01 $ 9,425 $ 10,000 $ 10,000
$ 9,689 $ 10,000 $ 10,000
$ 9,921 $ 10,906 $ 10,661
$ 9,878 $ 11,354 $ 11,083
$ 10,003 $ 11,386 $ 11,208
$ 10,455 $ 12,218 $ 11,954
E4/30/02 $ 10,399 $ 12,393 $ 12,039
$ 10,543 $ 12,153 $ 11,980
$ 9,966 $ 11,500 $ 11,378
$ 9,382 $ 11,081 $ 10,869
$ 9,174 $ 10,838 $ 10,607
$ 8,319 $ 9,605 $ 9,442
$ 8,602 $ 10,119 $ 9,697
$ 8,891 $ 10,630 $ 10,329
$ 8,338 $ 9,900 $ 9,736
$ 8,451 $ 10,017 $ 9,806
$ 7,986 $ 9,578 $ 9,404
$ 7,583 $ 9,141 $ 8,966
E4/30/03 $ 7,766 $ 9,476 $ 9,435
</Table>
Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund commenced operations on 11/1/01.
Class A Shares and Class B Shares were introduced on 11/1/01.
Returns for the Institutional and Select Shares prior to 6/28/02 (offering date
of the Institutional and Select Shares) are calculated using the historical
expenses of the Class A Shares, which are higher than the expenses of the
Institutional and Select Shares.
The graph illustrates comparative performance for $10,000 invested in Class A
Shares of the JPMorgan Fleming Asia Equity Fund, MSCI All Country Far East Free
Index (ex-Japan) and Lipper Pacific Region Funds Index (ex-Japan) from November
1, 2001 to April 30, 2003. The performance of the Fund assumes reinvestment of
all dividends and capital gains and includes a sales charge. The performance of
the indices reflects an initial investment at the end of the month following the
Fund's inception. The performance of the indices does not include a sales charge
and has been adjusted to reflect reinvestment of all dividends and capital gains
of the securities included in the benchmark. The MSCI All Country Far East Free
Index (ex-Japan) is a free float-adjusted market capitalization index that is
designed to measure equity market performance in the Far East, excluding Japan.
The Lipper Pacific Region Funds Index (ex-Japan) represents the total returns of
the funds in the indicated category, as defined by Lipper, Inc. Investors cannot
invest directly in an index.
Class A Shares have a $2,500 minimum initial deposit and carry a 5.75% sales
charge.
Certain fees and expenses of the Fund are currently being waived and reimbursed
as described in the prospectus. Had the expenses not been subsidized or waived,
returns would have been lower. Also, all performance shown in this section does
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or redemption of fund shares.
(UNAUDITED)
23
<Page>
JPMORGAN FLEMING INTERNATIONAL EQUITY FUND
As of April 30, 2003
Q. HOW DID THE FUND PERFORM?
A. JPMorgan Fleming International Equity Fund, which seeks to provide long-term
capital growth and income from a portfolio of foreign stocks, rose 0.7% (Select
Shares) in the six months ended April 30, 2003. This compares with a fall of
1.8% for the MSCI EAFE Index (in U.S. dollars).
Q. WHY DID THE FUND OUTPERFORM ITS BENCHMARK?
A. The Fund outperformed its MSCI EAFE Index benchmark during a six months that
was volatile both in terms of broad stock market moves and company news flow.
Stock price falls caused by the run-up to war in Iraq created some highly
attractive buying opportunities, which benefited performance in the post-war
rally. There were also, however, a number of trading difficulties among
portfolio holdings.
When equity markets plunged amid the uncertainty preceding war, the portfolio
management team took the opportunity to add to holdings in high quality stocks
with low valuations including European financials. As a result, when equity
markets rallied from mid-March, financials such as Banco Popular Espanol,
Deutsche Bank AG and Nordea AB performed well for the portfolio. The rally also
saw good performance from basic materials portfolio stocks including Holcim LTD,
St Gobain and Wolseley PLC. Highly geared to economic activity, these companies
benefited from the increased optimism that accompanied lower oil prices and
relief that military activity had reached a conclusion.
There were, however, a number of stock specific difficulties. The chief
detractors from performance were BAE Systems PLC, which warned of cost overruns
and delays on U.K. defense projects; Sony Corp., where there are growing doubts
about future profitability; HeidelbergCement AG, where trading was damaged by a
weak construction market; and Nikko Cordial Corp., which made a full year loss
as a result of the Japanese stock market malaise.
Q. HOW WAS THE FUND MANAGED?
A. As equity prices dipped in the early months of 2003, your manager took the
opportunity to buy attractive companies trading at low valuations. Broadly
speaking, the Fund continues to take an active fundamental approach, focusing on
proprietary research at both the local and sector levels.
(UNAUDITED)
24
<Page>
[CHART]
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
<Table>
United Kingdom 29.50%
Japan 16.20%
France 13.10%
Switzerland 8.20%
Germany 7.60%
The Netherlands 5.80%
Italy 5.10%
Finland 2.80%
Spain 2.80%
South Korea 2.40%
Belgium 2.00%
Sweden 1.50%
Australia 1.00%
Hong Kong 1.00%
Ireland 1.00%
</Table>
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. TOTAL FINA ELF SA (FRANCE) (4.2%)
2. VODAFONE GROUP PLC (UNITED KINGDOM) (4.1%)
3. ENI-ENTE NAZIONALE IDROCARBURI SPA (ITALY) (4.1%)
4. GLAXOSMITHKLINE PLC (UNITED KINGDOM) (3.2%)
5. NOKIA OYJ (FINLAND) (2.8%)
6. CANON, INC. (JAPAN) (2.2%)
7. NOVARTIS AG (SWITZERLAND) (2.2%)
8. BARCLAYS PLC (UNITED KINGDOM) (2.1%)
9. NESTLE SA (SWITZERLAND) (2.1%)
10.WOLSELEY PLC (UNITED KINGDOM) (1.9%)
TOP 10 EQUITY HOLDINGS COMPRISED 28.9% OF THE PORTFOLIO'S MARKET VALUE OF
INVESTMENTS ($122,982,740). AS OF APRIL 30, 2003, THE FUND HELD 87 EQUITY
HOLDINGS. PORTFOLIO HOLDINGS ARE SUBJECT TO CHANGE AT ANY TIME.
AVERAGE ANNUAL TOTAL RETURNS
<Table>
<Caption>
SINCE
INCEPTION
1 YEAR 3 YEARS 5 YEARS (5/31/93)
- ----------------------------------------------------------------------
Class A Shares
Without Sales Charge (16.52%) (14.76%) (4.44%) 2.15%
With Sales Charge* (21.32%) (16.43%) (5.56%) 1.54%
- ----------------------------------------------------------------------
Class B Shares
Without CDSC (16.94%) (14.93%) (4.55%) 2.09%
With CDSC** (21.07%) (15.65%) (4.84%) 2.09%
- ----------------------------------------------------------------------
Class C Shares
Without CDSC (16.97%) (14.94%) (4.56%) 2.09%
With CDSC*** (17.79%) (14.94%) (4.56%) 2.09%
- ----------------------------------------------------------------------
Select Shares (16.16%) (14.62%) (4.34%) 2.20%
- ----------------------------------------------------------------------
</Table>
* Sales Charge for Class A Shares is 5.75%.
** Assumes 5% CDSC (contingent deferred sales charge) for the one year period,
3% CDSC for the three year period, 2% CDSC for the five year period and 0% for
the period since inception.
*** Assumes a 1% CDSC for the one year period and 0% CDSC thereafter.
(UNAUDITED)
25
<Page>
[CHART]
LIFE OF FUND PERFORMANCE (5/31/93 TO 4/30/03)
<Table>
<Caption>
JPMORGAN FLEMING INTERNATIONAL
EQUITY FUND (SELECT SHARES) MSCI EAFE INDEX LIPPER INTERNATIONAL FUNDS INDEX
5/31/1993 $ 1,000,000 $ 1,000,000 $ 1,000,000
$ 984,500 $ 984,400 $ 980,300
$ 1,013,641 $ 1,018,854 $ 1,011,376
$ 1,058,748 $ 1,073,872 $ 1,078,329
$ 1,046,890 $ 1,049,710 $ 1,074,339
$ 1,064,373 $ 1,082,041 $ 1,127,411
$ 998,169 $ 987,471 $ 1,082,653
$ 1,064,348 $ 1,058,766 $ 1,191,243
$ 1,125,016 $ 1,148,232 $ 1,265,457
$ 1,090,028 $ 1,145,017 $ 1,234,960
$ 1,052,640 $ 1,095,667 $ 1,178,399
4/30/1994 $ 1,060,429 $ 1,142,123 $ 1,209,626
$ 1,053,006 $ 1,135,613 $ 1,207,812
$ 1,047,004 $ 1,151,625 $ 1,188,728
$ 1,066,897 $ 1,162,680 $ 1,225,341
$ 1,089,302 $ 1,190,236 $ 1,267,738
$ 1,041,264 $ 1,152,744 $ 1,235,030
$ 1,047,199 $ 1,191,130 $ 1,257,137
$ 1,011,804 $ 1,133,837 $ 1,198,429
$ 1,019,696 $ 1,140,980 $ 1,182,490
$ 994,509 $ 1,097,166 $ 1,123,839
$ 972,232 $ 1,093,984 $ 1,123,501
$ 1,000,524 $ 1,162,249 $ 1,153,049
4/30/1995 $ 1,021,835 $ 1,205,949 $ 1,195,482
$ 1,000,275 $ 1,191,599 $ 1,207,197
$ 980,469 $ 1,170,746 $ 1,211,785
$ 1,032,140 $ 1,243,683 $ 1,278,433
$ 1,056,086 $ 1,196,299 $ 1,256,827
$ 1,075,623 $ 1,219,627 $ 1,277,816
$ 1,063,361 $ 1,186,819 $ 1,251,238
$ 1,081,119 $ 1,219,812 $ 1,264,251
$ 1,120,688 $ 1,268,971 $ 1,300,914
$ 1,159,016 $ 1,274,173 $ 1,331,616
$ 1,151,135 $ 1,278,506 $ 1,337,341
$ 1,176,114 $ 1,305,610 $ 1,358,204
4/30/1996 $ 1,224,100 $ 1,343,603 $ 1,402,481
$ 1,208,676 $ 1,318,881 $ 1,400,939
$ 1,225,597 $ 1,326,267 $ 1,413,687
$ 1,173,019 $ 1,287,540 $ 1,366,046
$ 1,166,098 $ 1,290,372 $ 1,383,805
$ 1,209,711 $ 1,324,696 $ 1,414,802
$ 1,183,339 $ 1,311,184 $ 1,409,143
$ 1,236,471 $ 1,363,369 $ 1,475,372
$ 1,237,707 $ 1,345,782 $ 1,488,503
$ 1,229,415 $ 1,298,680 $ 1,490,438
$ 1,261,256 $ 1,319,978 $ 1,517,415
$ 1,261,256 $ 1,324,730 $ 1,525,457
4/30/1997 $ 1,264,536 $ 1,331,751 $ 1,532,169
$ 1,315,117 $ 1,418,448 $ 1,618,584
$ 1,371,930 $ 1,496,604 $ 1,696,276
$ 1,427,631 $ 1,520,849 $ 1,750,726
$ 1,302,998 $ 1,407,242 $ 1,624,499
$ 1,379,094 $ 1,486,047 $ 1,728,792
$ 1,288,901 $ 1,371,770 $ 1,597,576
$ 1,277,687 $ 1,357,778 $ 1,584,157
$ 1,300,813 $ 1,369,591 $ 1,596,513
$ 1,345,822 $ 1,432,181 $ 1,635,149
$ 1,432,358 $ 1,524,127 $ 1,738,981
$ 1,512,570 $ 1,571,070 $ 1,833,407
4/30/1998 $ 1,548,720 $ 1,583,482 $ 1,861,642
$ 1,567,925 $ 1,575,723 $ 1,865,365
$ 1,542,211 $ 1,587,698 $ 1,849,137
$ 1,590,482 $ 1,603,734 $ 1,877,428
$ 1,337,595 $ 1,405,031 $ 1,607,266
$ 1,276,868 $ 1,361,897 $ 1,557,280
$ 1,350,799 $ 1,503,807 $ 1,671,741
$ 1,411,585 $ 1,580,802 $ 1,755,495
$ 1,477,083 $ 1,643,085 $ 1,798,680
$ 1,520,952 $ 1,638,156 $ 1,809,652
$ 1,451,901 $ 1,599,168 $ 1,763,144
$ 1,492,844 $ 1,665,853 $ 1,821,856
4/30/1999 $ 1,553,155 $ 1,733,320 $ 1,906,755
$ 1,478,604 $ 1,644,054 $ 1,835,824
$ 1,529,172 $ 1,708,172 $ 1,922,842
$ 1,568,319 $ 1,758,905 $ 1,965,721
$ 1,596,078 $ 1,765,413 $ 1,981,250
$ 1,616,987 $ 1,783,244 $ 1,987,590
$ 1,659,352 $ 1,850,115 $ 2,056,957
$ 1,816,160 $ 1,914,314 $ 2,207,732
$ 2,055,712 $ 2,086,220 $ 2,479,062
$ 1,981,912 $ 1,953,745 $ 2,334,037
$ 2,128,375 $ 2,006,300 $ 2,488,084
$ 2,139,656 $ 2,084,145 $ 2,494,553
E4/30/00 $ 1,993,517 $ 1,974,519 $ 2,336,398
$ 1,904,806 $ 1,926,341 $ 2,272,147
$ 1,957,378 $ 2,001,661 $ 2,377,348
$ 1,857,748 $ 1,917,791 $ 2,300,322
$ 1,874,839 $ 1,934,476 $ 2,339,197
$ 1,755,037 $ 1,840,267 $ 2,202,822
$ 1,704,492 $ 1,796,836 $ 2,127,926
$ 1,660,345 $ 1,729,455 $ 2,038,127
$ 1,714,971 $ 1,790,851 $ 2,114,150
$ 1,713,084 $ 1,789,955 $ 2,126,623
$ 1,578,093 $ 1,655,709 $ 1,977,334
$ 1,488,773 $ 1,545,273 $ 1,838,327
E4/30/01 $ 1,587,777 $ 1,652,669 $ 1,950,098
$ 1,540,143 $ 1,594,330 $ 1,902,905
$ 1,476,073 $ 1,529,122 $ 1,849,244
$ 1,442,124 $ 1,501,292 $ 1,801,163
$ 1,407,513 $ 1,463,309 $ 1,764,960
$ 1,290,689 $ 1,315,076 $ 1,572,579
$ 1,336,121 $ 1,348,742 $ 1,615,196
$ 1,391,570 $ 1,398,511 $ 1,675,443
$ 1,423,577 $ 1,406,762 $ 1,705,266
$ 1,359,943 $ 1,332,063 $ 1,636,373
$ 1,375,718 $ 1,341,387 $ 1,659,282
$ 1,451,933 $ 1,413,956 $ 1,747,058
E4/30/02 $ 1,480,391 $ 1,423,288 $ 1,759,288
$ 1,489,273 $ 1,441,364 $ 1,784,446
$ 1,450,105 $ 1,383,998 $ 1,713,960
$ 1,303,354 $ 1,247,397 $ 1,542,907
$ 1,315,345 $ 1,244,528 $ 1,544,141
$ 1,164,212 $ 1,110,866 $ 1,377,837
$ 1,232,668 $ 1,170,519 $ 1,449,347
$ 1,289,740 $ 1,223,661 $ 1,517,901
$ 1,248,727 $ 1,182,546 $ 1,469,328
$ 1,177,424 $ 1,133,234 $ 1,415,551
$ 1,145,634 $ 1,107,283 $ 1,373,650
$ 1,119,857 $ 1,085,580 $ 1,339,996
E4/30/03 $ 1,240,965 $ 1,191,967 $ 1,472,656
</Table>
Source: Lipper Analytical Services, Inc. Past performance is no guarantee of
future results. Investment returns and principal value will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than the original
cost.
The Fund commenced operations on 1/1/97.
Returns for the Select Shares prior to 1/1/97 (offering date of the Select
Shares) are calculated using performance of a predecessor account and the
historical expenses at the level indicated (absent reimbursements) in the
Expense Summary for the Fund as disclosed in the Prospectus. The account was not
registered with the SEC and was not subject to investment restrictions of
registered mutual funds. If the account had been registered, performance may
have been adversely affected.
Returns for the Class A and B Shares prior to 2/28/02 (offering date of the
Class A and B Shares) are calculated using the historical expenses of the Select
Shares, which are lower than the expenses of the Class A and B Shares.
Returns for Class C Shares prior to 1/31/03 (offering date of the Class C
Shares) are calculated using the historical expenses of the Class B Shares,
which are similar to the expenses of the Class C Shares.
The graph illustrates comparative performance for $1,000,000 invested in Select
Shares of the JPMorgan Fleming International Equity Fund, MSCI EAFE Index, and
Lipper International Funds Index from May 31, 1993 to April 30, 2003. The
performance of the Fund assumes reinvestment of all dividends and capital gains
and does not include a sales charge. The performance of the indices does not
include a sales charge and has been adjusted to reflect reinvestment of all
dividends and capital gains of the securities included in the benchmark. The
MSCI EAFE (Europe, Australasia, Far East) Index is a replica (or model) of the
world's equity markets, excluding the U.S. and Canada. The Lipper International
Funds Index represents the total returns of the funds in the indicated category,
as defined by Lipper, Inc. Investors cannot invest directly in an index.
Select Shares have a $1,000,000 minimum initial deposit and carry no sales
charge.
Certain fees and expenses of the Fund are currently being waived and reimbursed
as described in the prospectus. Had the expenses not been subsidized or waived,
returns would have been lower. Also, all performance shown in this section does
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or redemption of fund shares.
(UNAUDITED)
26
<Page>
JPMORGAN FLEMING EUROPEAN FUND
Portfolio of Investments
As of April 30, 2003 (unaudited)
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- 100.0%
- --------------------------------------------------------------------------------
COMMON STOCKS -- 98.2%
Austria -- 4.0%
6,744 OMV AG $ 809,828
142,376 Telekom Austria AG * 1,458,621
----------
2,268,449
Belgium -- 2.0%
8,520 Colruyt SA 556,710
27,864 Delhaize Group 588,650
----------
1,145,360
Croatia -- 0.6%
25,133 Pliva D.D., GDR 345,579
Denmark -- 2.8%
55 Dampskibsselskabet Svendborg, Class B 721,742
34,355 William Demant Holding * 857,242
----------
1,578,984
Finland -- 4.7%
319,300 Fortum OYJ 2,291,253
26,807 Upm-Kymmene OYJ 391,906
----------
2,683,159
France -- 13.3%
25,405 Autoroutes du Sud de la France * 694,621
517 Bricorama SA 18,457
14,406 Cap Gemini SA 448,228
18,585 Clarins 1,032,891
2,918 Etam Developpement SA * 47,056
104,303 France Telecom 2,409,517
2,785 Groupe Steria SCA 47,460
25,481 JC Decaux SA * 245,977
8,686 LVMH Moet Hennessy Louis Vuitton SA 379,018
23,119 Vinci SA 1,505,473
106,724 Wanadoo * 728,914
----------
7,557,612
Germany -- 15.6%
18,175 Altana AG 896,519
141,380 Deutsche Telekom AG 1,890,200
32,641 Fresenius Medical Care AG 1,635,583
22,727 Metro AG 623,936
48,233 Schwarz Pharma AG 2,066,990
17,346 Singulus Technologies AG * 300,050
12,929 Stada Arzneimittel AG 675,986
92,515 T-Online International AG * 726,855
----------
8,816,119
Greece -- 2.1%
57,560 Hellenic Technodomiki Tev SA 359,726
76,720 Hellenic Telecommunications Organization SA 821,945
----------
1,181,671
Ireland -- 2.0%
74,210 CRH PLC 1,138,750
</Table>
See notes to financial statements.
27
<Page>
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Italy -- 12.2%
269,694 Banca Nazionale del Lavoro SPA * $ 437,020
26,535 e.Biscom * 764,607
37,143 ENI-Ente Nazionale Idrocarburi SPA 529,335
89,030 Italcementi SPA 929,984
6,586 Permasteelisa SPA 119,804
220,929 Saeco International Group SPA * 845,687
2,259,940 Seat-Pagine Gialle SPA * 1,533,428
211,995 Telecom Italia SPA 1,043,343
9,108 TIM SPA 39,540
135,570 Tiscali SPA * 653,597
----------
6,896,345
Norway -- 3.8%
9,646 Norsk Hydro ASA 408,016
50,849 Statoil ASA 403,287
328,958 Telenor ASA 1,316,246
----------
2,127,549
Portugal -- 4.4%
530,453 Banco Comercial Portugues SA, Class R 751,819
437,552 Electricidade de Portugal SA 791,057
48,396 Jeronimo Martins SA * 382,929
75,714 Portugal Telecom SGPS SA 541,623
----------
2,467,428
Spain -- 4.4%
40,613 ACESA Infraestructuras SA 528,024
7,444 ACS Actividades Cons y Serv 280,377
29,761 Endesa SA 422,139
31,499 Gamesa Corporacion Tecnologica SA * 645,757
10,223 Grupo Ferrovial SA 271,302
26,752 Telefonica Publicidad e Informacion SA 114,644
30,145 Viscofan SA 213,625
----------
2,475,868
Sweden -- 4.5%
112,384 Saab AB, Class B 1,408,286
318,447 TeliaSonera AB * 1,155,004
----------
2,563,290
Switzerland -- 0.1%
600 Siegfried Holding AG * 73,214
The Netherlands -- 4.9%
126,870 Buhrmann NV 423,344
42,583 Koninklijke KPN NV * 283,234
575,136 Laurus NV * 795,894
18,839 Royal Dutch Petroleum Co. 770,539
5,933 Sligro Food Group NV 274,118
261,210 VersaTel Telecom International NV * 241,953
----------
2,789,082
United Kingdom -- 16.8%
38,266 Abbey National PLC 271,852
45,585 AWG PLC * 390,148
680,305 BT Group PLC 1,948,994
165,609 DS Smith PLC 423,499
</Table>
See notes to financial statements.
28
<Page>
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
United Kingdom -- Continued
44,268 Enterprise Inns PLC $ 433,709
52,780 ICAP PLC 820,352
46,009 Johnston Press PLC 276,122
131,036 Kingfisher PLC 512,056
112,367 Scottish Power PLC 698,163
48,620 Severn Trent PLC 555,608
130,225 Shell Transport & Trading Co., PLC 779,980
427,035 Stagecoach Group PLC 300,306
152,180 Tate & Lyle PLC 722,373
4,800 TI Automotive LTD, Class A (d) (f) * 0
57,539 United Utilities PLC 552,694
19,758 Victrex PLC 84,156
178,649 Wimpey George PLC 713,819
------------
9,483,831
-------------------------------------------------------------------
Total Common Stocks 55,592,290
(Cost $51,226,599)
-------------------------------------------------------------------
PREFERRED STOCK -- 1.4%
Germany -- 1.4%
12,620 Henkel KGaA 812,640
(Cost $786,501)
WARRANT -- 0.0% ^
Italy -- 0.0% ^
4,227 La Fondiaria Assicurazioni SPA, expires 6/30/08 10,850
(Cost $0)
<Caption>
PRINCIPAL
AMOUNT
(EUR)
FOREIGN GOVERNMENT SECURITY -- 0.4%
Germany -- 0.4%
$ 214,000 Federal Republic of Germany, Ser.
139, 4.00%, 2/16/07 247,505
(Cost $231,249)
- --------------------------------------------------------------------------------
Total Investments -- 100.0% $ 56,663,285
(Cost $52,244,349)
================================================================================
</Table>
See notes to financial statements.
29
<Page>
SUMMARY OF INVESTMENTS BY INDUSTRY, APRIL 30, 2003
<Table>
<Caption>
INDUSTRY % OF INVESTMENT SECURITIES
- ---------------------------------------------------------------------------
Telecommunications 20.9%
Oil & Gas 9.9
Construction 9.5
Pharmaceuticals 7.0
Food/Beverage Products 7.0
Utilities 6.0
Telecommunications Equipment 4.8
Health Care/Health Care Services 4.4
Consumer Products 3.9
Multi-Media 3.2
Banking 2.6
Internet Services/Software 2.6
Aerospace 2.5
Retailing 2.1
Manufacturing 1.9
Appliances & Household Durables 1.5
Financial Services 1.4
Paper/Forest Products 1.4
Transportation 1.3
Engineering Services 1.1
Other (below 1.0%) 5.0
- ---------------------------------------------------------------------------
Total 100.0%
- ---------------------------------------------------------------------------
</Table>
See notes to financial statements.
30
<Page>
Forward Foreign Currency Exchange Contracts
<Table>
<Caption>
NET UNREALIZED
SETTLEMENT VALUE APPRECIATION
SETTLEMENT VALUE AT 4/30/03 (DEPRECIATION)
CONTRACTS TO BUY DATE (USD) (USD) (USD)
- -------------------------------------------------------------------------------
42,547 CHF 5/2/03 $ 30,966 $ 31,370 $ 404
964,547 EUR 5/2/03 1,058,011 1,076,431 18,420
468,068 SEK 5/5/03 57,143 57,212 69
----------- ----------- --------
$ 1,146,120 $ 1,165,013 $ 18,893
=========== =========== ========
</Table>
<Table>
<Caption>
NET UNREALIZED
SETTLEMENT VALUE APPRECIATION
SETTLEMENT VALUE AT 4/30/03 (DEPRECIATION)
CONTRACTS TO SELL DATE (USD) (USD) (USD)
- -------------------------------------------------------------------------------
6,737,307 NOK 5/5/03 $ 955,660 $ 962,460 $ (6,800)
</Table>
See notes to financial statements.
31
<Page>
JPMORGAN FLEMING JAPAN FUND
Portfolio of Investments
As of April 30, 2003 (unaudited)
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- 100.0%
- --------------------------------------------------------------------------------
COMMON STOCKS -- 100.0%
Automotive -- 13.1%
3,000 Bridgestone Corp. $ 34,035
1,600 Denso Corp. 22,807
7,000 Harada Industry Co., LTD 24,946
1,000 Honda Motor Co., LTD 33,121
2,000 Keihin Corp. 19,822
9,000 Mazda Motor Corp. 15,848
4,000 Nissan Motor Co., LTD 30,689
--------
181,268
Business Services -- 5.9%
13 Backs Group, Inc. 19,621
600 Drake Beam Morin Japan, Inc. * 20,325
20 E-System Corp. * 13,500
8 Goodwill Group, Inc. 29,046
--------
82,492
Chemicals -- 5.0%
3,000 Chugoku Marine Paints LTD 8,704
1,600 Shin-Etsu Chemical Co., LTD 47,895
5,000 Sumitomo Chemical Co., LTD 13,542
--------
70,141
Computer Networks -- 2.2%
200 Obic Co., LTD 30,522
Computer Software -- 2.4%
1,000 CSK Corp. 17,650
1,500 Fuji Soft Abc, Inc. 15,848
--------
33,498
Construction Materials -- 4.0%
2,000 Daikin Industries LTD 33,272
1,000 Rinnai Corp. 21,801
--------
55,073
Consumer Services -- 1.3%
3,000 Nishio Rent All Co., LTD 18,112
Distribution -- 6.6%
4,000 Canon Sales Co., Inc. 29,952
700 Misumi Corp. 19,369
4,000 Mitsubishi Corp. 23,780
900 Tomen Electronics Corp. 19,319
--------
92,420
Electronics/Electrical Equipment -- 15.6%
400 Advantest Corp. 13,416
1,000 Fanuc LTD 40,919
200 Keyence Corp. 32,148
500 Mabuchi Motor Co., LTD 37,355
3,000 Phoenix Electric Co., LTD 23,268
600 SMC Corp. 45,179
3,000 Taiyo Yuden Co., LTD 22,866
--------
215,151
Engineering Services -- 1.5%
3,000 JGC Corp. 21,130
</Table>
See notes to financial statements.
32
<Page>
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments-- Continued
- --------------------------------------------------------------------------------
Food/Beverage Products -- 1.8%
1,000 Toyo Suisan Kaisha LTD $ 10,683
1,000 Yakult Honsha Co., LTD 14,673
-----------
25,356
Machinery & Engineering Equipment -- 4.1%
5,000 Komatsu LTD 19,076
6,000 Nippon Thompson Co., LTD 20,828
8,000 Trinity Industrial Corp. 17,508
-----------
57,412
Manufacturing -- 8.0%
8,000 Nakakita Seisakusho Co., LTD 18,447
5,000 Namura Shipbuilding Co., LTD 10,733
700 Noritsu Koki Co., LTD 21,130
10,000 NSK LTD 26,664
1,000 TDK Corp. 34,715
-----------
111,689
Office/Business Equipment -- 8.0%
2,000 Canon, Inc. 80,832
2,000 Ricoh Co., LTD 30,672
-----------
111,504
Photographic Equipment -- 3.7%
2,000 Fuji Photo Film Co., LTD 50,981
Retailing -- 6.1%
3 Geo Co., LTD 12,376
3 Geo Co., LTD (W/I) * 12,326
400 Ryohin Keikaku Co., LTD 7,379
600 Sugi Pharmacy Co., LTD 27,621
1,300 Yamada Denki Co., LTD 25,071
-----------
84,773
Semi-Conductors -- 1.3%
1,000 Shinko Electric Industries 17,609
Steel -- 1.2%
10,000 Topy Industries LTD 17,273
Telecommunications -- 5.3%
6 KDDI Corp. 18,212
27 NTT Docomo, Inc. 55,694
-----------
73,906
Tire & Rubber -- 0.0% ^
200 Yokohama Rubber Co., LTD 470
Tools/Equipment -- 2.9%
2,200 THK Co., LTD 20,292
5,000 Toyoda Machine Works LTD 19,998
-----------
40,290
- --------------------------------------------------------------------------------
Total Investments -- 100.0% $ 1,391,070
(Cost $1,387,424)
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
33
<Page>
JPMORGAN FLEMING INTERNATIONAL GROWTH FUND
Portfolio of Investments
As of April 30, 2003 (unaudited)
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- 100.0%
- --------------------------------------------------------------------------------
COMMON STOCKS -- 100.0%
Belgium -- 2.0%
5,560 Dexia $ 63,825
Brazil -- 1.1%
1,870 Uniao de Bancos Brasileiros SA, ADR 33,941
Finland -- 3.7%
7,070 Nokia OYJ 119,802
France -- 17.1%
2,530 Aventis SA 128,698
1,910 BNP Paribas 89,794
2,380 Compagnie de Saint-Gobain 82,521
3,920 Dassault Systemes SA 113,439
1,040 Total Fina Elf SA 136,589
---------
551,041
Germany -- 7.4%
1,250 Altana AG 61,644
1,520 Bayerische Motoren Werke AG 50,748
730 Deutsche Bank AG 37,811
1,970 Schering AG 87,969
---------
238,172
Hong Kong -- 2.7%
5,000 Cheung Kong Holdings LTD 27,632
54,000 Li & Fung LTD 60,584
---------
88,216
Italy -- 1.9%
4,180 ENI-Ente Nazionale Idrocarburi SPA 59,664
Japan -- 13.8%
3,000 Canon, Inc. 121,227
3,500 Chugai Pharmaceutical Co., LTD 36,678
3,000 Fuji Photo Film Co., LTD 76,459
1,400 Honda Motor Co., LTD 46,362
14,000 Nikko Cordial Corp. 37,559
800 Nintendo Co., LTD 62,508
1,210 Takefuji Corp. 62,995
---------
443,788
South Korea -- 5.8%
2,050 Kookmin Bank, ADR 56,478
670 Samsung Electronics Co., LTD, GDR 84,095
3,100 SK Telecom Co., LTD, ADR * 47,120
---------
187,693
Spain -- 1.9%
2,350 Altadis SA 60,678
Sweden -- 2.6%
15,770 Nordea AB 83,768
Switzerland -- 2.5%
390 Nestle SA 79,542
</Table>
See notes to financial statements.
34
<Page>
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Taiwan -- 1.4%
7,072 Hon Hai Precision Industry Co., GDR $ 44,225
The Netherlands -- 4.4%
4,750 Koninklijke Philips Electronics NV 88,506
4,170 Wolters Kluwer NV 54,394
-----------
142,900
United Kingdom -- 31.7%
11,200 Aviva PLC 78,814
30,000 BAE Systems PLC 60,933
13,820 Barclays PLC 95,537
23,990 BG Group PLC 96,014
14,810 Compass Group PLC 68,215
7,300 GlaxoSmithKline PLC 146,403
17,820 LogicaCMG PLC 31,492
1,500 Reckitt Benckiser PLC 26,472
2,100 Rio Tinto PLC 40,168
4,580 Royal Bank of Scotland Group PLC 120,200
25,900 Tesco PLC 82,015
80,900 Vodafone Group PLC 159,788
1,910 Wolseley PLC 18,481
-----------
1,024,532
- --------------------------------------------------------------------------------
Total Investments -- 100.0% $ 3,221,787
(Cost $3,907,594)
- --------------------------------------------------------------------------------
</Table>
SUMMARY OF INVESTMENTS BY INDUSTRY, APRIL 30, 2003
<Table>
<Caption>
INDUSTRY % OF INVESTMENT SECURITIES
- ---------------------------------------------------------------------------
Banking 18.0%
Pharmaceuticals 14.3
Telecommunications 10.1
Oil & Gas 9.1
Food/Beverage Products 7.1
Consumer Products 4.6
Office/Business Equipment 3.8
Computer Software 3.5
Financial Services 3.1
Automotive 3.0
Electronics/Electrical Equipment 2.7
Semi-Conductors 2.6
Construction Materials 2.6
Insurance 2.5
Photographic Equipment 2.4
Computers/Computer Hardware 2.4
Toys & Games 1.9
Aerospace 1.9
Multi-Media 1.7
Metals/Mining 1.3
Other (below 1%) 1.4
- ---------------------------------------------------------------------------
Total 100.0%
- ---------------------------------------------------------------------------
</Table>
See notes to financial statements.
35
<Page>
JPMORGAN FLEMING INTERNATIONAL VALUE FUND
Portfolio of Investments
As of April 30, 2003 (unaudited)
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- 99.3%
- --------------------------------------------------------------------------------
COMMON STOCKS -- 99.3%
Australia -- 5.0%
85,263 Australia & New Zealand Banking Group LTD $ 994,723
322,259 WMC Resources LTD * 806,358
-----------
1,801,081
Belgium -- 0.9%
29,470 Dexia 337,764
Brazil -- 1.3%
42,500 Cia Energetica de Minas Gerais, ADR 450,500
Denmark -- 1.0%
9,566 ISS A/S 358,043
France -- 7.2%
27,360 BNP Paribas 1,284,245
10,423 Michelin (C.G.D.E.), Class B 385,602
6,982 Total Fina Elf SA 915,547
-----------
2,585,394
Germany -- 9.4%
15,576 BASF AG 694,789
27,733 Bayerische Motoren Werke AG 924,474
24,996 E.ON AG 1,196,436
12,385 Schering AG 552,173
-----------
3,367,872
Hong Kong -- 1.1%
219,000 Wharf Holdings LTD 383,297
India -- 1.4%
44,457 Reliance Industries LTD, GDR, # 516,261
Italy -- 3.0%
34,817 ENI-Ente Nazionale Idrocarburi SPA 496,187
134,435 UniCredito Italiano SPA 588,114
-----------
1,084,301
Japan -- 13.6%
20,500 Chugai Pharmaceutical Co., LTD 214,867
102,000 Daiwa Securities Group, Inc. 401,124
217,000 Hitachi LTD 724,182
51,100 JFE Holdings, Inc. 615,719
262,000 Kubota Corp. 604,142
601,000 Marubeni Corp. 569,453
105,300 Nissan Motor Co., LTD 807,895
99,000 Sompo Japan Insurance, Inc. 452,415
13,200 Takeda Chemical Industries LTD 483,683
-----------
4,873,480
Russia -- 2.2%
11,340 LUKOIL, ADR 780,646
</Table>
See notes to financial statements.
36
<Page>
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Singapore -- 3.6%
162,000 DBS Group Holdings LTD $ 793,760
618,000 Singapore Telecommunications LTD 504,674
-----------
1,298,434
South Korea -- 1.2%
3,367 Samsung Electronics Co., LTD, GDR, # 422,607
Spain -- 6.4%
79,913 Iberdrola SA 1,286,905
91,479 Telefonica SA * 1,011,715
-----------
2,298,620
Switzerland -- 8.6%
24,502 Credit Suisse Group 585,317
3,215 Holcim LTD, Class B 603,272
12,484 Swiss Reinsurance Co. 815,515
22,877 UBS AG 1,085,405
-----------
3,089,509
The Netherlands -- 11.8%
68,657 ING Groep NV 1,114,835
42,261 Koninklijke Philips Electronics NV 786,210
28,626 Royal Dutch Petroleum Co. 1,170,839
34,805 TPG NV 543,015
21,412 VNU NV 621,289
-----------
4,236,188
United Kingdom -- 21.6%
159,700 Barclays PLC 1,103,285
322,240 BT Group PLC 923,180
26,780 GlaxoSmithKline PLC 536,730
44,662 Imperial Tobacco Group PLC 747,365
615,871 Legal & General Group PLC 762,850
32,201 Royal Bank of Scotland Group PLC 844,551
144,278 Scottish Power PLC 896,434
241,657 Tesco PLC 764,737
170,600 TI Automotive LTD, Class A (d) (f) * 0
124,050 Unilever PLC 1,219,326
-----------
7,798,458
- --------------------------------------------------------------------------------
Total Common Stocks 35,682,455
(Cost $32,295,156)
- --------------------------------------------------------------------------------
Short-Term Investments - 0.7%
- --------------------------------------------------------------------------------
<Caption>
PRINCIPAL
AMOUNT
U.S. TREASURY SECURITY -- 0.7%
$ 250,000 U.S. Treasury Bill, 1.10%, 8/28/03 @ 249,066
(Cost $249,091)
</Table>
See notes to financial statements.
37
<Page>
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Short-Term Investments -- Continued
- --------------------------------------------------------------------------------
MONEY MARKET FUND -- 0.0%^
8,720 JPMorgan Prime Money Market Fund (a) $ 8,720
(Cost $8,720)
- --------------------------------------------------------------------------------
Total Short-Term Investments 257,786
(Cost $257,811)
- --------------------------------------------------------------------------------
Total Investments -- 100.0% $ 35,940,241
(Cost $32,552,967)
- --------------------------------------------------------------------------------
</Table>
SUMMARY OF INVESTMENTS BY INDUSTRY, APRIL 30, 2003
<Table>
<Caption>
INDUSTRY % OF INVESTMENT SECURITIES
- ---------------------------------------------------------------------------
Banking 21.2%
Utilities 10.7
Oil & Gas 9.3
Insurance 8.7
Automotive 5.9
Food/Beverage Products 5.5
Pharmaceuticals 5.0
Telecommunications 4.2
Electronics/Electrical Equipment 4.2
Chemicals 3.4
Telecommunications Equipment 2.6
Metals/Mining 2.2
Agricultural Production/Services 2.1
Multi-Media 1.7
Steel 1.7
Machinery & Engineering Equipment 1.7
Construction Materials 1.7
Distribution 1.6
Transportation 1.5
Semi-Conductors 1.2
Financial Services 1.1
Diversified 1.1
Consumer Services 1.0
Other (below 1.0%) 0.7
- ---------------------------------------------------------------------------
Total 100.0%
- ---------------------------------------------------------------------------
</Table>
Futures Contracts
<Table>
<Caption>
- --------------------------------------------------------------------------------
NOTIONAL UNREALIZED
NUMBER VALUE AT APPRECIATION
OF EXPIRATION 4/30/03 (DEPRECIATION)
CONTRACTS DESCRIPTION DATE (USD) (USD)
- --------------------------------------------------------------------------------
LONG FUTURES OUTSTANDING
10 DJ Euro Stoxx June, 2003 $ 255,786 $ (3,467)
5 FTSE 100 Index June, 2003 312,700 (1,307)
2 Topix Index June, 2003 132,232 486
</Table>
See notes to financial statements.
38
<Page>
Forward Foreign Currency Exchange Contracts
<Table>
<Caption>
NET UNREALIZED
SETTLEMENT VALUE APPRECIATION
SETTLEMENT VALUE AT 4/30/03 (DEPRECIATION)
CONTRACTS TO BUY DATE (USD) (USD) (USD)
- -----------------------------------------------------------------------------------------------------
300,000 CHF for
26,144,400 JPY 5/23/03 $ 219,398 $ 221,329 $ 1,931
1,220,000 EUR for
157,417,776 JPY 5/23/03 1,321,013 1,360,474 39,461
36,280,440 JPY for
420,000 CHF 5/23/03 309,860 304,457 (5,403)
44,352,050 JPY for
230,000 GBP 5/23/03 367,116 372,192 5,076
171,964 AUD 5/23/03 100,684 107,351 6,667
2,470,000 CHF 5/23/03 1,822,419 1,822,269 (150)
11,860,140 DKK 5/23/03 1,704,167 1,781,280 77,113
1,440,000 EUR 5/23/03 1,577,478 1,605,806 28,328
1,848,678 GBP 5/23/03 2,914,097 2,950,776 36,679
6,929,212 HKD 5/23/03 888,190 888,337 147
1,016,626,636 JPY 5/23/03 4,761,688 4,754,999 (6,689)
1,326,085 NOK 5/23/03 186,804 189,066 2,262
6,508,227 SEK 5/23/03 759,694 794,565 34,871
-------------- -------------- --------------
$ 16,932,608 $ 17,152,901 $ 220,293
============== ============== ==============
</Table>
<Table>
<Caption>
NET UNREALIZED
SETTLEMENT VALUE APPRECIATION
SETTLEMENT VALUE AT 4/30/03 (DEPRECIATION)
CONTRACTS TO SELL DATE (USD) (USD) (USD)
- -----------------------------------------------------------------------------------------------------
3,280,968 CHF 5/23/03 $ 2,397,996 $ 2,420,570 $ (22,574)
7,649,338 EUR 5/23/03 8,219,176 8,530,108 (310,932)
711,919 GBP 5/23/03 1,117,501 1,136,334 (18,833)
3,615,591 HKD 5/23/03 463,500 463,525 (25)
214,181,850 JPY 5/23/03 1,801,656 1,797,364 4,292
1,983,354 SGD 5/23/03 1,135,649 1,117,388 18,261
-------------- -------------- --------------
$ 15,135,478 $ 15,465,289 $ (329,811)
============== ============== ==============
</Table>
See notes to financial statements.
39
<Page>
JPMORGAN FLEMING INTERNATIONAL
OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS
As of April 30, 2003 (unaudited)
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- 99.3%
- --------------------------------------------------------------------------------
COMMON STOCKS -- 98.3%
Australia -- 3.2%
136,877 Alumina LTD $ 373,319
150,000 Commonwealth Bank of Australia 2,554,126
497,884 Foster's Group LTD 1,395,305
719,595 Southern Pacific Petroleum NL * 99,032
801,491 WMC Resources LTD * 2,005,495
-------------
6,427,277
Belgium -- 1.2%
107,544 Interbrew SA 2,400,375
Finland -- 2.4%
287,710 Nokia OYJ 4,867,624
France -- 11.9%
120,618 BNP Paribas 5,661,666
73,518 France Telecom 1,698,349
17,210 Lafarge SA 1,156,219
41,051 Pechiney SA, A Shares 1,184,260
45,343 Sanofi-Synthelabo SA 2,704,711
21,084 Technip-Coflexip SA 1,727,078
29,030 Thales SA 776,565
35,959 Total Fina Elf SA 4,715,289
30,610 Valeo SA 876,904
158,152 Veolia Environnement 3,415,219
-------------
23,916,260
Germany -- 3.2%
7,030 Adidas-Salomon AG 608,023
37,300 Bayerische Motoren Werke AG 1,243,389
16,600 DaimlerChrysler AG 535,388
41,291 Deutsche Telekom AG 552,046
33,320 E.ON AG 1,594,865
44,900 Schering AG 2,001,825
-------------
6,535,536
Hong Kong -- 2.6%
244,500 CLP Holdings LTD 1,000,064
920,300 CNOOC LTD 1,209,516
70,000 Sun Hung Kai Properties LTD 328,502
1,533,000 Wharf Holdings LTD 2,683,077
-------------
5,221,159
India -- 2.4%
75,718 Ranbaxy Laboratories LTD, GDR 1,177,415
321,660 Reliance Industries LTD, GDR, # 3,735,309
-------------
4,912,724
Italy -- 3.1%
99,200 ENI-Ente Nazionale Idrocarburi SPA 1,413,727
1,101,717 UniCredito Italiano SPA 4,819,689
-------------
6,233,416
</Table>
See notes to financial statements.
40
<Page>
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Japan -- 14.8%
45,100 Aeon Co., LTD $ 1,024,828
33,300 Aiful Corp. 1,250,914
154,100 Chugai Pharmaceutical Co., LTD 1,615,169
200,000 Daiwa Securities Group, Inc. 786,517
101,200 Fast Retailing Co., LTD 2,944,525
727,000 Fujitsu LTD 2,029,943
94,700 Honda Motor Co., LTD 3,136,551
208,600 JFE Holdings, Inc. 2,513,485
37,800 Kyocera Corp. 1,844,675
161,000 Matsushita Electric Industrial Co., LTD 1,282,492
535,000 Minebea Co., LTD 1,588,043
571,000 Mitsubishi Chemical Corp. 947,996
170,000 Mitsubishi Pharma Corp. 1,026,329
238,000 NEC Corp. 744,374
11,100 Nintendo Co., LTD 867,449
430 Nippon Telegraph & Telephone Corp. 1,507,127
204,000 Ricoh Co., LTD 3,128,593
14,400 Rohm Co., LTD 1,483,951
-------------
29,722,961
Mexico -- 1.1%
129,640 Grupo Financiero BBVA Bancomer SA de CV, ADR * 2,254,711
Philippines -- 0.0% ^
375,000 ABS-CBN Broadcasting Corp., PDR * 85,755
Russia -- 2.0%
59,170 LUKOIL, ADR 4,073,262
Singapore -- 1.0%
261,000 DBS Group Holdings LTD 1,278,835
905,000 Singapore Telecommunications LTD 739,046
-------------
2,017,881
South Korea -- 1.6%
53,192 KT Corp., ADR 1,077,670
4,180 Samsung Electronics Co., LTD 1,049,300
69,040 SK Telecom Co., LTD, ADR 1,049,408
-------------
3,176,378
Spain -- 3.3%
50,005 Acerinox SA 1,863,343
272,113 Iberdrola SA 4,382,062
29,409 Repsol YPF SA 428,306
-------------
6,673,711
Sweden -- 2.1%
260,612 Assa Abloy AB, Class B 2,485,145
155,735 Securitas AB, B Shares 1,827,764
-------------
4,312,909
Switzerland -- 9.2%
167,647 Credit Suisse Group 4,004,839
25,340 Lonza Group AG 1,538,560
115,160 Novartis AG 4,542,549
22,490 Roche Holding AG 1,431,016
</Table>
See notes to financial statements.
41
<Page>
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Switzerland -- Continued
1,097 Serono SA $ 595,290
18,702 Swiss Reinsurance Co. 1,221,704
78,172 UBS AG 3,708,891
13,660 Zurich Financial Services AG 1,440,227
-------------
18,483,076
Taiwan -- 0.0% ^
1,610 United Microelectronics Corp., ADR * 5,216
The Netherlands -- 5.0%
107,120 Aegon NV 1,089,060
36,941 Akzo Nobel NV 821,223
79,328 Heineken Holding NV, Class A 2,300,889
1,893 Heineken NV 70,286
61,974 ING Groep NV 1,006,318
265,835 Koninklijke KPN NV * 1,768,159
59,539 Koninklijke Philips Electronics NV 1,107,644
66,733 TPG NV 1,041,144
63,768 Wolters Kluwer NV 830,494
-------------
10,035,217
United Kingdom -- 28.2%
153,404 Amersham PLC 1,102,695
263,569 Amvescap PLC 1,432,257
106,971 AstraZeneca PLC 4,197,254
558,989 Barclays PLC 3,861,766
222,383 BBA Group PLC 690,415
74,403 British American Tobacco PLC 713,493
132,407 British Sky Broadcasting PLC * 1,372,362
1,205,222 BT Group PLC 3,452,820
89,269 Carnival PLC 2,228,574
392,461 Centrica PLC 1,042,812
461,753 Dixons Group PLC 821,027
117,481 GlaxoSmithKline PLC 2,354,577
533,144 Hays PLC 711,506
327,382 HSBC Holdings PLC 3,586,823
70,420 Imperial Tobacco Group PLC 1,178,394
1,655,464 Legal & General Group PLC 2,050,544
70,052 Man Group PLC 1,181,193
396,104 Prudential PLC 2,424,688
193,565 Reckitt Benckiser PLC 3,413,869
48,550 Royal Bank of Scotland Group PLC 1,273,343
273,794 Scottish Power PLC 1,701,148
890,085 Tesco PLC 2,816,725
527,730 Unilever PLC 5,187,219
3,917,065 Vodafone Group PLC 7,731,709
-------------
56,527,213
-------------------------------------------------------------------
Total Common Stocks 197,882,661
(Cost $196,941,085)
-------------------------------------------------------------------
</Table>
See notes to financial statements.
42
<Page>
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments-- Continued
- --------------------------------------------------------------------------------
PREFERRED STOCK-- 1.0%
Australia-- 1.0%
342,277 News Corp., LTD $ 2,021,216
(Cost $1,428,852)
- --------------------------------------------------------------------------------
Total Long-Term Investments 199,903,877
(Cost $198,369,937)
- --------------------------------------------------------------------------------
Short-Term Investments-- 0.7%
- --------------------------------------------------------------------------------
<Caption>
PRINCIPAL
AMOUNT
U.S. TREASURY SECURITY-- 0.4%
$ 750,000 U.S. Treasury Bill, 1.10%, 8/28/03 747,199
(Cost $747,273)
<Caption>
SHARES
MONEY MARKET FUND-- 0.3%
513,065 JPMorgan Prime Money Market Fund (a) 513,065
(Cost $513,065)
- --------------------------------------------------------------------------------
Total Short-Term Investments 1,260,264
(Cost $1,260,338)
- --------------------------------------------------------------------------------
Total Investments-- 100.0% $ 201,164,141
(Cost $199,630,275)
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
43
<Page>
SUMMARY OF INVESTMENTS BY INDUSTRY, APRIL 30, 2003
<Table>
<Caption>
INDUSTRY % OF INVESTMENT SECURITIES
- --------------------------------------------------------------------------------
Banking 15.3%
Pharmaceuticals 10.8
Telecommunications 10.4
Food/Beverage Products 7.0
Oil & Gas 5.9
Utilities 4.8
Insurance 4.6
Electronics/Electrical Equipment 4.5
Chemicals 3.5
Financial Services 3.4
Automotive 2.9
Retailing 2.4
Steel 2.2
Consumer Products 2.1
Metals/Mining 1.8
Telecommunications Equipment 1.7
Environmental Services 1.7
Manufacturing 1.6
Office/Business Equipment 1.6
Multi-Media 1.5
Diversified 1.3
Entertainment/Leisure 1.1
Computers/Computer Hardware 1.0
Other (below 1.0%) 6.9
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
44
<Page>
Forward Foreign Currency Exchange Contracts
- --------------------------------------------------------------------------------
<Table>
<Caption>
NET UNREALIZED
SETTLEMENT VALUE APPRECIATION
SETTLEMENT VALUE AT 4/30/03 (DEPRECIATION)
CONTRACTS TO BUY DATE (USD) (USD) (USD)
- --------------------------------------------------------------------------------
2,680,000 AUD for
199,649,280 JPY 5/20/03 $ 1,675,218 $ 1,673,516 $ (1,702)
2,460,000 CHF for
214,389,000 JPY 5/20/03 1,798,897 1,814,730 15,833
6,321,730 EUR for
10,186,204 CAD 5/20/03 7,092,732 7,050,406 (42,326)
9,330,000 EUR for
1,212,313,590 JPY 5/20/03 10,172,288 10,405,424 233,136
2,430,000 GBP for
5,699,930 CAD 5/20/03 3,968,904 3,879,388 (89,516)
190,316,625 JPY for
1,510,000 EUR 5/20/03 1,684,051 1,596,910 (87,141)
15,888,403 CAD 5/20/03 10,521,146 11,063,216 542,070
3,461,735 EUR 5/20/03 3,781,749 3,860,753 79,004
5,832,458 GBP 5/20/03 9,197,251 9,311,263 114,012
915,000 HKD 5/2/03 117,320 117,322 2
3,238,994,341 JPY 5/20/03 27,295,929 27,177,773 (118,156)
------------ ------------ -------------
$ 77,305,485 $ 77,950,701 $ 645,216
============ ============ =============
</Table>
<Table>
<Caption>
NET UNREALIZED
SETTLEMENT VALUE APPRECIATION
SETTLEMENT VALUE AT 4/30/03 (DEPRECIATION)
CONTRACTS TO SELL DATE (USD) (USD) (USD)
- --------------------------------------------------------------------------------
6,353,306 CHF 5/20/03 $ 4,699,121 $ 4,686,802 $ 12,319
16,933,823 EUR 5/20/03 18,258,901 18,885,703 (626,802)
8,898,000 GBP 5/20/03 14,085,207 14,205,264 (120,057)
26,600,364 HKD 5/20/03 3,409,729 3,410,286 (557)
1,104,188,120 JPY 5/20/03 9,324,258 9,265,028 59,230
------------ ------------ -------------
$ 49,777,216 $ 50,453,083 $ (675,867)
============ ============ =============
</Table>
See notes to financial statements.
45
<Page>
JPMORGAN FLEMING EMERGING
MARKETS EQUITY FUND
PORTFOLIO OF INVESTMENTS
As of April 30, 2003 (unaudited)
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- 98.0%
- --------------------------------------------------------------------------------
COMMON STOCKS -- 96.0%
Argentina -- 0.7%
16,563 Tenaris SA, ADR * $ 389,231
Brazil -- 8.6%
11,411 Brasil Telecom Participacoes SA, ADR 403,949
36,300 Cia de Bebidas das Americas, ADR 722,007
24,664 Cia Vale do Rio Doce, ADR 651,130
19,601 Empresa Brasileira de Aeronautica SA, ADR 271,866
109,321 Petroleo Brasileiro SA, ADR 1,893,281
78,108 Tele Norte Leste Participacoes SA, ADR 847,472
18,958 Uniao de Bancos Brasileiros SA, ADR 344,088
-------------
5,133,793
Chile -- 1.9%
15,039 Antofagasta PLC 151,308
20,135 Banco Santander Chile SA, ADR * 439,346
46,859 Cia de Telecomunicaciones de Chile SA, ADR * 537,473
-------------
1,128,127
China -- 4.0%
1,731,014 Chaoda Modern Agriculture 153,147
676,000 China Mobile LTD 1,356,499
2,054,669 China Petroleum & Chemical Corp., Class H 405,715
496,000 Huaneng Power International, Inc., Class H 470,621
-------------
2,385,982
Czech Republic -- 0.8%
37,982 CEZ AS 141,673
5,202 Komercni Banka AS 362,418
-------------
504,091
Egypt -- 0.2%
21,063 Orascom Construction Industries 146,288
Hong Kong -- 2.2%
641,950 CNOOC LTD 843,691
516,265 Cosco Pacific LTD 443,512
-------------
1,287,203
India -- 2.3%
19,743 ITC LTD 284,438
2,250 ITC LTD, GDR 32,625
42,615 Reliance Industries LTD, GDR, # 494,870
39,714 Satyam Computer Services LTD * 127,879
28,447 State Bank of India LTD, GDR 421,016
-------------
1,360,828
Indonesia -- 2.2%
38,500 Telekomunikasi Indonesia TBK PT, ADR 356,510
384,050 Unilever Indonesia TBK PT 929,849
-------------
1,286,359
Israel -- 2.7%
15,100 Check Point Software Technologies LTD * 237,523
29,900 Teva Pharmaceutical Industries LTD, ADR 1,396,330
-------------
1,633,853
</Table>
See notes to financial statements.
46
<Page>
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Malaysia -- 3.6%
36,132 British American Tobacco BHD $ 361,320
83,000 Genting BHD 262,105
301,000 Hong Leong Bank BHD 324,763
401,000 IOI Corp., BHD 532,908
232,000 Malakoff BHD 262,526
35,000 Nestle BHD 184,211
357,264 Public Bank BHD 225,640
-------------
2,153,473
Mexico -- 6.1%
45,748 America Movil SA de CV, Ser. L, ADR 767,194
15,047 Fomento Economico Mexicano SA de CV, ADR 571,184
609,848 Grupo Financiero BBVA Bancomer, Class B * 530,328
33,296 Telefonos de Mexico SA de CV, Class L, ADR 1,005,872
297,387 Wal-Mart de Mexico SA de CV, Ser. C 757,048
-------------
3,631,626
Philippines -- 0.5%
1,680,407 Ayala Corp. 128,092
1,543,606 SM Prime Holdings, Inc. 144,139
-------------
272,231
Poland -- 1.3%
7,158 Bank Pekao SA, GDR, # * 160,774
82,783 KGHM Polska Miedz SA * 251,180
111,405 Telekomunikacja Polska SA * 376,072
-------------
788,026
Russia -- 7.4%
17,460 LUKOIL, ADR 1,201,946
9,260 Mobile Telesystems, ADR * 444,480
71,200 OAO Gazprom, ADR, Regulation S 1,121,400
8,458 Vimpel-Communications, ADR * 337,136
7,388 YUKOS, ADR 1,296,594
-------------
4,401,556
South Africa -- 15.5%
18,901 Anglo American Platinum Corp., LTD 529,913
198,666 Anglo American PLC 2,877,753
19,263 Anglogold LTD 549,328
1,169,368 FirstRand LTD 1,141,035
34,758 Harmony Gold Mining Co., LTD 367,820
19,194 Impala Platinum Holdings LTD 949,636
181,128 Nampak LTD 282,036
101,648 Sappi LTD 1,255,879
308,005 Standard Bank Group LTD 1,236,033
-------------
9,189,433
South Korea -- 25.5%
93,576 Kookmin Bank 2,626,290
22,679 POSCO 1,913,249
20,790 Samsung Electronics Co., LTD 5,218,889
15,511 Samsung Fire & Marine Insurance Co., LTD 765,975
9,270 Samsung SDI Co., LTD 579,852
36,573 Shinhan Financial Group Co., LTD, GDR, # 722,430
6,730 Shinsegae Co., LTD 803,169
163,625 SK Telecom Co., LTD, ADR 2,487,100
-------------
15,116,954
</Table>
See notes to financial statements.
47
<Page>
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Taiwan -- 7.5%
903,000 Chinatrust Financial Holding Co. * $ 704,578
831,250 Far Eastern Textile Co., LTD 243,223
183,000 Formosa Plastics Corp. 225,732
238,350 Hon Hai Precision Industry Co., LTD 745,271
519,000 Lite-On Technology Corp. 461,532
294,000 Nan YA Plastic Corp. 254,699
661,899 Sinopac Holdings Co. * 206,013
244,675 Synnex Technology International Corp. 287,770
643,658 Taishin Financial Holdings Co., LTD * 291,733
776,408 Taiwan Semiconductor Manufacturing Co., LTD * 1,064,610
-------------
4,485,161
Thailand -- 1.1%
69,697 BEC World PLC 328,407
136 Dhana Siam Finance PCL (d) (f) * 0
304,768 PTT PCL 334,129
-------------
662,536
Turkey -- 1.3%
112,622,000 Akbank TAS 399,139
64,194,000 Turkcell Iletisim Hizmet AS * 385,328
-------------
784,467
Venezuela -- 0.6%
32,455 Cia Anonima Nacional Telefonos de Venezuela 337,857
(CANTV), ADR
-------------------------------------------------------------------
Total Common Stocks 57,079,075
(Cost $61,892,363)
-------------------------------------------------------------------
PREFERRED STOCKS -- 2.0%
Brazil -- 2.0%
88,000 Aracruz Celulose SA, Class B 187,591
12,426,284 Banco Itau Holding Financeira SA 831,290
13,231,112 Cia Energetica de Minas Gerais 141,713
-------------------------------------------------------------------
Total Preferred Stocks 1,160,594
(Cost $877,754)
- --------------------------------------------------------------------------------
Total Long-Term Investments 58,239,669
(Cost $62,770,117)
- --------------------------------------------------------------------------------
Short-Term Investments -- 2.0%
- --------------------------------------------------------------------------------
PARTICIPATORY NOTES -- 2.0%
India -- 2.0%
62,604 Housing Development Finance Corp.,
expires 1/30/04 451,375
8,064 Infosys Technologies LTD, expires 5/13/03 475,695
18,045 Ranbaxy Laboratories LTD, expires 10/3/03 257,502
- --------------------------------------------------------------------------------
Total Short-Term Investments 1,184,572
(Cost $1,308,564)
- --------------------------------------------------------------------------------
Total Investments -- 100.0% $ 59,424,241
(Cost $64,078,681)
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
48
<Page>
SUMMARY OF INVESTMENTS BY INDUSTRY, APRIL 30, 2003
<Table>
<Caption>
INDUSTRY % OF INVESTMENT SECURITIES
- --------------------------------------------------------------------------------
Telecommunications 16.2%
Banking 14.1
Oil & Gas 12.6
Electronics/Electrical Equipment 11.0
Metals/Mining 10.7
Financial Services 5.1
Steel 3.2
Consumer Products 2.7
Retailing 2.6
Computers/Computer Hardware 2.5
Food/Beverage Products 2.5
Paper/Forest Products 2.4
Pharmaceuticals 2.4
Semi-Conductors 1.8
Chemicals 1.6
Insurance 1.3
Agricultural Production/Services 1.2
Computer Software 1.0
Other (below 1%) 5.1
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
49
<Page>
JPMORGAN FLEMING ASIA
EQUITY FUND
PORTFOLIO OF INVESTMENTS
As of April 30, 2003 (unaudited)
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- 100.0%
- --------------------------------------------------------------------------------
COMMON STOCKS -- 100.0%
China -- 13.6%
300,000 China Mobile LTD $ 601,996
1,250,000 China Petroleum & Chemical Corp., Class H 246,825
2,000,000 China Telecom Corp., LTD, Class H * 382,098
362,000 Denway Motors LTD 119,521
350,000 Huaneng Power International, Inc., Class H 332,092
800,000 Jiangxi Copper Co., LTD, Class H 98,474
800,000 Legend Group LTD 225,669
700,000 People's Food Holdings LTD 346,925
2,000,000 PetroChina Co., LTD, Class H 456,466
206,000 Techtronic Industries Co. 258,852
-------------
3,068,918
Hong Kong -- 19.8%
1,000,000 Brilliance China Automotive Holdings LTD 233,362
187,000 Cathay Pacific Airways LTD 225,386
70,000 Cheung Kong Holdings LTD 386,842
300,000 China Merchants Holdings International Co., LTD 236,567
175,000 CLP Holdings LTD 715,793
250,000 Cosco Pacific LTD 214,770
216,500 Esprit Holdings LTD 424,725
264,700 Hong Kong & China Gas Co., LTD 312,248
69,000 Hong Kong Electric Holdings LTD 276,918
150,000 Hutchison Whampoa LTD 834,717
154,000 Li & Fung LTD 172,778
96,000 Sun Hung Kai Properties LTD 450,516
-------------
4,484,622
Indonesia -- 1.6%
350,000 Astra Interntional TBK PT * 122,067
500,000 Telekomunikasi Indonesia TBK PT 236,352
-------------
358,419
Malaysia -- 8.4%
244,000 Arab-Malaysian Corp., BHD * 54,579
147,000 Gamuda BHD 201,158
120,000 Genting BHD 378,947
103,000 IJM Corp., BHD 119,805
91,000 IOI Corp., BHD 120,934
170,000 Malayan Banking BHD 353,421
254,250 Public Bank BHD 160,579
142,000 Resorts World BHD 312,026
80,000 Tanjong PLC 196,842
-------------
1,898,291
Singapore -- 9.8%
100,000 Keppel Corp., LTD 251,183
600,000 Neptune Orient Lines LTD * 412,255
50,000 Oversea-Chinese Banking Corp. 266,107
250,000 SembCorp Logistics LTD 252,027
75,000 Singapore Airlines LTD 399,161
65,000 United Overseas Bank LTD 380,716
30,000 Venture Corp., LTD 250,056
-------------
2,211,505
</Table>
See notes to financial statements.
50
<Page>
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
South Korea -- 24.6%
24,400 Kookmin Bank $ 684,807
16,000 Korean Air Co., LTD 152,099
12,000 KT Freetel * 266,173
2,000 Kumgang Korea Chemical Co., LTD 170,370
13,000 LG Investment & Securities Co., LTD * 121,975
10,000 POSCO 843,621
8,800 Samsung Electronics Co., LTD 2,209,054
2,500 Samsung Fire & Marine Insurance Co., LTD 123,457
1,000 Shinsegae Co., LTD 119,342
6,000 Sindo Ricoh Co., LTD 334,321
4,000 SK Telecom Co., LTD 556,379
-------------
5,581,598
Taiwan -- 19.2%
750,000 Capital Securities Corp. 192,556
450,000 Chinatrust Financial Holding Co. * 351,119
250,000 CTCI Corp. 136,259
346,000 Formosa Plastics Corp. 426,793
380,000 Fubon Financial Holding Co., LTD 259,438
135,000 Hon Hai Precision Industry Co., LTD 422,117
180,000 Kaulin Manufacturing Co., LTD 248,365
285,000 Lite-On Technology Corp. 253,442
500,000 Mega Financial Holding Co., LTD * 222,318
150,000 Nan YA Plastic Corp. 129,948
200,000 Nien Hsing Textile Co., LTD 186,460
33,000 Nien Made Enterprises * 69,578
125,000 Quanta Computer, Inc. 218,732
57,000 Synnex Technology International Corp. 67,040
142,000 Taiwan Hon Chuan Enterprise Co., LTD 189,007
360,000 Taiwan Semiconductor Manufacturing Co., LTD * 493,632
200,000 Taiwan Styrene Monomer * 131,383
600,000 Uni-President Enterprises Co. 170,396
300,000 United Microelectronics Corp. * 172,117
-------------
4,340,700
Thailand -- 1.1%
306,000 Kasikorn Bank PCL, Foreign Shares * 258,747
United Kingdom -- 1.9%
40,000 HSBC Holdings PLC (Hong Kong Registered Shares) 437,233
- --------------------------------------------------------------------------------
Total Investments -- 100.0% $ 22,640,033
(Cost $25,278,362)
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
51
<Page>
SUMMARY OF INVESTMENTS BY INDUSTRY, APRIL 30, 2003
<Table>
<Caption>
INDUSTRY % OF INVESTMENT SECURITIES
- --------------------------------------------------------------------------------
Electronics/Electrical Equipment 13.5%
Banking 12.8
Telecommunications 6.3
Utilities 5.8
Diversified 4.8
Computers/Computer Hardware 4.3
Real Estate 3.9
Chemicals 3.8
Steel 3.7
Financial Services 3.5
Airlines 3.4
Oil & Gas 3.1
Retailing 2.9
Semi-Conductors 2.9
Transportation 2.9
Telecommunications Equipment 2.7
Entertainment/Leisure 2.3
Food/Beverage Products 2.3
Engineering Services 2.0
Hotels/Other Lodging 1.7
Automotive 1.6
Office/Business Equipment 1.5
Machinery & Engineering Equipment 1.1
Consumer Products 1.1
Consumer Services 1.0
Computer Software 1.0
Other (below 1.0%) 4.1
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
</Table>
Forward Foreign Currency Exchange Contracts
- --------------------------------------------------------------------------------
<Table>
<Caption>
NET UNREALIZED
SETTLEMENT VALUE APPRECIATION
SETTLEMENT VALUE AT 4/30/03 (DEPRECIATION)
CONTRACTS TO BUY DATE (USD) (USD) (USD)
- --------------------------------------------------------------------------------
46,428 SGD 5/2/03 $ 26,143 $ 26,148 $ 5
495,109 SGD 5/5/03 279,092 278,840 (252)
4,826,708 THB 5/6/03 112,747 112,589 (158)
---------- ---------- ---------
$ 417,982 $ 417,577 $ (405)
========== ========== =========
</Table>
See notes to financial statements.
52
<Page>
JPMORGAN FLEMING INTERNATIONAL
EQUITY FUND
PORTFOLIO OF INVESTMENTS
As of April 30, 2003 (unaudited)
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- 100.0%
- --------------------------------------------------------------------------------
COMMON STOCKS -- 100.0%
Australia -- 1.0%
270,339 News Corp., LTD $ 1,924,482
315,278 Woodside Petroleum LTD 2,260,170
-------------
4,184,652
Belgium -- 2.0%
445,630 Dexia 5,122,413
212,420 Fortis 3,536,935
-------------
8,659,348
Finland -- 2.8%
712,356 Nokia OYJ 12,052,002
France -- 13.1%
160,898 Aventis SA 8,171,850
392,374 AXA 5,959,657
134,936 BNP Paribas 6,333,737
201,692 Compagnie de Saint-Gobain 6,982,218
136,962 Dassault Systemes SA 3,957,264
34,481 Imerys SA 4,575,353
50,100 Renault SA 2,166,568
135,657 Total Fina Elf SA 17,788,651
-------------
55,935,298
Germany -- 7.6%
274,732 Bayer AG 5,012,910
220,162 Bayerische Motoren Werke AG 7,339,062
143,773 Deutsche Bank AG 7,435,261
249,554 Deutsche Post AG 2,993,891
121,570 HeidelbergCement AG 3,749,966
38,100 Schering AG 1,698,653
84,401 Siemens AG 4,207,523
-------------
32,437,266
Hong Kong -- 1.0%
557,000 Cheung Kong Holdings LTD 3,078,157
1,296,000 MTR Corp. 1,395,862
-------------
4,474,019
Ireland -- 1.0%
341,500 Bank of Ireland 4,173,186
Italy -- 5.1%
1,214,409 ENI-Ente Nazionale Idrocarburi SPA 17,306,880
938,500 Telecom Italia SPA 4,618,870
-------------
21,925,750
Japan -- 16.2%
46,440 Acom Co., LTD 1,304,494
233,000 Canon, Inc. 9,416,904
205,000 Chugai Pharmaceutical Co., LTD 2,148,667
168,000 Fuji Photo Film Co., LTD 4,282,408
29,800 Hirose Electric Co., LTD 2,131,427
159,300 Honda Motor Co., LTD 5,276,161
66,400 Hoya Corp. 3,925,205
</Table>
See notes to financial statements.
53
<Page>
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Japan -- Continued
194,000 KAO Corp. $ 3,538,068
73,000 Murata Manufacturing Co., LTD 2,601,459
111,400 Namco LTD 1,560,870
885,000 Nikko Cordial Corp. 2,374,644
49,500 Nintendo Co., LTD 3,868,355
892 Nippon Telegraph & Telephone Corp. 3,126,413
462 Nippon Unipac Holding 1,483,699
1,440 NTT Docomo, Inc. 2,970,317
60 Orix Corp. 2,742
64,600 Shin-Etsu Chemical Co., LTD 1,933,775
132,500 Sony Corp. 3,221,952
479,000 Sumitomo Corp. 1,927,889
163,500 Takeda Chemical Industries LTD 5,991,070
43,800 Takefuji Corp. 2,280,714
149,700 Yamanouchi Pharmaceutical Co., LTD 3,778,274
-------------
69,145,507
South Korea -- 2.4%
62,210 Kookmin Bank, ADR 1,713,886
99,050 POSCO, ADR 2,035,478
34,350 Samsung Electronics Co., LTD, GDR 4,293,750
138,700 SK Telecom Co., LTD, ADR 2,108,240
-------------
10,151,354
Spain -- 2.8%
193,656 Altadis SA 4,992,359
145,743 Banco Popular Espanol 7,065,460
-------------
12,057,819
Sweden -- 1.5%
1,180,596 Nordea AB 6,264,028
Switzerland -- 8.2%
28,050 Holcim LTD, Class B 5,263,382
43,550 Nestle SA 8,878,253
238,120 Novartis AG 9,392,774
108,630 Roche Holding AG 6,912,017
44,369 Zurich Financial Services AG 4,677,997
-------------
35,124,423
The Netherlands -- 5.8%
352,325 ABN AMRO Holding NV 5,952,950
322,748 ING Groep NV 5,240,702
279,883 Koninklijke Philips Electronics NV 5,206,850
365,170 Reed Elsevier NV 4,156,791
336,190 Wolters Kluwer NV 4,378,432
-------------
24,935,725
United Kingdom -- 29.5%
339,454 Abbey National PLC 2,411,573
601,190 Allied Domecq PLC 3,372,614
852,336 Aviva PLC 5,993,924
1,856,851 BAE Systems PLC 3,769,021
1,299,452 Barclays PLC 8,977,242
1,708,470 BG Group PLC 6,833,279
827,110 Brambles Industries PLC 2,458,804
</Table>
See notes to financial statements.
54
<Page>
<Table>
<Caption>
SHARES ISSUER VALUE
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
United Kingdom -- Continued
1,336,400 Centrica PLC $ 3,550,961
673,985 Compass Group PLC 3,102,348
770,802 GKN PLC 2,537,802
678,706 GlaxoSmithKline PLC 13,602,758
407,026 Intercontinental Hotels Group PLC * 2,472,026
407,026 Mitchells & Butlers PLC * 1,379,130
577,576 National Grid Transco PLC 3,794,011
381,280 Reckitt Benckiser PLC 6,724,564
204,920 Rio Tinto PLC 3,917,087
255,310 Royal Bank of Scotland Group PLC 6,696,134
476,650 Schroders PLC 4,090,927
2,578,283 Tesco PLC 8,159,123
616,076 The British Land Co., PLC 4,017,373
222,474 Unilever PLC 2,186,765
8,793,375 Vodafone Group PLC 17,356,825
849,110 Wolseley PLC 8,210,451
-------------
125,614,742
- --------------------------------------------------------------------------------
Total Investments -- 100.0% $ 427,135,119
(Cost $469,230,244)
- --------------------------------------------------------------------------------
</Table>
SUMMARY OF INVESTMENTS BY INDUSTRY, APRIL 30, 2003
<Table>
<Caption>
INDUSTRY % OF INVESTMENT SECURITIES
- --------------------------------------------------------------------------------
Banking 14.5%
Pharmaceuticals 12.1
Oil & Gas 10.3
Telecommunications 9.9
Food/Beverage Products 6.0
Insurance 5.1
Construction Materials 4.8
Automotive 4.1
Consumer Products 3.6
Financial Services 3.2
Electronics/Electrical Equipment 3.1
Distribution 2.4
Office/Business Equipment 2.2
Utilities 1.7
Real Estate 1.7
Chemicals 1.6
Multi-Media 1.5
Transportation 1.0
Semi-Conductors 1.0
Photographic Equipment 1.0
Diversified 1.0
Printing & Publishing 1.0
Other (below 1.0%) 7.2
- --------------------------------------------------------------------------------
Total 100.0%
- --------------------------------------------------------------------------------
</Table>
See notes to financial statements.
55
<Page>
Abbreviations:
^ -- Amount rounds to less than 0.1%.
* -- Non-income producing security.
# -- All or a portion of this security is a 144A or private placement
security and can only be sold to qualified institutional buyers.
@ -- Security is fully or partially segregated with the custodian as
collateral for futures or with brokers as initial margin for
futures contracts.
(a) -- Affiliated. Money market fund registered under the Investment
Company Act of 1940, as amended and advised by JPMorgan Fleming
Asset Management, Inc.
(d) -- Defaulted Security.
(f) -- Fair valued investment. The following are approximately the market
value and percentage of the investments that are fair valued:
<Table>
<Caption>
FUND MARKET VALUE PERCENTAGE
---- ------------ ----------
Fleming European Fund $ 0 0.00%
Fleming International Value Fund $ 0 0.00%
Fleming Emerging Markets
Equity Fund $ 0 0.00%
</Table>
(W/I) -- When Issued.
ADR -- American Depositary Receipt.
AUD -- Australian Dollar.
CAD -- Canadian Dollar.
CHF -- Swiss Franc.
DKK -- Danish Krone.
EUR -- Euro.
GBP -- Great Britain Pound.
GDR -- Global Depositary Receipt.
HKD -- Hong Kong Dollar.
JPY -- Japanese Yen.
NOK -- Norwegian Krone.
PDR -- Philippines Depositary Receipt.
SEK -- Swedish Krona.
Ser. -- Series.
SGD -- Singapore Dollar.
THB -- Thai Bhat.
USD -- United States Dollar.
See notes to financial statements.
56
<Page>
JPMORGAN FUNDS
STATEMENT OF ASSETS AND LIABILITIES
As of April 30, 2003 (unaudited)
<Table>
<Caption>
EUROPEAN JAPAN
FUND FUND
- ----------------------------------------------------------------------------------
ASSETS:
Investment securities, at value $ 56,663,285 $ 1,391,070
Cash 3,143,498 13,935
Foreign currency, at value 166,254 --
Receivables:
Investment securities sold 5,122,036 56,151
Fund shares sold 618,563 168,000
Interest and dividends 108,986 6,371
Foreign tax reclaim 306,609 --
Unrealized appreciation on forward
foreign currency exchange contracts 18,893 --
Expense reimbursements 3,020 29,982
- ----------------------------------------------------------------------------------
Total Assets 66,151,144 1,665,509
- ----------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 8,105,697 35,830
Fund shares redeemed 420,807 24,000
Unrealized depreciation on forward foreign
currency exchange contracts 6,800 --
Accrued liabilities:
Investment advisory fees 2,185 --
Shareholder servicing fees 5,744 --
Distribution fees 12,529 51
Custodian fees 99,929 27,555
Trustees' fees - deferred compensation plan 8,975 967
Other 59,233 36,213
- ----------------------------------------------------------------------------------
Total Liabilities 8,721,899 124,616
- ----------------------------------------------------------------------------------
NET ASSETS:
Paid in capital 68,523,254 2,933,972
Accumulated undistributed (overdistributed)
net investment income 72,574 (5,398)
Accumulated net realized gain (loss) on
investments and foreign exchange
transactions (15,592,196) (1,391,496)
Net unrealized appreciation (depreciation)
of investments and foreign exchange
translations 4,425,613 3,815
- ----------------------------------------------------------------------------------
Total Net Assets $ 57,429,245 $ 1,540,893
- ----------------------------------------------------------------------------------
Shares of beneficial interest outstanding
($0.001 par value; unlimited number of shares
authorized):
Class A 2,041,723 348,340
Class B 743,008 23,620
Class C 203,702 --
Institutional 576,290 --
Select 650,157 --
Net Asset Value:
Class A (and redemption price) $ 13.76 $ 4.15
Class B* $ 13.10 $ 3.97
Class C* $ 13.08 $ --
Institutional (and redemption price) $ 13.89 $ --
Select (and redemption price) $ 13.79 $ --
Class A Maximum Public Offering Price Per Share
(net asset value per share/94.25%) $ 14.60 $ 4.40
- ----------------------------------------------------------------------------------
Cost of investments $ 52,244,349 $ 1,387,424
- ----------------------------------------------------------------------------------
Cost of foreign currency $ 166,254 $ --
==================================================================================
</Table>
*Redemption price may be reduced by contingent deferred sales charge.
See notes to financial statements.
57
<Page>
<Table>
<Caption>
INTERNATIONAL INTERNATIONAL
GROWTH FUND VALUE FUND
- ----------------------------------------------------------------------------------
ASSETS:
Investment securities, at value $ 3,221,787 $ 35,940,241
Cash 69,763 --
Foreign currency, at value -- 162,555
Receivables:
Investment securities sold -- 342,257
Fund shares sold -- 467,382
Interest and dividends 19,727 178,582
Foreign tax reclaim 6,385 961,328
Unrealized appreciation on forward foreign
currency exchange contracts -- 255,088
Expense reimbursements 11,329 3,325
- ----------------------------------------------------------------------------------
Total Assets 3,328,991 38,310,758
- ----------------------------------------------------------------------------------
LIABILITIES:
Payables:
Due to custodian -- 472,100
Investment securities purchased -- 31,965
Fund shares redeemed -- 325
Unrealized depreciation on forward foreign
currency exchange contracts -- 364,606
Variation margin -- 491
Accrued liabilities:
Investment advisory fees -- 8,040
Shareholder servicing fees -- 1,996
Distribution fees 894 128
Custodian fees -- 28,644
Trustees' fees - deferred compensation plan 85 1,040
Other 52,976 52,367
- ----------------------------------------------------------------------------------
Total Liabilities 53,955 961,702
- ----------------------------------------------------------------------------------
NET ASSETS:
Paid in capital 4,988,692 74,900,236
Accumulated undistributed (overdistributed)
net investment income 9,634 191,874
Accumulated net realized gain (loss) on
investments, futures and foreign exchange
transactions (1,038,744) (41,207,602)
Net unrealized appreciation (depreciation)
of investments, futures and foreign
exchange translations (684,546) 3,464,548
- ----------------------------------------------------------------------------------
Total Net Assets $ 3,275,036 $ 37,349,056
- ----------------------------------------------------------------------------------
Shares of beneficial interest outstanding
($0.001 par value; unlimited number of shares
authorized):
Class A 407,012 19,943
Class B 102,357 24,288
Institutional -- 3,263,479
Select -- 2,174,167
Net Asset Value:
Class A (and redemption price) $ 6.44 $ 6.77
Class B* $ 6.38 $ 6.73
Institutional (and redemption price) $ -- $ 6.82
Select (and redemption price) $ -- $ 6.80
Class A Maximum Public Offering Price Per Share
(net asset value per share/94.25%) $ 6.83 $ 7.18
- ----------------------------------------------------------------------------------
Cost of investments $ 3,907,594 $ 32,552,967
- ----------------------------------------------------------------------------------
Cost of foreign currency $ -- $ 160,795
==================================================================================
</Table>
*Redemption price may be reduced by contingent deferred sales charge.
See notes to financial statements.
58
<Page>
<Table>
<Caption>
INTERNATIONAL EMERGING
OPPORTUNITIES MARKETS
FUND EQUITY FUND
- ----------------------------------------------------------------------------------
ASSETS:
Investment securities, at value $ 201,164,141 $ 59,424,241
Cash 1,194,342 831,425
Foreign currency, at value 210,327 293,604
Receivables:
Investment securities sold 1,588,991 640,334
Fund shares sold 2,201,645 465,216
Interest and dividends 787,742 245,949
Foreign tax reclaim 1,632,702 3,131
Unrealized appreciation on forward
foreign currency exchange contracts 1,055,606 --
Expense reimbursements 4,508 2,001
- ----------------------------------------------------------------------------------
Total Assets 209,840,004 61,905,901
- ----------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 2,147,915 630,164
Fund shares redeemed 8,496,285 18,338
Unrealized depreciation on forward foreign
currency exchange contracts 1,086,257 --
Accrued liabilities:
Investment advisory fees 95,553 36,970
Administration fees 9,522 --
Shareholder servicing fees 5,822 1,878
Distribution fees 2,717 38
Custodian fees 48,285 44,944
Trustees' fees - deferred compensation plan 11,992 326
Other 74,593 36,073
- ----------------------------------------------------------------------------------
Total Liabilities 11,978,941 768,731
- ----------------------------------------------------------------------------------
NET ASSETS:
Paid in capital 354,981,685 205,562,249
Accumulated undistributed (overdistributed)
net investment income 1,410,603 (2,752,197)
Accumulated net realized gain (loss) on
investments, futures and foreign exchange
transactions (160,280,859) (137,036,000)
Net unrealized appreciation (depreciation) of
investments and foreign exchange
translations 1,749,634 (4,636,882)
- ----------------------------------------------------------------------------------
Total Net Assets $ 197,861,063 $ 61,137,170
- ----------------------------------------------------------------------------------
Shares of beneficial interest outstanding
($0.001 par value; unlimited number of shares
authorized):
Class A 1,623,534 11,496
Class B 159,427 7,188
Institutional 21,721,264 8,119,407
Select 3,262,413 3,111,007
Net Asset Value:
Class A (and redemption price) $ 7.31 $ 5.39
Class B* $ 7.27 $ 5.37
Institutional (and redemption price) $ 7.40 $ 5.44
Select (and redemption price) $ 7.38 $ 5.41
Class A Maximum Public Offering Price Per Share
(net asset value per share/94.25%) $ 7.76 $ 5.72
- ----------------------------------------------------------------------------------
Cost of investments $ 199,630,275 $ 64,078,681
- ----------------------------------------------------------------------------------
Cost of foreign currency $ 209,497 $ 276,674
==================================================================================
</Table>
*Redemption price may be reduced by contingent deferred sales charge.
See notes to financial statements.
59
<Page>
<Table>
<Caption>
ASIA EQUITY INTERNATIONAL
FUND EQUITY FUND
- ----------------------------------------------------------------------------------
ASSETS:
Investment securities, at value $ 22,640,033 $ 427,135,119
Cash 671,144 28,370,190
Foreign currency, at value 601,255 558,365
Receivables:
Investment securities sold 376,058 451,154
Fund shares sold 1,500 9,473,640
Interest and dividends 105,365 1,841,111
Foreign tax reclaim -- 524,721
Unrealized appreciation on forward foreign
currency exchange contracts 5 --
Expense reimbursements 1,385 7,363
- ----------------------------------------------------------------------------------
Total Assets 24,396,745 468,361,663
- ----------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased 807,203 400,049
Fund shares redeemed -- 165,045
Unrealized depreciation on forward foreign
currency exchange contracts 410 --
Accrued liabilities:
Investment advisory fees 1,571 264,881
Administration fees -- 35,735
Shareholder servicing fees 3,564 33,136
Distribution fees -- 228
Custodian fees 20,075 42,211
Trustees' fees - deferred compensation plan 16 39,265
Other 49,619 42,756
- ----------------------------------------------------------------------------------
Total Liabilities 882,458 1,023,306
- ----------------------------------------------------------------------------------
NET ASSETS:
Paid in capital 30,242,578 535,439,460
Accumulated undistributed (overdistributed)
net investment income 153,827 1,088,746
Accumulated net realized gain (loss) on
investments and foreign exchange
transactions (4,245,660) (27,186,684)
Net unrealized appreciation (depreciation) of
investments and foreign exchange
translations (2,636,458) (42,003,165)
- ----------------------------------------------------------------------------------
Total Net Assets $ 23,514,287 $ 467,338,357
- ----------------------------------------------------------------------------------
Shares of beneficial interest outstanding
($0.001 par value; unlimited number of shares
authorized):
Class A 937 296,721
Class B 838 4,262
Class C -- 1,073
Institutional 516,702 --
Select 1,379,101 23,725,814
Net Asset Value:
Class A (and redemption price) $ 12.36 $ 19.45
Class B* $ 12.27 $ 19.37
Class C* $ -- $ 19.37
Institutional (and redemption price) $ 12.40 $ --
Select (and redemption price) $ 12.39 $ 19.45
Class A Maximum Public Offering Price Per Share
(net asset value per share/94.25%) $ 13.11 $ 20.64
- ----------------------------------------------------------------------------------
Cost of investments $ 25,278,362 $ 469,230,244
- ----------------------------------------------------------------------------------
Cost of foreign currency $ 598,443 $ 555,111
==================================================================================
</Table>
*Redemption price may be reduced by contingent deferred sales charge.
See notes to financial statements.
60
<Page>
JPMORGAN FUNDS
Statement of Operations
For the six months ended April 30, 2003 (unaudited)
<Table>
<Caption>
EUROPEAN JAPAN
FUND FUND
- ------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividend $ 673,442 $ 6,883
Foreign tax withholding (103,582) (863)
- ------------------------------------------------------------------------------------------------------------------
Total investment income 569,860 6,020
==================================================================================================================
EXPENSES:
Investment advisory fees 172,620 5,667
Administration fees 39,836 850
Shareholder servicing fees 29,193 128
Distribution fees 77,774 1,673
Custodian and accounting fees 200,967 60,342
Printing and postage 15,325 289
Professional fees 30,942 29,634
Registration fees 17,082 13,363
Transfer agent fees 100,748 19,216
Trustees' fees 265 6
Other 6,904 3,401
- ------------------------------------------------------------------------------------------------------------------
Total expenses 691,656 134,569
- ------------------------------------------------------------------------------------------------------------------
Less amounts waived 206,787 7,934
Less expense reimbursements 29,960 116,333
- ------------------------------------------------------------------------------------------------------------------
Net expenses 454,909 10,302
- ------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 114,951 (4,282)
- ------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on transactions from:
Investments (898,832) (39,260)
Foreign exchange contracts 35,449 (1,144)
Change in net unrealized appreciation (depreciation) of:
Investments 3,157,984 34,670
Foreign exchange translations 7,744 131
- ------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments
and foreign exchange transactions 2,302,345 (5,603)
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ 2,417,296 $ (9,885)
==================================================================================================================
</Table>
See notes to financial statements
61
<Page>
<Table>
<Caption>
INTERNATIONAL INTERNATIONAL
GROWTH VALUE
FUND FUND
- ------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 58 $ --
Dividend 47,947 584,737
Dividend income from affiliated investments* -- 4,648
Foreign tax withholding (5,555) (173,043)
- ------------------------------------------------------------------------------------------------------------------
Total investment income 42,450 416,342
- ------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 15,587 120,834
Administration fees 2,338 30,209
Shareholder servicing fees 3,897 32,182
Distribution fees 5,452 778
Custodian and accounting fees 37,865 71,771
Printing and postage 2,338 3,749
Professional fees 25,687 32,758
Registration fees 4,136 15,512
Transfer agent fees 17,542 38,435
Trustees' fees 16 201
Other 2,291 4,027
- ------------------------------------------------------------------------------------------------------------------
Total expenses 117,149 350,456
- ------------------------------------------------------------------------------------------------------------------
Less amounts waived 21,822 104,112
Less expense reimbursements 62,598 20,201
- ------------------------------------------------------------------------------------------------------------------
Net expenses 32,729 226,143
- ------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 9,721 190,199
- ------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on transactions from:
Investments (25,289) 1,325,110
Futures -- (198,022)
Foreign exchange contracts (815) (113,147)
Change in net unrealized appreciation (depreciation) of:
Investments 113,564 (871,832)
Futures -- (72,344)
Foreign exchange translations 930 22,487
==================================================================================================================
Net realized and unrealized gain (loss) on investments,
futures and foreign exchange transactions 88,390 92,252
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ 98,111 $ 282,451
- ------------------------------------------------------------------------------------------------------------------
* Includes reimbursements of investment advisory,
administration and shareholder servicing fees: $ -- $ 558
==================================================================================================================
</Table>
See notes to financial statements.
62
<Page>
<Table>
<Caption>
EMERGING
INTERNATIONAL MARKETS
OPPORTUNITIES EQUITY
FUND FUND
- ------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 7,051 $ --
Dividend 2,946,570 1,007,977
Dividend income from affiliated investments* 18,431 --
Foreign tax withholding (376,982) (66,879)
- ------------------------------------------------------------------------------------------------------------------
Total investment income 2,595,070 941,098
==================================================================================================================
EXPENSES:
Investment advisory fees 643,581 323,144
Administration fees 160,895 48,472
Shareholder servicing fees 136,055 45,971
Distribution fees 18,100 239
Custodian and accounting fees 145,416 145,773
Printing and postage 15,723 8,078
Professional fees 33,873 39,068
Registration fees 12,338 18,266
Transfer agent fees 87,895 41,075
Trustees' fees 1,073 323
Other 6,437 7,110
- ------------------------------------------------------------------------------------------------------------------
Total expenses 1,261,386 677,519
- ------------------------------------------------------------------------------------------------------------------
Less amounts waived 168,847 168,056
Less expense reimbursements 6,885 13,352
- ------------------------------------------------------------------------------------------------------------------
Net expenses 1,085,654 496,111
==================================================================================================================
Net investment income (loss) 1,509,416 444,987
- ------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on transactions from:
Investments (21,368,734) (4,727,105)
Futures 90,031 --
Foreign exchange contracts 150,181 (23,769)
Change in net unrealized appreciation (depreciation) of:
Investments 17,409,109 6,802,043
Futures 49,553 --
Foreign exchange translations 60,720 17,825
- ------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments,
futures and foreign exchange transactions (3,609,140) 2,068,994
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ (2,099,724) $ 2,513,981
- ------------------------------------------------------------------------------------------------------------------
* Includes reimbursements of investment advisory,
administration and shareholder servicing fees: $ 2,284 $ --
==================================================================================================================
</Table>
See notes to financial statements.
63
<Page>
<Table>
<Caption>
ASIA EQUITY INTERNATIONAL
FUND EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest $ 986 $ 17,615
Dividend 390,436 4,915,516
Foreign tax withholding (40,782) (661,909)
- ------------------------------------------------------------------------------------------------------------------
Total investment income 350,640 4,271,222
- ------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 132,778 1,739,894
Administration fees 19,917 260,984
Shareholder servicing fees 27,390 434,972
Distribution fees 2,798 567
Custodian and accounting fees 92,363 163,855
Printing and postage 1,915 22,955
Professional fees 35,989 44,861
Registration fees 2,871 35,833
Transfer agent fees 31,382 47,524
Trustees' fees 133 1,740
Other 2,654 9,366
- ------------------------------------------------------------------------------------------------------------------
Total expenses 350,190 2,762,551
==================================================================================================================
Less amounts waived 144,100 826,351
Less expense reimbursements 9,299 21,500
- ------------------------------------------------------------------------------------------------------------------
Net expenses 196,791 1,914,700
- ------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 153,849 2,356,522
- ------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on transactions from:
Investments (2,990,690) (7,307,049)
Foreign exchange contracts 3,045 (261,817)
Change in net unrealized appreciation (depreciation) of:
Investments (29,915) 7,626,041
Foreign exchange translations 521 59,256
- ------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments
and foreign exchange transactions (3,017,039) 116,431
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations $ (2,863,190) $ 2,472,953
==================================================================================================================
</Table>
See notes to financial statements.
64
<Page>
JPMORGAN FUNDS
Statement of Changes in Net Assets For the periods indicated (unaudited)
<Table>
<Caption>
EUROPEAN FUND JAPAN FUND
--------------------------- ---------------------------
11/1/02 YEAR 11/1/02 YEAR
THROUGH ENDED THROUGH ENDED
4/30/03 10/31/02 4/30/03 10/31/02
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) $ 114,951 $ 573,439 $ (4,282) $ (13,974)
Net realized gain (loss) on investments and foreign exchange
transactions (863,383) 2,432,893 (40,404) (172,025)
Change in net unrealized appreciation (depreciation) of investments
and foreign exchange translations 3,165,728 (795,449) 34,801 70,710
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 2,417,296 2,210,883 (9,885) (115,289)
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (374,810) -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS 883,462 (4,654,549) 708,117 72,270
- --------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 2,925,948 (2,443,666) 698,232 (43,019)
NET ASSETS:
Beginning of period 54,503,297 56,946,963 842,661 885,680
- --------------------------------------------------------------------------------------------------------------------------------
End of period $ 57,429,245 $ 54,503,297 $ 1,540,893 $ 842,661
- --------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME $ 72,574 $ 332,433 $ (5,398) $ (1,116)
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
65
<Page>
<Table>
<Caption>
INTERNATIONAL INTERNATIONAL
GROWTH FUND VALUE FUND
--------------------------- ---------------------------
11/1/02 YEAR 11/1/02 YEAR
THROUGH ENDED THROUGH ENDED
4/30/03 10/31/02 4/30/03 10/31/02
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) $ 9,721 $ (8,129) $ 190,199 $ 667,940
Net realized gain (loss) on investments, futures and foreign exchange
transactions (26,104) (784,862) 1,013,941 3,894,948
Change in net unrealized appreciation (depreciation) of investments,
futures and foreign exchange translations 114,494 293,236 (921,689) (4,820,436)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 98,111 (499,755) 282,451 (257,548)
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- (1,481,498) (1,669,756)
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS -- 35,522 (7,335,298) (116,106,584)
- --------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 98,111 (464,233) (8,534,345) (118,033,888)
NET ASSETS:
Beginning of period 3,176,925 3,641,158 45,883,401 163,917,289
- --------------------------------------------------------------------------------------------------------------------------------
End of period $ 3,275,036 $ 3,176,925 $ 37,349,056 $ 45,883,401
- --------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME $ 9,634 $ (87) $ 191,874 $ 1,483,173
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
66
<Page>
<Table>
<Caption>
INTERNATIONAL EMERGING MARKETS
OPPORTUNITIES FUND EQUITY FUND
--------------------------- ---------------------------
11/1/02 YEAR 11/1/02 YEAR
THROUGH ENDED THROUGH ENDED
4/30/03 10/31/02 4/30/03 10/31/02
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income $ 1,509,416 $ 3,693,097 $ 444,987 $ 650,760
Net realized gain (loss) on investments, futures and foreign
exchange transactions (21,128,522) (51,863,790) (4,750,874) (17,879,298)
Change in net unrealized appreciation (depreciation) of investments,
futures and foreign exchange translations 17,519,382 15,342,530 6,819,868 23,876,867
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations (2,099,724) (32,828,163) 2,513,981 6,648,329
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (2,548,193) (3,881,303) (430,000) (866,869)
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS (53,627,497) 340,406 (7,196,915) (29,141,053)
- --------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (58,275,414) (36,369,060) (5,112,934) (23,359,593)
NET ASSETS:
Beginning of period 256,136,477 292,505,537 66,250,104 89,609,697
- --------------------------------------------------------------------------------------------------------------------------------
End of period $197,861,063 $256,136,477 $ 61,137,170 $ 66,250,104
- --------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME $ 1,410,603 $ 2,449,380 $ (2,752,197) $ (2,767,184)
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
See notes to financial statements.
67
<Page>
<Table>
<Caption>
ASIA EQUITY INTERNATIONAL
FUND EQUITY FUND
--------------------------- ---------------------------
11/1/02 11/1/01* 11/1/02 YEAR
THROUGH THROUGH THROUGH ENDED
4/30/03 10/31/02 4/30/03 10/31/02
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) $ 153,849 $ (6,042) $ 2,356,522 $ 2,088,955
Net realized gain (loss) on investments and foreign exchange
transactions (2,987,645) (1,369,854) (7,568,866) (13,160,990)
Change in net unrealized appreciation (depreciation) of investments
and foreign exchange translations (29,394) (2,607,064) 7,685,297 (11,644,462)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations (2,863,190) (3,982,960) 2,472,953 (22,716,497)
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- (2,319,311) (1,161,091)
- --------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) FROM CAPITAL SHARE TRANSACTIONS 3,135,861 27,224,576 219,645,872 90,120,668
- --------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 272,671 23,241,616 219,799,514 66,243,080
NET ASSETS:
Beginning of period 23,241,616 -- 247,538,843 181,295,763
- --------------------------------------------------------------------------------------------------------------------------------
End of period $ 23,514,287 $ 23,241,616 $467,338,357 $247,538,843
- --------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED (OVERDISTRIBUTED) NET INVESTMENT INCOME $ 153,827 $ (22) $ 1,088,746 $ 1,051,535
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
*Commencement of operations.
See notes to financial statements.
68
<Page>
JPMORGAN FUNDS
Notes to Financial Statements (unaudited)
1. ORGANIZATION
Mutual Fund Group ("MFG"), J.P. Morgan Institutional Funds ("JPMIF") and Mutual
Fund Select Group ("MFSG") (the "Trusts") were organized on May 11, 1987,
November 4, 1992 and October 1, 1996, respectively, as Massachusetts business
trusts, and are registered under the Investment Company Act of 1940 (the "1940
Act"), as amended, as open-end management investment companies.
The following are eight separate portfolios of the Trusts (collectively, the
"Funds"):
<Table>
<Caption>
FUND CLASSES OFFERED
- -------------------------------------------------------------------------------------------------
JPMorgan Fleming European Fund ("EF") Class A, Class B, Class C, Institutional
and Select
JPMorgan Fleming Japan Fund ("JF") Class A and Class B
JPMorgan Fleming International Growth
Fund ("IGF") Class A and Class B
JPMorgan Fleming International Value
Fund ("IVF") Class A, Class B, Institutional and Select
JPMorgan Fleming International Opportunities
Fund ("IOF") Class A, Class B, Institutional and Select
JPMorgan Fleming Emerging Markets Equity
Fund ("EMF") Class A, Class B, Institutional and Select
JPMorgan Fleming Asia Equity Fund ("AEF") Class A, Class B, Institutional and Select
JPMorgan Fleming International Equity
Fund ("IEF") Class A, Class B, Class C and Select
</Table>
IEF was formerly named Select International Equity Fund ("SIEF"). The name
change for IEF was effective January 31, 2003.
EF, JF, IGF and AEF are separate series of MFG. IVF, IOF and EMF are separate
series of JPMIF. IEF is a separate series of MFSG.
Class A Shares generally provide for a front-end sales charge while Class B and
Class C shares provide for a contingent deferred sales charge. Class B shares
automatically convert to Class A shares after eight years. No sales charges are
assessed with respect to the Institutional and Select Classes. All classes of
shares have equal rights as to earnings, assets and voting privileges except
that each class may bear different transfer agent, distribution and shareholder
servicing fees and each class has exclusive voting rights with respect to its
distribution plan and shareholder servicing agreements.
2. SIGNIFICANT ACCOUNTING POLICIES
THE FOLLOWING IS A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY THE
FUNDS:
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results could differ from those estimates.
69
<Page>
A. VALUATION OF INVESTMENTS -- Equity securities, purchased options and futures
contracts are valued at the last sale price on the exchange on which they are
primarily traded. The value of National Market System equity securities quoted
by The Nasdaq Stock Market, Inc. shall generally be the Nasdaq Official Closing
Price. Securities for which sale prices are not available and other
over-the-counter securities are valued at the mean between the bid and asked
quotations. Fixed income securities, other than convertible bonds, with a
maturity of 61 days or more held by Funds will be valued each day based on
readily available market quotations received from independent or affiliated
commercial pricing services. Such pricing services will generally provide
bidside quotations. Convertible bonds are valued at the last sale price on the
primary exchange on which the bond is principally traded. When valuations are
not readily available, securities are valued at fair value as determined in
accordance with procedures adopted by the Trustees. It is reasonably possible
that the estimated values may differ significantly from the values that would
have been used had a ready market for the investments existed, and such
differences could have been material. Short-term investments with 60 days or
less to maturity at time of purchase are valued at amortized cost, which
approximates market value.
Trading in securities on most foreign exchanges and over-the-counter markets is
normally completed before the close of the domestic market and may also take
place on days when the domestic market is closed. If events materially affecting
the value of foreign securities occur between the time when the exchange on
which they are traded closes and the time when the Funds' net assets are
calculated, such securities will be valued at fair value in accordance with
procedures adopted by the Trustees.
B. FUTURES CONTRACTS -- When a Fund enters into a futures contract, it makes an
initial margin deposit in a segregated account, either in cash or liquid
securities. Thereafter, the futures contract is marked to market and the fund
makes (or receives) additional cash payments daily to (or from) the broker.
Changes in the value of the contract are recorded as unrealized appreciation
(depreciation) until the contract is closed or settled.
Index futures contracts are used to control the asset mix of the portfolios in
the most efficient manner, allowing the Funds to adjust country exposures while
incurring minimal transaction costs. Short index futures contracts are used for
hedging purposes, i.e. to reduce the exposure to equities. Long index futures
contracts are used to gain exposure to equities, when it is anticipated that
this will be more efficient than buying stocks directly.
Use of long futures contracts subjects the Funds to risk of loss in excess of
the amounts shown on the Statement of Assets and Liabilities, up to the notional
value of the futures contracts. Use of short futures contracts subject the Funds
to unlimited risk of loss.
The Funds may enter into futures contracts only on exchanges or boards of trade.
The exchange or board of trade acts as the counterparty to each futures
70
<Page>
transaction, therefore, the Fund's credit risk is limited to failure of the
exchange or board of trade.
As of April 30, 2003, IVF had outstanding futures contracts as listed on the
Fund's Portfolio of Investments.
C. FOREIGN CURRENCY TRANSLATION -- The books and records of the Funds are
maintained in U.S.dollars. Foreign currency amounts are translated into U.S.
dollars at the prevailing exchange rates, or at the mean of the current bid and
asked prices, of such currencies against the U.S. dollar as quoted by a major
bank, on the following basis:
1. Market value of investment securities and other assets and liabilities: at
the rate of exchange at the valuation date.
2. Purchases and sales of investment securities, income and expenses: at the
rates of exchange prevailing on the respective dates of such transactions.
The Funds do not isolate that portion of the results of operations arising as a
result of changes in the foreign exchange rates from the fluctuations arising
from changes in the market prices of securities held or sold during the year.
Accordingly, such realized foreign currency gains (losses) are included in the
reported net realized and unrealized gains (losses) on investment transactions.
Reported realized foreign currency gains or losses arise from disposition of
foreign currency, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest and foreign withholding taxes recorded on the
Funds' books on the transaction date and the U.S. dollar equivalent of the
amounts actually received or paid. Unrealized foreign exchange gains and losses
arise from changes (due to the changes in the exchange rate) in the value of
foreign currency and other assets and liabilities denominated in foreign
currencies which are held at period end.
D. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS -- The Funds may enter into
forward foreign currency exchange contracts (obligations to purchase or sell
foreign currency in the future on a date and price fixed at the time the
contracts are entered into) to manage the Fund's exposure to foreign currency
exchange fluctuations. Each day the forward contract is open, changes in the
value of the contract are recognized as unrealized gains or losses by "marking
to market". When the forward contract is closed, or the delivery of the currency
is made or taken, the Fund records a realized gain or loss equal to the
difference between the proceeds from (or cost of) the closing transaction and
the Fund's basis in the contract. The Funds are subject to off-balance sheet
risk to the extent of the value of the contracts for purchases of foreign
currency and in an unlimited amount for sales of foreign currency.
As of April 30, 2003, the Funds had outstanding forward foreign currency
exchange contracts as listed on the Funds' Portfolio of Investments.
71
<Page>
E. RESTRICTED AND ILLIQUID SECURITIES -- Each Fund is permitted to invest up to
15% of its net assets in securities that are subject to legal or contractual
restrictions on resale or are illiquid. Restricted securities generally may be
resold in transactions exempt from registration. A security may be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. Disposal of these securities may involve
time-consuming negotiations and expense, and prompt sale at the current
valuation may be difficult.
F. SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Investment transactions are
accounted for on the trade date (the date the order to buy or sell is executed).
Securities gains and losses are calculated on the identified cost basis.
Interest income is determined on the basis of coupon interest accrued using the
interest method, adjusted for amortization of premiums and accretion of
discounts. Dividend income is recorded on the ex-dividend date or when the Fund
first learns of the dividend.
G. ALLOCATION OF INCOME AND EXPENSES -- Expenses directly attributable to a Fund
are charged to that Fund; other expenses of the Trusts are allocated
proportionately among each of the Funds within the Trusts in relation to the net
assets of each Fund or on another reasonable basis. Expenses directly
attributable to a particular share class are charged directly to that class. In
calculating the net asset value per share of each class, investment income,
realized and unrealized gains and losses and expenses other than class specific
expenses are allocated daily to each class of shares based upon the proportion
of net assets of each class at the beginning of each day.
H. FEDERAL INCOME TAXES -- Each Fund is treated as a separate taxable entity for
Federal income tax purposes. The Fund's policy is to comply with the provisions
of the Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders all of its distributable net investment income and
net realized gain on investments. In addition, the Funds intend to make
distributions as required to avoid excise taxes. Accordingly, no provision for
Federal income or excise tax is necessary.
I. FOREIGN TAXES -- Certain Funds may be subject to foreign taxes on income,
gains on investments or currency repatriation, a portion of which may be
recoverable. The Funds will accrue such taxes and recoveries as applicable,
based upon their current interpretation of tax rules and regulations that exist
in the markets in which they invest.
J. DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions paid to
shareholders are recorded on the ex-dividend date. The amount of dividends and
distributions from net investment income and net realized capital gains is
determined in accordance with Federal income tax regulations, which may differ
from accounting principles generally accepted in the United States of America.
To the extent these "book/tax" differences are permanent in nature (i.e., that
they result from other than timing of recognition --"temporary differences")
such amounts are reclassified within the capital accounts based on their Federal
tax-basis treatment.
72
<Page>
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. INVESTMENT ADVISORY FEE -- Pursuant to separate Investment Advisory
Agreements, J. P. Morgan Fleming Asset Management (USA), Inc. ("JPMFAM") and
J.P. Morgan Investment Management, Inc. ("JPMIM" and, together with JPMFAM, the
"Advisors") act as the investment advisors to the Funds. JPMFAM, a direct wholly
owned subsidiary of JPMorgan Chase Bank ("JPMCB") and an indirect wholly owned
subsidiary of J.P. Morgan Chase & Co. ("JPMorgan"), is the Advisor for EF, JF,
IGF and IEF. JPMIM, a wholly owned subsidiary of JPMorgan, is the advisor for
IVF, IOF, EMF and AEF. The Advisors supervise the investments of each respective
Fund and for such services are paid a fee. The fee is accrued daily and paid
monthly based on each Fund's respective average daily net assets. The annual fee
for each Fund is as follows:
<Table>
<Caption>
INVESTMENT
FUND ADVISORY FEE (%)
---------------------------------------
EF 0.65
JF 1.00
IGF 1.00
IVF 0.60
IOF 0.60
EMF 1.00
AEF 1.00
IEF 1.00
</Table>
JPMFAM, on behalf of EF, JF, IGF and IEF, has entered into an investment
sub-advisory agreement with J.P. Morgan Fleming Asset Management (London)
Limited ("JPMFAM (London)"). JPMIM, on behalf of AEF, has entered into an
investment sub-advisory agreement with JF International Management, Inc.
("JFIMI"). For its services as sub-advisor, JPMFAM (London) and JFIMI receive a
portion of the fees payable to JPMFAM and JPMIM, respectively.
The Advisors waived fees as outlined in Note 3.F. below.
The Funds may invest in one or more of the affiliated Market Funds. The Advisor
has agreed to waive and/or reimburse its advisory fee from the Funds in an
amount sufficient to offset any doubling up of investment advisory,
administration and shareholder servicing fees related to each Fund's investment
in an affiliated money market fund.
B. DISTRIBUTION FEES -- Pursuant to a Distribution Agreement, J.P. Morgan Fund
Distributors, Inc. ("JPMFD" or "Distributor"), a wholly-owned subsidiary of The
BISYS Group, Inc., serves as the Trusts' exclusive underwriter and promotes and
arranges for the sale of each Fund's shares. JPMFD receives no compensation in
its capacity as the Funds' underwriter.
73
<Page>
The Trustees have adopted Distribution Plans (the "Distribution Plans") for
Class A, B and C Shares of the Funds in accordance with Rule 12b-1 under the
1940 Act. The Distribution Plans provide that each Fund shall pay distribution
fees, including payments to the Distributor, at annual rates of the average
daily net assets as shown in the table below (%):
<Table>
<Caption>
FUND CLASS A CLASS B CLASS C
- --------------------------------------------------------------------
EF 0.25 0.75 0.75
JF 0.25 0.75 n/a
IGF 0.25 0.75 n/a
IVF 0.25 0.75 n/a
IOF 0.25 0.75 n/a
EMF 0.25 0.75 n/a
AEF 0.25 0.75 n/a
IEF 0.25 0.75 0.75
</Table>
In addition, JPMFD receives any contingent deferred sales charges ("CDSC") from
redemptions of Class B and Class C shares.
The Distributor waived fees as outlined in Note 3.F. below.
C. SHAREHOLDER SERVICING FEES -- The Trusts have entered into a Shareholder
Servicing Agreement with JPMCB under which JPMCB provides account administration
and personal account maintenance service to shareholders. JPMCB may obtain the
services of one or more Shareholder Servicing Agents. For these services JPMCB
or the Shareholder Servicing Agent will receive a fee that is computed daily and
paid monthly equal to a percentage of the average daily net assets as shown in
the table below (%):
<Table>
<Caption>
INSTITUTIONAL SELECT
FUND CLASS A CLASS B CLASS C CLASS CLASS
- -------------------------------------------------------------------------------
EF -- 0.25 0.25 0.10 0.25
JF -- 0.25 n/a n/a n/a
IGF 0.25 0.25 n/a n/a n/a
IVF 0.25 0.25 n/a 0.10 0.25
IOF 0.25 0.25 n/a 0.10 0.25
EMF 0.25 0.25 n/a 0.10 0.25
AEF -- 0.25 n/a 0.10 0.25
IEF 0.25 0.25 0.25 n/a 0.25
</Table>
In addition, JPMCB, Charles Schwab & Co. ("Schwab"), and JPMIF are parties to
separate servicing and operating agreements (the "Schwab Agreements") whereby
Schwab makes shares of IVF, IOF and EMF available to customers and investment
advisors and other financial intermediaries who are Schwab's clients. IVF, IOF
and EMF are not responsible for payments to Schwab under Schwab
74
<Page>
Agreements; however, in the event the services agreement with Schwab is
terminated for reasons other than a breach by Schwab and the relationship
between JPMIF and JPMCB is terminated, IVF, IOF and EMF would be responsible for
ongoing payments to Schwab with respect to pre-termination shares.
The Funds' Board of Trustees has approved the addition of shareholder servicing
fees to Class A Shares of EF, JF and AEF. Effective May 1, 2003, Class A Shares
of EF, JF and AEF will accrue a fee that is computed daily and paid monthly
equal to 0.25% of the average daily net assets.
The Shareholder Servicing Agents waived fees as outlined in Note 3.F. below.
D. CUSTODIAN AND ACCOUNTING FEES -- JPMCB provides portfolio accounting and
custody services for all of the Funds except IGF. Compensation for such services
is presented in the Statement of Operations as custodian fees. The custodian
fees may be reduced by credits earned by each Fund, based on cash balances held
by the custodian. Such earnings credits are presented separately in the
Statement of Operations.
E. ADMINISTRATION FEE -- Pursuant to the Administration Agreement, JPMCB (the
"Administrator") provides certain administration services to the Funds. In
consideration of these services, the Administrator receives a fee computed daily
and paid monthly at an annual rate equal to 0.15% of the first $25 billion of
the average daily net assets of all non-money market funds in the JPMorgan Fund
Complex and 0.075% of the average daily net assets in excess of $25 billion.
BISYS Fund Services, L.P. ("BISYS") serves as the Funds' sub-administrator. For
its services as sub-administrator, BISYS receives a portion of the fees payable
to JPMCB as Administrator.
The Administrator has contractually agreed to reimburse the Funds to the extent
that total operating expenses (excluding interest, taxes, extraordinary expenses
and expenses related to the deferred compensation plan) exceed the percentages
of their respective average daily net assets as shown in the table below (%):
<Table>
<Caption>
INSTITUTIONAL SELECT
FUND CLASS A CLASS B CLASS C CLASS CLASS
- ----------------------------------------------------------------------------
EF 1.75 2.50 2.50 1.00 1.50
JF 1.75 2.50 n/a n/a n/a
IGF 2.00 2.50 n/a n/a n/a
IVF 1.45 1.95 n/a 0.95 1.41
IOF 1.90 2.40 n/a 0.92 1.20
EMF 2.00 2.50 n/a 1.45 1.75
AEF 1.75 2.25 n/a 1.35 1.50
IEF 1.50 2.00 2.00 n/a 1.25
</Table>
75
<Page>
The contractual expense limitation agreements were in effect for the six months
ended April 30, 2003 for the Funds. The expense limitation percentages in the
table above are due to expire as follows:
<Table>
<Caption>
INSTITUTIONAL SELECT
FUND CLASS A CLASS B CLASS C CLASS CLASS
- ----------------------------------------------------------------------------
EF 2/28/04 2/28/04 2/28/04 2/28/05 2/28/05
JF 2/28/04 2/28/04 n/a n/a n/a
IGF 2/28/04 2/28/04 n/a n/a n/a
IVF 2/28/04 2/28/04 n/a 2/28/05 2/28/05
IOF 2/28/04 2/28/04 n/a 2/28/05 2/28/05
EMF 2/28/04 2/28/04 n/a 2/28/05 2/28/05
AEF 2/28/04 2/28/04 n/a 2/28/04 2/28/04
IEF 2/28/04 2/28/04 2/28/04 n/a 2/28/04
</Table>
The Administrator waived fees and reimbursed expenses as outlined in Note 3.F.
below.
F. WAIVERS AND REIMBURSEMENTS -- For the six months ended April 30, 2003, the
Funds' vendors waived fees and the Administrator contractually reimbursed
expenses for each of the Funds as follows:
<Table>
<Caption>
CONTRACTUAL WAIVERS
-----------------------------------------------------------------
INVESTMENT SHAREHOLDER CONTRACTUAL
FUND ADVISORY ADMINISTRATION SERVICING DISTRIBUTION TOTAL REIMBURSEMENT
- ---------------------------------------------------------------------------------------------
EF $ 163,196 $ 21,588 $ 3,755 $ -- $ 188,539 $ 29,960
JF 5,667 850 128 1,289 7,934 116,333
IGF 15,587 2,338 3,897 -- 21,822 62,598
IVF 59,198 27,640 14,705 -- 101,543 20,201
IOF -- 86,144 82,703 -- 168,847 6,885
EMF 86,130 48,472 33,454 -- 168,056 13,352
AEF 119,267 19,917 4,916 -- 144,100 9,299
IEF 287,821 321 278,059 -- 566,201 21,500
- ---------------------------------------------------------------------------------------------
Total $ 736,866 $ 207,270 $ 421,617 $ 1,289 $ 1,367,042 $ 280,128
- ---------------------------------------------------------------------------------------------
</Table>
76
<Page>
<Table>
<Caption>
VOLUNTARY WAIVERS
--------------------------------------------------------
INVESTMENT SHAREHOLDER
FUND ADVISORY ADMINISTRATION SERVICING DISTRIBUTION TOTAL
- -------------------------------------------------------------------------------
EF $ -- $ 18,248 $ -- $ -- $ 18,248
IVF -- 2,569 -- -- 2,569
IEF 163,220 96,930 -- -- 260,150
- -------------------------------------------------------------------------------
Total $ 163,220 $ 117,747 $ -- $ -- $ 280,967
- -------------------------------------------------------------------------------
</Table>
G. OTHER -- Certain officers of the Trust(s) are officers of J.P. Morgan Chase &
Co. or of BISYS or their subsidiaries.
During the period certain of the Funds purchased securities from an underwriting
syndicate in which the principal underwriter or members of the syndicate were
affiliated with the Advisors.
For the six months ended April 30, 2003, EF, EMF, AEF and IEF incurred
approximately $8,181, $43, $9,878 and $108, respectively, as broker commissions
with brokers/dealers affiliated with JPMCB.
77
<Page>
4. CLASS SPECIFIC EXPENSES
The Funds' class specific expenses for the six months ended April 30, 2003 are
as follows:
<Table>
<Caption>
SHAREHOLDER
FUND SERVICING DISTRIBUTION TRANSFER AGENT
- -----------------------------------------------------------------
EF
Class A $ -- $ 32,244 $ 55,668
Class B 11,913 35,740 20,452
Class C 3,264 9,790 5,535
Institutional 3,304 -- 7,929
Select 10,712 -- 11,164
- -----------------------------------------------------------------
$ 29,193 $ 77,774 $ 100,748
- -----------------------------------------------------------------
JF
Class A $ -- $ 1,289 $ 17,480
Class B 128 384 1,736
- -----------------------------------------------------------------
$ 128 $ 1,673 $ 19,216
- -----------------------------------------------------------------
IGF
Class A $ 3,120 $ 3,120 $ 14,042
Class B 777 2,332 3,500
- -----------------------------------------------------------------
$ 3,897 $ 5,452 $ 17,542
- -----------------------------------------------------------------
IVF
Class A $ 184 $ 184 $ 6,331
Class B 198 594 6,813
Institutional 12,110 -- 8,477
Select 19,690 -- 16,814
- -----------------------------------------------------------------
$ 32,182 $ 778 $ 38,435
- -----------------------------------------------------------------
IOF
Class A $ 13,439 $ 13,439 $ 45,764
Class B 1,554 4,661 5,291
Institutional 88,067 -- 19,048
Select 32,995 -- 17,792
- -----------------------------------------------------------------
$ 136,055 $ 18,100 $ 87,895
- -----------------------------------------------------------------
EMF
Class A $ 64 $ 64 $ 7,070
Class B 58 175 6,448
Institutional 23,209 -- 9,284
Select 22,640 -- 18,273
- -----------------------------------------------------------------
$ 45,971 $ 239 $ 41,075
- -----------------------------------------------------------------
AEF
Class A $ 1,117 $ 1,748 $ 10,044
Class B 350 1,050 2,499
Institutional 3,449 -- 7,713
Select 22,474 -- 11,126
- -----------------------------------------------------------------
$ 27,390 $ 2,798 $ 31,382
- -----------------------------------------------------------------
IEF
Class A $ 343 $ 343 $ 18,015
Class B 65 195 3,523
Class C 10 29 388
Select 434,554 -- 25,598
- -----------------------------------------------------------------
$ 434,972 $ 567 $ 47,524
- -----------------------------------------------------------------
</Table>
78
<Page>
5. CLASS SPECIFIC DISTRIBUTIONS
The Funds' class specific distributions from net investment income and realized
gain on investment transactions for the six months ended April 30, 2003 and the
period ended October 31, 2002 are as follows:
<Table>
<Caption>
SIX MONTHS ENDED 4/30/03 YEAR ENDED 10/31/02
---------------------------------- --------------------------------
NET NET
FUND INVESTMENT INCOME REALIZED GAIN INVESTMENT INCOME REALIZED GAIN
- -----------------------------------------------------------------------------------------
EF
Class A $ 182,850 $ -- $ -- $ --
Class B 62,545 -- -- --
Class C 17,829 -- -- --
Institutional 49,458 -- -- --
Select 62,128 -- -- --
- -----------------------------------------------------------------------------------------
$ 374,810 $ -- $ -- $ --
- -----------------------------------------------------------------------------------------
IVF
Class A $ 5,641 $ -- $ 484 $ --
Class B 5,748 -- 403 --
Institutional 876,423 -- 1,369,814 --
Select 593,686 -- 299,055 --
- -------------------------------------------------------------------------------------------
$ 1,481,498 $ -- $ 1,669,756 $ --
- -------------------------------------------------------------------------------------------
IOF
Class A $ 117,616 $ -- $ 160,758 $ --
Class B 12,558 -- 16,272 --
Institutional 2,095,227 -- 3,350,183 --
Select 322,792 -- 354,090 --
- -------------------------------------------------------------------------------------------
$ 2,548,193 $ -- $ 3,881,303 $ --
- -------------------------------------------------------------------------------------------
EMF
Class A $ 886 $ -- $ 116 $ --
Class B 230 -- 100 --
Institutional 307,561 -- 672,780 --
Select 121,323 -- 193,873 --
- -------------------------------------------------------------------------------------------
$ 430,000 $ -- $ 866,869 $ --
- -------------------------------------------------------------------------------------------
IEF
Class A $ 476 $ -- $ 139 $ --
Class B 204 -- 13 --
Class C 4 -- -- --
Select 2,318,627 -- 1,160,939 --
- -------------------------------------------------------------------------------------------
$ 2,319,311 $ -- $ 1,161,091 $ --
- -------------------------------------------------------------------------------------------
</Table>
79
<Page>
6. INVESTMENT TRANSACTIONS
For the six months ended April 30, 2003, purchases and sales of investments
(excluding short-term investments) are as follows:
<Table>
<Caption>
PURCHASES SALES
(EXCLUDING U.S. (EXCLUDING U.S.
FUND GOVERNMENT) GOVERNMENT)
------------------------------------------------------
EF $ 183,382,711 $ 181,684,118
JF 2,855,567 2,256,558
IGF 215,049 244,628
IVF 24,935,002 34,342,944
IOF 68,612,472 109,109,193
EMF 28,284,322 35,517,471
AEF 18,719,078 15,891,161
IEF 208,628,825 20,556,562
</Table>
7. FEDERAL INCOME TAX MATTERS
For Federal income tax purposes, the cost and unrealized appreciation
(depreciation) in value of the investment securities at April 30, 2003, are as
follows:
<Table>
<Caption>
GROSS GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
FUND AGGREGATE COST APPRECIATION DEPRECIATION (DEPRECIATION)
- -----------------------------------------------------------------------------
EF $ 52,244,349 $ 4,913,950 $ (495,014) $ 4,418,936
JF 1,387,424 59,927 (56,281) 3,646
IGF 3,907,594 129,763 (815,570) (685,807)
IVF 32,552,967 4,833,729 (1,446,455) 3,387,274
IOF 199,630,275 20,715,850 (19,181,984) 1,533,866
EMF 64,078,681 10,838,756 (15,493,196) (4,654,440)
AEF 25,278,362 454,145 (3,092,474) (2,638,329)
IEF 469,230,244 13,614,448 (55,709,573) (42,095,125)
</Table>
8. BANK BORROWINGS
Pursuant to a Line of Credit Agreement, dated April 17, 2003, the Funds may
borrow money for temporary or emergency purposes. The Funds have entered into
the agreement, enabling them to participate with other JPMorgan Funds in a line
of credit with JPMCB, as administrative agent, and with a syndicate of banks,
which permits borrowings up to $250 million, collectively. Interest is charged
to each Fund based on its borrowings at an annual rate equal to the sum of the
Federal Funds Rate plus 0.50%. The Funds also pay a commitment fee of 0.09% per
annum on the average daily amount of the available commitment, which is
allocated on a pro-rata basis to the Funds. The commitment fee is included in
Other expenses on the Statement of Operations. This agreement will expire on
April 15, 2004.
80
<Page>
Prior to April 17, 2003, the Funds could borrow money for temporary or emergency
purposes. The Fund had entered into an agreement, enabling them to participate
with other JPMorgan Funds in an unsecured line of credit with a syndicate of
banks, which permitted borrowings up to $400 million, collectively. Interest was
charged to each Fund based on its borrowings at an annual rate equal to the sum
of the Federal Funds Rate plus 0.50%. The Funds also paid a commitment fee of
0.09% per annum on the average daily amount of the available commitment, which
was allocated on a pro-rata basis to the Funds. This agreement expired on April
16, 2003.
The Funds had no borrowings outstanding at April 30, 2003, nor at anytime during
the period then ended.
9. CONCENTRATIONS AND INDEMNIFICATIONS
Investments in international markets may involve certain considerations and
risks not typically associated with investments in the United States. Future
economic and political developments in foreign countries could adversely affect
the liquidity or value, or both, of such securities in which the Fund is
invested.
As of April 30, 2003, substantially all of the Funds' net assets consist of
securities of issuers which are denominated in foreign currencies. Changes in
currency exchange rates will affect the value of and investment income from such
securities.
As of April 30, 2003, IGF, IVF, IOF and IEF invested approximately 31.7%, 21.6%,
28.2% and 29.5%, respectively, of its respective portfolio in issuers in the
United Kingdom. EMF and AEF invested 25.5% and 24.6%, respectively, of its
respective portfolio in issuers in South Korea.
As of April 30, 2003, EF invested approximately 20.9% of its portfolio in
securities issued by telecommunications companies. IVF invested approximately
21.2% of its portfolio in securities issued by banking companies.
From time to time, the Funds may have a concentration of several shareholders
holding a significant percentage of shares outstanding. Investment activities of
these shareholders could have a material impact on the Funds.
In the normal course of business the Funds enter into contracts that contain a
variety of representations which provide general indemnifications. Each Fund's
maximum exposure under these arrangements is unknown, as this would involve
future claims that may be made against each Fund that have not yet occurred.
However, based on experience, the Funds expect the risk of loss to be remote.
10. SUBSEQUENT EVENT
The Funds' Board of Trustees has approved a change of name for Mutual Fund Group
and Mutual Fund Select Group. The Trusts will be renamed J.P. Morgan Mutual Fund
Group and J.P. Morgan Mutual Fund Select Group, respectively, effective May 1,
2003.
81
<Page>
11. CAPITAL SHARE TRANSACTIONS
Capital share transactions were as follows for the periods presented:
EUROPEAN FUND
<Table>
<Caption>
CLASS A CLASS B
---------------------------------- ----------------------------------
AMOUNT SHARES AMOUNT SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 13,546,175 1,030,625 $ 889,393 71,434
Shares issued in reinvestment of distributions 83,574 6,424 48,442 3,900
Shares redeemed (13,729,162) (1,052,495) (1,541,596) (125,390)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (99,413) (15,446) $ (603,761) (50,056)
==================================================================================================================================
<Caption>
YEAR ENDED OCTOBER 31, 2002
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 40,753,598 2,875,391 $ 4,484,346 318,418
Shares redeemed (47,411,189) (3,310,622) (5,530,683) (399,067)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (6,657,591) (435,231) $ (1,046,337) (80,649)
==================================================================================================================================
<Caption>
CLASS C INSTITUTIONAL
---------------------------------- ----------------------------------
AMOUNT SHARES AMOUNT SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 815,040 66,438 $ 2,658,195 203,432
Shares issued in reinvestment of distributions 6,481 522 9,584 731
Shares redeemed (760,681) (62,311) (1,357,448) (100,979)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 60,840 4,649 $ 1,310,331 103,184
==================================================================================================================================
<Caption>
YEAR ENDED OCTOBER 31, 2002
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 1,023,454 75,383 $ 3,747,517 261,900
Shares redeemed (1,513,850) (110,608) (2,189,224) (153,807)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (490,396) (35,225) $ 1,558,293 108,093
==================================================================================================================================
<Caption>
SELECT
----------------------------------
AMOUNT SHARES
- --------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- --------------------------------------------------------------------------------------------
Shares sold $ 18,521,240 1,423,362
Shares issued in reinvestment of distributions 53,460 4,100
Shares redeemed (18,359,235) (1,415,901)
- --------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 215,465 11,561
============================================================================================
<Caption>
YEAR ENDED OCTOBER 31, 2002
- --------------------------------------------------------------------------------------------
Shares sold $ 73,084,253 5,179,585
Shares redeemed (71,102,771) (5,008,408)
- --------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 1,981,482 171,177
============================================================================================
</Table>
82
<Page>
JAPAN FUND
<Table>
<Caption>
CLASS A CLASS B
---------------------------------- ----------------------------------
AMOUNT SHARES AMOUNT SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 3,221,265 760,115 $ 171,801 41,707
Shares redeemed (2,503,149) (577,457) (181,800) (43,752)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 718,116 182,658 $ (9,999) (2,045)
==================================================================================================================================
<Caption>
YEAR ENDED OCTOBER 31, 2002
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 4,559,564 891,941 $ 1,385,230 259,676
Shares redeemed (4,477,072) (868,232) (1,395,452) (260,212)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 82,492 23,709 $ (10,222) (536)
==================================================================================================================================
</Table>
83
<Page>
INTERNATIONAL GROWTH FUND
<Table>
<Caption>
CLASS A CLASS B
---------------------------------- ----------------------------------
AMOUNT SHARES AMOUNT SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ -- -- $ -- --
Shares redeemed -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ -- -- $ -- --
==================================================================================================================================
<Caption>
YEAR ENDED OCTOBER 31, 2002
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 827,887 102,240 $ 825,000 102,357
Shares redeemed $ (811,365) (100,169) $ (806,000) (100,000)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 16,522 2,071 $ 19,000 2,357
==================================================================================================================================
</Table>
84
<Page>
INTERNATIONAL VALUE FUND
<Table>
<Caption>
CLASS A CLASS B
---------------------------------- ----------------------------------
AMOUNT SHARES AMOUNT SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 194,803 30,098 $ 5,214 814
Shares issued in reinvestment of distributions 2,552 376 5,748 850
Shares redeemed (220,458) (33,790) (13,899) (2,005)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (23,103) (3,316) $ (2,937) (341)
==================================================================================================================================
<Caption>
YEAR ENDED OCTOBER 31, 2002
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 610,100 73,440 $ 397,532 49,358
Shares issued in reinvestment of distributions 484 58 403 48
Shares redeemed (435,537) (51,484) (214,932) (26,009)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 175,047 22,014 $ 183,003 23,397
==================================================================================================================================
<Caption>
INSTITUTIONAL SELECT
---------------------------------- ----------------------------------
AMOUNT SHARES AMOUNT SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 27,273,471 3,957,597 $ 35,473,825 5,209,540
Shares issued in reinvestment of distributions 662,311 97,113 527,931 77,523
Shares redeemed (33,712,405) (4,868,529) (37,534,391) (5,524,522)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (5,776,623) (813,819) $ (1,532,635) (237,459)
==================================================================================================================================
<Caption>
YEAR ENDED OCTOBER 31, 2002
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 191,108,290 23,571,460 $ 102,675,904 13,249,092
Shares issued in reinvestment of distributions 987,326 118,669 257,893 30,997
Shares redeemed (305,835,898) (36,824,872) (105,658,149) (13,440,339)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (113,740,282) (13,134,743) $ (2,724,352) (160,250)
==================================================================================================================================
</Table>
85
<Page>
INTERNATIONAL OPPORTUNITIES FUND
<Table>
<Caption>
CLASS A CLASS B
---------------------------------- ----------------------------------
AMOUNT SHARES AMOUNT SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 11,646,055 1,608,854 $ 91,809 12,141
Shares issued in reinvestment of distributions 99,065 13,243 10,904 1,464
Shares redeemed (11,652,875) (1,609,181) (265,095) (37,116)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 92,245 12,916 $ (162,382) (23,511)
==================================================================================================================================
<Caption>
YEAR ENDED OCTOBER 31, 2002
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 17,225,868 2,032,356 $ 597,010 68,429
Shares issued in reinvestment of distributions 122,484 13,670 13,272 1,481
Shares redeemed (24,594,620) (2,896,986) (1,956,074) (228,967)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (7,246,268) (850,960) $ (1,345,792) (159,057)
==================================================================================================================================
<Caption>
INSTITUTIONAL SELECT
---------------------------------- ----------------------------------
AMOUNT SHARES AMOUNT SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 46,678,606 6,331,059 $ 52,648,560 7,031,442
Shares issued in reinvestment of distributions 1,065,103 141,073 248,520 33,004
Shares redeemed (92,163,749) (12,457,919) (62,034,400) (8,238,134)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (44,420,040) (5,985,787) $ (9,137,320) (1,173,688)
==================================================================================================================================
<Caption>
YEAR ENDED OCTOBER 31, 2002
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 301,479,963 34,677,307 $ 214,045,865 26,886,447
Shares issued in reinvestment of distributions 1,719,932 191,957 257,698 28,760
Shares redeemed (291,711,949) (33,892,147) (216,859,043) (26,791,379)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 11,487,946 977,117 $ (2,555,480) 123,828
==================================================================================================================================
</Table>
86
<Page>
EMERGING MARKETS EQUITY FUND
<Table>
<Caption>
CLASS A CLASS B
---------------------------------- ----------------------------------
AMOUNT SHARES AMOUNT SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 111,821 20,638 $ 197,072 37,078
Shares issued in reinvestment of distributions 886 161 227 41
Shares redeemed (98,756) (18,036) (201,866) (37,883)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 13,951 2,763 $ (4,567) (714)
==================================================================================================================================
<Caption>
YEAR ENDED OCTOBER 31, 2002
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 1,329,658 207,292 $ 130,658 20,149
Shares issued in reinvestment of distributions 116 20 96 16
Shares redeemed (1,288,664) (200,628) (91,611) (14,312)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 41,110 6,684 $ 39,143 5,853
==================================================================================================================================
<Caption>
INSTITUTIONAL SELECT
---------------------------------- ----------------------------------
AMOUNT SHARES AMOUNT SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 11,851,220 2,217,883 $ 15,153,429 2,834,005
Shares issued in reinvestment of distributions 886 269,543 48,742 109,846 19,972
Shares redeemed (16,888,025) (3,194,421) (17,702,312) (3,314,496)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (4,767,262) (927,796) $ (2,439,037) (460,519)
==================================================================================================================================
<Caption>
YEAR ENDED OCTOBER 31, 2002
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 28,775,875 4,709,469 $ 33,349,693 5,728,695
Shares issued in reinvestment of distributions 687,716 107,676 188,618 32,353
Shares redeemed (54,065,211) (8,864,012) (38,157,997) (6,522,805)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (24,601,620) (4,046,867) $ (4,619,686) (761,757)
==================================================================================================================================
</Table>
87
<Page>
ASIA EQUITY FUND
<Table>
<Caption>
CLASS A CLASS B
---------------------------------- ----------------------------------
AMOUNT SHARES AMOUNT SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 3,594 81 $ 374 30
Shares redeemed (2,182,018) (165,811) (425,219) (32,525)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (2,178,424) (165,730) $ (424,845) (32,495)
==================================================================================================================================
<Caption>
YEAR ENDED OCTOBER 31, 2002*
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 2,500,000 166,667 $ 500,000 33,333
Shares redeemed -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 2,500,000 166,667 $ 500,000 33,333
==================================================================================================================================
<Caption>
INSTITUTIONAL SELECT
---------------------------------- ----------------------------------
AMOUNT SHARES AMOUNT SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 2,031,601 151,534 $ 8,604,298 622,341
Shares redeemed (1,370,052) (106,268) (3,526,717) (267,563)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 661,549 45,266 $ 5,077,581 354,778
==================================================================================================================================
<Caption>
YEAR ENDED OCTOBER 31, 2002*
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 8,594,000 542,864 $ 19,864,176 1,260,983
Shares redeemed (1,030,402) (71,428) (3,203,198) (236,660)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 7,563,598 471,436 $ 16,660,978 1,024,323
==================================================================================================================================
</Table>
* The Fund commenced its operations on November 1, 2001. For Institutional and
Select Shares, from commencement of offering on June 28, 2002.
88
<Page>
INTERNATIONAL EQUITY FUND
<Table>
<Caption>
CLASS A CLASS B
---------------------------------- ----------------------------------
AMOUNT SHARES AMOUNT SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 7,464,060 398,381 $ 59,372 3,152
Shares issued in reinvestment of distributions 385 20 204 11
Shares redeemed (1,961,324) (106,355) (317) (17)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 5,503,121 292,046 $ 59,259 3,146
==================================================================================================================================
<Caption>
YEAR ENDED OCTOBER 31, 2002*
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 100,938 4,911 $ 24,345 1,115
Shares issued in reinvestment of distributions 139 7 13 1
Shares redeemed (5,077) (243) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 96,000 4,675 $ 24,358 $ 1,116
==================================================================================================================================
<Caption>
CLASS C SELECT
---------------------------------- ----------------------------------
AMOUNT SHARES AMOUNT SHARES
- ----------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED APRIL 30, 2003**
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 229,132 12,556 $ 252,402,282 12,998,971
Shares issued in reinvestment of distributions 4 --^ 820,899 44,926
Shares redeemed (207,445) (11,483) (39,161,380) (2,041,555)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 21,691 1,073 $ 214,061,801 11,002,342
==================================================================================================================================
<Caption>
YEAR ENDED OCTOBER 31, 2002*
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 147,829,519 6,873,406
Shares issued in reinvestment of distributions 138,342 6,878
Shares redeemed (57,967,551) (2,707,300)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 90,000,310 4,172,984
==================================================================================================================================
</Table>
** For Class C Shares, from commencement of offering on January 31, 2003.
* For Class A Shares and Class B Shares, from commencement of offering on
February 28, 2002.
^ Amount rounds to less than one share.
89
<Page>
JPMORGAN FUNDS
Financial Highlights (unaudited)
<Table>
<Caption>
EUROPEAN FUND^^
-------------------------------------------------------------------------------------
CLASS A
-------------------------------------------------------------------------------------
11/1/02 YEAR ENDED
THROUGH ---------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.23 $ 12.96 $ 17.87 $ 16.52 $ 14.47 $ 14.10
- ----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.03^ 0.14^ 0.02^ (0.12)^ (0.06)^ 0.15
Net gains or losses on securities
(both realized and unrealized) 0.59 0.13 (3.24) 1.83 2.31 2.16
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.62 0.27 (3.22) 1.71 2.25 2.31
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income 0.09 -- -- -- 0.09 0.22
Distributions from capital gains -- -- 1.69 0.36 0.11 1.72
---------- ---------- ---------- ---------- ---------- ----------
Total distributions 0.09 -- 1.69 0.36 0.20 1.94
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 13.76 $ 13.23 $ 12.96 $ 17.87 $ 16.52 $ 14.47
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) 4.73% 2.08% (19.49%) 10.13% 15.60% 18.71%
==================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000 omitted) $ 28,076 $ 27,208 $ 32,317 $ 75,801 $ 47,759 $ 33,743
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- ----------------------------------------------------------------------------------------------------------------------------------
Net expenses 1.65% 1.65% 1.75% 1.74% 1.74% 1.74%
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 0.47% 1.03% 0.17% (0.60%) (0.40%) (0.07)
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and
reimbursements 2.50% 2.45% 2.07% 1.95% 2.06% 2.38%
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers and reimbursements (0.38%) 0.23% (0.15) (0.81%) (0.72%) (0.71)
- ----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) 352% 1,021 564% 161% 149% 183%
- ----------------------------------------------------------------------------------------------------------------------------------
<Caption>
EUROPEAN FUND^^
-------------------------------------------------------------------------------------
CLASS B
-------------------------------------------------------------------------------------
11/1/02 YEAR ENDED
THROUGH ---------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.63 $ 12.48 $ 17.38 $ 16.18 $ 14.24 $ 13.93
- ----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.01)^ 0.05^ (0.09)^ (0.27)^ (0.18)^ 0.08
Net gains or losses on securities
(both realized and unrealized) 0.56 0.10 (3.12) 1.83 2.26 2.10
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.55 0.15 (3.21) 1.56 2.08 2.18
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income 0.08 -- -- -- 0.03 0.15
Distributions from capital gains -- -- 1.69 0.36 0.11 1.72
---------- ---------- ---------- ---------- ---------- ----------
Total distributions 0.08 -- 1.69 0.36 0.14 1.87
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 13.10 $ 12.63 $ 12.48 $ 17.38 $ 16.18 $ 14.24
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) 4.38% 1.20% (20.03%) 9.40% 14.66% 17.89%
==================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000 omitted) $ 9,726 $ 10,017 $ 10,905 $ 18,546 $ 10,038 $ 9,457
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- ----------------------------------------------------------------------------------------------------------------------------------
Net expenses 2.39% 2.39% 2.50% 2.49% 2.51% 2.50%
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (0.26%) 0.38% (0.62%) (1.35%) (1.12%) (0.75%)
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and
reimbursements 3.25% 3.20% 2.82% 2.69% 2.83% 2.91%
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers and reimbursements (1.12%) (0.43%) (0.94%) (1.55%) (1.44%) (1.16%)
- ----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) 352% 1,021% 564% 161% 149% 183%
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
^^ Formerly Chase Vista European Fund.
^ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
(a) Not annualized for periods less than one year.
# Short periods have been annualized.
See notes to financial statements.
90
<Page>
<Table>
<Caption>
EUROPEAN FUND^^
- -------------------------------------------------------------------------------------------------------------------
CLASS C
- -------------------------------------------------------------------------------------------------------------------
11/1/02 YEAR ENDED 11/1/98**
THROUGH ---------------------------------------- THROUGH
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99
- -------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.62 $ 12.47 $ 17.37 $ 16.19 $ 14.24
- -------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.01)^ 0.05^ (0.08)^ (0.26)^ (0.08)^
Net gains or losses on securities
(both realized and unrealized) 0.55 0.10 (3.13) 1.80 2.17
---------- ---------- ---------- ---------- ----------
Total from investment operations 0.54 0.15 (3.21) 1.54 2.09
---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income 0.08 -- -- -- 0.03
Distributions from capital gains -- -- 1.69 0.36 0.11
---------- ---------- ---------- ---------- ----------
Total distributions 0.08 -- 1.69 0.36 0.14
---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 13.08 $ 12.62 $ 12.47 $ 17.37 $ 16.19
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) 4.33% 1.20% (20.04%) 9.27% 14.73%
===================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000 omitted) $ 2,663 $ 2,512 $ 2,922 $ 4,229 $ 1,460
- -------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- -------------------------------------------------------------------------------------------------------------------
Net expenses 2.39% 2.39% 2.50% 2.49% 2.51%
- -------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (0.18%) 0.36% (0.55%) (1.33%) (0.61%)
- -------------------------------------------------------------------------------------------------------------------
Expenses without waivers and
reimbursements 3.25% 3.20% 2.82% 2.67% 2.83%
- -------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers and reimbursements (1.04%) (0.45%) (0.87%) (1.51%) (0.93%)
- -------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) 352% 1,021% 564% 161% 149%
- -------------------------------------------------------------------------------------------------------------------
<Caption>
EUROPEAN FUND^^
- -------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SELECT
-------------------------------------- ---------------------------------------
11/1/02 YEAR 9/10/01** 11/1/02 YEAR 9/10/01**
THROUGH ENDED THROUGH THROUGH ENDED THROUGH
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 4/30/03 10/31/02 10/31/01
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.33 $ 12.99 $ 13.14 $ 13.26 $ 12.97 $ 13.14
- -------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.08^ 0.24^ (0.05)^ 0.04^ 0.14^ --^
---------- ---------- ---------- ---------- ---------- ----------
Net gains or losses on securities
(both realized and unrealized) 0.58 0.10 (0.10) 0.58 0.15 (0.17)
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.66 0.34 (0.15) 0.62 0.29 (0.17)
Less distributions:
Dividends from net investment income 0.10 -- -- 0.09 -- --
Distributions from capital gains -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total distributions 0.10 -- -- 0.09 -- --
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 13.89 $ 13.33 $ 12.99 $ 13.79 $ 13.26 $ 12.97
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) 5.03% 2.62% (1.14%) 4.75% 2.24% (1.29%)
===============================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000 omitted) $ 8,002 $ 6,305 $ 4,740 $ 8,962 $ 8,461 $ 6,063
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- -------------------------------------------------------------------------------------------------------------------------------
Net expenses 1.00% 1.00% 1.00% 1.50% 1.50% 1.50%
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.23% 1.81% (2.60%) 0.64% 1.06% (0.06%)
- -------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and
reimbursements 2.16% 2.25% 3.34%! 2.33% 2.43% 3.74%!
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers and reimbursements 0.07% 0.56% (4.94%)! (0.19%) 0.13% (2.30%)!
- -------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) 352% 1,021% 564% 352% 1,021% 564%
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
^^ Formerly Chase Vista European Fund.
** Commencement of offering of class of shares.
^ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any deferred sales load.
(a) Not annualized for periods less than one year.
# Short periods have been annualized.
! Due to the size of net assets and fixed expenses, ratios may appear
disproportionate.
See notes to financial statements.
91
<Page>
<Table>
<Caption>
JAPAN FUND^^
- ---------------------------------------------------------------------------------------------------------------------------------
CLASS A
------------------------------------------------------------------------------------
11/1/02 YEAR ENDED
THROUGH --------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 4.43 $ 5.29 $ 8.12 $ 9.84 $ 6.41 $ 9.52
- ---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.01)^ (0.06) (0.08)^ (0.15)^ (0.07)^ 0.27
Net gains or losses on securities
(both realized and unrealized) (0.27) (0.80) (2.75) (1.57) 3.50 (2.91)
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations (0.28) (0.86) (2.83) (1.72) 3.43 (2.64)
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income -- -- -- -- -- 0.26
Tax return of capital -- -- -- -- -- 0.21
---------- ---------- ---------- ---------- ---------- ----------
Total distributions -- -- -- -- -- 0.47
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 4.15 $ 4.43 $ 5.29 $ 8.12 $ 9.84 $ 6.41
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) (6.32%) (16.26%) (34.85%) (17.48%) 53.51% (28.98%)
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 1,447 $ 734 $ 751 $ 2,448 $ 4,260 $ 1,770
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- ---------------------------------------------------------------------------------------------------------------------------------
Net expenses 1.75% 1.75% 1.75% 1.77% 1.74% 1.76%
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (0.65%) (1.26%) (1.22%) (1.54%) (0.88%) (0.56%)
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers,
reimbursements and earnings credits 23.71%! 22.18%! 9.28%! 5.49%! 5.44%! 3.79%!
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers, reimbursements and
earnings credits (22.61%)! (21.69%)! (8.75%)! (5.26%)! (4.58%)! (2.59%)!
- ---------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) 198% 409% 196% 123% 133% 212%
- ---------------------------------------------------------------------------------------------------------------------------------
<Caption>
JAPAN FUND^^
------------------------------------------------------------------------------------
CLASS B
------------------------------------------------------------------------------------
11/1/02 YEAR ENDED
THROUGH --------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 4.25 $ 5.13 $ 7.93 $ 9.65 $ 6.32 $ 9.42
- ---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.04)^ (0.12) (0.13)^ (0.22)^ (0.13)^ 0.23
Net gains or losses on securities
(both realized and unrealized) (0.24) (0.76) (2.67) (1.50) 3.46 (2.90)
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations (0.28) (0.88) (2.80) (1.72) 3.33 (2.67)
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income -- -- -- -- -- 0.22
Tax return of capital -- -- -- -- -- 0.21
---------- ---------- ---------- ---------- ---------- ----------
Total distributions -- -- -- -- -- 0.43
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 3.97 $ 4.25 $ 5.13 $ 7.93 $ 9.65 $ 6.32
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) (6.59%) (17.15%) (35.31%) (17.82%) 52.69% (29.53%)
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted $ 94 $ 109 $ 135 $ 322 $ 1,089 $ 391
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- ---------------------------------------------------------------------------------------------------------------------------------
Net expenses 2.50% 2.50% 2.47% 2.52% 2.49% 2.51%
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (1.80%) (2.25%) (1.92%) (2.29%) (1.67%) (0.97%)
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers,
reimbursements and earnings credits 24.06%! 22.96%! 11.24%! 6.14%! 6.19%! 4.52%!
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers, reimbursements and
earnings credits (23.36%)! (22.71%)! (10.69%)! (5.91%)! (5.37%)! (2.98%)!
- ---------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) 198% 409% 196% 123% 133% 212%
- ---------------------------------------------------------------------------------------------------------------------------------
</Table>
^^ Formerly Chase Vista Japan Fund.
^ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
(a) Not annualized for periods less than one year.
# Short periods have been annualized.
! Due to the size of net assets and fixed expenses, ratios may appear
disproportionate.
See notes to financial statements.
92
<Page>
<Table>
<Caption>
INTERNATIONAL GROWTH FUND^^
-------------------------------------------------------------------------------------
CLASS A CLASS B
---------------------------------------- ----------------------------------------
11/1/02 YEAR 12/29/00* 11/1/02 YEAR 12/29/00*
THROUGH ENDED THROUGH THROUGH ENDED THROUGH
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 4/30/03 10/31/02 10/31/01
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 6.25 $ 7.22 $ 10.00 $ 6.20 $ 7.19 $ 10.00
- ----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.02 (0.01) (0.01) 0.01 (0.04) (0.04)
Net gains or losses on securities
(both realized and unrealized) 0.17 (0.96) (2.76) 0.17 (0.95) (2.77)
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.19 (0.97) (2.77) 0.18 (0.99) (2.81)
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income -- -- 0.01 -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 6.44 $ 6.25 $ 7.22 $ 6.38 $ 6.20 $ 7.19
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) 3.04% (13.43%) (27.68%) 2.90% (13.77%) (28.10%)
==================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 2,622 $ 2,543 $ 2,922 $ 653 $ 634 $ 719
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- ----------------------------------------------------------------------------------------------------------------------------------
Net expenses 2.00% 2.00% 2.00% 2.50% 2.50% 2.50%
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 0.72% (0.12%) (0.11%) 0.22% (0.62%) (0.51%)
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and
reimbursements 7.41% 7.20% 5.19% 7.91% 7.69% 5.66%
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers and reimbursements (4.69%) (5.32%) (3.30%) (5.19%) (5.81%) (3.67%)
- ----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) 7% 73% 35% 7% 73% 35%
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
^^ Formerly Chase Vista International Growth Fund.
* Commencement of operations.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
(a) Not annualized for periods less than one year.
# Short periods have been annualized.
See notes to financial statements.
93
<Page>
<Table>
<Caption>
INTERNATIONAL VALUE FUND^^
-----------------------------------------------------------------------------------
CLASS A CLASS B
--------------------------------------- ----------------------------------------
11/1/02 YEAR 9/28/01** 11/1/02 YEAR 9/28/01**
THROUGH ENDED THROUGH THROUGH ENDED THROUGH
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 4/30/03 10/31/02 10/31/01
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 6.98 $ 8.27 $ 8.12 $ 6.96 $ 8.28 $ 8.12
- --------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.02^ 0.15^ (0.01)^ 0.01^ (0.02)^ (0.01)^
Net gains or loss on securities
(both realized and unrealized) 0.02 (1.32) 0.16 0.01 (1.18) 0.17
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.04 (1.17) 0.15 0.02 (1.20) 0.16
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income 0.25 0.12 -- 0.25 0.12 --
Distributions from capital gains -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total distributions 0.25 0.12 -- 0.25 0.12 --
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 6.77 $ 6.98 $ 8.27 $ 6.73 $ 6.96 $ 8.28
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) 0.57% (14.34%) 1.85% 0.21% (14.72%) 1.97%
================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 135 $ 163 $ 10 $ 164 $ 171 $ 10
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- --------------------------------------------------------------------------------------------------------------------------------
Net expenses 1.45% 1.45% 1.45% 1.95% 1.95% 1.95%
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 0.72% 1.13% (0.89%) 0.22% (0.16%) (1.15%)
- --------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and reimbursements 10.49%! 15.97%! 11.06%! 10.99%! 15.43%! 11.58%!
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers
and reimbursements (8.32%)! (13.39%)! (10.50%)! (8.82%)! (13.64%)! (10.78%)!
- --------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) ~ 65% 138% 85% 65% 138% 85%
- --------------------------------------------------------------------------------------------------------------------------------
<Caption>
INTERNATIONAL VALUE FUND^^
-----------------------------------------------------------------------------------
INSTITUTIONAL
-----------------------------------------------------------------------------------
11/1/02 YEAR ENDED
THROUGH ---------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 7.02 $ 8.28 $ 12.28 $ 13.56 $ 11.21 $ 11.39
Income from investment operations:
Net investment income (loss) 0.04^ 0.06^ 0.07^ 0.05 0.19 0.32
Net gains or loss on securities
(both realized and unrealized) 0.01 (1.19) (3.02) (0.66) 2.51 0.20
---------- ---------- ---------- ----------- ----------- ----------
Total from investment operations 0.05 (1.13) (2.95) (0.61) 2.70 0.52
---------- ---------- ---------- ----------- ----------- ----------
Less distributions:
Dividends from net investment income 0.25 0.13 -- 0.16 0.35 0.35
Distributions from capital gains -- -- 1.05 0.51 -- 0.35
---------- ---------- ---------- ----------- ----------- ----------
Total distributions 0.25 0.13 1.05 0.67 0.35 0.70
---------- ---------- ---------- ----------- ----------- ----------
Net asset value, end of period $ 6.82 $ 7.02 $ 8.28 $ 12.28 $ 13.56 $ 11.21
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) 0.78% (13.89%) (26.06%) (5.16%) 24.70% 4.95%
================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 22,258 $ 28,644 $ 142,590 $ 432,785 $ 471,195 $ 366,991
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- --------------------------------------------------------------------------------------------------------------------------------
Net expenses 0.95% 0.95% 0.92% 0.95% 0.95% 0.97%
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.12% 0.91% 0.70% 0.50% 0.81% 0.92%
- --------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and
reimbursements 1.56% 1.16% 0.93% 0.95% 0.95% 0.97%
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers and reimbursements 0.51% 0.70% 0.69% 0.50% 0.81% 0.92%
- --------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) ~ 65% 138% 85% 80% 70% 74%
- --------------------------------------------------------------------------------------------------------------------------------
</Table>
^^ Formerly JPMorgan International Equity Fund.
** Commencement of offering of class of shares.
^ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
(a) Not annualized for periods less than one year.
# Short periods have been annualized.
! Due to the size of net assets and fixed expenses, ratios may appear
disproportionate.
~ Prior to September 10, 2001, IVF invested all of its investable assets in
The International Equity Portfolio ("IEP"). The portfolio turnover rate
disclosed prior to September 10, 2001 is the turnover rate of IEP.
See notes to financial statements.
94
<Page>
<Table>
<Caption>
INTERNATIONAL VALUE FUND^^
-------------------------------------------------------------------------------------
SELECT@
-------------------------------------------------------------------------------------
11/1/02 YEAR ENDED
THROUGH ----------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 7.01 $ 8.28 $ 16.08 $ 18.70 $ 15.91 $ 16.53
- ----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.02^ 0.07^ 0.02^ 0.27 0.24 0.51
Net gains or losses on securities
(both realized and unrealized) 0.02 (1.22) (3.39) (1.07) 3.47 0.21
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.04 (1.15) (3.37) (0.80) 3.71 0.72
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income 0.25 0.12 1.14 0.24 0.47 0.63
Distributions from capital gains -- -- 3.29 1.58 0.45 0.71
---------- ---------- ---------- ---------- ---------- ----------
Total distributions 0.25 0.12 4.43 1.82 0.92 1.34
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 6.80 $ 7.01 $ 8.28 $ 16.08 $ 18.70 $ 15.91
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 0.57% (14.09%) (26.66%) (5.49%) 24.41% 4.87%
==================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 14,792 $ 16,905 $ 21,307 $ 55,445 $ 64,860 $ 76,472
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- ----------------------------------------------------------------------------------------------------------------------------------
Net expenses 1.38% 1.29% 1.40% 1.30% 1.21% 1.17%
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 0.69% 0.85% 0.20% 0.15% 0.55% 0.73%
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and
reimbursements 1.85% 1.49% 1.40% 1.30% 1.21% 1.17%
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers and reimbursements 0.22% 0.65% 0.20% 0.15% 0.55% 0.73%
- ----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) ~ 65% 138% 85% 80% 70% 74%
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
^^ Formerly JPMorgan International Equity Fund.
@ Prior to the open of business on September 10, 2001, the class underwent a
split of shares in connection with the fund reorganization. Prior periods
have been restated to reflect the split.
^ Calculated based upon average shares outstanding.
(a) Not annualized for periods less than one year.
# Short periods have been annualized.
~ Prior to September 10, 2001, IVF invested all of its investable assets in
The International Equity Portfolio ("IEP"). The portfolio turnover rate
disclosed prior to September 10, 2001 is the turnover rate of IEP.
See notes to financial statements.
95
<Page>
<Table>
<Caption>
INTERNATIONAL OPPORTUNITIES FUND^^
------------------------------------------------------------------------------------
CLASS A CLASS B
--------------------------------------- ----------------------------------------
11/1/02 YEAR 9/10/01** 11/1/02 YEAR 9/10/01**
THROUGH ENDED THROUGH THROUGH ENDED THROUGH
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 4/30/03 10/31/02 10/31/01
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 7.49 $ 8.63 $ 9.18 $ 7.46 $ 8.63 $ 9.18
- ---------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.02 0.02 (0.01)^ (0.02) (0.04) (0.01)^
Net gains or losses on securities
(both realized and unrealized) (0.13) (1.09) (0.54) (0.10) (1.08) (0.54)
---------- ---------- ---------- ---------- ---------- ---------
Total from investment operations (0.11) (1.07) (0.55) (0.12) (1.12) (0.55)
---------- ---------- ---------- ---------- ---------- ---------
Less distributions:
Dividends from net investment income 0.07 0.07 -- 0.07 0.05 --
Distributions from capital gains -- -- -- -- -- --
---------- ---------- ---------- ----------- ---------- ---------
Total distributions 0.07 0.07 -- 0.07 0.05 --
---------- ---------- ---------- ----------- ---------- ---------
Net asset value, end of period $ 7.31 $ 7.49 $ 8.63 $ 7.27 $ 7.46 $ 8.63
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) (1.43%) (12.55%) (5.99%) (1.63%) (13.05%) (5.99%)
=================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000
omitted) $ 11,871 $ 12,057 $ 21,237 $ 1,159 $ 1,365 $ 2,950
- ---------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- ---------------------------------------------------------------------------------------------------------------------------------
Net expenses 1.90% 1.90% 1.90% 2.40% 2.40% 2.40%
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 0.46% 0.20% (0.48%) 0.04% (0.30%) (0.95%)
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and
reimbursements 2.30% 1.98% 1.90% 2.80% 2.49% 2.40%
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers and reimbursements 0.06% 0.12% (0.48%) (0.36%) (0.39%) (0.95%)
- ---------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) ~ 33% 121% 110% 33% 121% 110%
- ---------------------------------------------------------------------------------------------------------------------------------
<Caption>
INTERNATIONAL OPPORTUNITIES FUND^^
----------------------------------------
INSTITUTIONAL
----------------------------------------
11/1/02 YEAR 12/1/00
THROUGH ENDED THROUGH
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01***
- -------------------------------------------------------------------------------------
Net asset value, beginning of period $ 7.55 $ 8.64 $ 11.39
- -------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.07 0.09 0.12^
Net gains or losses on securities
(both realized and unrealized) (0.14) (1.08) (2.60)
---------- ---------- ----------
Total from investment operations (0.07) (0.99) (2.48)
---------- ---------- ----------
Less distributions:
Dividends from net investment income 0.08 0.10 0.11
Distributions from capital gains -- -- 0.16
---------- ---------- ----------
Total distributions 0.08 0.10 0.27
---------- ---------- ----------
Net asset value, end of period $ 7.40 $ 7.55 $ 8.64
- -------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) (0.89%) (11.67%) (22.24%)
=====================================================================================
RATIOS/SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------
Net assets, end of period (000
omitted) $ 160,762 $ 209,286 $ 231,048
- -------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- -------------------------------------------------------------------------------------
Net expenses 0.92% 0.92% 0.94%
- -------------------------------------------------------------------------------------
Net investment income (loss) 1.51% 1.21% 1.25%
- -------------------------------------------------------------------------------------
Expenses without waivers and
reimbursements 1.07% 0.98% 0.95%
- -------------------------------------------------------------------------------------
Net investment income (loss) without
waivers and reimbursements 1.36% 1.15% 1.24%
- -------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) ~ 33% 121% 110%
- -------------------------------------------------------------------------------------
<Caption>
INTERNATIONAL OPPORTUNITIES FUND^^
------------------------------------------------------
INSTITUTIONAL
------------------------------------------------------
YEAR ENDED 2/26/97*
--------------------------------------- THROUGH
PER SHARE OPERATING PERFORMANCE: 11/30/00 11/30/99 11/30/98 11/30/97
- ---------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 12.92 $ 10.11 $ 9.94 $ 10.00
- ---------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.08 0.25 0.22 0.07
Net gains or losses on securities
(both realized and unrealized) (1.42) 2.88 0.05 (0.13)
---------- ---------- ---------- ----------
Total from investment operations (1.34) 3.13 0.27 (0.06)
---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income 0.19 0.32 0.10 --
Distributions from capital gains -- -- -- --
---------- ---------- ---------- ----------
Total distributions 0.19 0.32 0.10 --
---------- ---------- ---------- ----------
Net asset value, end of period $ 11.39 $ 12.92 $ 10.11 $ 9.94
- ---------------------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) (10.55%) 31.87% 2.69% 0.60%
===================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------
Net assets, end of period (000
omitted) $ 461,016 $ 370,268 $ 323,918 $ 211,229
- ---------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- ---------------------------------------------------------------------------------------------------
Net expenses 0.91% 0.94% 0.99% 0.99%
- ---------------------------------------------------------------------------------------------------
Net investment income (loss) 0.84% 0.76% 1.13% 1.35%
- ---------------------------------------------------------------------------------------------------
Expenses without waivers and
reimbursements 0.91% 0.95% 1.02% 1.17%
- ---------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers and reimbursements 0.84% 0.75% 1.10% 1.17%
- ---------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) ~ 86% 80% 143% 72%
- ---------------------------------------------------------------------------------------------------
</Table>
^^ Formerly J.P.Morgan Institutional International Opportunities Fund.
** Commencement of offering of class of shares.
*** The Fund changed its fiscal year end from November 30 to October 31.
* Commencement of operations.
^ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any front-end or
deferred sales load.
(a) Not annualized for periods less than one year.
# Short periods have been annualized.
~ Prior to September 10, 2001, IOF invested all of its investable assets in
the International Opportunities Portfolio ("IOP"). The portfolio turnover
rate disclosed prior to September 10, 2001 is the turnover rate of IOP.
See notes to financial statements.
96
<Page>
<Table>
<Caption>
INTERNATIONAL OPPORTUNITIES FUND^^
----------------------------------------
SELECT@
----------------------------------------
11/1/02 YEAR 12/1/00
THROUGH ENDED THROUGH
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01***
- -------------------------------------------------------------------------------------
Net asset value, beginning of period $ 7.53 $ 8.64 $ 11.81
- -------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.04 0.08 0.08^
Net gains or losses on securities
(both realized and unrealized) (0.11) (1.10) (2.65)
---------- ---------- ----------
Total from investment operations (0.07) (1.02) (2.57)
---------- ---------- ----------
Less distributions:
Dividends from net investment income 0.08 0.09 0.32
Distributions from capital gains -- -- 0.28
---------- ---------- ----------
Total distributions 0.08 0.09 0.60
---------- ---------- ----------
Net asset value, end of period $ 7.38 $ 7.53 $ 8.64
- -------------------------------------------------------------------------------------
TOTAL RETURN (a) (0.93%) (11.98%) (22.66%)
=====================================================================================
RATIOS/SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 24,069 $ 33,428 $ 37,271
- -------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- -------------------------------------------------------------------------------------
Net expenses 1.20% 1.20% 1.27%
- -------------------------------------------------------------------------------------
Net investment income (loss) 1.16% 0.89% 0.85%
- -------------------------------------------------------------------------------------
Expenses without waivers and
reimbursements 1.34% 1.22% 1.27%
- -------------------------------------------------------------------------------------
Net investment income (loss) without
waivers and reimbursements 1.02% 0.87% 0.85%
- -------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) ~ 33% 121% 110%
- -------------------------------------------------------------------------------------
<Caption>
INTERNATIONAL OPPORTUNITIES FUND^^
-------------------------------------------------------
SELECT@
-------------------------------------------------------
YEAR ENDED 2/26/97*
--------------------------------------- THROUGH
11/30/00 11/30/99 11/30/98 11/30/97
- ----------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.41 $ 10.45 $ 10.32 $ 10.41
- ----------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.14 0.22 0.24 0.06
Net gains or losses on securities
(both realized and unrealized) (1.58) 3.05 (0.01) (0.15)
---------- ---------- ---------- ----------
Total from investment operations (1.44) 3.27 0.23 (0.09)
---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income 0.16 0.31 0.10 --
Distributions from capital gains -- -- -- --
---------- ---------- ---------- ----------
Total distributions 0.16 0.31 0.10 --
---------- ---------- ---------- ----------
Net asset value, end of period $ 11.81 $ 13.41 $ 10.45 $ 10.32
- ----------------------------------------------------------------------------------------------------
TOTAL RETURN (a) (10.87%) 32.13% 2.30% (0.80%)
====================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- ----------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 79,408 $ 67,543 $ 55,050 $ 62,939
- ----------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- ----------------------------------------------------------------------------------------------------
Net expenses 1.21% 1.18% 1.20% 1.20%
- ----------------------------------------------------------------------------------------------------
Net investment income (loss) 0.55% 0.47% 0.96% 1.08%
- ----------------------------------------------------------------------------------------------------
Expenses without waivers and
reimbursements 1.21% 1.24% 1.24% 1.51%
- ----------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers and reimbursements 0.55% 0.41% 0.92% 0.77%
- ----------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) ~ 86% 80% 143% 72%
- ----------------------------------------------------------------------------------------------------
</Table>
^^ Formerly J.P. Morgan International Opportunities Fund.
@ Prior to the open of business on September 10, 2001, the class underwent a
split of shares in connection with the fund reorganization. Prior periods
have been restated to reflect the split.
*** The Fund changed its fiscal year end from November 30 to October 31.
* Commencement of operations.
^ Calculated based upon average shares outstanding.
(a) Not annualized for periods less than one year.
# Short periods have been annualized.
~ Prior to September 10, 2001, IOF invested all of its investable assets in
the International Opportunities Portfolio ("IOP"). The portfolio turnover
rate disclosed prior to September 10, 2001 is the turnover rate of IOP.
See notes to financial statements.
97
<Page>
JPMORGAN FUNDS
Financial Highlights (unaudited)
<Table>
<Caption>
EMERGING MARKETS EQUITY FUND^^
---------------------------------------
CLASS A
---------------------------------------
11/1/02 YEAR 9/28/01**
THROUGH ENDED THROUGH
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01
- ------------------------------------------------------------------------------------
Net asset value, beginning of period $ 5.21 $ 5.14 $ 4.88
- ------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.03^ (0.06)^ (0.01)^
Net gains or losses on securities
(both realized and unrealized) 0.18 0.17 0.27
---------- ----------- ----------
Total from investment operations 0.21 0.11 0.26
---------- ----------- ----------
Less distributions:
Dividends from net investment income 0.03 0.04 --
Distributions from capital gains -- -- --
---------- ---------- ----------
Total distributions 0.03 0.04 --
---------- ---------- ----------
Net asset value, end of period $ 5.39 $ 5.21 $ 5.14
- ------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) 4.09% 2.14% 5.33%
====================================================================================
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 62 $ 46 $ 11
- ------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- ------------------------------------------------------------------------------------
Net expenses 2.00% 2.00% 2.00%
- ------------------------------------------------------------------------------------
Net investment income (loss) 1.05% (0.47%) (1.53%)
- ------------------------------------------------------------------------------------
Expenses without waivers and
reimbursements 29.84%! 37.57%! 12.12%!
- ------------------------------------------------------------------------------------
Net investment income (loss) without
waivers and reimbursements (26.79%)! (36.04%)! (11.65%)!
- ------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) ~ 44% 69% 76%
- ------------------------------------------------------------------------------------
<Caption>
EMERGING MARKETS EQUITY FUND^^
---------------------------------------
CLASS B
---------------------------------------
11/1/02 YEAR 9/28/01**
THROUGH ENDED THROUGH
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01
- -------------------------------------------------------------------------------------
Net asset value, beginning of period $ 5.20 $ 5.13 $ 4.88
- ------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.01^ (0.03)^ (0.01)^
Net gains or losses on securities
(both realized and unrealized) 0.19 0.14 0.26
---------- ---------- ----------
Total from investment operations 0.20 0.11 0.25
---------- ---------- ----------
Less distributions:
Dividends from net investment income 0.03 0.04 --
Distributions from capital gains -- -- --
---------- ---------- ----------
Total distributions 0.03 0.04 --
---------- ---------- ----------
Net asset value, end of period $ 5.37 $ 5.20 $ 5.13
- ------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) 3.79% 2.04% 5.12%
====================================================================================
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 39 $ 41 $ 11
- ------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- ------------------------------------------------------------------------------------
Net expenses 2.50% 2.50% 2.50%
- ------------------------------------------------------------------------------------
Net investment income (loss) 0.40% (0.34%) (2.00%)
- ------------------------------------------------------------------------------------
Expenses without waivers and
reimbursents 30.41%! 36.79%! 12.62%!
- ------------------------------------------------------------------------------------
Net investment income (loss) without
waivers and reimbursements (27.51%)! (34.63%)! (12.12%)!
- ------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) ~ 44% 69% 76%
- ------------------------------------------------------------------------------------
<Caption>
EMERGING MARKETS EQUITY FUND^^
----------------------------------------------------------------------------------
INSTITUTIONAL
----------------------------------------------------------------------------------
11/1/02 YEAR ENDED
THROUGH -------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 5.25 $ 5.14 $ 6.68 $ 7.22 $ 5.91 $ 9.86
- -------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.04^ 0.04^ 0.07^ 0.02 0.14 0.14!!
Net gains or losses on securities
(both realized and unrealized) 0.19 0.12 (1.60) (0.50) 1.68 (3.44)!!
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.23 0.16 (1.53) (0.48) 1.82 (3.30)
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income 0.04 0.05 0.01 0.06 0.51 0.13
Distributions from capital gains -- -- -- -- -- 0.52
---------- ---------- ---------- ---------- ---------- ----------
Total distributions 0.04 0.05 0.01 0.06 0.51 0.65
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 5.44 $ 5.25 $ 5.14 $ 6.68 $ 7.22 $ 5.91
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) 4.27% 3.04% (22.98%) (6.88%) 33.76% (35.50%)
===============================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 44,205 $ 47,503 $ 67,335 $ 110,711 $ 131,046 $ 120,402
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- -------------------------------------------------------------------------------------------------------------------------------
Net expenses 1.45% 1.45% 1.45% 1.45% 1.42% 1.46%
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.47% 0.83% 1.07% 0.46% 0.99% 1.43%
- -------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers
and reimbursents 1.97% 1.77% 1.64% 1.55% 1.52% 1.54%
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers and reimbursements 0.95% 0.51% 0.88% 0.36% 0.89% 1.35%
- -------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) ~ 44% 69% 76% 65% 87% 44%
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
^^ Formerly J.P. Morgan Institutional Emerging Markets Equity Fund.
** Commencement of offering of class of shares.
^ Calculated based upon average shares outstanding.
!! Based on amounts prior to Statement of Position 93-2 adjustments.
(1) Total return figures do not include the effect of any front-end or
deferred sales load.
(a) Not annualized for periods less than one year.
# Short periods have been annualized.
! Due to the size of net assets and fixed expenses, ratios may appear
disproportionate.
~ Prior to September 10, 2001, EMF invested all of its investable assets in
the Emerging Markets Equity Portfolio ("EMP"). The portfolio turnover rate
disclosed prior to September 10, 2001 is the turnover rate of EMP.
See notes to financial statements.
98
<Page>
<Table>
<Caption>
EMERGING MARKETS EQUITY FUND^^
-----------------------------------------------------------------------------
SELECT@
-----------------------------------------------------------------------------
11/1/02
THROUGH YEAR ENDED
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 5.23 $ 5.13 $ 6.73 $ 7.28 $ 5.88 $ 9.20
- --------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.03^ 0.03^ 0.05^ 0.02 0.08 0.11!!
Net gains or losses on securities (both
realized and unrealized) 0.18a 0.12 (1.61) (0.53) 1.72 (3.35)!!
---------- ---------- ----------- ---------- ---------- ----------
Total from investment operations 0.21 0.15 (1.56) (0.51) 1.80 (3.24)
---------- ---------- ----------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income 0.03 0.05 0.04 0.04 0.40 0.08
---------- ---------- ----------- ---------- ---------- ----------
Net asset value, end of period $ 5.41 $ 5.23 $ 5.13 $ 6.73 $ 7.28 $ 5.88
- --------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (a) 4.06% 2.75% (23.23%) (7.12%) 33.00% (35.54%)
==========================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 16,831 $ 18,660 $ 22,253 $ 34,204 $ 35,786 $ 23,387
- --------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- --------------------------------------------------------------------------------------------------------------------------
Net expenses 1.75% 1.75% 1.75% 1.75% 1.75% 1.76%
- --------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.15% 0.56% 0.78% 0.15% 0.73% 1.24%
- --------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and reimbursements 2.28% 2.04% 2.11% 1.96% 1.87% 1.82%
- --------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without waivers
and reimbursements 0.62% 0.27% 0.42% (0.06%) 0.61% 1.18%
- --------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a)~ 44% 69% 76% 65% 87% 44%
- --------------------------------------------------------------------------------------------------------------------------
</Table>
^^ Formerly J.P. Morgan Emerging Markets Equity Fund.
@ Prior to the open of business on September 10, 2001, the class underwent a
split of shares in connection with the fund reorganization. Prior periods
have been restated to reflect the split.
^ Calculated based upon average shares outstanding.
!! Based on amounts prior to Statement of Position 93-2 adjustments.
(a) Not annualized for periods less than one year.
# Short periods have been annualized.
~ Prior to September 10, 2001, EMF invested all of its investable assets in
the Emerging Markets Equity Portfolio ("EMP"). The portfolio turnover rate
disclosed prior to September 10, 2001 is the turnover rate of EMP.
See notes to financial statements.
99
<Page>
<Table>
<Caption>
ASIA EQUITY FUND^^
-------------------------------------------------------------------------------
CLASS A CLASS B INSTITUTIONAL
-------------------------- ------------------------- -----------------------
11/1/02 11/1/01* 11/1/02 11/1/01* 11/1/02 6/28/02**
THROUGH THROUGH THROUGH THROUGH THROUGH THROUGH
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 4/30/03 10/31/02 4/30/03 10/31/02
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.69 $ 15.00 $ 13.62 $ 15.00 $ 13.71 $ 15.86
- ----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) --^(b) (0.02) (0.03)^ (0.10) 0.09^ --
Net gains or losses on securities (both
realized and unrealized) (1.33) (1.29) (1.32) (1.28) (1.40) (2.15)
---------- ----------- ------------ ----------- ------------ --------
Total from investment operations (1.33) (1.31) (1.35) (1.38) (1.31) (2.15)
---------- ----------- ------------ ----------- ------------ --------
Less distributions:
Dividends from net investment income -- -- -- -- -- --
---------- ----------- ------------ ----------- ------------ --------
Net asset value, end of period $ 12.36 $ 13.69 $ 12.27 $ 13.62 $ 12.40 $ 13.71
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) (9.72%) (8.73%) (9.91%) (9.20%) (9.56%) (13.56%)
==================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 12 $ 2,282 $ 10 $ 454 $ 6,408 $ 6,463
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- ----------------------------------------------------------------------------------------------------------------------------------
Net expenses 1.75% 1.75% 2.25% 2.25% 1.35% 1.35%
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 0.04% (0.12%) (0.43%) (0.62%) 1.35% 0.08%
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers and reimbursements 4.02%! 5.16%! 4.96%! 5.91%! 2.50% 2.53%
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without waivers
and reimbursements (2.23%)! (3.53%)! (3.14%)! (4.28%)! 0.20% (1.10%)
- ----------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) 64% 106% 64% 106% 64% 106%
- ----------------------------------------------------------------------------------------------------------------------------------
<Caption>
ASIA EQUITY FUND^^
---------------------------
SELECT
---------------------------
11/1/02 6/28/02**
THROUGH THROUGH
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02
- ------------------------------------------------------------------------------
Net asset value, beginning of period $ 13.71 $ 15.86
- ------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.08^ --
Net gains or losses on securities (both
realized and unrealized) (1.40) (2.15)
---------- ------------
Total from investment operations (1.32) (2.15)
---------- ------------
Less distributions:
Dividends from net investment income -- --
Net asset value, end of period $ 12.39 $ 13.71
- ------------------------------------------------------------------------------
TOTAL RETURN (1) (a) (9.63%) (13.56%)
==============================================================================
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $ 17,084 $ 14,043
- ------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- ------------------------------------------------------------------------------
Net expenses 1.50% 1.50%
- ------------------------------------------------------------------------------
Net investment income (loss) 1.20% (0.03%)
- ------------------------------------------------------------------------------
Expenses without waivers and reimbursements 2.55% 2.58%
- ------------------------------------------------------------------------------
Net investment income (loss) without waivers
and reimbursements 0.15% (1.11%)
- ------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) 64% 106%
- ------------------------------------------------------------------------------
</Table>
^^ Formerly JPMorgan Fleming Pacific Region Fund.
* Commencement of operations.
** Commencement of offering of class of shares.
^ Calculated based upon average shares outstanding.
(b) Amount is less than $0.01.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
(a) Not annualized for periods less than one year.
# Short periods have been annualized.
! Due to the size of net assets and fixed expenses, ratios may appear
disproportionate.
See notes to financial statements.
100
<Page>
JPMORGAN FUNDS
Financial Highlights (unaudited) (continued)
<Table>
<Caption>
INTERNATIONAL EQUITY FUND^^
----------------------------------------------------------------------
CLASS A CLASS B CLASS C
------------------------- ------------------------- ----------
11/1/02 2/28/02** 11/1/02 2/28/02** 1/31/03**
THROUGH THROUGH THROUGH THROUGH THROUGH
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 4/30/03 10/31/02 4/30/03
- -------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 19.42 $ 21.81 $ 19.39 $ 21.81 $ 18.43
- -------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.16^ 0.04^ 0.06^ 0.03^ 0.06^
Net gains or losses on securities
(both realized and unrealized) (0.06) (2.37) (0.01) (2.43) 0.89
---------- ---------- ---------- ---------- ----------
Total from investment operations 0.10 (2.33) 0.05 (2.40) 0.95
---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income 0.07 0.06 0.07 0.02 0.01
---------- ---------- ---------- ---------- ----------
Distributions from capital gains -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total distributions 0.07 0.06 0.07 0.02 0.01
Net asset value, end of period $ 19.45 $ 19.42 $ 19.37 $ 19.39 $ 19.37
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) 0.51% (10.70%) 0.27% (11.00%) 5.14%
===================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000 omitted) $ 5,771 $ 91 $ 83 $ 22 $ 21
- -------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
Net expenses 1.50% 1.50% 2.00% 2.00% 2.00%
- -------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 2.50% 0.50% 0.79% 0.27% 1.51%
- -------------------------------------------------------------------------------------------------------------------
Expenses without waivers,
reimbursements and earnings credits 14.88%! 55.25%! 15.87%! 74.45%! 12.31%!
- -------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers, reimbursements and
earnings credits (10.88%)! (53.25%)! (13.08%)! (72.18%)! (8.80%)!
- -------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) 6% 20% 6% 20% 6%
- -------------------------------------------------------------------------------------------------------------------
<Caption>
INTERNATIONAL EQUITY FUND^^
----------------------------------------------------------------------------------
SELECT CLASS @
----------------------------------------------------------------------------------
11/1/02 YEAR ENDED
THROUGH ----------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE: 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 19.45 $ 21.20 $ 32.00 $ 33.33 $ 27.79 $ 29.45
- -------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) 0.11^ 0.21^ 0.39 0.15 0.33 0.41
Net gains or losses on securities
(both realized and unrealized) 0.02 (1.84) (6.35) 1.05 5.94 0.90
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations 0.13 (1.63) (5.96) 1.20 6.27 1.31
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income 0.13 0.12 0.18 0.13 0.73 1.24
Distributions from capital gains -- -- 4.66 2.40 -- 1.73
---------- ---------- ---------- ---------- ---------- ----------
Total distributions 0.13 0.12 4.84 2.53 0.73 2.97
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period $ 19.45 $ 19.45 $ 21.20 $ 32.00 $ 33.33 $ 27.79
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1) (a) 0.68% (7.74%) (21.62%) 2.71% 22.83% 4.80%
===============================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000 omitted) $ 461,463 $ 247,426 $ 181,296 $ 226,248 $ 223,339 $ 220,937
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS:#
- -------------------------------------------------------------------------------------------------------------------------------
Net expenses 1.10% 1.03% 1.00% 0.66% 0.06% 0.05%
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 1.35% 1.03% 0.87% 0.38% 1.14% 1.71%
- -------------------------------------------------------------------------------------------------------------------------------
Expenses without waivers,
reimbursements and earnings credits 1.57% 1.54% 1.54% 1.50% 1.31% 1.34%
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) without
waivers, reimbursements and
earnings credits 0.88% 0.52% 0.33% (0.46%) (0.11%) 0.42%
- -------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO TURNOVER RATE (a) 6% 20% 33% 149% 141% 150%
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
^^ Formerly Chase Vista Select International Equity Fund.
@ On November 20, 1998, the Fund underwent a "6 shares for 1" split of
shares. Prior periods have been restated to reflect the split.
** Commencement of offering of class of shares.
^ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any front-end or
deferred sales load.
(a) Not annualized for periods less than one year.
# Short periods have been annualized.
! Due to the size of net assets and fixed expenses, ratios may appear
disproportionate.
See notes to financial statements.
101
<Page>
THIS PAGE IS INTENTIONALLY LEFT BLANK
<Page>
JPMorgan Funds
U.S. EQUITY FUNDS
Capital Growth Fund
Disciplined Equity Fund
Disciplined Equity Value Fund
Diversified Fund
Dynamic Small Cap Fund
Equity Growth Fund
Equity Income Fund
Growth and Income Fund
Mid Cap Equity Fund
Mid Cap Growth Fund
Mid Cap Value Fund
Small Cap Equity Fund
Small Cap Growth Fund
U.S. Equity Fund
U.S. Small Company Fund
U.S. Small Company Opportunities Fund
Value Opportunities Fund
INTERNATIONAL EQUITY FUNDS
Fleming Emerging Markets Equity Fund
Fleming European Fund
Fleming International Equity Fund
Fleming International Growth Fund
Fleming International Opportunities Fund
Fleming International Value Fund
Fleming Japan Fund
Fleming Asia Equity Fund
SPECIALTY FUNDS
Global 50 Fund
Global Healthcare Fund
Market Neutral Fund
TAX AWARE FUNDS
Fleming Tax Aware International Opportunities Fund
Tax Aware Disciplined Equity Fund
Tax Aware Enhanced Income Fund
Tax Aware Large Cap Growth Fund
Tax Aware Large Cap Value Fund
Tax Aware Short-Intermediate Income Fund
Tax Aware U.S. Equity Fund
INCOME FUNDS
Bond Fund
Bond Fund II
Enhanced Income Fund
Fleming Emerging Markets Debt Fund
Global Strategic Income Fund
Short Term Bond Fund
Short Term Bond Fund II
Strategic Income Fund
U.S. Treasury Income Fund
TAX FREE FUNDS
California Bond Fund
Intermediate Tax Free Income Fund
New Jersey Tax Free Income Fund
New York Intermediate Tax Free Income Fund
Tax Free Income Fund
MONEY MARKET FUNDS
100% U.S. Treasury Securities Money Market Fund
California Tax Free Money Market Fund
Federal Money Market Fund
Liquid Assets Money Market Fund
New York Tax Free Money Market Fund
Prime Money Market Fund
Tax Free Money Market Fund
Treasury Plus Money Market Fund
U.S. Government Money Market Fund
<Page>
SEMI-ANNUAL REPORT (UNAUDITED)
JPMorgan Funds are distributed by J.P. Morgan Fund Distributors, Inc., which is
unaffiliated with The JPMorgan Chase Bank. JPMorgan Chase and its respective
affiliates receive compensation from JPMorgan Funds for providing services to
the Funds.
This report is submitted for the general information of the shareholders of the
funds. It is not authorized for distribution to prospective investors in the
funds unless preceded or accompanied by a prospectus.
The financial information in this report has been taken from the books and
records of the funds without examination by independent accountants, who express
no opinion thereto.
To obtain a prospectus for any of the JPMorgan Funds, call 1-800-348-4782. The
prospectus contains more complete information, including charges and expenses.
Please read it carefully before you invest or send money.
JPMorgan Funds Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039
(C)J.P. Morgan Chase & Co., 2003 All Rights Reserved. June 2003
SAN-INTEQ-403
<Page>
ITEM 2. CODE OF ETHICS.
(a) Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant or a
third party. If the registrant has not adopted such a code of ethics,
explain why it has not done so.
NOT APPLICABLE - ONLY EFFECTIVE FOR ANNUAL REPORTS WITH PERIODS ENDING ON OR
AFTER JULY 15, 2003.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of directors has determined
that the registrant either:
(i) Has at least one audit committee financial expert serving on
its audit committee; or
(ii) Does not have an audit committee financial expert serving on
its audit committee.
(2) If the registrant provides the disclosure required by paragraph
(a)(1)(i) of this Item, it must disclose the name of the audit
committee financial expert and whether that person is
"independent." In order to be considered "independent" for
purposes of this Item, a member of an audit committee may not,
other than in his or her capacity as a member of the audit
committee, the board of directors, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory, or
other compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as
defined in Section 2(a)(19) of the Act (15 U.S.C. 80a- 2(a)(19)).
(3) If the registrant provides the disclosure required by paragraph
(a)(1)(ii) of this Item, it must explain why it does not have an
audit committee financial expert.
NOT APPLICABLE - ONLY EFFECTIVE FOR ANNUAL REPORTS WITH PERIODS ENDING ON OR
AFTER JULY 15, 2003.
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ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption AUDIT FEES, the aggregate fees billed for
each of the last two fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years.
(b) Disclose, under the caption AUDIT-RELATED FEES, the aggregate fees
billed in each of the last two fiscal years for assurance and related services
by the principal accountant that are reasonably related to the performance of
the audit of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
(c) Disclose, under the caption TAX FEES, the aggregate fees billed in each
of the last two fiscal years for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax planning. Registrants shall
describe the nature of the services comprising the fees disclosed under this
category.
(d) Disclose, under the caption ALL OTHER FEES, the aggregate fees billed
in each of the last two fiscal years for products and services provided by the
principal accountant, other than the services reported in paragraphs (a) through
(c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
(e) (1) Disclose the audit committee's pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) Disclose the percentage of services described in each of paragraphs
(b) through (d) of this Item that were approved by the audit committee pursuant
to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) If greater than 50 percent, disclose the percentage of hours expended
on the principal accountant's engagement to audit the registrant's financial
statements for the most recent fiscal year that were attributed to work
performed by persons other than the principal accountant's full-time, permanent
employees.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to the
registrant's investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant for
each of the last two fiscal years of the registrant.
(h) Disclose whether the registrant's audit committee of the board of
directors has considered whether the provision of nonaudit services that were
rendered to the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling, controlled
by, or under common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the
principal accountant's independence.
NOT APPLICABLE - ONLY EFFECTIVE FOR ANNUAL REPORTS WITH PERIODS ENDING ON OR
AFTER DECEMBER 15, 2003.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report
on this Form N-CSR must, unless it invests exclusively in non-voting securities,
describe the policies and procedures that it uses to determine how to vote
proxies relating to portfolio securities, including the procedures that the
company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
NOT APPLICABLE
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ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive
officer or officers and principal financial officer or officers, or persons
performing similar functions, about the effectiveness of the registrant's
disclosure controls and procedures (as defined in Rule 30a-2(c) under the Act
(17 CFR 270.30a-2(c))) based on their evaluation of these controls and
procedures as of a date within 90 days of the filing date of the report that
includes the disclosure required by this paragraph.
REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER,
FOLLOWING AN EVALUATION WITHIN 90 DAYS PRIOR TO THE FILING DATE OF THIS REPORT
OF THE DISCLOSURE CONTROLS AND PROCEDURES AS DEFINED IN RULE 30a-2(c) UNDER THE
ACT CONCLUDE AS FOLLOWS:
1. THE DISCLOSURE CONTROLS AND PROCEDURES REFLECT A CUMULATIVE PROCESS INVOLVING
THE REGISTRANT'S SERVICE PROVIDERS;
2. THE CUMULATIVE PROCESS SEEKS TO ENSURE THAT THE INFORMATION REQUIRED TO BE
DISCLOSED BY THE REGISTRANT IN FORM N-CSR IS RECORDED, PROCESSED, SUMMARIZED AND
REPORTED WITHIN THE TIME PERIOD SPECIFIED IN THE COMMISSION'S RULES AND FORMS
AND THAT THE INFORMATION REQUIRED TO BE DISCLOSED BY THE REGISTRANT IN THESE
REPORTS IS ACCUMULATED AND COMMUNICATED TO THE REGISTRANT'S MANAGEMENT INCLUDING
ITS PRINCIPAL EXECUTIVE AND FINANCIAL OFFICER, AS APPROPRIATE TO ALLOW TIMELY
DECISIONS REGARDING REQUIRED DISCLOSURE; AND THAT
3. THIS PROCESS IS EFFECTIVE WITH REGARDS TO ITS PURPOSE.
(b) There were no significant changes in the registrant's internal controls
or in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.
THERE ARE NO SIGNIFICANT DEFICIENCIES OR MATERIAL WEAKNESSES IN THE REGISTRANT'S
INTERNAL CONTROLS AS OF THE DATE OF THEIR MOST RECENT EVALUATION, AND THERE HAVE
BEEN NO SIGNIFICANT CHANGES IN THE REGISTRANT'S INTERNAL CONTROLS OR IN OTHER
FACTORS THAT COULD SIGNIFICANTLY AFFECT THESE CONTROLS SUBSEQUENT TO THE DATE OF
THEIR MOST RECENT EVALUATION.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit. NOT APPLICABLE.
(b) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2 under
the Act (17 CFR 270.30a-2)
CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 ARE
ATTACHED HERETO.
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SIGNATURES
[See General Instruction F]
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) J.P. Morgan Mutual Fund Select Group
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By (Signature and Title)* /s/ David Wezdenko
-------------------------------------------------------
David Wezdenko, Treasurer
Date 7/7/03
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Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ David Wezdenko
-------------------------------------------------------
David Wezdenko, Treasurer
Date 7/7/03
----------------------------------------------------------------------------
By (Signature and Title)* /s/ George C.W. Gatch
-------------------------------------------------------
George C.W. Gatch, President
Date 7/7/03
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.
- --------------------------------------------------------------------------------
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