What is the goal of the Fund?
The Fund seeks capital appreciation.
Fees and Expenses of the Fund
The following tables describe the fees and expenses that you may pay if you buy and hold shares of the Fund.
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ANNUAL FUND OPERATING EXPENSES
(Expenses that you pay each year as a percentage of the value
of your investment)
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Institutional
Class
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Management Fees
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1.00
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%
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Distribution (Rule 12b-1) Fees
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NONE
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Other Expenses
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0.24
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Shareholder Service Fees
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0.10
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Remainder of Other Expenses
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0.14
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Acquired Fund (Underlying Fund) Fees and Expenses
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0.53
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Total Annual Fund Operating Expenses
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1.77
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Fee Waivers And Expense Reimbursements
1,2
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0.25
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Total Annual Fund Operating Expenses After Fee Waivers and Expense Reimbursements
1,2,3
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1.52
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1
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Effective March 1, 2013, J.P. Morgan Investment Management Inc. and J.P. Morgan Private Investments, Inc., have contractually agreed to waive the investment advisory
fee for the JPMorgan Access Growth Fund by 0.25% through November 1, 2014.
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2
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The Funds adviser has agreed to waive the advisory fee that it receives from the Fund in an amount equal to the advisory fee paid by JPM Access Growth Fund Ltd., the
Funds wholly-owned subsidiary, to its adviser. This waiver will continue in effect so long as the Fund invests in the subsidiary and may not be terminated without approval by the Funds Board.
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3
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The shares of the affiliated Underlying Funds in which the Fund invests a portion of its assets impose a separate investment advisory fee and a share- holder service fee.
To avoid charging an investment advisory fee and a shareholder service fee at an effective rate above 1.00% for investment advisory services and 0.10% for shareholder servicing on affiliated investments, the investment adviser and shareholder
servicing agent will waive investment advisory and shareholder service fees in an amount equal to the weighted average pro rata amount of affiliated investment advisory fees and affiliated shareholder service fees charged by the Underlying Funds.
For the fiscal year ended June 30, 2012, 0.29% of the Funds Acquired Fund (Underlying Fund) Fees and Expenses were waived and after such waivers, the net expenses for the Fund were 1.48% for Institutional Class Shares.
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Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods
indicated. The Example also assumes that your investment has a 5% return each year and that the Funds operating expenses are equal to the total annual fund operating expenses after fee waivers and expense reimbursements shown in the fee table
through 10/31/14 and total annual fund operating expenses thereafter. Your actual costs may be higher or lower.
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WHETHER OR NOT YOU SELL YOUR SHARES, YOUR
COST WOULD BE:
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1 Year
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3 Years
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5 Years
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10 Years
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INSTITUTIONAL CLASS SHARES ($)
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155
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533
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936
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2,063
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Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and
may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Funds performance. During the Funds most recent fiscal year,
the Funds portfolio turnover rate was 82% of the average value of its portfolio.
1
What are the Funds main investment strategies?
The Fund invests in a combination of domestic and international equity, fixed income, and alternative assets, as described below. The Fund invests in mutual
funds in the same group of investment companies (i.e. J.P. Morgan Funds), unaffiliated open-end and closed-end investment companies (which may or may not be registered under the Investment Company Act of 1940, as amended), exchange traded funds
(ETFs) and directly in individual securities. In addition, to the extent permitted by applicable law or the exemptive relief obtained from the Securities and Exchange Commission (SEC), the Fund invests directly in other financial instruments,
including derivatives, such as futures, swaps and structured investments, to gain exposure to or to overweight or underweight allocations among various sectors or markets.
The Funds adviser is J.P. Morgan Investment Management Inc. (JPMIM or the Adviser) and it sets the Funds overall investment strategies. The Fund is managed by J.P. Morgan Private Investments Inc.
(JPMPI). JPMPI utilizes an allocation process (Strategic Asset Allocations) to invest the Funds assets across the various asset classes and with various sub-advisers. JPMPI and JPMIM use rigorous criteria to select sub-advisers and underlying
fund managers to manage certain portions of the Funds assets. In choosing whether to buy or sell an investment and to set their allocations, JPMPI considers the following factors: (1) market trends, (2) JPMPIs outlook for a
market capitalization or investment style category, and (3) an underlying fund managers performance in various market conditions. JPMPI will also consider the advantages and disadvantages to the Fund of using actively versus passively
managed investment vehicles. By combining the strengths of different sub-advisers and underlying fund managers, the Fund seeks to benefit from a variety of investment selection processes and methodologies to achieve its investment objective.
The descriptions below include both the range that the Fund may invest within a particular asset class and the various investments that the Fund
may use to gain exposure to such asset class. JPMPI frequently monitors and may make tactical changes to the Strategic Asset Allocations, including shifts among the various asset classes and allocations to the other sub-advisers and underlying fund
managers.
U.S. and International Equity:
The allocation range will typically be 40%80% of the Funds total assets. The
Funds equity-related investments consist of J.P. Morgan Funds, unaffiliated investment companies, ETFs and individual securities. Whether investing through an investment company or directly in securities, the investments in this asset class
are: common stock, preferred stock, structured investments, convertible securities, depository receipts and warrants to buy common stocks. The Fund invests in foreign and emerging market securities.
U.S. and International Fixed Income:
The allocation range will typically be 5%45% of the
Funds total assets. The Funds fixed income investments include J.P. Morgan Funds, unaffiliated investment companies, ETFs and individual securities. Whether investing through an investment company or directly in securities, the
investments in this asset class include: U.S. government securities (including agencies and instrumentalities), municipal bonds (including housing authority obligations), domestic and foreign corporate bonds, high yield securities (junk bonds), loan
participations and assignments, debt obligations issued or guaranteed by a foreign sovereign government or its agencies, authorities or political subdivisions, mortgage-backed and asset-backed securities, inflation-indexed bonds and Treasury
Inflation Protected Securities (TIPS).
Alternative:
The allocation range will typically be 0%35% of the Funds total assets.
The Funds alternative-related investments include J.P. Morgan Funds, unaffiliated investment companies and ETFs. Whether investing through a mutual fund or directly in securities, the investments in this asset class give the Fund exposure to:
market neutral strategies, absolute return strategies, directional strategies, real estate (including REITs), private equity, mezzanine debt and commodities.
The Fund will gain exposure to commodity markets primarily by investing in the JPM Access Growth Fund Ltd., a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the
Subsidiary). The allocation range will typically be 0%-10% of the Funds total assets. The Subsidiary is advised by JPMIM and sub-advised by JPMPI. The Subsidiary (unlike the Fund) may invest without limitation in commodity-linked structured
notes and other commodity-linked derivative instruments, including derivative instruments linked to the value of a particular commodity or commodity futures contract, or a subset of commodities or commodity futures contracts. However, the Subsidiary
is otherwise subject to the same fundamental, non-fundamental and certain other investment restrictions as the Fund. The Subsidiary may use derivatives to obtain long exposure in an attempt to increase the Subsidiarys income or gain, to hedge
various investments and for risk management.
The Fund may invest in ETFs in order to gain exposure to particular asset classes. An ETF is a
registered investment company, depositary receipt or other pooled investment vehicle that seeks to track the performance of a particular market index or security. These indexes include not only broad-based market indexes but more specific indexes as
well, including those relating to particular sectors, markets, regions or industries.
Derivatives, which are instruments that have a value based
on another instrument, exchange rate or index, may be used as substitutes for securities in which the Fund can invest. The Fund uses structured notes as tools in the management of portfolio assets. In particular, the Fund uses structured notes
2
for risk management and to increase the Funds income or gain. To the extent that the Fund invests in underlying funds, such underlying funds may also use derivatives.
The Funds Main Investment Risks
The
Fund is subject to management risk and may not achieve its objective if the advisers expectations regarding particular securities or markets are not met.
An investment in this Fund or any other fund may not provide a complete investment program. The suitability
of an investment in the Fund should be considered based on the investment objective, strategies and risks described in this prospectus, considered in light of all of the other investments in your portfolio, as well as your risk tolerance, financial
goals and time horizons. You may want to consult with a financial advisor to determine if this Fund is suitable for you.
Investments in
Mutual Funds Risk.
The Funds investments are concentrated in J.P. Morgan Funds and unaffiliated investment companies, so the Funds investment performance is directly related to the performance of the underlying funds. Shareholders
will indirectly bear the expenses incurred by the underlying funds.
General Market Risk.
Economies and financial markets throughout the
world are becoming increasingly interconnected, which increases the likelihood that events or conditions in one country or region will adversely impact markets or issuers in other countries or regions.
ETF Risk.
The Fund and underlying funds may invest in shares of other investment companies, including ETFs. The Fund indirectly pays a portion of the
expenses incurred by the underlying funds. The price movement of an index-based ETF may not track the underlying index and may result in a loss. ETFs may trade at a price below their net asset value (also known as a discount).
Foreign Securities and Emerging Market Risk
. Underlying funds that invest in foreign issuers are subject to additional risks including political and
economic risks, civil conflicts and war, greater volatility, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, expropriation and nationalization risks, and less stringent investor
protection and disclosure standards of foreign markets. These risks are magnified in countries in emerging markets. Events and evolving conditions in certain economies or markets may alter the risks associated with investments tied to
countries or regions that historically were perceived as comparatively stable becoming riskier and more volatile.
Country and Region Risk.
Some of the underlying funds concentrate their investments in securities of a single country or region (e.g., China Region, India, Latin America or Russia). Because these underlying funds concentrate their investments in a single country or
region, their performance may be more volatile than that of a fund that can invest globally.
Currency Risk.
The underlying funds are subject to risks associated with foreign currency. Certain
underlying funds are not required to hedge their non-dollar investments back to the U.S. dollar for defensive purposes. As a result, changes in foreign currency exchange rates will affect the value of certain underlying funds securities and
the price of the underlying funds shares. Generally, when the value of the U.S. dollar rises in value relative to a foreign currency, an investment in that country loses value because that currency is worth fewer U.S. dollars. Devaluation of a
currency by a countrys government or banking authority also will have a significant impact on the value of any investments denominated in that currency. Currency markets may be more volatile and generally are not as regulated as securities
markets.
Equity Securities Risk
. Some of the underlying funds invest primarily in equity securities (such as stocks) that are more
volatile and carry more risks than some other forms of investment. The price of equity securities may rise or fall because of economic or political changes or changes in a companys financial condition, sometimes rapidly or unpredictably. When
the value of the stocks held by an underlying fund goes down, the value of your investment in the Fund will be affected.
Fixed Income
Securities Risk.
Some of the underlying funds invest in fixed income securities. These securities will increase or decrease in value based on changes in interest rates and are subject to the risk that a counterparty will fail to make payments
when due or default. If rates rise, the value of a funds investments generally drops. Securities with greater interest rate sensitivity and longer maturities tend to produce higher yields, but are subject to greater fluctuations in value. When
the value of investments in the Fund or underlying fixed income funds goes down, the value of your investment in the Fund will be affected.
Credit Risk.
There is a risk that issuers and counterparties will not make payments on securities, repurchase agreements or other investments held by
the Fund or the underlying funds. If an issuers financial condition worsens, the credit quality of the issuer may deteriorate making it difficult for the Fund or the underlying funds to sell such investments.
High Yield Securities Risk
. Certain of the underlying funds may invest in securities that are issued by companies which are highly leveraged, less
creditworthy or financially distressed. These investments (known as junk bonds) are considered to be speculative and are subject to greater risk of loss, greater sensitivity to interest rate and economic changes, valuation difficulties, and
potential illiquidity.
Real Estate Securities Risk
. Certain of the underlying funds may invest in real estate securities, including real
estate investment trusts (REITs), which are subject to the same risks as direct investments in real estate and mortgages, and their value will depend on the value of the underlying real estate interests. These risks include default, prepayments,
changes in value
3
resulting from changes in interest rates and demand for real and rental property, and the management skill and creditworthiness of REIT issuers. The underlying funds will indirectly bear their
proportionate share of expenses, including management fees, paid by each REIT in which it invests in addition to the expenses of the underlying fund.
Commodity Risk.
Certain underlying funds have exposure to commodities. Exposure to commodity-related securities and derivatives may subject the Fund to greater volatility than investments in
traditional securities, particularly if the instruments involve leverage. The value of commodity-linked investments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a
particular industry or commodity. In addition, to the extent that an underlying fund gains exposure to an asset through synthetic replication by investing in commodity-linked investments rather than directly in the asset, it may not have a claim on
the applicable underlying asset and will be subject to enhanced counterparty risk.
Subsidiary Risk.
By investing in the Subsidiary, the
Fund is indirectly exposed to the risks associated with the Subsidiarys investments. The derivatives and other investments held by the Subsidiary are generally similar to those that are permitted to be held by the Fund and are subject to the
same risks that apply to similar investments if held directly by the Fund. These risks are described elsewhere in this prospectus. There can be no assurance that the investment objective of the Subsidiary will be achieved. The Subsidiary is not
registered under the Investment Company Act of 1940 (1940 Act), and, unless otherwise noted in this prospectus, is not subject to all the investor protections of the 1940 Act. Changes in the laws of the United States and/or the Cayman Islands could
result in the inability of the Fund and/or the Subsidiary to operate as described in this prospectus and could adversely affect the Fund.
Derivatives Risk
. The Fund and certain of the underlying funds may use derivatives in connection with their investment strategies. Derivatives,
including futures, swaps and structured investments, may be riskier than other types of investments because they may be more sensitive to changes in economic or market conditions and could result in losses that significantly exceed the Funds
original investment. Many derivatives create leverage thereby causing the Fund to be more volatile than it would have been if it had not used derivatives. Derivatives also expose the Fund and the underlying funds to counterparty risk (the risk that
the derivative counterparty will not fulfill its contractual obligations), including credit risk of the derivative counterparty. Certain derivatives are synthetic instruments that attempt to replicate the performance of certain reference assets.
With regard to such derivatives, the Fund or underlying funds do
not have a claim on the reference assets and are subject to enhanced counterparty risk. Certain of the Funds transactions in foreign currency derivatives and other derivatives could also
affect the amount, timing and character of distributions to shareholders which may result in the Fund realizing more short-term capital gain and ordinary income subject to tax at ordinary income tax rates than it would if it did not engage in such
transactions, which may adversely impact the Funds after-tax returns. In addition, the Fund and certain of the underlying funds may use derivatives for non-hedging purposes, which increases the Funds or the underlying funds
potential for loss.
Structured Note Risk.
The Fund, or certain of the underlying funds, invest in commodity, currency, equity and fixed
income linked structured notes. Structured notes are typically privately negotiated transactions between two or more parties. The fees associated with a structured note may lead to increased tracking error. The Fund also bears the risk that the
issuer of the structured note will default. The Fund bears the risk of loss of its principal investment and periodic payments expected to be received for the duration of its investment. In addition, a liquid market may not exist for the structured
notes. The lack of a liquid market may make it difficult to sell the structured notes at an acceptable price or to accurately value them.
Index Investing Risk.
Certain of the underlying funds, including ETFs, in which the Fund may invest are index funds. Index funds are not actively
managed and are designed to track the performance and holdings of a specified index. Securities may be purchased, held and sold by an index fund at times when an actively managed fund would not do so. There is also the risk that the underlying
funds performance may not correlate with the performance of the index.
Preferred Stock Risk
. The Fund and certain underlying funds
may invest in preferred stock. Preferred stock generally has a preference as to dividends and liquidation over an issuers common stock but ranks junior to debt securities in an issuers capital structure. Unlike interest payments on debt
securities, preferred stock dividends are payable only if declared by the issuers board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.
Government Securities Risk
. The Fund and certain of the underlying funds invest in securities issued or guaranteed by the U.S. government or its agencies and instrumentalities (such as securities
issued by the Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), or the Federal Home Loan Mortgage Corporation (Freddie Mac)). Unlike Ginnie Mae securities, securities issued or guaranteed
by U.S. government related organizations such as Fannie Mae and Freddie Mac are not backed by the full faith and credit of the U.S. government. No assurance can be given that the U.S. government would provide financial support. Therefore, U.S.
4
government-related organizations such as Fannie Mae or Freddie Mac may not have the funds to meet their payment obligations in the future. U.S. government securities include zero coupon
securities, which tend to be subject to greater market risk than interest-paying securities of similar maturities.
High Portfolio Turnover
Risk.
The Fund may engage in active and frequent trading leading to increased portfolio turnover, higher transaction costs, and the possibility of increased capital gains, including short-term capital gains that will generally be taxable to
shareholders as ordinary income.
Redemption Risk.
The Fund could experience a loss when selling securities to meet redemption requests by
shareholders. The risk of loss increases if the redemption requests are unusually large or frequent, occur in times of overall market turmoil or declining prices for the securities sold, or when the securities the Fund wishes to or is required to
sell are illiquid.
Investments in the Fund are not deposits or obligations of, or guaranteed or endorsed by, any bank and are
not insured or guaranteed by the FDIC, the Federal Reserve Board or any other government agency.
You could lose money investing in the Fund.
The Funds Past Performance
This section
provides some indication of the risks of investing in the Fund. The bar chart shows the performance of the Funds Institutional Class Shares for the past two calendar years. The table shows the average annual total returns over the past
one year and the life of the Fund. The table compares that performance to the Access Growth Composite Benchmark, a customized benchmark, the MSCI World Index (net of foreign withholding taxes) a broad-based securities market index, and the Barclays
U.S. Aggregate Index, also a broad-based securities market index. Effective April 1, 2013, the Access Growth Composite Benchmark is a composite benchmark comprised of unmanaged indexes that corresponds to the Funds model allocation and that
consists of the MSCI World Index (net of foreign withholding taxes) (70%), Barclays U.S. Aggregate Index (15%), Citigroup 3-Month Treasury Bill Index (5%), HFRX Global Hedge Fund Index (5%) and Dow Jones-UBS Commodity Index (5%). The performance of
the Funds former composite benchmark (which was composed of the MSCI World Index (net of foreign withholding taxes) (70%), Barclays U.S. Aggregate Index (20%), Citigroup 3-Month Treasury Bill Index (10%)) is currently presented in the table.
Past performance (before and after taxes) is not necessarily an indication of how any class of the Fund will perform in the future.
Updated performance information is available by visiting www.jpmorganaccessfunds.com or by calling
1-800-480-4111.
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Best Quarter
|
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3rd quarter, 2010
|
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9.46%
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Worst Quarter
|
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3rd quarter, 2011
|
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15.33%
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The Funds year-to-date total return through 9/30/12 was 10.20%.
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AVERAGE ANNUAL TOTAL RETURNS
(For periods ended December 31, 2011)
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Past
1 Year
|
|
|
Life of
Fund
(since
9/30/09)
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INSTITUTIONAL CLASS SHARES
|
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Return Before Taxes
|
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(7.83
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)%
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2.04
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%
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Return After Taxes on Distributions
|
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|
(9.07
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)
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|
|
1.20
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Return After Taxes on Distributions and Sale of Fund Shares
|
|
|
(4.67
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)
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1.37
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FORMER ACCESS GROWTH COMPOSITE BENCHMARK
|
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|
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(Reflects No Deduction for Fees, Expenses or Taxes)
|
|
|
(2.12
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)
|
|
|
4.65
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MSCI WORLD INDEX
|
|
|
|
|
|
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|
(Net of Foreign Withholding Taxes)
|
|
|
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|
(Reflects No Deduction for Fees, Expenses or Taxes, Except Foreign Withholding Taxes)
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|
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(5.54
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)
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|
4.27
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BARCLAYS U.S. AGGREGATE INDEX
|
|
|
|
|
|
|
|
|
(Reflects No Deduction for Fees, Expenses or Taxes)
|
|
|
7.84
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|
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|
6.46
|
|
5
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and
do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their shares through tax-deferred
arrangements such as 401(k) plans or individual retirement accounts.
Management
Investment Adviser
J.P. Morgan Investment Management Inc.
Investment Sub-adviser
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Portfolio
Manager
|
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Managed
Fund
Since
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Primary Title with
Investment Sub-adviser
|
J.P. Morgan Private Investments Inc.
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Jonathan A. Shelon
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2012
|
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Managing Director
|
Ken Louie
|
|
|
2009
|
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Executive Director
|
Purchase and Sale of Fund Shares
Purchase minimums
|
|
|
|
|
For Institutional Class Shares
|
|
|
|
|
To establish an account
|
|
|
$3,000,000
|
|
To add to an account
|
|
|
No minimum levels
|
|
In general, you may purchase or redeem shares on any business day
|
|
Through your Financial Intermediary
|
|
|
By writing to J.P. Morgan Funds Services, P.O. Box 8528, Boston, MA 02266-8528
|
|
|
After you open an account, by calling J.P. Morgan Funds Services at 1-800-480-4111
|
Tax Information
The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, except when your investment is in an IRA, 401(k) plan or other tax-advantaged investment plan, in which case you may be subject to federal income tax upon withdrawal from the
tax-advantaged investment plan.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the
financial intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or financial intermediary and your salesperson to recommend the Fund over another investment.
Ask your salesperson or visit your financial intermediarys website for more information.
SPRO-AG-I-1112-3
6
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