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Jp morgan funds_icvc ii icvc iii icvc_spr_gb_en

  1. 1. JPMorgan Fund ICVC, JPMorgan Fund II ICVC and JPMorgan Fund III ICVCSimplified Prospectus
  2. 2. ContentsHow to use this document 2 Risk factors 3 Questions and answers 6Taxation 9Additional information 10Data Privacy Policy and Anti Money Laundering 11Appendix 1: Fund Profiles 13 How to read fund profiles 14 JPMorgan Fund ICVC 15 JPMorgan Fund II ICVC 92 JPMorgan Fund III ICVC 99Appendix 2: Other Share Classes 104 Contents l 1
  3. 3. How to use this documentThis document contains key information about the three JPMorgan Fund ICVCs (JPMorganFund ICVC, JPMorgan Fund II ICVC and JPMorgan Fund III ICVC, each an open-endedinvestment company (OEIC) (the “Companies”) as at 1 February 2012.It is an easy-to-use guide to investing in the sub-funds of the Companies (each a “Fund” ortogether “the Funds”), providing clear and concise information on the risks and chargesinvolved when making an investment as well as details of how to buy and sell shares, whereto find fund prices, how to contact us or how to make a complaint and how your personaldata may be processed.As well as general information, this document also contains profiles of each of the sub-fundsof the Companies where you can find details of fund performance, fees and a profile of atypical investor.The document incorporates the Simplified Prospectus requirements created as a result ofEuropean legislation to help people make an informed choice between funds offered bydifferent companies. It does not replace the full Prospectus of each ICVC, which contains thefull terms and conditions of the Companies.For more information, including where to obtain copies of the full Prospectus, the latestversion of the Simplified Prospectus (if applicable), the Instrument of Incorporation, and thelatest annual and semi-annual reports, please see pages 8 and 9.What is an OEIC? Your commitment Investment objectives andOEIC stands for Open Ended Investment To invest a minimum initial lump sum or policies of the FundsCompany. An OEIC uses the pooled money minimum monthly payment as outlined below: The investment objective and policy for eachof its shareholders (“Shareholders”) to invest of the Funds, together with any restrictions Lump sumin the stock market. Investors own shares in on the types of investment that can be made, £1000 per fundthe OEIC – not the underlying investments – can be found under each Fund’s profile on £100 top up per fundand each OEIC can create shares to allow pages 16 to 103.investors to buy as many shares as they Monthlywant. (OEICs can also cancel shares if more £100 per fund Currently, the use of financial derivativepeople sell than buy). This is why it’s called instruments in the Funds is for efficient There is no commitment on your part to portfolio management purposes only (withopen-ended. continue regular saving and no penalties the exception of JPM Balanced Total ReturnEach portfolio is managed by teams of should you stop. However, we do reserve Fund, JPM Cautious Total Return Fund,investment professionals so all the day-to- the right to close an account which does JPM Global Equity Absolute Alpha Fund,day investment decisions are taken care of. not reach or subsequently falls below our JPM Highbridge Statistical Market NeutralOEICs use the money from each investor to published minimum holding, either as a Fund, JPM Multi-Asset Income Fund,invest into a wide range of companies or result of stopping a Regular Savings Plan JPM Sterling Corporate Bond Fund andother investments. This allows each investor or a withdrawal. The investment decision is JPM Strategic Bond Fund in JPMorgan Fundto have a diversified investment even if they yours and you may choose to switch or sell ICVC, which may also use derivatives forare investing small amounts of money. This your holdings whenever you wish. However, investment purposes).is known as a collective investment. you should view your J.P. Morgan Fund investments as medium to long term The JPM Emerging Markets InfrastructureShares are bought at the price calculated at Fund, the JPM Global Mining Fund, the investments with, for example, anmidday. When OEICs pay income to investors JPM UK Managed Equity Fund, the JPM UK investment outlook of at least five yearsthis is known as a distribution. Strategic Growth Fund and the JPM US Equity or possibly longer for higher risk funds. Income Fund in JPMorgan Fund ICVC and the2 l Simplified Prospectus
  4. 4. JPM Institutional Balanced Fund and the foreign investment and currency and/or capital Bond investmentJPM Portfolio Fund in JPMorgan Fund III repatriation, currency fluctuations and other Bond funds may not behave like directICVC may use derivatives for meeting their developments in the laws and regulations of investments in the underlying bondsinvestment objectives on giving 60 days’ countries in which investment may be made. themselves. By investing in bond funds, thenotice to shareholders. certainty of receiving a regular fixed amount Stock lending of income for a defined period of time with Any of the Funds may participate in stockRisk factors the prospect of a future known return of lending, which is where the Fund can lend a capital is lost.The following is a brief assessment of the stock to another party, but charge a fee forrisks of investing in JPMorgan Funds. For full the facility for the benefit of the Fund. Bond prices can fluctuate significantlydetails, please request a Fund Prospectus depending not only on the global economic Therefore, stock lending can benefit a Fundfrom J.P. Morgan’s Investor Services team and interest rate conditions but also on the by providing a way for the fund manager toon 0800 20 40 20 or from our website at general bond market environment and the generate additional income for creditworthiness of the issuer. However, lending shares does carry certain risks that could hamper a Fund’s liquidity The credit quality of high yield bonds isGeneral risks associated with and potentially lead to losses. These risks are below investment grade and they usuallyinvestments in the Funds increased when a Fund’s loans are concentrated offer higher yields to compensate for theMarket risk with a single or limited number of borrowers. reduced creditworthiness and the increasedAll investments carry an element of risk. risk of default relative to investment gradeThe value of investments and the income Glossary of specific risks bonds.derived from them may fall as well as rise associated with investment Asset Backed Securities and Mortgageand investors may not get back the original in the Funds Backed Securities are securities from aamount invested in a Fund. specified pool of financial assets such as Absolute return fundsPrice volatility residential or commercial mortgages, car Absolute return funds aim to provide positiveThe investments of the Funds are subject to loans or credit cards. As such, they may returns in any market conditions, althoughmarket fluctuations and other risks inherent be subject to a greater level of individual this is not guaranteed and their performancein investing in securities. An investor’s capital bond, liquidity or interest rate risk when would be expected to differ significantly fromin a bank or building society is secure whereas compared to other fixed interest securities any underlying equity or bond markets. Theyin a stock market linked investment it is such as government issued bonds. These can use sophisticated investment techniquesexposed varying degrees of risk associated risks apply to: that differ from those used in traditionalwith the volatility of share and bond prices. equity or bond funds. Such funds should not • JPM Balanced Total Return FundPast performance be used as a substitute for traditional liquidity • JPM Cautious Total Return FundPast performance is not a guide to future funds or cash accounts. This risk applies to: • JPM Global Equity Absolute Alpha Fundresults. • JPM Global (ex-UK) Bond Fund • JPM Global Equity Absolute Alpha Fund • JPM Global High Yield Bond FundEconomic risk • JPM Highbridge Statistical Market Neutral • JPM Multi-Asset Income FundThe overall health of the global economy or Fund • JPM Sterling Corporate Bond Fundthat of a country or region can negatively Aggressive management • JPM Strategic Bond Fundaffect the profitability of companies A Fund that is described as aggressively • JPM UK Equity and Bond Income Fundlocated in that country or region in which managed means it takes on higher risk toinvestment may be made. Commodity Index Instruments achieve higher returns. Therefore it may Investments which grant an exposure toLiquidity risk have a significant exposure to certain areas commodities involve additional risks thanInvestments in certain Fund portfolios of the market such as smaller companies or those resulting from traditional investments.may be difficult to sell and could result in a specific sector such as one which focuses More specifically, political, military andrealising less than the value of the on growth. This may lead to higher volatility natural events may influence the productioninvestments reflected in the Net Asset Value of the Fund’s performance and bigger and trading of commodities and, as aof the portfolios, which would negatively differences between the performance of the consequence, influence financial instrumentsaffect Fund performance. Fund and its benchmark. This risk applies to: which grant exposure to commodities;Political risk • JPM Europe Dynamic (ex-UK) Fund terrorism and other criminal activities mayThe value of a Fund may be affected by • JPM Japan Fund have an influence on the availability ofuncertainties such as international political • JPM New Europe Fund commodities and therefore also negativelydevelopments, changes in government • JPM UK Dynamic Fund impact financial instruments which grantpolicies, changes in taxation, restrictions on • JPM UK Focus Fund exposure to commodities. Simplified Prospectus l 3
  5. 5. Concentrated portfolios • JPM Strategic Bond Fund • JPM Global Equity Income FundFunds which invest in a concentrated • JPM US Equity Income Fund • JPM Global Financials Fundportfolio, one that holds a relatively small (Hedged shares only) • JPM Global Fundnumber of stocks, may be subject to greater • JPM Global High Yield Bond Fund Derivatives and forward transactionsvolatility than those funds with a more • JPM Global Mining Fund A derivative is a security whose price isdiversified (and therefore larger number • JPM Global Property Securities Fund dependent upon or derived from one orof stocks) portfolio. This risk applies to: • JPM Institutional Asia Fund more underlying assets. The derivative itself • JPM Institutional Continental Europe Fund• JPM Emerging Markets Infrastructure Fund is merely a contract between two or more • JPM New Europe Fund• JPM Global Equity Absolute Alpha Fund market counterparties. Its value is • JPM Multi-Asset Income Fund• JPM Strategic Bond Fund determined by fluctuations in the underlying • JPM Multi-Manager Growth Fund asset. The most common underlying assetsCurrency exchange rates • JPM Natural Resources Fund include stocks, bonds, commodities,All of the Funds are valued in sterling. • JPM Strategic Bond Fund currencies, interest rates and market indices.Where the underlying assets of a Fund are Equity investmentdenominated in currencies other than Investment in derivatives and/or forward Equity investment is subject to specific riskssterling and are not hedged back to sterling, transactions may lead to losses in excess of relating to the performance of the individualinvestors will be exposed to the currency risk the amount invested, potentially increasing companies held and the market’s perceptionof fluctuations between sterling and the the volatility and risk of the Fund. of their performance. In general terms,currency of the underlying assets. This risk In addition, if a market counterparty defaults, equities tend to be more volatile than bonds.applies to: a Fund may sustain losses as a result. This risk applies to:• JPM Asia Fund This risk applies to: • JPM Asia Fund• JPM Emerging Markets Fund • JPM Balanced Total Return Fund• JPM Emerging Markets Infrastructure Fund • JPM Balanced Total Return Fund • JPM Cautious Total Return Fund• JPM Europe Fund • JPM Cautious Total Return Fund • JPM Emerging Markets Fund• JPM Europe Dynamic (ex-UK) Fund • JPM Global Equity Absolute Alpha Fund • JPM Emerging Markets Infrastructure Fund• JPM Global Consumer Trends Fund • JPM Highbridge Statistical Market Neutral • JPM Europe Fund• JPM Global Equity Absolute Alpha Fund Fund • JPM Europe Dynamic (ex-UK) Fund• JPM Global Equity Income Fund • JPM Multi-Asset Income Fund • JPM Global Consumer Trends Fund• JPM Global Financials Fund • JPM Sterling Corporate Bond Fund • JPM Global Equity Absolute Alpha Fund• JPM Global Fund • JPM Strategic Bond Fund • JPM Global Equity Income Fund• JPM Global Mining Fund Emerging markets • JPM Global Financials Fund• JPM Institutional Asia Fund Investing in emerging markets may involve • JPM Global Fund• JPM Institutional Continental Europe Fund additional risks such as political and • JPM Global Mining Fund• JPM Japan Fund economic instability and underdeveloped • JPM Global Property Securities Fund• JPM Natural Resources Fund markets and systems and are therefore • JPM Institutional Asia Fund• JPM New Europe Fund usually more volatile. Lack of liquidity and • JPM Institutional Continental Europe Fund• JPM US Equity Income Fund efficiency in certain of the stock markets • JPM Japan Fund• JPM US Fund or foreign exchange markets in certain • JPM Multi-Asset Income Fund• JPM US Select Fund emerging markets may mean that from time • JPM Multi-Manager Growth FundCurrency hedging to time the operator of the Funds may • JPM Natural Resources FundWhere currency hedging is undertaken, experience more difficulty in purchasing or • JPM New Europe Fundwhilst it may protect an investor against a selling holdings of securities and in currency • JPM UK Active Index Plus Funddecrease in the value of the currency being repatriation than it would in a more • JPM UK Dynamic Fundhedged, it may also prevent the investor developed market. This risk applies to: • JPM UK Equity and Bond Income Fundfrom participating in an increase in the • JPM UK Equity Fund • JPM Asia Fundvalue of that currency. This risk applies to: • JPM UK Focus Fund • JPM Balanced Total Return Fund • JPM Cautious Total Return Fund • JPM UK Higher Income Fund• JPM Global Equity Absolute Alpha Fund • JPM Emerging Markets Fund • JPM UK Managed Equity Fund• JPM Global Equity Income Fund • JPM Emerging Markets Infrastructure Fund • JPM UK Strategic Equity Income Fund• JPM Global (ex-UK) Bond Fund • JPM Europe Fund • JPM UK Strategic Growth Fund• JPM Global High Yield Bond Fund • JPM Europe Dynamic (ex-UK) Fund • JPM US Equity Income Fund• JPM Global Property Securities Fund • JPM Global Consumer Trends Fund • JPM US Fund• JPM Multi-Asset Income Fund • JPM Global Equity Absolute Alpha Fund • JPM US Select Fund• JPM Sterling Corporate Bond Fund4 l Simplified Prospectus
  6. 6. Hedged Shares the Net Asset Value of the share class falls. Smaller companiesHedging is any technique designed to reduce For full details of how performance fees are Smaller companies’ securities may be lessfinancial risk. For example, taking two calculated, please refer to the individual ICVC liquid than the securities of larger companiespositions that will offset each other if prices Prospectus. This risk applies to: as a result of inadequate trading volume orchange. However, there is no guarantee that restrictions on trading. Smaller companies • JPM Global Equity Absolute Alpha Fundthe hedging will be totally successful and may possess greater potential for growth, • JPM Highbridge Statistical Market Neutralhedged shares may still have exposure to but can also involve greater risks, such as Fundcurrencies other than the currency of the limited product lines and markets, and • JPM UK Active Index Plus Fundhedged share class. It may also prevent the financial or managerial resources. Tradinginvestor from participating in an increase in Real estate/Real Estate Investment Trusts in such securities may be subject to morethe value of that currency. This risk applies to: (‘REITs’) abrupt price movements and greater Investment in REITs and property related fluctuations in available liquidity than• JPM Europe Dynamic (ex-UK) Fund securities are subject to market and liquidity trading in the securities of larger companies.• JPM Global Equity Income Fund risks associated with the direct ownership of This risk applies to:• JPM US Equity Income Fund real estate and property. This risk applies to: • JPM Asia FundInvestment in Russia • JPM Balanced Total Return Fund • JPM Global Property Securities FundThe JPM New Europe Fund in JPMorgan • JPM Cautious Total Return Fund • JPM Multi-Asset Income FundFund ICVC invests significantly in Russia. The • JPM Emerging Markets Fundrelative infancy of the Russian governmental Short Selling • JPM Emerging Markets Infrastructure Fundand regulatory framework may expose The possible loss from taking a short • JPM Europe Fundinvestors to various political and economic position on a security differs from the loss • JPM Europe Dynamic (ex-UK) Fundrisks. The Russian Securities Market from that could be incurred from a cash • JPM Global Consumer Trends Fundtime to time may also suffer from a lack of investment in the security; the former may • JPM Global Equity Absolute Alpha Fundmarket efficiency and liquidity which may be unlimited as there is no restriction on the • JPM Global Equity Income Fundcause higher price volatility and market price to which a security may rise, whereas • JPM Global Financials Funddisruptions. This risk applies to: the latter cannot exceed the total amount of • JPM Global Fund the cash investment. The short selling of • JPM Global Mining Fund• JPM New Europe Fund investments may be subject to changes in • JPM Global Property Securities FundInvestment trusts regulations, which could adversely impact • JPM Institutional Asia FundShares of investment trusts can trade at a returns to investors. This risk applies to: • JPM Institutional Continental Europe Fundpremium or at a discount to their net assets • JPM Japan Fund • JPM Global Equity Absolute Alpha Fundand this might affect the performance of any • JPM Multi-Asset Income FundFund holding these securities, in particular Single country/market funds • JPM Multi-Manager Growth FundJPM Multi-Manager Growth Fund in Funds that invest predominantly in a single • JPM Natural Resources FundJPMorgan Fund ICVC. Investment trusts market, asset class or sector may be subject • JPM New Europe Fundmay use gearing (borrowing) which will to greater volatility than those funds with a • JPM UK Dynamic Fundexaggerate market movements, both down more diversified portfolio. This risk applies to: • JPM UK Equity and Bond Income Fundand up. Some investment trusts may have • JPM UK Equity Fund • JPM Global Financials Fundwarrants (the right to buy a specific amount • JPM UK Focus Fund • JPM Global Mining Fundof securities at a specific price at a set date) • JPM UK Higher Income Fund • JPM Global Property Securities Fundin issue, which if exercised may negatively • JPM UK Strategic Equity Income Fund • JPM Japan Fundaffect share values. Shares of investment • JPM UK Strategic Growth Fund • JPM Natural Resources Fundtrusts may become illiquid and be difficult • JPM UK Active Index Plus Fundto sell. This risk applies to: Total return funds • JPM UK Dynamic Fund Total return funds seek to provide a positive• JPM Multi-Manager Growth Fund • JPM UK Equity and Bond Income Fund return but this is not guaranteed and they • JPM UK Equity FundPerformance fees should not be used as a substitute for • JPM UK Focus FundPerformance fees, where charged to a Fund, traditional liquidity funds or cash accounts. • JPM UK Higher Income Fundmay create an incentive for the investment As the priority of these funds is to provide • JPM UK Managed Equity Fundmanager to make investments that are positive returns, they will not perform in • JPM UK Strategic Equity Income Fundriskier or more speculative than would be line with stock markets. In a sharply falling • JPM UK Strategic Growth Fundthe case if no performance fee was payable. market more modest negative returns are • JPM US Equity Income FundIt may be possible for the operator of the likely to be experienced whereas, • JPM US FundFund to be paid a performance fee, even if conversely, in a strong rising market • JPM US Select Fund Simplified Prospectus l 5
  7. 7. positive returns will be less pronounced. This If your cheque fails to clear and we have Investment top-ups:risk applies to: already purchased your shares, we will sell You can make additional investments of• JPM Balanced Total Return Fund those shares and if the value has fallen then £100 or more. You can either complete a• JPM Cautious Total Return Fund you will be liable for the shortfall. top-up form or write to us, enclosing a cheque with your account number andWarrants All deals will be carried out at “forward” signed instructions, indicating your choiceWarrants can expose a Fund to a higher prices i.e. the prices calculated at the next of Fund(s). Alternatively you can top-updegree of risk due to the effect of gearing, so valuation point. your investment(s) by registering online atthat a relatively small movement in the price All financial service companies are required the underlying security results in a to identify their clients and carry out security onlinedisproportionately large movement in the checks. Therefore we may need to contactprice of a warrant. The prices of warrants We will send you a statement twice a year, you to obtain further information and/orcan therefore be volatile. This risk applies to: giving details of your investments. documentation about you, which may• JPM Global Equity Absolute Alpha Fund result in a delay in the processing of your How have the Funds performed• JPM Global Mining Fund instructions or in making payments to you. in the past? Regular monthly saving:Questions and answers The annual performance (where available) If you choose to invest monthly, subscriptions are taken from your bank of each Fund is shown under each Fund’sHow can I invest? profile on pages 16 to 103. More up-to-date account by direct debit, with a minimum ofYou can invest either a lump sum or monthly £100 per fund. You must complete an performance data can be found in thesavings. The table at the bottom of this page application form and a direct debit form. monthly factsheets on our website atshows the minimum amounts you have to For investment directly into an OEIC, your by each method and share class. direct debit will be taken on the 16th or next business day and will invest immediately. What sort of investor shouldYou can buy shares in a new or existingaccount online at invest in the Funds? New instructions and changes to debits must be received by the end of The profile of a typical investor in each Fundonline the preceding month if they are to be is described under each Fund’s profile on implemented before the next collection date. pages 16 to 103.Lump sum investing:Any cheques should be made payable to If we try to collect your direct debit and it Client Classification‘J.P. Morgan Asset Management’. If you invest fails, we will let you know in writing. For investment transactions, J.P. Morganin more than one Fund, one cheque can be will categorise all investors as Retail Clients If a merger is approved between any of thesent to cover the total investment amount. unless categorisation specified by contract Funds, a Regular Savings Plan in respect of or other notification, which would takePlease note we will only accept personal the merging Fund will automatically be precedence. This categorisation entitlescheques or a building society cheque transferred to the new Fund unless you investors to the full level of protectionconfirming the money is from your personal advise us to the contrary. provided by regulation.account. Share Class Lump sum Holding Top up Regular saving Redemption A £1,000 £1,000 £100 £100 per month £100 A GBP Hedged* £1,000 £1,000 £100 £100 per month £100 B £1 million £1 million £100,000 N/A £25,000 C £5 million £5 million £100,000 N/A £25,000 E (JPM UK Active Index Plus Fund only) £1,000 £1,000 £100 £100 per month £100 I £20 million £20 million £100,000 N/A £25,000 ISA** £1,000 £10,680 maximum £100 £100 per month £100* JPM Europe Dynamic (ex-UK) Fund and JPM US Equity Income Fund only.** Share class A (and E for JPM UK Active Index Plus Fund) only available. The ISA limit for Tax Year 2012/13 is £11,280.6 l Simplified Prospectus
  8. 8. The information contained in this document What charges and expenses Total expense ratioshas been prepared to allow investors to might I pay and what other costs The total expense ratio (TER) is the ratio ofdecide which of our funds may be the most the total operating costs of a Fund to its and expenses do the Funds pay? average net assets, calculated according tosuitable depending on their individualcircumstances. J.P. Morgan Asset When you invest, you will pay an initial a formula prescribed by the Financial ServicesManagement is unable to give advice to charge which will be taken from your initial Authority (FSA). It is calculated by referenceindividual investors on the suitability of investment. There is also an annual to the average net asset value of each ofinvesting in our funds. If you have any management charge. the Funds over the year. The TER shows thequestions about the suitability of our funds annual operating expenses of the Funds, The rates of initial charge and annualand would like the additional protections such as management costs including management charge (AMC) for each Fundprovided under the FSA’s rules on suitability, performance fees (if applicable), registration can be found under each Fund’s profile onplease contact your financial advisor. costs, administration costs, charges for the pages 16 to 103 along with details of how Depositary’s services, payments to these charges will affect your investment.What classes of shares are shareholder services providers, payments toavailable? Effect of preliminary charge lawyers, custody, audit and regulatory fees. Where an initial charge is imposed, an The TER does not include transaction costs,The classes of shares available for each investor who sells his shares after a short which are those costs incurred in connectionFund in addition to Share Class A are shown period may not receive the amount originally with transactions on the portfolios of thein Appendix 2 on pages 105 to 107. invested, even in the absence of a fall in the Funds, including brokerage fees, taxes, value of the relevant investments. Therefore, interest on borrowings, the initial chargeWhere do I send my application investments in the Funds should be viewed paid by you or any other costs paid directlyform? as a medium to long-term investment. by you.Please send your application to: Charges to capital TERs can be found under each Fund’s profile Where all or part of the annual management on pages 16 to 103 or in the tables inJ.P. Morgan Asset Management charge is charged against capital instead of Appendix 2 on pages 105 to 107.FREEPOST NAT17428 against income, this will increase the amountLondon EC2B 3BR Portfolio turnover rates of income available for distribution toIf an application form is sent addressed The portfolio turnover rate (PTR) expresses investors in the Fund concerned, but mayincorrectly, it may result in a delay to your as a percentage the portion of the Fund that constrain capital growth. It may also haveinvestment instruction. was traded during the previous year through tax implications for certain investors. the sale and purchase of assets. PTRs can Fixed expenses/operating expenses be found under each Fund’s profile on pagesCan I invest through a financial Ordinary operating expenses incurred by the 16 to 103.adviser? Companies may be paid by the Funds. For The PTR calculation is calculated on a yearlyYes, a financial adviser may submit JPMorgan Fund ICVC and JPMorgan Fund II basis using the following formula:applications for J.P. Morgan Funds on your ICVC, to protect the Shareholders in Sharebehalf and any commission should be Classes A, B and C from fluctuations in these expenses, the ACD has agreed to fix the total Purchase of Subscriptionagreed directly by you with them. If you amount of these expenses at the levels securities of shareswould like more information, please contact – + +your financial adviser directly. shown under each Fund’s profile on pages Sales of Redemption 16 to 103 or in the tables in Appendix 2 on Securities of shares x100How much will advice cost? pages 105 to 107. For JPMorgan Fund III ICVC, these operating expenses (which include theIf you have not received advice, you will pay fees of the Depositary, the cost of producingno additional charges. If you have arranged Average fund value over annual and half-yearly reports and 12 monthsyour investment through a financial adviser, statements, the cost of producing thisor if you appoint/have appointed a financial document and regulatory, custody,adviser, they may be entitled to receive registration and audit charges) are charged Dilution adjustmentcommission from us. The amount of any directly to the Funds. For Shareholders in The value of a Fund may also be reduced ascommission payable will depend on the size Share Class I across all three Companies, the a result of costs incurred in dealing in itsof your investment (and for monthly savings, operating expenses are borne by the ACD. underlying investments when investors buyhow long you save). Commission may be paid or sell shares in a Fund. Often these costsout of the charges. Your adviser will give you will not be material. However, on any daydetails about the precise cost. Simplified Prospectus l 7
  9. 9. when net flows are material (in excess of Can I reinvest my income? Any income distributions received after yourthe lower of either £750,000 or 1.00% of account has been closed will be paid to you Yes you can reinvest your income bya Fund’s Net Asset Value) the price of the within four months. purchasing accumulation shares. This meansFund’s shares will be adjusted. The any distributions paid by the Fund areadjustments will be paid into the Fund to Where do I send my accumulated within the Fund with the intentioncover the costs referred to. The rates of instructions? of increasing the value of each share.dilution adjustment as at 2 November 2011are shown under each Fund’s profile on All instructions should include your full name How do I sell my shares? and account number and be sent to:pages 16 to 103. You can sell shares online after registering J.P. Morgan Asset ManagementHow will these charges affect at Client Administration Centremy investment? online or by instructing us or speaking to Finsbury Dials your financial adviser. 20 Finsbury StreetEffect of charges figures are shown under Sales instructions are accepted online, in Londoneach Fund’s profile on pages 16 to 103. The writing, by fax to 0845 246 1852 or by EC2Y 9AQfigures are not guaranteed and serve onlyto demonstrate the effect of charges and telephone on 0800 20 40 20. Telephone instructions over £20,000 or if your account Where will any cash be heldexpenses on an investment. is registered in the name of Joint outside of the settlementCan I change my mind? Shareholders require your signed written period? instruction in order to release the proceedsIf you are a new investor buying shares and to you. Subject to a minimum sales amount All monies and any other cash which we holdare a retail customer, we will send you a of £100, instructions received before midday on your behalf as client money under thenotice of your right to cancel when we will be executed on the same business day. FSA Rules will be held in a segregated non-receive your instructions. This means that Instructions received after midday will be interest bearing client money account. Thisyou can cancel your instruction at any time dealt the following business day. account is with Barclays Bank LTD. We mayduring the 14 days after you receive the appoint other banks from time to time ifcancellation notice – just by sending the Please note that we cannot accept required.notice to us. If the value of your investment instructions from anyone else on your behalfhas fallen at the time we receive your and all letters and fax instructions must How can I follow the progress ofcompleted cancellation notice, you will include your account number and be signed. my investment?receive that value, not a full refund. If you instruct us to sell your entire holding You will be sent details of any lump sum and you currently invest monthly, we willCan I switch into other Funds? purchases, withdrawals and any switches automatically cancel the direct debit you make into another trust(s) or fund(s).Yes, you can. Just let us know in the same instruction for you, unless you tell usway as for buying and selling shares above. otherwise. You will also receive half yearly statementsSubject to the minimum investment limits, with details of your account as at 5 April and As a result of a withdrawal, we may closeswitching between Funds of the Companies 5 October, showing all transactions for the your account if the balance falls below ais free of charge. You may also switch to previous six months. A copy statement of minimum of £1,000, or you cease to payother funds managed by J.P. Morgan Asset your J.P. Morgan ISA (if applicable) will be monthly instalments before your accountManagement. Charges may apply to these sent to your financial adviser if you have has reached this investment minimum andswitches – please call us for details. one. Please keep your statements for your we will return the money to you. records as we may charge £10 for eachCan I take an income from my In certain circumstances investors’ right to duplicate statement. redeem shares may be suspended.investment? You can track the value of your portfolio by registering your account online atYes you can take income from your When will I get the proceeds by purchasing income shares. from the sale of my investment? onlineIncome will be paid to you by direct creditinto your bank account. Distribution dates We will send you the sales’ proceeds by BACS J.P. Morgan OEIC fund prices are quoted dailycan be found under each Fund’s profile on within 5 business days of the sale. Should in the Financial Times.pages 16 to 103. You will normally receive you not provide us with your bank accountthe income payment within 5 business days details when requested, any payment to youof the distribution date. may be delayed and we will not be liable to you for any loss you may incur as a result of such delay.8 l Simplified Prospectus
  10. 10. How do I obtain a copy of an Taxation UK resident individual investors who investAnnual Report & Accounts and via a UK entity and corporate investors will What tax does a Fund pay and not be subject to the EUSD on paymentsfull Prospectus? of distributions and redemption proceedsCertain investors will automatically receive what tax might I have to pay? to them.the Annual and Interim Report & Accounts Taxation of the Funds This does not constitute tax advice. Thefor the J.P. Morgan fund(s) in which they The Funds are sub-funds of an open-ended tax system and tax rates may change.invest. For those investors who do not investment company resident in the United The regime of taxation of the income orautomatically receive these reports, Kingdom for tax purposes to which capital gains received by individualcopies may be obtained by downloading Authorised Investment Funds (Tax) investors depends on the tax law applicablethem from our website at Regulations 2006 apply. Each Fund will be to the personal situation of each or treated as a separate entity for UK tax investor and/or to the place where theby calling our Investor Services team on purposes. The Funds are exempt from UK capital is invested. We cannot give you0800 20 40 20. tax on capital gains realised on the disposal advice regarding tax. If you need tax adviceCopies of the full Prospectus for each of investments (including interest paying you should consult a qualified taxCompany are also available from the above. investments) held within them. The Funds professional. are chargeable to UK corporation tax at the applicable rate, currently 20% on certain What happens if I have a income net of allowable expenses. complaint? Taxation of the Investor J.P. Morgan Asset Management is committed Your tax liability will depend on your own to providing a first-class service to clients. individual circumstances, including where you If anything does go wrong, we try to put it live or where you made your investment. If right quickly and efficiently. If we cannot you are unsure about your own situation, you resolve a problem immediately, we will get should seek appropriate professional advice. in touch with you to tell you what we are Stamp duty reserve tax doing about it. A Fund may have to pay Stamp Duty Reserve If you wish to complain about any aspect of Tax (SDRT) at the rate of 0.5% on the value our service, please write to: of shares sold back to the ACD (as reduced by the proportion of assets which are not Client Administration Centre subject to SDRT and by a fraction equal to Finsbury Dials the value of share issues divided by share 20 Finsbury Street surrenders), If this happens, it will reduce London the value of the Fund. The ACD’s current EC2Y 9AQ policy is not to mitigate the impact of this If we do not deal with your complaint to reduction by applying a separate charge to your satisfaction, you may complain to the create an SDRT provision; however, the ACD Financial Ombudsman Service. This does reserves the right to do so in the future. not prejudice your right to take legal European Union Tax Considerations proceedings. Under the European Union Savings Directive The Financial Ombudsman Service ("the EUSD"), dividend and / or redemption South Quay Plaza proceeds from shares of a Fund paid to 183 Marsh Wall individuals or certain other non-corporate London investors may be subject to withholding tax E14 9SR or information reporting requirements. Whether the EUSD will be applicable in any Telephone: 0845 080 1800 particular case and the implications arising there from depend on various factors, such What happens if J.P. Morgan as the asset class of the relevant sub-fund, becomes insolvent? the location of the paying agent used and J.P. Morgan is covered by the Financial the tax residency of the shareholders Services Compensation Scheme, which concerned. means if we become insolvent, you may be entitled to compensation. Simplified Prospectus l 9
  11. 11. The level of compensation will depend on Additional Investment adviser to eachthe type of business and the circumstances Companyof your claim. Investments are covered for information100% of the first £50,000. JPMorgan Asset Management (UK) Limited. Structure Registered in England No. 01161446.Further details of the Financial Services Registered address: 125, London Wall,Compensation Scheme are available from: The Companies are structured as umbrella London EC2Y 5AJ. Authorised and regulated Companies, authorised and regulated by theThe Financial Services Compensation by the Financial Services Authority. Financial Services Authority (FSA) under theScheme Financial Services and Markets Act 2000, Depositary of each Company7th floor, Lloyds Chambers and are made up of the sub-funds listed in1 Portsoken Street National Westminster Bank Plc, whose this document (each a “Fund” or togetherLondon head office is at 135 Bishopsgate, London the “Funds”). The base currency of theE1 8BN EC2M 3UR. Authorised and regulated by the Companies is Pounds Sterling. TheTelephone: 020 7892 7300 or 0800 678 1100 Companies were authorised by the FSA on Financial Services Authority. the following dates and were incorporatedLiabilities of the Companies in England and Wales with the following Registrar of each Company registered numbers: JPMorgan Asset Management MarketingEach Fund, so far as possible, will bear itsown liabilities, expenses, costs and charges. Limited. Registered in England No. 288553. Company Date of FSA RegisteredHowever, if a Fund’s assets are not sufficient, Registered address: 125, London Wall, authorisation numberthe operator of the Funds may re-allocate London EC2Y 5AJ. Authorised and regulatedassets, liabilities, expenses, costs and JPMorgan Fund 6th October IC5 by the Financial Services Authority.charges between the other Funds of the ICVC 1997relevant Company in a manner which is fair JPMorgan Fund 29th August IC127 Auditor of each Companyto the investors in that Company generally. II ICVC 2001 PricewaterhouseCoopers LLPInvestors are not, however, liable for the Erskine Housedebts of a Company. An investor is not liable JPMorgan Fund 16th May IC174 68-73 Queen Streetto make any further payment to a Company III ICVC 2002 Edinburgh EH2 4NHafter he has paid the purchase price of theshares. JPMorgan Fund ICVC and JPMorgan Fund II Promoter of each Company ICVC are both UCITS schemes and are of unlimited duration. JPMorgan Asset Management Marketing Limited, Finsbury Dials, 20 Finsbury Street, JPMorgan Fund III ICVC is a non-UCITS retail London EC2Y 9AQ. Authorised and regulated scheme (“NURS”) and is of unlimited by the Financial Services Authority and duration. Certain investment and borrowing entered on the Financial Services Authority powers of a NURS are more relaxed than register under number 122754. those of a UCITS scheme. Consequently, a NURS does not qualify for the cross border Administrator of each Company passporting rights of the UCITS Directive. Please refer to the full Prospectus for more JPMorgan Europe Limited information. 3 Lochside View, Floor 1 Edinburgh EH12 9DH. Authorised Corporate Director Authorised and regulated by the Financial (“ACD”) of each Company Services Authority. JPMorgan Funds Limited. Registered in Scotland No. 19438. Registered address: Registered address of each 3, Lochside View, Edinburgh Park, Edinburgh Company EH12 9DH. Authorised and regulated by the Finsbury Dials, Financial Services Authority. The main 20 Finsbury Street, business of the ACD is investment London EC2Y 9AQ management and related activities.10 l Simplified Prospectus
  12. 12. The Regulatory Authority for Best Execution Data Privacy Policyeach Company The ACD’s best execution policy sets out the basis upon which the Investment Advisor will and Anti MoneyFinancial Services Authority25 The North Colonnade effect transactions and place orders in LaunderingCanary Wharf relation to the Company whilst complyingLondon E14 5HS with its obligations under the FSA Handbook Data Privacy Policy to obtain the best possible result for the 1. The personal data, including sensitiveConflicts of Interest Company. personal data supplied by individuals (a)The ACD, the Investment Adviser and other Details of the best execution policy are when applying for the services of andcompanies within the JPMorgan Chase Group available online at (b) throughout their relationship withmay, from time to time, act as investment J.P. Morgan Asset Management, may bemanagers or advisers to other companies processed for the purposes of:or funds which follow similar investment Inducements a. Administering relationships and relatedobjectives to those of the Companies. It is JPMorgan Funds Limited has Limited has services.therefore possible that the ACD and/or the accessed the fees and commissions that it b. Operational purposes, credit assessmentInvestment Adviser may in the course of pays or is paid. All fees and commissions and statistical analysis (includingtheir business have potential conflicts of are considered to be within the requirements behaviour analysis).interest with the Companies, a particular of the rules on inducements set out inFund or between the Companies and other section 2.3 of the FSA Conduct of Business c. Conducting market or customerfunds managed by the ACD. Each of the ACD Sourcebook (COBS) and no additional satisfaction research.and the Investment Adviser will, however, disclosures is required. d. Providing individuals with informationhave regard in such event to its obligations concerning products and services whichunder the ACD Agreement and the Applicable Law we believe will be of interest.Investment Advisory Agreement respectivelyand, in particular, to its obligation to act in All matters relating to any proposed or e. Compliance with any requirement of law,the best interests of the Companies so far as actual investment in the Funds of the regulation, associations, voluntary codespracticable, having regard to its obligations Companies by you are subject to English law, we decide to adopt, or good practice,to other clients when undertaking any and the jurisdiction of the English courts anywhere in the world.investment where potential conflicts of except that, if the Funds of the Companies were promoted to you outside the United f. Confirming and verifying an individual’sinterest may arise. Where a conflict of Kingdom, we are required to comply with the identity (this may involve the use of a creditinterest cannot be avoided, the ACD and the laws of the country where you were located reference agency or other third partiesInvestment Manager will ensure that the in respect of that promotion. acting as our agents) and to conduct dueCompanies and other collective investment diligence. We may also screen againstschemes it manages are fairly treated. Language publicly available government and/or law enforcement agency sanctions lists.Strategy for the exercise of All communications with you will be madevoting rights in English, unless we agree otherwise. g. The detection, investigation and prevention of fraud and other crimesThe ACD has a strategy for determining when Limit orders or malpractice.and how voting rights attached to ownershipof Scheme Property are to be exercised for We cannot accept any limits or other h. For the purpose of, or in connection with,the benefit of each Fund. A summary of this constraint on orders placed. any legal proceedings (includingstrategy is available online at prospective legal proceedings), obtaining legal advice or for establishing, exercising or defending legal rights. 2. The personal data may be disclosed: a. To any organisation in our group of companies, their agents, auditors, service providers, regulators, governmental or law enforcement agencies or any person we reasonably think necessary for the processing purposes outlined above. Simplified Prospectus l 11
  13. 13. b. To actual or potential purchasers of parts 7. This Privacy Policy, as updated or of our business, and their respective amended from time to time, can be read advisers and insurers, and in relation to by going to the privacy link at the transfer of our contractual rights and/or obligations. Anti-Money Launderingc. If we or any person to whom we disclose personal data otherwise have a right or 1. All transactions relating to the products duty to disclose the personal data, or are we provide are covered by the FSA Money allowed or compelled by law to do so. Laundering Rules and Money Laundering For example, financial institutions and Regulations 2007. We as a company payments and messaging service providers conducting investment business are may from time to time be required, under responsible for compliance with these Rules, subpoena or otherwise, to provide certain including, but not limited to, verifying the transaction information to authorities or identity and address of our investors. other official bodies, whether located in 2. The verification of your identity and/or the European Union or overseas, to assist address may include the use of a credit in the prevention of terrorism, money reference agency who will record that an laundering and other crimes. enquiry has been made (this should not3. We operate globally and therefore affect your credit rating) or requestingpersonal data may be processed and further information from you.disclosed as described above in any country 3. We reserve the right to delay processingin which we conduct business or have a your instruction(s) and/or withhold anyservice provider. This may include some payments due to you in respect of yourcountries that do not provide the same investment, until satisfactory evidence isstatutory protection for Personal Data as received. Any cash will be held in a non-the EU Data Protection Directive and interest bearing client money account. We willimplementing legislation or the laws of other not be held responsible for any losses causedEuropean, Middle East and African (EMEA) by any delay in implementing an acceptedCountries, where they may apply. application whilst establishing your identity.4. We and other companies in the J.P. MorganGroup may contact individuals by mail,e-mail, SMS, telephone and other electronicmeans to provide information on productsand services that we believe will be ofinterest, unless an individual objects toreceiving such information.5. To the extent permitted by applicablelaw, we may record and monitor electroniccommunications (including e-mail andtelephone) to ensure compliance with ourlegal and regulatory obligations and internalpolicies and for the purposes outlined above.6. Individuals about whom we processpersonal data may request a copy of thepersonal data held in relation to them by us.We may, where allowed by law, charge a feefor this. If any personal data is found to bewrong, the individual concerned has theright to ask us to amend, update or deleteit, as appropriate. In some circumstancesindividuals also have a right to object to theprocessing of their personal data.12 l Simplified Prospectus
  14. 14. Appendix 1: Fund Profiles PageHow to read fund profiles 14JPMorgan Fund ICVCJPM Asia Fund 16JPM Balanced Total Return Fund 18JPM Cautious Total Return Fund 20JPM Emerging Markets Fund 22JPM Emerging Markets Infrastructure Fund 24JPM Europe Dynamic (ex-UK) Fund 26JPM Europe Fund 28JPM Global Consumer Trends Fund 30JPM Global Equity Absolute Alpha Fund 32JPM Global Equity Income Fund 34JPM Global (ex-UK) Bond Fund 36JPM Global Financials Fund 38JPM Global Fund 40JPM Global High Yield Bond Fund 42JPM Global Mining Fund 44JPM Global Property Securities Fund 46JPM Highbridge Statistical Market Neutral Fund 48JPM Institutional Asia Fund 50JPM Institutional Continental Europe Fund 52JPM Japan Fund 54JPM Multi-Asset Income Fund 56JPM Multi-Manager Growth Fund 58JPM Natural Resources Fund 60JPM New Europe Fund 62JPM Sterling Corporate Bond Fund 64JPM Strategic Bond Fund 66JPM UK Active Index Plus Fund 68JPM UK Dynamic Fund 70JPM UK Equity & Bond Income Fund 72JPM UK Equity Fund 74JPM UK Focus Fund 76JPM UK Higher Income Fund 78JPM UK Managed Equity Fund 80JPM UK Strategic Equity Income Fund 82JPM UK Strategic Growth Fund 84JPM US Equity Income Fund 86JPM US Fund 88JPM US Select Fund 90JPMorgan Fund II ICVCJPM Europe Smaller Companies Fund 93JPM UK Smaller Companies Fund 95JPM US Smaller Companies Fund 97JPMorgan Fund III ICVCJPM Institutional Balanced Fund 100JPM Portfolio Fund 102 Fund Profiles l 13