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Prospectus March 2014

JPMorgan Funds
Socit dInvestissement Capital Variable Luxembourg

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In addition, emerging markets may be subject to increased political, regulatory and economic instability, less developed custody and
settlement practices, poor transparency and greater financial risks. Emerging market currencies may be subject to volatile price
movements. Emerging market and below investment grade debt securities may also be subject to higher volatility and lower liquidity
than non emerging market and investment grade debt securities respectively.
The credit worthiness of unrated debt securities is not measured by reference to an independent credit rating agency.
The value of securities in which the Sub-Fund invests may be influenced by movements in commodity prices which can be very volatile.
Convertible bonds are subject to credit, interest rate and market risks stated above associated with both debt and equity securities and
to risks specific to convertible securities. Convertible bonds may also be subject to lower liquidity than the underlying equity securities.
The Sub-Fund may invest in securities of smaller companies which may be less liquid, more volatile and tend to carry greater financial
risk than securities of larger companies.
The value of financial derivative instruments can be volatile. This is because a small movement in the value of the underlying asset can
cause a large movement in the value of the financial derivative instrument and therefore, investment in such instruments may result in
losses in excess of the amount invested by the Sub-Fund.
The possible loss from taking a short position on a security may be unlimited as there is no restriction on the price to which a security
may rise. The short selling of investments may be subject to changes in regulations, which could adversely impact returns to investors.
Movements in currency exchange rates can adversely affect the return of your investment. The currency hedging that may be used to
minimise the effect of currency fluctuations may not always be successful.
Further information about risks can be found in Appendix IV Risk Factors.
Fees and Expenses
Share Class

Initial Charge

Contingent Deferred Sales Charge

Annual Management and Advisory Fee

Operating and Administrative Expenses

Redemption Charge

JPM Diversified Risk A

JPM Diversified Risk B
JPM Diversified Risk C
JPM Diversified Risk D
JPM Diversified Risk I
JPM Diversified Risk T
JPM Diversified Risk X

5.00%
Nil
Nil
5.00%
Nil
Nil
Nil

Nil
Nil
Nil
Nil
Nil
3.00%
Nil

1.25%
0.75%
0.60%
1.90%
0.60%
1.90%
Nil

0.40%
0.25%
0.20%
0.40%
0.16% Max
0.40%
0.15% Max

0.50%
Nil
Nil
0.50%
Nil
Nil
Nil

Additional information
The global exposure of the Sub-Fund is measured by the absolute VaR methodology.
The Sub-Funds expected level of leverage is 100% of the Net Asset Value of the Sub-Fund, although it is possible that leverage might
significantly exceed this level from time to time. In this context leverage calculated as the sum of the notional exposure of the financial
derivative instruments used, as defined in section 2.1 VaR Methodology in Appendix II Investment Restrictions and Powers.
Currency hedged Share Classes seek to minimize the effect of currency fluctuations between the Reference Currency of the Sub-Fund
and that of the relevant Share Class.
The benchmark is a point of reference against which the performance of the Sub-Fund may be measured. The Sub-Fund will be managed
without reference to its benchmark.

Appendix III

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JPMorgan Funds Global Merger Arbitrage Fund

Reference Currency
US Dollar (USD)
Benchmark
BBA 1 Month USD LIBOR
Benchmark for Hedged Share Classes
BBA 1 Month USD LIBOR Hedged to EUR for the EUR Hedged Share Classes
BBA 1 Month USD LIBOR Hedged to GBP for the GBP Hedged Share Classes
BBA 1 Month USD LIBOR Hedged to SEK for the SEK Hedged Share Classes
Investment Objective
To provide a return in excess of its cash benchmark by taking advantage of the deal risk premium factored into the price of companies
which are, or may become, involved in merger activity, takeovers, tender offers and other corporate activities anywhere in the world,
using financial derivative instruments where appropriate.
Investment Policy
The Sub-Fund will primarily invest in, either directly or through the use of financial derivative instruments, a portfolio of equity securities
of companies (including smaller capitalisation companies) that are, or are likely to become, subject to merger activity, takeovers, tender
offers or other corporate activities. Issuers of these securities may be located in any country, including emerging markets.
The Sub-Fund may hold short positions (through the use of financial derivative instruments) in the acquiring companies where the merger
is a stock deal, or use equity futures to hedge its market exposure.
The Sub-Fund will typically hold gross long positions of 100% of its net assets and gross short positions (achieved through the use of
financial derivative instruments) of 50% of its net assets. The Sub-Fund will not exceed gross long positions of 150% and gross short
positions of 150%. The net market exposure of long and short positions will vary depending on market conditions but will normally not
exceed 130% of the Sub-Funds assets.
The Sub-Fund will invest in financial derivative instruments to achieve its investment objective. Such instruments may also be used for the
purposes of hedging. These instruments may include, but are not limited to, futures, options, contracts for difference, forward contracts on
financial instruments and options on such contracts and swap contracts.
Debt securities may be held on an ancillary basis.
The Sub-Fund may also invest in UCITS and other UCIs.
The Sub-Fund is opportunistic and it may invest up to 100% of its assets in cash and cash equivalents until suitable investment
opportunities can be identified.
USD is the reference currency of the Sub-Fund but assets may be denominated in other currencies, including emerging market currencies,
and currency exposure may be hedged.
All of the above mentioned investments will be made in accordance with the limits set out in Appendix II Investment Restrictions and
Powers.
Investor Profile
Due to the nature of the investment strategy of this Sub-Fund, it is designed for experienced investors who are looking to benefit from
merger arbitrage opportunities. This Sub-Fund could also be used by investors looking for a single strategy fund to add to a diversified
portfolio. Investors in this Sub-Fund should have at least a three to five year investment horizon.
Risk Profile
The value of your investment may fall as well as rise and you may get back less than you originally invested.
At times it may not be possible to achieve the investment objective of the Sub-Fund due to the lack of opportunities on mergers or other
corporate activities.
The value of equity securities may go down as well as up in response to the performance of individual companies and general market
conditions.
Emerging markets may be subject to increased political, regulatory and economic instability, less developed custody and settlement
practices, poor transparency and greater financial risks. Emerging market currencies may be subject to volatile price movements.
Emerging market securities may also be subject to higher volatility and lower liquidity than non emerging market securities.
The Sub-Fund may be concentrated in a limited number of securities, industry sectors and/or countries and as a result, may be more
volatile than more broadly diversified funds.
The Sub-Fund may invest in securities of smaller companies which may be less liquid, more volatile and tend to carry greater financial
risk than securities of larger companies.
The strategy may be impacted by changes in regulations or accounting rules pertaining to merger activity.

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Appendix III