497 1 d254604d497.htm JPMORGAN TRUST II JPMorgan Trust II

J.P. MORGAN INCOME FUNDS

JPMorgan High Yield Fund

(All Share Classes)

(a series of JPMorgan Trust II)

Supplement dated September 8, 2016

to the Prospectuses and Summary Prospectuses

dated July 1, 2016, as supplemented

Changes to Investment Advisory Agreement and Expense Limitation Agreement for the JPMorgan High Yield Fund: The Board of Trustees has approved changes to the investment advisory fee of the JPMorgan High Yield Fund (the “Fund”) as set forth below. Effective November 1, 2016 (the “Effective Date”), the investment advisory fee for the Fund, which is currently 0.65%, will be changed to 0.60%.

Additionally, as of the Effective Date, the Fund’s adviser and/or its affiliates have contractually agreed to waive additional fees and/or reimburse additional expenses on Class C, Select Class, Class R5 and Class R6 Shares through October 31, 2018. The expense limitation agreement for Class A Shares is not changing on the Effective Date except that the expense limitation agreement has been extended until October 31, 2018. The expense limitation agreement for Class R2 Shares will reflect an increase in the expense cap on July 1, 2017 from 1.30% to 1.35%. The new expense cap for Class R2 Shares will be in effect from July 1, 2017 through October 31, 2018. In connection with these changes, the “Annual Fund Operating Expenses” and “Example” tables in the Fund’s prospectuses are hereby replaced with the corresponding tables below on the Effective Date.

For the Class A, Class C and Select Class Shares:

The tables below replace the corresponding tables on page 35 of the Class A, Class C and Select Class prospectus and in the Summary Prospectus on the Effective Date.

 

ANNUAL FUND OPERATING EXPENSES

(Expenses that you pay each year as a percentage of the value of your investment)

  
        Class A      Class C      Select
Class		  
Management Fees        0.60 %       0.60 %       0.60 % 
Distribution (Rule 12b-1) Fees        0.25         0.75         None   
Other Expenses        0.47         0.45         0.47   

Shareholder Service Fees

        0.25         0.25         0.25   

Remainder of Other Expenses

        0.22         0.20         0.22   
Acquired Fund Fees and Expenses        0.01         0.01         0.01   
      

 

 

     

 

 

     

 

 

  
Total Annual Fund Operating Expenses        1.33         1.81         1.08   
Fee Waivers and Expense Reimbursements1        (0.33 )       (0.31 )       (0.33 ) 
      

 

 

     

 

 

     

 

 

  

Total Annual Fund Operating Expenses After Fee Waivers

    and Expense Reimbursements1

        1.00         1.50         0.75   

 

1 The Fund’s adviser and/or its affiliates have contractually agreed to waive fees and/or reimburse expenses to the extent Total Annual Fund Operating Expenses (excluding Acquired Fund Fees and Expenses other than certain money market fund fees as described below, dividend and interest expenses related to short sales, interest, taxes, expenses related to litigation and potential litigation, and extraordinary expenses) exceed 1.00%, 1.50% and 0.75% of the average daily net assets of Class A, Class C and Select Class Shares, respectively. The Fund may invest in one or more money market funds advised by the adviser or its affiliates (affiliated money market funds). The Fund’s adviser, shareholder servicing agent and/or administrator have contractually agreed to waive fees and/or reimburse expenses in an amount sufficient to offset the respective net fees each collects from the affiliated money market funds on the Fund’s investment in such money market funds. These waivers are in effect through 10/31/18, at which time the adviser and/or its affiliates will determine whether to renew or revise them.

 

 

SUP-HY-916

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 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 Fund’s operating expenses are equal to the total annual fund operating expenses after fee waivers and expense reimbursements shown in the table through 10/31/18 and total annual fund operating expenses thereafter. Your actual costs may be higher or lower.

 

IF YOU SELL YOUR SHARES, YOUR COST WOULD BE:  
        1 Year        3 Years        5 Years        10 Years  
CLASS A SHARES ($)        473           716           1,014           1,859   
CLASS C SHARES ($)        253           508           921           2,074   
SELECT CLASS SHARES ($)        77           276           530           1,256   

 

IF YOU DO NOT SELL YOUR SHARES, YOUR COST WOULD BE:  
        1 Year        3 Years        5 Years        10 Years  
CLASS A SHARES ($)        473           716           1,014           1,859   
CLASS C SHARES ($)        153           508           921           2,074   
SELECT CLASS SHARES ($)        77           276           530           1,256   

Changes to Additional Fee and Expense Information. In connection with the change to the investment advisory expense limitation agreement, the following replaces the information in the table on page 202 of the Class A, Class C and Select Class Prospectus as of the Effective Date:

 

        Class      Net Expense
Ratio		        Gross Expense
Ratio		  
JPMorgan High Yield Fund      A        1.00 %         1.33 % 
     C        1.50 %         1.81 % 
       Select        0.75 %         1.08 % 

The following replace the tables on page 203 of the Class A, Class C and Select Class prospectus on the Effective Date.

JPMorgan High Yield Fund

 

 

     Class A     Class C1  
Period Ended    Annual
Costs		      Gross
Cumulative
Return		     Net
Cumulative
Return		     Net
Annual
Return		    
Annual
Costs		      Gross
Cumulative
Return		     Net
Cumulative
Return		     Net
Annual
Return		  
October 31, 2017    $ 473         1.06 %      0.10 %      0.10 %      153         5.00 %      3.50 %      3.50 % 
October 31, 2018      102         6.12        4.10        4.00        158         10.25        7.12        3.50   
October 31, 2019      141         11.42        7.92        3.67        197         15.76        10.54        3.19   
October 31, 2020      146         16.99        11.89        3.67        203         21.55        14.07        3.19   
October 31, 2021      152         22.84        15.99        3.67        210         27.63        17.70        3.19   
October 31, 2022      157         28.98        20.25        3.67        216         34.01        21.46        3.19   
October 31, 2023      163         35.43        24.66        3.67        223         40.71        25.33        3.19   
October 31, 2024      169         42.21        29.24        3.67        230         47.75        29.33        3.19   
October 31, 2025      175         49.32        33.98        3.67        238         55.13        33.46        3.19   
October 31, 2026      181         56.78        38.90        3.67        245         62.89        37.72        3.19   

 

1 The disclosure and numbers for Class C Shares shown above assume that the shareholder did not redeem the shares. With redemption, the numbers for Class C Shares for the first and second year (period ended October 31, 2018) would be as follows:

 

Annual
Costs		     Gross
Cumulative
Return		     Net
Cumulative
Return		     Net
Annual
Return		  
$ 253        4.00%        2.50%        2.50%   

       Select Class  
Period Ended      Annual
Costs		        Gross
Cumulative
Return		      Net
Cumulative
Return		      Net
Annual
Return		  
October 31, 2017      $ 77           5.00 %       4.25 %       4.25 % 
October 31, 2018        80           10.25         8.68         4.25   
October 31, 2019        120           15.76         12.94         3.92   
October 31, 2020        124           21.55         17.37         3.92   
October 31, 2021        129           27.63         21.97         3.92   
October 31, 2022        134           34.01         26.75         3.92   
October 31, 2023        140           40.71         31.72         3.92   
October 31, 2024        145           47.75         36.88         3.92   
October 31, 2025        151           55.13         42.25         3.92   
October 31, 2026        157           62.89         47.82         3.92   

For the Class R2, Class R5 and Class R6 Shares:

The tables below replace the corresponding tables on page 32 of the Class R2, Class R5 and Class R6 prospectus and in the Summary Prospectus on the Effective Date.

 

ANNUAL FUND OPERATING EXPENSES

(Expenses that you pay each year as a percentage of the value of your investment)

  
        Class R2      Class R5      Class R6  
Management Fees        0.60 %       0.60 %       0.60 % 
Distribution (Rule 12b-1) Fees        0.50         None         None   
Other Expenses        0.67         0.23         0.11   

Shareholder Service Fees

        0.25         0.05         None   

Remainder of Other Expenses

        0.42         0.18         0.11   
Acquired Fund Fees and Expenses        0.01         0.01         0.01   
      

 

 

     

 

 

     

 

 

  
Total Annual Fund Operating Expenses        1.78         0.84         0.72   
Fee Waivers and Expense Reimbursements1        (0.48 )       (0.14 )       (0.07 ) 
      

 

 

     

 

 

     

 

 

  

Total Annual Fund Operating Expenses After Fee Waivers

    and Expense Reimbursements1

        1.30         0.70         0.60   

 

1 The Fund’s adviser and/or its affiliates have contractually agreed to waive fees and/or reimburse expenses to the extent Total Annual Fund Operating Expenses (excluding Acquired Fund Fees and Expenses other than certain money market fund fees as described below, dividend and interest expenses related to short sales, interest, taxes, expenses related to litigation and potential litigation, and extraordinary expenses) exceed 1.30%, 0.70% and 0.60% of the average daily net assets of Class R2, Class R5 and Class R6 Shares, respectively. The Fund may invest in one or more money market funds advised by the adviser or its affiliates (affiliated money market funds). The Fund’s adviser, shareholder servicing agent and/or administrator have contractually agreed to waive fees and/or reimburse expenses in an amount sufficient to offset the respective net fees each collects from the affiliated money market funds on the Fund’s investment in such money market funds. These waivers are in effect for Class R5 and Class R6 through 10/31/18, at which time the adviser and/or its affiliates will determine whether to renew or revise them. With respect to Class R2 Shares, these waivers are in effect through 6/30/17. Effective July 1, 2017, the expense cap for Class R2 Shares will increase from 1.30% to 1.35% (the “new expense cap”). The new expense cap will be in effect through 10/31/18, at which time the adviser and/or its affiliates will determine whether to renew or revise it.

 

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 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 Fund’s operating expenses are equal to the total annual fund operating expenses after fee waivers and expense reimbursements shown in the table through 10/31/18 and total annual fund operating expenses thereafter. Your actual costs may be higher or lower.

 

WHETHER OR NOT YOU SELL YOUR SHARES, YOUR COSTS WOULD BE  
        1 Year        3 Years        5 Years        10 Years  
CLASS R2 SHARES ($)1        134           471           879           2,019   
CLASS R5 SHARES ($)        72           239           438           1,011   
CLASS R6 SHARES ($)        61           205           376           871   

 

1 Reflects expense cap increase effective July 1, 2017.

Changes to Additional Fee and Expense Information. In connection with the change to the investment advisory expense limitation agreement, the following replaces the information in the table on page 182 of the Class R2, Class R5 and Class R6 Prospectus as of the Effective Date:

 

        Class      Net Expense
Ratio		        Gross Expense
Ratio		  
JPMorgan High Yield Fund      R2        1.30 %1         1.78 % 
     R2        1.35 %2         1.78 % 
     R5        0.70 %         0.84 % 
       R6        0.60 %         0.72 % 

 

  1 Reflects expense cap in effect through 6/30/17.
  2 Reflects expense cap in effect through 10/31/18.

The following replace the tables on page 185 of the Class R2, Class R5 and Class R6 prospectus on the Effective Date.

JPMorgan High Yield Fund

 

 

     Class R21     Class R5  
Period Ended    Annual
Costs		      Gross
Cumulative
Return		     Net
Cumulative
Return		     Net
Annual
Return		     Annual
Costs		      Gross
Cumulative
Return		     Net
Cumulative
Return		     Net
Annual
Return		  
October 31, 2017    $ 134         5.00 %      3.68 %      3.68 %    $ 72         5.00 %      4.30 %      4.30 % 
October 31, 2018      143         10.25        7.46        3.65        75         10.25        8.78        4.30   
October 31, 2019      194         15.76        10.92        3.22        93         15.76        13.31        4.16   
October 31, 2020      201         21.55        14.50        3.22        97         21.55        18.02        4.16   
October 31, 2021      207         27.63        18.18        3.22        101         27.63        22.93        4.16   
October 31, 2022      214         34.01        21.99        3.22        105         34.01        28.05        4.16   
October 31, 2023      221         40.71        25.92        3.22        110         40.71        33.37        4.16   
October 31, 2024      228         47.75        29.97        3.22        114         47.75        38.92        4.16   
October 31, 2025      235         55.13        34.16        3.22        119         55.13        44.70        4.16   
October 31, 2026      243         62.89        38.48        3.22        124         62.89        50.72        4.16   
1 Reflects change in expense cap effective July 1, 2017.

       Class R6  
Period Ended      Annual
Costs		        Gross
Cumulative
Return		      Net
Cumulative
Return		      Net
Annual
Return		  
October 31, 2017      $ 61           5.00 %       4.40 %       4.40 % 
October 31, 2018        64           10.25         8.99         4.40   
October 31, 2019        80           15.76         13.66         4.28   
October 31, 2020        84           21.55         18.52         4.28   
October 31, 2021        87           27.63         23.60         4.28   
October 31, 2022        91           34.01         28.89         4.28   
October 31, 2023        95           40.71         34.40         4.28   
October 31, 2024        99           47.75         40.15         4.28   
October 31, 2025        103           55.13         46.15         4.28   
October 31, 2026        107           62.89         52.41         4.28   

 

INVESTORS SHOULD RETAIN THIS SUPPLEMENT

WITH THE PROSPECTUSES AND SUMMARY PROSPECTUSES FOR FUTURE REFERENCE