JPMorgan Funds Audited Annual Report - JP Morgan Asset ...

JPMorgan Funds
Notes to the Financial Statements (continued)
As at 30 June 2013
With effect from 5 November 2012, the Share Class JPM Emerging Markets Local Currency Debt X (acc) - GBP changed its name into JPM Emerging Markets
Local Currency Debt Y (acc) - GBP.
With effect from 4 February 2013, the Board has decided to rename Sub-Funds branded “JF” and as a result the following Sub-Funds have been renamed as
follows:
- JPMorgan Funds - JF Asia Pacific Income Fund changed its name into JPMorgan Funds - Asia Pacific Income Fund;
- JPMorgan Funds - JF China Fund changed its name into JPMorgan Funds - China Fund;
- JPMorgan Funds - JF Greater China Fund changed its name into JPMorgan Funds - Greater China Fund;
- JPMorgan Funds - JF Hong Kong Fund changed its name into JPMorgan Funds - Hong Kong Fund;
- JPMorgan Funds - JF India Fund changed its name into JPMorgan Funds - India Fund;
- JPMorgan Funds - JF Japan Equity Fund changed its name into JPMorgan Funds - Japan Equity Fund;
- JPMorgan Funds - JF Japan Small Cap Fund changed its name into JPMorgan Funds - Japan Small Cap Fund;
- JPMorgan Funds - JF Korea Equity Fund changed its name into JPMorgan Funds - Korea Equity Fund;
- JPMorgan Funds - JF Pacific Technology Fund changed its name into JPMorgan Funds - Pacific Technology Fund;
- JPMorgan Funds - JF Singapore Fund changed its name into JPMorgan Funds - Singapore Fund;
- JPMorgan Funds - JF Taiwan Fund changed its name into JPMorgan Funds - Taiwan Fund.
With effect from 4 February 2013, the Board has decided to rename the Share Classes branded “JF”, therefore all references to “JF” Classes of Shares have
been replaced with “JPMorgan” Classes of Shares.
d) Changes to Sub-Fund Benchmark Indexes
With effect from 5 December 2012, the following Sub-Funds changed their benchmark indexes as follows:
- JPMorgan Funds - Global Unconstrained Equity Fund changed from Morgan Stanley Capital International (MSCI) World Index (Total Return Net) to Morgan
Stanley Capital International (MSCI) All Country World Index (Total Return Net); and for its EUR hedged Share Classes, from Morgan Stanley Capital
International (MSCI) World Index (Total Return Net) hedged into EUR to Morgan Stanley Capital International (MSCI) All Country World Index (Total Return
Net) hedged into EUR.
With effect from 1 January 2013, JPMorgan Funds - Emerging Markets Equity Fund changed the benchmark index for its EUR Hedged Share Classes from MSCI
Emerging Markets Index (Total Return Net) Hedged to EUR to MSCI Emerging Markets Index (Total Return Net) USD Cross Hedged to EUR.
e) Other Information
From 1 January 2013 by way of an agreement between the Management Company and the Fund dated 20 December 2012, the Structure of the Share Classes
Operating and Administrative Expenses have been amended.
The Operating and Administrative Expenses cover:
(i) Expenses directly contracted by the Fund, including but not limited to the Custodian fees, auditing fees and expenses, the Luxembourg taxe
d’abonnement, Directors’ fees and reasonable out-of-pocket expenses incurred by the Directors.
(ii) A “fund servicing fee” paid to the Management Company for administrative and related services which will be the remaining amount of the Operating and
Administrative Expenses after deduction of the expenses detailed under section i) above. The Management Company then bears all expenses incurred in the
day to day operation and administration of the Fund, including but not limited to formation expenses such as organisation and registration costs; accounting
expenses covering fund accounting and administrative services; transfer agency expenses covering registrar and transfer agency services; the
Administrative Agent and Domiciliary Agent services; the fees and reasonable out-of-pocket expenses of the paying agents and representatives; legal fees
and expenses; ongoing registration, listing and quotation fees, including translation expenses; the cost of publication of the Share prices and postage,
telephone, facsimile transmission and other electronic means of communication; and the costs and expenses of preparing, printing and distributing the
Prospectus, Key Investor Information Documents or any offering document, financial reports and other documents made available to Shareholders.
Operating and Administrative Expenses do not include Transaction Fees and Extraordinary Expenses.
The change in the structure of the Operating and Administrative Expenses does not affect the current fixed percentage level on all Sub-Funds for Share
Classes - A, B, C, D, J and T, or the capped Operating and Administrative Expenses level on all other Sub-Funds for Share Classes I not mentioned above and
X Share Classes as disclosed in Appendix III of the Prospectus
From 1 January 2013, the Management Company has waived the incremental income previously received from the portion of income generated by Securities
Lending, for its Oversight of the program. From this date, 85% of any incremental income earned from securities lending is accrued to the applicable
Sub-Fund, with the remaining income payable to the securities lending agent which arrange the transaction.
The prospectus has been amended in June 2013 to provide shareholders with additional information in accordance with the ESMA Guidelines 2012/832 on
ETFS and other UCITS issues.
15. Events After Year-End
With effect from 1 July 2013, the Management Company has stopped the accrual of the following Sub-Fund’s performance fees:
- JPMorgan Funds - Emerging Markets Local Currency Debt Fund.
Subsequent to the year-end, the following Sub-Funds were liquidated:
- JPMorgan Funds - Global Mining Fund on 30 August 2013;
- JPMorgan Funds - Japan Small Cap Fund on 30 August 2013;
- JPMorgan Funds - Pacific Technology Fund on 30 August 2013.
Following approval during the June 2013 Board Meeting and by the CSSF in August 2013, the following merger is scheduled on 25 October 2013:
- JPMorgan Funds - Europe Dynamic Mega Cap Fund into JPMorgan Funds - Europe Dynamic Fund.
16. Directors’ Fees
The only remuneration paid to Directors is an annual fee. This is waived by Mr Berndt May and Mr Peter Schwicht.
The total Directors’ fees for the year amount to EUR 161,886, of which the Chairman is due EUR 38,320.
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