Jpmorgan Funds - Fundsupermart.com

JPMorgan Funds
Board of Directors’ Report
As at 30 June 2008
The Board of Directors is pleased to present the Audited Annual Report for the year ended 30 June 2008.
The Fund
The Fund is a variable capital investment company, organised as a “Société Anonyme”, under the laws of the Grand Duchy of Luxembourg.
The Fund is organized as an “umbrella” with a number of Sub-Funds, each of which has its own investment policy and restrictions.
At present, the Fund has issued shares in 79 Sub-Funds.
During the year, the total net assets of the Fund decreased from USD 89.6 billion to USD 57.6 billion at year end.
In response to a deterioration of the market conditions pertaining to a number of asset classes/debt instruments over the last year, widening
bid-ask spreads on asset-backed and corporate securities and a sharp decline in market liquidity, the regular pricing basis for the Sub-Funds -
using the last available price for securities as supplied by independent price providers - had become an unreliable estimate of the realizable value
of those instruments. In managing daily priced funds, the Board’s principle is to fairly value the portfolio to give equal treatment to Shareholders
and in this context, the Management Company has implemented a special Fair Value Committee to address any valuation concerns arising from
current market and liquidity events. The Committee considers on a daily basis current market information on the portfolios held, including last
traded prices, taking into account view of the Senior Management on the reliability of such information; indirect exposure through Over The
Counter credit derivatives; the estimated timing of asset disposal to meet anticipated investor redemptions.
During the year, the following Sub-Funds were launched:
• JPMorgan Funds - Euroland Select Equity Fund on 24 July 2007;
• JPMorgan Funds - Emerging Markets Local Currency Debt Fund on 24 January 2008;
The Fund qualifies as an Undertaking for Collective Investments in Transferable Securities under the amended EC Directive 85/611 of 20
December 1985 and may therefore be offered for sale in European Union Member States, subject to registration in countries other than the
Grand Duchy of Luxembourg. In addition, applications to register the Fund and its Sub-Funds may be made in other countries.
The Fund and the Sub-Funds are currently registered for offer and distribution in the Grand Duchy of Luxembourg and in the following
jurisdictions:
Austria, Bahrain, Belgium, Bermuda, Chile, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Korea, Macau,
The Netherlands, Norway, Peru, Portugal, Singapore, Spain, Sweden, Switzerland, Taiwan and United Kingdom.
Responsibility of the Directors
The responsibility of the Directors of the Fund is governed exclusively by Luxembourg law. With respect to the annual accounts of the Fund,
the duties of the Directors are governed by general corporate law and the law of 19 December 2002 on, inter alia, the accounting and annual
accounts of undertakings and by the law of 20 December 2002 relating to undertakings for collective investments.
Annual General Meeting
The next Annual General Meeting of the Company will be held on 19 November 2008.
Board of Directors
Luxembourg, 2 October 2008
3