JPMorgan Investment Funds - PDF Free Download

JPMorgan Investment Funds Audited Annual Report 31 December 2008

This report is an abridged version the audited annual report established in conformity with the Luxembourg Law 20 December 2002 on Undertakings for Collective Investment as amended. The complete version is available on request from the Company s registered fice in Luxembourg and from JPMorgan Funds (Asia) Limited. This report does not constitute an fer shares. Subscriptions are only valid if made on the basis the current Hong Kong Offering Document which is available free charge on request, supplemented by the most recent audited annual report the Fund and any subsequent unaudited semi-annual report, from JPMorgan Funds (Asia) Limited. Certain the sub-funds the Fund are not authorised for fer or distribution in or from Hong Kong. Accordingly, no reference is made to these sub-funds in this audited annual report. The attention the investors is drawn to the fact that certain figures in this audited annual report are expressed on a consolidated basis and, thus, include the assets those sub-funds which are not registered in Hong Kong.

JPMorgan Investment Funds Audited Annual Report Contents Board Directors 1 Management and Administration 2 Board Directors Report 3 Investment Managers Report 4 Independent Auditor s Report 5 Financial Statements and Statistical Information Combined Statement 6-7 Combined Statement Operations and Changes in 8-9 Statement Changes in the Number Shares 10-11 Statistical Information 12-13 Notes to the Financial Statements 14-19 Schedule Investments JPMorgan Investment Funds -Europe Select Equity Fund 20 JPMorgan Investment Funds -Europe Select Mega Cap Fund 23 JPMorgan Investment Funds -Global Balanced Fund (USD) 26 JPMorgan Investment Funds -Global Bond Fund (USD) 34 JPMorgan Investment Funds -Global Capital Preservation Fund (USD) 39 JPMorgan Investment Funds -Global Enhanced Bond Fund 43 JPMorgan Investment Funds -Global Financials Fund 48 JPMorgan Investment Funds -Global Short Duration Fund 51 JPMorgan Investment Funds -Highbridge Statistical Neutral Fund 53 JPMorgan Investment Funds -Japan 50 Equity Fund 56 JPMorgan Investment Funds -Japan Behavioural Finance Equity Fund 58 JPMorgan Investment Funds -JF Asia ex-japan Fund 60 JPMorgan Investment Funds -US Bond Fund 61 Appendix: Unaudited Additional Disclosures Fund Expense Ratios and Capped Expense Ratios 67 Summary Investment Objectives the Sub-Funds 69 Performance and Volatility 70 Interest Rate Received/(Charged) on Bank Accounts 72 Sub-Fund Share Classes Subject to Taxe d Abonnement Rate 0.01 72 Portfolio Turnover Ratio 72 Historical Statements Changes in the Number Shares 73 For additional information please consult www.jpmorganassetmanagement.com No subscriptions can be received solely on the basis this report.subscriptions are only valid if made on the basis the current prospectus, the current simplified prospectus, supplemented by the latest audited annual report and, if published thereafter, the latest unaudited semi-annual report. The current prospectus, the current simplified prospectus, the unaudited semi-annual reports, as well as the audited annual report can be obtained free charge from the registered fice the SICAV and from local paying agent.

JPMorgan Investment Funds Board Directors Chairman Iain O.S. Saunders Banker Duine, Ardfern Argyll PA31 8QN United Kingdom Directors André Elvinger (until 31 December 2008) Partner Elvinger, Hoss & Prussen 2, Place Winston Churchill L-2014 Luxembourg Grand Duchy Luxembourg Jean Frijns Pressor, Finance and Investments Antigonelaan 2 NL-5631 LR Eindhoven The herlands Berndt May Managing Director JPMorgan Asset Management (Europe) S.à r.l. Austrian Branch Führichgasse 8 A-1010 Vienna Austria Deputy Chairman Pierre Jaans Economist 3, rue de Kahler L-8356 Garnich Grand Duchy Luxembourg Jacques Elvinger (from 1 January 2009) Partner Elvinger, Hoss & Prussen 2, place Winston Churchill L-2014 Luxembourg Grand Duchy Luxembourg Andrea L. Hazen Managing Director JPMorgan Asset Management (UK) Limited 20 Finsbury Street London EC2Y 9AQ United Kingdom Robert Van der Meer Pressor Finance 9A Lange Vijverberg NL-2513 AC The Hague The herlands Changes to the Composition the Board Directors On 31 December 2008, Mr André Elvinger resigned from the Board Directors.In his place Mr Jacques Elvinger was co-opted as a Director on 1 January 2009. Registered Office European Bank & Business Centre 6, route de Trèves L-2633 Senningerberg Grand Duchy Luxembourg 1

JPMorgan Investment Funds Management and Administration Management Company, Registrar and Transfer Agent, Global Distributor and Domiciliary Agent JPMorgan Asset Management (Europe) S.à r.l. European Bank & Business Centre 6, route de Trèves L-2633 Senningerberg Grand Duchy Luxembourg Investment Managers J.P. Morgan Investment Management Inc. 245 Park Avenue New York, NY 10167 United States America JPMorgan Asset Management (Japan) Limited Tokyo Building 7-3 Marunouchi 2-Chome Chiyoda-Ku Tokyo 100-6432, Japan JPMorgan Asset Management (UK) Limited 20 Finsbury Street London EC2Y 9AQ United Kingdom JF Asset Management Limited 21st floor, Chater House 8 Connaught Road Central, Hong Kong Highbridge Capital Management LLC, 9 West 57th Street New York, NY 10019 United States America American Century Global Investment Management Inc. 666 Third Avenue New York, NY 10017 United States America JF Asset Management (Singapore) Limited 168 Robinson Road 17th Floor, Capital Tower Singapore 068912 Custodian, Corporate and Administrative Agent J.P. Morgan Bank Luxembourg S.A. European Bank & Business Centre 6, route de Trèves L-2633 Senningerberg Grand Duchy Luxembourg Independent Auditor PricewaterhouseCoopers S.à r.l. Réviseur d entreprises 400, route d Esch BP 1443 L-1014 Luxembourg Grand Duchy Luxembourg Legal Adviser Elvinger, Hoss & Prussen 2, place Winston Churchill L-2014 Luxembourg Grand Duchy Luxembourg 2

JPMorgan Investment Funds Board Directors Report The Board Directors is pleased to present the Audited Annual Report for the year ended 31 December 2008. Structure and Size the Fund The Fund is a variable capital investment company with multiple Sub-Funds, organised as a "société anonyme", under the laws the Grand Duchy Luxembourg, organised as an "umbrella" with a number Sub-Funds, each which has its own investment policy and restrictions. At the year end the Fund had issued shares in 42 Sub-Funds. During the year the following Sub-Funds changed their names: JPMorgan Investment Funds - JF Asia Diversified Fund was renamed JPMorgan Investment Funds - JF Asia ex-japan Fund During the year a number Sub-Funds were liquidated and details these are given in Note 13 on page 35.This Note also gives the dates on which the change names listed above took place. During the year, the total net assets the Fund decreased from USD 21.4 billion to USD 12.5 billion at year end. The Board Directors decided to open on 31 December as an additional business day to deal in the fund. The Fund qualifies as an Undertaking for Collective Investments in Transferable Securities under the amended EC Directive 85/611 20 December 1985 and may therefore be fered for sale in European Union Member States, subject to registration in countries other than the Grand Duchy 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 fer and distribution in the Grand Duchy Luxembourg and in the following jurisdictions: Austria, Belgium, Chile, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Macau, The herlands, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, Taiwan and United Kingdom. Fair Valuation In managing the daily priced funds the Board's principle is to ensure that portfolios are appropriately valued to give equal treatment to Shareholders and in this context the Management Company has implemented a special Fair Committee (FVC) to address valuation concerns arising from the current market and liquidity events.the Committee considers on a daily basis; current market information on the portfolio securities held, including last trading prices taking into account Senior Management views on the reliability such information, indirect exposure through Over the Counter credit derivatives, and the estimated timing asset disposal to meet anticipated investor redemptions. In response to a deterioration the market conditions pertaining to a small number asset classes / debt instruments over the last year and in particular widening 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 the realizable value those instruments. In view this the FVC implemented pricing adjustments for the following Sub-Funds as disclosed in note 2 a) : JPMorgan Investment Funds Global Bond Fund (USD) JPMorgan Investment Funds - Global Enhanced Bond Fund, JPMorgan Investment Funds - Global Short Duration Fund, and JPMorgan Investment Funds - US Bond Fund. Responsibility the Directors The responsibility the Directors the Fund is governed by Luxembourg law.with respect to the annual accounts the Fund, the duties the Directors are governed by general corporate law and the law 19 December 2002 on, inter alia, the accounting and annual accounts undertakings and by the law 20 December 2002 relating to undertakings for collective investments. Changes to the Board Directors On 31 December 2008, Mr André Elvinger resigned as a Director the Fund.The Board would like to take this opportunity to thank Mr Elvinger for his service to the Fund. Mr Jacques Elvinger was co-opted as a Director with effect from 1 January 2009 and his appointment will be approved by Shareholders at the forthcoming Annual General Meeting. Annual General Meeting The next Annual General Meeting the Company will be held on 24 April 2009. The Board Directors Luxembourg, 13 March 2009 3

JPMorgan Investment Funds Investment Managers Report For the year ended 31 December 2008 review 2008 For the vast majority investors 2008 has been a terrible year.global stock markets plummeted as bad newsflow shocks, tight credit conditions and rapidly deteriorating economic data caused high levels volatility and risk aversion.the situation was compounded as investors rushed to safety, hedge funds experienced large redemptions and there was a general trend global deleveraging. While 2008 was very negative for most investors, it was also the year smashed records.stock market volatility, as measured for the S&P 500 by the Volatility Index (VIX), reached a record high almost 90, the price gold and oil reached new highs and the euro achieved an all-time high against the US dollar and sterling.some financial companies also wrote down record losses, while many US, UK and eurozone economic data releases reached record lows and some central banks cut interest rates with unprecedented speed. During the first half the year sentiment was dominated by worries about rising inflation as commodity prices surged.this situation was reversed, however, as ongoing concerns about the risks weaker economic growth came to fruition and economic data releases in the US, UK and eurozone tumbled.all three regions recorded negative real Gross Domestic Product growth in the third quarter.commodity prices fell, particularly the price oil, which eventually fed through into lower inflation rates and some observers even started to worry about the prospect deflation.this opened the door for the European Central Bank (ECB) and the Bank England, which both target inflation levels about 2, to ease monetary policy and cut interest rates, to reach 2.0 in the UK and 2.5 in the eurozone in December. The US Federal Reserve had cut interest rates aggressively throughout the year, reaching 1.0 in October, while, among others, the Reserve Bank Australia, the Bank Canada, the Swedish Riksbank and the Bank Japan also reduced interest rates in 2008. Equity markets were under pressure in March when Bear Stearns, the US investment bank, suffered a crisis confidence, before it was quickly rescued by JPMorgan in a deal facilitated by the US Federal Reserve.September was also a highly dramatic month and equity prices tumbled before the US government rescued mortgage giants Fannie Mae and Freddie Mac.Then, just one week later, the collapse investment banking giant, Lehman Brothers, and the sale Merrill Lynch to Bank America sent shock waves through the global financial system.in addition, insurance giant AIG received a USD 85 billion rescue package from the Fed.Also in September, Halifax Bank Scotland agreed to be taken over by Lloyds TSB, Bradford & Bingley was nationalised, Goldman Sachs and Morgan Stanley, the last remaining US investment banks, became regulated banks, and Fortis received support from the Benelux authorities. With the global financial system in dire straits, the Troubled Asset Relief Program, worth USD 700 billion, was passed by the US Congress at the start October as a facility to buy up bad debt from banks.meanwhile in the UK, the government announced a package enabling it to inject up to GBP 50 billion into the biggest banks, guarantee up to GBP 250 billion banks debt instruments and fer at least GBP 200 billion in short-term lending support.in addition, the UK and US introduced temporary bans on the short selling financial stocks to try to relieve pressure on their share prices.in November the two countries took further action: the Fed announced the USD 800 billion Term Asset Backed Securities Loan Facility to buy up mortgage debt and support consumer loans, while the UK cut VAT from 17.5 to 15. Global bond markets also experienced a volatile 12 months, against a backdrop changing investor sentiment and sharp reversals in interest rate expectations.in the summer the prospect potential interest rate increases caused bond markets to sell f, however, as problems in the financial sector became critical in September, government bonds once again saw strong demand causing yields to fall and prices to rally as the credit crisis sparked a flight to quality, which endured for the remainder the year despite interest rate cuts. Outlook for 2009 It is currently very difficult to gauge the depth and duration the global economic downturn.it is important for policymakers to somehow break the negative feedback loop between poor economic data and tightening credit market conditions.a lot policy measures have been taken in recent months, and further announcements are expected from incoming President Obama in the US, and therefore hopefully it will just be a question time for these policies to yield results. On the positive side, the decline in energy prices should provide a useful boost to household purchasing power.inflation levels are already falling, which should provide some support to real income even if nominal wages do not rise.interest rates have also been significantly reduced in most major economies which, providing they are passed on and credit is actually made available, should provide some relief to the battered mortgage market and corporate borrowers. For investors to really gain confidence we would like to see volatility fall back towards more normal levels it has been extremely high for many months now, as measured by the VIX.We would also like to see the spreads between three-month Libor and policy rates narrow towards their historic averages in the UK, eurozone and US.Three-month Libor is currently significantly higher, but is important because it is widely used to price mortgages, loans and in the derivatives market. Finally, it is a positive sign that interest rates and inflation levels are already falling. The Investment Managers 13 March 2009 The information stated in this report is historical and not necessarily indicative future performance. 4

Independent Auditor s Report To the Shareholders JPMorgan Investment Funds PricewaterhouseCoopers Société à responsabilité limitée Réviseur d Entreprises 400, route d Esch B.P. 1443 L-1014 Luxembourg Telephone +352 494848-1 Facsimile +352 494848-2900 www.pwc.com/lu info@lu.pwc.com Following our appointment by the General Meeting the Shareholder dated 25 April 2008, we have audited the accompanying financial statements JPMorgan Investment Funds and each its sub-funds, which comprise the Combined Statement and the Schedule Investments as at 31 December 2008 and the Combined Statement Operations and Changes in for the year then ended, and a summary significant accounting policies and other explanatory notes to the financial statements. Board Directors the SICAV s responsibility for the Financial Statements The Board Directors the SICAV is responsible for the preparation and fair presentation these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation the financial statements.this responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor s responsibility Our responsibility is to express an opinion on these financial statements based on our audit.we conducted our audit in accordance with International Standards on Auditing as adopted by the "Institut des Réviseurs d'entreprises".those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.the procedures selected depend on the Auditor's judgment, including the assessment the risks material misstatement the financial statements, whether due to fraud or error. In making those risk assessments, the Auditor considers internal control relevant to the entity's preparation and fair presentation the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose expressing an opinion on the effectiveness the entity's internal control. An audit also includes evaluating the appropriateness accounting policies used and the reasonableness accounting estimates made by the Board Directors the SICAV, as well as evaluating the overall presentation the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, these financial statements give a true and fair view the financial position JPMorgan Investment Funds and each its sub-funds as 31 December 2008, and the results their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation the financial statements. Without qualifying our opinion, we draw attention to Note 2 a) to the financial statements relating to the valuation certain assets.this note explains that, in the absence a liquid market, the assets certain sub-funds have been subject to a valuation process described therein.the list the related sub-funds and their exposure as at 31 December 2008 to assets subject to such valuation process are further disclosed in Note 2 a) to the financial statements. Other matter Supplementary information included in the annual report has been reviewed in the context our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above.consequently, we express no opinion on such information.however, we have no observation to make concerning such information in the context the financial statements taken as a whole. PricewaterhouseCoopers S.à r.l. Luxembourg, 13 March 2009 Réviseur d entreprises Represented by Marc Schernberg R.C.S. Luxembourg B 65 477 - TVA LU17564447 5

JPMorgan Investment Funds Combined Statement JPMorgan Investment Funds Combined USD Europe Select Equity Fund EUR Europe Select Mega Cap Fund EUR Global Balanced Fund (USD) USD Investments in Securities at (1) 10,091,204,831 85,125,328 11,622,588 409,242,424 Acquisition Cost: 12,216,880,377 124,748,214 17,313,155 443,191,183 Investment in TBAs at (2) 464,597,796 - - - Cash at Bank 2,022,258,158 442,787 193,563 24,509,277 Time Deposits and Cash Equivalents 310,222,801 - - - Amounts Receivable on Sale Investments 28,617,023 - - 3,277,866 Amounts Receivable on Sale TBAs (2) 440,403,739 - - - Amounts Receivable on Subscriptions 103,139,564 5,380 3,000 952,024 Interest and Dividends Receivable, 37,557,417 110,379 27,036 3,090,041 Tax Reclaims Receivable 412,223 43,275 9,251 16,151 Fee Waiver (3) 15,306 2,429 - - Other Receivables 102,443 - - 30 Unrealised Gain on Forward Foreign Exchange Contracts 26,032,586 2,077,249 8,667 - Unrealised Gain on Financial Futures Contracts 34,695,557 15,827 - - Credit Default Swaps at 102,139 - - - Interest Rate Swaps at 157,126 - - - Price Lock Swaps at 1,139,174 - - - Total Return Swaps at 13,898,754 - - - Option Contracts at 26,045,747 - - - Total 13,600,602,384 87,822,654 11,864,105 441,087,813 Liabilities Bank Overdraft 1,841 - - - Open Short Positions on TBAs (2) 425,758,759 - - - Amounts Payable on Purchase Investments 73,451,058 - - 12,335 Amounts Payable on Purchase TBAs (2) 480,285,651 - - - Amounts Payable on Redemptions 62,150,528 132,112 50,006 504,887 Management and Advisory Fees Payable 13,530,584 23,359 14,596 215,497 Performance Fees 34,331,047 - - - Other Payables 2,388,025 17,150 3,952 58,062 Unrealised Loss on Forward Foreign Exchange Contracts 20,651,603 - - 1,988,063 Unrealised Loss on Financial Futures Contracts 1,505,665-1,930 687,054 Credit Default Swaps at 7,389,543 - - - Interest Rate Swaps at 26,237,794 - - - Total Return Swaps at 1,645,882 - - - Total Liabilities 1,149,327,980 172,621 70,484 3,465,898 Total 12,451,274,404 87,650,033 11,793,621 437,621,915 Historical Total 31 December 2007 21,371,859,183 329,258,620 62,732,758 599,095,598 31 December 2006 22,125,854,907 54,144,868 49,112,114 621,625,034 31 December 2005 15,421,448,687 10,190,026 43,931,240 693,190,141 31 December 2004 15,217,739,726 27,248,596 109,349,285 763,425,443 (1) Please refer to Note 2 a). (2) Please refer to Note 2 i). (3) Please refer to Note 3 a). The accompanying notes form an integral part these financial statements. 6

JPMorgan Investment Funds Combined Statement (continued) Global Bond Fund (USD) USD Global Capital Preservation Fund (USD) USD Global Enhanced Bond Fund EUR Global Financials Fund USD Global Highbridge Short Duration Statistical Fund Neutral Fund USD EUR Japan 50 Japan Behavioural Equity Finance Equity Fund Fund JPY USD JF Asia ex-japan Fund (4) USD US Bond Fund USD 63,694,477 60,042,908 27,962,540 107,877,185 17,127,877 1,756,512,214 30,864,761,400 42,676,062 522,531,276 59,615,787 73,630,838 63,800,051 38,963,995 170,166,860 19,372,015 1,761,077,936 51,150,076,201 47,633,364 866,146,702 119,263,385 63,158,738-60,263,178 - - - - - - 144,987,088 6,983,044 6,283,857 3,836,846 7,360,671 7,684,072 1,123,847,504 812,491,069 669,775 24,699,078 5,371,331 - - - - - - - - - - 558,175 - - - - - 52,909,141 2,233,815 8,083,726 83 61,969,302-58,976,076 - - - - - - 126,207,793 80,756 127,134 19,477 389,705-28,617,279 507,402-4,631,174 7,538 654,546 281,718 514,381 187,002 79,060 7,951 32,608,511 35,106 1,158,296 582,935 26,679 12,474-5,427 - - - - - - - - - - 7,878 - - - - - - - - - - 162 - - - - 216,803 405,746 - - - - - - - - 670,324 557,849 - - 72,243-16,580,000 - - 1,094,839 - - - - - - - - - 102,139 - - - - 693 - - - - - 74,496-50,222 - - - - - - 100,363 - - - - - 9,586,135 - - - - 315,094 646,221 149,120 - - - - - - 168,717 198,402,434 68,357,907 151,771,840 115,819,990 24,971,823 2,918,571,245 31,779,857,523 45,614,758 561,103,550 338,238,613 - - - - - - - - - - 62,856,892-47,955,887 - - - - - - 123,593,428 450,230-228,205 - - 25,988,680 49,316,650 2,488,543 1,985,758 362,903 62,544,550-71,304,327 - - - - - - 147,508,315 166,672 123,128 190,151 121,360 181,132 14,019,637 21,641,064-10,225,405 460,336 19,049 68,328 13,721 118,920 7,500 4,117,012 16,236,472 32,679 479,509 42,952 - - - - - 24,567,802 - - - - 22,625 20,917 13,763 31,107 11,052 646,676 2,656,348 13,291 96,940 20,618 - - 14,826 234,655 7,083 6,469,944 - - - - - - 40,770 - - - - - - - 213,050-163,755 - - - - - - - 390,618 535,700 151,480 - - - - - - 664,476-44,033 - - - - - - - - 126,663,686 792,106 120,076,885 506,042 206,767 75,809,751 89,850,534 2,534,513 12,787,612 272,653,028 71,738,748 67,565,801 31,694,955 115,313,948 24,765,056 2,842,761,494 31,690,006,989 43,080,245 548,315,938 65,585,585 398,540,721 56,022,839 172,270,768 173,591,902 169,867,017 2,536,907,979 61,783,248,670 100,132,088 1,570,642,348 921,294,102 686,299,732 68,884,360 285,501,505 233,863,457 171,839,250 125,743,758 73,365,835,305-735,397,687 1,491,870,100 821,844,843 8,412,998 305,827,043 147,011,673 280,327,438-11,410,319,902-600,063,343 905,343,207 694,781,105-331,577,582 131,838,822 594,860,222-536,980,959-357,765,291 717,630,689 (4) This Sub-Fund changed its name from JF Asia Diversified Fund on 31 March 2008. 7

JPMorgan Investment Funds Combined Statement Operations and Changes in For the Year Ended 31 December 2008 JPMorgan Investment Funds Combined USD Europe Select Equity Fund EUR Europe Select Mega Cap Fund EUR Global Balanced Fund (USD) USD at the Beginning the Year * 21,196,768,508 329,258,620 62,732,758 599,095,598 Income Dividend Income, 147,498,839 5,366,280 1,361,946 5,227,037 Interest Income, 431,124,176 2,807 7,123 8,993,278 Securities Lending Income 9,932,712 403,313 96,534 422,719 Bank Interest 14,104,418 12,893 11,339 577,262 Interest on Swap Transactions 83,269,576 - - - Total Income 685,929,721 5,785,293 1,476,942 15,220,296 Expenses Management and Advisory Fees 209,724,669 1,005,682 528,519 3,547,215 Custodian, Corporate, Administrative and Domiciliary Agency Fees 14,111,075 187,565 88,429 407,860 Registrar and Transfer Agency Fees 4,138,982 72,255 14,151 40,061 Taxe d Abonnement 6,697,136 34,567 14,384 160,192 Overdraft Interest 288,617 - - 152 Interest on Swap Transactions 93,756,654 - - - Sundry Fees** 11,720,890 106,937 21,521 310,735 340,438,023 1,407,006 667,004 4,466,215 Less: Fee Waiver (1) 4,732,908 77,412 15,078 134,651 Total Expenses before Performance Fees 335,705,115 1,329,594 651,926 4,331,564 Performance Fees 34,331,056 - - - Total Expenses 370,036,171 1,329,594 651,926 4,331,564 Investment Income/(Loss) 315,893,550 4,455,699 825,016 10,888,732 Realised Gain/(Loss) on Sale Investments (2,320,610,103) (77,929,705) (18,094,843) (14,404,225) Realised Gain/(Loss) on Forward Foreign Exchange Contracts (32,988,380) 3,159,297 (102,896) (4,242,539) Realised Gain/(Loss) on Financial Futures Contracts (122,410,426) (699,990) (558,062) (3,576,222) Realised Gain/(Loss) on Foreign Exchange (43,900,669) (7,866) (90,891) (721,497) Realised Gain/(Loss) on Option Contracts 246,279,438 - - - Realised Gain/(Loss) on Forward Rate Agreements 42,495 - - - Realised Gain/(Loss) on TBAs 20,273,961 - - - Realised Gain/(Loss) on Swaps 324,066,012 - - - Realised Gain/(Loss) for the Year (1,929,247,672) (75,478,264) (18,846,692) (22,944,483) Change in Unrealised Gain/(Loss) on Investments (1,993,599,647) (23,920,220) (2,673,994) (87,855,864) Change in Unrealised Gain/(Loss) on Forward Foreign Exchange Contracts (32,768,328) 1,325,706 67,459 (2,470,383) Change in Unrealised Gain/(Loss) on Financial Futures Contracts 69,237,211 17,933 (3,570) (926,871) Change in Unrealised Gain/(Loss) on Foreign Exchange 12,855,866 (11,501) (2,381) 11,997 Change in Unrealised Gain/(Loss) on Option Contracts (30,158,150) - - - Change in Unrealised Gain/(Loss) on Forward Rate Agreements (173,858) - - - Change in Unrealised Gain/(Loss) on TBAs 3,370,913 - - - Change in Unrealised Gain/(Loss) on Swaps 13,516,880 - - - Change in Unrealised Gain/(Loss) for the Year (1,957,719,113) (22,588,082) (2,612,486) (91,241,121) Increase/(Decrease) in as a Result Operations (3,571,073,235) (93,610,647) (20,634,162) (103,296,872) Movements in Share Capital Subscriptions 14,299,644,747 56,573,198 15,732,289 38,988,078 Redemptions (19,461,579,379) (204,518,424) (46,037,169) (97,164,658) Increase/(Decrease) in as a Result Movements in Share Capital (5,161,934,632) (147,945,226) (30,304,880) (58,176,580) Dividend Distribution (12,486,237) (52,714) (95) (231) Total at the End the Year 12,451,274,404 87,650,033 11,793,621 437,621,915 * The opening balance was combined using the foreign exchange rate as at 31 December 2008.The same net assets when combined using the foreign exchange ruling as at 31 December 2007 reflected a figure USD 21,371,859,183. ** Sundry Fees are principally comprised Directors fees, audit and tax related fees, registration, publication, mailing and printing fees, as well as legal and marketing expenses. (1) Please refer to Note 3 a). The accompanying notes form an integral part these financial statements. 8

JPMorgan Investment Funds Combined Statement Operations and Changes in (continued) For the Year Ended 31 December 2008 Global Bond Fund (USD) USD Global Capital Preservation Fund (USD) USD Global Enhanced Bond Fund EUR Global Financials Fund USD Global Highbridge Short Duration Statistical Fund Neutral Fund USD EUR Japan 50 Japan Behavioural Equity Finance Equity Fund Fund JPY USD JF Asia ex-japan Fund (2) USD US Bond Fund USD 398,540,721 56,022,839 172,270,768 173,591,902 169,867,017 2,536,907,979 61,783,248,670 100,132,088 1,570,642,348 921,294,102-496,554-5,131,131 - - 1,000,270,332 1,596,223 23,694,991-7,299,361 1,731,189 4,611,195 43,997 2,370,672 122,533,955 319,444 - - 13,683,793 46,889 5,939 30,245 423,441 5,673 - - 96,463 345,408 100,479 118,642 62,311 63,209 36,846 44,020 670,203 816,230 25,446 1,204,035 76,880 2,236,768-875,998-106,216 48,185,221 - - - 839,440 9,701,660 2,295,993 5,580,647 5,635,415 2,526,581 171,389,379 1,001,406,006 1,718,132 25,244,434 14,700,592 960,718 1,246,873 740,136 2,107,127 173,774 48,942,102 312,399,512 1,004,255 11,715,581 1,382,150 341,507 198,351 222,255 228,371 171,267 1,447,657 32,599,706 180,555 1,103,870 272,004 44,650 42,831 46,291 153,486 11,099 481,828 1,461,262 16,480 268,732 76,224 47,377 46,729 36,977 71,251 16,635 1,365,369 7,028,282 32,006 314,479 54,339 1,385 103 270-118 24,158 28,079 - - - 2,124,669-750,837-171,160 57,389,547 - - - 840,322 99,369 51,925 55,409 84,830 34,957 2,635,083 32,098,359 60,262 632,705 133,427 3,619,675 1,586,812 1,852,175 2,645,065 579,010 112,285,744 385,615,200 1,293,558 14,035,367 2,758,466 258,537 159,903 192,850 55,085 156,963 122,926 6,588,645 48,415 30,501 182,333 3,361,138 1,426,909 1,659,325 2,589,980 422,047 112,162,818 379,026,555 1,245,143 14,004,866 2,576,133 - - - - - 24,567,802 - - - - 3,361,138 1,426,909 1,659,325 2,589,980 422,047 136,730,620 379,026,555 1,245,143 14,004,866 2,576,133 6,340,522 869,084 3,921,322 3,045,435 2,104,534 34,658,759 622,379,451 472,989 11,239,568 12,124,459 (17,699,198) (6,611,408) (34,398,087) (76,099,897) 747,613 391,927 (15,877,828,800) (35,189,996) (170,218,212) (65,196,828) (849,172) 1,755,469 1,096,305 596,350 (2,442,772) (1,667,274) (29,514,175) 657,756 21,635 (645,696) (12,159,386) (886,513) (6,465,999) (461,841) (2,768,582) - (119,490,959) - - 965,675 (62,999) (423,338) (1,746,091) 359,616 47,148 (58,370) 8,555,566 (250,250) (895,564) 154,444 1,972,731 4,105,549 760,386-168,732 - - - - 152,193 5,065-2,557 - - - - - - - 601,679-3,381,439-92,808 - - - - 5,712,198 (10,679,608) 973,640 (5,203,454) - (3,051,234) 243,875,723 - - - (1,456,516) (38,870,888) (1,086,601) (42,572,944) (75,605,772) (7,206,287) 242,542,006 (16,018,278,368) (34,782,490) (171,092,141) (60,314,530) (14,002,778) (8,620,214) 16,349,741 (56,123,472) (6,706,748) (4,297,382) (11,059,678,535) 277,345 (682,867,971) 13,660,503 (710,410) 348,815 (773,113) (624,302) 1,633,427 (6,459,049) - - - 604,168 3,032,087 785,720 455,448 (70,307) 533,077-16,580,000 - - 1,134,850 216,046 (18,930) 1,535,677 (5,006) 95,182 24,707 (8,527,752) (12,316) 14,301 (205,292) (21,787) (799,210) 23,366-2,538 - - - - (116,106) (23,993) - (11,001) - (6,754) - - - - - (213,916) - 475,251 - (7,371) - - - - 2,796,941 (324,109) (597,836) 98,934-564,056 23,319,901 - - - 2,149,477 (12,048,860) (8,901,655) 18,154,303 (56,823,087) (3,892,593) 12,588,177 (11,051,626,287) 265,029 (682,853,670) 20,024,541 (44,579,226) (9,119,172) (20,497,319) (129,383,424) (8,994,346) 289,788,942 (26,447,525,204) (34,044,472) (842,706,243) (28,165,530) 22,240,547 86,595,119 22,174,546 269,240,602 3,374,661 2,990,404,394 29,148,095,670 57,212,099 742,801,191 25,622,028 (304,463,294) (65,932,985) (142,252,578) (198,133,262) (139,482,276) (2,973,687,826) (32,793,812,147) (80,187,414) (922,370,975) (853,149,620) (282,222,747) 20,662,134 (120,078,032) 71,107,340 (136,107,615) 16,716,568 (3,645,716,477) (22,975,315) (179,569,784) (827,527,592) - - (462) (1,870) - (651,995) - (32,056) (50,383) (15,395) 71,738,748 67,565,801 31,694,955 115,313,948 24,765,056 2,842,761,494 31,690,006,989 43,080,245 548,315,938 65,585,585 (2) This Sub-Fund changed its name from JF Asia Diversified Fund on 31 March 2008. 9

JPMorgan Investment Funds Statement Changes in the Number Shares (continued) For the Year Ended 31 December 2008 Shares Outstanding at the Beginning the Year Shares Subscribed Shares Redeemed Shares Outstanding at the End the Year JPMorgan Investment Funds - Europe Select Equity Fund JPM Europe Select Equity A (acc) - EUR 171,490.663 16,939.943 171,774.164 16,656.442 JPM Europe Select Equity A (acc) - USD 34.860 - - 34.860 JPM Europe Select Equity A (dist) - EUR 54,233.360 1,412.163 52,477.461 3,168.062 JPM Europe Select Equity B (acc) - EUR 89,273.612 71,372.782 118,834.353 41,812.041 JPM Europe Select Equity C (acc) - EUR 267,209.237 427,482.669 297,355.474 397,336.432 JPM Europe Select Equity D (acc) - EUR 41,364.284 30,010.470 49,939.581 21,435.173 JPM Europe Select Equity D (acc) - USD 34.860 - - 34.860 JPM Europe Select Equity X (acc) - EUR 286,597.337 22,051.896 207,018.889 101,630.344 JPM Europe Select Equity X (acc) - EUR (hedged) 846,138.363-2,000.000 844,138.363 JPMorgan Investment Funds - Europe Select Mega Cap Fund JPM Europe Select Mega Cap A (acc) - EUR 266,215.403 79,336.063 266,255.007 79,296.459 JPM Europe Select Mega Cap A (dist) - EUR 83.162 28.789 45.038 66.913 JPM Europe Select Mega Cap B (acc) - EUR 19,005.350-15,046.763 3,958.587 JPM Europe Select Mega Cap C (acc) - EUR 19,407.323-15,824.772 3,582.551 JPM Europe Select Mega Cap D (acc) - EUR 94,398.338 55,631.691 86,245.543 63,784.486 JPM Europe Select Mega Cap X (acc) - EUR 55,435.778 1,733.144 31,010.461 26,158.461 JPMorgan Investment Funds - Global Balanced Fund (USD) JF Global Balanced (USD) A (acc) - USD 14,111.205 3,853.125 6,923.599 11,040.731 JPM Global Balanced (USD) A (acc) - USD 1,088,347.041 176,149.105 465,854.331 798,641.815 JPM Global Balanced (USD) A (dist) - USD 50.000 - - 50.000 JPM Global Balanced (USD) B (acc) - USD 468,553.512 4,694.799 6,960.797 466,287.514 JPM Global Balanced (USD) C (acc) - USD 157,382.507 - - 157,382.507 JPM Global Balanced (USD) D (acc) - USD 115,868.691 69,401.263 74,696.334 110,573.620 JPM Global Balanced (USD) X (acc) - USD 1,415,826.141-75,561.353 1,340,264.788 JPMorgan Investment Funds - Global Bond Fund (USD) JF Global Bond (USD) A (acc) - USD 184,618.107 3,524.806 100,548.765 87,594.148 JPM Global Bond (USD) A (acc) - USD 1,194,838.421 58,828.465 1,010,743.962 242,922.924 JPM Global Bond (USD) B (acc) - USD 181,999.679-181,399.680 599.999 JPM Global Bond (USD) C (acc) - USD 413,983.108 62,282.001 472,206.433 4,058.676 JPM Global Bond (USD) D (acc) - USD 105,997.188 37,870.451 86,534.789 57,332.850 JPM Global Bond (USD) X (acc) - USD 560,673.314-323,416.650 237,256.664 JPMorgan Investment Funds - Global Capital Preservation Fund (USD) JPM Global Capital Preservation (USD) A (acc) - USD 256,549.993 479,055.271 297,905.286 437,699.978 JPM Global Capital Preservation (USD) D (acc) - USD 223,365.250 208,530.159 241,203.533 190,691.876 JPM Global Capital Preservation (USD) X (acc) - USD 8,334.239-2,071.126 6,263.113 JPMorgan Investment Funds - Global Enhanced Bond Fund JPM Global Enhanced Bond A (acc) - EUR 962,963.395 177,724.254 936,581.343 204,106.306 JPM Global Enhanced Bond A (inc) - EUR 103.392 15.990 64.664 54.718 JPM Global Enhanced Bond B (acc) - EUR 4,319.054 - - 4,319.054 JPM Global Enhanced Bond C (acc) - EUR 178,091.773 4.291 111,392.069 66,703.995 JPM Global Enhanced Bond D (acc) - EUR 154,361.824 12,432.660 117,086.917 49,707.567 JPM Global Enhanced Bond X (acc) - EUR 55,673.842 16.591 53,617.716 2,072.717 JPMorgan Investment Funds - Global Financials Fund JPM Global Financials A (acc) - USD 963,261.037 952,725.752 1,000,133.638 915,853.151 JPM Global Financials A (acc) - EUR 20,154.980 60,040.938 51,142.256 29,053.662 JPM Global Financials A (dist) - USD 330.357 10,638.494 3,109.711 7,859.140 JPM Global Financials B (acc) - USD 18,900.924 252,603.060 262,597.658 8,906.326 JPM Global Financials C (acc) - USD 18,804.000 1,197,420.787 605,567.025 610,657.762 JPM Global Financials D (acc) - USD 82,008.484 59,635.746 73,817.118 67,827.112 JPM Global Financials X (acc) - USD 11,518.658 2,579.960 3,160.000 10,938.618 JPMorgan Investment Funds - Global Short Duration Fund JPM Global Short Duration A (acc) - USD 368,623.811 7,602.041 362,707.714 13,518.138 JPM Global Short Duration B (acc) - USD* 92,944.753-92,944.753 - JPM Global Short Duration C (acc) - USD 322,811.321 1,200.000 98,480.814 225,530.507 JPM Global Short Duration D (acc) - USD 21,651.558 18,014.900 28,818.650 10,847.808 JPM Global Short Duration X (acc) - USD* 689,535.523 5,385.923 694,921.446 - JPMorgan Investment Funds - Highbridge Statistical Neutral Fund JPM Highbridge Statistical Neutral A (acc) - EUR 8,961,629.375 9,883,126.070 10,445,484.049 8,399,271.396 JPM Highbridge Statistical Neutral A (acc) - SEK (hedged) - 73,017.512 16,827.914 56,189.598 JPM Highbridge Statistical Neutral A (acc) - USD 290,093.538 509,052.492 541,283.509 257,862.521 JPM Highbridge Statistical Neutral A (acc) - USD (hedged) - 375,635.172 80,717.695 294,917.477 JPM Highbridge Statistical Neutral A (dist) - GBP 318,583.443 97,360.534 331,018.212 84,925.765 JPM Highbridge Statistical Neutral A (dist) - GBP (hedged) - 435,237.595 42,295.002 392,942.593 JPM Highbridge Statistical Neutral A (inc) - EUR 66,777.132 58,790.364 47,462.427 78,105.069 JPM Highbridge Statistical Neutral B (acc) - EUR 127,647.375 1,758,645.641 1,082,561.681 803,731.335 JPM Highbridge Statistical Neutral B (acc) - USD - 1,906.214-1,906.214 JPM Highbridge Statistical Neutral C (acc) - EUR 3,979,962.360 7,789,642.784 8,297,900.535 3,471,704.609 JPM Highbridge Statistical Neutral C (dist) - GBP (hedged) - 430,660.965 20,435.362 410,225.603 JPM Highbridge Statistical Neutral D (acc) - EUR 9,495,536.762 5,378,366.423 4,754,128.778 10,119,774.407 JPM Highbridge Statistical Neutral D (acc) - USD 13,146.401 117,624.742 84,139.228 46,631.915 JPM Highbridge Statistical Neutral D (acc) - USD (hedged) - 46,217.000 747.905 45,469.095 JPM Highbridge Statistical Neutral I (acc) - EUR 1,905,496.326 635,698.746 1,747,425.856 793,769.216 JPM Highbridge Statistical Neutral X (acc) - EUR 122,924.171 44,872.249 73,170.913 94,625.507 10

JPMorgan Investment Funds Statistical Information (continued) Asset per Share in Share Class Currency 31 December 2008 31 December 2007 31 December 200631 December 2005 31 December 2004 JPMorgan Investment Funds - Europe Select Equity Fund JPM Europe Select Equity A (acc) - EUR 521.40 976.84 1,004.83 823.64 643.38 JPM Europe Select Equity A (acc) - USD 76.43 148.73 - - - JPM Europe Select Equity A (dist) - EUR 58.41 110.63 113.81 - - JPM Europe Select Equity B (acc) - EUR 47.79 88.87 - - - JPM Europe Select Equity C (acc) - EUR 50.15 92.97 - - 632.18 JPM Europe Select Equity D (acc) - EUR 48.94 92.38 - - - JPM Europe Select Equity D (acc) - USD 75.85 148.71 - - - JPM Europe Select Equity X (acc) - EUR 67.52 124.30 125.61 101.18 77.72 JPM Europe Select Equity X (acc) - EUR (hedged) 57.97 98.70 - - - JPMorgan Investment Funds - Europe Select Mega Cap Fund JPM Europe Select Mega Cap A (acc) - EUR 82.64 158.17 162.30 138.96 112.02 JPM Europe Select Mega Cap A (dist) - EUR 55.85 108.27 111.71 - - JPM Europe Select Mega Cap B (acc) - EUR 72.66 138.02 140.76 119.80 96.08 JPM Europe Select Mega Cap C (acc) - EUR 72.53 137.36 139.48 118.18 94.29 JPM Europe Select Mega Cap D (acc) - EUR 46.58 89.83 92.87 80.11 65.12 JPM Europe Select Mega Cap X (acc) - EUR 65.68 123.50 124.52 104.77 83.03 JPMorgan Investment Funds - Global Balanced Fund (USD) JF Global Balanced (USD) A (acc) - USD 134.47 165.13 151.18 135.14 126.94 JPM Global Balanced (USD) A (acc) - USD 140.70 172.70 158.03 141.19 132.48 JPM Global Balanced (USD) A (dist) - USD 91.32 116.85 107.99 - - JPM Global Balanced (USD) B (acc) - USD 147.61 180.08 163.89 145.62 135.97 JPM Global Balanced (USD) C (acc) - USD 130.21 158.62 144.06 127.67 118.94 JPM Global Balanced (USD) D (acc) - USD 120.17 148.24 136.33 122.41 115.50 JPM Global Balanced (USD) X (acc) - USD 165.00 199.38 179.65 158.03 146.05 JPM Global Balanced (USD) X (inc) - USD* - - - 125.13 118.79 JPMorgan Investment Funds - Global Bond Fund (USD) JF Global Bond (USD) A (acc) - USD 87.87 113.11 112.38 109.25 105.14 JPM Global Bond (USD) A (acc) - USD 120.78 155.15 153.84 149.27 143.36 JPM Global Bond (USD) B (acc) - USD 124.84 159.89 158.14 153.07 146.65 JPM Global Bond (USD) C (acc) - USD 120.53 154.16 152.15 146.94 140.44 JPM Global Bond (USD) D (acc) - USD 93.45 120.54 119.99 116.88 112.70 JPM Global Bond (USD) X (acc) - USD 121.31 154.43 151.73 145.90 138.82 JPMorgan Investment Funds - Global Capital Preservation Fund (USD) JPM Global Capital Preservation (USD) A (acc) - USD 106.87 115.19 107.01 100.60 - JPM Global Capital Preservation (USD) B (acc) - USD* - - 105.85 - - JPM Global Capital Preservation (USD) C (acc) - USD* - - 106.40 - - JPM Global Capital Preservation (USD) D (acc) - USD 105.45 114.18 106.51 100.56 - JPM Global Capital Preservation (USD) X (acc) - USD 108.97 115.87 106.28 - - JPMorgan Investment Funds - Global Enhanced Bond Fund JPM Global Enhanced Bond A (acc) - EUR 95.22 125.09 129.50 127.90 125.26 JPM Global Enhanced Bond A (inc) - EUR 71.38 97.83 103.57 - - JPM Global Enhanced Bond B (acc) - EUR 95.68 125.25 129.28 127.63 124.63 JPM Global Enhanced Bond C (acc) - EUR 105.63 138.06 142.18 140.08 136.48 JPM Global Enhanced Bond D (acc) - EUR 91.90 121.09 125.74 124.89 122.68 JPM Global Enhanced Bond X (acc) - EUR 110.18 143.35 146.91 144.02 139.60 JPM Global Enhanced Bond X (inc) - EUR* - - 94.25 98.21 98.55 JPMorgan Investment Funds - Global Financials Fund JPM Global Financials A (acc) - USD 69.22 157.72 167.74 136.94 121.24 JPM Global Financials A (acc) - EUR 31.96 69.27 82.11 - - JPM Global Financials A (dist) - USD 44.45 102.89 109.34 - - JPM Global Financials B (acc) - USD 4.23 9.55 - - - JPM Global Financials C (acc) - USD 72.36 163.47 172.29 139.39 122.25 JPM Global Financials D (acc) - USD 71.50 164.58 176.78 145.78 130.35 JPM Global Financials X (acc) - USD 109.61 245.50 256.60 205.87 179.02 JPMorgan Investment Funds - Global Short Duration Fund JPM Global Short Duration A (acc) - USD 97.32 111.30 107.56 103.11 101.10 JPM Global Short Duration B (acc) - USD* - 112.58 108.53 103.80 101.52 JPM Global Short Duration C (acc) - USD 99.41 113.29 109.09 104.21 101.77 JPM Global Short Duration D (acc) - USD 94.95 109.03 105.79 101.80 100.20 JPM Global Short Duration X (acc) - USD* - 115.22 110.56 105.26 102.43 12

JPMorgan Investment Funds Statistical Information (continued) Asset per Share in Share Class Currency 31 December 2008 31 December 2007 31 December 200631 December 2005 31 December 2004 JPMorgan Investment Funds - Highbridge Statistical Neutral Fund JPM Highbridge Statistical Neutral A (acc) - EUR 113.66 100.82 101.26 - - JPM Highbridge Statistical Neutral A (acc) - SEK (hedged) 980.43 - - - - JPM Highbridge Statistical Neutral A (acc) - USD 158.71 148.02 133.43 - - JPM Highbridge Statistical Neutral A (acc) - USD (hedged) 162.87 - - - - JPM Highbridge Statistical Neutral A (dist) - GBP 104.61 72.56 - - - JPM Highbridge Statistical Neutral A (dist) - GBP (hedged) 83. 10 - - - - JPM Highbridge Statistical Neutral A (inc) - EUR 107.62 96.63 - - - JPM Highbridge Statistical Neutral B (acc) - EUR 112.24 98.91 - - - JPM Highbridge Statistical Neutral B (acc) - USD** 145.87 - - - - JPM Highbridge Statistical Neutral C (acc) - EUR 113.35 100.00 - - - JPM Highbridge Statistical Neutral C (dist) - GBP (hedged) 83. 21 - - - - JPM Highbridge Statistical Neutral D (acc) - EUR 112.18 99.90 101.13 - - JPM Highbridge Statistical Neutral D (acc) - USD 156.68 146.73 133.30 - - JPM Highbridge Statistical Neutral D (acc) - USD (hedged) 151.48 - - - - JPM Highbridge Statistical Neutral I (acc) - EUR 114.98 101.41 100.88 - - JPM Highbridge Statistical Neutral X (acc) - EUR 117.30 102.52 101.18 - - JPMorgan Investment Funds - Japan 50 Equity Fund JPM Japan 50 Equity A (acc) - EUR 37.06 50.38 - - - JPM Japan 50 Equity A (acc) - JPY 7,366.31 13,054.58 10,294.20 - - JPM Japan 50 Equity A (dist) - JPY 5,029.89 8,913.79 - - - JPM Japan 50 Equity D (acc) - JPY 5,376.82 9,625.48 11,227.38 - - JPM Japan 50 Equity I (acc) - JPY 5,301.95 9,300.37 10,628.94 - - JPM Japan 50 Equity X (acc) - JPY 7,992.49 13,914.29 15,783.66 14,165.74 10,307.73 JPMorgan Investment Funds - Japan Behavioural Finance Equity Fund JPM Japan Behavioural Finance Equity A (acc) - EUR 43.67 61.97 - - - JPM Japan Behavioural Finance Equity A (acc) - USD 61.76 91.05 - - - JPM Japan Behavioural Finance Equity A (dist) - USD 58.30 85.99 - - - JPM Japan Behavioural Finance Equity C (acc) - USD 60.46 88.27 - - - JPM Japan Behavioural Finance Equity D (acc) - EUR 43.28 61.63 - - - JPM Japan Behavioural Finance Equity D (acc) - USD* - 90.54 - - - JPM Japan Behavioural Finance Equity I (inc) - EUR* - 61.21 - - - JPM Japan Behavioural Finance Equity X (acc) - USD 62.35 90.31 - - - JPMorgan Investment Funds - JF Asia ex-japan Fund (1) JF Asia ex-japan A (acc) - USD 161.69 367.34 252.31 192.74 158.19 JF Asia ex-japan A (dist) - USD 71.49 164.02 115.53 - - JF Asia ex-japan B (acc) - USD 176.36 397.64 271.42 206.15 168.18 JF Asia ex-japan C (acc) - USD 166.17 374.09 254.67 192.86 156.69 JF Asia ex-japan D (acc) - USD 138.48 316.97 219.20 168.59 139.37 JF Asia ex-japan I (acc) - USD 86.80 195.26 132.87 - - JF Asia ex-japan X (acc) - USD 264.94 591.60 399.63 300.39 242.21 JPMorgan Investment Funds - US Bond Fund JPM US Bond A (acc) - USD 126.67 157.91 164.46 158.67 154.63 JPM US Bond A (inc) - USD 76.29 97.87 104.87 - - JPM US Bond B (acc) - USD 130.63 162.26 168.48 162.07 157.49 JPM US Bond C (acc) - USD 125.62 155.78 161.37 154.88 150.11 JPM US Bond D (acc) - USD 92.89 116.08 121.20 117.23 114.62 JPM US Bond X (acc) - USD* - 159.82 164.77 157.35 151.85 * Share Class inactive as at end the year. ** Share Class reactivated during the year. (1) This Sub-Fund changed its name from JF Asia Diversified Fund on 31 March 2008. The accompanying notes form an integral part these Financial Statements. 13