<PAGE> PAGE 1
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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 15
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SIGNATURE STEVE KEANE
TITLE ASST. GEN. COUNSEL
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
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<NAME> FTI FUNDS
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<NAME> FTI SMALL CAPITALIZATION FUND
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
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<CIK> 0001002191
<NAME> FTI FUNDS
<SERIES>
<NUMBER> 020
<NAME> FTI INTERNATIONAL EQUITY FUND
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<NET-ASSETS> 74,445,273
<DIVIDEND-INCOME> 880,254
<INTEREST-INCOME> 169,310
<OTHER-INCOME> 0
<EXPENSES-NET> 880,954
<NET-INVESTMENT-INCOME> 168,610
<REALIZED-GAINS-CURRENT> 373,175
<APPREC-INCREASE-CURRENT> 3,302,983
<NET-CHANGE-FROM-OPS> 3,844,768
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (469,709)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,741,492
<NUMBER-OF-SHARES-REDEEMED> (723,136)
<SHARES-REINVESTED> 8,057
<NET-CHANGE-IN-ASSETS> 33,575,772
<ACCUMULATED-NII-PRIOR> 179,233
<ACCUMULATED-GAINS-PRIOR> (1,231,385)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 635,839
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 945,703
<AVERAGE-NET-ASSETS> 63,583,841
<PER-SHARE-NAV-BEGIN> 12.200
<PER-SHARE-NII> 0.040
<PER-SHARE-GAIN-APPREC> 1.730
<PER-SHARE-DIVIDEND> (0.120)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 13.850
<EXPENSE-RATIO> 1.39
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
</TABLE>
Report of Independent Auditors
To the Shareholders and
Board of Trustees of
FTI Funds
In planning and performing our audit of the financial statements of FTI
Funds for the year ended November 30, 1998, we considered its internal
control, including control activities for safeguarding securities, in
order to determine our auditing procedures for the purpose of expressing
our opinion on the financial statements and to comply with the
requirements of Form N-SAR, and not to provide assurance on the internal
control.
The management of FTI Funds is responsible for establishing and
maintaining internal control. In fulfilling this responsibility,
estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally, controls
that are relevant to an audit pertain to the entity's objective of
preparing financial statements for external purposes that are fairly
presented in conformity with generally accepted accounting principles.
Those controls include the safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in internal control, errors or fraud may
occur and not be detected. Also, projection of any evaluation of
internal control to future periods is subject to the risk that it may
become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design or
operation of one or more of the specific internal control components
does not reduce to a relatively low level the risk that errors or fraud
in amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a timely
period by employees in the normal course of performing their assigned
functions. However, we noted no matters involving internal control and
its operation, including controls for safeguarding securities, that we
consider to be material weaknesses as defined above at November 30,
1998.
This report is intended solely for the information and use of the board
of trustees and management of FTI Funds and the Securities and Exchange
Commission and is not intended to be and should not be used by anyone
other than these specified parties.
Pittsburgh, Pennsylvania
January 20, 1999
