<PAGE> 1
INTRUST FUNDS TRUST
ANNUAL REPORT
FOR THE YEAR ENDED AUGUST 31, 1997
Kansas Tax-Exempt Bond Fund
- --------------------------------------------------------------------------------
Important Customer Information, Investment Products:
- - are not deposits or obligations of, or guaranteed by, INTRUST Bank, N.A. or
any of its affiliates,
- - are not insured by the FDIC, and
- - are subject to investment risk, including possible loss of the principal
amount invested.
- --------------------------------------------------------------------------------
This material must be accompanied or preceded by a prospectus.
INTRUST Funds Trust is distributed by BISYS Fund Services
<PAGE> 2
INTRUST Kansas Tax-Exempt Bond Fund August 31, 1997
To Our Shareholders:
We are pleased to present the first annual report since the inception
of the INTRUST Kansas Tax-Exempt Bond Fund in May 1997. The Fund commenced
operations following a conversion of assets from its predecessor, the SEI
Tax-Exempt Trust's Kansas Tax-Free Income Portfolio. We are excited by the
potential this conversion presents for our current and future shareholders.
We believe the Fund offers investors a number of unique attributes. For
example, as of August 31, 1997, the Fund:
- Was rated ***** by Morningstar, one of the mutual fund
industry's most-respected independent rating organizations.
The Fund was rated among 668 municipal funds for the 5 year
period ending September 30, 1997. This five-star rating
underscored the Fund's outstanding performance and relatively
modest risk.+ No other Kansas tax-exempt fund was rated as
highly.(1)
- Offered one of the highest income ratios and possessed the
lowest turnover ratio of any Kansas tax-exempt fund.(1)
- Provided a highly competitive total return with an average
maturity that was dramatically shorter than those of most
other Kansas tax-exempt funds. In general, a shorter portfolio
maturity can help reduce interest-rate risk.
- Had experienced strong investor inflows, resulting in a strong
surge in the amount of the Fund's assets under management.
Consequently, the Fund had grown to become one of the largest
municipal bond funds in Kansas.(1)
Despite these accomplishments, we have not forgotten that the key to
lasting growth lies in sustaining productive relationships with you, our valued
shareholders. We intend to build upon the successes of the past by maintaining
our commitment to shareholder service and satisfaction. We thank you for your
continued trust.
Sincerely,
/s/ John Maurer
John Maurer
Chief Investment Officer
(1) Morningstar, 1997.
+ The rating was for the five years ended September 30, 1997 and for the Fund's
overall performance. Morningstar proprietary ratings reflect historical,
risk-adjusted performance through 9/30/97. The ratings are subject to change
every month. Morningstar ratings are calculated from a fund's three-, five- and
10-year average annual returns (as available) in excess of 90-day Treasury bill
returns with appropriate fee adjustments, and a risk factor that reflects fund
performance below 90-day T-bill returns. Past performance is no guarantee of
future results. For the three year period the Fund received 4 stars and was
rated among 1374 funds.
10% of the funds receive 5 stars, 22.5% receive 4 stars.
INTRUST Bank provides investment advisory and other services to the Fund and
receives a fee for those services. This material is authorized for distribution
only when preceded or accompanied by a prospectus.
The Fund is distributed by BISYS Fund Services. Mutual funds are NOT INSURED BY
THE FDIC. There is no bank guarantee. Mutual funds may lose value. 10/97
<PAGE> 3
KANSAS TAX-EXEMPT BOND FUND
The INTRUST Kansas Tax-Exempt Bond Fund is managed by Michael Colgan, who has 13
years experience as an investment portfolio manager. Mr. Colgan holds a
bachelor's degree in Business Administration (with an emphasis in Finance) from
the University of Kansas.
OBJECTIVES. We concentrate on preserving capital while attempting to
produce the highest-available income that is free from both federal and Kansas
state income taxes. More than 99% of the income historically produced by our
portfolio also is exempt from the alternative minimum tax (AMT).+
STRATEGY. Nearly our entire portfolio is comprised of municipal bonds
issued by government entities in the state of Kansas. A small percentage of our
holdings can be in high-quality debt obligations issued in Puerto Rico or Guam -
which, as territories of the United States, can sell bonds that also are exempt
from federal and state income taxes. We keep the portfolio's average maturity
between seven and 12 years; we are permitted to lower the average maturity to
less than seven years if we anticipate a volatile interest-rate environment.
As of August 31, 1997, 95.2% of the portfolio was comprised of Kansas
bonds - with 4.3% and 0.5% invested in debt obligations from Puerto Rico and
Guam, respectively. The securities within the Fund maintained an average
credit quality of AA, with an average maturity of 10.37 years.*
PERFORMANCE. For the 12 months ended August 31, 1997, the INTRUST
Kansas Tax-Exempt Bond Fund produced a total return of 7.27%. In comparison, the
Lehman Brothers 7-Year General Obligation Index (the portfolio "benchmark") rose
7.91%.
During the last year, we steadily extended the Fund's average maturity,
to take advantage of what we felt would be stable or decreasing interest rates.
This decision worked out well, as interest rates declined, on a point-to-point
basis, from August 31, 1996 to August 31, 1997.
Looking forward, we anticipate that interest rates will continue to
decline, which should help boost the Fund's total return.
* The composition of the Fund's holdings is subject to change.
+ The Fund's income may be subject to certain state and local taxes and,
depending on your tax status the federal alternative minimum tax.
<PAGE> 4
GROWTH OF $10,000 INVESTMENT SINCE INCEPTION
--------------------------------------------
<TABLE>
<CAPTION>
INTRUST Kansas Tax-Exempt Lehman Brothers 7-Year
Bond Fund General Obligation Index
<S> <C> <C>
12/90 $ $
8/91
8/92
8/93
8/94
8/95
8/96
8/97
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
- ----------------------------
<TABLE>
<CAPTION>
Kansas Tax-Exempt Bond Fund L.B. - 7-Year General Obligation Index
---------------------------------------------------------------------
<S> <C> <C>
5 Year 6.06% 6.52%
- ------
1 Year 7.27% 7.91%
- ------
6.72% 8.47%
Since Inception (12/10/90)
- ---------------
</TABLE>
Past performance is no indication of future results. The total return set forth
may reflect the waiver of a portion of the Fund's fee for certain periods since
the inception date. In such instances, and without the waiver of fees, total
returns would have been lower.
The Fund's investment return and principal value will fluctuate, so that an
investor's shares, when redeemed, may be worth more than their original purchase
price.
On May 17, 1997, the Kansas Tax-Exempt Income Portfolio or (the SEI Portfolio)
of the SEI Tax-Exempt Trust was reorganized into the INTRUST Kansas Tax-Exept
Bond Fund (the Fund) using substantially the same investment objectives,
policies and methodologies of the SEI Portfolio. The quoted performance of the
Fund includes performance of the SEI Portfolio for periods dating back to
December 10, 1990, and prior to the Fund's commencement of operations, as
adjusted to reflect the expenses associated with the Fund. The performance also
reflects reinvestment of all dividends and capital gains distributions.
The Lehman Brothers 7-Year General Obligation Index is an unmanaged index
generally representative of intermediate-term municipal bonds. This index does
not reflect the deductions of expenses associated with a mutual fund, such as
investment management and fund accounting fees.
<PAGE> 5
THE INTRUST FUNDS
KANSAS TAX-EXEMPT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
AUGUST 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS (101.0%):
Guam (0.6%):
$200,000 Guam Government Limited Obligation Highway, Series A, 5.50%, 5/1/99, FSA $ 204,750
100,000 Guam Government Limited Obligation Highway, Series A, 6.30%, 5/1/12, 107,573
Callable 5/1/02 @ 102, FSA
250,000 Guam Government, Series A, 5.90%, 9/1/05, Callable 3/1/99 @ 100 253,750
------------------
566,073
------------------
Kansas (96.1%):
250,000 Anderson County, School District #365, GO, Series 1991, 6.40%, 9/1/05, 261,250
Prerefunded 9/1/99 @ 100, AMBAC
250,000 Anderson County, School District #365, GO, Series 1991, 6.50%, 9/1/06, 261,562
Prerefunded 9/1/99 @ 100, AMBAC
1,390,000 Barton County, School District #428, Great Bend, GO, Series A, 5.30%, 9/1/15, 1,391,737
Callable 9/1/06 @ 100
150,000 Belleville, Electric & Gas Systems Revenue, Series A, 5.00%, 12/1/98 151,500
175,000 Belleville, Electric & Gas Systems Revenue, Series A, 5.50%, 12/1/02 183,750
150,000 Belleville, Electric & Gas Systems Revenue, Series A, 5.70%, 12/1/04, 158,250
Callable 12/1/02 @ 101
250,000 Blue Valley, Recreation Commission, Series 1991, 6.00%, 10/1/97 250,317
195,000 Bourbon County, School District #234, GO, Series B, 5.50%, 9/1/09, 201,580
Callable 9/1/06 @ 100, FSA
215,000 Bourbon County, School District #234, GO, Series B, 5.60%, 9/1/10, 220,643
Callable 9/1/06 @ 100, FSA
285,000 Bourbon County, School District #234, GO, Series B, 5.63%, 9/1/11, 292,125
Callable 9/1/06 @ 100, FSA
500,000 Brown County, Horton School District #430, GO, 5.38%, 9/1/13, 508,125
Callable 9/1/06 @ 100, FSA
250,000 Butler County, School District #402, GO, 4.15%, 10/1/01, FSA 246,875
250,000 Butler County, School District #402, GO, 4.30%, 10/1/02, FSA 247,188
500,000 Butler County, School District #402, GO, 5.25%, 10/1/12, 503,750
Callable 4/1/04 @ 100, FSA
200,000 Cherokee County, School District #499, GO, 5.80%, 10/1/09, 208,750
Callable 10/1/02 @ 100, AMBAC
215,000 Cherokee County, School District #499, GO, 5.90%, 10/1/10, 224,405
Callable 10/1/02 @ 100, AMBAC
225,000 Cherokee County, School District #499, GO, 5.95%, 10/1/11, 234,843
Callable 10/1/02 @ 100, AMBAC
285,000 City Of Arkansas, GO, 3.80%, 12/1/99 277,519
250,000 Clay County, GO, Series B, 6.20%, 10/1/15 258,750
250,000 Clay County, School District #379, Series 1992, 5.30%, 4/1/00, 254,688
Callable 4/1/99 @100
250,000 Clay County, School District #379, Series 1992, 5.40%, 4/1/01, 254,063
Callable 4/1/99 @100
250,000 Coffeyville, Community College, COP, 5.875%, 10/1/14, 257,500
Callable 10/1/04 @ 100
465,000 Coffeyville, Water & Sewer Revenue, 4.60%, 10/1/04, 462,675
Callable 10/1/97 @ 102, AMBAC
490,000 Coffeyville, Water & Sewer Revenue, 4.70%, 10/1/05, 487,550
Callable 10/1/97 @ 102, AMBAC
500,000 Cowley County, School District #470, GO, 5.45%, 12/1/12, 511,250
Callable 12/1/06 @ 100, FGIC
250,000 Cowley County, School District #465, GO, Series 1991, 6.00%, 11/1/97 250,705
250,000 Decatur County, GO, Series 1992, 6.00%, 9/1/01, 258,750
Callable 9/1/99 @ 100
265,000 Dickinson County, Abilene School District #435, GO, Series 1992, 5.40%, 4/1/01, 267,650
Callable 4/1/99 @100
300,000 Dickinson County, Abilene School District #435, GO, Series 1992, 5.60%, 4/1/03, 301,875
Callable 4/1/99 @100
700,000 Dodge, Pollution Control Revenue, 6.63%, 5/1/05, 770,875
Private Placement
180,000 Dodge, School District #443, GO, 4.70%, 3/1/07, 175,725
Callable 3/1/04 @ 100, FSA
</TABLE>
CONTINUED
<PAGE> 6
THE INTRUST FUNDS
KANSAS TAX-EXEMPT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
AUGUST 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED:
KANSAS, CONTINUED:
$360,000 Dodge, School District #443, GO, 4.80%, 3/1/08, $ 353,700
Callable 3/1/04 @ 100, FSA
250,000 Dodge, School District #443, GO, 5.00%, 3/1/14, 243,437
Callable 3/1/04 @ 100, FSA
600,000 Douglas County, School District #497, GO, Series A, 5.40%, 9/1/15, 607,500
Callable 9/1/06 @ 100
250,000 Douglas County, School District #497, GO, Series 1993 A, 4.50%, 9/1/02, 250,312
Callable 9/1/01 @ 100
230,000 El Dorado, Water Utility System Revenue, 4.40%, 10/1/02 227,988
305,000 El Dorado, Water Utility System Revenue, 4.45%, 10/1/03 301,950
350,000 El Dorado, Water Utility System Revenue, 4.65%, 10/1/05 346,063
275,000 El Dorado, Water Utility System Revenue, 4.70%, 10/1/06, 271,906
Callable 10/1/05 @ 100
200,000 El Dorado, Water Utility System Revenue, 4.75%, 10/1/07, 197,500
Callable 10/1/05 @ 100
500,000 Ellsworth County, School District #328, GO, 5.25%, 9/1/15, 500,625
Callable 9/1/06 @ 100, FSA
155,000 Emporia, GO, Series B, 5.15%, 9/1/00 159,262
165,000 Emporia, GO, Series B, 5.25%, 9/1/01 171,806
175,000 Emporia, GO, Series B, 6.00%, 9/1/06, 185,281
Callable 9/1/02 @ 100
300,000 Emporia, Sewer System Revenue, 7.10%, 6/1/04, Prerefunded 6/1/98 @ 100.5 308,603
185,000 Finney County, School District #457, GO, 5.50%, 10/1/99 189,625
250,000 Finney County, School District #457, GO, 5.55%, 10/1/00 259,375
500,000 Finney County, School District #457, GO, Series 1991, 5.70%, 10/1/98, 505,620
Callable 4/1/98 @101
275,000 Ford County, Single Family Mortgage Revenue, Series A, 7.90%, 295,625
8/1/10, Callable 8/1/02 @ 103, FHA
330,000 Franklin County, GO, Series B, 4.75%, 9/1/05, 327,937
Callable 9/1/03 @100
230,000 Franklin County, School District #290, GO, 5.20%, 9/1/13, 231,725
Callable 9/1/06 @ 100, FSA
500,000 Franklin County, School District #290, GO, 5.25%, 9/1/14, 503,750
Callable 9/1/06 @ 100, FSA
335,000 Franklin County, School District #290, GO, 5.30%, 9/1/16, 335,837
Callable 9/1/06 @ 100, FSA
250,000 Garden City, GO, Series B, 4.90%, 11/1/99, MBIA 254,062
250,000 Garden City, GO, Series B, 5.45%, 11/1/04, 264,063
Callable 11/1/03 @100, MBIA
125,000 Garden City, Water & Sewer Revenue, Series 1991, 6.50%, 11/1/00 133,750
125,000 Garden City, Water & Sewer Revenue, Series 1991, 6.75%, 11/1/03, 133,906
Callable 11/1/00 @ 100
500,000 Gardner, Electric Utilities Revenue, 7.00%, 11/1/09, 530,625
Callable 11/1/01 @ 101
330,000 Gardner, GO, 5.30%, 9/1/11, 334,125
Callable 9/1/02 @ 100, AMBAC
560,000 Gove County, GO, 5.15%, 4/1/12, 550,200
Callable 10/1/01 @101, AMBAC
100,000 Gray County, School District #102, GO, 6.00%, 9/1/04 105,750
125,000 Gray County, School District #102, GO, 6.20%, 9/1/06, 134,530
Callable 9/1/05 @ 100
250,000 Gray County, School District #102, GO, 6.80%, 9/1/15, 269,375
Callable 9/1/05 @ 100
240,000 Halstead, Hospital Revenue, 6.75%, 10/1/06, 263,700
Callable 10/30/97 @ 100
500,000 Harvey County, School District #373, GO, 5.55%, 9/1/13, 508,750
Callable 9/1/05 @ 100, FSA
250,000 Hays, GO, Series A, 5.15%, 9/1/09, 252,188
Callable 9/1/03 @ 100, FGIC
250,000 Hays, GO, Series A, 5.25%, 9/1/10, 254,062
Callable 9/1/03 @ 100, FGIC
105,000 Hays, Internal Improvement, GO, Series A, 5.20%, 9/1/01 108,805
</TABLE>
CONTINUED
<PAGE> 7
THE INTRUST FUNDS
KANSAS TAX-EXEMPT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
AUGUST 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED:
KANSAS, CONTINUED:
$110,000 Hays, Internal Improvement, GO, Series A, 5.30%, 9/1/02, $ 113,438
Callable 9/1/01 @ 100
120,000 Hays, Internal Improvement, GO, Series A, 5.50%, 9/1/04, 123,750
Callable 9/1/01 @ 100
260,000 Hays, Water & Sewer Revenue, 5.20%, 9/1/11, 260,000
Callable 9/1/03 @ 100, MBIA
100,000 Hays, Water & Sewer Revenue, 5.60%, 9/1/99, AMBAC 103,000
100,000 Hays, Water & Sewer Revenue, 5.80%, 9/1/00, AMBAC 104,500
100,000 Hays, Water & Sewer Revenue, 6.20%, 9/1/03, 105,625
Prerefunded 9/1/00 @ 100, AMBAC
180,000 Hays, Water & Sewer Revenue, 6.40%, 9/1/05, 191,025
Prerefunded 9/1/00 @ 100, AMBAC
150,000 Holton, Electric System Revenue, Series 1992 A, 6.40%, 12/1/06, 161,438
Prerefunded 12/1/01 @ 100
150,000 Holton, Electric System Revenue, Series 1992 A, 6.50%, 12/1/07, 162,000
Prerefunded 12/1/01 @ 100
125,000 Hutchinson, GO, Series A, 5.45%, 10/1/14, Callable 10/1/05 @ 100 126,719
135,000 Hutchinson, GO, Series A, 5.50%, 10/1/15, 136,350
Callable 10/1/05 @ 100
150,000 Hutchinson, Water & Sewer Revenue, Series 93, 6.85%, 12/1/05, AMBAC 171,375
225,000 Hutchinson, Water & Sewer Revenue, Series 93, 5.00%, 12/1/11, 220,781
Callable 12/1/03 @ 102, AMBAC
205,000 Jackson County, School District #336, GO, 6.20%, 10/1/07, 223,450
Prerefunded 10/1/03 @ 100
125,000 Jackson County, School District #336, GO, 6.30%, 10/1/08, 136,875
Prerefunded 10/1/03 @ 100
300,000 Jefferson County, School District #340, GO, 6.00%, 9/1/06, 325,875
Callable 9/1/04 @ 100, FSA
320,000 Jefferson County, School District #340, GO, 6.10%, 9/1/07, 349,600
Callable 9/1/04 @ 100, FSA
330,000 Jefferson County, School District #340, GO, 6.20%, 9/1/08, 362,175
Callable 9/1/04 @ 100, FSA
350,000 Johnson & Miami Counties, School District #230, GO, 5.25%, 12/1/05, 360,500
Callable 12/1/03 @100
1,000,000 Johnson County, GO, 6.80%, 9/1/99 1,052,500
200,000 Johnson County, GO, Series A, 5.60%, 9/1/03, 211,750
Callable 9/1/02 @ 101
250,000 Johnson County, School District #229, GO, Series A, 5.00%, 10/1/14, 243,750
Callable 10/1/05 @100
300,000 Johnson County, School District #229, GO, Series A, 6.50%, 10/1/12, 324,000
Callable 10/1/01 @ 100
1,050,000 Johnson County, School District #232, GO, 5.40%, 9/1/14, 1,068,375
Callable 9/1/07 @ 100
485,000 Johnson County, School District #233, GO, 5.65%, 9/1/03, 512,887
Callable 3/1/02 @ 101
500,000 Johnson County, School District #233, GO, 5.95%, 9/1/05, 530,625
Callable 3/1/02 @ 101, AMBAC
250,000 Johnson County, Water District #001 Revenue Bond, Series 1990 A, 6.80%, 6/1/99 260,625
250,000 Johnson County, Water District #001 Revenue Bond, Series 1990 A, 6.90%, 12/1/00 270,313
250,000 Johnson County, Water District #001 Revenue Bond, Series A, 6.10%, 12/1/16, 256,563
Callable 12/1/01 @ 100
550,000 Johnson County, School District #512, GO, 5.30%, 10/1/14, 554,125
Callable 10/1/05 @ 100
500,000 Johnson County, School District #512, GO, Series B, 5.25%, 10/1/17, 490,000
Callable 10/1/06 @ 100
250,000 Johnson County, Water District #001 Revenue Bond, 5.13%, 12/1/08, 254,063
Callable 12/1/03 @ 100
500,000 Johnson County, Water District #001 Revenue Bond, 5.25%, 12/1/15, 490,750
Callable 12/1/03 @ 100
265,000 Johnson County, Water District #001 Revenue Bond, 5.30%, 12/1/12, 265,994
Callable 12/1/03 @100
</TABLE>
CONTINUED
<PAGE> 8
THE INTRUST FUNDS
KANSAS TAX-EXEMPT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
AUGUST 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED:
KANSAS, CONTINUED:
$515,000 Junction City, GO, Series DD, 6.20%, 9/1/06, $ 537,530
Callable 9/1/00 @ 100
130,000 Junction City, Industrial Revenue, F.W. Woolworth Company Project - 130,684
Series B, 7.25%, 11/1/98
205,000 Junction City, Water Revenue, Series A, 4.90%, 4/1/01 208,588
210,000 Junction City, Water Revenue, Series A, 4.90%, 10/1/01 214,725
205,000 Kansas City, Community College Revenue Bond, 6.00%, 5/15/10, 218,838
Prerefunded 5/15/02 @ 100, MBIA
215,000 Kansas City, Community College Revenue Bond, 6.13%, 5/15/11, 230,588
Prerefunded 5/15/02 @ 100, MBIA
230,000 Kansas City, Community College Revenue Bond, 6.13%, 5/15/12, 246,675
Prerefunded 5/15/02 @ 100, MBIA
500,000 Kansas City, SO, 5.50%, 2/15/99 510,625
340,000 Kansas City, GO, 5.45%, 4/1/17, 340,850
Callable 10/1/06 @100
450,000 Kansas City, GO, 5.45%, 10/1/17, 451,125
Callable 10/1/06 @ 100
1,500,000 Kansas City, GO, Series B, 5.38%, 9/1/10, 1,541,250
Callable 9/1/05 @ 100, MBIA
500,000 Kansas City, Pollution Control Revenue, General Motors Corp., 5.45%, 4/1/06, 509,375
Callable 10/1/99 @ 101
250,000 Kingman, Electric Utility & Distribution System Revenue, 5.50%, 9/1/08, 251,250
Callable 9/1/00 @ 100
250,000 Kingman, Water & Sewer Utility & Distribution System Revenue, 6.13%, 9/1/15, 260,000
Callable 9/1/03 @ 100
175,000 Lawrence, GO, Series L, 5.60%, 9/1/98 178,223
220,000 Lawrence, GO, Series P, 5.10%, 9/1/01, 224,675
Callable 9/1/00 @ 100
500,000 Lawrence, Sales Tax, GO, Series V, 5.50%, 9/1/12, 511,250
Callable 9/1/04 @ 100
320,000 Lawrence, Water & Sewer System Revenue, 5.10%, 11/1/12, 315,200
Callable 11/1/06 @100
250,000 Lawrence, Water & Sewer System Revenue, 5.20%, 11/1/16, 244,375
Callable 11/1/06 @100
505,000 Lawrence, Water & Sewer System Revenue, 5.25%, 11/1/15, 503,738
Callable 11/1/06 @ 100
315,000 Lawrence, Water & Sewer System Revenue, 5.30%, 11/1/07, 324,056
Callable 11/1/05 @ 100
395,000 Lawrence, Water & Sewer System Revenue, 5.70%, 11/1/11, 405,863
Callable 11/1/05 @ 100
340,000 Leavenworth County, School District #469, GO, 4.60%, 9/1/05 337,875
150,000 Leavenworth County, School District #449, GO, Series A, 6.30%, 9/1/09, 156,562
Callable 9/1/03 @ 100
160,000 Leavenworth County, School District #449, GO, Series A, 6.40%, 9/1/10, 167,600
Callable 9/1/03 @ 100
125,000 Leavenworth County, School District #449, GO, Series A, 6.50%, 9/1/12, 131,093
Callable 9/1/03 @ 100
100,000 Leavenworth County, School District #449, GO, Series A, 6.50%, 9/1/13, 104,875
Callable 9/1/03 @ 100
210,000 Leavenworth, GO, Series B, 5.05%, 9/1/00 214,463
415,000 Leavenworth Hospital Revenue, 6.13%, 4/1/15, 419,669
Callable 4/1/07 @ 100
300,000 Leawood, GO, Series A, 5.00%, 9/1/00 307,125
250,000 Leawood, GO, Series A, 5.00%, 9/1/15, 244,375
Callable 9/1/06 @ 100
250,000 Leawood, GO, Series A, 5.20%, 9/1/01, 256,562
Callable 9/1/00 @ 100
400,000 Leawood, GO, Series B, 5.00%, 9/1/10, 396,000
Callable 9/1/06 @ 100
135,000 Leawood, GO, Series B, 6.00%, 9/1/08, 141,243
Prerefunded 9/1/00 @ 100
</TABLE>
CONTINUED
<PAGE> 9
THE INTRUST FUNDS
KANSAS TAX-EXEMPT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
AUGUST 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED:
KANSAS, CONTINUED:
$250,000 Leawood, GO, Series A, 5.25%, 9/1/09, $ 256,875
Callable 9/1/06 @ 100
250,000 Leawood, GO, Series A, 5.35%, 9/1/10, 256,875
Callable 9/1/06 @ 100
375,000 Leawood, GO, Series A, 5.40%, 9/1/11, 385,313
Callable 9/1/06 @ 100
100,000 Lindsborg, Electric & Waterworks Systems Revenue, 5.00%, 10/1/05 103,750
105,000 Lindsborg, Electric & Waterworks Systems Revenue, 5.30%, 10/1/07, 108,675
Callable 10/1/05 @ 100
120,000 Lindsborg, Electric & Waterworks Systems Revenue, 5.60%, 10/1/09, 124,350
Callable 10/1/05 @ 100
115,000 Lyon County, Hospital Revenue, 5.20%, 2/1/02, 113,419
Callable 8/1/00 @ 100
250,000 Lyon County, Hospital Revenue, 5.20%, 8/1/02, 246,250
Callable 8/1/00 @ 100
100,000 Lyon County, Hospital Revenue, 5.30%, 2/1/03, 98,375
Callable 8/1/00 @ 100
650,000 Lyon County, School District #253, GO, 5.60%, 10/1/10, 660,562
Callable 10/1/03 @102
405,000 Manhattan, GO, 5.40%, 11/1/16, 406,013
Callable 11/1/04 @ 100
250,000 Manhattan, GO, Series 189, 5.85%, 11/1/02, 263,750
Callable 11/1/01 @ 100
100,000 Manhattan, GO, Series 189, 6.30%, 11/1/11, 107,375
Callable 11/1/01 @ 100
105,000 Manhattan, GO, Series 189, 6.30%, 11/1/12, 112,743
Callable 11/1/01 @ 100
660,000 Marion County, School District #411, GO, 5.30%, 4/1/13, 660,825
Callable 4/1/03 @ 101.5
250,000 McPherson County, School District #400, GO, 5.20%, 12/1/10, 253,750
Callable 12/1/05 @ 100, FGIC
250,000 McPherson County, School District #400, GO, 5.25%, 12/1/12, 252,187
Callable 12/1/05 @ 100, FGIC
550,000 McPherson, Electric Utility Revenue, 5.55%, 3/1/09, 556,188
Callable 3/1/00 @ 100, AMBAC
500,000 McPherson, GO, Series 116, 5.00%, 11/1/06, 501,875
Callable 11/1/99 @ 100, AMBAC
1,000,000 Meade, Industrial Revenue, 6.50%, 10/1/06, 1,123,750
Callable 10/1/03 @ 100
500,000 Miami County, School District #368, GO, 6.50%, 12/1/05, 539,375
Callable 6/1/02 @ 100, AMBAC
250,000 Miami County, School District #416, GO, 6.00%, 9/1/02, 261,875
Callable 9/1/00 @ 100, AMBAC
550,000 Miami County, School District, GO, Series A, 5.85%, 9/1/13, 573,375
Callable 9/1/04 @ 100, AMBAC
260,000 Montgomery County, School District #447, GO, 5.45%, 9/1/15, 262,275
Callable 9/1/06 @ 100
250,000 Montgomery County, School District #447, GO, 5.50%, 9/1/17, 250,313
Callable 9/1/06 @ 100
250,000 Nemaha County, School District #441, GO, 5.40%, 3/1/02, 256,563
Callable 3/1/01 @ 100, AMBAC
250,000 Nemaha County, School District #441, GO, 5.75%, 3/1/07, 257,500
Callable 3/1/01 @ 100, AMBAC
260,000 Neosho County, School District #413, GO, 5.65%, 9/1/01 272,025
110,000 Newton, Wastewater Treatment System Revenue, 5.75%, 3/1/99 112,613
115,000 Newton, Wastewater Treatment System Revenue, 6.00%, 3/1/00 119,456
120,000 Newton, Wastewater Treatment System Revenue, 6.20%, 3/1/01 126,600
130,000 Newton, Wastewater Treatment System Revenue, 6.40%, 3/1/02 139,750
145,000 Olathe, COP, Series B, 5.60%, 9/1/12, 147,355
Callable 9/1/06 @ 100
155,000 Olathe, COP, Series B, 5.65%, 9/1/13, 157,518
Callable 9/1/06 @ 100
</TABLE>
CONTINUED
<PAGE> 10
THE INTRUST FUNDS
KANSAS TAX-EXEMPT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
AUGUST 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED:
KANSAS, CONTINUED:
$165,000 Olathe, COP, Series B, 5.65%, 9/1/14, $ 167,680
Callable 9/1/06 @ 100
275,000 Olathe, GO, Series 184, 4.60%, 10/1/99 277,750
55,000 Olathe, Labette County Mortgage Loan Revenue, 7.15%, 2/1/15, 58,850
Callable 8/1/01 @ 103, GNMA
390,000 Olathe, Multifamily Housing Revenue, 5.50%, 6/1/04, FNMA 406,575
1,170,000 Olathe, Water & Sewer System Revenue, 5.20%, 7/1/12, 1,172,925
Callable 7/1/06 @ 100, AMBAC
135,000 Osborne, GO, Series 1992, 5.50%, 12/1/01, 136,519
Callable 12/1/98 @ 100
140,000 Osborne, GO, Series 1992, 5.60%, 12/1/02, 141,050
Callable 12/1/98 @ 100
150,000 Osborne, GO, Series 1992, 5.70%, 12/1/03, 151,125
Callable 12/1/98 @ 100
155,000 Osborne, GO, Series 1992, 5.80%, 12/1/04, 156,163
Callable 12/1/98 @ 100
250,000 Ottawa, Waterworks & Electric System Revenue, 6.15%, 12/1/00, MBIA 264,063
250,000 Ottawa, Waterworks & Electric System Revenue, 6.25%, 12/1/01, MBIA 268,438
255,000 Pawnee County, School District #495, GO, 5.10%, 9/1/04, 263,925
Callable 9/1/03 @ 100, FSA
100,000 Phillips County, School District #325, GO, 5.20%, 9/1/03, 103,500
Callable 9/1/02 @ 100
155,000 Phillips County, School District #325, GO, 5.60%, 9/1/07, 161,006
Callable 9/1/02 @ 100
110,000 Pittsburg, Water & Sewer System Revenue, 6.50%, 9/1/04, 114,950
Prerefunded 9/1/99 @ 100
105,000 Pittsburg, Water & Sewer System Revenue, Series A, 6.40%, 9/1/03, 109,594
Prerefunded 9/1/99 @ 100
500,000 Pottawatomie County, School District #320, GO, Series 1990, 6.60%, 10/1/02, 541,250
Callable 10/1/01 @ 100, AMBAC
635,000 Pratt, Electric System Revenue, 4.95%, 11/1/10, 625,475
Callable 11/1/05 @101
665,000 Pratt, Electric System Revenue, 5.00%, 11/1/11, 654,194
Callable 11/1/05 @101
250,000 Pratt, Electric System Revenue, 6.00%, 11/1/12, 262,813
Callable 11/1/00 @ 100, AMBAC
250,000 Pratt, Electric System Revenue, 6.60%, 11/1/07, 286,250
Callable 11/1/03 @ 100, AMBAC
685,000 Reno County, School District #308, GO, 6.25%, 8/1/00, 698,638
Callable 8/1/98 @ 100
175,000 Reno County Mortgage, Series 1991 B, 8.70%, 9/1/11, 188,780
Callable 9/1/01 @ 103
110,000 Riley County, GO, Series B, 6.10%, 9/1/06, 119,488
Callable 9/1/04 @ 100
110,000 Riley County, GO, Series B, 6.20%, 9/1/07, 120,313
Callable 9/1/04 @ 100
110,000 Riley County, GO, Series B, 6.30%, 9/1/08, 121,000
Callable 9/1/04 @ 100
110,000 Riley County, GO, Series B, 6.40%, 9/1/09, 120,313
Callable 9/1/04 @ 100
335,000 Riley County, School District #383, Series 1992, 5.00%, 11/1/98 336,983
400,000 Rural Water Finance Authority, District #13 Revenue Bond, Series F, 5.90%, 6/1/11, 408,500
Callable 6/1/01 @ 100
750,000 Salina Hospital Revenue, 5.30%, 10/1/13, 750,938
Callable 10/1/03 @100, AMBAC
100,000 Salina, Internal Improvement, Series P-240, 5.50%, 10/1/99 102,625
330,000 Salina, Water & Sewer Revenue, 5.00%, 9/1/07, 329,588
Callable 9/1/02 @ 100, MBIA
130,000 Scott City, Water System, Series A, 5.25%, 9/1/04, 131,788
Callable 9/1/02 @ 100
140,000 Scott City, Water System, Series A, 5.40%, 9/1/05, 142,100
Callable 9/1/02 @ 100
</TABLE>
CONTINUED
<PAGE> 11
THE INTRUST FUNDS
KANSAS TAX-EXEMPT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
AUGUST 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED:
KANSAS, CONTINUED:
$140,000 Scott City, Water System, Series A, 5.60%, 9/1/06, $ 142,100
Callable 9/1/02 @ 100
150,000 Scott City, Water System, Series A, 5.70%, 9/1/07, 153,563
Callable 9/1/02 @ 100
145,000 Scott City, Water System, Series A, 5.80%, 9/1/08, 149,169
Callable 9/1/02 @ 100
685,000 Scott County, School District #466, GO, Series 1993, 5.38%, 9/1/06, 691,850
Callable 9/1/01 @ 100
185,000 Sedgwick & Shawnee Counties, Series B-II, 7.80%, 5/1/14, 203,962
Callable 11/1/04 @ 103, GNMA
440,000 Sedgwick & Shawnee Counties, Single Family Revenue, Series B-1, 503,250
8.05%, 5/1/14, GNMA
90,000 Sedgwick & Shawnee Counties, Single Family Revenue, Series B-II, 93,938
5.25%, 11/1/04, GNMA
1,000,000 Sedgwick County, Airport Facility Revenue, 5.63%, 3/1/99 1,023,750
250,000 Sedgwick County, GO, Series B, 4.05%, 8/1/98 250,235
535,000 Sedgwick County, Mortgage Loan Revenue, Series A, 7.30%, 12/1/12, 570,444
Callable 9/1/01 @ 103, GNMA
650,000 Sedgwick County, School District #266, GO, 5.25%, 9/1/13, 654,063
Callable 9/1/02 @ 101, FGIC
100,000 Sedgwick County, School District #262, GO, Valley Center, 0.00%, 11/1/98, MBIA 95,375
250,000 Seward County, GO, Series B, 6.00%, 8/15/08, 258,750
Callable 8/15/01 @ 100, AMBAC
250,000 Seward County, GO, Series B, 6.00%, 8/15/13, 258,125
Callable 8/15/01 @ 100, AMBAC
500,000 Seward County, School District #480, GO, Series 1992, 5.00%, 12/1/00, 503,750
Callable 12/1/98 @ 100, MBIA
600,000 Seward County, School District #483, Kismet-Plains, GO, 5.20%, 10/1/12, 601,500
Callable 10/1/06 @ 100
285,000 Seward County, Single Family Mortgage Revenue, Series B, 8.00%, 5/1/11, 306,019
Callable 11/1/01 @ 103
500,000 Shawnee County, GO, Series 1992 C, 5.60%, 9/1/04, 521,250
Callable 9/1/02 @ 100
250,000 Shawnee County, GO, Series B, 5.50%, 9/1/09, 256,875
Callable 9/1/03 @ 100
250,000 Shawnee County, GO, Series B, 5.50%, 9/1/11, 255,000
Callable 9/1/03 @ 100
500,000 Shawnee County, Health Care Revenue, 5.15%, 8/15/10, 500,625
Callable 8/15/05 @ 100, FSA
230,000 Shawnee County, Revenue Bond, 4.70%, 12/1/04, 231,150
Callable 12/1/03 @ 102
360,000 Shawnee County, Revenue Bond, 5.00%, 12/1/10, 349,650
Callable 12/1/03 @ 102
250,000 Shawnee County, School District #345, GO, 7.20%, 9/1/98, MBIA 257,675
250,000 Shawnee County, School District #345, GO, 5.75%, 9/1/11, 259,455
Callable 9/1/04 @ 100, MBIA
250,000 Shawnee County, School District #437, Auburn-Washburn, GO, 5.25%, 9/1/11, 251,250
Callable 9/1/04 @ 100
350,000 Shawnee County, School District #437, Auburn-Washburn, GO, 5.25%, 9/1/12, 350,438
Callable 9/1/04 @ 100
175,000 Shawnee County, School District #437, Auburn-Washburn, GO, 5.25%, 9/1/13, 174,781
Callable 9/1/04 @ 100
700,000 Shawnee County, School District #437, Auburn-Washburn, GO, Series 1992, 755,125
6.25%, 3/1/03, Callable 3/1/02 @ 100
580,000 State Department of Transportation, Highway Revenue, 5.38%, 3/1/13 583,724
750,000 State Department of Transportation, Highway Revenue, Series 1992, 824,063
6.50%, 3/1/08, Prerefunded 3/1/02 @ 102
250,000 State Department of Transportation, Highway Revenue, Series 1993, 5.00%, 3/1/04, 258,125
Callable 3/1/03 @ 102
</TABLE>
CONTINUED
<PAGE> 12
THE INTRUST FUNDS
KANSAS TAX-EXEMPT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
AUGUST 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED:
KANSAS, CONTINUED:
$500,000 State Development Finance Authority, Health Facilities Revenue, Hays Medical $ 491,875
Center Inc., 5.38%, 11/15/16, Callable 11/15/07 @ 100, MBIA
500,000 State Development Finance Authority, Health Facilities Revenue, Hays Medical 495,625
Center Inc., 5.50%, 11/15/17, Callable 11/15/07 @ 100, MBIA
500,000 State Development Finance Authority, Health Facilities Revenue, St. Lukes 506,250
Shawnee Mission, 5.38%, 11/15/16, Callable 11/15/06 @ 100, MBIA
475,000 State Development Finance Authority, Health Facilities Revenue, Stormont 494,594
Health Care, 5.40%, 11/15/05, MBIA
500,000 State Development Finance Authority, Health Facilities Revenue, Stormont 518,750
Health Care, 5.75%, 11/15/10, Callable 11/15/06 @ 100, MBIA
500,000 State Development Finance Authority, Health Facilities Revenue, Stormont 516,495
Health Care, 5.80%, 11/15/16, Callable 11/15/06 @ 100, MBIA
355,000 State Development Finance Authority Revenue, 4.45%, 5/1/01 360,769
250,000 State Development Finance Authority Revenue, 5.13%, 6/1/06, 254,688
Callable 6/1/03 @ 102, AMBAC
120,000 State Development Finance Authority Revenue, 5.20%, 5/1/07, 124,950
Callable 5/1/04 @ 101, MBIA
135,000 State Development Finance Authority Revenue, 5.40%, 5/1/09, 140,400
Callable 5/1/04 @ 101, MBIA
100,000 State Development Finance Authority Revenue, 5.45%, 5/1/10, 104,375
Callable 5/1/04 @ 101, MBIA
100,000 State Development Finance Authority Revenue, 5.50%, 5/1/11, 104,375
Callable 5/1/04 @ 101, MBIA
1,000,000 State Development Finance Authority Revenue, 5.50%, 5/1/14, 1,015,000
Callable 5/1/07 @ 100
100,000 State Development Finance Authority Revenue, 5.55%, 5/1/12, 104,375
Callable 5/1/04 @ 101, MBIA
370,000 State Development Finance Authority Revenue, 5.75%, 5/1/14, 384,338
Callable 5/1/03 @ 102
250,000 State Development Finance Authority Revenue, Department of Corrections, El Dorado, 260,000
Project L, 5.63%, 2/1/03, Callable 2/1/00 @ 102, MBIA
500,000 State Development Finance Authority Revenue, Project K-II, 5.50%, 10/1/10, 508,750
Callable 10/1/01 @ 101
500,000 State Development Finance Authority Revenue, Project K-II, 5.60%, 10/1/11, 509,375
Callable 10/1/01 @ 101
500,000 State Development Finance Authority Revenue, Series J, 5.40%, 4/1/10, 512,500
Callable 4/1/05 @ 100
260,000 State Turnpike Authority Revenue Bond, 5.40%, 9/1/09, 265,525
Callable 9/1/03 @102, AMBAC
435,000 Sumner County, Bridge Improvement, GO, Series 1992, 6.00%, 11/1/04, 462,188
Callable 11/1/01 @ 100, AMBAC
250,000 Sumner County, Bridge Improvement, GO, Series 1992, 6.00%, 11/1/05, 265,625
Callable 11/1/01 @ 100, AMBAC
375,000 Sumner County, School District #357, Belle Plaine, GO, 5.55%, 9/1/13, 381,563
Callable 9/1/03 @ 100
150,000 Thomas County, School District #315, GO, Series 1993, 4.20%, 9/1/01, FSA 148,125
160,000 Thomas County, School District #315, GO, Series 1993, 4.30%, 9/1/02, FSA 158,200
165,000 Thomas County, School District #315, GO, Series 1993, 4.40%, 9/1/03, FSA 163,350
175,000 Thomas County, School District #315, GO, Series 1993, 4.60%, 9/1/04, FSA 173,906
500,000 Topeka, GO, Series A, 5.50%, 8/15/16, 503,125
Callable 8/15/01 @ 101
250,000 Topeka, GO, Series C, 5.50%, 8/15/05, 255,625
Callable 8/15/99 @ 101
500,000 Topeka, Hospital Revenue, 6.75%, 11/15/00, MBIA 537,500
250,000 Wellington, Electric Waterworks & Sewer Revenue, 7.05%, 5/1/06, 290,938
Callable 5/1/02 @ 100, AMBAC
250,000 Wellington, Electric Waterworks & Sewer Revenue, 6.25%, 5/1/12, 263,438
Callable 5/1/02 @ 100, AMBAC
565,000 Wichita, GO, 4.70%, 9/1/12, 538,869
Callable 9/1/04 @101
750,000 Wichita, GO, Series 746, 5.30%, 9/1/12, 758,438
Callable 9/1/04 @ 100
</TABLE>
CONTINUED
<PAGE> 13
THE INTRUST FUNDS
KANSAS TAX-EXEMPT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
AUGUST 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED:
KANSAS, CONTINUED:
$892,000 Wichita, Hospital Revenue, 6.00%, 7/1/04, $ 942,175
Callable 10/27/97 @ 100
660,000 Wichita, Multifamily Housing Revenue, 5.90%, 12/1/16, 675,675
Callable 12/1/05 @ 102
300,000 Wichita, Single Family Mortgage Revenue, Series A, 7.10%, 9/1/09, 320,250
Callable 3/1/03 @ 103
405,000 Wichita, Water & Sewer Utilities Revenue, 4.75%, 10/1/08, 398,419
Callable 10/1/04 @ 101, FGIC
900,000 Wichita, Water & Sewer Utilities Revenue, 4.88%, 10/1/09, 887,625
Callable 10/1/04 @ 101, FGIC
750,000 Wichita, Water & Sewer Utilities Revenue, 5.60%, 10/1/05, 774,375
Callable 10/1/00 @ 101, FGIC
100,000 Winfield, Sales Tax Revenue, 5.10%, 9/1/06, 101,000
Callable 9/1/03 @ 100
100,000 Winfield, Sales Tax Revenue, 5.25%, 9/1/07, 101,000
Callable 9/1/03 @ 100
100,000 Winfield, Sales Tax Revenue, 5.40%, 9/1/08, 101,250
Callable 9/1/03 @ 100
140,000 Wyandotte County, School District #203, Piper, GO, Series 1992, 5.75%, 9/1/03, 143,325
Callable 9/1/01 @ 100
295,000 Wyandotte County, School District #203, Piper, GO, Series 1992, 5.90%, 9/1/04, 302,006
Callable 9/1/01 @ 100
500,000 Wyandotte County, School District #203, Piper, GO, Series 1992, 6.60%, 9/1/13, 515,625
Callable 9/1/01 @ 100
-------------------
93,061,559
-------------------
Puerto Rico (4.3%):
500,000 Commonwealth Highway & Transportation Authority Revenue, Series X, 509,375
5.00%, 7/1/02
1,000,000 Electric Power Authority, 5.50%, 7/1/14, 1,015,000
Callable 7/1/05 @ 102, MBIA
1,000,000 Electric Power Authority Revenue, 6.13%, 7/1/09, MBIA 1,110,000
500,000 Public Buildings Authority, Public Education & Health Facilities Revenue, 503,750
6.00%, 7/1/12, Callable 7/1/99 @ 100
500,000 Public Buildings Authority, Public Education & Health Facilities Revenue, 511,875
Series M, 5.75%, 7/1/15, Callable 7/1/03 @ 101.5, AMBAC
475,000 Telecom Revenue, 5.25%, 1/1/05, Callable 1/1/03 @ 100 494,000
-------------------
4,144,000
-------------------
Total Municipal Bonds 97,771,632
-------------------
MONEY MARKET MUTUAL FUNDS (0.0%):
41,531 Provident Institutional Muni-Cash Fund, Tax-Free Money Market 41,531
-------------------
Total Money Market Mutual Funds 41,531
-------------------
Total (Cost-$ 95,349,216) (a) 97,813,163
===================
Percentages indicated are based on net assets of $ 96,779,907.
(a) Represents cost for federal income tax purposes and differs from value
by net unrealized appreciation of securities as follows (amounts in
thousands):
Unrealized appreciation . . . . . . . . . . . . . . $ 2,663,950
Unrealized depreciation . . . . . . . . . . . . . . $ ( 200,003)
--------------
Net unrealized appreciation $ 2,463,947
==============
</TABLE>
CONTINUED
<PAGE> 14
THE INTRUST FUNDS
KANSAS TAX-EXEMPT BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
AUGUST 31, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AMBAC Insured by American Municipal Bond Assurance Corporation
COP Certificate of Participation
FGIC Insured by Federal Guarantee Insurance Corp.
FHA Insured by Federal Housing Authority
FSA Insured by Federal Security Assurance
GNMA Insured by Government National Mortgage Association
GO General Obligation
MBIA Insured by Municipal Bond Insurance Association
</TABLE>
See notes to financial statements.
<PAGE> 15
THE INTRUST FUNDS
Statement of Assets and Liabilities
August 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Kansas Tax-
Exempt Bond
Fund
-----------
<S> <C>
ASSETS:
Investments, at value (cost $95,349,216) $97,813,163
Interest receivable 2,047,360
Prepaid expenses and other assets 58
-----------
Total Assets 99,860,581
-----------
LIABILITIES:
Income distribution payable 405,881
Payable to brokers for investments purchased 2,658,659
Accrued expenses and other payables:
Administration fees 810
Other 15,324
-----------
Total Liabilities 3,080,674
-----------
NET ASSETS:
Capital 94,176,562
Accumulated undistributed net realized gains
(losses) from investment transactions 139,398
Net unrealized appreciation (depreciation)
from investments 2,463,947
-----------
Net Assets $96,779,907
===========
Outstanding Units of Beneficial Interest (Shares): 9,082,969
===========
Net Asset Value :
Offering and redemption price per share $ 10.66
===========
</TABLE>
See notes to financial statements.
<PAGE> 16
THE INTRUST FUNDS
Statement of Operations
For the year ended August 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Kansas Tax-
Exempt Bond
Fund (a)
-----------
<S> <C>
INVESTMENT INCOME:
Interest income $ 4,304,037
Dividend income 51,865
-----------
Total Income 4,355,902
-----------
EXPENSES:
Investment advisory fees 241,317
Administration fees 133,773
Shareholder servicing fees 20,982
Custodian and accounting fees 30,162
Legal and audit fees 18,981
Trustees' fees and expenses 5,088
Transfer agent fees 4,339
Registration and filing fees 11,448
Printing costs 7,596
Other 21,522
-----------
Total expenses before waivers 495,208
Less waivers (326,205)
-----------
Net Expenses 169,003
-----------
Net Investment Income 4,186,899
-----------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains (losses) from investment
transactions 142,735
Net change in unrealized appreciation (depreciation)
from investments 1,312,942
-----------
Net realized/unrealized gains (losses)
from investments 1,455,677
-----------
Change in net assets
resulting from operations $ 5,642,576
===========
- ------
<FN>
(a) Formerly the Kansas Tax Free Income Portfolio of the SEI Tax-Exempt Trust.
See footnote 1 for further information.
</TABLE>
See notes to financial statements.
<PAGE> 17
THE INTRUST FUNDS
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Kansas Tax-Exempt
Bond Fund (a)
-------------------------------
Year ended Year ended
August 31, August 31,
1997 1996
------------ ------------
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 4,186,899 $ 3,578,839
Net realized gains (losses)
from investment transactions 142,735 131,814
Net change in unrealized appreciation (depreciation)
from investments 1,312,942 (902,765)
------------ ------------
Change in net assets resulting from operations 5,642,576 2,807,888
------------ ------------
Distributions to shareholders:
From net investment income (4,508,562) (3,543,885)
------------ ------------
Change in net assets from shareholder distributions (4,508,562) (3,543,885)
------------ ------------
Capital Transactions:
Proceeds from shares issued 31,077,025 18,206,336
Dividends reinvested 1,369 ---
Cost of shares redeemed (7,497,873) (11,238,647)
------------ ------------
Change in net assets from share transactions 23,580,521 6,967,689
------------ ------------
Change in net assets 24,714,535 6,231,692
Net Assets:
Beginning of period 72,065,372 65,833,680
------------ ------------
End of period $ 96,779,907 $ 72,065,372
============ ============
Share Transactions:
Issued 2,933,096 1,718,864
Reinvested 129 ---
Redeemed (707,944) (1,056,863)
============ ============
Change in shares 2,225,281 662,001
============ ============
Undistributed net investment income included in net assets:
End of period $ --- $ 321,663
- ----------
<FN>
(a) Formerly the Kansas Tax Free Income Portfolio of the SEI Tax-Exempt Trust.
See footnote 1 for further information.
</TABLE>
See notes to financial statements.
<PAGE> 18
THE INTRUST FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
KANSAS TAX-EXEMPT BOND FUND (A)
----------------------------------------------------------------------------
YEARS ENDED AUGUST 31,
----------------------------------------------------------------------------
1997 1996 1995 1994 1993
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 10.51 $ 10.63 $ 10.47 $ 10.91 $ 10.50
----------- ----------- ----------- ----------- -----------
INVESTMENT ACTIVITIES:
Net investment income 0.55 0.56 0.57 0.57 0.58
Net realized and unrealized gains (losses)
from investments 0.19 (0.12) 0.16 (0.42) 0.46
----------- ----------- ----------- ----------- -----------
Total from Investment Activities 0.74 0.44 0.73 0.15 1.04
----------- ----------- ----------- ----------- -----------
DISTRIBUTIONS:
Net investment income (0.59) (0.56) (0.57) (0.57) (0.58)
Net realized gains -- -- -- (0.02) (0.05)
----------- ----------- ----------- ----------- -----------
Total Distributions (0.59) (0.56) (0.57) (0.59) (0.63)
----------- ----------- ----------- ----------- -----------
NET ASSET VALUE,
END OF PERIOD $ 10.66 $ 10.51 $ 10.63 $ 10.47 $ 10.91
=========== =========== =========== =========== ===========
Total Return 7.27% 4.23% 7.23% 1.41% 10.38%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period $96,779,907 $72,065,372 $65,833,680 $62,346,379 $58,197,444
Ratio of expenses to
average net assets 0.21% 0.21% 0.21% 0.21% 0.21%
Ratio of net investment income
to average net assets 5.20% 5.31% 5.47% 5.36% 5.56%
Ratio of expenses to
average net assets * 0.62% 0.51% 0.51% 0.54% 0.51%
Ratio of net investment income
to average net assets * 4.79% 5.01% 5.17% 5.03% 5.26%
Portfolio turnover 8.78% 12.71% 17.60% 10.57% 23.04%
- -----------
<FN>
* During the period certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Formerly the Kansas Tax Free Income Portfolio of the SEI Tax-Exempt
Trust. See footnote 1 for further information.
</TABLE>
See notes to financial statements.
<PAGE> 19
THE INTRUST FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1997
- --------------------------------------------------------------------------------
1. ORGANIZATION:
The INTRUST Funds Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end, diversified
management investment company established as a Delaware business trust. The
Trust is authorized to offer two classes of shares: Institutional Service and
Institutional Premium. The Institutional Premium shares may be subject to
additional Shareholder Servicing fees. The Trust currently consists of six
active funds. The accompanying financial statements and financial highlights
are those of the Kansas Tax-Exempt Bond Fund (the Fund"). The Fund is
currently offered in the Institutional Service Class only.
The Kansas Tax-Exempt Bond Fund seeks to preserve capital while producing
current income for the investor that is exempt from both federal and Kansas
state income taxes. The financial statements of the Fund, including its
portfolio of investments, are included elsewhere in this report.
As approved by its shareholders at a special shareholders meeting held April
28, 1997, effective May 17, 1997, the Kansas Tax Free Income Portfolio (the
"SEI Fund") of the SEI Tax-Exempt Trust (the "SEI Trust") was reorganized
into the Fund as transacted by (a) the tax-free transfer of all the assets
and liabilities of the SEI Fund to the Fund in exchange for shares of the
Fund; (b) the distribution of the Fund's shares to shareholders of the SEI
Fund; and (c) the termination of the SEI Fund as a series of the SEI Trust.
The Fund retained the investment objectives and assumed the financial
reporting history of the SEI Fund.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Trust in preparation of its financial statements. The policies are in
conformity with generally accepted accounting principals. The preparation of
financial statements requires management to make estimates and assumptions
that effect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
SECURITY VALUATION
Investments in municipal bonds are valued at their market value determined on
the basis of the latest available bid prices in the principal market in which
such securities are normally traded or by an independent pricing service
approved by the Board of Trustees to value certain other securities. Such
prices reflect market values which may be established through the use of
electronic and matrix techniques.
REPURCHASE AGREEMENTS
The Fund may invest in repurchase agreements with any bank and broker-dealer
which in the opinion of the Trustees, presents a minimal risk of bankruptcy.
Each repurchase agreement is recorded at cost. The Fund requires that the
securities purchased in a repurchase agreement transaction be fully
collateralized and the value of the collateral, including accrued interest,
be marked to market daily. If the seller should default on its obligation to
repurchase the securities, the Fund may experience a loss of income from the
loaned securities and a decrease in the value of any collateral.
As of August 31, 1997 the Fund held no repurchase agreements.
-continued-
<PAGE> 20
THE INTRUST FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1997
- --------------------------------------------------------------------------------
SECURITIES LENDING
To generate additional income, the Fund may lend its portfolio securities in
an amount up to 33 % of the Fund's total assets pursuant to agreements
requiring that the loan be continuously secured by collateral maintained on a
daily mark-to-market basis in an amount at least equal to the current market
value of the securities loaned. As of August 31, 1997 the Fund had no
securities on loan.
SECURITY TRANSACTIONS AND RELATED INCOME
Security transactions are accounted for on a trade date basis. Net realized
gains or losses from sales of securities are determined on the specific
identification cost method. Interest income and expenses are recognized on
the accrual basis. Dividends are recorded on the ex-dividend date. Interest
income, including any discount or premium, is accrued as earned using the
effective interest method.
EXPENSES
Expenses directly attributable to the Fund are charged directly to the Fund,
while the expenses which are attributable to more than one fund of the Trust
are allocated among the respective Funds.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income for the Fund are declared daily and paid
monthly. Net realized capital gains, if any, are distributed at least
annually.
Distributions from net investment income and from net capital gains are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principals. These differences are primarily due
to differing treatments for expiring capital loss carryforwards and deferrals
of certain losses.
FEDERAL INCOME TAXES
The Trust treats the Fund as a separate entity for Federal income tax
purposes. The Fund intends to qualify as a regulated investment company by
complying with the provisions available to certain investment companies as
defined in applicable sections of the Internal Revenue Code, and to make
distributions from net investment income and from net realized capital gains
sufficient to relieve it from all, or substantially all, Federal income
taxes.
3. SHARES OF BENEFICIAL INTEREST:
The Trust has an unlimited number of shares of beneficial interest, with a
par value of $0.001, which may, without shareholder approval, be divided into
an unlimited number of series of such shares and any series may be classified
or reclassified into one or more classes. Currently, shares of the Trust are
authorized to be offered through six series and two classes: Institutional
Service and Institutional Premium. As of August 31, 1997, no shareholders
were in the Institutional Premium class. Shareholders are entitled to one
vote for each full share held and will vote in the aggregate and not by class
or series, except as otherwise expressly required by law or when the Board of
Trustees has determined that the matter to be voted on affects only the
interest of shareholders of a particular class or series.
-continued-
<PAGE> 21
THE INTRUST FUNDS
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1997
- --------------------------------------------------------------------------------
4. INVESTMENT ADVISORY, ADMINISTRATIVE, AND DISTRIBUTION AGREEMENTS:
The Trust and INTRUST Bank, N.A. (the "Adviser") are parties to an investment
advisory agreement under which the Adviser is entitled to receive an annual
fee, computed daily and paid monthly, equal to 0.30% of the Fund's average
net assets.
The Trust and BISYS Fund Services (the "Administrator") are parties to an
administrative services contract under which the Administrator provides
services for a fee that is computed daily and paid monthly, at an annual rate
of 0.20% of the Fund's average daily net assets. Prior to May 17, 1997,
administrative services were provided by SEI Fund Management at an annual
rate of 0.15%.
The Trust and BISYS Fund Services (the "Distributor") are parties to a
distribution agreement under which shares of the Fund are sold on a
continuous basis. Effective May 17, 1997, the Fund was subject to a
distribution plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act. As
provided under the Plan the Trust will pay the Distributor 0.25% per annum of
the average daily net assets of the Fund. The Fund will not incur any
distribution expenses during its first year of operation.
Other financial organizations also may provide administrative services for
the Fund, such as maintaining shareholder accounts and records. The Fund may
pay fees to Service Organizations in amounts up to an annual rate of 0.08% of
the daily net asset value of the Fund's shares owned by shareholders with
whom the Service Organizations has a servicing relationship. The
Institutional Premium Class may pay additional fees up to 0.50% of the daily
net asset value of the Fund's shares owned by shareholders with whom the
Service Organization has a servicing relationship.
The Adviser, the Administrator, the Distributor, and the Custodian have
voluntarily undertaken to waive a portion of their fees necessary to maintain
total annual operating expenses at no more than 0.21% per year of average
daily net assets. For the year ended August 31, 1997, fees in the following
amounts were waived:
<TABLE>
<CAPTION>
Investment Shareholder Custody
Advisory Fees Administration Services Fees Fees
Waived Fees Waived Waived Waived
------ ----------- ------ ------
<S> <C> <C> <C> <C>
Kansas Tax-Exempt Bond Fund $241,317 $58,661 $20,982 $5,245
</TABLE>
5. SECURITIES TRANSACTIONS:
The cost of security purchases and the proceeds from the sale of securities
(excluding short-term securities) during the year ended August 31,1997 were
as follows:
<TABLE>
<CAPTION>
Purchases Sales
--------- -----
<S> <C> <C>
Kansas Tax-Exempt Bond Fund $32,943,112 $6,970,437
</TABLE>
-continued-
<PAGE> 22
6. CONCENTRATION OF CREDIT RISK
The Fund invests in primarily debt obligations issued by Kansas and its
political subdivisions, agencies and public authorities to obtain funds for
various public purposes. The Fund is more susceptible to economic and
political factors adversely affecting issuers of Kansas' specific municipal
securities than are municipal bond funds that are not concentrated in these
issuers to the same extent.
7. FEDERAL TAX INFORMATION (UNAUDITED)
The Fund designated $4,503,401 in exempt-interest dividends for the taxable
year ended August 31, 1997.
-continued-
<PAGE> 23
Independent Auditors' Report
The Shareholders and Board of Trustees
INTRUST Funds Trust - Kansas Tax-Exempt Bond Fund:
We have audited the accompanying statement of assets and liabilities of INTRUST
Funds Trust - Kansas Tax-Exempt Bond Fund (formerly the SEI Tax Exempt Trust -
Kansas Tax Free Income Portfolio) (the Fund), including the schedule of
portfolio investments, as of August 31, 1997, and the related statement of
operations, statement of changes in net assets and the financial highlights for
the year then ended. These financial statements and the financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The accompanying statement of changes in net assets for the year ended
August 31, 1996 and the financial highlights for the four years ended August 31,
1996, were audited by other auditors whose report thereon dated October 11,1996
expressed an unqualified opinion on that statement and financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included verification of securities owned as of
August 31, 1997 by examination and other appropriate audit procedures. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe our audit provides a reasonable basis for our opinion.
In our opinion, the 1997 financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
INTRUST Funds Trust - Kansas Tax-Exempt Bond Fund at August 31, 1997, and the
results of its operations, the changes in its net assets and the financial
highlights for the year then ended, in conformity with generally accepted
accounting principles.
KPMG PEAT MARWICK LLP
Columbus, Ohio
October 10, 1997
