<PAGE> 1
Dear Shareholder:
We are pleased to present our first Semi-Annual Report since our inception as a
mutual fund family on January 20, 1997.
The INTRUST Funds Trust was created to help investors meet their investment
objectives by providing convenient, cost-effective access to premier investment
managers. INTRUST, as Investment Adviser, closely monitors and supervises the
activities and strategies of these sub-advisers to assure that each fund is
being managed in accordance with stated investment objectives.
Five funds with three different sub-advisers comprised the opening day INTRUST
Funds line-up.
The Money Market Fund, managed by INTRUST, as investment adviser and AMR
Investment Services, Inc., as subadviser, seeks to provide investors with a
competitive level of current income, liquidity and the maintenance of a stable
net asset value of $1.00. An investment in the fund is neither insured or
guaranteed by the U.S. Government. Yields will fluctuate, and there can be no
assurance that the fund will be able to maintain a stable NAV of $1.00 per
share. AMR is located in Fort Worth, Texas.
The Short-Term Bond and Intermediate Bond Funds, both managed by INTRUST, as
investment adviser, and Galliard Capital Management, Inc., as subadviser, were
established for investors seeking current income by investing in high-quality
fixed income securities. Galliard, a wholly-owned subsidiary of Norwest Bank
Minnesota, N.A. is located in Minneapolis, Minnesota.
The Stock Fund, managed by INTRUST, as investment adviser, and Ark Asset
Management, Inc., as subadviser, is available for investors seeking long-term
capital appreciation. Located in New York City, New York, ARK's predecessor was
established in 1929 as the private money management division of Lehman Brothers.
The International Multi-Manager Stock Fund seeks to provide investors with
long-term capital appreciation by investing in equities of issuers based outside
the United States. The fund invests all of its investable assets in the
International Equity Portfolio of the AMR Investment Services Trust. INTRUST is
the investment adviser and AMR provides close oversight of the fund's three
investment advisers: Hotchkis and Wiley, Morgan Stanley Asset Management, Inc.,
and Templeton Investment Counsel. International Investing involves increased
risk and volatility.
Net assets in the five INTRUST funds had grown to $211.3 million as of April
30, 1997.
The semi-annual report includes a Schedule of Portfolio Investments for each
fund.
If you have any questions about your investment in the INTRUST Funds, or would
like a prospectus or other information about any of our funds, please contact
the Fund at (888) 266-8787.
Sincerely,
/s/ John S. Maurer, Jr.
David Bunstine John S. Maurer, Jr.
President Senior Vice President &
INTRUST Funds Trust Chief Investment Officer
INTRUST Bank, N.A.
<PAGE> 2
Independent Auditors' Report
----------------------------
The Shareholders and Trustees
of INTRUST FUNDS Trust Money Market Fund
We have audited the accompanying statement of assets and liabilities of the
INTRUST FUNDS Trust Money Market Fund (the Fund) as of December 6, 1996. This
financial statement is the responsibility of the Fund's management. Our
responsibility is to express an opinion on this financial statement based on
our audit.
We conducted our audit 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 statement is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statement. 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 that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statement referred to above presents fairly, in
all material respects, the financial position of the Fund as of December 6,
1996 in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Columbus, Ohio
December 6, 1996
<PAGE> 3
THE INTRUST FUNDS
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION VALUE
-------------- --------------------------------------------- -----------
<S> <C>
BANKERS ACCEPTANCES (16.8%):
$3,000,000 Bank of Tokyo Mitsubishi, Ltd., New York,
5.44%, 5/27/97 $ 2,988,387
1,000,000 Dai-Ichi Kangyo Bank, Ltd., Los Angeles,
5.43%, 5/15/97 997,916
2,000,000 Dia-Ichi Kangyo Bank, Ltd., New York,
5.61%, 5/21/97 1,993,800
3,000,000 Industrial Bank of Japan, Ltd., Los Angeles,
5.43%, 5/13/97 2,994,640
3,000,000 Sanwa Bank, Ltd., New York,
5.43%, 5/20/97 2,991,513
-----------
Total Bankers Acceptances 11,966,256
-----------
CERTIFICATES OF DEPOSIT (16.8%):
Domestic (4.2%):
3,000,000 Corestates Bank, N.A., 5.76%*, 4/9/98 3,000,000
-----------
Yankee Certificate of Deposit (12.6%):
3,000,000 Norinchukin Bank, 5.78%, 5/20/97 3,000,000
3,000,000 Banca CRT, SpA, 5.48%*, 2/20/98 3,000,000
3,000,000 Instituto Bancario San Paolo, SpA, 5.62%*, 5/22/98 3,000,000
-----------
9,000,000
-----------
Total Certificates of Deposit 12,000,000
-----------
COMMERCIAL PAPER (29.2%):
Brokerage Services (4.2%):
3,000,000 Smith Barney, Inc., 5.61%, 5/21/97 2,990,717
-----------
Business Credit (4.2%):
3,000,000 CIT Holdings, Inc., 5.59%, 5/22/97 2,990,288
-----------
Farm Machinery & Equipment (4.2%):
3,000,000 John Deere Capital Corp., 5.59%, 5/20/97 2,991,212
-----------
Finance Lessors (4.2%):
3,000,000 General Electric Capital Corp., 5.62%, 6/2/97 2,985,147
-----------
Financial Services (8.3%):
3,000,000 Ford Motor Credit Corp., 5.37%, 7/3/97 2,972,385
3,000,000 General Motors Acceptance Corp., 5.36%, 7/3/97 2,972,437
-----------
5,944,822
-----------
Personal Credit Institutions (4.1%):
3,000,000 American Express Credit Corp., 5.36%, 7/3/97 2,972,437
-----------
Total Commercial Paper 20,874,623
-----------
MEDIUM TERM NOTES (7.0%):
Banking (4.2%):
3,000,000 Fleet Financial Group, Inc., 5.60%*, 2/13/98 3,003,050
-----------
Business Credit (2.8%):
2,000,000 Sanwa Business Credit Corp., 5.46%*, 2/24/98 2,000,000
-----------
Total Medium Term Notes 5,003,050
-----------
</TABLE>
Continued
<PAGE> 4
THE INTRUST FUNDS
MONEY MARKET FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION VALUE
-------------- --------------------------------------------- -----------
<S> <C>
TIME DEPOSITS (14.8%):
Banking (14.8%):
$3,000,000 Bank Brussells Lambert, 5.65%, 5/21/97 $ 3,000,000
3,000,000 Banque Paribas, 5.75%, 5/1/97 3,000,000
2,000,000 Swedbank, 5.75%, 5/1/97 2,000,000
2,549,911 Skandinaviska Enskilda Banken, 5.75%, 5/1/97 2,549,911
-----------
Total Time Deposits 10,549,911
-----------
VARIABLE RATE NOTES (15.4%):
Brokerage Services (7.0%):
3,000,000 Goldman Sachs Group, LP, 5.82%*, 10/24/97 3,000,000
2,000,000 Merrill Lynch Co., Inc., 5.47%*, 3/3/98 1,999,670
-----------
4,999,670
-----------
Construction Machinery & Equipment (4.2%):
3,000,000 Caterpillar Financial Service Corp., 5.76%*, 4/13/98 3,000,000
-----------
Financial Services (4.2%):
3,000,000 American Honda Finance Corp., 5.82%*, 4/9/98 2,998,898
-----------
Total Variable Rate Notes 10,998,568
-----------
Total (Cost--$71,392,408) $71,392,408
===========
</TABLE>
Percentages indicated are based on net assets of $71,374,864.
* Variable rate securities. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect at April 30, 1997.
See notes to financial statements.
<PAGE> 5
THE INTRUST FUNDS
SHORT-TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION VALUE
- ------------ ---------------------------------------------- -----------
<S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (33.0%):
$500,000 Federal Home Loan Mortgage Corp.,
6.00%, 4/15/06 $ 491,710
1,000,000 Federal Home Loan Mortgage Corp.,
5.75%, 5/15/06 982,890
467,190 Federal National Mortgage Assoc.,
6.80%*, 11/1/21, Pool #365421 478,140
500,000 Green Tree Financial Corp.,
6.30%, 2/15/27 487,920
1,000,000 Household Consumer Loan Trust,
6.04%*, 3/15/07 998,750
607,877 Merrill Lynch Mortgage Investors, Inc.,
7.89%*, 1/25/05 619,493
675,923 Merrill Lynch Mortgage Investors, Inc.,
7.99%*, 2/25/23 686,349
1,000,000 Premier Auto Trust, 97-1-B,
6.55%, 9/6/03 991,590
1,082,060 Residential Funding Mortgage Securities, Series 1989-51,
7.52%*, 10/25/19 1,093,218
816,939 Resolution Trust Corp., 6.60%*, 8/25/23 818,216
224,203 SBA, 8.88%, 1/25/10, Pool #503653 242,980
249,380 SBA, 8.73%, 1/25/13, Pool #503664 271,513
223,816 SBA, 9.48%, 5/25/15, Pool #502966 250,674
250,000 SBA, 8.13%, 1/25/22, Pool #503694 275,313
800,000 Team Fleet Financing Corp., Series 97-1 A,
7.35%, 5/15/03 804,000
1,000,000 Vendee Mortgage Trust, 7.50%, 3/15/13 1,015,410
1,000,000 Vendee Mortgage Trust, 7.25%, 7/15/14 999,660
1,000,000 Vendee Mortgage Trust, Series 1992-1, 7.75%, 12/15/14 1,013,140
-----------
Total Collateralized Mortgage Obligations 12,520,966
-----------
CORPORATE BONDS (18.2%):
Banking (2.2%):
615,000 Chase Manhattan Corp., 10.13%, 11/1/00 676,500
160,000 Chemical Bank, 9.75%, 6/15/99 169,800
-----------
846,300
-----------
Financial Services (5.7%):
1,100,000 Ford Motor Credit Corp., 9.50%, 4/15/00 1,181,125
1,000,000 Transamerica Financial, Series E, 6.41%, 6/20/00 986,250
-----------
2,167,375
-----------
Industrial Goods & Services (5.2%):
1,000,000 Newell Co., 6.18%, 7/11/00 980,000
1,000,000 Tyco International, Ltd., 6.50%, 11/1/01 981,250
-----------
1,961,250
-----------
Oil Field Services (1.3%):
500,000 Colonial Pipeline, 7.13%, 8/15/02 502,500
-----------
Retail (3.8%):
385,000 May Department Stores Co., 9.88%, 6/15/00 418,206
1,000,000 Penny (J.C.) & Co., 6.95%, 4/1/00 1,006,250
-----------
1,424,456
-----------
Total Corporate Bonds 6,901,881
-----------
</TABLE>
Continued
<PAGE> 6
THE INTRUST FUNDS
SHORT-TERM BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION VALUE
- ------------ ---------------------------------------------- -----------
<S> <C>
MEDIUM TERM NOTES (2.8%):
Banking (1.5%):
$500,000 First Interstate, 9.38%, 1/23/02 $ 546,875
-----------
Financial Services (1.3%):
500,000 Charles Schwab, 7.19%, 5/31/01 503,125
-----------
Total Medium Term Notes 1,050,000
-----------
U.S. GOVERNMENT AGENCY (6.6%):
Federal Home Loan Bank:
1,000,000 4.35%*, 3/26/98 984,200
Federal Home Loan Mortgage Corp.,:
500,000 5.01%*, 3/10/00 478,750
1,003,299 6.80%*, 4/1/29, Pool # 846367 1,029,003
-----------
Total U.S. Government Agency 2,491,953
-----------
U.S. TREASURY NOTES (37.0%):
1,000,000 5.13%, 3/31/98 993,550
3,400,000 6.25%, 6/30/98 3,409,010
3,000,000 6.13%, 8/31/98 3,000,960
5,100,000 5.75%, 12/31/98 5,069,196
1,500,000 8.00%, 8/15/99 1,552,680
-----------
Total U.S. Treasury Notes 14,025,396
-----------
INVESTMENT COMPANIES (1.5%):
577,880 Fedfund Money Market Fund 577,880
-----------
Total Investment Companies 577,880
-----------
Total (Cost--$37,651,704)(a) $37,568,076
===========
</TABLE>
- -------------
Percentages indicated are based on net assets of $37,886,841.
(a) Represents cost for federal tax purposes and differs from market
value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 56,218
Unrealized depreciation (139,846)
------------
Net unrealized appreciation $ (83,628)
-----------
</TABLE>
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates on an index of market
interest rates. The rate reflected on the Schedule of Portfolio Investment is
the rate in effect at April 30, 1997.
ABBREVIATIONS
SBA Small Business Association
See notes to financial statements.
<PAGE> 7
THE INTRUST FUNDS
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- -----------
<S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (48.0%):
$750,000 Asset Securitization Corp., Series 1997-D4, Class A1C,
7.42%, 4/14/27 $ 762,296
700,000 EQCC Home Equity Loan Trust, 7.50%, 6/15/21 693,252
966,807 Federal National Mortgage Assoc., 7.94%*, 11/1/21,
Pool #365421, 989,466
350,000 General Mortgage Acceptance Corp. Commercial Mortgage
Securities, Inc., 7.22%, 2/15/06 343,875
1,000,000 Green Tree Financial Corp., Series 1993-2 Class A4,
6.90%, 7/15/18 997,620
500,000 Green Tree Financial Corp., 6.30%, 2/15/27 487,920
500,000 Household Consumer Loan Trust, 6.04%*, 3/15/07 499,375
607,877 Merrill Lynch Mortgage Investors, Inc., 7.89%*, 1/25/05 619,493
675,923 Merrill Lynch Mortgage Investors, Inc., 7.99%*, 2/25/23 686,349
1,000,000 Premier Auto Trust, 97-1-B, 6.55%, 9/6/03 991,590
1,082,060 Residential Funding Mortgage Securities, Series 1989-51,
7.52%*, 10/25/19 1,093,218
750,000 Resolution Trust Corp., 7.50%, 10/25/28 744,141
1,000,000 Salomon, 97 HUD1-A-3, 7.51%, 2/25/24 1,000,000
1,000,000 Team Fleet Financing Corp., Series 97-1 A, 7.35%, 5/15/03 1,005,000
1,000,000 Vendee Mortgage Trust, 7.50%, 3/15/13 1,015,410
1,000,000 Vendee Mortgage Trust, 7.25%, 7/15/14 999,660
1,000,000 Vendee Mortgage Trust, Series 1992-1, 7.75%, 12/15/14 1,013,140
1,000,000 Vendee Mortgage Trust, 7.50%, 9/15/17 1,012,350
750,000 Vendee Mortgage Trust, 8.00%, 7/15/18 759,015
-----------
Total Collateralized Mortgage Obligations 15,713,170
-----------
CORPORATE BONDS (33.5%):
Aerospace/Defense (2.5%):
750,000 AlliedSignal Inc., 9.20%, 2/15/03 827,813
-----------
Airlines (3.0%):
1,000,000 Continental Airlines Inc., 7.46%, 4/1/15 994,500
-----------
Apparel Manufacturers (2.2%):
750,000 Levi Strauss & Co., 6.80%, 11/1/03 731,250
-----------
Banking (5.5%):
1,000,000 Chase Manhattan Corp., 10.13%, 11/1/00 1,100,000
700,000 First Bank System, Inc., 7.63%, 5/1/05 714,000
-----------
1,814,000
-----------
Electronic & Electrical (3.3%):
500,000 Philips Electronics N.V., 7.75%, 4/15/04 511,250
500,000 Texas Instrument, Inc., 9.25%, 6/15/03 551,875
-----------
1,063,125
-----------
Financial Services (6.3%):
1,000,000 Ford Motor Credit Corp., 9.50%, 4/15/00 1,073,750
1,000,000 Transamerica Financial, Series E, 6.41%, 6/20/00 986,250
-----------
2,060,000
-----------
Industrial Goods & Services (3.0%):
1,000,000 Tyco International Ltd., 6.50%, 11/1/01 981,250
-----------
Oil Field Services (3.0%):
1,000,000 Petroleum Geo-Services, 7.50%, 3/7/07 995,000
-----------
</TABLE>
Continued
<PAGE> 8
THE INTRUST FUNDS
INTERMEDIATE BOND FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- -----------
<S> <C>
CORPORATE BONDS, CONTINUED:
Retail (3.1%):
$1,000,000 May Department Stores Co., 7.15%, 8/15/04 $ 998,750
-----------
Tobacco & Tobacco Products (1.6%):
500,000 Philip Morris Cos., Inc., 7.63%, 5/15/02 508,125
-----------
Total Corporate Bonds 10,973,813
-----------
MEDIUM TERM NOTES (10.8%):
Banking (3.4%):
547,000 First Interstate Bancorp, 9.38%, 1/23/02 598,281
500,000 United Missouri Bancshares, Inc., 7.30%, 2/24/03 505,625
-----------
1,103,906
-----------
Financial Services (3.8%):
500,000 Charles Schwab, 7.19%, 5/31/01 503,125
750,000 Paine Webber Group, 6.90%, 8/15/03 733,125
-----------
1,236,250
-----------
Oil & Gas Production (2.2%):
750,000 Vastar Resources, Inc., 6.95%, 11/8/06 717,188
-----------
Semiconductors (1.4%):
500,000 Applied Materials, Inc., 6.70%, 9/6/05 476,250
-----------
Total Medium Term Notes 3,533,594
-----------
U.S. GOVERNMENT AGENCIES (3.1%):
Federal Home Loan Mortgage Corp.:
1,003,299 6.80%*, 4/1/29, Pool #846367 1,029,003
-----------
Total U.S. Government Agencies 1,029,003
-----------
U.S. TREASURY NOTES (3.2%):
1,000,000 8.00%, 8/15/99 1,035,120
-----------
Total U.S. Treasury Notes 1,035,120
-----------
INVESTMENT COMPANIES (0.6%):
189,593 Fedfund Money Market Fund 189,593
-----------
Total Investment Companies 189,593
-----------
Total (Cost--$32,634,106) $32,474,293
===========
</TABLE>
- -----------------
Percentages indicated are based on net assets of $32,725,883.
(a) Represents cost for federal tax purposes and differs from market value by
net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 76,059
Unrealized depreciation (235,872)
---------
Net unrealized appreciation $(159,813)
=========
</TABLE>
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon bank prime rates on an index of market
interest rates. The rate reflected on the Schedule of Portfolio Investment is
the rate in effect at April 30, 1997.
See notes to financial statements.
<PAGE> 9
THE INTRUST FUNDS
STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------- --------------------------- ----------
<S> <C>
COMMON STOCKS (94.5%):
Aerospace/Defense (2.7%):
7,000 AlliedSignal, Inc. $ 505,750
7,800 Lockheed Martin Corp. 698,100
----------
1,203,850
----------
Automobiles (3.0%):
31,700 Ford Motor Co. 1,101,575
4,500 General Motors Corp. 260,437
----------
1,362,012
----------
Banking (2.0%):
1,000 Bankers Trust New York Corp. 81,375
3,400 Chase Manhattan Corp. 314,925
8,900 First Chicago NBD Corp. 500,625
----------
896,925
----------
Brewery (1.0%):
10,800 Anheuser-Busch Cos., Inc. 463,050
----------
Broadcasting/Cable (3.7%):
64,400 Tele-Communications, Inc., Class A(b) 889,525
17,700 US West Media Group(b) 305,325
17,300 Viacom, Inc.-Class B(b) 462,775
----------
1,657,625
----------
Building Products (1.2%):
14,700 Masco Corp. 554,925
----------
Chemicals (4.2%):
6,900 Du Pont (Ei) De Nemours & Co. 732,262
3,600 Eastman Chemical Co. 183,600
6,500 Hercules, Inc. 255,937
12,900 PPG Industries, Inc. 701,437
----------
1,873,236
----------
Computers & Peripherals (4.8%):
18,800 Digital Equipment Corp.(b) 561,650
9,800 International Business Machines Corp. 1,575,350
----------
2,137,000
----------
Diversified Operations (2.6%):
10,100 Cognizant Corp. 329,512
10,900 Fluor Corp. 599,500
6,000 Tenneco, Inc. 239,250
----------
1,168,262
----------
Electrical & Electronic (1.5%):
18,600 AMP, Inc. 667,275
----------
Electronic Components/Instruments (0.9%):
8,800 Raytheon Co. 383,900
----------
Environmental Services (1.0%):
14,600 WMX Technologies, Inc. 428,875
----------
</TABLE>
Continued
<PAGE> 10
THE INTRUST FUNDS
STOCK FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
APRIL 30, 1997
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
----------- --------------------------- ----------
<S> <C>
COMMON STOCKS, CONTINUED:
Financial Services (1.1%):
13,200 Dean Witter Discover & Co. $ 504,900
----------
Food Products & Services (2.4%):
50,600 Archer-Daniels-Midland Co. 929,775
2,000 CPC International, Inc. 165,250
----------
1,095,025
----------
Health Care (4.2%):
32,800 Columbia/HCA Healthcare Corp. 1,148,000
17,900 Humana, Inc.(b) 389,325
7,500 United Healthcare Corp. 364,687
----------
1,902,012
----------
Insurance (11.9%):
11,000 Aetna, Inc. 1,002,375
15,600 Allstate Corp. 1,021,800
11,000 American General Corp. 479,875
14,000 Chubb Corp. 808,500
6,700 General Re Corp. 1,120,575
7,700 Loews Corp. 707,438
2,600 UNUM Corp. 200,200
----------
5,340,763
----------
Machinery & Equipment (0.8%):
8,200 Deere & Co. 377,200
----------
Metals--Aluminum (0.9%):
6,100 Aluminum Co. of America 426,238
----------
Metals & Mining (1.6%):
20,200 Newmont Mining Corp. 699,425
----------
Office Equipment & Services (1.8%):
13,300 Xerox Corp. 817,950
----------
Oil--Integrated Companies (6.7%):
10,600 Amerada Hess Corp. 515,425
3,700 Atlantic Richfield Co. 503,662
2,300 Mobil Corp. 299,000
35,600 Occidental Petroleums Corp. 787,650
2,400 Texaco, Inc. 253,200
17,400 Unocal 663,375
----------
3,022,312
----------
Oil & Gas Exploration, Production & Services (4.7%):
5,300 Burlington Resources, Inc. 224,588
19,700 Dresser Industries, Inc. 588,538
17,500 Enron Corp. 658,438
23,800 Union Pacific Resources Group, Inc. 645,575
----------
2,117,139
----------
</TABLE>
Continued
<PAGE> 11
THE INTRUST FUNDS
Stock Fund
Schedule of Portfolio Investments
April 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
- ------------ ------------------------------------------------ -------------
<S> <C>
Common Stocks, continued:
Paper & Related Products (2.6%):
14,200 Champion International Co. $660,300
4,000 Georgia-Pacific Corp. 312,000
5,000 International Paper Co. 211,250
-------------
1,183,550
-------------
Pharmaceuticals (2.7%):
7,500 American Home Products Corp. 496,875
7,600 Bristol-Myers Squibb Co. 497,800
7,400 Pharmacia & Upjohn, Inc. 219,225
-------------
1,213,900
-------------
Photography (1.6%):
8,500 Eastman Kodak Co. 709,750
-------------
Printing & Publishing (0.6%):
2,900 Gannett Co., Inc. 253,025
-------------
Railroads (3.2%):
8,700 Burlington Northern Santa Fe 685,125
16,600 CSX Corp. 773,975
-------------
1,459,100
-------------
Retail (8.2%):
17,200 Albertson's, Inc. 567,600
23,900 Dillard Department Stores, Inc., Class A 737,913
19,800 Federated Department Stores, Inc.(b) 673,200
6,200 Gap, Inc. 197,625
13,600 May Department Stores Co. 629,000
13,100 Sears, Roebuck & Co. 628,800
8,900 Toys "R" Us, Inc. 253,650
-------------
3,687,788
-------------
Utilities--Electric (1.4%):
18,800 Texas Utilities Co. 634,500
-------------
Utilities--Telecommunications (9.5%):
45,500 AT&T Corp. 1,524,250
5,000 Frontier Corp. 79,375
19,900 GTE Corp. 912,913
20,300 NYNEX Corp. 1,050,525
12,900 SBC Communications, Inc. 715,950
-------------
4,283,013
-------------
Total Common Stocks 42,524,525
-------------
Investment Companies (4.5%):
2,019,618 Fedfund Money Market Fund 2,019,618
-------------
Total Investment Companies 2,019,618
-------------
Total (Cost--$45,045,009)(a) $44,544,143
=============
</TABLE>
Continued
<PAGE> 12
THE INTRUST FUNDS
Stock Fund
Schedule of Portfolio Investments
April 30, 1997
(Unaudited)
Percentages indicated are based on net assets of $44,979,962.
(a) Represents cost for federal tax purposes and differs from market value by
depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 1,253,096
Unrealized depreciation (1,753,962)
-------------
Net unrealized appreciation $ (500,866)
-------------
</TABLE>
(b) Represents non-income producing security.
See notes to financial statements.
<PAGE> 13
THE INTRUST FUNDS
Statements of Assets and Liabilities
April 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Money Short-Term Intermediate
Market Bond Bond
Fund (a) Fund (b) Fund (b)
--------------- --------------- -------------
<S> <C> <C> <C>
ASSETS:
Investments, at value (cost $71,392,408; $37,651,704; $32,634,106;
$45,045,009, respectively) $71,392,408 $ 37,568,076 $ 32,474,293
Investment in International Equity Portfolio, at value (cost $24,211,150) -- -- --
Interest receivable 170,781 476,962 409,323
Receivable from brokers for investments sold -- 7,851 --
Deferred organization costs 91,198 20,246 18,943
Prepaid expenses and other assets 35,911 5,104 4,661
----------- ------------ ------------
Total Assets 71,690,298 38,078,239 32,907,220
----------- ------------ ------------
LIABILITIES:
Dividends payable 282,833 165,227 154,579
Payable to brokers for investments purchased -- -- --
Accrued expenses and other payables:
Investment advisory fees 5,761 5,733 7,528
Administration fees 1,944 1,033 890
Custodian 3,796 2,104 1,993
Other 21,100 17,301 16,347
----------- ------------ ------------
Total Liabilities 315,434 191,398 181,337
----------- ------------ ------------
NET ASSETS:
Capital 71,374,767 38,027,263 33,012,997
Undistributed net investment income -- -- --
Accumulated undistributed net realized gains
(losses) from investment transactions 97 (56,794) (127,301)
Net unrealized appreciation (depreciation)
from investments -- (83,628) (159,813)
----------- ------------ ------------
Net Assets $71,374,864 $ 37,886,841 $ 32,725,883
=========== ============ ============
Outstanding Units of Beneficial Interest (Shares): 71,374,767 3,803,436 3,303,721
=========== ============ ============
Net Asset Value :
Service
Offering and redemption price per share $ 1.00 $ 9.96 $ 9.91
=========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
International
Stock Multi-Manager
Fund (b) Stock Fund (c)
-------------- --------------
<S> <C> <C>
ASSETS:
Investments, at value (cost $71,392,408; $37,651,704; $32,634,106;
$45,045,009, respectively) $ 44,544,143 $ --
Investment in International Equity Portfolio, at value (cost $24,211,150) -- 24,317,211
Interest receivable 82,053 --
Receivable from brokers for investments sold 545,382 --
Deferred organization costs 20,873 11,118
Prepaid expenses and other assets 4,758 2,291
------------ -----------
Total Assets 45,197,209 24,330,620
------------ -----------
LIABILITIES:
Dividends payable -- --
Payable to brokers for investments purchased 163,964 --
Accrued expenses and other payables:
Investment advisory fees 29,115 6,587
Administration fees 1,185 --
Custodian 2,530 --
Other 20,453 16,336
------------ -----------
Total Liabilities 217,247 22,923
------------ -----------
NET ASSETS:
Capital 45,245,582 24,018,291
Undistributed net investment income 66,576 104,538
Accumulated undistributed net realized gains
(losses) from investment transactions 168,670 78,807
Net unrealized appreciation (depreciation)
from investments (500,866) 106,061
------------ -----------
Net Assets $ 44,979,962 $24,307,697
============ ===========
Outstanding Units of Beneficial Interest (Shares): 4,522,143 2,401,965
============ ===========
Net Asset Value :
Service
Offering and redemption price per share $ 9.95 $ 10.12
============ ===========
</TABLE>
(a)The Fund commenced operations on January 23, 1997.
(b)The Fund commenced operations on January 21, 1997.
(c)The Fund commenced operations on January 20, 1997.
See notes to financial statements.
<PAGE> 14
THE INTRUST FUNDS
STATEMENTS OF OPERATIONS
For the period ended April 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Money Short-Term Intermediate International
Market Bond Bond Stock Multi-Manager
Fund (a) Fund (b) Fund (b) Fund (b) Stock Fund (c)
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 980,143 $ 480,512 $ 461,876 $ 11,956 $ --
Dividend income -- 13,363 10,745 190,495 --
INVESTMENT INCOME ALLOCATED FROM
INTERNATIONAL EQUITY PORTFOLIO:
Interest income -- -- -- -- 31,416
Dividend income (net of foreign taxes of $27,451) -- -- -- -- 150,420
Expenses -- -- -- -- (28,102)
--------- --------- --------- --------- ---------
Total Income 980,143 493,875 472,621 202,451 153,734
--------- --------- --------- --------- ---------
EXPENSES:
Investment advisory fees 44,802 31,914 28,264 85,955 19,034
Administration fees 35,842 15,957 14,132 17,192 7,138
12b-1 fees 44,802 19,946 17,665 21,489 11,897
Shareholder Servicing Fees 11,255 5,827 5,116 6,334 3,507
Custodian and accounting fees 12,135 11,570 11,553 12,746 8,208
Legal and audit fees 9,480 6,334 6,139 7,245 3,907
Organization costs 2,152 1,288 1,232 1,288 1,008
Trustees' fees and expenses 2,442 1,693 1,586 1,744 1,372
Transfer agent fees 905 918 918 918 901
Registration and filing fees 13,480 7,727 7,245 8,888 5,226
Printing costs 7,840 4,959 4,650 5,518 7,277
Other 3,566 1,877 1,799 2,163 1,135
--------- --------- --------- --------- ---------
Total expenses before waivers 188,701 110,010 100,299 171,480 70,610
Less waivers (71,683) (39,541) (28,383) (35,605) (21,414)
--------- --------- --------- --------- ---------
Net Expenses 117,018 70,469 71,916 135,875 49,196
--------- --------- --------- --------- ---------
Net Investment Income 863,125 423,406 400,705 66,576 104,538
--------- --------- --------- --------- ---------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains (losses) from investment
transactions 97 (56,794) (127,301) 168,670 78,807
Net change in unrealized appreciation (depreciation)
from investments -- (83,628) (159,813) (500,866) 106,061
--------- --------- --------- --------- ---------
Net realized/unrealized gains (losses)
from investments 97 (140,422) (287,114) (332,196) 184,868
--------- --------- --------- --------- ---------
Change in net assets
resulting from operations $ 863,222 $ 282,984 $ 113,591 $(265,620) $ 289,406
========= ========= ========= ========= =========
</TABLE>
(a) The Fund commenced operations on January 23, 1997.
(b) The Fund commenced operations on January 21, 1997.
(c) The Fund commenced operations on January 20, 1997.
<PAGE> 15
THE INTRUST FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Money Market Short-Term Intermediate Stock
Fund Bond Fund Bond Fund Fund (a)
---------------- --------------- -------------- --------------
January 23, 1997 January 21, 1997 January 21, 1997 January 21, 1997
to to to to
April 30, April 30, April 30, April 30,
1997 (a) 1997 (a) 1997 (a) 1997 (a)
---------------- --------------- -------------- --------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 863,125 $ 423,406 $ 400,705 $ 66,576
Net realized gains (losses)
from investment transactions 97 (56,794) (127,301) 168,670
Net change in unrealized appreciation (depreciation)
from investments -- (83,628) (159,813) (500,866)
------------- ------------ ------------ ------------
Change in net assets resulting from operations 863,222 282,984 113,591 (265,620)
------------- ------------ ------------ ------------
Distributions to shareholders:
From net investment income (863,125) (423,406) (400,705) --
------------- ------------ ------------ ------------
Change in net assets from shareholder distributions (863,125) (423,406) (400,705) 0
------------- ------------ ------------ ------------
Capital Transactions:
Proceeds from shares issued 191,460,011 39,011,082 33,885,133 46,095,283
Dividends reinvested 885 24,879 20,102 --
Cost of shares redeemed (120,086,129) (1,008,698) (892,238) (849,701)
------------- ------------ ------------ ------------
Change in net assets from share transactions 71,374,767 38,027,263 33,012,997 45,245,582
------------- ------------ ------------ ------------
Change in net assets 71,374,864 37,886,841 32,725,883 44,979,962
Net Assets:
Beginning of period 0 0 0 0
------------- ------------ ------------ ------------
End of period $ 71,374,864 $ 37,886,841 $ 32,725,883 $ 44,979,962
============= ============ ============ ============
Share Transactions:
Issued 191,460,011 3,902,379 3,392,126 4,609,681
Reinvested 885 2,499 2,031 --
Redeemed (120,086,129) (101,442) (90,436) (87,538)
============= ============ ============ ============
Change in shares 71,374,767 3,803,436 3,303,721 4,522,143
============= ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
International
Multi-Manager
Stock Fund (a)
---------------
January 20, 1997
to
April 30,
1997 (a)
---------------
(Unaudited)
<S> <C>
Net investment income $ 104,538
Net realized gains (losses)
from investment transactions 78,807
Net change in unrealized appreciation (depreciation)
from investments 106,061
------------
Change in net assets resulting from operations 289,406
------------
Distributions to shareholders:
From net investment income --
------------
Change in net assets from shareholder distributions 0
------------
Capital Transactions:
Proceeds from shares issued 24,579,395
Dividends reinvested --
Cost of shares redeemed (561,104)
------------
Change in net assets from share transactions 24,018,291
------------
Change in net assets 24,307,697
Net Assets:
Beginning of period 0
------------
End of period $ 24,307,697
============
Share Transactions:
Issued 2,458,061
Reinvested --
Redeemed (56,096)
============
Change in shares 2,401,965
============
</TABLE>
(a) Period from commencement of operations
<PAGE> 16
THE INTRUST FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
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 five active funds. The accompanying financial statements and
financial highlights are those of the Money Market Fund, Short-Term Bond
Fund, Intermediate Bond Fund, Stock Fund and the International Multi-Manager
Stock Fund (individually a "Fund", collectively the "Funds"). Each Fund is
currently offered in the Institutional Service Class only.
The Money Market Fund seeks to provide current income, liquidity and the
maintenance of a stable net asset value of $1.00 per share by investing in
high quality, short-term obligations. The Short-Term Bond Fund seeks current
income consistent with liquidity and safety of principal by investing
primarily in investment grade short-term obligations. The Intermediate Bond
Fund seeks current income consistent with managing for total return by
investing in fixed income securities. The Stock Fund seeks long-term capital
appreciation. The International Multi-Manager Stock Fund seeks long-term
capital appreciation by investing in equity securities of issuers based
outside the United States. This Fund seeks to achieve its objective by
investing all of its investable assets in the International Equity Portfolio
(the "Portfolio) of the AMR Investment Services Trust. The percentage of the
AMR Investment Services Trust International Equity Fund owned by the Fund as
of April 30, 1997 was 4.1%. The financial statements of the Portfolio,
including its portfolio of investments, are included elsewhere in this
report and should be read in conjunction with the International
Multi-Manager Stock Fund's financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by
the Trust in the preparation of its financial statements. The policies are
in conformity with generally accepted accounting principles. The preparation
of financial statements requires management to make estimates and
assumptions that affect 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
Securities of the Money Market Fund are valued utilizing the amortized cost
method permitted in accordance with Rule 2a-7 under the 1940 Act. Under the
amortized cost method, discount or premium is amortized on a constant basis
to the maturity of the security. In addition, the Funds may not (a) purchase
any instrument with a remaining maturity greater than thirteen months unless
such instrument is subject to a demand feature, or (b) maintain a
dollar-weighted average maturity which exceeds 90 days.
Investment in common stocks, corporate bonds, municipal bonds, asset backed
securities and U.S. Government securities of the variable net asset funds
are valued at their market values determined on the latest available bid
prices in the principal market (closing sales prices if the principal market
is an exchange) in which securities are normally traded.
Repurchase Agreements
The Funds may invest in repurchase agreements with any bank and broker-
dealer which in the opinion of the
-continued-
<PAGE> 17
THE INTRUST FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
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, a
Fund may experience a loss of income from the loaned securities and a
decrease in the value of any collateral. Repurchase agreements are
considered to be loans by a fund under the 1940 Act.
Reverse Repurchase Agreements
The Funds may also enter into reverse repurchase agreements to avoid selling
securities in unfavorable market conditions to meet redemptions. When a Fund
enters into a reverse repurchase agreement a segregated account will be used
to maintain liquid assets in an amount at least equal to the repurchase
price marked to market daily, including accrued interest, and will
subsequently monitor the account to ensure that such equivalent amount is
maintained. The Fund pays interest on amounts obtained pursuant to reverse
repurchase agreements. Reverse repurchase agreements are considered to be
borrowings by a Fund under the 1940 Act.
Written Options
The Funds may write covered call or put options for which premiums received
are recorded as liabilities and are subsequently adjusted to the current
value of the options written. Premiums received from writing options which
expire are treated as realized gains. Premiums received from writing
options, which are either exercised or closed, are offset against the
proceeds received or amount paid on the transaction to determine realized
gains or losses.
Futures Contracts
The Funds may enter into futures contracts for the delayed delivery of
securities at a fixed price at some future date or for the change in the
value of a specified financial index over a predetermined time period. Cash
or securities are deposited with brokers in order to maintain a position.
Subsequent payments made or received by the Fund based on the daily change
in the market value of the position are recorded as unrealized appreciation
or depreciation until the contract is closed out, at which time the
appreciation or depreciation is realized.
Indexed Securities
The Stock Fund may invest in indexed securities whose value is linked either
directly or inversely to changes in stock indices or other reference
instruments. Indexed securities may be more volatile than the referenced
instrument itself, but any loss is limited to the amount of the original
investment.
Mortgage Rolls
The Funds may enter into dollar roll transactions in which the Fund sells
fixed income securities, typically mortgage-backed securities, for delivery
in the current month and simultaneously contracts to repurchase
substantially similar securities on a specified future date. During the roll
period, the Fund forgoes principal and interest paid on the mortgage-backed
securities. The Fund is compensated by fee income or the difference between
the current sales price and the lower forward price for the future purchase.
Securities Lending
To generate additional income, the Funds may lend their portfolio securities
in an amount up to 33% of each such 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 April 30, 1997 the
Funds had no securities on loan.
-continued-
<PAGE> 18
THE INTRUST FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
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 a Fund are charged directly to that Fund,
while the expenses which are attributable to more than one Fund of the Trust
are allocated among the respective Funds. Each class of shares bears its
pro-rata portion of expenses attributable to its series, except that each
class separately bears expenses related specifically to that class, such as
distribution fees.
Dividends and Distributions to Shareholders
Dividends from net investment income for the Money Market Fund, Short-Term
Bond Fund and the Intermediate Bond Fund are declared daily and paid
monthly. Dividends from net investment income for the Stock Fund and the
International Multi-Manager Stock Fund are declared and paid at least once
annually. Net realized capital gains, if any, are distributed at least
annually. Dividends are declared separately for each class. No class has
preferential dividend rights; differences in per share dividend rates are
generally due to differences in separate class expenses.
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 principles. These differences are primarily
due to differing treatments for mortgage-backed securities, expiring capital
loss carryforwards, and deferrals of certain losses. Permanent book and tax
basis differences have been reclassified among the components of net assets.
Federal Income Taxes
The Trust treats each Fund as a separate entity for Federal income tax
purposes. Each 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.
Organization Costs
Costs incurred by the Trust in connection with its organization, including
the fees and expenses of registering and qualifying its shares for
distribution have been deferred and are being amortized using the
straight-line method over a period of five years beginning with the
commencement of each Fund's operations. All such costs, which are
attributable to more than one Fund of the Trust, have been allocated among
the respective Funds pro-rata, based on the relative net assets of each
Fund. In the event that any of the initial shares are redeemed during such
period by any holder thereof, the related Fund will be reimbursed by such
holder for any unamortized organization costs in the proportion as the
number of initial shares being redeemed bears to the number of initial
shares outstanding at the time of redemption.
3. SHARES OF BENEFICIAL INTEREST:
-continued-
<PAGE> 19
THE INTRUST FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
The Trust has an unlimited number of shares of beneficial interest, with no
par value, 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 five series and two classes: Institutional
Service and Institutional Premium. As of April 30, 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.
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 the following
percentages of the Funds' average net assets: 0.25% of the Money Market
Fund, 0.40% of the Short-Term Bond Fund and the Intermediate Bond Fund,
1.00% of the Stock Fund and 0.40% of the International Multi-Manager Stock
Fund. The investment advisory agreement for the International Multi-Manager
Stock Fund also provides for an investment advisory fee of 1.25% of the
average daily net assets of the Fund, if the Fund does not invest all of its
assets in the Portfolio or another investment company.
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 Funds' average daily net assets except the
International Multi-Manager Stock fund which pays 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 funds are sold on a
continuous bases. Each class is subject to a distribution plan (the "Plan")
pursuant to Rule 12b-1 under the 1940 Act. As provided in the Plan the Trust
will pay the Distributor 0.25% per annum of the average daily net assets of
the Funds.
Other financial organizations also may provide administrative services for
the Funds, such as maintaining shareholder accounts and records. The Funds
may pay fees to Service Organizations in amounts up to an annual rate of
0.08% of the daily net asset value of the Funds' 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 Funds' shares owned by
shareholders with whom the Service Organization has a servicing
relationship.
The Advisor, the Administrator and the Distributor voluntarily agreed to
waive a portion of their fees. For the period ended April 30, 1997, fees in
the following amounts were waived:
-continued-
<PAGE> 20
THE INTRUST FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Investment Fund
Advisory Fees Administration Accounting Custodian 12b-1 Fees
Waived Fees Waived Fees Waived Fees Waived Waived
------ ----------- ----------- ----------- ------
<S> <C> <C> <C> <C> <C>
Money Market Fund $26,881 $ -- $ -- $-- $44,802
Short-Term Bond Fund 16,755 2,840 -- -- 19,946
Intermediate Bond Fund 7,773 2,945 -- -- 17,665
Stock Fund 11,174 2,942 -- -- 21,489
International Multi-Manager Stock Fund 2,379 7,138 -- -- 11,897
</TABLE>
5. SECURITIES TRANSACTIONS:
The cost of security purchases and the proceeds from the sale of securities
(excluding short-term securities and purchased options) during the period
ended April 30, 1997 were as follows:
<TABLE>
<CAPTION>
Purchases Sales
--------- -----
<S> <C> <C>
Short-Term Bond Fund $40,371,778 $11,481,797
Intermediate Bond Fund 52,655,449 24,974,187
Stock Fund 48,184,956 5,328,581
</TABLE>
6. FINANCIAL INSTRUMENTS:
Investing in financial instruments such as written options, futures,
structured notes and indexed securities involves risk in excess of the
amounts reflected in the Statement of Assets and Liabilities. The face or
contract amounts reflect the extent of the involvement the Funds have in the
particular class of instrument. Risks associated with these instruments
include an imperfect correlation between the movements in the price of the
instruments and the price of the underlying securities and interest rates,
an illiquid secondary market for the instruments or inability of
counterparties to perform under the terms of the contract. The Funds enter
into these contracts primarily as a means to hedge against adverse
fluctuation in securities.
-continued-
<PAGE> 21
THE INTRUST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Money Market
Fund
-------------
January 23, 1997
to
April 30,
1997 (a)
-------------
(Unaudited)
<S> <C>
Net Asset Value,
Beginning of Period $ 1.000
------------
Investment Activities:
Net investment income 0.013
------------
Total from Investment Activities 0.013
------------
Distributions:
Net investment income (0.013)
------------
Total Distributions (0.013)
------------
Net Asset Value,
End of Period $ 1.000
============
Total Return 1.29%(b)
Ratios/Supplementary Data:
Net Assets at end of period $ 71,374,864
Ratio of expenses to
average net assets 0.65%(c)
Ratio of net investment income
to average net assets 4.82%(c)
Ratio of expenses to
average net assets * 1.05%(c)
Ratio of net investment income
to average net assets * 4.42%(c)
</TABLE>
-----------
* During the period certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have
been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
<PAGE> 22
THE INTRUST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Short-Term
Bond Fund
----------------
January 21, 1997
to
April 30,
1997 (a)
----------------
(Unaudited)
<S> <C>
Net Asset Value,
Beginning of Period $ 10.00
--------------
Investment Activities:
Net investment income 0.14
Net realized and unrealized gains (losses)
from investments (0.04)
--------------
Total from Investment Activities 0.10
--------------
Distributions:
Net investment income (0.14)
--------------
Total Distributions (0.14)
--------------
Net Asset Value,
End of Period $ 9.96
==============
Total Return 1.02%(b)
Ratios/Supplementary Data:
Net Assets at end of period $ 37,886,841
Ratio of expenses to
average net assets 0.88%(c)
Ratio of net investment income
to average net assets 5.31%(c)
Ratio of expenses to
average net assets * 1.38%(c)
Ratio of net investment income
to average net assets * 4.81%(c)
Portfolio turnover 48.57%
</TABLE>
------------
* During the period certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a)Period from commencement of operations.
(b)Not annualized.
(c)Annualized.
See notes to financial statements.
<PAGE> 23
THE INTRUST FUNDS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Intermediate
Bond Fund
--------------
January 21, 1997
to
April 30,
1997 (a)
--------------
(Unaudited)
<S> <C>
Net Asset Value,
Beginning of Period $ 10.00
--------------
Investment Activities:
Net investment income 0.15
Net realized and unrealized gains (losses)
from investments (0.09)
--------------
Total from Investment Activities 0.06
--------------
Distributions:
Net investment income (0.15)
--------------
Total Distributions (0.15)
--------------
Net Asset Value,
End of Period $ 9.91
==============
Total Return 0.61%(b)
Ratios/Supplementary Data:
Net Assets at end of period $ 32,725,883
Ratio of expenses to
average net assets 1.02%(c)
Ratio of net investment income
to average net assets 5.67%(c)
Ratio of expenses to
average net assets * 1.42%(c)
Ratio of net investment income
to average net assets * 5.27%(c)
Portfolio turnover 103.26%
</TABLE>
- ------------
* During the period certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
<PAGE> 24
THE INTRUST FUNDS
Financial Highlights
<TABLE>
<CAPTION>
Stock
Fund
----------------
January 21, 1997
to
April 30,
1997 (a)
----------------
(Unaudited)
<S> <C>
Net Asset Value,
Beginning of Period $ 10.00
---------------
Investment Activities:
Net investment income 0.01
Net realized and unrealized gains (losses)
from investments (0.06)
---------------
Total from Investment Activities (0.05)
---------------
Net Asset Value,
End of Period $ 9.95
===============
Total Return -0.50%(b)
Ratios/Supplementary Data:
Net Assets at end of period $ 44,979,962
Ratio of expenses to
average net assets 1.58%(c)
Ratio of net investment income
to average net assets 0.77%(c)
Ratio of expenses to
average net assets * 1.99%(c)
Ratio of net investment income
to average net assets * 0.36%(c)
Portfolio turnover 17.05%
Average commision rate paid 0.0012
------------
</TABLE>
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
<PAGE> 25
THE INTRUST FUNDS
Financial Highlights
<TABLE>
<CAPTION>
International
Multi-Manager
Stock Fund
-------------------
January 20, 1997
to
April 30,
1997 (a)
-------------------
(Unaudited)
<S> <C>
Net Asset Value,
Beginning of Period $ 10.00
-----------------
Investment Activities:
Net investment income 0.04
Net realized and unrealized gains (losses)
from investments 0.08
-----------------
Total from Investment Activities 0.12
-----------------
Net Asset Value,
End of Period $ 10.12
=================
Total Return 1.20%(b)
Ratios/Supplementary Data:
Net Assets at end of period $ 24,307,697
Ratio of expenses to
average net assets 1.62%(c)
Ratio of net investment income
to average net assets 2.19%(c)
Ratio of expenses to
average net assets * 2.07%(c)
Ratio of net investment income
to average net assets * 1.74%(c)
Portfolio Turnover - (d)
Average commision rate paid - (d)
</TABLE>
------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Refer to AMR Investment Services International Equity Trust Portfolio
Financial Highlights.
See notes to financial statements.
<PAGE> 26
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
-------- ---------
(dollars in thousands)
<S> <C> <C>
AUSTRALIA COMMON STOCKS - 4.19%
Australia & New Zealand Banking Group 843,442 $ 5,400
Brambles Industries, Limited 179,000 3,247
Burns Philip and Company, Limited 400,000 667
CSR, Limited 633,000 2,345
Coles Myer, Limited Australian 323,000 1,574
Davids, Limited 688,173 667
GIO Australia Holdings, Limited 486,509 1,445
Goodman Fielder, Limited 1,150,000 1,510
News Corporation, Limited 210,000 970
News Corporation Preferred Rights 230,000 879
North, Limited 136,000 481
Pioneer International, Limited 960,000 3,167
QBE Insurance Group, Limited 429,197 2,459
---------
TOTAL AUSTRALIA COMMON STOCKS 24,811
---------
AUSTRIA COMMON STOCKS - 0.88%
Boehler-Uddeholm 31,185 2,250
Evn Energie-Versorgung Niederroesterreich AG 3,960 491
Mayr-Melnhof Karton AG 16,000 758
VA Technologie AG 11,000 1,710
---------
TOTAL AUSTRIA COMMON STOCKS 5,209
---------
BELGIUM COMMON STOCKS - 0.41%
GIB Holdings, Limited, NPV 22,000 955
Solvay Et Cie, NPV 2,500 1,498
---------
TOTAL BELGIUM COMMON STOCKS 2,453
---------
CANADA COMMON STOCKS - 1.97%
Anderson Exploration, Limited 115,000 1,329
Bank of Nova Scotia 67,839 2,575
Canadian Imperial Bank of Commerce 120,000 2,756
IMASCO, Limited 119,000 3,240
Noranda, Incorporated 70,500 1,488
Oshawa Group, Limited 16,700 262
---------
TOTAL CANADA COMMON STOCKS 11,650
---------
DENMARK COMMON STOCKS - 0.98%
Den Danske Bank 16,000 1,384
Novo Nordisk AS, "B" 10,400 1,029
Teledanmark AS, "B" 16,700 803
Unidanmark AS, "A" 52,200 2,582
---------
TOTAL DENMARK COMMON STOCKS 5,798
---------
FINLAND COMMON STOCKS - 2.40%
Enso-Gutzeit OY 187,000 1,545
Huhtamaki Group 1 Free 25,000 1,083
</TABLE>
<PAGE> 27
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
------- -------
(dollars in thousands)
<S> <C> <C>
Merita Bank, Limited 785,000 2,549
Metsa-Serla OY, "B" 100,000 749
Nokia OY, "A" 48,500 3,024
UPM-Kymmene OY 231,400 5,292
-------
TOTAL FINLAND COMMON STOCKS 14,242
-------
FRANCE COMMON STOCKS - 7.84%
Adecco SA 3,855 1,287
Alcatel Alsthom CG 43,100 4,793
Axa SA 27,542 1,695
Banque Nationale de Paris 90,500 3,861
Bertrande Faure 29,500 1,413
Bongrain SA 2,370 897
Elf Aquitaine SA 75,500 7,322
Groupe Danone 14,700 2,141
La Farge-Coppee SA 86,208 5,654
Pechiney SA 35,858 1,339
Pernod-Ricard 49,107 2,523
Peugot SA 9,100 906
Rhone-Poulenc, "A" 50,000 1,682
Sa Des Galeries Lafayette 162 65
Saint Gobain 11,739 1,573
Scor SA 26,000 1,016
Schneider SA 12,600 710
Total Petroleum Company, "B" 49,900 4,138
Usinor Sacilor 191,856 2,899
Valeo SA 8,350 515
-------
TOTAL FRANCE COMMON STOCKS 46,429
-------
GERMANY - 5.10%
PREFERRED STOCKS - 0.72%
Herlitz AG 8,947 902
Spar Handels AG 3,400 44
Volkswagen AG 6,800 3,338
-------
TOTAL GERMANY PREFERRED STOCKS 4,284
-------
COMMON STOCKS - 4.38%
BASF AG 49,900 1,925
BAYER AG 162,925 6,481
Commerzbank AG 143,000 3,856
Deutsche Bank AG 36,000 1,900
Hoechst AG 29,300 1,150
Karstadt AG 6,500 1,951
Mannesmann AG 1,940 763
Muenchener Rueckversicherungs AG 300 494
Varta AG (non-income producing) 1,520 233
Veba AG 69,200 3,591
</TABLE>
<PAGE> 28
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
------- -------
(dollars in thousands)
<S> <C> <C>
Viag AG 4,350 1,939
Volkswagen AG 2,650 1,680
---------
TOTAL GERMANY COMMON STOCKS 25,963
---------
TOTAL GERMANY 30,247
---------
HONG KONG COMMON STOCKS - 4.21%
Cheung Kong Holdings, Limited 235,000 2,063
China Light and Power Company 789,000 3,555
Dickson Concepts (International), Limited 643,000 2,374
Hang Lung Development Company, Limited 1,268,000 2,341
Hong Kong Electric Holdings 308,400 1,091
Hong Kong Telecommunications, Limited 1,790,400 3,074
HSBC Holdings, Limited 114,500 2,897
Hutchinson Whampoa, Limited 200,000 1,485
National Mutual of Asia, Limited 1,700,000 1,756
New Asia Realty and Trust Company, Limited 135,000 498
New World Development Company, Limited 459,000 2,649
Peregrine Investments Holdings, Limited 550,000 845
Peregrine Investments Holdings, Limited Warrants 55,000 8
Swire Pacific, Limited, "A" 40,000 309
---------
TOTAL HONG KONG COMMON STOCKS 24,945
---------
IRELAND COMMON STOCKS - 0.50%
Jefferson Smurfit 1,199,242 2,936
---------
TOTAL IRELAND COMMON STOCKS 2,936
---------
ITALY - 2.61%
PREFERRED STOCK - 0.17%
Concessioni E Contruzioni Autostrade 525,000 1,012
---------
TOTAL ITALY PREFERRED STOCK 1,012
---------
COMMON STOCKS - 2.44%
Burgo (Cartiere) SPA 220,000 1,217
Danieli Group Risp 473,960 1,705
Fiat SPA 700,000 2,310
Instituto Nazionale Delle Assicurazioni 770,000 1,032
Merloni Elettrodomestici SPA 185,500 467
Olivetti Ing C, & Co 711,000 208
Sasib SPA 500,000 929
STET Risp Non Convertible 550,000 2,601
Telecom Italia, SPA Non Convertible Risp 110,000 237
Sta Finanziaria Telefonica Torino 1,015,000 3,765
---------
TOTAL ITALY COMMON STOCKS 14,471
---------
TOTAL ITALY 15,483
---------
JAPAN COMMON STOCKS - 11.65%
Aisin Seiki Company, Limited 123,000 1,783
</TABLE>
<PAGE> 29
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
------- -------
(dollars in thousands)
<S> <C> <C>
Aoyama Trading Company 18,000 508
Bridgestone Corporation 54,000 1,149
Canon, Incorporated 74,000 1,755
Chudenko Corporation 28,000 715
Daibiru Corporation 143,000 1,577
Daicel Chemical 184,000 693
Daikin Industries 14,000 110
Dainippon Ink & Chemical 57,000 213
Daiwa House Industry Company, Limited 166,000 1,857
East Japan Railway Company 313 1,354
Fuji Photo Film 193,000 7,376
Hitachi Koki Company, Limited 70,000 444
Hitachi, Limited 383,000 3,471
Isuzu Motors, Limited 67,000 252
KAO Corporation 180,000 2,099
Kioto Manufacturing Company, Limited 108,000 655
Kirin Brewery Company, Limited 38,000 329
Matsushita Electric Industrial Company 226,000 3,615
MOS Food Services 89,000 1,206
NKK Corporation 461,000 995
Nichicon Corporation 234,000 2,563
Nichido Fire & Marine Insurance 304,000 1,636
Nintendo Company, Limited 37,300 2,727
Nippon Fire and Marine Insurance 287,000 1,131
Nippon Telegraph & Telephone Corporation 193 1,361
Promise Company, Limited 77,000 3,185
Ryosan Company 12,000 254
Sekisiu Chemical Company, Limited 332,000 3,192
Shionogi & Company 36,000 240
Sony Corporation 88,800 6,465
Sumitomo Marine & Fire Insurance 402,000 2,474
Sumitomo Rubber Industries 124,000 811
Suzuki Motor Company, Limited 193,000 2,053
TDK Corporation 25,000 1,802
Toyo Seikan Kaisha 121,000 2,221
Yamanouchi Pharmaceutical 110,000 2,349
Yamato Kogyo Company, Limited 35,000 303
Yodogawa Steel Works 375,000 2,122
-------
TOTAL JAPAN COMMON STOCKS 69,045
-------
MEXICO COMMON STOCKS - 0.16%
Alfa, SA 175,000 945
-------
TOTAL MEXICO COMMON STOCKS 945
-------
MALAYSIA COMMON STOCKS - 1.19%
Arab Maylasian Finance 780,000 1,709
Bolton Properties 909,000 1,441
</TABLE>
<PAGE> 30
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
------- -------
(dollars in thousands)
<S> <C> <C>
Golden Hope Plantations BHD 752,000 1,192
Hicom Holdings BHD 195,300 432
Kedah Cement Holdings BHD 729,000 1,133
Malaysian International Shipping Corporation BHD 505,666 1,138
-------
TOTAL MALAYSIA COMMON STOCKS 7,045
-------
NETHERLANDS COMMON STOCKS - 7.02%
ABN AMRO Holdings NV 58,900 4,048
Aegon NV 40,000 2,834
Akzo Nobel NV 55,030 7,090
Fortis Amev NV 76,054 2,869
Hollandshce Beton Groep NV 15,804 3,432
Internationale Nederlanden Groep NV 242,845 9,536
Koninklijke Bijenkorf Beheer NV 17,400 1,148
Phillips Electronics 114,900 5,998
Royal PTT Nederland NV 76,480 2,717
Unilever NV 10,000 1,945
-------
TOTAL NETHERLANDS COMMON STOCKS 41,617
-------
</TABLE>
<TABLE>
<CAPTION>
NEW ZEALAND - 1.00% Par
FOREIGN BONDS - 0.01% Amount
Brierley Investments, Limited, ---------
<S> <C> <C>
Subordinated Convertible, 9.00%, Due 6/30/1998 $ 63 53
-------
TOTAL NEW ZEALAND FOREIGN BONDS 53
-------
</TABLE>
<TABLE>
<CAPTION>
Shares
COMMON STOCKS - 0.99% ---------
<S> <C> <C>
Brierley Investments, Limited 1,400,000 1,233
Fisher & Paykel, Limited 210,000 754
Fletcher Challenge Paper 382,500 849
Fletcher Challenge Building 775,250 2,177
Lion Nathan, Limited 355,000 854
---------
TOTAL NEW ZEALAND COMMON STOCKS 5,867
---------
TOTAL NEW ZEALAND 5,920
---------
NORWAY COMMON STOCKS - 2.14%
Den Norsk Bank, Series A 462,200 1,668
Kvaerner Industries AS 49,789 2,475
Norsk Hydro AS 40,000 1,949
Nycomed AS 278,500 4,009
Saga Petroleum, Series B Free 100,000 1,615
Unitor AS 80,000 977
---------
TOTAL NORWAY COMMON STOCKS 12,693
---------
SINGAPORE COMMON STOCKS - 0.78%
Hong Kong Land 869,149 1,808
Inchcape Berhad 275,000 960
</TABLE>
<PAGE> 31
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
------- -------
(dollars in thousands)
<S> <C> <C>
Sembawang Corporation 258,000 1,115
Singapore Finance Limited 27,000 40
Van Der Horst 240,000 690
-------
TOTAL SINGAPORE COMMON STOCKS 4,613
-------
SPAIN COMMON STOCKS - 3.76%
Banco Espana Credito SA 7,000 62
Banco Popular Espanol 7,000 1,486
Banco De Santander SA 40,860 3,077
Iberdrola SA 329,957 3,727
Repsol SA (BR) 120,100 5,040
Telefonica De Espana 308,600 7,912
Uralita (non-income producing) 119,250 992
-------
TOTAL SPAIN COMMON STOCKS 22,296
-------
SWEDEN COMMON STOCKS - 3.20%
Assidoman AB 48,000 1,202
Astra AB, "B" Free 20,700 822
Electrolux AB, "B" 44,100 2,529
Esselte AB, Class "A" 2,000 43
Esselte AB, Class "B" 17,000 388
Fastighets AB Tornet 1,970 21
Marieberg Tidnings 77,267 1,802
Nordbanken AS 29,900 918
Pharmacia & Upjohn, Incorporated 24,400 703
Skandia Forsakrings AB 23,100 668
SKF AB, "B" Free 97,300 2,108
Sparbanken Sverige AB, "A" 91,700 1,636
Stora Kopparsbergs Bergslags, "A" 42,100 582
Stora Kopparsbergs Bergslags, "B" 25,800 354
Svedala Industries, "A" Free 90,000 1,652
Svenska Cellulosa, "B" Free 53,900 1,154
Svenska Handelsbanken, "A" 3,200 88
Volvo AB 90,000 2,266
-------
TOTAL SWEDEN COMMON STOCKS 18,936
-------
SWITZERLAND COMMON STOCKS - 6.50%
ABB AG 1,100 1,333
Ciba Specialty Chemicals AG 2,453 211
Forbo Holding AG 3,280 1,322
Holderbank Financial Glarus-B 2,030 1,580
Nestle SA 7,065 8,583
Novartis AG 5,332 7,028
Schindler Holding AG 1,110 1,345
SGS Holding SA (Reg) 4,200 1,633
SGS Holding SA (BR) 240 497
SIG AG 1,540 4,228
</TABLE>
<PAGE> 32
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
------- -------
(dollars in thousands)
<S> <C> <C>
Sulzer AG (Reg) 1,800 1,240
Sulzer AG (Part Cert) 4,907 3,377
Swiss Reinsurance Company 4,316 4,997
Zurich Versicherungs 3,400 1,117
---------
TOTAL SWITZERLAND COMMON STOCKS 38,491
---------
UNITED KINGDOM COMMON STOCKS - 17.11%
Albert Fisher Group, PLC 262,500 168
Allied Domecq, PLC 516,910 3,661
Associated British Foods Group, PLC 42,400 367
Bank of Scotland 166,700 1,001
Barclays, PLC 27,900 520
Barratt Developments, PLC 350,000 1,474
BAT Industries, PLC 672,800 5,688
BG, PLC 1,150,000 3,340
British Telecommunications 503,500 3,697
BTR, PLC 1,315,600 5,390
Burmah Castrol, PLC 124,800 2,050
Burton Group, PLC 335,000 829
Chubb Security 167,200 1,215
Coats Viyella, PLC 1,573,500 3,357
Commercial Union, PLC 172,500 1,910
Cortaulds, PLC 285,000 1,538
Energy Group, PLC 124,000 981
English China Claylord Group 139,544 464
Grand Metropolitan, PLC 500,800 4,193
Hanson, PLC 468,500 2,269
Harrisons & Crosfield, PLC 1,391,800 2,766
Hillsdown Holdings, PLC 1,013,100 2,984
Hyder, PLC 238,000 3,315
Imperial Chemical Industries, PLC 27,000 307
Imperial Tobacco Group 195,100 1,282
Kwik Save Group, PLC 198,900 976
Lex Service 350,000 2,002
London Pacific Group, PLC 130,000 451
National Grid Group, PLC 203,053 736
National Power, PLC 50,000 433
National Westminster Bank, PLC 326,400 3,866
Northern Foods, PLC 500,000 1,700
Peninsular & Orient Steam Company 162,350 1,582
PowerGen, PLC 351,790 3,693
Racal Electronics, PLC 203,300 787
Reckitt & Colman, PLC 355,527 4,831
Redland, PLC 877,900 4,986
Rolls Royce, PLC 201,400 792
Royal & Sun Alliance Insurance Group 263,200 2,086
Safeway, PLC 309,677 1,711
</TABLE>
<PAGE> 33
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
------- -------
(dollars in thousands)
<S> <C> <C>
Salvesen (Christian), PLC 449,977 1,898
Scottish Hydro-Electric, PLC 78,750 503
Shell Transportation & Trading Company, PLC 45,000 796
Southern Electric, PLC 109,846 780
Storehouse 109,900 390
Tate & Lyle, PLC 276,600 2,062
Tesco, PLC 343,819 1,992
Thames Water Group, PLC 189,800 2,086
Unilever, PLC 127,300 3,351
WPP Group, PLC 300,000 1,229
Wace Group, PLC 719,700 882
---------
TOTAL UNITED KINGDOM COMMON STOCKS 101,367
---------
UNITED STATES - 11.65%
FOREIGN SECURITIES DENOMINATED IN U.S.
DOLLARS - 2.31%
Cho Hung Bank GDR 405,800 2,201
Dairy Farm International 908,000 672
G P Batteries International Limited 137,000 404
G P Batteries Warrants Expiration 11/15/2000 34,250 34
Jardine Matheson Holdings, Limited 797,000 4,384
Jardine Strategic 1,325,000 4,505
Jardine Strategic Holdings Warrants 66,250 24
Telmex ADR 35,000 1,444
---------
TOTAL FOREIGN SECURITIES DENOMINATED IN
U.S. Dollars 13,668
---------
</TABLE>
<TABLE>
<CAPTION>
Par
U. S. GOVERNMENT AND AGENCY OBLIGATIONS Amount
(NOTE A) - 6.64% -------
<S> <C> <C>
Federal Farm Credit Banks, Discount Note, 5.33%,
Due 5/19/1997 $ 3,485 3,475
Federal Home Loan Mortgage Corporation
Discount Note, 5.36%, Due 5/13/1997 4,855 4,846
Discount Note, 5.41%, Due 5/14/1997 3,005 2,999
Discount Note, 5.40%, Due 5/15/1997 5,800 5,787
Federal National Mortgage Association, Discount Note,
5.40%, Due 5/2/1997 5,780 5,778
Student Loan Mortgage Association, Discount Note,
5.40%, Due 5/7/1997 5,800 5,794
U. S. Treasury Bill
5.13%, Due 5/8/1997 329 329
4.97%, Due 5/15/1997 9,185 9,166
4.71%, Due 6/5/1997 1,203 1,197
-------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS 39,371
-------
SHORT-TERM INVESTMENTS (NOTE B) - 2.70%
Bank of New York, TD, 5.4375%, Due 5/2/1997 9,000 9,000
Nestle Capital Corporation, CP, 5.525%, Due 5/2/1997 7,000 6,997
-------
TOTAL SHORT-TERM INVESTMENTS 15,997
-------
TOTAL UNITED STATES 69,036
-------
</TABLE>
<PAGE> 34
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Shares Value
------- -------
(dollars in thousands)
<S> <C> <C>
TOTAL INVESTMENTS - 97.25% (COST $492,869) 576,207
-------------
OTHER ASSETS, NET OF LIABILITIES - 2.75% 16,293
-------------
TOTAL NET ASSETS - 100% $ 592,500
=============
</TABLE>
Based on the cost of investments of $493,013 for federal income tax purposes at
April 30, 1997, the aggregate gross unrealized appreciation was $102,432, the
aggregate gross unrealized depreciation was $19,238, and the net unrealized
appreciation of investments was $83,194.
(A) Rates associated with United States Government Bonds represent maturity
from time of purchase.
(B) Rates associated with short-term investments represent yield to next reset
date.
ABBREVIATIONS:
AB - Company (Sweden)
ADR - American Depository Receipt (United States)
AG - Company (Austria, Germany, Switzerland)
AS - Company (Denmark, Norway, Sweden)
BHD - Berhard (Malaysia)
BR - Bearer (Spain, Switzerland)
CG - Company General (France)
CP - Commercial Paper (United States)
GDR - Global Depository Receipt (United States)
NPV - No Par Value (Belgium)
NV - Company (Netherlands)
OY - Company (Finland)
PLC - Public Limited Corporation (UK)
SA - Company (France, Mexico, Spain, Switzerland)
SPA - Company (Italy)
TD - Time Deposit (United States)
<PAGE> 35
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
INDUSTRY DIVERSIFICATION
APRIL 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Percent of
Net Assets
--------
<S> <C>
Basic Industry........................................ 29.05%
Capital Goods......................................... 9.66%
Consumer Goods & Services............................. 21.25%
Energy................................................ 4.60%
Financing, Insurance & Real Estate.................... 18.23%
Transportation........................................ 1.25%
Utilities............................................. 3.87%
Short-Term Investments................................ 9.34%
Other Assets/Liabilities.............................. 2.75%
------
NET ASSETS..................... 100.00%
======
</TABLE>
<PAGE> 36
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY TRUST PORTFOLIO
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
ASSETS: (000)
----
<S> <C>
Investments in securities at value
(cost - $492,869).................. $ 576,207
Cash, including foreign currency..... 21,607
Unrealized appreciation on foreign
currency contracts ............... 2,088
Dividends and interest receivable ... 2,632
Reclaims receivable ................. 618
Receivable for investments sold ..... 246
Deferred organization costs ......... 30
---------
TOTAL ASSETS .................. 603,428
---------
LIABILITIES:
Payable for investments purchased ... 9,845
Management and investment advisory
fees payable (Note 2) ............ 777
Accrued organization costs .......... 33
Other liabilities ................... 273
---------
TOTAL LIABILITIES ............. 10,928
---------
NET ASSETS APPLICABLE TO INVESTORS'
BENEFICIAL INTERESTS ............. $ 592,500
=========
</TABLE>
<PAGE> 37
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY TRUST PORTFOLIO
STATEMENT OF OPERATIONS
Six Months Ended April 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
INVESTMENT INCOME: (000)
---
<S> <C>
Interest income ........................................ $ 1,206
Dividend income (net of foreign taxes of $784) ......... 5,539
Income derived from securities lending, net ............ 142
--------
TOTAL INVESTMENT INCOME ............................ 6,887
--------
EXPENSES:
Management and investment advisory
fees (Note 2) ........................................ 1,135
Custodian fees ......................................... 218
Professional fees ...................................... 12
Organizational Costs ................................... 4
Other expenses ......................................... 23
--------
TOTAL EXPENSES .................................... 1,392
--------
NET INVESTMENT INCOME ........................................... 5,495
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments ....................... 6,344
Net realized loss on foreign currency
transactions ........................................ (1,371)
Change in net unrealized appreciation or depreciation of
investments .......................................... 59,431
Change in net unrealized depreciation of foreign currency
contracts and translations .......................... (28,041)
--------
NET GAIN ON INVESTMENTS ........................... 36,363
--------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS ................................................... 41,858
========
</TABLE>
<PAGE> 38
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY TRUST PORTFOLIO
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, October 31,
1997 (Unaudited) 1996
--------- ---------
INCREASE IN NET ASSETS: .......................... (000)
OPERATIONS: ---
<S> <C> <C>
Net investment income .................... $ 5,495 $ 8,135
Net realized gain on investments and
foreign currency transactions ......... 4,973 11,172
Change in net unrealized appreciation or
depreciation of investments and
foreign currency translations ......... 31,390 30,752
--------- ---------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ....... 41,858 50,059
--------- ---------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Contributions ............................ 196,875 397,164
Withdrawals .............................. (50,729) (42,727)
--------- ---------
NET INCREASE IN NET ASSETS RESULTING
FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS ............ 146,146 354,437
--------- ---------
NET INCREASE IN NET ASSETS ....................... 188,004 404,496
--------- ---------
NET ASSETS:
Beginning of period .......................... 404,496 --
--------- ---------
End of Period ................................ $ 592,500 $ 404,496
========= =========
</TABLE>
FINANCIAL HIGHLIGHTS:
<TABLE>
RATIOS:
<S> <C> <C>
Expenses to average net assets
(annualized) ..................... 0.57% 0.56%
Net investment income to average net
assets (annualized) ............. 2.27% 2.50%
Portfolio turnover rate ............. 6% 19%
Average commission rate paid ........ 0.0141 0.0192
</TABLE>
<PAGE> 39
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997
(UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The AMR Investment Services Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended, as a no-load open-end management
investment company which was organized as a trust under the laws of the State of
New York pursuant to a Declaration of Trust dated as of June 27, 1995 and
amended on August 11, 1995. The AMR Investment Services International Equity
Portfolio (the "Portfolio") is one of the portfolios of the Trust. The Portfolio
commenced active operations on November 1, 1995. The Declaration of Trust
permits the Board of Trustees (the "Trustees") to issue beneficial interests in
the Portfolio.
AMR Investment Services, Inc. (the "Manager") is a wholly-owned
subsidiary of AMR Corporation, the parent company of American Airlines, Inc.
("American"), and was organized in 1986 to provide business management,
advisory, administrative and asset management consulting services.
The following is a summary of the significant accounting policies
followed by the Portfolio.
Security Valuation
Equity securities that are primarily traded on domestic securities
exchanges are valued at the last quoted sales price on a designated exchange
prior to the close of trading on the New York Stock Exchange (the "Exchange")
or, lacking any current sales, on the basis of the last current bid price prior
to the close of trading on the Exchange. Portfolio securities that are primarily
traded on foreign securities exchanges are generally valued at the preceding
closing values of such securities on their respective exchanges where primarily
traded. Over-the-counter equity securities are valued on the basis of the last
bid price on that date prior to the close of trading. Debt securities (other
than short-term securities) normally will be valued on the basis of prices
provided by a pricing service and may take into account appropriate factors such
as institution-size trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, trading characteristics and other market
data. In some cases, the prices of debt securities may be determined using
quotes obtained from brokers. Securities for which market quotations are not
readily available are valued at fair value, as determined in good faith and
pursuant to procedures approved by the Board. Investment grade short-term
obligations with 60 days or less to maturity are valued using the amortized cost
method.
Security Transactions and Investment Income
Security transactions are recorded on the trade date of the security
purchase or sale. Dividend income is recorded on the ex-dividend date except
certain dividends from foreign securities which are recorded as soon as the
information is available to the Portfolio. Interest income is earned from
settlement date, recorded on the accrual basis, and adjusted, if necessary, for
amortization of premiums or accretion of discounts on investment grade
short-term securities and zero coupon instruments. For financial and tax
reporting purposes, realized gains and losses are determined on the basis of
specific lot identification.
Currency Translation
All assets and liabilities initially expressed in foreign currency
values are converted into U.S. dollar values at the bid price of such currencies
against U.S. dollars as last quoted by a recognized dealer. Income, expenses and
purchases and sales of investments are translated into U.S. dollars at the rate
of exchange prevailing on the respective dates of such transactions. The
Portfolio includes that portion of the results of operations resulting from
changes in foreign exchange rates with net realized and unrealized gain on
investments, as appropriate.
Forward Foreign Currency Contracts
The Portfolio may enter into forward foreign currency contracts to
hedge the exchange rate risk on investment transactions or to hedge the value of
portfolio securities denominated in foreign currencies. Forward foreign currency
contracts are valued at the forward exchange rate prevailing on the day of
valuation.
Federal Income and Excise Taxes
<PAGE> 40
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997
(UNAUDITED) (CONTINUED)
The Portfolio will be treated as a partnership for federal income tax
purposes. As such, each investor in the Portfolio will be taxed on its share of
the Portfolio's ordinary income and capital gains. It is intended that the
Portfolio's assets will be managed in such a way that an investor in the
Portfolio will be able to satisfy the requirements of sub-chapter M of the
Internal Revenue Code. Accordingly, no provision for United States federal
income or excise tax is necessary.
Deferred Organization Expenses
Expenses incurred by the Portfolio in connection with its organization
are being amortized on a straight-line basis over a five-year period.
2. TRANSACTIONS WITH AFFILIATES
Management Agreement
The Trust and the Manager are parties to a Management Agreement which
obligates the Manager to provide or oversee the provision of all administrative,
investment advisory and portfolio management services. Investment assets of the
Portfolio are managed by multiple investment advisers which have entered into
separate investment advisory agreements with the Manager. As compensation for
performing the duties required under the Management Agreement, the Manager
receives from the Portfolio an annualized fee equal to .10% of the average daily
net assets of the Portfolio plus amounts paid by the Manager to the investment
advisors hired by the Manager to direct investment activities of the Portfolio.
Management fees are paid as follows (dollars in thousands):
<TABLE>
<CAPTION>
Amount paid to Investment Net Amount paid to
Management Fee Rate Management Fee Advisors Manager
------------------- -------------- -------- -------
<S> <C> <C> <C>
.25% - .90% $1,135 $893 $242
</TABLE>
Other
Certain officers or trustees of the Portfolio are also officers of the
Manager or American. The Portfolio makes no direct payments to its officers.
Unaffiliated trustees and their spouses are provided free unlimited air
transportation on American. However, the Portfolio compensates each Trustee with
payments in an amount equal to the Trustee's income tax on the value of this
free airline travel. For the period ended April 30, 1997, the cost of air
transportation was not material to the Portfolio.
3. INVESTMENT TRANSACTIONS
The aggregate cost of purchases and proceeds from sales of investments,
other than short-term obligations, for the period ended April 30, 1997 were
$146,613,000 and $26,221,000, respectively.
<PAGE> 41
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1997
(UNAUDITED) (CONTINUED)
4. COMMITMENTS
In order to protect itself against a decline in the value of particular
foreign currencies against the U.S. dollar, the Portfolio has entered into
forward contracts to deliver or receive foreign currency in exchange for U.S.
dollars as described below. The Portfolio bears the market risk that arises from
changes in foreign exchange rates, and accordingly, the unrealized gain (loss)
on these contracts is reflected in the accompanying financial statements. The
Portfolio also bears the credit risk if the counterparty fails to perform under
the contract. At April 30, 1997, the Portfolio had outstanding forward foreign
currency contracts as follows:
<TABLE>
<CAPTION>
Contracts to Deliver
(amounts in thousands) Settlement Unrealized
Date Value Gain/(Loss)
------------ ---------- ----------
<S> <C> <C> <C> <C>
3,500 AUD 1/12/98 $ 2,734 $ 1
1,246 DEM 5/5/97 720 0
10,000 DEM 6/19/97 5,796 1,075
300,000 ESP 12/2/97 2,064 246
34,000 FRF 6/19/97 5,849 949
21,700 FRF 6/19/97 3,733 524
18,500 SEK 9/16/97 2,372 420
---------- ----------
Total contracts to deliver
(Receivable amount $26,483) $23,268 $ 3,215
========== ==========
Contracts to Receive
(amounts in thousands)
10,000 DEM 6/19/97 $ 5,796 $(1,113)
135 GBP 5/1/97 219 (1)
53 GBP 5/2/97 86 0
13 GBP 5/6/97 22 0
378 HKD 5/1/97 49 0
256 IEP 5/1/97 384 (13)
1,402 NLG 5/5/97 720 0
---------- ----------
Total contracts to receive
(Payable amount $8,403) $ 7,276 $(1,127)
========== ==========
</TABLE>
5. SECURITIES LENDING
The Portfolio participates in a securities lending program under which
securities are loaned to selected institutional investors for a fee. All such
loans require collateralization with cash, securities of the U.S. Government and
its agencies or letters of credit that at all times equal at least 100% of the
market value of the loaned securities plus accrued interest. At April 30, 1997,
securities with a market value of approximately $82,376,000 were loaned by the
Portfolio. The non-cash collateral for these loans totaled $5,197,000 and the
cash collateral totaled $81,479,000.
