<PAGE>
INTRUST Funds Trust
Annual Report
For the Period Ended October 31, 1997
Money Market Fund
Short-Term Bond Fund
Intermediate Bond Fund
Stock Fund
International Multi-Manager Stock Fund
Kansas Tax-Exempt Bond Fund
AMR Investment Services International Equity Portfolio
- --------------------------------------------------------------------------------
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 risks, 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>
INDEPENDENT AUDITORS' REPORT
The Shareholders and Board of Trustees
The INTRUST Funds Trust:
We have audited the accompanying statements of assets and liabilities of INTRUST
Funds Trust-Money Market Fund, Short-Term Bond Fund, Intermediate Bond Fund,
Stock Fund, International Multi-Manager Stock Fund, and Kansas Tax-Exempt Bond
Fund (formerly the SEI Kansas Tax Exempt Trust - Kansas Tax Free Income
Portfolio) (the Trust), including the schedules of portfolio investments, as of
October 31, 1997, and the related statements of operations, statements of
changes in net assets and the financial highlights for each of the periods
indicated herein. These financial statements and the financial highlights are
the responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on our
audits. With respect to the Kansas Tax-Exempt Bond Fund, 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
October 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 audits provide 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 at October 31, 1997, and the results of its operations, the
changes in its net assets and the financial highlights for the periods then
ended, in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Columbus, Ohio
December 19, 1997
<PAGE>
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INTRUST Family of Mutual Funds - October 31, 1997
To Our Shareholders:
We are pleased to present this annual report, the first such report to
encompass our fully diversified family of six mutual funds. With asset
allocation becoming an increasingly important investment tool, our shareholders
can now invest in nearly every asset class in the market - from domestic and
international stock funds; to intermediate, short-term and tax-exempt bond
funds; to a highly liquid money market fund. We are gratified by your response
to our new offerings, as net assets under management have grown to $379 million
during the last 10 months.
Quite honestly, this has been a marvelous time to expand our fund
family. Despite some dramatic, short-term volatility, the stock and bond markets
both rewarded most investors with returns that were generous by historical
standards. Building upon stellar performances in 1995 and 1996, stocks continued
their strong, upward surge for the period ended October 31, 1997. And bonds,
while unable to match the powerful performance of equities, provided
fixed-income investors with "real returns" (total returns minus inflation) that
most shareholders would find satisfactory.
Still, as I mentioned above, these excellent results were not achieved
without some sharp declines along the way. Reacting adversely to the Federal
Reserve's decision to raise short-term interest rates in late March, stock and
bond prices plunged in breathtaking fashion. (The Dow Jones Industrial Average,
for example, rapidly lost nearly 10 percent of its value, while the NASDAQ
dropped even further.) However, the major market indices quickly regained their
equilibrium and streaked higher to new levels; the Dow, for example, climbed to
a record high of 8259 on August 6, 1997.
However, barely 11 weeks later, the Dow suffered its largest,
single-day point loss in history, plummeting 554 points on October 27, 1997.
Some investors may have wondered, was this the end of the bull market? Not yet,
for as I write this letter at the end of the third week of November, the market
has recaptured all the ground it lost on October 27, 1997, and then some.
At the same time, interest rates - which certainly influence stock
prices, but have an especially strong impact on bonds - fluctuated sharply
during the year, driving fixed-income securities both sharply higher and lower.
But when the dust cleared at the end of our fiscal year, long-term interest
rates were lower than they had been 12 months earlier, which was reflected in
generally higher bond prices.
<PAGE>
What lessons can be learned from the turmoil of the last year? First,
that prudent investing is best viewed as a long-term enterprise. Stocks and
bonds certainly have down periods, but historically, investors who have
approached the markets with patience and conviction have been rewarded
handsomely over long periods of time.*
And second, we are convinced that a more diversified portfolio can not
only provide the potential for positive, long-term returns, but can also help
smooth out an investor's ride along the way. For that reason, we have put
together what we feel is a stellar lineup of fund offerings, all run by
investment managers with solid, long-term track records.
As always, we remain committed to serving your investment needs in
every way we can, providing the services of the best fund managers we can find,
and maintaining open lines of communication. We thank you for helping us achieve
an outstanding 10 months at INTRUST, and we look forward to serving you in the
years to come.
Sincerely,
John Maurer, Jr. David Bunstine
Senior Vice President & President
Chief Investment Officer INTRUST Funds Trust
INTRUST Bank N.A.
INTRUST Bank provides investment advisory and other services to the Funds and
receives a fee for those services. This material is authorized for distribution
only when preceded or accompanied by a prospectus. The Funds are distributed by
BISYS Fund Services. Mutual funds are NOT INSURED BY THE FDIC. There is no bank
guarantee. Mutual funds may lose value. The views expressed in this Shareholder
Letter reflect those of the Chief Investment Officer through the end of the
period covered by the report as stated on the cover. The Chief Investment
Officer's views are subject to change based on market and other conditions.
* Past performance is no guarantee of future results.
<PAGE>
INTRUST Funds Trust Money Market Fund
The INTRUST Funds Trust Money Market Fund is managed by Fritz Curtis of AMR
Investment Services, Inc., subadvisor to the Fund. Mr. Curtis has more than six
years experience as an investment portfolio manager, and holds a B.B.A. in
Finance and Information Systems from Baylor University and an M.B.A. in
International Management from the University of Dallas.
Objectives. The Fund seeks to provide investors with current income,
liquidity and a stable net asset value of $1.00 per share./1/
Strategy. We invest in high-quality, short-term obligations such as
certificates of deposit, commercial paper issued by corporations, bankers'
acceptances, medium-term notes, variable-rate securities. Generally, the
variable-rate securities are indexed to Libor or Fed funds, have final
maturities of 397 days or less, and reset quarterly.
Performance. As of October 31, 1997, the Fund's 7-Day SEC yield was
4.87%. The average maturity of the Fund's holdings was 38 days./2/ The Fund's
inception date was January 23, 1997. For the period from inception the Fund
produced a total return 3.86%.
Our process is a top-down approach whereby we analyze macro economic
data to monitor economic momentum, inflation and monetary policy. Based upon
these factors the portfolio's composition and weighted average maturity is
constructed. In 1997, the portfolio was overweighted in one year variable-rate
securities and maintained a relatively neutral weighted average maturity. This
strategy performed well in a year of relatively stable monetary policy, economic
expansion and low inflation.
/1/ There can be no assurance that the Fund will be able to maintain a stable
net asset value of $1.00 per share. An investment in the Fund in not insured by
the FDIC or any other agency. Fund shares are not deposits or obligations of, or
guaranteed or endorsed by, INTRUST Bank or its affiliates.
/2/ The composition of the Fund's holdings is subject to change
/3/ For the period ended October 31, 1997. Past performance is no indication of
future performance. The total return set forth may reflect the waiver of a
portion of the Fund's fees for certain periods since the inception date. In such
instances, and without waiver of fees, total return would have been lower. The
INTRUST Funds Trust Money Market Fund commenced operations on January 23, 1997.
The performance also reflects reinvestment of all dividends and capital-gains
distributions. The Fund's investment return and principal value will fluctuate,
so that an investor's shares, when redeemed, may be worth more or less than
their original purchase price.
<PAGE>
INTRUST Funds Trust Short-Term Bond Fund
The INTRUST Funds Trust Short-Term Bond Fund is managed by Karl Tourville and
Richard Merriam of Galliard Capital Management, Inc., subadvisor to the Fund.
Mr. Tourville holds B.A. and M.B.A. degrees from the University of St. Thomas
and has more than nine years of investment management experience. Mr. Merriam
received a B.A. from the University of Michigan and an M.B.A. from the
University of Minnesota, and has more than 14 years of investment management
experience.
Objectives. We seek to provide as high a level of income as is
consistent with our philosophy of maintaining liquidity and safety of principal,
by investing in investment-grade, short-term securities.
Strategy. We do not speculate on the direction of interest rates.
Instead, we practice fundamental security analysis to find the most attractively
priced, short-term securities available, and we invest across all sectors of the
fixed-income market. We utilize a rigorous cash flow valuation process and pay
strict attention to the timely execution of trades.
As of October 31, 1997, the portfolio was invested in the following
sectors: mortgage-backed securities 24.8%(of total investments), corporate bonds
19.1%, agencies 21.6%, asset-backed securities 16.5%, adjustable-rate mortgages
3.3%, taxable municipals 4.8%, U.S. Treasuries 6.0%, and pass-through mortgage
securities 3.9%. These securities maintained an average credit quality of
Aa1/AA+, with an average maturity of 3.0 years.*
Performance. The Fund's inception date was January 21, 1997. For the
period from inception through October 31, 1997, the Fund produced a total return
of 5.13%./1/ In comparison, the Lehman Brothers 1-3 Year Bond Index (the
portfolio "benchmark") rose 5.46%./2/
Short-term debt instruments, such as the ones held by the Fund, are not
as sensitive to interest-rate fluctuations as are longer-term bonds. However,
the direction and magnitude of interest-rate moves affect all fixed-income
securities, and the funds that buy them. As a result, we believe the Fund should
benefit modestly if, as we expect, interest rates gradually decline over the
next six to 12 months.
<PAGE>
SHORT-TERM BOND FUND
AGGREGATE ANNUAL TOTAL RETURN/3/
<TABLE>
01/21/97 04/30/97 10/31/97
-------- -------- --------
<S> <C> <C> <C> <C>
Short-Term Bond Fund 10,000 10,102 10,513 Total Return
----------------------------------- ------------
Lehman Brothers 1-3 Year Government Index 10,000 10,125 10,546 5.46%
----------------------------------- ------------
</TABLE>
Aggregate Total Return as of 10/31/97
Short-Term Bond Fund
Inception Date 01/21/97
Since Inception 5.13%
* The composition of the Fund's holdings is subject to change.
/1/ For the period ended October 31, 1997. Past performance is no indication of
future performance. The total return set forth may reflect the waiver of a
portion of the Fund's fees for certain periods since the inception date. In such
instances, and without waiver of fees, total return would have been lower. The
INTRUST Funds Trust Short-Term Bond Fund commenced operations on January 21,
1997. The performance also reflects reinvestment of all dividends and
capital-gains distributions. The Fund's investment return and principal value
will fluctuate, so that an investor's shares, when redeemed, may be worth more
or less than their original purchase price.
/2/ The Lehman Brothers 1-3 Year Government Index is an unmanaged index
generally representative of short-term government bonds. The index does not
reflect the deduction of expenses associated with a mutual fund, such as
investment-management and fund-accounting fees.
<PAGE>
INTRUST Funds Trust Intermediate Bond Fund
The INTRUST Funds Trust Intermediate Bond Fund is managed by Karl Tourville and
Richard Merriam of Galliard Capital Management, Inc., subadvisor to the Fund.
Mr. Tourville holds B.A. and M.B.A. degrees from the University of St. Thomas
and has more than nine years of investment management experience. Mr. Merriam
holds a B.A. from the University of Michigan and an M.B.A. from the University
of Minnesota, and has more than 14 years of investment management experience.
Objectives. We seek to provide as high a level of current income as is
consistent with our philosophy of managing the Fund for total return and
investing primarily in high-quality fixed income securities.
Strategy. We do not attempt to "time" the direction of interest rates.
Instead, we practice fundamental security analysis to find the most attractively
priced securities available, and we invest across all sectors of the fixed-
income market. We utilize a rigorous cash flow valuation process and pay strict
attention to the timely execution of trades.
As of October 31, 1997, the portfolio was invested in the following
sectors: corporate bonds 41.8%(of total investments), mortgage-backed securities
21.1%, asset-backed securities 17.3%, U.S. Treasuries 5.5%, adjustable-rate
mortgages 2.9%, agencies 8.6% and cash equivalents 3.3%. These securities
maintained an average credit quality of AA2/AA, with an average maturity of 5.2
years.*
Performance. The Fund's inception date was January 21, 1997. For the period
from inception through October 31, 1997, the Fund produced a total return of
6.77%./1/ In comparison, the Lehman Brothers Intermediate Government/Corporate
Index (the portfolio "benchmark") rose 6.81%./2/
Although we do not base investment decisions on interest-rate speculation,
the performance of the Fund is affected by the direction and magnitude of
interest-rate moves. Looking forward, we expect rates to gradually decline over
the next six to 12 months, which has the potential to boost the Fund's total
return.
<PAGE>
INTERMEDIATE BOND FUND
AGGREGATE ANNUAL TOTAL RETURN/3/
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
01/21/97 04/30/97 10/31/97 Total Return
-------- -------- -------- ------------
<S> <C> <C> <C> <C>
Intermediate Bond Fund 10,000 10,061 10,677
Lehman Brothers Intermediate
Government/Corporate Index 10,000 10,108 10,681 6.81%
</TABLE>
<TABLE>
<CAPTION>
Aggregate Total Return as of 10/31/97
Intermediate Bond Fund
----------------------
<S> <C>
Inception Date 01/21/97
Since Inception 6.77%
</TABLE>
* The composition of the Fund's holdings is subject to change.
/1/ For the period ended October 31, 1997. Past performance is no indication of
future performance. The total return set forth may reflect the waiver of a
portion of the Fund's fees for certain periods since the inception date. In such
instances, and without waiver of fees, total return would have been lower. The
INTRUST Funds Trust Intermediate Bond Fund commenced operations on January 21,
1997. The performance also reflects reinvestment of all dividends and
capital-gains distributions. The Fund's investment return and principal value
will fluctuate, so that an investor's shares, when redeemed, may be worth more
or less than their original purchase price.
/2/ The Lehman Brothers Intermediate Government/Corporate Index is an unmanaged
index generally representative of intermediate-term government and corporate
bonds. The index does not reflect the deduction of expenses associated with a
mutual fund, such as investment-management and fund-accounting fees.
<PAGE>
INTRUST Funds Trust Stock Fund
The INTRUST Funds Trust Stock Fund is managed by a team of six portfolio
managers from Ark Asset Management, subadvisor to the Fund. The team is headed
by Charles Hetzel, who has 32 years of experience working with Ark's Large Cap
Value investment approach. Mr. Hetzel holds a B.S. in economics from the
University of Utah and an M.B.A. from the Columbia Graduate School of Business
Administration.
Objectives. Our goal is to outperform the S&P 500 index over a full market
cycle, with particular emphasis on reducing losses during phases.
Strategy. Our approach is driven by a careful analysis and prudent
selection of individual stocks. Ark Asset Management's philosophy is to invest
in large capitalization issues that sell at reasonable prices relative to their
future earnings. We believe that this will permit us to participate in up
markets and that our valuation discipline (high price/earnings multiples are
generally avoided) will help cushion our portfolios in down markets.
Our sell discipline is an important part of our investment process. Each
security purchased has a carefully established, closely-monitored upside price
objective and downside review point. When a security reaches either point, it is
generally sold. This has the potential to help preserve profits and reduce
losses.
As of October 31, 1997, 95.1% of total investments were invested in stocks,
with 4.9% in cash or cash equivalents.*
Performance. The Fund's inception date was January 21, 1997. For the period
from inception through October 31, 1997, the Fund produced a total return of
13.10%./1/ In comparison, the S&P 500 Index (the portfolio "benchmark") rose
18.52%./2/
The Fund trailed its benchmark primarily because the market was driven by
the type of highly valued growth stocks that generally do not fit our value
criteria. Also, our sell discipline prompted us to reduce our holdings in highly
appreciated financial stocks, which continued to rise after we sold them.
Looking ahead, we believe it will be difficult for the stock market to
emulate its last three years, during which equities produced annualized returns
of nearly 30%. We expect the market's performance to be more subdued, perhaps
returning to the historical annualized averages and with a greater degree of
volatility.
<PAGE>
STOCK FUND
AGGREGATE ANNUAL TOTAL RETURN/3/
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
01/21/97 04/30/97 10/31/97 Total Return
-------- -------- -------- ------------
<S> <C> <C> <C> <C>
Stock Fund 10,000 9,950 11,130
S&P 500 Index 10,000 10,291 11,852 18.52%
</TABLE>
<TABLE>
<CAPTION>
Aggregate Total Return as of 10/31/97
Stock Fund
----------
<S> <C>
Inception Date 01/21/97
Since Inception 13.10%
</TABLE>
* The composition of the Fund's holdings is subject to change.
/1/ For the period ended October 31, 1997. Past performance is no indication of
future performance. The total return set forth may reflect the waiver of a
portion of the Fund's fees for certain periods since the inception date. In such
instances, and without waiver of fees, total return would have been lower. The
INTRUST Funds Trust Stock Fund commenced operations on January 21, 1997. The
performance also reflects reinvestment of all dividends and capital-gains
distributions. The Fund's investment return and principal value will fluctuate,
so that an investor's shares, when redeemed, may be worth more or less than
their original purchase price.
/2/ The S&P 500 Index is an unmanaged index generally representative of the
stock market. The index does not reflect the deduction of expenses associated
with a mutual fund, such as investment-management and fund-accounting fees.
<PAGE>
INTRUST Funds Trust International Multi-Manager Stock Fund/1/
The INTRUST Funds Trust International Multi-Manager Stock Fund (the "Fund")
seeks to achieve its investment objective by investing all of its investable
assets in the AMR Investment Services International Equity Portfolio (the
"Portfolio"), which is managed by AMR Investment Services, Inc. ("AMR"), a
wholly owned subsidiary of AMR Corporation. Practicing a "multi-manager"
investment style, AMR apportions responsibility for making investment management
decisions to three subadvisors: Templeton Investment Counsel Inc., Morgan
Stanley Asset Management Inc., and Hotchkis and Wiley.
Objectives. The primary goal is to provide shareholders with long-term
capital appreciation by investing primarily in stocks of attractive companies in
developed markets outside the United States.
Strategy. All three portfolio subadvisors employ a value style of
investing, with some distinct differences. Templeton combines value screens and
research sources with intensive fundamental analysis; Morgan Stanley emphasizes
low price-to-cash flow and price-to-book ratios; while Hotchkis and Wiley
focuses on earnings and dividend yields. The managers all perform quantitative
screening, targeting stocks that have lower valuation ratios, and higher growth
prospects, than their respective markets. In addition, analysts routinely visit
the companies in which they are interested, to gain firsthand knowledge of a
companies' products, services and management.
As of October 31, 1997, the Portfolio was invested as follows
(approximately): Europe 63.6% (of total investments), Asia 21.5%, Canada/Mexico
3.0%, cash and other assets 11.9%.*
Performance. The Fund's inception date was January 20, 1997. For the
period from inception through October 31, 1997, the Fund produced a total return
of 9.70%./2/ In comparison, the Morgan Stanley Europe, Australia and Far East
(EAFE) Index (the portfolio "benchmark") rose 5.85% from 1/31/97 to 10/31/97
(the chart below shows performance of the Fund versus the EAFE Index from
January 31, 1997 through October 31, 1997)./3/
Fund performance was strong relative to the benchmark because our
bottom-up approach led us to be overweighted in Europe (a strong performer) and
underweighted in Japan (a weak region). As often is the case with our investment
style, country and regional weightings - which proved to be positive for the
Fund - were the direct result of individual stock selection.
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL MULTI-MANAGER STOCK FUND
AGGREGATE ANNUAL TOTAL RETURN
<S> <C> <C> <C> <C>
01/31/97 04/30/97 10/31/97
--------------------------------
International Stock Fund 9,890 10,120 10,970 Total Return
-------------------------------- -------------
Morgan Stanley Europe, Australasia 10,000 10,263 10,585 5.85%
and Far East Index (EAFA) -------------------------------- -------------
</TABLE>
<TABLE>
<CAPTION>
Aggregate Total Return as of 10/31/97
International Stock Fund
<S> <C>
Inception Date 01/20/97
Since Inception 9.70%
From 1/31/97 to 10/31/97 10.92%
</TABLE>
* The composition of the Fund's holdings is subject to change.
/1/International investing involves increased risk and volatility.
/2/For the period ended October 31, 1997. Past performance is no indication of
future performance. The total return set forth may reflect the waiver of a
portion of the Fund's fees for certain periods since the inception date. In such
instances, and without waiver of fees, total return would have been lower. The
INTRUST Funds Trust International Multi-Manager Stock Fund commenced operations
on January 20, 1997. The performance also reflects reinvestment of all dividends
and capital-gains distributions. The Fund's investment return and principal
value will fluctuate, so that an investor's shares, when redeemed, may be worth
more or less than their original purchase price.
/3/The Morgan Stanley Europe,Australia and Far East (EAFE) Index is an unmanaged
index generally representative of the aggregate performance of international
stock markets. The index does not reflect the deduction of expenses associated
with a mutual fund, such as investment-management and fund-accounting fees.
<PAGE>
INTRUST Funds Trust 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.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 seek to preserve capital while producing the
highest-available income that is free from both federal and Kansas state income
taxes. More than 99% of the income 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 October 31, 1997, 95.2% (of total investments) was comprised of
Kansas bonds with 3.5% and 0.6% invested in debt obligations from Puerto Rico
and Guam, respectively and 0.7% in cash equivalents. The securities within the
Fund maintained an average credit quality of AA, with an average maturity of
10.23 years.*
Performance. From the period September 1, 1997 through October 31,
1997, the Fund produced a total return of 1.51%./1/ In comparison, the Lehman
Brothers 7-Year General Obligation Index (the portfolio "benchmark") rose
1.69%./2/ The long-term performance of the Fund is shown below, from December
31, 1990, through October 31, 1997 versus the Lehman Brothers 7 year General
Obligation Index. The Funds inception date is December 10, 1997.
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;
in the last two months alone, the average maturity widened by nearly a full
year. Our approach was rewarded, as, on a point-to-point basis from October 31,
1996 to October 31, 1997, interest rates declined and the value of the bonds in
our portfolio grew accordingly.
Looking ahead to the next six to 12 months, we believe interest rates
will remain in a narrow trading range - with a good possibility of a breakout to
lower rates, which would be a positive development for the Fund.
<PAGE>
KANSAS TAX-EXEMPT BOND FUND
AVERAGE ANNUAL TOTAL RETURN/1/
<TABLE>
<CAPTION>
Return from
8/31/97 to
12/31/90 10/31/91 10/31/92 10/31/93 10/31/94 10/31/95 10/31/96 10/31/97 10/31/97
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Kansas Tax-Exempt Bond Fund 9,970 10,671 11,497 12,879 12,687 14,052 14,691 15,723 1.69%
Lehman Brothers 7-Year General
Obligation Index 10,000 10,896 11,764 13,162 12,896 14,534 15,224 16,380
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return as of 10/31/97
Kansas Tax-Exempt Bond Fund
<S> <C>
Inception Date 12/10/90
Since Inception 6.78%
1 Year 7.02%
3 Year 7.41%
5 Year 6.46%
From 12/31/90 to 6.83%
10/31/97
</TABLE>
- --------
* The composition of the Fund's holdings is subject to change.
/1/ For the period ended October 31, 1997. Past performance is no indication of
future performance. The total return set forth may reflect the waiver of a
portion of the Fund's fees for certain periods since the inception date. In such
instances, and without waiver of fees, total return 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 or less 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
Funds Trust Kansas Tax-Exempt Bond 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. The performance also reflects reinvestment of all dividends and
capital-gains distributions.
/2/ The Lehman Brothers 7-Year General Obligation Index is an unmanaged index
generally representative of intermediate-term municipal bonds. The index does
not reflect the deduction of expenses associated with a mutual fund, such as
investment-management and fund-accounting fees.
<PAGE>
THE INTRUST FUNDS TRUST
Statements of Assets and Liabilities
October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Money Short-Term Intermediate International Kansas
Market Bond Bond Stock Multi-Manager Tax-Exempt
Fund Fund Fund Fund Stock Fund Bond Fund
------------ ------------ ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $55,319,083;
$52,002,380; $45,590,839; $78,295,525;
$101,552,518, respectively) $ 55,319,083 $ 52,461,717 $ 46,604,922 $ 80,161,921 $ --- $ 104,527,537
Investment in International Equity Portfolio,
at value (cost $40,258,232) --- --- --- --- 41,164,744 ---
Repurchase agreements, at cost
------------ ------------ ------------ ------------ ------------- -------------
Total 55,319,083 52,461,717 46,604,922 80,161,921 41,164,744 104,527,537
Interest and dividends receivable 406,186 527,346 583,903 105,737 --- 1,540,295
Receivable for investments sold --- 2,059,766 2,093,433 1,171,254 --- ---
Receivable for capital shares issued --- --- --- --- 747 ---
Receivable from adviser --- --- --- --- --- ---
Unamortized organization costs 91,115 20,275 19,012 20,932 11,110 ---
Prepaid expenses and other assets 3,780 1,665 2,626 1,596 775 9,797
------------ ------------ ------------ ------------ ------------- -------------
Total Assets 55,820,164 55,070,769 49,303,896 81,461,440 41,177,376 106,077,629
------------ ------------ ------------ ------------ ------------- -------------
LIABILITIES:
Cash overdraft --- 1,051,021 --- --- --- ---
Dividends payable 209,180 258,738 220,552 --- --- 445,238
Payable for investments purchased --- 1,025,322 2,542,178 1,508,223 --- 1,993,285
Payable for capital shares redeemed --- --- --- --- --- ---
Net variation margin on futures contracts --- --- --- --- --- ---
Accrued expenses and other payables:
Investment advisory fees 4,311 8,984 11,073 60,547 12,192 ---
Sub Investment advisory fees
Administration fees 896 906 753 1,317 492 ---
Custodian 1,073 1,454 1,343 2,203 --- ---
12b-1 fees --- --- --- --- --- ---
Shareholder servicing fees 367 3,227 2,518 5,025 2,486 ---
Registration & filing fees 18,189 19,686 18,570 25,448 12,421 2,986
Legal & audit fees 17,448 16,669 9,191 20,707 12,710 14,643
Other 2,911 2,474 5,834 3,535 1,892 5,617
------------ ------------ ------------ ------------ ------------- -------------
Total Liabilities 254,375 2,388,481 2,812,012 1,627,005 42,193 2,461,769
------------ ------------ ------------ ------------ ------------- -------------
NET ASSETS:
Capital 55,553,169 52,259,859 45,590,860 73,869,705 39,447,420 100,308,703
Undistributed net investment income 12,264 6,163 5,167 276,215 445,815 ---
Accumulated undistributed net realized gains
(losses) from investment transactions 356 (43,071) (118,226) 3,822,119 335,436 332,138
Net unrealized appreciation (depreciation)
from investments --- 459,337 1,014,083 1,866,396 906,512 2,975,019
------------ ------------ ------------ ------------ ------------- -------------
Net Assets $ 55,565,789 $ 52,682,288 $ 46,491,884 $ 79,834,435 $ 41,135,183 $ 103,615,860
============ ============ ============ ============ ============= =============
Outstanding Units of Beneficial Interest
(Shares): 55,565,433 5,225,395 4,554,183 7,060,360 3,749,622 9,656,896
============ ============ ============ ============ ============= =============
Net Asset Value:
Institutional Service Shares
Offering and redemption price per share $ 1.00 $ 10.08 $ 10.21 $ 11.31 $ 10.97 $ 10.73
============ ============ ============ ============ ============= =============
</TABLE>
See notes to financial statements.
<PAGE>
THE INTRUST FUNDS TRUST
Statements of Operations
For the periods ended October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Money Short-Term Intermediate International Kansas
Market Bond Bond Stock Multi-Manager Tax-Exempt
Fund (a) Fund (b) Fund (b) Fund (b) Stock Fund (c) Bond Fund (d)
------------- ------------ ------------ ----------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 2,721,575 $ 1,971,736 $ 1,770,827 $ 12,295 $ --- $ 895,031
Dividend income --- 55,227 56,900 857,037 --- 4,627
Income from securities lending --- --- --- --- --- ---
INVESTMENT INCOME ALLOCATED FROM
INTERNATIONAL EQUITY PORTFOLIO:
Interest income --- --- --- --- 128,331 ---
Dividend income --- --- --- --- 599,127 ---
Income from securities lending --- --- --- --- 3,000 ---
Expenses --- --- --- --- (124,445) ---
------------- ------------ ------------ ----------- -------------- -------------
Total Income 2,721,575 2,026,963 1,827,727 869,332 606,013 899,658
------------- ------------ ------------ ----------- -------------- -------------
EXPENSES:
Investment advisory fees 120,772 129,156 108,244 423,540 87,171 50,811
Administration fees 96,617 64,579 54,123 84,709 32,690 33,874
12b-1 fees 120,770 80,723 67,653 105,886 54,482 ---
Shareholder servicing fees 35,565 25,276 21,112 33,341 17,134 13,550
Custodian and accounting fees 33,937 34,470 33,702 35,360 23,303 20,878
Legal and audit fees 53,865 30,334 19,627 35,072 19,511 14,950
Organization costs 12,084 3,532 3,292 3,568 2,296 ---
Trustees' fees and expenses 9,807 3,848 4,842 4,418 2,486 111
Transfer agent fees 3,933 2,666 2,630 2,990 2,429 2,371
Registration and filing fees 20,577 20,546 19,403 26,337 13,088 1,198
Printing costs 16,943 5,548 8,050 6,644 3,537 1,294
Other 11,295 2,833 2,756 2,935 1,651 36
------------- ------------ ------------ ----------- -------------- -------------
Total expenses before
waivers/reimbursements 536,165 403,511 345,434 764,800 259,778 139,073
Less waivers/reimbursements (193,233) (151,370) (100,365) (163,887) (73,122) (103,383)
------------- ------------ ------------ ----------- -------------- -------------
Net Expenses 342,932 252,141 245,069 600,913 186,656 35,690
------------- ------------ ------------ ----------- -------------- -------------
Net Investment Income 2,378,643 1,774,822 1,582,658 268,419 419,357 863,968
------------- ------------ ------------ ----------- -------------- -------------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains (losses) from investment
transactions 356 (43,673) (119,472) 3,822,119 832,732 192,740
Net change in unrealized appreciation
(depreciation) from investments --- 459,337 1,014,083 1,866,396 906,512 511,072
------------- ------------ ------------ ----------- -------------- -------------
Net realized/unrealized gains (losses)
from investments 356 415,664 894,611 5,688,515 1,739,244 703,812
------------- ------------ ------------ ----------- -------------- -------------
Change in net assets
resulting from operations $ 2,378,999 $ 2,190,486 $ 2,477,269 $ 5,956,934 $ 2,158,601 $ 1,567,780
============= ============ ============ =========== ============== =============
</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.
(d) For the period from September 1, 1997, through October 31, 1997. The Kansas
Tax-Exempt Bond Fund changed its fiscal year end to October 31, 1997.
See notes to financial statements.
<PAGE>
THE INTRUST FUNDS TRUST
Statements of Changes in Net Assets
================================================================================
<TABLE>
<CAPTION>
Money
Market Short-Term Intermediate
Fund Bond Fund Bond Fund
-------------- --------------- ---------------
January 23, January 21, January 21,
1997 to 1997 to 1997 to
October 31, October 31, October 31,
1997 (a) 1997 (a) 1997 (a)
-------------- --------------- ---------------
<S> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 2,378,643 $ 1,774,822 $ 1,582,658
Net realized gains (losses)
from investment transactions 356 (43,673) (119,472)
Net change in unrealized appreciation (depreciation)
from investments --- 459,337 1,014,083
-------------- --------------- ---------------
Change in net assets resulting from operations 2,378,999 2,190,486 2,477,269
-------------- --------------- ---------------
Distributions to shareholders:
From net investment income (2,378,643) (1,774,822) (1,582,658)
In excess of net investment income --- --- ---
From net realized gains from investment transactions --- --- ---
In excess of net realized gains from investment
transactions --- --- ---
Distributions to Premium Class shareholders:
From net investment income --- --- ---
In excess of net investment income --- --- ---
From net realized gains from investment transactions --- --- ---
In excess of net realized gains from investment
transactions --- --- ---
-------------- --------------- ---------------
Change in net assets from shareholder distributions (2,378,643) (1,774,822) (1,582,658)
-------------- --------------- ---------------
Capital Transactions:
Proceeds from shares issued 288,738,958 59,937,947 48,871,160
Dividends reinvested 3,437 271,696 183,598
Cost of shares redeemed (233,176,962) (7,943,019) (3,457,485)
-------------- --------------- ---------------
Change in net assets from share transactions 55,565,433 52,266,624 45,597,273
-------------- --------------- ---------------
Change in net assets 55,565,789 52,682,288 46,491,884
Net Assets:
Beginning of period --- --- ---
-------------- --------------- ---------------
End of period $ 55,565,789 $ 52,682,288 $ 46,491,884
============== =============== ===============
Share Transactions:
Issued 288,738,958 5,989,140 4,881,163
Reinvested 3,437 27,099 18,288
Redeemed (233,176,962) (790,844) (345,268)
============== =============== ===============
Change in shares 55,565,433 5,225,395 4,554,183
============== =============== ===============
Undistributed net investment
income included in net assets:
End of period $ --- $ --- $ ---
============== =============== ===============
</TABLE>
(a) Period from commencement of operations
See notes to financial statements.
<PAGE>
THE INTRUST FUNDS TRUST
Statements of Changes in Net Assets
===============================================================================
<TABLE>
<CAPTION>
International
Stock Multi-Manager
Fund Stock Fund Kansas Tax-Exempt Bond Fund
-------------- -------------- --------------------------------------
January 21, January 20, September 1, Year Year
1997 to 1997 to 1997 to ended ended
October 31, October 31, October 31, August 31, August 31,
1997 (a) 1997 (a) 1997(b) 1997(c) 1996(c)
-------------- -------------- ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 268,419 $ 419,357 $ 863,968 $ 4,186,899 $ 3,578,839
Net realized gains (losses)
from investment transactions 3,822,119 832,732 192,740 142,735 131,814
Net change in unrealized appreciation
(depreciation) from investments 1,866,396 906,512 511,072 1,312,942 (902,765)
-------------- -------------- ------------- ------------- ------------
Change in net assets resulting from operations 5,956,934 2,158,601 1,567,780 5,642,576 2,807,888
-------------- -------------- ------------- ------------- ------------
Distributions to shareholders:
From net investment income --- --- (863,968) (4,508,562) (3,543,885)
In excess of net investment income
From net realized gains from investment transactions
In excess of net realized gains from investment
transactions
Distributions to Premium Class shareholders:
From net investment income
-------------- -------------- ------------- ------------- ------------
In excess of net investment income
From net realized gains from investment transactions
In excess of net realized gains from investment
transactions
-------------- -------------- ------------- ------------- ------------
Change in net assets from shareholder distributions --- --- (863,968) (4,508,562) (3,543,885)
-------------- -------------- ------------- ------------- -----------
Capital Transactions:
Proceeds from shares issued 82,543,202 41,627,048 7,791,225 31,077,025 18,206,336
Dividends reinvested --- --- 10,885 1,369 -
Cost of shares redeemed (8,665,701) (2,650,466) (1,669,969) (7,497,873) (11,238,647)
-------------- -------------- ------------- ------------- ------------
Change in net assets from share transactions 73,877,501 38,976,582 6,132,141 23,580,521 6,967,689
-------------- -------------- ------------- ------------- ------------
Change in net assets 79,834,435 41,135,183 6,835,953 24,714,535 6,231,692
-------------- -------------- ------------- ------------- ------------
Net Assets:
Beginning of period --- --- 96,779,907 72,065,372 65,833,680
-------------- -------------- ------------- ------------- ------------
End of period $ 79,834,435 $ 41,135,183 $103,615,860 $ 96,779,907 $72,065,372
============== ============== ============= ============= ============
Share Transactions:
Issued 7,832,137 3,991,244 729,086 2,933,096 1,718,864
Reinvested --- --- 1,018 129 -
Redeemed (771,777) (241,622) (156,177) (707,944) (1,056,863)
============== ============== ============= ============= ============
Change in shares 7,060,360 3,749,622 573,927 2,225,281 662,001
============== ============== ============= ============= ============
Undistributed net investment income included in
net assets:
End of period $ 268,419 $ 419,357 $ --- $ --- $ 321,663
============== ============== ============= ============= ============
</TABLE>
(a) Period from commencement of operations
(b) For the period from September 1, 1997 through October 31, 1997. The fund
changed its fiscal year end from August to October.
(c) Formerly the Kansas Tax Free Income Portfolio of the SEI Tax-Exempt Trust.
See Note 1 for further information.
See notes to financial statements.
<PAGE>
THE INTRUST FUNDS TRUST
- --------------------------------------------------------------------------------
MONEY MARKET FUND
Schedule of Portfolio Investments
October 31, 1997
<TABLE>
<CAPTION>
Principal Amortized
Amount Cost
------ ----
<S> <C> <C>
BANK NOTE (5.4%)
Banking (5.4%)
Comerica Bank, Detroit, 5.58%*, 9/11/98 $ 3,000,000 $ 2,998,359
---------
Total Bank Note (Cost $2,998,359) 2,998,359
---------
BANKERS ACCEPTANCE (4.4%)
Bank of Tokyo Mitsubishi Ltd., New York, 5.68%, 02/05/98 2,500,000 2,462,733
---------
Total Bankers Acceptance (Cost $2,462,733) 2,462,733
---------
CERTIFICATES OF DEPOSIT (43.8%)
Domestic (21.2%)
Banco Popular, 5.68%*, 6/15/98 3,000,000 3,000,000
Corestates Bank, N.A., 5.66%*, 4/9/98 3,000,000 3,000,000
Mellon Bank, N.A., Pittsburgh, 5.66%*, 6/16/98 3,000,000 3,000,000
US National Bank, Oregon, 5.59%*, 6/22/98 2,800,000 2,799,036
---------
11,799,036
----------
Yankee Certificate of Deposit (22.6%)
Banca CRT, SpA, 5.72%*, 2/20/98 3,000,000 3,000,000
Christiania, 5.66%*, 6/29/98 3,000,000 3,000,000
Instituto Bancario San Paolo, SpA, 5.66%*, 5/22/98 3,000,000 3,000,000
Postipankki, 5.68%*, 6/5/98 3,500,000 3,500,000
---------
12,500,000
----------
Total Certificates of Deposit (Cost $24,299,036) 24,299,036
----------
MEDIUM TERM/SENIOR NOTES (37.4%)
Banking (5.4%)
Fleet Financial Group, Inc., 5.85%*, 2/13/98 3,000,000 3,001,101
---------
Business Credit (6.3%)
Sanwa Business Credit Corp., 5.46%*, 2/24/98 2,000,000 2,000,000
Sanwa Business Credit Corp., 6.00%*, 8/4/98 1,500,000 1,502,433
---------
3,502,433
---------
Construction Machinery & Equipment (1.8%)
Caterpillar Financial Service Corp., 5.70%*, 4/13/98 1,000,000 1,000,000
---------
Finance (14.0%)
American Honda Finance Corp., 5.72%*, 4/9/98 2,500,000 2,499,834
Ford Motor Credit Corp., 5.97%*, 8/26/98 2,300,000 2,305,222
IBM Credit, 5.59%*, 9/10/98 3,000,000 2,998,297
---------
7,803,353
---------
Financial Services (4.5%)
Goldman Sachs, 5.79%*, 7/21/98 2,500,000 2,500,000
---------
Life Insurance (5.4%)
Jackson National Life Insurance Co., 5.79%*, 5/11/98 3,000,000 3,000,000
---------
Total Medium Term/Senior Notes (Cost $20,806,887) 20,806,887
----------
TIME DEPOSITS (8.6%)
Banking (8.6%)
Banque Nationale De Paris, 5.70%, 11/03/97 1,000,000 1,000,000
Banque Paribas, 5.72%, 11/03/97 2,000,000 2,000,000
Skandinaviska Enskilda Banken, 5.75%, 11/03/97 1,752,068 1,752,068
---------
Total Time Deposits (Cost $4,752,068) 4,752,068
---------
Total (Cost $55,319,083) (a) - 99.6% $ 55,319,083
==========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $55,565,789.
(a) Cost for federal income tax and financial reporting purposes are the
same.
* Variable rate securities. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect at October 31, 1997.
SpA = Societa per Azioni (Italian Corporation)
See notes to financial statements
<PAGE>
THE INTRUST FUNDS TRUST
- --------------------------------------------------------------------------------
SHORT-TERM BOND FUND
Schedule of Portfolio Investments
October 31, 1997
<TABLE>
<CAPTION>
Principal Market
Amount Value
------ -----
<S> <C> <C>
ADJUSTABLE RATE MORTGAGES (3.3%)
Merrill Lynch Mortgage Investors, Inc., 7.82%*, 2/25/23 $ 558,850 $ 566,258
Merrill Lynch Mortgage Investors, Inc., 8.13%*, 4/25/24 1,158,081 1,184,419
---------
Total Adjustable Rate Mortgages (Cost $1,748,994) 1,750,677
---------
ASSET BACKED SECURITIES (16.4%)
AESOP Funding II LLC, 6.22%, 10/20/01 (b) 1,500,000 1,504,020
Green Tree Financial Corp., Series 1994-1, Class A-3, 6.90%, 4/15/19 1,000,000 1,019,440
Green Tree Financial Corp., Series 1995-10, Class A-4, 6.30%, 2/15/27 500,000 503,020
Green Tree Financial Corp., Series GT 1993-4, Class A-3, 6.25%, 1,750,000 1,756,264
1/15/19
Household Consumer Loan Trust, 5.98%*, 3/15/07 1,000,000 997,891
Keystone Home Improvement Loan Trust, 97-P2 IA3, 6.99%, 6/15/28 (b) 1,000,000 1,017,813
Premier Auto Trust, 97-1-B, 6.55%, 9/6/03 1,000,000 1,010,030
Team Fleet Financing Corp., Series 97-1 A, 7.35%, 5/15/03 (b) 800,000 829,750
-------
Total Asset Backed Securities (Cost $8,536,796) 8,638,228
---------
COLLATERALIZED MORTGAGE OBLIGATIONS (24.7%)
Commercial Loan Funding Trust, 5.92%*, 8/15/05 (b) 1,750,000 1,750,000
Federal Home Loan Mortgage Corp., 6.00%, 4/15/06 500,000 500,755
Federal Home Loan Mortgage Corp., 5.75%, 5/15/06 1,000,000 996,400
Merrill Lynch Mortgage Investors, Inc., 8.15%*, 1/25/05 507,599 516,260
MLCC Mortgage Investors, 1994-B A2, 6.29%*, 12/15/19 2,000,000 2,010,000
Residential Funding Mortgage Securities, Series 1989-51, 7.72%*, 827,621 840,781
10/25/19
Resolution Trust Corp., Series 1992-C3, 6.84%*, 8/25/23 1,586,950 1,586,950
Resolution Trust Corp., 1995-C2 A2, 6.14%*, 5/25/27 994,813 1,010,954
Resolution Trust Corp., 92-M3-A2, 8.63%, 7/25/30 1,744,120 1,742,485
Vendee Mortgage Trust, Series 1995-3, 7.25%, 7/15/14 1,000,000 1,029,360
Vendee Mortgage Trust, Series 1992-1, 7.75%, 12/15/14 1,000,000 1,025,520
---------
Total Collateralized Mortgage Obligations (Cost $12,962,570) 13,009,465
----------
CORPORATE BONDS (19.0%)
Banking (2.7%)
Chase Manhattan Corp., 10.13%, 11/1/00 615,000 681,881
Chemical Bank, 9.75%, 6/15/99 160,000 169,200
First Interstate, 9.38%, 1/23/02 500,000 559,375
-------
1,410,456
---------
Electric Utility (1.0%)
Texas Utilities, 6.20%, 10/1/02, MBIA 500,000 500,625
-------
Financial Services (7.0%)
Charles Schwab, 7.19%, 5/31/01 500,000 516,250
Ford Motor Credit Corp., 9.50%, 4/15/00 1,100,000 1,186,624
Transamerica Financial, Series E, 6.41%, 6/20/00 1,000,000 1,006,250
USAA Capital Corp., 5.97%, 8/4/99 1,000,000 1,001,250
---------
3,710,374
---------
Industrial Goods & Services (4.6%)
Cargill Inc., 7.72%, 2/12/02 (b) 409,300 420,904
Newell Co., 6.18%, 7/11/00 1,000,000 1,001,250
Tyco International Ltd., 6.50%, 11/1/01 1,000,000 1,010,000
---------
2,432,154
---------
Oil Field Services (1.0%)
Colonial Pipeline, 7.13%, 8/15/02 500,000 519,375
-------
Retail Stores/Catalog (2.7%)
May Department Stores Co., 9.88%, 6/15/00 385,000 420,613
J.C. Penney & Co., 6.95%, 4/1/00 1,000,000 1,021,250
---------
1,441,863
---------
Total Corporate Bonds (Cost $9,816,008) 10,014,847
----------
MUNICIPAL BONDS (4.8%)
Colorado (2.9%)
Denver, Colorado City & County School District 01, 6.34%, 12/15/00 1,500,000 1,513,125
---------
AMBAC
</TABLE>
continued
<PAGE>
THE INTRUST FUNDS TRUST
- --------------------------------------------------------------------------------
SHORT-TERM BOND FUND
Schedule of Portfolio Investments
October 31, 1997
<TABLE>
<CAPTION>
Principal Market
MUNICIPAL BONDS, continued: Amount Value
------ -----
<S> <C> <C>
Minnesota (1.9%)
Western Minnesota Power Agency, 6.33%, 1/1/02 AMBAC $ 1,000,000 $ 1,005,000
---------
Total Municipal Bonds (Cost $2,503,870) 2,518,125
---------
PASS-THROUGH MORTGAGE SECURITIES (3.9%)
Agricultual Mortgage Backed Securities CS-1012-1, 7.06%, 7/25/02 2,000,000 2,049,375
---------
Total Pass-Through Mortgage Securities (Cost $2,048,603) 2,049,375
---------
U.S. GOVERNMENT AGENCY DEBENTURE (1.9%)
Overseas Private Investments, 6.08%, 8/15/04 1,000,000 998,711
-------
Total U.S. Government Agency Debenture (Cost $953,215) 998,711
-------
U.S. GOVERNMENT AGENCY PASS-THROUGH SECURITIES (19.6%)
Federal Home Loan Bank (8.8%)
4.35%*, 3/26/98, Series AB98 1,000,000 991,019
3.00%*, 9/14/98, Series FI98 1,950,000 1,891,637
5.00%*, 5/10/00, Series Y 00 1,800,000 1,775,250
---------
4,657,906
---------
Federal Home Loan Mortgage Corp. (6.3%)
6.00%, 10/20/99 2,000,000 2,004,021
5.07%*, 3/10/00 500,000 489,782
7.18%*, 4/1/29, Pool #846367 785,415 807,500
-------
3,301,303
---------
Federal National Mortgage Assoc (2.7%)
5.00%*, 3/3/00 1,000,000 991,250
8.04%*, 11/1/21, Pool #365421 435,142 446,293
-------
1,437,543
---------
Small Business Administration (1.8%)
9.13%*, 1/25/10, Pool #503653 220,201 238,912
8.98%*, 1/25/13, Pool #503664 169,366 185,028
9.73%*, 5/25/15, Pool #502966 218,071 245,276
8.38%*, 1/25/22, Pool #503694 245,633 269,214
-------
938,430
-------
Total U.S. Government Agency Pass-Through Securities (Cost $10,303,101) 10,335,182
----------
U.S. TREASURY OBLIGATIONS (6.0%)
U.S. Treasury Notes (6.0%)
5.75%, 12/31/98 100,000 100,157
8.00%, 8/15/99 1,000,000 1,039,370
5.88%, 2/15/00 2,000,000 2,007,580
---------
Total U.S. Treasury Obligations (Cost $3,129,223) 3,147,107
---------
Total (Cost $52,002,380) (a) - 99.6% $ 52,461,717
==========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $52,682,288.
(a) Represents cost for federal tax purposes and differs from market value
by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 489,501
Unrealized depreciation (30,164)
-----------
Net unrealized appreciation $ 459,337
-----------
</TABLE>
(b) Represents a restricted security purchased under Rule 144A which is
exempt from registration under the Securities Act of 1933, as amended.
The Board of Trustees have deemed these securities as liquid.
* Variable rate securities. The rate reflected on the Schedule of
Investments is the rate in effect at October 31, 1997.
AMBAC = Insured by American Municipal Bond Assurance Corporation
MBIA = Insured by Municipal Bond Insurance Association
LLC = Limited Liability Corporation
See notes to financial statements
<PAGE>
THE INTRUST FUNDS TRUST
- -------------------------------------------------------------------------------
INTERMEDIATE BOND FUND
Schedule of Portfolio Investments
October 31, 1997
<TABLE>
<CAPTION>
Principal Market
Amount Value
------ -----
<S> <C> <C>
ADJUSTABLE RATE MORTGAGES (3.0%)
Federal Home Loan Morgage Corp., 7.18%*, 4/1/29, Pool #846367 $ 785,415 $ 807,500
Merrill Lynch Mortgage Investors, Inc., 7.82%*, 2/25/23 558,850 566,258
-------
Total Adjustable Rate Mortgages (Cost $1,370,023) 1,373,758
---------
ASSET BACKED SECURITIES (17.4%)
EQCC Home Equity Loan Trust, 7.10%, 02/15/12 1,000,000 1,033,750
EQCC Home Equity Loan Trust, 7.50%, 6/15/21 700,000 731,696
Green Tree Financial Corp. 97-7-A8, 6.86%, 8/25/29 1,200,000 1,199,321
Green Tree Financial Corp., Series 1993-2 Class A4, 6.90%, 7/15/18 1,000,000 1,036,360
Green Tree Financial Corp., Series 1995-10, 6.30%, 2/15/27 500,000 503,020
Household Consumer Loan Trust, 5.98%*, 3/15/07 500,000 498,945
Keystone Home Improvement Loan Trust, 97-P2 IA3, 6.99%, 6/15/28 (b) 1,000,000 1,017,813
Premier Auto Trust, 97-1-B, 6.55%, 9/6/03 1,000,000 1,010,030
Team Fleet Financing Corp., Series 97-1 A, 7.35%, 5/15/03 (b) 1,000,000 1,037,188
---------
Total Asset Backed Securities (Cost $7,903,589) 8,068,123
---------
COLLATERALIZED MORTGAGE OBLIGATIONS (21.1%)
American Housing Trust, Series VI 1-I, 9.15%, 5/25/20 800,000 881,344
Asset Securitization Corp., Series 1997-D4, Class A1C, 7.42%, 4/14/27 750,000 796,172
Bear Stearns Structured Securities, Inc. 97-2-1B, 7.00%, 10/1/02 750,000 755,156
General Mortgage Acceptance Corp. Commercial Mortgage Securities, 350,000 366,719
Inc., 7.22%, 2/15/06
Merrill Lynch Mortgage Investors, Inc., 8.16%*, 1/25/05 507,599 516,260
Residential Funding Mortgage Securities, Series 1989-51, 7.72%*, 827,621 840,781
10/25/19
Resolution Trust Corp., Series 1995-1, 7.50%, 10/25/28 750,000 758,203
Salomon, 97 HUD1-A-3, 7.51%, 12/25/30 1,000,000 1,046,506
Vendee Mortgage Trust, Series 1992-1, Class 2D, 7.75%, 12/15/14 1,000,000 1,025,520
Vendee Mortgage Trust, Series 1995-1C, Class 3E, 8.00%, 7/15/18 750,000 808,388
Vendee Mortgage Trust, Series 1995-3, Class 1C, 7.25%, 7/15/14 1,000,000 1,029,360
Vendee Mortgage Trust, Series 1997-1-2C, 7.50%, 9/15/17 1,000,000 1,025,540
---------
Total Collateralized Mortgage Obligations (Cost $9,660,968) 9,849,949
---------
CORPORATE BONDS (41.3%)
Aerospace & Military Technology (1.8%)
Allied Signal Inc., 9.20%, 2/15/03 750,000 846,563
-------
Airlines (2.2%)
Continental Airlines, 7.15%, 12/30/08 (b) 1,000,000 1,031,750
---------
Banking (6.4%)
Chase Manhattan Corp., 10.13%, 11/1/00 1,000,000 1,108,749
First Bank System, Inc., 7.63%, 5/1/05 700,000 744,625
First Interstate, 9.38%, 1/23/02 547,000 611,956
United Missouri Bancshares, Inc., 7.30%, 2/24/03 500,000 521,250
-------
2,986,580
---------
Consumer Goods & Services (1.6%)
Levi Strauss & Co., 6.80%, 11/1/03 (b) 750,000 758,438
-------
Electric Utility (3.3%)
Texas Utilities, 6.20%, 10/1/02 MBIA 500,000 500,625
Utilicorp, 6.88%, 10/01/04 AMBAC 1,000,000 1,041,250
---------
1,541,875
---------
Electrical & Electronic (1.1%)
Philips Electronics N.V., 7.75%, 4/15/04 500,000 530,625
-------
Financial Services (12.7%)
Charles Schwab, 7.19%, 5/31/01 500,000 516,250
Metropolitan Life, 6.30%, 11/1/03 (b) 1,000,000 992,500
Paine Webber Group, 6.90%, 8/15/03 750,000 760,313
Prudential Insurance, 7.65%, 7/1/07 1,000,000 1,066,249
Reinsurance Group of America, 7.25%, 4/1/06 500,000 520,625
Terra Nova Holdings, 7.20%, 8/15/07 1,000,000 1,026,250
Transamerica Financial, Series E, 6.41%, 6/20/00 1,000,000 1,006,250
---------
5,888,437
---------
</TABLE>
continued
<PAGE>
THE INTRUST FUNDS TRUST
- --------------------------------------------------------------------------------
INTERMEDIATE BOND FUND
Schedule of Portfolio Investments
October 31, 1997
<TABLE>
<CAPTION>
Principal Market
Amount Value
------ -----
<S> <C> <C>
CORPORATE BONDS, continued:
Industrial Goods & Services (2.2%)
Tyco International Ltd., 6.50%, 11/1/01 $ 1,000,000 1,010,000
---------
Oil & Gas Exploration Products & Services (1.6%)
Vastar Resources, Inc., 6.95%, 11/8/06 750,000 760,313
-------
Oil Field Services (2.3%)
Petroleum Geo-Services, 7.50%, 3/31/07 1,000,000 1,056,250
---------
Retail-General Merchandise (3.9%)
May Department Stores Co., 7.15%, 8/15/04 1,000,000 1,043,750
Pep Boys, 6.71%, 11/03/04 750,000 750,000
-------
1,793,750
---------
Semiconductors (1.1%)
Applied Materials, Inc., 6.70%, 9/6/05 500,000 502,500
-------
Tobacco (1.1%)
Philip Morris Cos., Inc., 7.63%, 5/15/02 500,000 524,375
-------
Total Corporate Bonds (Cost $18,652,266) 19,231,456
----------
U.S. GOVERNMENT AGENCY MORTGAGES (8.6%)
Federal Home Loan Bank (4.4%)
7.87%, 10/20/04, Series AW04 1,850,000 2,041,179
---------
Federal National Mortgage Assoc. (4.2%)
7.13%, 6/1/04, Pool #375168 997,212 1,035,503
8.04%*, 11/1/21, Pool #365421 900,487 923,562
-------
1,959,065
---------
Total U.S. Government Agency Mortgages (Cost $3,936,916) 4,000,244
---------
U.S. TREASURY OBLIGATIONS (5.5%)
U.S. Treasury Notes (5.5%)
6.38%, 5/15/00 2,500,000 2,539,800
---------
Total U.S. Treasury Obligations (Cost $2,525,484) 2,539,800
---------
Shares
INVESTMENT COMPANIES (3.3%) ------
Fedfund Money Market Fund 1,541,592 1,541,592
---------
Total Investment Companies (Cost $1,541,592) 1,541,592
---------
Total (Cost $45,590,839) (a) - 100.2% $ 46,604,922
==========
- ---------------
</TABLE>
Percentages indicated are based on net assets of $46,491,884.
(a) Represents cost for federal tax purposes and differs from market value
by net unrealized appreciation of securities as follows:
Unrealized appreciation $ 1,020,846
Unrealized depreciation (6,763)
--------------
Net unrealized appreciation $ 1,014,083
--------------
(b) Represents a restricted security purchased under Rule 144A which is
exempt from registration under the Securities Act of 1933, as amended.
The Board of Trustees have deemed these securities as liquid.
* Variable rate securities. The rate reflected on the Schedule of
Investments is the rate in effect at October 31, 1997.
AMBAC = Insured by American Municipal Bond Assurance Corporation
MBIA = Insured by Municipal Bond Insurance Association
LLC = Limited Liability Corporation
See notes to financial statements
<PAGE>
THE INTRUST FUNDS TRUST
- --------------------------------------------------------------------------------
STOCK FUND
Schedule of Portfolio Investments
October 31, 1997
<TABLE>
<CAPTION>
Market
Shares Value
------ ------
<S> <C> <C>
COMMON STOCKS (95.4%)
Aerospace & Military Technology (3.7%)
Allied Signal, Inc. 45,900 $ 1,652,400
Lockheed Martin Corp. 13,500 1,283,344
---------
2,935,744
Airlines (1.6%)
Boeing Co. 26,900 1,287,838
---------
Automotive (2.0%)
Chrysler Corp. 44,200 1,558,050
---------
Banking (0.7%)
Wells Fargo & Co. 2,000 582,750
-------
Brewery (1.8%)
Anheuser-Busch Cos., Inc. 36,700 1,465,706
---------
Broadcasting/Cable (2.4%)
Tele-Communications, Inc., Class A(b) 30,334 695,786
Viacom, Inc.-Class B(b) 39,200 1,185,800
---------
1,881,586
Building Products (1.1%)
Masco Corp. 19,800 868,725
-------
Computer Hardware (0.8%)
Seagate Technology, Inc. (b) 24,200 656,425
-------
Computer Software (0.7%)
Sun Microsystems, Inc. (b) 16,200 554,850
-------
Consumer Goods & Services (3.7%)
Kimberly Clark Corp. 24,700 1,282,856
Sears, Roebuck & Co. 40,300 1,687,563
---------
2,970,419
Containers & Packaging (0.6%)
Crown Cork & Seal Co. 9,900 446,119
-------
Defense (0.7%)
Rockwell International Corp. 11,300 553,700
-------
Diversified (0.5%)
Tenneco, Inc. 9,600 431,400
-------
Electric Utility (2.9%)
American Electric Power, Inc. 6,400 302,400
Florida Power & Light, Inc. 3,700 191,244
Southern Co. 18,000 412,875
Texas Utilities Co. 40,000 1,435,000
---------
2,341,519
Electrical & Electronic (2.3%)
AMP, Inc. 15,300 688,500
Emerson Electric Co. 21,300 1,116,919
---------
1,805,419
Electronic Components/Instruments (1.9%)
National Semiconductor Corp. (b) 16,700 601,200
Raytheon Co. 17,300 938,525
-------
1,539,725
Energy (1.8%)
Atlantic Richfield Co. 10,400 856,050
Texaco, Inc. 9,900 563,681
-------
1,419,731
Financial Services (0.3%)
Chase Manhattan Corp. 1,900 219,213
-------
Food Products & Services (2.9%)
Archer-Daniels-Midland Co. 72,085 1,603,891
McDonald's Corp. 16,300 730,444
-------
2,334,335
Forest Products (1.8%)
Champion International Co. 10,100 557,394
Fort James Corporation 21,900 869,156
-------
1,426,550
</TABLE>
continued
<PAGE>
THE INTRUST FUNDS TRUST
- --------------------------------------------------------------------------------
STOCK FUND
Schedule of Portfolio Investments
October 31, 1997
<TABLE>
<CAPTION>
Market
Common Stocks, continued: Shares Value
------ -----
<S> <C> <C>
Health Care (6.7%)
Abbott Labs 15,700 $ 962,606
American Home Products Corp. 23,600 1,749,349
Columbia/HCA Healthcare Corp. 42,000 1,186,500
Humana, Inc.(b) 28,200 592,200
Johnson & Johnson 14,400 826,200
-------
5,316,855
---------
Industrial Goods & Services (6.3%)
Du Pont (Ei) De Nemours & Co. 27,700 1,575,438
Hercules, Inc. 8,200 376,175
PPG Industries, Inc. 24,400 1,381,650
Praxair, Inc. 39,000 1,698,937
---------
5,032,200
---------
Insurance (12.6%)
Aetna, Inc. 21,900 1,556,269
Allstate Corp. 19,700 1,633,869
American General Corp. 14,300 729,300
Chubb Corp. 21,600 1,431,000
Cigna Corp. 9,800 1,521,450
General Re Corp. 9,100 1,794,405
Loews Corp. 9,900 1,105,706
UNUM Corp. 5,600 273,000
-------
10,044,999
----------
Investment Company (0.0%)
Telecom-TCI Ventures Group-A 227 5,235
-----
Machinery & Equipment (0.2%)
Deere & Co. 2,700 142,088
-------
Metals (0.2%)
Aluminum Co. Of America 2,300 167,900
-------
Metals & Mining (1.3%)
Newmont Mining Corp. 29,400 1,029,000
---------
Natural Resources (1.6%)
Amerada Hess Corp. 21,000 1,290,188
---------
Non-Hazardous Waste Removal (0.5%)
Waste Management Inc. 17,800 416,075
-------
Office Equipment & Services (2.6%)
Hewlett-Packard Co. 18,500 1,141,219
Xerox Corp. 12,000 951,750
-------
2,092,969
---------
Oil & Gas Exploration Products & Services (7.6%)
Burlington Resources, Inc. 11,000 538,313
Enron Corp. 34,800 1,322,400
Occidental Petroleums Corp. 57,500 1,602,812
Union Pacific Resources Group, Inc. 30,600 753,525
Unocal 43,400 1,790,249
Williams Co. 1,200 61,125
------
6,068,424
---------
Paper Products (0.0%)
Weyerhauser Co. 400 19,100
------
Printing & Publishing (0.5%)
Gannett Co., Inc. 7,300 383,706
-------
Railroads (4.3%)
Burlington Northern Santa Fe Corp. 13,600 1,292,000
CSX Corp. 27,800 1,520,313
Union Pacific Corp. 9,900 606,375
-------
3,418,688
---------
Retail Stores/Catalog (5.6%)
Albertson's, Inc. 27,900 1,028,813
Dillards Inc. 17,200 660,050
Federated Department Stores, Inc.(b) 28,700 1,262,799
Lowe's Cos., Inc. 14,900 620,213
May Department Stores Co. 16,700 899,713
-------
4,471,588
---------
</TABLE>
continued
<PAGE>
THE INTRUST FUNDS TRUST
- --------------------------------------------------------------------------------
STOCK FUND
Schedule of Portfolio Investments
October 31, 1997
<TABLE>
<CAPTION>
Market
Common Stocks, continued: Shares Value
------ ------
<S> <C> <C>
Retail-General Merchandise (1.0%)
Woolworth Corp. (b) 41,500 $ 788,500
-------
Technology (2.8%)
International Business Machines Corp. 23,000 2,255,438
---------
Telecommunications (3.4%)
Bell Atlantic 14,791 1,181,431
SBC Communications, Inc. 19,600 1,247,050
US West Media Group(b) 11,900 300,475
-------
2,728,956
---------
Tire & Rubber (1.0%)
Goodyear Tire & Rubber Co. 13,200 826,650
-------
Utilities (3.0%)
Consolidated Edison Co. Of New York, Inc. 11,700 400,725
GTE Corp. 36,400 1,544,725
Pacificorp 22,300 483,631
-------
2,429,081
---------
Total Common Stocks (Cost $74,341,048) 76,207,444
----------
INVESTMENT COMPANIES (5.0%)
Fedfund Money Market Fund 3,954,477 3,954,477
---------
Total Investment Companies (Cost $3,954,477) 3,954,477
---------
Total (Cost $78,295,525) (a) - 100.4% $ 80,161,921
==========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $79,834,435.
(a) Represents cost for federal tax purposes and differs from market value
by net unrealized appreciation of securities as follows:
Unrealized appreciation $ 5,473,796
Unrealized depreciation (3,607,400)
-------------
Net unrealized appreciation $ 1,866,396
-------------
(b) Represents non-income producing securities.
See notes to financial statements
<PAGE>
THE INTRUST FUNDS TRUST
- --------------------------------------------------------------------------------
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1997
<TABLE>
<CAPTION>
Principal Market
Amount Value
------ -----
<S> <C> <C>
MUNICIPAL BONDS (100.2%)
Guam (0.5%)
Guam Government Limited Obligation Highway, Series A, 5.50%, 5/1/99, $ 200,000 $ 205,000
FSA
Guam Government Limited Obligation Highway, Series A, 6.30%, 5/1/12, 100,000 107,375
Callable 5/1/02 @ 102, FSA
Guam Government, Series A, 5.90%, 9/1/05, Callable 3/1/99 @ 100 250,000 254,375
-------
Total Guam 566,750
-------
Kansas (96.1%)
Barton County, School District #428, Great Bend, GO, Series A, 1,390,000 1,405,637
5.30%, 9/1/15, Callable 9/1/06 @ 100
Belleville, Electric & Gas Systems Revenue, Series A, 5.00%, 12/1/98 150,000 151,475
Belleville, Electric & Gas Systems Revenue, Series A, 5.50%, 12/1/02 175,000 184,406
Belleville, Electric & Gas Systems Revenue, Series A, 5.70%, 12/1/04, 150,000 159,000
Callable 12/1/02 @ 101
Bourbon County, School District #234, GO, Series B, 5.50%, 9/1/09, 195,000 203,288
Callable 9/1/06 @ 100, FSA
Bourbon County, School District #234, GO, Series B, 5.60%, 9/1/10, 215,000 224,138
Callable 9/1/06 @ 100, FSA
Bourbon County, School District #234, GO, Series B, 5.63%, 9/1/11, 285,000 294,263
Callable 9/1/06 @ 100, FSA
Brown County, Horton School District #430, GO, 5.38%, 9/1/13, 500,000 512,500
Callable 9/1/06 @ 100, FSA
Butler & Sedgwick County, School District #385 Andover, 5.70%, 370,000 379,713
9/1/15, Callable 9/1/03 @100
Butler County, School District #402, GO, 4.15%, 10/1/01, FSA 250,000 248,438
Butler County, School District #402, GO, 4.30%, 10/1/02, FSA 250,000 249,375
Butler County, School District #402, GO, 5.25%, 10/1/12, Callable 500,000 507,500
4/1/04 @ 100, FSA
Cherokee County, School District #499, GO, 5.80%, 10/1/09, Callable 200,000 209,750
10/1/02 @ 100, AMBAC
Cherokee County, School District #499, GO, 5.90%, 10/1/10, Callable 215,000 225,481
10/1/02 @ 100, AMBAC
Cherokee County, School District #499, GO, 5.95%, 10/1/11, Callable 225,000 235,688
10/1/02 @ 100, AMBAC
City Of Arkansas, GO, 3.80%, 12/1/99 285,000 279,300
Clay County, GO, Series B, 6.20%, 10/1/02, Prerefunded 10/1/02 @100 250,000 260,000
Clay County, School District #379, GO, Series 1992, 5.30%, 4/1/00, 250,000 254,688
Callable 4/1/99 @100
Clay County, School District #379, GO, Series 1992, 5.40%, 4/1/01, 250,000 254,063
Callable 4/1/99 @100
Coffeyville, Community College, COP, 5.88%, 10/1/14, Callable 10/1/04 250,000 259,688
@ 100
Coffeyville, Water & Sewer Revenue, 4.60%, 10/1/04, Callable 12/18/97 465,000 466,163
@ 102, AMBAC
Coffeyville, Water & Sewer Revenue, 4.70%, 10/1/05, Callable 12/18/97 490,000 491,225
@ 102, AMBAC
Cowley County, School District #465, GO, Series 1991, 6.00%, 11/1/97 250,000 250,000
Cowley County, School District #470, GO, 5.45%, 12/1/12, Callable 500,000 515,000
12/1/06 @ 100, FGIC
Decatur County, GO, Series 1992, 6.00%, 9/1/01, Callable 9/1/99 @ 100 250,000 258,750
Dickinson County, Abilene School District #435, GO, Series 1992, 265,000 267,981
5.40%, 4/1/01, Callable 4/1/99 @100
Dickinson County, Abilene School District #435, GO, Series 1992, 300,000 302,625
5.60%, 4/1/03, Callable 4/1/99 @100
Dodge, Pollution Control Revenue, 6.63%, 5/1/05, Private Placement 700,000 773,499
Dodge, School District #443, GO, 4.70%, 3/1/07, Callable 3/1/04 @ 180,000 177,525
100, FSA
Dodge, School District #443, GO, 4.80%, 3/1/08, Callable 3/1/04 @ 360,000 357,300
100, FSA
Dodge, School District #443, GO, 5.00%, 3/1/14, Callable 3/1/04 @ 250,000 246,563
100, FSA
</TABLE>
continued
<PAGE>
THE INTRUST FUNDS TRUST
- --------------------------------------------------------------------------------
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1997
<TABLE>
<CAPTION>
Principal Market
Kansas, continued: Amount Value
------ -----
<S> <C> <C>
Douglas County, School District #497, GO, Series 1993 A, 4.50%, $ 250,000 $ 251,875
9/1/02, Callable 9/1/01 @ 100
Douglas County, School District #497, GO, Series A, 5.40%, 9/1/15, 600,000 614,250
Callable 9/1/06 @ 100
El Dorado, Water Utility System Revenue, 4.40%, 10/1/02 230,000 229,713
El Dorado, Water Utility System Revenue, 4.45%, 10/1/03 305,000 305,000
El Dorado, Water Utility System Revenue, 4.65%, 10/1/05, Callable 350,000 350,000
10/1/05 @ 100
El Dorado, Water Utility System Revenue, 4.70%, 10/1/06, Callable 275,000 275,000
10/1/05 @ 100
El Dorado, Water Utility System Revenue, 4.75%, 10/1/07, Callable 200,000 200,000
10/1/05 @ 100
Ellsworth County, School District #328, GO, 5.25%, 9/1/15, Callable 500,000 505,625
9/1/06 @ 100, FSA
Emporia, GO, Series B, 5.15%, 9/1/00 155,000 159,650
Emporia, GO, Series B, 5.25%, 9/1/01 165,000 171,806
Emporia, GO, Series B, 6.00%, 9/1/06, Callable 9/1/02 @ 100 175,000 186,156
Finney County, 5.00%, 12/1/10, Callable 12/1/07 @ 100 500,000 502,500
Finney County, School District #457, GO, 5.50%, 10/1/99 185,000 189,856
Finney County, School District #457, GO, 5.55%, 10/1/00 250,000 260,000
Finney County, School District #457, GO, Series 1991, 5.70%, 10/1/97, 500,000 508,045
Callable 4/1/98 @101
Ford County, Single Family Mortgage Revenue, Series A, 7.90%, 8/1/10, 275,000 296,656
Callable 8/1/02 @ 103, FHA
Franklin County, GO, Series B, 4.75%, 9/1/05, Callable 9/1/03 @100 330,000 331,238
Franklin County, School District #290, GO, 5.20%, 9/1/13, Callable 230,000 233,738
9/1/06 @ 100, FSA
Franklin County, School District #290, GO, 5.25%, 9/1/14, Callable 500,000 508,125
9/1/06 @ 100, FSA
Franklin County, School District #290, GO, 5.30%, 9/1/16, Callable 335,000 339,188
9/1/06 @ 100, FSA
Garden City, GO, Series B, 4.90%, 11/1/99, MBIA 250,000 254,375
Garden City, GO, Series B, 5.45%, 11/1/04, Callable 11/1/03 @100, 250,000 265,938
MBIA
Garden City, Water & Sewer Revenue, Series 1991, 6.50%, 11/1/00 125,000 133,906
Garden City, Water & Sewer Revenue, Series 1991, 6.75%, 11/1/03, 125,000 134,063
Callable 11/1/00 @ 100
Gardner, Electric Utilities Revenue, 7.00%, 11/1/09, Callable 11/1/01 500,000 531,875
@ 101
Gardner, GO, 5.30%, 9/1/11, Callable 9/1/02 @ 100, AMBAC 330,000 335,775
Gove County, GO, 5.15%, 4/1/12, Callable 10/1/01 @101, AMBAC 560,000 557,200
Gray County, School District #102, GO, 6.00%, 9/1/04 100,000 106,625
Gray County, School District #102, GO, 6.20%, 9/1/06, Callable 9/1/05 125,000 135,156
@ 100
Gray County, School District #102, GO, 6.80%, 9/1/15, Callable 9/1/05 250,000 271,250
@ 100
Halstead, Hospital Revenue, 6.75%, 10/1/06, Callable 1/5/98 @ 100 230,000 254,725
Harvey County, School District #373, GO, 5.55%, 9/1/13, Callable 500,000 513,750
9/1/05 @ 100, FSA
Hays, GO, Series A, 5.15%, 9/1/09, Callable 9/1/03 @ 100, FGIC 250,000 253,750
Hays, GO, Series A, 5.25%, 9/1/10, Callable 9/1/03 @ 100, FGIC 250,000 255,625
Hays, Internal Improvement, GO, Series A, 5.20%, 9/1/01 105,000 109,331
Hays, Internal Improvement, GO, Series A, 5.30%, 9/1/02, Callable 110,000 113,850
9/1/01 @ 100
Hays, Internal Improvement, GO, Series A, 5.50%, 9/1/04, Callable 120,000 124,200
9/1/01 @ 100
Hays, Water & Sewer Revenue, 5.60%, 9/1/99, AMBAC 100,000 102,875
Hays, Water & Sewer Revenue, 5.80%, 9/1/00, AMBAC 100,000 104,625
Hays, Water & Sewer Revenue, 6.20%, 9/1/03, Prerefunded 9/1/00 @ 100, 100,000 105,625
AMBAC
Hays, Water & Sewer Revenue, 6.40%, 9/1/05, Prerefunded 9/1/00 @ 100, 180,000 191,250
AMBAC
</TABLE>
continued
<PAGE>
THE INTRUST FUNDS TRUST
- --------------------------------------------------------------------------------
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1997
<TABLE>
<CAPTION>
Principal Market
Amount Value
------ -----
<S> <C> <C>
Kansas, continued:
Hays, Water & Sewer Revenue, 5.20%, 9/1/11, Callable 9/1/03 @ 100, $ 260,000 $ 261,950
MBIA
Holton, Electric System Revenue, Series 1992 A, 6.40%, 12/1/06, 150,000 162,000
Prerefunded 12/1/01 @ 100
Holton, Electric System Revenue, Series 1992 A, 6.50%, 12/1/07, 150,000 162,563
Prerefunded 12/1/01 @ 100
Hutchinson, GO, Series A, 5.45%, 10/1/14, Callable 10/1/05 @ 100 125,000 127,813
Hutchinson, GO, Series A, 5.50%, 10/1/15, Callable 10/1/05 @ 100 135,000 137,531
Hutchinson, Water & Sewer Revenue, Series 93, 6.85%, 12/1/05, AMBAC 150,000 173,250
Hutchinson, Water & Sewer Revenue, Series 93, 5.00%, 12/1/11, 225,000 224,156
Callable 12/1/03 @ 102, AMBAC
Jackson County, School District #336, GO, 6.20%, 10/1/07, Prerefunded 205,000 224,475
10/1/03 @ 100
Jackson County, School District #336, GO, 6.30%, 10/1/02, Prerefunded 125,000 137,500
10/1/03 @ 100
Jefferson County, School District #340, GO, 6.00%, 9/1/06, Callable 300,000 328,125
9/1/04 @ 100, FSA
Jefferson County, School District #340, GO, 6.10%, 9/1/07, Callable 320,000 351,600
9/1/04 @ 100, FSA
Jefferson County, School District #340, GO, 6.20%, 9/1/08, Callable 330,000 364,650
9/1/04 @ 100, FSA
Johnson & Miami Counties, School District #230, GO, 5.25%, 12/1/05, 350,000 362,688
Callable 12/1/03 @100
Johnson County, Fire District #002, 4.65%, 9/1/04 270,000 272,025
Johnson County, GO, Series A, 5.60%, 9/1/03, Callable 9/1/02 @ 101 200,000 212,750
Johnson County, School District #229, GO, Series A, 6.50%, 10/1/12, 300,000 324,750
Callable 10/1/01 @ 100
Johnson County, School District #229, GO, Series A, 5.00%, 10/1/14, 250,000 247,813
Callable 10/1/05 @100
Johnson County, School District #232, GO, 5.40%, 9/1/14, Callable 1,050,000 1,078,874
9/1/07 @ 100 MBIA
Johnson County, School District #233, GO, 5.65%, 9/1/03, Callable 485,000 515,919
3/1/02 @ 101
Johnson County, School District #233, GO, 5.95%, 9/1/05, Callable 500,000 532,500
3/1/02 @ 101, AMBAC
Johnson County, School District #512, GO, 5.30%, 10/1/14, Callable 550,000 558,938
10/1/05 @ 100
Johnson County, School District #512, GO, Series B, 5.25%, 10/1/17, 500,000 500,000
Callable 10/1/06 @ 100
Johnson County, Water District #001 Revenue Bond, 5.13%, 12/1/08, 250,000 255,625
Callable 12/1/03 @ 100
Johnson County, Water District #001 Revenue Bond, 5.30%, 12/1/12, 265,000 267,981
Callable 12/1/03 @100
Johnson County, Water District #001 Revenue Bond, Series 1990 A, 250,000 270,625
6.90%, 12/1/00
Johnson County, Water District #001 Revenue Bond, Series A, 6.10%, 250,000 258,125
12/1/16, Callable 12/1/01 @ 100
Junction City, GO, Series DD, 6.20%, 9/1/06, Callable 9/1/00 @ 100 515,000 538,175
Junction City, Industrial Revenue, F.W. Woolworth Company Project - 130,000 132,245
Series B, 7.25%, 11/1/98
Junction City, Water Revenue, Series A, 4.90%, 4/1/01 205,000 209,613
Junction City, Water Revenue, Series A, 4.90%, 10/1/01 210,000 215,775
Kansas City, GO, 5.45%, 4/1/17, Callable 10/1/06 @100 340,000 344,250
Kansas City, GO, 5.45%, 10/1/17, Callable 10/1/06 @ 100 450,000 455,625
Kansas City, GO, Series B, 5.38%, 9/1/10, Callable 9/1/05 @ 100, MBIA 1,500,000 1,552,499
Kansas City, Pollution Control Revenue, General Motors Corp., 5.45%, 500,000 510,625
4/1/06, Callable 10/1/99 @ 101
Kansas City, SO, 5.50%, 2/15/99 500,000 509,375
Kansas State Development Finance Authority Educational, 4.80%, 345,000 346,294
10/01/08, Callable 10/01/04 @ 100
Kansas State Development Financial Authority Educational, 5.00%, 500,000 500,625
10/1/12, Callable 10/1/04 @ 100
Kansas Turnpike Authority, 5.50%, 9/1/06 (b) 1,915,000 2,015,537
</TABLE>
continued
<PAGE>
THE INTRUST FUNDS TRUST
- --------------------------------------------------------------------------------
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1997
<TABLE>
Principal Market
Amount Value
Kansas, continued: ------ -----
<S> <C> <C>
Kingman, Electric Utility & Distribution System Revenue, 5.50%, $ 250,000 $ 251,875
9/1/08, Callable 9/1/00 @ 100
Kingman, Water & Sewer Utility & Distribution System Revenue, 6.13%, 250,000 261,875
9/1/15, Callable 9/1/03 @ 100
Lawrence, GO, Series L, 5.60%, 9/1/98 175,000 177,842
Lawrence, GO, Series P, 5.10%, 9/1/01, Callable 9/1/00 @ 100 220,000 225,500
Lawrence, Sales Tax, GO, Series V, 5.50%, 9/1/12, Callable 9/1/04 @ 100 500,000 516,250
Lawrence, Water & Sewer System Revenue, 5.30%, 11/1/07, Callable 315,000 327,600
11/1/05 @ 100
Lawrence, Water & Sewer System Revenue, 5.70%, 11/1/11, Callable 395,000 408,825
11/1/05 @ 100
Lawrence, Water & Sewer System Revenue, 5.10%, 11/1/12, Callable 320,000 320,400
11/1/06 @100
Lawrence, Water & Sewer System Revenue, 5.25%, 11/1/15, Callable 505,000 508,156
11/1/06 @ 100
Lawrence, Water & Sewer System Revenue, 5.20%, 11/01/16, Callable 250,000 249,063
11/1/06 @100
Leavenworth County, School District #449, GO, Series A, 6.30%, 150,000 157,313
9/1/09, Callable 9/1/03 @ 100
Leavenworth County, School District #449, GO, Series A, 6.40%, 160,000 168,400
9/1/10, Callable 9/1/03 @ 100
Leavenworth County, School District #449, GO, Series A, 6.50%, 125,000 131,719
9/1/12, Callable 9/1/03 @ 100
Leavenworth County, School District #449, GO, Series A, 6.50%, 100,000 105,375
9/1/13, Callable 9/1/03 @ 100
Leavenworth County, School District #469, GO, 4.60%, 9/1/05 340,000 342,975
Leavenworth Hospital Revenue, 6.13%, 4/1/15, Callable 4/1/07 @ 102 415,000 423,819
Leavenworth, GO, Series B, 5.05%, 9/1/00 210,000 215,250
Leawood, GO, Series A, 5.00%, 9/1/00 300,000 308,250
Leawood, GO, Series A, 5.20%, 9/1/01, Callable 9/1/00 @ 100 250,000 257,500
Leawood, GO, Series A, 5.25%, 9/1/09, Callable 9/1/06 @ 100 250,000 259,375
Leawood, GO, Series A, 5.35%, 9/1/10, Callable 9/1/06 @ 100 250,000 259,375
Leawood, GO, Series A, 5.40%, 9/1/11, Callable 9/1/06 @ 100 375,000 389,063
Leawood, GO, Series A, 5.00%, 9/1/15, Callable 9/1/06 @ 100 250,000 249,063
Leawood, GO, Series B, 6.00%, 9/1/08, Prerefunded 9/1/00 @ 100 135,000 141,413
Leawood, GO, Series B, 5.00%, 9/1/10, Callable 9/1/06 @ 100 400,000 401,000
Lindsborg, Electric & Waterworks Systems Revenue, 5.00%, 10/1/05 100,000 104,750
Lindsborg, Electric & Waterworks Systems Revenue, 5.30%, 10/1/07, 105,000 109,725
Callable 10/1/05 @ 100
Lindsborg, Electric & Waterworks Systems Revenue, 5.60%, 10/1/09, 120,000 125,250
Callable 10/1/05 @ 100
Lyon County, Hospital Revenue, 5.20%, 2/1/02, Callable 8/1/00 @ 100 250,000 247,500
Lyon County, Hospital Revenue, 5.20%, 2/1/02, Callable 8/1/00 @ 100 115,000 113,994
Lyon County, Hospital Revenue, 5.30%, 2/1/03, Callable 8/1/00 @ 100 100,000 98,875
Lyon County, School District #253, GO, 5.60%, 10/1/10, Callable 650,000 665,437
10/1/03 @102
Manhattan, Commercial Development, 11.00%, 7/1/16 1,000,000 1,683,749
Manhattan, GO, 5.40%, 11/1/16, Callable 11/1/04 @ 100 405,000 411,075
Manhattan, GO, Series 189, 5.85%, 11/1/02, Callable 11/1/01 @ 100 250,000 264,688
Manhattan, GO, Series 189, 6.30%, 11/1/11, Callable 11/1/01 @ 100 100,000 107,625
Manhattan, GO, Series 189, 6.30%, 11/1/12, Callable 11/1/01 @ 100 105,000 113,006
Marion County, School District #411, GO, 5.30%, 4/1/13, Callable 660,000 665,774
4/1/03 @ 101.5
McPherson County, School District #400, GO, 5.20%, 12/1/10, Callable 250,000 255,938
12/1/05 @ 100, FGIC
McPherson County, School District #400, GO, 5.25%, 12/1/12, Callable 250,000 254,375
12/1/05 @ 100, FGIC
McPherson, Electric Utility Revenue, 5.55%, 3/1/09, Callable 3/1/00 @ 550,000 558,250
100, AMBAC
McPherson, GO, Series 116, 5.00%, 11/1/06, Callable 11/1/99 @ 100, 500,000 503,125
AMBAC
Meade, Industrial Revenue, 6.50%, 10/1/06, Callable 10/1/03 @ 100 (c) 1,000,000 1,131,249
</TABLE>
continued
<PAGE>
THE INTRUST FUNDS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1997
Principal Market
Kansas, continued: Amount Value
------ -----
<S> <C> <C>
Miami County, School District #368, GO, 6.50%, 12/1/05, Callable $ 500,000 $ 540,625
6/1/02 @ 100, AMBAC
Miami County, School District #416, GO, 6.00%, 9/1/02, Callable 250,000 262,188
9/1/00 @ 100, AMBAC
Miami County, School District, GO, Series A, 5.85%, 9/1/13, Callable 550,000 576,813
9/1/04 @ 100, AMBAC
Montgomery County, School District #447, GO, 5.45%, 9/1/15, Callable 260,000 264,550
9/1/06 @ 100
Montgomery County, School District #447, GO, 5.50%, 9/1/17, Callable 250,000 252,500
9/1/06 @ 100
Nemaha County, School District #441, GO, 5.40%, 3/1/02, Callable 250,000 257,813
3/1/01 @ 100, AMBAC
Nemaha County, School District #441, GO, 5.75%, 3/1/07, Callable 250,000 258,125
3/1/01 @ 100, AMBAC
Neosho County, School District #413, GO, 5.65%, 9/1/01 260,000 273,325
Newton, Wastewater Treatment System Revenue, 5.75%, 3/1/99 110,000 112,475
Newton, Wastewater Treatment System Revenue, 6.00%, 3/1/00 115,000 119,600
Newton, Wastewater Treatment System Revenue, 6.20%, 3/1/01 120,000 126,900
Newton, Wastewater Treatment System Revenue, 6.40%, 3/1/02 130,000 140,238
Olathe, COP, Series B, 5.60%, 9/1/12, Callable 9/1/06 @ 100 145,000 148,806
Olathe, COP, Series B, 5.65%, 9/1/13, Callable 9/1/06 @ 100 155,000 159,069
Olathe, COP, Series B, 5.65%, 9/1/14, Callable 9/1/06 @ 100 165,000 169,331
Olathe, GO, Series 184, 4.60%, 10/1/99 275,000 278,438
Olathe, Health Facility Revenue, 5.20%, 9/1/17, Callable 9/1/05 @100 1,000,000 989,999
Olathe, Labette County Mortgage Loan Revenue, 7.15%, 2/1/15, Callable 55,000 59,056
8/1/01 @ 103, GNMA
Olathe, Multifamily Housing Revenue, 5.50%, 6/1/04, FNMA 390,000 409,500
Olathe, Water & Sewer System Revenue, 5.20%, 7/1/12, Callable 7/1/06 1,170,000 1,184,624
@ 100, AMBAC
Osborne, GO, Series 1992, 5.50%, 12/1/01, Callable 12/1/98 @ 100 135,000 136,562
Osborne, GO, Series 1992, 5.60%, 12/1/02, Callable 12/1/98 @ 100 140,000 141,180
Osborne, GO, Series 1992, 5.70%, 12/1/03, Callable 12/1/98 @ 100 150,000 151,278
Osborne, GO, Series 1992, 5.80%, 12/1/04, Callable 12/1/98 @ 100 155,000 156,369
Ottawa, Waterworks & Electric System Revenue, 6.15%, 12/1/00, MBIA 250,000 265,000
Ottawa, Waterworks & Electric System Revenue, 6.25%, 12/1/01, MBIA 250,000 269,375
Pawnee County, School District #495, GO, 5.10%, 9/1/04, Callable 255,000 266,475
9/1/03 @ 100, FSA
Phillips County, School District #325, GO, 5.20%, 9/1/03, Callable 100,000 104,125
9/1/02 @ 100
Phillips County, School District #325, GO, 5.60%, 9/1/07, Callable 155,000 161,975
9/1/02 @ 100
Pittsburg, Water & Sewer System Revenue, 6.50%, 9/1/04, Prerefunded 110,000 114,675
9/1/99 @ 100
Pittsburg, Water & Sewer System Revenue, Series A, 6.40%, 9/1/03, 105,000 109,331
Prerefunded 9/1/99 @ 100
Pottawatomie County, School District #320, GO, Series 1990, 6.60%, 500,000 543,125
10/1/02, Callable 10/1/01 @ 100, AMBAC
Pratt, Electric System Revenue, 6.60%, 11/1/07, Callable 11/1/03 @ 250,000 290,000
100, AMBAC
Pratt, Electric System Revenue, 4.95%, 11/1/10, Callable 11/1/05 @101 635,000 635,794
Pratt, Electric System Revenue, 5.00%, 11/1/11, Callable 11/1/05 @101 665,000 662,505
Pratt, Electric System Revenue, 6.00%, 11/1/12, Callable 11/1/00 @ 250,000 263,125
100, AMBAC
Reno County Mortgage, Series B, 8.70%, 9/1/11,, Callable 9/1/01 @ 103 155,000 167,594
Reno County, School District #308, GO, 6.25%, 8/1/00, Callable 8/1/98 685,000 696,959
@ 100
Rice County, Union School District #444, 5.08%, 9/1/14, Callable 755,000 737,068
9/1/07 @ 100
Riley County, GO, Series B, 6.10%, 9/1/06, Callable 9/1/04 @ 100 110,000 120,313
Riley County, GO, Series B, 6.20%, 9/1/07, Callable 9/1/04 @ 100 110,000 121,275
Riley County, GO, Series B, 6.30%, 9/1/08, Callable 9/1/04 @ 100 110,000 121,688
Riley County, GO, Series B, 6.40%, 9/1/09, Callable 9/1/04 @ 100 110,000 121,000
Riley County, School District #383, Series 1992, 5.00%, 11/1/98 335,000 336,682
</TABLE>
continued
<PAGE>
THE INTRUST FUNDS TRUST
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1997
Principal Market
Kansas, continued: Amount Value
------ -----
<S> <C> <C>
Rural Water Finance Authority, District #13 Revenue Bond, Series F, $ 400,000 $ 410,000
5.90%, 6/1/11, Callable 6/1/01 @ 100
Salina Hospital Revenue, 5.30%, 10/1/13, Callable 10/1/03 @100, AMBAC 750,000 755,624
Salina, Internal Improvement, Series P-240, 5.50%, 10/1/99 100,000 102,625
Salina, Water & Sewer Revenue, 5.00%, 9/1/07, Callable 9/1/02 @ 100, 330,000 334,125
MBIA
Scott City, Water System, Series A, 5.25%, 9/1/04, Callable 9/1/02 @ 130,000 132,763
100
Scott City, Water System, Series A, 5.40%, 9/1/05, Callable 9/1/02 @ 140,000 143,150
100
Scott City, Water System, Series A, 5.60%, 9/1/06, Callable 9/1/02 @ 140,000 143,150
100
Scott City, Water System, Series A, 5.70%, 9/1/07, Callable 9/1/02 @ 150,000 154,500
100
Scott City, Water System, Series A, 5.80%, 9/1/08, Callable 9/1/02 @ 145,000 149,713
100
Scott County, School District #466, GO, Series 1993, 5.38%, 9/1/06, 685,000 695,274
Callable 9/1/01 @ 100
Sedgwick & Shawnee Counties Single Family Revenue, 4.90%, 6/1/16 785,000 788,924
Sedgwick & Shawnee Counties, Series B-II, 7.80%, 5/1/14, Callable 185,000 205,350
11/1/04 @ 103, GNMA
Sedgwick & Shawnee Counties, Single Family Revenue, Series B-1, 440,000 509,300
8.05%, 5/1/14, GNMA
Sedgwick & Shawnee Counties, Single Family Revenue, Series B-II, 80,000 84,200
5.25%, 11/1/04, GNMA
Sedgwick & Shawnee Single Family Revenue, 5.50%, 6/1/29 1,250,000 1,370,312
Sedgwick County Family Mortgage Series A-2, 6.50%, 12/1/16, Callable 900,000 959,624
12/1/07 @ 105, GNMA
Sedgwick County, GO, Series B, 4.05%, 8/1/98 250,000 250,493
Sedgwick County, Mortgage Loan Revenue, Series A, 7.30%, 12/1/12, 535,000 572,450
Callable 9/1/01 @ 103, GNMA
Sedgwick County, Public Building, 5.00%, 8/1/16, Callable 8/1/04 @100 400,000 391,500
Sedgwick County, School District #262, GO, Valley Center, 5.10%, 100,000 96,224
11/1/98, MBIA
Sedgwick County, School District #266, GO, 5.25%, 9/1/13, Callable 650,000 656,500
9/1/02 @ 101, FGIC
Seward County, GO, Series B, 6.00%, 8/15/08, Callable 8/15/01 @ 100, 250,000 259,375
AMBAC
Seward County, GO, Series B, 6.00%, 8/15/13, Callable 8/15/01 @ 100, 250,000 259,063
AMBAC
Seward County, School District #480, GO, Series 1992, 5.00%, 12/1/00, 500,000 504,445
Callable 12/1/98 @ 100, MBIA
Seward County, School District #483, Kismet-Plains, GO, 5.20%, 600,000 607,500
10/1/12, Callable 10/1/06 @ 100
Seward County, Single Family Mortgage Revenue, Series B, 8.00%, 275,000 296,656
5/1/11, Callable 11/1/01 @ 103
Shawnee County, GO, Series 1992 C, 5.60%, 9/1/04, Callable 9/1/02 @ 500,000 524,375
100
Shawnee County, GO, Series B, 5.50%, 9/1/09, Callable 9/1/03 @ 100 250,000 258,438
Shawnee County, GO, Series B, 5.50%, 9/1/11, Callable 9/1/03 @ 100 250,000 256,563
Shawnee County, Health Care Revenue, 5.15%, 8/15/10, Callable 8/15/05 500,000 506,875
@ 100, FSA
Shawnee County, Revenue Bond, 4.70%, 12/1/04, Callable 12/1/03 @ 102 230,000 232,875
Shawnee County, Revenue Bond, 5.00%, 12/1/10, Callable 12/1/03 @ 102 360,000 353,700
Shawnee County, School District #345, GO, 7.20%, 9/1/98, MBIA 250,000 256,735
Shawnee County, School District #345, GO, 5.75%, 9/1/11, Callable 250,000 260,625
9/1/04 @ 100, MBIA
Shawnee County, School District #437, Auburn-Washburn, GO, 5.25%, 250,000 252,813
9/1/11, Callable 9/1/04 @ 100
Shawnee County, School District #437, Auburn-Washburn, GO, 5.25%, 350,000 353,063
9/1/12, Callable 9/1/04 @ 100
Shawnee County, School District #437, Auburn-Washburn, GO, 5.25%, 175,000 175,875
9/1/13, Callable 9/1/04 @ 100
</TABLE>
continued
<PAGE>
THE INTRUST FUNDS TRUST
- --------------------------------------------------------------------------------
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1997
<TABLE>
<CAPTION>
Principal Market
Kansas, continued: Amount Value
------ -----
<S> <C> <C>
Shawnee County, School District #437, Auburn-Washburn, GO, Series $ 700,000 $ 758,624
1992, 6.25%, 3/1/03, Callable 3/1/02 @ 100, FGIC
State Department of Transportation, Highway Revenue, 5.38%, 3/1/13 1,000,000 1,012,499
State Department of Transportation, Highway Revenue, Series 1993, 250,000 257,188
5.00%, 3/1/04, Callable 3/1/03 @ 102
State Development Finance Authority Revenue, 4.45%, 5/1/01 355,000 359,438
State Development Finance Authority Revenue, 5.13%, 6/1/06, Callable 250,000 257,813
6/1/03 @ 102, AMBAC
State Development Finance Authority Revenue, 5.20%, 5/1/07, Callable 120,000 125,850
5/1/04 @ 101, MBIA
State Development Finance Authority Revenue, 5.40%, 5/1/09, Callable 135,000 141,581
5/1/04 @ 101, MBIA
State Development Finance Authority Revenue, 5.45%, 5/1/10, Callable 100,000 105,250
5/1/04 @ 101, MBIA
State Development Finance Authority Revenue, 5.50%, 5/1/11, Callable 100,000 105,250
5/1/04 @ 101, MBIA
State Development Finance Authority Revenue, 5.55%, 5/1/12, Callable 100,000 105,250
5/1/04 @ 101, MBIA
State Development Finance Authority Revenue, 5.75%, 5/1/14, Callable 370,000 388,038
5/1/03 @ 102
State Development Finance Authority Revenue, 5.50%, 5/1/14, Callable 1,000,000 1,026,249
5/1/07 @ 100 (c)
State Development Finance Authority Revenue, Department of 250,000 260,938
Corrections, El Dorado, Project L, 5.63%, 2/1/03, Callable 2/1/00 @
102, MBIA
State Development Finance Authority Revenue, Project K-II, 5.50%, 500,000 511,875
10/1/10, Callable 10/1/01 @ 101
State Development Finance Authority Revenue, Project K-II, 5.60%, 500,000 512,500
10/1/11, Callable 10/1/01 @ 101
State Development Finance Authority Revenue, Series J, 5.40%, 4/1/10, 500,000 516,250
Callable 4/1/05 @ 100
State Development Finance Authority, Health Facilities Revenue, Hays 500,000 500,000
Medical Center Inc., 5.38%, 11/15/16
State Development Finance Authority, Health Facilities Revenue, Hays 500,000 502,500
Medical Center Inc., 5.50%, 11/15/17, Callable 11/15/07 @ 100, MBIA
State Development Finance Authority, Health Facilities Revenue, 475,000 500,531
Stormont Health Care, 5.40%, 11/15/05, MBIA
State Development Finance Authority, Health Facilities Revenue, 500,000 525,625
Stormont Health Care, 5.75%, 11/15/10, Callable 11/15/06 @ 100, MBIA
State Development Finance Authority, Health Facilities Revenue, 500,000 520,625
Stormont Health Care, 5.80%, 11/15/16, Callable 11/15/06 @ 100, MBIA
State Development Financial Authority , Health Facilities Revenue, 500,000 511,875
Hays Medical Center, Series B, 5.38%, 11/15/10, Callable 11/15/07 @
100, MBIA
State Turnpike Authority Revenue Bond, 5.40%, 9/1/09, Callable 9/1/03 260,000 268,450
@102, AMBAC
Sumner County, Bridge Improvement, GO, Series 1992, 6.00%, 11/1/04, 435,000 463,819
Callable 11/1/01 @ 100, AMBAC
Sumner County, Bridge Improvement, GO, Series 1992, 6.00%, 11/1/05, 250,000 265,938
Callable 11/1/01 @ 100, AMBAC
Sumner County, School District #357, Belle Plaine, GO, 5.55%, 9/1/13, 375,000 383,438
Callable 9/1/03 @ 100
Thomas County, School District #315, GO, Series 1993, 4.20%, 9/1/01, 150,000 149,250
FSA
Thomas County, School District #315, GO, Series 1993, 4.30%, 9/1/02, 160,000 159,400
FSA
Thomas County, School District #315, GO, Series 1993, 4.40%, 9/1/03, 165,000 164,794
FSA
Thomas County, School District #315, GO, Series 1993, 4.60%, 9/1/04, 175,000 175,656
Callable 9/1/03 @ 100 FSA
Topeka, GO, Series A, 5.50%, 8/15/16, Callable 8/15/01 @ 101 500,000 506,250
Topeka, GO, Series C, 5.50%, 8/15/05, Callable 8/15/99 @ 101 250,000 255,938
Topeka, Hospital Revenue, 6.75%, 11/15/00, MBIA 500,000 538,125
</TABLE>
<PAGE>
THE INTRUST FUNDS TRUST
- --------------------------------------------------------------------------------
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1997
<TABLE>
<CAPTION>
Principal Market
Kansas, continued: Amount Value
------ -----
<S> <C> <C>
Wellington, Electric Waterworks & Sewer Revenue, 7.05%, 5/1/06, $ 250,000 $ 293,750
Callable 5/1/02 @ 100, AMBAC
Wellington, Electric Waterworks & Sewer Revenue, 6.25%, 5/1/12, 250,000 264,375
Callable 5/1/02 @ 100, AMBAC
Wichita, GO, 4.70%, 9/1/12, Callable 9/1/04 @101 565,000 547,344
Wichita, GO, Series 746, 5.30%, 9/1/12, Callable 9/1/04 @ 100 750,000 764,999
Wichita, Hospital Revenue, 6.00%, 7/1/04, Callable 1/2/98 @ 100 892,000 947,749
Wichita, Multifamily Housing Revenue, 5.90%, 12/1/16, Callable 660,000 683,099
12/1/05 @ 102
Wichita, Single Family Mortgage Revenue, Series A, 7.10%, 9/1/09, 295,000 316,756
Callable 3/1/03 @ 103
Wichita, Water & Sewer Utilities Revenue, 5.60%, 10/1/05, Callable 750,000 777,187
10/1/00 @ 101, FGIC
Wichita, Water & Sewer Utilities Revenue, 4.75%, 10/1/08, Callable 405,000 405,000
10/1/04 @ 101, FGIC
Wichita, Water & Sewer Utilities Revenue, 4.88%, 10/1/09, Callable 900,000 902,249
10/1/04 @ 101, FGIC
Winfield, Sales Tax Revenue, 5.10%, 9/1/06, Callable 9/1/03 @ 100 100,000 101,875
Winfield, Sales Tax Revenue, 5.25%, 9/1/07, Callable 9/1/03 @ 100 100,000 101,875
Winfield, Sales Tax Revenue, 5.40%, 9/1/08, Callable 9/1/03 @ 100 100,000 101,875
Wyandotte County, School District #203, Piper, GO, Series 1992, 140,000 144,025
5.75%, 9/1/03, Callable 9/1/01 @ 100
Wyandotte County, School District #203, Piper, GO, Series 1992, 295,000 303,481
5.90%, 9/1/04, Callable 9/1/01 @ 100
Wyandotte County, School District #203, Piper, GO, Series 1992, 500,000 517,500
-------
6.60%, 9/1/13, Callable 9/1/01 @ 100
Total Kansas 99,547,908
----------
Puerto Rico (3.6%)
Puerto Rico Commonwealth, Highway & Transportation Authority, Highway 500,000 513,125
Revenue, Series X, 5.00%, 7/1/02
Puerto Rico, Electric Power Authority Revenue, Series S, 6.13%, 1,000,000 1,127,500
7/1/09, MBIA-IBC
Puerto Rico, Electric Power Authority Revenue, Series Z, 5.50%, 1,000,000 1,025,000
7/1/14, Callable 7/1/05 @ 102, MBIA-IBC
Puerto Rico, Public Buildings Authority, Education & Health 500,000 504,375
Facilities Revenue, Series I, 6.00%, 7/1/12, Callable 7/1/99 @ 100
Puerto Rico, Public Buildings Authority, Education & Health 500,000 516,250
-------
Facilities Revenue, Series M, 5.75%, 7/1/15, Callable 7/1/03 @
101.50, AMBAC
Total Puerto Rico 3,686,250
---------
Total Municipal Bonds (Cost $100,825,889) 103,800,908
-----------
<CAPTION>
Shares
------
<S> <C> <C>
INVESTMENT COMPANIES (0.7%)
Provident Institutional Muni-Cash Tax-Free Money Market Fund 726,629 726,629
-------
Total Investment Companies (Cost $726,629) 726,629
-------
Total (Cost $101,552,518) (a) - 100.9% $ 104,527,537
===========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $103,615,860.
(a) Represents cost for federal tax purposes and differs from market value
by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 3,061,993
Unrealized depreciation (86,974)
-----------------
Net unrealized appreciation $ 2,975,019
-----------------
</TABLE>
<PAGE>
(b) When-Issued security
(c) Segregated assets to be used to fulfill commitments related to the
when-issued security
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
SO = Special Obligations
See notes to financial statements
<PAGE>
THE INTRUST FUNDS TRUST
Notes to Financial Statements
October 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, which have not yet
been offered for sale, 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 Money Market
Fund, the Short-Term Bond Fund, the Intermediate Bond Fund, the Stock Fund,
the International Multi-Manager Stock Fund, and the Kansas Tax-Exempt Bond
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 a high
level of 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 by investing in common stocks issued by
companies with large market capitalization. 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 October 31, 1997 was
approximately 5.4%. The financial statements of the Portfolio, including its
schedule of investments, are included elsewhere in this report and should be
read in conjunction with the International Multi-Manager Stock Fund's
financial statements. 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 by investing in municipal
obligations with maturities ranging from 1 to 15 years.
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.
Effective September 1, 1997, the Kansas Tax-Exempt Bond Fund changed its
fiscal year end from August 31,to October 31. The accompanying financial
statements and financial highlights are for the period from September 1, 1997
through October 31, 1997 and for the years ended August 31, 1996 and prior.
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.
-continued-
<PAGE>
THE INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1997
- --------------------------------------------------------------------------------
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 Short-Term Bond Fund, the
Intermediate Bond Fund, the Stock Fund, and the Kansas Tax-Exempt Bond Fund,
(the "variable net asset value 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 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. Restricted securities and other securities for which
quotations are not readily available are valued at fair value using pricing
methods approved by the Board of Trustees. Investments in investment
companies are valued at their respective net asset value as reported by such
companies. The differences between cost and market values of investments are
reflected as unrealized appreciation or depreciation.
Security Transactions and Related Income
Security transactions are accounted for on a trade date basis.
Investment Income for all Funds Except for the International Multi-
Manager Stock Fund
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.
Investment Income for the International Multi-Manager Stock Fund
The Fund records daily its proportionate share of the income and
unrealized and realized gains and losses of the International Equity
Portfolio of the AMR Investment Services Trust.
Securities Purchased on a When-issued Basis and Delayed Delivery Basis:
Each Fund may purchase securities on a "when-issued" basis. When-issued
securities are securities purchased for delivery beyond the normal settlement
date at a stated price and/or yield, thereby involving the risk that the
price and/or yield obtained may be more or less than those available in the
market when delivery takes place. The Fund records the transaction and
reflects the value of the security in determining net asset value at the time
the Fund makes the commitment to purchase a security on a when-issued basis.
Normally, the settlement date occurs within one month of the purchase. No
payment is made by the Fund and no interest accrues to the Fund during the
period between purchase and settlement. The Fund establishes a segregated
account in which it maintains cash and marketable securities equal in value
to commitments for when-issued securities. Securities purchased on a
when-issued basis or delayed delivery basis do not earn income until the
settlement date.
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 based on relative net assets. In
addition to accruing its own expenses the International Multi-Manager Stock
Fund records daily its proportionate share of the expenses of the
International Equity Portfolio of the AMR Investment Services Trust.
-continued-
<PAGE>
THE INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1997
- --------------------------------------------------------------------------------
Dividends and Distributions to Shareholders
Dividends from net investment income for the Money Market Fund, Short-Term
Bond Fund, Intermediate Bond Fund and the Kansas Tax-Exempt 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. Dividends from net realized capital gains, if
any, are distributed at least annually
Distributions from net investment income and from net realized capital gains
are determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These "book/tax" differences are
primarily due to differing treatments for mortgage-backed securities, expiring
capital loss carryforwards and deferrals of certain losses.
These "book/tax" differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the composition of net assets based on their federal
tax-basis treatment; temporary differences do not require reclassifications.
Dividends and distributions to shareholders which exceed net investment income
and net realized capital gains for financial reporting purposes but not for
tax purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized gains. To the extent they exceed net
investment income and net realized capital gains for tax purposes, they are
reported as distributions of capital.
As of October 31, 1997, the following reclassifications have been made to
increase (decrease) such accounts with offsetting adjustments made to capital:
<TABLE>
<CAPTION>
Accumulated
Undistributed Accumulated Net
Net Investment Realized Gain (Loss)
Income on Investments
------ --------------
<S> <C> <C>
Money Market Fund $ 12,264 $ ----
Short-Term Bond Fund 6,163 602
Intermediate Bond Fund 5,167 1,246
Stock Fund 7,796 ----
International Multi-Manager Stock Fund 26,458 (497,296)
</TABLE>
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 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, except for
the Kansas Tax-Exempt Bond Fund. 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.
-continued-
<PAGE>
THE INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1997
- --------------------------------------------------------------------------------
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 and for the periods ending October
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.
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;
0.40% of the International Multi-Manager Stock Fund; and 0.30% of the Kansas
Tax-Exempt Bond 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 Adviser is party to a sub-investment advisory agreement under which the
subadvisers are entitled to receive a fee from the Adviser, computed daily
and paid monthly, equal to the following percentages of the Funds' average
net assets: 0.20% of the Money Market Fund; 0.125% of the Short-Term Bond
Fund and the Intermediate Bond Fund; and 0.45% of the Stock Fund. The
individual subadvisers are listed as follows:
AMR Investment Services, Inc. - The Money Market Fund
Galliard Capital Management, Inc. - The Short-Term Bond Fund and the
Intermediate Bond Fund
Ark Asset Management, Inc. - The Stock Fund
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%. For the
Kansas Tax-Exempt Bond Fund, 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 Funds are sold on a
continuous basis. Each class is subject to a distribution plan (the "Plan")
pursuant to Rule 12b-1 under the 1940 Act. The plan was effective starting
May 17, 1997 for the Kansas Tax-Exempt Bond Fund. As provided under the Plan
the Trust will pay the Distributor 0.25% per annum of the average daily net
assets of the Funds. The Kansas Tax-Exempt Bond Fund will not incur any
distribution expenses during its first year of operation.
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
-continued-
<PAGE>
THE INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1997
- --------------------------------------------------------------------------------
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.
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Such fees are permanently waived. For the Kansas
Tax-Exempt Bond Fund fees are waived to maintain total annual operating
expenses at no more than 0.21% per year of average daily net assets.
Information regarding these transactions is as follows for the period ending
October 31, 1997:
<TABLE>
<CAPTION>
Money
Market Short-Term Intermediate
Fund Bond Fund Bond Fund
---- --------- ---------
<S> <C> <C> <C>
Investment Advisory Fees Waived $72,463 $67,807 $29,767
Administration Fees Waived --- $2,840 $2,945
12b-1 Fees Waived $120,770 $80,723 $67,653
Fund Accounting Fees $24,065 $27,504 $27,711
Transfer Agent Fees $3,933 $2,660 $2,630
<CAPTION>
International Kansas
Multi-Manager Tax-Exempt
Stock Fund Stock Fund Bond Fund(a)
---------- ---------- ------------
<S> <C> <C> <C>
Investment Advisory Fees Waived $55,060 $10,897 $50,811
Administration Fees Waived $2,942 $7,743 $33,874
12b-1 Fees Waived $105,886 $54,482 ---
Shareholder Services Fees Waived --- --- $13,550
Custody Fees Waived --- --- $3,387
Reimbursed Fees --- --- $1,761
Fund Accounting Fees $26,079 $23,303 $17,492
Transfer Agent Fees $2,990 $2,429 $2,371
</TABLE>
(a) For the period from September 1, 1997 through October 31, 1997
5. Securities Transactions:
The cost of security purchases and the proceeds from the sale of securities
(excluding short-term securities) during the period ended October 31,1997
were as follows:
<TABLE>
<CAPTION>
Purchases Sales
--------- -----
<S> <C> <C>
Short-Term Bond Fund $83,718,970 $31,604,523
Intermediate Bond Fund $78,826,580 $34,547,347
Stock Fund $105,110,674 $34,592,132
Kansas Tax-Exempt Bond Fund(a) $11,305,501 $5,968,908
</TABLE>
(a) For the period from September 1, 1997 through October 31, 1997
-continued-
<PAGE>
THE INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1997
- --------------------------------------------------------------------------------
6. Concentration of Credit Risk:
The Kansas Tax-Exempt Fund invests in debt instruments of municipal issuers.
The issuers' abilities to meet their obligations may be affected by economic
developments in a specific state or region.
The Fund invests in securities which include revenue bonds, tax exempt
commercial paper, tax and revenue anticipation notes, and general obligation
bonds. At October 31, 1997 the percentage of portfolio investments by each
revenue source were as follows:
<TABLE>
<S> <C>
General Obligation Bonds 49.3%
Revenue Bonds 47.3%
Educational Bonds 3.0%
Certificates of Participation 0.4%
</TABLE>
7. Federal Income Taxes:
At October 31, 1997, the following Funds have capital loss carryforwards
which are available to offset future capital gains, if any:
<TABLE>
<CAPTION>
Short-Term Intermediate
Bond Fund Bond Fund
---------- ------------
<S> <C> <C>
Expires in 2005................................ $ 43,071 $ 118,226
</TABLE>
It is the intent of the Board of Trustees not to distribute any realized
gains until carryforwards have been offset or expired.
8. Exempt-Interest Income Designation (Unaudited):
The Kansas Tax-Exempt Fund designated $4,503,401 in exempt-interest dividends
for the taxable year ended August 31, 1997.
<PAGE>
THE INTRUST FUNDS TRUST
Financial Highlights
================================================================================
<TABLE>
<CAPTION>
Money Market
Fund
--------------
January 23,
1997 to
October 31,
1997 (a)
--------------
<S> <C>
Net Asset Value, Beginning of Period $ 1.000
--------------
Investment Activities:
Net investment income 0.038
Net realized and unrealized gains (losses)
from investments 0.000
--------------
Total from Investment Activities 0.038
--------------
Distributions:
Net investment income (0.038)
In excess of net investment income ---
Net realized gains 0.000
In excess of net realized gains ---
--------------
Total Distributions (0.038)
--------------
Net Asset Value, End of Period $ 1.000
==============
Total Return 3.86% (b)
Ratios/Supplementary Data:
Net Assets at end of period (000) $ 55,566
Ratio of expenses to average net assets 0.71% (c)
Ratio of net investment income to average net assets 4.92% (c)
Ratio of expenses to average net assets* 1.11% (c)
Ratio of net investment income to average net assets* 4.52% (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>
THE INTRUST FUNDS TRUST
Financial Highlights
================================================================================
<TABLE>
<CAPTION>
Short-Term
Bond Fund
--------------------------
January 21,
1997 to
October 31,
1997 (a)
--------------------------
<S> <C>
Net Asset Value,
Beginning of Period $ 10.00
--------------------------
Investment Activities:
Net investment income 0.42
Net realized and unrealized gains (losses)
from investments 0.08
--------------------------
Total from Investment Activities 0.50
--------------------------
Distributions:
Net investment income (0.42)
In excess of net investment income ---
Net realized gains ---
In excess of net realized gains ---
--------------------------
Total Distributions (0.42)
--------------------------
Net Asset Value,
End of Period $ 10.08
==========================
Total Return 5.13% (b)
Ratios/Supplementary Data:
Net Assets at end of period (000) $ 52,682
Ratio of expenses to
average net assets 0.78% (c)
Ratio of net investment income
to average net assets 5.48% (c)
Ratio of expenses to
average net assets* 1.25% (c)
Ratio of net investment income
to average net assets* 5.01% (c)
Portfolio turnover 84.41%
</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>
THE INTRUST FUNDS TRUST
Financial Highlights
================================================================================
<TABLE>
<CAPTION>
Intermediate
Bond Fund
--------------
January 21,
1997 to
October 31,
1997 (a)
--------------
<S> <C>
Net Asset Value,
Beginning of Period $ 10.00
--------------
Investment Activities:
Net investment income 0.45
Net realized and unrealized gains (losses)
from investments 0.21
--------------
Total from Investment Activities 0.66
--------------
Distributions:
Net investment income (0.45)
In excess of net investment income ---
Net realized gains ---
--------------
Total Distributions (0.45)
--------------
Net Asset Value,
End of Period $ 10.21
==============
Total Return 6.77% (b)
Ratios/Supplementary Data:
Net Assets at end of period (000) $ 46,492
Ratio of expenses to
average net assets 0.90% (c)
Ratio of net investment income
to average net assets 5.83% (c)
Ratio of expenses
to average net assets * 1.27% (c)
Ratio of net investment income
to average net assets * 5.46% (c)
Portfolio turnover 108.73%
</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>
THE INTRUST FUNDS TRUST
Financial Highlights
================================================================================
<TABLE>
<CAPTION>
Stock
Fund
--------------------------
January 21,
1997 to
October 31,
1997 (a)
--------------------------
<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 1.27
--------------------------
Total from Investment Activities 1.31
--------------------------
Distributions:
Net investment income ---
In excess of net investment income ---
Net realized gains ---
In excess of net realized gains ---
--------------------------
Total Distributions ---
--------------------------
Net Asset Value,
End of Period $ 11.31
==========================
Total Return 13.10% (b)
Ratios/Supplementary Data:
Net Assets at end of period (000) $ 79,834
Ratio of expenses to
average net assets 1.41% (c)
Ratio of net investment income
to average net assets 0.63% (c)
Ratio of expenses to
average net assets * 1.80% (c)
Ratio of net investment income
to average net assets * 0.24% (c)
Portfolio turnover 71.76%
Average commission rate paid (d) $ 0.0560
</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) Represents the dollar amount of commission paid on portfolio transactions
divided by the total number of shares purchased and sold for which
commissions were charged.
See notes to financial statements.
<PAGE>
THE INTRUST FUNDS TRUST
Financial Highlights
================================================================================
<TABLE>
<CAPTION>
International
Multi-Manager
Stock Fund
---------------
January 20,
1997 to
October 31,
1997 (a)
---------------
<S> <C>
Net Asset Value,
Beginning of Period $ 10.00
---------------
Investment Activities:
Net investment income 0.11
Net realized and unrealized gains (losses)
from investments 0.86
---------------
Total from Investment Activities 0.97
---------------
Distributions:
Net investment income ---
In excess of net investment income
Net realized gains ---
---------------
Total Distributions ---
---------------
Net Asset Value,
End of Period $ 10.97
===============
Total Return 9.70% (b)
Ratios/Supplementary Data:
Net Assets at end of period (000) $ 41,135
Ratio of expenses to
average net assets 1.42% (c)
Ratio of net investment income
to average net assets 1.91% (c)
Ratio of expenses to
average net assets* 1.75% (c)
Ratio of net investment income
to average net assets* 1.58% (c)
Portfolio turnover --- (d)
Average commission 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>
THE INTRUST FUNDS TRUST
Financial Highlights
================================================================================
<TABLE>
<CAPTION>
Kansas Tax-Exempt Bond Fund (a)
--------------------------------------------------------------
For the
Period from Years Ended August 31,
September 1, --------------------------------------------------------------
1997 to
October 31, 1997 1996 1995 1994 1993
1997 (b)
-------------- -------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 10.66 $ 10.51 $ 10.63 $ 10.47 $ 10.91 $ 10.50
---------- ---------- ---------- ------------ --------- -----------
Investment Activities:
Net investment income 0.09 0.55 0.56 0.57 0.57 0.58
Net realized and unrealized gains (losses)
from investments 0.07 0.19 (0.12) 0.16 (0.42) 0.46
---------- ---------- ---------- ------------ --------- -----------
Total from Investment Activities 0.16 0.74 0.44 0.73 0.15 1.04
---------- ---------- ---------- ------------ --------- -----------
Distributions:
Net investment income (0.09) (0.59) (0.56) (0.57) (0.57) (0.58)
In excess of net investment income --- --- --- --- (0.02) (0.05)
---------- ---------- ---------- ------------ --------- -----------
Total Distributions (0.09) (0.59) (0.56) (0.57) (0.59) (0.63)
---------- ---------- ---------- ------------ --------- -----------
Net Asset Value,
End of Period $ 10.73 $ 10.66 $ 10.51 $ 10.63 $ 10.47 $ 10.91
========== ========== ========== ============ ========= ============
Total Return 1.5(c) 7.27% 4.23% 7.23% 1.41% 10.38%
Ratios/Supplementary Data:
Net Assets at end of period (000) $ 103,616 $ 96,780 $ 72,065 $ 65,834 $ 62,346 $ 58,197
Ratio of expenses to
average net assets 0.2(d) 0.21% 0.21% 0.21% 0.21% 0.21%
Ratio of net investment income
to average net assets 5.1(d) 5.20% 5.31% 5.47% 5.36% 5.56%
Ratio of expenses to
average net assets * 0.8(d) 0.62% 0.51% 0.51% 0.54% 0.51%
Ratio of net investment income
to average net assets * 4.4(d) 4.79% 5.01% 5.17% 5.03% 5.26%
Portfolio turnover 5.87% 8.78% 12.71% 17.60% 10.57% 23.04%
- ------------
</TABLE>
* During the period certain fees were voluntarily reduced and/or
reimbursed. If such voluntary fee reductions and/or reimbursements had
not occurred, the ratios would have been as indicated.
(a) Formerly the Kansas Tax Free Income Portfolio of the SEI Tax-Exempt
Trust.
(b) For the period from September 1, 1997, through October 31, 1997. The
Kansas Tax-Exempt Bond Fund changed its fiscal year end to October 31,
1997.
(c) Not annualized.
(d) Annualized
See notes to financial statements.
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Trustees
AMR Investment Services International Equity Portfolio
We have audited the accompanying statement of assets and liabilities of the AMR
Investment Services International Equity Portfolio (the "Portfolio") (a separate
fund of the AMR Investment Services Trust) including the schedule of investments
as of October 31, 1997, the related statement of operations for the year then
ended and the statement of changes in net assets and the financial highlights
for each of the two years in the period then ended. These financial statements
and financial highlights are the responsibility of the Portfolio's management.
Our responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
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 confirmations of investments owned as of
October 31, 1997, by correspondence with the custodian. 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 audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
AMR Investment Services International Equity Portfolio at October 31, 1997, the
results of its operations for the year then ended, the changes in its net assets
and the financial highlights for each of the two years in the period then ended,
in conformity with generally accepted accounting principles.
Ernst & Young LLP
Dallas, Texas
December 19, 1997
<PAGE>
<TABLE>
<CAPTION>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Statements of Assets and Liabilities
October 31, 1997
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investments in securities at value (cost - $664,005) $ 774,331,000
Cash, including foreign currency........................................ 31,919,000
Unrealized appreciation on foreign currency contracts................... 542,000
Dividends and interest receivable....................................... 2,190,000
Reclaims receivable..................................................... 794,000
Receivable for investments sold......................................... 1,521,000
Deferred organization costs............................................. 18,000
--------------
Total assets.................................................... 811,315,000
--------------
LIABILITIES:
Payable for investments purchased....................................... 1,144,000
Payable upon return of securities loaned................................ 47,053,000
Management and investment advisory fees payable (Note 2)................ 1,109,000
Accrued organization costs.............................................. 35,000
Other liabilities....................................................... 301,000
--------------
Total liabilities............................................... 49,642,000
--------------
Net assets applicable to investors' beneficial interests.................... $ 761,673,000
==============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Statement of Operations
Year Ended October 31, 1997
==============================================================================================================
<S> <C>
INVESTMENT INCOME:
Interest income............................................................. $ 2,891,000
Dividend income (net of foreign taxes of $1,542)............................ 15,631,000
Income derived from securities lending, net................................. 322,000
--------------------
Total investment income................................................. 18,844,000
--------------------
EXPENSES:
Management and investment advisory
fees (Note 2)............................................................ 2,828,000
Custodian fees.............................................................. 515,000
Professional fees........................................................... 25,000
Amortization of orgainzation expenses....................................... 15,000
Other expenses.............................................................. 50,000
--------------------
Total expenses........................................................... 3,433,000
--------------------
Net investment income............................................................ 15,411,000
--------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments........................................... 24,290,000
Net realized loss on foreign currency
transactions............................................................. (2,959,000)
Change in net unrealized appreciation of
investments............................................................... 77,517,000
Change in net unrealized depreciation of foreign currency
contracts and translations................................................ (20,412,000)
--------------------
Net gain on investments................................................... 78,436,000
--------------------
Net increase in net assets resulting from
operations..................................................................... $ 93,847,000
====================
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Statements of Changes in Net Assets
================================================================================
<TABLE>
<CAPTION>
Year Ended October 31,
----------------------------------------------
1997 1996
--------------------- -------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income........................................... $ 15,411,000 $ 8,135,000
Net realized gain on investments and
foreign currency transactions................................. 21,331,000 11,172,000
Change in net unrealized appreciation
(depreciation) of investments and
foreign currency translations................................. 57,105,000 30,752,000
--------------------- -------------------
Net increase in net assets
resulting from operations.................................. 93,847,000 50,059,000
--------------------- -------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Contributions................................................... 397,499,000 397,164,000
--------------------- -------------------
Withdrawals..................................................... (134,169,000) (42,727,000)
--------------------- -------------------
Net increase in net assets resulting
from transactions in investors'
beneficial interests....................................... 263,330,000 354,437,000
--------------------- -------------------
Net increase in net assets............................................. 357,177,000 404,496,000
--------------------- -------------------
NET ASSETS:
Beginning of period................................................ 404,496,000 0
--------------------- -------------------
End of period...................................................... $ 761,673,000 $ 404,496,000
===================== ===================
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS:
- -----------------------------------------------------------------------------------------------------------------------
RATIOS:
Expenses to average net assets
(annualized) .................................................. 0.57% 0.56%
Net investment income to average net
assets (annualized)............................................ 2.55% 2.50%
Portfolio turnover rate......................................... 15% 19%
Average commission rate paid.................................... $ 0.0164 $ 0.0192
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Notes to Financial Statements
October 31, 1997 (continued)
================================================================================
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 Trust's Board of Trustees (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.
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Notes to Financial Statements
October 31, 1997 (continued)
================================================================================
Federal Income and Excise Taxes
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):
Amount paid to Net Amount paid to
Management Fee Rate Management Fee Investment Advisors Manager
- ------------------- -------------- ------------------- -------
.25% - .90% $2,828 $2,224 $604
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 October 31, 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 October 31,
1997 were $315,060,000 and $84,780,000, respectively.
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Notes to Financial Statements
October 31, 1997 (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 October 31, 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> <C>
3,500 AUD 1/12/98 $ 2,734 $ 1
56 CHF 11/3/97 40 -
102 DEM 11/3/97 59 -
300,000 ESP 12/2/97 2,058 251
79,000 FRF 6/19/98 13,830 12
-------------------- ----------------------
Total contracts to deliver
(Receivable amount $18,985) $ 18,445 $ 540
==================== ======================
Contracts to Receive
- --------------------
(amounts in thousands)
187 AUD 11/6/97 $ 132 $ -
83 CHF 11/3/97 59 -
300,000 JPY 11/5/97 2,494 (6)
52 SGD 11/7/97 33 -
4,318 DEM 11/4/97 2,508 8
69 DEM 11/3/97 40 -
22 AUD 11/7/97 16 -
25 AUD 11/10/97 17 -
-------------------- ----------------------
Total contracts to receive
(Payable amount $5,297) $ 5,299 $ 2
==================== ======================
</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 October 31,
1997, securities with a market value of approximately $51,436,000 were loaned by
the Portfolio. The non-cash collateral for these loans totaled $7,446,000 and
the cash collateral totaled $47,053,000.
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Notes to Financial Statements
October 31, 1997 (continued)
================================================================================
totaling $47,053,000. In addition, the custodian held non-cash collateral
totaling $7,446,000. The Manager serves as Trustee and as investment adviser to
the Business Trust. The Manager receives from the Business Trust an annualized
fee equal to 0.10% of the average daily net assets of the Business Trust.
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Shares Value
---------------- -----------------
<S> <C> <C>
AUSTRALIA COMMON STOCKS-3.29%
Australia & New Zealand Banking Group 843,442 $ 5,899,000
Brambles Industries, Limited 180,312 3,475,000
CSR, Limited 680,000 2,368,000
Foster's Brewing Group, Limited 1,027,800 1,956,000
GIO Australia Holdings, Limited 486,509 1,248,000
Goodman Fielder, Limited 1,150,000 1,767,000
News Corporation, Limited 210,000 1,008,000
News Corporation Preferred Rights 345,000 1,534,000
Pioneer International, Limited 1,024,615 2,716,000
QBE Insurance Group, Limited 536,496 2,515,000
RGC, Limited 275,000 562,000
------------
Total Australia Common Stocks 25,048,000
------------
AUSTRIA-1.17%
PREFERRED STOCKS-0.27%
Bank Austria AG 44,000 2,013,000
------------
Total Austria Preferred Stocks 2,013,000
------------
COMMON STOCKS-0.90%
Boehler-Uddeholm AG 50,185 3,605,000
Evn Energie-Versorgung Niederroesterreich AG 3,960 461,000
Mayr-Meinhof Karton AG 16,000 853,000
VA Technologie AG 11,000 1,956,000
------------
Total Austria Common Stocks 6,875,000
------------
Total Austria 8,888,000
------------
BELGIUM COMMON STOCKS-0.47%
Electrable SA 4,400 988,000
GIB Holdings, Limited NPV 22,000 1,115,000
Solvay Et Cie, NPV 25,000 1,507,000
------------
Total Belgium Common Stocks 3,610,000
------------
CANADA COMMON STOCKS-2.43%
Anderson Exploration, Limited 115,000 1,265,000
Bank of Nova Scotia 67,839 2,992,000
Canadian Imperial Bank of Commerce 120,000 3,509,000
IMASCO, Limited 119,000 3,784,000
Noranda, Incorporated 133,620 2,352,000
Oshawa Group, Limited 66,000 1,138,000
Potash Corporation of Saskatchewan 6,520 532,000
Telus Corporation 146,850 2,944,000
------------
Total Canada Common Stocks 18,516,000
------------
DENMARK COMMON STOCKS-0.96%
BG Bank 20,750 1,335,000
Den Danske Bank 13,400 1,514,000
Nova Nordisk AS, "B" 6,850 742,000
Teledanmark AS, "B" 16,700 981,000
Unidanmark AS, "A" 40,800 2,759,000
------------
Total Denmark Common Stocks 7,331,000
------------
FINLAND COMMON STOCKS-2.73%
Enso-Gutzeit OY, "R" 212,000 1,990,000
Huhtamaki Group I Free 27,500 1,134,000
Merita Bank, Limited 785,000 3,844,000
Metra OY, "B" 3,247,000
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PROTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------------ -----------
<S> <C> <C>
Metsa-Serla OY, "B" 100,000 881,000
Nokia OY, "A" 43,500 3,805,000
Rauma OY 50,878 955,000
UPM-Kymmene OY 221,030 4,923,000
-----------
Total Finland Common Stocks 20,779,000
-----------
FRANCE COMMON STOCKS - 8.60%
Adecco SA 2,820 917,000
Alcatel Alsthom CG 53,000 6,409,000
Axa SA 35,542 2,439,000
Banque Nationale de Paris 68,190 3,021,000
Bertrande Faure 39,500 2,388,000
Bongrain SA 2,370 873,000
Elf Aquitaine SA 78,300 9,713,000
France Telecom SA 29,449 1,117,000
Groupe Danone 19,200 2,942,000
La Farge-Coppee SA 97,218 6,087,000
Pechiney SA 41,800 1,723,000
Pernod-Ricard 78,934 3,666,000
Peugot SA 12,800 1,452,000
Rhone-Poulenc, "A" 50,000 2,185,000
SA Des Galeries Lafayette 162 76,000
Saint Gobain 13,148 1,891,000
Schneider SA 37,500 2,007,000
Scor SA 31,500 1,466,000
Seita 109,712 3,507,000
Societe Generale 23,339 3,203,000
Total Petroleum Company, "B" 48,200 5,359,000
Usinor Sacilor 186,702 3,098,000
Valeo SA 13 1,000
-----------
Total France Common Stocks 65,540,000
-----------
GERMANY - 4.64%
PREFERRED STOCKS - 0.81%
Dyckerhoff AG 7,614 2,345,000
Herlitz AG 11,947 768,000
Volkswagen AG 6,700 3,087,000
-----------
Total Germany Preferrred Stocks 6,200,000
-----------
COMMON STOCKS - 3.83%
BASF AG 72,600 2,468,000
BAYER AG 188,525 6,791,000
Commerzbank AG 160,550 5,504,000
Deutsche Bank AG 36,000 2,382,000
Hoechst AG 44,000 1,694,000
Karstadt AG 3,100 1,077,000
Muenchener Rueckversicherungs AG 3,000 627,000
Varta AG (non-inocme producing) 1,520 236,000
Veba AG 87,300 4,920,000
Viag AG 5,940 2,778,000
Volkswagen AG 1,150 684,000
-----------
Total Germany Common Stocks 29,161,000
-----------
Total Germany 35,361,000
-----------
HONG KONG COMMON STOCKS - 3.13%
Amoy Properties 20,500 18,000
Asia Satelite Telecommunications Holdings, Limited 275,000 662,000
Cheung Kong Holdings, Limited 235,000 1,634,000
China Light and Power Company 818,000 4,307,000
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
--------------------- ---------------------
<S> <C> <C>
Dickson Concepts (International), Limited 643,000 1,385,000
Hang Lung Development Company, Limited 1,268,000 1,747,000
Hong Kong Aircraft Engineering Company, Limited 7,200 19,000
Hong Kong Electric Holdings 368,400 1,249,000
Hong Kong Telecommunications, Limited 1,024,400 1,961,000
HSBC Holdings, Limited 114,500 2,592,000
Hutchinson Whampoa, Limited 200,000 1,384,000
Hysan Development Company, Limited 32,000 67,000
National Mutual of Asia, Limited 1,700,000 1,540,000
New Asia Realty and Trust Company, Limited 135,000 321,000
New World Development Company, Limited 656,000 2,308,000
Peregrine Investments Holdings, Limited 605,000 595,000
Peregrine Investments Holdings, Limited Warrants 55,000 2,000
Swire Pacific, Limited, "A" 383,500 2,049,000
---------------------
Total Hong Kong Common Stocks 23,840,000
---------------------
IRELAND COMMON STOCKS - 0.47%
Jefferson Smurfit 1,199,242 3,554,000
---------------------
Total Ireland Common Stocks 3,554,000
---------------------
ITALY - 3.31%
PREFERRED STOCKS - 0.15%
Concessioni E Contruzioni Autostrade 525,000 1,165,000
---------------------
Total Italy Preferred Stocks 1,165,000
---------------------
COMMON STOCKS - 3.16%
Burgo (Cartiere) SPA 229,020 1,371,000
Danieli Group Risp 473,960 1,852,000
Eni SPA 778,000 4,382,000
Fiat SPA 880,000 2,804,000
Instituto Nazionale Delle Assicurazioni 1,300,000 2,096,000
Mediaset 336,900 1,531,000
Merloni Elettrodomestici SPA 185,500 697,000
STET Telecom Italia Non Convertible 550,000 3,453,000
STET Telecom Italia Risp 1,452,209 5,877,000
---------------------
Total Italy Common Stocks 24,063,000
---------------------
Total Italy 25,228,000
---------------------
JAPAN COMMON STOCKS - 10.98%
Aisin Seiki Company, Limited 151,000 1,720,000
Aoyama Trading Company 42,300 1,136,000
Canon, Incorporated 90,000 2,185,000
Chudenko Corporation 33,000 804,000
Daibiru Corporation 168,000 1,802,000
Daicel Chemical 271,000 744,000
Fuji Photo Film Company 222,000 8,048,000
Hitachi Koki Company, Limited 53,000 257,000
Hitachi, Limited 324,000 2,492,000
Japan Tobacco 388 3,184,000
KAO Corporation 296,000 4,135,000
Kioto Manufacturing Company, Limited 375,000 2,245,000
Matsushita Electric Industrial Company 264,000 4,434,000
MOS Food Services 97,000 1,298,000
NKK Corporation 711,000 987,000
NEC Corporation 79,000 867,000
Nichicon Corporation 234,000 2,899,000
Nichido Fire & Marine Insurance 393,000 2,539,000
Nintendo Company, Limited 35,200 3,044,000
Nissan Motor Company 336,000 1,791,000
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
--------------------- ---------------------
<S> <C> <C>
Promise Company, Limited 77,300 4,525,000
Ryosan Company 12,000 232,000
Sekisiu Chemical Company, Limited 538,000 4,236,000
Shionogi & Company 168,000 1,021,000
Sony Corporation 97,800 8,124,000
Sumitomo Marine & Fire Insurance 442,000 2,947,000
Sumitomo Rubber Industries 86,000 488,000
Suzuki Motor Corporation, Limited 193,000 2,054,000
TDK Corporation 30,000 2,489,000
Toyo Seikan Kaisha 198,000 3,111,000
Yamanouchi Pharmaceutical 110,000 2,707,000
Yamato Kogyo Company, Limited 110,000 869,000
Yodogawa Steel Works 499,000 2,660,000
Yoshinoya D & C Company, Limited 39 412,000
Yoshitomi Pharmaceutical 185,000 1,181,000
---------------------
Total Japan Common Stocks 83,667,000
---------------------
MALAYSIA COMMON STOCKS - 0.72%
Arab Malaysian Finance 780,000 407,000
Bolton Properties 909,000 377,000
Genting BHD 623,700 1,750,000
Golden Hope Plantations BHD 968,000 1,260,000
Hicom Holdings BHD 506,300 428,000
Kedah Cement Holdings BHD 729,000 459,000
Malaysian International Shipping Corporation BHD 459,666 768,000
---------------------
Total Malaysia Common Stocks 5,449,000
---------------------
MEXICO COMMON STOCKS - 0.19%
Alta, SA 121,000 884,000
Grupo Mexico SA 145,000 560,000
---------------------
Total Mexico Common Stocks 1,444,000
---------------------
NETHERLANDS COMMON STOCKS - 6.34%
ABN AMRO Holdings NV 162,700 3,278,000
Aegon NV 34,000 2,680,000
Akzo Nobel NV 63,150 11,132,000
Fortis Amev NV 51,654 2,031,000
Hollandsche Beton Groep NV 158,040 3,168,000
Internationale Nederlanden Groep NV 202,045 8,485,000
Koninklijke Bijenkort Beheer NV 17,400 1,098,000
Koninklijke KNP BT 54,100 1,232,000
Phillips Electronics 110,600 8,662,000
Royal PTT Nederland NV 115,410 4,412,000
Unilever NV 40,000 2,127,000
---------------------
Total Netherlands Common Stocks 48,305,000
---------------------
NEW ZEALAND - 0.93%
FOREIGN BONDS - 0.01%
Brierley Investments, Limited,
Subordinated Convertible, 9.00%, Due 6/30/1998 63 43,000
---------------------
Total New Zealand Foreign Bonds 43,000
---------------------
COMMON STOCKS - 0.92%
Brierley Investments, Limited 1,600,000 1,238,000
Carter Holt Harvey, Limited 220,000 384,000
Fisher & Paykel, Limited 230,000 732,000
Fletcher Challenge Building 775,250 2,345,000
Fletcher Challenge Forest 8,284 8,000
Fletcher Challenge Paper 365,000 601,000
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
--------------- ---------------
<S> <C> <C>
Lion Nathan, Limited 693,000 1,677,000
---------------
Total New Zealand Common Stocks 6,985,000
---------------
Total New Zealand 7,028,000
---------------
NORWAY COMMON STOCKS - 2.21%
Den Norsk Bank, Series A 387,600 1,755,000
Kvaerner Industries AS 49,789 2,564,000
Norsk Hydro AS 40,000 2,203,000
Nycomed AS, Series B 293,225 7,288,000
Saga Petroleum, Series B Free 100,000 1,771,000
Unitor AS 80,000 1,268,000
---------------
Total Norway Common Stock 16,849,000
---------------
SINGAPORE COMMON STOCKS - 0.71%
Fraser & Neave, Limited 230,000 1,155,000
Hong Kong Land 673,847 1,536,000
Inchcape Berhad 325,000 1,025,000
Sembawang Corporation 295,000 908,000
Singapore Finance, Limited 387,000 362,000
Van Der Horst 440,000 386,000
---------------
Total Singapore Common Stock 5,372,000
---------------
SPAIN COMMON STOCKS - 2.97%
Banco Popular Espanol 28,000 1,655,000
Banco Santander SA 112,730 3,160,000
Iberdrola SA 410,357 4,912,000
Repsol SA (BR) 127,420 5,347,000
Telefonica de Espana 277,400 7,576,000
---------------
Total Spain Common Stocks 22,650,000
---------------
SOUTH KOREA COMMON STOCKS - 0.07%
Korea Electric Power Corporation 37,500 532,000
---------------
Total South Korea Common Stocks 532,000
---------------
SWEDEN COMMON STOCKS - 3.86%
Assidoman AB 56,000 1,571,000
Astra AB, "B" Free 55,200 856,000
Electrolux AB, "B" 92,085 7,628,000
Esselte AB, Class "A" 2,000 42,000
Esselte AB, Class "B" 17,000 370,000
Granges AB 22,050 361,000
Marieberg Tidnings 77,267 2,065,000
Nordbanken AS 35,900 1,127,000
Pharmacia & Upjohn, Incorporated 59,100 1,883,000
Skandia Forsakrings AB 16,600 776,000
SKF AB, "B" Free 112,100 2,606,000
Sparbanken Sverige AB, "A" 144,900 3,291,000
Stora Kopparsbergs Bergslags, "A" 82,100 1,135,000
Stora Kopparsbergs Bergslags, "B" 25,800 355,000
Svedala Industries, "A" Free 90,000 1,768,000
Svenska Cellulosa, "B" Free 52,600 1,181,000
Volvo AB 90,000 2,357,000
---------------
Total Sweden Common Stock 29,372,000
---------------
SWITZERLAND COMMON STOCKS - 5.29%
ABB AG 1,690 2,209,000
Forbo Holding AG 3,280 1,292,000
Holderbank Financial Glarus-B 2,810 2,268,000
Nestle SA 8,021 11,333,000
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Shares Value
-------------------- -----------------------
<S> <C> <C>
Novartis AG 2,879 4,521,000
Schindler Holding AG (Reg) 140 170,000
Schindler Holding AG (BR) 1,400 1,549,000
Sig Schweitz Industries AG 2,200 5,940,000
Societe Generale de Surveillance 240 464,000
Sulzer AG 4,279 3,138,000
Swiss Reinsurance Company 3,876 5,854,000
Zurich Versicherungs 3,800 1,573,000
-------------------------
Total Switzerland Common Stock 40,311,000
-------------------------
UNITED KINGDOM COMMON STOCKS - 20.39%
Aggreko, PLC 502,977 1,316,000
Albert Fisher Group, PLC 262,500 164,000
Allied Domecq, PLC 510,710 4,132,000
Associated British Foods Group, PLC 46,600 371,000
Bank of Scotland 255,380 2,123,000
Barclays, PLC 27,900 705,000
BAT Industries, PLC 827,564 7,265,000
BG, PLC 1,615,700 7,065,000
British Energy, PLC 300,000 1,954,000
British Telecommunications 640,900 4,855,000
BTR, PLC 1,978,800 6,744,000
Bunzi, PLC 121,100 504,000
Burmah Castro, PLC 221,050 3,766,000
Burton Group, PLC 335,000 712,000
Coats Viyella, PLC 1,649,500 3,015,000
Commercial Union, PLC 487,600 6,342,000
Cookson Group, PLC 613,900 2,460,000
Cortaulds, PLC 362,000 1,678,000
Cortaulds Textiles, PLC 150,000 864,000
Danka Business Systems, PLC 64,700 610,000
De La Rue, PLC 197,800 1,423,000
Energy Group, PLC 124,000 1,261,000
English China Claylord Group 348,410 1,519,000
Grand Metropolitan, PLC 417,350 3,755,000
Great Universal Stores 239,500 2,849,000
Hanson, PLC 724,600 3,724,000
Harrisons & Crosfield, PLC 1,391,800 2,952,000
Hillsdown Holdings, PLC 1,140,100 3,231,000
Hyder, PLC 289,000 4,359,000
Imperial Chemical Industries, PLC 37,000 552,000
Imperial Tobacco Group 195,100 1,199,000
Inchcape, PLC 150,000 546,000
Kwik Save Group, PLC 264,000 1,370,000
Lex Service 350,000 2,465,000
London Pacific Group, Limited 74,000 259,000
Lucasvarity, PLC 410,000 1,403,000
Medeva, PLC 255,000 879,000
National Grid Group, PLC 300,000 1,394,000
National Power, PLC 50,000 415,000
National Westminster Bank, PLC 485,419 7,017,000
Northern Foods, PLC 500,000 1,937,000
Peninsular & Orient Steam Company 269,158 3,117,000
Pilkington, PLC 363 1,000
PowerGen, PLC 310,400 3,443,000
Premier Farnell, PLC 225,800 1,757,000
Racal Electronics, PLC 320,404 1,187,000
Reckitt & Colman, PLC 394,754 6,034,000
Redland, PLC 1,228,854 7,006,000
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
-------------------- --------------------
<S> <C> <C>
Rolls Royce, PLC 305,273 1,074,000
Royal & Sun Alliance Insurance Group 342,325 3,298,000
Safeway, PLC 309,677 2,023,000
Salvesen (Christian), PLC 502,977 843,000
Schell Transportation & Trading Company, PLC 135,000 956,000
Southern Electric, PLC 175,900 1,348,000
Storehouse 762,900 2,814,000
Tate & Lyle, PLC 549,000 4,184,000
Tesco, PLC 343,819 2,720,000
Thames Water Group, PLC 189,800 2,877,000
Unilever, PLC 522,900 3,884,000
WPP Group, PLC 1,005,500 4,603,000
Wace Group, PLC 666,200 346,000
Williams, PLC 111,466 659,000
--------------------
Total United Kingdom 155,318,000
--------------------
UNITED STATES - 15.80%
FOREIGN SECURITIES DENOMINATED IN U.S. DOLLARS - 2.48%
Cho Hung Bank GDR 170,000 629,000
Dairy Farm International 908,000 717,000
GP Batteries International, Limited 137,000 401,000
Kookmin Band GDR 50,000 310,000
Jardine Matheson Holding, Limited 871,000 5,574,000
Jardine Strategic 1,606,000 5,139,000
New Holland NV 79,700 2,266,000
Nova Corporation 150,000 1,350,000
Stolt-Nielsen SA, "B" 38,000 1,007,000
Telmex ADR 35,000 1,514,000
--------------------
Total Foreign Securities Denominated in U.S. Dollars 18,907,000
--------------------
UNITED STATES GOVERNMENT AND AGENCY OBLIGATIONS (Note A) - 5.83%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 3.09%
Discount Note, 5.189%, Due 11/7/1997 2,895 2,892,000
Discount Note, 5.192%, Due 11/31/1997 1,505 1,502,000
Discount Note, 5.198%, Due 11/21/1997 1,710 1,705,000
Discount Note, 5,198%, Due 11/28/1997 1,400 1,394,000
Discount Note, 5.205%, Due 12/1/1997 6,600 6,569,000
Discount Note, 5.206%, Due 12/3/1997 4,225 4,204,000
Discount Note, 5.208%, Due 12/5/1997 5,290 5,262,000
--------------------
Total Federal Home Loan Mortgage Corporation 23,528,000
--------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 0.99%
5.196%, Due 11/17/1997 855 853,000
5.19%, Due 1/18/1998 2,000 1,898,000
5.234%, Due 1/15/1998 3,769 3,725,000
5.25%, Due 3/25/1998 1,000 999,000
--------------------
Total Federal National Mortgage Association 7,575,000
--------------------
U.S. TREASURY BILLS - 1.75%
4.805%, Due 12/26/1997 255 253,000
4.88%, Due 1/2/1998 6,290 6,236,000
4.925%, Due 1/8/1998 2,468 2,445,000
4,96%, Due 1/15/1998 116 115,000
4.98%, Due 1/22/1998 2,175 2,150,000
5.05%, Due 1/29/1998 2,115 2,088,000
--------------------
Total U.S. Treasury Bills 13,287,000
--------------------
Total United States Government and Agency Obligations 44,390,000
--------------------
</TABLE>
<PAGE>
AMS INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
SCHEDULE OF INVESTMENTS
October 31, 1997
================================================================================
<TABLE>
<CAPTION>
Shares Value
-------------------- --------------------
<S> <C> <C>
SHORT TERM INVESTMENTS - 7.49%
AMR Investments Strategic Cash Business Trust 47,053 47,053,000
E I Dupont de Nemours, CP, Due 11/7/1997 10,000 9,989,000
--------------------
Total Short Term Investments 57,042,000
--------------------
Total United States 120,339,000
--------------------
TOTAL INVESTMENTS - 101.66% (Cost $664,005,000) 774,331,000
--------------------
LIABILITIES, NET OF OTHER ASSETS - (1.66%) (12,658,000)
--------------------
TOTAL NET ASSETS - 100% $ 761,673,000
====================
</TABLE>
Based on the cost of investments of $664,338,000 for federal income tax purposes
at October 31, 1997, the aggregate gross unrealized appreciation was
$142,497,000, the aggregate gross unrealized depreciation was $32,504,000, and
the net unrealized appreciation of investments was $109,993,000.
(A) Rates associated with United States Government Bonds represent yield to
maturity from time of purchase.
(B) Rates associated with short-term investments represent yield to maturity or
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, United States)
OY - Company (Finland)
PLC - Public Limited Corporation (United Kingdom)
SA - Company (Belgium, France, Mexico, Spain, Switzerland, United States)
SPA - Company (Italy)
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Industry Diversification
October 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Percent of
Net Assets
------------
<S> <C>
Basic Industry.......................................................... 29.56%
Capital Goods........................................................... 10.53%
Consumer Goods & Services............................................... 21.79%
Energy.................................................................. 5.65%
Financing, Insurance & Real Estate...................................... 16.22%
Transportation.......................................................... 0.51%
Utilities............................................................... 4.00%
Short-Term Investments.................................................. 9.20%
Other Assets/Liabilities................................................ (2.54%)
---------
Net Assets....................................... 100.00%
=========
</TABLE>
