<PAGE>
INTRUST FUNDS TRUST
ANNUAL REPORT
FOR THE YEAR ENDED OCTOBER 31, 1998
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
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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 of
INTRUST Funds Trust:
We have audited the accompanying statements of assets and liabilities of the
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 (the Trust), including the schedules of portfolio investments, as of
October 31, 1998, 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 INTRUST Funds 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 financial highlights for each of the years in the three year period
ended August 31, 1996, were audited by other auditors whose report thereon dated
October 11, 1996 expressed an unqualified opinion on the 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, 1998, by examination, correspondence with brokers 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 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 each
of the aforementioned funds comprising the INTRUST Funds Trust as of October 31,
1998, the results of their operations, the changes in their net assets and the
financial highlights for each of the periods indicated herein, in conformity
with generally accepted accounting principles.
KPMG Peat Marwick LLP
Columbus, Ohio
December 22, 1998
<PAGE>
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INTRUST Family of Mutual Funds - October 31, 1998
TO OUR SHAREHOLDERS:
We are pleased to present this annual report for the 12 months ended
October 31, 1998, a period that rewarded many investors who practiced that most
sensible of virtues: patience.
Never in recent years has such relative good fortune felt so disquieting.
It's true that both stocks and bonds, especially stocks, subjected investors to
uncomfortable episodes of often-fierce volatility.
Beginning the fiscal year on the heels of a one-day, 554-point loss in
October 1997, the stock market reversed course and steadily climbed upward,
reaching a high of 9329 this past July. But a disturbing and potent brew of
excessively high valuations, serious concerns about corporate earnings and
continuing fallout from Asia conspired to push stocks into a midsummer swoon;
the Dow Jones Industrial Average dropped more than 15% in August alone. Many
individual stocks were down 40% or more from their previous highs.
Somewhat surprisingly, stocks recovered powerfully in October a month
often associated with calamitous declines. The Dow posted its best monthly
percentage gain in more than 11 years, the S&P 500/1/ climbed eight percent and
the technology-rich Nasdaq also rose, as tech issues began to look more
attractive. Even the Russell 2000/2/ index of smaller stocks, which had lagged
its larger cousins during previous advances, surged higher-posting a gain in 13
of the final 16 trading days of the month.
And as we write this report in mid-November, the Dow has resumed its
flirtatious dance with the 9000 mark, a level thought to be out of reach just a
few short years ago.
As for bonds, they offered investors not only a relatively safe haven from
the equity markets, but significant capital gains, as well. When fears over the
"Asian flu" were at their highest, a worldwide stampede into high-quality, U.S.
Treasuries propelled bond prices higher. Once again, the markets taught us that
spreading assets across a balanced portfolio, diversified among stocks and
bonds, is often the best plan for many investors.
So much for the past. With uncertainty the dominant theme in many markets
throughout the world, where does the prudent investor find value? The answer:
just about everywhere, but selectively.
The crisis in Asia is far from over, but positive steps have been taken in
Japan and elsewhere. The Russian experiment with capitalism has not yet
succeeded, tensions are flaring in the Middle East and Europe must face the
challenge of implementing a single monetary union.
- ----------------------
/1/ The Standard and Poor's 500 Index is unmanaged and is generally
representative of large company stock performance.
/2/ The Russell 2000 Index is unmanaged and is generally representative of small
company stock performance.
<PAGE>
But with the decline in many foreign markets, a number of individual companies
have emerged as value plays. Investors with long-term, growth outlooks may want
to seriously consider allocating a modest portion of their portfolio to a fund
specializing in foreign stocks, such as the INTRUST Funds Trust International
Multi-Manager Stock Fund.
Here at home, corporate earnings prospects especially for companies that
have heavy exposure abroad remain a concern. However, other factors point to a
somewhat more benign scenario in the months ahead. Recent reports indicate that
the economy remains fairly healthy, though less robust than a year ago.
Consumers are continuing to spend and interest rates are floating at
historically modest levels. The level of worker productivity a key measure of
the goods and services produced by workers actually rose in the third calendar
quarter, suggesting that companies may be able to absorb higher wage and benefit
costs, without raising prices and triggering inflation.
Evidently, the news is not all bad, contrary to what some pundits would
have us believe. At the same time, many stocks are still priced at historically
rich levels, and it's not difficult to envision a scenario in which a little bad
news is enough to send the markets tumbling again.
That warning aside, we continue to believe that as long-term investors, our
best course of action is not to try to "time" market fluctuations, but to follow
our carefully constructed, time-proven strategies for our equity and fixed-
income funds alike. Our basic philosophy bears repeating: While it is virtually
impossible to predict how markets will perform in the short term, patient
investors can benefit from making an appropriate investment plan, and sticking
to it. Despite some difficult moments in the year just past, we believe this
strategy once more proved its worth.
As always, we thank you for your past support and we look forward to
serving all your investment needs in the future.
Sincerely,
John S. Maurer, Jr. David Bunstine
Senior Vice President & President
Chief Investment Officer INTRUST Funds Trust
INTRUST Bank, N.A.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. INTERNATIONAL INVESTING
INVOLVES INCREASED RISK AND VOLATILTY.
This material is authorized for distribution only when preceded or accompanied
by a prospectus. INTRUST Bank provides investment advisory and other services
to the Fund and receives a fee for those services. 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.
<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
seven 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. We seek to provide investors with 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./1/
STRATEGY. We invest in high-quality, short-term obligations such as
certificates of deposit, commercial paper issued by corporations, bankers'
acceptances and medium-term notes.
During the year, we made a conscious effort to take preemptive action in
anticipation that the Federal Reserve would lower short-term interests rate
which they did. To that end, we moved away from variable-rate securities and
favored "bullet" securities, those with fixed maturities.
We also kept our average maturity somewhat long. By keeping our maturity
on the long side, we were able to lock in relatively higher yields, for longer
periods of time, for the type of fixed-maturity securities we favored.
PERFORMANCE. As of October 31, 1998, the Fund's 7-Day SEC yield was
4.81%./2/ The average maturity of the Fund's holdings was 70 days./3/
We don't like to make big bets on which way interest rates are going to go.
We don't take big risks. We try to be consistent investors, delivering
relatively steady money-market returns over time. Having said that, we feel that
our current strategy of locking in longer-term maturities will serve our
shareholders well in the months to come.
/1/ An investment in the Fund is not insured or guaranteed by the FDIC or any
other government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Fund.
/2/ Past performance is no indication of future performance. The yield set forth
may reflect the waiver of a portion of the Fund's fees. In such instances, and
without waiver of fees, the yield would have been lower.
/3/ The composition of the Fund's holdings is subject to change.
<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 10 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 investors with as high a level of income as
is consistent with liquidity and safety of principal by investing primarily in
investment-grade, short-term obligations.
STRATEGY. We do not speculate on the direction of interest rates. Instead,
we focus on fundamental security analysis to find the most attractively priced,
short-term securities available, and we invest across all sectors of the fixed-
income market. Our investment process employs a rigorous cash flow valuation
discipline and we pay strict attention to the timely execution of trades.
As of October 31, 1998, the portfolio was invested in the following
sectors: corporates (24.1% of portfolio holdings), asset-backed securities
(18.0%), mortgage-backed securities (16.9%), U.S. Treasuries (12.6%), taxable
municipals (12.6%), agencies (10.0%), mortgage pass-through securities (3.5%),
and cash equivalents (2.3%). These securities maintained an average credit
quality of Aa1/AA+, with an average maturity of 2.66 years./1/
PERFORMANCE. For the 12 months ended October 31, 1998, the Fund produced a
total return of 6.96%./2/ In comparison, the Lehman Brothers 1-3 Year Government
Bond Index (the portfolio's "benchmark") had a total return of 7.65%./3/
We lagged behind the benchmark primarily because this index held a much
higher proportion of U.S. Treasury bonds than the Fund; during the period a
"flight" to quality among fixed income investors pushed the value of U.S.
Treasury bonds higher than corporate bonds.
During the year, we reduced our exposure to variable-rate mortgages and
increased our holdings in the fixed-rate corporate sector. With interest rates
declining, we wanted to avoid mortgage pre-payments as much as possible. (When
rates fall, mortgages often are "pre-paid," forcing the mortgage holder to
reinvest the funds at a lower rate.)
In an environment of declining rates, we felt that noncallable corporate
securities offered the potential for higher yields--current income is among our
key objectives--while maintaining the portfolio's high credit quality.
<PAGE>
SHORT-TERM BOND FUND
AVERAGE ANNUAL TOTAL RETURN(2)
[Total Returns box and Value of a $10,000 Investment chart, through 10/31/98,
with disclosure]
PLOT POINTS FOR INTRUST ANNUAL 10/31/98 GRAPHS
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01/21/97 04/30/97 10/31/97 04/30/98 10/31/98
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SHORT-TERM BOND FUND 10,000 10,102 10,513 10,802 11,248
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Lehman Brothers 1-3 Year Government Index /3/ 10,000 10,125 10,546 10,819 11,322
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Average Annual Total Return as of 10/31/98
Short-Term Bond Fund
Inception Date 01/21/97
Since Inception 6.85%
1 Year 6.96%
1 The composition of the Fund's holdings is subject to change. Average maturity
is based on final maturity; however, actual maturity may differ due to
prepayment experience.
2 For the period(s) ended October 31, 1998. 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.
3 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 10 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 investors with as high a level of current
income as is consistent with managing for total return by investing in fixed
income securities.
STRATEGY. We do not attempt to "time" the direction of interest rates.
Instead, we focus on fundamental security analysis to find the most attractively
priced securities available, and we invest across all sectors of the fixed-
income market. Our investment process employs a rigorous cash flow valuation
discipline and we pay strict attention to the timely execution of trades.
As of October 31, 1998, the portfolio was invested in the following
sectors: corporates (41.8% of portfolio holdings), mortgage-backed securities
(21.4%), asset-backed securities (12.5%), agencies (7.5%), mortgage pass-through
securities (6.3%), U.S. Treasuries (5.3%), taxable municipals (5.0%) and cash
equivalents (0.2%). These securities maintained an average credit quality of
AA2/AA, with an average maturity of 4.8 years./1/
PERFORMANCE. For the 12 months ended October 31, 1998, the Fund produced a
total return of 8.16%./2/ In comparison, the Lehman Brothers Intermediate
Government/ Corporate Index (the portfolio's "benchmark") had a total return of
9.10%./3/
We lagged behind our benchmark primarily because this index held a higher
percentage of U.S. Treasury securities than the Fund; during the period a
"flight to quality" among fixed-income investors pushed the value of U.S.
Treasury bonds higher than corporate bonds.
As government bonds gained in value, their yields fell sharply (prices and
yields move in opposite directions). Consequently, the yield spreads between
government and corporate issues of like maturities widened dramatically. We
remained focused on the corporate sector to take advantage of the additional
yield premium available from many corporate bonds.
At the same time, the Fund's total return received a boost from the overall
drop in interest rates.
<PAGE>
INTERMEDIATE BOND FUND
AVERAGE ANNUAL TOTAL RETURN(2)
[Total Returns box and Value of a $10,000 Investment chart, through 10/31/98,
with disclosure]
PLOT POINTS FOR INTRUST ANNUAL 10/31/98 GRAPHS
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01/21/97 04/30/97 10/31/97 04/30/98 10/31/98
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INTERMEDIATE BOND FUND 10,000 10,061 10,677 10,978 11,552
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Lehman Brothers Intermediate
Government/Corporate Index /3/ 10,000 10,108 10,681 10,966 11,604
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</TABLE>
Average Annual Total Return as of 10/31/98
Intermediate Bond Fund
Inception Date 01/21/97
Since Inception 8.45%
1 Year 8.16%
/1/ The composition of the Fund's holdings is subject to change. Average
maturity is based on final maturity; however, actual maturity may differ due to
prepayment experience.
/2/ For the period(s) ended October 31, 1998. 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 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 .
/3/ 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 five portfolio
managers from ARK Asset Management, subadvisor to the Fund. The team is headed
by Charles Hetzel, who has 33 years of experience as an investment advisor. 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.
OBJECTIVE. We seek to provide investors with long-term capital
appreciation.
STRATEGY. Our approach is driven by a careful analysis and prudent
selection of individual stocks. We invest in large-capitalization issues that we
believe offer good value that is, stocks we believe are selling at reasonable
prices relative to their anticipated future earnings. We expect that, over time,
the stocks in our portfolio will grow earnings at rates matching or exceeding
the earnings growth rates of the market in general. We also adhere to a strict
sell discipline, selling a stock when its price has risen to a price target or
fallen to a review point.
We are not market-timers, and we believe in remaining as fully invested as
possible. As of October 31, 1998, 97.4% of the portfolio holdings were invested
in stocks, with 2.6% in cash or cash equivalents./1/
PERFORMANCE. For the 12 months ended October 31, 1998, the Fund produced a
total return of 12.49%./2/ In comparison, the S&P 500 Index (the portfolio
"benchmark") had a total return of 22.01%./3/
During the last 12 months, we continued to see a market driven by a small
handful of the largest stocks, issues that traded at very high valuations which
exceeded the valuation parameters to which we adhere. Therefore, the Fund did
not fully participate in the market's advance.
Nonetheless, as reflected in the performance numbers above, we made money
for those shareholders whose investments remained in the Fund for the entire 12-
month period. We also continued our practice of striving to protect
shareholders' assets in a volatile environment.
Toward the end of the period, it appeared that the initial stage of new
market leadership was emerging. During the market's summer decline, and the
subsequent rally from the market's bottom, a broader group of stocks began to
lead. This group included the large-cap value stocks we favor.
Looking forward, we believe the exceedingly robust returns of the last few
years are behind us. Our equity outlook calls for a more challenging
environment, one in which a value-oriented approach such as ours has potential
to produce good relative results.
10
<PAGE>
STOCK FUND
AVERAGE ANNUAL TOTAL RETURN(2)
[Total Returns box and Value of a $10,000 Investment chart, through 10/31/98,
with disclosure]
PLOT POINTS FOR INTRUST ANNUAL 10/31/98 GRAPHS
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01/21/97 04/30/97 10/31/97 04/30/98 10/31/98
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STOCK FUND 10,000 9,950 11,310 13,281 12,723
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S&P 500 Index /3/ 10,000 10,291 11,852 14,452 14,393
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</TABLE>
Average Annual Total Return as of 10/31/98
Stock Fund
Inception Date 01/21/97
Since Inception 14.53%
1 Year 12.49%
1 The composition of the Fund's holdings is subject to change.
2 For the period(s) ended October 31, 1998. 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.
3 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.
11
<PAGE>
INTRUST FUNDS TRUST INTERNATIONAL MULTI-MANAGER STOCK FUND/1/
The INTRUST Funds Trust International Multi-Manager Stock Fund seeks to achieve
its investment objective by investing all of its investable assets in the AMR
Investment Services International Equity Portfolio. This portfolio is managed by
AMR Investment Services, Inc., 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.
OBJECTIVE. We seek to provide investors with long-term capital appreciation
by investing in equity securities of issuers based outside of the United States.
The International Multi-Manager Stock Fund seeks to achieve its objective by
investing all of its investable assets in The International Equity Portfolio of
the AMR Investment Services Trust.
STRATEGY. All three portfolio subadvisors employ a value style of
investing, with 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; and Hotchkis and Wiley focuses
on earnings and dividend yields. The managers all perform fundamental analysis,
targeting stocks that have lower valuation ratios, and higher growth prospects,
than their respective markets' averages. In addition, analysts routinely visit
the companies in which they are interested, to gain firsthand knowledge of
companies' products, services and management.
As of October 31, 1998, the Fund's portfolio was invested as follows
(approximately): Europe (64.2% of portfolio holdings), Asia (15.1%),
Canada/Mexico (4.6%), Australia/New Zealand (4.1%), cash and other assets
(12.0%)./2/
PERFORMANCE. For the 12 months ended October 31, 1998, the Fund produced a
total return of 3.61%.3 In comparison, the Morgan Stanley Europe, Australia and
Far East (EAFE) Index (the portfolio's "benchmark") had a total return of
9.65%./4/
The Fund's underperformance relative to our benchmark was due to our
underweighting in Germany, which posted strong performance for the period, and
our overweighting in Hong Kong, which had a poor year. Another factor was our
value orientation; the Fund's subadvisors generally select value stocks. During
the last few months of the period, value stocks did not do as well as growth
stocks in many foreign markets.
Looking forward we have a favorable opinion of Europe. We anticipate that
the upcoming conversion to a single currency, the "euro," will result in more
efficient, competitive markets throughout Europe. This could enhance shareholder
value in the types of companies we favor. We are particularly optimistic about
investment opportunities in the United Kingdom. Although the U.K. will not be
involved in the initial conversion to the euro, we still see many value
opportunities in the U.K. At the same time, we expect to continue to be
underweighted in Japan.
<PAGE>
INTERNATIONAL MULTI-MANAGER STOCK FUND
AVERAGE ANNUAL TOTAL RETURN(3)
[Total Returns box and Value of a $10,000 Investment chart, through 10/31/98,
with disclosure]
PLOT POINTS FOR INTRUST ANNUAL 10/31/98 GRAPHS
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<CAPTION>
01/20/97 04/30/97 10/31/97 04/30/98 10/31/98
<S> <C> <C> <C> <C> <C>
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INTERNATIONAL MULTI-MANAGER STOCK FUND 10,000 10,120 10,970 12,550 11,366
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Morgan Stanley Europe, Australasia and Far East Index
(EAFE) /4/ 10,000 10,263 10,585 12,236 11,638
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</TABLE>
Average Annual Total Return as of 10/31/98
International Multi-Manager Stock Fund
Inception Date 01/20/97
Since Inception 7.47%
1 Year 3.61%
1 International investing involves increased risk and volatility.
2 The composition of the Fund's holdings is subject to change.
3 For the period(s) ended October 31, 1998. 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.
4 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/1/
The INTRUST Funds Trust Kansas Tax-Exempt Bond Fund is managed by Michael
Colgan, who has 14 years of 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. He is a member of the National
Federation of Municipal Analysts (Southern Society).
OBJECTIVES. We seek to preserve capital while producing current income that
is exempt from both federal and Kansas state income taxes./1/
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 7 and 12 years; we are permitted by prospectus to lower the average
maturity to less than seven years if we anticipate a volatile interest-rate
environment.
As of October 31, 1998, approximately 96.6% of the portfolio holdings were
comprised of Kansas bonds with 2.1% and 0.2% invested in debt obligations
issued in Puerto Rico and Guam, respectively, and 1.1% in cash and cash
equivalents. The securities within the Fund maintained an average credit quality
of AA, with an average maturity of 9.06 years./2/
During the year, we maintained the portfolio's average maturity within a
very narrow range, and toward the longer end of our normal limits. We did this
in response to the availability of bonds that fit our criteria, and to take
advantage of our expectation that interest rates would move lower which they
did.
PERFORMANCE. For the 12 months ended October 31, 1998, the Fund produced a
total return of 7.01%./3/ In comparison, the Lehman Brothers 7-Year General
Obligation Index (the Fund's "benchmark") had a total return of 7.44%.4
Considering that a significant portion of the Fund's return was tax-free to
residents of Kansas, we were especially pleased with the after-tax and
inflation-adjusted performance (total return minus the rate of inflation) we
provided to Kansas shareholders.
We feel that, while interest rates could move somewhat lower over the next
6 to 12 months, most of the downward move has already been achieved. Going
forward, we look for rates to remain generally steady with occasional, short-
term volatility.
- -----------------------------
/1/ The Standard and Poor's 500 Index is unmanaged and is generally
representative of large company stock performance.
<PAGE>
KANSAS TAX-EXEMPT BOND FUND
AVERAGE ANNUAL TOTAL RETURN(3)
[Total Returns box and Value of a $10,000 Investment chart, through 10/31/98,
with disclosure]
PLOT POINTS FOR INTRUST ANNUAL 10/31/98 GRAPHS
<TABLE>
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12/10/90 10/31/91 10/31/92 10/31/93 10/31/94 10/31/95 10/31/96 10/31/96 10/31/98
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------
KANSAS TAX-EXEMPT BOND FUND 10,000 10,671 11,497 12,879 12,687 14,052 14,691 15,723 16,824
--------------------------------------------------------------------------------------------------
Lehman Brothers 7-Year
General Obligation Index /4/ 10,000 10,896 11,764 13,162 12,896 14,534 15,224 16,380 17,599
--------------------------------------------------------------------------------------------------
</TABLE>
Average Annual Total Return as of 10/31/98
Kansas Tax-Exempt Bond Fund
Inception Date 12/10/90
Since Inception 6.82%
1 Year 7.01%
3 Year 6.18%
5 Year 5.49%
/1/ The Fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
/2/ The composition of the Fund's holdings is subject to change.
/3/ For the period(s) ended October 31, 1998. 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 (the "SEI Portfolio")
or 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 commencement of operations. The performance also
reflects reinvestment of all dividends and capital gains distributions.
/4/ The Lehman Brothers 7-Year General Obligations Index is an unmanaged index
generally representative of intermediate-term municipal bonds. The index does
not reflect the deductions of expenses associated with a mutual fund, such as
investment management and fund accounting fees.
<PAGE>
INTRUST FUNDS TRUST
Statements of Assets and Liabilities
October 31, 1998
<TABLE>
<CAPTION>
Money Short-Term Intermediate
Market Bond Bond
Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
Investments, at value (cost $50,618,097; $59,630,241;
$50,624,868, respectively) $ 50,618,097 $ 60,785,641 $ 52,581,205
Interest and dividends receivable 313,217 819,397 662,711
Receivable for investments sold --- 66,110 23,341
Unamortized organizational costs 73,701 19,535 18,048
Prepaid expenses and other assets 521 356 257
---------------- ---------------- --------------
Total Assets 51,005,536 61,691,039 53,285,562
---------------- ---------------- --------------
Liabilities:
Dividends payable 212,978 275,052 249,453
Accrued expenses and other payables:
Investment advisory fees 6,601 9,891 13,067
Administration fees 1,109 1,346 1,166
Shareholder servicing fees 3,928 4,201 3,609
Other payables and accrued expenses 34,936 29,618 25,452
---------------- ---------------- --------------
Total Liabilities 259,552 320,108 292,747
---------------- ---------------- --------------
Net Assets $ 50,745,984 $ 61,370,931 $ 52,992,815
================ ================ ==============
Net Assets consist of:
Capital $ 50,732,100 $ 60,246,753 $ 51,007,829
Accumulated undistributed net investment income 12,620 4,693 2,121
Accumulated undistributed net realized gains (losses) on investments 1,264 (35,915) 26,528
Net unrealized appreciation from investments --- 1,155,400 1,956,337
---------------- ---------------- --------------
Net Assets $ 50,745,984 $ 61,370,931 $ 52,992,815
================ ================ ==============
Outstanding units of Beneficial Interest (Shares): 50,744,364 6,017,201 5,082,254
================ ================ ==============
Net Asset Value:
Institutional Service Shares
Offering and redemption price per share $ 1.00 $ 10.20 $ 10.43
================ ================= ==============
</TABLE>
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
Statements of Assets and Liabilities
October 31, 1998
<TABLE>
<CAPTION>
International Kansas
Stock Multi-Manager Tax-Exempt
Fund Stock Fund Bond Fund
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
Investments, at value (cost $102,434,615; $0; $129,138,639, respectively) $ 99,916,579 $ --- $ 133,731,307
Investments in International Equity Portfolio, at value (cost $55,619,985) 55,537,238
Cash --- 1,300 ---
Interest and dividends receivable 117,751 --- 1,686,349
Receivable for investments sold 1,128,683 --- ---
Receivable for capital shares issued --- 895 ---
Receivable for expense reimbursements --- --- 72,438
Unamortized organizational costs 22,204 11,743 ---
Prepaid expenses and other assets 487 257 504
------------- ------------- --------------
Total Assets 101,185,704 55,551,433 135,490,598
------------- ------------- --------------
Liabilities:
Dividends payable --- --- 538,775
Payable for investments purchased 503,214 --- 1,962,260
Accrued expenses and other payables:
Investment advisory fees 104,551 15,417 ---
Administration fees 2,163 899 32,505
Shareholder servicing fees 6,488 3,524 ---
Other payables and accrued expenses 45,227 27,053 39,594
------------- ------------- --------------
Total Liabilities 661,643 46,893 2,573,134
------------- ------------- --------------
Net Assets $ 100,524,061 $ 55,504,540 $ 132,917,464
============= ============= ==============
Net Assets consist of:
Capital $ 88,486,737 $ 56,770,058 $ 127,726,970
Accumulated undistributed net investment income 491,998 679,009 2,267
Accumulated undistributed net realized gains (losses) on investments 14,063,362 (1,861,780) 595,559
Net unrealized appreciation (depreciation) from investments (2,518,036) (82,747) 4,592,668
------------- ------------- --------------
Net Assets $ 100,524,061 $ 55,504,540 $ 132,917,464
============= ============= ==============
Outstanding units of Beneficial Interest (Shares): 8,327,993 4,980,507 12,198,012
============= ============= ==============
Net Asset Value:
Institutional Service Shares
Offering and redemption price per share $ 12.07 $ 11.14 $ 10.90
============= ============= ==============
</TABLE>
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
Statements of Operations
For the year ended October 31, 1998
<TABLE>
<CAPTION>
Money Short-Term Intermediate
Market Bond Bond
Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest income $ 2,948,662 $ 3,579,237 $ 3,190,931
Dividend income --- 70,026 68,450
------------ ------------- -------------
Total Income 2,948,662 3,649,263 3,259,381
------------ ------------- -------------
Expenses:
Investment advisory fees 128,959 233,125 199,787
Administration fees 103,167 116,563 99,894
Fund accounting fees 30,352 39,973 38,652
Transfer agent fees 3,234 3,063 2,890
12b-1 fees 128,957 145,702 124,867
Shareholder servicing fees 44,756 47,217 40,498
Custodian fees 10,316 11,655 9,988
Legal and audit fees 30,929 42,652 51,030
Other 50,562 17,549 3,911
------------ ------------- -------------
Total expenses before waivers/ reimbursements 531,232 657,499 571,517
Less expenses waived/ reimbursed (183,400) (268,092) (179,808)
------------ ------------- -------------
Net expenses 347,832 389,407 391,709
------------ ------------- -------------
Net Investment Income 2,600,830 3,259,856 2,867,672
------------ ------------- -------------
Realized and Unrealized Gains (Losses) from Investments:
Net realized gains (losses) on investment transactions 1,264 5,686 141,708
Net change in unrealized appreciation (depreciation) of investments --- 696,063 942,254
------------ ------------- -------------
Net realized and unrealized gains (losses) on investments 1,264 701,749 1,083,962
============ ============= =============
Increase in Net Assets Resulting from Operations $ 2,602,094 $ 3,961,605 $ 3,951,634
============ ============= =============
</TABLE>
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
Statements of Operations
For the year ended October 31, 1998
<TABLE>
<CAPTION>
International Kansas
Stock Multi-Manager Tax-Exempt
Fund Stock Fund Bond Fund
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment Income:
Interest income $ --- $ --- $ 6,072,818
Dividend income 1,836,633 --- 64,669
Investment Income Allocated from
International Equity Portfolio:
Interest income --- 189,726 ---
Dividend income --- 1,390,242 ---
Income from securities lending --- 27,725 ---
Expenses --- (301,056) ---
-------------- ------------- --------------
Total Income 1,836,633 1,306,637 6,137,487
-------------- ------------- --------------
Expenses:
Investment advisory fees 928,393 225,903 360,231
Administration fees 185,680 84,714 240,155
Fund accounting fees 33,828 30,020 41,461
Transfer agent fees 9,036 5,693 7,352
12b-1 fees 232,097 141,189 300,392
Shareholder servicing fees 74,815 45,481 96,062
Custodian fees 18,566 --- 24,013
Legal and audit fees 66,299 46,884 65,595
Other 29,456 17,931 60,467
-------------- ------------- --------------
Total expenses before waivers/ reimbursements 1,578,170 597,815 1,195,728
Less expenses waived/ reimbursed (352,787) (169,428) (943,522)
-------------- ------------- --------------
Net expenses 1,225,383 428,387 252,206
-------------- ------------- --------------
Net Investment Income 611,250 878,250 5,885,281
-------------- ------------- --------------
Realized and Unrealized Gains (Losses) from Investments:
Net realized gains (losses) on investment transactions 14,159,299 1,663,174 597,821
Net change in unrealized appreciation (depreciation) of investments
and foreign currency transactions (4,384,432) (989,259) 1,617,648
-------------- ------------- --------------
Net realized and unrealized gains (losses) on investments 9,774,867 673,915 2,215,469
-------------- ------------- --------------
Increase in Net Assets Resulting from Operations $ 10,386,117 $ 1,552,165 $ 8,100,750
============== ============= ==============
</TABLE>
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Money Market Fund Short-Term Bond Fund
------------------------------------- -------------------------------------
For the Year January 23, For the Year January 21,
ended 1997 to ended 1997 to
October 31, 1998 October 31, October 31, 1998 October 31,
1997 (a) 1997 (a)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 2,600,830 $ 2,378,643 $ 3,259,856 $ 1,774,822
Net realized gains (losses) on investment
transactions 1,264 356 5,686 (43,673)
Net change in unrealized appreciation
(depreciation) of investments --- --- 696,063 459,337
Change in net assets resulting from
------------------ -------------- ------------------- --------------
operations 2,602,094 2,378,999 3,961,605 2,190,486
------------------ -------------- ------------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (2,600,830) (2,378,643) (3,259,856) (1,774,822)
------------------ -------------- ------------------- --------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 139,751,111 288,738,958 15,889,131 59,937,947
Dividends reinvested 5,335 3,437 917,278 271,696
Cost of shares redeemed (144,577,515) (233,176,962) (8,819,515) (7,943,019)
Change in net assets from capital
------------------ -------------- ------------------- --------------
transactions (4,821,069) 55,565,433 7,986,894 52,266,624
------------------ -------------- ------------------- --------------
Change in net assets (4,819,805) 55,565,789 8,688,643 52,682,288
NET ASSETS:
Beginning of period 55,565,789 --- 52,682,288 ---
------------------ -------------- ------------------- --------------
End of period $ 50,745,984 $ 55,565,789 $ 61,370,931 $ 52,682,288
================== ============== =================== ==============
SHARE TRANSACTIONS:
Issued 139,751,111 288,738,958 1,573,861 5,989,140
Reinvested 5,335 3,437 90,835 27,099
Redeemed (144,577,515) (233,176,962) (872,890) (790,844)
------------------ -------------- ------------------- --------------
Change in shares (4,821,069) 55,565,433 791,806 5,225,395
================== ============== =================== ==============
Undistributed net investment income included
in net assets:
End of period: $ 12,620 $ 12,264 $ 4,693 $ 6,163
================== ============== =================== ==============
</TABLE>
(a) Period from commencement of operations.
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND STOCK FUND
-------------------------------- ----------------------------------
FOR THE YEAR JANUARY 21, FOR THE YEAR JANUARY 21,
ENDED 1997 TO ENDED 1997 TO
OCTOBER 31, 1998 OCTOBER 31, OCTOBER 31, 1998 OCTOBER 31,
1997 (A) 1997 (A)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 2,867,672 $ 1,582,658 $ 611,250 $ 268,419
Net realized gains (losses) on investment
transactions 141,708 (119,472) 14,159,299 3,822,119
Net change in unrealized appreciation
(depreciation) of investments 942,254 1,014,083 (4,384,432) 1,866,396
-------------- -------------- -------------- --------------
Change in net assets resulting from operations 3,951,634 2,477,269 10,386,117 5,956,934
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (2,867,672) (1,582,658) (395,475) ---
From net realized gains on investment
transactions --- --- (3,918,048) ---
-------------- -------------- -------------- --------------
Total distribution to shareholders (2,867,672) (1,582,658) (4,313,523) ---
-------------- -------------- -------------- --------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 14,471,629 48,871,160 29,168,396 82,543,202
Dividends reinvested 718,051 183,598 2,109,220 ---
Cost of shares redeemed (9,772,711) (3,457,485) (16,660,584) (8,665,701)
-------------- -------------- -------------- --------------
Change in net assets from capital transactions 5,416,969 45,597,273 14,617,032 73,877,501
-------------- -------------- -------------- --------------
Change in net assets 6,500,931 46,491,884 20,689,626 79,834,435
NET ASSETS:
Beginning of period 46,491,884 --- 79,834,435 ---
-------------- -------------- -------------- --------------
End of period $ 52,992,815 $ 46,491,884 $ 100,524,061 $ 79,834,435
============== ============== ============== ==============
SHARE TRANSACTIONS (INSTITUTIONAL SERVICE CLASS):
Issued 1,410,418 4,881,163 2,494,495 7,832,137
Reinvested 69,956 18,288 191,573 ---
Redeemed (952,303) (345,268) (1,418,435) (771,777)
-------------- -------------- -------------- --------------
Change in shares 528,071 4,554,183 1,267,633 7,060,360
============== ============== ============== ==============
Undistributed net investment income included
in net assets:
End of period: $ 2,121 $ 5,167 $ 491,998 $ 276,215
============== ============== ============== ==============
</TABLE>
(a) Period from commencement of operations.
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
INTERNATIONAL
MULTI-MANAGER STOCK FUND
------------------------------------------
FOR THE YEAR JANUARY 20,
ENDED 1997 TO
OCTOBER 31, 1998 OCTOBER 31,
1997 (A)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
From Investment Activities:
OPERATIONS:
Net investment income $ 878,250 $ 419,357
Net realized gains on investment transactions 1,663,174 832,732
Net change in unrealized appreciation (depreciation)
of investments and foreign currency (989,259) 906,512
---------------- -------------
Change in net assets resulting from operations 1,552,165 2,158,601
---------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (499,827) --
From net realized gains on investment transactions (351,828) --
---------------- -------------
Total distribution to shareholders (851,655) --
---------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 29,807,759 41,627,048
Dividends reinvested 424,581 --
Cost of shares redeemed (16,563,493) (2,650,466)
---------------- -------------
Change in net assets from capital transactions 13,668,847 38,976,582
---------------- -------------
Change in net assets 14,369,357 41,135,183
NET ASSETS:
Beginning of period 41,135,183 --
---------------- -------------
End of period $ 55,504,540 $ 41,135,183
================ =============
SHARE TRANSACTIONS (INSTITUTIONAL SERVICE CLASS):
Issued 2,684,450 3,991,244
Reinvested 40,321 --
Redeemed (1,493,886) (241,622)
---------------- -------------
Change in shares 1,230,885 3,749,622
================ =============
Undistributed net investment income included
in net assets:
End of period: $ 679,009 $ 445,815
================ =============
<CAPTION>
KANSAS TAX-EXEMPT BOND FUND
--------------------------------------------------------
FOR THE YEAR SEPTEMBER 1, YEAR
ENDED 1997 TO ENDED
OCTOBER 31, 1998 OCTOBER 31, AUGUST 31,
1997 (B) 1997 (C)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
From Investment Activities:
OPERATIONS:
Net investment income $ 5,885,281 $ 863,968 $ 4,186,899
Net realized gains on investment transactions 597,821 192,740 142,735
Net change in unrealized appreciation (depreciation)
of investments and foreign currency 1,617,648 511,072 1,312,942
---------------- -------------- ------------
Change in net assets resulting from operations 8,100,750 1,567,780 5,642,576
---------------- -------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (5,885,281) (863,968) (4,508,562)
From net realized gains on investment transactions (332,132) -- --
---------------- -------------- ------------
Total distribution to shareholders (6,217,413) (863,968) (4,508,562)
---------------- -------------- ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 40,349,944 7,791,225 31,077,025
Dividends reinvested 445,962 10,885 1,369
Cost of shares redeemed (13,377,639) (1,669,969) (7,497,873)
---------------- -------------- ------------
Change in net assets from capital transactions 27,418,267 6,132,141 23,580,521
---------------- -------------- ------------
Change in net assets 29,301,604 6,835,953 24,714,535
NET ASSETS:
Beginning of period 103,615,860 96,779,907 72,065,372
---------------- -------------- ------------
End of period $ 132,917,464 $ 103,615,860 $ 96,779,907
================ ============== ============
SHARE TRANSACTIONS (INSTITUTIONAL SERVICE CLASS):
Issued 3,735,461 729,086 2,933,096
Reinvested 41,258 1,018 129
Redeemed (1,235,603) (156,177) (707,944)
---------------- -------------- ------------
Change in shares 2,541,116 573,927 2,225,281
================ ============== ============
Undistributed net investment income included
in net assets:
End of period: $ 2,267 $ -- $ --
================ ============== ============
</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>
INTRUST FUNDS TRUST
MONEY MARKET FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
------ ----
<S> <C> <C>
CERTIFICATES OF DEPOSIT (24.6%)
BANKING (3.9%)
Mellon Bank Pittsburgh, 5.48%, 3/12/99 $2,000,000 $2,000,000
---------
YANKEE CERTIFICATE OF DEPOSIT (20.7%)
Banque Paribas, 5.66%, 7/8/99 2,000,000 1,999,215
Den Danske Bank, 5.24%*, 4/06/99 2,500,000 2,500,000
San Paolo Bank, 5.46%*, 6/8/99 2,000,000 1,999,176
Se Banken, 5.44%*, 6/15/99 2,000,000 2,000,000
Societe Generale, 5.25%*, 1/19/99 2,000,000 1,999,791
---------
10,498,182
----------
TOTAL CERTIFICATES OF DEPOSIT (COST $12,498,182) 12,498,182
----------
COMMERCIAL PAPER (16.5%)
BANKING (3.9%)
Bank Brussells Lambert, NA, 5.30%, 2/18/99, (b) 2,000,000 1,968,511
---------
FINANCIAL SERVICES (8.7%)
Credit Suisse First Boston, 5.13%, 4/13/99 2,500,000 2,443,402
Salomon Smith Barney Holdings, 5.50%, 3/9/99 2,000,000 1,961,956
---------
4,405,358
---------
FINANCIAL-BANKING (3.9%)
GECC (Stars), 5.51%*, 3/2/99 2,000,000 2,000,000
---------
TOTAL COMMERCIAL PAPER (COST $8,373,869) 8,373,869
---------
CORPORATE BONDS (4.9%)
FINANCIAL SERVICES (4.9%)
Goldman Sachs, 5.32%*, 7/12/99 2,500,000 2,500,000
---------
TOTAL CORPORATE BONDS (COST $2,500,000) 2,500,000
---------
MEDIUM TERM/SENIOR NOTES (44.4%)
BANKING (8.9%)
Bankers Trust Corp., 5.67%*, 2/19/99 (b) 2,500,000 2,499,925
Fleet Credit Card LLC, 5.85%*, 03/15/99 2,000,000 2,002,954
---------
4,502,879
---------
BUSINESS CREDIT (2.0%)
Sanwa Business Credit Corp., 5.79%*, 05/14/99 (b) (c) 1,000,000 1,000,000
---------
FINANCIAL SERVICES (9.9%)
Lehman Brothers Holdings, Inc., 5.23%*, 01/20/99 2,000,000 2,000,000
Morgan Stanley Group, 5.72%*, 03/01/99 3,000,000 3,002,976
---------
5,002,976
---------
LIFE INSURANCE (12.8%)
General American Life Insurance Co., 5.55%*, 02/09/99 (c) 2,500,000 2,500,000
Jackson National Life Insurance Co., 5.49%*, 05/11/99 (d), (e) 2,000,000 2,000,000
Security Life Of Denver Insurance Co., 5.74%*, 11/19/98 (d), (e) 2,000,000 2,000,000
---------
6,500,000
---------
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
MONEY MARKET FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT COST
------ ----
<S> <C> <C>
MEDIUM TERM/SENIOR NOTES, CONTINUED:
MOTOR VEHICLES (10.8%)
American Honda Finance Corp., 5.33%*, 04/16/99 (b) $2,500,000 $2,500,000
General Motors Acceptance Corp., 5.74%*, 02/02/00 (d) 3,000,000 3,000,000
---------
5,500,000
----------
TOTAL MEDIUM TERM/SENIOR NOTES (COST $22,505,855) 22,505,855
----------
REPURCHASE AGREEMENTS (9.3%)
Goldman, Sach & Co., Tri-Party Repurchase 4,740,191 4,740,191
---------
Agreement, dated 10/30/98 with a maturity value of
$4,834,995 (Collateralized by $4,740,191
Freddie Mac 6.13%, 2/1/37, market value of
$4,811,303), 5.52%, 11/2/98
TOTAL REPURCHASE AGREEMENTS (COST $4,740,191) 4,740,191
---------
TOTAL (COST $50,618,097) (A) - 99.7% $ 50,618,097
==========
</TABLE>
____________
Percentages indicated are based on net assets of $50,745,984.
(a) Cost for federal income tax and financial reporting purposes are
substantially the same.
(b) Represents a restricted security purchased under Rule 144A which is
exempt from registration under the Securities Act of 1933, as amended.
These securities have been determined to be liquid by procedures
approved by the board of trustees.
(c) Includes 7-day unconditional put.
(d) Includes 90-day unconditional put.
(e) Represents a restricted security deemed to be illiquid.
* Variable rate securities. The rate reflected on the Schedule of
Investments is the rate in effect at October 31, 1998.
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
Short-Term Bond Fund
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------- -----
<S> <C> <C>
ASSET BACKED SECURITIES (17.9%) **
AESOP Funding II LLC, 6.22%, 10/20/01, (b) $1,500,000 $ 1,536,735
Agricultural Mortgage Backed Securities CS-1012-1, 7.06%, 1,943,778 2,039,144
7/25/02
Green Tree Financial Corp., Series 1994-1, Class A3, 6.90%, 1,000,000 1,018,250
4/15/19
Green Tree Financial Corp., Series GT 1993-4, Class A-3, 6.25%, 1,515,338 1,522,809
1/15/19
Household Consumer Loan Trust, 5.76%*, 3/15/07 1,000,000 998,100
Household Consumer Loan Trust 95-1-1, 5.65%*, 9/15/05 941,889 942,454
Keystone Home Improvement Loan Trust, 97-P2 IA3, 1,000,000 1,006,094
6.99%, 4/25/14, (b)
Premier Auto Trust, 97-1-B, 6.55%, 9/6/03 1,000,000 1,023,100
Team Fleet Financing Corp., Series 97-1 A, 7.35%, 5/15/03, (b) 800,000 841,680
-----------
TOTAL ASSET BACKED SECURITIES (COST $10,734,708) 10,928,366
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS (16.9%) **
Commercial Loan Funding Trust, 5.89%*, 8/15/05, (b) 952,948 952,948
Freddie Mac, 6.00%, 4/15/06 500,000 502,005
Freddie Mac, 5.75%, 5/15/06 999,296 999,136
Independent National Mortgage Corp., 8.32%*, 1/25/25 806,452 818,801
Merrill Lynch Mortgage Investors, Inc., 7.88%*, 1/25/05 267,563 269,068
Merrill Lynch Mortgage Investors, Inc., 7.60%*, 2/25/23 352,917 357,071
Merrill Lynch Mortgage Investors, Inc., 8.03%*, 4/25/24 507,701 527,394
MLCC Mortgage Investors, 1994-B A2, 6.10%*, 12/15/19 1,012,456 1,018,126
Residential Funding Mortgage Securities, Series 1989-51, 7.35%*, 527,581 543,292
10/25/19
Resolution Trust Corp., 1991-M5-A, 9.00%, 3/25/17 103,344 104,197
Resolution Trust Corp., 1995-C2 A2, 5.76%*, 5/25/27 482,338 483,061
Resolution Trust Corp., Series 1992-C3, 6.46%*, 8/25/23 718,244 718,244
Vendee Mortgage Trust 93-1-E, 7.00%, 1/15/16 1,250,000 1,265,062
Vendee Mortgage Trust, Series 1992-1, 7.75%, 12/15/14 698,884 704,761
Vendee Mortgage Trust, Series 1995-3, 7.25%, 7/15/14 1,000,000 1,005,630
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $10,252,191) 10,268,796
-----------
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
Short-Term Bond Fund
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------- -----
<S> <C> <C>
CORPORATE BONDS (19.7%)
AEROSPACE (1.2%)
Loop Funding Trust Master 97-Aer B1, 6.06%*, 12/26/07, (b) $ 750,000 $ 740,742
-----------
BANKING (1.1%)
Chase Manhattan Corp., 10.13%, 11/1/00 615,000 670,350
-----------
ELECTRIC UTILITY (0.8%)
Texas Utilities, 6.20%, 10/1/02, MBIA 500,000 518,750
-----------
FILM & ENTERTAINMENT (1.6%)
Dream Works Film Trust, 5.57%*, 10/15/05, (b) 1,000,000 997,344
-----------
FINANCIAL SERVICES (3.6%)
Ford Motor Credit Corp., 9.50%, 4/15/00 1,100,000 1,164,625
Transamerica Financial, Series E, 6.41%, 6/20/00 1,000,000 1,022,500
-----------
2,187,125
-----------
INDUSTRIAL GOODS & SERVICES (6.6%)
Cargill, Inc., 7.72%, 2/12/02, (b) 333,209 348,824
McDonald's Corp., 6.00%, 6/23/02, 800,000 829,000
Nabisco, Inc., 6.00%, 2/15/11 250,000 248,750
Newell Co., 6.18%, 7/11/00 1,000,000 1,017,500
Philip Morris, 6.15%, 3/15/00 600,000 609,000
Tyco International Ltd., 6.50%, 11/1/01 1,000,000 1,032,499
-----------
4,085,573
-----------
OIL FIELD SERVICES (0.9%)
Colonial Pipeline, 7.13%, 8/15/02, (b) 500,000 536,250
-----------
RETAIL STORES/CATALOG (2.4%)
J.C. Penney & Co., 6.95%, 4/1/00 1,000,000 1,030,000
May Department Stores Co., 9.88%, 6/15/00 385,000 415,319
-----------
1,445,319
-----------
TRANSPORTATION - RAILWAYS (1.5%)
Norfolk Southern Corp., 6.88%, 5/1/01 900,000 937,125
-----------
TOTAL CORPORATE BONDS (COST $11,801,282) 12,118,578
-----------
MEDIUM TERM/SENIOR NOTES (4.1%)
BANKING (2.0%)
First Interstate, 10.83%, 3/19/01 625,000 703,125
First Interstate, 9.38%, 1/23/02 500,000 565,000
-----------
1,268,125
-----------
FINANCIAL SERVICES (2.1%)
Charles Schwab, 7.19%, 5/31/01 500,000 526,875
Racers Trust 98-Mm-8-3, 5.33%*, 1/20/99 (b), Lehman May Opt to 750,000 750,000
-----------
Extend Maturity Date-Putable 1,276,875
-----------
TOTAL MEDIUM TERM/SENIOR NOTES (COST $2,482,442) 2,545,000
-----------
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
Short-Term Bond Fund
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------- -----
<S> <C> <C>
TAXABLE MUNICIPAL BONDS (12.6%)
COLORADO (2.5%)
Denver, Colorado City & County School District 01, 6.34%, $1,500,000 $1,545,000
----------
12/15/00 AMBAC
CONNECTICUT (1.3%)
Connecticut St. Series A Federal Taxable, 5.70%, 1/15/01, Federal 800,000 811,000
----------
Taxable, State Tax-Exempt
MARYLAND (0.9%)
Baltimore, Md, GO Series B, 6.38%, 10/15/00, Non-Callable, 565,000 581,244
----------
FGIC
MINNESOTA (1.7%)
Western Minnesota Power Agency, 6.33%, 1/1/02 AMBAC 1,000,000 1,035,000
----------
NEW YORK (3.4%)
New York State Taxable Series C, 6.13%, 3/1/02, Non-Callable, 1,000,000 1,028,750
Federal Taxable, State Tax-Exempt
New York, NY GO, Series K, 6.10%, 8/1/01, Non-Callable, Federal 1,000,000 1,020,000
----------
Taxable, State Tax-Exempt
2,048,750
----------
OREGON (1.1%)
Cow Creek Band Umpqua Tribe Of Indians, 6.20%, 7/1/03, 650,000 674,375
----------
AMBAC
WASHINGTON (1.7%)
Washington State Housing Trust Fund - Series T, 6.60%, 1/1/01 1,000,000 1,031,250
----------
TOTAL MUNICIPAL BONDS (COST $7,522,730) 7,726,619
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS (9.9%)
FANNIE MAE (1.6%)
5.00%*, 3/3/00 1,000,000 991,250
----------
FEDERAL HOME LOAN BANK (4.2%)
5.00%*, 5/10/00, Series Y 00 1,800,000 1,775,250
5.63%, 3/19/01, Series 87 750,000 766,590
----------
2,541,840
----------
FREDDIE MAC (4.1%)
6.00%, 10/20/99 $2,000,000 $2,020,660
5.00%*, 3/10/00 500,000 499,375
----------
2,520,035
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $6,024,458) 6,053,125
----------
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
Short-Term Bond Fund
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------- -----
<S> <C> <C>
U.S. GOVERNMENT AGENCY PASS-THROUGH SECURITIES (3.5%) **
FANNIE MAE (2.3%)
6.93%, 3/1/01, Pool #160334 962,193 995,869
7.75%*, 11/1/21, Pool #365421 336,708 354,594
-----------
1,350,463
-----------
FREDDIE MAC (0.5%)
7.70%*, 4/1/29, Pool #846367 317,003 326,910
-----------
SMALL BUSINESS ADMINISTRATION (0.7%)
8.88%*, 1/25/10, Pool #503653 184,755 199,536
8.73%*, 1/25/13, Pool #503664 145,799 158,738
9.48%*, 5/25/15, Pool #502966 78,497 86,739
-----------
445,013
-----------
TOTAL U.S. GOVERNMENT AGENCY PASS-THROUGH SECURITIES (COST $2,075,112) 2,122,386
-----------
U.S. TREASURY OBLIGATIONS (12.4%)
U.S. TREASURY NOTES (12.4%)
6.63%, 4/30/02 3,400,000 3,643,678
7.88%, 11/15/04 3,400,000 3,994,626
-----------
TOTAL U.S. TREASURY OBLIGATIONS (COST $7,352,851) 7,638,304
-----------
INVESTMENT COMPANIES (2.3%)
FedFund Money Market Fund 1,384,467 1,384,467
-----------
TOTAL INVESTMENT COMPANIES (COST $1,384,467) 1,384,467
-----------
TOTAL (COST $59,630,241) (A) - 99.0% $60,785,641
===========
</TABLE>
______________________
Percentages indicated are based on net assets of $61,370,931.
(a) Represents cost for federal tax and financial reporting purposes and
differs from market value by net unrealized appreciation of
securities as follows:
Unrealized appreciation $1,190,865
Unrealized depreciation (35,465)
----------
Net unrealized appreciation $1,155,400
(b) Represents a restricted security purchase under Rule 144A which is exempt
from registration under the Securities Act of 1933, as amended. These
securities have been determined to be liquid by procedures approved by the
board of trustees.
* Variable rate securities. This rate reflected on the Schedule of
Investments is the rate in effect at October 31, 1998.
** Maturity date represents final maturity; however, actual maturity may
differ due to prepayment experience.
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>
INTRUST FUNDS TRUST
INTERMEDIATE BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------ -----
<S> <C> <C>
ASSET BACKED SECURITIES (12.4%)**
EQCC Home Equity Loan Trust, 7.10%, 02/15/12 $1,000,000 $ 1,082,380
EQCC Home Equity Loan Trust, 7.50%, 6/15/21 700,000 734,538
Green Tree Financial Corp. 97-7-A8, 6.86%, 8/25/29 1,170,608 1,189,081
Household Consumer Loan Trust, 5.76%*, 3/15/07 500,000 499,050
Keystone Home Improvement Loan Trust, 97-P2 IA3, 1,000,000 1,006,094
6.99%,4/25/14, (b)
Premier Auto Trust, 97-1-B, 6.55%, 9/6/03 1,000,000 1,023,100
Team Fleet Financing Corp., Series 97-1 A, 7.35%, 5/15/03, (b) 1,000,000 1,052,100
-----------
TOTAL ASSET BACKED SECURITIES (COST $6,388,684) 6,586,343
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS (21.3%)**
American Housing Trust, Series VI 1-I, 9.15%, 5/25/20 652,527 690,511
Asset Securitization Corp., Series 1997-D4, Class A1C, 7.42%, 750,000 847,624
4/14/27
Bear Stearns Structured Securities, Inc. 97-2-1B, 7.00%, 8/25/36 750,000 768,516
(b)
General Mortgage Acceptance Corp. Commercial Mortgage 350,000 368,165
Securities, Inc., 7.22%, 2/15/06
Independent National Mortgage Corp., 8.30%*, 12/25/24 1,010,168 1,025,952
Merrill Lynch Mortgage Investors, Inc., 7.88%*, 1/25/05 267,563 269,068
Merrill Lynch Mortgage Investors, Inc., 7.60%*, 2/25/23 352,917 357,071
Merrill Lynch Mortgage Investors, Inc., 7.12%, 6/18/29 1,000,000 1,109,920
Residential Funding Mortgage Securities, Series 1989-51, 7.35%*, 527,581 543,292
10/25/19
Resolution Trust Corp., Series 1995-1, 7.50%, 10/25/28 750,000 751,875
Salomon, 97 HUD1-A-3, 7.51%, 12/25/30 1,000,000 1,025,000
Vendee Mortgage Trust, Series 1992-1, Class 2D, 7.75%, 12/15/14 698,884 704,761
Vendee Mortgage Trust, Series 1995-1C, Class 3E, 8.00%, 7/15/18 750,000 764,115
Vendee Mortgage Trust, Series 1995-3, Class 1C, 7.25%, 7/15/14 1,000,000 1,005,630
Vendee Mortgage Trust, Series 1997-1-2C, 7.50%, 9/15/17 1,000,000 1,018,220
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $11,046,489) 11,249,720
-----------
CORPORATE BONDS (33.1%)
Airlines (1.9%)
Continental Airlines 97-144-2a, 7.15%, 12/30/08 972,318 1,008,002
-----------
BANKING (3.5%)
Chase Manhattan Corp., 10.13%, 11/1/00 1,000,000 1,090,000
First Bank System, Inc., 7.63%, 5/1/05 700,000 765,625
-----------
1,855,625
-----------
CONSUMER GOODS & SERVICES (1.5%)
Levi Strauss & Co., 6.80%, 11/1/03, (b) 750,000 787,500
-----------
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
INTERMEDIATE BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------ -----
<S> <C> <C>
CORPORATE BONDS, CONTINUED
ELECTRIC UTILITY (3.1%)
Texas Utilities, 6.20%, 10/1/02, MBIA $ 500,000 $ 518,750
Utilicorp, 6.88%, 10/01/04, AMBAC 1,000,000 1,110,000
-----------
1,628,750
-----------
ELECTRICAL & ELECTRONIC (1.1%)
Philips Electronics N.V., 7.75%, 4/15/04 500,000 560,625
-----------
FINANCIAL SERVICES (12.0%)
Ford Credit Auto Owner Trust 1998-B-A4, 5.90%, 6/15/02 1,000,000 1,018,800
Goldman Sachs Group LP, 7.88%, 1/15/03 (b) 500,000 532,500
Prudential Insurance, 7.65%, 7/1/07 (b) 1,000,000 1,085,000
Reinsurance Group of America, 7.25%, 4/1/06 (b) 500,000 547,500
Reliastar Financial Corp., 7.13%, 3/1/03 1,000,000 1,071,250
Terra Nova Holdings, 7.20%, 8/15/07 1,000,000 1,077,500
Transamerica Financial, Series E, 6.41%, 6/20/00 1,000,000 1,022,500
-----------
6,355,050
-----------
INDUSTRIAL GOODS & SERVICES (5.5%)
Aramark Corp., 6.75%, 8/1/04, Callable 500,000 508,750
Nabisco, Inc., 6.00%, 2/15/11 250,000 248,750
Tenneco, Inc., 10.08%, 2/1/01 1,000,000 1,106,250
Tyco International Ltd., 6.50%, 11/1/01 1,000,000 1,032,500
-----------
2,896,250
-----------
RETAIL-GENERAL MERCHANDISE (3.5%)
May Department Stores Co., 7.15%, 8/15/04 1,000,000 1,092,500
Pep Boys, 6.71%, 11/3/04 750,000 786,563
-----------
1,879,063
-----------
TOBACCO (1.0%)
Philip Morris Cos., Inc., 7.63%, 5/15/02 500,000 532,500
-----------
TOTAL CORPORATE BONDS (COST $16,645,303) 17,503,365
-----------
MEDIUM TERM/SENIOR NOTES (8.4%)
BANKING (2.2%)
First Interstate, 9.38%, 1/23/02 547,000 618,110
United Missouri Bancshares, Inc., 7.30%, 2/24/03 500,000 543,125
-----------
1,161,235
-----------
FINANCIAL SERVICES (3.7%)
Charles Schwab, 7.19%, 5/31/01 500,000 526,875
Merrill Lynch, 5.76%*, 8/10/01 700,000 699,790
Paine Webber Group, 6.90%, 8/15/03 750,000 759,375
-----------
1,986,040
-----------
OIL & GAS EXPLORATION PRODUCTS & SERVICES (1.5%)
Vastar Resources, Inc., 6.95%, 11/8/06 750,000 780,000
-----------
SEMICONDUCTORS (1.0%)
Applied Materials, Inc., 6.70%, 9/6/05 500,000 531,250
-----------
TOTAL MEDIUM TERM/SENIOR NOTES (COST $4,255,204) 4,458,525
-----------
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
INTERMEDIATE BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------- -----
<S> <C> <C>
TAXABLE MUNICIPAL BONDS (5.0%)
NEW YORK (3.0%)
New York State Taxable Series C, GO, 6.13%, 3/1/02 $ 800,000 $ 823,000
New York, NY, GO, 6.10%, 8/1/01, Non-Callable, Federal 750,000 765,000
-----------
Taxable, State Tax-Exempt 1,588,000
-----------
WASHINGTON (2.0%)
Washington State Housing Trust Fund - Series T, 6.60%, 1/1/03 1,000,000 1,057,500
-----------
TOTAL MUNICIPAL BONDS (COST $2,559,393) 2,645,500
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS (7.4%)
FANNIE MAE (2.0%)
5.75%, 6/15/05 1,000,000 1,044,620
-----------
FEDERAL HOME LOAN BANK (5.4%)
5.63%, 3/19/01, Series 87 750,000 766,590
7.87%, 10/20/04, Series AW04 1,850,000 2,123,004
-----------
2,889,594
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $3,729,626) 3,934,214
-----------
U.S. GOVERNMENT AGENCY PASS-THROUGH SECURITIES (6.2%)**
FANNIE MAE (5.6%)
7.13%, 6/1/04, Pool #375168 988,396 1,057,584
7.75%*, 11/1/21, Pool #365421 696,786 733,799
6.50%, 2/1/28, Pool #415414 1,189,430 1,199,088
-----------
2,990,471
-----------
FREDDIE MAC (0.6%)
Freddie Mac, 7.70%*, 4/1/29, Pool #846367 317,003 326,910
-----------
TOTAL U.S. GOVERNMENT AGENCY PASS-THROUGH SECURITIES (COST $3,232,877) 3,317,381
-----------
U.S. TREASURY OBLIGATIONS (5.2%)
U.S. TREASURY BONDS (2.3%)
6.75%, 8/15/26 1,000,000 1,201,220
-----------
U.S. TREASURY NOTES (2.9%)
7.00%, 7/15/06 1,350,000 1,555,146
-----------
TOTAL U.S. TREASURY OBLIGATIONS (COST $2,637,501) 2,756,366
-----------
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
INTERMEDIATE BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------- -----
<S> <C> <C>
INVESTMENT COMPANIES (0.2%)
FedFund Money Market Fund 129,791 $ 129,791
------------
TOTAL INVESTMENT COMPANIES (COST $129,791) 129,791
------------
TOTAL (COST $50,624,868) (A) - 99.2% $52,581,205
===========
</TABLE>
____________
Percentages indicated are based on net assets of $52,992,815.
(a) Represents cost for federal tax and financial reporting purposes
and differs from market value by net unrealized appreciation of
securities as follows:
Unrealized appreciation $ 1,984,075
Unrealized depreciation (27,738)
-----------
Net unrealized appreciation $ 1,956,337
(b) Represents a restricted security purchases under Rule 144A which
is exempt from registration under the Securities Act of 1933, as
amended. These securities have been determined to be liquid by
procedures approved by the board of trustees.
* Variable rate securities. This rate reflected on the Schedule of
Investments is the rate in effect at October 31,1998.
** Maturity date represents final maturity; however, actual maturity
may differ due to prepayment experience.
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>
INTRUST FUNDS TRUST
Stock Fund
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS (96.8%)
AEROSPACE & MILITARY TECHNOLOGY (4.2%)
AlliedSignal, Inc. 45,400 $ 1,767,763
Lockheed Martin Corp. 22,200 2,472,525
---------
4,240,288
---------
AUTOMOTIVE (1.8%)
Dana Corp. 44,300 1,852,294
---------
BANKING, FINANCE & INSURANCE (3.9%)
Bank One Corp. 35,200 1,720,400
BankAmerica Corp. 38,400 2,205,600
---------
3,926,000
---------
BUILDING PRODUCTS (1.7%)
Masco Corp. 62,200 1,753,263
---------
COMPUTERS (2.8%)
Compaq Computer Corp. 30,300 958,238
Seagate Technology, Inc. (b) 69,800 1,840,975
---------
2,799,213
---------
CONSUMER GOODS & SERVICES (3.0%)
Kimberly Clark Corp. 37,000 1,785,250
Sears, Roebuck & Co. 27,900 1,253,756
---------
3,039,006
---------
CONTAINERS & PACKAGING (1.1%)
Crown Cork & Seal Co. 35,400 1,128,375
---------
DIVERSIFIED (4.5%)
Corning, Inc. 50,800 1,844,675
Minnesota Mining & Manufacturing Co. 24,500 1,959,999
Tenneco, Inc. 25,300 768,488
---------
4,573,162
---------
ELECTRIC UTILITY (2.0%)
Dominion Resources, Inc. of Virginia 11,500 531,156
Texas Utilities Co. 34,200 1,496,250
---------
2,027,406
---------
ELECTRICAL & ELECTRONIC (2.1%)
AMP, Inc. 18,317 752,142
Emerson Electric Co. 20,100 1,326,600
---------
2,078,742
---------
ELECTRONIC COMPONENTS/INSTRUMENTS (4.1%)
Motorola, Inc. 44,900 2,334,800
Raytheon Co.-Class A 16,600 929,600
Raytheon Co.-Class B 15,100 876,744
---------
4,141,144
---------
ENERGY (2.3%)
Atlantic Richfield Co. 34,100 2,348,638
---------
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
Stock Fund
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS, CONTINUED
FINANCIAL SERVICES (1.8%)
Chase Manhattan Corp. 31,200 $ 1,772,550
-----------
FOOD PRODUCTS & SERVICES (4.1%)
Archer-Daniels-Midland Co. 120,644 2,013,247
Conagra, Inc. 51,100 1,555,356
General Mills, Inc. 7,400 543,900
---------
4,112,503
---------
FOREST PRODUCTS (2.8%)
Champion International Co. 28,900 922,994
Fort James Corp. 47,900 1,930,969
---------
2,853,963
---------
HEALTH CARE (1.5%)
Baxter International, Inc. 19,600 1,174,775
United Healthcare Corp. 8,500 370,281
---------
1,545,056
---------
HOME FURNISHINGS (1.4%)
Newell Co. 31,000 1,364,000
---------
INDUSTRIAL GOODS & SERVICES (5.6%)
Air Products & Chemical, Inc. 45,400 1,713,849
Du Pont (Ei) De Nemours & Co. 8,100 465,750
Hercules, Inc. 10,300 343,119
PPG Industries, Inc. 20,600 1,178,063
Praxair, Inc. 46,200 1,859,549
---------
5,560,330
---------
INSURANCE (11.8%)
Aetna, Inc. 31,300 2,335,762
Allstate Corp. 40,800 1,756,950
Chubb Corp. 35,000 2,152,499
Cigna Corp. 24,200 1,765,088
Loews Corp. 10,700 1,005,131
St. Paul Cos. 45,200 1,497,250
UNUM Corp. 27,300 1,213,144
----------
11,725,824
----------
MACHINERY & EQUIPMENT (1.4%)
Deere & Co. 41,000 1,450,375
---------
MEDICAL-HOSPITAL MANAGEMENT & SERVICES (1.5%)
Tenet Healthcare Corp. (b) 53,300 1,489,069
---------
METALS & MINING (0.6%)
Aluminum Co. of America 7,300 578,525
-------
NATURAL RESOURCES (1.2%)
Amerada Hess Corp. 21,900 1,209,975
---------
OFFICE EQUIPMENT & SERVICES (1.2%)
Hewlett-Packard Co. 20,100 1,209,769
---------
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
Stock Fund
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS, CONTINUED
OIL & GAS EXPLORATION PRODUCTS & SERVICES (8.5%)
Baker Hughes, Inc. 57,400 $ 1,266,388
Burlington Resources, Inc. 34,600 1,425,088
Conoco, Inc. (b) 19,000 472,625
Halliburton Co. 37,400 1,344,063
Occidental Petroleum Corp. 75,400 1,498,574
Union Pacific Resources Group, Inc. 60,600 787,800
Unocal Corp. 48,300 1,639,180
---------
8,433,718
---------
PAPER PRODUCTS (0.6%)
Weyerhaeuser Co. 13,200 617,925
-------
PRINTING & PUBLISHING (1.5%)
Gannett Inc. 24,200 1,497,375
---------
RAILROADS (4.6%)
Burlington Northern Santa Fe Corp. 63,600 1,963,649
CSX Corp. 40,200 1,577,850
Union Pacific Corp. 23,400 1,114,425
---------
4,655,924
---------
RETAIL-GENERAL MERCHANDISE (3.4%)
Consolidated Stores (b) 28,700 471,756
Dillards, Inc. 16,900 524,956
Federated Department Stores, Inc. (b) 55,500 2,133,282
May Department Stores Co. 4,400 268,400
---------
3,398,394
---------
RETAIL-SPECIAL LINE (0.3%)
Venator Group, Inc. (b) 39,500 333,281
-------
STEEL (0.2%)
Nucor Corp. 5,300 240,156
-------
TECHNOLOGY (1.3%)
International Business Machines Corp. 9,000 1,335,938
---------
TELECOMMUNICATIONS (3.7%)
AT&T Corp. 30,100 1,873,725
Bell Atlantic 35,382 1,879,669
---------
3,753,394
---------
TIRE & RUBBER (1.6%)
Goodyear Tire & Rubber Co. 29,500 1,589,313
---------
UTILITIES (2.7%)
GTE Corp. 31,900 1,872,131
Pacificorp 43,200 823,500
---------
2,695,631
---------
TOTAL COMMON STOCKS (COST $99,848,555) 97,330,519
-----------
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
Stock Fund
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C> <C>
INVESTMENT COMPANIES (2.6%)
FedFund Money Market Fund 2,586,060 $ 2,586,060
-----------
TOTAL INVESTMENT COMPANIES (COST $2,586,060) 2,586,060
-----------
TOTAL (COST $102,434,615) (A) - 99.4% $99,916,579
===========
</TABLE>
____________
Percentages indicated are based on net assets of $100,524,061.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax reporting
of $66,680. Cost for federal income tax purposes differs from value by net
unrealized depreciation of securities as follows:
Unrealized appreciation $ 6,688,447
Unrealized depreciation (9,273,163)
------------
Net unrealized depreciation $ (2,584,716)
(b) Represents non-income producing securities.
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------- -----
<S> <C> <C>
MUNICIPAL BONDS (99.5%)
GUAM (0.2%)
Guam Government, Series A, 5.90%, 9/1/05, Callable 3/1/99 @ $ 250,000 $ 251,450
-------
100
Kansas (97.2%)
Anthony, Elect Revenue, 5.30%, 12/1/17, Callable 12/1/05 @100 1,215,000 1,231,706
Barton County, School District #428, Great Bend, GO, Series A, 1,390,000 1,443,863
5.30%, 9/1/15, Callable 9/1/06 @ 100
Belleville, Electric & Gas Systems Revenue, Series A, 5.00%, 150,000 150,171
12/1/98
Belleville, Electric & Gas Systems Revenue, Series A, 5.50%, 175,000 186,813
12/1/02
Belleville, Electric & Gas Systems Revenue, Series A, 5.70%, 150,000 161,063
12/1/04, Callable 12/1/02 @ 101
Bourbon County, School District #234, GO, Series B, 5.50%, 195,000 210,113
9/1/09, Callable 9/1/06 @ 100, FSA
Bourbon County, School District #234, GO, Series B, 5.60%, 215,000 231,663
9/1/10, Callable 9/1/06 @ 100, FSA
Bourbon County, School District #234, GO, Series B, 5.63%, 285,000 306,374
9/1/11, Callable 9/1/06 @ 100, FSA
Brown County, Horton School District #430, GO, 5.38%, 9/1/13, 500,000 523,124
Callable 9/1/06 @ 100, FSA
Butler & Sedgwick County, School District #385, 5.70%, 9/1/14, 630,000 662,287
Callable 9/1/03 @100, FSA
Butler & Sedgwick County, School District #385 Andover, 5.70%, 370,000 388,038
9/1/15, Callable 9/1/03 @100, FSA
Butler County, School District #402, GO, 4.15%, 10/1/01, FSA 250,000 253,750
Butler County, School District #402, GO, 4.30%, 10/1/02, FSA 250,000 255,625
Butler County, School District #402, GO, 5.25%, 10/1/12, Callable 500,000 516,249
4/1/04 @ 100, FSA
Cherokee County, School District #499, GO, 5.80%, 10/1/09, 200,000 210,750
Callable 10/1/02 @ 100, AMBAC
Cherokee County, School District #499, GO, 5.90%, 10/1/10, 215,000 227,363
Callable 10/1/02 @ 100, AMBAC
Cherokee County, School District #499, GO, 5.95%, 10/1/11, 225,000 238,219
Callable 10/1/02 @ 100, AMBAC
Clay County, School District #379, GO, Series 1992, 5.30%, 250,000 251,643
4/1/00, Callable 4/1/99 @100
Clay County, School District #379, GO, Series 1992, 5.40%, 250,000 251,630
4/1/01, Callable 4/1/99 @100
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------- -----
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED
Coffeyville, Community College, COP, 5.88%, 10/1/14, Callable $ 250,000 $ 265,000
10/1/04 @ 100
Coffeyville, Water & Sewer Revenue, 4.60%, 10/1/04, Callable 465,000 473,375
10/1/99 @ 101, AMBAC
Coffeyville, Water & Sewer Revenue, 4.70%, 10/1/05, Callable 490,000 498,918
10/1/99 @ 101, AMBAC
Cowley County, School District #470, GO, 5.45%, 12/1/12, 500,000 531,249
Callable 12/1/06 @ 100, FGIC
Cowley County, School District #470, GO, 5.50%, 12/1/16, 1,000,000 1,046,250
Callable 12/1/06 @ 100, FGIC
Decatur County, GO, Series 1992, 6.00%, 9/1/01, Callable 9/1/99 250,000 254,493
@ 100
Dickinson County, Abilene School District #435, GO, Series 1992, 265,000 266,728
5.40%, 4/1/01, Callable 4/1/99 @100
Dickinson County, Abilene School District #435, GO, Series 1992, 300,000 301,952
5.60%, 4/1/03, Callable 4/1/99 @100
Dodge City, School District #443,GO, 4.70%, 9/01/15, Callable 975,000 981,094
9/1/08 @100, FSA, Oid 99.418/4.75
Dodge, Pollution Control Revenue, 6.63%, 5/1/05, Private 700,000 771,750
Placement
Dodge, School District #443, GO, 4.80%, 3/1/08, Callable 3/1/04 360,000 369,900
@ 100, FSA
Dodge, School District #443, GO, 5.00%, 3/1/14, Callable 3/1/04 250,000 252,500
@ 100, FSA
Douglas County, School District #497 GO, 5.00%, 9/1/07, 1,000,000 1,068,750
Noncallable
Douglas County, School District #497 GO, 4.75%, 9/1/08, 1,235,000 1,292,119
Noncallable
Douglas County, School District #497, GO, Series 1993 A, 4.50%, 250,000 255,625
9/1/02, Callable 9/1/01 @ 100
Douglas County, School District #497, GO, Series A, 5.40%, 600,000 624,750
9/1/15, Callable 9/1/06 @ 100
El Dorado, Water Utility System Revenue, 4.40%, 10/1/02 230,000 234,888
El Dorado, Water Utility System Revenue, 4.45%, 10/1/03 305,000 312,625
El Dorado, Water Utility System Revenue, 4.65%, 10/1/05 350,000 362,250
El Dorado, Water Utility System Revenue, 4.70%, 10/1/06, 275,000 284,625
Callable 10/1/05 @ 100
El Dorado, Water Utility System Revenue, 4.75%, 10/1/07, 200,000 207,000
Callable 10/1/05 @ 100
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------- -----
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED
Ellsworth County, School District #328, GO, 5.25%, 9/1/15, $ 500,000 $ 514,375
Callable 9/1/06 @ 100, FSA
Finney County, GO, 5.00%, 12/1/10, Callable 12/1/07 @ 100, 500,000 522,500
MBIA
Finney County, School District #457, GO, 5.55%, 10/1/00 250,000 259,375
Ford County, Single Family Mortgage Revenue, Series A, 7.90%, 215,000 230,588
8/1/10, Callable 8/1/02 @ 103, FHA
Franklin County, GO, Series B, 4.75%, 9/1/05, Callable 9/1/03 330,000 338,250
@100
Franklin County, School District #290, GO, 5.20%, 9/1/13, 230,000 237,475
Callable 9/1/06 @ 100, FSA
Franklin County, School District #290, GO, 5.25%, 9/1/14, 500,000 516,250
Callable 9/1/06 @ 100, FSA
Franklin County, School District #290, GO, 5.30%, 9/1/16, 335,000 344,631
Callable 9/1/06 @ 100, FSA
Garden City, GO, Series B, 4.90%, 11/1/99, MBIA 250,000 254,878
Garden City, GO, Series B, 5.45%, 11/1/04, Callable 11/1/03 250,000 267,813
@100, MBIA
Gardner, Electric Utilities Revenue, 7.00%, 11/1/09, Callable 500,000 532,499
11/1/01 @ 101
Gardner, GO, 5.30%, 9/1/11, Callable 9/1/02 @ 100, AMBAC 330,000 338,663
Gove County, GO, 5.15%, 4/1/12, Callable 10/1/01 @101, AMBAC 560,000 571,199
Gray County, School District #102, GO, 6.80%, 9/1/15, Callable 250,000 278,438
9/1/05 @ 100
Gray County, School District #102, GO, 5.00%, 9/1/15, Callable 800,000 809,000
09/01/08 @ 100
Harvey County, School District #373 GO, 4.80%, 9/1/18, Callable 2,000,000 1,950,000
9/1/08 @100, FSA, (b)
Harvey County, School District #373, GO, 5.55%, 9/1/13, Callable 500,000 547,499
9/1/05 @ 100, FSA
Hays, GO, Series A, 5.15%, 9/1/09, Callable 9/1/03 @ 100, FGIC 250,000 258,438
Hays, GO, Series A, 5.25%, 9/1/10, Callable 9/1/03 @ 100, FGIC 250,000 258,750
Hays, Internal Improvement, GO, Series A, 5.20%, 9/1/01 105,000 109,069
Hays, Internal Improvement, GO, Series A, 5.30%, 9/1/02, 110,000 114,263
Callable 9/1/01 @ 100
Hays, Internal Improvement, GO, Series A, 5.50%, 9/1/04, 120,000 124,500
Callable 9/1/01 @ 100
Hays, Water & Sewer Revenue, 5.60%, 9/1/99, AMBAC 100,000 102,181
Hays, Water & Sewer Revenue, 5.80%, 9/1/00, AMBAC 100,000 104,250
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
Kansas Tax-Exempt Bond Fund
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- -----
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED
Hays, Water & Sewer Revenue, 6.20%, 9/1/03, Prerefunded 9/1/00 $ 100,000 $ 104,875
@ 100, AMBAC
Hays, Water & Sewer Revenue, 6.40%, 9/1/05, Prerefunded 9/1/00 180,000 189,450
@ 100, AMBAC
Hays, Water & Sewer Revenue, 5.20%, 9/1/11, Callable 9/1/03 @ 260,000 267,475
100, MBIA
Jefferson County, School District #340, GO, 6.00%, 9/1/06, 300,000 332,625
Prerefunded 9/1/04 @ 100, FSA
Jefferson County, School District #340, GO, 6.10%, 9/1/07, 320,000 356,400
Prerefunded 9/1/04 @ 100, FSA
Jefferson County, School District #340, GO, 6.20%, 9/1/08, 330,000 369,188
Prerefunded 9/1/04 @ 100, FSA
Johnson & Miami Counties, School District #230, GO, 5.25%, 350,000 370,124
12/1/05, Callable 12/1/03 @100
Johnson County, Fire District #002, 4.65%, 9/1/04 270,000 278,100
Johnson County, GO, Series A, 5.60%, 9/1/03, Callable 9/1/02 @ 101 200,000 214,750
Johnson County, School District #223, 5.00%, 9/1/14, Callable 3,000,000 3,045,000
9/1/09 @100, FGIC
Johnson County, School District #232, GO, 5.40%, 9/1/14, Callable 1,050,000 1,098,562
9/1/07 @ 100, MBIA
Johnson County, School District #233, GO, 5.65%, 9/1/03, Callable 485,000 517,131
3/1/02 @ 101, AMBAC
Johnson County, School District #233, GO, 5.95%, 9/1/05, Callable 500,000 534,375
3/1/02 @ 101, AMBAC
Johnson County, School District #512, GO, 5.30%, 10/1/14, 550,000 569,249
Callable 10/1/05 @ 100
Johnson County, School District #512, GO, Series B, 5.25%, 500,000 513,125
10/1/17, Callable 10/1/06 @ 100
Johnson County, Water District #001 Revenue Bond, 5.13%, 250,000 260,625
12/1/08, Callable 12/1/03 @ 100
Johnson County, Water District #001 Revenue Bond, 5.30%, 265,000 272,619
12/1/12, Callable 12/1/03 @100
Johnson County, Water District #001 Revenue Bond, Series 1990 250,000 266,875
A, 6.90%, 12/1/00
Junction City, GO, Series DD, 6.20%, 9/1/06, Callable 9/1/00 @ 100 515,000 536,244
Junction City, Industrial Revenue, F.W. Woolworth Co. Project - 70,000 70,000
Series B, 7.25%, 11/1/98
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------- -----
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED
Junction City, Water & Sewer, GO, 4.80%, 9/1/16, Callable $1,620,000 $1,632,150
9/1/08 @100, MBIA
Junction City, Water Revenue, Series A, 4.90%, 4/1/01 205,000 210,125
Junction City, Water Revenue, Series A, 4.90%, 10/1/01 210,000 216,300
Kansas City, GO, 5.45%, 4/1/17, Callable 10/1/06 @100, FGIC 340,000 353,600
Kansas City, GO, 5.45%, 10/1/17, Callable 10/1/06 @ 100, FGIC 450,000 468,000
Kansas City, GO, Series B, 5.38%, 9/1/10, Callable 9/1/05 @ 100, MBIA 1,500,000 1,584,375
Kansas City, Pollution Control Revenue, General Motors Corp., 500,000 509,815
5.45%, 4/1/06, Callable 10/1/99 @ 101
Kansas City, SO, 5.50%, 2/15/99 500,000 503,500
Kansas Department of Transportation Highway Revenue, 1,000,000 1,075,000
Non-Callable, 5.50%, 9/1/14
Kansas State Development Finance Authority Educational, 4.80%, 345,000 355,350
10/01/08, Callable 10/01/04 @ 100
Kansas State Development Finance Authority Educational, 5.00%, 500,000 509,375
10/1/12, Callable 10/1/04 @ 100
Kansas State Development Finance Authority Water Supply, 1,000,000 1,016,250
4.40%, 4/1/06, AMBAC
Kansas State Development Finance Board Regents, 4.38%, 1,000,000 1,027,500
10/1/03, AMBAC
Kansas Turnpike Authority, 5.50%, 9/1/06, AMBAC 1,915,000 2,087,349
Kearny County, School District #215,GO, 4.80%, 9/1/13, Callable 700,000 706,125
9/1/06 @100, MBIA
Kingman, Electric Utility & Distribution System Revenue, 5.50%, 250,000 253,438
9/1/08, Callable 9/1/00 @ 100
Kingman, Water & Sewer Utility & Distribution System Revenue, 250,000 264,687
6.13%, 9/1/15, Callable 9/1/03 @ 100
Labette County, Single Family Mortgage Revenue, 7.65%, 1,105,000 1,194,781
12/1/11, Callable 6/1/08 @ 103, GNMA
Lawrence, GO, Series P, 5.10%, 9/1/01, Callable 9/1/00 @ 100 220,000 226,325
Lawrence, Sales Tax, GO, Series V, 5.50%, 9/1/12, Callable 500,000 526,250
9/1/04 @ 100
Lawrence, Water & Sewer System Revenue, 5.70%, 11/1/11, 395,000 426,106
Callable 11/1/05 @ 100
Lawrence, Water & Sewer System Revenue, 5.10%, 11/1/12, 320,000 329,200
Callable 11/1/06 @100
Lawrence, Water & Sewer System Revenue, 5.25%, 11/1/15, 505,000 522,044
Callable 11/1/06 @ 100
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------- -----
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED
Lawrence, Water & Sewer System Revenue, 5.20%, 11/01/16, $ 250,000 $ 256,250
Callable 11/1/06 @100
Leavenworth County, School District #453, GO, 4.70%, 9/1/11, 400,000 406,000
Callable 9/1/07 @ 100, FGIC
Leavenworth County, School District #453, GO, 4.80%, 9/1/12, 460,000 466,900
Callable 9/1/07 @ 100, FGIC
Leavenworth County, School District #469, GO, 4.60%, 9/1/05, FSA 340,000 352,325
Leavenworth Hospital Revenue, 6.13%, 4/1/15, Callable 4/1/07 @ 102 415,000 432,118
Leavenworth, GO, Series B, 5.05%, 9/1/00 210,000 215,513
Leawood, GO, Series A, 5.00%, 9/1/00 300,000 307,875
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 @ 100 250,000 266,563
Leawood, GO, Series A, 5.35%, 9/1/10, Callable 9/1/06 @ 100 250,000 266,563
Leawood, GO, Series A, 5.40%, 9/1/11, Callable 9/1/06 @ 100 375,000 399,844
Leawood, GO, Series B, 5.00%, 9/1/10, Callable 9/1/06 @ 100 400,000 417,500
Lyon County, Hospital Revenue, 5.20%, 2/1/02, Callable 8/1/02 @ 100 250,000 250,000
Lyon County, School District #253, GO, 5.60%, 10/1/10, Callable 650,000 684,937
10/1/03 @102
Manhattan, Commercial Development, 11.00%, 7/1/16 1,000,000 1,730,000
Manhattan, GO, 5.40%, 11/1/16, Callable 11/1/04 @ 100 405,000 418,669
Manhattan, GO, Series 189, 5.85%, 11/1/02, Callable 11/1/01 @ 100 250,000 265,313
Marion County, School District #411, GO, 5.30%, 4/1/13, Callable 660,000 685,575
4/1/03 @ 101.5
McPherson County, School District #400, GO, 5.20%, 12/1/10, 250,000 263,125
Callable 12/1/05 @ 100, FGIC
McPherson County, School District #400, GO, 5.25%, 12/1/12, 250,000 262,188
Callable 12/1/05 @ 100, FGIC
McPherson, Electric Utility Revenue, 5.55%, 3/1/09, Callable 550,000 558,250
3/1/00 @ 100, AMBAC
McPherson, GO, Series 116, 5.00%, 11/1/06, Callable 11/1/99 @ 500,000 504,520
100, AMBAC
Meade, Industrial Revenue, 6.50%, 10/1/06 1,000,000 1,149,999
Miami County, School District #367, GO, 5.00%, 9/1/16, Callable 900,000 901,125
9/1/08 @ 100, FGIC
Miami County, School District #368, GO, 6.50%, 12/1/05, 500,000 541,249
Callable 6/1/02 @ 100, AMBAC
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------- -----
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED
Miami County, School District #416, GO, 6.00%, 9/1/02, Callable $250,000 $260,000
9/1/00 @ 100, AMBAC
Miami County, School District, GO, Series A, 5.85%, 9/1/13, 550,000 605,687
Prerefunded 9/1/04 @ 100, AMBAC
Montgomery County, School District #447, GO, 5.45%, 9/1/15, 260,000 270,725
Callable 9/1/06 @ 100
Montgomery County, School District #447, GO, 5.50%, 9/1/17, 250,000 260,000
Callable 9/1/06 @ 100
Nemaha County, School District #441, GO, 5.40%, 3/1/02, 250,000 259,375
Callable 3/1/01 @ 100, AMBAC
Nemaha County, School District #441, GO, 5.75%, 3/1/07, 250,000 259,063
Callable 3/1/01 @ 100, AMBAC
Neosho County, School District #413, GO, 5.65%, 9/1/01 260,000 273,000
Newton, Wastewater Treatment System Revenue, 5.75%, 3/1/99 110,000 110,935
Newton, Wastewater Treatment System Revenue, 6.00%, 3/1/00 115,000 118,594
Newton, Wastewater Treatment System Revenue, 6.20%, 3/1/01 120,000 126,600
Newton, Wastewater Treatment System Revenue, 6.40%, 3/1/02 130,000 140,238
Newton, Wastewater Treatment System Revenue, 4.90%, 3/1/12, 700,000 703,500
Callable 3/1/07 @ 100
Olathe, GO, Series 184, 4.60%, 10/1/99 275,000 278,957
Olathe, Health Facility Revenue, 5.20%, 9/1/17, Callable 9/1/05 @100 1,000,000 1,020,000
Olathe, Labette County Mortgage Loan Revenue, 7.15%, 2/1/15, 45,000 48,094
Callable 8/1/01 @ 103, GNMA
Olathe, Multifamily Housing Revenue, 5.50%, 6/1/04, FNMA 340,000 359,550
Olathe, Water & Sewer System Revenue, 5.20%, 7/1/12, Callable 1,170,000 1,215,337
7/1/06 @ 100, AMBAC
Osage County, School District #434 GO, 4.75%, 9/1/14, Callable 2,215,000 2,209,463
9/1/03 @100.5, FSA
Osborne, GO, Series 1992, 5.50%, 12/1/01, Callable 12/1/98 @ 100 135,000 135,167
Osborne, GO, Series 1992, 5.60%, 12/1/02, Callable 12/1/98 @ 100 140,000 140,172
Osborne, GO, Series 1992, 5.70%, 12/1/03, Callable 12/1/98 @ 100 150,000 150,185
Osborne, GO, Series 1992, 5.80%, 12/1/04, Callable 12/1/98 @ 100 155,000 155,188
Ottawa, University Educational Revenue, 5.60%, 10/1/18, 2,000,000 1,997,500
Callable 10/1/08 @100, A2 Equivalent Rating
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------- -----
<S> <C> <C>
MUNICIPAL BONDS, CONTINUED
Ottawa, Waterworks & Electric System Revenue, 6.15%, 12/1/00, MBIA $250,000 $263,125
Ottawa, Waterworks & Electric System Revenue, 6.25%, 12/1/01, MBIA 250,000 269,063
Pawnee County, School District #495, GO, 5.10%, 9/1/04, Callable 255,000 269,344
9/1/03 @ 100, FSA
Phillips County, School District #325, GO, 5.20%, 9/1/03, Callable 100,000 105,125
9/1/02 @ 100
Phillips County, School District #325, GO, 5.60%, 9/1/07, Callable 155,000 165,075
9/1/02 @ 100
Pottawatomie County, School District #320, GO, Series 1990, 500,000 539,999
6.60%, 10/1/02, Callable 10/1/01 @ 100, AMBAC
Pottawatomie County, School District #322, GO, 4.95%, 10/01/12, 700,000 709,625
Callable 10/1/04 @100
Pratt, Electric System Revenue, 6.60%, 11/1/07, AMBAC 250,000 290,625
Pratt, Electric System Revenue, 4.95%, 11/1/10, Callable 11/1/05 635,000 657,225
@101, AMBAC
Pratt, Electric System Revenue, 5.00%, 11/1/11, Callable 11/1/05 415,000 427,969
@101, AMBAC
Pratt, Electric System Revenue, 6.00%, 11/1/12, Prerefunded 250,000 261,875
11/1/00 @ 100, AMBAC
Reno County Mortgage, Series B, 8.70%, 9/1/11, Callable 9/1/01 105,000 112,481
@ 103
Rice County, Union School District #444, 5.08%, 9/1/14, Callable 755,000 766,325
9/1/07 @ 100
Rural Water Finance Authority, District #13 Revenue Bond, Series 400,000 412,000
F, 5.90%, 6/1/11, Callable 6/1/01 @ 100
Sabetha, Electric System, Series A, 4.50%, 9/1/13, Callable 1,650,000 1,639,688
9/1/07 @100
Salina Hospital Revenue, 5.30%, 10/1/13, Callable 10/1/03 @100, 750,000 775,312
AMBAC
Salina, Water & Sewer Revenue, 5.00%, 9/1/07, Callable 9/1/02 330,000 338,663
@ 100, MBIA
Scott City, Water System, Series A, 5.25%, 9/1/04 130,000 135,363
Scott City, Water System, Series A, 5.40%, 9/1/05 140,000 145,950
Scott City, Water System, Series A, 5.60%, 9/1/06 140,000 145,600
Scott City, Water System, Series A, 5.70%, 9/1/07 150,000 156,750
Scott City, Water System, Series A, 5.80%, 9/1/08 145,000 151,525
Scott County, School District #466, GO, Series 1993, 5.38%, 685,000 702,125
9/1/06, Callable 9/1/01 @ 100
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
KANSAS TAX-ESEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
MUNICIPAL BONDS, CONTINUED AMOUNT/SHARES VALUE
------------- ------
<S> <C> <C>
Sedgwick & Shawnee Counties Single Family Revenue, 4.90%, $785,000 $801,681
6/1/16
Sedgwick & Shawnee Counties, Series B-II, 7.80%, 5/1/14, 130,000 143,488
Callable 11/1/04 @ 103, GNMA
Sedgwick & Shawnee Counties, Single Family Revenue, Series 395,000 457,706
B-1, 8.05%, 5/1/14, GNMA
Sedgwick & Shawnee Single Family Revenue, 5.50%, 6/1/29 1,250,000 1,410,938
Sedgwick County Family Mortgage Series A-2, 6.50%, 12/1/16, 900,000 974,250
Callable 12/1/07 @ 105, GNMA
Sedgwick County, GO, 4.70%, 9/1/12, Callable 9/1/98 @100, 840,000 847,350
FGIC
Sedgwick County, Mortgage Loan Revenue, Series A, 7.30%, 455,000 482,869
12/1/12, Callable 9/1/01 @ 103, GNMA
Sedgwick County, Public Building, 5.00%, 8/1/16, Callable 8/1/04 400,000 403,000
@100
Sedgwick County, School District #260, GO, 4.65%, 10/1/11, 1,220,000 1,235,250
Callable 10/1/08 @ 100, AMBAC
Sedgwick County, School District #262, GO, Valley Center, 100,000 100,000
5.10%, 11/1/98, MBIA
Sedgwick County, School District #266, GO, 5.25%, 9/1/13, 650,000 668,688
Callable 9/1/02 @ 101, FGIC
Seward County, GO, Series B, 6.00%, 8/15/08, Callable 8/15/01 @ 250,000 261,875
100, AMBAC
Seward County, GO, Series B, 6.00%, 8/15/13, Callable 8/15/01 @ 250,000 261,875
100, AMBAC
Seward County, School District #480, GO, 5.00%, 9/1/14, Callable 1,640,000 1,662,550
9/1/06 @100, FSA
Seward County, School District #480, GO, Series 1992, 5.00%, 500,000 500,550
12/1/00, Callable 12/1/98 @ 100, MBIA
Seward County, School District #483, Kismet-Plains, GO, 5.20%, 600,000 625,500
10/1/12, Callable 10/1/06 @ 100
Seward County, Single Family Mortgage Revenue, Series B, 235,000 251,450
8.00%, 5/1/11, Callable 11/1/01 @ 103
Shawnee County, GO, 4.70%, 9/1/11, Continuously Callable 9/1/08 1,945,000 1,976,606
@ 100
Shawnee County, GO, Series B, 5.50%, 9/1/11, Prerefunded 9/1/03 250,000 268,125
@ 100
Shawnee County, GO, Series B, 5.50%, 9/1/09, Prerefunded 9/1/03 250,000 268,125
@ 100
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
MUNICIPAL BONDS, CONTINUED AMOUNT/SHARES VALUE
------------- ------
<S> <C> <C>
Shawnee County, GO, Series C, 5.60%, 9/1/04, Callable 9/1/02 @ $500,000 $528,750
100
Shawnee County, Health Care Revenue, 5.15%, 8/15/10, Callable 500,000 519,375
8/15/05 @ 100, FSA
Shawnee County, School District #345, GO, 5.75%, 9/1/11, 250,000 273,750
Prerefunded 9/1/04 @ 100, MBIA
Shawnee County, School District #345, GO, 4.75%, 9/1/11, 1,590,000 1,621,800
Callable 9/1/04 @ 101.5, MBIA
Shawnee County, School District #437, Auburn-Washburn, GO, 250,000 259,063
5.25%, 9/1/11, Callable 9/1/04 @ 100, AMBAC
Shawnee County, School District #437, Auburn-Washburn, GO, 350,000 361,813
5.25%, 9/1/12, Callable 9/1/04 @ 100, AMBAC
Shawnee County, School District #437, Auburn-Washburn, GO, 700,000 752,499
Series 1992, 6.25%, 3/1/03, Callable 3/1/02 @ 100, FGIC
Shawnee County, School District #501, GO, 4.35%, 2/1/06, 1,515,000 1,543,406
Noncallable
Shawnee County, School District #501, GO, 4.38%, 2/1/07, 1,675,000 1,704,313
Callable 2/1/06 @ 100
State Department of Transportation, Highway Revenue, 5.38%, 1,000,000 1,028,749
3/1/13, Callable 3/1/03 @ 102
State Department of Transportation, Highway Revenue, Series 250,000 262,188
1993, 5.00%, 3/1/04, Callable 3/1/03 @ 102
State Development Finance Authority Revenue, 5.13%, 6/1/06, 250,000 263,750
Callable 6/1/03 @ 102, AMBAC
State Development Finance Authority Revenue, 5.50%, 5/1/14, 1,000,000 1,053,749
Callable 5/1/07 @ 100
State Development Finance Authority Revenue, Department of 250,000 260,313
Corrections, El Dorado, Project L. 5.63%, 2/1/03, Callable 2/1/00 @ 102, MBIA
State Development Finance Authority Revenue, Project K-II, 500,000 516,250
5.50%, 10/1/10, Callable 10/1/01 @ 101
State Development Finance Authority Revenue, Project K-II, 500,000 516,875
5.60%, 10/1/11, Callable 10/1/01 @ 101
State Development Finance Authority Revenue, Series J, 5.40%, 500,000 526,250
4/1/10, Callable 4/1/05 @ 100
State Development Finance Authority, Health Facilities Revenue, 500,000 523,125
Hays Medical Center Inc., 5.38%, 11/15/16, Callable 11/15/06 @
102, MBIA
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
MUNICIPAL BONDS, CONTINUED AMOUNT/SHARES VALUE
------------- ------
<S> <C> <C>
State Development Finance Authority, Health Facilities Revenue, $500,000 $523,750
Hays Medical Center Inc., 5.50%, 11/15/17, Callable 11/15/07 @
100, MBIA
State Development Finance Authority, Health Facilities Revenue, 475,000 510,625
Stormont Health Care, 5.40%, 11/15/05, MBIA
State Development Finance Authority, Health Facilities Revenue, 500,000 542,500
Stormont Health Care, 5.75%, 11/15/10, Callable 11/15/06 @ 100,
MBIA
State Development Finance Authority, Health Facilities Revenue, 500,000 543,749
Stormont Health Care, 5.80%, 11/15/16, Callable 11/15/06 @ 100,
MBIA
State Development Financial Authority , Health Facilities 500,000 528,750
Revenue, 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 260,000 276,250
9/1/03 @ 102, AMBAC
Sumner County, Bridge Improvement, GO, Series 1992, 6.00%, 435,000 460,556
11/1/04, Callable 11/1/01 @ 100, AMBAC
Sumner County, Bridge Improvement, GO, Series 1992, 6.00%, 250,000 263,750
11/1/05, Callable 11/1/01 @ 100, AMBAC
Sumner County, School District #357, Belle Plaine, GO, 5.55%, 375,000 392,344
9/1/13, Callable 9/1/03 @ 100
Thomas County, School District #315, GO, Series 1993, 4.20%, 150,000 152,438
9/1/01, FSA
Thomas County, School District #315, GO, Series 1993, 4.30%, 160,000 163,600
9/1/02, FSA
Thomas County, School District #315, GO, Series 1993, 4.40%, 165,000 169,331
9/1/03, FSA
Thomas County, School District #315, GO, Series 1993, 4.60%, 175,000 180,688
9/1/04, Callable 9/1/03 @ 100 FSA
Topeka, GO, Series A, 5.50%, 8/15/16, Callable 8/15/01 @ 101 500,000 518,125
Topeka, GO, Series C, 5.50%, 8/15/05, Callable 8/15/99 @ 101 250,000 255,338
Topeka, Hospital Revenue, 6.75%, 11/15/00, MBIA 500,000 531,875
Wellington, Water & Sewer Revenue, 5.15%, 5/1/18, Callable 1,000,000 1,012,500
5/1/08 @ 100, AMBAC
Wichita, GO, 4.70%, 9/1/12, Callable 9/1/04 @ 101 565,000 567,825
Wichita, GO, Series 746, 5.30%, 9/1/12, Callable 9/1/04 @ 100 750,000 781,875
Wichita, Hospital Revenue, 6.00%, 7/1/04, Callable 6/8/98 @ 100 807,000 863,490
Wichita, Multifamily Housing Revenue, 5.90%, 12/1/16, Callable 660,000 697,125
12/1/05 @ 102
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
MUNICIPAL BONDS, CONTINUED AMOUNT/SHARES VALUE
------------- -------
<S> <C> <C>
Wichita, Single Family Mortgage Revenue, Series A, 7.10%, $ 235,000 $ 252,331
9/1/09, Callable 3/1/03 @ 103
Wichita, Water & Sewer Revenue, 4.70%, 10/1/12, Callable 2,000,000 1,995,000
10/1/05 @101, FGIC
Wichita, Water & Sewer Utilities Revenue, 4.75%, 10/1/08, 405,000 418,163
Callable 10/1/04 @ 101, FGIC
Wichita, Water & Sewer Utilities Revenue, 4.88%, 10/1/09, 900,000 932,625
Callable 10/1/04 @ 101, FGIC
Winfield, Sales Tax Revenue, 5.10%, 9/1/06, Callable 9/1/03 @ 100,000 104,000
100
Winfield, Sales Tax Revenue, 5.25%, 9/1/07, Callable 9/1/03 @ 100,000 104,250
100
Winfield, Sales Tax Revenue, 5.40%, 9/1/08, Callable 9/1/03 @ 100,000 104,000
100
Wyandotte County, School District #203, Piper, GO, Series 1992, 295,000 307,906
5.90%, 9/1/04, Callable 9/1/01 @ 100
Wyandotte County, School District #203, Piper, GO, Series 1992, 500,000 530,625
6.60%, 9/1/13, Callable 9/1/01 @ 100
Wyandotte County/Kansas City Government Ref, GO, 4.30%, 1,500,000 1,528,125
9/1/05, Noncallable, AMBAC ---------
129,235,072
-----------
PUERTO RICO (2.1%)
Puerto Rico Commonwealth, Highway & Transportation Authority, 500,000 518,750
Highway Revenue, Series X, 5.00%, 7/1/02
Puerto Rico, Electric Power Authority Revenue, Series S, 6.13%, 1,000,000 1,162,500
7/1/09, MBIA-IBC
Puerto Rico, Electric Power Authority Revenue, Series Z, 5.50%, 1,000,000 1,061,250
7/1/14, Callable 7/1/05 @ 102, MBIA-IBC ---------
2,742,500
---------
TOTAL MUNICIPAL BONDS (COST $127,636,354) 132,229,022
-----------
</TABLE>
<PAGE>
INTRUST FUNDS TRUST
KANSAS TAX-EXEMPT BOND FUND
Schedule of Portfolio Investments
October 31, 1998
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT/SHARES VALUE
------------- ------
<S> <C> <C>
INVESTMENT COMPANIES (1.1%)
Federated Tax-Exempt Money Market 1,502,285 $ 1,502,285
---------
Total Investment Companies (Cost $1,502,285) 1,502,285
---------
Total (Cost $129,138,639) (a) - 100.6% $ 133,731,307
===========
</TABLE>
- ------------
Percentages indicated are based on net assets of $132,917,464.
(a) Represents cost for federal tax and financial reporting purposes and
differs from market value by net unrealized appreciation of securities
as follows:
Unrealized appreciation $ 4,615,992
Unrealized depreciation (23,324)
-----------
Net unrealized appreciation $ 4,592,668
(b) When-issued security
AMBAC = Insured by American Municipal Bond Assurance Corporation
COP = Certificate of Participation
FGIC = Insured by Federal Guarantee Insurance Corporation
FHA = Insured by Federal Housing Authority
FSA = Insured by Federal Security Assurance
GNMA = Insured by Ginnie Mae
GO = General Obligation
IBC = Insured Bond Certificate
MBIA = Insured by Municipal Bond Insurance Association
SO = Special Obligation
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1998
- --------------------------------------------------------------------------------
1. ORGANIZATION:
The INTRUST Funds Trust (the "Trust") was established as a Delaware business
trust and is registered under the Investment Company Act of 1940, as amended
(the "1940 Act"), as an open-end, diversified management investment company. The
Trust currently consists of six active funds. 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 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 Funds' investment objectives are as follows:
FUND OBJECTIVE
---- ---------
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.
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.
Intermediate Bond Fund Seeks a high level of current income consistent
with managing for total return by investing in
fixed income securities.
Stock Fund Seeks long-term capital appreciation by investing
in common and preferred stocks issued by companies
with large market capitalization.
International Multi-Manager
Stock Fund Seeks long-term capital appreciation by investing
in equity securities of issuers based outside the
United States. The International Multi-Manager
Stock 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.
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 generally
ranging from 1 to 15 years.
The International Multi-Manager Stock 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 Portfolio owned by the Fund
as of October 31, 1998 was approximately 5.40%. 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.
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
Portfolio") of the SEI Tax-Exempt Trust (the "SEI
<PAGE>
INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1998
- --------------------------------------------------------------------------------
Trust") was reorganized into the Fund as transacted by (a) the tax-free transfer
of all the assets and liabilities of the SEI Portfolio to the Fund in exchange
for shares of the Fund; (b) the distribution of the Fund's shares to
shareholders of the SEI Portfolio; and (c) the termination of the SEI Portfolio
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.
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 principles. The preparation of financial
statements requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses for the period.
Actual results could differ from those estimates.
SECURITY VALUATION
Securities of the Money Market Fund are valued utilizing the amortized cost
method permitted in accordance with Rule 2a-7 under the 1940 Act. Under the
amortized cost method, discount or premium is amortized on a constant basis to
the maturity of the security. Equity securities held by a Fund are valued at the
last reported sales price on the securities exchange or in the principal over-
the-counter market in which such securities are traded, as of the close of
business on the day the securities are being valued or, lacking any sales, at
the last available bid price. Portfolio securities which are primarily traded on
foreign exchanges may be valued with the assistance of a pricing service and are
generally valued at the preceding closing values of such securities on their
respective exchanges, except that when an occurrence subsequent to the time a
foreign security is valued is likely to have changed such value, then the fair
value of those securities will be determined by consideration of other factors
by or under the direction of the Board of Trustees. Debt securities held by a
Fund generally are valued based on mean prices. Short-term debt investments
having maturities of 60 days or less are valued at amortized cost, which
approximates market value. Restricted securities and securities for which market
quotations are not readily available are valued at fair value using pricing
methods approved by the Trust's Board of Trustees. Securities may be valued by
independent pricing services, approved by the Trust's Board of Trustees, which
use prices provided by market makers or estimates of market value obtained from
yield data relating to instruments or securities with similar characteristics.
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. At the time a Fund makes the commitment to purchase a
security on a when-issued basis, the Fund records the transaction and reflects
the value of the security in determining net asset value. 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. The Funds held one such
security as of October 31, 1998.
<PAGE>
INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1998
- --------------------------------------------------------------------------------
SECURITY TRANSACTIONS AND RELATED INCOME
The Funds, other than the International Multi-Manager Stock Fund, record
security transactions on a trade date basis. Net realized gains or losses from
sales of securities are determined on the specific identification cost method.
Interest income is recorded on the accrual basis and includes, where applicable,
the amortization of premiums or the accretion of discounts. Dividend income is
recorded on the ex-dividend date.
The International Multi-Manager Stock Fund records its share of the investment
income, dividend income, income from securities lending, expenses, and
unrealized and realized gains and losses of the Portfolio of the AMR Investment
Services Trust on a daily basis. The income, expenses, and gains and losses are
allocated daily to investors in the Portfolio based upon their investments in
the Portfolio. Such investments are adjusted based on daily market values.
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 or another
appropriate basis. In addition to accruing its own expenses, the International
Multi-Manager Stock Fund records its proportionate share of the expenses of the
Portfolio of the AMR Investment Services Trust on a daily basis.
ORGANIZATION COSTS
Costs incurred in connection with the organization and initial registration of
the Funds 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. 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.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions 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. Distributions from net investment income for
the Stock Fund and the International Multi-Manager Stock Fund are declared and
paid at least once annually. Distributions 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 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.
<PAGE>
INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1998
- --------------------------------------------------------------------------------
As of October 31, 1998, the following reclassifications have been made to
increase (decrease) such accounts with offsetting adjustments made to capital:
<TABLE>
<CAPTION>
Accumulated Accumulated Undistributed
Undistributed Net Realized
Net Investment Gains (Losses)
Income on Investments
--------------- ---------------
<S> <C> <C>
Money Market Fund $ 356 $ (356)
Short-Term Bond Fund (1,470) 1,470
Intermediate Bond Fund (3,046) 3,046
Stock Fund 8 (8)
International Multi-Manager Stock Fund (145,229) (3,508,562)
Kansas Tax-Exempt Bond Fund 2,267 (2,267)
</TABLE>
FEDERAL INCOME TAXES
The Trust treats each Fund as a separate entity for federal income tax purposes.
Each Fund intends to continue to qualify as a regulated investment company by
complying with the provisions available to certain investment companies as
defined in applicable sections of the Internal Revenue Code, and to make
distributions from net investment income and from net realized capital gains
sufficient to relieve it from all, or substantially all, federal income taxes.
3. INVESTMENT ADVISORY, ADMINISTRATION, 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, Co. The Stock Fund
The Trust and BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services
(the "Administrator") are parties to an administration agreement under which the
Administrator provides services for a fee that is computed daily and paid
monthly, at an annual rate of 0.20% of each Fund's average daily net assets,
except for 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,
administration services were provided by SEI Fund Management at an annual rate
of 0.15%.
<PAGE>
INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1998
- --------------------------------------------------------------------------------
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. As provided under the Plan, the Trust will pay
the Distributor up to an annual rate of 0.25% of the average daily net assets of
the Funds.
Other financial organizations ("Service Organizations") also may provide
administrative services for the Funds, such as maintaining shareholder accounts
and records. The Funds may pay fees to Service Organizations in amounts up to an
annual rate of 0.08% of the daily net asset value of the Funds' shares owned by
shareholders with whom the Service Organizations has a servicing relationship.
The Institutional Premium Class may pay additional fees up to 0.50% of the daily
net asset value of the Funds' shares owned by shareholders with whom the Service
Organization has a servicing relationship.
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.
Additional information regarding related party transactions is as follows for
the year ended October 31, 1998:
<TABLE>
<CAPTION>
Money
Market Short-Term Intermediate
Fund Bond Fund Bond Fund
---------- ---------- ------------
<S> <C> <C> <C>
Investment Advisory Fees Waived $ 54,443 $122,390 $ 54,941
12b-1 Fees Waived 128,957 145,702 124,867
</TABLE>
<TABLE>
<CAPTION>
International Kansas
Multi-Manager Tax-Exempt
Stock Fund Stock Fund Bond Fund
---------- ---------- ---------
<S> <C> <C> <C>
Investment Advisory Fees Waived $120,690 $ 28,239 $360,231
Administration Fees Waived --- --- 120,076
12b-1 Fees Waived 232,097 141,189 300,392
Shareholder Services Fees Waived --- --- 96,062
Custody Fees Waived --- --- 24,013
Reimbursed Fees --- --- 42,748
</TABLE>
4. 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 year ended October 31,
1998, 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.
<PAGE>
INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1998
- --------------------------------------------------------------------------------
5. SECURITIES TRANSACTIONS:
The cost of security purchases and the proceeds from the sale of securities
(excluding short-term securities) during the year ended October 31, 1998 were as
follows:
<TABLE>
<CAPTION>
Purchases Sales
--------- -----
<S> <C> <C>
Short-Term Bond Fund $ 36,969,571 $31,407,619
Intermediate Bond Fund 25,404,180 18,934,885
Stock Fund 103,278,595 91,930,387
Kansas Tax-Exempt Bond Fund 42,369,424 16,080,670
</TABLE>
6. CONCENTRATION OF CREDIT RISK:
The Kansas Tax-Exempt Bond Fund invests in debt instruments of municipal
issuers, primarily Kansas. The issuers' abilities to meet their obligations may
be affected by economic developments in Kansas or a region of the state. The
Fund invests in securities which include revenue bonds, tax-exempt commercial
paper, tax and revenue anticipation notes, and general obligation bonds.
The Money Market Fund will concentrate its investments in obligations issued by
the banking industry. Concentration in this context means the investment of
more than 25% of the Money Market Fund's assets in such industry. However, for
temporary defensive purposes during periods when the Adviser believes that
maintaining this concentration may be inconsistent with the best interest of
shareholders, the Money Market Fund will not maintain this concentration. The
Money Market Fund's policy of concentration in the banking industry increases
the Fund's exposure to market conditions prevailing in that industry.
7. FEDERAL INCOME TAX INFORMATION:
During the year ended October 31, 1998, the following Funds declared long-term
capital gain distributions in the following amounts:
Fund Amount
- ---- ------
Kansas Tax-Exempt Bond Fund $332,132
At October 31, 1998, the following Fund had a capital loss carryforward which is
available to offset future capital gains, if any:
<TABLE>
<CAPTION>
Fund Amount Expires
- ---- ------ -------
<S> <C> <C>
Short-Term Bond Fund $ 35,915 2005
International Multi-Manager Stock Fund 1,877,336 2006
</TABLE>
To the extent that these carryforwards are used to offset future capital gains,
it is probable that the offset gains will not be distributed to shareholders.
8. ELIGIBLE DISTRIBUTIONS (UNAUDITED):
For the taxable year ended October 31, 1998, 12.14% of the income dividends paid
by the Stock Fund qualify for the dividends received deduction available to
corporations.
<PAGE>
INTRUST FUNDS TRUST
Financial Highlights
<TABLE>
<CAPTION>
Money Market Fund
-----------------------------------------
For the Year January 23,
ended 1997 to
October 31, 1998 October 31,
1997 (a)
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, beginning of period $ 1.000 $ 1.000
------------------ ----------------
Investment Activities:
Net investment income 0.050 0.038
------------------ ----------------
Total from Investment Activities 0.050 0.038
------------------ ----------------
Distributions:
Net investment income (0.050) (0.038)
------------------ ----------------
Total Distributions (0.050) (0.038)
------------------ ----------------
Net change in net asset value per share --- ---
------------------ ----------------
Net Asset Value, end of period $ 1.000 $ 1.000
=================== ================
Total Return 5.13% 3.86% (b)
Ratios/Supplemental Data:
Net assets, end of year (in thousands) $ 50,746 $ 55,566
Ratios to average net assets:
Expenses 0.67% 0.71% (c)
Net investment income 5.04% 4.92% (c)
Expenses* 1.03% 1.11% (c)
Net investment income* 4.68% 4.52% (c)
</TABLE>
______________________
* During the period, certain fees were voluntarily reduced and/ or
reimbursed. If such voluntary fee reductions and/ or reimbursements had
not occurred, the ratio would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
Financial Highlights
<TABLE>
<CAPTION>
Short-Term Bond Fund
------------------------------------------------------------
For the Year January 21,
ended 1997 to
October 31, 1998 October 31,
1997 (a)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, beginning of period $ 10.08 $ 10.00
------------------------ ------------------------
Investment Activities:
Net investment income 0.57 0.42
Net realized and unrealized gain (loss) from investments 0.12 0.08
------------------------ ------------------------
Total from Investment Activities 0.69 0.50
------------------------ ------------------------
Distributions:
Net investment income (0.57) (0.42)
------------------------ ------------------------
Total Distributions (0.57) (0.42)
------------------------ ------------------------
Net change in net asset value per share 0.12 0.08
------------------------ ------------------------
Net Asset Value, end of period $ 10.20 $ 10.08
======================== ========================
Total Return 6.96% 5.13% (b)
Ratios/Supplemental Data:
Net assets, end of year (in thousands) $ 61,371 $ 52,682
Ratios to average net assets:
Expenses 0.67% 0.78% (c)
Net investment income 5.59% 5.48% (c)
Expenses* 1.13% 1.25% (c)
Net investment income* 5.13% 5.01% (c)
Portfolio turnover rate 55.75% 84.41% (b)
</TABLE>
____________________________
* During the period, certain fees were voluntarily reduced and/ or
reimbursed. If such voluntary fee reductions and/ or reimbursements had
not occurred, the ratio would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
Financial Highlights
<TABLE>
<CAPTION>
Stock Fund
------------------------------------------------------------
For the Year January 21,
ended 1997 to
October 31, 1998 October 31,
1997 (a)
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, beginning of period $ 11.31 $ 10.00
----------------------- -----------------------
Investment Activities:
Net investment income 0.07 0.04
Net realized and unrealized gain (loss) from investments 1.28 1.27
----------------------- -----------------------
Total from Investment Activities 1.35 1.31
----------------------- -----------------------
Distributions:
Net investment income (0.05) ---
Net realized gains from investments (0.54) ---
------------------------ -----------------------
Total Distributions (0.59) ---
----------------------- -----------------------
Net change in net asset value per share 0.76 1.31
----------------------- -----------------------
Net Asset Value, end of period $ 12.07 $ 11.31
======================= =======================
Total Return 12.49% 13.10% (b)
Ratios/Supplemental Data:
Net assets, end of year (in thousands) $ 100,524 $ 79,834
Ratios to average net assets:
Expenses 1.32% 1.41% (c)
Net investment income 0.66% 0.63% (c)
Expenses* 1.70% 1.80% (c)
Net investment income* 0.28% 0.24% (c)
Portfolio turnover rate 102.36% 71.76% (b)
</TABLE>
____________________________
* During the period, certain fees were voluntarily reduced and/ or
reimbursed. If such voluntary fee reductions and/ or reimbursements had
not occurred, the ratio would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
Financial Highlights
<TABLE>
<CAPTION>
Intermediate Bond Fund
---------------------------------------------------------
For the Year January 21,
ended 1997 to
October 31, 1998 October 31,
1997 (a)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, beginning of period $ 10.21 $ 10.00
---------------------- -----------------------
Investment Activities:
Net investment income 0.59 0.45
Net realized and unrealized gain (loss) from investments 0.22 0.21
---------------------- -----------------------
Total from Investment Activities 0.81 0.66
---------------------- -----------------------
Distributions:
Net investment income (0.59) (0.45)
---------------------- -----------------------
Total Distributions (0.59) (0.45)
---------------------- -----------------------
Net change in net asset value per share 0.22 0.21
---------------------- -----------------------
Net Asset Value, end of period $ 10.43 $ 10.21
====================== =======================
Total Return 8.16% 6.77% (b)
Ratios/Supplemental Data:
Net assets, end of year (in thousands) $ 52,993 $ 46,492
Ratios to average net assets:
Expenses 0.78% 0.90% (c)
Net investment income 5.74% 5.83% (c)
Expenses* 1.14% 1.27% (c)
Net investment income* 5.38% 5.46% (c)
Portfolio turnover rate 39.07% 108.73% (b)
</TABLE>
_________________________
* During the period, certain fees were voluntarily reduced and/ or
reimbursed. If such voluntary fee reductions and/ or reimbursements had
not occurred, the ratio would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
Financial Highlights
<TABLE>
<CAPTION>
International Multi-Manager Stock Fund
-------------------------------------------------
For the Year January 20,
ended 1997 to
October 31, 1998 October 31,
1997 (a)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, beginning of period $ 10.97 $ 10.00
-------------------- --------------------
Investment Activities:
Net investment income 0.18 0.11
Net realized and unrealized gain (loss) from investments 0.21 0.86
-------------------- --------------------
Total from Investment Activities 0.39 0.97
-------------------- --------------------
Distributions:
Net investment income (0.13) ---
Net realized gains from investments (0.09) ---
-------------------- --------------------
Total Distributions (0.22) ---
-------------------- --------------------
Net change in net asset value per share 0.17 0.97
-------------------- --------------------
Net Asset Value, end of period $ 11.14 $ 10.97
==================== ====================
Total Return 3.61% 9.70% (b)
Ratios/Supplemental Data:
Net assets, end of year (in thousands) $ 55,505 $ 41,135
Ratios to average net assets:
Expenses 1.29% 1.42% (c)
Net investment income 1.55% 1.91% (c)
Expenses* 1.59% 1.75% (c)
Net investment income* 1.25% 1.58% (c)
</TABLE>
- ----------------------------
* During the period, certain fees were voluntarily reduced and/ or
reimbursed. If such voluntary fee reductions and/ or reimbursements had not
occurred, the ratio would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
Financial Highlights
<TABLE>
<CAPTION>
KANSAS TAX-EXEMPT BOND FUND
-----------------------------------------------------------------------------------
FOR THE YEAR SEPTEMBER 1, YEARS ENDED AUGUST 31, (A)
ENDED 1997 TO
OCTOBER 31, 1998 OCTOBER 31, 1997 1996 1995 1994
1997 (B)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 10.73 $ 10.66 $ 10.51 $ 10.63 $ 10.47 $ 10.91
------------ ---------- ------- ------ ------ ------
Investment Activities:
Net investment income 0.53 0.09 0.55 0.56 0.57 0.57
Net realized and unrealized gain (loss)
from investments 0.20 0.07 0.19 (0.12) 0.16 (0.42)
------------ ---------- ------- ------ ------ ------
Total from Investment Activities 0.73 0.16 0.74 0.44 0.73 0.15
------------ ---------- ------- ------ ------ ------
Distributions:
Net investment income (0.53) (0.09) (0.59) (0.56) (0.57) (0.57)
Net realized gains from investments (0.03) --- --- --- --- (0.02)
------------ ---------- ------- ------ ------ ------
Total Distributions (0.56) (0.09) (0.59) (0.56) (0.57) (0.59)
------------ ---------- ------- ------ ------ ------
Net change in net asset value per share 0.17 0.07 0.15 (0.12) 0.16 (0.44)
------------ ---------- ------- ------ ------ ------
Net Asset Value, end of period $ 10.90 $ 10.73 $ 10.66 $ 10.51 $ 10.63 $ 10.47
============ ========== ======= ====== ====== ======
Total Return 7.01% 1.51% (c) 7.27% 4.23% 7.23% 1.41%
Ratios/Supplemental Data:
Net assets, end of year (in thousands) $ 132,917 $ 103,616 $ 96,780 $72,065 $65,834 $62,346
Ratios to average net assets:
Expenses 0.21% 0.21% (d) 0.21% 0.21% 0.21% 0.21%
Net investment income 4.90% 5.10% (d) 5.20% 5.31% 5.47% 5.36%
Expenses* 1.00% 0.82% (d) 0.62% 0.51% 0.51% 0.54%
Net investment income* 4.11% 4.49% (d) 4.79% 5.01% 5.17% 5.03%
Portfolio turnover rate 13.51% 5.87% (c) 8.78% 12.71% 17.60% 10.57%
</TABLE>
___________________
* During the period, certain fees were voluntarily reduced and/or
reimbursed. If such voluntary fee reductions and/or reimbursements had not
occurred, the ratio 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 from August 31 to October
31.
(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"), including
the schedule of investments, as of October 31, 1998, and the related statement
of operations, the statements of changes in net assets, and the financial
highlights for each of the periods indicated therein. 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 confirmation of investments owned as of
October 31, 1998, 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, 1998, the
results of its operations, the changes in its net assets, and the financial
highlights for each of the periods indicated therein, in conformity with
generally accepted accounting principles.
Ernst & Young LLP
Dallas, Texas
December 17, 1998
<PAGE>
Dear Fellow Shareholder:
We are pleased to report to you on the performance of the American
AAdvantage International Equity Fund for the twelve months ended October 31,
1998.
International Equity Fund
Market Recap:
Despite solid foreign market returns over the past twelve months, there was
a marked disparity among different countries, regions and time periods, as
markets were quite volatile over this time period. Much of the first part of
this time period was marked by a struggling Japan trying to cope with slumping
economic growth, disappointing stimulus packages and uncertainty regarding the
region's economic crisis. However, conditions in Europe could not have been
better as European markets were propelled by the euphoria of European Monetary
Union (EMU) and lower interest rates which has driven investors into the equity
markets. This disparity lasted through the first half of 1998, before a number
of negative global events shook investors' confidence worldwide and sent markets
around the world dramatically lower. With the Russian government defaulting on
their bonds and spreading contagion concerns to Latin America, investors
worldwide departed more risky, less liquid securities and asset classes. This
near panic environment subsided and most markets bounced back in October, as
many of the events that transpired in the third quarter were either temporarily
rectified or resolved. As the dust settled on the past twelve months, the
ranking of the markets that comprise the EAFE Index (the Morgan Stanley Capital
International Europe, AustralAsia and Far East Index) shows markets located in
Europe generally outperformed markets located in Asia.
The underweighting of Japan continues to be the top factor in adding value
for the Fund while other country weightings were also positive for the Fund.
The Japanese market represents over 20% of the EAFE Index and was down almost
15% for the past twelve months. In addition to successfully underweighting the
Japanese market, the stocks that were selected added value compared to the
stocks in the Japanese Index. Many of these Japanese holdings were large global
companies, which have undertaken the necessary restructurings to compete in the
global marketplace. The Fund continues to underweight Japan entering into the
new fiscal year.
The primary reason for the underperformance by the Fund for the past twelve
months was stock selection, especially in the larger markets of Germany and the
United Kingdom. While past time periods have displayed an outperformance of
value securities compared to growth securities, the past twelve months showed
just the opposite. The Fund focuses on buying and holding value securities
(securities with characteristics such as low price to earnings or price to book
ratios), while the securities that performed the best over the past twelve
months were large well known companies that are considered growth securities
(high price to earnings ratios). The gap between the EAFE Value Index and the
EAFE Growth Index was close to 4% during the period.
<PAGE>
As the new fiscal year begins, the United Kingdom remains the largest
weighting in the Fund. Additionally, the Fund has many small overweightings
among the more attractive smaller European markets, while significant
underweightings in Germany and Japan remain.
As always, we appreciate your confidence and support and we will continue
to strive to provide you with above average returns over the longer term.
Sincerely,
William F. Quinn
President
American AAdvantage Funds
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Statement of Assets and Liabilities
October 31, 1998
($ In thousands)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
ASSETS:
<S> <C>
Investments in securities at value (cost - $1,025,698) $ 1,116,306
Cash, including foreign currency.................................... 3,940
Unrealized appreciation on foreign currency contracts............... 267
Dividends and interest receivable................................... 2,550
Reclaims receivable................................................. 1,547
Receivable for investments sold..................................... 916
Deferred organization costs, net.................................... 5
--------------------
Total assets................................................ 1,125,531
--------------------
LIABILITIES:
Payable for investments purchased................................... 2,928
Payable upon return of securities loaned............................ 92,805
Management and investment advisory fees payable (Note 2)............ 930
Accrued organization costs.......................................... 5
Other liabilities................................................... 718
--------------------
Total liabilities........................................... 97,386
--------------------
Net assets applicable to investors' beneficial interests................ $ 1,028,145
====================
</TABLE>
See Notes to Financial Statements.
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Statement of Operations
Year Ended October 31, 1998
($ In thousands)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest income........................................... $ 3,264
Dividend income (net of foreign taxes of $900,000)........ 23,214
Income derived from securities lending, net............... 470
-----------------
Total investment income............................. 26,948
-----------------
EXPENSES:
Management and investment advisory
fees (Note 2)........................................... 4,226
Custodian fees............................................ 807
Professional fees......................................... 35
Other expenses............................................ 23
-----------------
Total expenses..................................... 5,091
-----------------
Net investment income............................................ 21,857
-----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments.......................... 35,803
Net realized loss on foreign currency
transactions........................................... (8,187)
Change in net unrealized appreciation of
investments............................................. 74,320
Change in net unrealized depreciation of foreign currency
contracts and translations............................. (94,242)
-----------------
Net gain on investments............................ 7,694
-----------------
Net increase in net assets resulting from
operations.................................................... $ 29,551
=================
</TABLE>
See Notes to Financial Statements.
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
Year Ended Year Ended
October 31, October 31,
1998 1997
------------------ ----------------
($ In thousands)
<S> <C> <C>
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income.............................. $ 21,857 $ 15,411
Net realized gain on investments and
foreign currency transactions................... 27,616 21,331
Change in net unrealized appreciation
(depreciation) of investments and
foreign currency translations................... (19,922) 57,105
------------------ ----------------
Net increase in net assets
resulting from operations............... 29,551 93,847
------------------ ----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Contributions...................................... 678,114 397,499
Withdrawals........................................ (441,193) (134,169)
----------------- ----------------
Net increase in net assets resulting
from transactions in investors'
beneficial interests.................... 236,921 263,330
----------------- ----------------
Net increase in net assets............................... 266,472 357,177
----------------- ----------------
NET ASSETS:
Beginning of period................................... 761,673 404,496
----------------- ----------------
End of period......................................... $ 1,028,145 $ 761,673
================= ================
- ------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS:
- ------------------------------------------------------------------------------------------------------
RATIOS:
Expenses to average net assets...................... 0.53% 0.57%
Net investment income to average net assets......... 2.29% 2.55%
Portfolio turnover rate.............................. 24% 15%
</TABLE>
See Notes to Financial Statements.
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
October 31, 1998
- --------------------------------------------------------------------------------
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. Beneficial interests in the Trust are divided into
separate series, each having distinct investment objectives and policies. The
AMR Investment Services International Equity Portfolio (the "Portfolio") is one
of the portfolios of the Trust. The Trust commenced active operations on
November 1, 1995.
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. 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.
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
October 31, 1998
- --------------------------------------------------------------------------------
Forward Foreign Currency Contracts
The Portfolio may enter into forward foreign currency contracts to hedge
the exchange rate risk on investment transactions or to hedge the value of
portfolio securities denominated in foreign currencies. Forward foreign
currency contracts are valued at the forward exchange rate prevailing on the day
of valuation.
Federal Income and Excise Taxes
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.
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.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimated.
2. TRANSACTIONS WITH AFFILIATES
Management Agreement
The Trust and the Manager are parties to a Management Agreement which
obligates the Manager to provide or oversee the provision of all administrative,
investment advisory and portfolio management services. Investment assets of the
Portfolio are managed by multiple investment advisers which have entered into
separate investment advisory agreements with the Manager. As compensation for
performing the duties required under the Management Agreement, the Manager
receives from the Portfolio an annualized fee equal to .10% of the average daily
net assets of the Portfolio plus amounts paid by the Manager to the investment
advisors hired by the Manager to direct investment activities of the Portfolio.
Management fees are paid as follows (dollars in thousands):
<TABLE>
<CAPTION>
Amount paid to Net Amount paid to
Management Fee Rate Management Fee Investment Advisors Manager
------------------- -------------- ------------------- -------
<S> <C> <C> <C>
.25% - .90% $4,226 $2,987 $1,239
</TABLE>
Other
Certain officers or trustees of the Trust are also officers of the Manager
or American. The Trust makes no direct payments to its officers. Unaffiliated
trustees and their spouses are provided free unlimited air transportation on
American. However, the Trust 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 year ended October 31, 1998, the cost of air transportation was
not material to the Portfolio.
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
October 31, 1998
- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS
The aggregate cost of purchases and proceeds from sales of investments,
other than short-term obligations, for the year ended October 31, 1998 were
$509,821,000 and $207,212,000, respectively.
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, 1998, 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>
1,509 Deutsche Mark 11/2/98 $ 911 $ 3
1,884 French Franc 11/30/98 339 -
51,598 Hong Kong Dollar 2/26/99 6,625 (223)
62,621 Hong Kong Dollar 4/30/99 8,003 (21)
3,786 Japanese Yen 11/4/98 32 -
1,000 Japanese Yen 4/13/99 9,660 (22)
94 Pound Sterling 11/4/98 158 -
7,700 Pound Sterling 11/9/98 12,888 (201)
9,102 Pound Sterling 11/30/98 15,218 (622)
---------------------- -----------------------
Total contracts to deliver
(Receivable amount $52,748) $53,834 $(1,086)
====================== =======================
Contracts to Receive
- --------------------
(amounts in thousands)
2,856 Australian Dollar 11/9/98 $ 1,777 $ (49)
25,948 Deutsche Mark 11/30/98 15,690 1,099
5,060 French Franc 11/2/98 911 (4)
51,598 Hong Kong Dollar 2/26/99 6,625 1
460 Japanese Yen 11/4/98 4 -
1,414 Pound Sterling 11/4/98 2,368 (7)
9 Pound Sterling 11/5/98 14 -
6,100 Pound Sterling 11/9/98 10,210 314
11 Singapore Dollar 11/3/98 7 -
122 Singapore Dollar 11/4/98 75 (1)
15 Singapore Dollar 11/5/98 9 -
---------------------- -----------------------
Total contracts to receive
(Payable amount $36,337) $37,690 $ 1,353
====================== =======================
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
October 31, 1998
- --------------------------------------------------------------------------------
5. SECURITIES LENDING
The Portfolio participates in a securities lending program under which
securities are loaned to selected institutional investors. 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. The Portfolio may
bear the risk of delay in recovery of, or even loss of rights in, the securities
loaned should the borrower of securities fail financially. The Portfolio the
interest on the collateral less any fees and rebates paid to agents and
transferees of securities. The Portfolio also continues to receive interest on
the securities loaned, and any gain or loss in the market price of securities
loaned that may occur during the term of the loan will be for the account of the
Portfolio.
At October 31,1998, securities with a market value of approximately
$91,368,762 were loaned by the Portfolio. The Portfolio received cash
collateral which they invested in the AMR Investments Strategic Cash Business
Trust (the "Business Trust") totaling $92,804,911. In addition, the custodian
held non-cash collateral totaling $1,026,705. The Manager serves as Trustee and
as investment adviser to the Business Trust. The Manager receives from the
Business Trust an annualized fee equal to 0.10% of the average daily net assets
of the Business Trust.
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments
October 31, 1998
($ In thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Shares Value
------ -----
<S> <C> <C>
AUSTRALIA COMMON STOCKS - 3.48%
Australia & New Zealand Banking Group 1,267,152 $ 7,215
Brambles Industries, Limited 197,400 4,310
Foster's Brewing Group, Limited 820,400 2,006
Mayne Nickless, Limited 965,000 4,432
News Corporation Preferred Rights 345,000 2,065
News Corporation, Limited 210,000 1,428
Pioneer International, Limited 2,554,675 5,278
QBE Insurance Group, Limited 1,413,428 5,559
RGC, Limited 550,000 832
WMC, Limited 785,000 2,652
----------------------
TOTAL AUSTRALIA COMMON STOCKS 35,777
----------------------
AUSTRIA - 0.84%
PREFERRED STOCKS - 0.28%
Bank Austria AG 54,000 2,938
----------------------
TOTAL AUSTRIA PREFERRED STOCKS 2,938
----------------------
COMMON STOCKS - 0.56%
Boehler-Uddeholm 60,185 2,836
Evn Energie-Versorgung Niederoesterreich AG 7,960 1,134
Mayr-Melnhof Karton AG 16,000 742
VA Technologie AG 11,000 1,020
----------------------
TOTAL AUSTRIA COMMON STOCKS 5,732
----------------------
TOTAL AUSTRIA 8,670
----------------------
BELGIUM COMMON STOCKS - 0.64%
Electrabel SA 8,800 3,246
GIB Holdings, Limited NPV 29,300 1,402
Solvay Et Cie, NPV 25,000 1,961
----------------------
TOTAL BELGIUM COMMON STOCKS 6,609
----------------------
CANADA COMMON STOCKS - 3.87%
Alcan Aluminum, Limited 105,000 2,630
Anderson Exploration, Limited 170,000 1,725
Canadian Imperial Bank of Commerce 160,570 3,181
IMASCO, Limited 238,000 4,462
Methanex Corporation 275,000 1,600
Newbridge Network 100,000 2,049
Noranda, Incorporated 254,875 3,757
Oshawa Group, Limited 66,000 1,397
Potash Corporation of Saskatchewan 69,623 4,793
Ranger Oil, Limited 289,010 1,822
Renaissance Energy 399,450 5,358
Transcanada Pipelines, Limited 117,000 1,792
Telus Corporation 256,650 5,268
----------------------
TOTAL CANADA COMMON STOCKS 39,834
----------------------
</TABLE>
Page 1
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments, continued
October 31, 1998
($ In thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Shares Value
------ -----
<S> <C> <C>
DENMARK COMMON STOCKS - 0.93%
BG Bank 32,820 $ 1,903
Den Danske Bank 21,800 2,960
Teledanmark AS, "B" 16,700 1,820
Unidanmark AS, "A" 38,400 2,928
----------------------
TOTAL DENMARK COMMON STOCKS 9,611
----------------------
FINLAND COMMON STOCKS - 2.82%
Enso-Gutzeit OY, "R" 212,000 1,641
Huhtamaki Group I Free 27,800 932
Merita Bank, Limited 1,021,550 5,474
Metra OY, "B" 194,295 3,394
Metsa-Serla OY, "B" 100,000 756
Nokia OY,"A" 87,000 7,917
Rauma OY 121,467 1,434
UPM-Kymmene OY 310,760 7,432
----------------------
TOTAL FINLAND COMMON STOCKS 28,980
----------------------
FRANCE COMMON STOCKS - 9.95%
Alcatel Alsthom CG 58,150 6,478
Associated General de France 30,100 1,685
Axa SA 35,542 4,017
Banque Nationale de Paris 97,525 6,176
BIC SA 31,739 1,953
Bongrain SA 2,124 896
CSF (Thomson) 164,573 5,716
Elf Aquitaine SA 131,400 15,205
France Telecom SA 43,910 3,062
Groupe Danone 37,700 9,966
La Farge-Coppee SA 67,183 6,867
Pechiney SA 51,800 1,780
Pernod-Ricard 64,782 4,313
Rhone-Poulenc, "A" 141,200 6,454
Saint Gobain 22,098 3,269
Schneider SA 26,000 1,543
Scor SA 21,010 1,205
Seita 97,102 5,766
Societe Generale 32,319 4,275
Total Petroleum Company, "B" 85,500 9,863
Usinor Sacilor 156,520 1,789
----------------------
TOTAL FRANCE COMMON STOCKS 102,278
----------------------
GERMANY - 6.13%
PREFERRED STOCKS - 0.80%
Dyckerhoff AG 14,099 4,342
Herlitz AG 23,947 766
Volkswagen AG 65,700 3,086
----------------------
TOTAL GERMANY PREFERRED STOCKS 8,194
----------------------
</TABLE>
Page 2
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments, continued
October 31, 1998
($ In thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS - 5.33%
BASF AG 178,600 $ 7,570
BAYER AG 164,825 6,698
BBS Kraftfahrzeugtechnik 1,526 313
Buderus AG 7,475 3,110
Commerzbank AG 134,500 4,044
Deutsche Bank AG 36,000 2,239
Dragerwerk AG 145,980 2,380
Hoechst AG 42,100 1,759
Karstadt AG 4,000 2,041
Muenchener Rueckversicherung AG Warrants 7,345 2,244
Muenchener Rueckversicherung AG, DEM 10 1,400 641
Muenchener Rueckversicherung AG, DEM 10A 293 133
Muenchener Rueckversicherung AG, DEM 5 293 13
RWE AG 125,619 6,811
Varta AG 1,291 193
Veba AG 137,653 7,688
Viag AG 7,440 5,054
Volkswagen AG 25,000 1,879
Volkswagen AG, NPV 700 33
----------------------
TOTAL GERMANY COMMON STOCKS 54,843
----------------------
TOTAL GERMANY 63,037
----------------------
HONG KONG COMMON STOCKS - 3.56%
Asia Satellite Telecommunications Holdings, Limited 275,000 486
Cheung Kong Holdings, Limited 655,000 4,482
Hang Lung Development Company, Limited 3,155,000 3,584
Hong Kong Electric Holdings 793,400 2,909
Hutchinson Whampoa, Limited 600,000 4,299
Hysan Development Company, Limited 49,600 1
National Mutual of Asia, Limited 1,700,000 1,163
New World Development Company, Limited 1,164,000 2,705
South China Morning Post 7,886,000 4,225
Swire Pacific, Class "A" 1,991,500 10,567
Swire Pacific, Class "B" 632,500 523
Television Broadcast 625,000 1,662
----------------------
TOTAL HONG KONG COMMON STOCKS 36,606
----------------------
IRELAND COMMON STOCKS - 0.76%
Greencore Group, PLC 889,960 3,477
Jefferson Smurfit, PLC 2,614,872 4,322
----------------------
TOTAL IRELAND COMMON STOCKS 7,799
----------------------
ITALY - 3.38%
PREFERRED STOCKS - 0.22%
Concessioni E Contruzioni Autostrade 525,000 2,306
----------------------
TOTAL ITALY PREFERRED STOCKS 2,306
----------------------
</TABLE>
Page 3
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments, continued
October 31, 1998
($ In thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Shares Value
------ -----
<S> <C> <C>
COMMON STOCKS - 3.16%
Burgo (Cartiere) SPA 119,420 $ 729
Eni SPA 941,380 5,603
Fiat SPA 775,000 2,223
Instituto Nazionale Delle Assicurazioni 1,000,000 2,756
Mediaset 589,800 3,739
STET Telecom Italia 2,965,800 17,397
---------------
TOTAL ITALY COMMON STOCKS 32,447
---------------
TOTAL ITALY 34,753
---------------
JAPAN COMMON STOCKS - 11.40%
Aisin Seiki Company, Limited 301,000 3,151
Aoyama Trading Company 69,100 1,705
Best Denki Company 200,000 1,373
Canon, Incorporated 55,000 1,041
Central Japan Railway 388 1,991
Chudenko Corporation 32,000 735
Daibiru Corporation 240,000 1,679
Daiwa House Industries 112,000 1,264
Eisai Company 126,000 1,977
Fuji Photo Film Company 191,000 6,999
Fujisawa Pharmaceutical Company 95,000 1,121
Hitachi Zosen Corporation 212,000 322
Hitachi, Limited 542,000 2,758
Japan Tobacco 950 7,965
Kanamoto Company 310,000 1,397
KAO Corporation 369,000 7,473
Koito Manufacturing Company 424,000 1,728
Kokusai Electric 469,000 2,302
Kyocera Corporation 108,000 4,773
Makita Corporation 105,000 1,110
Matsushita Electric Industrial Company 164,000 2,408
Matsuzakaya Company 500,000 2,678
MOS Food Services 359,000 5,299
Namco 239,600 5,274
NEC Corporation 80,000 592
Nichicon Corporation 293,000 3,181
Nichido Fire & Marine Insurance 397,000 2,048
Nintendo Company, Limited 74,900 6,338
Nippon Telephone & Telegraph Company 700 5,479
Okumura Corporation 700,000 3,034
Ono Pharmaceutical 65,000 1,941
Promise Company, Limited 138,100 6,246
Shionogi & Company 341,000 2,514
Showa Sangyo Company 796,000 1,571
Sony Corporation 36,200 2,299
Sumitomo Marine & Fire Insurance 447,000 2,616
TDK Corporation 24,000 1,582
</TABLE>
Page 4
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments, continued
October 31, 1998
($ In thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Shares Value
------ -----
<S> <C> <C>
Toyo Seikan Kaisha 200,000 $ 3,596
Yamanouchi Pharmaceutical 61,000 1,748
Yamato Kogyo Company, Limited 120,000 546
Yodogawa Steel Works 319,000 1,273
Yoshitomi Pharmaceutical 185,000 2,056
----------------
TOTAL JAPAN COMMON STOCKS 117,183
----------------
MALAYSIA COMMON STOCKS - 0.13%
Golden Hope Plantations BHD 2,603,000 1,274
Hicom Holdings BHD 370,863 98
----------------
TOTAL MALAYSIA COMMON STOCKS 1,372
----------------
MEXICO COMMON STOCKS - 0.57%
Alfa, SA 436,000 1,163
Consorcio Grupo Dina Sa De C V 590,000 885
Grupo Mexico SA 1,047,300 2,659
Industrias Penoles 215,000 656
Vitro Sa 335,000 483
----------------
TOTAL MEXICO COMMON STOCKS 5,846
----------------
NETHERLANDS COMMON STOCKS - 6.17%
ABN AMRO Holdings NV 313,165 5,869
Akzo Nobel NV 294,205 11,436
Buhrmann NV 46,408 832
CSM NV 16,550 815
Fortis Amev NV 51,654 3,355
Hollandsche Beton Groep NV 339,630 4,583
Ing Groep NV 244,769 11,847
Kon KPN NV 131,125 5,097
Koninklijke Bijenkorf Beheer NV 17,400 1,543
Philips Electronics 219,221 11,667
TNT Post Groep NV 129,410 3,464
Unilever NV 40,000 2,968
----------------
TOTAL NETHERLANDS COMMON STOCKS 63,476
----------------
NEW ZEALAND COMMON STOCKS - 0.98%
Brierley Investments, Limited 1,753,762 399
Carter Holt Harvey, Limited 605,889 494
Fisher & Paykel, Limited 880,000 2,609
Fletcher Challenge Building 2,564,979 3,395
Fletcher Challenge Forest 2,778,284 941
Fletcher Challenge Paper 765,000 486
Lion Nathan, Limited 679,600 1,781
----------------
TOTAL NEW ZEALAND COMMON STOCKS 10,105
----------------
NORWAY COMMON STOCKS - 1.48%
Den Norsk Bank, Series A 270,000 949
Kvaerner Industries AS, Class"A" 108,419 2,338
Kvaerner Industries AS, Class "B" 18,000 339
</TABLE>
Page 5
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments, continued
October 31, 1998
($ In thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Shares Value
------ -----
<S> <C> <C>
Norsk Hydro AS 60,000 $ 2,604
Nycomed AS, Series B 953,855 6,793
Saga Petroleum, Series B Free 110,175 1,390
Unitor AS 80,000 803
------------------
TOTAL NORWAY COMMON STOCK 15,216
------------------
PORTUGUAL COMMON STOCKS - 0.01%
Cimpor Ciment 700 24
------------------
TOTAL PORTUGUAL COMMON STOCKS 24
------------------
SINGAPORE COMMON STOCKS - 1.20%
Development Bank of Singapore 1,052,870 6,596
Hong Kong Land 1,580,847 2,245
Inchcape Berhad 325,000 112
Inchcape Motors 325,000 275
Singapore Finance, Limited 387,000 250
Singapore Press 105,300 905
United Overseas Bank 410,000 1,926
------------------
TOTAL SINGAPORE COMMON STOCK 12,309
------------------
SPAIN COMMON STOCKS - 2.92%
Banco Popular Espanol 28,000 1,726
Banco Santander SA 229,969 4,205
Iberdrola SA 587,457 9,471
Repsol SA (BR) 37,000 1,854
Telefonica de Espana 283,140 12,761
------------------
TOTAL SPAIN COMMON STOCKS 30,017
------------------
SOUTH KOREA COMMON STOCKS - 0.14%
Korea Electric Power Corporation 80,860 1,440
------------------
TOTAL SOUTH KOREA COMMON STOCKS 1,440
------------------
SWEDEN COMMON STOCKS - 3.52%
Assidoman AB 56,000 1,060
Astra AB, "B" Free 55,200 865
Autoliv Incorporated 125,000 4,158
Electrolux AB, "B" 475,075 7,141
Esselte AB, Class "A" 2,000 26
Esselte AB, Class "B" 17,000 248
Foreningssparbk 204,800 5,541
Granges AB 15,000 196
Nordbanken AS 550,000 3,293
Pharmacia & Upjohn, Incorporated 15,400 786
SKF AB, "B" Free 80,000 916
Stora Kopparsbergs Bergslags, "A" 122,100 1,343
Stora Kopparsbergs Bergslags, "B" 25,800 281
Svedala Industries, "A" Free 90,000 1,416
Svenska Cellulosa, "B" Free 225,400 5,277
Volvo AB 170,000 3,665
------------------
TOTAL SWEDEN COMMON STOCK 36,212
------------------
</TABLE>
Page 6
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments, continued
October 31, 1998
($ In thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Shares Value
------ -----
<S> <C> <C>
SWITZERLAND COMMON STOCKS - 6.94%
ABB AG 2,690 $ 3,222
Cie Fin Richemont 5,820 7,737
Forbo Holding AG 3,280 1,356
Holderbank Financial Glarus-B 3,650 4,068
Nestle SA 8,546 18,176
Novartis AG 5,007 9,022
Saurer AG 3,360 1,985
Schindler Holding AG (BR) 1,160 1,570
Schweitz Ruckversiche 3,291 7,330
Sig Schweitz Industries AG 12,004 8,067
Sulzer AG 6,598 3,801
SwissCom AG 100 34
UBS AG 5,665 1,554
Zurich Allied AG 5,700 3,464
------------------
TOTAL SWITZERLAND COMMON STOCK 71,386
------------------
UNITED KINGDOM COMMON STOCKS - 22.10%
Aggreko, PLC 502,977 1,272
Albert Fisher Group, PLC 262,500 33
Allied Domecq, PLC 627,274 5,778
Allied Zurich 407,062 4,840
Arcadia Group 41,875 184
Arriva 205,000 1,267
Associated British Foods Group, PLC 27,172 255
Bank of Scotland 361,844 3,933
BG, PLC 1,301,216 8,531
Billiton 1,072,976 2,632
Blue Circle Industries 455,000 2,484
BOC Group 204,582 3,005
British American Tobacco Industries, PLC 506,902 4,557
British Energy, PLC 300,000 2,934
British Telecommunications 784,400 10,141
BTR, PLC 4,431,262 7,755
Bunzl, PLC 814,100 3,763
Burmah Castro, PLC 369,950 5,576
Coats Viyella, PLC 1,695,330 880
Commercial Union, PLC 577,890 9,160
Cookson Group, PLC 2,091,155 4,378
Cortaulds Textiles, PLC 150,000 362
Danka Business Systems, PLC 495,000 622
Debenhams Retail 83,750 541
Diageo 297,690 3,216
English China Claylord Group 423,110 1,169
Express Dairies 250,000 542
Fairview Holdings, PLC 260,495 357
General Electric 435,000 3,479
Great Universal Stores 242,100 2,603
Hanson, PLC 1,054,385 7,425
</TABLE>
Page 7
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments, continued
October 31, 1998
($ In thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Shares Value
------ -----
<S> <C> <C>
Hillsdown Holdings, PLC 1,264,530 $ 1,800
Hyder, PLC 201,840 2,772
Imperial Chemical Industries, PLC 312,000 2,803
Imperial Tobacco Group 197,600 2,015
Inchcape, PLC 300,000 517
Laporte, PLC 578,513 5,464
Lex Service 350,000 2,098
Lloyds TSB Group, PLC 426,770 5,271
Lonrho 387,125 2,107
Lonrho Africa 243,625 253
Lucasvarity, PLC 610,000 2,084
Medeva, PLC 3,122,053 6,379
National Grid Group, PLC 255,000 1,747
National Power, PLC 50,000 435
National Westminster Bank, PLC 607,037 10,258
Next, PLC 190,000 1,607
Northern Foods, PLC 1,000,000 2,713
PowerGen, PLC 310,400 4,393
Premier Farnell, PLC 452,500 1,269
Racal Electronics, PLC 394,604 1,791
Reckitt & Colman, PLC 398,954 6,902
RMC Group 301,850 4,297
Rolls Royce, PLC 189,873 701
Royal & Sun Alliance Insurance Group 319,900 2,930
Safeway, PLC 509,677 2,561
Salvesen (Christian), PLC 502,977 750
Scapa Group 525,000 967
Shell Transportation & Trading Company, PLC 535,000 3,234
Storehouse 980,000 2,872
Tate & Lyle, PLC 705,800 4,196
Terranova Foods, PLC 457,425 927
Tesco, PLC 1,031,457 2,911
Thames Water Group, PLC 173,983 3,228
TI Group, PLC 703,850 4,196
Tomkins 1,549,688 7,176
Transport Development Group 28,260 114
Unilever, PLC 213,900 2,149
Vickers Group 693,333 1,939
Williams, PLC 352,570 2,201
Wolseley 631,700 4,332
WPP Group, PLC 1,438,600 7,155
-----------------
TOTAL UNITED KINGDOM 227,188
-----------------
UNITED STATES - 14.65%
FOREIGN SECURITIES DENOMINATED IN U.S. DOLLARS - 1.70%
G P Batteries International, Limited 436,000 959
Kookmin Bank GDR Reg 82,796 308
Kookmin Bank GDR, 144a (Note B) 79,021 294
</TABLE>
Page 8
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments, continued
October 31, 1998
($ In thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Shares Value
------ -----
<S> <C> <C>
Jardine Matheson Holding, Limited 871,000 $ 2,439
Jardine Strategic 1,824,000 2,918
Jardine Strategic 20,000 30
New Holland NV 160,000 2,020
Nova Corporation 23,400 320
Sk Telecom, Limited 164,351 1,695
Stolt-Nielsen SA, "B" 38,000 461
Telmex ADR 113,000 5,968
------------------
TOTAL FOREIGN SECURITIES DENOMINATED IN U.S. DOLLARS 17,412
------------------
Par
Amount
---------------
UNITED STATES GOVERNMENT AND AGENCY OBLIGATIONS (Note A) - 2.86%
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 0.17%
Discount Note, 5.56%, Due 12/15/1998 $ 1,745,000 1,745
------------------
Total Federal National Mortgage Association 1,745
------------------
U.S. TREASURY BILLS - 2.69%
Due 11/5/1998 7,000 7
Due 11/27/1998 57,000 57
Due 12/10/1998 14,401,000 14,323
Due 12/17/1998 126,000 125
Due 1/14/1999 3,276,000 3,244
Due 2/4/1999 4,652,000 4,601
Due 3/4/1999 1,578,000 1,556
Due 3/11/1999 172,000 170
Due 4/1/1999 3,644,000 3,583
------------------
TOTAL U.S. TREASURY BILLS 27,666
------------------
TOTAL UNITED STATES GOVERNMENT AND AGENCY OBLIGATIONS 29,411
------------------
SHORT TERM INVESTMENTS (Note A) - 10.09%
Shares
AMR Investments Strategic Cash Business Trust 92,805,000 92,805
Par
Amount
---------------
International Business Machines, 5.01%, Due 11/2/1998 $ 5,000,000 4,999
State Street Bank Euro 5,951,000 5,951
------------------
TOTAL SHORT TERM INVESTMENTS 103,755
------------------
TOTAL UNITED STATES 150,578
------------------
</TABLE>
Page 9
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments, continued
October 31, 1998
($ In thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Shares Value
------ -----
<S> <C> <C>
TOTAL INVESTMENTS - 108.57% (Cost $1,025,698) 1,116,306
-----------------
LIABILITIES, NET OF OTHER ASSETS - (8.57%) (88,161)
------------------
TOTAL NET ASSETS - 100% $ 1,028,145
==================
</TABLE>
Based on the cost of investments of $1,025,940,000 for federal income tax
purposes at October 31, 1998, the aggregate gross unrealized appreciation was
$184,460,000, the aggregate gross unrealized depreciation was $94,094,000, and
the net unrealized appreciation of investments was $90,366,000.
(A) Rates associated with short-term investments represent yield to maturity or
yield to next reset date.
(B) Security exempt from registration under Rule 144a of the Securities Act of
1933. These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At the period end, the value of
these securities amounted to $294 or 0.03% of net assets.
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)
GDR - Global Depository Receipt (United States)
NPV - No Par Value (Belgium)
NV - Company (Netherlands, United States)
OY - Company (Finland)
Reg - Registered (United States)
PLC - Public Limited Corporation (United Kingdom)
SA - Company (Belgium, France, Mexico, Spain, Switzerland, United States )
SPA - Company (Italy)
See Notes to Financial Statements.
Page 10
<PAGE>
AMR Investment Services International Equity Portfolio
Industry Diversification
October 31, 1998
- ----------------------------------------------------------------------------
Percent of
Net Assets
--------------
Capital Goods ............................................... 7.10%
Consumer Durables ........................................... 3.16%
Consumer Non-Durables ....................................... 20.34%
Energy ...................................................... 12.01%
Finance ..................................................... 21.36%
Materials & Services ........................................ 22.23%
Technology .................................................. 5.33%
Transportation .............................................. 0.97%
Utilities ................................................... 3.12%
Fixed Income ................................................ 2.86%
Short-Term Investments ...................................... 10.09%
Other Assets (Liabilities)................................... (8.57%)
--------------
Net Assets .......................................... 100.00%
==============
See Notes to Financial Statements.
