<PAGE>
INTRUST Funds Trust
Annual Report
October 31, 1999
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>
- --------------------------------------------------------------------------------
INTRUST Family of Mutual Funds - October 31, 1999
To Our Shareholders:
We are pleased to present this annual report for the 12 months ended
October 31, 1999, a period that could best be summed up thusly: "What the Fed
giveth, the Fed taketh away."
Indeed, it was a time when the power of the Federal Reserve appeared to
rise to new heights. Not only did the Fed's decisions to ease or tighten credit
drive the direction of stocks and bonds, but Fed Chairman Alan Greenspan seemed
able to move markets simply by pronouncing his opinions on economic and
investment matters. For years, many investors have followed the maxim, "Never
fight the Fed." Never was this adage more true than during the last 12 months.
Throughout the period, financial markets around the world hung on every
word from Mr. Greenspan and other Fed governors, and both equities and fixed-
income securities were subject to sharp, and often violent swings, almost
without warning - especially when the Fed truly took action.
This frequent volatility underscored what we have been preaching for years,
that most investors' interests are best served by a widely diversified mix of
securities - in stocks and bonds, taking advantage of opportunities both
domestically and in overseas markets. Which is exactly the type of
diversification we offer at INTRUST.
What sets our INTRUST portfolio managers apart from many others is their
refusal to be blinded by short-term fads or the "news of the minute." Our
veteran money managers do not ignore secular trends or the utterings of the Fed,
but neither are they unduly influenced. They spend their long days committed to
their mandate: to find value in stocks and bonds and help our shareholders build
long-term wealth and meet short-term income needs.
Stocks: Index Gains Masked Broad Inconsistencies
When we opened our fiscal year on November 1, 1998, the stock market was
just climbing out from a difficult period. Equity investors stood bloodied from
a sharp decline that had begun in mid-July and had steadily pulled stocks down,
until they cratered nearly three months later. But by November, stocks had
regained their equilibrium and had begun an ascent that would maintain a
generally upward trend for much of the next 12 months.
In March, the Dow Jones Industrial Average closed above 10,000 for the
first time in its history, and later edged over the 11,000 mark. As we write
this report in early
<PAGE>
December, Nasdaq, buoyed by its arsenal of high-octane technology stocks, has
set a long string of records, while streaking to a gain of more than 60% for the
year to date in 1999.
Nonetheless, the rally hasn't extended to every corner of the investment
world. For all the hoopla about the Nasdaq's surge - and strong showings turned
in by the Dow and the S&P 500 - many stocks are significantly below their 52-
week highs, and not every sector has joined in the party. The international
scene hasn't inspired wholesale jubilation, either. While a rebound in Japanese
stock prices has been a pleasant surprise, other foreign markets have lagged.
All of which again proves the point that successful investing is a tough
business, one that requires high levels of expertise and dedication.
Bonds: Slammed By The Fed's About-Face
Just before the beginning of our fiscal year, the Federal Reserve acted
decisively to ensure adequate levels of liquidity - twice cutting the Fed Funds
rate - the short-term rate banks charge one another for overnight loans. As one
would expect from such moves, the fixed-income market rallied, and bonds of
nearly every stripe rose in price (rates and bond prices move in opposite
directions).
However, as 1999 dawned, Fed officials and other economists spoke of
possible inflationary pressures down the road. And as is its custom, the Fed
responded by twice raising rates. Just after our fiscal year ended, the Fed
tightened credit a third time. As a result, it was extremely difficult to post
a positive gain in fixed-income securities at most points of the yield curve -
with very short-term bonds and money market instruments being exceptions.
Outlook: Cautious Optimism
Perhaps "steady as she goes" is the best course of action in these unsteady
times. Many stock market leaders are overvalued by traditional fundamental
measures, and if these hot issues begin to lose steam, a serious market
correction is not out of the question. On the fixed-income side, bonds have
absorbed the Fed's rate hikes with no small measure of indigestion and
additional moves to tighten credit could do grave harm.
However, we see a number of positive factors on the horizon. Inflation
remains exceptionally benign, which promotes economic health and gives consumers
greater purchasing power; consumer spending is still the big engine driving the
U.S. economy. Wage pressures are surprisingly mild, which may help dissuade the
Fed from raising rates in the near future. And just this week, the Labor
Department reported that productivity, defined as the amount of output for each
hour of work, rose powerfully in the calendar third quarter. Strong
productivity bolsters the argument that technology may have forever altered the
economic landscape.
<PAGE>
We thank you for your continued support. If you have a question or need
information, please feel free to contact us at any time.
Sincerely,
John S. Maurer, Jr. David Bunstine
Senior Vice President & President
Chief Investment Officer INTRUST Funds Trust
INTRUST Bank, N.A.
This material is authorized for distribution only when preceded or accompanied
by a prospectus. INTRUST Bank provides investment advisory and other services
to the INTRUST Funds Trust and receives a fee for those services. The Funds are
distributed by BISYS Fund Services which is not affiliated with INTRUST Bank.
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 Sam Silver of AMR
Investment Services, Inc., subadvisor to the Fund. Mr. Silver has more than 12
years experience in the investment industry. He holds a B.S. in Business
Administration from the University of Kansas and an M.B.A. from the University
of Texas at Dallas.
Objectives. We seek to provide investors with current income, liquidity and
a stable net asset value of $1.00 per share./1/
Strategy. We invest in high-quality, short-term obligations such as
certificates of deposit, commercial paper issued by corporations, bankers'
acceptances, bank notes and medium-term notes.
At the start of the period, the Federal Reserve cut the Fed Funds rate (the
benchmark rate banks charge one another for overnight loans) to 4.75%. This
followed two previous cuts prior to the beginning of our fiscal year. Later in
the period, the Fed reversed direction and raised rates twice, followed by a
third rate hike less than a month after the period ended, with the current Fed
Funds target at 5.50%.
The Fed's initial action to ease credit was in response to concerns about a
global economic credit squeeze; the Fed was determined to ensure there was
plenty of liquidity in the U.S. market. The subsequent decisions to raise rates
were proactive measures designed to limit the harm of potential inflation down
the road.
Such a volatile interest-rate environment presents numerous challenges to
investors who operate on the short-term end of the yield curve, as we do.
Throughout the period, to serve the needs of our shareholders, we maintained a
large position in floating rate product, while keeping our average maturity
short of our benchmark, during the current, neutral-to-rising short-term
interest rate environment.
Performance. As of October 31, 1999, the Fund's 7-Day SEC yield was 5.20%.
/2/
The average maturity of the Fund's holdings was 42 days./3/
Over the course of the fiscal year, we tried to keep our maturity around 40
days, fluctuating in a fairly narrow range of 35-45 days.
Going forward, we intend to maintain a shorter-than-average maturity, based
on our belief that there may be a bias toward raising rates over the next six to
twelve months; a shorter duration will give us some flexibility in managing the
portfolio.
/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. 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 11 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 Iowa, and has more than 16 years of investment management
experience.
Objectives. We seek to provide as high a level of current income as is
consistent with our philosophy of maintaining liquidity and relative safety of
principal, by investing in investment-grade, short-term securities.
Strategy. It's not our style to try to guess the future direction of
interest rates. Our strategy is to practice fundamental security analysis to
find the most attractively priced, short-term securities available, and we
invest across all sectors of the fixed-income market. We also use a rigorous
cash flow valuation process and pay strict attention to the timely execution of
trades, which can have a significant impact on long-term total return.
As of October 31, 1999, the portfolio was invested in the following
sectors: Corporate Bonds/Medium-Term Senior Notes (30.4%), Collateralized
Mortgage Obligations (16.0%), U.S. Treasury Notes, Agency Debentures and Taxable
Municipal Bonds (38.2%), Asset-Backed Securities (11.2%) and Cash Equivalents
(4.2%). These securities maintained an average credit quality of AA1, with an
average maturity of 2.2 years./1/
Influenced by three Federal Reserve decisions during the period - one
decision to ease credit, followed by two decisions to tighten - interest rates
were unusually volatile. However, changes in interest rates don't fundamentally
affect` our decision-making process; we don't try to time the absolute level of
rates, nor do we make yield-curve bets. In virtually all respects, we are
"duration neutral" investors.
During the year, we continued to focus on security selection. We sold a
number of U.S. Treasury, agency and corporate holdings that we felt were fully
valued, and moved into alternative corporate and agency securities that offered
greater value. With these types of "credit quality swaps," for example, we might
look to sell an A-rated bond and move up to a AA-rated issue that offers a
similar yield spread.
Performance. For the 12 months ended October 31, 1999, the Fund produced a
total return of 2.35%./2/ In comparison, the Lehman Brothers 1-3 Year Government
Bond Index (the Fund's "benchmark") had a total return of 2.97%./3/
The mandate of this fund is principal preservation. We key in on solid,
high-quality portfolio selections, which is reflected in the Fund's AA rating.
Going forward, we will continue to search for the best opportunities in the
short-term market, to provide relatively high income to shareholders, while
maintaining high credit quality.
<PAGE>
SHORT-TERM BOND FUND
AVERAGE ANNUAL TOTAL RETURN (2)
Value of $10,000 Investment
<TABLE>
<CAPTION>
1/21/97 10/31/97 10/31/98 10/31/99
<S> <C> <C> <C> <C> <C>
Short-Term Bond Fund 10,000 10,513 11,248 11,512 Total Return
------------------------------------- ------------
Lehman Brothers 1-3 Year Government Index 10,000 10,546 11,322 11,658 2.97%
------------------------------------- ------------
</TABLE>
Average Annual Total Return as of 10/31/99
Short-Term Bond Fund
Inception Date 1/21/97
Since Inception 5.20%
1 Year 2.35%
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, 1999. 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. Without
waiver of fees, total return would have been lower. 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 Bond 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. Investors cannot invest directly
in an index.
<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 11 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 Iowa, and has more than 16 years of investment management experience.
Objectives. We seek to provide as high a level of current income as is
consistent with our philosophy of managing the Fund for total return and
investing primarily in high-quality fixed income securities.
Strategy. It's not our style to try to guess the future direction of
interest rates. Our strategy is to practice fundamental security analysis to
find the most attractively priced, short-term securities available, and we
invest across all sectors of the fixed-income market. We also use a rigorous
cash flow valuation process and pay strict attention to the timely execution of
trades, which can have a significant impact on long-term total return.
As of October 31, 1999, the portfolio was invested in the following
sectors: corporate bonds/medium-term senior notes (37.8%), asset-backed
securities (14.2%), collateralized mortgage obligations (11.9%), municipal
bonds, U.S. Government agency obligations and U.S. Government agency pass-
through securities (34.2%) and cash equivalents (1.9%). These securities
maintained an average credit quality of AA2, with an average maturity of 5.05
years./1/
Influenced by three Federal Reserve decisions during the period - one
decision to ease credit, followed by two decisions to tighten - interest rates
were unusually volatile. However, changes in interest rates don't fundamentally
affect our decision-making process. Our style is consistent: We don't try to
time interest-rate moves or makes bets on which position on the yield curve
might be most advantageous in the short run. Basically, we've stripped interest-
rate timing from our strategy; we try to stay indifferent to what the Federal
Reserve does and, instead, focus on individual security selection.
During the year, we sold a number of U.S. Treasury, agency and corporate
holdings that we felt were fully valued, and moved into alternative corporate
and agency securities that offered greater value. With these types of "credit
quality swaps," for example, we might look to sell an A-rated bond and move up
to a AA-rated issue that offers a similar yield spread.
Performance. For the 12 months ended October 31, 1999, the Fund produced a
total return of .11%./2/ In comparison, the Lehman Brothers Intermediate
Government/ Corporate Index (the Fund's "benchmark") had a total return of
.99%./3/
The mandate of this fund is principal preservation. We key in on solid,
high-quality portfolio selections, which is reflected in the Fund's AA rating.
Going forward, we will continue to search for the best opportunities in the
intermediate-term market, to provide relatively high income to shareholders,
while maintaining high credit quality.
<PAGE>
[GRAPH APPEARS HERE]
INTERMEDIATE BOND FUND
AVERAGE ANNUAL TOTAL RETURN (2)
<TABLE>
<S> <C> <C> <C> <C> <C>
1/21/97 10/31/97 10/31/98 10/31/99
Intermediate Bond Fund 10,000 10,677 11,552 11,563 Total
Return
----------------------------------------
Lehman Brothers Intermediate 10,000 10,681 11,604 11,719 0.99%
Government/Corporate Index
---------------------------------------- ----------
</TABLE>
Average Annual Total Return as of 10/31/99
Intermediate Bond Fund
Inception Date 1/21/97
Since Inception 5.37%
1 Year .11%
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, 1999. 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. Without
waiver of fees, total return would have been lower. 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. Investors
cannot invest directly in an index.
<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 34 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.
The Federal Reserve cut short-term interest rates three times in the fall
of 1998 (once just before our fiscal year began). This sparked a rally in
large-cap growth stocks, which carried into January 1999. Beginning in February,
large-cap value stocks, the type of equities we favor, came back into vogue and
recovered strongly into May. In June, we again saw a shift into the growth
arena, which put pressure on the prices of many stocks in our portfolio. This
was followed by a general decline in stock prices throughout much of the third
calendar quarter, through September. In the final month of our fiscal year,
equity markets again staged a rebound.
Obviously, there was a great deal of volatility in the market. For much of
the period, growth stocks reasserted their leadership. It was a difficult year
for large-cap value investors; the market favored higher-valued companies, the
kind of names that we generally find are priced too expensively. We continued to
adhere to our "reasonable price discipline," which cost us in terms of relative
performance.
Our approach is to be as fully invested as possible. As of October 31,
1999, 96.1% of the portfolio was invested in stocks, with 3.1% in cash or cash
equivalents./1/
Performance. For the 12 months ended October 31, 1999, the Fund produced a
total return of .56%./2/ In comparison, the S&P 500 Index (the Fund's
"benchmark") had a total return of 25.67%./3/
Throughout the period, we did not change our sector weightings
significantly. We emphasized sectors such as financials (insurance companies
more than banks), energy and cyclicals. When we had better relative performance
in the February-May period, our success was more the result of investors'
changing their focus from growth to value, than of our making fundamental
changes to the portfolio. Similarly, our lagging the market at other times was
not due to our shifting sectors, but rather to money moving out of areas we
thought attractive, and back into momentum growth stocks.
<PAGE>
STOCK FUND
AVERAGE ANNUAL TOTAL RETURN (2)
[GRAPH APPEARS HERE]
<TABLE>
1/21/97 10/31/97 10/31/98 10/31/99
<S> <C> <C> <C> <C> <C>
Stock Fund 10,000 11,310 12,723 12,793 Total
Return
---------------------------------------- ----------
S&P 500 Index 10,000 11,852 14,393 18,088 25.67%
---------------------------------------- ----------
</TABLE>
Average Annual Total Return as of 10/31/99
Stock Fund
Inception Date 1/21/97
Since Inception 9.28%
1 Year .56%
1 The composition of the Fund's holdings is subject to change.
2 For the period(s) ended October 31, 1999. 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.
Without waiver of fees, total return would have been lower. 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. Investors
cannot invest directly in an index.
<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 four subadvisors: Templeton Investment
Counsel, Inc. (Templeton), Hotchkis and Wiley, Lazard Asset Management (Lazard),
and Independence Investment Associates, Inc. (IIA).
In late February 1999, the fund manager and Morgan Stanley Asset
Management, Inc. mutually agreed that Morgan Stanley would no longer serve as a
subadvisor to the Fund. In March 1999, the fund manager added Lazard and IIA as
subadvisors.
Objective. The primary goal is to provide shareholders with long-term
capital appreciation by investing primarily in stocks of attractive companies in
markets outside the United States.
Strategy. Three of the portfolio subadvisors employ a value style of
investing, with distinct differences. Templeton combines value screens and
research with intensive fundamental analysis; Hotchkis and Wiley focuses on
earnings and dividend yields; and Lazard searches for undervalued stocks within
specific country and world indices and peer groups. These three subadvisors 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.
IIA adds value to the overall portfolio's performance by ranking each of
the portfolio's holdings, in aggregate, relative its weighting in the Morgan
Stanley Capital International Europe, Australasia and Far East (EAFE) index. IIA
thus identifies those stocks that constitute the underlying managers' "best
ideas" and purchases additional shares in those specific stocks.
As of October 31, 1999, the Fund's portfolio was entirely invested in the
AMR International Equity portfolio. The AMR portfolio was invested as follows:
Europe (62.9%), Asia (21.9%), Canada/Mexico (3.1%), cash and other assets
(12.1%)./2/
Performance. For the 12 months ended October 31, 1999, the Fund produced a
total return of 19.61%./3/ In comparison, the EAFE index (the Fund's
"benchmark") had a total return of 23.36%./4/
The Fund trailed its key benchmark due primarily to our marked
underweighting in Japanese securities. During the period, the Japanese market
provided an outstanding return in the neighborhood of 60%; investor optimism was
buoyed by the country's apparent recovery from its longest post-war recession.
However, despite the Fund's underweighting in Japanese securities as a whole,
our individual stock selection in Japanese equities was very strong. Holdings
such as NTT Mobile (1.23% of the Fund's
<PAGE>
assets), Nintendo (1.77%), Sumitomo Trust (.65%) and Sony (1.26%) contributed
significantly to our total return.
Looking ahead, the Fund is slightly overweighted in Europe. Given the poor
performance of most European markets in 1999, especially relative to Asia, we
are finding better values in Europe. We're also seeing more corporate
restructurings in Europe, which bodes well for shareholder value. At the same
time, we feel many issues in Japan may have gotten ahead of themselves. We
remain a bit cautious on Japan as a whole, due to high valuations and our
concern that a stronger yen may hurt companies that depend on exporting for
significant revenues.
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL MULTI-MANAGER STOCK FUND
AVERAGE ANNUAL TOTAL RETURN (3)
[GRAPH APPEARS HERE]
Value of $10,000 Investment
1/20/97 10/31/97 10/31/98 10/31/99
<S> <C> <C> <C> <C> <C>
International Multi-Manager Stock 10,000 10,970 11,366 13,595 Total
Fund Return
------------------------------------- ----------
Morgan Stanley Capital International 10,000 10,585 11,638 14,358 23.37%
Europe, Australasia and Far East
Index (EAFE)
------------------------------------- ----------
</TABLE>
Average Annual Total Return as of 10/31/99
International Multi-Manager Stock Fund
Inception Date 1/20/97
Since Inception 11.69%
1 Year 19.61%
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, 1999. 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.
Without waiver of fees, total return would have been lower. 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.
Investors cannot invest directly in an index.
<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 15 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 providing current income that
is exempt from both federal and Kansas state income taxes.
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 effective average maturity between seven and 12
years; we are permitted by the prospectus to lower the average maturity to less
than seven years if we anticipate a volatile interest-rate environment.
As of October 31, 1999, approximately 95.3% of the portfolio was comprised
of Kansas bonds - with 1.7% and 2.5% invested in debt obligations issued in
Puerto Rico and Guam, respectively. Approximately 0.5% was invested in
tax-exempt money market instruments./2/
The securities within the Fund maintained an average credit quality of
AA+/AAA, with an average stated maturity of 8.93 years./2/
In late summer, we engaged in some opportunistic trading. We found a number
of high-quality issues that we felt were underpriced, and which provided good
yields, along with favorable maturity and duration characteristics.
Performance. For the 12 months ended October 31, 1999, the Fund produced a
total return of -2.51%./3/ In comparison, the Lehman Brothers 7-Year General
Obligation Index (the Fund's "benchmark") had a total return of .07%./4/
The period represented many challenges in the municipal bond market. At the
beginning of the fiscal year, we tended to outperform because of our
longer-than-average maturity structure, which we based on our positive outlook
for interest rates. While we were expecting some volatility and a mild upturn in
interest rates, we didn't anticipate as great a rise in rates as the market
later experienced. Consequently, while income rose in tandem with higher rates,
bond prices retreated (rates and prices move in opposite directions), and the
Fund's total return was affected somewhat adversely.
Nonetheless, income generated by the Fund's investments continued to
provide shareholders with double-tax-free benefits (for Kansas residents).
<PAGE>
KANSAS TAX-EXEMPT BOND FUND
AVERAGE ANNUAL TOTAL RETURN (3)
Value of $10,000 Investment
<TABLE>
<CAPTION>
12/10/90 10/31/91 10/31/92 10/31/93 10/31/94 10/31/95 10/31/96 10/31/97 10/31/98 10/31/99
<S> <C> <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 16,403
--------------------------------------------------------------------------------------------------
Lehman Brothers 7-Year General 10,000 10,896 11,764 13,162 12,896 14,534 15,224 16,380 17,599 17,611
Obligation Index
--------------------------------------------------------------------------------------------------
</TABLE>
Average Annual Total Return as of 10/31/99
Kansas Tax-Exempt Bond Fund
Inception Date 12/10/90
Since Inception 5.72%
1 Year -2.51%
5 Year 5.27%
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, 1999. 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. 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. The performance
also reflects reinvestment of all dividends and capital gains distributions.
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 from December 10, 1990 to May 16,
1997.
4 The Lehman Brothers 7-Year General Obligation Index is an unmanaged index
generally representative of intermediate-term municipal bonds. The index does
not reflect the deductions of expenses associated with a mutual fund, such as
investment management and fund accounting fees. Investors cannot invest directly
in an index
<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, 1999, 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 two 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, 1999, 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,
1999, 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 LLP
Columbus, Ohio
December 21, 1999
<PAGE>
INTRUST FUNDS TRUST
Money Market Fund
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
October 31, 1999
<S> <C> <C>
Assets:
Investments, at value (cost $89,991,190) $ 89,991,190
Repurchase agreement (cost $7,155,186) 7,155,186
Interest and dividends receivable 649,642
Unamortized organizational costs 50,827
Prepaid expenses and other assets 7,473
--------------
Total Assets 97,854,318
Liabilities:
Dividends payable 432,621
Accrued expenses and other payables:
Investment advisory fees 12,807
Service Organization fees 6,831
Administration fees 2,669
Custodian fees 1,707
Other payables 33,615
Total Liabilities 490,250
--------------
Net Assets $ 97,364,068
==============
Net Assets consist of:
Capital $ 97,349,685
Accumulated undistributed net investment income 14,383
--------------
Net Assets $ 97,364,068
==============
Outstanding Units of Beneficial Interest (Shares): 97,361,949
==============
Net Asset Value:
Institutional Service Shares
Offering and redemption price per share $ 1.00
==============
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
For the year ended October 31, 1999
<S> <C> <C>
Investment Income:
Interest income $ 4,037,084
-------------
Total Income 4,037,084
Expenses:
Investment advisory fees 194,001
Service Organization fees 194,001
12b-1 fees 194,001
Administration fees 155,203
Accounting fees 30,583
Custodian fees 15,519
Other fees 92,269
Total expenses before waivers 875,577
Less expenses waived (415,524)
-------------
Net expenses 460,053
-------------
Net Investment Income 3,577,031
-------------
Realized Gains/(Losses) on
Investments:
Net realized gains/(losses) on investment transactions 499
-------------
Net realized gains/(losses) on investments 499
-------------
Increase/(Decrease) in Net Assets Resulting from
Operations $ 3,577,530
=============
</TABLE>
See Notes to Financial Statements
<PAGE>
INTRUST FUNDS TRUST
Money Market Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
Year ended Year ended
October 31, October 31,
1999 1998
--------------- ---------------
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 3,577,031 $ 2,600,830
Net realized gains/(losses) on investment transactions 499 1,264
--------------- ---------------
Change in net assets resulting from operations 3,577,530 2,602,094
--------------- ---------------
Distributions to Shareholders:
From net investment income (3,577,031) (2,600,830)
--------------- ---------------
Capital Transactions:
Proceeds from shares issued 231,631,408 139,751,111
Dividends reinvested 5,086 5,335
Cost of shares redeemed (185,018,909) (144,577,515)
--------------- ---------------
Change in net assets from capital transactions 46,617,585 (4,821,069)
--------------- ---------------
Change in net assets 46,618,084 (4,819,805)
Net Assets:
Beginning of period 50,745,984 55,565,789
--------------- ---------------
End of period $ 97,364,068 $ 50,745,984
=============== ===============
Share Transactions:
Issued 231,631,408 139,751,111
Reinvested 5,086 5,335
Redeemed (185,018,909) (144,577,515)
--------------- ---------------
Change in shares 46,617,585 (4,821,069)
=============== ===============
</TABLE>
See Notes to Financial Statements
<PAGE>
INTRUST FUNDS TRUST
Short-Term Bond Fund
Statement of Assets and Liabilities
October 31, 1999
<TABLE>
<S> <C> <C>
Assets:
Investments, at value (cost $59,710,787) $ 58,964,767
Investments in affiliates, at value (cost $2,559,234 2,559,234
Interest and dividends receivable 821,743
Receivable for investments sold 14,671
Unamortized organizational costs 13,437
Prepaid expenses and other assets 5,235
------------
Total Assets 62,379,087
Liabilities:
Payable for investments purchased 750,000
Dividends payable 283,182
Accrued expenses and other payables:
Investment advisory fees 9,977
Service Organization fees 4,201
Administration fees 1,680
Custodian fees 1,050
Other payables 27,465
Total Liabilities 1,077,555
------------
Net Assets $ 61,301,532
============
Net Assets consist of:
Capital $ 62,040,589
Accumulated undistributed net investment income 4,693
Accumulated net realized gains/(losses) on investment
transactions 2,270
Net unrealized appreciation/(depreciation) of investmaent (746,020)
------------
Net Assets $ 61,301,532
============
Outstanding Units of Beneficial Interest (Shares) 6,191,939
============
Net Asset Value:
Institutional Service Shares
Offering and redemption price per share $ 9.90
============
</TABLE>
Statement of Operations
For the year ended October 31, 1999
<TABLE>
<S> <C> <C>
Investment Income:
Interest income $ 3,643,286
Dividend income 50,058
Dividend income from affiliates 33,916
-----------
Total Income 3,727,260
Expenses:
Investment advisory fees 250,158
Service Organization fees 156,349
12b-1 fees 156,349
Administration fees 125,080
Accounting fees 39,827
Custodian fees 12,507
Transfer agent fees 12,000
Other fees 57,441
Total expenses before waivers 809,711
Less expenses waived (403,726)
-----------
Net Expenses 405,985
-----------
Net Investment Income 3,321,275
-----------
Realized/Unrealized Gains/(Losses) on
Investments:
Net realized gains/(losses) on investment
transactions 38,185
Net change in unrealized appreciation/depreciation of
investments (1,901,420)
-----------
Net realized/unrealized gains/(losses) on
investments (1,863,235)
-----------
Increase/(Decrease) in Net Assets Resulting from
Operations $ 1,458,040
===========
</TABLE>
See Notes to Financial Statements
<PAGE>
INTRUST FUNDS TRUST
Short-Term Bond Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
Year ended Year ended
October 31, October 31,
1999 1998
-------------- -------------
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 3,321,275 $ 3,259,856
Net realized gains/(losses) on investment transactions 38,185 5,686
Net change in unrealized appreciation/depreciation of investments (1,901,420) 696,063
-------------- -------------
Change in net assets resulting from operations 1,458,039 3,961,605
-------------- -------------
Distributions to Shareholders:
From net investment income (3,321,275) (3,259,856)
-------------- -------------
Capital Transactions:
Proceeds from shares issued 14,900,559 15,889,131
Dividends reinvested 1,065,943 917,278
Cost of shares redeemed (14,172,666) (8,819,515)
-------------- -------------
Change in net assets from capital transactions 1,793,836 7,986,894
-------------- -------------
Change in net assets (69,399) 8,688,643
Net Assets:
Beginning of period 61,370,931 52,682,288
-------------- -------------
End of period $ 61,301,532 $ 61,370,931
============== =============
Share Transactions:
Issued 1,481,302 1,573,861
Reinvested 106,091 90,835
Redeemed (1,412,655) (872,890)
-------------- -------------
Change in shares 174,738 791,806
============== =============
</TABLE>
See Notes to Financial Statements
<PAGE>
INTRUST FUNDS TRUST
Intermediate Bond Fund
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
October 31, 1999
<S> <C> <C>
Assets:
Investments, at value (cost $55,672,511) $ 54,611,555
Investments in affiliates, at value (cost $1,041,364) 1,041,364
Interest and dividends receivable 741,134
Receivable for investments sold 3,114
Unamortized organizational costs 12,484
Prepaid expenses and other assets 5,039
------------
Total Assets 56,414,690
Liabilities:
Dividends payable 276,988
Accrued expenses and other payables:
Investment advisory fees 13,856
Service Organization fees 3,822
Administration fees 1,531
Custodian fees 956
Other payables 26,089
Total Liabilities 323,242
------------
Net Assets $ 56,091,448
============
Net Assets consist of:
Capital $ 57,264,422
Accumulated undistributed (distributions in excess of)
net investment income (961)
Accumulated net realized gains/(losses) on investment
transactions (111,057)
Net unrealized appreciation/(depreciation) of
investments (1,060,956)
------------
Net Assets $ 56,091,448
============
Outstanding Units of Beneficial Interest (Shares): 5,690,274
============
Net Asset Value:
Institutional Service Shares
Offering and redemption price per share $ 9.86
============
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
For the year ended October 31, 1999
<S>
Investment Income: <C> <C>
Interest income $ 3,513,186
Dividend income 28,611
Dividend income from affiliates 29,423
------------
Total Income 3,571,220
Expenses:
Investment advisory fees 221,507
Service Organization fees 138,442
12b-1 fees 138,442
Administration fees 110,755
Accounting fees 38,754
Custodian fees 11,074
Transfer agent fees 12,000
Other fees 51,977
Total expenses before waivers 722,951
Less expenses waived (303,286)
------------
Net Expenses 419,665
------------
Net Investment Income 3,151,555
------------
Realized/Unrealized Gains/(Losses) on
Investments:
Net realized gains/(losses) on investment
transactions (114,143)
Net change in unrealized appreciation/depreciation
of investments (3,017,293)
------------
Net realized/unrealized gains/(losses) on
investments (3,131,436)
------------
Increase/(Decrease) in Net Assets Resulting from
Operations $ 20,119
============
</TABLE>
See Notes to Financial Statements
<PAGE>
INTRUST FUNDS TRUST
Intermediate Bond Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
Year ended Year ended
October 31, October 31,
1999 1998
-------------- --------------
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 3,151,555 $ 2,867,672
Net realized gains/(losses) on investment transactions (114,143) 141,708
Net change in unrealized appreciation/depreciation of investments (3,017,293) 942,254
-------------- --------------
Change in net assets resulting from operations 20,119 3,951,634
-------------- --------------
Distributions to Shareholders:
From net investment income (3,151,555) (2,867,672)
In excess of net realized gains (26,524) -
-------------- --------------
Total distribution to shareholders (3,178,079) (2,867,672)
Capital Transactions:
Proceeds from shares issued 20,003,672 14,471,629
Dividends reinvested 867,934 718,051
Cost of shares redeemed (14,615,013) (9,772,711)
-------------- --------------
Change in net assets from capital transactions 6,256,593 5,416,969
-------------- --------------
Change in net assets 3,098,633 6,500,931
Net Assets:
Beginning of period 52,992,815 46,491,884
-------------- --------------
End of period $ 56,091,448 $ 52,992,815
============== ==============
Share Transactions:
Issued 1,966,594 1,410,418
Reinvested 85,790 69,956
Redeemed (1,444,364) (952,303)
-------------- --------------
Change in shares 608,020 528,071
============== ==============
</TABLE>
See Notes to Financial Statements
<PAGE>
INTRUST FUNDS TRUST
Stock Fund
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
October 31, 1999
<S> <C> <C>
Assets:
Investments, at value (cost $104,390,620) $ 99,268,325
Investments in affiliates, at value (cost $3,239,255) 3,239,255
Interest and dividends receivable 148,431
Receivable for investments sold 1,125,797
Unamortized organizational costs 15,307
Prepaid expenses and other assets 7,434
-------------
Total Assets 103,804,549
Liabilities:
Payable for investments purchased 255,285
Accrued expenses and other payables:
Investment advisory fees 116,820
Service Organization fees 6,862
Administration fees 2,769
Custodian fees 1,715
Other payables 41,586
Total Liabilities 425,037
-------------
Net Assets $ 103,379,512
=============
Net Assets consist of:
Capital $ 105,645,057
Accumulated undistributed net investment income 792,202
Accumulated net realized gains/(losses) on investment
transactions 2,064,548
Net unrealized appreciation/(depreciation) of investments (5,122,295)
-------------
Net Assets $ 103,379,512
=============
Outstanding Units of Beneficial Interest (Shares): 10,008,136
=============
Net Asset Value:
Institutional Service Shares
Offering and redemption price per share $ 10.33
=============
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
For the year ended October 31, 1999
<S> <C> <C>
Investment Income:
Dividend income $ 2,372,603
Dividend income from affiliates 61,969
-------------
Total Income 2,434,572
Expenses:
Investment advisory fees 1,116,400
Service Organization fees 279,099
12b-1 fees 279,099
Administration fees 223,282
Custodian fees 22,326
Transfer agent fees 12,000
Other fees 125,696
Total expenses before waivers 2,057,902
Less expenses waived (618,495)
-------------
Net Expenses 1,439,407
-------------
Net Investment Income 995,165
-------------
Realized/Unrealized Gains/(Losses) on
Investments:
Net realized gains/(losses) on investment
transactions 2,131,229
Net change in unrealized appreciation/depreciation of
investments (2,604,259)
-------------
Net realized/unrealized gains/(losses) on
investments (473,030)
-------------
Increase/(Decrease) in Net Assets Resulting from
Operations $ 522,135
=============
</TABLE>
See Notes to Financial Statements
<PAGE>
INTRUST FUNDS TRUST
Stock Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
Year ended Year ended
October 31, October 31,
1999 1998
------------- --------------
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 995,165 $ 611,250
Net realized gains/(losses) on investment transactions 2,131,229 14,159,299
Net change in unrealized appreciation/depreciation of investments (2,604,259) (4,384,432)
------------- --------------
Change in net assets resulting from operations 522,135 10,386,117
------------- --------------
Distributions to Shareholders:
From net investment income (694,971) (395,475)
From net realized gains on investment transactions (14,130,033) (3,918,048)
------------- --------------
Total distribution to shareholders (14,825,004) (4,313,523)
Capital Transactions:
Proceeds from shares issued 53,726,460 29,168,396
Dividends reinvested 7,647,655 2,109,220
Cost of shares redeemed (44,215,795) (16,660,584)
------------- --------------
Change in net assets from capital transactions 17,158,320 14,617,032
------------- --------------
Change in net assets 2,855,451 20,689,626
Net Assets:
Beginning of period 100,524,061 79,834,435
------------- --------------
End of period $ 103,379,512 $ 100,524,061
============= ==============
Share Transactions:
Issued 4,880,076 2,494,495
Reinvested 731,133 191,573
Redeemed (3,931,066) (1,418,435)
------------- --------------
Change in shares 1,680,143 1,267,633
============= ==============
</TABLE>
See Notes to Financial Statements
<PAGE>
INTRUST FUNDS TRUST
International Multi-Manager Stock Fund
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
October 31, 1999
<S> <C> <C>
Assets:
Investments in International Equity Portfoilo, at value (cost
$59,839,096) $ 63,472,241
Unamortized organizational costs 8,098
Prepaid expenses and other assets 4,644
-----------------
Total Assets 63,484,983
Liabilities:
Accrued expenses and other payables:
Investment advisory fees 18,719
Service Organization fees 4,279
Administration fees 1,291
Other payables 19,475
Total Liabilities 43,764
----------------
Net Assets $ 63,441,219
================
Net Assets consist of:
Capital $ 55,139,443
Accumulated undistributed net investment income 902,454
Accumulated net realized gains/(losses) on investment
transactions 3,766,177
Net unrealized appreciation/(depreciation) of investments 3,633,145
-----------------
Net Assets $ 63,441,219
=================
Outstanding Units of Beneficial Interest (Shares): 4,823,595
=================
Net Asset Value:
Institutional Service Shares
Offering and redemption price per share $ 13.15
=================
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
For the year ended October 31, 1999
<S> <C> <C>
Investment Income Allocated from
International Equity Portfolio:
Interest Income $ 161,529
Dividend income 1,528,445
Income from securities lending 46,895
Foreign tax withholding (157,763)
Expenses (223,511)
---------------
Total Income 1,355,595
Expenses:
Investment advisory fees 237,313
Service Organization fees 148,321
12b-1 fees 148,321
Administration fees 88,993
Accounting fees 30,013
Transfer agent fees 12,000
Other fees 46,153
Total expenses before waivers 711,114
Less expenses waived (286,636)
----------------
Net Expenses 424,478
----------------
Net Investment Income 931,117
----------------
Realized/Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on investment transactions 5,627,957
Net change in unrealized appreciation/depreciation of investments 3,715,892
----------------
Net realized/unrealized gains/(losses) on investments 9,343,849
----------------
Increase/(Decrease) in Net Assets Resulting from Operations $ 10,274,966
================
</TABLE>
See Notes To Financial Statements
<PAGE>
INTRUST FUNDS TRUST
International Multi-Manager Stock Fund
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
For the For the
Year ended Year ended
October 31, October 31,
1999 1998
-------------- -------------
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 931,117 $ 878,250
Net realized gains/(losses) on investment transactions 5,627,957 1,663,174
Net change in unrealized appreciation/depreciation of
investments 3,715,892 (989,259)
-------------- -------------
Change in net assets resulting from operations 10,274,966 1,552,165
-------------- -------------
Distributions to Shareholders:
From net investment income (707,672) (499,827)
From net realized gains on investment transactions - (351,828)
-------------- -------------
Total distribution to shareholders (707,672) (851,655)
Capital Transactions:
Proceeds from shares issued 18,949,717 29,807,759
Dividends reinvested 353,424 424,581
Cost of shares redeemed (20,933,756) (16,563,493)
-------------- -------------
Change in net assets from capital transactions (1,630,615) 13,668,847
-------------- -------------
Change in net assets 7,936,679 14,369,357
Net Assets:
Beginning of period 55,504,540 41,135,183
-------------- -------------
End of period $ 63,441,219 $ 55,504,540
============== =============
Share Transactions:
Issued 1,571,935 2,684,450
Reinvested 30,520 40,321
Redeemed (1,759,367) (1,493,886)
-------------- -------------
Change in shares (156,912) 1,230,885
============== =============
</TABLE>
See Notes to Financial Statements
<PAGE>
INTRUST FUNDS TRUST
Kansas Tax-Exempt Bond Fund
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
<S> <C> <C>
October 31, 1999
Assets:
Investments, at value (cost $154,176,751) $ 148,757,075
Interest and dividends receivable 2,067,025
Receivable for investments sold 2,174,125
Prepaid expenses and other assets 11,268
-------------
Total Assets 153,009,493
Liabilities:
Payable for investments purchased 6,743,067
Dividends payable 571,377
Accrued expenses and other payables:
Investment advisory fees 21,467
Service Organization fees 9,974
Administration fees 3,978
Custodian fees 2,493
Other payables 49,991
Total Liabilities 7,402,347
-------------
Net Assets $ 145,607,146
=============
Net Assets consist of:
Capital 151,682,345
Accumulated undistributed net investment income 2,264
Accumulated net realized gains/(losses) on investment transactions (657,787)
Net unrealized appreciation/(depreciation) of investments (5,419,676)
-------------
Net Assets $ 145,607,146
=============
Outstanding Units of Beneficial Interest (Shares): $ 14,384,486
=============
Net Asset Value:
Institutional Service Shares
Offering and redemption price per share $ 10.12
=============
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
For the year ended October 31, 1999
<S> <C> <C>
Investment Income:
Interest Income $ 7,347,134
Dividend income 68,198
-------------
Total Income 7,415,332
Expenses:
Investment advisory fees 446,822
Service Organization fees 372,437
12b-1 fees 372,437
Administration fees 297,883
Accounting fees 39,357
Custodian fees 29,786
Transfer agent fees 12,000
Other fees 128,315
Total expenses before waivers 1,699,037
Less expenses waived (898,419)
-------------
Net Expenses 800,618
-------------
Net Investment Income 6,614,714
-------------
Realized/Unrealized Gains/(Losses) on Investments:
Net realized gains/(losses) on investment transactions (657,785)
Net change in unrealized appreciation/depreciation of investments (10,012,344)
-------------
Net realized/unrealized gains/(losses) on investments (10,670,129)
-------------
Increase/(Decrease) in Net Assets Resulting from Operations $ (4,055,415)
=============
</TABLE>
See Notes to Financial Statements
<PAGE>
INTRUST FUNDS TRUST
Kansas Tax-Exempt Bond Fund
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the For the
Year ended Year ended
October 31, October 31,
1999 1998
------------ -------------
<S> <C> <C>
From Investment Activities:
Operations:
Net investment income $ 6,614,714 $ 5,885,281
Net realized gains/(losses) on investment transactions (657,785) 597,281
Net change in unrealized appreciation/depreciation of investments (10,012,344) 1,617,648
------------- -------------
Change in net assets resulting from operations (4,055,415) 8,100,750
------------- -------------
Distributions to Shareholders:
From net investment income (6,614,714) (5,885,281)
From net realized gains on investments - (332,132)
In excess of net realized gains (595,564) -
------------- -------------
Total distribution to shareholders (7,210,278) (6,217,413)
Capital Transactions:
Proceeds from shares issued 54,885,662 40,349,944
Dividends reinvested 779,890 445,962
Cost of shares redeemed (31,710,177) (13,377,639)
------------- -------------
Change in net assets from capital transactions 23,955,375 27,418,267
------------- -------------
Change in net assets 12,689,682 29,301,604
Net Assets:
Beginning of period 132,917,464 103,615,860
------------- -------------
End of period $ 145,607,146 $ 132,917,464
============= =============
Share Transactions:
Issued 5,132,032 3,735,461
Reinvested 73,066 41,258
Redeemed (3,018,624) (1,235,603)
------------- -------------
Change in shares 2,186,474 2,541,116
============= =============
</TABLE>
See Notes to Financial Statements
<PAGE>
INTRUST FUNDS TRUST
Money Market Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Cost
------ ----
<S> <C> <C>
Bank Notes (25.7%)
Banking (25.7%)
American Express Centurion, 5.62%*,11/1/99 $4,000,000 $ 3,999,999
Banco Popular de Puerto Rico, 5.42%*,11/9/99 3,000,000 3,000,000
First Union National Bank, 6.13%*,1/19/00 3,000,000 3,000,000
Fleet National Bank, 6.34%*,1/26/00 2,000,000 2,001,601
Fleet National Bank, 5.34%*,11/10/99 2,000,000 1,999,525
Key Bank, 6.17%*, 1/13/00 3,000,000 3,000,868
Mellon Bank, 5.48%*, 11/30/99 4,000,000 3,999,073
National City Bank, 5.48%*, 11/30/99 4,000,000 3,998,367
-----------
Total Bank Notes (Amortized Cost $24,999,433) 24,999,433
-----------
Certificates of Deposit (12.3%)
Banking (7.2%)
Bankers Trust Co., 6.16%*, 1/10/00 5,000,000 4,997,729
First Union National Bank, 5.61%*,12/27/99 2,000,000 2,000,000
-----------
6,997,729
-----------
Yankee Certificate of Deposit (5.1%)
Landbank Hessen-Thueringen Ny, 6.07%*, 1/4/00 5,000,000 4,996,917
-----------
Total Certificates of Deposit (Amortized Cost $11,994,646) 11,994,646
-----------
Commercial Paper (3.1%)
Financial-Banking (3.1%)
General Electric Capital Corp., 5.45%, 12/10/99 3,000,000 3,000,000
-----------
Total Commercial Paper (Amortized Cost $3,000,000) 3,000,000
-----------
Funding Agreements (2.1%)
Security Life of Denver Insurance Co., 5.56%, 11/19/99 (d)(e) 2,000,000 2,000,000
-----------
Total Funding Agreements (Amortized Cost $2,000,000) 2,000,000
-----------
Medium Term/Senior Notes (49.3%)
Banking (9.2%)
Bank One Corp., 5.60%*,11/10/99 3,000,000 3,002,334
Chase Manhattan Corp., 5.56%*,11/30/99 3,000,000 3,001,652
Wells Fargo & Co., 5.41%*,12/10/99 3,000,000 2,999,470
-----------
9,003,456
-----------
Financial Services (31.9%)
American Honda Finance, 5.46%*,12/13/99 (b) 5,000,000 4,998,573
Caterpillar Financial Services, 5.45%*, 11/16/99 5,000,000 4,999,940
Ford Motor Credit Co., 5.50%*, 12/30/99 5,000,000 4,995,517
General Motors Acceptance Corp., 5.36%*, 11/2/99 (d) 3,000,000 3,000,000
Goldman Sachs Group, Inc, 5.64%*,12/16/99 (c) 4,000,000 4,000,000
JP Morgan & Co., 6.17%*,1/24/00 2,000,000 1,999,708
Merrill Lynch, 6.13%*,1/3/00 5,000,000 5,003,303
Morgan Stanley Dean Witter, 6.13%*,1/3/00 2,000,000 2,000,847
-----------
30,997,888
-----------
Foreign Banking (8.2%)
AB Spintab Euro, 5.54%*, 12/30/99 3,000,000 3,000,198
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Money Market Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Amortized
Amount Cost
------ ----
<S> <C> <C>
Svenska Handelsbanken, 6.17%*, 1/13/00 $5,000,000 $ 4,995,569
-----------
7,995,767
-----------
Total Medium Term/Senior Notes (Amortized Cost $47,997,111) 47,997,111
-----------
Repurchase Agreements (7.3%)
Merrill Lynch & Co., Inc., 5.27% dated 10/29/99, due 11/1/99, with a maturity 7,155,186 7,155,186
-----------
value of $7,158,285 (Collateralized by $14,475,000 in two Resolution
Funding Strips, with a combined market value of $7,299,489)
Total Repurchase Agreements (Amortized Cost $7,155,186) 7,155,186
-----------
Total (Amortized Cost $97,146,376) (a) - 99.8% $97,146,376
==========
</TABLE>
__________________
Percentages indicated are based on net assets of $97,364,068.
(a) Cost for federal income tax and financial reporting purposes are 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
Portfolio Investments is the rate in effect at October 31, 1999.
Maturity date reflects next rate change date.
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
Short-Term Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- -----
<S> <C> <C>
Asset Backed Securities (11.3%)
AESOP Funding II LLC, Series 1997-1A, Class A1, 6.22%,
10/20/01, (b) $1,500,000 $1,498,553
Federal Agricultural Mortgage Corp., Series CS-1012, Class 1,
7.06%, 7/25/02 1,882,754 1,888,930
Green Tree Financial Corp., Series 1993-4, Class A3, 6.25%,
1/15/19 212,804 212,918
Green Tree Financial Corp., Series 1994-1, Class A3, 6.90%,
4/15/19 166,861 167,121
Household Consumer Loan Trust, Series 1995-1, Class A,
5.65%*,11/15/99 694,181 695,372
Keystone Home Improvement Loan Trust, Series 1997-P2, Class
IA3, 6.99%, 4/25/14, (b) 638,838 636,442
Main Place Fund, Series 1999-1, 5.61%*, 11/26/99 1,000,000 998,015
Team Fleet Financing Corp., Series 1997-1, Class A, 7.35%,
5/15/03, (b) 800,000 801,700
----------
Total Asset Backed Securities (Cost $6,919,864) 6,899,051
----------
Collateralized Mortgage Obligations (16.1%)
Commercial Loan Funding Trust, Series 1, Class A,
5.65%*,11/15/99, (b) 513,997 510,130
Fannie Mae, Series 1999-19, Class LA, 6.50%, 9/25/08 1,750,000 1,744,513
Fannie Mae, Series 1999-19, Class PB, 6.00%, 6/25/08 1,500,000 1,481,827
Fannie Mae, Series 1999-19, Class PC, 6.00%, 9/25/14 1,250,000 1,223,943
Freddie Mac, Series 1612, Class PD, 5.75%, 5/15/06 438,797 438,251
Freddie Mac, Series 1708, Class B, 6.00%, 4/15/06 328,857 328,635
Freddie Mac, Series 2091, Class PC, 6.00%, 6/15/16 1,250,000 1,216,094
Independent National Mortgage Corp., 7.71%*,11/25/99 369,896 384,092
Merrill Lynch Mortgage Investors, Inc., Series 1993-F, Class A3,
6.00%*,11/15/99 734,897 735,768
Merrill Lynch Mortgage Investors, Inc., Series 1992-H, Class
A1-1, 7.30%*,11/25/99 151,767 151,185
Merrill Lynch Mortgage Investors, Inc., Series 1994-1, Class A1,
7.36%*, 11/25/99 123,259 123,686
Merrill Lynch Mortgage Investors, Inc., Series 1994-D, Class A,
6.96%*,11/25/99 226,280 225,467
Vendee Mortgage Trust, Series 1992-1, Class 2D, 7.75%, 12/15/14 52,897 52,840
Vendee Mortgage Trust, Series 1993-1, Class E, 7.00%, 1/15/16 1,246,984 1,253,548
----------
Total Collateralized Mortgage Obligations (Cost $10,003,480) 9,869,979
----------
Corporate Bonds (28.4%)
Banking (2.9%)
Citicorp, 9.50%, 2/1/02 750,000 796,023
Mercantile Bancorp, 7.05%, 6/15/04 1,000,000 998,222
----------
1,794,245
----------
Computer Hardware (1.1%)
Sun Microsystems, Inc., 7.00%, 8/15/02 650,000 653,502
----------
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Short-Term Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- -----
<S> <C> <C>
Electric Utility (0.8%0
Texas Utilities, 6.20%, 10/1/02, MBIA $ 500,000 $ 494,621
-----------
Film & Entertainment (1.6%)
Dream Works Film Trust, 6.40%*, 1/15/00, (b) 1,000,000 998,125
-----------
Financial Services (4.3%)
First Data Corp., 6.82%, 9/18/01 750,000 755,411
Ford Capital BV, 9.38%, 5/15/01 1,100,000 1,146,548
General Electric Capital Corp., 6.29%*, 12/15/07, Callable
12/15/01 @ 100 750,000 747,827
-----------
2,649,786
-----------
Food & Household Products (1.0%)
Kroger, Inc., 6.41%, 10/1/10 600,000 598,678
-----------
Industrial (4.4%)
VFC, 9.50%, 5/1/01 1,000,000 1,042,658
Philip Morris Companies, Inc., 8.75%, 6/1/01 600,000 613,630
Whitman Corp., 7.50%, 8/15/01 1,000,000 1,013,954
-----------
2,670,242
-----------
Industrial Goods & Services (4.8%)
Cargill, Inc., 7.72%, 2/12/02, (b) 285,815 289,873
McDonald's Corp., 6.00%, 6/23/02 800,000 792,494
Nabisco, Inc., 6.00%, 2/15/11 250,000 247,584
Newell Co., 6.18%, 7/11/00 1,000,000 1,000,778
Tyco International Ltd., 6.50%, 11/1/01 700,000 699,199
-----------
3,029,928
-----------
Oil Field Services (0.8%)
Colonial Pipeline, 7.13%, 8/15/02, (b) 500,000 506,737
-----------
Retail Stores/Catalog (3.6%)
J.C. Penney & Co., 6.95%, 4/1/00 1,000,000 1,003,273
May Department Stores Co., 9.88%, 6/15/00 385,000 393,324
Rite Aid Corp., 6.70%, 12/15/01 1,000,000 805,000
-----------
2,201,597
-----------
Telephone (1.6%)
AT&T Corp., 5.63%, 3/15/04 1,000,000 957,996
-----------
Transportation - Railways (1.5%)
Norfolk Southern Corp., 6.88%, 5/1/01 900,000 901,165
-----------
Total Corporate Bonds (Cost $17,818,123) 17,456,622
-----------
Medium Term/Senior Notes (2.0%)
Diversified Operations (1.2%)
USAA Capital Corp., 6.90%, 11/01/02 (b) 750,000 750,000
-----------
Financial Services (0.8%)
Charles Schwab, 7.19%, 5/31/01 500,000 503,922
-----------
Total Medium Term/Senior Notes (Cost $1,252,955) 1,253,922
-----------
Taxable Municipal Bonds (14.9%)
Colorado (2.4%)
Denver, City & County, School District #01, 6.34%, 12/15/00, 1,500,000 1,500,020
-----------
AMBAC
Connecticut (1.3%)
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Short-Term Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- -----
<S> <C> <C>
State, GO, Series A, 5.70%, 1/15/01 $ 800,000 $ 792,206
----------
Maryland (0.9%)
Baltimore, GO, Series B, 6.38%, 10/15/00, FGIC 565,000 564,720
----------
Minnesota (1.6%)
Western Minnesota Power Agency, Revenue, Series A, 6.33%, 1,000,000 995,696
----------
1/1/02, AMBAC
New Jersey (3.1%)
New Jersey, Hudson County, GO, 6.09%, 9/1/05 895,000 851,477
New Jersey, Taxable - Series G, GO, 6.38%, 8/01/01 1,000,000 999,384
----------
1,850,861
----------
New York (3.3%)
New York, NY, GO, Series K, 6.10%, 8/1/01 1,000,000 998,080
State, GO, Series C, 6.13%, 3/1/02 1,000,000 991,344
----------
1,989,424
----------
Oregon (0.7%)
Cow Creek Band Umpqua Tribe of Indians, Revenue, Series A, 450,000 439,738
----------
6.20%, 7/1/03, AMBAC (b)
Washington (1.6%)
State, Housing Trust Fund, GO, Series T, 6.60%, 1/1/01 1,000,000 999,434
----------
Total Taxable Municipal Bonds (Cost $9,222,727) 9,132,099
----------
U.S. Government Agency Obligations (15.5%)
Fannie Mae (7.0%)
5.00%*,12/3/99 1,000,000 991,872
5.13%, 2/13/04 3,500,000 3,327,716
----------
4,319,588
----------
Federal Home Loan Bank (7.7%)
5.00%*, 11/10/99, Series Y 00 1,800,000 1,787,072
5.63%, 3/19/01, Series 87 2,900,000 2,882,470
----------
4,669,542
----------
Freddie Mac (0.8%)
5.00%*,12/10/99 500,000 498,522
----------
Total U.S. Government Agency Obligations (Cost $9,533,079) 9,487,652
----------
U.S. Government Agency Pass-Through Securities (5.6%)
Fannie Mae (4.8%)
7.38%*, 11/1/99, Pool #365421 196,992 198,108
6.93%, 3/1/01, Pool #160334 881,990 882,728
6.00%, 2/1/14, Pool #459495 1,946,544 1,874,551
----------
2,955,387
----------
Freddie Mac (0.3%)
7.08%*, 11/1/99, Pool #846367 171,452 176,151
----------
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Short-Term Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- -----
<S> <C> <C>
Small Business Administration (0.5%)
8.48%*, 11/1/99, Pool #503664 $109,582 $ 116,005
8.88%*, 11/1/99, Pool #503653 76,816 81,114
9.23%*, 11/1/99, Pool #502966 75,980 82,581
------------
279,700
------------
Total U.S. Government Agency Pass-Through Securities (Cost $3,487,995) 3,411,238
------------
U.S. Treasury Obligations (2.4%)
U.S. Treasury Notes (2.4%)
7.88%, 11/15/04 1,350,000 1,454,204
------------
Total U.S. Treasury Obligations (Cost $1,472,564) 1,454,204
------------
Investment Companies (4.2%)
American AAdvantage U.S. Government Money Market (c) 2,559,234 2,559,234
------------
Total Investment Companies (Cost $2,559,234) 2,559,234
------------
Total (Cost $62,270,021) (a) - 100.4% $ 61,524,001
============
</TABLE>
____________
Percentages indicated are based on net assets of $61,301,532.
(a) Represents cost for federal tax and financial reporting purposes and
differs from market value by net unrealized depreciation of securities as
follows:
Unrealized appreciation $ 56,564
Unrealized depreciation (802,584)
---------
Net unrealized depreciation $(746,020)
=========
(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) Investment in affiliate.
* Variable rate securities. This rate reflected on the Schedule of Portfolio
Investments is the rate in effect at October 31, 1999. Maturity date
reflects next rate change date.
AMBAC = Insured by AMBAC Indemnity Corp.
FGIC = Insured by Financial Guaranty Insurance Corp.
GO = General Obligation
MBIA = Insured by Municipal Bond Insurance Association
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
Intermediate Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- ------
<S> <C> <C>
Asset Backed Securities (14.0%)
EQCC Home Equity Loan Trust, Series 1995-3, Class A4, 7.10%, $1,000,000 $ 1,005,195
2/15/12
EQCC Home Equity Loan Trust, Series 1996-2, Class A4, 7.50%, 700,000 709,146
6/15/21
Ford Credit Auto Owner Trust, Series 1998-B, Class A4, 5.90%, 1,000,000 991,815
6/15/02
Green Tree Financial Corp., Series 1997-7, Class A8, 6.86%, 1,137,643 1,074,941
7/15/29
Household Consumer Loan Trust, Series 1997-1, Class A3, 465,764 462,017
5.76%*,11/15/99
Keystone Home Improvement Loan Trust, Series 1997-P2, Class 638,838 636,442
IA3, 6.99%, 4/25/14, (b)
Main Place Fund, Series 1999-1, 5.17%*,11/26/99 1,000,000 998,015
Premier Auto Trust, Series 1997-1, Class B, 6.55%, 9/6/03 1,000,000 1,000,945
Team Fleet Financing Corp., Series 1997-1, Class A, 7.35%, 1,000,000 1,002,125
----------
5/15/03, (b)
Total Asset Backed Securities (Cost $7,963,860) 7,880,641
----------
Collateralized Mortgage Obligations (11.8%)
American Housing Trust, Series VI, Class 1-I, 9.15%, 5/25/20 503,421 523,428
Asset Securitization Corp., Series 1997-D4, Class A1C, 7.42%, 750,000 764,486
4/14/29
GMAC Commercial Mortgage Securities, Inc., Series 1996-C1, 350,000 350,719
Class A2B, 7.22%, 2/15/06
Independent National Mortgage Corp., Series 1994-V, Class M, 393,355 407,769
8.03%*,11/25/99
Merrill Lynch Mortgage Investors, Inc., Series 1992-H, Class 151,767 151,185
A1-1, 7.30%*,11/25/99
Merrill Lynch Mortgage Investors, Inc., Series 1994-I, Class A1, 123,259 123,686
7.36%*, 11/25/99
Merrill Lynch Mortgage Investors, Inc., Series 1997-C1, Class 1,000,000 997,555
A3, 7.12%, 6/18/29
Resolution Trust Corp., Series 1995-1, Class A2D, 7.50%, 750,000 751,702
10/25/28
Saco I, Inc., Series 1997-2, Class 1A2, 7.00%, 8/25/36 (b) 750,000 749,063
Vendee Mortgage Trust, Series 1992-1, Class 2D, 7.75%, 12/15/14 52,897 52,840
Vendee Mortgage Trust, Series 1995-1C, Class 3E, 8.00%, 7/15/18 750,000 758,341
Vendee Mortgage Trust, Series 1997-1, Class 2C, 7.50%, 9/15/17 1,000,000 1,008,535
----------
Total Collateralized Mortgage Obligations (Cost $6,702,048) 6,639,309
----------
Corporate Bonds (28.4%)
Airlines (3.0%)
Continental Airlines, Series 972A, 7.15%, 6/30/07 944,636 932,691
NWA Trust, 8.26%, 3/10/06 (b) 716,830 726,201
----------
1,658,892
----------
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Intermediate Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- ------
<S> <C> <C>
Banking (3.7%)
Amsouth Bancorp, 6.13%, 3/1/09 $ 700,000 $ 632,310
Chase Capital VI, 5.94%*, 11/1/99, Callable 8/1/03 @ 100 750,000 706,614
First Bank System, Inc., 7.63%, 5/1/05 700,000 724,888
----------
2,063,812
----------
Consumer Goods & Services (1.2%)
Levi Strauss & Co., 6.80%, 11/1/03, (b) 750,000 659,974
----------
Electric Utility (2.6%)
Texas Utilities, 6.20%, 10/1/02, MBIA 500,000 494,621
Utilicorp, 6.88%, 10/1/04, AMBAC 1,000,000 980,710
----------
1,475,331
----------
Electrical & Electronic (0.9%)
Philips Electronics N.V., 7.75%, 4/15/04 500,000 509,259
----------
Financial Services (6.3%)
Goldman Sachs Group LP, 7.88%, 1/15/03 (b) 500,000 514,929
Prudential Insurance, 7.65%, 7/1/07 (b) 1,000,000 1,009,277
Reinsurance Group of America, 7.25%, 4/1/06 (b) 500,000 490,383
Reliastar Financial Corp., 7.13%, 3/1/03 600,000 604,296
Terra Nova Holdings, 7.20%, 8/15/07 1,000,000 963,906
----------
3,582,791
----------
Industrial Goods & Services (4.4%)
Aramark Corp., 6.75%, 8/1/04 500,000 482,234
Nabisco, Inc., 6.00%, 2/15/11 250,000 247,584
Tenneco, Inc., 10.08%, 2/1/01 1,000,000 1,036,617
Tyco International Ltd., 6.50%, 11/1/01 700,000 699,198
----------
2,465,633
----------
Retail Stores/Catalog (2.7%)
Kohls Corp., 6.70%, 2/1/06 500,000 487,333
May Department Stores Co., 7.15%, 8/15/04 1,000,000 1,016,715
----------
1,504,048
----------
Retail-General Merchandise (1.3%)
Pep Boys, 6.71%, 11/3/04 750,000 702,170
----------
Schools (1.4%)
Harvard University, 8.13%, 4/15/07 750,000 808,970
----------
Tobacco (0.9%)
Philip Morris Cos., Inc., 7.63%, 5/15/02 500,000 502,923
----------
Total Corporate Bonds (Cost $16,262,282) 15,933,803
----------
Medium Term/Senior Notes (9.2%)
Aluminum (1.3%)
Reynolds Metals, 7.00%, 5/15/09 750,000 726,832
----------
Banking (2.2%)
Mercantile Bancorp, 7.05%, 6/15/04 750,000 748,666
United Missouri Bancshares, Inc., 7.30%, 2/24/03 500,000 506,565
----------
1,255,231
----------
Financial Services (3.5%)
Charles Schwab, 7.19%, 5/31/01 500,000 503,922
Merrill Lynch, 5.44%*,11/10/99 700,000 698,102
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Intermediate Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- ------
<S> <C> <C>
Paine Webber Group, 6.90%, 8/15/03 $ 750,000 $ 741,527
----------
1,943,551
----------
Oil & Gas Exploration Products & Services (1.3%)
Vastar Resources, Inc., 6.95%, 11/8/06 750,000 734,146
----------
Semiconductors (0.9%)
Applied Materials, Inc., 6.70%, 9/6/05 500,000 481,090
----------
Total Medium Term/Senior Notes (Cost $5,197,137) 5,140,850
----------
Taxable Municipal Bonds (9.2%)
Minnesota (2.0%)
St. Paul, GO, 6.05%, 2/1/07 1,195,000 1,130,462
----------
New York (2.7%)
New York, NY, Series K, GO, 6.10%, 8/1/01 750,000 748,560
State, Series C, GO, 6.13%, 3/1/02 800,000 793,075
----------
1,541,635
----------
Pennsylvania (1.3%)
Philadelphia Authority, Industrial Development, Revenue, Series 750,000 708,857
----------
A, 5.49%, 4/15/04, MBIA
Washington (1.8%)
State, Housing Trust Fund, Series T, 6.60%, 1/1/03 1,000,000 988,945
----------
West Virginia (1.4%)
West Virginia, 7.25%, 11/1/08, 800,000 800,000
----------
Total Taxable Municipal Bonds (Cost $5,356,364) 5,169,899
----------
U.S. Government Agency Obligations (15.4%)
Fannie Mae (11.9%)
6.00%, 5/15/08 4,500,000 4,311,824
6.00%, 4/25/10, Series 1999-25, Class Va 1,458,114 1,396,866
6.00%, 9/25/14, Series 1999-19, Class PC 1,000,000 979,155
----------
6,687,845
----------
Federal Home Loan Bank (3.5%)
7.87%, 10/20/04, Series AW04 1,850,000 1,960,023
----------
Total U.S. Government Agency Obligations (Cost $8,805,439) 8,647,868
----------
U.S. Government Agency Pass-Through Securities (9.3%)
Fannie Mae (9.0%)
7.38%*, 11/1/99, Pool #365421 407,657 409,967
7.13%, 6/1/04, Pool #375168 978,862 982,217
6.18%, 8/1/08, Pool #380581 987,195 932,967
6.00%, 2/1/14, Pool #459495 1,694,835 1,632,153
6.50%, 2/1/28, Pool #415414 1,110,507 1,065,730
----------
5,023,034
----------
Federal Home Loan Mortgage Corp. (0.3%)
7.08%*, 11/1/99, Pool #846367 171,452 176,151
----------
Total U.S. Government Agency Pass-Through Securities (Cost $5,385,381) 5,199,185
----------
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Intermediate Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- ------
<S> <C> <C>
Investment Companies (1.9%)
American AAdvantage U.S. Government Money Market (c) 1,041,364 $ 1,041,364
----------
Total Investment Companies (Cost $1,041,364) 1,041,364
----------
Total (Cost $56,713,875) (a) - 99.2% $55,652,919
==========
</TABLE>
____________
Percentages indicated are based on net assets of $56,091,448.
(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 in excess of federal income tax reporting of
$62,932. Represents cost for federal tax and financial reporting purposes
and differs from market value by net unrealized depreciation of securities
as follows:
Unrealized appreciation $ 55,137
Unrealized depreciation (1,179,025)
-----------
Net unrealized depreciation $ (1,123,888)
===========
(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) Investment in affiliate.
* Variable rate securities. This rate reflected on the Schedule of
Portfolio Investments is the rate in effect at October 31,1999. Maturity
date reflects next rate change date.
AMBAC = Insured by AMBAC Indemnity Corp.
GO = General Obligation
MBIA = Insured by Municipal Bond Insurance Association
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
Stock Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C> <C>
Common Stocks (96.1%)
Aerospace & Military Technology (1.0%)
Lockheed Martin Corp. 26,300 $ 526,000
United Technologies Corp. 9,100 550,550
----------
1,076,550
----------
Automotive (3.9%)
Dana Corp. 27,500 812,969
Delphi Automotive Systems 99,900 1,642,106
Ford Motor Co. 27,900 1,531,013
----------
3,986,088
----------
Banking & Finance (2.1%)
Bank of America Corp. 20,500 1,319,688
Fleet Boston Corp. 7,207 314,405
KeyCorp 19,100 533,606
----------
2,167,699
----------
Beverages (0.6%)
The Pepsi Bottling Group, Inc. 34,000 618,375
----------
Building Products (1.9%)
Masco Corp. 64,500 1,967,250
----------
Computers (3.3%)
Compaq Computer Corp. 67,000 1,273,000
Seagate Technology, Inc. (b) 70,900 2,087,119
----------
3,360,119
----------
Consumer Goods & Services (1.0%)
Avon Products, Inc. 32,500 1,048,125
----------
Containers & Packaging (0.9%)
Crown Cork & Seal Co. 36,800 880,900
----------
Diversified (0.5%)
Tenneco, Inc. 30,000 480,000
----------
Electric Utility (5.7%)
FirstEnergy Corp. 61,800 1,610,663
Florida Power and Light, Inc. 28,900 1,454,031
Public Service Enterprise Group, Inc. 45,300 1,792,181
Texas Utilities Co. 26,300 1,019,125
----------
5,876,000
----------
Electrical & Electronic (1.4%)
Emerson Electric Co. 24,100 1,447,506
----------
Electronic Components/Instruments (1.4%)
Raytheon Co.- Class A 24,000 658,500
Raytheon Co.- Class B 25,400 739,775
----------
1,398,275
----------
Financial Services (3.5%)
Household International, Inc. 21,300 950,513
Washington Mutual, Inc. 74,900 2,691,718
----------
3,642,231
----------
Food Products & Services (7.1%)
Albertson's, Inc. 30,900 1,122,056
Archer-Daniels-Midland Co. 94,546 1,164,098
Bestfoods 22,300 1,310,125
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Stock Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C> <C>
Conagra, Inc. 40,500 $ 1,055,531
H.J. Heinz Co. 55,700 2,659,675
-----------
7,311,485
-----------
Forest Products (3.0%)
Champion International Co. 34,700 2,006,094
Fort James Corp. 43,100 1,134,069
-----------
3,140,163
-----------
Health Care (3.9%)
Abbott Labs 35,800 1,445,425
Baxter International, Inc. 40,200 2,607,975
-----------
4,053,400
-----------
Industrial Goods & Services (7.5%)
Air Products & Chemical, Inc. 25,000 687,500
Dow Chemical Co. 24,300 2,873,474
PPG Industries, Inc. 31,100 1,885,438
Praxair, Inc. 49,300 2,304,775
-----------
7,751,187
-----------
Insurance (9.0%)
Aetna, Inc. 4,700 236,175
Allstate Corp. 80,600 2,317,249
Chubb Corp. 50,500 2,771,187
CIGNA Corp. 8,600 642,850
Loews Corp. 9,100 644,963
St. Paul Cos. 33,800 1,081,600
UNUM Corp. 47,900 1,577,706
-----------
9,271,730
-----------
Machinery & Equipment (2.3%)
Deere & Co. 64,500 2,338,125
-----------
Medical-Hospital Management & Services (1.0%)
Tenet Healthcare Corp. (b) 54,400 1,057,400
-----------
Natural Resources (0.7%)
Amerada Hess Corp. 13,500 774,563
-----------
Non-Hazardous Waste Removal (0.9%)
Waste Management Inc. 53,100 975,713
-----------
Office Equipment & Services (1.7%)
Xerox Corp. 61,200 1,713,600
-----------
Oil & Gas Exploration Products & Services (13.0%)
Burlington Resources, Inc. 57,900 2,019,262
Conoco, Inc. 111,100 3,048,305
Occidental Petroleum Corp. 56,300 1,284,344
Texaco, Inc. 5,500 337,563
Tosco Corp. 39,800 1,007,438
Union Pacific Resources Group, Inc. 95,400 1,383,300
Unocal Corp. 58,300 2,011,350
USX-Marathon Group 81,700 2,379,512
-----------
13,471,074
-----------
Paper & Related Products (4.5%)
Georgia - Pacific Corp. 45,500 1,805,781
International Paper Co. 54,100 2,847,013
-----------
4,652,794
-----------
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Stock Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Market
Shares Value
------ -----
<S> <C> <C>
Photography (1.8%)
Eastman Kodak Co. 26,700 $ 1,840,631
------------
Printing & Publishing (0.1%)
Gannett, Inc. 1,800 138,825
------------
Railroads (5.7%)
Burlington Northern Santa Fe Corp. 102,100 3,254,438
CSX Corp. 40,600 1,664,600
Norfolk Southern Corp. 41,200 1,006,825
------------
5,925,863
------------
Retail Stores/Catalog (4.0%)
Federated Department Stores, Inc. (b) 53,900 2,300,857
May Department Stores Co. 51,650 1,791,609
------------
4,092,466
------------
Telecommunications (2.7%)
AT&T Corp. 23,800 1,112,650
U S WEST, Inc. 27,800 1,697,538
------------
2,810,188
------------
Total Common Stocks (Cost $104,390,620) 99,268,325
------------
Investment Companies (3.1%)
American AAdvantage U.S. Government Money Market (c) 3,239,255 3,239,255
------------
Total Investment Companies (Cost $3,239,255) 3,239,255
------------
Total (Cost $107,629,875) (a) - 99.2% $102,507,580
============
</TABLE>
______________
Percentages indicated are based on net assets of $103,379,512.
(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 $1,779,627. Cost for federal income tax purposes differs
from value by net unrealized depreciation of securities as follows:
Unrealized appreciation $ 3,265,105
Unrealized depreciation (10,167,027)
------------
Net unrealized depreciation $ (6,901,922)
============
(b) Represents non-income producing securities.
(c) Investment in affiliate.
See Notes to Financial Statements.
<PAGE>
INTRUST FUNDS TRUST
Kansas Tax-Exempt Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- -----
<S> <C> <C>
Municipal Bonds (101.8%)
Guam (2.6%)
Guam Government, Series A, 5.90%, 9/1/05, Callable 3/1/99 @ $ 250,000 $ 250,840
100
Guam Power Authority, Series A, 5.25%, 10/1/10, Callable 3,515,000 3,532,575
----------
10/1/09 @ 101, AMBAC (c)
3,783,415
----------
Kansas (97.4%)
Anthony, Elect, Revenue, 5.30%, 12/1/17, Callable 12/1/05 @ 100 1,215,000 1,108,688
Barton County, School District #428, Great Bend, GO, Series A, 1,390,000 1,348,300
5.30%, 9/1/15, Callable 9/1/06 @ 100
Bourbon County, School District #234, GO, Series B, 5.63%, 285,000 288,206
9/1/11, Callable 9/1/06 @ 100, FSA
Brown County, Horton School District #430, GO, 5.38%, 9/1/13, 500,000 495,000
Callable 9/1/06 @ 100, FSA
Butler & Sedgwick County, School District #385, Andover, 370,000 384,800
5.70%, 9/1/15, Callable 9/1/03 @ 100, FSA
Butler & Sedgwick County, School District #385, GO, 5.60%, 1,775,000 1,790,530
9/1/12, Non-Callable, FSA
Butler County, School District #402, GO, 4.15%, 10/1/01, FSA 250,000 249,688
Butler County, School District #402, GO, 4.30%, 10/1/02, FSA 250,000 248,750
Butler County, School District #402, GO, 5.25%, 10/1/12, Callable 500,000 491,250
4/1/04 @ 100, FSA
Coffeyville, Community College, COP, 5.88%, 10/1/14, Callable 250,000 252,188
10/1/04 @ 100
Coffeyville, Water & Sewer Revenue, 4.60%, 10/1/04, Callable 465,000 465,000
10/1/99 @ 101, AMBAC
Coffeyville, Water & Sewer Revenue, 4.70%, 10/1/05, Callable 490,000 489,388
10/1/99 @ 101, AMBAC
Cowley County, School District #470, GO, 5.45%, 12/1/12, 500,000 516,875
Callable 12/1/06 @ 100, FGIC
Cowley County, School District #470, GO, 5.50%, 12/1/16, 1,000,000 1,037,500
Callable 12/1/06 @ 100, FGIC
Dickinson County, Abilene School District #435, GO, Series 1992, 265,000 266,026
5.40%, 4/1/01, Callable 4/1/99 @100
Dickinson County, Abilene School District #435, GO, Series 1992, 300,000 301,122
5.60%, 4/1/03, Callable 4/1/99 @100
Dodge City, School District #443, GO, 4.40%, 9/1/12, Callable 1,020,000 921,825
9/1/08 @ 100, FSA
Dodge City, School District #443, GO, 4.70%, 9/1/15, Callable 975,000 867,750
9/1/08 @ 100, FSA
Dodge, Pollution Control Revenue, 6.63%, 5/1/05 (d) 700,000 740,250
Dodge, School District #443, GO, 4.80%, 3/1/08, Callable 3/1/04 360,000 352,800
@ 100, FSA
Dodge, School District #443, GO, 5.00%, 3/1/14, Callable 3/1/04 250,000 235,938
@ 100, FSA
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Kansas Tax-Exempt Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- -----
<S> <C> <C>
Douglas County, School District #497, GO, 5.00%, 9/1/07 $1,000,000 $1,000,000
Douglas County, School District #497, GO, 4.75%, 9/1/08 1,235,000 1,201,038
Douglas County, School District #497, GO, Series 1993 A, 4.50%, 250,000 249,688
9/1/02, Callable 9/1/01 @ 100
Douglas County, School District #497, GO, Series A, 5.40%, 600,000 582,750
9/1/15, Callable 9/1/06 @ 100
El Dorado, Water Utility System Revenue, 4.40%, 10/1/02 230,000 229,425
El Dorado, Water Utility System Revenue, 4.45%, 10/1/03 305,000 303,856
El Dorado, Water Utility System Revenue, 4.65%, 10/1/05 350,000 344,750
El Dorado, Water Utility System Revenue, 4.70%, 10/1/06, 275,000 270,188
Callable 10/1/05 @ 100
El Dorado, Water Utility System Revenue, 4.75%, 10/1/07, 200,000 195,500
Callable 10/1/05 @ 100
Ellsworth County, School District #328, GO, 5.25%, 9/1/15, 500,000 479,375
Callable 9/1/06 @ 100, FSA
Finney County, GO, 5.00%, 12/1/10, Callable 12/1/07 @ 100, 500,000 488,125
MBIA
Finney County, GO, 4.40%, 12/1/13, Callable 12/1/07 @ 100, 1,010,000 917,838
AMBAC
Finney County, GO, 4.50%, 12/1/15, Callable 12/1/07 @ 100, 1,100,000 979,000
AMBAC
Finney County, School District #457, GO, 5.55%, 10/1/00 250,000 253,580
Franklin County, GO, Series B, 4.75%, 9/1/05, Callable 9/1/03 @ 330,000 326,288
100
Franklin County, School District #290, GO, 5.25%, 9/1/14, 500,000 483,750
Callable 9/1/06 @ 100, FSA
Franklin County, School District #290, GO, 5.30%, 9/1/16, 335,000 320,344
Callable 9/1/06 @ 100, FSA
Garden City, GO, Series B, 4.90%, 11/1/99, MBIA 250,000 250,000
Garden City, GO, Series B, 5.45%, 11/1/04, Callable 11/1/03 @ 250,000 256,875
100, MBIA
Gardner, Electric Utilities Revenue, 7.00%, 11/1/09, Callable 500,000 515,000
11/1/01 @ 101
Gove County, GO, 5.15%, 4/1/12, Callable 10/1/01 @ 101, 560,000 546,000
AMBAC
Gray County, School District #102, GO, 6.80%, 9/1/15, Callable 250,000 263,438
9/1/05 @ 100
Gray County, School District #102, GO, 5.00%, 9/1/15, Callable 800,000 726,000
9/1/08 @ 100
Great Bend, Water System Revenue Series A, 5.15%, 9/1/19, 1,000,000 880,000
Callable 9/1/08 @ 100
Harvey County, School District #373, GO, 5.55%, 9/1/13, 500,000 519,375
Callable 9/1/05 @ 100, FSA
Harvey County, School District #373, GO, 4.80%, 9/1/18, 2,000,000 1,714,999
Callable 9/1/08 @ 100, FSA
Hays, GO, Series A, 5.15%, 9/1/09, Callable 9/1/03 @ 100, FGIC 250,000 255,313
Hays, GO, Series A, 5.25%, 9/1/10, Callable 9/1/03 @ 100, FGIC 250,000 256,250
Hays, Water & Sewer Revenue, 5.20%, 9/1/11, Callable 9/1/03 @ 100, MBIA 260,000 256,100
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Kansas Tax-Exempt Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- -----
<S> <C> <C>
Jefferson County, School District #340, GO, 6.00%, 9/1/06, $ 300,000 $ 316,875
Prerefunded 9/1/04 @ 100, FSA
Jefferson County, School District #340, GO, 6.10%, 9/1/07, 320,000 339,600
Prerefunded 9/1/04 @ 100, FSA
Jefferson County, School District #340, GO, 6.20%, 9/1/08, 330,000 351,450
Prerefunded 9/1/04 @ 100, FSA
Johnson County, School District #223, GO, 5.00%, 9/1/14, 3,000,000 2,827,499
Callable 9/1/09 @ 100, FGIC (c)
Johnson County, School District #232, GO, 5.40%, 9/1/14, 1,050,000 1,034,250
Callable 9/1/07 @ 100, MBIA
Johnson County, School District #233, GO, 5.65%, 9/1/03, 485,000 500,763
Callable 3/1/02 @ 101, AMBAC
Johnson County, School District #233, GO, 5.95%, 9/1/05, 500,000 516,250
Callable 3/1/02 @ 101, AMBAC
Johnson County, School District #512, GO, 5.30%, 10/1/14, 550,000 531,438
Callable 10/1/05 @ 100
Johnson County, School District #512, GO, Series A, 4.60%, 1,135,000 1,098,113
10/1/08
Johnson County, School District #512, GO, Series A, 4.00%, 1,185,000 1,069,463
10/1/09, Callable 10/1/08 @ 100
Johnson County, School District #512, GO, Series A, 4.20%, 1,240,000 1,125,300
10/1/10, Callable 10/1/08 @ 100
Johnson County, School District #512, GO, Series A, 4.30%, 1,290,000 1,164,225
10/1/11, Callable 10/1/08 @ 100
Johnson County, School District #512, GO, Series B, 5.25%, 500,000 468,125
10/1/17, Callable 10/1/06 @ 100
Johnson County, Water District #001 Revenue, 5.13%, 12/1/08, 250,000 250,000
Callable 12/1/03 @ 100
Johnson County, Water District #001 Revenue, Series 1990-A, 250,000 257,430
6.90%, 12/1/00
Junction City, GO, Series DD, 6.20%, 9/1/06, Callable 9/1/00 @ 515,000 521,159
100
Junction City, Water & Sewer, GO, 4.80%, 9/1/16, Callable 1,620,000 1,445,850
9/1/08 @ 100, MBIA
Kansas City, GO, 5.45%, 4/1/17, Callable 10/1/06 @ 100, FGIC 340,000 326,825
Kansas City, GO, 5.45%, 10/1/17, Callable 10/1/06 @ 100, FGIC 450,000 430,313
Kansas City, GO, Series B, 5.38%, 9/1/10, Callable 9/1/05 @ 100, 1,500,000 1,503,749
MBIA (c)
Kansas City, Pollution Control, Revenue, General Motors Corp., 500,000 505,625
5.45%, 4/1/06, Callable 10/1/99 @ 101
Kansas Turnpike Authority, 5.50%, 9/1/06, AMBAC 1,915,000 1,982,024
Kearny County, School District #215, GO, 4.80%, 9/1/13, 700,000 655,375
Callable 9/1/06 @ 100, MBIA
Labette County, Single Family Mortgage Revenue, 7.65%, 560,000 588,000
12/1/11, Callable 6/1/08 @ 103, GNMA
Lawrence Kansas Hospital Revenue, 6.00%, 7/1/19, Callable 1,000,000 971,250
7/1/09 @100
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Kansas Tax-Exempt Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- -----
<S> <C> <C>
Lawrence, Sales Tax, GO, Series V, 5.50%, 9/1/12, Callable $ 500,000 $ 500,000
9/1/04 @ 100
Lawrence, Water & Sewer System Revenue, 5.70%, 11/1/11, 395,000 401,419
Callable 11/1/05 @ 100
Lawrence, Water & Sewer System Revenue, 5.25%, 11/1/15, 505,000 478,488
Callable 11/1/06 @ 100
Lawrence, Water & Sewer System Revenue, 5.20%, 11/01/16, 250,000 233,750
Callable 11/1/06 @100
Leavenworth County, School District #453, GO, 4.70%, 9/1/11, 400,000 376,000
Callable 9/1/07 @ 100, FGIC
Leavenworth County, School District #453, GO, 4.80%, 9/1/12, 460,000 432,400
Callable 9/1/07 @ 100, FGIC
Leavenworth County, School District #469, GO, 4.60%, 9/1/05, 340,000 336,175
FSA
Leavenworth Hospital Revenue, 6.13%, 4/1/15, Callable 4/1/07 @ 415,000 396,844
102
Leawood, GO, Series A, 5.00%, 9/1/00 300,000 302,793
Leawood, GO, Series A, 5.20%, 9/1/01, Callable 9/1/00 @ 100 250,000 251,978
Leawood, GO, Series A, 5.25%, 9/1/09, Callable 9/1/06 @ 100 250,000 250,938
Leawood, GO, Series A, 5.35%, 9/1/10, Callable 9/1/06 @ 100 250,000 251,563
Leawood, GO, Series A, 5.40%, 9/1/11, Callable 9/1/06 @ 100 375,000 376,406
Leawood, GO, Series B, 5.00%, 9/1/10, Callable 9/1/06 @ 100 400,000 392,500
Lyons County, School District #253, GO, 5.60%, 10/1/10, Callable 650,000 661,375
10/1/03 @ 102
Manhattan, GO, 5.40%, 11/1/16, Callable 11/1/04 @ 100 405,000 388,294
Manhattan, GO, Series 189, 5.85%, 11/1/02, Callable 11/1/01 @ 250,000 256,875
100
Marion County, School District #411, GO, 5.30%, 4/1/13, Callable 660,000 650,100
4/1/03 @ 101.5
McPherson County, School District #400, GO, 5.20%, 12/1/10, 250,000 249,375
Callable 12/1/05 @ 100, FGIC
McPherson County, School District #400, GO, 5.25%, 12/1/12, 250,000 246,563
Callable 12/1/05 @ 100, FGIC
McPherson, Electric Utility Revenue, 5.55%, 3/1/09, Callable 550,000 550,440
3/1/00 @ 100, AMBAC
McPherson, GO, Series 116, 5.00%, 11/1/06, Callable 11/1/99 @ 500,000 500,215
100, AMBAC
Meade, Industrial Revenue, 6.50%, 10/1/06 (c) 1,000,000 1,091,250
Miami County, School District #367, GO, 5.00%, 9/1/16, Callable 900,000 826,875
9/1/08 @ 100, FGIC
Miami County, School District #368, GO, 6.50%, 12/1/05, 500,000 520,000
Callable 6/1/02 @ 100, AMBAC
Miami County, School District #416, GO, 6.00%, 9/1/02, Callable 250,000 253,035
9/1/00 @ 100, AMBAC
Miami County, School District, GO, Series A, 5.85%, 9/1/13, 550,000 577,500
Prerefunded 9/1/04 @ 100, AMBAC
Nemaha County, School District #441, GO, 5.40%, 3/1/02, 250,000 252,813
Callable 3/1/01 @ 100, AMBAC
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Kansas Tax-Exempt Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- ------
<S> <C> <C>
Nemaha County, School District #441, GO, 5.75%, 3/1/07, $ 250,000 $ 252,500
Callable 3/1/01 @ 100, AMBAC
Neosho County, School District #413, GO, 5.65%, 9/1/01 260,000 265,850
Newton, Wastewater Treatment System Revenue, 6.00%, 3/1/00 115,000 115,748
Newton, Wastewater Treatment System Revenue, 6.20%, 3/1/01 120,000 122,850
Newton, Wastewater Treatment System Revenue, 6.40%, 3/1/02 130,000 135,200
Newton, Wastewater Treatment System Revenue, 4.90%, 3/1/12, 700,000 650,125
Callable 3/1/07 @ 100
Olathe, GO, 4.35%, 4/1/09, Callable 4/1/07, FSA 1,710,000 1,598,849
Olathe, Health Facility Revenue, 5.20%, 9/1/17, Callable 9/1/05 1,000,000 918,750
@ 100
Olathe, Labette County, Mortgage Loan Revenue, 7.15%, 2/1/15, 15,000 15,581
Callable 8/1/01 @ 103, GNMA
Olathe, Multifamily Housing Revenue, 5.50%, 6/1/04, FNMA 295,000 300,163
Olathe, Water & Sewer System Revenue, 5.20%, 7/1/12, Callable 1,170,000 1,139,288
7/1/06 @ 100, AMBAC
Osage County, School District #434, GO, 4.75%, 9/1/14, Callable 2,215,000 2,035,030
9/1/03 @ 100.5, FSA
Osborne, GO, Series 1992, 5.50%, 12/1/01, Callable 12/1/98 @ 135,000 135,101
100
Osborne, GO, Series 1992, 5.60%, 12/1/02, Callable 12/1/98 @ 140,000 140,099
100
Osborne, GO, Series 1992, 5.70%, 12/1/03, Callable 12/1/98 @ 150,000 150,110
100
Osborne, GO, Series 1992, 5.80%, 12/1/04, Callable 12/1/98 @ 155,000 155,124
100
Ottawa, Waterworks & Electric System Revenue, 6.15%, 250,000 255,525
12/1/00, MBIA
Ottawa, Waterworks & Electric System Revenue, 6.25%, 250,000 259,688
12/1/01, MBIA
Pawnee County, School District #495, GO, 5.10%, 9/1/04, 255,000 260,100
Callable 9/1/03 @ 100, FSA
Pottawatomie County, School District #320, GO, Series 1990, 500,000 519,375
6.60%, 10/1/02, Callable 10/1/01 @ 100, AMBAC
Pottawatomie County, School District #322, GO, 4.95%, 10/01/12, 700,000 658,000
Callable 10/1/04 @ 100
Pratt, Electric System Revenue, 6.60%, 11/1/07, AMBAC 250,000 270,625
Pratt, Electric System Revenue, 4.95%, 11/1/10, Callable 11/1/05 635,000 615,950
@ 101, AMBAC
Pratt, Electric System Revenue, 5.00%, 11/1/11, Callable 11/1/05 415,000 401,513
@ 101, AMBAC
Pratt, Electric System Revenue, 6.00%, 11/1/12, Prerefunded 250,000 255,073
11/1/00 @ 100, AMBAC
Reno County, Mortgage, Series B, 8.70%, 9/1/11, Callable 9/1/01 80,000 83,800
@ 103
Rice County, Union School District #444, 5.08%, 9/1/14, Callable 755,000 691,769
9/1/07 @ 100
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Kansas Tax-Exempt Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- -----
<S> <C> <C>
Salina Hospital Revenue, 5.30%, 10/1/13, Callable 10/1/03 @ 100, $ 750,000 $ 722,813
AMBAC
Salina, Water & Sewer Revenue, 5.00%, 9/1/07, Callable 9/1/02 330,000 329,175
@ 100, MBIA
Saline County, School District #305, GO, 4.75%, 9/1/14, Callable 2,025,000 1,802,249
9/1/08 @ 100, FSA
Scott County, School District #466, GO, Series 1993, 5.38%, 685,000 687,569
9/1/06, Callable 9/1/01 @ 100
Sedgwick & Shawnee Counties, Single Family Revenue, 4.90%, 685,000 678,150
6/1/16
Sedgwick & Shawnee Counties, Single Family Revenue, 6.70%, 1,130,000 1,190,738
6/1/29
Sedgwick & Shawnee Counties, Single Family Revenue Series 285,000 313,500
B-1, 8.05%, 5/1/14, GNMA
Sedgwick County, Family Mortgage, Series A-2, 6.50%, 12/1/16, 770,000 777,700
Callable 12/1/07 @ 105, GNMA
Sedgwick County, Mortgage Loan Revenue Series A, 7.30%, 350,000 364,438
12/1/12, Callable 9/1/01 @ 103, GNMA
Sedgwick County, School District #260, GO, 4.65%, 10/1/11, 1,220,000 1,140,700
Callable 10/1/08 @ 100, AMBAC
Sedgwick County, School District #261, GO, 4.75%, 11/1/17, 2,525,000 2,171,499
Callable 11/1/09 @ 100, FSA
Sedgwick County, School District #265, GO, 4.30%, 10/1/07, FSA 1,000,000 955,000
Sedgwick County, School District #265, GO, 4.25%, 10/1/08, FSA 1,000,000 936,250
Sedgwick County, School District #265, GO, 4.35%, 10/1/09, FSA 1,000,000 932,500
Sedgwick County, School District #266, GO, 5.25%, 9/1/13, 650,000 635,375
Callable 9/1/02 @ 101, FGIC
Seward County, GO, Series B, 6.00%, 8/15/08, Callable 8/15/01 250,000 253,750
@ 100, AMBAC
Seward County, GO, Series B, 6.00%, 8/15/13, Callable 8/15/01 250,000 252,188
@ 100, AMBAC
Seward County, School District #480, GO, 5.00%, 9/1/14, Callable 1,640,000 1,545,699
9/1/06 @ 100, FSA
Seward County, School District #480, GO, Series 1992, 5.00%, 500,000 500,345
12/1/00, Callable 12/1/98 @ 100, MBIA
Seward County, School District #483, Kismet-Plains, GO, 5.20%, 600,000 579,000
10/1/12, Callable 10/1/06 @ 100
Shawnee County, GO, 4.70%, 9/1/11, Continuously Callable 1,945,000 1,828,299
9/1/08 @ 100
Shawnee County, GO, Series B, 5.50%, 9/1/09, Prerefunded 250,000 257,813
9/1/03 @ 100
Shawnee County, GO, Series B, 5.50%, 9/1/11, Prerefunded 250,000 257,813
9/1/03 @ 100
Shawnee County, GO, Series C, 5.60%, 9/1/04, Callable 9/1/02 @ 500,000 511,875
100
Shawnee County, Health Care Revenue, 5.15%, 8/15/10, Callable 500,000 493,125
8/15/05 @ 100, FSA
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Kansas Tax-Exempt Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- -----
<S> <C> <C>
Shawnee County, School District #345, GO, 5.75%, 9/1/11, $ 250,000 $ 261,563
Prerefunded 9/1/04 @ 100, MBIA
Shawnee County, School District #345, GO, 4.75%, 9/1/11, 1,590,000 1,500,562
Callable 9/1/04 @ 101.5, MBIA
Shawnee County, School District #437, Auburn-Washburn, GO, 700,000 725,375
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 1,467,655
Shawnee County, School District #501, GO, 4.38%, 2/1/07, 1,675,000 1,607,999
Callable 2/1/06 @ 100
Shawnee County, School District #501, GO, 4.38%, 8/1/11, 1,130,000 1,025,475
Callable 8/1/08 @ 100, FSA
State Development Finance Authority Revenue, 4.20%, 6/1/07, 1,365,000 1,289,925
FSA
State Development Finance Authority Revenue, 5.50%, 8/1/15, 1,500,000 1,451,249
Callable 8/1/11 @ 100, MBIA
State, Department of Transportation, Highway Revenue, 5.38%, 1,000,000 981,250
3/1/13, Callable 3/1/03 @ 102
State, Department of Transportation, Highway Revenue, 5.50%, 1,000,000 991,250
9/1/14
State, Department of Transportation, Highway Revenue, Series 250,000 253,125
1993, 5.00%, 3/1/04, Callable 3/1/03 @ 102
State, Development Finance Authority Revenue, 5.13%, 6/1/06, 250,000 252,813
Callable 6/1/03 @ 102, AMBAC
State, Development Finance Authority Revenue, 5.00%, 8/1/11, 1,500,000 1,451,249
Callable 8/1/09 @ 100, MBIA
State, Development Finance Authority Revenue, 5.50%, 5/1/14, 1,000,000 988,750
Callable 5/1/07 @ 100 (c)
State, Development Finance Authority Revenue, 5.00%, 4/1/19, 1,000,000 872,500
Callable 4/1/09 @ 100, AMBAC
State, Development Finance Authority Revenue, Department of 250,000 255,613
Corrections, El Dorado, Project L, 5.63%, 2/1/03, Callable 2/1/00
@ 102, MBIA
State, Development Finance Authority Revenue, Project K-II, 500,000 501,250
5.50%, 10/1/10, Callable 10/1/01 @ 101
State, Development Finance Authority Revenue, Project K-II, 500,000 501,250
5.60%, 10/1/11, Callable 10/1/01 @ 101
State, Development Finance Authority Revenue, Series J, 5.40%, 500,000 501,875
4/1/10, Callable 4/1/05 @ 100
State, Development Finance Authority, Educational, 4.80%, 345,000 336,375
10/1/08, Callable 10/1/04 @ 100
State, Development Finance Authority, Educational, 5.00%, 500,000 477,500
10/1/12, Callable 10/1/04 @ 100
State, Development Finance Authority, Health Facilities Revenue 500,000 475,625
Hays Medical Center Inc., 5.50%, 11/15/17, Callable 11/15/07 @
100, MBIA
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Kansas Tax-Exempt Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- -----
<S> <C> <C>
State, Development Finance Authority, Health Facilities Revenue $ 500,000 $ 512,500
Stormont Health Care, 5.75%, 11/15/10, Callable 11/15/06 @ 100,
MBIA
State, Development Finance Authority, Health Facilities Revenue 500,000 505,000
Stormont Health Care, 5.80%, 11/15/16, Callable 11/15/06 @ 100,
MBIA
State, Development Finance Authority, Health Facilities Revenue, 500,000 475,625
Hays Medical Center Inc., 5.38%, 11/15/16, Callable 11/15/06 @
102, MBIA
State, Development Finance Authority, Health Facilities Revenue, 475,000 488,656
Stormont Health Care, 5.40%, 11/15/05, MBIA
State, Development Finance Authority, Water Supply, 4.40%, 1,000,000 973,750
4/1/06, AMBAC
State, Development Finance Board Regents, 4.38%, 10/1/03, 1,000,000 995,000
AMBAC
State, Development Financial Authority, Health Facilities 500,000 501,875
Revenue, Hays Medical Center, Series B, 5.38%, 11/15/10,
Callable 11/15/07 @ 100, MBIA
State, Public Water Supply Revenue, 4.15%, 4/1/06 1,000,000 952,500
State, Turnpike Authority Revenue, 5.40%, 9/1/09, Callable 9/1/03 260,000 262,275
@ 102, AMBAC
Sumner County, Bridge Improvement, GO, Series 1992, 6.00%, 435,000 449,681
11/1/04, Callable 11/1/01 @ 100, AMBAC
Sumner County, Bridge Improvement, GO, Series 1992, 6.00%, 250,000 258,438
11/1/05, Callable 11/1/01 @ 100, AMBAC
Sumner County, School District #357, Belle Plaine, GO, 5.55%, 375,000 374,063
9/1/13, Callable 9/1/03 @ 100
Thomas County, School District #315, GO, Series A, 4.35%, 1,055,000 934,994
9/1/13, Callable 9/1/07 @ 100, FSA
Topeka Public Building Commission Revenue, 5.00%, 6/1/19, 1,100,000 959,750
Callable 6/1/09 @ 100, MBIA
Topeka, GO, Series A, 5.50%, 8/15/16, Callable 8/15/01 @ 101 500,000 483,125
Topeka, Hospital Revenue, 6.75%, 11/15/00, MBIA 500,000 514,285
University Kansas Hospital Authority, 5.50%, 9/1/15, Callable 1,645,000 1,603,874
9/1/09 @ 100, AMBAC
Washburn University of Topeka, KS, Revenue, 5.30%, 7/1/06, 435,000 443,700
AMBAC (b)
Washburn University of Topeka, KS, Revenue, 5.35%, 7/1/07, 460,000 469,200
AMBAC (b)
Washburn University of Topeka, KS, Revenue, 5.45%, 7/1/08, 485,000 495,913
AMBAC (b)
Wellington, Water & Sewer Revenue, 5.15%, 5/1/18, Callable 1,000,000 906,250
5/1/08 @ 100, AMBAC
Wichita, GO, 4.70%, 9/1/12, Callable 9/1/04 @ 101 565,000 521,213
Wichita, GO, Series 746, 5.30%, 9/1/12, Callable 9/1/04 @ 100 750,000 736,875
Wichita, GO, Series 752, 4.50%, 9/1/08, Callable 9/1/05 @ 101 1,000,000 963,750
</TABLE>
Continued
<PAGE>
INTRUST FUNDS TRUST
Kansas Tax-Exempt Bond Fund
Schedule of Portfolio Investments
October 31, 1999
<TABLE>
<CAPTION>
Principal Market
Amount/Shares Value
------------- -----
<S> <C> <C>
Wichita, Hospital Improvements Series XI, Revenue, 5.00%, $ 1,215,000 $ 1,215,000
11/15/04, (b)
Wichita, Hospital Improvements Series XI, Revenue, 5.40%, 2,085,000 2,070,300
11/15/08, (b)
Wichita, Hospital Improvements Series XI, Revenue, 6.75%, 2,000,000 2,046,239
11/15/19, Callable 11/15/09 @ 101, (b)
Wichita, Hospital Revenue, 6.00%, 7/1/04, Callable 6/8/98 @ 100 687,000 705,893
Wichita, Multifamily Housing Revenue, 5.90%, 12/1/16, Callable 660,000 661,650
12/1/05 @ 102
Wichita, Water & Sewer Revenue, 4.75%, 10/1/08, Callable 405,000 394,369
10/1/04 @ 101, FGIC
Wichita, Water & Sewer Revenue, 4.88%, 10/1/09, Callable 900,000 876,375
10/1/04 @ 101, FGIC
Wichita, Water & Sewer Revenue, 4.70%, 10/1/12, Callable 2,000,000 1,847,499
10/1/05 @ 101, FGIC
Wyandotte County, Government Utility System Revenue, 4.75%, 3,000,000 2,512,499
9/1/18, MBIA, Callable 3/1/09 @ 101 (c)
Wyandotte County, School District #203, Piper, GO, Series 1992, 295,000 299,794
5.90%, 9/1/04, Callable 9/1/01 @ 100
Wyandotte County, School District #203, Piper, GO, Series 1992, 500,000 516,250
6.60%, 9/1/13, Callable 9/1/01 @ 100
Wyandotte County/Kansas City, University, GO, 4.30%, 9/1/05, 1,500,000 1,460,624
-----------
AMBAC
141,781,995
-----------
Puerto Rico (1.8%)
Puerto Rico Commonwealth, Highway & Transportation 500,000 505,000
Authority, Highway Revenue, Series X, 5.00%, 7/1/02
Puerto Rico, Electric Power Authority Revenue, Series S, 6.13%, 1,000,000 1,083,750
7/1/09, MBIA-IBC
Puerto Rico, Electric Power Authority Revenue, Series Z, 5.50%, 1,000,000 991,250
---------
7/1/14, Callable 7/1/05 @ 102, MBIA-IBC
2,580,000
---------
Total Municipal Bonds (Cost $153,565,086) 148,145,410
-----------
Investment Companies (0.4%)
Federated Tax-Exempt Money Market Fund 611,665 611,665
------------
Total Investment Companies (Cost $611,665) 611,665
------------
Total (Cost $154,176,751) (a) - 102.2% $148,757,075
============
</TABLE>
__________________
Percentages indicated are based on net assets of $145,607,146.
Continued
<PAGE>
INTRUST FUNDS TRUST
Kansas Tax-Exempt Bond Fund
Schedule of Portfolio Investments
October 31, 1999
(a) Represents cost for federal tax and financial reporting purposes and
differs from market value by net unrealized depreciation of securities as
follows:
Unrealized appreciation $ 839,106
Unrealized depreciation (6,258,782)
-------------
Net unrealized depreciation $ (5,419,676)
=============
(b) Represents security purchased on a when-issued basis. At October 31, 1999,
total cost of investments purchased on a when-issued basis was $6,743,067.
(c) All or part of this security was segregated to be used to fulfill
commitments related to the when-issued security.
(d) 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 liquid by procedures approved by the
Board of trustees.
AMBAC = Insured by AMBAC Indemnity Corp.
COP = Certificate of Participation
FGIC = Insured by Financial Guaranty Insurance Corp.
FNMA = Insured by Fannie Mae
FSA = Insured by Financial Security Assurance
GNMA = Insured by Ginnie Mae
GO = General Obligation
IBC = Insured Bond Certificate
MBIA = Insured by Municipal Bond Insurance Association
<PAGE>
INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1999
================================================================================
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 offers eleven series, including the NestEgg Funds. The
accompanying financial statements and financial highlights are those of the
Money Market Fund, the Short-Term Bond Fund, the Intermediate Bond Fund, the
Stock Fund, the International Multi-Manager Stock Fund, and the Kansas Tax-
Exempt Bond Fund (individually a "Fund", collectively the "Funds"). The Trust
is authorized to offer two classes of shares: Service and Premium. The Premium
shares, which have not yet been offered for sale, may be subject to additional
12b-1 distribution fees. Each Fund is currently offered in the Service Class
only.
The Funds' investment objectives are as follows:
Fund Objective
---- ---------
Money Market Fund Seeks to provide investors with current income,
liquidity and the maintenance of a stable net asset
value of $1.00 per share.
Short-Term Bond Fund Seeks to provide investors with a high level of
current income consistent with liquidity and safety
of principal.
Intermediate Bond Fund Seeks to provide investors with a competitive total
return.
Stock Fund Seeks to provide investors with long-term capital
appreciation.
International Multi-Manager
Stock Fund Seeks to provide investors with long-term capital
appreciation by investing in equity securities of
issuers based outside the United States.
Kansas Tax-Exempt Bond Fund Seeks to preserve capital while producing current
income for the investor that is exempt from both
federal and Kansas state income taxes.
The 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, 1999 was approximately 4.73%. 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.
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.
<PAGE>
INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1999
================================================================================
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. Over-the-counter securities are valued on the
basis of the bid price at the close of business on each business day. 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. Securities for
which market quotations are not readily available are valued at fair market
value by the investment adviser (or the sub-adviser) in accordance with
guidelines 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 Kansas Tax-Exempt Bond
Fund held six such securities as of October 31, 1999.
Repurchase Agreements:
The Funds may enter into repurchase agreements with any bank and broker-dealer
which, in the opinion of the Trustees, presents a minimal risk of bankruptcy.
Under a repurchase agreement a Fund acquires securities and obtains a
simultaneous commitment from the seller to repurchase the securities at a
specified time and at an agreed upon yield. The agreements will be fully
collateralized and the value of the collateral, including accrued interest,
marked-to-market daily. If the seller should default on its obligation to
repurchase the securities, a Fund may experience a loss of income and a decrease
in the value of any collateral, problems in exercising its rights to the
underlying securities and costs and time delays in connection with the
disposition of securities.
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
Continued
<PAGE>
INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1999
================================================================================
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.
Continued
<PAGE>
INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1999
================================================================================
As of October 31, 1999, 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 $ 1,763 $ (1,763)
Short-Term Bond Fund (1,491) 1,491
Intermediate Bond Fund (3,082) 3,082
Stock Fund 10 (10)
Kansas Tax-Exempt Bond Fund (3) 3
</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., Inc. - 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%.
Continued
<PAGE>
INTRUST FUNDS TRUST
Notes to Financial Statements
October 31, 1999
================================================================================
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 "Plans") pursuant to
Rule 12b-1 under the 1940 Act. As provided under the Plans, the Trust will pay
the Distributor up to an annual rate of 0.25% of the average daily net assets
of the Service shares of the Funds and 0.75% of the average daily net assets of
the Premium shares 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 0.25% of the daily net asset value of the Funds' shares owned
by shareholders with whom the Service Organizations have 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 an
annual rate of no more than 0.60% and 1.10% of average daily net assets for
Service shares and Premium shares, respectively.
Additional information regarding related party transactions is as follows for
the year ended October 31, 1999:
<TABLE>
<CAPTION>
Money
Market Short-Term Intermediate
Fund Bond Fund Bond Fund
---- --------- ---------
<S> <C> <C> <C>
Investment Advisory Fees Waived $ 38,802 $131,332 $ 60,914
12b-1 Fees Waived 194,001 156,349 138,442
Sub-Advisory Fees Waived 38,801 --- ---
Shareholder Servicing Fees Waived 131,920 106,317 94,140
Transfer Agent Fees Waived 12,000 9,728 9,790
International Kansas
Multi-Manager Tax-Exempt
Stock Fund Stock Fund Bond Fund
---------- ---------- ---------
Investment Advisory Fees Waived $145,130 $ 29,665 $199,781
Administration Fees Waived --- --- 43,222
12b-1 Fees Waived 279,099 148,321 372,437
Shareholder Servicing Fees Waived 189,786 100,858 272,317
Custody Fees Waived --- --- 4,757
Transfer Agent Fees Waived 4,480 7,792 5,905
</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 eleven series and two classes: Service and
Premium. As of and for the year ended October 31, 1999, no shareholders were in
the Premium class. Shareholders are entitled to one vote for each full share
held and will vote in the aggregate and not by class or series, except as
otherwise expressly required by law or when the Board of Trustees has determined
that the matter to be voted on affects only the interest of shareholders of a
particular class or series.
Continued
<PAGE>
THE INTRUST FUNDS
Notes to Financial Statements
October 31, 1999
- --------------------------------------------------------------------------------
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, 1999 were as
follows:
<TABLE>
<CAPTION>
Purchases Sales
--------- -----
<S> <C> <C>
Short-Term Bond Fund $ 37,205,010 $ 35,417,002
Intermediate Bond Fund 30,805,430 25,363,437
Stock Fund 122,724,440 120,303,604
Kansas Tax-Exempt Bond Fund 57,430,620 30,762,498
</TABLE>
6. Concentration of Credit Risk:
The Money Market Fund's policy of concentrating in the banking industry could
increase the Fund's exposure to economic or regulatory developments relating to
or affecting banks. Banks are subject to extensive governmental regulation
which may limit both the amounts and types of loans and other financial
commitments they can make and the interest rates and fees they can charge. The
financial condition of banks is largely dependent on the availability and cost
of capital funds, and can fluctuate significantly when interest rates change.
In addition, general economic conditions may affect the financial condition of
banks.
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. At
October 31, 1999 the Fund had the following concentrations by industry sector
(as a percentage of total investments):
Development 4.17%
Education .20%
Facilities .73%
General 2.18%
General Obligation 19.40%
Higher Education 2.60%
Medical 5.90%
Multi-family Housing .67%
Nursing Home .66%
Pollution .98%
Power 5.73%
School District 31.72%
Single-family Housing 2.46%
Transportation 4.22%
Utilities 9.04%
Water 9.34%
------
100%
======
Continued
<PAGE>
THE INTRUST FUNDS
Notes to Financial Statements
October 31, 1999
- --------------------------------------------------------------------------------
7. Subsequent Events:
On November 22, 1999, the Board of Trustees of the Trust ratified an agreement
between the Trust, INTRUST Bank N.A. and INTRUST Financial Services, Inc.,
whereby INTRUST Financial Services, Inc, a wholly-owned subsidiary of INTRUST
Bank N.A., agrees to assume the duties and responsibilities of INTRUST Bank N.A.
under the Master Investment Advisory contract between INTRUST Bank N.A. and the
Trust. It is anticipated that INTRUST Financial Services, Inc. will assume
these duties on March 1, 2000 as a result of recent changes to investment
adviser regulations.
On November 22, 1999, the Board of Trustees of the Trust approved on behalf of
the Stock Fund, and recommended for shareholder approval, new sub-advisory
arrangements between AMR Investment Services, Inc. ("AMR") and INTRUST Bank,
N.A., the investment adviser to the Stock Fund ("Sub-Advisory Agreement") and
between Barrow, Hanley, Mewhinney & Strauss, Inc. ("Barrow Hanley") and AMR (the
"AMR Agreement"). AMR currently serves as Sub-Adviser for the Intrust Money
Market Fund. AMR will retain Barrow Hanley to manage the Stock Fund's
investments. The current sub-adviser for the Stock Fund, Ark Asset Management
Company, Inc. resigned as sub-adviser effective December 31, 1999. The change
in sub-advisers will not result in any changes in advisory fees currently paid
by the Stock Fund to INTRUST Bank. Shareholders of the Stock Fund as of the
record date, November 22, 1999, will vote on these proposals for the Sub-
Advisory Agreement and the AMR Agreement in connection with the Fund's
shareholder meeting to be held on December 28, 1999.
8. Federal Income Tax Information:
During the year ended October 31, 1999, the following Funds declared long-term
capital gain distributions in the following amounts:
<TABLE>
<CAPTION>
Fund Amount
- ---- ------
<S> <C>
Intermediate Bond Fund $ 26,528
Stock Fund 3,454,562
Kansas Tax-Exempt Bond Fund 585,483
</TABLE>
At October 31, 1999, 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>
Intermediate Bond Fund $48,125 2007
</TABLE>
It is the intent of the Fund to use these carryforwards are used to offset
future capital gains.
9. Other Federal Income Tax Information (unaudited):
For the taxable year ended October 31, 1999, 13.49% of the income dividends paid
by the Stock Fund qualify for the dividends received deduction available to
corporations.
During the fiscal year ended October 31, 1999, the Kansas Tax-Exempt Bond Fund
declared tax-exempt income distributions in the amount of $6,511,702.
Capital losses incurred after October 31, 1998, within the Kansas Tax-Exempt
Bond Fund's fiscal year are deemed to arise on the first business day of the
following fiscal year for tax purposes. The Kansas Tax-Exempt Bond Fund has
incurred and will elect to defer such capital losses of $156,926.
<PAGE>
INTRUST FUNDS TRUST
Money Market Fund
Financial Highlights
<TABLE>
<CAPTION>
January 23,
For the For the 1997 to
Year ended Year ended October 31,
October 31, 1999 October 31, 1998 1997 (a)
----------------- ---------------- --------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.000 $ 1.000 $ 1.000
----------------- ---------------- --------------
Investment Activities
Net investment income 0.046 0.050 0.038
----------------- ---------------- --------------
Total from Investment Activities 0.046 0.050 0.038
----------------- ---------------- --------------
Distributions
Net investment income (0.046) (0.050) (0.038)
----------------- ---------------- --------------
Total Distributions (0.046) (0.050) (0.038)
----------------- ---------------- --------------
Net change in net asset value per share - - -
----------------- ---------------- --------------
Net Asset Value, End of Period $ 1.000 $ 1.000 $ 1.000
================= ================ ==============
Total Return 4.70% 5.13% 3.86% (b)
Ratios/Supplementary Data:
Net Assets at end of year (000) $ 97,364 $ 50,746 $ 55,566
Ratio of expenses to average net assets 0.59% 0.67% 0.71% (c)
Ratio of net investment income to average net assets 4.61% 5.04% 4.92% (c)
Ratio of expenses to average net assets* 1.13% 1.03% 1.11% (c)
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions 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
Short-Term Bond Fund
Financial Highlights
<TABLE>
<CAPTION>
January 21,
For the For the 1997 to
Year ended Year ended October 31,
October 31, 1999 October 31, 1998 1997 (a)
---------------- ---------------- -----------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.20 $ 10.08 $ 10.00
---------------- ---------------- -----------------
Investment Activities
Net investment income 0.53 0.57 0.42
Net realized and unrealized gain/(loss) on investments (0.30) 0.12 0.08
---------------- ---------------- -----------------
Total from Investment Activities 0.23 0.69 0.50
---------------- ---------------- -----------------
Distributions
Net investment income (0.53) (0.57) (0.42)
---------------- ---------------- -----------------
Total Distributions (0.53) (0.57) (0.42)
---------------- ---------------- -----------------
Net change in net asset value per share (0.30) 0.12 0.08
---------------- ---------------- -----------------
Net Asset Value, End of Period $ 9.90 $ 10.20 $ 10.08
================ ================ =================
Total Return 2.35% 6.96% 5.13% (b)
Ratios/Supplementary Data:
Net Assets at end of year (000) $ 61,302 $ 61,371 $ 52,682
Ratio of expenses to average net assets 0.65% 0.67% 0.78% (c)
Ratio of net investment income to average net assets 5.31% 5.59% 5.48% (c)
Ratio of expenses to average net assets* 1.30% 1.13% 1.25% (c)
Portfolio turnover rate 58.94% 55.75% 84.41% (b)
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions 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
Intermediate Bond Fund
Financial Highlights
<TABLE>
<CAPTION>
January 21,
For the For the 1997 to
Year ended Year ended October 31,
October 31, 1999 October 31, 1998 1997 (a)
---------------- ---------------- -----------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.43 $ 10.21 $ 10.00
---------------- ---------------- -----------
Investment Activities
Net investment income 0.57 0.59 0.45
Net realized and unrealized gain/(loss) on investments (0.56) 0.22 0.21
---------------- ---------------- -----------
Total from Investment Activities 0.01 0.81 0.66
---------------- ---------------- -----------
Distributions
Net investment income (0.57) (0.59) (0.45)
In excess of net realized gains (0.01) - -
---------------- ---------------- -----------
Total Distributions (0.58) (0.59) (0.45)
---------------- ---------------- -----------
Net change in net asset value per share (0.57) 0.22 0.21
---------------- ---------------- -----------
Net Asset Value, End of Period $ 9.86 $ 10.43 $ 10.21
================ ================ ===========
Total Return 0.11% 8.16% 6.77% (b)
Ratios/Supplementary Data:
Net Assets at end of year (000) $ 56,091 $ 52,993 $ 46,492
Ratio of expenses to average net assets 0.76% 0.78% 0.90% (c)
Ratio of net investment income to average net assets 5.69% 5.74% 5.83% (c)
Ratio of expenses to average net assets* 1.31% 1.14% 1.27% (c)
Portfolio turnover rate 46.98% 39.07% 108.73% (b)
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions 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
Stock Fund
Financial Highlights
<TABLE>
<CAPTION>
January 21,
For the For the 1997 to
Year ended Year ended October 31,
October 31, 1999 October 31, 1998 1997 (a)
---------------- ---------------- -----------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 12.07 $ 11.31 $ 10.00
---------------- ---------------- -----------
Investment Activities
Net investment income 0.11 0.07 0.04
Net realized and unrealized gain/(loss) on investments (0.03) 1.28 1.27
---------------- ---------------- -----------
Total from Investment Activities 0.08 1.35 1.31
---------------- ---------------- -----------
Distributions
Net investment income (0.09) (0.05) -
Net realized gains on investments (1.73) (0.54) -
---------------- ---------------- -----------
Total Distributions (1.82) (0.59) -
---------------- ---------------- -----------
Net change in net asset value per share (1.74) 0.76 1.31
---------------- ---------------- -----------
Net Asset Value, End of Period $ 10.33 $ 12.07 $ 11.31
================ ================ ===========
Total Return 0.56% 12.49% 13.10% (b)
Ratios/Supplementary Data:
Net Assets at end of year (000) $ 103,380 $ 100,524 $ 79,834
Ratio of expenses to average net assets 1.29% 1.32% 1.41% (c)
Ratio of net investment income to average net assets 0.89% 0.66% 0.63% (c)
Ratio of expenses to average net assets* 1.84% 1.70% 1.80% (c)
Portfolio turnover rate 112.35% 102.36% 71.76% (b)
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions 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
International Multi-Manager Stock Fund
Financial Highlights
<TABLE>
<CAPTION>
January 20,
For the For the 1997 to
Year ended Year ended October 31,
October 31, 1999 October 31, 1998 1997 (a)
---------------- ---------------- ---------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 11.14 $ 10.97 $ 10.00
---------------- ---------------- ---------------
Investment Activities
Net investment income 0.21 0.18 0.11
Net realized and unrealized gain/(loss) on investments 1.95 0.21 0.86
---------------- ---------------- ---------------
Total from Investment Activities 2.16 0.39 0.97
---------------- ---------------- ---------------
Distributions
Net investment income (0.15) (0.13) -
Net realized gains on investments - (0.09) -
---------------- ---------------- ---------------
Total Distributions (0.15) (0.22) -
---------------- ---------------- ---------------
Net change in net asset value per share 2.01 0.17 0.97
================ ================ ===============
Net Asset Value, End of Period $ 13.15 $ 11.14 $ 10.97
================ ================ ===============
Total Return 19.61% 3.61% 9.70% (b)
Ratios/Supplementary Data:
Net Assets at end of year (000) $ 63,441 $ 55,505 $ 41,135
Ratio of expenses to average net assets 1.09% 1.29% 1.42% (c)
Ratio of net investment income to average net assets 1.57% 1.55% 1.91% (c)
Ratio of expenses to average net assets* 1.57% 1.59% 1.75% (c)
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions 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
Kansas Tax-Exempt Bond Fund
Financial Highlights
<TABLE>
<CAPTION>
For the For the September 1, Years ended August 31, (a)
Year ended Year ended 1997 to
October 31, October 31, October 31, 1997 1996 1995
1999 1998 1997 (b)
----------- ----------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.90 $ 10.73 $ 10.66 $ 10.51 $ 10.63 $ 10.47
----------- ----------- ----------- ---------- ---------- ----------
Investment Activities
Net investment income 0.47 0.53 0.09 0.55 0.56 0.57
Net realized and unrealized gain/(loss)
on investments (0.73) 0.20 0.07 0.19 (0.12) 0.16
----------- ----------- ----------- ---------- ---------- ----------
Total from Investment Activities (0.26) 0.73 0.16 0.74 0.44 0.73
----------- ----------- ----------- ---------- ---------- ----------
Distributions
Net investment income (0.47) (0.53) (0.09) (0.59) (0.56) (0.57)
Net realized gains on investments - (0.03) - - - -
In excess of net realized gains (0.05) - - - - -
----------- ----------- ----------- ---------- ---------- ----------
Total Distributions (0.52) (0.56) (0.09) (0.59) (0.56) (0.57)
----------- ----------- ----------- ---------- ---------- ----------
Net change in net asset value per share (0.78) 0.17 0.07 0.15 (0.12) 0.16
----------- ----------- ----------- ---------- ---------- ----------
Net Asset Value, End of Period $ 10.12 $ 10.90 $ 10.73 $ 10.66 $ 10.51 $ 10.63
=========== =========== =========== ========== ========== ==========
Total Return (2.51%) 7.01% 1.51% (c) 7.27% 4.23% 7.23%
Ratios/Supplementary Data:
Net Assets at end of year (000) $ 145,607 $ 132,917 $ 103,616 $ 96,780 $ 72,065 $ 65,834
Ratio of expenses to average net assets 0.54% 0.21% 0.21% (d) 0.21% 0.21% 0.21%
Ratio of net investment income to average net 4.44% 4.90% 5.10% (d) 5.20% 5.31% 5.47%
assets
Ratio of expenses to average net assets* 1.14% 1.00% 0.82% (d) 0.62% 0.51% 0.51%
Portfolio Turnover Rate 21.26% 13.51% 5.87% (c) 8.78% 12.71% 17.60%
</TABLE>
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions 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, 1997.
(c) Not annualized.
(d) Annualized.
See Notes to Financial Statements
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Trustees
AMR Investment Services International Equity Portfolio
We have audited the accompanying statements of assets and liabilities of the AMR
Investment Services International Equity Portfolio ("the Portfolio"), including
the schedules of investments, as of October 31, 1999, 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 Portfolios'
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, 1999, 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
portfolio of the AMR Investment Services International Equity Portfolio at
October 31, 1999, 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, 1999
<PAGE>
International Equity Market Overview
It seems like much longer, but it was only twelve months ago that world
markets and economies had just emerged from a worldwide crisis. There were
concerns around the globe (Russia, Hong Kong, Malaysia and Brazil) as well as in
the U.S. (bailout of Long Term Capital Management). Central banks around the
world cut interest rates to pump liquidity into the markets, and the terms
deflation and recession were being used and defined in numerous publications.
What a change a year can make! Since then, world markets and economies have
turned 180 degrees. The threats of recession and deflation have given way to
fears of too much growth given interest rate levels, and inflation. As a result,
central banks have started to unwind the interest rate cuts made late in 1998.
In the Euro-zone, a weaker Euro and corporate restructurings have boosted
exports and driven growth stronger. In the UK, stronger consumer spending has
fueled inflationary fears as the UK has experienced twenty-nine straight
quarters of growth. In Japan, positive growth in the second quarter of 1999
officially marked the end to Japan's longest post-war recession. From a return
standpoint, while most of the attention remains focused on the U.S. market, it
may surprise most investors that international returns as a whole were quite
competitive. Among the international regions/markets, returns were strongest in
Asia, and among the major markets, Japan was by far the strongest performer. The
Japanese market was up approximately 60% for the last twelve months, as signs of
a nascent recovery led investors to reallocate assets into that country.
Performance Overview
American Advantage International Equity Fund(SM)
[LOGOS APPEARS HERE]
The International Equity Fund's total return for the twelve-month period
was 19.98% for the Institutional Class, compared to a 23.04% return for the
Lipper International Index and a 23.36% return for the MSCI EAFE Index.
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Aug-91 Oct-91 Oct-92 Oct-93 Oct-94 Oct-95 Oct-96 Oct-97 Oct-98 Oct-99
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Institutional Class 10,000 10,132 8,909 12,166 13,598 14,672 17,206 21348 25613 20,489
Lipper International Index 10,000 10,314 9,792 13,127 14,638 14,569 16,412 16,602 19474 23961
EAFE Index 10000 10676 9286 12804 14132 14124 15645 16414 18044 22259
</TABLE>
*Inception of Institutional Class of Fund
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
Annualized Total Returns
Periods Ended 10/31/99 Value of
Since $10,000
1 Yr. 5 Yr. Incep. 8/7/91-10/31/99
----- ----- ------ ---------------
<S> <C> <C> <C> <C>
Institutional Class/1/ 19.98% 13.50% 12.10% $25,613
PlanAhead Class/1/, /2/ 19.68% 13.14% 11.87% $25,176
AMR Class/1/, /2/ 20.27% 13.81% 12.29% $25,970
Lipper Int'l. Index 23.04% 10.35% 9.63% $23,961
EAFE Index 23.36% 9.52% 6.96% $22,259
- ---------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
(Footnote for page that performance chart is on)
1 Past performance is not indicative of future performance.
2 Fund performance represents the total returns achieved by the Institutional
Class from 8/7/91 up to 8/1/94, the inception date of the PlanAhead and AMR
Classes and the returns of the PlanAhead and AMR Classes since inception of
these Classes. Expenses of the PlanAhead Class are higher than those of the
Institutional Class. Therefore, total returns shown may be higher than they
would have been had the PlanAhead Class been in place since 8/7/91. Expenses of
the AMR Class are lower than those of the Institutional Class. As a result,
total returns shown may be lower than they would have been had the AMR Class
been in place since 8/7/91.
The underweighting of the strong Japanese market was the primary factor in
the underperformance of the Fund relative to its two indices. The Fund's
Japanese weighting was 12.2%, as compared to the average weighting of 23.3% in
the EAFE Index during the past year. Despite the underweighting of this market,
Japanese stock selection was very strong. Overweightings of stocks such as NTT
Mobile, Nintendo, Sumitomo Trust and Sony contributed to the strong stock
selection.
Top Ten Holdings as of October 31, 1999
Total Fina (France) 2.8%
Banque Nationale de Paris (France) 2.0%
Nintendo (Japan) 2.0%
Philips Electronics (Netherlands) 1.9%
Telefonica de Espana (Spain) 1.7%
Veba AG (Germany) 1.6%
Ing Groep NV (Netherlands) 1.6%
Sony Corp. (Japan) 1.4%
NTT Mobile Communications (Japan) 1.4%
National Westminster Bank (UK) 1.4%
In Europe, performance attribution was flip-flopped as country selection
was positive and stock selection was negative. Overweighting the strong Finnish
market and underweighting the weak German and Swiss markets were the primary
drivers of positive country selection for the Fund.
[PIE CHART APPEARS HERE]
Country Allocation
UK Japan Other Asia Other Non-Euro Euro
20.6% 13.2% 10.4% 9.3% 9.1% 37.49%
<PAGE>
Country Allocation as of October 31, 1999
Fund EAFE
France 10.9% 9.5%
Germany 8.3% 9.7%
Netherlands 6.5% 5.4%
Italy 3.5% 3.8%
Spain 2.9% 2.7%
Finland 2.7% 2.1%
Ireland 1.3% 0.5%
Austria 0.7% 0.3%
Portugal 0.6% 0.5%
Belgium 0.0% 1.2%
---- ----
Euro 37.4% 35.7%
UK 20.6% 20.2%
Switzerland 4.2% 6.3%
Sweden 3.3% 2.3%
Norway 1.0% 0.4%
Denmark 0.6% 0.8%
---- ----
Other Non-Euro 9.1% 9.8%
Japan 13.2% 28.5%
Australia 3.6% 2.4%
Hong Kong 3.0% 2.2%
Singapore 2.2% 1.0%
New Zealand 1.3% 0.2%
Malaysia 0.2% 0.0%
South Korea 0.2% 0.0%
---- ----
Other Asia 10.4% 5.8%
Canada 2.9% 0.0%
Mexico 0.4% 0.0%
Other 6.0% 0.0%
---- ----
Other 9.3% 0.0%
Fund stock selection was weak in Finland, Germany, Sweden and the UK, which
offset good selections in Italy and the Netherlands. However, the term "weak"
may be too strong a term in describing the poor stock selection. The stocks held
by the Fund did not perform particularly poorly, but rather it was the stocks
the Fund did not hold or in which it was underweighted that did particularly
well. Several of these stocks were in the telecommunications sector in wireless
businesses that had exceptionally strong performance. However, given their
recent performance, many of these types of stocks have not presented good value
for the Fund and either were not owned or were scaled back during the year. Some
examples are: Nokia in Finland (up over 150%), Mannesmann and Deutsche Telekom
in Germany (up over 60%), Ericsson of Sweden (up almost 90%), and in the UK,
Vodafone (up 75%), and British Telecom (up 42%). Turning to the positives, while
there were a number of good stock selections in Italy, in the Netherlands an
overweighting of Philips Electronics (up over 90% and a top Fund holding for
most of the year) added value for the time period.
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Statement of Assets and Liabilities
October 31, 1999
================================================================================
ASSETS:
Investments in securities at value (cost - $1,261,729,000)... $ 1,432,862,000
Cash, including foreign currency............................. 42,000
Dividends and interest receivable............................ 2,257,000
Reclaims receivable.......................................... 349,000
Receivable for investments sold.............................. 112,000
---------------
Total assets......................................... 1,435,622,000
---------------
LIABILITIES:
Payable for investments purchased............................ 9,018,000
Payable upon return of securities loaned..................... 82,366,000
Management and investment advisory fees payable (Note 2)..... 1,460,000
Accrued organization costs................................... 12,000
Unrealized depreciation on foreign currency contracts........ 430,000
Other liabilities............................................ 211,000
---------------
Total liabilities.................................... 93,497,000
---------------
Net assets applicable to investors' beneficial interests...... $ 1,342,125,000
===============
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Statement of Operations
Year Ended October 31, 1999
================================================================================
INVESTMENT INCOME:
Interest income........................................... $ 2,901,000
Dividend income (net of foreign taxes of $2,758,000)...... 27,676,000
Income derived from commission recapture, net............. 31,000
Income derived from securities lending, net............... 865,000
--------------
Total investment income............................. 31,473,000
--------------
EXPENSES:
Management and investment advisory
fees (Note 2)........................................... 4,039,000
Custodian fees............................................ 205,000
Professional fees......................................... 49,000
Other expenses............................................ 66,000
--------------
Total expenses...................................... 4,359,000
--------------
Net investment income........................................ 27,114,000
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments.......................... 123,477,000
Net realized loss on foreign currency
transactions............................................ (11,539,000)
Change in net unrealized appreciation of
investments............................................. (17,423,000)
Change in net unrealized depreciation of foreign currency
contracts and translations.............................. 97,151,000
--------------
Net gain on investments............................. 191,666,000
--------------
Net increase in net assets resulting from
operations................................................ $ 218,780,000
==============
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Statements of Changes in Net Assets
================================================================================
<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, October 31,
1999 1998
---------------- ----------------
<S> <C> <C>
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income....................... $ 27,114,000 $ 21,857,000
Net realized gain on investments and
foreign currency transactions............ 111,938,000 27,616,000
Change in net unrealized appreciation
(depreciation) of investments and
foreign currency translations............ 79,728,000 (19,922,000)
---------------- ----------------
Net increase in net assets
resulting from operations............ 218,780,000 29,551,000
---------------- ----------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS:
Contributions............................... 948,727,000 678,114,000
Withdrawals................................. (853,527,000) (441,193,000)
---------------- ----------------
Net increase in net assets resulting
from transactions in investors'
beneficial interests................. 95,200,000 236,921,000
---------------- ----------------
Net increase in net assets........................ 313,980,000 266,472,000
---------------- ----------------
NET ASSETS:
Beginning of period........................... 1,028,145,000 761,673,000
---------------- ----------------
End of period................................. $ 1,342,125,000 $ 1,028,145,000
================ ================
- -----------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS:
- -----------------------------------------------------------------------------------------
RATIOS:
Expenses to average net assets
(annualized)................................ 0.37% 0.53%
Net investment income to average net
assets (annualized)......................... 2.27% 2.29%
Portfolio turnover rate....................... 63% 24%
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Notes To Financial Statements
October 31, 1999
===============================================================================
1. Organization and Significant Accounting Policies
The AMR Investment Services Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended, as a no load, open-end management
investment company which was organized as a trust under the laws of the State of
New York pursuant to a Declaration of Trust dated as of June 27, 1995 and
amended on August 11, 1995. The AMR Investment Services International Equity
Portfolio (the "Portfolio") is one of the portfolios of the Trust. The Portfolio
commenced active operations on November 1, 1995. The Declaration of Trust
permits the Board of Trustees (the "Trustees") to issue beneficial interests in
the Portfolio.
AMR Investment Services, Inc. (the "Manager") is a wholly-owned subsidiary
of AMR Corporation, the parent company of American Airlines, Inc. ("American"),
and was organized in 1986 to provide business management, advisory,
administrative and asset management consulting services.
The following is a summary of the significant accounting policies followed
by the Portfolio.
Security Valuation
Equity securities that are primarily traded on domestic securities
exchanges are valued at the last quoted sales price on a designated exchange
prior to the close of trading on the New York Stock Exchange (the "Exchange")
or, lacking any current sales, on the basis of the last current bid price prior
to the close of trading on the Exchange. Portfolio securities that are primarily
traded on foreign securities exchanges are generally valued at the preceding
closing values of such securities on their respective exchanges where primarily
traded. Over-the-counter equity securities are valued on the basis of the last
bid price on that date prior to the close of trading. Debt securities (other
than short-term securities) normally will be valued on the basis of prices
provided by a pricing service and may take into account appropriate factors such
as institution-size trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, trading characteristics and other market
data. In some cases, the prices of debt securities may be determined using
quotes obtained from brokers. Securities for which market quotations are not
readily available are valued at fair value, as determined in good faith and
pursuant to procedures approved by the Trust's Board of Trustees (the "Board").
Investment grade short-term obligations with 60 days or less to maturity are
valued using the amortized cost method.
Security Transactions and Investment Income
Security transactions are recorded on the trade date of the security
purchase or sale. Dividend income is recorded on the ex-dividend date except
certain dividends from foreign securities which are recorded as soon as the
information is available to the Portfolio. Interest income is earned from
settlement date, recorded on the accrual basis, and adjusted, if necessary, for
amortization of premiums or accretion of discounts on investment grade short-
term securities and zero coupon instruments. For financial and tax reporting
purposes, realized gains and losses are determined on the basis of specific lot
identification.
Currency Translation
All assets and liabilities initially expressed in foreign currency values
are converted into U.S. dollar values at the bid price of such currencies
against U.S. dollars as last quoted by a recognized dealer. Income, expenses and
purchases and sales of investments are translated into U.S. dollars at the rate
of exchange prevailing on the respective dates of such transactions. The
Portfolio includes that portion of the results of operations resulting from
changes in foreign exchange rates with net realized and unrealized gain on
investments, as appropriate.
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Notes To Financial Statements
October 31, 1999
===============================================================================
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% - .70% $4,039 $2,847 $1,192
</TABLE>
Other
Certain officers or trustees of the Portfolio are also officers of the
Manager or American. The Portfolio makes no direct payments to its officers.
Unaffiliated trustees and their spouses are provided free unlimited air
transportation on American. However, the Portfolio compensates each Trustee
with payments in an amount equal
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Notes To Financial Statements
October 31, 1999
===============================================================================
to the Trustee's income tax on the value of this free airline travel. For the
year ended October 31, 1999, the cost of air transportation was not material to
the Portfolio.
3. Investment Transactions
The aggregate cost of purchases and proceeds from sales of investments,
other than short-term obligations, for the year ended October 31, 1999 were
$810,633,000 and $706,688,000, 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, 1999, 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>
24,128 Deutche Mark 11/30/99 $12,995 $ 856
8,500 Pound Sterling 11/30/99 13,948 (252)
Total contracts to deliver
------------------- ---------------------
(Receivable amount $27,547) $26,943 $ 604
=================== =====================
Contracts to Receive
- -------------------
(amounts in thousands)
23,333 Deutsche Mark 11/30/99 $12,566 $(1,130)
680 Euro Currency 11/30/99 716 (2)
24,128 Pound Sterling 11/30/99 13,948 98
------------------- ---------------------
Total contracts to receive
(Payable amount $28,264) $27,230 $(1,034)
=================== =====================
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Notes To Financial Statements
October 31, 1999
===============================================================================
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
receives fee income or 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, 1999, securities with a market value of approximately
$79,212,908 were loaned by the Portfolio. The custodian for the Portfolio held
an investment in the AMR Investments Enhanced Yield Business Trust and the AMR
Investments Strategic Cash Business Trust (the "Business Trusts") totaling
$82,366,342. In addition, the custodian held non-cash collateral totaling
$59,904. The Manager serves as Trustee and as investment adviser to the Business
Trusts. The Manager receives from the Business Trusts an annualized fee equal to
0.10% of the average daily net assets of the Business Trusts.
6. Commission Recapture
The Portfolios of the Trust have established brokerage commission recapture
arrangements with certain brokers or dealers. If a Portfolio investment adviser
chooses to execute a transaction through a participating broker, the broker
rebates a portion of the commission back to the Portfolio. Any collateral
benefit received through participation in the commission recapture program is
directed exclusively to the Portfolios.
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments
October 31, 1999
================================================================================
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
AUSTRALIA COMMON STOCKS - 3.56%
Australia & New Zealand Banking Group 1,409,182 $ 9,293,000
Broken Hill Property 391,460 4,043,000
Cable and Wireless Optus 1,544,000 3,532,000
Goldfield, Limited 227,448 155,000
Mayne Nickless, Limited 965,000 2,613,000
News Corporation Preferred Rights 345,000 2,334,000
News Corporation, Limited 210,000 1,518,000
Pioneer International, Limited 5,338,445 11,669,000
QBE Insurance Group, Limited 2,002,088 8,357,000
Westralian Sands 360,594 850,000
WMC, Limited 785,000 3,367,000
--------------
47,731,000
--------------
AUSTRIA - 0.69%
PREFERRED STOCKS - 0.28%
Bank Austria AG, 144a 76,000 3,776,000
--------------
TOTAL AUSTRIA PREFERRED STOCKS 3,776,000
--------------
COMMON STOCKS - 0.41%
Boehler-Uddeholm 70,465 2,948,000
Evn Energie-Versorgung Niederoesterreich AG 7,960 1,142,000
Mayr-Melnhof Karton AG 16,000 712,000
VA Technologie AG 11,000 735,000
--------------
TOTAL AUSTRIA COMMON STOCKS 5,537,000
--------------
TOTAL AUSTRIA 9,313,000
--------------
CANADA COMMON STOCKS - 2.90%
Alcan Aluminum, Limited 105,000 3,444,000
Anderson Exploration, Limited 170,000 2,190,000
Canadian Imperial Bank of Commerce 205,010 4,418,000
Clarica Life Insurance Company, 144a 97,837 1,583,000
IMASCO, Limited 231,810 6,225,000
Manulife Financial Corporation 576,888 6,942,000
Methanex Corporation 275,000 767,000
Newbridge Network 98,400 1,917,000
Noranda, Incorporated 357,525 4,715,000
Ranger Oil, Limited 589,010 2,262,000
Renaissance Energy 140,000 1,694,000
Transcanada Pipelines, Limited 234,000 2,823,000
--------------
TOTAL CANADA COMMON STOCKS 38,980,000
--------------
DENMARK COMMON STOCKS - 0.52%
Tele Danmark AS 63,500 3,852,000
Unidanmark AS, "A" 40,000 3,111,000
--------------
TOTAL DENMARK COMMON STOCKS 6,963,000
--------------
FINLAND COMMON STOCKS - 2.73%
Enso-Gutzeit OY, "R" 212,000 2,785,000
Nokia AB OY 49,500 5,661,000
Merita Bank, Limited 1,522,070 8,815,000
Metra OY, "B" 105,000 1,987,000
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments
October 31, 1999
================================================================================
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Met sa-Serla OY, "B" 100,000 905,000
Metso OYJ 179,664 2,030,000
UPM-Kymmene OY 460,330 14,515,000
-----------------
TOTAL FINLAND COMMON STOCKS 36,698,000
-----------------
FRANCE COMMON STOCKS - 10.94%
Alcatel Alsthom CG 107,153 16,725,000
Axa SA 110,172 15,528,000
Banque Nationale de Paris 296,959 26,062,000
BIC SA 106,834 5,221,000
CSF (Thomson) 251,277 8,531,000
La Farge-Coppee SA 40,723 3,916,000
Michelin (CGDE) 45,475 1,979,000
Pechiney SA 51,800 2,896,000
Pernod-Ricard 73,197 4,939,000
Rhone-Poulenc, "A" 256,910 14,365,000
Saint Gobain 31,298 5,428,000
Total Petroleum Company, "B" 268,173 36,220,000
Vivendi 66,325 5,023,000
-----------------
TOTAL FRANCE COMMON STOCKS 146,833,000
-----------------
GERMANY - 8.28%
PREFERRED STOCKS - 0.31%
Dyckerhoff AG 140,990 4,223,000
-----------------
TOTAL GERMANY PREFERRED STOCKS 4,223,000
-----------------
COMMON STOCKS - 7.97%
Adidas Salomon AG 15,000 1,085,000
Allianz AG 17,805 5,418,000
BASF AG 57,000 2,561,000
BAYER AG 60,000 2,453,000
BBS Kraftfahrzeugtechnik 15,260 321,000
Boss (Hugo) AG 26,400 3,524,000
Buderus AG 252,850 4,252,000
Celanese AG 32,484 512,000
Commerzbank AG 131,005 4,991,000
Daimler Chrysler AG 60,455 4,702,000
Deutsche Bank AG 46,000 3,297,000
Dragerwerk AG 150,805 1,601,000
Hoechst AG 391,465 17,219,000
Krones AG 105,000 2,869,000
Merck KGAA 94,000 3,241,000
Metro AG 128,555 6,905,000
Muenchener Rueckversicherung AG, DEM 10, 144a 22,576 5,173,000
Muenchener Rueckversicherung AG, DEM 5, 144a 293 12,000
SGL Carbon 37,795 2,417,000
Siemens AG NPV 46,220 4,146,000
Thyssen Krupp AG 183,000 4,328,000
Veba AG 387,602 2,094,000
Volkswagen AG 52,500 3,101,000
Vossloh AG 92,915 1,924,000
-----------------
TOTAL GERMANY COMMON STOCKS 106,992,000
-----------------
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments
October 31, 1999
================================================================================
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
TOTAL GERMANY 111,215,000
-----------
HONG KONG COMMON STOCKS - 3.00%
Asia Satellite Telecommunications Holdings, Limited 275,000 648,000
Cheung Kong Holdings, Limited 655,000 5,964,000
Hang Lung Development Company, Limited 3,073,000 3,303,000
Hong Kong Electric Holdings 793,400 2,425,000
HSBC Holdings 377,265 4,540,000
Hutchinson Whampoa, Limited 300,000 3,012,000
National Mutual of Asia, Limited 1,700,000 1,466,000
New World Development Company, Limited 1,134,000 2,146,000
South China Morning Post 7,682,000 5,685,000
Swire Pacific 1,445,700 7,164,000
Television Broadcast 721,000 3,851,000
-----------
TOTAL HONG KONG COMMON STOCKS 40,204,000
-----------
IRELAND COMMON STOCKS - 1.29%
Allied Irish Banks 538,151 6,731,000
Greencore Group 1,589,190 4,560,000
Jefferson Smurfit 2,336,992 6,067,000
-----------
TOTAL IRELAND COMMON STOCKS 17,358,000
-----------
ITALY - 3.53%
PREFERRED STOCKS - 0.24%
Concessioni E Contruzioni Autostrade 425,000 3,203,000
-----------
TOTAL ITALY PREFERRED STOCKS 3,203,000
-----------
COMMON STOCKS - 3.29%
BCA Naz Del Lavoro 770,000 2,606,000
Burgo (Cartiere) SPA 119,420 879,000
Eni SPA 2,684,375 15,687,000
Fiat SPA 77,499 2,452,000
Instituto Nazionale Delle Assicurazioni 1,000,000 3,032,000
Sao Paolo Imi SPA 137,280 1,778,000
STET Telecom Italia 1,539,170 13,282,000
Telecom Italia SPA 812,500 3,988,000
Unione Immobiliare 1,000,000 514,000
-----------
TOTAL ITALY COMMON STOCKS 44,218,000
-----------
TOTAL ITALY 47,421,000
-----------
JAPAN COMMON STOCKS - 13.15%
Asahi Breweries 415,000 5,897,000
Best Denki Company 300,000 3,090,000
Canon, Incorporated 180,000 5,088,000
Fuji Bank 478,000 6,550,000
Hitachi Zosen Corporation 212,000 177,000
Hitachi, Limited 225,000 2,430,000
Industrial Bank of Japan 411,000 5,553,000
Japan Tobacco 381 4,199,000
Kanamoto Company 310,000 2,064,000
KAO Corporation 217,000 6,612,000
Kokusai Electric 506,000 6,303,000
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments
October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Makita Corporation 105,000 1,007,000
Matsushita Electric Industrial Company 164,000 3,449,000
Matsuzakaya Company 500,000 1,845,000
Nichicon Corporation 244,000 5,284,000
Nintendo Company, Limited 160,100 25,390,000
Nippon Telephone & Telegraph Company 285 4,370,000
NTT Mobile Communication 664 17,624,000
Okumura Corporation 700,000 2,515,000
Orix Corporation 85,100 11,416,000
Promise Company, Limited, 144a 108,200 7,258,000
Sankyo Company 284,000 8,082,000
Showa Sangyo Company 850,000 1,873,000
Sony Corporation 116,200 18,105,000
Sumitomo Trust & Banking 906,000 9,254,000
TDK Corporation 85,000 8,316,000
Yamato Kogyo Company, Limited 120,000 555,000
Yodogawa Steel Works 541,000 2,229,000
-----------
TOTAL JAPAN COMMON STOCKS 176,535,000
-----------
MALAYSIA COMMON STOCKS - 0.16%
Golden Hope Plantations BHD 2,603,000 2,082,000
-----------
TOTAL MALAYSIA COMMON STOCKS 2,082,000
-----------
MEXICO COMMON STOCKS - 0.43%
Alfa, SA 436,000 1,670,000
Consorcio Grupo Dina Sa De C V 590,000 369,000
Grupo Mexico SA 547,300 1,977,000
Industrias Penoles 401,100 1,262,000
Vitro SA 335,000 438,000
-----------
TOTAL MEXICO COMMON STOCKS 5,716,000
-----------
NETHERLANDS COMMON STOCKS - 6.50%
ABN AMRO Holdings NV 365,630 8,835,000
Akzo Nobel NV 321,536 13,836,000
Fortis NV, 144a 178,320 6,134,000
Hollandsche Beton Groep NV 281,645 2,753,000
Ing Groep NV 339,984 20,040,000
Kon KPN NV 200,345 10,274,000
Philips Electronics 236,866 24,273,000
TNT Post Groep NV 42,500 1,081,000
-----------
TOTAL NETHERLANDS COMMON STOCKS 87,226,000
-----------
NEW ZEALAND COMMON STOCKS - 1.27%
Brierley Investments, Limited 1,753,762 399,000
Carter Holt Harvey, Limited 1,205,889 1,526,000
Fisher & Paykel, Limited 880,000 2,673,000
Fletcher Challenge Building 2,564,979 3,168,000
Fletcher Challenge Forest 2,778,284 1,139,000
Fletcher Challenge Paper 765,000 500,000
Telecom Corporation of New Zealand 1,905,985 7,660,000
-----------
TOTAL NEW ZEALAND COMMON STOCKS 17,065,000
-----------
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments
October 31, 1999
================================================================================
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
PORTUGAL COMMON STOCKS - 0.62%
Portugal Telecom 183,563 8,180,000
------------------
TOTAL PORTUGAL COMMON STOCKS 8,180,000
------------------
NORWAY COMMON STOCKS - 1.01%
Den Norsk Bank, Series A 810,000 3,139,000
Kvaerner Industries AS 211,773 3,995,000
Kvaerner Industries AS 25,200 382,000
Norsk Hydro AS 90,000 3,591,000
Nycomed AS, Series B 324,320 1,984,000
Unitor AS 80,000 500,000
------------------
TOTAL NORWAY COMMON STOCKS 13,591,000
------------------
SINGAPORE COMMON STOCKS - 2.18%
Development Bank of Singapore Group Holdings 540,795 6,111,000
Inchcape Motors 325,000 383,000
Creative Technology 439,100 5,120,000
Overseas Chinese Bank 411,650 3,093,000
United OverSeas Bank 1,918,300 14,527,000
------------------
TOTAL SINGAPORE COMMON STOCKS 29,234,000
------------------
SPAIN COMMON STOCKS - 2.91%
Argentaria C/P HIP 240,790 5,340,000
Banco Popular Espanol 28,000 1,883,000
Endesa SA 218,445 4,369,000
Iberdrola SA 200,357 2,919,000
Repsol SA (RG) 111,000 2,287,000
Telefonica de Espana 1,356,427 22,298,000
------------------
TOTAL SPAIN COMMON STOCKS 39,096,000
------------------
SOUTH KOREA COMMON STOCKS - 0.09%
Korea Electric Power Corporation 40,860 1,196,000
------------------
TOTAL SOUTH KOREA COMMON STOCKS 1,196,000
------------------
SWEDEN COMMON STOCKS - 3.34%
Assidoman AB 72,800 1,299,000
Astrazeneca 27,847 1,256,000
Autoliv Incorporated 125,000 3,975,000
Electrolux AB, "B" 868,600 17,291,000
Esselte AB, Class "A" 2,000 13,000
Esselte AB, Class "B" 17,000 113,000
Foreningssparbk 208,000 3,308,000
Granges AB 15,000 287,000
Meto AG 19,000 150,000
Nordbanken AS 295,500 1,722,000
SKF AB, "B" Free 80,000 1,622,000
Stora Enso OY, Series A 62,062 814,000
Stora Enso OY, Series R 152,602 2,028,000
Svedala Industries, "A" Free 90,000 1,584,000
Svenska Handelsbanken 249,590 3,454,000
Volvo AB 231,710 5,977,000
------------------
TOTAL SWEDEN COMMON STOCKS 44,893,000
------------------
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments
October 31, 1999
================================================================================
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
SWITZERLAND COMMON STOCKS - 4.21%
ABB AG 68,046 6,855,000
Geberit, AG, 144a 25,632 7,553,000
Novartis AG 6,429 9,620,000
Saurer AG 9,281 3,898,000
Schweitz Ruckversiche 800 1,659,000
Sig Schweitz Industries AG 17,804 10,516,000
Sulzer AG 13,386 9,400,000
Zurich Allied AG 12,414 7,031,000
------------------
TOTAL SWITZERLAND COMMON STOCKS 56,532,000
------------------
UNITED KINGDOM COMMON STOCKS - 20.55%
Allied Domecq, PLC 780,144 4,365,000
Allied Zurich 939,332 11,406,000
Arriva 205,000 1,076,000
Astrazeneca 191,166 8,633,000
BAA, PLC 576,880 4,212,000
BG, PLC 529,411 2,936,000
BP Amoco 883,130 8,564,000
British Aerospace 1,559,685 9,213,000
British American Tobacco Industries, PLC 1,291,732 8,563,000
British Energy, PLC 616,691 4,200,000
British Telecommunications 593,058 10,744,000
Cadbury Schweppes 500,820 3,254,000
Coats Viyella, PLC 2,024,530 1,553,000
Commercial Union, PLC 359,010 5,225,000
Cookson Group, PLC 3,911,165 11,994,000
Cortaulds Textiles, PLC 150,000 298,000
Debenhams Retail 83,750 355,000
Diageo 501,843 5,097,000
Fairview Holdings, PLC 37,500 84,000
General Electric 435,000 4,729,000
GKN, PLC 68,600 1,102,000
Granada Group 603,610 4,784,000
Great Universal Stores, PLC 445,000 3,366,000
Halifax Group, PLC 282,500 3,602,000
Hanson, PLC 1,093,185 8,503,000
Imperial Chemical Industries, PLC 633,695 6,296,000
Inchcape, PLC 50,000 249,000
Invensys 3,135,575 15,384,000
Lloyds TSB Group, PLC 497,099 6,868,000
Marks & Spencer 500,000 2,305,000
Medeva, PLC 3,067,023 7,801,000
National Grid Group, PLC 255,000 1,895,000
National Power, PLC 360,000 2,440,000
National Westminster Bank, PLC 776,277 17,502,000
Next, PLC 190,000 2,047,000
Northern Foods, PLC 1,000,000 1,559,000
PowerGen, PLC 273,000 2,406,000
Prudential Corporation 336,665 5,270,000
Reckitt & Colman, PLC 467,306 5,659,000
</TABLE>
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments
October 31, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Shares Value
------ -----
<S> <C> <C>
Reed International, PLC 855,340 5,011,000
Royal & Sun Alliance Insurance Group 607,381 4,131,000
Safeway, PLC 509,677 1,606,000
Scapa Group 471,000 1,059,000
Shell Transportation & Trading Company, PLC 535,000 4,091,000
Storehouse 1,480,000 1,749,000
Tate & Lyle, PLC 405,000 2,648,000
Tesco, PLC 2,938,727 8,716,000
Thames Water Group, PLC 173,983 2,512,000
TI Group, PLC 1,476,740 9,935,000
Tomkins 1,831,048 6,188,000
Transport Development Group 28,260 99,000
Unilever, PLC 342,522 3,176,000
United News & Media PLC 611,012 5,850,000
Vickers Group 1,043,333 4,263,000
Williams, PLC 1,813,491 9,076,000
---------------
TOTAL UNITED KINGDOM COMMON STOCKS 275,649,000
---------------
UNITED STATES - 12.90%
FOREIGN SECURITIES DENOMINATED IN U.S. DOLLARS - 1.48%
G P Batteries International, Limited 436,000 603,000
Kookmin Bank GDR, 144a 83,356 1,315,000
Jardine Matheson Holding, Limited 871,000 3,745,000
New Holland NV 240,000 3,645,000
Nova Chemical Corporation, ADR 23,400 459,000
Sk Telecom, Limited 169,281 2,211,000
Stolt-Nielsen SA, "B" 76,000 1,192,000
Telmex ADR 78,000 6,669,000
---------------
TOTAL FOREIGN SECURITIES DENOMINATED IN U.S. DOLLARS 19,839,000
---------------
SHORT TERM INVESTMENTS - 11.42% Shares
----------------
AMR Investments Enhanced Yield Business Trust 48,040,302 48,040,000
AMR Investments Strategic Cash Business Trust 34,326,040 34,326,000
American AAdvantage Money Market Fund 70,946,458 70,946,000
---------------
TOTAL SHORT TERM INVESTMENTS 153,312,000
---------------
TOTAL UNITED STATES 173,151,000
---------------
TOTAL INVESTMENTS - 106.76% (Cost $1,261,729,000) 1,432,862,000
---------------
LIABILITIES, NET OF OTHER ASSETS - (6.76%) (90,737,000)
---------------
TOTAL NET ASSETS - 100% 1,342,125,000
===============
</TABLE>
Based on the cost of investments of $1,263,144,000 for federal income tax
purposes at October 31, 1999, the aggregate gross unrealized appreciation was
$249,360,000, the aggregate gross unrealized depreciation was $79,642,000, and
the net unrealized appreciation of investments was $169,718,000.
(A) 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 $32,804,000 or 2.44% of net assets.
<PAGE>
AMR INVESTMENT SERVICES INTERNATIONAL EQUITY PORTFOLIO
Schedule of Investments
October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
ABBREVIATIONS:
AB - Company (Finland, Sweden)
ADR - American Depository Receipt (United States)
AG - Company (Austria, Germany, Sweeden, Switzerland)
AS - Company (Denmark, Norway, Sweden)
BHD - Berhard (Malaysia)
CG - Company General (France)
GDR - Global Depository Receipt (United States)
NV - Company (Netherlands, United States)
OY - Company (Finland, Sweeden)
PLC - Public Limited Corporation (United Kingdom)
RG - (Spain)
SA - Company (France, Mexico, Spain, United States )
SPA - Company (Italy)
</TABLE>
<PAGE>
AMR Investment Services International Equity Portfolio
Industry Diversification
October 31, 1999
===============================================================
Capital Goods....................................... 12.57%
Consumer Goods...................................... 19.32%
Energy.............................................. 9.85%
Finance............................................. 23.25%
Gold Mines.......................................... 0.01%
Materials........................................... 10.21%
Multi - Industry.................................... 5.11%
Services............................................ 15.02%
Short-Term Investments.............................. 11.42%
Other Assets (Liabilities).......................... (6.76%)
-------
Net Assets.................................. 100.00%
=======
