<PAGE>
To Our Shareholders:
The Bjurman Micro-Cap Growth Fund had excellent performance during the past
12 months despite a relatively poor showing for small capitalization stocks in
general. Specifically, the Fund had a positive return of 70.17% for the 12
month period beginning with its inception, March 31, 1997, and ending March
31, 1998. The *Russell 2000 Growth Index and the *Wilshire Small Company
Growth Index were up 41.17% and 44.50%, respectively.
The price earnings ratios of small capitalization stocks as measured
against the price earnings ratios of the large cap *S&P 500 Index are near the
lows of 1987 and 1990. This is so even though there are generally very favora-
ble earnings growth prospects for the small cap universe.
We believe that prospects are very favorable for the companies held in the
Fund. We expect that, with time, the low valuation levels of these stocks,
relative to larger companies, will correct causing additional positive future
results.
The Fund's total net assets were $6.51 million as of March 31, 1998 and it
was well diversified among 88 companies and 12 sectors.
OUR MANAGEMENT APPROACH
The Fund seeks capital appreciation through investments in common stocks of
companies with market capitalizations typically between $30 million and $300
million at the time of investment. We employ a growth-oriented approach to eq-
uity investment management and seek to outperform market averages over a com-
plete market cycle by investing in companies we believe have above average
earnings prospects.
The Adviser's equity selection process attempts to identify undervalued
companies with superior earnings growth characteristics. The selection process
starts by screening a universe of approximately 1,900 companies with market
capitalizations ranging from $30 million to $300 million, using five models
which emphasize both growth and value attributes. The screening factors in-
clude (1) earnings growth, (2) earnings strength, (3) earnings revision, (4)
price/earnings to growth ratio and (5) price to cash flow. The next step in-
volves a top-down economic analysis designed to identify the 10 to 15 most
promising economic sectors over the next 12 to 18 months.
Stocks are ranked according to the above five criteria in an attempt to
identify approximately 100 to 190 companies offering the best growth prospects
and selling at attractive prices. The highest ranking stocks in the most prom-
ising industries are then subjected to additional fundamental and technical
research. Generally, we attempt to identify profitable companies with capable
management
<PAGE>
teams, above average reinvestment rates, strong industry positions, and pro-
ductive research and development efforts. To ensure a well diversified portfo-
lio, commitments to any one issue or industry are generally limited to 5% and
15%, respectively, of the Fund's market value.
MARKET OUTLOOK
Small cap companies as a group are expected to show profit growth surpass-
ing that of large caps for the next 12 months.
Small cap stock prices have underperformed large cap stock prices during
the past three years leaving them at the lower end of relative valuation lev-
els.
The new capital gains tax reduction has a greater positive impact on tax
returns to investors who get most of their returns from capital gains gener-
ated from faster growing small companies.
Slow economic growth, low interest rates and moderate inflation are all
conducive to positive returns from the fast growing small cap sector.
All of the above factors bode well for the outlook for the small cap sec-
tors of the market.
Sincerely,
/s/ O. Thomas Barry
----------------------------------
O. Thomas Barry, III, CFA, CIC
Co-President and Portfolio Manager
/s/ G. Andrew Bjurman
- ----------------------------------
G. Andrew Bjurman, CFA, CIC
Co-President and Portfolio Manager
* Unmanaged Indices
2
<PAGE>
HOW TO INVEST IN THE FUND
The minimum initial investment is $5,000 for Regular accounts and $2,000
for IRA and SEP accounts and $500 for subsequent investments.
To purchase shares of the Fund or to receive a prospectus, call the Dis-
tributor, FPS Broker Services, Inc. at (800) 227-7264 or the Fund is available
through Charles Schwab & Co. Inc.'s Mutual Fund One Source(R) program, Jack
White & Co's No Fee Network, Waterhouse Securities Inc., Ameritrade, or Quick
& Reilly.
The Funds Daily Net Asset Value can be obtained by calling FPS Broker Serv-
ices, Inc. at (800) 227-7264 or on our Webpage at www.bjurmanfunds.com.
TOP 10 HOLDINGS
AS OF MARCH 31, 1998
<TABLE>
<CAPTION>
% of Total
Net Assets
----------
<S> <C>
MEMCO Software, Ltd. 2.38
RCM Technologies, Inc. 2.35
Mobile Mini, Inc. 2.14
Gulfmark Offshore, Inc. 2.11
Analytical Surveys, Inc. 1.97
Party City Corp. 1.82
Rent-Way, Inc. 1.75
Dynamex, Inc. 1.75
Crown Crafts, Inc. 1.74
Monaco Coach Corp. 1.72
</TABLE>
Past performance is not indicative of future results. Share prices and returns
will fluctuate and when redeemed, shares may be worth more or less than their
original cost. There are special risks associated with investing in small-cap
stocks as they are subject to a higher degree of market risk than large-cap
stocks due to market illiquidity. George D. Bjurman & Associates is the ad-
viser for The Bjurman Funds.
To be preceded or accompanied by a prospectus. DFU 5-98
3
<PAGE>
Bjurman Micro-Cap Growth Fund
Illustration of $10,000 Investment (unaudited)
- ------------------------------------------------------------------------------
The graph below compares the increase in value of a $10,000 investment in The
Bjurman Micro-Cap Growth Fund with the performance of the Russell 2000 Growth
Index.
Total Return for the Year Ended 3/31/98
Since Inception......70.17%
Bjurman Russell 2000
Micro-Cap Growth
--------- ------------
03/31/97 10,000 10,000
04/30/97 9,750 9,884
05/31/97 11,325 11,370
06/30/97 12,133 11,756
07/31/97 13,733 12,358
08/31/97 14,883 12,729
09/30/97 16,333 13,744
10/31/97 15,425 12,919
11/30/97 15,092 12,611
12/31/97 14,925 12,618
01/31/98 14,700 12,450
02/28/98 15,917 13,549
03/31/98 17,017 14,117
Past performance is not indicative of future results.
4
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS MARCH 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- ----------
<C> <S> <C>
COMMON STOCKS -- 100.32%
BASIC MATERIALS -- 1.48%
26,300 Northwestern Steel and Wire Co.*.......................... $ 96,158
----------
COMMERCIAL/INDUSTRIAL SERVICES -- 15.08%
2,500 Analytical Surveys, Inc.*................................. 128,125
4,200 Cadmus Communications Corp. .............................. 99,750
4,500 Cornell Corrections, Inc.*................................ 110,250
1,800 EMCOR Group, Inc.*........................................ 38,700
6,000 Forensic Technologies International Corp.*................ 89,062
2,100 JLK Direct Distribution Inc., Class A*.................... 80,194
500 Mail-Well, Inc.*.......................................... 18,937
4,300 Professional Staff PLC, Sponsored ADR*.................... 75,788
5,700 RCM Technologies, Inc.*................................... 153,187
3,000 RemedyTemp, Inc., Class A*................................ 97,125
3,400 SOS Staffing Services, Inc.*.............................. 90,100
----------
981,218
----------
CONSUMER DURABLES -- 15.53%
1,750 Brass Eagle, Inc.*........................................ 29,312
1,600 Continental Homes Holding Corp. .......................... 74,400
5,400 Crown Crafts, Inc. ....................................... 113,062
7,300 Dominion Homes, Inc.*..................................... 98,550
12,300 Jan Bell Marketing, Inc.*................................. 60,731
5,400 M.D.C. Holdings, Inc. .................................... 95,850
3,700 M/I Schottenstein Homes, Inc. ............................ 80,938
2,850 Monaco Coach Corp.*....................................... 111,863
2,100 NVR, Inc.*................................................ 66,281
9,050 SMC Corp.*................................................ 88,238
2,150 Stanley Furniture Company, Inc.*.......................... 85,731
4,800 Winsloew Furniture, Inc.*................................. 105,600
----------
1,010,556
----------
CONSUMER NON-DURABLES -- 0.83%
2,800 K-Swiss, Inc., Class A.................................... 53,900
----------
CONSUMER SERVICES -- 6.41%
15,200 Alliance Gaming Corp.*.................................... 82,650
1,700 American Disposal Services, Inc.*......................... 64,175
750 Foodmaker, Inc.*.......................................... 14,531
3,800 Intrav, Inc. ............................................. 56,050
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS MARCH 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- -----------
<C> <S> <C>
COMMON STOCKS -- CONTINUED
CONSUMER SERVICES -- CONTINUED
4,800 Rent-Way, Inc.*.......................................... $ 114,000
19,000 Tescorp, Inc.*........................................... 85,500
-----------
416,906
-----------
ELECTRONIC TECHNOLOGY -- 20.02%
3,650 3Dfx Interactive, Inc.*.................................. 103,112
2,850 Aavid Thermal Technologies, Inc.*........................ 87,994
13,200 Analogy, Inc.*........................................... 105,600
3,850 Applied Science and Technology, Inc.*.................... 60,637
1,000 ATMI, Inc.*.............................................. 30,250
1,200 Cotelligent Group, Inc.*................................. 35,550
3,750 Digi International, Inc.*................................ 103,359
14,800 Diversinet Corp.*........................................ 50,875
1,350 Engineering Animation, Inc.*............................. 56,025
4,450 International Microcomputer Software, Inc.*.............. 70,088
1,500 Kellstrom Industries, Inc.*.............................. 37,781
4,950 Memco Software, Ltd.*.................................... 154,688
3,800 MTI Technology Corp.*.................................... 65,550
7,200 Sigma Circuits, Inc.*.................................... 62,550
1,500 Special Devices, Inc.*................................... 42,750
5,000 SS&C Technologies, Inc.*................................. 84,375
4,100 THINK New Ideas, Inc.*................................... 70,213
4,300 XcelleNet, Inc.*......................................... 81,431
-----------
1,302,828
-----------
ENERGY -- 2.11%
5,000 Gulfmark Offshore, Inc.*................................. 137,500
-----------
FINANCE -- 3.24%
550 GBC Bancorp. ............................................ 36,747
5,408 Harbor Florida Banshares, Inc. .......................... 64,225
1,050 Leasing Solutions, Inc.*................................. 29,466
500 TR Financial Corp........................................ 17,375
1,000 Triad Guaranty, Inc.*.................................... 41,000
1,000 United Security Bancorp.*................................ 21,750
-----------
210,563
-----------
HEALTH CARE -- 11.37%
1,700 Advance Paradigm, Inc.*.................................. 67,362
15,500 Akorn, Inc.*............................................. 94,937
6,800 Cholestech Corp.*........................................ 102,000
6,900 D & K Healthcare Resources, Inc.*........................ 93,150
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS MARCH 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------- ----------
<C> <S> <C>
COMMON STOCKS -- CONTINUED
HEALTH CARE -- CONTINUED
5,250 Diagnostic Health Services, Inc.*......................... $ 66,938
4,600 Hanger Orthopedic Group, Inc.*............................ 77,338
3,200 Harborside Healthcare Corp.*.............................. 72,400
1,900 Kendle International, Inc.*............................... 44,175
2,000 Kensey Nash Corp.*........................................ 46,250
5,050 Stericycle, Inc.*......................................... 75,119
----------
739,669
----------
PRODUCER MANUFACTURING --6.56%
3,350 Alpine Group (The), Inc.*................................. 67,628
3,550 Dayton Superior Corp.*.................................... 71,666
2,250 Encore Wire Corp.*........................................ 72,844
600 Gardner Denver Machinery, Inc.*........................... 17,775
14,400 Mobile Mini, Inc.*........................................ 139,500
250 Robbins & Myers, Inc...................................... 9,531
2,000 Virco Manufacturing Corp. ................................ 48,250
----------
427,194
----------
RETAIL TRADE -- 11.38%
1,850 Abercrombie & Fitch Co., Class A*......................... 77,816
3,500 Ames Department Stores, Inc.*............................. 73,937
3,650 Fred's, Inc. ............................................. 90,794
8,100 Movie Gallery, Inc.*...................................... 61,763
7,250 New West Eyeworks, Inc.*.................................. 78,844
1,775 Pacific Sunwear of California*............................ 73,662
3,500 Party City Corp.*......................................... 118,563
900 Piercing Pagoda, Inc.*.................................... 28,125
10,500 Sharper Image Corp.*...................................... 47,906
3,200 Trans World Entertainment Corp.*.......................... 88,800
----------
740,210
----------
TRANSPORTATION -- 6.31%
10,000 Dynamex, Inc.*............................................ 113,750
2,450 Landair Services, Inc.*................................... 80,850
4,000 Marten Transport, Ltd.*................................... 73,000
2,050 SkyWest, Inc. ............................................ 74,825
3,300 US Xpress Enterprises, Inc., Class A*..................... 68,475
----------
410,900
----------
TOTAL COMMON STOCKS
(Cost $5,331,352)......................................... 6,527,602
----------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS MARCH 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<C> <S> <C>
SHORT TERM INVESTMENTS--1.87%
(Cost $121,406)
$121,406 The Bank of New York Cash Reserve, 4.60%.............. $ 121,406
-----------
TOTAL INVESTMENTS -- 102.19%
(Cost $5,452,758**)................................... 6,649,008
LIABILITIES IN EXCESS OF ASSETS -- (2.19%)........... (142,360)
-----------
NET ASSETS -- 100.00%................................. $ 6,506,648
===========
</TABLE>
*Non-income producing security.
**Cost for federal income tax purposes is $5,452,758 and net unrealized appre-
ciation consists of:
<TABLE>
<S> <C>
Gross unrealized appreciation................. $1,228,922
Gross unrealized depreciation................. (32,672)
----------
Net unrealized appreciation.................. $1,196,250
==========
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in securities at value (Cost $5,452,758) (Note 2)...... $6,649,008
Receivables:
Capital shares sold.............................................. 29,301
Dividends and interest receivable................................ 1,056
Deferred unamortized organization costs (Note 2).................. 73,575
----------
TOTAL ASSETS................................................... 6,752,940
----------
LIABILITIES:
Payables:
Investment securities purchased.................................. 120,076
Capital shares redeemed ......................................... 2,856
Accrued expenses................................................. 36,207
Accrued distribution fee (Note 4)................................ 1,255
Due to Adviser (Note 4).......................................... 85,898
----------
TOTAL LIABILITIES.............................................. 246,292
----------
NET ASSETS:
Applicable to 318,710 shares; unlimited number of shares
of beneficial interest authorized with no par value.............. $6,506,648
==========
Net asset value, offering and redemption price
($6,506,648 / 318,710 shares) ................................... $ 20.42
==========
NET ASSETS CONSIST OF:
Paid-in capital................................................... $5,634,674
Accumulated net investment loss .................................. (30,788)
Accumulated net realized loss on investments...................... (293,488)
Net unrealized appreciation on investments........................ 1,196,250
----------
NET ASSETS..................................................... $6,506,648
==========
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
STATEMENT OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends........................................................... $ 4,157
Interest............................................................ 4,435
----------
TOTAL INVESTMENT INCOME ........................................... 8,592
----------
EXPENSES:
Investment advisory fees (Note 4)................................... 21,878
Administration fees................................................. 59,145
Registration fees .................................................. 39,703
Transfer agent fees ................................................ 33,044
Legal fees.......................................................... 28,841
Custody fees ....................................................... 24,411
Accounting fees .................................................... 24,000
Amortization of organization costs (Note 2)......................... 18,386
Trustees fees ...................................................... 13,500
Audit fees ......................................................... 12,000
Printing fees....................................................... 8,058
Distribution fees (Note 4).......................................... 5,470
Miscellaneous fees.................................................. 3,271
Insurance fees...................................................... 1,101
----------
TOTAL EXPENSES..................................................... 292,808
Expenses waived and reimbursed by Adviser (Note 4)................ (253,428)
----------
NET EXPENSES....................................................... 39,380
----------
NET INVESTMENT LOSS.................................................. (30,788)
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments.................................... (293,488)
Net change in unrealized appreciation on investments................ 1,196,250
----------
Net realized and unrealized gain on investments..................... 902,762
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. $ 871,974
==========
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED MARCH 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
OPERATIONS:
Net investment loss................................................ $ (30,788)
Net realized loss on investments................................... (293,488)
Net change in unrealized appreciation on investments............... 1,196,250
----------
Net increase in net assets resulting from operations.............. 871,974
----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold (338,203 shares)......................... 6,041,357
Cost of shares redeemed (27,826 shares)............................ (506,683)
----------
Increase in net assets derived from capital share transactions..... 5,534,674
----------
TOTAL INCREASE IN NET ASSETS...................................... 6,406,648
----------
NET ASSETS:
Beginning of period................................................ 100,000
----------
End of period...................................................... $6,506,648
==========
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
FINANCIAL HIGHLIGHTS FOR THE YEAR ENDED MARCH 31, 1998
- --------------------------------------------------------------------------------
The table below sets forth financial data for one share of capital stock out-
standing throughout the period presented.
<TABLE>
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................................ $ 12.00/1/
-------
Income from investment operations:
Net investment loss .............................................. (0.10)
Net realized and unrealized gain on investments................... 8.52
-------
Total from investment operations................................ 8.42
-------
NET ASSET VALUE, END OF PERIOD...................................... $ 20.42
=======
TOTAL RETURN........................................................ 70.17%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000s)................................ $ 6,507
Ratio of expenses to average net assets:
Before expense reimbursement...................................... 13.35%
After expense reimbursement....................................... 1.80%
Ratio of net investment income (loss) to average net assets:
Before expense reimbursement...................................... (12.96%)
After expense reimbursement....................................... (1.41%)
Portfolio turnover rate............................................ 110.39%
Average commission rate paid....................................... $0.0395
</TABLE>
/1/Commencement of operations was 3/31/97.
See accompanying notes to financial statements.
12
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS MARCH 31, 1998
- -------------------------------------------------------------------------------
NOTE 1 -- SUMMARY OF ORGANIZATION
The Bjurman Funds (the "Trust") is organized as a Delaware business trust pur-
suant to a Trust Agreement dated September 26, 1996. The Trust is registered
under the Investment Company Act of 1940, as amended, as an open-end, diversi-
fied management investment company. The Trust is organized to offer separate
series of shares and is currently offering a single series of shares called
Bjurman Micro-Cap Growth Fund (the "Fund"). The Fund seeks capital apprecia-
tion through investments in common stocks of smaller companies with market
capitalizations between $30 million and $300 million at the time of invest-
ment.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements.
A. SECURITY VALUATION. Investments in securities traded on a national securi-
ties exchange are valued at the last reported sales price. Unlisted securi-
ties, securities sold over-the-counter, or listed securities in which there
were no sales, are valued at the mean of the closing bid and ask prices. When
market quotations are not readily available, securities and other assets are
valued at fair value as determined in good faith by the Board of Trustees.
Short-term obligations having a maturity of 60 days or less are valued at am-
ortized cost, which the Board of Trustees believes represents fair value.
B. SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Security transactions are
accounted for on the date the securities are purchased or sold (trade date).
Cost is determined and gains and losses are based on the identified cost basis
for both financial statement and federal income tax purposes. Dividend income
is recorded on the ex-dividend date. Interest income is accrued daily.
C. ORGANIZATION COSTS. Organization costs are being amortized on a straight
line basis over five years from commencement of operations.
D. FEDERAL INCOME TAXES. It is the policy of the Fund to comply with all re-
quirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no federal income tax provision is required.
E. DISTRIBUTIONS TO SHAREHOLDERS. The Fund will distribute substantially all
of its net investment income in December, and capital gains, if any, annually.
Distributions to shareholders are recorded on the ex-dividend date. Income and
capital gain distributions are determined in accordance with income tax regu-
lations which may differ from generally accepted accounting principles.
F. USE OF ESTIMATES. In preparing financial statements in conformity with gen-
erally accepted accounting principles, management makes estimates and assump-
tions that affect the reported amounts of assets and liabilities at the date
of the financial statements, as well as the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
NOTE 3 -- PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities, other than short-term investments, totaled
$8,344,754 and $2,719,914 respectively, for the year ended March 31, 1998.
13
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS -- CONTINUED MARCH 31, 1998
- -------------------------------------------------------------------------------
NOTE 4 -- INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
George D. Bjurman & Associates (the "Adviser"), a registered investment advis-
er, provides the Fund with investment management services. For providing in-
vestment advisory services, the Fund pays the Adviser a monthly fee which is
calculated by applying an annual rate of 1.00% to the average daily net assets
of the Fund. The Adviser has voluntarily agreed to waive its fees for the
first fiscal year to the extent total annualized fund operating expenses, in-
clusive of distribution expenses, exceed 1.80% of the Fund's average daily net
assets. For the year ended March 31, 1998, advisory fees of $21,878 were
waived by the Adviser and the Adviser reimbursed the Fund $209,641. Any fee
withheld or voluntarily reduced and any Fund expense absorbed by the Adviser
voluntarily or pursuant to an agreed upon expense cap shall be reimbursed by
the Fund to the Adviser, if so requested by the Adviser and approved by the
Trust's Board of Trustees, in the first, second, or third fiscal year next
succeeding the fiscal year of the withholding, reduction, absorption if the
aggregate amount paid by the Fund toward the operating expenses for such fis-
cal year (taking into account the reimbursement) do not exceed the applicable
limitation on Fund expenses. Such reimbursement may be paid prior to the
Fund's payment of current expenses if so requested by the Adviser even if such
practice may require the Adviser to waive, reduce, or absorb current Fund ex-
penses.
The Fund has adopted a Distribution Plan (the "Plan"), pursuant to Rule 12b-1
under the Investment Company Act of 1940, as amended, which permits the Fund
to pay certain expenses associated with the distribution of its shares. The
Plan provides that the Fund will reimburse FPS Broker Services, Inc. (the
"Distributor"), the Fund's sole underwriter and distributor, for actual dis-
tribution and shareholder servicing expenses incurred by the Distributor not
exceeding, on an annual basis, 0.25% of the Fund's average daily net assets.
For the year ended March 31, 1998, the Fund reimbursed the Distributor $5,470
for distribution costs incurred. Certain officers and trustees of the Fund are
affiliated persons of the Adviser. All officers serve without direct compensa-
tion from the Fund.
14
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
INDEPENDENT AUDITORS' REPORT
- -------------------------------------------------------------------------------
To the Shareholders and Board of Trustees of the Bjurman Micro-Cap Growth
Fund:
We have audited the accompanying statement of assets and liabilities of the
Bjurman Micro-Cap Growth Fund (the "Fund"), including the schedule of portfo-
lio investments, as of March 31, 1998 and the related statement of operations,
the statement of changes in net assets, and the financial highlights for the
year then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit.
We conducted our audit in accordance with generally accepted auditing stan-
dards. 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 securities owned at March
31, 1998 by correspondence with the custodian and brokers; where replies were
not received from brokers, we performed other auditing procedures. An audit
also includes assessing the accounting principles used and significant esti-
mates made by management, as well as evaluating the overall financial state-
ment presentation. We believe that our audit provides 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
Bjurman Micro-Cap Growth Fund at March 31, 1998 and the related statement of
operations, the statement of changes in net assets, and the financial high-
lights for the year then ended in conformity with generally accepted account-
ing principles.
DELOITTE & TOUCHE LLP
Los Angeles, California
May 13, 1998
15
<PAGE>
ANNUAL REPORT
BOARD OF TRUSTEES
G. Andrew Bjurman
O. Thomas Barry, III
Donald W. Hudson, Jr.
Joseph E. Maiolo
William Wallace
OFFICERS
G. Andrew Bjurman, Co-President
O. Thomas Barry, III, Co-President
INVESTMENT ADVISER
George D. Bjurman & Associates
10100 Santa Monica Boulevard, Suite 1200
Los Angeles, California 90067
UNDERWRITER
FPS Broker Services, Inc.
3200 Horizon Drive, P.O. Box 61503
King of Prussia, Pennsylvania 19406
SHAREHOLDER SERVICES
First Data Investor Services Group, Inc.
3200 Horizon Drive, P.O. Box 61503
King of Prussia, Pennsylvania 19406
CUSTODIAN
The Bank of New York
48 Wall Street
New York, New York 10286
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
345 California Street
San Francisco, California 94104
INDEPENDENT AUDITOR
Deloitte & Touche LLP
1000 Wilshire Boulevard
Los Angeles, California 90017
For Additional Information about Bjurman Micro-Cap Growth Fund call:
(800) 227-7264
(610) 239-4600
This report is submitted
for general information
of the shareholders of
the Fund. It is not au-
thorized for distribution
to prospective investors
in the Fund unless pre-
ceded or accompanied by
an effective Prospectus
which includes details
regarding the Fund's ob-
jective, policies, ex-
penses and other informa-
tion.
LOGO
Bjurman Micro-Cap Growth Fund
MARCH 31
----------
1998
