THE . BJURMAN . FUNDS
[LOGO]
Bjurman Micro-Cap
Growth Fund
-----------------
Annual Report
March 31, 1999
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BJURMAN MICRO-CAP GROWTH FUND
LETTER TO SHAREHOLDERS
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TO OUR SHAREHOLDERS:
The Bjurman Micro-Cap Growth Fund opened March 31, 1997 and has had a positive
cumulative total return of 53.00% versus a total return of 25.59% for the
Russell 2000 Growth Index for the 2-year period ending March 31, 1999. The past
12 months have witnessed weakness in small cap stocks in general, as our
micro-cap Fund had a negative return of -10.09% versus a negative return of
- -11.04% for the Russell 2000 Growth Index. This negative return was in spite of
the 49.1% median last 12 months earnings growth rate for the companies in the
Fund. Over longer periods of time the prices of stocks generally move in the
direction of earnings growth. As we continue to focus on fast growing companies,
we would expect the returns to be in line with the underlying earnings growth of
the companies in the portfolio.
Positive economic fundamentals continue to support strong earnings growth for
small capitalization companies. The expected median earnings growth for the
companies held in the Fund for the next 12 months is 29% versus 19% for the
Russell 2000 Index and 18.5% for the S&P 500 Index. The median forward
price/earnings ratio for the companies held in the Fund is 17.2x, versus 13.6x
for the Russell 2000 and 18.6x for the S&P 500. High earnings growth rates and
low price/earnings ratios (undervaluation) tend to produce an excellent
opportunity for investors.
As of March 31, 1999, the Fund was diversified among 63 companies and 13 sectors
of the market.
MARKET OUTLOOK
Strong economic growth in the United States, coupled with low inflation and low
interest rates, provide an excellent underpinning for gains in the overall stock
market.
Small capitalization stocks are at a 20 year low relative to large
capitalization issues. Because of the current low valuations and high earnings
growth for small cap stocks, we believe this to be one of the most opportune
times in history for investment in this sector of the market.
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
equity investment management and seek to outperform market averages over a
complete market cycle by investing in companies we believe have above average
earnings prospects.
Our 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 up to $300 million, using five models
which emphasize both growth and value attributes. The screening factors include
(1) earnings growth, (2) earnings strength, (3) earnings revision, (4)
price/earnings to growth ratio and (5) price to cash flow. The next step
involves 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 promising
industries are then subjected to additional fundamental and technical research.
Generally, we attempt to identify profitable companies with capable management
teams, above average reinvestment rates, strong industry positions, and
productive research and development efforts. To ensure a well-diversified
portfolio, commitments to any one issue or industry are generally limited to 5%
and 15%, respectively, of the Fund's market value.
1
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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 (800) 227-7264
or download from our website: www.bjurmanfunds.com.
The Fund is also available through the following brokerage houses: Accutrade
Inc., Ameritrade Inc., Bidwell & Co., Charles Schwab & Co. Inc.'s Mutual Fund
One Source(R) program, Discover Brokerage Direct, E*Trade, Fidelity Investments,
Jack White & Co.'s No Fee Network, People's Securities, Waterhouse Securities
Inc., and Quick & Reilly.
We thank you for your continued support and confidence in our organization.
Sincerely,
/s/ G. Andrew Bjurman, CFA, CIC /s/ O. Thomas Barry, III, CFA, CIC
G. Andrew Bjurman, CFA, CIC O. Thomas Barry, III, CFA, CIC
Co-President and Portfolio Manager Co-President and Portfolio Manager
Comparison of the Change in Value of a $10,000 Investment in the
Bjurman Micro-Cap Growth Fund and the Russell 2000 Growth Index
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3/99
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Bjurman Micro-Cap Growth Fund $15,300
Russell 2000 Growth Index $12,559
- --------------------------------------------------------------------------------
------------------------------
Average Annual Total Returns
1 Year Since Inception*
(10.09)% 23.69%
------------------------------
*Fund inception was March 31, 1997.
Past performance is not predictive of future performance.
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BJURMAN MICRO-CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1999
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ASSETS
Investment securities:
At acquisition cost ....................................... $ 7,859,459
===========
At value (Note 2) ......................................... $ 9,429,802
Dividends receivable ......................................... 480
Receivable for capital shares sold ........................... 5,500
Receivable for securities sold ............................... 131,164
Due from Adviser ............................................. 20,036
Organization costs, net (Note 2) ............................. 55,046
Other assets ................................................. 7,016
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TOTAL ASSETS .............................................. 9,649,044
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LIABILITIES
Payable for capital shares redeemed .......................... 18,134
Payable for securities purchased ............................. 218,442
Payable to affiliates (Note 4) ............................... 23,209
Other accrued expenses and liabilities ....................... 25,155
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TOTAL LIABILITIES ......................................... 284,940
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NET ASSETS ................................................... $ 9,364,104
===========
Net assets consist of:
Paid-in capital .............................................. $ 9,030,546
Accumulated net realized loss from security transactions ..... (1,236,785)
Net unrealized appreciation on investments ................... 1,570,343
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Net assets ................................................ $ 9,364,104
===========
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) ................ 510,127
===========
Net asset value, offering price and
redemption price per share (Note 2) ....................... $ 18.36
===========
See accompanying notes to financial statements.
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BJURMAN MICRO-CAP GROWTH FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1999
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INVESTMENT INCOME
Dividends .................................................... $ 18,197
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EXPENSES
Investment advisory fees (Note 4) ............................ 82,678
Professional fees ............................................ 60,615
Administration fees (Note 4) ................................. 49,973
Transfer agent fees (Note 4) ................................. 41,348
Accounting services fees (Note 4) ............................ 25,660
Distribution expense (Note 4) ................................ 20,670
Custodian fees ............................................... 19,831
Organization expense (Note 2) ................................ 18,529
Trustees' fees and expenses .................................. 16,550
Registration fees ............................................ 10,004
Shareholder reports .......................................... 8,606
Postage and supplies ......................................... 8,507
Underwriting fees (Note 4) ................................... 1,500
Insurance expense ............................................ 1,071
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TOTAL EXPENSES ............................................ 365,542
Fees waived and expenses reimbursed by the Adviser (Note 4) .. (216,740)
---------
NET EXPENSES .............................................. 148,802
---------
NET INVESTMENT LOSS ............................................. (130,605)
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss from security transactions ................. (943,297)
Net change in unrealized appreciation/
depreciation on investments ............................... 374,093
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NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS ................. (569,204)
---------
NET DECREASE IN NET ASSETS FROM OPERATIONS ...................... $(699,809)
=========
See accompanying notes to financial statements.
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<TABLE>
<CAPTION>
BJURMAN MICRO-CAP GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED MARCH 31, 1999 AND 1998
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YEAR YEAR
ENDED ENDED
MARCH 31, MARCH 31,
1999 1998
- ---------------------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C>
Net investment loss ............................................. $ (130,605) $ (30,788)
Net realized loss from security transactions .................... (943,297) (293,488)
Net change in unrealized appreciation/depreciation on investments 374,093 1,196,250
----------- -----------
Net increase (decrease) in net assets from operations .............. (699,809) 871,974
----------- -----------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ....................................... 6,485,547 6,041,357
Payments for shares redeemed .................................... (2,928,282) (506,683)
----------- -----------
Net increase in net assets from capital share transactions ......... 3,557,265 5,534,674
----------- -----------
TOTAL INCREASE IN NET ASSETS ....................................... 2,857,456 6,406,648
NET ASSETS
Beginning of year (Note 1) ...................................... 6,506,648 100,000
----------- -----------
End of year ..................................................... $ 9,364,104 $ 6,506,648
=========== ===========
CAPITAL SHARE ACTIVITY
Shares sold ..................................................... 349,848 338,203
Shares redeemed ................................................. (158,431) (27,826)
----------- -----------
Net increase in shares outstanding .............................. 191,417 310,377
Shares outstanding, beginning of year (Note 1) .................. 318,710 8,333
----------- -----------
Shares outstanding, end of year ................................. 510,127 318,710
=========== ===========
</TABLE>
See accompanying notes to financial statements.
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<TABLE>
<CAPTION>
BJURMAN MICRO-CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
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SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
- -----------------------------------------------------------------------------------
YEAR YEAR
ENDED ENDED
MARCH 31, MARCH 31,
1999 1998
- -----------------------------------------------------------------------------------
<S> <C> <C>
Net asset value at beginning of year .................... $ 20.42 $ 12.00
-------- --------
Income (loss) from investment operations:
Net investment loss .................................. (0.26) (0.10)
Net realized and unrealized gain (loss) on investments (1.80) 8.52
-------- --------
Total from investment operations ........................ (2.06) 8.42
-------- --------
Net asset value at end of year .......................... $ 18.36 $ 20.42
======== ========
Total return ............................................ (10.09%) 70.17%
======== ========
Net assets at end of year (000's) ....................... $ 9,364 $ 6,507
======== ========
Ratio of net expenses to average net assets ............. 1.80% 1.80%
Ratio of gross expenses to average net assets(A) ........ 4.40% 13.35%
Ratio of net investment loss to average net assets ...... (1.58%) (1.41%)
Portfolio turnover rate ................................. 234% 110%
</TABLE>
(A) Represents the ratio of expenses to average net assets absent fee waivers
and expense reimbursements by the Adviser (Note 4).
See accompanying notes to financial statements.
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BJURMAN MICRO-CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 1999
================================================================================
SHARES COMMON STOCKS -- 99.3% VALUE
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BASIC MATERIALS** -- 1.5%
6,200 Armor Holdings, Inc.* ....................... $ 84,863
10,000 Display Technologies, Inc. .................. 51,875
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136,738
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CONSUMER, CYCLICAL**-- 5.2%
11,500 JAKKS Pacific, Inc.* ........................ 212,750
6,002 Monaco Coach Corp.* ......................... 138,421
3,500 Powerhouse Technologies, Inc.* .............. 60,156
3,000 Salton, Inc.* ............................... 73,312
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484,639
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CONSUMER, NON-CYCLICAL** -- 1.3%
6,000 J & J Snack Foods Corp.* .................... 120,750
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CONSUMER SERVICES** -- 2.2%
4,000 Bristol Hotel & Resorts, Inc.* .............. 34,250
5,500 Information Holdings Inc.* .................. 98,312
8,000 Taco Cabana, Inc.* .......................... 70,500
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203,062
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ELECTRONIC TECHNOLOGY** -- 36.5%
11,100 Alpha Industries, Inc.* ..................... 203,963
10,700 Ardent Software, Inc.* ...................... 171,869
10,000 Cybex Computer Products Corp.* .............. 179,375
4,600 Digital Lava, Inc.* ......................... 51,750
2,500 Environmental Tectonics Corp.* .............. 50,625
8,800 Genesis Microchip Inc.* ..................... 209,000
2,000 Heritage Commerce Corp.* .................... 40,500
7,900 Herley Industries, Inc.* .................... 94,800
18,600 InterVoice, Inc.* ........................... 204,600
23,000 Measurement Specialties, Inc.* .............. 172,500
9,500 Microwave Power Devices, Inc.* .............. 76,000
8,200 MySoftware Co.* ............................. 143,500
250 pcOrder.com, Inc.* .......................... 14,156
12,000 Rimage Corp.* ............................... 174,000
4,100 theglobe.com, Inc.* ......................... 213,713
9,900 Transwitch Corp.* ........................... 447,975
7,400 TSI International Software Ltd.* ............ 361,213
10,000 Wiztec Solutions Ltd.* ...................... 179,375
6,500 Xoom.com, Inc.* ............................. 435,906
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3,424,820
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ENERGY** -- 5.1%
5,000 Cabot Oil & Gas Corp. ....................... 72,188
13,900 Chieftain International, Inc.* .............. 170,275
17,400 Nuevo Energy Co.* ........................... 234,900
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477,363
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BJURMAN MICRO-CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
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SHARES COMMON STOCKS -- 99.3% (CONTINUED) VALUE
- --------------------------------------------------------------------------------
FINANCE** -- 3.7%
6,700 CNY Financial Corp. ......................... $ 82,075
2,000 Emerald Financial Corp. ..................... 37,375
4,900 MECH Financial, Inc. ........................ 154,963
2,000 MicroFinancial Inc.* ........................ 29,000
500 MiningCo.com, Inc.* ......................... 44,750
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348,163
-----------
HEALTHCARE**-- 19.8%
14,000 Abgenix, Inc.* .............................. 211,750
3,500 Advance Paradigm, Inc.* ..................... 221,156
17,000 Colorado MEDtech, Inc.* ..................... 189,125
8,900 D & K Healthcare Resources, Inc.* ........... 220,275
7,500 Empi, Inc.* ................................. 162,187
12,000 MedicalControl, Inc.* ....................... 115,500
5,100 Priority Healthcare Corp.* .................. 230,775
13,000 Stericycle, Inc.* ........................... 174,687
2,500 WorldHeart Corp.* ........................... 34,844
7,500 Xomed Surgical Products, Inc.* .............. 294,375
-----------
1,854,674
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INDUSTRIAL** -- 11.1%
10,200 GP Strategies Corp.* ........................ 181,050
9,700 Market Guide, Inc.* ......................... 124,887
8,000 NetGravity, Inc.* ........................... 331,000
11,000 New Horizons Worldwide, Inc.* ............... 218,625
9,400 School Specialty, Inc.* ..................... 183,887
-----------
1,039,449
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PRODUCER MANUFACTURING** -- 3.5%
14,500 Noble International, Ltd.* .................. 154,062
4,000 Oshkosh Truck Corp. ......................... 130,000
1,500 STRATTEC SECURITY CORP.* .................... 42,188
-----------
326,250
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RETAIL TRADE** -- 6.2%
20,000 Bombay Company, Inc. (The)* ................. 80,000
9,300 Chico's Fas, Inc.* .......................... 199,950
11,500 Hello Direct, Inc.* ......................... 92,000
16,600 One Price Clothing Stores, Inc.* ............ 80,925
6,000 Sonic Automotive, Inc.* ..................... 93,000
4,000 Ultimate Electronics, Inc.* ................. 37,250
-----------
583,125
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UTILITIES** -- 3.2%
12,500 Gilat Communications Ltd.* .................. 174,219
11,100 Price Communications Corp.* ................. 123,488
-----------
297,707
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TOTAL COMMON STOCKS (COST $7,726,397) ....... $ 9,296,740
-----------
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BJURMAN MICRO-CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
SHARES MONEY MARKETS -- 1.4% VALUE
- --------------------------------------------------------------------------------
133,062 Firstar Treasury Fund (Cost $133,062) ....... $ 133,062
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TOTAL INVESTMENT SECURITIES-- 100.7%
(COST $7,859,459) ......................... $ 9,429,802
LIABILITIES IN EXCESS OF OTHER ASSETS-- (0.7)% (65,698)
-----------
NET ASSETS -- 100.0% ........................ $ 9,364,104
===========
* Non-income producing security.
** Securities are grouped by sector.
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BJURMAN MICRO-CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
================================================================================
1. ORGANIZATION
The Bjurman Funds (the "Trust") is organized as a Delaware business trust
pursuant 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,
diversified 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 commenced operations
on March 31, 1997 when 8,333 capital shares were purchased at $12 per share.
The Fund seeks capital appreciation through investments in the common stocks of
smaller companies with market capitalizations typically between $30 million and
$300 million at the time of investment.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Fund's significant accounting policies:
Securities valuation -- Investments in securities traded on a national
securities exchange are valued at the last reported sales price. Unlisted
securities, 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
amortized cost, which the Board of Trustees believes represents fair value.
Share valuation -- The net asset value per share of the Fund is calculated daily
by dividing the total value of the Fund's assets, less liabilities, by the
number of shares outstanding. The offering price and redemption price per share
of the Fund is equal to the net asset value per share.
Investment income and distributions to shareholders -- Interest income is
accrued as earned. Dividend income is recorded on the ex-dividend date.
Dividends arising from net investment income, if any, are declared and paid
annually in December. Net realized short-term capital gains, if any, may be
distributed throughout the year and net realized long-term capital gains, if
any, are distributed at least once each year. Income dividends and capital gain
distributions are determined in accordance with income tax regulations.
Organization expenses -- Expenses of organization have been capitalized and are
being amortized on a straight-line basis over five years.
Security transactions -- Security transactions are accounted for on trade date.
Securities sold are valued on a specific identification basis.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles 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 during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
10
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BJURMAN MICRO-CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also the Fund's intention to declare as dividends in
each calendar year at least 98% of its net investment income (earned during the
calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
Based upon the federal income tax cost of portfolio investments of $7,859,459 as
of March 31, 1999, the Fund had net unrealized appreciation of $1,570,343,
consisting of $1,804,380 of gross unrealized appreciation and $234,037 of gross
unrealized depreciation.
As of March 31, 1999, the Fund had capital loss carryforwards for federal income
tax purposes of $1,236,785, which expire through March 31, 2007. These capital
loss carryforwards may be utilized in future years to offset net realized
capital gains, if any, prior to distributing such gains to shareholders. The
Fund's net investment loss of $130,605 for the year ended March 31, 1999 has
been reclassified to paid-in capital on the Statement of Assets and Liabilities.
3. INVESTMENT TRANSACTIONS
For the year ended March 31, 1999, cost of purchases and proceeds from sales of
portfolio securities, other than short-term investments, amounted to $22,389,052
and $19,050,710, respectively.
4. TRANSACTIONS WITH AFFILIATES
Certain trustees and officers of the Trust are also officers of George D.
Bjurman & Associates (the "Adviser"), or of Countrywide Fund Services, Inc.
("CFS"), the administrative services agent, shareholder servicing and transfer
agent, and accounting services agent for the Trust.
INVESTMENT ADVISORY FEE
The Adviser provides the Fund with investment advisory services. For providing
investment advisory services, the Fund pays the Adviser a monthly fee, which is
calculated daily by applying an annual rate of 1.00% to the average daily net
assets of the Fund. The Adviser has voluntarily agreed to waive all or a portion
of its fees and to reimburse certain expenses of the Fund to the extent
necessary to limit total operating expenses to 1.80% of the Fund's average daily
net assets. For the year ended March 31, 1999, the Adviser waived its investment
advisory fee of $82,678 and reimbursed the Fund for $134,062 of other operating
expenses. 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, and/or
absorption, if the aggregate amount paid by the Fund toward the operating
expense for such fiscal year (taking into account the reimbursement) does 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 expense.
11
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BJURMAN MICRO-CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
ADMINISTRATION FEE
Under the terms of the Administration Agreement effective December 18, 1998, CFS
supplies non-investment related statistical and research data, internal
regulatory compliance services and executive and administrative services for the
Fund. CFS supervises the preparation of tax returns, reports to shareholders of
the Fund, reports to and filings with the Securities and Exchange Commission and
state securities commissions, and materials for meetings of the Board of
Trustees. For these services, CFS receives a monthly fee at an annual rate of
0.15% of the Fund's average daily net assets up to $25 million; 0.125% of such
assets from $25 million to $50 million; and 0.10% of such assets in excess of
$50 million, subject to a monthly minimum fee of $2,000. Under the
Administration Agreement, CFS earned $6,710 during the year ended March 31,
1999.
TRANSFER AGENT FEE
Under the terms of the Transfer, Dividend Disbursing, Shareholder Service and
Plan Agency Agreement effective December 18, 1998, CFS maintains the records of
each shareholder's account, answers shareholders' inquiries concerning their
accounts, processes purchases and redemptions of the Fund's shares, acts as
dividend and distribution disbursing agent and performs other shareholder
service functions. For these services, CFS receives a monthly fee at an annual
rate of $20 per shareholder account, subject to a monthly minimum fee of $2,000.
Under the Transfer, Dividend Disbursing, Shareholder Service and Plan Agency
Agreement, CFS earned $6,710 during the year ended March 31, 1999. In addition,
the Fund pays CFS out-of-pocket expenses including, but not limited to, postage
and supplies.
ACCOUNTING SERVICES FEE
Under the terms of the Accounting Services Agreement effective December 18,
1998, CFS calculates the daily net asset value per share and maintains the
financial books and records of the Fund. For these services, CFS receives a
monthly fee, based on current net assets, of $2,500 from the Fund. Under the
Accounting Services Agreement, CFS earned $8,387 during the year ended March 31,
1999. In addition, the Fund pays certain out-of-pocket expenses incurred by CFS
in obtaining valuations of the Fund's portfolio securities.
UNDERWRITING FEE
Under the terms of an Underwriting Agreement effective December 18, 1998, CW
Fund Distributors, Inc. (the "Underwriter") serves as the exclusive agent for
the distribution of the Fund's shares. For these services, the Underwriter
receives a monthly fee of $500 from the Fund. The Underwriter is an affiliate of
CFS by reason of common ownership.
DISTRIBUTION PLAN
The Fund has adopted a Distribution Plan (the Plan) pursuant to Rule 12b-1 under
the Investment Company Act of 1940, as amended. As provided in the Plan, the
Fund will reimburse the Adviser, the Underwriter or others for expenses incurred
in distributing and promoting shares of the Fund at a maximum aggregate annual
rate of 0.25% of the Fund's average daily net assets. Under the Plan, the Fund
incurred $20,670 of distribution fees during the year ended March 31, 1999.
PRIOR AFFILIATE AGREEMENTS
Prior to December 18, 1998, First Data Investor Services Group ("FDIS")
performed administrative, transfer agent and accounting services for the Fund.
Contractual amounts paid by the Fund to FDIS for these administrative, transfer
agent and accounting services were $43,263, $34,638 and $17,273, respectively,
during the period ended December 18, 1998.
12
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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 Bjurman
Micro-Cap Growth Fund (the "Fund"), including the portfolio of investments, as
of March 31, 1999 and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the two years in the
period then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at March
31, 1999 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 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
Bjurman Micro-Cap Growth Fund as of March 31, 1999, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the two years in the period then ended, in conformity with generally accepted
accounting principles.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Los Angeles, California
May 12, 1999
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THE BJURMAN FUNDS
10100 Santa Monica Blvd., Suite 1200
Los Angeles, California 90067
BOARD OF TRUSTEES
G. Andrew Bjurman
O. Thomas Barry, III
Donald W. Hudson, Jr.
Joseph E. Maiolo
William Wallace
INVESTMENT ADVISER
George D. Bjurman & Associates
10100 Santa Monica Blvd, Suite 1200
Los Angeles, California 90067
UNDERWRITER
CW Fund Distributors, Inc.
312 Walnut Street, 21st Floor
Cincinnati, Ohio 45202
TRANSFER AGENT
Countrywide Fund Services, Inc.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
CUSTODIAN
Firstar Bank, N.A.
425 Walnut Street, 6th Floor
Cincinnati, Ohio 45202
LEGAL COUNSEL
Gibson, Dunn & Crutcher LLP
333 South Grand Avenue
Los Angeles, California 90071
INDEPENDENT AUDITOR
Deloitte & Touche LLP
1000 Wilshire Boulevard
Los Angeles, California 90017
TABLE OF CONTENTS
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President's Letter ........................ 1
Statement of Assets and Liabilities ....... 3
Statement of Operations ................... 4
Statement of Changes in Net Assets ........ 5
Financial Highlights ...................... 6
Portfolio of Investments .................. 7
Notes to Financial Statements ............. 10
Auditors' Report .......................... 13
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For Additional Information and a free
prospectus about Bjurman Micro-Cap
Growth Fund call:
(800) 227-7264
or visit The Bjurman Funds' website on the
Internet at www.bjurmanfunds.com
This report is submitted for general information of the shareholders of the
Fund. It is not authorized for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective Prospectus which includes details
regarding the Fund's objective, policies, expenses and other information.
