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THE o BJURMAN o FUNDS
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[LOGO]
Bjurman Micro-Cap
Growth Fund
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Annual Report
March 31, 2000
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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
IFS Fund Distributors, Inc.
312 Walnut Street, 21st Floor
Cincinnati, Ohio 45202
TRANSFER AGENT
Integrated 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
350 South Grand Avenue
Los Angeles, California 90071
TABLE OF CONTENTS
================================================================================
Letter to Shareholders ................................................... 1
Statement of Assets and Liabilities ...................................... 2
Statement of Operations .................................................. 3
Statements of Changes in Net Assets ...................................... 4
Financial Highlights ..................................................... 5
Portfolio of Investments ................................................. 6
Notes to Financial Statements ............................................ 9
Auditor's Report ......................................................... 12
================================================================================
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.
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
LETTER TO SHAREHOLDERS
================================================================================
To Our Shareholders:
The twelve months ending March 31, 2000 have been very favorable for small
capitalization growth stocks. The Bjurman Micro-Cap Growth Fund ("the Fund") had
a positive return of 124.64% versus 59.05% for the Russell 2000 Growth Index and
2.29% for the S&P 500 for the same period.
The Fund had its 3 year anniversary on March 31 and received *****, the highest
rating by Morningstar(TM) for risk adjusted returns for the 3 year period.
The Fund's weighting in the technology sector, which outperformed the market
during this period, positively impacted its returns. During February and March,
we reduced our weighting in technology stocks and increased our weighting in oil
service companies and specialty retailers. This reduction helped dampen the
effect of the decline in technology stocks in March and April of 2000.
Although March and April of this year were volatile for the market as a whole,
and technology in particular, we believe these corrections are healthy and set
the stage for continued upward movement in the stocks of the rapidly growing
companies held in the Fund.
In times of market turbulence, we think it is important to re-evaluate your
investment goals and risk tolerances. If you decide you have available funds to
meet your goals, and plan carefully, short-term volatility is less of a concern.
In fact, the longer your horizon, the less important short-term volatility
becomes.
We believe that the strong economy, coupled with moderate rates of inflation,
implies healthy corporate earnings growth in the months ahead. This environment
is very positive for the fast-growing companies held in the Fund. We look
forward to working for you in the future, striving to achieve the highest
returns possible in the positive market environment that we see ahead.
Sincerely,
/s/ G. Andrew Bjurman /s/ O. Thomas Barry
G. Andrew Bjurman, CFA, CIC O. Thomas Barry, III, CFA, CIC
Co-President and Portfolio Manager Co-President and Portfolio Manager
Performance Information
2
<PAGE>
PERFORMANCE INFORMATION
================================================================================
Comparison of the Change in Value of a $10,000 Investment in the
Bjurman Micro-Cap Growth Fund and the Russell 2000 Growth Index
--------------------------------------------------------------------------------
3/00
-------
Bjurman Micro-Cap Growth Fund $34,370
Russell 2000 Growth Index $19,974
--------------------------------------------------------------------------------
------------------------------
Average Annual Total Returns
1 Year Since Inception*
124.64% 50.80%
------------------------------
*Fund inception was March 31, 1997.
Past performance is not predictive of future performance.
3
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2000
================================================================================
ASSETS
Investment securities:
At acquisition cost ................................... $19,482,561
===========
At value (Note 2) ..................................... $24,824,918
Cash .......................................................... 3,701
Dividends receivable .......................................... 3,949
Receivable for securities sold ................................ 102,922
Receivable for capital shares sold ............................ 11,589
Organization costs, net (Note 2) .............................. 36,326
Other assets .................................................. 13,345
-----------
TOTAL ASSETS .......................................... 24,996,750
-----------
LIABILITIES
Payable for securities purchased .............................. 890,388
Payable for capital shares redeemed ........................... 963,915
Payable to Adviser (Note 4) ................................... 27,579
Payable to affiliates (Note 4) ................................ 8,450
Accrued distribution expense (Note 4) ......................... 3,281
Other accrued expenses and liabilities ........................ 48,175
-----------
TOTAL LIABILITIES ..................................... 1,941,788
-----------
NET ASSETS .................................................... $23,054,962
===========
Net assets consist of
Paid-in capital ............................................... $11,511,659
Accumulated net realized gains from security transactions ..... 6,200,946
Net unrealized appreciation on investments .................... 5,342,357
-----------
Net assets ............................................ $23,054,962
===========
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) ............ 566,024
===========
Net asset value, offering price and
redemption price per share (Note 2) ................... $ 40.73
===========
See accompanying notes to financial statements.
4
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 2000
================================================================================
INVESTMENT INCOME
Dividends ........................................... $ 20,760
------------
EXPENSES
Investment advisory fees (Note 4) ................... 140,550
Distribution expense (Note 4) ....................... 34,137
Accounting services fees (Note 4) ................... 30,000
Professional fees ................................... 28,982
Administration fees (Note 4) ........................ 26,278
Transfer agent fees (Note 4) ........................ 24,000
Trustees' fees and expenses ......................... 19,331
Organization expense (Note 2) ....................... 18,720
Custodian fees ...................................... 17,484
Registration fees ................................... 14,337
Postage and supplies ................................ 11,365
Shareholder reports ................................. 11,210
Underwriting fees (Note 4) .......................... 6,000
Other expenses ...................................... 2,449
------------
TOTAL EXPENSES .............................. 384,843
Fees waived by the Adviser (Note 4) ................. (131,854)
------------
NET EXPENSES ................................ 252,989
------------
NET INVESTMENT LOSS ......................................... (232,229)
------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions ....... 7,858,289
Net change in unrealized appreciation/
depreciation on investments ................. 3,772,014
------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS ............ 11,630,303
------------
NET INCREASE IN NET ASSETS FROM OPERATIONS .................. $ 11,398,074
============
See accompanying notes to financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
BJURMAN MICRO-CAP GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
==============================================================================================
Year Year
Ended Ended
March 31, March 31,
2000 1999
----------------------------------------------------------------------------------------------
FROM OPERATIONS
<S> <C> <C>
Net investment loss .................................. $ (232,229) $ (130,605)
Net realized gains (losses) from security transactions 7,858,289 (943,297)
Net change in unrealized appreciation/
depreciation on investments .................. 3,772,014 374,093
------------ -----------
Net increase (decrease) in net assets from operations ........ 11,398,074 (699,809)
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
From net realized gains .............................. (188,329) --
------------ -----------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ............................ 11,376,371 6,485,547
Net asset value of shares issued in reinvestment
of distributions to shareholders ............. 184,457 --
Payments for shares redeemed ......................... (9,079,715) (2,928,282)
------------ -----------
Net increase in net assets from capital share transactions ... 2,481,113 3,557,265
------------ -----------
TOTAL INCREASE IN NET ASSETS ................................. 13,690,858 2,857,456
NET ASSETS
Beginning of year .................................... 9,364,104 6,506,648
------------ -----------
End of year .......................................... $ 23,054,962 $ 9,364,104
============ ===========
CAPITAL SHARE ACTIVITY
Shares sold .......................................... 322,767 349,848
Shares reinvested .................................... 6,343 --
Shares redeemed ...................................... (273,213) (158,431)
------------ -----------
Net increase in shares outstanding ................... 55,897 191,417
Shares outstanding, beginning of year ................ 510,127 318,710
------------ -----------
Shares outstanding, end of year ...................... 566,024 510,127
============ ===========
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
BJURMAN MICRO-CAP GROWTH FUND
FINANCIAL HIGHLIGHTS
================================================================================================
Selected Per Share Data and Ratios for a Share Outstanding Throughout Each Year
================================================================================================
Year Year Year
Ended Ended Ended
March 31, March 31, March 31,
2000 1999 1998
------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value at beginning of year ............. $ 18.36 $ 20.42 $ 12.00
---------- ---------- ----------
Income (loss) from investment operations:
Net investment loss ...................... (0.41) (0.26) (0.10)
Net realized and unrealized gains
(losses) on investments ............ 23.15 (1.80) 8.52
---------- ---------- ----------
Total from investment operations ................. 22.74 (2.06) 8.42
---------- ---------- ----------
Less distributions:
Distributions from net realized gains .... (0.37) -- --
---------- ---------- ----------
Net asset value at end of year ................... $ 40.73 $ 18.36 $ 20.42
========== ========== ==========
Total return ..................................... 124.64% (10.09%) 70.17%
========== ========== ==========
Net assets at end of year (000's) ............... $ 23,055 $ 9,364 $ 6,507
========== ========== ==========
Ratio of net expenses to average net assets ...... 1.80% 1.80% 1.80%
Ratio of total expenses to average net assets(A) . 2.74% 4.40% 13.35%
Ratio of net investment loss to average net assets (1.65%) (1.58%) (1.41%)
Portfolio turnover rate .......................... 337% 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.
7
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS
MARCH 31, 2000
================================================================================
SHARES COMMON STOCKS -- 104.0% VALUE
--------------------------------------------------------------------------------
BASIC MATERIALS**-- 4.1%
68,500 Applied Extrusion Technologies, Inc.* ............ $ 560,843
17,000 Pope & Talbot, Inc. .............................. 312,375
5,000 TETRA Technologies, Inc.* ........................ 66,875
------------
940,093
------------
CONSUMER, CYCLICAL**-- 15.0%
32,800 Coastcast Corp.* ................................. 561,700
12,400 Concord Camera Corp.* ............................ 682,000
27,800 Gadzooks, Inc.* .................................. 602,912
10,800 Hot Topic, Inc.* ................................. 378,000
18,200 P.F. Chang's China Bistro, Inc.* ................. 602,875
14,900 Todd-AO Corp., Class A ........................... 514,050
5,000 VICORP Restaurants, Inc.* ........................ 104,375
------------
3,445,912
------------
CONSUMER, NON-CYCLICAL**-- 8.3%
20,000 AVI BioPharma, Inc.* ............................. 250,000
24,900 Cholestech Corp.* ................................ 210,871
11,100 DAMARK International, Inc., Class A* ............. 423,188
23,000 Gentner Communications Corp.* .................... 465,750
18,400 Nabi* ............................................ 124,200
25,300 Vion Pharmaceuticals, Inc.* ...................... 449,075
------------
1,923,084
------------
ENERGY**-- 15.3%
60,000 Belco Oil & Gas Corp.* ........................... 622,500
43,500 Bellwether Exploration Co.* ...................... 301,781
100,000 Comstock Resources, Inc.* ........................ 550,000
47,900 Key Production Co., Inc.* ........................ 640,662
47,400 Patina Oil & Gas Corp. ........................... 642,862
21,400 Quicksilver Resources, Inc.* ..................... 128,400
21,400 St. Mary Land & Exploration Co. .................. 639,325
------------
3,525,530
------------
INDUSTRIAL**-- 3.4%
4,000 Optimal Robotics Corp.* .......................... 188,000
40,000 White Electronic Designs Corp.* .................. 600,000
------------
788,000
------------
8
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
SHARES COMMON STOCKS -- 104.0% (CONTINUED) VALUE
--------------------------------------------------------------------------------
TECHNOLOGY**-- 57.9%
6,000 Aaren Microwave, Inc.* ........................... $ 575,250
22,500 AlphaNet Solutions, Inc.* ........................ 133,594
15,600 Ansoft Corp.* .................................... 193,294
15,000 Brooktrout, Inc.* ................................ 435,000
21,900 Centigram Communications Corp.* .................. 416,100
20,000 Dataram Corp.* ................................... 465,000
4,800 Digital Insight Corp.* ........................... 246,000
10,000 Diodes, Inc.* .................................... 375,000
9,000 Elantec Semiconductor, Inc.* ..................... 662,063
6,000 Exar Corp.* ...................................... 429,375
27,500 Faroudja, Inc.* .................................. 144,375
9,500 Genome Therapeutics Corp.* ....................... 223,844
13,500 Hall, Kinion & Associates, Inc.* ................. 324,844
6,000 Ibis Technology Corp.* ........................... 540,000
33,400 Integra LifeSciences Holdings* ................... 350,700
16,000 Intergraph Corp.* ................................ 142,000
4,400 Interleaf, Inc.* ................................. 206,800
10,000 Keithley Instruments, Inc. ....................... 476,250
15,000 Magic Software Enterprises Ltd.* ................. 285,000
22,700 MAPICS, Inc.* .................................... 361,781
15,000 MapInfo Corp.* ................................... 585,000
17,700 Optika, Inc.* .................................... 495,600
12,300 Pericom Semiconductor Corp.* ..................... 438,956
7,000 Photon Dynamics, Inc.* ........................... 483,000
2,900 Prophet 21, Inc.* ................................ 53,469
7,500 RadiSys Corp.* ................................... 450,938
23,300 Reptron Electronics, Inc.* ....................... 254,844
37,800 Robotic Vision Systems, Inc.* .................... 604,800
83,500 Sento Corp.* ..................................... 532,313
41,300 StarBase Corp.* .................................. 387,188
10,000 Stratasys, Inc.* ................................. 77,500
22,000 TALX Corp.* ...................................... 418,000
10,000 Three-Five Systems, Inc.* ........................ 600,000
10,000 Tollgrade Communications, Inc.* .................. 530,000
40,000 ZEVEX International, Inc.* ....................... 447,500
------------
13,345,378
------------
TOTAL COMMON STOCKS (Cost $18,625,640) ........... $ 23,967,997
------------
9
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
================================================================================
SHARES MONEY MARKETS -- 3.7% VALUE
--------------------------------------------------------------------------------
856,921 Firstar Stellar Treasury Fund (Cost $856,921) .... $ 856,921
------------
TOTAL INVESTMENT SECURITIES-- 107.7%
(Cost $19,482,561) ............................... $ 24,824,918
LIABILITIES IN EXCESS OF OTHER ASSETS-- (7.7%) ... (1,769,956)
------------
NET ASSETS-- 100.0% .............................. $ 23,054,962
============
* Non-income producing security.
** Securities are grouped by sector.
10
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000
================================================================================
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, 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 -- The Fund's portfolio securities are valued as of the
close of business of the regular session of trading on the New York Stock
Exchange (normally 4:00 p.m., Eastern time). Securities which are traded on
stock exchanges or are quoted by NASDAQ are valued at the closing sales price
or, if not traded on a particular day, at the closing bid price. Securities
traded in the over-the-counter market, and which are not quoted by NASDAQ, are
valued at the last sales price, if available, otherwise, at the last quoted bid
price. Securities for which market quotations are not readily available are
valued at fair value as determined in good faith in accordance with procedures
established by and under the general supervision of the Board of Trustees.
Short-term investments 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 determined 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.
11
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
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.
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 $19,514,592
as of March 31, 2000, the Fund had net unrealized appreciation of $5,310,326,
consisting of $6,186,868 of gross unrealized appreciation and $876,542 of gross
unrealized depreciation. The difference between the federal income tax cost of
portfolio investments and the acquisition cost is due to certain timing
differences in the recognition of capital losses under income tax regulations
and generally accepted accounting principles.
Reclassification of capital accounts -- For the year ended March 31, 2000, the
Fund reclassified net investment losses of $232,229 against accumulated net
realized gains from security transactions on the Statement of Assets and
Liabilities. Such reclassification, the result of permanent differences between
financial statement and income tax reporting requirements, has no effect on the
Fund's net assets or net asset value per share.
3. INVESTMENT TRANSACTIONS
For the year ended March 31, 2000, cost of purchases and proceeds from sales of
portfolio securities, other than short-term investments, amounted to $49,705,413
and $46,664,459, respectively.
4. TRANSACTIONS WITH AFFILIATES
Certain Trustees and officers of the Trust are also officers of George D.
Bjurman & Associates (the "Adviser"), or of Integrated Fund Services, Inc.
("IFS"), 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, 2000, the Adviser waived $131,854 of
its investment advisory fee. Any fees withheld or voluntarily reduced and any
Fund expense absorbed by the Adviser voluntarily or pursuant to an agreed upon
expense cap which are the Fund's obligation are subject reimbursement by the
Fund to the Adviser, if so requested by the Adviser, in subsequent fiscal years,
if the aggregate amount paid by the Fund toward the operating expenses for such
fiscal year (taking into account the reimbursement) does not exceed the
applicable limitation on Fund expenses. The Adviser is permitted to be
reimbursed only for fee reductions and expense payments made in the previous
three fiscal years, except that it is permitted to look back up to five years
and four years, respectively, during the initial six years and seventh year of
the Fund's operations. Any such reimbursement is also contingent upon the Board
of Trustees' review and approval at the time the reimbursement is made. Such
reimbursement may not be paid prior to the Fund's payment of current ordinary
expenses.
12
<PAGE>
BJURMAN MICRO-CAP GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
ADMINISTRATION FEE
Under the terms of an Administration Agreement, IFS supplies non-investment
related statistical and research data, internal regulatory compliance services
and executive and administrative services for the Fund. IFS 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, IFS 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.
TRANSFER AGENT FEE
Under the terms of a Transfer, Dividend Disbursing, Shareholder Service and Plan
Agency Agreement, IFS 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, IFS receives a monthly fee at an annual rate of $20 per shareholder
account, subject to a monthly minimum fee of $2,000. In addition, the Fund pays
IFS out-of-pocket expenses including, but not limited to, postage and supplies.
ACCOUNTING SERVICES FEE
Under the terms of an Accounting Services Agreement, IFS calculates the daily
net asset value per share and maintains the financial books and records of the
Fund. For these services, IFS receives a monthly fee, based on current net
assets, of $2,500 from the Fund. In addition, the Fund pays IFS certain
out-of-pocket expenses incurred by IFS in obtaining valuations of the Fund's
portfolio securities.
UNDERWRITING FEE
Under the terms of an Underwriting Agreement, IFS Fund Distributors, Inc. (the
"Underwriter") serves as principal underwriter for the Fund and, as such, is the
exclusive agent for the distribution of shares of the Fund. For these services,
the Underwriter receives a monthly fee of $500 from the Fund. The Underwriter is
an affiliate of IFS 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 $34,137 of distribution fees during the year ended March 31, 2000.
13
<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 Bjurman
Micro-Cap Growth Fund (the "Fund"), including the portfolio of investments, as
of March 31, 2000 and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the three 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, 2000 by correspondence with the custodian and brokers. 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, 2000, 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 three years in the period then ended, in conformity with generally accepted
accounting principles.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Los Angeles, California
May 5, 2000
