<PAGE> 1
LETTER TO SHAREHOLDERS
OVERVIEW
Last fall, the Federal Reserve Board lowered interest rates by 3/4% in an effort
to stabilize the economy and financial markets which were reeling from the
impact of the meltdown of several Asian currencies and economies. Fueled by
these rate cuts and in an environment of strong earnings growth and low
inflation, most of the major stock market averages staged dramatic recoveries
from their second half 1998 lows. The Dow Jones Industrial Average bottomed at
7,539.07 on August 31, 1998 and by June 30, 1999 it reached 10,970.80, a gain of
45.52%. Small and medium-sized companies hit their nadir later in the year. The
Russell 2000 Index reached a depressed level of 310.28 on October 8, 1998 and by
June 30, 1999 had reached 457.68, a gain of 47.51%.
As of October 31, 1999, concerns about potential inflation prompted the Federal
Reserve Board to make a preemptive strike by raising key interest rates by 1/2%
in the second half of 1999. This tightening of the credit markets led to a broad
correction in the stock markets. As with the correction in the fall of 1998,
small and mid-capitalization indices suffered worse declines than their larger
capitalization counterparts. However, by the fall of 1999, strong earnings
growth from finance and technology issues as well as benign inflation figures
drove the stock market to recover most of those losses. The small capitalization
Russell 2000 Index fell -5.94% from June 30, 1999 through October 31, 1999,
while the larger capitalization Standard and Poors 500 Index fell only -0.31%
over the same period.
As we stated in our semi-annual report, investors in the 1999 stock market have
continued to favor large capitalization stocks. To illustrate this fact, we have
listed the average (equally weighted) year to date returns for four groups of
companies. Listed from largest to smallest:
20 largest S&P 500 companies +20.5%
Next 480 S&P 500 companies +7.0%
S&P Mid-cap 400 companies +0.4%
S&P Small-cap 600 companies +2.6%
In summation, 1999 proved to be a very challenging year. Even in the face of
rising interest rates, the market rewarded those companies that successfully
executed their business strategies with higher stock prices and severely
punished the stocks of those that failed. Fund managers that successfully
distinguished between the two, established solid positive returns for their
shareholders.
1
<PAGE> 2
THE STONEBRIDGE GROWTH FUND
In the semi-annual report, we mentioned that we had increased portfolio turnover
from past levels in order to take advantage of the sell off in equity markets in
the fall of 1998. Our heavy sector exposures to technology and financial stocks
provided a substantial boost to returns in large part due to the strong earnings
growth recorded by companies in these economic segments. The Stonebridge Growth
Fund rose 16.27% for the calendar year 1999 through October 31, 1999. During the
same period, the Standard and Poor's 500 Index rose 12.03% and the New York
Stock Exchange Composite Index rose 6.36%. For the 1999 fiscal year (November 1,
1998 to October 31, 1999) the Fund rose 25.77% versus 25.66% for the Standard
and Poor's 500 Index and 17.00% for the New York Stock Exchange Composite Index.
The strongest performing companies in the Fund reflected our core process of
buying stocks with above average historical and forecasted revenue and earnings
growth. These companies include Sun Microsystems Inc. (Computer Hardware
& Peripheral), Lexmark International Group Inc. (Computer Hardware
& Peripheral), Intel Corp. (Semiconductors), American Express Co. (Brokerage &
Diverse Financial Services), and Bristol Myers Squibb Co. (Healthcare -
Diverse), which currently are the top five holdings of the Fund. Our large
exposures to the sectors of technology, healthcare, and finance reflect our
conviction that companies in these industries will continue to experience above
average growth.
GROWTH FUND SECTOR ALLOCATION
as of October 31, 1999
[CHART]
2
<PAGE> 3
CHANGE IN VALUE OF A $10,000 INVESTMENT IN STONEBRIDGE GROWTH FUND
VS. THE S&P 500 INDEX AND THE NYSE COMPOSITE INDEX
FROM NOVEMBER 1, 1989 TO OCTOBER 31, 1999
[CHART]
<TABLE>
<CAPTION>
Average Annual Total Return
Periods Ended October 31, 1999
------------------------------
<S> <C> <C>
1 Year 5 Year 10 Year
25.77% 16.63% 11.82%
</TABLE>
<TABLE>
<CAPTION>
Final Portfolio Values
Period Ended October 31, 1999
-----------------------------
<S> <C>
Stonebridge Growth Fund $29,579
S&P 500 $51,436
NYSE Composite $37,907
</TABLE>
Data quoted represents past performance and is not indicative of future results.
Investment return and principal value of an investment in the Fund will
fluctuate and an investor's shares, when redeemed, may be worth more or less
than their original cost.
3
<PAGE> 4
THE STONEBRIDGE AGGRESSIVE GROWTH FUND
Despite the fact that, thus far, 1999 has proved to be a continuation of the
difficult climate for small and medium capitalization stocks, we are happy to
report to our shareholders that the Stonebridge Aggressive Growth Fund is up
20.00% for the year to date through October 31, 1999. The Russell 2000 Index has
posted a modest calendar year return of +2.76% and the Standard and Poor's 600
Index fell 0.30%. On a fiscal year basis the Fund, which finished October at
$11.46, rose 33.41%. For the same period of time, the Russell 2000 Index and the
Standard and Poor's 600 Index rose 14.95% and 12.02%, respectively.
Of the current Fund holdings, the top 5 performers for the year to date were
Qualcomm Inc. (Communication Equipment), Triquint Semiconductor Inc.
(Semiconductors), Imclone Systems Inc. (Biotechnology), Alkermes Inc. (Medical
Products & Supplies), and Gilead Sciences Inc. (Biotechnology). As we mentioned,
the concentration by investors into large capitalization stocks depressed the
stock prices of many small and mid-capitalization companies to the point that
they became buy out candidates for larger companies. The Fund had investments in
several firms that were acquired in 1999. These included U.S. Filter Corp.
(Waste Management), Platinum Technology International Inc. (Computer Software &
Services), Orcad Inc. (Computer Software & Services), Sequent Computer Systems
Inc. (Computer Hardware & Peripheral), General Nutrition Companies Inc. (Retail
- - Specialty), and Visio Corp. (Computer Software & Services).
AGGRESSIVE GROWTH FUND SECTOR ALLOCATION
as of October 31, 1999
[CHART]
4
<PAGE> 5
CHANGE IN VALUE OF A $10,000 INVESTMENT IN STONEBRIDGE AGGRESSIVE GROWTH FUND
VS. THE RUSSELL 2000 INDEX
FROM NOVEMBER 1, 1989 TO OCTOBER 31, 1999
[CHART]
<TABLE>
<CAPTION>
Average Annual Total Return
Periods Ended October 31, 1999
------------------------------
<S> <C> <C>
1 Year 5 Year 10 Year
33.41% 14.62% 11.43%
</TABLE>
<TABLE>
<CAPTION>
Final Portfolio Values
Period Ended October 31, 1999
- -----------------------------
<S> <C>
Stonebridge Aggressive Growth Fund $28,963
Russell 2000 Index $27,081
</TABLE>
Data quoted represents past performance and is not indicative of future results.
Investment return and principal value of an investment in the Fund will
fluctuate and an investor's shares, when redeemed, may be worth more or less
than their original cost.
5
<PAGE> 6
SUMMARY
Thus far, 1999 has proven to be a very rewarding year for the shareholders of
both Funds. An environment of stable, positive economic growth in the absence of
meaningful price inflation has lead to substantially above average stock market
returns for growth-oriented companies. Looking forward, we will continue to
purchase high quality, growth oriented companies at attractive valuations for
the benefit of our shareholders.
Thank you for your investment in the Stonebridge Funds. Should you have
questions or concerns, please call a Shareholder Services Representative at
1-800-639-3935.
Sincerely,
/s/ CHARLES E. WOODHOUSE
Charles E. Woodhouse
Director of Research
Stonebridge Capital Management, Inc.
6
<PAGE> 7
DEFINITION OF INDICES
The STANDARD & POOR'S 500 INDEX (S&P 500) is an unmanaged index containing
common stocks of 500 industrial, transportation, utility and financial
companies, regarded as generally representative of the U.S. stock market. The
index return reflects the reinvestment of income dividends and capital gain
distributions, if any, but does not reflect fees, brokerage commissions, or
other expenses of investing.
The STANDARD & POOR'S 600 INDEX (S&P 600) is an unmanaged small-cap index
consisting of 600 domestic stocks chosen for market size, liquidity and industry
group representation. It is a market weighted index, with each stock affecting
the index in proportion to market value. The index return reflects the
reinvestment of income dividends and capital gain distributions, if any, but
does not reflect fees, brokerage commissions, or other expenses of investing.
The NEW YORK STOCK EXCHANGE COMPOSITE INDEX (NYSE) is an unmanaged market
weighted index comprising all equity issues listed in the New York Stock
Exchange. This is a total return index which reflects the reinvestment of income
dividends and capital gain distributions, if any, but does not reflect fees,
brokerage commissions, or other expenses of investing.
The RUSSELL 2000 INDEX (Russell 2000), an unmanaged index, measures performance
of the 2,000 smallest companies in the Russell 3000 Index which represents
approximately 7% of the US. equity market capitalization. This is a total return
index which reflects the reinvestment of income dividends and capital gain
distributions, if any, but does not reflect fees, brokerage commissions, or
other expenses of investing.
7
<PAGE> 8
INDEPENDENT AUDITORS' REPORT
BOARD OF TRUSTEES AND SHAREHOLDERS
STONEBRIDGE FUNDS TRUST
DENVER, COLORADO
We have audited the accompanying statement of assets and liabilities of
Stonebridge Funds Trust (comprising respectively, the Stonebridge Growth Fund
and the Stonebridge Aggressive Growth Fund, collectively, the "Trust"),
including the statement of investments, as of October 31, 1999, the related
statement of operations for the period then ended, the statements of changes in
net assets for the periods ended October 31, 1999 and 1998, and the selected per
share data and ratios set forth under the caption "Financial Highlights" for
each of the five periods in the period ended October 31, 1999. These financial
statements and per share data and ratios are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and per share data and ratios based on our audit.
We conducted our audit 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 per share data
and ratios 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 as of
October 31, 1999, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and selected per share data
and ratios referred to in the first sentence above present fairly, in all
material respects, the financial position of the Trust at October 31, 1999, the
results of its operations for the period then ended, the changes in its net
assets for the periods ended October 31, 1999 and 1998 and the selected per
share data and ratios for each of the five periods in the periods then ended, in
conformity with generally accepted accounting principles.
HEIN + ASSOCIATES LLP
Denver, Colorado
December 15, 1999
8
<PAGE> 9
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
STONEBRIDGE GROWTH FUND
STATEMENT OF INVESTMENTS
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
----------- ------------
<S> <C> <C>
COMMON STOCKS (98.8%)
BASIC MATERIALS (2.3%)
CHEMICALS (2.3%)
Du Pont E I De Nemours Co..................................... 15,000 $ 966,563
------------
TOTAL BASIC MATERIALS......................................... 966,563
------------
CAPITAL GOODS (6.9%)
ELECTRICAL EQUIPMENT (4.3%)
Emerson Electric Co........................................... 20,000 1,201,250
Honeywell Inc................................................. 6,000 632,625
------------
1,833,875
------------
MANUFACTURING (2.6%)
Illinois Tool Works Inc....................................... 15,000 1,098,750
------------
TOTAL CAPITAL GOODS........................................... 2,932,625
------------
COMMUNICATION SERVICES (7.4%)
TELECOM - LONG DISTANCE (2.0%)
MCI WorldCom Inc*............................................. 10,000 858,125
------------
TELEPHONE (5.4%)
Bell Atlantic Corp............................................ 20,000 1,298,750
SBC Communications Inc........................................ 20,000 1,018,750
------------
2,317,500
------------
TOTAL COMMUNICATION SERVICES.................................. 3,175,625
------------
CONSUMER CYCLICALS (9.0%)
LEISURE & ENTERTAINMENT (1.6%)
Carnival Corp Class A......................................... 15,000 667,500
------------
PUBLISHING (2.7%)
Gannett Inc................................................... 15,000 1,156,875
------------
RETAIL - APPAREL (4.7%)
GAP Inc....................................................... 25,000 928,125
Intimate Brands Inc Class A................................... 26,250 1,076,250
------------
2,004,375
------------
TOTAL CONSUMER CYCLICALS...................................... 3,828,750
------------
CONSUMER STAPLES (8.1%)
BEVERAGES (2.0%)
Pepsico Inc................................................... 25,000 867,187
------------
</TABLE>
9
<PAGE> 10
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
STONEBRIDGE GROWTH FUND
STATEMENT OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
----------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
CONSUMER STAPLES (CONTINUED)
BROADCAST MEDIA & ENTERTAINMENT (3.3%)
Time Warner Inc......................................... 20,000 $ 1,393,750
-----------
HOUSEHOLD PRODUCTS & HOUSEWARES (2.8%)
H J Heinz Co............................................ 25,000 1,193,750
-----------
TOTAL CONSUMER STAPLES.................................. 3,454,687
-----------
ENERGY (2.3%)
OIL - INTERNATIONAL (2.3%)
Mobil Corp.............................................. 10,000 965,000
-----------
TOTAL ENERGY............................................ 965,000
-----------
FINANCIAL (17.8%)
BANKS - MAJOR REGIONAL (4.9%)
Chase Manhattan Corp.................................... 10,000 873,750
Wells Fargo & Co........................................ 25,000 1,196,875
-----------
2,070,625
-----------
BROKERAGE & DIVERSE FINANCIAL SERVICES (9.5%)
American Express Co..................................... 10,000 1,540,000
Fannie Mae.............................................. 20,000 1,415,000
Morgan Stanley Dean Witter & Co......................... 10,000 1,103,125
-----------
4,058,125
-----------
INSURANCE - MULTILINE & BROKERAGE (3.4%)
American International Group Inc........................ 14,062 1,447,507
-----------
TOTAL FINANCIAL......................................... 7,576,257
-----------
FOREIGN STOCKS (5.5%)
Nestle S A Sponsored ADR(1)............................. 12,000 1,157,678
Roche Holdings Ltd Sponsored ADR........................ 10,000 1,200,992
-----------
TOTAL FOREIGN STOCKS 2,358,670
-----------
HEALTHCARE (13.0%)
HEALTHCARE - DIVERSE (8.4%)
Abbott Labs............................................. 25,000 1,009,375
Bristol Myers Squibb Co................................. 20,000 1,536,250
Johnson & Johnson Inc................................... 10,000 1,047,500
-----------
3,593,125
-----------
</TABLE>
10
<PAGE> 11
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
STONEBRIDGE GROWTH FUND
STATEMENT OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
----------- ------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
HEALTHCARE (CONTINUED)
MAJOR DRUGS (4.6%)
Merck & Co Inc.......................................... 15,000 $ 1,193,438
Schering Plough Corp.................................... 15,000 742,500
------------
1,935,938
------------
TOTAL HEALTHCARE........................................ 5,529,063
------------
TECHNOLOGY (24.0%)
COMMUNICATION - EQUIPMENT (2.1%)
Motorola Inc............................................ 9,000 876,937
------------
COMPUTER HARDWARE & PERIPHERAL (8.6%)
Lexmark International Group Inc Class A*................ 20,000 1,561,250
Sun Microsystems Inc*................................... 20,000 2,116,250
------------
3,677,500
------------
COMPUTER SOFTWARE & SERVICES (7.3%)
BMC Software Inc*....................................... 20,000 1,283,750
Computer Associates International Inc................... 15,000 847,500
International Business Machines Corp.................... 10,000 983,750
------------
3,115,000
------------
ELECTRONICS - INSTRUMENTS & DISTRIBUTION (2.4%)
W.W. Grainger Inc....................................... 24,000 1,017,000
------------
SEMICONDUCTORS (3.6%)
Intel Corp.............................................. 20,000 1,548,750
------------
TOTAL TECHNOLOGY........................................ 10,235,187
------------
TRANSPORTATION (2.5%)
AIR FREIGHT (2.5%)
FDX Corp*............................................... 25,000 1,076,563
------------
TOTAL TRANSPORTATION.................................... 1,076,563
------------
TOTAL COMMON STOCKS
(Cost $24,967,339)...................................... 42,098,990
------------
WARRANTS (0.0%)
Coram Healthcare Corp................................... 495 0
------------
(COST $0)
</TABLE>
11
<PAGE> 12
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
STONEBRIDGE GROWTH FUND
STATEMENT OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
----------- ------------
<S> <C> <C>
MUTUAL FUNDS (2.0%)
Fifth Third Treasury Obligation Fund................ 840,817 $ 840,817
------------
TOTAL MUTUAL FUNDS........................................... 840,817
------------
(COST $840,817)
TOTAL INVESTMENTS (100.8%)
(Cost $25,808,156).................................. $ 42,939,807
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.8%)............... (329,566)
------------
NET ASSETS (100%)............................................ $ 42,610,241
============
</TABLE>
* Securities on which no cash dividends were paid during the preceding twelve
(12) months.
(1) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
The accompanying notes to financial statements are an integral part of the
financial statements.
12
<PAGE> 13
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
STONEBRIDGE AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------------
<S> <C> <C>
COMMON STOCKS (87.2%)
BASIC MATERIALS (3.8%)
AGRICULTURAL PRODUCTS (1.7%)
Corn Products International Inc............................... 3,000 $ 97,688
-------------
PAPER & FOREST PRODUCTS (2.1%)
Caraustar Industries Inc...................................... 5,000 120,625
-------------
TOTAL BASIC MATERIALS......................................... 218,313
-------------
CAPITAL GOODS (4.4%)
AEROSPACE & DEFENSE (2.5%)
Precision Castparts Corp...................................... 5,000 147,500
-------------
OFFICE EQUIPMENT & SUPPLIES (1.9%)
Miller Herman Inc............................................. 5,000 108,438
-------------
TOTAL CAPITAL GOODS........................................... 255,938
-------------
COMMUNICATION SERVICES (3.5%)
TELECOM - CELLULAR (2.6%)
Metro One Telecommunications*................................. 10,000 155,000
-------------
TELECOM - LONG DISTANCE (0.9%)
Global Crossing Ltd*.......................................... 1,500 51,937
-------------
TOTAL COMMUNICATION SERVICES.................................. 206,937
-------------
CONSUMER CYCLICALS (5.7%)
BUILDING MATERIALS AND HOME BUILDING (2.1%)
Kaufman & Broad Home Corp..................................... 6,000 120,375
-------------
RETAIL - SPECIALTY (2.2%)
Casey's General Stores Inc.................................... 10,000 128,750
-------------
TEXTILES & SHOES - (1.4%)
Warnaco Group Inc Class A..................................... 6,000 85,500
-------------
TOTAL CONSUMER CYCLICALS...................................... 334,625
-------------
CONSUMER STAPLES (4.2%)
FOODS (2.5%)
Suiza Foods Corp*............................................. 4,000 144,250
-------------
</TABLE>
13
<PAGE> 14
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
STONEBRIDGE AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
CONSUMER STAPLES (CONTINUED)
RETAIL - FOOD & DRUG (1.7%)
Whole Foods Market Inc*....................................... 3,000 $ 102,000
------------
TOTAL CONSUMER STAPLES........................................ 246,250
------------
ENERGY (2.1%)
OIL & GAS - DRILL & EQUIPMENT (1.3%)
Rowan Companies Inc*.......................................... 5,000 77,813
------------
OIL & GAS - EXPLORATION & PRODUCTION (0.8%)
Santa Fe Snyder Corp*......................................... 5,000 43,125
------------
TOTAL ENERGY.................................................. 120,938
------------
FINANCIAL (10.5%)
BANKS - MAJOR REGIONAL (5.4%)
Bancwest Corp................................................. 4,000 167,250
Popular Inc................................................... 5,000 149,687
------------
316,937
------------
BROKERAGE & DIVERSE FINANCIAL SERVICES (2.5%)
Lehman Brothers Holdings Inc.................................. 2,000 147,375
------------
INSURANCE - PROPERTY (2.6%)
MGIC Investment Corp.......................................... 2,500 149,375
------------
TOTAL FINANCIAL............................................... 613,687
------------
HEALTHCARE (24.6%)
BIOTECHNOLOGY (12.6%)
Chiron Corp*................................................. 10,000 285,625
Gilead Sciences Inc*......................................... 1,500 94,781
Imclone Systems Inc*......................................... 5,000 139,375
Onyx Pharmaceuticals Inc*.................................... 10,000 87,500
Sangstat Medical Corp*....................................... 6,000 129,750
------------
737,031
------------
HEALTHCARE - DIVERSE (2.0%)
Covance Inc*................................................. 6,000 58,125
Quintiles Transnational Corp*................................ 3,000 55,687
------------
113,812
------------
</TABLE>
14
<PAGE> 15
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
STONEBRIDGE AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
HEALTHCARE (CONTINUED)
MAJOR DRUGS (7.0%)
Dura Pharmaceuticals Inc*..................................... 15,000 $ 191,719
ISIS Pharmaceuticals*......................................... 5,000 57,812
Watson Pharmaceuticals Inc*................................... 5,000 158,750
------------
408,281
------------
MEDICAL PRODUCTS & SUPPLIES (3.0%)
Alkermes Inc*................................................. 5,000 176,563
------------
TOTAL HEALTHCARE.............................................. 1,435,687
------------
TECHNOLOGY (28.4%)
COMMUNICATION EQUIPMENT (6.3%)
ADC Telecommunications Inc*................................... 3,000 143,062
Qualcomm Inc*................................................. 1,000 222,750
------------
365,812
------------
COMPUTER SOFTWARE & SERVICES (10.0%)
Earthlink Network Inc*........................................ 3,000 126,188
Parametric Technology Corp*................................... 11,500 219,219
Shared Medical Systems Corp................................... 3,000 113,250
Synopsys Inc*................................................. 2,000 124,625
------------
583,282
------------
ELECTRONICS - INSTRUMENTS & DISTRIBUTION (1.1%)
Rambus Inc*................................................... 1,000 67,625
------------
SEMICONDUCTORS (8.9%)
Intel Corp.................................................... 1,000 77,437
National Semiconductor*....................................... 4,000 119,750
Triquint Semiconductor Inc*................................... 4,000 320,000
------------
517,187
------------
SEMICONDUCTOR EQUIPMENT (2.1%)
Photronics Inc*............................................... 6,000 125,625
------------
TOTAL TECHNOLOGY.............................................. 1,659,531
------------
TOTAL COMMON STOCKS
(Cost $3,923,683)............................................. 5,091,906
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (9.4%)
Federal Mortgage Corporation Discount Note 4.61%, 11/29/99.... 375,000 373,614
Federal National Mortgage Association 4.63%,11/15/99.......... 175,000 174,663
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $548,277).............................................. 548,277
------------
</TABLE>
15
<PAGE> 16
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
STONEBRIDGE AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
--------- --------------
<S> <C> <C>
MUTUAL FUNDS (3.7%)
Fifth Third Treasury Obligation Fund.......................... 217,099 $ 217,099
-----------
TOTAL MUTUAL FUNDS................................................
(Cost $217,099)
TOTAL INVESTMENTS (100.3%)
(Cost $4,689,059)............................................. $ 5,857,282
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.3%)..................... (20,579)
-----------
NET ASSETS (100%)................................................. $ 5,836,703
===========
</TABLE>
* Securities on which no cash dividends were paid during the preceding twelve
(12) months.
The accompanying notes to financial statements are an integral part of the
financial statements.
16
<PAGE> 17
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
<TABLE>
<CAPTION>
GROWTH AGGRESIVE GROWTH
FUND FUND
------------ ----------------
<S> <C> <C>
ASSETS:
Investments, at value (Cost - see below) .............. $ 42,939,807 $ 5,857,282
Receivable for investments sold ....................... 563,231 0
Dividends and interest receivable ..................... 32,044 984
Receivable for fund shares subscribed ................. 1,300 0
Deferred expense subsidy** (Note 4) ................... 176,988 81,167
Prepaid bond expenses ................................. 13,162 2,736
Other assets .......................................... 11,371 501
------------ ------------
TOTAL ASSETS ................................ $ 43,737,903 $ 5,942,670
------------ ------------
LIABILITIES:
Payable for investments purchased ..................... $ 868,125 $ 0
Management fee** ...................................... 198,132 79,365
Administration fee** .................................. 6,329 6,541
Transfer Agent fee .................................... 22,368 3,630
Audit fee ............................................. 9,623 6,977
Legal fee ............................................. 3,025 517
Custody fee ........................................... 555 411
Fund Accounting fee ................................... 5,464 3,325
Trustee fee** ......................................... 275 0
Printing fee .......................................... 12,634 5,061
Other payables ........................................ 1,132 140
------------ ------------
TOTAL LIABILITIES ........................... $ 1,127,662 $ 105,967
------------ ------------
NET ASSETS ............................................ $ 42,610,241 $ 5,836,703
============ ============
COMPOSITION OF NET ASSETS:
Capital stock ($1.00 par value) ....................... $ 2,366,339 $ 509,100
Paid in capital ....................................... 18,644,374 3,723,965
Accumulated net realized gain on investments .......... 4,467,877 435,415
Net unrealized appreciation in value of investments ... 17,131,651 1,168,223
------------ ------------
NET ASSETS ............................................ $ 42,610,241 $ 5,836,703
============ ============
NET ASSET VALUE PER SHARE:
Net assets ............................................ $ 42,610,241 $ 5,836,703
Shares outstanding .................................... 2,366,339 509,100
Net asset value and redemption price per share ........ $ 18.01 $ 11.46
COST OF INVESTMENTS ........................................ $ 25,808,156 $ 4,689,059
============ ============
</TABLE>
** Related Party
The accompanying notes to financial statements are an integral part of the
financial statements.
17
<PAGE> 18
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1999
<TABLE>
<CAPTION>
AGGRESSIVE
GROWTH GROWTH
FUND FUND
------------ ------------
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Dividends ........................................ $ 421,561 $ 20,980
Interest ......................................... 122,939 28,223
------------ ------------
TOTAL INCOME ........................... $ 544,500 $ 49,203
------------ ------------
EXPENSES:
Management fee (Note 4) .......................... $ 310,743 $ 51,696
Administrative fee (Note 4) ...................... 74,693 75,767
Transfer Agency fee .............................. 120,618 21,506
Fund Accounting fee .............................. 29,086 17,905
Custodian fee .................................... 2,278 2,066
Legal fee ........................................ 35,786 1,476
Printing fee ..................................... 37,429 10,645
Registration fee ................................. 13,474 1,996
Audit fee ........................................ 16,766 9,321
Trustee fee ...................................... 21,664 2,364
Other fees ....................................... 26,689 4,361
Expense subsidy (Note 4) ......................... (69,488) (51,696)
------------ ------------
TOTAL EXPENSES ......................... $ 619,738 $ 147,407
============ ============
NET INVESTMENT LOSS ................................... $ (75,238) $ (98,204)
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments ................. $ 4,543,115 $ 533,619
Unrealized appreciation
Beginning of period ............................ 12,229,647 129,509
End of period .................................. 17,131,651 1,168,223
------------ ------------
Change in net unrealized appreciation ............ 4,902,004 1,038,714
------------ ------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS ....... 9,445,119 1,572,333
------------ ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ....................................... $ 9,369,881 $ 1,474,129
============ ============
</TABLE>
The accompanying notes to financial statements are an integral part of the
financial statements.
18
<PAGE> 19
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
STONEBRIDGE GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31,
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ............................... $ (75,238) $ 9,393
Net realized gain (loss) on investments .................... 4,543,115 1,003,163
Net change in unrealized appreciation/depreciation ......... 4,902,004 (1,065,437)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ....................................... 9,369,881 (52,881)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income ....................... 0 (54,630)
Distributions from net realized gain on investments ........ 0 (7,908,061)
------------ ------------
DECREASE IN NET ASSETS RESULTING FROM
DISTRIBUTIONS TO SHAREHOLDERS ......................... 0 (7,962,691)
------------ ------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net assets derived from
shares of beneficial interest transactions (Note 2) ...... (5,533,340) 4,409,424
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ........................... 3,836,541 (3,606,148)
------------ ------------
NET ASSETS:
Beginning of period ........................................ 38,773,700 42,379,848
------------ ------------
End of period .............................................. $ 42,610,241 $ 38,773,700
============ ============
</TABLE>
The accompanying notes to financial statements are an integral part of the
financial statements.
19
<PAGE> 20
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
STONEBRIDGE AGGRESSIVE GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) ........................... $ (98,204) $ (104,471)
Net realized gain (loss) on investments ................ 533,619 (77,914)
Net change in unrealized appreciation/depreciation ..... 1,038,714 (1,040,401)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ............................... 1,474,129 (1,222,786)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income ................... 0 0
Distributions from net realized gain on investments .... 0 (924,200)
------------ ------------
DECREASE IN NET ASSETS RESULTING FROM
DISTRIBUTIONS TO SHAREHOLDERS ................. 0 (924,200)
------------ ------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net assets derived from
shares of beneficial interest transactions (Note 2) .. (300,976) 1,382,109
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS ........................... 1,173,153 (764,877)
------------ ------------
NET ASSETS:
Beginning of period .................................... 4,663,550 5,428,427
------------ ------------
End of period .......................................... $ 5,836,703 $ 4,663,550
============ ============
</TABLE>
The accompanying notes to financial statements are an integral part of the
financial statements.
20
<PAGE> 21
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
STONEBRIDGE GROWTH FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR EACH SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT THE PERIODS INDICATED:
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
OCTOBER 31, OCTOBER 31, YEARS ENDED NOVEMBER 30,
1999 1998 1997 1996 1995
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period ............. $ 14.32 $ 17.69 $ 16.56 $ 14.36 $ 12.61
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) ................ (0.03) 0.00 0.02 0.10 0.17
Net realized and unrealized gain (loss)
on investments ............................ 3.72 (0.07) 2.90 2.83 2.34
---------- ---------- ---------- ---------- ----------
Total income (loss) from investment
operations ................................ 3.69 (0.07) 2.92 2.93 2.51
---------- ---------- ---------- ---------- ----------
DIVIDENDS AND DISTRIBUTIONS TO
STOCKHOLDERS:
Distributions from net investment
income .................................... 0.00 (0.02) (0.10) (0.17) (0.07)
Distributions from net realized gain
on investments ............................ 0.00 (3.28) (1.69) (0.56) (0.69)
---------- ---------- ---------- ---------- ----------
Total distributions to shareholders ......... 0.00 (3.30) (1.79) (0.73) (0.76)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ................... $ 18.01 $ 14.32 $ 17.69 $ 16.56 $ 14.36
========== ========== ========== ========== ==========
TOTAL RETURN ..................................... 25.77% (0.44)% 19.79% 21.46% 23.50%
========== ========== ========== ========== ==========
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in 000s) ......... $ 42,610 $ 38,774 $ 42,380 $ 39,602 $ 34,775
========== ========== ========== ========== ==========
Ratio of operating expenses to
average net assets ........................ 1.50% 1.50%* 1.50% 1.47% 1.49%
========== ========== ========== ========== ==========
Ratio of operating expenses to average
net assets without fee waivers ............ 1.66% 1.78%* 1.50% 1.47% 1.49%
========== ========== ========== ========== ==========
Ratio of net investment income (loss)
to average net assets ..................... (0.18)% 0.02%* 0.11% 0.67% 1.27%
========== ========== ========== ========== ==========
Ratio of net investment income (loss) to
average net assets without fee waivers .... (0.35)% (0.25)%* 0.11% 0.67% 1.27%
========== ========== ========== ========== ==========
Portfolio turnover rate** ................... 54% 41% 41% 45% 38%
========== ========== ========== ========== ==========
</TABLE>
* Annualized
** A portfolio turnover rate is the percentage computed by taking the lesser
of purchases or sales of portfolio securities (excluding securities with a
maturity date of one year or less at the time of acquisition) for a period
and dividing it by the monthly average of the market value of such
securities during the period. Purchases and sales of investment securities
(excluding short-term securities) for the year ended October 31, 1999 were
$22,339,281 and $20,662,517, respectively.
The accompanying notes to financial statements are an integral part of the
financial statements.
21
<PAGE> 22
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
STONEBRIDGE AGGRESSIVE GROWTH FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR EACH SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT THE PERIODS INDICATED
<TABLE>
<CAPTION>
YEARS ENDED OCTOBER 31,
1999 1998 1997 1996 1995
---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period ........... $ 8.59 $ 13.27 $ 13.19 $ 13.97 $ 10.24
---------- ---------- ---------- ---------- ----------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income (loss) ................ (0.19) (0.37) (0.20) (0.17) (0.26)
Net realized and unrealized gain (loss)
on investments ............................ 3.06 (2.07) 2.83 0.90 4.51
---------- ---------- ---------- ---------- ----------
Total income (loss) from investment
operations ................................ 2.87 (2.44) 2.63 0.73 4.25
---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net realized gain
on investments ........................... 0.00 (2.24) (2.55) (1.51) (0.52)
---------- ---------- ---------- ---------- ----------
Total distributions to shareholders ......... 0.00 (2.24) (2.55) (1.51) (0.52)
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ................. $ 11.46 $ 8.59 $ 13.27 $ 13.19 $ 13.97
========== ========== ========== ========== ==========
TOTAL RETURN ................................... 33.41% (20.23)% 22.89% 5.70% 43.71%
========== ========== ========== ========== ==========
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in 000s) ......... $ 5,837 $ 4,664 $ 5,428 $ 4,539 $ 4,151
========== ========== ========== ========== ==========
Ratio of operating expenses to
average net assets ........................ 2.85% 2.90% 2.90% 2.29% 3.10%
========== ========== ========== ========== ==========
Ratio of operating expenses to average
net assets without fee waivers ........... 3.85% 3.69% 2.90% 2.29% 3.10%
========== ========== ========== ========== ==========
Ratio of net investment income (loss) to
average net assets ........................ (1.90)% (2.01)% (1.62)% (1.26)% (2.10)%
========== ========== ========== ========== ==========
Ratio of net investment income (loss) to
average net assets without fee waivers .... (2.90)% (1.22)% (1.62)% (1.26)% (2.10)%
========== ========== ========== ========== ==========
Portfolio turnover rate** ................... 88% 92% 88% 108% 60%
========== ========== ========== ========== ==========
</TABLE>
** A portfolio turnover rate is the percentage computed by taking the lesser
of purchases or sales of portfolio securities (excluding securities with a
maturity date of one year or less at the time of acquisition) for a period
and dividing it by the monthly average of the market value of such
securities during the period. Purchases and sales of investment securities
(excluding short-term securities) for the year ended October 31, 1999 were
$4,044,268 and $4,353,296, respectively.
The accompanying notes to financial statements are an integral part of the
financial statements.
22
<PAGE> 23
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ORGANIZATION AND NATURE OF OPERATIONS - Stonebridge Funds Trust ("the
Trust") is registered under the Investment Company Act of 1940, as amended,
as a diversified, open-end management investment company organized as a
Delaware business trust by a Declaration of Trust dated July 31, 1998. The
Trust, which became effective November 1, 1998, currently has two active
investment portfolios, the Stonebridge Growth Fund (previously the
Stonebridge Growth Fund, Inc.) and the Stonebridge Aggressive Growth Fund
(previously the Stonebridge Aggressive Growth Fund, Inc.), each referred to
as a "Series" of the Trust.
USE OF ESTIMATES - The preparation of each Series' financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the amounts
reported in these financial statements and accompanying notes. Actual
results could differ from those estimates.
SECURITY VALUATION - Investment securities listed or traded on a registered
securities exchange or quoted on NASDAQ are valued at the last sales price
on the date of valuation. Securities traded on the over-the-counter market
for which no sales are reported are valued at the mean between the bid and
asked price. Short-term debt securities having a remaining maturity of 60
days or less consist exclusively of U.S. Treasury and Agency Obligations
and are stated at amortized cost which is approximately equivalent to
value.
FEDERAL INCOME TAXES - As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, neither Series is subject to
income taxes to the extent that it distributes all of its taxable income
for the fiscal year.
DISTRIBUTIONS - Distributions of net investment income, if any, are
distributed annually. Distributions of net realized gains, if any, are
declared at least once each year. Distributions to shareholders are
recorded on the ex-dividend date.
Net investment income/(loss) and net realized gain/(loss) may differ for
financial statement and tax purposes. The character of distributions made
during the year from net investment income or net realized gains may differ
from its ultimate characterization for federal income tax purposes. Also,
due to the timing of dividend distributions, the fiscal year in which
amounts are distributed may differ from the fiscal year in which the income
or realized gain was recorded by the Series.
Each Series adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and
distributions in accordance with income tax regulations. Accordingly,
during the year ended October 31, 1999, $75,238 and $98,204 of net
investment loss of the Stonebridge Growth Fund and Stonebridge Aggressive
Fund, respectively, have been reclassified to accumulated net realized gain
on investments.
ALLOCATION OF EXPENSE - Trust expenses which are not Series
specific are allocated to each Series based upon its relative proportion of
net assets and/or open accounts to the Trust's totals.
23
<PAGE> 24
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):
OTHER - Securities transactions are accounted for on the date the
securities are purchased or sold (trade date). Dividend income is recorded
on the ex-dividend date. Interest income, which includes amortization of
premiums and accretion of discounts, is accrued and recorded daily.
Realized gains and losses from investment transactions and unrealized
appreciation and depreciation of investments are reported on an identified
cost basis, which is the same basis each Series uses for federal income tax
purposes.
2. SHARES OF BENEFICIAL INTEREST:
At October 31, 1999, there were an indefinite number of $1.00 par value
shares of beneficial interest authorized for each Series. Transactions in
shares of beneficial interest for the years ended October 31, 1999 and
October 31, 1998, were as follows:
<TABLE>
<CAPTION>
STONEBRIDGE GROWTH FUND
For the Year Ended For the Period Ended
October 31, 1999 October 31, 1998
---------------------------- ----------------------------
Shares Amount Shares Amount
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Shares Sold .................................. 52,215 $ 839,746 86,431 $ 1,380,501
Shares Issued in Reinvestment of Dividends ... 0 0 532,749 7,837,364
------------ ------------ ------------ ------------
Total ........................................ 52,215 839,746 619,180 9,217,865
Less Shares Redeemed ......................... (394,333) (6,373,086) (306,521) (4,808,441)
------------ ------------ ------------ ------------
Net Increase (Decrease) ...................... (342,118) $ (5,533,340) 312,659 $ 4,409,424
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
STONEBRIDGE AGGRESSIVE GROWTH FUND
For the Year Ended For the Year Ended
October 31, 1999 October 31, 1998
---------------------------- ----------------------------
Shares Amount Shares Amount
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Shares Sold .................................. 51,456 $ 538,942 101,506 $ 1,102,475
Shares Issued in Reinvestment of Dividends ... 0 0 89,906 863,993
------------ ------------ ------------ ------------
Total ........................................ 51,456 538,942 191,412 1,966,468
Less Shares Redeemed ......................... (85,413) (839,918) (57,432) (584,359)
------------ ------------ ------------ ------------
Net Increase (Decrease) ...................... (33,957) $ (300,976) 133,980 $ 1,382,109
============ ============ ============ ============
</TABLE>
3. UNREALIZED APPRECIATION AND DEPRECIATION OF INVESTMENTS
<TABLE>
<CAPTION>
GROWTH FUND AGGRESSIVE GROWTH FUND
--------------- ----------------------
<S> <C> <C>
As of October 31, 1999
Gross appreciation (excess of value over cost) $ 17,189,820 $ 1,383,197
Gross depreciation (excess of cost over value) (58,169) (214,974)
--------------- ------------
Net unrealized appreciation $ 17,131,651 $ 1,168,223
=============== ============
</TABLE>
These amounts represent the net increase in the value of investments (all
of which are represented by long transactions) held at October 31, 1999.
24
<PAGE> 25
STONEBRIDGE FUNDS TRUST ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. TRANSACTIONS WITH AFFILIATES:
The Trust has entered into an advisory agreement with Stonebridge Capital
Management, Inc. (the Adviser) for both Series. The advisory agreement has
been approved by the Trust's Board of Trustees and shareholders. Pursuant
to its advisory agreement with the Trust, the Adviser is entitled to an
investment advisory fee, computed daily and payable monthly, at an annual
rate of .75% and 1.00% of the average daily net assets of the Stonebridge
Growth and Stonebridge Aggressive Growth Funds, respectively.
The Adviser has agreed to defer its annual management fee to the extent
necessary to limit the overall annual expenses of the Growth Fund and
Aggressive Growth Fund to 1.50% and 2.90%, respectively; however, in
circumstances where the Adviser is required to waive 100% of its annual
management fee, it will not be responsible for reimbursing the Funds for
additional expenses. Each Series will remain liable to the Adviser for all
such expenses subsidized in any fiscal year, for a period of up to three
years from the date the expenses were incurred, so long as reimbursement
will not cause the annual expense ratio to exceed the expense limit in
effect for that year; such a reimbursement would be recognized as an
expense previously deferred in the Statement of Operations in the period it
was incurred. As of October 31, 1999, the Stonebridge Growth Fund and the
Stonebridge Aggressive Growth Fund had cumulative carryover of waived
expenses of $176,988 and $81,167, respectively.
On November 2, 1998, the Trust entered into an administration agreement
with ALPS Mutual Funds Services, Inc. ("ALPS"). The administration
agreement provides that ALPS will receive a monthly administration fee
equal to the annual rate of .10% of the average daily net assets in each
Series up to $250,000,000 and .075% of the average daily net assets of each
Series in excess of $250,000,000. At all times ALPS' fee will be no less
than $6,250 per month per Series.
Certain officers and trustees of the Trust are also officers and/or
trustees of the Adviser and/or ALPS.
25
<PAGE> 26
[STONEBRIDGE FUNDS LOGO]
STONEBRIDGE FUNDS
OFFICERS AND TRUSTEES
Richard C. Barrett, CFA, Chairman, Board of Trustees
and President
Debra L. Newman, Vice President, Treasurer and Trustee
Charles E. Woodhouse, Vice President and Trustee
Craig B. Burger, CFA, Vice President and Trustee
John G. Ayer, Ph.D, CFA, Trustee
Selvyn B. Bleifer, M.D., Trustee
Marvin Freedman, Trustee
Charles F. Haas, Trustee
William H. Taylor II, Trustee
Thomas A. Carter, Assistant Treasurer
Lisa A. Bruckert, Secretary
INVESTMENT ADVISER
STONEBRIDGE CAPITAL MANAGEMENT,
INCORPORATED
1801 Century Park East, Suite 1800
Los Angeles, California 90067
ADMINISTRATOR AND DISTRIBUTOR
ALPS MUTUAL FUNDS SERVICES, INC.
370 Seventeenth Street, Suite 3100
Denver, Colorado 80202
TRANSFER AGENT
NATIONAL FINANCIAL DATA SERVICES
330 West 9th Street
Kansas City, Missouri 64105
CUSTODIAN
FIFTH THIRD BANK
Fifth Third Center
38 Fountain Square Plaza
Cincinnati, Ohio 45263
LEGAL COUNSEL
PAUL, HASTINGS, JANOFSKY & WALKER LLP
555 S. Flower Street
Los Angeles, California 90071
INDEPENDENT AUDITORS
HEIN + ASSOCIATES LLP
717 Seventeenth Street, Suite 1600
Denver, Colorado 80202
This report and its financial statements are submitted for the general
information of the shareholders of the Funds. The report is not authorized for
distribution to prospective investors in the Funds unless preceded or
accompanied by a prospectus.
[STONEBRIDGE FUNDS LOGO]
ANNUAL REPORT
FOR THE YEAR ENDED
OCTOBER 31, 1999
