<PAGE> 1
LETTER TO SHAREHOLDERS
OVERVIEW
As of last October, we had witnessed a strong recovery in U.S. stock markets
led by finance and technology stocks following a major correction in the third
quarter of 1999. Throughout the balance of 1999, the markets continued to
behave as though robust increases in worker productivity would continue to
allow the supply of goods and services to increase at a rate fast enough to
keep inflation under control.
As economic data continued to show strong economic growth in an environment of
very low inflation, markets became euphoric. The Federal Reserve Board
continued to raise interest rates moderately as a preemptive strike against
inflation. The major stock market averages all hit record highs by early March
of 2000. This rally, led by technology stocks, which were dubbed the "new
economy" stocks of the new millennium, culminated in a meteoric rise in the
valuation of biotechnology stocks. Even Dow Jones made an attempt to better
represent technology by adding Microsoft and Intel to the 30 industrials
average. Many professional investors were amazed by the lofty valuations that
the markets placed on some technology issues.
When this euphoria ceased, it was swift and relentless, particularly in the
NASDAQ stocks that had seen such overt speculation. The precise catalyst is
hard to pinpoint. Microsoft lost its anti-trust case with the federal
government. The resulting drop in its stock price had a major impact on many
stock market indices including the Dow Jones Industrial Average, the Standard
and Poors 500 Index, and the NASDAQ Composite. The size of the impact was
magnified by the fact that Microsoft was the largest company ranked by market
capitalization and therefore carried a large index weighting. At the same time,
inflationary indicators began to gradually rise. While they were still at very
low levels, concerns developed as to whether the Federal Reserve Board had
raised rates aggressively enough to contain inflation. Either way the
correction hit the "new economy" stocks most severely. Over the months of March
and April, it was not uncommon for many technology stocks to lose 50% or more
of their value. Despite the tough environment for these stocks, many "old
economy" stocks that had not performed well in 1999 generated substantial
returns over these two months. Drug and oil shares staged dramatic rallies.
In summation, the market conditions of the past six months were extremely
volatile. This environment provided tremendous risk, but also created
substantial opportunity.
1
<PAGE> 2
THE STONEBRIDGE GROWTH FUND
As valuations drove large capitalization technology stocks to levels that we
felt were beyond those that could be justified, we moved to take profits.
Positions in Sun Microsystems, Motorola, and Lexmark International Group were
reduced purely because of excessive valuations. During this period of time we
also eliminated a long-standing position in Time-Warner given our view that the
merger between Time-Warner and America Online, while surrounded with much hype
and fervor, is a much better deal for the shareholders of America Online than
Time-Warner. As a window on the future of "convergence", the blurring of lines
between telephone, the computer and the television screen, the Time-Warner and
America Online merger will be an interesting bellwether to watch.
The healthcare sector, which suffered through most of 1999, provided some
shelter from the technology sell off as investors apparently sought refuge in
an area with more predictable revenues and earnings. The drug stocks in
particular provided some of the best performance in the S&P 500 Index during the
first quarter of 2000, perhaps because of compelling valuations and their
defensive characteristics.
Looking forward we will continue to balance the desire for quality companies
that are able to grow their sales and earnings in a superior manner with the
need to pay attention to the valuations which we pay for those stocks. The
incredible volatility that the markets have demonstrated over the last year
reinforces the continued need to exercise patience and discipline in
implementing stock positions in both Funds.
GROWTH FUND SECTOR ALLOCATION
AS A PERCENT OF NET ASSETS
as of April 30, 2000
[GRAPH]
2
<PAGE> 3
CHANGE IN VALUE OF A $10,000 INVESTMENT IN STONEBRIDGE GROWTH FUND
VS. THE S&P 500 INDEX WITH INCOME AND THE NYSE COMPOSITE INDEX WITH INCOME
FROM MAY 1, 1990 TO APRIL 30, 2000
[GRAPH]
AVERAGE ANNUAL TOTAL RETURN
PERIODS ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
1 Year 5 Year 10 Year
------ ------ -------
<S> <C> <C>
6.85% 15.11% 11.70%
</TABLE>
FINAL PORTFOLIO VALUES
APRIL 30, 2000
<TABLE>
<S> <C>
Stonebridge Growth Fund $30,247
S&P 500 $55,898
NYSE Composite $41,425
</TABLE>
Average annual total returns reflect reinvestment of all dividends, capital
gains distributions, all fee waivers in effect and any expense reimbursements.
Without the fee waivers and expense reimbursements, the total return figures
would be lower. Past performance is not indicative of future results.
Investment return and principal value may fluctuate and shares, when redeemed,
may be worth more or less than their original cost.
3
<PAGE> 4
THE STONEBRIDGE AGGRESSIVE GROWTH FUND
Our long-term investors may recall that our investment process attempts to
identify companies with superior growth characteristics, selling at attractive
valuations. The volatile market environment of the past six months has proven
to be very rewarding for our investment style. Our emphasis on growth allowed
us to fully participate in the explosive appreciation of technology and
biotechnology stocks in the first four months of the fiscal year. Our value
discipline then forced us to aggressively take profits as the prices of some of
our stocks exceeded our estimation of their intrinsic value based on the
fundamentals of their businesses. In addition, our diversification across
sectors ensured that we had exposure to some "old economy" stocks when these
stocks performed well in March and April of 2000.
The Stonebridge Aggressive Growth Fund rose 29.83% for the first six months of
the fiscal year ended April 30, 2000. For the same time period, the Russell
2000 Index rose 18.86% and the Standard and Poors 600 index rose 17.26%.
Decomposing our return, during the first three months of the fiscal year, our
performance was driven by technology names. Our biotechnology stocks led the
way. We posted three month returns of 153% in Tularik, 83% in Alkermes, and 66%
in Onyx Pharmaceuticals to name a few. We realized large profits from sales in
these and other names. Thus, we entered the market downturn in March and April
with higher than normal cash levels. Our top performers for these months were
primarily from our exposure to non-technology areas. Precision Castparts Corp.
rose 62%, Timberland Co. rose 62%, Casey's General Stores rose 40%, and ADC
Telecommunications broke with the downtrend in technology and telecom and rose
35% over this two-month period.
By April, due to the volatile price swings in many of these stocks, we were
actually able to reinvest in many of the same companies that we had taken
profits in only months earlier. We also took the downturn in technology issues
as an opportunity to add some new names in that sector. Additions included
Microchip Technology, Cypress Semiconductors Corp. and Cymer.
AGGRESSIVE GROWTH FUND SECTOR ALLOCATION
AS A PERCENT OF NET ASSETS
as of April 30, 2000
[GRAPH]
4
<PAGE> 5
CHANGE IN VALUE OF A $10,000 INVESTMENT IN STONEBRIDGE AGGRESSIVE GROWTH FUND
VS. THE RUSSELL 2000 INDEX WITH INCOME
FROM MAY 1, 1990 TO APRIL 30, 2000
[GRAPH]
AVERAGE ANNUAL TOTAL RETURN
PERIODS ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
1 Year 5 Year 10 Year
----- ----- -------
<S> <C> <C>
50.90% 16.88% 14.42%
</TABLE>
FINAL PORTFOLIO VALUES
APRIL 30, 2000
<TABLE>
<S> <C>
Stonebridge Aggressive Growth Fund $38,473
Russell 2000 Index $37,437
</TABLE>
Average annual total returns reflect reinvestment of all dividends, capital
gains distributions, all fee waivers in effect and any expense reimbursements.
Without the fee waivers and expense reimbursements, the total return figures
would be lower. Past performance is not indicative of future results.
Investment return and principal value may fluctuate and shares, when redeemed,
may be worth more or less than their original cost.
5
<PAGE> 6
SUMMARY
For the balance of 2000, we expect markets to continue to be quite volatile. If
the Federal Reserve can successfully control inflation and maintain an
environment of stable, positive economic growth, 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 /s/ RICHARD C. BARRETT
Charles E. Woodhouse Richard C.Barrett
Director of Research Chairman, Board of Trustees and
President
Stonebridge Capital Management, Inc. Stonebridge Funds Trust
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
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
STONEBRIDGE GROWTH FUND
STATEMENT OF INVESTMENTS (UNAUDITED)
APRIL 30, 2000
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
<S> <C> <C>
COMMON STOCKS (91.9%)
CAPITAL GOODS (6.5%)
ELECTRICAL EQUIPMENT (2.6%)
Emerson Electric Co .................................................... 20,000 $ 1,097,500
-----------
MANUFACTURING (3.9%)
Honeywell International Inc ............................................ 11,250 630,000
Illinois Tool Works Inc ................................................ 15,000 960,937
-----------
1,590,937
-----------
TOTAL CAPITAL GOODS .................................................... 2,688,437
-----------
COMMUNICATION SERVICES (2.8%)
TELECOM - LONG DISTANCE (2.8%)
MCI WorldCom Inc* ...................................................... 25,000 1,135,938
-----------
TOTAL COMMUNICATION SERVICES ........................................... 1,135,938
-----------
CONSUMER CYCLICALS (9.2%)
BUILDING MATERIALS & HOME BUILDING (1.2%)
Lowe's Companies Inc ................................................... 10,000 495,000
-----------
LEISURE & ENTERTAINMENT (0.9%)
Carnival Corp Class A .................................................. 15,000 373,125
-----------
PUBLISHING (2.4%)
Gannett Inc ............................................................ 15,000 958,125
-----------
RETAIL - APPAREL (4.7%)
GAP Stores Inc ......................................................... 25,000 918,750
Intimate Brands Inc Class A ............................................ 26,250 1,010,625
-----------
1,929,375
-----------
TOTAL CONSUMER CYCLICALS ............................................... 3,755,625
-----------
CONSUMER STAPLES (7.1%)
BEVERAGES (2.2%)
Pepsico Inc ............................................................ 25,000 917,188
-----------
BROADCAST MEDIA & ENTERTAINMENT (3.5%)
Kimberly Clark Corp .................................................... 15,000 870,938
Proctor & Gamble Co .................................................... 9,000 536,625
-----------
1,407,563
-----------
</TABLE>
8
<PAGE> 9
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
STONEBRIDGE GROWTH FUND
STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
CONSUMER STAPLES (CONTINUED)
RESTAURANTS (1.4%)
McDonalds Corp .............................. 15,000 $ 571,875
-----------
TOTAL CONSUMER STAPLES ...................... 2,896,626
-----------
ENERGY (2.5%)
OIL - INTERNATIONAL (2.5%)
Exxon Mobil Corp ............................ 13,201 1,025,553
-----------
TOTAL ENERGY ................................ 1,025,553
-----------
FINANCIAL (13.8%)
BANKS - MAJOR REGIONAL (4.8%)
Chase Manhattan Corp ........................ 10,000 720,625
Wells Fargo & Co ............................ 30,000 1,231,875
-----------
1,952,500
-----------
BROKERAGE & DIVERSE FINANCIAL SERVICES (6.3%)
Fannie Mae .................................. 16,000 965,000
Freddie Mac ................................. 10,000 459,375
Morgan Stanley Dean Witter & Co ............. 15,000 1,151,250
-----------
2,575,625
-----------
INSURANCE - MULTILINE & BROKERAGE (2.7%)
American International Group Inc ............ 10,000 1,096,875
-----------
TOTAL FINANCIAL ............................. 5,625,000
-----------
FOREIGN STOCKS (6.2%)
Elan PLC ADR* ............................... 11,000 471,625
Roche Holdings Ltd Sponsored ADR ............ 10,000 1,046,801
Royal Dutch Petroleum Co ADR ................ 18,000 1,032,750
-----------
TOTAL FOREIGN STOCKS......................... 2,551,176
-----------
HEALTHCARE (14.7%)
BIOTECHNOLOGY (1.3%)
Chiron Corp* ................................ 12,000 543,000
-----------
HEALTHCARE - DIVERSE (7.6%)
Bristol Myers Squibb Co ..................... 20,000 1,048,750
Johnson & Johnson Inc ....................... 25,000 2,062,500
-----------
3,111,250
-----------
</TABLE>
9
<PAGE> 10
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
STONEBRIDGE GROWTH FUND
STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
------------ -----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
HEALTHCARE (CONTINUED)
MAJOR DRUGS (2.6%)
Pfizer Inc ................................ 25,000 $ 1,053,125
-----------
MEDICAL PRODUCTS & SUPPLIES(3.2%)
Boston Scientific Corp* ................... 50,000 1,325,000
-----------
TOTAL HEALTHCARE .......................... 6,032,375
-----------
TECHNOLOGY (26.8%)
COMMUNICATION - EQUIPMENT (7.1%)
Lucent Technologies Inc ................... 20,000 1,243,750
Motorola Inc .............................. 7,000 833,437
Tellabs Inc* .............................. 15,000 822,187
-----------
2,899,374
-----------
COMPUTER HARDWARE & PERIPHERAL (9.5%)
Dell Computer Corp* ....................... 15,000 751,875
International Business Machines Corp ...... 10,000 1,116,250
Lexmark International Group Inc Class A* .. 10,000 1,180,000
NCR Corp* ................................. 10,000 386,250
Sun Microsystems Inc* ..................... 5,000 459,688
-----------
3,894,063
-----------
COMPUTER SOFTWARE & SERVICES (6.0%)
BMC Software Inc* ......................... 20,000 936,250
Computer Associates International Inc ..... 15,000 837,187
Microsoft Corp* ........................... 10,000 697,500
-----------
2,470,937
-----------
SEMICONDUCTORS (4.2%)
Intel Corp ................................ 10,000 1,268,125
National Semiconductor Corp* .............. 7,500 455,625
-----------
1,723,750
-----------
TOTAL TECHNOLOGY .......................... 10,988,124
-----------
TRANSPORTATION (2.3%)
AIR FREIGHT (2.3%)
FedEx Corp* ............................... 25,000 942,187
-----------
TOTAL TRANSPORTATION ...................... 942,187
-----------
TOTAL COMMON STOCKS
(Cost $29,177,176) ........................ 681,201 37,641,041
-----------
</TABLE>
10
<PAGE> 11
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
STONEBRIDGE GROWTH FUND
STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
----------- ------------
<S> <C> <C>
WARRANTS (0.0%)
Coram Healthcare Corp ........................ 495 $ 0
(Cost $0) ------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (3.9%)
Federal Home Loan Bank, 5.70%, 05/10/2000 .... 600,000 598,974
Federal Home Loan Bank, 5.56%, 05/31/2000 .... 1,000,000 995,162
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS .............. 1,594,136
(Cost $1,594,136) ------------
MUTUAL FUNDS (4.3%)
Fifth Third U.S. Treasury Fund ............... 1,753,078 1,753,078
------------
TOTAL MUTUAL FUNDS .................................... 1,753,078
(Cost $1,753,078) ------------
TOTAL INVESTMENTS (100.1%)
(Cost $32,524,390) ........................... $ 40,988,255
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.1%) ......... (38,456)
------------
NET ASSETS (100%) ..................................... $ 40,949,799
============
</TABLE>
*Securities on which no cash dividends were paid during the preceding six (6)
months.
The accompanying notes to financial statements are an integral part of the
financial statements.
11
<PAGE> 12
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
STONEBRIDGE AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS (UNAUDITED)
APRIL 30, 2000
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
---------- ----------
<S> <C> <C>
COMMON STOCKS (83.2%)
BASIC MATERIALS (3.9%)
AGRICULTURAL PRODUCTS (3.0%)
Corn Products International Inc ............. 10,000 $ 240,000
----------
PAPER & FOREST PRODUCTS (0.9%)
Caraustar Industries Inc .................... 5,000 75,938
----------
TOTAL BASIC MATERIALS ....................... 315,938
----------
CAPITAL GOODS (7.9%)
AEROSPACE & DEFENSE (2.6%)
Precision Castparts Corp .................... 5,000 208,750
----------
MANUFACTURING (2.8%)
ITT Industries Inc .......................... 7,000 220,937
----------
OFFICE EQUIPMENT & SUPPLIES (2.5%)
Miller Herman Inc ........................... 7,500 205,313
----------
TOTAL CAPITAL GOODS ......................... 635,000
----------
COMMUNICATION SERVICES (2.6%)
TELECOM - CELLULAR (1.4%)
Metro One Telecommunications Inc* ........... 10,000 120,000
----------
TELECOM - LONG DISTANCE (1.2%)
Global Crossing Ltd* ........................ 3,000 94,500
----------
TOTAL COMMUNICATION SERVICES ................ 214,500
----------
CONSUMER CYCLICALS (11.9%)
BUILDING MATERIALS & HOME BUILDING (5.2%)
Elcor Corp .................................. 5,000 159,063
Kaufman & Broad Home Corp ................... 6,000 115,500
Scotts Co Class A* .......................... 4,000 144,500
----------
419,063
----------
RETAIL - SPECIALTY (2.2%)
Casey's General Stores Inc .................. 15,000 175,312
----------
</TABLE>
12
<PAGE> 13
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
STONEBRIDGE AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
----------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
CONSUMER CYCLICALS (CONTINUED)
TEXTILES & SHOES - (4.5%)
Timberland Co Class A* ...................... 3,500 $ 242,812
Warnaco Group Inc Class A ................... 12,000 127,500
----------
370,312
----------
TOTAL CONSUMER CYCLICALS .................... 964,687
----------
CONSUMER STAPLES (4.6%)
FOODS (1.9%)
Suiza Foods Corp* ........................... 4,000 155,750
----------
RETAIL - FOOD & DRUG (2.7%)
Whole Foods Market Inc* ..................... 5,000 212,812
----------
TOTAL CONSUMER STAPLES ...................... 368,562
----------
ENERGY (2.3%)
OIL & GAS - EXPLORATION & PRODUCTION (2.3%)
Santa Fe Snyder Corp* ....................... 20,000 183,750
----------
TOTAL ENERGY ................................ 183,750
----------
FINANCIAL (6.8%)
BANKS - MAJOR REGIONAL (4.8%)
Bancwest Corp ............................... 10,000 183,125
Popular Inc ................................. 10,000 201,250
----------
384,375
----------
BROKERAGE & DIVERSE FINANCIAL SERVICES (2.0%)
Lehman Brothers Holdings Inc ................ 2,000 164,125
----------
TOTAL FINANCIAL ............................. 548,500
----------
HEALTHCARE (16.1%)
BIOTECHNOLOGY (8.5%)
Chiron Corp* ................................ 4,000 181,000
Gilead Sciences Inc* ........................ 1,500 81,281
Imclone Systems Inc* ........................ 2,000 182,000
Onyx Pharmaceuticals Inc* ................... 10,000 98,125
Sangstat Medical Corp* ...................... 5,000 143,750
----------
686,156
----------
HEALTHCARE - DIVERSE (1.0%)
Covance Inc* ................................ 9,000 82,688
----------
</TABLE>
13
<PAGE> 14
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
STONEBRIDGE AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
--------- ----------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
HEALTHCARE (CONTINUED)
MAJOR DRUGS (4.9%)
Biovail Corp* ................................. 3,000 $ 143,062
ISIS Pharmaceuticals* ......................... 15,000 166,875
Tularik Inc* .................................. 3,000 84,750
----------
394,687
----------
MEDICAL PRODUCTS & SUPPLIES (1.7%)
Alkermes Inc* ................................. 2,500 133,125
----------
TOTAL HEALTHCARE .............................. 1,296,656
----------
TECHNOLOGY (27.1%)
COMMUNICATION EQUIPMENT (5.1%)
ADC Telecommunications Inc* ................... 5,000 303,750
Qualcomm Inc* ................................. 1,000 108,438
----------
412,188
----------
COMPUTER SOFTWARE & SERVICES (7.1%)
Compuware Corp* ............................... 10,000 125,625
Earthlink Network Inc* ........................ 8,000 151,000
Healtheon Corp* ............................... 10,000 210,625
Synopsys Inc* ................................. 2,000 84,000
----------
571,250
----------
ELECTRONICS - INSTRUMENTS & DISTRIBUTION (2.8%)
Rambus Inc* ................................... 1,000 230,000
----------
SEMICONDUCTORS (8.0%)
Cymer Inc* .................................... 4,000 156,250
Jabil Circuit Inc* ............................ 3,000 122,813
Microchip Technology Inc* ..................... 2,000 124,125
National Semiconductor Corp* .................. 4,000 243,000
----------
646,188
----------
SEMICONDUCTOR EQUIPMENT (4.1%)
Cypress Semiconductors Corp* .................. 2,500 129,844
Photronics Inc* ............................... 6,000 199,875
----------
329,719
----------
TOTAL TECHNOLOGY .............................. 2,189,345
----------
TOTAL COMMON STOCKS
(Cost $5,721,173) ............................. 257,500 6,716,938
----------
</TABLE>
14
<PAGE> 15
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
STONEBRIDGE AGGRESSIVE GROWTH FUND
STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)
APRIL 30, 2000
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT VALUE
----------- -----------
<S> <C> <C>
CONVERTIBLE BONDS (1.5%)
Dura Pharmaceuticals Inc, 3.50%, 7/15/2002 ................. $ 150,000 $ 122,812
-----------
TOTAL CONVERTIBLE BONDS ............................................. 122,812
(Cost $123,843) -----------
U.S. GOVERNMENT AGENCY OBLIGATIONS (9.3%)
Federal Home Loan Mortgage, 5.58%, 5/23/2000 ............... 250,000 249,087
Federal National Mortgage Association, 5.70%, 5/10/2000 .... 500,000 499,145
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS ............................ 748,232
(Cost $748,232) -----------
MUTUAL FUNDS (6.6%)
Fifth Third U.S. Treasury Fund ............................. 532,132 532,132
-----------
TOTAL MUTUAL FUNDS .................................................. 532,132
(Cost $532,132) -----------
TOTAL INVESTMENTS (100.6%)
(Cost $7,125,380) .......................................... $ 8,120,114
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.6%) ....................... (50,098)
-----------
NET ASSETS (100%) ................................................... $ 8,070,016
===========
</TABLE>
ADR - American Depositary Receipt
*Securities on which no cash dividends were paid during the preceding six (6)
months.
The accompanying notes to financial statements are an integral part of the
financial statements.
15
<PAGE> 16
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
APRIL 30, 2000
<TABLE>
<CAPTION>
GROWTH AGGRESSIVE GROWTH
FUND FUND
----------------- -----------------
<S> <C> <C>
ASSETS:
Investments, at value (Cost - see below) ............. $ 40,988,255 $ 8,120,114
Receivable for investments sold ...................... 12,477 1,197
Dividends and interest receivable .................... 28,469 3,736
Receivable for fund shares subscribed ................ 11,904 11,872
Deferred expense subsidy** (Note 4) .................. 188,161 85,192
Other assets ......................................... 21,524 5,101
----------------- -----------------
TOTAL ASSETS ................................... $ 41,250,790 $ 8,227,212
----------------- -----------------
LIABILITIES:
Payable for investments purchased .................... $ 0 $ 42,625
Payable for fund shares redeemed ..................... 28,486 1,197
Accrued advisory fee** ............................... 210,517 87,614
Accrued administration fee** ......................... 5,740 5,886
Accrued transfer agent fee ........................... 35,468 6,170
Other payables and accrued expenses .................. 20,780 13,704
----------------- -----------------
TOTAL LIABILITIES .............................. $ 300,991 $ 157,196
----------------- -----------------
NET ASSETS ........................................... $ 40,949,799 $ 8,070,016
================= =================
COMPOSITION OF NET ASSETS:
Capital stock ($1.00 par value) ...................... $ 2,552,784 $ 583,403
Paid in capital ...................................... 21,465,816 4,658,685
Accumulated net investment loss ...................... (43,394) (62,496)
Accumulated net realized gain on investments ......... 8,510,728 1,895,690
Net unrealized appreciation in value of investments... 8,463,865 994,734
----------------- -----------------
NET ASSETS ........................................... $ 40,949,799 $ 8,070,016
================= =================
NET ASSET VALUE PER SHARE:
Net assets ........................................... $ 40,949,799 $ 8,070,016
Shares outstanding ................................... 2,552,784 583,403
Net asset value and redemption price per share ....... $ 16.04 $ 13.83
COST OF INVESTMENTS ..................................... $ 32,524,390 $ 7,125,380
================= =================
</TABLE>
**Related Party
The accompanying notes to financial statements are an integral part of the
financial statements.
16
<PAGE> 17
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
AGGRESSIVE
GROWTH GROWTH
FUND FUND
---------------- ----------------
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Dividends ............................................................... $ 189,665 $ 13,684
Interest ................................................................ 75,363 27,569
---------------- ----------------
TOTAL INCOME ..................................................... $ 265,028 $ 41,253
---------------- ----------------
EXPENSES:
Management fee (Note 4) ................................................ $ 154,211 $ 35,775
Administrative fee (Note 4) ............................................ 39,562 38,500
Transfer agent fee ..................................................... 54,291 12,273
Fund accounting fee .................................................... 12,622 10,353
Custodian fee .......................................................... 1,879 263
Legal fee .............................................................. 11,017 1,838
Printing fee ........................................................... 9,658 1,690
Registration fee ....................................................... 6,270 0
Audit fee .............................................................. 8,688 3,770
Trustee fee ............................................................ 12,600 1,620
Other fees ............................................................. 8,797 1,692
Expense subsidy (Note 4) ............................................... (11,173) (4,025)
---------------- ----------------
TOTAL EXPENSES ..................................................... $ 308,422 $ 103,749
================ ================
NET INVESTMENT LOSS ....................................................... $ (43,394) $ (62,496)
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain on investments ....................................... $ 8,510,577 $ 1,895,706
Unrealized appreciation/(depreciation) on investments
Beginning of period .................................................. 17,131,651 1,168,223
End of period ........................................................ 8,463,865 994,734
---------------- ----------------
Change in net unrealized appreciation or depreciation of investments ... (8,667,786) (173,489)
---------------- ----------------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS .................... (157,209) 1,722,217
---------------- ----------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ........................................................... $ (200,603) $ 1,659,721
================ ================
</TABLE>
The accompanying notes to financial statements are an integral part of the
financial statements.
17
<PAGE> 18
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
STONEBRIDGE GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, OCTOBER 31,
2000 (UNAUDITED) 1999
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment loss ............................................................ $ (43,394) $ (75,238)
Net realized gain on investments ............................................... 8,510,577 4,543,115
Change in net unrealized appreciation or depreciation of investments ........... (8,667,786) 4,902,004
----------------- -----------------
INCREASE/(DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS .......................................................... (200,603) 9,369,881
----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net realized gain on investments ............................ (4,467,726) 0
----------------- -----------------
DECREASE IN NET ASSETS RESULTING FROM
DISTRIBUTIONS TO SHAREHOLDERS ............................................ (4,467,726) 0
----------------- -----------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Net increase/(decrease) in net assets derived from
beneficial interest transactions - (Note 2) .................................. 3,007,887 (5,533,340)
----------------- -----------------
NET INCREASE/(DECREASE)IN NET ASSETS .............................................. (1,660,442) 3,836,541
----------------- -----------------
NET ASSETS:
Beginning of period ............................................................ 42,610,241 38,773,700
----------------- -----------------
End of period .................................................................. $ 40,949,799 $ 42,610,241
================= =================
</TABLE>
The accompanying notes to financial statements are an integral part of the
financial statements.
18
<PAGE> 19
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
STONEBRIDGE AGGRESSIVE GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, OCTOBER 31,
2000 (UNAUDITED) 1999
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Net investment loss .......................................................... $ (62,496) $ (98,204)
Net realized gain on investments ............................................. 1,895,706 533,619
Change in net unrealized appreciation or depreciation of investments ......... (173,489) 1,038,714
----------------- -----------------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................................................ 1,659,721 1,474,129
----------------- -----------------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net realized gain on investments .......................... (435,431) 0
----------------- -----------------
DECREASE IN NET ASSETS RESULTING FROM
DISTRIBUTIONS TO SHAREHOLDERS .......................................... (435,431) 0
----------------- -----------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Net increase/(decrease) in net assets derived from
beneficial interest transactions (Note 2) .................................. 1,009,023 (300,976)
----------------- -----------------
NET INCREASE IN NET ASSETS ...................................................... 2,233,313 1,173,153
----------------- -----------------
NET ASSETS:
Beginning of period .......................................................... 5,836,703 4,663,550
----------------- -----------------
End of period ................................................................ $ 8,070,016 $ 5,836,703
================= =================
</TABLE>
The accompanying notes to financial statements are an integral part of the
financial statements.
19
<PAGE> 20
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
STONEBRIDGE GROWTH FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR EACH SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT THE PERIODS INDICATED:
<TABLE>
<CAPTION>
SIX MONTHS YEAR PERIOD
ENDED ENDED ENDED
APRIL 30, OCTOBER 31, OCTOBER 31, YEARS ENDED NOVEMBER 30,
2000 (UNAUDITED) 1999 1998 1997 1996 1995
---------------- ----------- ----------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period ........ $ 18.01 $ 14.32 $ 17.69 $ 16.56 $ 14.36 $ 12.61
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income/(loss) ............. (0.02) (0.03) 0.00 0.02 0.10 0.17
Net realized and unrealized gain/(loss)
on investments ........................ (0.05) 3.72 (0.07) 2.90 2.83 2.34
--------- --------- --------- --------- --------- ---------
Total income/(loss) from investment
operations ............................ (0.07) 3.69 (0.07) 2.92 2.93 2.51
--------- --------- --------- --------- --------- ---------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
Distributions from net investment
income ................................ 0.00 0.00 (0.02) (0.10) (0.17) (0.07)
Distributions from net realized gain
on investments ........................ (1.90) 0.00 (3.28) (1.69) (0.56) (0.69)
--------- --------- --------- --------- --------- ---------
Total distributions to shareholders ...... (1.90) 0.00 (3.30) (1.79) (0.73) (0.76)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period .............. $ 16.04 $ 18.01 $ 14.32 $ 17.69 $ 16.56 $ 14.36
========= ========= ========= ========= ========= =========
Total Return ................................ (0.51)% 25.77% (0.44)% 19.79% 21.46% 23.50%
========= ========= ========= ========= ========= =========
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in 000s) ...... $ 40,950 $ 42,610 $ 38,774 $ 42,380 $ 39,602 $ 34,775
Ratio of operating expenses to ========= ========= ========= ========= ========= =========
average net assets ..................... 1.50%* 1.50% 1.50%* 1.50% 1.47% 1.49%
========= ========= ========= ========= ========= =========
Ratio of operating expenses to average
net assets without fee waivers ........ 1.56%* 1.66% 1.78%* 1.50% 1.47% 1.49%
========= ========= ========= ========= ========= =========
Ratio of net investment income/(loss)
to average net assets .................. (0.21)%* (0.18)% 0.02%* 0.11% 0.67% 1.27%
========= ========= ========= ========= ========= =========
Ratio of net investment income/(loss) to
average net assets without fee waivers.. (0.27)%* (0.35)% (0.25)%* 0.11% 0.67% 1.27%
========= ========= ========= ========= ========= =========
Portfolio turnover rate** ................ 41% 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 six months ended April 30, 2000
were $16,263,691 and $20,558,402, respectively.
The accompanying notes to financial statements are an integral part of the
financial statements.
20
<PAGE> 21
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
STONEBRIDGE AGGRESSIVE GROWTH FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR EACH SHARE OF BENEFICIAL INTEREST OUTSTANDING
THROUGHOUT THE PERIODS INDICATED
<TABLE>
<CAPTION>
SIX MONTHS ENDED
APRIL 30, YEARS ENDED OCTOBER 31,
2000 (UNAUDITED) 1999 1998 1997 1996 1995
----------------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value, beginning of period ...... $ 11.46 $ 8.59 $ 13.27 $ 13.19 $ 13.97 $ 10.24
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income/(loss) ........... (0.11) (0.19) (0.37) (0.20) (0.17) (0.26)
Net realized and unrealized gain/(loss)
on investments ...................... 3.36 3.06 (2.07) 2.83 0.90 4.51
--------- --------- --------- --------- --------- ---------
Total income/(loss) from investment
operations .......................... 3.25 2.87 (2.44) 2.63 0.73 4.25
--------- --------- --------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net realized gain
on investments ...................... (0.88) 0.00 (2.24) (2.55) (1.51) (0.52)
--------- --------- --------- --------- --------- ---------
Total distributions to shareholders .... (0.88) 0.00 (2.24) (2.55) (1.51) (0.52)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ............ $ 13.83 $ 11.46 $ 8.59 $ 13.27 $ 13.19 $ 13.97
========= ========= ========= ========= ========= =========
TOTAL RETURN .............................. 29.83% 33.41% (20.23)% 22.89% 5.70% 43.71%
========= ========= ========= ========= ========= =========
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in 000s) .... $ 8,070 $ 5,837 $ 4,664 $ 5,428 $ 4,539 $ 4,151
========= ========= ========= ========= ========= =========
Ratio of operating expenses to
average net assets ................... 2.90%* 2.85% 2.90% 2.90% 2.29% 3.10%
========= ========= ========= ========= ========= =========
Ratio of operating expenses to average
net assets without fee waivers ...... 3.00%* 3.85% 3.69% 2.90% 2.29% 3.10%
========= ========= ========= ========= ========= =========
Ratio of net investment income/(loss) to
average net assets ................... (1.74)%* (1.90)% (2.01)% (1.62)% (1.26)% (2.10)%
========= ========= ========= ========= ========= =========
Ratio of net investment income/(loss) to
average net assets without fee
waivers .............................. (1.85)%* (2.90)% (1.22)% (1.62)% (1.26)% (2.10)%
========= ========= ========= ========= ========= =========
Portfolio turnover rate** .............. 56% 88% 92% 88% 108% 60%
========= ========= ========= ========= ========= =========
</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 six months ended April 30, 2000 were
$3,565,841 and $3,542,629, respectively.
The accompanying notes to financial statements are an integral part of the
financial statements.
21
<PAGE> 22
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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.
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.
22
<PAGE> 23
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 April 30, 2000, 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 six months ended April 30, 2000 and the year
ended October 31, 1999, were as follows:
<TABLE>
<CAPTION>
STONEBRIDGE GROWTH FUND
For the Six Months Ended For the Year Ended
April 30, 2000 October 31, 1999
---------------------------- ----------------------------
Shares Amount Shares Amount
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Shares Sold .............................. 27,080 $ 453,829 52,215 $ 839,746
Shares Issued in Reinvestment of
Dividends .............................. 270,471 4,381,625 0 0
----------- ----------- ----------- -----------
Total .................................... 297,551 4,835,454 52,215 839,746
Less Shares Redeemed ..................... (111,106) (1,827,567) (394,333) (6,373,086)
----------- ----------- ----------- -----------
Net Increase (Decrease) .................. 186,445 $ 3,007,887 (342,118) (5,533,340)
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
STONEBRIDGE AGGRESSIVE GROWTH FUND
For the Six Months Ended For the Year Ended
April 30, 2000 October 31, 1999
---------------------------- ----------------------------
Shares Amount Shares Amount
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Shares Sold .............................. 96,483 $ 1,354,453 51,456 $ 538,942
Shares Issued in Reinvestment of
Dividends .............................. 35,513 414,442 0 0
----------- ----------- ----------- -----------
Total .................................... 131,996 1,768,895 51,456 538,942
Less Shares Redeemed ..................... (57,693) (759,872) (85,413) (839,918)
----------- ----------- ----------- -----------
Net Increase (Decrease) .................. 74,303 $ 1,009,023 (33,957) $ (300,976)
=========== =========== =========== ===========
</TABLE>
3. UNREALIZED APPRECIATION AND DEPRECIATION OF INVESTMENTS
<TABLE>
<CAPTION>
GROWTH FUND AGGRESSIVE GROWTH FUND
------------------------ ------------------------
<S> <C> <C>
As of April 30, 2000
Gross appreciation (excess of value over cost) $ 10,542,370 $ 1,646,044
Gross depreciation (excess of cost over value) (2,078,505) (651,310)
------------------------ ------------------------
Net unrealized appreciation $ 8,463,865 $ 994,734
======================== ========================
</TABLE>
These amounts represent the net increase in the value of investments
(all of which are represented by long transactions) held at April 30,
2000.
23
<PAGE> 24
STONEBRIDGE FUNDS TRUST SEMI-ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 0.75% 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 April 30, 2000, the Stonebridge Growth Fund and the Stonebridge
Aggressive Growth Fund had cumulative carryover of waived expenses of
$188,161 and $85,192, 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 0.10% of the average
daily net assets in each Series up to $250,000,000 and 0.075% 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.
24
<PAGE> 25
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================================================================================
25
<PAGE> 26
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INTENTIONALLY LEFT BLANK
================================================================================
26
<PAGE> 27
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INTENTIONALLY LEFT BLANK
================================================================================
27
<PAGE> 28
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
Derek J. Mullins, Assistant Treasurer
Lisa A. Bruckert, Secretary
INVESTMENT ADVISER
STONEBRIDGE CAPITAL MANAGEMENT,
INCORPORATED
1801 Century Park East, Suite 1800
Los Angeles, California 90067
ADMINISTRATOR, DISTRIBUTOR AND
FUND ACCOUNTANT
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
TAIT, WELLER & BAKER
8 Penn Center Plaza, Suite 800
Philadelphia, PA 19103-2108
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
SEMI-ANNUAL REPORT
FOR THE SIX MONTHS ENDED
APRIL 30, 2000
