PARIBAS TRUST FOR INSTITUTIONS
- --------------------------------------------------------------------------------
----------
SEMI-ANNUAL REPORT
June 30, 1996
This report is submitted for the general information of the shareholders of
Paribas Trust for Institutions. It is not authorized for distribution to
prospective investors unless accompanied or preceded by and effective Prospectus
for the Trust, which contains information concerning the Trust's investment
policies, as well as other pertinent information.
1-800-445-1326
TRUSTEES
Alain Leclair
John W. English
Mark Weber
Geoffrey H. Moore
Thomas C. Pryor
INVESTMENT ADVISER
Paribas Asset Management, Inc.
787 Seventh Avenue, 30th Floor
New York, NY 10019
ADMINISTRATOR
First Data Investor Services Group, Inc.
One Exchange Place
Boston, MA 02109
CUSTODIAN
Boston Safe Deposit and Trust Company
One Boston Place
Boston, MA 02108
TRANSFER AGENT
Unified Advisers, Inc.
429 North Pennsylvania Street
Indianapolis, IN 46204
LEGAL COUNSEL
Rogers & Wells
200 Park Avenue
New York, NY 10166
Dear Shareholders,
The following is our investment review for the Paribas Trust for Institutions
(Quantus Equity Managed Portfolio and Quantus II) for the semi-annual period
ended June 30, 1996.
The first half of 1996 was another good period for the U.S. stock market as the
S&P 500 Index was strong in each month with the exception of June.
The rise of the U.S. equity market, as represented by the S&P 500 Index,
exceeded 16% during the first half of 1996. The favorable market performance
was due to an environment generally favorable to financial assets: moderate
inflation and a strong rise in corporate earnings. Figures confirming the
sustained level of economic growth and its positive effects on companies' long-
term profits had much more impact than fears of possible recovery in inflation
or the widely shared idea that most U.S. stocks were excessively expensive.
Only in the last few weeks of June did some of the negative factors prevail to
push investors into a more bearish mood, as a growing number of signs indicated
that a rise in interest rates may become necessary to fight early signs of
inflation.
The leading factors in the strong outperformance of our Portfolios were the
overweighting in technology companies as well as a satisfactory contribution
from stock selection in most other industries.
Based on its quantitative model's current indications, the Investment Adviser
does not expect to make major changes in the portfolio structure to conform with
the model in the near future. Technology companies and HMOs still rank high on
the list as any possible disappointment in second quarter earnings seems already
discounted after the recent corrections and should not impact these companies
long-term growth. Most pharmaceuticals and airlines also enjoy attractive
rankings as a result of current optimism in earnings revisions.
On June 20, 1996, the Board of Trustees voted to recommend to shareholders that
they approve liquidation of Quantus Equity Managed Portfolio, which liquidation
is to occur as soon as practicable following shareholder approval. As of July
10, 1996, all of the shares of beneficial interest of Quantus II have been
redeemed.
Yours sincerely,
/s/ Alain LeClair
Alain LeClair
Chairman of the Board of Trustees
<TABLE>
PARIBAS TRUST FOR INSTITUTIONS
QUANTUS EQUITY MANAGED PORTFOLIO
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
<CAPTION>
VALUE
SHARES (NOTE 1)
------ -------
- -
COMMON STOCKS - 99.0%
<S> <C> <C>
COMPUTER EQUIPMENT, COMPONENTS AND SOFTWARE - 14.1%
1,000 BMC Software, Inc.** $ 59,750
800 Cabletron Systems Inc.** 54,900
850 Computer Associates International Inc. 58,863
800 Intel Corporation 58,750
600 Microsoft Corporation** 72,075
1,500 Oracle Corporation** 59,156
1,000 Sun Microsystems Inc.** 58,875
----------
422,369
----------
FINANCIAL SERVICES - 12.3%
2,000 Equifax, Inc. 52,500
2,000 Federal National Mortgage Corporation 67,000
1,000 First USA, Inc. 55,000
2,000 Green Tree Financial Corporation 62,500
2,250 MBNA Corporation 64,125
1,500 Travelers Group Inc. 68,437
----------
369,562
----------
DRUGS, HEALTHCARE PRODUCTS AND BIOLOGICAL RESEARCH - 11.7%
1,000 American Home Products Corporation 60,125
900 Amgen, Inc.** 48,600
1,200 Johnson & Johnson 59,400
1,000 Medtronic Inc. 56,000
800 Pfizer Inc. 57,100
1,100 Schering-Plough Corporation 69,025
----------
350,250
----------
CONSUMER PRODUCTS - 11.3%
1,100 Gillette Company 68,612
800 Nike Inc., Class B 82,200
1,800 PepsiCo, Inc. 63,675
600 Philip Morris Companies, Inc. 62,400
700 Procter & Gamble Company 63,437
----------
340,324
----------
OIL AND GAS - 9.6%
600 Exxon Corporation 52,125
500 Mobil Corporation 56,062
2,000 PanEnergy Corporation 65,750
700 Schlumberger Ltd. 58,975
1,100 Sonat Offshore Drilling Inc. 55,550
----------
288,462
----------
</TABLE>
The accompanying notes to financial statements are an integral part of this
portfolio.
-1-
<TABLE>
PARIBAS TRUST FOR INSTITUTIONS
QUANTUS EQUITY MANAGED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1996 (UNAUDITED)
<CAPTION>
VALUE
SHARES (NOTE 1)
------ -------
- -
COMMON STOCKS - (CONTINUED)
<S> <C> <C>
CHEMICALS - 9.4%
700 Dow Chemical Company $ 53,200
700 Eastman Kodak Company 54,425
2,000 Monsanto Company 65,000
1,500 Praxair, Inc. 63,375
1,200 Union Carbide Corporation 47,700
----------
283,700
----------
HEALTH CARE - 6.3%
1,400 HealthCare COMPARE Corporation** 68,250
2,000 HEALTHSOUTH Corporation** 72,000
1,200 Oxford Health Plans, Inc.** 49,350
----------
189,600
----------
TRANSPORTATION - 5.6%
700 AMR Corporation** 63,700
900 Continental Airlines Inc., Class B** 55,575
600 Delta Air Lines, Inc. 49,800
----------
169,075
----------
RETAIL - 3.9%
1,700 Gap, Inc. 54,613
3,150 Staples, Inc.** 61,425
----------
116,038
----------
COMMERCIAL BANKING - 3.8%
800 NationsBank Corporation 66,100
200 Wells Fargo & Company 47,775
----------
113,875
----------
TELEPHONE - 3.4%
900 Ameritech Corporation 53,438
800 AT&T Corporation 49,600
----------
103,038
----------
ENTERTAINMENT - 2.3%
1,300 Mirage Resorts, Inc.** 70,200
----------
INSURANCE - 2.0%
500 CIGNA Corporation 58,938
----------
</TABLE>
The accompanying notes to financial statements are an integral part of this
portfolio.
-2-
<TABLE>
PARIBAS TRUST FOR INSTITUTIONS
QUANTUS EQUITY MANAGED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
JUNE 30, 1996 (UNAUDITED)
<CAPTION>
VALUE
SHARES (NOTE 1)
------ -------
- -
<S> <C> <C>
COMMON STOCKS - (CONTINUED)
METALS AND MINERALS - 1.7%
800 Phelps Dodge Corporation $ 49,900
----------
RESTAURANTS - 1.6%
1,000 McDonald's Corporation 46,750
----------
TOTAL INVESTMENTS (Cost $2,267,847*) 99.0% 2,972,081
OTHER ASSETS AND LIABILITIES (Net) 1.0 30,260
----- ----------
NET ASSETS 100.0% $3,002,341
----- ----------
__________________
* Aggregate cost for Federal tax purposes.
** Non-income producing security.
</TABLE>
The accompanying notes to financial statements are an integral part of this
portfolio.
-3-
<TABLE>
PARIBAS TRUST FOR INSTITUTIONS
QUANTUS EQUITY MANAGED PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments, at value (Cost $2,267,847) (Note 1)
See accompanying portfolio of investments................ $2,972,081
Cash....................................................... 59,164
Dividends receivable....................................... 3,454
----------
TOTAL ASSETS............................................. 3,034,699
LIABILITIES:
Professional fees payable..................................$17,093
Payable for shares of beneficial interest redeemed......... 7,507
Shareholder servicing agent fees payable (Note 7).......... 1,504
Custodian fees payable (Note 7)............................ 900
Administration fee payable (Note 7)........................ 625
Accrued expenses and other payables........................ 4,729
-------
TOTAL LIABILITIES 32,358
----------
NET ASSETS................................................... $3,002,341
==========
NET ASSETS consist of:
Accumulated net investment loss............................ $ (14,755 )
Accumulated net realized gain on investments sold.......... 272,229
Net unrealized appreciation of investments................. 704,234
Par value (295,895 shares of beneficial
interest outstanding)(Note 6).......................... 29,590
Paid-in capital in excess of par value 2,011,043
----------
TOTAL NET ASSETS....................................... $3,002,341
==========
NET ASSET VALUE:
Net Asset Value and Offering Price Per Share*
($3,002,341 / 295,895 shares of beneficial
interest outstanding).................................. $10.15
======
<FN>
- -------------------
* Redemption price per share is equal to net asset value per share less any
applicable contingent deferred sales charge (Note 4).
</TABLE>
The accompanying notes to financial statements are an integral part of this
statement.
-4-
<TABLE>
PARIBAS TRUST FOR INSTITUTIONS
QUANTUS EQUITY MANAGED PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
Dividends....................................................... $
20,582
Interest........................................................
711
--------
Total Investment Income......................................
21,293
EXPENSES:
Professional fees...............................................$ 17,358
Distribution fees (Note 4)...................................... 14,582
Investment advisory fee (Note 2)................................ 9,478
Shareholder servicing agent fees (Note 7)....................... 9,300
Administration fee (Note 7)..................................... 4,481
Custodian fees (Note 7)......................................... 2,478
Trustees' fees and expenses (Note 3)............................ 438
Other........................................................... 2,431
Fees waived by investment adviser, Trustees and distributor
(Notes 2, 3 and 4)........................................... (24,498 )
--------
TOTAL EXPENSES...............................................
36,048
--------
NET INVESTMENT LOSS..............................................
(14,755 )
--------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
(Notes 1 and 5):
Net realized gain from investment transactions:
Proceeds from sales.......................................... 747,432
Cost of securities sold...................................... 573,784
--------
Net realized gain on investments sold during the period.........
173,648
Unrealized appreciation of investments:
Appreciation - beginning of period........................... 464,376
Appreciation - end of period................................. 704,234
--------
Net change in unrealized appreciation of investments
during the period............................................
239,858
--------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS..................
413,506
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............
$398,751
========
</TABLE>
The accompanying notes to financial statements are an integral part of this
statement.
-5-
<TABLE>
PARIBAS TRUST FOR INSTITUTIONS
QUANTUS EQUITY MANAGED PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
SIX MONTHS
ENDED YEAR
06/30/96 ENDED
(UNAUDITED) 12/31/95
---------- --------
<S> <C> <C>
Net investment loss......................................................$ (14,755 ) $ (15,002
)
Net realized gain on investments sold during the period..................173,648 439,371
Net change in unrealized appreciation of investments during the period...239,858 362,121
---------- ----------
Net increase in net assets resulting from operations.....................398,751 786,490
Distributions to shareholders from:
Net realized gain on investments...................................... -- (320,187
)
Net decrease in net assets from Portfolio share transactions (Note 6)....(212,572 ) (255,383
)
---------- ----------
Net increase in net assets...............................................186,179 210,920
NET ASSETS:
Beginning of period......................................................2,816,162
2,605,242
---------- ----------
End of period (including accumulated net investment loss of
$14,755 at June 30, 1996).............................................$3,002,341 $2,816,162
========== ==========
</TABLE>
The accompanying notes to financial statements are an integral part of this
statement.
-6-
<TABLE>
PARIBAS TRUST FOR INSTITUTIONS
QUANTUS EQUITY MANAGED PORTFOLIO
FINANCIAL HIGHLIGHTS
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<CAPTION>
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
06/30/96 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED)12/31/9512/31/9412/31/93++12/31/92++
12/31/91
--------- ----------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period..... $ 8.85 $ 7.43 $ 8.13
$10.27 $10.01 $ 9.20
------- ------- ------- -
- ----- ------ ------
Income from investment operations:
Net investment loss..................... (0.05 )## (0.05 )## (0.05
)## (0.05 ) (0.10 ) (0.11 )##
Net realized and unrealized gain/(loss)
on investments........................ 1.35 2.60 (0.28
) 0.59 0.85 3.65
------- ------- ------- -
- ----- ------ ------
Total from investment operations......... 1.30 2.55 (0.33 )
0.54 0.75 3.54
Less distributions:
Distributions from net investment income. -- -- --
- -- -- --
Distributions from net realized gain..... -- (1.13 ) (0.35 )
(2.54 ) (0.45 ) (2.73 )
Distributions in excess of net
realized gain......................... -- -- --
(0.06 ) -- --
Return of capital (Note 1)............... -- -- (0.02 )
(0.08 ) (0.04 ) --
------- ------- ------- -
- ----- ------ ------
Total distributions...................... -- (1.13 ) (0.37
) (2.68 ) (0.49 ) (2.73 )
------- ------- ------- -
- ----- ------ ------
Net Asset Value, end of period........... $ 10.15 $ 8.85 $ 7.43
$ 8.13 $10.27 $10.01
======= ======= =======
====== ====== =====
Total return+++.......................... 14.69 % 34.28 % (4.08
)% 5.11 % 7.53 % 42.10 %
======= ======= =======
====== ====== =====
Ratios to average net assets/
supplemental data:
Net assets, end of period (in 000's)..... $3,002 $2,816 $2,605
$3,294 $2,897 $3,358
Ratio of operating expenses to average
net assets.............................. 2.47 %+# 2.50 %# 2.50
%# 2.43 % 2.72 % 3.50 %#
Ratio of net investment loss
to average net assets................... (1.01 )%+ (0.56 )% (0.60
)% (0.52 )% (0.98 )% (0.87 )%
Portfolio turnover rate.................. 26 % 141 % 120 %
155 % 63 % 105 %
Average commission rate paid (a) ........ $0.0591 -- --
- -- -- --
<FN>
- -------------------
+ Annualized
++ Per share data was computed based upon monthly average shares outstanding for
this period.
+++ Total return represents aggregate total return for the period indicated.
# Without fees waived and expenses reimbursed by the Investment Adviser
and/or Trustees and/or Distributor, the ratios of expenses to average net
assets for the six months ended June 30, 1996 and the years ended December
31, 1995, 1994 and 1991 would have been 4.15%, 3.93%, 3.25% and 3.90%,
respectively.
##Net investment loss per share before fees waived and/or expenses reimbursed
by the Investment Adviser and/or
Trustees and/or Distributor, for the six months ended June 30, 1996 and the
years ended December 31, 1995, 1994 and 1991 would have been $(0.13), $(0.17),
$(0.12) and $(0.16), respectively.
(a)Average commission rate paid per share of securities purchased and sold by
the Fund.
</TABLE>
The accompanying notes to financial statements are an integral part of these
financial highlights.
-7-
<TABLE>
PARIBAS TRUST FOR INSTITUTIONS
QUANTUS EQUITY MANAGED PORTFOLIO
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<CAPTION>
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
12/31/90++ 12/31/8912/31/88 12/31/8712/31/86
*++
--------- --------------- -----------------
- -
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period.......... $10.01 $9.81 $9.32
$9.98 $10.00
----- ------ ----- -
- ---- -----
Income from investment operations:
Net investment income/(loss)................. (0.10 )## 0.37 0.27
0.16 0.02 ##
Net realized and unrealized gain/(loss)
on investments............................. (0.22 ) 2.35 0.51
(0.66 ) (0.02 )
----- ------ ----- -
- ---- -----
Total from investment operations.............. (0.32 ) 2.72 0.78
(0.50 ) 0.00
Less distributions:
Distributions from net investment income...... - (0.43 ) (0.29 )
(0.16 ) (0.02 )
Distributions from net realized gain.......... (0.49 ) (2.09 ) --
- -- --
Distributions in excess of net realized gain.. -- -- --
- -- --
Return of capital (Note 1).................... -- -- --
- -- --
----- ------ ----- -
- ---- -----
Total distributions........................... (0.49 ) (2.52 ) (0.29 )
(0.16 ) (0.02 )
----- ------ ----- -
- ---- -----
Net Asset Value, end of period................ $9.20 $10.01 $9.81
$9.32 $9.98
===== ====== =====
===== =====
Total return+++............................... (3.28 )% 28.23 % 8.38 %
(5.08 )% 0.00 %
===== ====== =====
===== =====
Ratios to average net assets/
supplemental data:
Net assets, end of period (in 000's).......... $3,531 $5,300 $9,964
$13,088 $9,379
Ratio of operating expenses to average
net assets................................... 3.50 %# 2.36 % 2.50 %
2.34 % 2.60 %+#
Ratio of net investment income/(loss) to
average net assets........................... (1.04 )% 2.76 % 2.46 %
1.43 % 0.29 %+
Portfolio turnover rate....................... 196 % 126 % 170 %
128 % 88 %
<FN>
- -------------------
* The Portfolio commenced operations on April 14, 1986.
+ Annualized.
++ Per share data was computed based upon monthly average shares outstanding
for this period.
+++ Total return represents aggregate total return for the period indicated.
# Without fees waived and expenses reimbursed by the Investment Adviser
and/or Trustees, the ratios of expenses to average net assets for the year
ended December 31, 1990 and for the period ended December 31, 1986 would
have been 3.80% and 3.04%, respectively.
##Net investment loss per share before fees waived and/or expenses reimbursed
by the Investment Adviser and/or
Trustees the year ended December 31, 1990 and for the period ended December 31,
1986 was $(0.13) and $(0.01), respectively.
</TABLE>
The accompanying notes to financial statements are an integral part of these
financial highlights.
-8-
<TABLE>
PARIBAS TRUST FOR INSTITUTIONS
QUANTUS II
PORTFOLIO OF INVESTMENTS
JUNE 30, 1996 (UNAUDITED)
<CAPTION>
FACE VALUE
VALUE (NOTE 1)
----- -------
<S> <C> <C>
TIME DEPOSIT - 1.1% (Cost $1,104,000)
$ 1,104,000 Boston Safe Deposit and Trust Company,
4.750% due 07/01/1996 $ 1,104,000
------------
TOTAL INVESTMENTS (Cost $1,104,000*) 1.1% 1,104,000
OTHER ASSETS AND LIABILITIES (Net) 98.9 98,948,576
----- ------------
NET ASSETS 100.0% $100,052,576
===== ============
<FN>
__________________
* Aggregate cost for Federal tax purposes.
</TABLE>
The accompanying notes to financial statements are an integral part of this
portfolio.
-9-
<TABLE>
PARIBAS TRUST FOR INSTITUTIONS
QUANTUS II
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments, at value (Cost $1,104,000) (Note 1)
See accompanying portfolio of investments.................... $ 1,104,000
Cash........................................................... 832
Receivable for investments sold................................ 98,973,371
Dividends receivable........................................... 123,402
Interest receivable............................................ 146
------------
TOTAL ASSETS................................................. 100,201,751
LIABILITIES:
Professional fees payable....................................... $68,427
Investment advisory fee payable (Note 2)........................ 35,751
Administration fee payable (Note 7)............................. 21,042
Trustees' fees and expenses payable (Note 3).................... 14,784
Custodian fees payable (Note 7)................................. 6,400
Shareholder servicing agent fees payable (Note 7)............... 1,501
Accrued expenses and other payables............................. 1,270
------
TOTAL LIABILITIES.............................................
149,175
------------
NET ASSETS.........................................................
$100,052,576
============
NET ASSETS consist of:
Undistributed net investment income..............................
$ 257,527
Accumulated net realized gain on investments sold................
22,989,020
Par value (7,173,772 shares of beneficial
interest outstanding) (Note 6).................................
717,377
Paid-in capital in excess of par value...........................
76,088,652
------------
TOTAL NET ASSETS...............................................
$100,052,576
============
NET ASSET VALUE:
Net Asset Value, Offering and Redemption Price Per Share
($100,052,576 / 7,173,772 shares of beneficial
interest outstanding)..........................................
$13.95
======
</TABLE>
The accompanying notes to financial statements are an integral part of this
statement.
-10-
<TABLE>
PARIBAS TRUST FOR INSTITUTIONS
QUANTUS II
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
Dividends.................................................. $ 642,440
Interest................................................... 43,947
-----------
TOTAL INVESTMENT INCOME................................. 686,387
EXPENSES:
Investment advisory fee (Note 2)...........................$ 208,570
Administration fee (Note 7)................................126,376
Professional fees..........................................67,492
Trustees' fees and expenses (Note 3).......................22,063
Custodian fees (Note 7)....................................19,205
Shareholder servicing agent fees (Note 7)..................8,995
Other......................................................544
-----------
TOTAL EXPENSES.......................................... 453,245
-----------
NET INVESTMENT INCOME......................................... 233,142
-----------
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(Notes 1 and 5):
Net realized gain from investment transactions:
Proceeds from sales.....................................147,239,624
Cost of securities sold................................. 124,349,689
-----------
Net realized gain on investments sold during the period.... 22,889,935
Net change in unrealized appreciation of investments:
Appreciation - beginning of period......................11,533,715
Appreciation - end of period............................ 0
-----------
Net change in unrealized appreciation of investments
during the period....................................... (11,533,715 )
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS............... 11,356,220
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......... $11,589,362
===========
</TABLE>
The accompanying notes to financial statements are an integral part of this
statement.
-11-
<TABLE>
PARIBAS TRUST FOR INSTITUTIONS
QUANTUS II
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
SIX MONTHS
ENDED YEAR
06/30/96 ENDED
(UNAUDITED) 12/31/95
---------- --------
<S> <C> <C>
Net investment income............................................$ 233,142$
866,895
Net realized gain on investments sold during the period..........22,889,9356,3
42,410
Net unrealized appreciation/(depreciation) of investments
during the period............................................(11,533,715 )
13,332,202
------------ -----------
Net increase in net assets resulting from operations.............11,589,36220,
541,507
Distributions to shareholders from:
Net investment income........................................-- (880,222
)
Net realized gain on investments.............................-- (5,591,238
)
------------ -----------
Net increase in net assets........................................ 11,589,362
14,070,047
NET ASSETS:
Beginning of period............................................... 88,463,214
74,393,167
------------ -----------
End of period (including undistributed net investment income
of $257,527 and $24,385, respectively).......................$100,052,576$8
8,463,214
============ ===========
</TABLE>
The accompanying notes to financial statements are an integral part of this
statement.
-12-
<TABLE>
PARIBAS TRUST FOR INSTITUTIONS
QUANTUS II
FINANCIAL HIGHLIGHTS
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<CAPTION>
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
06/30/96 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED)12/31/9512/31/9412/31/93++12/31/92 12/3
1/91
--------- ----------------------------------------
- ---
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period.... $12.33 $10.37 $10.95
----- ----- -----
$11.59 $12.06 $10.46
----- ----- -----
Income from investment operations:
Net investment income.................. 0.03 0.12 0.12
0.13 0.12 0.22
Net realized and unrealized
gain/(loss) on investments............ 1.59 2.74 (0.45
----- ----- -----
) 0.15 0.72 3.12
----- ----- -----
Total from investment operations........ 1.62 2.86 (0.33)
0.28 0.84 3.34
Less distributions:
Distributions from net investment income -- (0.12 ) (0.13)
(0.11 ) (0.12 ) (0.22 )
Distributions from net realized gain.... -- (0.78 ) (0.03)
(0.81 ) (1.17 ) (1.52 )
Distributions in excess of net
investment income and net realized gain -- -- -- -
- - -- --
Distributions in excess of net
realized gain.......................... -- -- (0.09) -
- - -- --
Return of capital (Note 1).............. -- -- -- -
------ ------ ---- ----
- - (0.02 ) --
------ ------
Total distributions..................... -- (0.90 ) (0.25 )
------ ------ ------
(0.92 ) (1.31 ) (1.74 )
- ------ ------ ------
Net Asset Value, end of period.......... $13.95 $12.33 $10.37
------ ------ ------
------ ------ ------
$10.95 $11.59 $ 12.06
- ------ ------ ------
- ------ ------ ------
Total return+++......................... 13.14 % 27.60 % (3.04
----- ----- -----
----- ----- -----
)% 2.58 % 8.10 % 34.28 %
---- ---- -----
---- ---- -----
Ratios to average net assets/
supplemental data:
Net assets, end of period (in 000's)....$100,053 $88,463 $74,393
$78,784 $83,325 $88,817
Ratio of operating expenses to
average net assets..................... 0.95 %+ 0.98 % 0.89 %
0.71 % 0.81 % 0.82 %
Ratio of net investment income to
average net assets..................... 0.49 %+ 1.01 % 1.10 %
1.13 % 1.01 % 2.06 %
Portfolio turnover rate................. 64 % 206 % 145 %
247 % 154 % 156 %
Average commission rate paid (a)........ $0.0603 -- -- -
- - -- --
___________________
+ Annualized
++ Per share data was computed based upon monthly average shares outstanding for
this period.
+++ Total return represents aggregate total return for the period indicated.
(a)Average commission rate paid per share of securities purchased and sold by
the Fund.
</TABLE>
The accompanying notes to financial statements are an integral part of these
financial highlights.
-13-
<TABLE>
PARIBAS TRUST FOR INSTITUTIONS
QUANTUS II
FINANCIAL HIGHLIGHTS (CONTINUED)
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<CAPTION>
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
12/31/90 12/31/8912/31/88 12/31/8712/31/86
+
--------- --------------- -----------------
- -
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period.......... $11.79 $10.80 $10.27
------ ------ ------
$10.08 $10.00
- ------ ------
Income from investment operations:
Net investment income........................ 0.40 0.72 0.32
0.26 ## 0.05 ##
Net realized and unrealized gain/(loss) on
investments................................. (0.48 ) 1.40 0.54
------ ----- ----
0.17 0.10
- ---- -----
Total from investment operations.............. (0.08 ) 2.12 0.86
0.43 0.15
Less distributions:
Distributions from net investment income...... (0.39 ) (0.72 ) (0.33 )
(0.24 ) (0.07 )
Distributions from net realized gain.......... (0.75 ) (0.41 ) --
- -- --
Distributions in excess of net investment
income and net realized gain................. (0.11 ) -- --
- -- --
Distributions in excess of net realized gain.. -- -- --
- -- --
Return of capital (Note 1).................... -- -- --
----- ----- -----
- -- --
- ----- ------
Total distributions........................... (1.25 ) (1.13 ) (0.33 )
------ ------ ------
(0.24 ) (0.07 )
- ------ ------
Net Asset Value, end of period................ $10.46 $11.79 $10.80
------ ------ ------
------ ------ ------
$10.27 $10.08
- ------- ------
- ------- ------
Total return+++............................... (1.65 )% 19.78 % 8.40 %
------- ------ ------
------- ------- ------
4.17 % 1.48 %
- ----- ------
- ----- ------
Ratios to average net assets/
supplemental data:
Net assets, end of period (in 000's)..........$56,680 $62,094 $56,834
$25,393 $3,832
Ratio of operating expenses to average
net assets................................... 0.92 % 0.85 % 1.19 %
0.99 %# 2.57 %+#
Ratio of net investment income to
average net assets........................... 3.57 % 6.00 % 4.10 %
3.14 % 0.43 %+
Portfolio turnover rate....................... 198 % 90 % 176 %
134 % 20 %
<FN>
- -------------------
* The Portfolio commenced operations on April 28, 1986.
+ Annualized.
+++ Total return represents aggregate total return for the period indicated.
# Without fees waived and expenses reimbursed by the Investment Adviser, the
ratios of expenses to average net assets for the year ended December 31, 1987
and for the period ended
December 31, 1986 would have been 1.11% and 3.55%, respectively.
##Net investment income/(loss) per share before fees waived and expenses
reimbursed by the Investment Adviser for
the year ended December 31, 1987 and for the period ended December 31, 1986
was $0.25 and $(0.08), respectively.
</TABLE>
The accompanying notes to financial statements are an integral part of these
financial highlights.
-14-
PARIBAS TRUST FOR INSTITUTIONS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
Paribas Trust for Institutions (the "Trust") is a diversified, open-end
management investment company. As of the date of this report, the Trust
consists of two separate portfolios: Quantus Equity Managed Portfolio
("Quantus I") and Quantus II (collectively, the "Portfolios"). The Trust is
registered under the Investment Company Act of 1940, as amended (the "Act"),
and is established as a Massachusetts business trust under a Declaration of
Trust, dated September 16, 1985, as amended. The preparation of financial
statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses for the period. Actual results
could differ from those estimates. The following is a summary of significant
accounting policies consistently followed by the Trust in the preparation of
its financial statements.
(a) Portfolio Valuation:
Investments in securities which are listed or traded on a national securities
exchange are valued at the last quoted sales prices as of the close of trading
on the New York Stock Exchange. Listed securities that are not traded on a
particular day, and securities regularly traded in the over-the-counter
market, are valued at the price within the limits of the latest bid and asked
prices deemed by the Trustees, or by persons delegated by the Trustees, to
best reflect fair value. Other assets and securities are valued in a manner
determined in good faith by the Trustees, or their delegates, to reflect their
fair value. Short-term obligations, with a maturity of 60 days or less, are
valued at amortized cost.
(b) Securities Transactions and Investment Income:
Securities transactions are recorded as of the trade date. Dividend income
and distributions to shareholders are recorded on the ex-dividend date.
Interest income is recorded on the accrual basis.
Realized gains or losses on sales of investments are determined on the basis
of identified cost.
(c) Dividends and Distributions:
It is the Trust's intention to distribute substantially all of the net
investment income, if any, of the Portfolios. Dividends from net investment
income are declared annually in additional full and fractional shares of each
Portfolio at net asset value unless the shareholder elects to receive such
dividends in cash. All net realized long-term or short-term capital gains of
each Portfolio, if any, are declared and distributed annually. Additional
distributions of net investment income and net capital gains may be made at
the discretion of the Board of Trustees to avoid the application of the 4%
excise tax. Income distributions and capital gain distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due
to differing treatments of income and gains on various investment securities
held by the Portfolios, timing differences and differing characterization of
distributions made by the Portfolios. Reclassifications are made to Portfolio
capital accounts to reflect income and gains available for distribution (or
capital loss carryforwards) under Federal income tax regulations and have no
effect in the net asset value.
(d) Allocation of General Expenses:
General expenses of the Trust (such as state franchise taxes and Securities and
Exchange Commission fees) are generally allocated between the Portfolios in
proportion to their relative net assets. Expenses which relate exclusively to a
particular Portfolio, such as redemption expenses, portfolio transaction
expenses, shareholder servicing costs, registration fees, interest, certain
taxes and custodian fees, are borne directly by each Portfolio. Professional
expenses (such as legal and auditing fees) are allocated between the Portfolios
according to an estimate of the time spent servicing each Portfolio relative to
the time spent providing service to the Trust. Shareholder report expenses are
allocated on the basis of the number of shareholders of each Portfolio relative
to the number of shareholders in the Trust.
- -15-
(e) Federal Taxes:
The Trust intends that each Portfolio annually qualify for and elect the
special tax treatment afforded a regulated investment company of the Internal
Revenue Code of 1986, as amended, by complying with the requirements
applicable to regulated investment companies, including distribution of
substantially all of its taxable income to its shareholders. Therefore, no
Federal income tax provision has been provided.
<TABLE>
2. INVESTMENT ADVISORY FEE
The Trust has entered into an Advisory Agreement with Paribas Asset
Management, Inc. (the "Investment Adviser"). Pursuant to the Advisory
Agreement, the Investment Adviser receives a fee calculated at the rates shown
below, based on the average daily net assets of each Portfolio. The fee is
calculated daily and is paid monthly:
<CAPTION>
Portfolio Average Daily Net Assets Annual Rate
--------- ------------------------ -----------
<S> <C> <C>
Quantus I Total 0.650%
Quantus II Up to $10 million 0.625%
Over $10 million up to $25 million 0.550%
Over $25 million up to $50 million 0.450%
Over $50 million 0.350%
</TABLE>
For the six months ended June 30, 1996, advisory fees amounted to $9,478 and
$208,570, respectively, for Quantus I and Quantus II.
For Quantus I, the Investment Adviser has agreed to waive its fees and
reimburse expenses to the extent necessary to ensure that the Portfolio's
total operating expenses do not exceed 2.50% of the Portfolio's average daily
net assets. For the six months ended June 30, 1996, the Investment Adviser
waived fees of $9,478.
3. TRUSTEES FEES
Trustees of the Trust who are not affiliated with the Investment Adviser or
its affiliates receive a fee of $2,500 per quarter. The Trust reimburses all
Trustees for any expenses incurred in attending meetings of the Trustees of
the Trust or of any committee thereof. For the six months ended June 30,
1996, Trustees fees of $438 attributable to Quantus I were waived.
4. DISTRIBUTION PLAN
The Trust has adopted a Plan of Distribution (the "Plan") pursuant to Rule 12b-
1 of the Act under which Quantus I pays Paribas Corporation (the
"Distributor", and an affiliate of the Investment Adviser) for its services a
fee equal to 1% of the average daily net assets of such Portfolio. The
Distributor has waived the payment of distribution fees until further notice.
For the six months ended June 30, 1996, the Distributor waived $14,582 in
distribution charges. A contingent deferred sales charge ("Deferred Charge")
may also be imposed upon redemption of shares of Quantus I by an investor.
The amount of the Deferred Charge, if any, will vary depending on the number
of years from the time of payment for the purchase of shares to the time of
redemption of such shares and upon the amount invested. For the six months
ended June 30, 1996, no Deferred Charges were incurred.
Quantus II does not incur distribution fees or deferred charges.
5. PURCHASES AND SALES OF SECURITIES
For the six months ended June 30, 1996, cost of purchases and proceeds from
sales of securities, excluding short-term investments, aggregated: $793,226
and $747,432, respectively, for Quantus I and $50,893,703 and $147,239,624,
respectively, for Quantus II.
-16-
<TABLE>
At June 30, 1996, the aggregate gross unrealized appreciation (excess of value
over tax cost) and the aggregate gross unrealized depreciation (excess of tax
cost over value) for all securities owned by each Portfolio were as follows:
<CAPTION>
Tax Basis Tax Basis
Unrealized Unrealized
Appreciation Depreciation
<S> <C> <C>
Quantus I $713,671 $9,437
Quantus II -- --
</TABLE>
<TABLE>
6. CAPITAL STOCK
The authorized capital stock of the Trust consists of an unlimited number of
shares of beneficial interest, having a par value of $0.10 per share. Capital
stock activity for the six months ended June 30, 1996 and the year ended
December 31, 1995 was as follows:
<CAPTION>
Six Months Ended Year Ended
June 30, 1996 December 31, 1995
--------------------------- ---------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Quantus I:
Sold............................208 $ 2,000
- -- --
Issued as reinvestment of
dividends.................... -- --
34,025 $ 301,120
Repurchased.....................(22,393 ) (214,572 )
(66,375 ) (556,503 )
------- ------- -
- ------ ---------
Net decrease....................(22,185 ) $(212,572 )
(32,350 ) $(255,383 )
------- ------- -
- ------ ---------
<CAPTION>
Six Months Ended Year Ended
June 30, 1996 December 31, 1995
--------------------------- ---------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Quantus II:
Repurchased..................... -- --
- -- --
------- ------- -
- ------ ---------
Net decrease.................... -- --
- -- --
------- ------- -
- ------ ---------
</TABLE>
-17-
7. CUSTODIAN, TRANSFER AGENT, DIVIDEND DISBURSING AGENT AND ADMINISTRATOR
Pursuant to a custody agreement, Boston Safe Deposit and Trust Company
("Boston Safe") serves as custodian for the Portfolios. Unified Advisers,
Inc. serves as the Trust's transfer agent and dividend disbursing agent.
First Data Investor Services Group, Inc. serves as the Trust's administrator.
Boston Safe and First Data Investor Services Group, Inc. have no part in
determining the investment policies of the Trust or which securities are to be
purchased or sold by either Portfolio. All fees and expenses of the
custodian, transfer agent, dividend disbursing agent and administrator are
paid by the individual Portfolios. During the six months ended June 30, 1996,
interest income of $43,947 was earned on time deposits with Boston Safe by
Quantus II.
8. SUBSEQUENT EVENT
As of July 10, 1996, all of the shares of beneficial interest of Quantus II
have been redeemed, and there presently are no shares of Quantus II issued or
outstanding. On June 20, 1996, the Board of Trustees voted to recommend to
shareholders that they approve the liquidation of Quantus I, such liquidation
to occur as soon as practicable following shareholder approval. A special
meeting of shareholders of Quantus I, for this purpose, is scheduled to take
place on August 29, 1996.
-18-
