CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SEMI-ANNUAL REPORT
(Unaudited)
April 30, 1997
1300 S.W. Sixth, P.O. Box 1350, Portland, OR 97207
<PAGE>
- -------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Period
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Fiscal Year Ended October 31,
April 30, 1997 ---------- ---------- ----------
(Unaudited)(1) 1996 1995 1994(1)(2)
-------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period......................... $35.95 $36.24 $34.48 $35.00
---------- ---------- ---------- ----------
Income from investment operations:
Net investment income.................................... 1.58 3.23 3.31 0.94
Net realized and unrealized gain (loss)
on investments......................................... 0.06 0.10 2.11 (0.52)
---------- ---------- ---------- ----------
Total from investment operations.................... 1.64 3.33 5.42 0.42
---------- ---------- ---------- ----------
Less distributions:
Dividends (from net investment income)................... (1.58) (3.23) (3.31) (0.94)
Distributions (from capital gains)....................... (0.39) (0.35)
---------- ---------- ---------- ----------
Total distributions................................. (1.58) (3.62) (3.66) (0.94)
---------- ---------- ---------- ----------
Net asset value, end of period.............................. $36.01 $35.95 $36.24 $34.48
========== ========== ========== ==========
Total return.................................................. 4.61%(3) 9.61% 16.49% 1.21%(3)
Ratios/Supplemental data
Net assets, end of period (in thousands)...................... $72,971 $69,614 $42,192 $9,602
Ratio of expenses to average net assets....................... .47% .50% .54% .54%
Ratio of net investment income to
average net assets......................................... 8.82% 8.90% 9.36% 9.86%
Portfolio turnover rate....................................... 102.13% 56.06% 45.64% 72.67%
<FN>
(1) Ratios and portfolio turnover rates are annualized.
(2) From inception of operations on July 6, 1994.
(3) Not annualized.
</FN>
</TABLE>
1
<PAGE>
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CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
April 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value (1)
------------ ------------
<S> <C> <C>
Corporate Bonds (96.0%)
Basic Industry (5.8%)
Chemicals (2.7%)
Freeport-McMoRan Resource Partners L.P.
Senior Subordinated Notes
8.750% 02/15/2004..............................................$ 1,950,000 $ 1,989,000
------------
Metals/Mining (3.1%)
Ryerson Tull, Inc.
Notes
8.500% 07/15/2001.............................................. 2,250,000 2,261,250
------------
Total Basic Industry..................................................... 4,250,250
------------
Consumer Related (26.7%)
Hotel/Gaming (15.0%)
California Hotel Finance Corp.
Guaranteed Senior Subordinated Notes
11.000% 12/01/2002.............................................. 1,750,000 1,806,875
HMH Properties, Inc.
Senior Secured Note
9.500% 05/15/2005.............................................. 1,900,000 1,938,000
Harrahs Operating, Inc.
Senior Subordinated Notes
10.875% 04/15/2002.............................................. 1,500,000 1,572,450
La Quinta Inns, Inc.
Senior Subordinated Notes
9.250% 05/15/2003.............................................. 1,850,000 1,886,260
Rio Hotel & Casino, Inc. (144A)
Senior Subordinated Notes
9.500% 04/15/2007.............................................. 1,700,000 1,674,500
Station Casinos, Inc.
Senior Subordinated Notes
9.625% 06/01/2003.............................................. 2,125,000 2,071,875
------------
10,949,960
------------
Healthcare (8.6%)
Abbey Healthcare Group, Inc.
Senior Subordinated Notes
9.500% 11/01/2002.............................................. 1,000,000 1,025,000
HEALTHSOUTH Rehabilitation Corp.
Senior Subordinated Notes
9.500% 04/01/2001.............................................. 1,200,000 1,254,000
Quorum Health Group, Inc.
Senior Subordinated Notes
8.750% 11/01/2005.............................................. 2,100,000 2,105,250
</TABLE>
2
<PAGE>
- --------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value (1)
------------ ------------
<S> <C> <C>
Corporate Bonds (Continued)
Tenet Healthcare Corp.
Senior Subordinated Notes
10.125% 03/01/2005..............................................$ 1,750,000 $ 1,872,500
------------
6,256,750
------------
Other (3.1%)
Westpoint Stevens, Inc.
Senior Subordinated Debenture
9.375% 12/15/2005.............................................. 2,200,000 2,255,000
------------
Total Consumer Related................................................... 19,461,710
------------
Energy (12.4%)
Gulf Canada Resources Ltd.
Subordinated Debentures
9.625% 07/01/2005.............................................. 2,000,000 2,110,000
Kelley Oil & Gas Corp.
Series B Senior Subordinated Notes
10.375% 10/15/2006.............................................. 1,400,000 1,400,000
Maxus Energy Corp.
Notes
9.875% 10/15/2002.............................................. 1,650,000 1,703,625
Noble Drilling Corp.
Senior Notes
9.250% 10/01/2003.............................................. 1,235,000 1,298,294
9.125% 07/01/2006.............................................. 700,000 738,500
Nuevo Energy Co.
Senior Subordinated Notes
9.500% 04/15/2006.............................................. 1,000,000 1,020,000
Santa Fe Energy Resource, Inc.
Senior Subordinated Debentures
11.000% 05/15/2004.............................................. 750,000 810,000
------------
Total Energy............................................................. 9,080,419
------------
Housing Related (5.4%)
USG Corp.
Series B Senior Notes
9.250% 09/15/2001.............................................. 1,700,000 1,780,750
Webb (Del E.) Corp.
Senior Subordinated Notes
9.750% 01/15/2008.............................................. 2,250,000 2,148,750
------------
Total Housing Related.................................................... 3,929,500
------------
</TABLE>
3
<PAGE>
- --------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value (1)
------------ ------------
<S> <C> <C>
Corporate Bonds (Continued)
Manufacturing (9.1%)
Mark IV Industries, Inc.
Senior Subordinated Notes
7.750% 04/01/2006..............................................$ 1,500,000 $ 1,435,860
Owens-Illinois, Inc.
Senior Subordinated Notes
10.000% 08/01/2002.............................................. 1,100,000 1,146,750
Rohr, Inc.
Senior Note
11.625% 05/15/2003............................................... 800,000 876,000
Titan Wheel International, Inc.
Senior Subordinated Notes
8.750% 04/01/2007.............................................. 1,300,000 1,300,000
Tracor, Inc. (144A)
Senior Subordinated Notes
8.500% 03/01/2007.............................................. 1,950,000 1,911,000
------------
Total Manufacturing...................................................... 6,669,610
------------
Media (21.6%)
American Radio Systems Corp.
Senior Subordinated Notes
9.000% 02/01/2006.............................................. 750,000 742,500
Chancellor Radio Broadcasting Co.
Senior Subordinated Notes
9.375% 10/01/2004.............................................. 750,000 742,500
Cinemark USA, Inc.
Series B Senior Subordinated Notes
9.625% 08/01/2008.............................................. 2,000,000 1,960,000
Heritage Media Corp.
Senior Subordinated Notes
8.750% 02/15/2006.............................................. 1,750,000 1,820,000
Hollinger International Publishing, Inc.
Senior Notes
8.625% 03/15/2005.............................................. 1,800,000 1,777,500
Jones Intercable, Inc.
Senior Notes
8.875% 04/01/2007.............................................. 1,500,000 1,447,500
Lenfest Communications, Inc.
Senior Secured Notes
8.375% 11/01/2005.............................................. 1,500,000 1,434,375
SFX Broadcasting, Inc.
Series B Senior Subordinated Notes
10.750% 05/15/2006.............................................. 2,250,000 2,356,875
</TABLE>
4
<PAGE>
- --------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value (1)
------------ ------------
<S> <C> <C>
Corporate Bonds (Continued)
Viacom, Inc.
Subordinated Debenture
8.000% 07/07/2006..............................................$ 2,000,000 $ 1,867,500
Young Broadcasting, Inc.
Guaranteed Senior Subordinated Notes
11.750% 11/15/2004.............................................. 1,500,000 1,612,500
------------
Total Media.............................................................. 15,761,250
------------
Retail (1.2%)
Other (1.2%)
Ethan Allen, Inc.
Senior Notes
8.750% 03/15/2001.............................................. 800,000 840,000
------------
Transportation (0.7%)
Other (0.7%)
Teekay Shipping Corp.
Gtd. 1st Pfd. Ship. Mtg. Notes
8.320% 02/01/2008.............................................. 500,000 490,000
------------
Utilities (8.7%)
Electrics (4.5%)
AES Corp.
Senior Subordinated Notes
10.250% 07/15/2006.............................................. 1,700,000 1,812,625
California Energy, Inc.
Senior Secured Note
9.875% 06/30/2003.............................................. 1,400,000 1,484,000
------------
3,296,625
------------
Telecommunications (4.2%)
MFS Communications, Inc.
Senior Discount Notes
Step-up Coupon
0.000% to 01/15/2001, then 8.875% to
01/15/2006...................................................... 2,000,000 1,517,060
Paging Network, Inc.
Senior Subordinated Notes
10.000% 10/15/2008.............................................. 1,750,000 1,557,500
------------
3,074,560
------------
Total Utilities.......................................................... 6,371,185
------------
</TABLE>
5
<PAGE>
- --------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value (1)
------------ ------------
<S> <C> <C>
Corporate Bonds (Continued)
Yankee (4.4%)
Argentina Republic
Unsubordinated Global Bond
11.000% 10/09/2006..............................................$ 1,500,000 $ 1,614,375
Mexico-United Mexican States
Global Bond
11.375% 09/15/2016.............................................. 1,500,000 1,580,625
------------
Total Yankee............................................................. 3,195,000
------------
Total Corporate Bonds
(Cost $69,749,813).................................................... 70,048,924
------------
Repurchase Agreement (3.3%)
Goldman Sachs Corp.
5.374% dated 04/30/1997,
due 05/01/1997 in the
amount of $2,431,696.
Collateralized by U.S. Treasury Bond
6.625% due 02/15/2027
(Cost $2,431,338).............................................. 2,431,338 2,431,338
------------
Total Investments (99.3%)
(Cost $72,181,151)......................................................... 72,480,262
Receivables less liabilities (0.7%)............................................. 490,312
------------
Net Assets (100.0%)............................................................. $ 72,970,574
============
(1) See Note 1 of Notes to Financial Statements.
The accompanying notes are an integral part of the financial statements.
</TABLE>
6
<PAGE>
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CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
April 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at identified cost .................................... $ 69,749,813
Investments at value (Notes 1 and 2)............................... $ 70,048,924
Temporary cash investment, at cost (Note 1)........................ 2,431,338
Receivable for:
Interest......................................................... 1,638,290
-------------
Total assets....................................................... 74,118,552
-------------
LIABILITIES:
Payable for:
Dividends and distributions...................................... 65,942
Investments purchased............................................ 1,043,984
Investment management fee (Note 4)............................... 25,575
Accrued expenses ................................................ 12,477
-------------
Total liabilities.................................................. 1,147,978
-------------
Net assets applicable to outstanding shares........................ $ 72,970,574
=============
Net assets consist of:
Unrealized appreciation on investments........................... $ 299,111
Undistributed net realized gain from investments................. 787,288
Capital paid in (Note 3)......................................... 71,884,175
-------------
$ 72,970,574
=============
Shares of capital stock outstanding (Note 3)......................... 2,026,189
=============
Net asset value, offering and
redemption price per share (1).................................... 36.01
=============
(1) The net asset value per share is computed by dividing net assets applicable
to outstanding shares by shares of capital stock outstanding.
The accompanying notes are an integral part of the financial statements.
</TABLE>
7
<PAGE>
- --------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
Six Months Ended April 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Income:
Interest...............................................................$ 3,597,649
-------------
Expenses:
Investment management fees (Note 4).................................... 155,638
Shareholder servicing costs (Note 4)................................... 9,144
Reports to shareholders................................................ 33
Financial information and subscriptions................................ 1,457
Custodian fees......................................................... 1,525
Bank transaction and checking fees..................................... 950
Registration fees...................................................... 115
Legal, insurance and auditing fees..................................... 11,390
Other (Note 4)......................................................... 1,009
Total expenses.................................................... 181,261
-------------
Net investment income (Note 1).............................................. 3,416,388
-------------
Realized gain and unrealized depreciation from
investment transactions:
Net realized gain from investments (Note 2)................................. 782,261
Net unrealized depreciation on investments during the period (Note 1)....... (882,913)
-------------
Net loss on investments (Note 1)............................................ (100,652)
-------------
Net increase in net assets resulting from operations........................$ 3,315,736
=============
The accompanying notes are an integral part of the financial statements.
</TABLE>
8
<PAGE>
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CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Fiscal Year
April 30,1997 Ended
(Unaudited) October 31, 1996
------------- ----------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income ................................................. $ 3,416,388 $ 4,779,488
Net realized gain from investments (Note 2)............................ 782,261 747,251
Change in net unrealized depreciation
on investments...................................................... (882,913) (226,346)
------------- -------------
Net increase in net assets resulting from operations................... 3,315,736 5,300,393
Distributions to shareholders:
From net investment income............................................. (3,416,388) (4,779,488)
From net realized gain from investment transactions.................... (742,224)
Capital share transactions, net (Note 3).................................... 3,457,549 27,643,483
------------- -------------
Net increase in net assets............................................. 3,356,897 27,422,164
NET ASSETS:
Beginning of period......................................................... 69,613,677 42,191,513
------------- -------------
End of period .............................................................. $ 72,970,574 $ 69,613,677
============= =============
The accompanying notes are an integral part of the financial statements.
</TABLE>
9
<PAGE>
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS
(Information for the six months ended April 30, 1997 is unaudited)
- --------------------------------------------------------------------------------
1. Significant accounting policies:
CMC High Yield Fund (the Fund) is a portfolio of CMC Fund Trust (the
Trust), an open-end diversified investment company registered under the
Investment Company Act of 1940, as amended. The Trust has established two other
portfolios, CMC Small Cap Fund and CMC International Stock Fund. Each portfolio
issues a separate series of the Trust's shares and maintains a separate
investment portfolio. The policies described below are consistently followed by
the Fund for the preparation of its financial statements in conformity with
generally accepted accounting principles.
Investment valuation - The Fund's investments are carried at values
deemed best to reflect their fair values as determined in good faith by or under
the supervision of the Trustees. These values are based on market value as
quoted by dealers who are market makers in these securities or by an independent
pricing service unless unusual circumstances indicate that another method of
determining fair value should be considered. Market values are based on the
average of bid and ask prices, or by reference to other securities with
comparable ratings, interest rates and maturities. Temporary investments in
short-term securities, principally repurchase agreements, are valued at cost,
which approximates market.
Shareholder distributions - The Fund distributes net investment income
monthly and any net realized gains from investment transactions annually.
Distributions to shareholders are recorded on the record date.
Income 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 for net
operating losses and deferral of losses from wash sales.
Use of estimates - The preparation of the financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses during
the reporting period. Actual results could differ from those estimates.
Federal income taxes - The Fund has made no provisions for federal income
taxes on net investment income or net realized gains from sales of investment
securities, since it is the intention of the Fund to comply with the provisions
of the Internal Revenue Code available to certain regulated investment
companies, and to make distributions of income and security profits sufficient
to relieve it from substantially all federal income taxes.
Other - Investment transactions are accounted for on the date the
investments are purchased or sold. The cost of investments sold is determined by
the use of the specific identification method for both financial reporting and
income tax purposes. Interest income is recorded on the accrual basis. Realized
gains and losses from investment transactions and unrealized appreciation or
depreciation of investments are reported on the basis of identified costs. The
Fund, through its custodian, receives delivery of underlying securities
collateralizing repurchase agreements (included in temporary cash investments).
Market values of these securities are required to be at least 100% of the cost
of the repurchase agreement. The Fund's investment advisor determines that the
value of the underlying securities is at all times at least equal to the resale
price. In the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral may be subject to
legal proceedings.
The Fund invests in lower rated debt securities, which may be more
susceptible to adverse economic conditions than other investment grade holdings.
These securities are often subordinated to the prior claims of other senior
lenders, and uncertainties exist as to an issuer's ability to meet principal and
interest payments. At April 30, 1997, 100% of the Fund's portfolio was invested
in securities rated Ba (52%) or B (48%) by Moody's Investor Services, Inc.
10
<PAGE>
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CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS, CONTINUED
- --------------------------------------------------------------------------------
2. Investment transactions:
Aggregate purchases, sales and maturities, net realized gain and unrealized
appreciation of investments excluding temporary cash investments, as of and for
the period ended April 30, 1997, were as follows:
<TABLE>
<CAPTION>
<S> <C>
Purchases:
Investment securities other than U.S. Government obligations................. $ 34,397,442
U.S. Government obligations.................................................. 6,322,305
-------------
Total purchases......................................................... $ 40,719,747
=============
Sales and Maturities:
Investment securities other than U.S. Government obligations................. $ 30,947,361
U.S. Government obligations.................................................. 6,978,523
-------------
Total sales and maturities.............................................. $ 37,925,884
=============
Net Realized Gain (loss):
Investment securities other than U.S. Government obligations................. $ 911,245
U.S. Government obligations.................................................. (128,984)
-------------
Total net realized gain................................................. $ 782,261
=============
Unrealized Appreciation (Depreciation) as of April 30, 1997:
Appreciation.................................................................. $ 1,143,116
Depreciation.................................................................. (844,005)
-------------
Net unrealized appreciation............................................. $ 299,111
=============
Unrealized Appreciation (Depreciation) for federal income tax purposes as of
April 30, 1997:
Appreciation.................................................................. $ 1,138,447
Depreciation.................................................................. (844,005)
-------------
Net unrealized appreciation................................................. $ 294,442
=============
For federal income tax purposes, the cost of investments owned at April 30, 1997 $ 69,754,482
=============
</TABLE>
11
<PAGE>
- --------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS, CONTINUED
- --------------------------------------------------------------------------------
3. Capital Stock:
<TABLE>
<CAPTION>
Fiscal Year Fiscal Year
Ended Ended
April 30, 1997 October 31, 1996
--------------- ----------------
<S> <C> <C>
Shares:
Shares sold................................................................ 788,648 1,124,256
Shares issued for reinvestment of dividends................................ 87,285 145,259
--------------- ----------------
875,933 1,269,515
Less shares redeemed....................................................... (785,995) (497,533)
--------------- ----------------
Net increase in shares..................................................... 89,938 771,982
=============== ================
Amounts:
Sales......................................................................$ 28,775,000 $ 40,435,000
Reinvestment of dividends.................................................. 3,172,950 5,234,319
--------------- ----------------
31,947,950 45,669,319
Less redemptions........................................................... (28,490,401) (18,025,836)
--------------- ----------------
Net increase...............................................................$ 3,457,549 $ 27,643,483
=============== ================
Capital stock authorized (shares) 100,000,000
4. Transactions with affiliates and related parties:
Investment management fees incurred............................................................ $155,638
Investment management fee
computation basis (percentage of daily net assets
per annum)................................................................................... 40.of.1%
Transfer agent fee (included in shareholder
servicing costs)............................................................................. $9,000
Fees earned by trustees not affiliated with the Fund's
investment advisor or transfer agent (included in other expenses)............................ $551
</TABLE>
The investment advisor of the Fund is Columbia Management Co. The transfer agent
for the Fund is Columbia Trust Company, a subsidiary of Columbia Funds
Management Company. The transfer agent is compensated based on a per account fee
or a minimum of $1,500 per month. The contracts for investment advisory and
transfer agent services must be renewed annually by a majority vote of the
Fund's shareholders or by the Trustees of CMC Fund Trust. Certain officers and
trustees of CMC Fund Trust are also officers and directors of Columbia
Management Co., Columbia Trust Company and Columbia Funds Management Company.
They did not receive any direct payments from the Fund.
12
<PAGE>
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
SEMI-ANNUAL REPORT
(Unaudited)
April 30, 1997
1300 S.W. Sixth, P.O. Box 1350, Portland, OR 97207
<PAGE>
- -------------------------------------------------------------------------------
CMC Fund Trust
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Period
- -------------------------------------------------------------------------------
CMC SMALL CAP FUND
<TABLE>
<CAPTION>
Six Months
Ended Fiscal Year Ended October 31,
April 30, 1997 ---------- ---------- ---------- ---------- ----------
(Unaudited)(1) 1996 1995 1994 1993 1992
-------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period............... $52.04 $56.00 $49.35 $56.44 $50.68 $49.53
---------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss)................... 0.05 (0.08) 0.22 0.18 0.10 0.03
Net realized and unrealized gains (losses)
on investments............................... (2.77) 16.79 10.88 1.99 15.50 2.72
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations.......... (2.72) 16.71 11.10 2.17 15.60 2.75
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends (from net investment income)......... (0.16) (0.17) (0.10) (0.03)
Dividends (in excess of net
investment income)........................... (0.01)
Distributions (from capital gains)............. (20.67) (4.25) (8.99) (9.74) (1.57)
Distributions (in excess of capital gains)..... (0.04) (0.09)
---------- ---------- ---------- ---------- ---------- ----------
Total distributions....................... 0.00 (20.67) (4.45) (9.26) (9.84) (1.60)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period..................... $49.32 $52.04 $56.00 $49.35 $56.44 $50.68
========== ========== ========== ========== ========== ==========
Total return ...................................... -5.23%(2) 30.30% 22.55% 3.87% 30.87% 5.54%
Ratios/Supplemental data
Net assets, end of period (in thousands)........... $348,003 $522,408 $537,167 $467,952 $492,905 $411,263
Ratio of expenses to average net assets............ 0.77% 0.78% 0.77% 0.78% 0.79% 0.80%
Ratio of net investment income (loss) to
average net assets.............................. 0.15% (.14)% 0.43% 0.29% 0.17% 0.06%
Portfolio turnover rate............................ 121.32% 147.77% 125.80% 97.24% 64.39% 56.02%
Average commission rate paid on
portfolio transactions (3) ..................... $0.0548 $0.0539
<FN>
(1) Ratios and portfolio turnover rate are annualized.
(2) Not annualized.
(3) The average commission rate paid by the fund is computed by dividing the
total dollar amount of commissions paid during the period by the total
number of shares purchased and sold during the period for which commissions
were charged.
</FN>
</TABLE>
1
<PAGE>
- -------------------------------------------------------------------------------
CMC Fund Trust
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Period
- -------------------------------------------------------------------------------
CMC INTERNATIONAL STOCK FUND
<TABLE>
<CAPTION>
Six Months
Ended Fiscal Year Ended October 31,
April 30, 1997 ---------- ---------- ----------
(Unaudited)(1) 1996 1995 1994(1)(2)
-------------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period...................... $42.46 $37.06 $39.51 $40.00
-------------- ---------- ---------- ----------
Income from investment operations:
Net investment income................................ 0.15 0.32 0.39 0.10
Net realized and unrealized gains (losses)
on investments and foreign currency
transactions....................................... 4.33 5.86 (2.64) (0.59)
-------------- ---------- ---------- ----------
Total from investment operations.............. 4.48 6.18 (2.25) (0.49)
-------------- ---------- ---------- ----------
Less distributions:
Dividends (from net investment income)............... (0.78) (0.19)
Dividends (in excess of net
investment income)................................. (0.01)
-------------- ---------- ---------- ----------
Total distributions........................... 0.00 (0.78) (0.20) 0.00
-------------- ---------- ---------- ----------
Net asset value, end of period............................ $46.94 $42.46 $37.06 $39.51
============== ========== ========== ==========
Total return.............................................. 10.55%(3) 16.67% -5.69% -1.23%(3)
Ratios/Supplemental data
Net assets, end of period (in thousands).................. $94,550 $73,542 $68,758 $84,298
Ratio of expenses to average net assets................... 1.00% 1.00% 0.98% 1.16%
Ratio of net investment income to
average net assets..................................... 0.79% 0.78% 0.99% 0.53%
Portfolio turnover rate................................... 97.43% 119.98% 158.32% 123.80%
Average commission rate paid on
portfolio transactions (4) ............................ $0.0029 $0.0012
<FN>
(1) Ratios and portfolio turnover rate are annualized.
(2) From inception of operations on February 1, 1994.
(3) Not annualized.
(4) The average commission rate paid by the fund is computed by dividing the
total dollar amount of commissions paid during the period by the total
number of shares purchased and sold during the period for which commissions
were charged.
</FN>
</TABLE>
2
<PAGE>
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CMC SMALL CAP FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
April 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------ ------------
<S> <C> <C>
Common Stocks (71.1%)
Aerospace (1.2%)
* Orbital Sciences Corp............................................... 281,300 $ 4,149,175
------------
Finance (6.0%)
* Glendale Federal Bank FSB........................................... 175,300 4,360,587
* HomeSide, Inc....................................................... 153,400 2,454,400
* Insignia Financial Group, Inc. (Class A)............................ 266,500 4,663,750
North Fork Bancorp, Inc............................................. 161,300 6,391,512
PennCorp Financial Group, Inc....................................... 87,700 3,014,688
------------
20,884,937
------------
Business & Consumer Services (5.1%)
* AccuStaff, Inc...................................................... 175,300 3,199,225
* Billing Information Concepts Corp................................... 127,100 3,034,512
* CorVel Corp......................................................... 70,300 1,748,712
Danka Business Systems plc ADR...................................... 83,900 2,564,194
* DST Systems, Inc.................................................... 138,900 3,941,288
* Envoy Corp.......................................................... 68,600 1,432,025
* Romac International, Inc............................................ 41,000 799,500
* Walsh International, Inc............................................ 138,800 1,214,500
------------
17,933,956
------------
Chemical (1.5%)
* TETRA Technologies, Inc............................................. 222,600 5,175,450
------------
Consumer Durable (1.1%)
* Tower Automotive, Inc............................................... 100,000 3,700,000
-------------
Consumer Non-Durable (10.7%)
* Bed, Bath & Beyond, Inc............................................. 125,100 3,424,612
* Borders Group, Inc.................................................. 209,400 4,449,750
CKE Restaurants, Inc................................................ 100,000 1,962,500
Claire's Stores, Inc................................................ 200,000 3,825,000
* Foodmaker, Inc...................................................... 200,000 2,175,000
* General Nutrition Cos., Inc......................................... 212,300 4,564,450
Harman International Industries, Inc................................ 40,175 1,536,694
K2, Inc............................................................. 198,700 5,191,038
* Nine West Group, Inc................................................ 120,000 4,755,000
* Williams-Sonoma, Inc................................................ 176,000 5,456,000
-------------
37,340,044
-------------
Energy (5.6%)
* Abacan Resource Corp................................................ 143,100 921,206
* Barrett Resources Corp.............................................. 70,600 2,312,150
* Cairn Energy USA, Inc............................................... 351,100 3,905,987
Enron Global Power & Pipelines L.L.C................................ 87,700 2,587,150
</TABLE>
3
<PAGE>
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CMC SMALL CAP FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------ ------------
<S> <C> <C>
Common Stocks (Continued)
* Flores & Rucks, Inc................................................. 76,300 $ 3,328,588
* Gulf Canada Resources, Ltd.......................................... 464,600 3,774,875
* Swift Energy Co..................................................... 122,800 2,594,150
------------
19,424,106
------------
Energy Services (4.0%)
* BJ Services Co...................................................... 75,000 3,534,375
* Nabors Industries, Inc.............................................. 263,000 4,931,250
* Veritas DGC, Inc.................................................... 81,900 1,576,575
* Weatherford Enterra, Inc............................................ 125,300 3,978,275
------------
14,020,475
------------
Entertainment & Media (1.1%)
* Golden Books Family Entertainment, Inc.............................. 175,300 1,446,225
* WMS Industries, Inc................................................. 131,500 2,350,562
------------
3,796,787
------------
Health (11.1%)
* Assisted Living Concepts, Inc....................................... 102,900 2,263,800
* Dura Pharmaceuticals, Inc........................................... 188,700 5,472,300
* HealthCare COMPARE Corp............................................. 87,700 3,803,987
* ICOS Corp........................................................... 146,600 1,017,037
* Ligand Pharmaceuticals, Inc. (Class B).............................. 127,200 1,303,800
* Medic Computer Systems, Inc......................................... 115,500 1,804,687
* MedPartners, Inc.................................................... 200,000 3,650,000
* OccuSystems, Inc.................................................... 200,200 4,129,125
* Phamis, Inc......................................................... 173,000 3,070,750
* Protein Design Labs, Inc............................................ 26,500 665,813
* Thermedics, Inc..................................................... 415,100 6,952,925
* Thermotrex Corp..................................................... 72,700 1,354,038
* Visible Genetics, Inc............................................... 60,000 247,500
Vital Signs, Inc.................................................... 149,000 2,831,000
------------
38,566,762
------------
Hotels & Gaming (1.4%)
Hilton Hotels Corp.................................................. 182,300 4,922,100
------------
Machinery & Capital Spending (0.6%)
* Jacobs Engineering Group, Inc....................................... 78,100 1,991,550
------------
Metal Mining & Steel (1.1%)
* Getchell Gold Corp.................................................. 66,700 2,559,613
* Meridian Gold, Inc. (Installment Receipts) (144A)................... 500,000 1,449,225
------------
4,008,838
------------
</TABLE>
4
<PAGE>
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CMC SMALL CAP FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------ ------------
<S> <C> <C>
Common Stocks (Continued)
Pollution Control (2.6%)
* Cuno, Inc........................................................... 202,600 $ 2,811,075
Memtec Ltd. ADR..................................................... 87,700 2,028,063
* United Waste Systems, Inc........................................... 89,500 3,020,625
* USA Waste Services, Inc............................................. 32,700 1,070,925
------------
8,930,688
------------
Technology (15.1%)
* Actel Corp.......................................................... 281,100 5,024,662
* Acxiom Corp......................................................... 295,000 3,871,875
* American Management Systems, Inc.................................... 56,150 1,389,712
* American Power Conversion Corp...................................... 190,000 3,657,500
* Ascend Communications, Inc.......................................... 55,000 2,516,250
* AXENT Technologies, Inc............................................. 87,700 1,019,512
* Computer Products, Inc.............................................. 131,500 2,251,938
* Eltron International, Inc........................................... 59,800 1,196,000
* Engineering Animation, Inc.......................................... 95,700 2,201,100
* FORE Systems, Inc................................................... 100,000 1,525,000
* Geoworks............................................................ 62,800 455,300
* JDA Software Group, Inc............................................. 141,700 3,577,925
* MICROS Systems, Inc................................................. 178,600 6,005,425
* P-COM, Inc.......................................................... 145,500 4,164,938
* Proxim, Inc......................................................... 149,500 3,008,688
* RadiSys Corp........................................................ 17,200 505,250
* Saville Systems plc ADR............................................. 43,000 1,768,375
* SPSS, Inc........................................................... 96,500 2,557,250
* Transition Systems, Inc............................................. 175,300 2,103,600
* Trident Microsystems, Inc........................................... 90,200 1,217,700
* Veritas Software Corp............................................... 81,100 2,726,988
------------
52,744,988
------------
Transportation (1.7%)
* American Freightways Corp........................................... 12,300 173,737
* Consolidated Freightways Corp....................................... 86,600 952,600
CNF Transportation, Inc............................................. 60,800 1,808,800
Werner Enterprises, Inc............................................. 151,500 2,897,438
------------
5,832,575
------------
Utilities/Communications (1.2%)
* Anicom, Inc......................................................... 490,300 4,044,975
------------
Total Common Stocks
(Cost $243,737,455)............................................... 247,467,406
------------
</TABLE>
5
<PAGE>
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CMC SMALL CAP FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------ ------------
<S> <C> <C>
Repurchase Agreements (30.5%)
Goldman Sachs Corp.
5.374% dated 04/30/1997,
due 05/01/1997 in the
amount of $37,678,258.
Collateralized by U.S. Treasury Bond
6.625% due 02/15/2027............................................$ 37,672,711 $ 37,672,711
J.P. Morgan Securities, Inc.
5.428% dated 04/30/1997,
due 05/01/1997 in the
amount of $34,305,101.
Collateralized by U.S. Treasury Bill
0.000% due 08/28/1997,
U.S. Treasury Bond
6.250% due 08/15/2023,
U.S. Treasury Note
6.375% due 05/15/1999............................................ 34,300,000 34,300,000
Merrill Lynch, Inc.
5.374% dated 04/30/1997,
due 05/01/1997 in the
amount of $34,305,050.
Collateralized by U.S. Treasury Strips
due 05/15/1997 to 08/15/2017..................................... 34,300,000 34,300,000
------------
Total Repurchase Agreements
(Cost $106,272,711).............................................. 106,272,711
------------
Total Investments (101.6%)
(Cost $350,010,166)........................................................ 353,740,117
Receivables less liabilities (-1.6%)............................................ (5,736,619)
------------
Net Assets (100.0%)............................................................. $348,003,498
============
(1) See Note 1 of Notes to Financial Statements.
*Non-Income Producing
The accompanying notes are an integral part of the financial statements.
</TABLE>
6
<PAGE>
- --------------------------------------------------------------------------------
CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
April 30,1997
(Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------ ------------
<S> <C> <C>
Common Stocks (83.8%)
Australia (0.0%)
Reinsurance Australia Corp., Ltd. (Insurance)....................... 8,058 $ 24,934
------------
Brazil (0.3%)
Usinas Siderurgicas de Minas Gerais SA, ADR
(Metals, Mining & Steel).......................................... 25,000 290,625
------------
Canada (2.4%)
Bank of Nova Scotia (Banking)....................................... 11,000 417,627
Bombardier, Inc. (Class B)
(Manufacturing - Diversified Inds.)............................... 45,000 911,400
Northern Telecom Ltd. (Electronics)................................. 10,000 727,117
Thomson Corp. (Publishing).......................................... 10,000 208,259
------------
2,264,403
------------
Czech Republic (0.2%)
* Central European Media Enterprises Ltd. (Class A) (Media). 6,200 175,925
------------
Denmark (0.9%)
Danisco AS (Food & Beverages)....................................... 9,000 521,731
* Inwear Group AS (Retail)............................................ 8,500 368,915
------------
890,646
------------
Finland (1.1%)
Finnlines Oy (Transportation)....................................... 20,000 504,205
Merita Ltd. (Class A) (Banking)..................................... 165,000 542,982
------------
1,047,187
------------
France (6.5%)
Alcatel Alsthom SA (Electrical Equipment)........................... 2,100 233,413
AXA-UAP (Insurance)................................................. 9,000 553,502
BIC SA (Consumer Products).......................................... 4,000 633,670
Carrefour SA (Retail)............................................... 700 436,856
Cie de Saint Gobain SA (Building Materials)......................... 2,000 267,854
Cie Financiere de Paribas SA (Banking).............................. 4,100 258,471
Cie Francaise d'Etudes et de Construction Technip
(Construction).................................................... 2,100 221,904
Cie Generale des Eaux (Conglomerates)............................... 4,000 556,945
Cie Generale des Etablissements Michelin (Class B).................. 7,000 390,940
Cipe France SA (Business Services).................................. 1,100 154,479
Elf-Aquitaine SA (Oil Exploration & Production)..................... 5,000 484,672
Lafarge SA (Building Materials)..................................... 4,300 281,904
L'Oreal SA (Consumer Products)...................................... 1,800 638,431
Sodexho Alliance SA (Food & Beverages).............................. 1,000 458,983
Synthelabo SA (Pharmaceuticals)..................................... 4,500 535,623
------------
6,107,647
------------
</TABLE>
7
<PAGE>
- --------------------------------------------------------------------------------
CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------ ------------
<S> <C> <C>
Common Stocks (Continued)
Germany (6.7%)
Bayer AG (Chemicals)................................................ 20,000 $ 796,072
* Daimler-Benz AG (Motor Vehicles & Parts)............................ 6,000 445,754
Deutsche Bank AG (Banking).......................................... 17,000 897,631
* Fresenius Medical Care AG
(Medical Products & Supplies)..................................... 5,500 482,005
Gehe AG (Wholesale Distributor)..................................... 11,000 732,062
Heidelberger Zement AG (Building Materials)......................... 2,500 204,073
Mannesmann AG (Machinery & Capital Spending).................... 1,670 657,002
SGL Carbon AG (Metals, Mining & Steel).............................. 7,700 1,074,263
Thyssen AG (Metals, Mining & Steel)................................. 2,000 436,164
Volkswagen AG (Motor Vehicles & Parts).............................. 950 604,246
------------
6,329,272
------------
Hong Kong (5.2%)
COSCO Pacific Ltd. (Container Leasing).............................. 726,000 1,016,925
Guangnan Holdings (Wholesale Distributor)........................... 1,257,142 1,809,596
HSBC Holdings plc (Banking)......................................... 76,000 1,923,057
Qingling Motors Co. Ltd. (Class H)
(Motor Vehicles & Parts).......................................... 370,000 203,008
------------
4,952,586
------------
India (2.9%)
Bajaj Auto Ltd., GDR (Motor Vehicles & Parts)....................... 12,000 394,500
Indian Hotels Co., Ltd., The, GDR
(Entertainment & Leisure)......................................... 21,650 514,187
* Industrial Credit & Investment Corp. of India Ltd.,
The, GDR (Financial Services)..................................... 21,600 217,620
Larsen & Toubro Ltd., GDR (Engineering & Construction).............. 16,650 237,263
Tata Engineering & Locomotive Co., Ltd., GDS
(Motor Vehicles & Parts).......................................... 30,000 364,500
* Videsh Sanchar Nigam Ltd., GDR
* (Utilities - Communication)....................................... 50,000 980,000
------------
2,708,070
------------
Italy (0.7%)
Fiat S.p.A (Motor Vehicles & Parts)................................. 200,000 662,104
------------
Japan (23.8%)
Bellsystem 24, Inc. (Business Services)............................. 1,600 196,690
BRIDGESTONE CORP. (Motor Vehicles & Parts)......................... 17,000 361,702
CANON, INC. (Electronics)........................................... 35,000 830,181
DENSO CORP. (Motor Vehicles & Parts)................................ 17,000 387,155
East Japan Railway Co. (Transportation)............................. 110 475,887
Fuji Photo Film Co., Ltd. (Entertainment & Leisure)................. 25,000 955,477
Hitachi Maxell Ltd. (Electronics)................................... 40,000 841,608
</TABLE>
8
<PAGE>
- --------------------------------------------------------------------------------
CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------ ------------
<S> <C> <C>
Common Stocks (Continued)
HOYA Corp. (Manufacturing).......................................... 15,000 $ 687,943
Isetan Co., Ltd. (Retail)........................................... 20,000 220,646
KEYENCE CORP. (Electronics)......................................... 4,400 537,431
KOMATSU LTD. (Machinery & Capital Spending)..................... 65,000 475,335
KUBOTA CORP. (Machinery & Capital Spending)...................... 25,000 115,445
Laox Co., Ltd. (Retail)............................................. 17,000 202,285
MABUCHI MOTOR CO., LTD. (Electrical Equipment)................ 5,000 253,349
Matsushita-Kotobuki Electronics Inds., Ltd. (Electronics)....... 25,000 797,872
Mitsubishi Corp. (Wholesale Distributor)............................ 35,000 328,211
Mitsubishi Estate Co., Ltd. (Real Estate)........................... 37,000 466,509
Mitsubishi Heavy Inds., Ltd.
(Machinery & Capital Spending).................................... 86,000 567,912
MITSUI & CO., LTD. (Wholesale Distributor).......................... 70,000 534,516
Mitsui Fudosan Co., Ltd. (Real Estate).............................. 54,000 617,021
NEC Corp. (Electronics)............................................. 70,000 855,004
Nintendo Co., Ltd. (Entertainment & Leisure)........................ 12,000 870,922
NIPPON STEEL CORP. (Metals, Mining & Steel)......................... 180,000 513,475
NIPPON TELEGRAPH & TELEPHONE CORP.
(Utilities - Communication)...................................... 42 296,218
NKK CORP. (Metals, Mining & Steel).................................. 139,000 300,126
Nomura Securities Co., Ltd., The (Financial Services)............... 22,000 246,178
NTT Data Communications Systems Corp.
(Business Services)............................................... 23 672,419
ROHM CO., LTD. (Electronics)........................................ 10,000 775,414
SANKYO CO., LTD. (Pharmaceuticals).................................. 23,000 616,233
SEVEN-ELEVEN JAPAN CO., LTD. (Retail)............................... 13,000 824,665
SHIMAMURA CO., LTD. (Retail)........................................ 14,700 432,081
Shiseido Co., Ltd. (Consumer Products).............................. 60,000 860,520
SONY CORP. (Electronics)............................................ 26,000 1,893,144
TDK CORP. (Electronics)............................................. 8,000 576,832
Takeda Chemical Inds., Ltd. (Pharmaceuticals)....................... 27,000 623,404
Tokyo Electron Ltd. (Electronics)................................... 12,100 467,218
TOKYO STEEL MANUFACTURING CO., LTD.
(Metals, Mining & Steel).......................................... 53,000 568,006
TOYOTA MOTOR CORP. (Motor Vehicles & Parts)......................... 30,000 869,977
TRANS COSMOS, INC. (Business Services).............................. 6,000 155,556
USHIO, INC. (Electronics)........................................... 16,000 187,865
------------
22,458,432
------------
Korea (0.4%)
* CITC Seoul Excel Trust, IDR (Investment Trust)...................... 58,000 408,900
------------
Malaysia (2.0%)
* Konsortium Perkapalan Berhad (Transportation)....................... 50,000 296,813
</TABLE>
9
<PAGE>
- --------------------------------------------------------------------------------
CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------ ------------
<S> <C> <C>
Common Stocks (Continued)
Malayan Banking Berhad (Banking).................................... 75,000 $ 747,012
Tenaga Nasional Berhad (Utilities - Electric)....................... 118,000 545,339
United Engineers of Malaysia Ltd. Berhad (Construction)............. 45,000 319,123
------------
1,908,287
------------
Netherlands (5.4%)
ABN Amro Holding NV (Banking)....................................... 5,000 343,774
Aegon NV (Insurance)................................................ 12,547 889,081
Akzo Nobel NV (Chemicals)........................................... 2,600 335,096
Elsevier NV (Publishing)............................................ 42,000 672,863
Koninklijke Pakhoed NV (Certificates)
(Oil Equipment & Services)........................................ 11,000 358,665
NBM-Amstelland NV (Construction).................................... 14,000 336,431
NV Verenidge Bedrijven Nutricia (Certificates)
(Food & Beverages)................................................ 3,214 487,835
Royal Dutch Petroleum Co. (Oil Exploration & Production)............ 7,000 1,251,553
Vendex International NV (Certificates) (Retail)..................... 8,065 383,062
------------
5,058,360
------------
Norway (0.2%)
Smedvig ASA (Class A) (Oil Equipment & Services).................... 9,000 214,939
------------
Spain (3.0%)
Banco Bilbao Vizcaya SA (Banking)................................... 11,000 741,167
* Catalana Occidente SA de Seguros y Reaseguros
(Insurance)......................................................... 4,000 210,353
Repsol SA, ADR (Oil Exploration & Production)....................... 35,000 1,465,625
Telefonica de Espana SA, ADR (Utilities - Communication)............ 6,000 462,000
------------
2,879,145
------------
Sweden (1.6%)
Assa Abloy AB (Class B)
(Manufacturing Consumer & Industrial Products)................... 19,000 371,974
* Pricer AB, New (Series B) (Electronics)............................. 616 19,327
* Scandic Hotels AB (Entertainment & Leisure)......................... 25,000 417,698
SSAB Svenskt Stal AB (Class B) (Metals, Mining & Steel)..... 18,000 320,256
Telefonaktiebolaget LM Ericsson, ADR (Electronics).................. 12,000 403,500
------------
1,532,755
------------
Switzerland (3.1%)
ABB AG (Bearer) (Electrical Equipment).............................. 460 557,623
Adecco SA (Bearer) (Business Services).............................. 1,200 400,951
* Ciba Spezialitaetenchemie AG (Bearer) (Chemicals)................... 3,960 341,542
Forbo Holding AG (Registered) (Manufacturing)....................... 800 322,716
* Novartis AG (Bearer) (Pharmaceuticals).............................. 960 1,266,092
------------
2,888,924
------------
</TABLE>
10
<PAGE>
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CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------ ------------
<S> <C> <C>
Common Stocks (Continued)
Taiwan (1.6%)
Cathay Life Insurance Co., Ltd. (Insurance)......................... 17,000 $ 101,483
China Development Corp. (Banking)................................... 97,000 403,582
Far Eastern Department Stores Ltd. (Retail)......................... 150,000 269,175
First Commercial Bank (Banking).................................... 33,000 141,480
Formosa Plastic Corp. (Chemicals)................................... 120,000 299,566
President Enterprises Corp. (Food & Beverages)...................... 165,000 292,511
------------
1,507,797
------------
United Kingdom (15.8%)
Associated British Foods plc (Food & Beverages)..................... 38,000 328,419
Bank of Scotland (Banking).......................................... 66,000 395,970
Barclays plc (Banking).............................................. 32,408 603,269
British Aerospace plc (Aircraft & Aerospace)........................ 45,000 956,604
British Petroleum Co. plc (Oil Exploration & Production)............ 167,000 1,917,197
British Sky Broadcasting Group plc (Media).......................... 18,000 165,928
British Telecommunications plc (Utilities - Communication)....... 35,000 256,805
Compass Group plc (Restaurants)..................................... 68,000 748,679
Electrocomponents plc (Electronics)................................. 56,305 360,629
Glaxo Wellcome plc (Pharmaceuticals)................................ 16,000 314,830
Granada Group plc (Entertainment & Leisure)......................... 40,410 583,171
Hays plc (Business Services)........................................ 68,400 606,127
Next plc (Retail)................................................... 70,900 748,993
PizzaExpress plc (Restaurants)...................................... 23,000 256,773
Provident Financial plc (Financial Services)........................ 76,000 703,666
Prudential Corp. plc (Insurance).................................... 43,908 427,537
Railtrack Group plc (Part. Paid Certificates)
(Transportation).................................................. 50,000 377,404
Rentokil Initial plc (Business Services)............................ 52,000 341,066
Sage Group plc, The (Business Services)............................. 40,000 416,077
Siebe plc (Machinery & Capital Spending)............................ 38,102 563,455
Smiths Industries plc (Manufacturing - Diversified Inds.)........ 21,000 257,259
Smithkline Beecham plc (Pharmaceuticals)............................ 70,000 1,125,402
Standard Chartered plc (Banking).................................... 36,000 544,921
Wetherspoon, J.D. plc (Restaurants)................................. 13,075 246,993
WPP Group plc (Business Services)................................... 200,000 818,858
Zeneca Group plc (Pharmaceuticals).................................. 28,000 844,250
------------
14,910,282
------------
Total Common Stocks
(Cost $68,414,340)................................................ 79,221,220
------------
</TABLE>
11
<PAGE>
- --------------------------------------------------------------------------------
CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------ ------------
<S> <C> <C>
Preferred Stocks (5.6%)
Brazil (5.0%)
Bardella Industrias Mecanicas SA
(Manufacturing - Diversified Inds.)............................... 3,000 $ 366,748
Cia Cervejaria Brahma SA (Food & Beverages)......................... 1,009,000 686,488
Cia Paranaense de Energi SA (Class B)
(Utilities - Electric)............................................ 32,000,000 499,530
Cia Tecidos do Norte de Minas SA (Textiles)......................... 1,000,000 419,410
DIXIE TOGA SA (Containers).......................................... 233,000 175,287
Petroleo Brasileiro SA (Oil Exploration & Production)............... 3,800,000 798,665
Telecommunicacoes Brasileiras SA
(Utilities - Communication)....................................... 15,500,000 1,778,258
------------
4,724,386
------------
Germany (0.6%)
Porsche AG (Motor Vehicles & Parts)................................. 450 584,922
------------
Total Preferred Stocks
(Cost $4,079,620)................................................. 5,309,308
------------
Rights (0.0%)
Germany (0.0%)
* Daimler-Benz AG (05/15/1997) (Motor Vehicles & Parts)............... 6,000 520
------------
Total Rights
(Cost $0).......................................................... 520
------------
Warrants (0.4%)
Germany (0.0%)
* Veba AG (04/06/1998) (Utilities - Electric)......................... 50 14,500
------------
Japan (0.4%)
* Kyocera Corp. #2 (01/23/1998) (Electronics)......................... 470 352,500
* Mr. Max Corp. (02/17/1998) (Retail)................................. 5,000 0
------------
352,500
------------
Total Warrants
(Cost $785,502)................................................... 367,000
------------
Total investments, excluding temporary cash investment
(Cost $73,279,462)................................................ 84,898,048
------------
</TABLE>
12
<PAGE>
- --------------------------------------------------------------------------------
CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value(1)
------------ ------------
<S> <C> <C>
Repurchase Agreements (9.9%)
Goldman Sachs Corp.
5.374% dated 04/30/1997,
due 05/01/1997 in the
amount of $4,687,428
Collateralized by U.S. Treasury Bond
6.625% due 02/15/2027............................................ 4,686,738 $ 4,686,738
J.P. Morgan Securities, Inc.
5.428% dated 04/30/1997,
due 05/01/1997 in the
amount of $4,675,695
Collateralized by U.S. Treasury Bill
0.000% due 08/28/1997,
U.S. Treasury Bond
6.250% due 08/15/2023,
U.S. Treasury Note
6.375% due 05/15/1999............................................ 4,675,000 4,675,000
------------
Total Repurchase Agreements
(Cost $9,361,738)................................................ 9,361,738
------------
Total Investments (99.7%)
(Cost $82,641,200)......................................................... 94,259,786
------------
Cash and receivables less liabilities (0.3%).................................... 290,407
------------
Net Assets (100.0%)............................................................. $ 94,550,193
============
(1) See Note 1 of Notes to Financial Statements.
*Non-Income Producing
The accompanying notes are an integral part of the financial statements.
</TABLE>
13
<PAGE>
- --------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
April 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
CMC Small CMC International
Cap Fund Stock Fund
------------ -----------------
<S> <C> <C>
ASSETS:
Investments at identified cost ............................................... $243,737,455 $ 73,279,462
Investments at value (Notes 1 and 2).......................................... $247,467,406 $ 84,898,048
Temporary cash investments, at cost (Note 1).................................. $106,272,711 $ 9,361,738
Cash.......................................................................... $ 118,388
Cash denominated in foreign currencies
(cost $158,441) (Note 1).................................................... $ 158,782
Receivable for:
Interest.................................................................... $ 325,341 $ 29,416
Dividends................................................................... $ 44,113 $ 259,413
Investments sold............................................................ $ 528,557
Capital stock sold.......................................................... $ 769,240
Forward foreign currency exchange contracts held, at market (Note 1)........ $ 9,376,499
------------- ------------
Total assets.................................................................. $ 354,638,128 $104,971,524
------------- -------------
LIABILITIES:
Payable for:
Capital stock redeemed...................................................... $ 2,080,000
Investments purchased....................................................... $ 4,314,050 $ 1,030,500
Investment management fee (Note 4).......................................... $ 214,314 $ 53,182
Accrued expenses ........................................................... $ 26,266 $ 18,263
Forward foreign currency exchange contracts held at market (Note 1)......... $ 9,319,386
------------- ------------
Total liabilities............................................................ $ 6,634,630 $ 10,421,331
------------- ------------
Net assets applicable to outstanding shares................................... $ 348,003,498 $ 94,550,193
============= ============
Net assets consist of:
Undistributed net investment income......................................... $ 348,582 $ 313,888
Unrealized appreciation on:
Investments............................................................... $ 3,729,951 $ 11,618,586
Translation of assets and liabilities in foreign currencies............... $ 56,059
Undistributed net realized gain (loss) from:
Investments............................................................. $ 40,879,054 $ (422,964)
Foreign currency transactions........................................... $ 894,175
Capital paid in (Note 3).................................................... $ 303,045,911 $ 82,090,449
------------- ------------
$ 348,003,498 $ 94,550,193
============= ============
Shares of capital stock outstanding (Note 3).................................... $ 7,056,573 $ 2,014,099
============= ============
Net asset value, offering and
redemption price per share (1)............................................... $ 49.32 $ 46.94
============= ============
(1) The net asset value per share is computed by dividing net assets applicable
to outstanding shares by shares of capital
The accompanying notes are an integral part of the financial statements.
</TABLE>
14
<PAGE>
- --------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
Six Months Ended April 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
CMC Small CMC International
Cap Fund Stock Fund
------------ -----------------
<S> <C> <C>
INVESTMENT INCOME:
Income:
Interest............................................................... $ 1,691,312 $ 178,865
Dividends.............................................................. $ 405,356 $ 582,625
Foreign taxes withheld (net of reclaims)............................... $ (66,657)
------------ -------------
Total income...................................................... $ 2,096,668 $ 694,833
------------ -------------
Expenses:
Investment management fees (Note 4).................................... $ 1,697,603 $ 284,161
Shareholder servicing costs (Note 4)................................... $ 12,588 $ 9,027
Reports to shareholders ............................................... $ 100 $ 33
Financial information and subscriptions................................ $ 238 $ 3,722
Accounting service fees................................................ $ 15,725
Custodian fees......................................................... $ 9,327 $ 36,310
Bank transaction and checking fees..................................... $ 8,037 $ 18,382
Registration fees...................................................... $ 115 $ 2,724
Legal, insurance and auditing fees..................................... $ 17,251 $ 14,753
Other (Note 4)......................................................... $ 2,827 $ 4,223
------------ ------------
Total expenses.................................................... $ 1,748,086 $ 389,060
------------ ------------
Net investment income (Note 1).............................................. $ 348,582 $ 305,773
------------ ------------
Realized gain and unrealized appreciation (depreciation) from investments and
foreign currency transactions:
Net realized gain from:
Investments (Note 2)................................................... $ 40,959,798 $ 1,926,044
Foreign currency transactions (Note 1)................................. $ 868,883
------------ ------------
Net realized gain ................................................... $ 40,959,798 $ 2,794,927
------------ ------------
Net unrealized appreciation (depreciation) on:
Investments (Note 1)................................................... $(56,465,793) $ 4,832,836
Translation of assets and liabilities in foreign currencies (Note 1)... $ 86,899
------------ ------------
Net unrealized appreciation (depreciation) during the period..... $(56,465,793) $ 4,919,735
------------ ------------
Net gain (loss) on investment and foreign currency transactions (Note 1).... $(15,505,995) $ 7,714,662
------------ ------------
Net increase (decrease) in net assets resulting from operations............. $(15,157,413) $ 8,020,435
============ ============
The accompanying notes are an integral part of the financial statements.
</TABLE>
15
<PAGE>
- --------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CMC Small CMC International
Cap Fund Stock Fund
-------------------------------- --------------------------------
1997 1996 1997 1996
-------------- ---------------- -------------- ----------------
Six Months Six Months
Ended Fiscal Year Ended Fiscal Year
April 30, 1997 Ended April 30, 1997 Ended
(Unaudited) October 31, 1996 (Unaudited) October 31, 1996
-------------- ---------------- -------------- ----------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss).......................... $ 348,582 $ (766,830) $ 305,773 $ 528,342
Net realized gain from:
Investments (Note 2)............................. 40,959,798 171,828,992 1,926,044 5,010,568
Foreign currency transactions
(Note 1)......................................... 868,883 1,127,670
Change in net unrealized appreciation
(depreciation) on:
Investments...................................... (56,465,793) (24,142,743) 4,832,836 3,557,467
Translation of assets and liabilities
in foreign currencies (Note 1 ).................. 86,899 (302,501)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
resulting from operations........................... (15,157,413) 146,919,419 8,020,435 9,921,546
Distributions to shareholders:
From net investment income............................ (528,342)
In excess of net investment income.................... (798,682)*
From net realized gain from
investment transactions............................. (149,951,166)
Capital share transactions, net (Note 3)................... (159,247,096) (11,727,605) 12,987,690 (3,810,006)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets................. (174,404,509) (14,759,352) 21,008,125 4,784,516
NET ASSETS:
Beginning of period........................................ 522,408,007 537,167,359 73,542,068 68,757,552
------------- ------------- ------------- -------------
End of period (1).......................................... $ 348,003,498 $ 522,408,007 $ 94,550,193 $ 73,542,068
============= ============= ============= =============
(1) Includes undistributed net investment
income (loss) of: $ 348,582 $ - $ 313,888 $ 8,115
* On a tax basis, there was no return of capital.
The accompanying notes are an integral part of the financial statements.
</TABLE>
16
<PAGE>
- --------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS
(Information for the six months ended April 30, 1997 is unaudited)
- --------------------------------------------------------------------------------
1. Significant accounting policies:
CMC Small Cap Fund and CMC International Stock Fund (the Funds) are
portfolios of CMC Fund Trust (the Trust), an open-end diversified investment
company registered under the Investment Company Act of 1940, as amended. The
Trust has established one other portfolio, CMC High Yield Fund. Each portfolio
issues a separate series of the Trust's shares and maintains a separate
investment portfolio. The policies described below are consistently followed by
the Funds for the preparation of their financial statements in conformity with
generally accepted accounting principles.
Investment valuation - The values of the Funds' equity investments are
based on the last sale prices reported by the principal securities exchanges on
which the investments are traded, or, in the absence of recorded sales, at the
closing bid prices on such exchanges or over-the-counter markets. Temporary
investments in short-term securities, principally repurchase agreements, are
valued at cost, which approximates market.
Forward foreign currency exchange contracts - The CMC International Stock
Fund enters into forward foreign currency exchange contracts to hedge certain
portfolio securities denominated in foreign currencies. Forward contracts are
recorded at market value. The CMC International Stock Fund could be exposed to
risks if counterparties to the forward contracts are unable to meet the terms of
their contracts or if the value of the foreign currency changes unfavorably. The
effect of any change in the value of a hedged foreign currency would be offset
by the increase (resulting from a change in exchange rates) in value of the
securities denominated in that currency. Net realized gains arising from forward
contracts amounted to $907,635 and are included in net realized gain from
foreign currency transactions. As of April 30, 1997, the CMC International Stock
Fund had entered into the following forward contract resulting in net unrealized
appreciation of $57,113.
Net Unrealized
Currency to Currency to Settlement Appreciation
be Delivered be Received Date (U.S. $)
----------------------------------------------------------------------
1,173,000,000 9,376,499 U.S. 06/27/97 $ 57,113
Japanese Yen Dollars
Foreign currency translations - The books and records of the CMC
International Stock Fund are maintained in U.S. dollars. Foreign currency
transactions are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets, and liabilities
at the daily rates of exchange, and
(ii) purchases and sales of investment securities, dividend and interest
income and certain expenses at the rates of exchange prevailing on the
respective dates of such transactions.
The CMC International Stock Fund does not isolate that portion of the
results of operations resulting from changes in foreign exchange rates on
investments from the fluctuations arising from changes in market prices of
investments held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
17
<PAGE>
- --------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(Information for the six months ended April 30, 1997 is unaudited)
- --------------------------------------------------------------------------------
1. Significant accounting policies (Continued):
Reported net realized foreign exchange gains or losses arise from sales
and maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized between the trade and settlement dates on securities
transactions, and the difference between the amounts of dividends, interest, and
foreign withholding taxes recorded on the CMC International Stock Fund's books
and the U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the value of
assets and liabilities, other than investments in securities, resulting from
changes in the exchange rates.
Shareholder distributions - The Funds distribute net investment income
twice a year and any net realized gains from investment transactions annually.
Distributions to shareholders are recorded on the record date.
Income 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 for
foreign currency transactions, net operating losses, deferral of losses from
wash sales, redemptions in kind and return of capital received from Real Estate
Investment Trusts.
Use of estimates - The preparation of the financial statements in
accordance with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses during
the reporting period. Actual results could differ from those estimates.
Federal income taxes - The Funds have made no provision for federal
income taxes on net investment income or net realized gains from sales of
securities, since it is the intention of the Funds to comply with the provisions
of the Internal Revenue Code available to certain regulated investment
companies, and to make distributions of income and security profits sufficient
to relieve them from substantially all federal income taxes.
Other - Investment transactions are accounted for on the date the
investments are purchased or sold. The cost of investments sold is determined by
the use of the specific identification method for both financial reporting and
income tax purposes. Interest income is recorded on the accrual basis and
dividend income is recorded on the ex-dividend date. Realized gains and losses
from investment transactions and unrealized appreciation or depreciation of
investments are reported on the basis of identified costs. The Funds, through
their custodians, receive delivery of underlying securities collateralizing
repurchase agreements (included in temporary cash investments). Market values of
these securities are required to be at least 100% of the cost of the repurchase
agreements. The Funds' investment advisor determines that the value of the
underlying securities is at all times at least equal to the resale price. In the
event of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral may be subject to legal proceedings.
18
<PAGE>
- --------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS, CONTINUED
- --------------------------------------------------------------------------------
2. Investment transactions:
Aggregate purchases, sales and maturities, net realized gain and unrealized
appreciation (depreciation) of investments, excluding temporary cash
investments, for the fiscal year ended April 30, 1997 were as follows:
<TABLE>
<CAPTION>
CMC Small CMC International
Cap Fund Stock Fund
----------------- -----------------
<S> <C> <C>
Purchases:
Investment securities other than U.S. Government obligations........ $ 233,815,305 $ 50,209,867
================= ================
Sales and Maturities (1):
Investment securities other than U.S. Government obligations........ $ 449,825,191 $ 34,357,969
================= ===============
Net Realized Gain (1):
Investment securities other than U.S. Government obligations........ $ 40,959,798 $ 1,926,044
================= ===============
Unrealized Appreciation (Depreciation) as of April 30, 1997:
Appreciation........................................................ $ 26,539,687 $ 13,643,849
Depreciation........................................................ (22,809,736) (2,025,263)
----------------- ---------------
Net unrealized appreciation ...................................... $ 3,729,951 $ 11,618,586
================= ===============
Unrealized Appreciation (Depreciation)
for federal income tax purposes as
of April 30, 1997:
Appreciation........................................................ $ 26,496,349 $ 13,614,898
Depreciation........................................................ (23,313,221) (2,120,752)
----------------- ---------------
Net unrealized appreciation ...................................... $ 3,183,128 $ 11,494,146
================= ===============
For federal income tax purposes, the cost of investments
owned at April 30, 1997............................. ............. $ 244,284,278 $ 73,403,902
================= ===============
</TABLE>
(1) The net realized gain for CMC Small Cap Fund includes proceeds of $127,748
from shareholder class action suits related to securities held by the Fund.
19
<PAGE>
- --------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(Information for the six months ended April 30, 1996 is unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
3. Capital Stock: CMC Small CMC International
Cap Fund Stock Fund
-------------- ---------------- -------------- ----------------
Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Six Months Fiscal Year Six Months Fiscal Year
Ended Ended Ended Ended
April 30, 1997 October 31, 1996 April 30, 1997 October 31, 1996
-------------- ---------------- -------------- ----------------
<S> <C> <C> <C> <C>
Shares:
Shares sold...................................... 675,598 1,170,133 375,673 581,183
Shares issued for reinvestment
of dividends................................... 2,784,309 30,593
-------------- ---------------- -------------- ----------------
675,598 3,954,442 375,673 611,776
Less shares redeemed............................. (3,657,865) (3,508,620) (93,479) (734,959)
-------------- ---------------- -------------- ----------------
Net increase (decrease) in shares................ (2,982,267) 445,822 282,194 (123,183)
============== ================ ============== ================
Amounts:
Sales............................................ $ 35,941,828 $ 75,859,359 $ 17,131,315 $ 24,149,770
Reinvestment of dividends........................ 143,113,471 1,300,503
-------------- ---------------- -------------- ----------------
35,941,828 218,972,830 17,131,315 25,450,273
Less redemptions................................. (195,188,924) (230,700,435) (4,143,625) (29,260,279)
-------------- ---------------- -------------- ----------------
Net increase (decrease).......................... $ (159,247,096) $ (11,727,605) $ 12,987,690 $ (3,810,006)
============== ================ ============== ================
Capital stock authorized (shares) 100,000,000 100,000,000
</TABLE>
4. Transactions with affiliates and related parties:
<TABLE>
<CAPTION>
CMC Small CMC International
Cap Fund Stock Fund
---------- -----------------
<S> <C> <C>
Investment management fees incurred....................................... $1,697,603 $284,161
Investment management fee computation basis
(percentage of daily net assets per annum)............................. 75.of.1% 75.of.1%
Transfer agent fee (included in shareholder servicing costs).............. $9,000 $9,000
Fees earned by trustees not affiliated with the Fund's investment
advisor or transfer agent (included in other expenses).................. $2,827 $622
</TABLE>
The investment advisor of the Funds is Columbia Management Co. The transfer
agent for the Funds is Columbia Trust Company, a subsidiary of Columbia Funds
Management Co. The transfer agent is compensated based on a per account fee or a
minimum of $1,500 per month. The contracts for investment advisory and transfer
agent services for the CMC Small Cap Fund and the CMC International Stock Fund
must be renewed annually by a majority vote of the Fund's shareholders or by the
Trustees of CMC Fund Trust. Certain officers and Trustees of CMC Fund Trust are
also officers and directors of Columbia Management Co., Columbia Trust Company
and Columbia Funds Management Company. They did not receive any direct payments
from the Fund.
20
