CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
SEMI-ANNUAL REPORT
(Unaudited)
April 30, 1999
1300 S.W. Sixth, P.O. Box 1350, Portland, OR 97207
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CMC Fund Trust
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout Each Period)
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CMC SMALL CAP FUND
------------------
Six Months
Ended Years Ended October 31,
April 30, 1999 ----------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
--------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period............. $ 39.83 $ 54.40 $ 52.04 $ 56.00 $ 49.35 $ 56.44
--------------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss)................ (0.09) (0.10) (0.04) (0.08) 0.22 0.18
Net gains or losses on securities (both
realized and unrealized).................. 3.32 (8.87) 14.08 16.79 10.88 1.99
--------------- ---------- ---------- ---------- ---------- ----------
Total from investment operations...... 3.23 (8.97) 14.04 16.71 11.10 2.17
--------------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income....... - - - - (0.16) (0.18)
Distributions from capital gains........... - (5.60) (11.68) (20.67) (4.29) (9.08)
--------------- ---------- ---------- ---------- ---------- ----------
Total distributions................... - (5.60) (11.68) (20.67) (4.45) (9.26)
--------------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period................... $ 43.06 $ 39.83 $ 54.40 $ 52.04 $ 56.00 $ 49.35
=============== ========== ========== ========== ========== ==========
Total return .................................... 8.11% (1) -(16.49)% 26.98% 30.30% 22.55% 3.87%
Ratios/Supplemental data
Net assets, end of period (in thousands)......... $ 186,987 $ 267,789 $ 521,770 $ 522,408 $ 537,167 $ 467,952
Ratio of expenses to average net assets.......... 0.81% (2) .77% 0.76% 0.78% 0.77% 0.78%
Ratio of net income (loss) to average net assets. (0.31) (2) (0.20)% (0.08)% (0.14)% 0.43% 0.29%
Portfolio turnover rate.......................... 185.44% (2) 158.98% 168.72% 147.77% 125.80% 97.24%
(1) Not annualized.
(2) Annualized.
See accompanying notes to financial statements.
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1
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CMC Fund Trust
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------------------------------------------------------
CMC INTERNATIONAL STOCK FUND
----------------------------
Six Months February 1,
Ended Years ended October 31, to
April 30, 1999 ---------------------------------------------- October 31,
(Unaudited) 1998 1997 1996 1995 1994 (1)
-------------- ---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period............. $ 12.54 $ 42.71 $ 42.46 $ 37.06 $ 39.51 $ 40.00
-------------- ---------- ---------- ---------- ---------- -----------
Income from investment operations:
Net investment income (loss)................ (0.03) 0.25 0.41 0.32 0.39 0.10
Net gains or losses on securities and
foreign currency transactions (both
realized and unrealized).................. 2.70 (0.78) 6.16 5.86 (2.64) (0.59)
-------------- ---------- ---------- ---------- ---------- -----------
Total from investment operations...... 2.67 (0.53) 6.57 6.18 (2.25) (0.49)
-------------- ---------- ---------- ---------- ---------- -----------
Less distributions:
Dividends from net investment income........ - - (0.46) (0.78) (0.20) -
Distributions from capital gains........... - (29.64) (5.86) - - -
-------------- ---------- ---------- ---------- ---------- -----------
Total distributions................... - (29.64) (6.32) (0.78) (0.20) -
-------------- ---------- ---------- ---------- ---------- -----------
Net asset value, end of period................... $ 15.21 $ 12.54 $ 42.71 $ 42.46 $ 37.06 $ 39.51
============== ========== ========== ========== ========== ===========
Total return..................................... 21.29% (2) -(1.24)% 15.47% 16.67% -(5.69)% -(1.23)% (2)
Ratios/Supplemental data
Net assets, end of period (in thousands)......... $ 17,055 $ 15,377 $ 81,471 $ 73,542 $ 68,758 $ 84,298
Ratio of expenses to average net assets.......... 1.35% (3) 1.04% 1.05% 1.00% 0.98% 1.16% (3)
Ratio of net income (loss) to average net assets. (0.48)% (3) 0.60% 0.88% 0.78% 0.99% 0.53% (3)
Portfolio turnover rate.......................... 100.63% (3) 52.68% 126.56% 119.98% 158.32% 123.80% (3)
(1) From inception of operations.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
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2
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CMC SMALL CAP FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- --------------------------------------------------------------------------------------------------------------
APRIL 30, 1999
SHARES VALUE
------------ -------------
<S> <C> <C>
COMMON STOCKS (97.1%)
BASIC INDUSTRIES & MANUFACTURING (6.1%)
BUILDING & FORESTRY PRODUCTS (1.0%)
IVEX PACKAGING CORP. * 28,900 $ 568,968
SOUTHDOWN, INC. 20,400 1,306,876
-------------
1,875,844
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CHEMICALS (1.9%)
AIRGAS, INC. * 79,500 934,125
MINERALS TECHNOLOGIES, INC. 18,400 993,600
SOLUTIA, INC. 63,600 1,550,250
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3,477,975
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MACHINERY CAPITAL SPENDING (3.2%)
APPLIED POWER, INC. 74,100 2,338,781
BALL CORP. 33,600 1,845,900
KENNAMETAL, INC. 31,300 831,406
TEREX CORP. * 31,000 980,375
-------------
5,996,462
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TOTAL BASIC INDUSTRIES & MANUFACTURING 11,350,281
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BUSINESS & CONSUMER SERVICES (14.6%)
MEDIA & ENTERTAINMENT (1.0%)
ENTERCOM COMMUNICATIONS CORP. * 37,600 1,395,900
THE MCCLATCHY CO. 13,000 466,375
-------------
1,862,275
-------------
POLLUTION CONTROL (1.1%)
TETRA TECH, INC. * 82,300 1,990,631
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SERVICES & PUBLISHING (12.5%)
AMBASSADORS INTERNATIONAL, INC. * 40,800 606,900
APOLLO GROUP, INC. * 114,900 2,843,775
BORON, LEPORE & ASSOCIATES, INC. * 39,700 406,925
G & K SERVICES, INC. (CLASS A) 28,700 1,341,725
GLOBAL VACATION GROUP, INC * 89,600 1,019,200
ITT EDUCATIONAL SERVICES, INC. * 72,500 1,780,781
NATIONAL DATA CORP. 56,100 2,587,612
NOVA CORP. * 111,170 2,890,420
PROFESSIONAL DETAILING, INC. * 51,530 1,481,487
PROFIT RECOVERY GROUP INTERNATIONAL, INC. * 79,600 2,905,400
RENT-WAY, INC. * 61,100 1,664,975
ROMAC INTERNATIONAL, INC. * 140,000 1,575,000
SYLVAN LEARNING SYSTEMS, INC. * 87,500 2,198,439
-------------
23,302,639
-------------
TOTAL BUSINESS & CONSUMER SERVICES 27,155,545
-------------
See accompanying notes to financial statements.
3
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CMC SMALL CAP FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
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SHARES VALUE
------------ -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
CONSUMER CYCLICAL (22.7%)
CONSUMER DURABLE (4.3%)
ETHAN ALLEN INTERIORS, INC. 57,400 $ 2,909,462
FURNITURE BRANDS INTERNATIONAL, INC. 36,800 922,300
MODTECH HOLDINGS, INC. * 85,524 759,026
TOWER AUTOMOTIVE, INC. * 152,100 3,498,300
-------------
8,089,088
-------------
CONSUMER NON-DURABLE (18.4%)
HELEN OF TROY LTD. * 136,200 1,906,800
ACTION PERFORMANCE COS., INC. * 51,400 1,741,176
AMES DEPARTMENT STORES, INC. * 114,100 3,986,369
BED, BATH & BEYOND, INC. * 129,900 4,635,806
CBRL GROUP, INC. 115,200 2,325,600
CHEESECAKE FACTORY, INC. (THE) * 79,600 2,228,800
CLAIRE'S STORES, INC. 55,100 1,825,187
COST PLUS, INC. * 71,400 2,516,850
FOODMAKER, INC. * 64,700 1,560,888
GENERAL NUTRITION COS., INC. 57,600 954,000
HOLLYWOOD ENTERTAINMENT CORP. * 135,400 3,342,687
MICHAELS STORES, INC. * 54,000 1,221,750
TIMBERLAND CO. (CLASS A) * 15,900 1,101,075
WET SEAL, INC. (CLASS A) * 71,300 2,905,475
WILLIAMS-SONOMA, INC. * 76,200 2,209,800
-------------
34,462,263
-------------
TOTAL CONSUMER CYCLICAL 42,551,351
-------------
CONSUMER STAPLES (17.6%)
FOOD & HOUSEHOLD PRODUCTS (3.5%)
AURORA FOODS, INC. * 65,900 980,262
FRESH DEL MONTE PRODUCE, INC. * 50,300 792,225
U.S. FOODSERVICE, INC. * 56,300 2,368,119
WHOLE FOODS MARKET, INC. * 63,600 2,480,400
-------------
6,621,006
-------------
HEALTH (14.1%)
AMERICAN ONCOLOGY RESOURCES, INC. * 19,600 175,175
ANESTA CORP. * 75,600 1,058,400
COVANCE, INC. * 80,600 1,768,162
IDEXX LABORATORIES, INC. * 123,200 2,787,400
INTELLIGENT POLYMERS LTD. (UNITS - EACH UNIT
CONSISTS OF 1 COMMON SHARE & 1 WARRANT) 139,000 4,309,000
JONES PHARMA, INC. 62,800 2,017,450
See accompanying notes to financial statements.
4
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CMC SMALL CAP FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- --------------------------------------------------------------------------------------------------------------
SHARES VALUE
------------ -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
LIGAND PHARMACEUTICALS, INC. (CLASS B) * 188,800 $ 1,864,400
MEDQUIST, INC. * 30,800 1,054,900
OXFORD HEALTH PLANS, INC. * 132,600 2,643,713
PAREXEL INTERNATIONAL CORP. * 55,400 1,333,062
PHYSICIAN RELIANCE NETWORK, INC. * 79,500 655,875
PROTEIN DESIGN LABS, INC. * 41,600 642,200
RESMED, INC. * 20,700 547,256
SHIRE PHARMACEUTICALS GROUP PLC ADR * 49,900 1,079,088
SPIROS DEVELOPMENT CORP. II, INC. (UNITS -
1 CALLABLE COMMON SHARE OF SPIROS & 1 WARRANT
OF DURA PHARMACEUTICALS - 12/31/2002) * 62,300 626,894
TRANSKARYOTIC THERAPIES, INC. * 41,200 1,277,200
UNIVERSAL HEALTH SERVICES, INC. (CLASS B) * 49,600 2,569,900
-------------
26,410,075
-------------
TOTAL CONSUMER STAPLES 33,031,081
-------------
ENERGY (5.2%)
DOMESTIC & INTERNATIONAL INTEGRATED (1.6%)
OCEAN ENERGY, INC. * 225,100 2,096,244
WESTERN GAS RESOURCES, INC. 109,500 958,125
-------------
3,054,369
-------------
ENERGY SERVICES (3.6%)
GLOBAL INDUSTRIES LTD. 39,700 488,806
HANOVER COMPRESSOR CO. * 129,700 3,720,769
NOBLE DRILLING CORP. * 50,400 989,100
PRECISION DRILLING CORP. * 5,700 98,325
PRIDE INTERNATIONAL, INC. * 92,000 1,075,250
R & B FALCON CORP. * 38,700 387,000
-------------
6,759,250
-------------
TOTAL ENERGY 9,813,619
-------------
FINANCIAL (0.9%)
NORTH FORK BANCORP, INC. 74,750 1,681,875
-------------
TECHNOLOGY (25.1%)
AMDOCS LTD. * 66,800 1,795,250
ACXIOM CORP. * 140,700 3,552,675
AMERICAN MANAGEMENT SYSTEMS, INC. * 93,100 3,200,312
APPLIED THEORY CORP. * 11,100 227,550
ARTESYN TECHNOLOGIES, INC. * 83,700 1,506,600
ATMEL CORP. * 88,000 1,606,000
CIBER, INC. * 94,300 1,779,912
CONCORD COMMUNICATIONS, INC. * 22,427 1,003,608
CREDENCE SYSTEMS CORP. * 102,000 2,620,125
ELECTRO SCIENTIFIC INDUSTRIES, INC. * 34,100 1,300,063
See accompanying notes to financial statements.
5
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CMC SMALL CAP FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- --------------------------------------------------------------------------------------------------------------
SHARES VALUE
------------ -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
ENGINEERING ANIMATION, INC. * 35,400 $ 526,575
FLEXTRONICS INTERNATIONAL LTD. * 29,600 1,381,950
FORE SYSTEMS, INC. * 62,367 2,104,886
HMT TECHNOLOGY CORP. * 44,900 129,088
HARMONIC, INC. * 42,200 1,925,375
INFORMATICA CORP. * 4,400 124,300
LATTICE SEMICONDUCTOR CORP. * 22,900 936,037
MARIMBA, INC. * 8,300 504,225
MICROS SYSTEMS, INC. * 59,200 1,746,400
PAIRGAIN TECHNOLOGIES, INC. * 36,000 461,250
PEREGRINE SYSTEMS, INC. * 43,418 976,905
POWERWAVE TECHNOLOGIES, INC. * 94,100 2,858,288
PROXICOM, INC. * 11,573 259,669
QLOGIC CORP. * 18,200 1,272,863
RADISYS CORP. * 92,600 2,905,325
STERLING COMMERCE, INC. * 75,700 2,370,356
SYKES ENTERPRISES, INC. * 50,300 1,031,150
SYMANTEC CORP. * 46,100 916,238
USINTERNETWORKING, INC. * 8,600 439,675
VEECO INSTRUMENTS, INC. * 42,512 1,636,712
VISIO CORP. * 89,500 2,416,500
VISUAL NETWORKS, INC. * 14,706 412,687
WIND RIVER SYSTEMS, INC. * 65,300 979,500
-------------
TOTAL TECHNOLOGY 46,908,049
-------------
TRANSPORTATION (1.7%)
ATLANTIC COAST AIRLINES HOLDINGS, INC. * 29,000 895,375
C.H. ROBINSON WORLDWIDE, INC. 38,600 1,155,587
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. 17,500 1,060,938
-------------
TOTAL TRANSPORTATION 3,111,900
-------------
UTILITIES - COMMUNICATIONS (3.2%)
COMSAT CORP. 87,000 2,827,500
HYPERION TELECOMMUNICATIONS, INC. * 16,600 207,500
ICG COMMUNICATIONS, INC. * 15,200 335,350
RHYTHMS NETCONNECTIONS, INC. * 8,100 668,250
SOFTNET SYSTEMS, INC. * 17,500 570,938
SOURCE MEDIA, INC. * 62,100 1,358,437
-------------
TOTAL UTILITIES 5,967,975
-------------
TOTAL COMMON STOCKS (COST $154,517,765) 181,571,676
-------------
See accompanying notes to financial statements.
6
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CMC SMALL CAP FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- --------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -------------
<S> <C> <C>
REPURCHASE AGREEMENT (2.3%)
J.P. MORGAN SECURITIES, INC.
4.919% DATED 04/30/1999,
DUE 05/03/1999 IN THE
AMOUNT OF $4,357,010.
COLLATERALIZED BY
U.S. TREASURY NOTES 3.375%
DUE 01/15/2007.
(COST $4,356,423) $ 4,356,423 $ 4,356,423
-------------
TOTAL INVESTMENTS (99.4%)
(COST $158,874,188) 185,928,099
RECEIVABLES LESS LIABILITIES (0.6%) 1,058,610
-------------
NET ASSETS (100.0%) $ 186,986,709
=============
* Non-Income Producing
See accompanying notes to financial statements.
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7
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CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- --------------------------------------------------------------------------------------------------------------
APRIL 30, 1999
SHARES VALUE
------------ -------------
<S> <C> <C>
COMMON STOCKS (92.6%)
AUSTRALIA (0.5%)
RIO TINTO LTD. (MINING-METAL/MINERALS) 5,000 $ 84,336
-------------
BRAZIL (0.4%)
CIA TECIDOS DO NORTE DE MINAS SA (TEXTILES) 1,100,000 62,918
-------------
CANADA (2.5%)
ROGERS COMMUNICATIONS, INC. (CLASS B) (MEDIA)* 5,000 93,730
SHAW COMMUNICATIONS, INC. (CLASS B) (MEDIA) 6,000 246,995
ST. LAURENT PAPERBOARD, INC. (FORESTRY/PAPER PRODUCTS) * 7,600 82,194
-------------
422,919
-------------
FINLAND (1.7%)
SONERA GROUP OYJ (UTILITIES/COMMUNICATION) 15,000 298,343
-------------
FRANCE (11.1%)
ALSTOM SA (ELECTRICAL EQUIPMENT)* 3,500 114,788
AXA-UAP SA (INSURANCE) 2,100 271,493
BANQUE NATIONALE DE PARIS (BANKS) 1,000 82,997
CAP GEMINI SA (BUSINESS SERVICES) 1,700 260,246
ELF AQUITAINE SA, ADR (OIL) 1,200 93,750
ESTABLISSEMENTS ECONOMIQUES DU CASINO GUICHARD-
PERRACHON SA (RETAIL) 1,700 167,622
FRANCE TELECOM SA, ADR (UTILITIES/COMMUNICATION) 3,300 267,300
RENAULT SA (AUTOMOBILES) 3,000 125,812
SCHNEIDER SA (ELECTRICAL EQUIPMENT) 1,800 117,592
SODEXHO ALLIANCE SA (BUSINESS SERVICES) 1,200 197,160
VIVENDI (UTILITIES) 800 187,131
-------------
1,885,891
-------------
GERMANY (4.3%)
MANNESMANN AG (MACHINERY/CAPITAL SPENDING) 4,800 632,742
VOLKSWAGEN AG (AUTOMOBILES) 1,500 106,483
-------------
739,225
-------------
INDIA (5.2%)
BANK OF BARODA LTD. (BANKS) 20,800 17,626
INFOSYS TECHNOLOGIES LTD. (BUSINESS SERVICES) 10,000 613,681
MAHINDRA & MAHINDRA LTD. (AUTOMOBILES) 45,000 247,834
-------------
879,141
-------------
IRELAND (2.5%)
BANK OF IRELAND PLC (BANKS) 9,000 180,434
CRH PLC (CONSTRUCTION/BUILDING MATERIALS) 4,300 84,843
IRISH LIFE PLC (INSURANCE) 18,500 166,363
-------------
431,640
-------------
See accompanying notes to financial statements.
8
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CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- --------------------------------------------------------------------------------------------------------------
SHARES VALUE
------------ -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
ITALY (4.8%)
ALLEANZA ASSICURAZIONI S.P.A (INSURANCE) 8,800 $ 105,669
ASSICURAZIONI GENERALI S.P.A (INSURANCE) 4,200 163,740
TELECOM ITALIA S.P.A, ADR (UTILITIES/COMMUNICATION) 2,300 244,231
UNICREDITO ITALIANO S.P.A (BANKS) 59,000 299,612
-------------
813,252
-------------
JAPAN (20.9%)
AVEX, INC. (ENTERTAINMENT/LEISURE)* 1,000 92,157
DON QUIJOTE CO., LTD. (RETAIL) 1,000 232,906
HIROSE ELECTRIC CO., LTD. (ELECTRONICS) 2,000 185,990
NIDEC CORP. (ELECTRICAL EQUIPMENT) 1,000 129,858
NIPPON TELEGRAPH & TELEPHONE CORP. (UTILITIES/
COMMUNICATION) 21 228,717
NOMURA SECURITIES CO., LTD., THE (FINANCIAL SERVICES) 20,000 215,815
NTT DATA CORP. (BUSINESS SERVICES) 20 158,343
NTT MOBILE COMMUNICATION NETWORK, INC.
(UTILITIES/COMMUNICATION) 2 117,291
OJI PAPER CO., LTD. (FORESTRY/PAPER PRODUCTS) 14,000 83,863
OLYMPUS OPTICAL CO., LTD. (ELECTRONICS) 20,000 245,976
RYOHIN KEIKAKU CO., LTD. (RETAIL) 1,500 273,330
SANWA BANK LTD., THE (BANKS) 18,000 202,075
SEKISUI HOUSE LTD. (CONSTRUCTION/BUILDING MATERIALS) 10,000 112,013
SHIMAMURA CO., LTD. (RETAIL) 7,500 464,974
SHOHKOH FUND & CO., LTD. (FINANCIAL SERVICES) 270 158,343
SUMITOMO BANK LTD., THE (BANKING) 15,000 203,081
TAKEDA CHEMICAL INDS., LTD. (PHARMACEUTICALS) 4,000 173,926
TOSHIBA CORP. (ELECTRONICS) 27,000 180,963
WORLD CO., LTD. (TEXTILES) 1,800 99,680
-------------
3,559,301
-------------
NETHERLANDS (8.9%)
AEGON NV (INSURANCE) 2,800 268,826
EQUANT NV (UTILITIES/COMMUNICATION)* 7,400 660,450
ING GROEP NV (INSURANCE) 1,400 86,350
LAURUS NV (RETAIL) 4,200 90,424
UNITED PAN-EUROPE COMMUNICATIONS NV, ADR
(MEDIA)* 5,000 254,688
VENDEX NV (RETAIL) 6,000 149,489
-------------
1,510,227
-------------
SPAIN (3.3%)
METROVACESA SA (REAL ESTATE) 7,000 152,927
TELEFONICA SA, ADR (UTILITIES/COMMUNICATION) 1,560 217,425
TELEPIZZA SA (RESTAURANTS)* 30,000 190,432
-------------
560,784
-------------
See accompanying notes to financial statements.
9
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CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- --------------------------------------------------------------------------------------------------------------
SHARES VALUE
------------ -------------
<S> <C> <C>
COMMON STOCKS (CONTINUED)
SWEDEN (1.7%)
ASSA ABLOY AB (CLASS B) (DIVERSIFIED INDS./MANUFACTURING) 2,700 $ 118,134
MUNTERS AB (DIVERSIFIED CONSUMER MANUFACTURING) 17,400 179,983
-------------
298,117
-------------
SWITZERLAND (4.5%)
NOVARTIS AG (BEARER) (PHARMACEUTICALS) 190 278,426
ROCHE HOLDING AG (GENUSSSCHEINE) (PHARMACEUTICALS) 25 294,590
ZURICH ALLIED AG (REGISTERED) (INSURANCE) 300 193,701
-------------
766,717
-------------
THAILAND (1.3%)
BANGKOK BANK PUBLIC CO., LTD. (FOREIGN) (BANKS)* 38,000 113,650
THAI FARMERS BANK PUBLIC CO., LTD. (FOREIGN) (BANKS)* 38,000 105,459
-------------
219,109
-------------
UNITED KINGDOM (19.0%)
BARCLAYS PLC (BANKS) 6,600 209,770
BRITISH TELECOMMUNICATIONS PLC
(UTILITIES/COMMUNICATION) 24,500 411,831
COLT TELECOM GROUP PLC (UTILITIES/COMMUNICATION)* 4,400 82,250
COMPASS GROUP PLC (ENTERTAINMENT/LEISURE) 21,000 215,383
GLAXO WELLCOME PLC (PHARMACEUTICALS) 6,000 177,562
GRANADA GROUP PLC (ENTERTAINMENT/LEISURE) 9,096 194,492
HSBC HOLDINGS PLC (BANKS) 3,500 133,502
NATIONAL WESTMINSTER BANK PLC (BANKS) 6,700 161,492
NEXT PLC (RETAIL) 10,000 123,495
ORANGE PLC (UTILITIES/COMMUNICATION)* 6,000 81,729
PEARSON PLC (MEDIA) 13,000 276,712
SELECT APPOINTMENTS HOLDINGS PLC (BUSINESS SERVICES)* 16,000 204,032
SMITHKLINE BEECHAM PLC (PHARMACEUTICALS) 30,061 397,858
VODAFONE GROUP PLC (UTILITIES/COMMUNICATION) 14,834 273,475
WPP GROUP PLC (MEDIA) 35,000 309,381
-------------
3,252,964
-------------
TOTAL COMMON STOCKS (COST $11,915,728) 15,784,884
-------------
PREFERRED STOCK - GERMANY (0.7%)
PORSCHE AG (AUTOMOBILES)
(COST $56,833) 50 121,665
-------------
WARRANT - FRANCE (0.4%)
VIVENDI (05/02/2001) (UTILITIES)*
(COST $87,225) 29,000 64,123
-------------
See accompanying notes to financial statements.
10
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CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- --------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
------------ -------------
<S> <C> <C>
REPURCHASE AGREEMENT (4.8%)
J.P. MORGAN SECURITIES, INC.
4.919% DATED 04/30/1999,
DUE 05/03/1999 IN THE
AMOUNT OF $823,800
COLLATERALIZED BY
U.S. TREASURY NOTES 3.375%
DUE 01/15/2007.
(COST $823,689) $ 823,689 $ 823,689
-------------
TOTAL INVESTMENTS (98.5%)
(COST $12,883,475) 16,794,361
CASH AND RECEIVABLES LESS LIABILITIES (1.5%) 260,747
-------------
NET ASSETS (100%) $ 17,055,108
=============
* Non-Income Producing
See accompanying notes to financial statements.
</TABLE>
11
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<TABLE>
<CAPTION>
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CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
STATEMENTS OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------------------------------------------
April 30, 1999
(Unaudited)
CMC Small CMC International
Cap Fund Stock Fund
----------------- -----------------
<S> <C> <C>
ASSETS:
Investments at identified cost ...................................... $ 154,517,765 $ 12,059,786
- ----------------------------------------------------------------------- ----------------- -----------------
Investments at value ................................................ $ 181,571,676 $ 15,970,672
Temporary cash investments, at cost ................................. 4,356,423 823,689
Cash................................................................. - 170,651
Cash denominated in foreign currencies (cost $179,209)............... - 179,123
Receivable for:
Investments sold................................................... 7,413,545 84,156
Capital stock sold................................................. 4,061,240 -
Interest........................................................... 54,276 3,732
Dividends.......................................................... 17,782 63,732
----------------- -----------------
Total assets......................................................... 197,474,942 17,295,755
----------------- -----------------
LIABILITIES:
Payable for:
Investments purchased.............................................. 10,469,508 226,994
Accrued expenses .................................................. 18,725 13,653
----------------- -----------------
Total liabilities................................................... 10,488,233 240,647
----------------- -----------------
NET ASSETS ............................................................ $ 186,986,709 $ 17,055,108
================= =================
Net assets consist of:
Undistributed net investment loss ................................. $ (395,176) $ (37,894)
Unrealized appreciation (depreciation) on:
Investments............................................................ 27,053,911 3,910,886
Translation of assets and liabilities in foreign currencies............ - (283)
Undistributed net realized gain (loss) from:
Investments.................................................... 4,297,285 987,785
Foreign currency transactions.................................. - (41,221)
Capital paid in ................................................... 156,030,689 12,235,835
----------------- -----------------
$ 186,986,709 $ 17,055,108
================= =================
Shares of capital stock outstanding.................................... 4,342,482 1,121,219
================= =================
Net asset value, offering and
redemption price per share *........................................ $ 43.06 $ 15.21
================= =================
* The net asset value per share is computed by dividing net assets applicable to outstanding shares by shares of
capital stock outstanding.
See accompanying notes to financial statements.
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
STATEMENTS OF OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
For the Six Months Ended April 30, 1999
(Unaudited)
CMC Small CMC International
Cap Fund Stock Fund
----------------- -----------------
<S> <C> <C>
INVESTMENT INCOME:
Income:
Interest..................................................... $ 393,220 $ 22,255
Dividends.................................................... 252,987 53,193
Foreign taxes withheld (net of reclaims)..................... - (6,181)
----------------- -----------------
Total income............................................. 646,207 69,267
----------------- -----------------
Expenses:
Investment management fees .................................. 989,051 60,151
Legal, insurance and auditing fees........................... 18,831 17,219
Shareholder servicing costs ................................. 9,000 9,000
Bank transaction and checking fees........................... 11,250 8,735
Custodian fees............................................... 5,296 8,110
Other........................................................ 7,955 3,946
----------------- -----------------
Total expenses........................................... 1,041,383 107,161
----------------- -----------------
Net investment loss ............................................. (395,176) (37,894)
----------------- -----------------
Realized gain (loss) and unrealized appreciation (depreciation) from
investments and foreign currency transactions:
Net realized gain(loss) from:
Investments ................................................. 7,036,828 1,001,215
Foreignncurrency transactions ............................... - (41,221)
----------------- -----------------
Net realized gain ........................................ 7,036,828 959,994
----------------- -----------------
Net unrealized appreciation (depreciation) on:
Investments ................................................. 13,165,888 2,000,160
Translation of assets and liabilities in foreign currencies . - (1,898)
----------------- -----------------
Net unrealized appreciation during the period............. 13,165,888 1,998,262
----------------- -----------------
Net gain on investments and foreign currency transactions........ 20,202,716 2,958,256
----------------- -----------------
Net increase in net assets resulting from operations............. $ 19,807,540 $ 2,920,362
================= =================
See accompanying notes to financial statements.
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
CMC Small Cap Fund CMC International Stock Fund
-------------------------------- --------------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
April 30, 1999 October 31, April 30, 1999 October 31,
(Unaudited) 1998 (Unaudited) 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income (loss)................ $ (395,176) $ (669,344) $ (37,894) $ 307,230
Net realized gain (loss) from:
Investments............................ 7,036,828 29,537,972 1,001,215 10,857,469
Futures contracts...................... - 1,770,502 - -
Foreign currency transactions.......... - - (41,221) (691,668)
Change in net unrealized appreciation
(depreciation) on:
Investments............................ 13,165,888 (61,700,383) 2,000,160 (4,831,185)
Translation of assets and liabilities
in foreign currencies ................. - - (1,898) 77,019
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets
resulting from operations.............. 19,807,540 (31,061,253) 2,920,362 5,718,865
Distributions to shareholders:
From net realized gain from
investment transactions................ - (31,308,474) - (10,805,915)
In excess of net realized gain from
investment transactions................. - (1,826,187) * - -
Capital share transactions, net................. (100,609,994) (189,785,414) (1,242,282) (61,006,570)
-------------- -------------- -------------- --------------
Net increase (decrease) in net assets....... (80,802,454) (253,981,328) 1,678,080 (66,093,620)
NET ASSETS:
Beginning of period............................. 267,789,163 521,770,491 15,377,028 81,470,648
-------------- -------------- -------------- --------------
End of period .................................. $ 186,986,709 $ 267,789,163 $ 17,055,108 $ 15,377,028
============== ============== ============== ==============
Undistributed net investment income (loss)..... $ (395,176) $ - $ (37,894) $ -
============== ============== ============== ==============
* On a tax basis, there was no return of capital.
See accompanying notes to financial statements.
</TABLE>
14
<PAGE>
- --------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS (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 two other portfolios, CMC High Yield Fund and CMC Short
Term Bond Fund, neither of which are included in these financial statements.
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. Securities are valued at the closing price for
securities traded on a principal exchange (U.S. or Foreign) and on the NASDAQ
National Market. Securities traded on over-the-counter markets and listed
securities for which no sales are reported are valued at the latest bid price
obtained from one or more dealers making a market for such securities or from a
pricing service. Securities for which market quotations are not readily
available will be valued at fair value as determined in good faith under
procedures established by and under the general supervision of the Trustees.
Temporary cash investments in short-term securities (with maturities of less
than 60 days), principally repurchase agreements, are valued at cost, which
approximates market value.
Futures contracts. The CMC Small Cap Fund occasionally utilizes futures
contracts to hedge against market conditions affecting the value of securities
that the Fund owns or intends to purchase. Upon entering into a financial
futures contract, the Fund is required to pledge to the broker an amount of
cash, U.S. Government securities, or any other portfolio asset as permitted by
the Securities and Exchange Commission rules and regulations, equal to a certain
percentage of the contract amount. This amount is known as the "initial margin".
Subsequent payments, known as the "variation margin", are made or received by
the Fund each day, depending on the daily fluctuations in the value of the
underlying financial futures contract. Such variation margin is recorded for
financial statement purposes on a daily basis as unrealized gain or loss until
the financial futures contract is closed, at which time the gain or loss is
reclassified to realized. Using financial futures contracts involves various
market risks. The Fund seeks to reduce these risks by investing in financial
futures contracts solely for hedging purposes and not for leverage. However,
imperfect correlation's between financial futures and the instruments being
hedged or market disruptions do not normally permit full control of these risks
at all times. CMC Small Cap Fund has not entered into futures contracts during
the period.
Forward foreign currency exchange contracts. The CMC International Stock
Fund may enter into forward currency contracts in connection with planned
purchases or sales of securities or to hedge the U.S. dollar value of the
portfolio securities denominated in a foreign currency. Contracts are valued at
the prevailing forward exchange rate of the underlying currencies. The gain or
loss arising from the difference between the original contract price and the
closing price of such contract is included in the net realized gains or losses
from foreign currency transactions. Fluctuations in the value of forward
currency contracts are recorded for financial reporting purposes as unrealized
gains or losses. 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 corresponding change (resulting from a change in exchange rates) in value
of the securities denominated in that currency. CMC International Stock Fund has
not entered into forward contracts during the period.
15
<PAGE>
- --------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS (Unaudited), CONTINUED
- --------------------------------------------------------------------------------
1. Significant accounting policies (Continued):
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 on the valuation date, 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.
Reported net realized foreign currency gains or losses arise from the sale
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 currency 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.
Interest and dividend income. Interest income is recorded on the accrual
basis and dividend income is recorded on the ex-dividend date.
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 ex-dividend 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 and passive foreign investment companies and return of capital
received from REITS.
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.
16
<PAGE>
- --------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS (Unaudited), CONTINUED
- --------------------------------------------------------------------------------
1. Significant accounting policies (Continued):
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. 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.
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 six months ended April 30, 1999 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..... $ 225,060,074 $ 7,396,378
================= =================
Sales and Maturities:
Investment securities other than U.S. Government obligations..... $ 300,652,121 $ 7,841,965
================= =================
Net Realized Gain:
Investment securities other than U.S. Government obligations..... $ 7,036,828 $ 1,001,215
================= =================
Unrealized Appreciation (Depreciation) for
federal income tax purposes as of April 30, 1999:
Appreciation..................................................... $ 33,775,298 $ 4,739,413
Depreciation..................................................... (8,865,289) (828,527)
----------------- -----------------
Net unrealized appreciation ................................... $ 24,910,009 $ 3,910,886
================= =================
For federal income tax purposes, the cost of investments
owned at April 30, 1999............................................ $ 156,661,667 $ 12,059,786
================= =================
</TABLE>
The net realized gain for CMC Small Cap Fund includes proceeds of $265,389 from
shareholder class action suits related to securities held by the Fund.
17
<PAGE>
- --------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS (Unaudited), CONTINUED
- --------------------------------------------------------------------------------
3. Capital Stock:
<TABLE>
<CAPTION>
CMC Small Cap Fund CMC International Stock Fund
-------------------------------- --------------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
April 30, 1999 October 31, April 30, 1999 October 31,
(Unaudited) 1998 (Unaudited) 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Shares:
Shares sold................................. 987,021 3,526,101 283,356 140,622
Shares issued for reinvestment
of dividends.............................. - 795,793 - 861,716
-------------- -------------- -------------- --------------
987,021 4,321,894 283,356 1,002,338
Less shares redeemed........................ (3,367,773) (7,189,299) (388,425) (1,683,481)
-------------- -------------- -------------- --------------
Net increase (decrease) in shares........... (2,380,752) (2,867,405) (105,069) (681,143)
============== ============== ============== ==============
Amounts:
Sales....................................... $ 41,450,996 $ 166,362,699 $ 4,239,000 $ 6,648,396
Reinvestment of dividends................... - 31,696,418 - 10,805,915
-------------- -------------- -------------- --------------
41,450,996 198,059,117 4,239,000 17,454,311
Less redemptions............................ (142,060,990) (387,844,531) (5,481,282) (78,460,881)
-------------- -------------- -------------- --------------
Net increase (decrease)..................... $ (100,609,994) $ (189,785,414) $ (1,242,282) $ (61,006,570)
============== ============== ============== ==============
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............................... $ 989,051 $ 60,151
Investment management fee computation basis
(percentage of daily net assets per annum)..................... 0.75 of 1% 0.75 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
adviser or transfer agent (included in other expenses).......... $ 7,014 $ 1,098
</TABLE>
The transfer agent for the Fund is Columbia Trust Company (CTC), an affiliate of
CMC. 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 (the Trust).
J. Jerry Inskeep, Jr., an officer and trustee of the Trust, is affiliated with
Fleet Financial Group, Inc., the parent corporation of CMC and CTC, but received
no compensation or other payments from the Trust during the period.
18
<PAGE>
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SEMI-ANNUAL REPORT
(Unaudited)
April 30, 1999
1300 S.W. Sixth, P.O. Box 1350, Portland, OR 97207
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------------------------------------------------------
Six Months July 6,
Ended Years ended October 31, to
April 30, 1999 ---------------------------------------------- October 31,
(Unaudited) 1998 1997 1996 1995 1994 (1)
-------------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period............ $ 35.79 $ 36.85 $ 35.95 $ 36.24 $ 34.48 $ 35.00
-------------- ---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income...................... 1.47 3.03 3.18 3.23 3.31 0.94
Net gains or losses on securities (both
realized or unrealized).................. 0.62 (0.85) 1.28 0.10 2.11 (0.52)
-------------- ---------- ---------- ---------- ---------- ----------
Total from investment operations. 2.09 2.18 4.46 3.33 5.42 0.42
-------------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income...... (1.47) (3.03) (3.18) (3.23) (3.31) (0.94)
Distributions from capital gains.......... - (0.21) (0.38) (0.39) (0.35) -
-------------- ---------- ---------- ---------- ---------- ----------
Total distributions.............. (1.47) (3.24) (3.56) (3.62) (3.66) (0.94)
-------------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period.................. $ 36.41 $ 35.79 $ 36.85 $ 35.95 $ 36.24 $ 34.48
============== ========== ========== ========== ========== ==========
Total return.................................... 5.91% (2) 6.00% 12.90% 9.61% 16.49% 1.21% (2)
Ratios/Supplemental data
Net assets, end of period (in thousands)........ $ 309,721 $ 263,912 $ 119,196 $ 69,614 $ 42,192 $ 9,602
Ratio of expenses to average net assets......... 0.43% (3) 0.45% 0.45% 0.50% 0.54% 0.54% (3)
Ratio of net income to average net assets....... 8.21% (3) 8.28% 8.60% 8.90% 9.36% 9.86% (3)
Portfolio turnover rate......................... 45.59% (3) 70.56% 68.96% 56.06% 45.64% 72.67% (3)
(1) From inception of operations.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
</TABLE>
1
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
APRIL 30, 1999
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
CORPORATE BONDS (96.0%)
INDUSTRIAL (77.1%)
BASIC INDUSTRY & MANUFACTURING (6.8%)
MANUFACTURING (6.1%)
AVIATION SALES CO.
SENIOR SUBORDINATED NOTES
8.125% 02/15/2008 $ 7,185,000 $ 7,202,962
BALL CORP.
SENIOR NOTES
7.750% 08/01/2006 2,450,000 2,529,625
BALL CORP.
SENIOR SUBORDINATED NOTES
8.250% 08/01/2008 1,390,000 1,438,650
SILGAN HOLDINGS, INC.
SENIOR SUBORDINATED DEBENTURES
9.000% 06/01/2009 2,715,000 2,796,450
TITAN WHEEL INTERNATIONAL, INC.
SENIOR SUBORDINATED NOTES
8.750% 04/01/2007 5,100,000 4,845,000
------------
18,812,687
------------
METALS/MINING (0.7%)
RYERSON TULL, INC.
NOTES
8.500% 07/15/2001 2,250,000 2,317,500
------------
TOTAL BASIC INDUSTRY & MANUFACTURING 21,130,187
------------
BUSINESS & CONSUMER SERVICES (34.5%)
SERVICES & PUBLISHING (8.2%)
ALLIED WASTE NORTH AMERICA, INC.
SENIOR NOTES, SERIES B
7.625% 01/01/2006 2,800,000 2,737,000
IRON MOUNTAIN, INC.
SENIOR SUBORDINATED NOTES
10.125% 10/01/2006 4,500,000 4,871,250
PROTECTION ONE ALARM MONITORING, INC.
SENIOR NOTES
7.375% 08/15/2005 6,450,000 6,296,812
RENTAL SERVICE CORP.
SENIOR SUBORDINATED NOTES
9.000% 05/15/2008 6,460,000 6,524,600
See accompanying notes to financial statements.
2
<PAGE>
- -------------------------------------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
UNITED STATIONERS SUPPLY CO.
SENIOR SUBORDINATED NOTES
8.375% 04/15/2008 $ 4,565,000 $ 4,587,825
WORLD COLOR PRESS, INC.
SENIOR SUBORDINATED NOTES
8.375% 11/15/2008 500,000 505,000
------------
25,522,487
------------
ENTERTAINMENT & MEDIA (26.3%)
ADELPHIA COMMUNICATIONS CORP.
SENIOR NOTES, SERIES B
10.500% 07/15/2004 5,965,000 6,576,412
BRESNAN COMMUNICATIONS GROUP L.L.C. (144A)
SENIOR NOTES
8.000% 02/01/2009 500,000 513,750
CAPSTAR BROADCASTING CORP.
SENIOR SUBORDINATED NOTES, SERIES B
10.750% 05/15/2006 1,442,000 1,615,040
CENTURY COMMUNICATIONS CORP.
SENIOR DISCOUNT NOTES
0.000% 03/15/2003 6,985,000 5,029,200
CINEMARK USA, INC.
SENIOR SUBORDINATED NOTES, SERIES B
9.625% 08/01/2008 5,075,000 5,227,250
COMCAST CORP.
SENIOR SUBORDINATED DEBENTURES
9.500% 01/15/2008 5,825,000 6,141,298
HOLLINGER INTERNATIONAL PUBLISHING, INC.
SENIOR NOTES
8.625% 03/15/2005 6,160,000 6,375,600
JACOR COMMUNICATIONS CO.
SENIOR SUBORDINATED NOTES, SERIES B
8.750% 06/15/2007 4,475,000 4,765,875
JONES INTERCABLE, INC.
SENIOR NOTES
8.875% 04/01/2007 3,740,000 4,085,950
7.625% 04/15/2008 1,700,000 1,797,750
LAMAR ADVERTISING CO.
SENIOR SUBORDINATED NOTES
9.625% 12/01/2006 5,960,000 6,377,200
LENFEST COMMUNICATIONS, INC.
SENIOR NOTES
8.375% 11/01/2005 5,200,000 5,564,000
See accompanying notes to financial statements.
3
<PAGE>
- -------------------------------------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
NEWS CORPORATION LTD.
SENIOR SUBORDINATED NOTES
8.750% 02/15/2006 $ 2,250,000 $ 2,368,125
OUTDOOR SYSTEMS, INC.
SENIOR SUBORDINATED NOTES
9.375% 10/15/2006 5,990,000 6,424,275
PRIMEDIA, INC.
SENIOR NOTES
10.250% 06/01/2004 2,600,000 2,723,500
SINCLAIR BROADCAST GROUP, INC.
SENIOR SUBORDINATED NOTES
8.750% 12/15/2007 4,250,000 4,271,250
USA NETWORKS, INC. (144A)
SENIOR NOTES
6.750% 11/15/2005 7,000,000 6,956,250
YOUNG BROADCASTING, INC.
SENIOR SUBORDINATED NOTES, SERIES B
10.125% 02/15/2005 4,250,000 4,499,688
------------
81,312,413
------------
TOTAL BUSINESS & CONSUMER SERVICES 106,834,900
------------
CONSUMER CYCLICAL (13.5%)
AUTO & AUTO PARTS (3.5%)
AMERICAN AXLE & MANUFACTURING, INC. (144A)
SENIOR SUBORDINATED NOTES
9.750% 03/01/2009 3,000,000 3,120,000
FEDERAL MOGUL CORP.
NOTES
7.750% 07/01/2006 1,960,000 1,963,763
HAYES WHEELS INTERNATIONAL, INC.
SENIOR SUBORDINATED NOTES, SERIES B
9.125% 07/15/2007 5,465,000 5,710,925
------------
10,794,688
------------
HOTELS & GAMING (3.1%)
HARRAHS OPERATING, INC.
GUARANTEED SENIOR NOTES
7.500% 01/15/2009 5,750,000 5,773,000
RIO HOTEL & CASINO, INC.
SENIOR SUBORDINATED NOTES
9.500% 04/15/2007 3,500,000 3,972,500
------------
9,745,500
------------
See accompanying notes to financial statements.
4
<PAGE>
- -------------------------------------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
HOUSING RELATED (2.8%)
NORTEK, INC.
SENIOR NOTES, SERIES B
9.125% 09/01/2007 $ 3,000,000 $ 3,097,500
NORTEK, INC. (144A)
SENIOR NOTES
8.875% 08/01/2008 450,000 463,500
WEBB (DEL) CORP.
SENIOR SUBORDINATED DEBENTURES
9.000% 02/15/2006 4,990,000 5,002,475
------------
8,563,475
------------
RETAIL (4.1%)
AMES DEPARTMENT STORES (144A)
SENIOR NOTES
10.000% 04/15/2006 4,000,000 3,950,000
MAXIM GROUP, INC.
SENIOR SUBORDINATED NOTES, SERIES B
9.250% 10/15/2007 3,100,000 3,061,250
ZALE CORP.
SENIOR NOTES, SERIES B
8.500% 10/01/2007 5,650,000 5,777,125
------------
12,788,375
------------
TOTAL CONSUMER CYCLICAL 41,892,038
------------
CONSUMER STAPLES (10.5%)
FOOD/BEVERAGE/TOBACCO (2.0%)
PURINA MILLS, INC.
SENIOR SUBORDINATED NOTES
9.000% 03/15/2010 3,000,000 2,610,000
TRICON GLOBAL RESTAURANTS, INC.
SENIOR NOTES
7.450% 05/15/2005 3,500,000 3,565,625
------------
6,175,625
------------
HEALTH CARE (5.9%)
CONMED CORP.
SENIOR SUBORDINATED NOTES
9.000% 03/15/2008 4,110,000 4,120,275
HEALTHSOUTH CORP.
SENIOR SUBORDINATED NOTES
9.500% 04/01/2001 6,843,000 7,013,391
QUORUM HEALTH GROUP, INC.
SENIOR SUBORDINATED NOTES
8.750% 11/01/2005 1,325,000 1,325,000
See accompanying notes to financial statements.
5
<PAGE>
- -------------------------------------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
TENET HEALTHCARE CORP.
SENIOR NOTES
8.625% 12/01/2003 $ 2,250,000 $ 2,278,125
TENET HEALTHCARE CORP. (144A)
SENIOR SUBORDINATED NOTES
8.125% 12/01/2008 3,500,000 3,430,000
------------
18,166,791
------------
HOUSEHOLD PRODUCTS (0.3%)
THE SCOTTS CO. (144A)
SENIOR SUBORDINATED NOTES
8.625% 01/15/2009 1,000,000 1,035,000
------------
OTHER (2.3%)
WESTPOINT STEVENS, INC.
SENIOR NOTES
7.875% 06/15/2005 6,950,000 7,106,375
------------
TOTAL CONSUMER STAPLES 32,483,791
------------
ENERGY (6.6%)
GULF CANADA RESOURCES LTD.
SENIOR SUBORDINATED DEBENTURES
9.625% 07/01/2005 5,000,000 5,112,500
NEWPARK RESOURCES, INC.
SENIOR SUBORDINATED NOTES, SERIES B
8.625% 12/15/2007 6,630,000 6,397,950
SANTA FE ENERGY RESOURCE, INC.
SENIOR SUBORDINATED DEBENTURES
11.000% 05/15/2004 5,500,000 5,788,750
VINTAGE PETROLEUM, INC. (144A)
SENIOR SUBORDINATED NOTES
9.750% 06/30/2009 3,000,000 3,097,500
------------
20,396,700
------------
TECHNOLOGY (2.2%)
UNISYS CORP.
SENIOR NOTES
11.750% 10/15/2004 6,050,000 6,851,625
------------
TRANSPORTATION (3.0%)
ALLIED HOLDING, INC.
SENIOR NOTES, SERIES B
8.625% 10/01/2007 5,500,000 5,335,000
See accompanying notes to financial statements.
6
<PAGE>
- -------------------------------------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
TEEKAY SHIPPING CORP.
GTD. 1ST PFD. SHIP. MTG. NOTES
8.320% 02/01/2008 $ 3,925,000 $ 3,856,313
------------
9,191,313
------------
TOTAL INDUSTRIAL 238,780,554
------------
UTILITIES (17.5%)
ELECTRIC (8.5%)
AES CORP.
SENIOR SUBORDINATED NOTES
10.250% 07/15/2006 4,700,000 4,982,000
AES CORP.
SENIOR SUBORDINATED EXCHANGE NOTES
8.375% 08/15/2007 3,500,000 3,465,000
CMS ENERGY X-TRAS (144A)
PASS THRU TRUST I
SENIOR UNSECURED NOTES
7.000% 01/15/2005 6,235,000 6,080,746
CALPINE CORP.
SENIOR NOTES
7.625% 04/15/2006 3,500,000 3,477,565
NIAGARA MOHAWK POWER CORP.
SENIOR NOTES, SERIES D
7.250% 10/01/2002 8,000,000 8,140,320
------------
26,145,631
------------
TELECOMMUNICATIONS (9.0%)
FLAG LTD.
SENIOR NOTES
8.250% 01/30/2008 6,710,000 6,659,675
LEVEL 3 COMMUNICATIONS, INC.
SENIOR NOTES
9.125% 05/01/2008 3,465,000 3,542,963
LEVEL 3 COMMUNICATIONS, INC. (144A)
SENIOR DISCOUNT NOTES
STEP-UP COUPON
0.000% TO 12/01/2003, THEN 10.500% TO 12/01/2008 3,700,000 2,377,250
MCLEODUSA, INC.(144A)
SENIOR NOTES
8.125% 02/15/2009 6,000,000 5,955,000
METROMEDIA FIBER NETWORK, INC. (144A)
SENIOR NOTES
10.000% 11/15/2008 1,000,000 1,075,000
See accompanying notes to financial statements.
7
<PAGE>
- -------------------------------------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
NEXTLINK COMMUNICATIONS, INC.
SENIOR DISCOUNT NOTES
STEP-UP COUPON
0.000% TO 04/15/2003, THEN 9.450% TO 04/15/2008 $ 3,450,000 $ 2,225,250
NEXTLINK COMMUNICATIONS, INC. (144A)
SENIOR NOTES
10.750% 11/15/2008 2,500,000 2,675,000
PAGING NETWORK, INC.
SENIOR SUBORDINATED NOTES
10.000% 10/15/2008 4,150,000 3,444,500
------------
27,954,638
------------
TOTAL UTILITIES 54,100,269
------------
YANKEE (1.4%)
KOREA DEVELOPMENT BANK
BONDS
6.500% 11/15/2002 4,500,000 4,363,965
------------
TOTAL CORPORATE BONDS
(COST $298,445,417) 297,244,788
------------
REPURCHASE AGREEMENT (2.2%)
J.P. MORGAN SECURITIES, INC.
4.919% DATED 04/30/1999,
DUE 05/03/1999 IN THE
AMOUNT OF $6,903,884.
COLLATERALIZED BY
U.S. TREASURY NOTES 3.375%
DUE 01/15/2007.
(COST $6,902,954) 6,902,954 6,902,954
------------
TOTAL INVESTMENTS (98.2%)
(COST $305,348,371) 304,147,742
RECEIVABLES LESS LIABILITIES (1.8%) 5,573,167
------------
NET ASSETS (100.0%) $309,720,909
============
See accompanying notes to financial statements.
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
- -----------------------------------------------------------------------------------------------
April 30, 1999
<S> <C>
ASSETS:
Investments at identified cost ............................................... $ 298,445,417
- -------------------------------------------------------------------------------- -------------
Investments at value ......................................................... $ 297,244,788
Temporary cash investment, at cost ........................................... 6,902,954
Interest receivable........................................................... 6,115,895
Capital stock sold............................................................ 85,000
-------------
Total assets.................................................................. 310,348,637
-------------
LIABILITIES:
Payable for:
Capital stock redeemed...................................................... 375,000
Dividends and distributions................................................. 236,383
Accrued expenses ........................................................... 16,345
-------------
Total liabilities............................................................. 627,728
-------------
NET ASSETS ..................................................................... $ 309,720,909
=============
Net assets consist of:
Unrealized depreciation on investments...................................... (1,200,629)
Undistributed net realized loss from investments............................ (1,400,956)
Capital paid in ............................................................ 312,322,494
-------------
$ 309,720,909
=============
Shares of capital stock outstanding ............................................ 8,505,475
=============
Net asset value, offering and
redemption price per share *................................................. $ 36.41
=============
* The net asset value per share is computed by dividing net assets applicable to outstanding
shares by shares of capital stock outstanding.
See accompanying notes to financial statements.
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
STATEMENT OF OPERATIONS (Unaudited)
- -----------------------------------------------------------------------------------------------
For the Six Months Ended April 30, 1999
<S> <C>
INVESTMENT INCOME:
Income:
Interest.............................................................. $ 12,560,930
-------------
Expenses:
Investment management fees ........................................... $ 585,903
Shareholder servicing costs........................................... 9,000
Financial information and accounting.................................. 3,632
Custodian fees........................................................ 5,847
Bank transaction and checking fees.................................... 900
Registration fees..................................................... 110
Legal, insurance and auditing fees.................................... 15,249
Other................................................................. 6,200
------------
Total expenses.................................................... 626,841
------------
Net investment income..................................................... 11,934,089
------------
Realized loss and unrealized appreciation from investment transactions:
Net realized loss from investments........................................ (1,443,286)
Net unrealized appreciation on investments during the period.............. 6,071,632
------------
Net gain on investments................................................... 4,628,346
------------
Net increase in net assets resulting from operations...................... $ 16,562,435
============
See accompanying notes to financial statements.
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
Six Months
Ended
April 30,1999 Year Ended
(Unaudited) October 31, 1998
------------- ----------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income ............................................... $ 11,934,089 $ 17,447,259
Net realized gain (loss) from investments............................ (1,443,286) 1,542,274
Change in net unrealized appreciation (depreciation)
on investments.................................................... 6,071,632 (9,721,765)
------------- -------------
Net increase in net assets resulting from operations................. 16,562,435 9,267,768
Distributions to shareholders:
From net investment income........................................... (11,934,089) (17,447,259)
From net realized gain from investment transactions.................. - (1,530,874)
Capital share transactions, net .......................................... 41,181,007 154,425,524
------------- -------------
Net increase in net assets........................................... 45,809,353 144,715,159
NET ASSETS:
Beginning of period....................................................... 263,911,556 119,196,397
------------- -------------
End of period ............................................................ $ 309,720,909 $ 263,911,556
============= =============
See accompanying notes to financial statements.
</TABLE>
11
<PAGE>
- --------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS (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 three
other portfolios, CMC Small Cap Fund, CMC International Stock Fund and CMC Short
Term Bond Fund, which are not included in this financial statement. 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. Portfolio securities are valued using current market
valuations. These values are based on prices obtained from a pricing service
provided by a major dealer in bonds, when such prices are available. However, in
circumstances where deemed appropriate to do so, the securities will be valued
at the representative bid price quoted by a market maker in the securities or,
if such prices are not available, at prices for securities of comparable
maturity, quality and type. Where pricing services or market quotations are not
readily available, securities will be valued at fair value as determined in good
faith under procedures established by and under the general supervision of the
Trustees. Temporary cash investments in short-term securities (with maturities
of less than 60 days), principally repurchase agreements, are valued at cost,
which approximates market value.
Interest income. Interest income is recorded on the accrual basis.
Amortization of discount or premium is recorded over the life of the respective
instrument.
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 ex-dividend 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. Realized gains and losses from investment transactions and
unrealized appreciation or depreciation of investments are reported on the basis
of identified costs.
12
<PAGE>
- --------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS (Unaudited), CONTINUED
- --------------------------------------------------------------------------------
1. Significant accounting policies (continued):
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 adviser 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, 1999, 4.2% of the Fund's debt securities were
rated Baa, 46.0% were rated Ba, 49.0% were rated B, and 0.9% were rated Caa by
Moody's Investor Services, Inc.
13
<PAGE>
- --------------------------------------------------------------------------------
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 loss and net unrealized
depreciation of investments, excluding temporary cash investments, as of and for
the six months ended April 30,1999 were as follows:
<TABLE>
<CAPTION>
<S> <C>
Purchases:
Investment securities other than U.S. Government obligations................. $ 77,272,902
U.S. Government obligations.................................................. 18,698,750
------------
Total purchases......................................................... $ 95,971,652
============
Sales and Maturities:
Investment securities other than U.S. Government obligations................. $ 43,467,424
U.S. Government obligations.................................................. 18,521,406
------------
Total sales and maturities.............................................. $ 61,988,830
============
Net Realized Loss:
Investment securities other than U.S. Government obligations................. $ (1,265,942)
U.S. Government obligations.................................................. (177,344)
------------
Total net realized loss................................................. $ (1,443,286)
============
Unrealized Appreciation (Depreciation) for
federal income tax purposes as of April 30, 1999:
Appreciation.................................................................. $ 3,435,889
Depreciation.................................................................. (4,636,518)
------------
Net unrealized depreciation................................................. $ (1,200,629)
============
For federal income tax purposes, the cost of
investments owned at April 30, 1999............................................. $298,445,417
============
</TABLE>
3. Capital Stock:
<TABLE>
<CAPTION>
Six Months
Ended
April 30,1999 Year Ended
(Unaudited) October 31, 1998
------------- ----------------
<S> <C> <C>
Shares:
Shares sold................................................. 1,784,637 5,056,688
Shares issued for reinvestment of dividends................. 287,103 449,779
------------- ----------------
2,071,740 5,506,467
Less shares redeemed........................................ (939,736) (1,367,967)
------------- ----------------
Net increase in shares...................................... 1,132,004 4,138,500
============= ================
Amounts:
Sales....................................................... $ 65,011,000 $ 188,362,556
Reinvestment of dividends................................... 10,485,007 16,572,230
------------- ----------------
75,496,007 204,934,786
Less redemptions............................................ (34,315,000) (50,509,262)
------------- ----------------
Net increase................................................ $ 41,181,007 $ 154,425,524
============= ================
Capital stock authorized (shares) 100,000,000
</TABLE>
14
<PAGE>
- --------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS, CONTINUED
- --------------------------------------------------------------------------------
4. Transactions with affiliates and related parties:
<TABLE>
<CAPTION>
<S> <C>
Investment management fees incurred.............................................$ 585,903
Investment management fee
computation basis (percentage of daily net assets
per annum).................................................................... 0.40 of 1%
Transfer agent fee (included in shareholder
servicing costs)..............................................................$ 9,000
Fees earned by trustees not affiliated with the Fund's
investment adviser or transfer agent (included in other expenses).............$ 4,495
</TABLE>
The transfer agent for the Fund is Columbia Trust Company (CTC), an affiliate of
CMC. 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 (the Trust).
J. Jerry Inskeep, Jr., an officer and trustee of the Trust, is affiliated with
Fleet Financial Group, Inc., the parent corporation of CMC and CTC, but received
no compensation or other payments from the Trust during the period.
15
<PAGE>
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SEMI-ANNUAL REPORT
(Unaudited)
April 30, 1999
1300 S.W. Sixth, P.O. Box 1350, Portland, OR 97207
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout Each Period)
- ---------------------------------------------------------------------------------------------------------
Six Months February 2,
Ended to
April 30, 1999 October 31,
(Unaudited) 1998 (1)
-------------- --------------
<S> <C> <C>
Net asset value, beginning of period................................ $ 12.09 $ 12.00
-------------- --------------
Income from investment operations:
Net investment income.......................................... 0.35 0.54
Net gains or losses on securities (both realized
or unrealized)............................................... (0.14) 0.09
-------------- --------------
Total from investment operations..................... 0.21 0.63
-------------- --------------
Less distributions:
Dividends from net investment income.......................... (0.35) (0.54)
-------------- --------------
Net asset value, end of period...................................... $ 11.95 $ 12.09
============== ==============
Total return ....................................................... 1.78% (2) 5.38% (2)
Ratios/Supplemental data
Net assets, end of period (in thousands)............................ $ 100,620 $ 42,692
Ratio of expenses to average net assets............................. 0.25% (3) 0.25% (3)
Ratio of net income to average net assets........................... 6.10% (3) 5.97% (3)
Portfolio turnover rate............................................. 144.45% (3) 132.09% (3)
Ratio of net income to average net assets before
voluntary reimbursement.......................................... 0.36% (3) 0.38% (3)
(1) From inception of operations.
(2) Not annualized.
(3) Annualized.
See accompanying notes to financial statements.
</TABLE>
1
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
APRIL 30, 1999
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
U.S. GOVERNMENT SECURITIES (34.7%)
U.S. TREASURY NOTES & BONDS (5.2%)
5.375% 07/31/2000 $ 1,420,000 $ 1,426,213
7.000% 07/15/2006 3,425,000 3,744,487
------------
5,170,700
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
(GNMA) (10.3%)
6.000% 03/15/2028 - 05/15/2029 2,609,525 2,529,609
6.500% 03/15/2029 - 05/15/2029 2,598,708 2,584,090
7.000% 11/15/2027 - 03/15/2029 5,217,915 5,297,814
------------
10,411,513
------------
FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (0.3%)
8.750% 02/01/2001 - 04/01/2002 301,381 304,395
------------
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (14.4%)
FHLMC (10.8%)
FHLMC MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 1543 CL. XN
7.000% 07/15/2023 265,000 270,284
FHLMC MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 2057 CL. PD
6.750% 11/15/2026 350,000 353,037
FHLMC MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 2068 CL. CL
6.500% 03/15/2026 370,000 370,819
FHLMC MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 2065 CL. PG
6.000% 04/15/2021 210,000 210,442
FHLMC MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 2104 CL. PD
6.000% 05/15/2021 2,000,000 1,991,400
FHLMC MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 2103 CL. TC
6.000% 11/15/2023 320,000 315,098
FHLMC MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 2110 CL. PD
6.000% 11/15/2026 2,500,000 2,431,781
FHLMC MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 2114 CL. PE
6.000% 11/15/2023 290,000 286,336
See accompanying notes to financial statements.
2
<PAGE>
- -------------------------------------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
U.S. GOVERNMENT SECURITIES (CONTINUED)
FHLMC MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 2113 CL. MU
6.500% 08/15/2027 $ 1,330,000 $ 1,333,480
FHLMC MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 2113 CL. QE
6.000% 11/15/2027 1,440,000 1,400,544
FHLMC MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 1570 CL. D
0.000% 03/15/2000 199,208 194,662
FHLMC MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 1767 CL. H
7.500% 09/15/2022 900,000 929,637
FHLMC GNMA MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES G40 CL. N
6.500% 05/17/2021 804,178 804,383
------------
10,891,903
------------
FNMA (3.0%)
FNMA GTD. REMIC PASS THRU CTF.
REMIC TR. 1993-87 CL. G
6.500% 01/25/2019 270,000 271,787
FNMA GTD. REMIC PASS THRU CTF.
REMIC TR. 1993-87 CL. H
6.500% 10/25/2001 1,300,000 1,302,431
FNMA GTD. REMIC PASS THRU CTF.
REMIC TR. 1993-241 CL. PE
0.000% 10/25/1999 205,824 203,058
FNMA GTD. REMIC PASS THRU CTF.
REMIC TR. 1994-10 CL. KC
6.500% 10/25/2010 400,000 401,977
FNMA GTD. REMIC PASS THRU CTF.
REMIC TR. 1994-97 CL. PB
0.000% 06/25/1999 72,100 71,604
FNMA GTD. REMIC PASS THRU CTF.
REMIC TR. G97-3 CL. VB
7.000% 08/20/2006 250,000 255,050
FNMA GTD. REMIC PASS THRU CTF.
REMIC TR. 1997-63 CL. PH
7.000% 07/18/2026 480,000 489,379
------------
2,995,286
------------
OTHER AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS (0.6%)
RYLAND ACCEPTANCE CORP. FOUR
SERIES 26 CL. C
9.000% 12/01/2016 133,942 135,866
See accompanying notes to financial statements.
3
<PAGE>
- -------------------------------------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
U.S. GOVERNMENT SECURITIES (CONTINUED)
WESTAM MORTGAGE FINANCIAL CORP.
SERIES 10 CL. C
0.000% 02/26/2002 $ 420,260 $ 407,794
------------
543,660
------------
TOTAL AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS 14,430,849
------------
OTHER GOVERNMENT AGENCY (4.5%)
A.I.D., MOROCCO
5.062% 05/01/2023 400,000 389,000
SMALL BUSINESS ADMINISTRATION
5.375% 10/25/2021 - 06/25/2022 2,188,837 2,199,674
5.500% 07/25/2021 - 11/25/2021 456,725 459,294
5.875% 01/25/2017 1,473,864 1,483,076
------------
4,531,044
------------
TOTAL U.S. GOVERNMENT SECURITIES
(COST $35,167,534) 34,848,501
------------
OTHER SECURITIZED LOANS (23.5%)
ASSET BACKED SECURITIES (20.3%)
ABFS MORTGAGE LOAN TRUST
SERIES 1997-2 CL. A-5
7.125% 01/15/2029 300,000 305,538
AFC HOME EQUITY LOAN TRUST
SERIES 1993-1 CL. A
5.900% 05/20/2008 576,328 576,711
CITYSCAPE HOME EQUITY LOAN TRUST
SERIES 1997-B CL. A-7
7.410% 05/25/2028 320,000 330,568
CITYSCAPE HOME LOAN OWNER TRUST
SERIES 1997-3 CL. A-5
7.890% 07/25/2018 850,000 861,550
CITYSCAPE HOME LOAN OWNER TRUST
SERIES 1997-4 CL. A-4
7.440% 10/25/2018 2,000,000 2,003,936
CONTIMORTGAGE HOME EQUITY LOAN TRUST
SERIES 1997-3 CL. A-8
7.580% 08/15/2028 2,000,000 2,087,325
CORESTATES HOME EQUITY TRUST
SERIES 1996-1 CL. A-2
6.750% 12/15/2005 39,828 40,008
See accompanying notes to financial statements.
4
<PAGE>
- -------------------------------------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
OTHER SECURITIZED LOANS (CONTINUED)
CROWN HOME EQUITY LOAN TRUST
SERIES 1996-1 CL. A-5
7.300% 04/25/2027 $ 450,000 $ 463,905
FIRST UNION STUDENT LOAN TRUST
SERIES 1997-1 CL. A-1
5.037% 07/25/2004 1,773,746 1,763,891
FIRSTPLUS HOME LOAN OWNER TRUST
SERIES 1996-4 CL. A-5
6.530% 07/10/2011 1,000,000 1,006,705
FIRSTPLUS HOME LOAN OWNER TRUST
SERIES 1997-3 CL. A-6
7.080% 07/10/2017 2,040,000 2,075,815
GREEN TREE FINANCIAL CORP.
SERIES 1996-4 CL. A-7
7.900% 06/15/2027 1,215,000 1,300,941
IMC HOME EQUITY LOAN TRUST
SERIES 1995-3 CL. A-5
7.500% 04/25/2026 300,000 309,914
IMC HOME EQUITY LOAN TRUST
SERIES 1997-3 CL. A-6
7.520% 08/20/2028 830,000 866,437
MORGAN STANLEY CAPITAL I, INC.
SERIES 1997-C1 CL. A-1C
7.630% 02/15/2020 492,500 521,065
NEW CENTURY HOME EQUITY LOAN TRUST
SERIES 1997-NC5 CL. A-4
6.780% 08/25/2025 1,450,000 1,471,090
OAKWOOD MORTGAGE INVESTORS, INC.
SERIES 1996-C CL. A-3
6.750% 04/15/2027 275,000 277,600
SLM STUDENT LOAN TRUST
SERIES 1998-1 CL. A-1
5.167% 01/25/2007 1,306,962 1,304,289
SOUTHERN PACIFIC SECURED ASSETS CORP.
SERIES 1996-2 CL. A-5
7.690% 04/25/2025 250,000 257,917
STRUCTURED ASSET SECURITIES CORP.
SERIES 1997-4 CL. 2-A2
7.000% 12/25/2027 211,678 214,200
UACSC AUTO TRUST
SERIES 1998-A CL. A-3
6.050% 06/10/2002 1,300,000 1,309,913
See accompanying notes to financial statements.
5
<PAGE>
- -------------------------------------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
OTHER SECURITIZED LOANS (CONTINUED)
UCFC FUNDING CORP.
SERIES 1997-1 CL. A-3
7.055% 09/15/2013 $ 1,010,000 $ 1,026,217
------------
20,375,535
------------
COLLATERALIZED MORTGAGE OBLIGATIONS (0.5%)
GE CAPITAL MORTGAGE SERVICES, INC.
SERIES 1995-HE1 CL. A-6
7.500% 09/25/2010 144,051 146,488
PNC MORTGAGE SECURITIES CORP.
SERIES 1997-4 CL. 2PP-2
7.500% 07/25/2027 440,000 453,098
------------
599,586
------------
COMMERCIAL MORTGAGE BACKED SECURITIES (2.7%)
FDIC REMIC TRUST
SERIES 1994-C1 CL. 2-A2
7.850% 09/25/2025 142,673 143,399
LB COMMERCIAL CONDUIT MORTGAGE TRUST
SERIES 1995-C2 CL. A
7.204% 08/25/2004 448,004 459,937
NOMURA ASSET SECURITIES CORP.
SERIES 1994-MD1 CL. A-1B
7.717% 03/15/2018 1,514,362 1,549,688
NOMURA ASSET SECURITIES CORP.
SERIES 1996-MD5 CL. A-1B
7.120% 04/13/2036 530,000 544,530
------------
2,697,554
------------
TOTAL OTHER SECURITIZED LOANS
(COST $23,526,475) 23,672,675
------------
CORPORATE BONDS (33.3%)
INDUSTRIAL (19.1%)
CATERPILLAR FINANCIAL SERVICES CORP.
MEDIUM TERM NOTES
5.800% 03/15/2000 2,000,000 2,007,840
CHRYSLER FINANCIAL CORP.
MEDIUM TERM NOTES, SERIES S
5.250% 10/19/2000 900,000 896,184
COCA-COLA ENTERPRISES, INC.
6.375% 08/01/2001 800,000 811,784
See accompanying notes to financial statements.
6
<PAGE>
- -------------------------------------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
DEERE (JOHN) CAPITAL CORP.
5.350% 10/23/2001 $ 450,000 $ 445,779
DISNEY (WALT) CO.
MEDIUM TERM NOTES
5.600% 01/13/2000 1,500,000 1,503,960
FEDERATED DEPARTMENT STORES, INC.
6.125% 09/01/2001 425,000 427,584
FORD MOTOR CREDIT CO.
6.500% 02/28/2002 300,000 305,217
GENERAL ELECTRIC CAPITAL CORP.
MEDIUM TERM NOTES
5.650% 03/31/2003 750,000 748,538
GENERAL MOTORS ACCEPTANCE CORP.
MEDIUM TERM NOTES
5.330% 10/20/2000 500,000 498,030
GENERAL MOTORS ACCEPTANCE CORP.
8.400% 10/15/1999 2,000,000 2,028,240
INTERNATIONAL BUSINESS MACHINES CREDIT CORP.
MEDIUM TERM NOTES
5.575% 08/27/1999 1,250,000 1,251,563
MCDONALD'S CORP.
6.000% 06/23/2002 750,000 758,685
PEPSI BOTTLING HOLDINGS, INC. (144A)
5.375% 02/17/2004 1,000,000 975,000
PHILIP MORRIS COS., INC.
8.750% 06/01/2001 1,300,000 1,370,083
PROCTER & GAMBLE CO.
5.250% 09/15/2003 1,000,000 980,800
RAYTHEON CO.
6.300% 08/15/2000 450,000 453,348
SERVICE CORP. INTERNATIONAL
6.300% 03/15/2003 300,000 294,888
SHELL OIL CO.
6.625% 07/01/1999 1,000,000 1,002,280
TYCO INTERNATIONAL GROUP S.A.
6.125% 06/15/2001 750,000 754,537
TYCO INTERNATIONAL GROUP S.A.
6.250% 06/15/2003 500,000 503,445
USA WASTE SERVICES, INC.
6.125% 07/15/2001 400,000 400,660
WAL-MART STORES, INC.
5.650% 02/01/2000 750,000 754,980
------------
19,173,425
------------
See accompanying notes to financial statements.
7
<PAGE>
- -------------------------------------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
FINANCIAL (10.0%)
AMERICAN EXPRESS CREDIT CORP.
6.125% 06/15/2000 $ 2,000,000 $ 2,012,440
ASSOCIATES CORP. N.A.
6.375% 06/15/2000 1,000,000 1,009,180
BANKAMERICA CORP.
5.875% 02/15/2009 480,000 460,670
BEAR STEARNS COS., INC.
6.125% 02/01/2003 250,000 249,840
CIT GROUP, INC.
MEDIUM TERM NOTES
6.375% 11/15/2002 525,000 530,271
EOP OPERATING L.P.
6.376% 02/15/2002 700,000 697,053
FEDERAL HOME LOAN BANK
5.125% 02/26/2002 800,000 795,504
HOUSEHOLD FINANCE CORP.
5.875% 11/01/2002 400,000 398,860
INTERNATIONAL LEASE FINANCE CORP.
6.000% 06/15/2003 525,000 522,438
MORGAN STANLEY DEAN WITTER DISCOVER & CO.
MEDIUM TERM NOTES
5.750% 02/15/2001 550,000 551,111
MORGAN STANLEY DEAN WITTER DISCOVER & CO.
MEDIUM TERM NOTES, SERIES C
6.090% 03/09/2001 1,000,000 1,004,090
SALOMON SMITH BARNEY HOLDINGS, INC.
6.750% 02/15/2003 450,000 460,040
SIMON PROPERTY GROUP L.P.
6.625% 06/15/2003 350,000 347,060
SPRINT CAPITAL CORP.
5.875% 05/01/2004 1,050,000 1,040,094
------------
10,078,651
------------
UTILITIES (3.9%)
ARIZONA PUBLIC SERVICE CO.
5.875% 02/15/2004 950,000 940,595
MIDAMERICAN FUNDING CORP. (144A)
5.850% 03/01/2001 2,000,000 1,997,500
TCI COMMUNICATIONS, INC.
7.250% 08/01/2005 500,000 528,525
See accompanying notes to financial statements.
8
<PAGE>
- -------------------------------------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
CORPORATE BONDS (CONTINUED)
TRANSCANADA PIPELINES LTD.
MEDIUM TERM NOTES
6.490% 01/21/2009 $ 450,000 $ 453,091
------------
3,919,711
------------
YANKEE (0.3%)
KOREA DEVELOPMENT BANK
6.500% 11/15/2002 150,000 145,465
KOREA DEVELOPMENT BANK
7.125% 04/22/2004 200,000 197,254
------------
342,719
------------
TOTAL CORPORATE BONDS
(COST $33,632,988) 33,514,506
------------
MUNICIPAL BOND (0.6%)
MULTNOMAH COUNTY SCHOOL DISTRICT
#1J PORTLAND
5.750% 06/15/2005 650,000 635,375
------------
TOTAL INVESTMENTS, EXCLUDING TEMPORARY
CASH INVESTMENTS
(COST $92,976,997) 92,671,057
------------
REPURCHASE AGREEMENTS (6.9%)
J.P. MORGAN SECURITIES, INC.
4.919% DATED 04/30/1999,
DUE 05/03/1999 IN THE
AMOUNT OF $4,863,437.
COLLATERALIZED BY
U.S. TREASURY NOTES 3.375%
DUE 01/15/2007. 4,862,782 4,862,782
MERRILL LYNCH, INC.
4.917% DATED 04/30/1999,
DUE 05/03/1999 IN THE
AMOUNT OF $2,100,283.
COLLATERALIZED BY
U.S. TREASURY STRIP NOTES 0.000%
DUE 02/15/2001 TO 08/15/2025. 2,100,000 2,100,000
------------
TOTAL REPURCHASE AGREEMENTS
(COST $6,962,782) 6,962,782
------------
See accompanying notes to financial statements.
9
<PAGE>
- -------------------------------------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
- -------------------------------------------------------------------------------------------------------------
VALUE
------------
<S> <C>
TOTAL INVESTMENTS (99.0%)
(COST $99,939,779) $ 99,633,839
RECEIVABLES LESS LIABILITIES (1.0%) 986,518
------------
NET ASSETS (100.0%) $100,620,357
============
See accompanying notes to financial statements.
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
- ------------------------------------------------------------------------------------------------
April 30, 1999
<S> <C>
ASSETS:
Investments at identified cost ............................................... $ 92,976,997
- -------------------------------------------------------------------------------- ---------------
Investments at value ......................................................... $ 92,671,057
Temporary cash investment, at cost ........................................... 6,962,782
Receivable for:
Investments sold............................................................ 3,926,037
Interest.................................................................... 915,705
Expense reimbursement from investment advisor .............................. 15,858
---------------
Total assets.................................................................. 104,491,439
---------------
LIABILITIES:
Payable for:
Investments purchased....................................................... 3,855,224
Accrued expenses............................................................ 15,858
---------------
Total liabilities............................................................. 3,871,082
---------------
NET ASSETS...................................................................... $ 100,620,357
===============
Net assets consist of:
Unrealized depreciation on investments...................................... $ (305,940)
Undistributed net realized loss from investments............................ (238,042)
Capital paid in ............................................................ 101,164,339
---------------
$ 100,620,357
===============
Shares of capital stock outstanding ............................................ 8,417,169
===============
Net asset value, offering and redemption price per share *...................... $ 11.95
===============
* The net asset value per share is computed by dividing net assets applicable to outstanding
shares by shares of capital stock outstanding.
See accompanying notes to financial statements.
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
STATEMENT OF OPERATIONS (Unaudited)
- ------------------------------------------------------------------------------------------------
For the Six Months Ended April 30, 1999
<S> <C>
INVESTMENT INCOME:
Interest income ...................................................... $ 2,331,969
---------------
Expenses:
Investment management fees ........................................... 94,290
Legal, insurance and auditing fees.................................... 14,763
Shareholder servicing costs........................................... 9,000
Registration fees..................................................... 3,720
Bank transaction and checking fees.................................... 3,649
Financial information and accounting.................................. 2,439
Custodian fees........................................................ 1,568
Other................................................................. 1,240
---------------
130,669
Expenses reimbursed by investment adviser (1)......................... (36,379)
---------------
Total expenses.................................................... 94,290
---------------
Net investment income .................................................... 2,237,679
---------------
Realized loss and unrealized depreciation from
investment transactions:
Net realized loss from investments ....................................... (253,249)
Net unrealized depreciation on investments during the period ............. (622,322)
---------------
Net loss on investments .................................................. (875,571)
---------------
Net increase in net assets resulting from operations...................... $ 1,362,108
===============
(1) The Adviser has voluntarily agreed to assume ordinary expenses of the Fund, to the extent
that these expenses, together with the Fund's advisory fee, exceed 0.25% of the Fund's
average net assets.
See accompanying notes to financil statements.
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
Six Months February 2,
Ended to
April 30,1999 October 31,
(Unaudited) 1998 (1)
--------------- ---------------
<S> <C> <C>
INCREASE IN NET ASSETS:
Operations:
Net investment income ................................................ $ 2,237,679 $ 1,624,895
Net realized gain (loss) from investments............................. (253,249) 15,207
Change in net unrealized appreciation (depreciation)
on investments........................................................ (622,322) 316,382
--------------- ---------------
Net increase in net assets resulting from operations.................. 1,362,108 1,956,484
Distributions to shareholders:
From net investment income............................................ (2,237,679) (1,624,895)
Capital share transactions, net .......................................... 58,803,690 42,360,649
--------------- ---------------
Net increase in net assets............................................ 57,928,119 42,692,238
NET ASSETS:
Beginning of period....................................................... 42,692,238 -
--------------- ---------------
End of period ............................................................ $ 100,620,357 $ 42,692,238
=============== ===============
(1) From inception of operations.
See accompanying notes to financial statements.
</TABLE>
13
<PAGE>
- --------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
1. Significant accounting policies:
CMC Short Term Bond 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 three
other portfolios, CMC Small Cap Fund, CMC International Stock Fund and CMC High
Yield Fund, which are not included in this financial statement. 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. Portfolio securities are valued based on market value
as quoted by dealers who are market makers in these securities or by an
independent pricing service, unless circumstances indicate that a fair value
determination should be made using procedures and guidelines established by and
under the general supervision of the Board of Trustees. 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 cash investments in
short-term securities (with maturities of less than 60 days), principally
repurchase agreements, are valued at cost, which approximates market value.
Interest income. Interest income is recorded on the accrual basis.
Amortization of discount or premium is recorded over the life of the respective
instrument.
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 ex-dividend 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. 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 adviser 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.
14
<PAGE>
- --------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
2. Investment transactions:
Aggregate purchases, sales and maturities, net realized loss and net
unrealized depreciation of investments, excluding temporary cash investments, as
of and for the six months ended April 30, 1999, were as follows:
<TABLE>
<CAPTION>
<S> <C>
Purchases:
Investment securities other than U.S. Government obligations.................$ 46,162,345
U.S. Government obligations.................................................. 54,493,240
-------------
Total purchases.........................................................$ 100,655,585
=============
Sales and Maturities:
Investment securities other than U.S. Government obligations.................$ 11,626,079
U.S. Government obligations.................................................. 36,385,823
-------------
Total sales and maturities..............................................$ 48,011,902
=============
Net Realized Loss:
Investment securities other than U.S. Government obligations.................$ (60,725)
U.S. Government obligations.................................................. (192,524)
-------------
Total net realized loss.................................................$ (253,249)
=============
Unrealized Appreciation (Depreciation) for federal income tax purposes as of
April 30, 1999:
Appreciation..................................................................$ 226,435
Depreciation.................................................................. (538,199)
-------------
Net unrealized depreciation.................................................$ (311,764)
=============
For federal income tax purposes, the cost of
investments owned at April 30, 1999.............................................$ 92,982,821
=============
</TABLE>
3. Capital Stock:
<TABLE>
<CAPTION>
Six Months February 2,
Ended to
April 30,1999 October 31,
(Unaudited) 1998 (1)
------------- -------------
<S> <C> <C>
Shares:
Shares sold.................................................. 5,027,068 4,541,453
Shares issued for reinvestment of dividends.................. 186,375 135,212
------------- -------------
5,213,443 4,676,665
Less shares redeemed......................................... (326,856) (1,146,083)
------------- -------------
Net increase in shares....................................... 4,886,587 3,530,582
============= =============
Amounts:
Sales........................................................ $ 60,501,680 $ 54,437,600
Reinvestment of dividends.................................... 2,235,828 1,624,895
------------- -------------
62,737,508 56,062,495
Less redemptions............................................. (3,933,818) (13,701,846)
------------- -------------
Net increase................................................. $ 58,803,690 $ 42,360,649
============= =============
Capital stock authorized (shares) 100,000,000
(1) From inception of operations.
</TABLE>
15
<PAGE>
- --------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS (Unaudited), CONTINUED
- --------------------------------------------------------------------------------
4. Transactions with affiliates and related parties:
Investment management fees incurred.............................. $ 94,290
Investment management fee computation basis
(percentage of daily net assets per annum)..................... 0.25 of 1%
Transfer agent fee (included in shareholder
servicing costs)............................................... $ 9,000
Fees earned by trustees not affiliated with the Fund's
investment adviser or transfer agent (included
in other expenses)............................................. $ 781
The investment adviser of the Fund is Columbia Management Co. (CMC). In addition
to the investment management fee, each shareholder enters into a written
Administrative Services Agreement with CMC for an annual fee ranging between
0.05% and 0.20%, depending on the size of the investment in the Fund. CMC
provides each shareholder specialized reports regarding the Fund's portfolio and
performance, market conditions and economic indicators.
The transfer agent for the Fund is Columbia Trust Company (CTC), an affiliate of
CMC. 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 (the Trust).
J. Jerry Inskeep, Jr., an officer and trustee of the Trust, is affiliated with
Fleet Financial Group, Inc., the parent corporation of CMC and CTC, but received
no compensation or other payments from the Trust during the period.
16
