CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
SEMI-ANNUAL REPORT
(Unaudited)
April 30, 2000
1300 S.W. Sixth, P.O. Box 1350, Portland, OR 97207
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
CMC Fund Trust
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding Throughout Each Period)
---------------------------------------------------------------------------------------------------------------------------------
CMC SMALL CAP FUND
Six Months
Ended
April 30, 2000 Year Ended October 31,
---------------------------------------------------
(Unaudited)(1) 1999 1998 1997 1996 1995
--------------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................... $13.59 $9.96 $13.60 $13.01 $14.00 $12.34
--------------- --------- --------- --------- --------- ---------
Income from investment operations:
Net investment income (loss)....................... (0.05) (0.04) (0.03) (0.01) (0.02) 0.06
Net realized and unrealized gains (losses)
on investments................................... 6.50 3.69 (2.21) 3.52 4.20 2.71
--------------- --------- --------- --------- --------- ---------
Total from investment operations.............. 6.45 3.65 (2.24) 3.51 4.18 2.77
--------------- --------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income.............. - - - - - (0.04)
Distributions from net capital gains.............. (1.52) (0.02) (1.40) (2.92) (5.17) (1.07)
--------------- --------- --------- --------- --------- ---------
Total distributions........................... (1.52) (0.02) (1.40) (2.92) (5.17) (1.11)
--------------- --------- --------- --------- --------- ---------
Net asset value, end of period.......................... $18.52 $13.59 $9.96 $13.60 $13.01 $14.00
=============== ========= ========= ========= ========= =========
Total return............................................ 48.41% (2) 36.70% -16.49% 26.98% 30.30% 22.55%
Ratios/Supplemental data
Net assets, end of period (in thousands)................ $370,508 $240,129 $267,789 $521,770 $522,408 $537,167
Ratio of expenses to average net assets................. 0.79% 0.79% 0.77% 0.76% 0.78% 0.77%
Ratio of net income (loss) to average net assets........ (0.48)% (0.33)% (0.20)% (0.08)% (0.14)% 0.43%
Portfolio turnover rate................................. 188% 186% 159% 169% 148% 126%
(1) Ratios and portfolio turnover rates are annualized.
(2) Not annualized.
NOTE: Per share amounts have been adjusted to retroactively reflect a 4 for 1 share split effective September 1, 1999.
</TABLE>
See Accompanying Notes to Financial Statements
1
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
CMC Fund Trust
FINANCIAL HIGHLIGHTS
(For a Fund Share Outstanding Throughout Each Period)
-----------------------------------------------------------------------------------------------------------------------------
CMC INTERNATIONAL STOCK FUND
Six Months
Ended
April 30, 2000 Year ended October 31,
----------------------------------------------------------
(Unaudited)(1) 1999 1998 1997 1996 1995
--------------- ----------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $17.86 $12.54 $42.71 $42.46 $37.06 $39.51
--------------- ----------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income (loss)............... (0.01) (0.02) 0.25 0.41 0.32 0.39
Net realized and unrealized gains (losses)
on investments and foreign currency
transactions ............................ 2.65 5.34 (0.78) 6.16 5.86 (2.64)
---------------- ----------- ---------- ---------- ---------- ----------
Total from investment operations...... 2.64 5.32 (0.53) 6.57 6.18 (2.25)
---------------- ----------- ---------- ---------- ---------- ----------
Less distributions:
Dividends from net investment income....... - - - (0.46) (0.78) (0.20)
Distributions from capital gains........... (1.34) (0.00)* (29.64) (5.86) - -
---------------- ----------- ---------- ---------- ---------- ----------
Total distributions................... (1.34) (0.00) (29.64) (6.32) (0.78) (0.20)
---------------- ----------- ---------- ---------- ---------- ----------
Net asset value, end of period............... $19.16 $17.86 $12.54 $42.71 $42.46 $37.06
=============== =========== ========== ========== ========== ==========
Total return................................. 14.04% (2) 42.44% -1.24% 15.47% 16.67% -5.69%
Ratios/Supplemental data
Net assets, end of period (in thousands)..... $46,879 $30,492 $15,377 $81,471 $73,542 $68,758
Ratio of expenses to average net assets...... 1.06% 1.31% 1.04% 1.05% 1.00% 0.98%
Ratio of net income (loss) to average net assets (0.06)% (0.14)% 0.60% 0.88% 0.78% 0.99%
Portfolio turnover rate...................... 88% 96% 53% 127% 120% 158%
* Amount represents less than $0.01 per share.
(1) Ratios and portfolio turnover rates are annualized.
(2) Not annualized.
</TABLE>
See Accompanying Notes to Financial Statements
2
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
CMC SMALL CAP FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
------------------------------------------------------------------------------------------------------
April 30, 2000
SHARES VALUE
------------------ ------------------
<S> <C> <C>
COMMON STOCKS (93.8%)
BASIC INDUSTRIES & MFG. (1.5%)
MACHINERY (1.1%)
ASTEC INDUSTRIES, INC. * 163,400 $ 4,105,425
------------------
MATERIALS (0.4%)
STILLWATER MINING CO. * 49,600 1,388,800
------------------
TOTAL BASIC INDUSTRIES & MFG. 5,494,225
------------------
MEDIA/TELECOMMUNICATIONS SERVICES (5.3%)
BROADCASTING (2.7%)
CITADEL COMMUNICATIONS CORP. * 137,900 5,386,719
ENTERCOM COMMUNICATIONS CORP. * 113,020 4,803,350
------------------
10,190,069
------------------
ENTERTAINMENT (1.1%)
IMAX CORP. * 178,600 4,107,800
------------------
TELECOMMUNICATION SERVICES (1.5%)
ACTV, INC. * 26,800 485,750
GOAMERICA, INC. * 34,300 340,856
GRIC COMMUNICATIONS, INC. * 52,200 812,362
GT GROUP TELECOM, INC. (CLASS B) * 108,600 1,405,013
PC-TEL, INC. * 29,800 998,300
TELECORP PCS, INC. * 31,200 1,392,300
------------------
5,434,581
------------------
TOTAL MEDIA/TELECOMMUNICATIONS SERVICES 19,732,450
------------------
CONSUMER CYCLICAL (15.6%)
AUTO & HOUSING (0.8%)
ETHAN ALLEN INTERIORS, INC. 112,000 2,989,000
------------------
HOTELS & GAMING (0.4%)
INTRAWEST CORP. 90,000 1,395,000
------------------
LEISURE PRODUCTS (1.6%)
CALLAWAY GOLF CO. 351,800 5,848,675
------------------
POLLUTION CONTROL (1.3%)
TETRA TECH, INC. * 210,175 4,952,248
------------------
RESTAURANTS (1.8%)
CHEESECAKE FACTORY, INC. (THE) * 56,000 2,292,500
P.F. CHANGS CHINA BISTRO, INC. * 124,300 4,350,500
------------------
6,643,000
------------------
RETAIL (3.3%)
INTERTAN, INC. * 100,800 1,392,300
MICHAELS STORES, INC. * 141,100 5,564,631
PACIFIC SUNWEAR OF CALIFORNIA, INC. * 130,300 4,438,344
See Accompanying Notes to Financial Statements
3
<PAGE>
------------------------------------------------------------------------------------------------------
CMC SMALL CAP FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
------------------------------------------------------------------------------------------------------
April 30, 2000
SHARES VALUE
------------------ ------------------
COMMON STOCKS (CONTINUED)
TWEETER HOME ENTERTAINMENT GROUP, INC. * 26,850 $ 990,094
------------------
12,385,369
------------------
SERVICES (6.4%)
ACXIOM CORP. * 311,400 8,466,188
AMERICAN MANAGEMENT SYSTEMS, INC. * 102,100 3,777,700
GETTY IMAGES, INC. * 14,300 434,362
IMAGEX.COM, INC. * 51,300 391,163
MULTEX.COM, INC. * 169,600 3,445,000
NOVA CORP. * 154,570 4,888,276
TECHNOLOGY SOLUTIONS CO. * 318,600 2,090,812
------------------
23,493,501
------------------
TOTAL CONSUMER CYCLICAL 57,706,793
------------------
CONSUMER STAPLES (12.7%)
FOOD, BEVERAGE, TOBACCO (0.6%)
REXALL SUNDOWN, INC. * 110,300 2,123,275
------------------
HEALTH CARE (9.1%)
ALKERMES, INC. * 30,400 1,618,800
ALPHARMA, INC. (CLASS A) 93,700 3,619,163
ANGIOTECH PHARMACEUTICALS, INC. * 30,200 939,975
CERNER CORP. * 92,100 2,031,956
FIRST HEALTH GROUP CORP. * 120,300 3,661,631
INTELLIGENT POLYMERS LTD. * 139,000 4,795,500
MEDICAL MANAGER CORP. * 12,600 403,200
MEDICALOGIC, INC. * 17,200 199,950
PRIORITY HEALTHCARE CORP. (CLASS B) * 99,500 5,509,813
SHIRE PHARMACEUTICALS GROUP PLC ADR * 112,200 4,516,050
SPIROS DEVELOPMENT CORP. II, INC. * 62,300 891,669
TRANSKARYOTIC THERAPIES, INC. * 33,000 987,937
UNIVERSAL HEALTH SERVICES, INC. (CLASS B) * 82,000 4,489,500
------------------
33,665,144
------------------
MEDICAL DEVICES (3.0%)
ASPECT MEDICAL SYSTEMS, INC. * 53,600 2,378,500
RESMED, INC. * 164,600 5,596,400
ZOLL MEDICAL CORP. * 74,200 3,278,712
------------------
11,253,612
------------------
TOTAL CONSUMER STAPLES 47,042,031
------------------
ENERGY (11.2%)
EXPLORATION & PRODUCTION (1.3%)
DEVON ENERGY CORP. 51,400 2,476,838
See Accompanying Notes to Financial Statements
4
<PAGE>
------------------------------------------------------------------------------------------------------
CMC SMALL CAP FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
------------------------------------------------------------------------------------------------------
April 30, 2000
SHARES VALUE
------------------ ------------------
COMMON STOCKS (CONTINUED)
WESTERN GAS RESOURCES, INC. 149,600 $ 2,496,450
------------------
4,973,288
------------------
OIL SERVICES (9.9%)
COFLEXIP SA, ADR 35,800 1,816,850
GRANT PRIDECO, INC. * 101,700 1,957,725
HANOVER COMPRESSOR CO. * 93,100 5,423,075
MARINE DRILLING COS., INC. * 155,800 4,050,800
NATCO GROUP, INC. (CLASS A) * 63,600 576,375
NATIONAL-OILWELL, INC. * 68,800 1,646,900
NOBLE DRILLING CORP. * 125,500 5,012,156
PATTERSON ENERGY, INC. * 116,300 3,285,475
PRECISION DRILLING CORP. * 166,700 5,334,400
STOLT COMEX SEAWAY SA * 75,300 908,306
UTI ENERGY CORP. * 91,300 3,172,675
VERITAS DGC, INC. * 142,800 3,427,200
------------------
36,611,937
------------------
TOTAL ENERGY 41,585,225
------------------
FINANCIAL (1.2%)
BANKS
BANK UNITED CORP. (CLASS A) 67,400 2,236,838
CITY NATIONAL CORP. 58,500 2,153,531
------------------
4,390,369
------------------
REAL ESTATE INVESTMENT TRUSTS (0.8%)
OFFICE
COUSINS PROPERTIES, INC. 79,500 3,120,375
------------------
TECHNOLOGY (43.9%)
COMPUTERS (4.8%)
APEX, INC. * 125,500 3,710,094
C-COR.NET CORP. * 103,850 4,063,131
CONCURRENT COMPUTER CORP. * 158,500 1,585,000
MICROS SYSTEMS, INC. * 91,750 3,692,937
MTI TECHNOLOGY, CORP. * 27,000 418,500
RADISYS CORP. * 106,850 4,420,919
------------------
17,890,581
------------------
DATA SERVICES (1.5%)
DOCUMENTUM, INC. * 58,700 3,463,300
INTERVOICE-BRITE, INC. * 120,800 1,925,250
------------------
5,388,550
------------------
See Accompanying Notes to Financial Statements
5
<PAGE>
------------------------------------------------------------------------------------------------------
CMC SMALL CAP FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
------------------------------------------------------------------------------------------------------
April 30, 2000
SHARES VALUE
------------------ ------------------
COMMON STOCKS (CONTINUED)
PERIPHERALS (3.1%)
CROSSROADS SYSTEMS, INC. * 30,500 $ 2,154,063
MAXTOR CORP. * 226,250 2,700,859
POWER-ONE, INC. * 96,600 6,592,950
------------------
11,447,872
------------------
SEMICONDUCTORS (16.7%)
ADVANCED ENERGY INDUSTRIES, INC. * 17,750 1,224,750
ASE TEST LTD.* 33,700 998,363
ATMEL CORP. * 104,150 5,096,841
COHU, INC. 33,900 1,290,319
CREDENCE SYSTEMS CORP. * 27,300 3,897,075
DUPONT PHOTOMASKS, INC. * 36,900 2,068,706
ELECTRO SCIENTIFIC INDUSTRIES, INC. * 31,500 1,986,469
EXAR CORP. * 49,600 3,976,525
GALILEO TECHNOLOGY LTD. * 123,300 2,165,456
INTEGRATED DEVICE TECHNOLOGY, INC. * 112,300 5,397,419
LATTICE SEMICONDUCTOR CORP. * 79,550 5,359,681
MATTSON TECHNOLOGY, INC. * 116,900 5,742,713
METHODE ELECTRONICS, INC. (CLASS A) 78,600 3,275,409
MIPS TECHNOLOGIES, INC. (CLASS A) * 18,750 541,406
MMC NETWORKS, INC. * 59,350 1,572,775
PERKINELMER, INC. 94,400 5,168,400
PHOTRONICS, INC. * 115,000 3,830,938
SANDISK CORP. * 47,000 4,306,375
THERMA-WAVE, INC. * 69,500 1,911,250
VIASYSTEMS GROUP, INC. * 115,800 1,845,562
------------------
61,656,432
------------------
SOFTWARE (9.3%)
ADVENT SOFTWARE, INC. * 68,800 3,612,000
AMDOCS LTD. * 87,800 5,942,963
BINDVIEW DEVELOPMENT CORP. * 182,100 1,468,181
BSQUARE CORP. * 33,250 581,875
HNC SOFTWARE, INC. * 90,600 4,484,700
HYPERION SOLUTIONS CORP. * 43,400 1,316,241
INTERNET PICTURES CORP. * 154,235 2,429,201
MACROMEDIA, INC. * 30,600 2,662,200
MATRIXONE, INC. * 10,800 356,400
REMEDY CORP. * 85,400 4,536,875
SYMANTEC CORP. * 68,800 4,295,700
VERITY INC. * 90,300 2,929,106
------------------
34,615,442
------------------
See Accompanying Notes to Financial Statements
6
<PAGE>
------------------------------------------------------------------------------------------------------
CMC SMALL CAP FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
------------------------------------------------------------------------------------------------------
April 30, 2000
SHARES VALUE
------------------ ------------------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS EQUIPMENT (8.5%)
ADVANCED FIBRE COMMUNICATIONS, INC. * 29,450 $ 1,345,497
AMPHENOL CORP. (CLASS A) * 64,800 4,131,000
COMMSCOPE, INC. * 141,500 6,721,250
DAVOX CORP. * 47,450 1,209,975
DIGITAL MICROWAVE CORP. * 46,800 1,728,675
HARMONIC, INC. * 42,300 3,122,269
POWERWAVE TECHNOLOGIES, INC. * 12,750 2,652,797
PROXIM, INC. * 13,000 1,000,187
RF MICRO DEVICES, INC. * 28,100 2,924,156
TEKELEC * 132,650 4,642,750
TUT SYSTEMS, INC. * 43,900 2,107,200
------------------
31,585,756
------------------
TOTAL TECHNOLOGY 162,584,633
------------------
TRANSPORTATION (1.6%)
AIRLINES
ATLANTIC COAST AIRLINES HOLDINGS, INC. * 97,900 2,924,762
EGL, INC. * 100,800 2,312,100
EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. 16,900 722,475
------------------
5,959,337
------------------
TOTAL COMMON STOCKS
(COST $263,818,734) 347,615,438
------------------
CONVERTIBLE PREFERRED STOCK (0.2%)
TELECOMMUNICATIONS EQUIPMENT
NANOVATION TECHNOLOGIES, INC. (PRIVATE PLACEMENT) *
(COST $859,635) 57,309 859,635
------------------
WARRANT (0.0%)
HEALTH CARE
DURA PHARMACEUTICALS (12/31/2002) 62,300 19,469
------------------
REPURCHASE AGREEMENTS (7.4%)
J.P. MORGAN SECURITIES, INC.
5.881% DATED 04/28/2000, DUE 05/01/2000
IN THE AMOUNT OF $18,334,490.
COLLATERALIZED BY
U.S. TREASURY BILLS
0.000% DUE 10/19/2000
See Accompanying Notes to Financial Statements
7
<PAGE>
------------------------------------------------------------------------------------------------------
CMC SMALL CAP FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
------------------------------------------------------------------------------------------------------
April 30, 2000
SHARES OR
PRINCIPAL
AMOUNT VALUE
------------------ ------------------
REPURCHASE AGREEMENTS (CONTINUED)
U.S. TREASURY BONDS
7.250% TO 12.375%
DUE 05/15/2004 TO 08/15/2022
U.S. TREASURY NOTES
6.625% TO 8.000%
DUE 05/15/2001 TO 04/30/2002 $ 18,331,537 $ 18,331,537
MERRILL LYNCH
5.881% DATED 04/28/2000, DUE 05/01/2000
IN THE AMOUNT OF $8,901,434.
COLLATERALIZED BY
U.S. TREASURY STRIPS
DUE 05/15/2001 TO 08/15/2014 8,900,000 8,900,000
------------------
TOTAL REPURCHASE AGREEMENTS
(COST $27,231,537) 27,231,537
------------------
TOTAL INVESTMENTS (101.4%)
(COST $291,909,906) 375,726,079
OTHER ASSETS LESS LIABILITIES (-1.4%) (5,218,009)
------------------
NET ASSETS (100.00%) $ 370,508,070
==================
</TABLE>
* Non-income producing
See Accompanying Notes to Financial Statements
8
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------
CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
----------------------------------------------------------------------------------------------------------
April 30, 2000
SHARES VALUE
---------------- -----------------
<S> <C> <C>
COMMON STOCKS (93.5%)
AUSTRALIA (2.5%)
AMP LTD. (INSURANCE) 12,750 $ 111,596
BROKEN HILL PROPRIETARY CO., LTD. (MINING) 19,400 208,743
FAIRFAX (JOHN) HOLDINGS LTD. (MEDIA/PHOTOGRAPHY) 67,500 194,965
POWERTEL LTD. (TELECOMMUNICATION SERVICES) * 104,800 128,297
SECURENET LTD. (SOFTWARE/COMPUTER SERVICES) * 55,000 163,675
WESTPAC BANKING CORP., LTD. (BANKS) 19,000 121,178
WMC LTD. (MINING) 62,000 257,223
-----------------
1,185,677
-----------------
BRAZIL (0.5%)
ARACRUZ CELULOSE SA, ADR (FORESTRY/PAPER) 9,600 179,400
CIA DE TECIDOS NORTE DE MINAS SA (HOUSEHOLD
GOODS/TEXTILES) 1,100,000 75,573
-----------------
254,973
-----------------
CANADA (4.1%)
ABITIBI-CONSOLIDATED, INC. (FORESTRY/PAPER) 28,600 323,320
ANDERSON EXPLORATION LTD. (OIL/GAS) * 18,000 287,921
C-MAC INDS., INC. (INFORMATION TECHNOLOGY HARDWARE) * 9,500 480,880
GT GROUP TELECOM, INC. (CLASS B)
(TELECOMMUNICATION SERVICES) * 15,000 194,062
NORTEL NETWORKS CORP.
(INFORMATION TECHNOLOGY HARDWARE) 3,000 338,944
PRECISION DRILLING CORP. (OIL/GAS) * 10,000 317,887
-----------------
1,943,014
-----------------
FINLAND (1.3%)
NOKIA CORP., ADR (INFORMATION TECHNOLOGY HARDWARE) 3,000 170,625
SONERA OYJ (TELECOMMUNICATION SERVICES) 8,000 441,046
-----------------
611,671
-----------------
FRANCE (7.9%)
ACCOR SA (LEISURE/ENTERTAINMENT/HOTELS) 5,000 186,123
ALCATEL (INFORMATION TECHNOLOGY HARDWARE) 1,800 418,264
AXA SA (INSURANCE) 2,100 312,113
BANQUE NATIONALE DE PARIS (BANKS) 3,100 251,132
CAP GEMINI SA (SOFTWARE/COMPUTER SERVICES) 2,350 462,551
COFLEXIP SA, ADR (OIL/GAS) 4,400 223,300
FRANCE TELECOM SA, ADR (TELECOMMUNICATION SERVICES) 1,700 270,194
GROUPE DANONE SA (FOOD PRODUCERS/PROCESSORS) 550 120,536
LAFARGE SA (CONSTRUCTION/BUILDING MATERIALS) 3,800 315,457
LVMH MOET HENNESSY LOUIS VUITTON SA
(HOUSEHOLD GOODS/TEXTILES) 550 231,349
SCHNEIDER ELECTRIC SA (ENGINEERING/MACHINERY) 4,200 275,562
TOTAL FINA ELF SA (CLASS B) (OIL/GAS) 2,300 349,802
VIVENDI (DIVERSIFIED INDUSTRIALS) 2,700 267,689
-----------------
3,684,072
-----------------
See Accompanying Notes to Financial Statements
9
<PAGE>
----------------------------------------------------------------------------------------------------------
CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
----------------------------------------------------------------------------------------------------------
April 30, 2000
SHARES VALUE
---------------- -----------------
COMMON STOCKS (CONTINUED)
GERMANY (5.5%)
BAYERISCHE HYPO-UND VEREINSBANK AG (BANKS) 2,900 $ 177,056
CE CONSUMER ELECTRONIC AG
(INFORMATION TECHNOLOGY HARDWARE) 900 149,673
DEUTSCHE BANK AG (BANKS) 3,200 215,493
DEUTSCHE TELEKOM AG (TELECOMMUNICATION SERVICES) 3,800 247,206
DIREKT ANLAGE BANK AG (SPECIALTY/OTHER FINANCE) * 3,000 126,436
DRESDNER BANK AG (BANKS) 5,100 210,573
EM.TV & MERCHANDISING AG (MEDIA/PHOTOGRAPHY) 3,400 263,352
EPCOS AG (INFORMATION TECHNOLOGY HARDWARE) * 3,600 508,478
MUENCHENER RUECKVERSICHERUNGS-GESELLSCHAFT AG
(INSURANCE) 400 117,551
SIEMENS AG (ELECTRONIC/ELECTRICAL EQUIPMENT) 2,620 389,159
THYSSEN KRUPP AG (ENGINEERING/MACHINERY) * 9,100 191,554
-----------------
2,596,531
-----------------
HONG KONG (0.7%)
ASIA SATELLITE TELECOMMUNICATIONS HOLDINGS LTD.
(TELECOMMUNICATION SERVICES) 12,000 37,514
ESPRIT HOLDINGS LTD. (GENERAL RETAILERS) 70,000 74,593
GIORDANO INTERNATIONAL LTD. (GENERAL RETAILERS) 100,000 163,693
I-CABLE COMMUNICATIONS LTD. (MEDIA/PHOTOGRAPHY) * 116,000 51,008
-----------------
326,808
-----------------
INDIA (2.1%)
BHARAT HEAVY ELECTRICALS LTD. (ENGINEERING/MACHINERY) 30,000 68,925
CASTROL (INDIA) LTD. (CHEMICALS) 20,000 138,354
INDIAN HOTELS CO., LTD. (LEISURE/ENTERTAINMENT/HOTELS) 25,000 134,632
INFOSYS TECHNOLOGIES LTD. (SOFTWARE/COMPUTER SERVICES) 3,500 649,393
-----------------
991,304
-----------------
IRELAND (0.4%)
CRH PLC (CONSTRUCTION/BUILDING MATERIALS) 10,700 171,509
-----------------
ITALY (0.8%)
MEDIASET S.P.A (MEDIA/PHOTOGRAPHY) 6,100 99,222
TELECOM ITALIA S.P.A, ADR (TELECOMMUNICATION SERVICES) 1,750 250,031
-----------------
349,253
-----------------
JAPAN (31.1%)
ALPHA SYSTEMS, INC. (SOFTWARE/COMPUTER SERVICES) 1,100 216,801
ASAHI BANK LTD., THE (BANKS) 90,000 433,046
BANYU PHARMACEUTICAL CO., LTD. (PHARMACEUTICALS) 26,000 572,584
CITIZEN ELECTRONICS CO., LTD.
(INFORMATION TECHNOLOGY HARDWARE) 2,900 364,943
DAIBIRU CORP. (REAL ESTATE) 14,000 96,510
See Accompanying Notes to Financial Statements
10
<PAGE>
----------------------------------------------------------------------------------------------------------
CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
----------------------------------------------------------------------------------------------------------
April 30, 2000
SHARES VALUE
---------------- -----------------
COMMON STOCKS (CONTINUED)
DAIMEI TELECOM ENGINEERING CORP.
(ENGINEERING/MACHINERY) 10,000 $ 79,762
DRAKE BEAM MORIN-JAPAN, INC. (SUPPORT SERVICES) 1,000 244,283
FANCL CORP. (PERSONAL CARE/HOUSEHOLD PRODUCTS) 2,210 321,669
FUJI BANK LTD., THE (BANKS) 25,000 208,195
FUJI MACHINE MANUFACTURING CO., LTD.
(ENGINEERING/MACHINERY) 5,000 347,455
FUJISAWA PHARMACEUTICAL CO., LTD. (PHARMACEUTICALS) 4,000 149,901
FUTURE SYSTEM CONSULTING CORP. (SOFTWARE/
COMPUTER SERVICES) 1 366,424
ISETAN CO., LTD. (GENERAL RETAILERS) 58,000 536,681
JAPAN LIFELINE CO., LTD. (HEALTH) 12,100 195,935
JAPAN TELECOM CO., LTD. (TELECOMMUNICATION SERVICES) 5 254,461
KATOKICHI CO., LTD. (FOOD PRODUCERS/PROCESSORS) 3,000 73,007
KEYENCE CORP. (ELECTRONIC/ELECTRICAL EQUIPMENT) 330 109,469
KYOCERA CORP. (INFORMATION TECHNOLOGY HARDWARE) 2,300 384,569
MAKINO MILLING MACHINE CO., LTD. (ENGINEERING/
MACHINERY) 20,000 199,127
MARUBENI CORP. (CONSTRUCTION/BUILDING MATERIALS) 75,000 217,217
MATSUSHITA ELECTRIC INDUSTRIAL CO., LTD. (ELECTRONIC/
ELECTRICAL EQUIPMENT) 9,000 238,176
MITSUBISHI ELECTRIC CORP.
(INFORMATION TECHNOLOGY HARDWARE) 30,000 256,219
MITSUBISHI ESTATE CO., LTD. (REAL ESTATE) 25,000 281,064
MITSUI FUDOSAN CO., LTD. (REAL ESTATE) 28,000 284,478
MURATA MANUFACTURING CO., LTD.
(INFORMATION TECHNOLOGY HARDWARE) 2,000 388,631
NEC CORP. (INFORMATION TECHNOLOGY HARDWARE) 20,000 544,084
NIKKO SECURITIES CO., LTD. (SPECIALTY/OTHER FINANCE) 30,000 353,932
NIPPON KANZAI CO., LTD. (CONSTRUCTION/
BUILDING MATERIALS) 4,500 85,777
NIPPON STEEL CORP. (STEEL/OTHER MATERIALS) 173,000 388,992
NTT DOCOMO, INC. (TELECOMMUNICATION SERVICES) 20 668,076
OBIC CO., LTD. (SOFTWARE/COMPUTER SERVICES) 300 167,944
OJI PAPER CO., LTD. (FORESTRY/PAPER) 57,000 357,596
ROHM CO., LTD. (INFORMATION TECHNOLOGY HARDWARE) 2,000 669,927
RYOHIN KEIKAKU CO., LTD. (GENERAL RETAILERS) 3,000 556,576
SANWA BANK LTD., THE (BANKS) 40,000 386,411
SEVEN-ELEVEN JAPAN CO., LTD. (GENERAL RETAILERS) 4,000 492,266
SHIMAMURA CO., LTD. (GENERAL RETAILERS) 4,000 582,207
SONY CORP. (HOUSEHOLD GOODS/TEXTILES) 1,000 114,831
SONY CORP. (NEW) (HOUSEHOLD GOODS/TEXTILES) * 4,300 497,356
SUMITOMO BANK LTD., THE (BANKS) 10,000 125,010
See Accompanying Notes to Financial Statements
11
<PAGE>
----------------------------------------------------------------------------------------------------------
CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
----------------------------------------------------------------------------------------------------------
April 30, 2000
SHARES VALUE
---------------- -----------------
COMMON STOCKS (CONTINUED)
TAISHO PHARMACEUTICAL CO., LTD. (PHARMACEUTICALS) 7,000 $ 234,474
TAIYO INK MANUFACTURING CO., LTD. (ELECTRONIC/
ELECTRICAL EQUIPMENT) 1,200 86,609
THK CO., LTD. (ENGINEERING/MACHINERY) 7,000 294,712
TOYOTA MOTOR CORP. (AUTOMOBILES) 8,000 397,514
TRANS COSMOS, INC. (SOFTWARE/COMPUTER SERVICES) 1,500 298,413
TREND MICRO, INC. (SOFTWARE/COMPUTER SERVICES) * 1,000 149,901
YAMADA DENKI CO., LTD. (GENERAL RETAILERS) 2,000 166,556
YOKOWO CO., LTD. (INFORMATION TECHNOLOGY HARDWARE) 5,000 140,648
-----------------
14,580,419
-----------------
KOREA (1.4%)
KOREA TELECOM CORP., ADR (TELECOMMUNICATION SERVICES) 4,000 138,000
POHANG IRON & STEEL CO., LTD., ADR (STEEL/OTHER MATERIALS) 10,200 214,200
SAMSUNG ELECTRONICS, GDR (INFORMATION
TECHNOLOGY HARDWARE) 4,000 324,500
-----------------
676,700
-----------------
MALAYSIA (0.4%)
STAR CRUISES PLC (LEISURE/ENTERTAINMENT/HOTELS) 25,000 192,500
-----------------
NETHERLANDS (6.5%)
AEGON NV (INSURANCE) 3,000 216,103
ASM LITHOGRAPHY HOLDING NV (ELECTRONIC/
(INFORMATION TECHNOLOGY HARDWARE) * 8,100 324,000
EQUANT NV (TELECOMMUNICATION SERVICES) * 8,700 678,600
GUCCI GROUP NV (HOUSEHOLD GOODS/TEXTILES) 3,400 297,925
HEINEKEN NV (RESTAURANTS/PUBS/BREWERIES) 5,000 277,932
ING GROEP NV (INSURANCE) 2,800 153,141
KONINKLIJKE PHILIPS ELECTRONICS NV (ELECTRONIC/
ELECTRICAL EQUIPMENT) 5,100 228,047
KPNQWEST NV (TELECOMMUNICATION SERVICES) * 4,700 189,175
STMICROELECTRONICS NV (INFORMATION TECHNOLOGY
HARDWARE) 1,200 227,625
UNITED PAN-EUROPE COMMUNICATIONS NV, ADR
(MEDIA/PHOTOGRAPHY) * 8,800 321,750
WORLD ONLINE INTERNATIONAL NV (SOFTWARE/
COMPUTER SERVICES) * 8,700 117,333
-----------------
3,031,631
-----------------
PORTUGAL (0.5%)
PT MULTIMEDIA - SERVICOS DE TELECOMMUNICACOES E
S.G.P.S. SA (MEDIA/PHOTOGRAPHY) * 3,400 237,791
-----------------
SINGAPORE (1.2%)
DATACRAFT ASIA LTD. (INFORMATION TECHNOLOGY HARDWARE) 46,400 348,000
See Accompanying Notes to Financial Statements
12
<PAGE>
----------------------------------------------------------------------------------------------------------
CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
----------------------------------------------------------------------------------------------------------
April 30, 2000
SHARES VALUE
---------------- -----------------
COMMON STOCKS (CONTINUED)
GES INTERNATIONAL LTD. (INFORMATION
TECHNOLOGY HARDWARE) 180,000 $ 221,384
-----------------
569,384
-----------------
SPAIN (1.9%)
ACERINOX SA (STEEL/OTHER MATERIALS) 5,400 215,529
BANCO BILBAO VIZCAYA ARGENTARIA, SA (BANKS) 17,500 239,204
TELEFONICA SA, ADR (TELECOMMUNICATION SERVICES) * 6,273 415,586
-----------------
870,319
-----------------
SWEDEN (1.8%)
ATLAS COPCO AB (CLASS A) (ENGINEERING/MACHINERY) 4,800 112,324
SKANDIA INSURANCE CO., LTD. (INSURANCE) 14,800 709,193
-----------------
821,517
-----------------
SWITZERLAND (2.9%)
ABB LTD. (REGISTERED) (ENGINEERING/MACHINERY) 3,600 404,888
JULIUS BAER HOLDING LTD. (BEARER) (BANKS) 60 210,291
NESTLE SA (REGISTERED)(FOOD PRODUCERS/PROCESSORS) 140 247,373
ROCHE HOLDING AG (GENUSSSHEINE) (PHARMACEUTICALS) 27 282,637
ZURICH ALLIED AG (REGISTERED) (INSURANCE) 500 213,023
-----------------
1,358,212
-----------------
UNITED KINGDOM (17.0%)
ARM HOLDINGS PLC (ELECTRONIC/ELECTRICAL EQUIPMENT) * 9,500 97,370
BALTIMORE TECHNOLOGIES PLC (SOFTWARE/
COMPUTER SERVICES) * 2,500 252,833
BARCLAYS PLC (BANKS) 12,600 323,745
BILLITON PLC (MINING) 52,200 194,813
BP AMOCO PLC, ADR (OIL/GAS) 4,850 247,350
BPB PLC (CONSTRUCTION/BUILDING MATERIALS) 25,000 129,096
BRITISH TELECOMMUNICATIONS PLC
(TELECOMMUNICATION SERVICES) 20,400 367,421
COLT TELECOM GROUP PLC (TELECOMMUNICATION SERVICES) * 13,800 589,307
COMPASS GROUP PLC (RESTAURANTS/PUBS/BREWERIES) 31,800 453,320
GLAXO WELLCOME PLC (PHARMACEUTICALS) 7,300 226,290
GRANADA GROUP PLC (LEISURE/ENTERTAINMENT/HOTELS) 38,092 373,136
HSBC HOLDINGS PLC (BANKS) 22,300 248,104
INVENSYS PLC (ENGINEERING/MACHINERY) 59,500 286,300
JAZZTEL PLC (SOFTWARE/COMPUTER SERVICES) * 4,200 208,585
PEARSON PLC (MEDIA/PHOTOGRAPHY) 13,000 449,771
ROYAL BANK OF SCOTLAND GROUP PLC (BANKS) 16,320 254,482
SHELL TRANSPORT & TRADING CO. PLC (OIL/GAS) 11,000 89,937
SHELL TRANSPORT & TRADING CO., ADR (OIL/GAS) 6,850 330,512
SMITHKLINE BEECHAM PLC (PHARMACEUTICALS) 19,861 273,025
TELEWEST COMMUNICATIONS PLC (MEDIA/PHOTOGRAPHY) * 47,200 288,233
THUS PLC (SOFTWARE/COMPUTER SERVICES) * 23,300 134,355
VODAFONE AIRTOUCH PLC (TELECOMMUNICATION SERVICES) 271,228 1,249,910
See Accompanying Notes to Financial Statements
13
<PAGE>
----------------------------------------------------------------------------------------------------------
CMC INTERNATIONAL STOCK FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
----------------------------------------------------------------------------------------------------------
April 30, 2000
SHARES VALUE
---------------- -----------------
COMMON STOCKS (CONTINUED)
WPP GROUP PLC (MEDIA/PHOTOGRAPHY) 54,300 $ 878,576
-----------------
7,946,471
-----------------
UNITED STATES (3.0%)
ASIAINFO HOLDINGS, INC. (SOFTWARE/COMPUTER SERVICES) * 5,000 217,500
INFONET SERVICES CORP. (CLASS B)
(TELECOMMUNICATION SERVICES) * 11,000 185,625
NTL, INC. (MEDIA/PHOTOGRAPHY) * 5,150 393,975
OPENTV CORP. (MEDIA/PHOTOGRAPHY) * 4,300 352,062
SCHLUMBERGER LTD. (OIL/GAS) 3,100 237,344
VIA NET.WORKS, INC. (SOFTWARE/COMPUTER SERVICES) * 1,200 23,925
-----------------
1,410,431
-----------------
TOTAL COMMON STOCKS
(COST $38,487,116) 43,810,187
-----------------
PREFERRED STOCK (0.7%)
GERMANY
SAP AG-SYSTEMS, APPLICATIONS AND PRODUCTS IN DATA
PROCESSING (SOFTWARE/COMPUTER SERVICES)
(COST $365,852) 565 333,885
-----------------
REPURCHASE AGREEMENT (4.3%)
J.P. MORGAN SECURITIES, INC.
5.881% DATED 04/28/2000, DUE 05/01/2000
IN THE AMOUNT OF $2,031,384.
COLLATERALIZED BY
U.S. TREASURY BILLS
0.000% DUE 10/19/2000
U.S. TREASURY BONDS
7.250% TO 12.375%
DUE 05/15/2004 TO 08/15/2022
U.S. TREASURY NOTES
6.625% TO 8.000%
DUE 05/15/2001 TO 04/30/2002
(COST $2,031,057) $ 2,031,057 2,031,057
-----------------
TOTAL INVESTMENTS (98.5%)
(COST $40,884,025) 46,175,129
OTHER ASSETS LESS LIABILITIES (1.5%) 703,495
-----------------
NET ASSETS (100.0%) $ 46,878,624
=================
</TABLE>
* Non-income producing
See Accompanying Notes to Financial Statements
14
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
STATEMENTS OF ASSETS AND LIABILITIES
---------------------------------------------------------------------------------------------------------------------------
April 30, 2000
(Unaudited)
CMC Small CMC International
Cap Fund Stock Fund
----------------- -----------------
<S> <C> <C>
ASSETS:
Investments at identified cost ........................................ $ 291,909,906 $ 40,884,025
Investments at identified cost - federal income tax purposes .......... $ 293,247,112 $ 41,153,401
----------------- -----------------
Investments at value................................................... $ 375,726,079 $ 46,175,129
Cash................................................................... - 92,851
Receivable for:
Investments sold..................................................... 5,291,932 770,860
Interest............................................................. 97,763 16,690
Dividends............................................................ 23,681 82,613
----------------- -----------------
Total assets........................................................... 381,139,455 47,138,143
LIABILITIES: ----------------- -----------------
Payable for:
Capital stock redeemed............................................... 7,666,841 -
Investments purchased................................................ 2,694,702 148,402
Investment management fee ........................................... 235,249 30,141
Accrued expenses .................................................... 34,593 40,604
Foreign capital gains tax............................................ - 40,372
----------------- -----------------
Total liabilities..................................................... 10,631,385 259,519
----------------- -----------------
NET ASSETS............................................................... $ 370,508,070 $ 46,878,624
================= =================
NET ASSETS consist of:
Paid-in capital...................................................... $ 183,595,292 $ 37,414,803
Undistributed net realized gain (loss) from:
Investment transactions................................................ 104,033,958 4,250,522
Foreign currency transactions.................................... - (13,148)
Unrealized appreciation (depreciation) on:
Investments........................................................ 83,816,173 5,250,732
Translation of other assets and liabilities in foreign currencies.. - (10,252)
Undistributed net investment loss...................................... (937,353) (14,033)
----------------- -----------------
NET ASSETS............................................................... $ 370,508,070 $ 46,878,624
================= =================
Shares of capital stock outstanding...................................... 20,001,207 2,447,330
================= =================
Net asset value, offering and
redemption price per share............................................ $ 18.52 $ 19.16
================= =================
</TABLE>
See Accompanying Notes to Financial Statements
15
<PAGE>
--------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the six months ended April 30, 2000
(Unaudited)
CMC CMC
Small International
Cap Fund Stock Fund
----------------- -----------------
<S> <C> <C>
INVESTMENT INCOME:
Income:
Interest........................................................ $ 477,086 $ 116,713
Dividends....................................................... 127,918 134,741
Foreign withholding tax on dividend income ..................... - (13,966)
----------------- -----------------
Total income................................................ 605,004 237,488
----------------- -----------------
Expenses:
Investment management fees ..................................... 1,473,476 178,207
Custodian fees.................................................. 30,585 32,414
Legal, insurance and audit fees................................. 18,829 18,356
Transfer agent fees............................................. 9,000 9,000
Trustees' fees.................................................. 6,883 845
Other expenses ................................................. 3,584 12,699
----------------- -----------------
Total expenses.............................................. 1,542,357 251,521
----------------- -----------------
Net investment loss................................................. (937,353) (14,033)
----------------- -----------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain(loss) from:
Investment transactions......................................... 104,033,958 4,250,522
Foreignncurrency transactions................................... - (13,148)
----------------- -----------------
Net realized gain ........................................... 104,033,958 4,237,374
----------------- -----------------
Change in net unrealized appreciation or depreciation on:
Investments..................................................... 32,922,634 (205,840)
Translation of other assets and liabilities in foreign currencies - (2,586)
----------------- -----------------
Change in net unrealized appreciation or depreciation........... 32,922,634 (208,426)
----------------- -----------------
Net realized and unrealized gain on investments..................... 136,956,592 4,028,948
----------------- -----------------
NET INCREASE RESULTING FROM OPERATIONS................................... $ 136,019,239 $ 4,014,915
================= =================
</TABLE>
See Accompanying Notes to Financial Statements
16
<PAGE>
--------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CMC Small CMC International
Cap Fund Stock Fund
--------------------------------- ---------------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
April 30, 2000 October 31, April 30, 2000 October 31,
(Unaudited) 1999 (Unaudited) 1999
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Operations:
Net investment loss............................ $ (937,353) $ (781,558) $ (14,033) $ (26,956)
Net realized gain (loss) from:
Investment transactions........................ 104,033,958 33,791,649 4,250,522 2,975,930
Foreign currency transactions.................. - - (13,148) (110,239)
Change in net unrealized appreciation or
depreciation on:
Investments.................................... 32,922,634 37,005,516 (205,840) 3,545,846
Translation of other assets and liabilities
in foreign currencies.......................... - - (2,586) (9,281)
--------------- --------------- --------------- ---------------
Net increase resulting from operations......... 136,019,239 70,015,607 4,014,915 6,375,300
Distributions to shareholders:
From net realized gain from
investment transactions................... (31,228,390) (383,387) (2,822,061) (3,136)
Net capital share transactions...................... 25,588,458 (97,292,620) 15,194,122 8,742,456
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets............... 130,379,307 (27,660,400) 16,386,976 15,114,620
NET ASSETS:
Beginning of period ........................... 240,128,763 267,789,163 30,491,648 15,377,028
--------------- --------------- --------------- ---------------
End of period ................................. $ 370,508,070 $ 240,128,763 $ 46,878,624 $ 30,491,648
=============== =============== =============== ===============
</TABLE>
See Accompanying Notes to Financial Statements
17
<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. The Trust has established
two other portfolios, CMC High Yield Fund and CMC Short Term Bond Fund, which
are not 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. Portfolio securities are valued based on the last sales
prices reported by the principal securities exchanges on which the investments
are traded or, in the absence of recorded sales, at the closing bid prices on
such exchanges or over-the-counter markets. Investment securities with less than
60 days to maturity when purchased are valued at amortized cost, which
approximates market value. Investment securities for which market quotations are
not readily available will be valued at fair market value as determined in good
faith under procedures established by and under the general supervision of the
Board of Trustees.
Repurchase agreements. The Funds may engage in repurchase agreement
transactions. The Funds, through their custodians, receive delivery of
underlying securities collateralizing 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.
Investment transactions. Investment transactions are accounted for as of the
date the investments are purchased or sold. Net realized gains and losses are
determined on the identified cost basis, which is also used for federal income
tax purposes.
Investment income and expenses. Dividend income less foreign taxes withheld (if
any) is recorded on the ex-dividend date. Certain dividends from foreign
securities will be recorded as soon as the Fund is informed of the dividend, if
such information is obtained subsequent to the ex-dividend date. Interest income
is recorded on the accrual basis and includes amortization of premiums or
accretion of discounts. Expenses are recorded on the accrual basis and each Fund
bears expenses incurred specifically on its behalf as well as a portion of
general expenses incurred on behalf of the Trust and its underlying portfolios.
Forward 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 US 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
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. During the six months ending April 30, 2000, the Fund did not enter
into any such forward currency contracts.
18
<PAGE>
--------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
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 currencies, investments and
other assets and liabilities of the Fund are translated into US dollars at the
daily rates of exchange on the valuation date. Purchases and sales of investment
securities, dividend and interest income and certain expenses are translated at
the rate 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 on 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 sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
Fund's books and the US dollar equivalents of the amounts actually received or
paid. Net unrealized foreign exchange gains or losses arise from changes in the
value of assets and liabilities, other than investments in securities, resulting
from changes in the exchange rate.
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.
Dividends and distributions to shareholders. Dividends from net investment
income are declared and paid annually. Distributions from any net realized gains
are generally declared and paid annually. Distributions to shareholders are
recorded on the ex-dividend date. Additional distributions of net investment
income and capital gains for each Fund may be made at the discretion of the
Board of Trustees.
Federal income taxes. Each Fund intends to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies by
distributing substantially all taxable net investment income and net realized
gains to its shareholders in a manner which results in no tax to the Fund.
Therefore, no federal income or excise tax provision is required.
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.
Foreign capital gains taxes. Realized gains in certain countries may be subject
to foreign taxes at the Fund level, rates ranging from approximately 10% to 30%.
The Funds' provides for such foreign taxes on net realized and unrealized gains
at the appropriate rate for each jurisdiction.
19
<PAGE>
--------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
2. Investment transactions:
Aggregate purchases, sales and maturities, net realized gain and net unrealized
appreciation of investments, excluding short-term investments, as of and for the
six months ended April 30, 2000, 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.... $ 335,515,487 $ 32,991,248
================== ==================
Sales and Maturities:
Investment securities other than U.S. Government obligations.... $ 356,239,870 $ 18,075,623
================== ==================
Net Realized Gain:
Investment securities other than U.S. Government obligations.... $ 104,033,958 $ 4,250,522
================== ==================
Unrealized Appreciation (Depreciation) for
federal income tax purposes:
Appreciation.................................................... $ 101,065,716 $ 8,728,503
Depreciation.................................................... (18,586,749) (3,686,093)
------------------ ------------------
Net unrealized appreciation .................................. $ 82,478,967 $ 5,042,410
================== ==================
</TABLE>
3. Capital Stock:
At April 30, 2000, each Fund had 100 million shares of no par value capital
stock authorized. Transactions of capital shares were as follows:
<TABLE>
<CAPTION>
CMC Small Cap Fund CMC International Stock Fund
----------------------------------------- --------------------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
April 30, 2000 October 31, 1999 April 30, 2000 October 31, 1999
------------------- ------------------ ------------------ ----------------
<S> <C> <C> <C> <C>
Shares:
Shares sold......................... 5,045,656 1,948,298 1,157,314 869,316
Shares issued for reinvestment
of dividends...................... 1,829,474 28,298 132,493 181
Shares issued for share split *..... - 13,253,670 - -
------------------- ------------------ ------------------ ----------------
6,875,130 15,230,266 1,289,807 869,497
Less shares redeemed................ (4,542,852) (4,284,571) (549,837) (388,425)
------------------- ------------------ ------------------ ----------------
Net increase in shares 2,332,278 10,945,695 739,970 481,072
=================== ================== ================== ================
* 4 for 1 stock split effective September 1, 1999
Amounts:
Sales............................... $ 84,726,057 $ 69,448,331 $ 23,578,822 $ 14,220,602
Reinvestment of dividends........... 31,229,115 384,566 2,822,061 3,243
------------------- ------------------ ------------------ ----------------
115,955,172 69,832,897 26,400,883 14,223,845
Less redemptions.................... (90,366,714) (167,125,517) (11,206,761) (5,481,389)
------------------- ------------------ ------------------ ----------------
Net increase (decrease)............. $ 25,588,458 $ (97,292,620) $ 15,194,122 $ 8,742,456
=================== ================== ================== ================
</TABLE>
See Accompanying Notes to Financial Statements
20
<PAGE>
--------------------------------------------------------------------------------
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
4. Transactions with affiliates and related parties:
The amounts of fees and expenses described below are shown on each Fund's
statement of operations.
The investment adviser of the Funds is Columbia Management Co. (CMC). CMC is an
indirect wholly owned subsidiary of FleetBoston Financial Corporation (Fleet), a
publicly owned multi-bank holding company registered under the Bank Holding
Company Act of 1956.
Investment management fees were paid by each Fund monthly to CMC. The Funds'
fees are based on an annual rate of 0.75 of 1% of average daily net assets.
Trustees' fees and expenses were paid directly by each Fund to trustees having
no affiliation with the Funds other than their capacity as trustees. Other
officers and trustees received no compensation from the Funds.
The transfer agent for the Funds is Columbia Trust Company (CTC), an affiliate
of CMC and indirect wholly owned subsidiary of Fleet. CTC 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.
21
<PAGE>
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SEMI-ANNUAL REPORT
(Unaudited)
April 30, 2000
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 the Period)
--------------------------------------------------------------------------------
Six Months
Ended Year Ended October 31,
April 30, 2000 -------------------------------------------------------
(Unaudited) (1) 1999 1998 1997 1996 1995
---------------- --------- --------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period............... $8.54 $8.95 $9.21 $8.99 $9.06 $8.62
---------------- --------- --------- --------- ---------- ---------
Income from investment operations:
Net investment income......................... 0.37 0.74 0.76 0.80 0.81 0.83
Net realized and unrealized gains (losses)
on investments.............................. (0.20) (0.41) (0.21) 0.32 0.03 0.53
---------------- --------- --------- --------- ---------- ---------
Total from investment operations..... 0.17 0.33 0.55 1.12 0.84 1.36
---------------- --------- --------- --------- ---------- ---------
Less distributions:
Dividends from net investment income......... (0.37) (0.74) (0.76) (0.80) (0.81) (0.83)
Distributions from net capital gains......... - (0.00)* (0.05) (0.10) (0.10) (0.09)
---------------- --------- --------- --------- ---------- ---------
Total distributions.................. (0.37) (0.74) (0.81) (0.90) (0.91) (0.92)
---------------- --------- --------- --------- ---------- ---------
Net asset value, end of period..................... $8.34 $8.54 $8.95 $9.21 $8.99 $9.06
================ ========= ========= ========= ========== =========
Total return....................................... 1.95% (2) 3.75% 6.00% 12.90% 9.61% 16.49%
Ratios/Supplemental data
Net assets, end of period (in thousands)........... $328,942 $271,551 $263,912 $119,196 $69,614 $42,192
Ratio of expenses to average net assets............ 0.43% 0.43% 0.45% 0.45% 0.50% 0.54%
Ratio of net income to average net assets.......... 8.65% 8.39% 8.28% 8.60% 8.90% 9.36%
Portfolio turnover rate............................ 56% 62% 71% 69% 56% 46%
</TABLE>
* Amount represents less than $0.01 per share.
(1) Ratios and portfolio turnover rates are annualized
(2) Not annualized.
See Accompanying Notes to Financial Statements
1
<PAGE>
--------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------------- --------------
<S> <C>
CORPORATE BONDS (95.1%)
INDUSTRIAL (76.3%)
BASIC INDUSTRY & MANUFACTURING (10.6%)
FOREST PRODUCTS (2.2%)
BUCKEYE TECHNOLOGIES, INC.
SENIOR SUBORDINATED NOTES
8.500% 12/15/2005 $ 5,975,000 $ 5,691,188
STONE CONTAINER CORP.
SENIOR NOTES
11.500% 10/01/2004 1,600,000 1,620,000
--------------
7,311,188
--------------
MANUFACTURING (7.7%)
BALL CORP.
SENIOR NOTES
7.750% 08/01/2006 2,450,000 2,315,250
BALL CORP.
SENIOR SUBORDINATED NOTES
8.250% 08/01/2008 3,740,000 3,524,950
OWENS-ILLINOIS, INC.
SENIOR NOTES
7.850% 05/15/2004 2,000,000 1,935,860
7.150% 05/15/2005 4,000,000 3,652,680
PRECISION CASTPARTS CORP. (144A)
SENIOR NOTES
8.750% 03/15/2005 5,500,000 5,479,375
SILGAN HOLDINGS, INC.
SENIOR SUBORDINATED DEBENTURES
9.000% 06/01/2009 2,715,000 2,552,100
WESTPOINT STEVENS, INC.
SENIOR NOTES
7.875% 06/15/2005 6,950,000 5,699,000
--------------
25,159,215
--------------
METALS/MINING (0.7%)
RYERSON TULL, INC.
NOTES
8.500% 07/15/2001 2,250,000 2,264,753
--------------
TOTAL BASIC INDUSTRY & MANUFACTURING 34,735,156
--------------
See Accompanying Notes to Financial Statements
2
<PAGE>
--------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
CORPORATE BONDS (CONTINUED)
BUSINESS & CONSUMER SERVICES (25.8%)
SERVICES & PUBLISHING (7.9%)
ALLIED WASTE NORTH AMERICA, INC.
SENIOR NOTES, SERIES B
7.625% 01/01/2006 $ 2,800,000 $ 2,170,000
IRON MOUNTAIN, INC.
SENIOR SUBORDINATED NOTES
10.125% 10/01/2006 3,500,000 3,421,250
PIERCE LEAHY CORP.
SENIOR SUBORDINATED NOTES
11.125% 07/15/2006 3,112,000 3,197,580
UNITED RENTALS, INC.
SENIOR SUBORDINATED NOTES, SERIES B
9.500% 06/01/2008 4,000,000 3,650,000
8.800% 08/15/2008 3,000,000 2,625,000
UNITED STATIONERS SUPPLY CO.
SENIOR SUBORDINATED NOTES
12.750% 05/01/2005 1,000,000 1,065,000
8.375% 04/15/2008 5,065,000 4,583,825
USA WASTE SERVICES, INC.
NOTES
6.125% 07/15/2001 5,500,000 5,260,695
--------------
25,973,350
--------------
ENTERTAINMENT & MEDIA (17.9%)
CENTURY COMMUNICATIONS CORP.
SENIOR DISCOUNT NOTES
0.000% 03/15/2003 6,985,000 5,099,050
CHARTER COMMUNICATIONS HOLDINGS LLC/CHARTER
COMMUNICATIONS HOLDINGS CAPITAL CORP. (144A)
SENIOR NOTES
10.000% 04/01/2009 6,450,000 6,192,000
CSC HOLDINGS, INC.
SENIOR SUBORDINATED NOTES
9.250% 11/01/2005 1,200,000 1,203,000
CSC HOLDINGS, INC.
SENIOR DEBENTURES, SERIES B
8.125% 08/15/2009 5,000,000 4,781,000
FOX/LIBERTY NETWORKS L.L.C.
SENIOR NOTES
8.875% 08/15/2007 5,975,000 5,975,000
See Accompanying Notes to Financial Statements
3
<PAGE>
--------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
CORPORATE BONDS (CONTINUED)
HERITAGE MEDIA CORP.
SENIOR SUBORDINATED NOTES
8.750% 02/15/2006 2,250,000 $ 2,233,125
LAMAR MEDIA CORP.
SENIOR SUBORDINATED NOTES
9.625% 12/01/2006 6,660,000 6,610,050
LENFEST COMMUNICATIONS, INC.
SENIOR NOTES
8.375% 11/01/2005 6,200,000 6,205,952
OUTDOOR SYSTEMS, INC.
SENIOR SUBORDINATED NOTES
9.375% 10/15/2006 5,990,000 6,184,675
PRIMEDIA, INC.
SENIOR NOTES
10.250 06/01/2004 2,600,000 2,678,000
ROGERS CABLESYSTEMS LTD.
SENIOR SECURED SECOND PRIORITY DEBENTURES
10.000% 12/01/07 1,000,000 1,045,000
ROGERS COMMUNICATIONS, INC.
SENIOR NOTES
8.875% 07/15/2007 5,000,000 4,850,000
SHAW COMMUNICATIONS, INC.
SENIOR NOTES
8.250% 04/11/2010 6,000,000 5,848,920
---------------
58,905,772
---------------
TOTAL BUSINESS & CONSUMER SERVICES 84,879,122
---------------
CONSUMER CYCLICAL (18.3%)
AUTO & AUTO PARTS (5.2%)
AMERICAN AXLE & MANUFACTURING, INC.
SENIOR SUBORDINATED NOTES
9.750% 03/01/2009 7,000,000 6,685,000
HAYES WHEELS INTERNATIONAL, INC.
SENIOR SUBORDINATED NOTES, SERIES B
9.125% 07/15/2007 4,465,000 4,085,475
LEAR CORP.
SENIOR NOTES, SERIES B
7.960% 05/15/2005 6,800,000 6,298,500
---------------
17,068,975
---------------
See Accompanying Notes to Financial Statements
4
<PAGE>
--------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
CORPORATE BONDS (CONTINUED)
HOTELS & GAMING (6.7%)
HARRAHS OPERATING, INC.
SENIOR SUBORDINATED NOTES
7.875% 12/15/2005 $ 5,700,000 $ 5,301,000
HILTON HOTELS CORP.
SENIOR NOTES
7.000% 07/15/2004 1,700,000 1,555,381
INTERNATIONAL GAME TECHNOLOGY
SENIOR NOTES
7.875% 05/15/2004 6,950,000 6,567,750
PARK PLACE ENTERTAINMENT CORP.
NOTES
7.950% 08/01/2003 2,500,000 2,425,632
PARK PLACE ENTERTAINMENT CORP. (144A)
SENIOR SUBORDINATED NOTES
9.375% 02/15/2007 1,000,000 990,000
STATION CASINOS, INC.
SENIOR SUBORDINATED NOTES
10.125% 03/15/2006 500,000 510,000
9.750% 04/15/2007 4,700,000 4,688,250
--------------
22,038,013
--------------
HOUSING RELATED/REAL ESTATE (2.7%)
COLONIAL REALTY L.P.
MEDIUM TERM NOTES
7.160% 01/17/2003 2,425,000 2,321,986
7.050% 12/15/2003 2,000,000 1,880,060
HEALTH CARE PROPERTY INVESTORS, INC.
NOTES
6.875% 06/08/2005 2,675,000 2,331,423
WEBB (DEL) CORP.
SENIOR SUBORDINATED DEBENTURES
9.000% 02/15/2006 2,990,000 2,481,700
--------------
9,015,169
--------------
RETAIL (2.1%)
FLOORING AMERICA, INC.
SENIOR SUBORDINATED NOTES, SERIES B
12.750% 10/15/2002 * 2,293,000 1,605,100
ZALE CORP.
SENIOR NOTES, SERIES B
8.500% 10/01/2007 5,650,000 5,395,750
--------------
7,000,850
--------------
See Accompanying Notes to Financial Statements
5
<PAGE>
--------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
CORPORATE BONDS (CONTINUED)
OTHER (1.6%)
TRICON GLOBAL RESTAURANTS, INC.
SENIOR NOTES
7.450% 05/15/2005 $ 5,450,000 $ 5,150,250
--------------
TOTAL CONSUMER CYCLICAL 60,273,257
--------------
CONSUMER STAPLES (7.4%)
HEALTH CARE (5.7%)
CONMED CORP.
SENIOR SUBORDINATED NOTES
9.000% 03/15/2008 4,860,000 4,422,600
HEALTHSOUTH CORP.
SENIOR SUBORDINATED NOTES
9.500% 04/01/2001 6,843,000 6,748,909
TENET HEALTHCARE CORP.
SENIOR NOTES
8.625% 12/01/2003 2,250,000 2,216,250
8.000% 01/15/2005 3,000,000 2,865,000
TENET HEALTHCARE CORP.
SENIOR SUBORDINATED NOTES, SERIES B
8.125% 12/01/2008 2,500,000 2,306,250
--------------
18,559,009
--------------
HOUSEHOLD PRODUCTS (1.7%)
THE SCOTTS CO. (144A)
SENIOR SUBORDINATED NOTES
8.625% 01/15/2009 5,950,000 5,652,500
--------------
TOTAL CONSUMER STAPLES 24,211,509
--------------
ENERGY (8.4%)
GULF CANADA RESOURCES LTD.
SENIOR SUBORDINATED DEBENTURES
9.625% 07/01/2005 5,750,000 5,836,250
NEWPARK RESOURCES, INC.
SENIOR SUBORDINATED NOTES, SERIES B
8.625% 12/15/2007 6,630,000 5,685,225
PRIDE INTERNATIONAL, INC.
SENIOR NOTES
10.000% 06/01/2009 3,975,000 3,984,938
See Accompanying Notes to Financial Statements
6
<PAGE>
--------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
CORPORATE BONDS (CONTINUED)
R&B FALCON CORP.
SENIOR NOTES, SERIES B
6.500% 04/15/2003 $ 1,500,000 $ 1,365,000
RBF FINANCE CO.
SENIOR SECURED NOTES
11.000% 03/15/2006 2,000,000 2,090,000
SANTA FE SNYDER CORP.
SENIOR NOTES
8.050% 06/15/2004 6,000,000 5,782,500
VINTAGE PETROLEUM, INC.
SENIOR SUBORDINATED NOTES
9.750% 06/30/2009 3,000,000 3,015,000
--------------
TOTAL ENERGY 27,758,913
--------------
TECHNOLOGY (1.8%)
UNISYS CORP.
SENIOR NOTES
11.750% 10/15/2004 5,550,000 5,994,000
--------------
TRANSPORTATION (4.0%)
AIR (1.4%)
DELTA AIR LINES, INC.
MEDIUM TERM NOTES, SERIES C
6.650% 03/15/2004 5,000,000 4,657,350
--------------
OTHER (2.6%)
ALLIED HOLDING, INC.
SENIOR NOTES, SERIES B
8.625% 10/01/2007 3,500,000 3,097,500
TEEKAY SHIPPING CORP.
GTD. 1ST PFD. SHIP. MTG. NOTES
8.320% 02/01/2008 5,775,000 5,284,125
--------------
8,381,625
--------------
TOTAL TRANSPORTATION 13,038,975
--------------
TOTAL INDUSTRIAL 250,890,932
--------------
See Accompanying Notes to Financial Statements
7
<PAGE>
--------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
CORPORATE BONDS (CONTINUED)
UTILITIES (18.4%)
ELECTRIC (5.5%)
AES CORP.
SENIOR SUBORDINATED NOTES
10.250% 07/15/2006 $ 4,700,000 $ 4,617,750
CALPINE CORP.
SENIOR NOTES
7.625% 04/15/2006 3,500,000 3,295,145
10.500% 05/15/2006 1,000,000 1,052,500
8.750% 07/15/2007 2,500,000 2,464,175
CMS ENERGY X-TRAS (144A)
PASS THRU TRUST I
SENIOR UNSECURED NOTES
7.000% 01/15/2005 7,235,000 6,562,000
--------------
17,991,570
--------------
TELECOMMUNICATIONS (12.9%)
CROWN CASTLE INTERNATIONAL CORP.
SENIOR NOTES
9.000% 05/15/2011 4,500,000 4,185,000
9.500% 08/01/2011 2,000,000 1,910,000
FLAG LTD.
SENIOR NOTES
8.250% 01/30/2008 5,710,000 5,081,900
LEVEL 3 COMMUNICATIONS, INC.
SENIOR NOTES
9.125% 05/01/2008 5,465,000 4,740,887
LEVEL 3 COMMUNICATIONS, INC.
SENIOR DISCOUNT NOTES
0.000% TO 12/01/2003 THEN 10.500% TO 12/01/2008 3,700,000 2,109,000
MCLEODUSA, INC.
SENIOR NOTES
9.250% 07/15/2007 3,000,000 2,880,000
9.500% 11/01/2008 4,000,000 3,880,000
METROMEDIA FIBER NETWORK, INC.
SENIOR NOTES, SERIES B
10.000% 11/15/2008 6,600,000 6,319,500
NEXTLINK COMMUNICATIONS, INC.
SENIOR DISCOUNT NOTES
0.000% TO 04/15/03 THEN 9.450% TO 04/15/08 3,450,000 2,104,500
See Accompanying Notes to Financial Statements
8
<PAGE>
--------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
CORPORATE BONDS (CONTINUED)
NEXTLINK COMMUNICATIONS, INC.
SENIOR NOTES
10.750% 11/15/2008 $ 4,500,000 $ 4,410,000
QWEST COMMUNICATIONS INTERNATIONAL, INC.
SENIOR DISCOUNT NOTES
0.000% TO 10/15/2002 THEN 9.470% TO 10/15/2007 6,000,000 4,830,000
--------------
42,450,787
--------------
TOTAL UTILITIES 60,442,357
--------------
YANKEE (0.4%)
UNITED MEXICAN STATES
NOTES
9.875% 02/01/2010 1,500,000 1,545,000
--------------
TOTAL CORPORATE BONDS
(COST $329,502,724) 312,878,289
--------------
REPURCHASE AGREEMENT (4.1%)
J.P. MORGAN SECURITIES, INC.
5.881% DATED 04/28/2000,
DUE 05/01/2000 IN THE
AMOUNT OF $13,367,292.
COLLATERALIZED BY
U.S. TREASURY BILLS
DUE 10/19/2000
U.S. TREASURY BONDS
7.250% TO 12.375%
DUE 05/15/2004 TO 08/15/2022
U.S TREASURY NOTES
6.625% TO 8.000%
DUE 05/15/2001 TO 04/30/2002
(COST $13,365,139) 13,365,139 13,365,139
--------------
TOTAL INVESTMENTS (99.2%)
(COST $342,867,863) 326,243,428
OTHER ASSETS LESS LIABILITIES (0.8%) 2,698,754
--------------
NET ASSETS (100.0%) $ 328,942,182
==============
</TABLE>
* Flooring America, Inc., filed a bankruptcy petition for reorganization on
June 15, 2000. Effective on that date, interest is not being accrued.
See Accompanying Notes to Financial Statements
9
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
April 30, 2000
(Unaudited)
<S> <C>
ASSETS:
Investments at identified cost ................................. $ 342,867,863
Investments at identified cost - federal income tax purposes.... $ 342,928,826
------------------------------------------------------------------ -----------------
Investments at value ........................................... $ 326,243,428
Receivable for:
Interest...................................................... 7,914,399
-----------------
Total assets.................................................... 334,157,827
-----------------
LIABILITIES:
Payable for:
Investments purchased......................................... 4,860,000
Dividends..................................................... 234,188
Investment management fee..................................... 103,710
Accrued expenses ............................................. 17,747
-----------------
Total liabilities............................................... 5,215,645
-----------------
NET ASSETS ....................................................... $ 328,942,182
=================
NET ASSETS consist of:
Paid-in capital .............................................. $ 356,576,229
Unrealized depreciation on investments........................ (16,624,435)
Accumulated net realized loss from investment transactions.... (11,009,612)
-----------------
NET ASSETS ....................................................... $ 328,942,182
=================
Shares of capital stock outstanding .............................. 39,431,367
=================
Net asset value, offering and
redemption price per share .................................... $ 8.34
=================
</TABLE>
See Accompanying Notes to Financial Statements
10
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
STATEMENT OF OPERATIONS
----------------------------------------------------------------------------------------
For the six months ended April 30, 2000
(Unaudited)
<S> <C>
INVESTMENT INCOME:
Interest income ...................................................... $ 13,115,410
-----------------
Expenses:
Investment management fees........................................ 577,876
Legal, insurance and audit fees................................... 15,459
Transfer agent fees............................................... 9,000
Custodian fees.................................................... 7,800
Trustees' fees.................................................... 4,655
Other expenses ................................................... 3,618
-----------------
Total expenses................................................ 618,408
-----------------
Net investment income ................................................ 12,497,002
-----------------
NET REALIZED AND UNREALIZED LOSS
ON INVESTMENTS:
Net realized loss from investment transactions........................ (2,789,019)
Change in net unrealized appreciation or depreciation on investments.. (4,120,081)
-----------------
Net realized and unrealized loss on investments....................... (6,909,100)
-----------------
NET INCREASE RESULTING FROM OPERATIONS..................................... $ 5,587,902
=================
</TABLE>
See Accompanying Notes to Financial Statements
11
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
Six Months Ended
April 30, 2000 Year Ended
(Unaudited) October 31, 1999
----------------- -----------------
<S> <C> <C>
Operations:
Net investment income ..................................... $ 12,497,002 $ 23,728,765
Net realized loss from investment transactions ............ (2,789,019) (8,196,069)
Change in net unrealized appreciation or depreciation
on investments.......................................... (4,120,081) (5,232,093)
---------------- ----------------
Net increase resulting from operations..................... 5,587,902 10,300,603
Distributions to shareholders:
From net investment income................................. (12,497,002) (23,728,765)
From net realized gain from investment transactions........ - (66,855)
Net capital share transactions................................... 64,300,702 21,134,041
---------------- ----------------
Net increase in net assets....................................... 57,391,602 7,639,024
NET ASSETS:
Beginning of period ....................................... 271,550,580 263,911,556
---------------- ----------------
End of period............................................. $ 328,942,182 $ 271,550,580
================ ================
</TABLE>
See Accompanying Notes to Financial Statements
12
<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. 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 based on market value as
quoted by dealers who are market makers in these securities, by independent
pricing services, or by the adviser using a methodology approved by 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. Investment securities with less than 60 days to maturity when
purchased are valued at amortized cost, which approximates market value.
Investment securities for which market quotations are not readily available will
be valued at fair market value as determined in good faith under procedures
established by and under the general supervision of the Board of Trustees.
Repurchase agreements. The Fund may engage in repurchase agreement transactions.
The Fund, through the custodian, receives delivery of underlying securities
collateralizing 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.
Investment transactions. Investment transactions are accounted for as of the
date the investments are purchased or sold. Net realized gains and losses are
determined on the identified cost basis, which is also used for federal income
tax purposes.
Investment income and expenses. Interest income is recorded on the accrual basis
and includes amortization of premiums or accretion of discounts. Expenses are
recorded on the accrual basis and the Fund bears expenses incurred specifically
on its behalf as well as a portion of general expenses incurred on behalf of the
Trust and its underlying portfolios.
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.
Dividends and distributions to shareholders. Dividends from net investment
income are declared daily and paid monthly. Distributions from any net realized
gains are generally declared and paid annually. Distributions to shareholders
are recorded on the ex-dividend date. Additional distributions of net investment
income and capital gains by the Fund may be made at the discretion of the Board
of Trustees.
Federal income taxes. The Fund intends to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies by
distributing substantially all taxable net investment income and net realized
gains to its shareholders in a manner which results in no tax to the Fund.
Therefore, no federal income or excise tax provision is required.
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.
13
<PAGE>
--------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
1. Significant accounting policies, continued:
As of October 31, 1999, the Fund had $8,196,069 in capital loss carryovers
available to offset future capital gains. These capital loss carryovers expire
in the year 2007. To the extent that the capital loss carryovers are used to
offset any capital gains, it is unlikely that the gains so offset will be
distributed to shareholders.
Other. 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 claim of other senior
lenders, and uncertainties exist as to an issuer's ability to meet principal and
interest payments. As of April 30, 2000, 100% of the Fund's portfolio (less
short term investments) was invested in securities rated Baa (14%), Ba (48%), B
(37%), or Caa (1%), by Moody's Investor Services, Inc.
14
<PAGE>
--------------------------------------------------------------------------------
CMC HIGH YIELD 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 on investments, excluding short-term investments, as of and for the
six months ended April 30, 2000 were as follows:
<TABLE>
<CAPTION>
<S> <C>
Purchases:
Investment securities other than U.S. Government obligations..... $ 117,861,128
U.S. Government obligations...................................... 8,944,710
-------------------
Total purchases............................................. $ 126,805,838
===================
Sales and Maturities:
Investment securities other than U.S. Government obligations..... $ 8,961,930
U.S. Government obligations...................................... 60,334,327
-------------------
Total sales and maturities.................................. $ 69,296,257
===================
Net Realized Loss:
Investment securities other than U.S. Government obligations..... $ 17,220
U.S. Government obligations...................................... (2,806,238)
-------------------
Total net realized loss .................................... $ (2,789,018)
===================
Unrealized Appreciation (Depreciation) for
federal income tax purposes:
Appreciation...................................................... $ 279,213
Depreciation...................................................... (16,964,611)
-------------------
Net unrealized depreciation..................................... $ (16,685,398)
===================
</TABLE>
3. Capital Stock:
At April 30, 2000, there were 100 million shares of no par value capital stock
authorized. Transactions of capital shares were as follows:
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, 2000 October 31, 1999
------------------- -------------------
<S> <C> <C>
Shares:
Shares sold........................................... 16,285,907 5,902,583
Shares issued for reinvestment of dividends........... 1,289,565 857,664
Shares issued for share split *....................... - 21,102,520
------------------- -------------------
17,575,472 27,862,767
Less shares redeemed.................................. (9,956,275) (3,424,068)
------------------- -------------------
Net increase in shares................................ 7,619,197 24,438,699
=================== ===================
* 4 for 1 stock split effective September 1, 1999
Amounts:
Sales................................................. $ 138,398,280 $ 104,966,000
Reinvestment of dividends............................. 10,919,625 20,865,739
------------------- -------------------
149,317,905 125,831,739
Less redemptions...................................... (85,017,203) (104,697,698)
------------------- -------------------
Net increase.......................................... $ 64,300,702 $ 21,134,041
=================== ===================
</TABLE>
15
<PAGE>
--------------------------------------------------------------------------------
CMC HIGH YIELD FUND
A Portfolio of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
4. Transactions with affiliates and related parties:
The amounts of fees and expenses described below are shown on the Fund's
statement of operations.
The investment adviser of the Fund is Columbia Management Co. (CMC). CMC is an
indirect wholly owned subsidiary of FleetBoston Financial Corporation (Fleet), a
publicly owned multi-bank holding company registered under the Bank Holding
Company Act of 1956.
Investment management fees were paid monthly to CMC by the Fund. The fees are
based on an annual rate of 0.40 of 1% of average daily net assets.
Trustees' fees and expenses were paid directly by the Fund to trustees having no
affiliation with the Fund other than their capacity as trustees. Other officers
and trustees received no compensation from the Fund.
The transfer agent for the Fund is Columbia Trust Company (CTC), an affiliate of
CMC and indirect wholly owned subsidiary of Fleet. CTC 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.
16
<PAGE>
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SEMI-ANNUAL REPORT
(Unaudited)
April 30, 2000
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 Fund Share Outstanding Throughout Each Period)
--------------------------------------------------------------------------------
Six Months February 2,
Ended Year Ended to
April 30, 2000 October 31, October 31,
(Unaudited)(2) 1999 1998 (1)(2)
--------------- ------------ ------------
<S> <C> <C> <C>
Net asset value, beginning of period................. $11.72 $12.09 $12.00
------------- ------------ ------------
Income from investment operations:
Net investment income........................... 0.38 0.72 0.54
Net realized and unrealized gains (losses)
on investments................................ (0.17) (0.37) 0.09
------------- ------------ ------------
Total from investment operations...... 0.21 0.35 0.63
------------- ------------ ------------
Less distributions:
Dividends from net investment income........... (0.38) (0.72) (0.54)
Distributions from net capital gains........... - (0.00)* -
------------- ------------ ------------
Total distributions................... (0.38) (0.72) (0.54)
------------- ------------ ------------
Net asset value, end of period....................... $11.55 $11.72 $12.09
============= ============ ============
Total return......................................... 1.78%.(3) 2.96% 5.38% (3)
Ratios/Supplemental data
Net assets, end of period (in thousands)............. $81,356 $144,821. $42,692
Ratio of net expenses to average net assets (4) ..... 0.25% 0.25% 0.25%
Ratio of total expenses to average net assets (4).... 0.32% 0.32% 0.38%
Ratio of net income to average net assets............ 6.42% 6.22% 5.97%
Portfolio turnover rate.............................. 94% 128% 132%
</TABLE>
* Amount represents less than $0.01 per share.
(1) From inception of operations.
(2) Ratios and portfolio turnover rates are annualized.
(3) Not annualized.
(4) For the fiscal year ending October 31, 2000, the investment adviser has
contractually agreed to reimburse 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 daily net assets.
Expenses do not include an administrative fee paid to the adviser by each
shareholder in an amount, ranging between 0.05% and 0.20%, depending upon
the size of the account.
See Accompanying Notes to Financial Statements
1
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
<S> <C> <C>
U.S. GOVERNMENT SECURITIES (16.5%)
U.S. TREASURY INFLATION INDEX BONDS (0.9%)
3.375% 01/15/2007 $ 774,866 $ 746,534
-------------
U.S. TREASURY NOTES (2.0%)
5.375% 07/31/2000 1,585,000 1,582,276
-------------
U.S. AGENCY BONDS (0.7%)
FEDERAL HOME LOAN MORTGAGE CORP.
5.000% 01/15/2004 625,000 579,981
-------------
U.S. AGENCY DISCOUNT NOTES (0.1%)
FEDERAL HOME LOAN MORTGAGE CORP.
6.090% 07/06/2000 75,000 74,184
-------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
(GNMA) (5.4%)
7.000% 04/15/2028 - 02/15/2029 962,729 925,725
7.500% 06/15/2029 - 11/15/2029 1,013,082 995,986
8.000% 01/15/2030 - 04/15/2030 2,469,794 2,474,425
-------------
4,396,136
-------------
FEDERAL HOME LOAN MORTGAGE CORP. (FHLMC) (0.3%)
8.750% 02/01/2001 - 04/01/2002 194,824 196,773
10.250% 09/01/2009 13,094 13,859
-------------
210,632
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) (0.2%)
7.000% 01/01/2030 149,626 142,659
7.500% 01/01/2030 29,915 29,270
-------------
171,929
-------------
AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS (2.4%)
FHLMC (2.0%)
FHLMC GNMA MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 24 CL. J
6.250% 11/25/2023 420,000 384,300
FHLMC MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 2153 CL. CC
6.000% 08/15/2014 70,000 65,712
FHLMC MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 1767 CL. H
7.500% 09/15/2022 900,000 893,349
See Accompanying Notes to Financial Statements
2
<PAGE>
--------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
U.S. GOVERNMENT SECURITIES (CONTINUED)
FHLMC MULTICLASS MTG. PARTN. CTFS.
GTD. SERIES 2057 CL. PD
6.750% 11/15/2026 $ 350,000 $ 323,047
-------------
1,666,408
-------------
FNMA (0.2%)
FNMA GTD. REMIC PASS THRU CTF.
REMIC TR. 1998-49 CL. TD
6.250% 12/18/2023 160,000 149,899
-------------
GNMA (0.2%)
GNMA GTD. REMIC PASS THRU SECS.
REMIC TR. 1997-4 CL. B
7.000% 08/20/2026 144,215 137,230
-------------
OTHER AGENCY COLLATERALIZED MORTGAGE
OBLIGATIONS (0.0%)
WESTAM MORTGAGE FINANCIAL CORP.
SERIES 10 CL. C
0.000% 02/26/2002 1,565 1,557
-------------
TOTAL AGENCY COLLATERALIZED MORTGAGE OBLIGATIONS 1,955,094
-------------
OTHER GOVERNMENT AGENCY (4.5%)
A.I.D., MOROCCO
FLOATING RATE NOTES
6.531% 05/01/2023 400,000 392,000
SMALL BUSINESS ADMINISTRATION
6.625% 10/25/2021 - 06/25/2022 1,554,058 1,559,506
6.750% 07/25/2021 - 11/25/2021 364,148 365,915
7.125% 01/25/2017 1,373,776 1,387,514
-------------
3,704,935
-------------
TOTAL U.S. GOVERNMENT SECURITIES
(COST $13,551,655) 13,421,701
-------------
OTHER SECURITIZED LOANS (34.4%)
ASSET BACKED SECURITIES (22.5%)
ABFS MORTGAGE LOAN TRUST
SERIES 1997-2 CL. A-5
7.125% 01/15/2029 300,000 289,104
See Accompanying Notes to Financial Statements
3
<PAGE>
--------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
OTHER SECURITIZED LOANS (CONTINUED)
ADVANTA MORTGAGE LOAN TRUST
SERIES 1994-1 CL. A-2
6.300% 07/25/2025 $ 40,317 $ 39,264
AFC HOME EQUITY LOAN TRUST
SERIES 1993-1 CL. A
5.900% 05/20/2008 390,350 382,057
ASSET BACKED SECURITIES CORP.
HOME EQUITY LOAN TRUST
SERIES 1999-LB1 CL. A4A
6.624% 06/21/2029 1,036,047 1,038,637
CITYSCAPE HOME EQUITY LOAN TRUST
SERIES 1996-3 CL. A-8
7.650% 09/25/2025 1,470,000 1,451,596
CITYSCAPE HOME EQUITY LOAN TRUST
SERIES 1997-B CL. A-7
7.410% 05/25/2028 669,938 651,515
CITYSCAPE HOME LOAN OWNER TRUST
SERIES 1997-3 CL. A-5
7.890% 07/25/2018 850,000 842,306
CITYSCAPE HOME LOAN OWNER TRUST
SERIES 1997-4 CL. A-4
7.440% 10/25/2018 1,000,000 969,390
CONTIMORTGAGE HOME EQUITY LOAN TRUST
SERIES 1997-3 CL. A-8
7.580% 08/15/2028 2,000,000 1,946,637
CONTIMORTGAGE HOME EQUITY LOAN TRUST
SERIES 1999-3 CL. A-6
7.680% 12/25/2029 190,000 187,862
CROWN HOME EQUITY LOAN TRUST
SERIES 1996-1 CL. A-5
7.300% 04/25/2027 450,000 437,553
FIRSTPLUS HOME LOAN OWNER TRUST
SERIES 1997-3 CL. A-7
7.220% 11/10/2020 75,000 73,481
GE CAPITAL MORTGAGE SERVICES, INC.
SERIES 1995-HE1 CL. A-6
7.500% 09/25/2010 114,727 113,462
See Accompanying Notes to Financial Statements
4
<PAGE>
--------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
OTHER SECURITIZED LOANS (CONTINUED)
GREEN TREE FINANCIAL CORP.
SERIES 1995-5 CL. A-4
6.600% 09/15/2026 $ 173,588 $ 173,608
GREEN TREE FINANCIAL CORP.
SERIES 1996-4 CL. A-7
7.900% 06/15/2027 1,215,000 1,218,417
IMC HOME EQUITY LOAN TRUST
SERIES 1995-3 CL. A-5
7.500% 04/25/2026 1,280,000 1,256,301
IMC HOME EQUITY LOAN TRUST
SERIES 1997-3 CL. A-6
7.520% 08/20/2028 140,000 136,092
MERIT SECURITIES CORP.
SERIES 13 CL. A-4
7.880% 12/28/2033 275,000 271,702
OAKWOOD MORTGAGE INVESTORS, INC.
SERIES 1996-C CL. A-3
6.750% 04/15/2027 137,121 136,732
SALOMON BROTHERS MORTGAGE SECURITIES VII, INC.
SERIES 1998-AQ1 CL. A-4
6.740% 06/25/2028 1,810,000 1,768,470
SLM STUDENT LOAN TRUST
SERIES 1998-2 CL. A-1
FLOATING RATE NOTES
6.462% 4/25/2007 815,009 812,717
SOUTHERN PACIFIC SECURED ASSETS CORP.
SERIES 1996-2 CL. A-5
7.690% 04/25/2025 250,000 249,551
UCFC FUNDING CORP.
SERIES 1997-1 CL. A-3
7.055% 09/15/2013 1,010,000 1,002,531
UCFC HOME EQUITY LOAN TRUST
SERIES 1994-B1 CL. A-5
7.900% 08/10/2015 2,134,000 2,134,544
UCFC HOME EQUITY LOAN TRUST
SERIES 1998-D CL. AF-7
6.315% 04/15/2030 750,000 693,521
--------------
18,277,050
--------------
See Accompanying Notes to Financial Statements
5
<PAGE>
--------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
OTHER SECURITIZED LOANS (CONTINUED)
COLLATERALIZED MORTGAGE OBLIGATIONS (7.5%)
CMC SECURITIES CORP. IV
SERIES 1997-2 CL. 1A-12
7.250% 11/25/2027 $ 550,000 $ 521,812
FIRST NATIONWIDE TRUST
SERIES 1999-1 CL. 2A6
6.500% 03/25/2029 1,079,218 1,011,200
PNC MORTGAGE SECURITIES CORP.
SERIES 1997-4 CL. 2PP-2
7.500% 07/25/2027 530,000 514,103
RESIDENTIAL ASSET SECURITIZATION TRUST
SERIES 1998-A3 CL. A
6.500% 04/25/2013 2,562,486 2,445,188
STRUCTURED ASSET SECURITIES CORP.
SERIES 1999-ALS2 CL. A2
6.750% 07/25/2029 1,654,572 1,583,806
--------------
6,076,109
--------------
COMMERCIAL MORTGAGE BACKED SECURITIES (4.4%)
J.P. MORGAN COMMERCIAL MORTGAGE FINANCE CORP.
SERIES 1996-C3 CL. A1
7.330% 04/25/2028 88,372 87,453
LB COMMERCIAL CONDUIT MORTGAGE TRUST
SERIES 1995-C2 CL. A
FLOATING RATE NOTES
7.220% 08/25/2004 429,017 425,990
MORGAN STANLEY CAPITAL I, INC.
SERIES 1997-C1 CL. A-1C
7.630% 02/15/2020 1,092,500 1,089,583
NOMURA ASSET SECURITIES CORP.
SERIES 1994-MD1 CL. A-1B
FLOATING RATE NOTES
7.704% 03/15/2018 1,476,281 1,479,610
NOMURA ASSET SECURITIES CORP.
SERIES 1996-MD5 CL. A-1B
7.120% 04/13/2036 530,000 515,944
--------------
3,598,580
--------------
TOTAL OTHER SECURITIZED LOANS
(COST $28,562,452) 27,951,739
--------------
See Accompanying Notes to Financial Statements
6
<PAGE>
--------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
CORPORATE BONDS (CONTINUED)
INDUSTRIAL (18.7%)
CATERPILLAR FINANCIAL SERVICES CORP.
6.875% 08/01/2004 $ 500,000 $ 484,275
COCA-COLA ENTERPRISES, INC.
6.375% 08/01/2001 925,000 912,161
CONOCO, INC.
5.900% 04/15/2004 925,000 875,004
COX COMMUNICATIONS, INC.
7.000% 08/15/2001 850,000 843,166
COX ENTERPRISES, INC. (144A)
8.000% 02/15/2007 325,000 316,970
DAIMLERCHRYSLER N.A. HOLDINGS
7.125% 04/10/2003 750,000 741,247
DEERE (JOHN) CAPITAL CORP.
5.350% 10/23/2001 450,000 437,153
DELTA AIR LINES, INC.
MEDIUM TERM NOTES, SERIES C
6.650% 03/15/2004 675,000 628,742
DIAGEO CAPITAL PLC
6.625% 06/24/2004 625,000 604,575
FEDERATED DEPARTMENT STORES, INC.
6.125% 09/01/2001 425,000 418,323
FORD MOTOR CREDIT CO.
7.250% 01/15/2003 300,000 296,703
5.750% 02/23/2004 150,000 140,205
6.700% 07/16/2004 50,000 48,086
GENERAL ELECTRIC CAPITAL CORP.
MEDIUM TERM NOTES
5.650% 03/31/2003 750,000 716,925
GENERAL MOTORS ACCEPTANCE CORP.
MEDIUM TERM NOTES
5.330% 10/20/2000 500,000 495,860
IBM CREDIT CORP.
MEDIUM TERM NOTES
6.640% 10/29/2001 1,250,000 1,238,088
ICI WILMINGTON, INC.
6.750% 09/15/2002 500,000 486,345
KROGER CO., SERIES B
6.340% 06/01/2001 700,000 687,246
MCDONALD'S CORP.
6.000% 06/23/2002 950,000 922,336
See Accompanying Notes to Financial Statements
7
<PAGE>
--------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
CORPORATE BONDS (CONTINUED)
PEPSI BOTTLING HOLDINGS, INC. (144A)
5.375% 02/17/2004 $ 1,000,000 $ 935,000
PROCTER & GAMBLE CO.
5.250% 09/15/2003 150,000 140,625
TIME WARNER, INC.
7.975% 08/15/2004 575,000 577,136
TYCO INTERNATIONAL GROUP S.A.
6.125% 06/15/2001 750,000 736,395
USA WASTE SERVICES, INC.
6.125% 07/15/2001 1,400,000 1,339,086
WMX TECHNOLOGIES, INC.
6.700% 05/01/2001 250,000 242,255
-------------
-------------
15,263,907
-------------
-------------
FINANCIAL (9.7%)
ASSOCIATES CORP. N.A.
5.800% 04/20/2004 150,000 140,150
BANK OF AMERICA CORP.
6.625% 06/15/2004 750,000 723,862
CHASE MANHATTAN CORP.
MEDIUM TERM NOTES, SERIES C
6.750% 12/01/2004 900,000 871,587
CIT GROUP, INC.
MEDIUM TERM NOTES
5.800% 03/26/2002 150,000 145,380
6.375% 11/15/2002 525,000 510,510
COLONIAL REALTY L.P.
MEDIUM TERM NOTES
7.160% 01/17/2003 125,000 119,690
COMMERCIAL CREDIT CO.
6.625% 06/01/2015 200,000 196,738
EOP OPERATING L.P.
6.376% 02/15/2002 700,000 679,987
INTERNATIONAL LEASE FINANCE CORP.
6.000% 06/15/2003 525,000 503,874
LEHMAN BROTHERS HOLDINGS, INC.
MEDIUM TERM NOTES
7.000% 05/15/2003 125,000 121,436
LEHMAN BROTHERS, INC.
7.000% 10/01/2002 600,000 588,504
See Accompanying Notes to Financial Statements
8
<PAGE>
--------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
CORPORATE BONDS (CONTINUED)
MORGAN STANLEY DEAN WITTER DISCOVER & CO.
MEDIUM TERM NOTES
5.750% 02/15/2001 $ 550,000 $ 543,538
MORGAN STANLEY DEAN WITTER DISCOVER & CO.
MEDIUM TERM NOTES, SERIES C
6.090% 03/09/2001 1,000,000 991,780
NORWEST FINANCIAL, INC.
6.375% 09/15/2002 125,000 122,216
SALOMON SMITH BARNEY HOLDINGS, INC.
6.750% 02/15/2003 450,000 439,497
SIMON PROPERTY GROUP L.P.
6.625% 06/15/2003 350,000 330,603
WACHOVIA CORP.
6.700% 06/21/2004 875,000 849,686
--------------
7,879,038
--------------
UTILITIES (6.6%)
ARIZONA PUBLIC SERVICE CO.
5.875% 02/15/2004 1,075,000 993,870
CABLE & WIRELESS COMMUNICATIONS PLC
6.375% 03/06/2003 150,000 147,584
COASTAL CORP.
6.500% 05/15/2006 125,000 115,071
FPL GROUP CAPITAL, INC.
6.875% 06/01/2004 150,000 146,464
IDAHO POWER CO.
MEDIUM TERM NOTES
6.850% 10/01/2002 290,000 285,966
KINDER MORGAN ENERGY PARTNERS L.P. (144A)
8.000% 03/15/2005 500,000 496,775
MCI WORLDCOM, INC.
7.550% 04/01/2004 1,125,000 1,116,000
MIDAMERICAN FUNDING CORP.
5.850% 03/01/2001 1,000,000 986,250
TCI COMMUNICATIONS, INC.
7.250% 08/01/2005 500,000 490,010
8.000% 08/01/2005 125,000 126,516
TXU EASTERN FUNDING CO.
6.450% 05/15/2005 500,000 461,575
--------------
5,366,081
--------------
See Accompanying Notes to Financial Statements
9
<PAGE>
--------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
PRINCIPAL
AMOUNT VALUE
---------------- --------------
YANKEE (1.0%)
KOREA DEVELOPMENT BANK
6.500% 11/15/2002 $ 170,000 $ 162,960
7.125% 04/22/2004 570,000 545,500
QUEBEC PROVINCE
7.000% 01/30/2007 85,000 82,169
--------------
790,629
--------------
TOTAL CORPORATE BONDS
(COST $30,012,677) 29,299,655
--------------
MUNICIPAL BONDS (0.7%)
MULTNOMAH COUNTY SCHOOL DISTRICT
#1J PORTLAND
5.750% 06/15/2005
(COST $650,000) 650,000 602,062
--------------
REPURCHASE AGREEMENTS (11.4%)
J.P. MORGAN SECURITIES, INC.
5.881% DATED 04/28/2000,
DUE 05/01/2000 IN THE
AMOUNT OF $5,979,883.
COLLATERALIZED BY
U.S. TREASURY BILLS
DUE 10/19/2000
U.S. TREASURY BONDS
7.250% TO 12.375%
DUE 05/15/2004 TO 08/15/2022
U.S TREASURY NOTES
6.625% TO 8.000%
DUE 05/15/2001 TO 04/30/2002 5,978,920 5,978,920
MERRILL LYNCH
5.881% DATED 04/28/2000,
DUE 05/01/2000 IN THE
AMOUNT OF $3,300,532.
COLLATERALIZED BY
U.S. TREASURY STRIPS
DUE 05/15/2001 TO 08/15/2014 3,300,000 3,300,000
--------------
TOTAL REPURCHASE AGREEMENTS
(COST $9,278,920) 9,278,920
--------------
</TABLE>
See Accompanying Notes to Financial Statements
10
<PAGE>
--------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
SCHEDULE OF INVESTMENTS (Unaudited)
--------------------------------------------------------------------------------
April 30, 2000
VALUE
----------------
TOTAL INVESTMENTS (99.0%)
(COST $82,055,703) $ 80,554,077
OTHER ASSETS LESS LIABILITIES (1.0%) 802,218
---------------
NET ASSETS (100.0%) $ 81,356,295
===============
See Accompanying Notes to Financial Statements
11
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
April 30, 2000
(Unaudited)
<S> <C>
ASSETS:
Investments at identified cost ................................ $ 82,055,703
Investments at identified cost - federal income tax purposes... $ 82,090,806
---------------
Investments at value .......................................... $ 80,554,077
Receivable for:
Interest..................................................... 778,059
Investments sold............................................. 38,126
Expense reimbursement........................................ 17,457
---------------
Total assets................................................... 81,387,719
---------------
LIABILITIES:
Payable for:
Investment management fee ................................... 13,967
Accrued expenses............................................. 17,457
---------------
Total liabilities.............................................. 31,424
---------------
NET ASSETS....................................................... $ 81,356,295
===============
NET ASSETS consist of:
Paid-in capital ............................................. $ 86,057,817
Accumulative net realized loss from investment transactions.. (3,199,896)
Unrealized depreciation on investments....................... (1,501,626)
---------------
NET ASSETS ...................................................... $ 81,356,295
===============
Shares of capital stock outstanding ............................. 7,043,724
===============
Net asset value, offering and
redemption price per share ................................... $ 11.55
===============
</TABLE>
See Accompanying Notes to Financial Statements
12
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
For the six months ended April 30, 2000
(Unaudited)
<S> <C>
INVESTMENT INCOME:
Interest income ........................................................ $ 3,446,192
----------------
Expenses:
Investment management fees ......................................... 129,242
Legal, insurance and audit fees..................................... 15,105
Transfer agent fees................................................. 9,000
Custodian fees...................................................... 5,296
Trustees' fees...................................................... 1,039
Other expenses ..................................................... 6,004
----------------
Total expenses.................................................. 165,686
Expenses reimbursed by investment adviser .......................... (36,444)
----------------
Net expenses.................................................... 129,242
----------------
Net investment income .................................................. 3,316,950
----------------
NET REALIZED AND UNREALIZED LOSS
ON INVESTMENTS:
Net realized loss from investment transactions.......................... (1,725,367)
Change in net unrealized appreciation or depreciation on investments ... (192,067)
----------------
Net realized and unrealized loss on investments......................... (1,917,434)
----------------
NET INCREASE RESULTING FROM OPERATIONS....................................... $ 1,399,516
================
</TABLE>
See Accompanying Notes to Financial Statements
13
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
Six Months Ended
April 30, 2000 Year Ended
(Unaudited) October 31, 1999
------------------- --------------------
<S> <C> <C>
Operations:
Net investment income ..................................... $ 3,316,950 $ 6,294,017
Net realized loss from investment transactions............. (1,725,367) (1,466,380)
Change in net unrealized appreciation or depreciation
on investments.......................................... (192,067) (1,625,941)
------------------- --------------------
Net increase resulting from operations..................... 1,399,516 3,201,696
Distributions to shareholders:
From net investment income................................. (3,316,950) (6,294,017)
From net realized gain from investment transactions........ - (23,085)
Net capital share transactions .................................. (61,547,228) 105,244,125
------------------- --------------------
Net increase (decrease) in net assets............................ (63,464,662) 102,128,719
NET ASSETS:
Beginning of period........................................ 144,820,957 42,692,238
------------------- --------------------
End of period ............................................. $ 81,356,295 $ 144,820,957
=================== ====================
</TABLE>
See Accompanying Notes to Financial Statements
14
<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. 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, by independent
pricing services, or by the adviser using a methodology approved by 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. Investment securities with less than 60 days to maturity when
purchased are valued at amortized cost, which approximates market value.
Investment securities for which market quotations are not readily available will
be valued at fair market value as determined in good faith under procedures
established by and under the general supervision of the Board of Trustees.
Repurchase agreements. The Fund may engage in repurchase agreement transactions.
The Fund, through the custodian, receives delivery of underlying securities
collateralizing 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.
Investment transactions. Investment transactions are accounted for as of the
date the investments are purchased or sold. Net realized gains and losses are
determined on the identified cost basis, which is also used for federal income
tax purposes. Securities purchased on a when-issued or forward delivery basis
may settle a month or more after trade date; interest income is not accrued
until settlement date. The Fund segregates liquid assets with a current value at
least equal to the amount of its when-issued purchase commitments.
Investment income and expenses. Interest income is recorded on the accrual basis
and includes amortization of premiums or accretion of discounts. Expenses are
recorded on the accrual basis and the Fund bears expenses incurred specifically
on its behalf as well as a portion of general expenses incurred on behalf of the
Trust and its underlying portfolios.
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.
Dividends and distributions to shareholders. Dividends from net investment
income are declared daily and paid monthly. Distributions from any net realized
gains are generally declared and paid annually. Distributions to shareholders
are recorded on the ex-dividend date. Additional distributions of net investment
income and capital gains for each Fund may be made at the discretion of the
Board of Trustees.
Federal income taxes. The Fund intends to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies by
distributing substantially all taxable net investment income and net realized
gains to its shareholders in a manner which results in no tax to the Fund.
Therefore, no federal income or excise tax provision is required. 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. As of October 31, 1999, the Fund
had $1,470,297 in capital loss carryovers available to offset future capital
gains. These capital loss carryovers expire in the year 2007. To the extent that
the capital loss carryovers are used to offset any capital gains, it is unlikely
that the gains so offset will be distributed to shareholders.
15
<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 on investments, excluding short-term investments, as of and for the
six months ended April 30, 2000 were as follows:
<TABLE>
<CAPTION>
<S> <C>
Purchases:
Investment securities other than U.S. Government obligations.. $ 25,666,892
U.S. Government obligations................................... 16,490,108
----------------
Total purchases.......................................... $ 42,157,000
================
Sales and Maturities:
Investment securities other than U.S. Government obligations.. $ 66,444,954
U.S. Government obligations................................... 30,322,097
----------------
Total sales and maturities............................... $ 96,767,051
================
Net Realized Loss:
Investment securities other than U.S. Government obligations.. $....(1,144,147)
U.S. Government obligations................................... (581,220)
----------------
Total net realized loss.................................. $ (1,725,367)
================
Unrealized Appreciation (Depreciation) for
federal income tax purposes:
Appreciation................................................... $ 31,630
Depreciation................................................... (1,568,359)
----------------
Net unrealized depreciation.................................. $ (1,536,729)
================
</TABLE>
3. Capital Stock:
At April 30, 2000, there were 100 million shares of no par value capital stock
authorized. Transactions of capital shares were as follows:
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
April 30, 2000 October 31, 1999
-------------------- ---------------------
<S> <C> <C>
Shares:
Shares sold............................................. 1,472,021 9,524,355
Shares issued for reinvestment of dividends............. 280,229 533,140
-------------------- ---------------------
1,752,250 10,057,495
Less shares redeemed.................................... (7,067,317) (1,229,286)
-------------------- ---------------------
Net increase (decrease) in shares....................... (5,315,067) 8,828,209
==================== =====================
Amounts:
Sales................................................... $ 17,021,258 $ 113,449,649
Reinvestment of dividends............................... 3,256,072 6,311,455
-------------------- ---------------------
20,277,330 119,761,104
Less redemptions........................................ (81,824,558) (14,516,979)
-------------------- ---------------------
Net increase (decrease)................................. $ (61,547,228) $ 105,244,125
==================== =====================
</TABLE>
16
<PAGE>
--------------------------------------------------------------------------------
CMC SHORT TERM BOND FUND
A Portfolio of CMC Fund Trust
NOTES TO FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
4. Transactions with affiliates and related parties:
The amounts of fees and expenses described below are shown on the Fund's
statement of operations.
The investment adviser of the Fund is Columbia Management Co. (CMC). CMC is an
indirect wholly owned subsidiary of FleetBoston Financial Corporation (Fleet), a
publicly owned multi-bank holding company registered under the Bank Holding
Company Act of 1956.
Investment management fees were paid monthly to CMC by the Fund. The fees are
based on an annual rate of 0.25 of 1% of average daily net assets.
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.
For the year ending October 31, 2000, CMC has contractually agreed to reimburse
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 daily net assets.
Trustees' fees and expenses were paid directly by the Fund to trustees having no
affiliation with the Fund other than their capacity as trustees. Other officers
and trustees received no compensation from the Fund.
The transfer agent for the Fund is Columbia Trust Company (CTC), an affiliate of
CMC and indirect wholly owned subsidiary of Fleet. CTC 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.
17
