<PAGE> 1
[L O G O]
January 10, 1997
Dear Shareholder:
We're pleased to present you with the semi-annual report on the financial
conditions for the Performance Family of Funds for the period ending November
30, 1996. The Performance Funds are comprised of The Money Market Fund, The
Short Term Government Income Fund, The Intermediate Term Government Income Fund,
The Equity Fund, and The Mid Cap Growth Fund and are managed by Trustmark
National Bank.
ECONOMIC REVIEW
The six months covered by this report were a reminder of how volatile
financial markets can be. On May 31, 1996, the Standard & Poor's 500 Stock Index
stood at 669.12. In a two week period in July the S&P 500 tumbled to a period
low of 626.25 (-6.41%) as disappointing corporate earnings, a six year low in
unemployment, and interest rate fears precipitated a sell-off in technology and
healthcare stocks. Recovering quickly, the S&P 500 rebounded to close at an
all-time high of 757.02 on November 29, 1996 (up 20.88% off its July low).
For the period, the U.S. equity and fixed income markets seemed to react to
almost every economic release, particularly the employment number. In his
semi-annual Humphrey-Hawkins testimony, Fed Chairman Alan Greenspan addressed
concerns regarding continued strong employment (the August unemployment rate
reached a seven year low of 5.1%). The unemployment rate has now been below 6.0%
since August, 1994.
While the financial markets were volatile, the inflation news continued to
be favorable. Since the Fed last cut the Fed Funds Rate to 5.25% in January,
both the CPI (3.3%) and the PPI (3.0%) as well as GDP growth (2.2%) bode well
for the markets. However, continued tightness in the labor market and upward
pressure on wages could give the Fed a catalyst to implement a restrictive
monetary policy.
While no one can predict the future performance of securities markets,
history has shown that over the long term, stocks and bonds have delivered
impressive results when left to compound. For this reason, we urge you to
exercise patience, review your investment program with your investment
representative, and focus not on short-term market movements, but on long-term
investment goals.
As always, we appreciate your support, welcome your questions and look
forward to serving you in years to come.
Sincerely,
/s/ JOHN J. PILEGGI
John J. Pileggi
Chairman of the Board
<PAGE> 2
PORTFOLIO MANAGER'S REPORT
PERFORMANCE MONEY MARKET FUND
The Performance Money Market Fund provided investors with a return of 2.63%
(2.51% for the consumer class) for the 6 months ended November 30, 1996. During
this period, the 7-day yield of the fund increased by 11 basis points to 5.21%
from 5.10% on May 31. This was due to a longer weighted average maturity of the
Fund which captured higher rates available in the 1-year sector of the yield
curve. The fund invests primarily in high-quality, short-term instruments such
as U.S. Treasury obligations, U.S. Government Agency issues, bankers'
acceptances, commercial paper and repurchase agreements. The Fund is considered
a "first tier" Fund as result of the high quality of the Fund's holdings. An
investment in the fund is neither insured nor guaranteed by the U.S. Government.
Yields will fluctuate and there can be assurance that the fund will be able to
maintain a stable NAV of $1.00 per share.
Signed,
[Signature]
Kelly Collins
Government Securities Trader
Trustmark National Bank
PERFORMANCE SHORT TERM GOVERNMENT INCOME FUND
The shareholders of the Short Term Government Income Fund realized a return
of 3.94% during the 6 month period ending November 30, 1996. (Consumer class
shareholders returned 3.69% during the same period.) Price volatility of the
fund, measured by duration, is comparable to the measured duration of the Lehman
Brothers 1-3 Year Government Index.* During the period, yields on 2 Year and 3
Year Treasury Notes fell 59 and 67 basis points respectively. The Fund's
duration profile under this interest rate environment enabled the share price to
increase $.11 per share from $9.75 To $9.86.
Consistent with the objectives of the Fund, these returns were realized
primarily on short term government securities, with a minor weighting in high
grade corporate bonds, and short mortgage related securities. We will continue
to emphasize high quality securities and strive to provide higher returns than
are generally available from Money Market Funds, while maintaining low levels of
volatility in price per share.
Signed,
[Signature]
Jonathan Rogers
Vice President
Trustmark National Bank
- ---------------
* The Funds performance is compared to the Lehman Brothers, 1-3 Year Government
Index, which represents the performance of U.S. Government bonds with
maturities of 1 to 3 years. The index is unmanaged and does not reflect the
deduction of fees associated with a mutual fund, such as investment management
and fund accounting fees. The performance of the Performance Short Term
Government Income Fund reflects the deduction of fees for these value added
services. Past Performance is not predictive of future results. The investment
return and NAV will fluctuate, so that a investor's shares, when redeemed,
maybe worth more or less then the original cost.
<PAGE> 3
PERFORMANCE INTERMEDIATE TERM GOVERNMENT INCOME FUND
For the six months ended November 30, 1996 the Performance Intermediate
Government Income Fund returned 6.59% (consumer class 6.46%) to its
shareholders. Share price, as measured by net asset value, increased from $9.82
on May 31, 1996 to $10.17 on November 29, 1996.
While the fixed income markets were somewhat rangebound in June and July as
moderate growth and subdued inflation were the news, August started with a
bearish tone as strong economic data, fears of rising inflation, and anticipated
Fed tightening sent interest rates higher across the entire yield curve. While
inflation remained benign at the producer and consumer levels, concern focused
on wage inflation as the year-over-year rise in wages reached 3.6% the quarter
ended September. August's 20 basis point rise in interest rates was cancelled by
September's subsequent 20 basis point drop in interest rates in response to the
Fed's decision to leave rates unchanged. October and November's combined 50
basis point drop in interest rates was fueled primarily by favorable employment
payroll/cost releases.
On November 30th, approximately 75% of the Fund's assets were invested in
U.S. Treasury and U.S. Agency securities while the other 25% consisted primarily
of high quality corporate debt. The Fund's average maturity was 7.90 years with
an average coupon of 6.79%.
The Fund continues to be managed with an investment objective to provide
shareholders with a relative level of current income, with total return a
secondary consideration. Our investment approach, which utilized lower portfolio
turnover, added value to the Fund's shares by reducing unnecessary transaction
costs which are ultimately borne by shareholders. Shareholders are reminded that
volatility is inherent in fixed income securities, and we encourage shareholders
to view their investment using long term investment goals, not short term market
movements.
We appreciate your participation in The Performance Intermediate Term
Government Fund and welcome your comments and suggestions.
Signed,
[Signature]
Robert H. Spaulding
Vice President & Trust Investment
Officer
Trustmark National Bank
<PAGE> 4
PERFORMANCE EQUITY FUND
For the six months ended November 30, 1996, the Equity Fund had a return of
15.73%, compared to the S&P 500* return of 13.44%. During this period the market
continued to see lower interest rates, which enabled our financial and consumer
sectors to perform very well. Here we saw Allstate up 44%, Bank of Boston up
43%, and Walgreen up 32%. Other areas which helped our performance were the
health related stocks and technology stocks. Bristol Myers was up 35%, Abbott
Labs up 30%, Hewlett Packard up 49%, Intel up 68% and IBM up 50%.
The spectre of higher interest rates may well cause more concern over future
earnings revisions, thereby bringing more volatility to the markets. We are
entering a period where individual stock selection will be of utmost importance.
Our efforts and resources continue to be directed at security selection and
not at market timing.
TEN LARGEST HOLDINGS
<TABLE>
<S> <C> <C>
1. General Electric Company 4. Intel (2.0%) 8. Merck (1.7%)
(3.3%) 5. Royal Dutch (1.9%) 9. IBM (1.5%)
2. Coca-Cola (2.5%) 6. Schering Plough (1.8%) 10. Procter & Gamble (1.5%)
3. Exxon (2.3%) 7. Microsoft (1.8%)
</TABLE>
Signed,
[Signature]
Charles H. Windham, Jr.
Vice President
Trustmark National Bank
- ---------------
* The Funds performance is compared to the Standard & Poor's 500 stock index,
which reflects the performance of the U.S. Stock Market as a whole. The index
is unmanaged and does not reflect the deductions of fees associated with a
mutual fund, such as investment management and fund accounting fees. The
performance of the Performance Equity Fund reflects the deduction of fees for
these value added services. Past performance is not predictive of future
results. The NAV will fluctuate, so that an investor's shares when redeemed
may be worth more or less then the original cost.
PERFORMANCE MIDCAP GROWTH FUND
For the period June 1, 1996 to November 30, 1996, the MidCap Growth Fund
returned 9.59%. This compares favorably to the S&P MidCap 400** Index which
returned 7.46% during the same period.
The Business Services sector was a strong contributor to the Fund's return
for the period. Positions in Equifax and PHH Services increased by more than
30%. Holdings in the Technology sector also boosted results. American Power
Conversion and BMC Software were among the winners in the sector. Smith
International and Tosco, in the Energy sector, did very well for the six months.
In addition, the Retail and Financial sectors also featured big returns.
Positions in the Temporary Staffing area, notably Manpower Inc. and Olsten Corp,
provided disappointing results.
The Fund focuses on those companies in the MidCap Index with increasing
earnings prospects and attractive valuations. We plan to continue to direct our
concentration on the operating results of individual companies and not on market
timing. Listed below are the 10 largest holdings in the Fund at November 30,
1996.
TEN LARGEST HOLDINGS
<TABLE>
<S> <C> <C>
1. Equifax (2.0%) 4. Quantum Computer (1.6%) 8. Franklin Resources (1.5%)
2. Stryker (1.7%) 5. Arrow Electronics (1.6%) 9. Edwards (A. G.) (1.5%)
3. State Street Boston (1.7%) 6. Smith International (1.6%) 10. AFLAC Inc. (1.5%)
7. Varian Associates (1.5%)
</TABLE>
Signed,
[Signature]
Douglas H. Ralston, CFA
Vice President
Trustmark National Bank
- ---------------
** The Funds performance is compared to the Standard & Poor's MidCap 400 Stock
Index, which represents the performance of domestically treated mid sized
companies. The index is unmanaged, and does not reflect the deduction of fees
associated with a mutual fund such as investment management and fund
accounting fees. The performance of the Performance MidCap Growth Fund
reflects the deduction of fees for these value-added services. Past
performance is not predictive of future results. The investment and NAV will
fluctuate so that an investors shares when redeemed may be worth more or less
the original cost.
<PAGE> 5
PERFORMANCE FUNDS TRUST
THE MONEY MARKET FUND
Portfolio of Investments
November 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
YIELD TO
CREDIT MATURITY
PRINCIPAL RATINGS** ON DATE OF VALUE
AMOUNT (UNAUDITED) PURCHASE (NOTE 2A)
- ----------- ----------- ---------- ------------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER -- 62.6%
Abbott Laboratories
$ 5,000,000 12/3/1996............................................. A-1+/P-1 5.37% $ 4,998,542
5,000,000 12/27/1996............................................ A-1+/P-1 5.35 4,981,114
Albertson's Inc.
7,000,000 12/18/1996............................................ A-1/P-1 5.34 6,982,646
American Greetings Corporation
4,000,000 12/4/1996............................................. A-1/P-1 5.35 3,998,250
5,000,000 12/12/1996............................................ A-1/P-1 5.35 4,991,949
5,000,000 12/13/1996............................................ A-1/P-1 5.35 4,991,217
Associates Corporation
4,000,000 12/2/1996............................................. A-1+/P-1 5.37 3,999,415
5,000,000 1/8/1997.............................................. A-1+/P-1 5.41 4,971,975
6,000,000 1/9/1997.............................................. A-1+/P-1 5.41 5,965,485
4,000,000 1/15/1997............................................. A-1+/P-1 5.42 3,973,450
Bank America Corporation
5,000,000 1/21/1997............................................. A-1/P-1 5.45 4,962,458
2,000,000 3/25/1997............................................. A-1/P-1 5.48 1,966,433
Bellsouth Telecommunications
3,575,000 12/20/1996............................................ A-1+/P-1 5.34 3,565,094
Cargill, Inc.
5,000,000 12/13/1996............................................ A-1+/P-1 5.31 4,991,283
7,000,000 12/20/1996............................................ A-1+/P-1 5.36 6,980,641
5,000,000 1/3/1997.............................................. A-1+/P-1 5.38 4,975,800
Coca-Cola
5,000,000 12/19/1996............................................ A-1+/P-1 5.39 4,986,750
Commercial Credit Corporation
5,000,000 1/9/1997.............................................. A-1/P-1 5.41 4,971,237
8,000,000 1/14/1997............................................. A-1/P-1 5.42 7,948,080
duPont (EI) De Nemours & Company
10,000,000 12/5/1996............................................. A-1+/P-1 5.33 9,994,200
4,000,000 12/11/1996............................................ A-1+/P-1 5.33 3,994,167
Ford Motor Credit Company
2,500,000 12/3/1996............................................. A-1/P-1 5.35 2,499,271
2,400,000 12/9/1996............................................. A-1/P-1 5.36 2,397,200
4,000,000 12/9/1996............................................. A-1/P-1 5.36 3,995,333
2,000,000 1/6/1997.............................................. A-1/P-1 5.41 1,989,380
7,000,000 1/14/1997............................................. A-1/P-1 5.44 6,954,399
General Electric Capital Corporation
4,000,000 1/10/1997............................................. A-1+/P-1 5.43 3,976,356
5,000,000 12/4/1996............................................. A-1+/P-1 5.35 4,997,817
5,000,000 1/6/1997.............................................. A-1+/P-1 5.42 4,973,400
5,000,000 1/21/1997............................................. A-1+/P-1 5.55 4,961,892
Hershey Foods Corporation
11,000,000 1/13/1997............................................. A-1+/P-1 5.37 10,930,889
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
1
<PAGE> 6
PERFORMANCE FUNDS TRUST
THE MONEY MARKET FUND
Portfolio of Investments (continued)
November 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
YIELD TO
CREDIT MATURITY
PRINCIPAL RATINGS** ON DATE OF VALUE
AMOUNT (UNAUDITED) PURCHASE (NOTE 2A)
- ----------- ----------- ---------- ------------
<C> <S> <C> <C> <C>
COMMERCIAL PAPER (CONTINUED)
Kimberly-Clark
$ 5,700,000 12/30/1996............................................ A-1+/P-1 5.35% $ 5,675,894
McDonalds Corporation
5,000,000 12/31/1996............................................ A-1+/P-1 5.41 4,978,042
Merrill Lynch
3,500,000 12/6/1996............................................. A-1+/P-1 5.37 3,497,443
5,000,000 1/2/1997.............................................. A-1+/P-1 5.42 4,976,356
2,500,000 1/7/1997.............................................. A-1+/P-1 5.42 2,486,331
4,000,000 1/13/1997............................................. A-1+/P-1 5.48 3,974,487
3,000,000 1/21/1997............................................. A-1+/P-1 5.61 2,976,880
Minnesota Mining & Manufacturing Company
975,000 12/16/1996............................................ A-1+/P-1 5.36 972,875
5,826,000 12/20/1996............................................ A-1+/P-1 5.34 5,809,857
Motorola, Incorporated
3,500,000 12/9/1996............................................. A-1+/P-1 5.33 3,495,917
3,400,000 12/10/1996............................................ A-1+/P-1 5.43 3,395,529
3,400,000 12/13/1996............................................ A-1+/P-1 5.33 3,394,050
1,997,000 12/19/1996............................................ A-1+/P-1 5.35 1,991,748
2,500,000 12/23/1996............................................ A-1+/P-1 5.34 2,491,979
PepsiCo., Inc.
5,000,000 12/6/1996............................................. A-1/P-1 5.32 4,996,361
Procter & Gamble Company
10,000,000 1/6/1997.............................................. A-1+/P-1 5.35 9,947,500
Stanley Works
2,000,000 12/6/1996............................................. A-1/P-1 5.56 1,998,494
Toys 'R' US, Inc.
5,000,000 12/9/1996............................................. A-1/P-1 5.31 4,993,328
Wal-Mart
2,900,000 12/2/1996............................................. A-1+/P-1 5.34 2,899,575
Walt Disney Company
5,000,000 12/2/1996............................................. A-1/P-1 5.33 4,999,275
5,000,000 1/21/1997............................................. A-1/P-1 5.56 4,961,821
7,000,000 1/7/1997.............................................. A-1/P-1 5.36 6,962,157
------------
TOTAL COMMERCIAL PAPER (Cost $248,742,022)...................................... 248,742,022
------------
GOVERNMENT AGENCIES -- 20.2%
Federal Home Loan Bank Discount Notes
5,000,000 12/10/1996............................................ NR/Aaa 5.69 4,993,150
------------
Federal Home Loan Bank
2,050,000 12/23/1996............................................ NR/Aaa 4.81 2,048,916
3,000,000 1/10/1997............................................. NR/Aaa 5.51 3,000,000
2,500,000 3/14/1997............................................. NR/Aaa 5.44 2,497,087
5,000,000 3/18/1997............................................. NR/Aaa 5.37 5,000,000
3,000,000 3/28/1997............................................. NR/Aaa 5.67 3,000,000
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
2
<PAGE> 7
PERFORMANCE FUNDS TRUST
THE MONEY MARKET FUND
Portfolio of Investments (continued)
November 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
GOVERNMENT AGENCIES (CONTINUED)
YIELD TO
SHARES/ CREDIT MATURITY
PRINCIPAL RATINGS** ON DATE OF VALUE
AMOUNT (UNAUDITED) PURCHASE (NOTE 2A)
- ----------- ----------- ---------- ------------
<C> <S> <C> <C> <C>
<CAPTION>
<C> <S> <C> <C> <C>
$ 3,500,000 8/12/1997............................................. NR/Aaa 6.08% $ 3,500,868
5,000,000 11/4/1997............................................. NR/Aaa 5.88 5,000,000
2,500,000 11/5/1997............................................. NR/Aaa 5.85 2,500,000
3,000,000 11/7/1997............................................. NR/Aaa 5.64 2,999,562
------------
29,546,433
------------
Federal Home Loan Mortgage Corp.
1,000,000 10/20/1997............................................ NR/Aaa 6.10 1,000,000
------------
Federal National Mortgage Association Discount Notes
5,000,000 12/27/1996............................................ NR/Aaa 5.67 4,980,355
5,000,000 2/26/1997............................................. NR/Aaa 5.52 4,935,958
10,000,000 3/11/1997............................................. NR/Aaa 5.61 9,852,222
5,000,000 3/17/1997............................................. NR/Aaa 5.50 4,922,119
6,000,000 6/9/1997.............................................. NR/Aaa 5.68 5,829,317
------------
30,519,971
------------
Federal National Mortgage Association
4,000,000 12/19/1996............................................ NR/Aaa 5.71 4,000,000
5,000,000 10/29/1997............................................ NR/Aaa 5.61 4,997,522
------------
8,997,522
------------
Federal Farm Credit Bank
1,500,000 9/3/1997.............................................. NR/Aaa 5.72 1,495,676
------------
Student Loan Marketing Loan Association
3,800,000 11/7/1997............................................. NR/Aaa 5.90 3,800,000
------------
TOTAL GOVERNMENT AGENCIES (Cost $80,352,752).................................... 80,352,752
------------
BANKERS' ACCEPTANCES -- 4.7%
Suntrust Bank
4,000,000 12/4/1996............................................. A-1+/P-1 5.35 3,998,243
9,546,016 12/9/1996............................................. A-1+/P-1 5.33 9,534,879
5,000,000 12/10/1996............................................ A-1+/P-1 5.38 4,993,425
------------
TOTAL BANKERS' ACCEPTANCES (Cost $18,526,547)................................... 18,526,547
------------
U.S. TREASURY OBLIGATIONS -- 5.2%
U.S. Treasury Bills,
1,200,000 3/6/1997.............................................. AAA/Aaa 5.42 1,183,623
5,000,000 5/1/1997.............................................. AAA/Aaa 5.73 4,887,799
U.S. Treasury Notes,
5,000,000 7/31/1997............................................. AAA/Aaa 5.95 5,001,372
U.S. Treasury Strips,
10,000,000 5/15/1997............................................. AAA/Aaa 6.15 9,748,052
------------
TOTAL U. S. TREASURY OBLIGATIONS (Cost $20,820,846)............................. 20,820,846
------------
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
3
<PAGE> 8
PERFORMANCE FUNDS TRUST
THE MONEY MARKET FUND
Portfolio of Investments (continued)
November 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
YIELD TO
CREDIT MATURITY
PRINCIPAL RATINGS** ON DATE OF VALUE
AMOUNT (UNAUDITED) PURCHASE (NOTE 2A)
- ----------- ----------- ---------- ------------
<C> <S> <C> <C> <C>
MONEY MARKET ACCOUNT -- 0.7%
$ 2,599,585 Short-Term Investments Co. Prime Portfolio
(Cost $2,599,585)..................................... AAA/Aaa 5.03% $ 2,599,585
------------
TOTAL INVESTMENTS -- 93.4%
(Cost $371,041,752)*............................................................ 371,041,752
------------
*The cost of securities for Federal income tax purposes is substantially the same.
REPURCHASE AGREEMENT -- 6.8%
$27,000,000 Bank of America (dated 11/29/96), 5.65%, 12/2/1996.... NR/NR 5.65 $ 27,000,000
------------
(Proceeds at maturity $27,012,712)
Collateralized by:
U.S. Treasury Notes
$27,541,063, 6.25%, 10/15/06
TOTAL INVESTMENTS AND REPURCHASE AGREEMENT -- 100.2%
(Cost $398,041,752)*............................................................ 398,041,752
LIABILITIES IN EXCESS OF OTHER ASSETS -- 0.2%................................... (804,722)
------------
NET ASSETS -- 100.0%............................................................ $397,237,030
=============
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
4
<PAGE> 9
PERFORMANCE FUNDS TRUST
SHORT TERM GOVERNMENT INCOME FUND
Portfolio of Investments
November 30, 1996
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL MARKET
AMOUNT COST VALUE
- ----------- ------------ ------------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 29.4%
$ 2,000,000 Federal Farm Credit Bank 6.49%, 7/19/1999....................... $ 2,014,230 $ 2,031,580
5,000,000 Federal Farm Credit Bank 6.00%, 2/1/2001........................ 4,908,519 4,908,450
2,000,000 Federal Home Loan Bank 6.94%, 3/14/1997......................... 2,000,183 2,008,860
1,500,000 Federal Home Loan Bank 6.345%, 6/2/1997......................... 1,503,474 1,507,560
5,000,000 Federal Home Loan Bank 6.495%, 8/9/2001......................... 5,002,505 5,103,200
1,500,000 Federal Home Loan Mortgage Corporation 6.395%, 5/16/2000........ 1,479,221 1,522,365
2,000,000 Federal Home Loan Mortgage Corporation 6.50%, 6/8/2000.......... 1,978,192 2,014,880
5,000,000 Federal National Mortgage Association 7.74%, 2/3/1998........... 5,011,672 5,118,250
2,000,000 Federal National Mortgage Association 7.27%, 5/8/2000........... 2,009,565 2,046,560
2,000,000 Federal National Mortgage Association 6.625%, 5/21/2001......... 1,988,901 2,047,360
1,705,000 Federal National Mortgage Association 6.58%, 10/2/2001.......... 1,733,695 1,745,784
5,000,000 Student Loan Marketing Association 7.50%, 3/8/2000.............. 5,101,735 5,236,850
------------ ------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS........................ 34,731,892 35,291,699
------------ ------------
MORTGAGE-BACKED SECURITIES -- 3.6%
2,000,000 Federal National Mortgage Association 1993-73D
5.75%, 9/25/2006................................................ 1,972,523 1,978,740
2,359,113 Federal National Mortgage Association 1992-108E
7.00%, 5/25/2004................................................ 2,365,748 2,363,878
------------ ------------
TOTAL MORTGAGE-BACKED SECURITIES................................ 4,338,271 4,342,618
------------ ------------
U.S. TREASURY OBLIGATIONS -- 65.7%
U.S. TREASURY NOTES
7,000,000 U.S. Treasury Notes 6.875%, 3/31/1997........................... 2,506,106 2,513,000
10,500,000 U.S. Treasury Notes 6.75%, 5/31/1997............................ 10,551,015 10,571,505
3,000,000 U.S. Treasury Notes 7.375%, 11/15/1997.......................... 2,999,161 3,052,500
7,000,000 U.S. Treasury Notes 7.25%, 2/15/1998............................ 6,988,011 7,140,560
6,000,000 U.S. Treasury Notes 5.875%, 4/30/1998........................... 5,978,196 6,029,700
10,000,000 U.S. Treasury Notes 5.875%, 8/15/1998........................... 9,966,062 10,049,400
10,000,000 U.S. Treasury Notes 5.875%, 10/31/1998.......................... 10,024,137 10,050,300
9,000,000 U.S. Treasury Notes 6.375%, 5/15/1999........................... 9,037,252 9,144,990
10,000,000 U.S. Treasury Notes 6.000%, 8/15/1999........................... 9,923,001 10,080,600
10,000,000 U.S. Treasury Notes 6.125%, 9/30/2000........................... 10,054,973 10,112,400
------------ ------------
TOTAL U.S. TREASURY OBLIGATIONS................................. 78,027,914 78,744,955
------------ ------------
TOTAL LONG-TERM INVESTMENTS..................................... 117,098,077 118,379,272
------------ ------------
SHORT-TERM INVESTMENTS -- 0.5%
MONEY MARKET FUNDS -- 0.5%
555,039 AIM Treasury Money Market....................................... 555,039 555,039
------------ ------------
TOTAL INVESTMENTS -- 99.2%...................................... 117,653,116* 118,934,311
============
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.8%................................. 1,005,549
------------
NET ASSETS -- 100.0%.......................................................... $119,939,860
============
</TABLE>
* The cost for Federal income tax purposes is substantially the same.
See Footnotes to Portfolios and accompanying notes to financial statements.
5
<PAGE> 10
PERFORMANCE FUNDS TRUST
INTERMEDIATE TERM GOVERNMENT INCOME FUND
Portfolio of Investments
November 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT RATING COST VALUE
- ----------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -- 47.4%
U.S. TREASURY NOTES -- 34.9%
$ 2,000,000 6.000%, 8/31/1997..................................... NA/NA $ 2,001,632 $ 2,008,000
5,000,000 7.375%, 11/15/1997.................................... NA/NA 5,013,728 5,087,500
5,000,000 6.000%, 5/31/1998..................................... NA/NA 4,993,091 5,034,000
7,500,000 5.875%, 8/15/1998..................................... NA/NA 7,485,740 7,537,050
3,500,000 6.000%, 8/15/1999..................................... NA/NA 3,477,840 3,528,210
2,500,000 6.375%, 1/15/2000..................................... NA/NA 2,503,392 2,548,800
1,500,000 6.250%, 5/31/2000..................................... NA/NA 1,497,135 1,522,965
3,000,000 7.250%, 8/15/2004..................................... NA/NA 3,189,041 3,228,210
----------- -----------
30,161,599 30,494,735
----------- -----------
U.S. TREASURY BONDS -- 12.5%
5,000,000 7.250%, 5/15/2016..................................... NA/NA 5,111,294 5,448,000
4,000,000 7.250%, 8/15/2022..................................... NA/NA 4,232,704 4,374,560
1,000,000 6.875%, 8/15/2025..................................... NA/NA 995,291 1,055,840
----------- -----------
10,339,289 10,878,400
----------- -----------
TOTAL U.S. TREASURY OBLIGATIONS.................................... 40,500,888 41,373,135
----------- -----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 27.0%
FEDERAL HOME LOAN BANK -- 4.6%
1,000,000 7.000%, 5/22/2000..................................... NA/NA 1,000,000 1,009,730
1,000,000 7.750%, 10/30/2006.................................... NA/NA 998,031 1,024,330
1,000,000 7.250%, 3/7/2011...................................... NA/NA 1,000,000 1,010,100
1,000,000 8.000%, 5/2/2011...................................... NA/NA 1,000,000 1,021,870
----------- -----------
3,998,031 4,066,030
----------- -----------
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 3.5%
1,000,000 7.050%, 3/24/2004..................................... NA/NA 973,944 1,009,950
1,000,000 6.970%, 10/3/2005..................................... NA/NA 986,602 1,013,080
1,000,000 7.405%, 4/19/2006..................................... NA/NA 985,974 1,036,570
----------- -----------
2,946,520 3,059,600
----------- -----------
FEDERAL NATIONAL MORTGAGE ASSN. -- 16.3%
5,000,000 7.000%, 5/10/2001..................................... NA/NA 4,996,863 5,115,500
5,000,000 7.000%, 8/14/2001..................................... NA/NA 5,000,000 5,046,650
2,000,000 6.490%, 1/19/2006..................................... NA/NA 1,963,241 1,975,640
1,000,000 7.320%, 5/3/2006...................................... NA/NA 997,545 1,030,880
1,000,000 7.670%, 4/6/2011...................................... NA/NA 992,099 1,038,380
----------- -----------
13,949,748 14,207,050
----------- -----------
SMALL BUSINESS ADMINISTRATION LOAN AGREEMENTS -- 0.3%
225,481 12.250%, 11/15/1998................................... NA/NA 229,427 230,837
----------- -----------
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
6
<PAGE> 11
PERFORMANCE FUNDS TRUST
INTERMEDIATE TERM GOVERNMENT INCOME FUND
Portfolio of Investments (continued)
November 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT RATING COST VALUE
- ----------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS (CONTINUED)
TENNESSEE VALLEY AUTHORITY -- 2.3%
$ 2,000,000 6.375%, 6/15/2005..................................... NA/NA $ 1,956,097 $ 2,007,500
----------- -----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS........................... 23,079,823 23,571,017
----------- -----------
FEDERAL NATIONAL MORTGAGE ASSN. -- 0.1%
23,913 Pool #106594 9.000%, 12/1/1997........................ NA/NA 24,446 24,508
35,795 Pool #114579 8.000%, 2/1/1998......................... NA/NA 36,393 36,617
----------- -----------
60,839 61,125
----------- -----------
GOVERNMENT NATIONAL MORTGAGE ASSN. -- 0.1%
8,107 Pool #192407, 9.000%, 1/15/2017....................... NA/NA 8,884 8,549
67,736 Pool #210311, 9.000%, 6/15/2017....................... NA/NA 74,468 71,467
51,246 Pool #271741, 9.000%, 3/15/2020....................... NA/NA 56,430 54,083
----------- -----------
139,782 134,099
----------- -----------
TOTAL MORTGAGE-BACKED SECURITIES................................... 200,622 195,224
----------- -----------
CORPORATE BONDS -- 23.01%
CONSUMER DURABLES -- 2.6%
Ford Motor Company:
500,000 7.250%, 10/1/2008..................................... A1/a+ 497,733 519,375
250,000 7.125%, 11/15/2025.................................... A1/a+ 240,090 248,438
General Motors Corporation:
500,000 7.625%, 2/15/1997..................................... Baa1/BBB 499,996 501,790
1,000,000 7.100%, 3/15/2006..................................... Baa1/BBB 992,066 1,026,250
----------- -----------
2,229,885 2,295,853
----------- -----------
CONSUMER NON-DURABLES -- 0.9%
250,000 American Home Products, Inc. 7.250%, 3/1/2023......... A2/A- 250,000 255,937
250,000 Coca-Cola Enterprises, Inc. 6.750%, 9/15/2023......... A3/AA- 242,230 240,625
250,000 Kimberly-Clark Corporation 6.875%, 2/15/2014.......... Aa2/AA 248,344 242,188
----------- -----------
740,574 738,750
----------- -----------
FINANCIAL SERVICES -- 9.6%
American General Corporation:
500,000 6.750%, 6/15/2005..................................... A1/AA- 500,000 505,000
250,000 7.500%, 7/15/2025..................................... A1/AA- 249,500 257,812
250,000 Associates Corp. of North America 6.000%, 3/15/2000... A1/AA- 247,338 249,063
Bankers Trust Company:
250,000 7.125%, 7/31/2002..................................... A3/A 249,447 257,500
500,000 7.500%, 11/15/2015.................................... A3/A 497,547 509,375
Chase Manhattan Corporation:
500,000 8.000%, 5/1/2005...................................... A3/A- 499,616 509,375
250,000 6.500%, 1/15/2009..................................... A3/A- 236,364 244,375
250,000 First Bank, N.A. 6.875%, 4/1/2006..................... A2/A 248,709 255,000
500,000 Ford Motor Credit Company 6.250%, 2/26/1998........... A1/A+ 499,704 503,125
Household Finance Corporation:
250,000 6.375%, 6/30/2000..................................... A2/A 249,471 251,250
500,000 6.700%, 6/15/2002..................................... A2/A 500,000 512,500
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
7
<PAGE> 12
PERFORMANCE FUNDS TRUST
INTERMEDIATE TERM GOVERNMENT INCOME FUND
Portfolio of Investments (continued)
November 30, 1996
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT RATING COST VALUE
- ----------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
CORPORATE BONDS (CONTINUED)
FINANCIAL SERVICES (CONTINUED)
$ 500,000 IBM Credit Corporation 7.000%, 5/29/2001.............. A1/A+ $ 500,000 $ 514,375
250,000 International Lease Finance 6.125%, 11/1/1999......... A2/A+ 249,345 250,625
500,000 ITT Hartford Group, Inc. 7.300%, 11/1/2015............ A1/A+ 494,754 503,125
Merrill Lynch & Company:
500,000 7.000%, 4/27/2008..................................... A1/A+ 496,094 513,125
250,000 6.250%, 10/15/2008.................................... A1/A+ 235,023 241,563
250,000 NationsBank Corporation 6.875%, 2/15/2005............. Aaa/A- 247,424 253,437
250,000 Norwest Corporation 6.500%, 6/1/2005.................. Aa3/AA 249,088 248,750
500,000 Sears Roebuck Acceptance Corporation 6.700%,
11/15/2006............................................ Aa3/AA 500,000 501,250
500,000 Smith Barney Holdings, Inc. 7.500%, 5/1/2002.......... A3/A- 497,330 525,625
The Travelers Group, Inc.:
500,000 6.125%, 6/15/2000..................................... A2/A+ 507,832 496,250
250,000 6.625%, 9/15/2005..................................... A2/A+ 248,949 250,313
----------- -----------
8,203,535 8,352,813
----------- -----------
HEALTH CARE -- 0.3%
250,000 Eli Lilly Corporation 7.125%, 6/1/2025................ Aa3/AA 247,741 253,437
----------- -----------
RAW MATERIALS -- 1.7%
500,000 Air Products & Chemicals, Inc. 7.375%, 5/1/2005....... A1/A+ 497,636 525,625
750,000 du Pont (E.I.) De Nemours & Company 6.000%,
12/1/2001............................................. Aa3/AA 735,347 742,500
250,000 PPG Industries, Inc. 6.875%, 8/1/2005................. A1/A 249,723 258,125
----------- -----------
1,482,706 1,526,250
----------- -----------
RETAIL -- 0.5%
250,000 J.C. Penney & Company 6.875%, 10/15/2015.............. A1/A+ 247,466 240,000
250,000 Rite-Aid Corporation 6.875%, 8/15/2013................ A3/A- 237,494 238,438
----------- -----------
484,960 478,438
----------- -----------
TECHNOLOGY -- 1.2%
Raytheon Company:
250,000 6.500%, 7/15/2005..................................... A1/A+ 245,462 250,937
250,000 7.375%, 7/15/2025..................................... A1/A+ 241,183 250,000
250,000 Rockwell International Corporation 6.625%, 6/1/2005... Aa3/AA 248,798 252,812
250,000 WMX Technologies, Inc. 6.250%, 10/15/2000............. A1/A+ 249,723 250,625
----------- -----------
985,166 1,004,374
----------- -----------
TELECOMMUNICATIONS -- 3.1%
250,000 Chesapeake Bell Telephone Virginia 7.000%,
7/15/2025............................................. Aaa/AA+ 243,810 243,750
250,000 Motorola, Inc. 6.500%, 3/1/2008....................... Aa3/AA 249,769 250,625
250,000 New York Telephone Company 7.250%, 2/15/2024.......... A2/A 243,881 246,562
250,000 Northern Telecommunications, Inc. 6.875%, 9/1/2023.... A2/A 242,102 242,500
Southern New England Telecommunication, Inc.:
500,000 7.000%, 8/15/2005..................................... A1/A+ 498,320 513,125
240,000 7.125%, 8/1/2007...................................... A1/A+ 239,679 250,500
Southwestern Bell Telephone Company:
250,000 6.250%, 10/15/2002.................................... A1/AA 250,255 250,312
250,000 7.200%, 10/15/2026.................................... A1/AA 250,288 247,812
</TABLE>
See Footnotes to Portfolios and accompanying notes to financial statements.
8
<PAGE> 13
PERFORMANCE FUNDS TRUST
INTERMEDIATE TERM GOVERNMENT INCOME FUND
Portfolio of Investments (continued)
November 30, 1996
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL MARKET
AMOUNT RATING COST VALUE
- ----------- ----------- ----------- -----------
<C> <S> <C> <C> <C>
CORPORATE BONDS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
U.S. WEST Communications, Inc.:
$ 250,000 6.375%, 10/15/2002.................................... Aa3/AA $ 249,371 $ 251,250
250,000 7.500%, 06/15/2023.................................... Aa3/AA 244,368 250,625
----------- -----------
2,711,843 2,747,061
----------- -----------
UTILITIES -- 3.1%
Consolidated Edison Company of New York, Inc.:
250,000 6.625%, 07/01/2005.................................... A1/A+ 249,254 250,937
250,000 7.500%, 06/15/2023.................................... A1/A+ 249,379 254,063
250,000 Duke Power Company 6.875%, 08/01/2023................. Aa2/AA 238,405 238,125
225,000 Georgia Power Company 6.6250%, 04/01/2003............. A1/A+ 224,280 225,844
250,000 Northern States Power Company 7.125%, 07/01/2025...... A1/AA- 247,686 253,125
250,000 Pacificorp 6.625%, 06/01/2007......................... A2/A 248,554 247,188
Pacific Gas & Electric Company:
250,000 6.250%, 03/01/2004.................................... A2/A 243,329 247,500
250,000 7.250%, 08/01/2026.................................... A2/A 242,018 247,500
250,000 Public Service Electric & Gas Company 6.000%,
05/01/2000............................................ A2/A- 247,803 248,125
Southern California Edison Company:
250,000 6.500%, 06/01/2001.................................... A3/A 250,000 251,875
250,000 6.900%, 10/01/2018.................................... A2/A+ 234,761 237,812
----------- -----------
2,675,469 2,702,094
----------- -----------
TOTAL CORPORATE BONDS.............................................. 19,761,879 20,099,070
----------- -----------
GUARANTEED INVESTMENT CONTRACT -- 1.0%
1,000,000 Confederation Life Insurance Co.* 8.800%,
01/05/1995............................................ NA/NA 1,000,000 900,000
----------- -----------
TOTAL LONG-TERM INVESTMENTS........................................ 84,543,212 86,138,446
----------- -----------
MONEY MARKET FUND -- 0.4%
305,917 Short-Term Investments Co. Treasury Portfolio......... Aaa/AA 305,917 305,917
----------- -----------
TOTAL INVESTMENTS -- 99.0%......................................... $84,849,129** 86,444,363
===========
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.0%.................................... 889,663
-----------
NET ASSETS -- 100.0% (8,583,318 shares outstanding).............................. $87,334,026
===========
</TABLE>
* Issuer in rehabilitation. This security is considered illiquid and is being
fair valued at the direction of the Board of Trustees. The total value of
illiquid securities is $900,000, or 1.03% of net assets.
** The cost for Federal income tax purposes is substantially the same.
See Footnotes to Portfolios and accompanying notes to financial statements.
9
<PAGE> 14
PERFORMANCE FUNDS TRUST
EQUITY FUND
Portfolio of Investments
November 30, 1996
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
<C> <S> <C> <C>
COMMON STOCKS -- 94.4%
BUSINESS EQUIPMENT & SERVICES -- 1.4%
16,000 Federal Express Corporation+..................................... $ 513,200 $ 708,000
25,000 Moore Corporation Limited........................................ 498,225 525,000
23,000 National Service Industries, Inc................................. 746,978 805,000
25,000 Ryder System, Inc................................................ 499,619 759,375
------------ ------------
2,258,022 2,797,375
------------ ------------
CAPITAL GOODS -- 5.3%
28,000 Black & Decker Corporation....................................... 835,895 1,060,500
63,000 General Electric Company......................................... 3,638,466 6,552,000
14,000 Illinois Tool Works, Inc......................................... 836,875 1,200,500
22,000 Sherwin-Williams Company......................................... 768,752 1,248,500
12,000 Timken Company................................................... 443,930 547,500
------------ ------------
6,523,918 10,609,000
------------ ------------
CONSUMER DURABLES -- 2.6%
10,000 Briggs & Stratton Company........................................ 318,987 413,750
29,000 Chrysler Corporation............................................. 916,090 1,029,500
12,000 Dana Corporation................................................. 321,180 373,500
48,000 Ford Motor Company............................................... 1,460,728 1,572,000
29,000 General Motors Corporation....................................... 1,303,337 1,671,125
10,000 Maytag Corporation............................................... 161,375 191,250
------------ ------------
4,481,697 5,251,125
------------ ------------
CONSUMER NON-DURABLES -- 12.4%
30,000 Anheuser-Busch Companies, Inc.................................... 922,194 1,271,250
97,000 Coca-Cola Company................................................ 2,972,860 4,959,125
18,000 Colgate-Palmolive Company........................................ 1,028,513 1,667,250
22,000 ConAgra, Inc..................................................... 761,260 1,168,750
35,000 Gillette Company................................................. 1,010,562 2,581,250
25,000 Hershey Foods Corporation........................................ 774,655 1,246,875
20,000 Kimberly-Clark Corporation....................................... 1,079,986 1,955,000
16,000 Liz Claiborne, Inc............................................... 494,835 678,000
60,000 PepsiCo, Inc..................................................... 1,266,220 1,792,500
20,000 Premark International, Inc....................................... 165,431 485,000
27,000 Procter & Gamble Company......................................... 1,913,683 2,936,250
20,000 Tupperware Corporation........................................... 468,298 1,060,000
9,000 Unilever NV -- New York Shares ADR............................... 1,206,395 1,558,125
25,000 Wrigley (WM.) Jr. Company........................................ 1,033,437 1,459,375
------------ ------------
15,098,329 24,818,750
------------ ------------
CONSUMER SERVICES -- 3.2%
10,000 Choice Hotels International, Inc................................. 102,785 153,750
10,000 Dow Jones & Company, Inc......................................... 371,500 347,500
17,000 King World Productions, Inc.+.................................... 609,814 648,125
48,750 Mattel, Inc...................................................... 609,333 1,505,156
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 15
PERFORMANCE FUNDS TRUST
EQUITY FUND
Portfolio of Investments (continued)
November 30, 1996
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
CONSUMER SERVICES (CONTINUED)
34,000 Meredith Corporation............................................. $ 727,775 $ 1,751,000
28,000 The Walt Disney Company.......................................... 1,528,388 2,065,000
------------ ------------
3,949,595 6,470,531
------------ ------------
ENERGY -- 8.2%
26,000 Amoco Corporation................................................ 1,463,460 2,018,250
30,000 Chevron Corporation.............................................. 1,298,238 2,010,000
48,000 Exxon Corporation................................................ 3,329,196 4,542,000
13,000 Halliburton Company.............................................. 619,390 783,250
15,000 Helmerich & Payne, Inc........................................... 557,475 806,250
20,000 Mobil Corporation................................................ 1,363,970 2,420,000
22,000 Royal Dutch Petroleum Company New York Shares ADR................ 2,863,640 3,737,250
------------ ------------
11,495,369 16,317,000
------------ ------------
FINANCIAL SERVICES -- 13.9%
30,000 Allstate Corporation............................................. 1,019,918 1,807,500
36,000 American Express Company......................................... 1,090,473 1,881,000
20,000 American International Group, Inc................................ 1,433,983 2,300,000
20,000 BankAmerica Corporation.......................................... 1,170,530 2,060,000
16,000 Bank of Boston Corporation....................................... 603,920 1,118,000
42,000 Bank of New York Company, Inc.................................... 778,629 1,506,750
20,000 Chase Manhattan Corporation...................................... 1,499,550 1,890,000
20,000 Citicorp......................................................... 1,021,675 2,185,000
16,000 Federal Home Loan Mortgage Corporation........................... 932,630 1,828,000
49,000 Federal National Mortgage Association............................ 1,004,063 2,021,250
26,000 Green Tree Financial Corporation................................. 874,028 1,088,750
14,000 Morgan Stanley Group, Inc........................................ 735,010 841,750
16,000 NationsBank Corporation.......................................... 864,460 1,658,000
10,000 SAFECO Corporation............................................... 349,350 416,250
28,000 SunTrust Banks, Inc.............................................. 801,417 1,421,000
38,666 The Travelers Group, Inc......................................... 808,596 1,739,957
7,000 Wells Fargo & Company............................................ 995,285 1,992,375
------------ ------------
15,983,517 27,755,582
------------ ------------
HEALTH CARE -- 11.2%
36,000 Abbott Laboratories.............................................. 1,097,328 2,007,000
4,000 Allegiance Corporation........................................... 53,781 90,500
25,000 American Home Products Corporation............................... 1,484,125 1,606,250
20,000 Baxter International, Inc........................................ 642,389 850,000
19,300 Bristol-Myers Squibb Company..................................... 1,432,122 2,195,375
21,000 Eli Lilly & Company.............................................. 1,351,015 1,606,500
49,000 Johnson & Johnson, Inc........................................... 1,694,647 2,603,125
10,000 Manor Care, Inc.................................................. 177,215 252,500
42,000 Merck & Company, Inc............................................. 2,055,992 3,486,000
23,000 Pfizer Incorporated.............................................. 1,475,174 2,061,375
51,000 Schering-Plough Corporation...................................... 1,398,817 3,633,750
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 16
PERFORMANCE FUNDS TRUST
EQUITY FUND
Portfolio of Investments (continued)
November 30, 1996
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
HEALTH CARE (CONTINUED)
26,000 Warner Lambert Company........................................... $ 839,035 $ 1,859,000
------------ ------------
13,701,640 22,251,375
------------ ------------
MULTI-INDUSTRY -- 2.2%
14,000 Allied-Signal, Inc............................................... 583,735 1,025,500
12,000 Loews Corporation................................................ 704,922 1,113,000
17,000 Textron, Inc..................................................... 975,290 1,621,375
30,000 Whitman Corporation.............................................. 491,125 690,000
------------ ------------
2,755,072 4,449,875
------------ ------------
RAW MATERIALS -- 4.3%
14,000 Aluminum Company of America...................................... 644,930 890,750
12,000 Avery -- Dennison Corporation.................................... 457,620 847,500
25,000 Cyprus Amax Minerals Company..................................... 729,000 618,750
12,000 Dow Chemical Company............................................. 916,385 1,005,000
22,000 du Pont (E.I.) de Nemours & Company.............................. 1,358,458 2,073,500
18,000 Ecolab, Inc...................................................... 358,287 699,750
15,000 Hercules, Inc.................................................... 547,300 727,500
16,000 Praxair, Inc..................................................... 390,590 778,000
19,000 Union Carbide Corporation........................................ 816,210 876,375
------------ ------------
6,218,780 8,517,125
------------ ------------
RETAIL -- 4.6%
20,000 Circuit City Stores, Inc......................................... 373,765 667,500
22,000 Gap, Inc......................................................... 708,493 706,750
31,000 McDonalds Corporation............................................ 706,165 1,449,250
20,000 J.C. Penney Company.............................................. 790,950 1,075,000
22,000 Sears, Roebuck & Company......................................... 785,554 1,094,500
91,000 Wal-Mart Stores, Inc............................................. 2,242,198 2,320,500
46,000 Walgreen Company................................................. 946,900 1,920,500
------------ ------------
6,554,025 9,234,000
------------ ------------
SHELTER -- 0.8%
20,000 Armstrong World Industries, Inc.................................. 705,625 1,505,000
------------ ------------
TECHNOLOGY -- 14.4%
30,000 Andrew Corporation+.............................................. 212,603 1,736,250
15,000 Ceridian Corporation+............................................ 503,480 721,875
28,000 Cisco Systems, Inc............................................... 1,566,208 1,900,500
37,500 Computer Associates International, Inc........................... 356,642 2,465,625
38,000 Hewlett Packard Company.......................................... 1,077,330 2,047,250
31,000 Intel Corporation................................................ 1,695,099 3,933,125
19,000 International Business Machines Corporation...................... 1,663,834 3,028,125
10,000 Lockheed Martin Corporation...................................... 780,900 906,250
60,000 Loral Space & Communications Limited............................. 727,500 1,110,000
18,796 Lucent Technologies, Inc......................................... 868,550 963,295
23,000 Microsoft Corporation............................................ 2,156,791 3,608,125
25,000 Motorola, Inc.................................................... 1,378,980 1,384,375
</TABLE>
See accompanying notes to financial statements.
12
<PAGE> 17
PERFORMANCE FUNDS TRUST
EQUITY FUND
Portfolio of Investments (continued)
November 30, 1996
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
TECHNOLOGY (CONTINUED)
SHARES/
PRINCIPAL MARKET
AMOUNT COST VALUE
- ---------- ------------ ------------
<C> <S> <C> <C>
31,100 Northrop Grumman Corporation..................................... $ 1,070,600 $ 2,585,187
23,200 Raytheon Company................................................. 556,170 1,186,100
18,000 Rockwell International Corporation............................... 603,100 1,156,500
------------ ------------
15,217,787 28,732,582
------------ ------------
TRANSPORTATION -- 1.0%
11,000 Burlington Northern Santa Fe Corporation......................... 800,230 988,625
11,000 Norfolk Southern Corporation..................................... 770,130 990,000
------------ ------------
1,570,360 1,978,625
------------ ------------
UTILITIES -- 8.9%
63,000 AT &T Corporation................................................ 2,393,644 2,472,750
24,000 Ameritech Corporation............................................ 1,414,910 1,413,000
42,000 BellSouth Corporation............................................ 1,370,380 1,695,750
30,000 Consolidated Edison Company of New York, Inc..................... 1,050,562 870,000
30,000 DTE Energy Company............................................... 1,037,860 960,000
36,000 Entergy Corporation.............................................. 1,316,213 976,500
40,000 GTE Corporation.................................................. 1,443,606 1,795,000
20,800 MCI Communications Corporation................................... 383,960 634,400
32,000 Ohio Edison Company.............................................. 685,255 736,000
29,000 Pacific Enterprises.............................................. 780,665 888,125
94,000 Southern Company................................................. 1,805,563 2,091,500
31,000 SBC Communications, Inc.......................................... 1,093,500 1,631,375
40,000 Sprint Corporation............................................... 1,092,772 1,675,000
------------ ------------
15,868,890 17,839,400
------------ ------------
TOTAL COMMON STOCKS.............................................. 122,382,626 188,527,345
============ ============
SHORT TERM INVESTMENTS -- 5.5%
U.S. TREASURY OBLIGATIONS -- 5.0%
$1,500,000 U.S. Treasury Bills, 12/5/1996................................... 1,499,152 1,498,770
1,400,000 U.S. Treasury Bills, 1/9/1997.................................... 1,392,493 1,392,132
1,500,000 U.S. Treasury Bills, 1/30/1997................................... 1,487,725 1,487,055
2,000,000 U.S. Treasury Bills, 2/6/1997.................................... 1,981,511 1,980,700
3,700,000 U.S. Treasury Bills, 2/20/1997................................... 3,658,374 3,657,413
------------ ------------
TOTAL U.S. TREASURY OBLIGATIONS.................................. 10,019,255 10,016,070
============ ============
MONEY MARKET FUND -- 0.5%
900,174 Short-Term Investments Co. Treasury Portfolio.................... 900,174 900,174
------------ ------------
TOTAL SHORT TERM INVESTMENTS..................................... 10,919,429 10,916,244
------------ ------------
TOTAL INVESTMENTS -- 99.9%....................................... $133,302,055* 199,443,589
============
LIABILITIES IN EXCESS OF OTHER ASSETS -- 0.1% 183,758
------------
NET ASSETS -- 100.0% (11,369,390 shares outstanding)...........................
$199,627,347
============
</TABLE>
* The cost for Federal income tax purposes is substantially the same.
+ Represents non-income producing securities.
ADR -- American Depositary Receipt.
See accompanying notes to financial statements.
13
<PAGE> 18
PERFORMANCE FUNDS TRUST
MID CAP GROWTH FUND
Portfolio of Investments
November 30, 1996
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
- ---------- ----------- ------------
<C> <S> <C> <C>
COMMON STOCKS -- 95.53%
AEROSPACE/DEFENSE -- 1.04%
22,900 Precision Castparts Corporation.............................. $ 549,551 $ 1,073,438
----------- ------------
ADVERTISING -- 1.14%
23,000 Omnicom Group, Inc........................................... 965,006 1,173,000
----------- ------------
AUTO PARTS -- 1.11%
28,000 Kaydon Corporation........................................... 787,360 1,144,500
----------- ------------
BANKING -- 1.70%
26,000 State Street Boston Corporation.............................. 1,082,385 1,758,250
----------- ------------
BUILDING MATERIALS -- 0.86%
14,300 Vulcan Materials Company..................................... 777,654 890,175
----------- ------------
BUSINESS EQUIPMENT & SERVICES -- 2.83%
42,750 Comdisco, Inc................................................ 598,324 1,389,375
47,000 Manpower, Inc................................................ 1,409,955 1,533,375
----------- ------------
2,008,279 2,922,750
----------- ------------
CAPITAL GOODS -- 3.74%
60,000 American Power Conversion Corporation+....................... 919,250 1,421,250
10,000 Avnet, Inc................................................... 438,400 585,000
29,000 Kennametal, Inc.............................................. 822,997 1,044,000
15,000 Parametric Technology Company+............................... 516,375 815,625
----------- ------------
2,697,022 3,865,875
----------- ------------
CHEMICALS -- 1.85%
13,000 IMC Global, Inc.............................................. 480,795 469,625
21,400 Olin Corporation............................................. 542,040 853,325
36,100 Wellman, Inc................................................. 816,999 582,112
----------- ------------
1,839,834 1,905,062
----------- ------------
COMMERCIAL SERVICES -- 0.99%
75,000 Olsten Corporation........................................... 1,817,425 1,021,875
----------- ------------
COMPUTER EQUIPMENT -- 1.55%
60,000 Quantum Corporation+......................................... 1,031,875 1,605,000
----------- ------------
COMPUTER SOFTWARE -- 4.19%
30,000 BMC Software, Inc.+.......................................... 346,425 1,305,000
38,250 Cadence Design System, Inc.+................................. 299,795 1,525,219
54,200 Reynolds & Reynolds Company.................................. 655,312 1,504,050
----------- ------------
1,301,532 4,334,269
----------- ------------
CONSUMER DURABLES -- 0.74%
17,200 Harley-Davidson, Inc......................................... 520,350 763,250
----------- ------------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE> 19
PERFORMANCE FUNDS TRUST
MID CAP GROWTH FUND
Portfolio of Investments (continued)
November 30, 1996
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
- ---------- ----------- ------------
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
CONSUMER NON-DURABLES -- 4.60%
30,900 Coca-Cola Enterprises, Inc................................... $ 545,711 $ 1,394,362
56,800 IBP, Inc..................................................... 1,019,141 1,405,800
34,033 Lancaster Colony Corporation................................. 1,185,196 1,480,435
42,000 Michael Foods, Inc........................................... 451,985 477,750
----------- ------------
3,202,033 4,758,347
----------- ------------
CONSUMER SERVICES -- 0.65%
28,500 Banta Corporation............................................ 688,247 676,875
----------- ------------
DRUGS -- 1.00%
70,000 Mylan Labs................................................... 1,308,225 1,032,500
----------- ------------
ELECTRICAL EQUIPMENT -- 1.08%
20,000 Ametek, Inc.................................................. 337,960 425,000
13,800 Cirrus Logic, Inc.+.......................................... 256,975 270,825
9,000 Linear Technology Corporation................................ 389,250 424,125
----------- ------------
984,185 1,119,950
----------- ------------
ELECTRONICS -- 3.23%
18,000 Analog Devices Inc.+......................................... 477,120 578,250
31,000 Arrow Electronics, Inc.+..................................... 1,502,025 1,666,250
28,000 Sundstrand Corp.............................................. 1,010,394 1,092,000
----------- ------------
2,989,539 3,336,500
----------- ------------
ENERGY -- 2.77%
40,000 Smith International, Inc.+................................... 405,926 1,635,000
16,200 Tosco Corporation............................................ 692,634 1,233,225
----------- ------------
1,098,560 2,868,225
----------- ------------
ENTERTAINMENT -- 0.70%
30,000 Mirage Resorts+.............................................. 369,249 723,750
----------- ------------
FINANCIAL SERVICES -- 8.93%
37,200 AFLAC, Inc................................................... 807,817 1,553,100
51,561 Bear Stearns Companies, Inc.................................. 982,212 1,417,927
50,000 Charles Schwab Corporation................................... 1,080,100 1,506,250
10,900 Crestar Financial Corporation................................ 494,693 758,913
48,400 Edwards (A.G.), Inc.......................................... 1,145,766 1,512,500
28,200 First Security Corporation................................... 538,004 912,975
22,000 Franklin Resources, Inc...................................... 1,031,307 1,573,000
----------- ------------
6,079,899 9,234,665
----------- ------------
FOREST PRODUCTS & PAPER -- 0.34%
7,000 Consolidated Papers, Inc..................................... 369,630 347,375
----------- ------------
HEALTH CARE -- 5.09%
30,000 Beckman Instruments, Inc..................................... 829,592 1,087,500
21,900 Datascope Corporation+....................................... 352,432 405,150
</TABLE>
See accompanying notes to financial statements.
15
<PAGE> 20
PERFORMANCE FUNDS TRUST
MID CAP GROWTH FUND
Portfolio of Investments (continued)
November 30, 1996
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
- ---------- ----------- ------------
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
HEALTH CARE (CONTINUED)
32,000 Healthcare COMPARE Corporation+.............................. $ 974,563 $ 1,372,000
16,000 Healthsouth Corporation+..................................... 571,728 602,000
62,000 Stryker Corporation.......................................... 1,352,132 1,798,000
----------- ------------
4,080,447 5,264,650
----------- ------------
INDUSTRIAL -- 0.81%
12,000 Harsco Corp.................................................. 784,080 837,000
----------- ------------
INSURANCE -- 3.00%
17,550 Mercantile Bancorporation.................................... 548,123 927,956
12,000 Progressive Corp............................................. 773,330 837,000
32,000 Sun America.................................................. 1,047,184 1,340,000
----------- ------------
2,368,637 3,104,956
----------- ------------
MANUFACTURING -- 3.63%
39,000 Callaway Golf................................................ 784,260 1,184,625
30,000 Cypress Semiconductor Corp.+................................. 425,500 367,500
17,600 Danaher Corporation.......................................... 334,097 787,600
46,000 Leggett & Platt, Inc......................................... 950,285 1,408,750
----------- ------------
2,494,142 3,748,475
----------- ------------
METALS -- 0.67%
10,700 Brush Wellman, Inc........................................... 184,063 179,225
24,300 Hanna (M.A.) Company......................................... 412,316 513,337
----------- ------------
596,379 692,562
----------- ------------
OIL & GAS -- 1.36%
47,000 Valero Energy................................................ 1,003,105 1,410,000
----------- ------------
PHARMACEUTICALS -- 1.21%
15,000 Cardinal Health, Inc......................................... 832,375 1,254,375
----------- ------------
PUBLISHING & PRINTING -- 1.64%
20,000 Belo (A.H.) Corporation -- Common Series A................... 535,650 772,500
7,000 Media General, Inc. Class A.................................. 214,747 222,250
2,000 Washington Post Company...................................... 613,555 696,000
----------- ------------
1,363,952 1,690,750
----------- ------------
RAW MATERIALS -- 1.50%
27,000 Cleveland-Cliffs, Inc........................................ 1,074,983 1,194,750
11,000 Diamond Shamrock, Inc........................................ 309,067 357,500
----------- ------------
1,384,050 1,552,250
----------- ------------
RETAIL -- 5.51%
15,000 Claire Stores, Inc........................................... 287,150 241,875
48,750 Dollar General Corporation................................... 813,451 1,401,563
34,800 Hannaford Brothers Company................................... 847,109 1,122,300
</TABLE>
See accompanying notes to financial statements.
16
<PAGE> 21
PERFORMANCE FUNDS TRUST
MID CAP GROWTH FUND
Portfolio of Investments (continued)
November 30, 1996
<TABLE>
<CAPTION>
MARKET
SHARES COST VALUE
- ---------- ----------- ------------
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
RETAIL (CONTINUED)
60,000 Mac Frugals Bargain Close-Outs, Inc.+........................ $ 891,400 $ 1,477,500
55,000 Waban, Inc.+................................................. 883,175 1,450,625
----------- ------------
3,722,285 5,693,863
----------- ------------
RETAIL-SPECIALTY LINE -- 0.52%
27,000 Staples, Inc.+............................................... 271,000 533,250
----------- ------------
SHELTER -- 0.75%
47,500 Clayton Homes, Inc........................................... 677,882 771,875
----------- ------------
TECHNOLOGY -- 3.05%
20,000 U.S. Robotics, Inc.+......................................... 1,189,375 1,572,500
32,000 Varian Associates, Inc....................................... 1,284,966 1,576,000
----------- ------------
2,474,341 3,148,500
----------- ------------
TELECOMMUNICATIONS -- 1.96%
62,000 Equifax, Inc................................................. 1,024,785 2,030,500
----------- ------------
TEXTILES -- 1.37%
46,000 Jones Apparel Group, Inc.+................................... 1,006,638 1,414,500
----------- ------------
TRANSPORTATION -- 4.54%
44,000 Atlantic Southeast Airlines.................................. 1,016,875 1,001,000
45,000 Illinois Central Corporation................................. 1,116,160 1,524,375
24,000 PHH Corporation.............................................. 486,189 1,077,000
25,000 Tidewater Corporation........................................ 720,350 1,093,750
----------- ------------
3,339,574 4,696,125
----------- ------------
UTILITIES -- 13.88%
38,000 Central Louisiana Electric................................... 941,168 1,073,500
32,000 Century Telephone Enterprises................................ 994,123 1,020,000
30,000 CMS Energy Corporation....................................... 700,959 975,000
47,000 Delmarva Power & Light Company............................... 981,187 945,875
38,000 Illinova Corporation......................................... 951,820 1,007,000
34,000 MCN Corporation.............................................. 648,259 977,500
31,000 New England Electric System.................................. 1,084,164 1,061,750
44,000 New York Gas & Electric Company.............................. 1,003,585 951,500
26,000 NIPSCO Industries, Inc....................................... 817,341 1,007,500
25,000 Oklahoma Gas & Electric Company.............................. 913,275 1,028,125
33,000 Pinnacle West Capital........................................ 822,170 1,027,125
34,000 Portland General Corporation................................. 648,325 1,462,000
42,000 Public Service New Mexico Company............................ 754,530 803,250
</TABLE>
See accompanying notes to financial statements.
17
<PAGE> 22
PERFORMANCE FUNDS TRUST
MID CAP GROWTH FUND
Portfolio of Investments (continued)
November 30, 1996
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL MARKET
AMOUNT COST VALUE
- ---------- ----------- ------------
<C> <S> <C> <C>
COMMON STOCKS (CONTINUED)
UTILITIES (CONTINUED)
37,000 Scana Corporation............................................ $ 938,709 $ 1,008,250
----------- ------------
12,199,615 14,348,375
----------- ------------
TOTAL COMMON STOCK........................................... 72,091,127 98,747,637
----------- ------------
SHORT-TERM INVESTMENTS -- 4.51%
U.S. TREASURY OBLIGATIONS -- 2.90%
$3,000,000 U.S. Treasury Bill, 12/12/1996............................... 2,995,453 2,995,453
----------- ------------
MONEY MARKET FUNDS -- 1.61%
1,663,022 AIM Treasury Money Market.................................... 1,663,022 1,663,022
----------- ------------
TOTAL SHORT-TERM INVESTMENTS................................. 4,658,475 4,658,475
----------- ------------
TOTAL INVESTMENTS -- 100.04%................................. 76,749,602* 103,406,112
===========
LIABILITIES IN EXCESS OF OTHER ASSETS -- -0.04%............................. (43,630)
------------
NET ASSETS -- 100.00% (6,741,106 shares outstanding)........................ $103,362,482
============
</TABLE>
* The cost for Federal income tax purposes is substantially the same.
+ Non-income producing security.
See accompanying notes to financial statements.
18
<PAGE> 23
PERFORMANCE FUNDS TRUST
Statements of Assets and Liabilities (unaudited)
November 30, 1996
<TABLE>
<CAPTION>
MONEY SHORT TERM INTERMEDIATE
MARKET GOVERNMENT TERM GOVERNMENT
FUND INCOME FUND INCOME FUND
------------ ------------ ---------------
<S> <C> <C> <C>
ASSETS:
Investments in securities at value (identified cost
$371,041,752, $117,653,116, $84,849,129, $133,302,055
and $76,749,602 respectively)........................ $371,041,752 $118,934,311 $86,444,363
Repurchase agreements, at value (cost $27,000,000, $0,
$0, $0 and $0 respectively).......................... 27,000,000 -- --
Receivable from brokers for investments sold........... -- 4,949,900 --
Dividends and interest receivable...................... 995,344 1,722,885 1,428,243
Unamortized organization expenses...................... -- 8,661 8,661
Prepaid expenses and other assets...................... -- 2,571 1,968
------------ ------------ -----------
Total Assets....................................... 399,037,096 125,618,328 87,883,235
------------ ------------ -----------
LIABILITIES:
Dividends payable...................................... 1,692,578 523,347 412,751
Payable for fund shares redeemed....................... -- -- 30,765
Payable to brokers for investments purchased........... -- 4,908,519 --
Cash overdraft......................................... -- 18,306 --
Advisor fee payable.................................... 32,692 38,572 32,396
Administrative services fee payable.................... 19,615 14,584 10,799
Distribution fee payable (Consumer Service Class)...... 39,065 5,610 1,027
Custodian fee payable.................................. 13,077 3,889 2,880
Other accrued expenses................................. 3,039 124,259 58,537
------------ ------------ -----------
Total Liabilities.................................. 1,800,066 5,637,086 549,155
------------ ------------ -----------
NET ASSETS...................................... $397,237,030 $119,981,242 $87,334,080
============ ============ ===========
NET ASSETS CONSIST OF:
Shares of Beneficial Interest Outstanding (Par value of
$.001 per share) unlimited number of shares
authorized........................................... $ 397,229 $ 12,169 $ 8,583
Additional paid in capital............................. 396,832,264 121,939,971 90,405,484
Accumulated undistributed (distributions in excess of)
net investment income................................ (13,880) -- --
Accumulated realized gains (losses) on investments..... 21,417 (3,252,093) (4,675,221)
Net unrealized appreciation from investments........... -- 1,281,195 1,595,234
------------ ------------ -----------
Net assets applicable to shares outstanding.............. $397,237,030 $119,981,242 $87,334,080
============ ============ ===========
SHARES OF BENEFICIAL INTEREST:
INSTITUTIONAL CLASS:
Shares of Beneficial Interest Outstanding............ 361,683,927 12,044,764 8,396,460
============ ============ ===========
Net Asset Value, Maximum Offering Price, and
Redemption Price Per Share......................... $1.00 $9.86 $10.17
===== ===== ======
CONSUMER SERVICE CLASS:
Shares of Beneficial Interest Outstanding............ 35,545,570 124,063 186,858
============ ============ ===========
Net Asset Value, Maximum Offering Price, and
Redemption Price Per Share......................... $1.00 $9.86 $10.17
===== ===== ======
</TABLE>
- ---------------
(a) Offering price and redemption price are the same for the Money Market Fund.
See notes to financial statements.
19
<PAGE> 24
PERFORMANCE FUNDS TRUST
Statements of Assets and Liabilities (unaudited) (continued)
November 30, 1996
<TABLE>
<CAPTION>
MID CAP
EQUITY GROWTH
FUND FUND
------------ ------------
<S> <C> <C>
ASSETS:
Investments in securities at value (identified cost $371,041,752,
$117,653,116, $84,849,129, $133,302,055 and $76,749,602
respectively)......................................................... $199,443,589 $103,406,112
Dividends and interest receivable....................................... 449,460 99,623
Receivable for capital shares sold...................................... 134,572 --
Prepaid expenses and other assets....................................... -- 25,014
------------ -----------
Total Assets........................................................ 200,027,621 103,530,749
------------ -----------
LIABILITIES:
Dividends payable....................................................... 262,245 50,124
Payable for fund shares redeemed........................................ 787 10,015
Advisor fee payable..................................................... 80,567 49,796
Administrative services fee payable..................................... 24,170 12,449
Distribution fee payable (Consumer Service Class)....................... 11,117 --
Custodian fee payable................................................... 6,445 3,320
Other accrued expenses.................................................. 19,189 42,563
------------ -----------
Total Liabilities................................................... 404,520 168,267
------------ -----------
NET ASSETS:...................................................... $199,623,101 $103,362,482
============ ===========
NET ASSETS CONSIST OF:
Shares of beneficial Interest outstanding (Par value of $.001 per share)
unlimited number of shares authorized................................. $ 11,369 $ 6,741
Additional paid in capital.............................................. 130,547,137 74,476,388
Accumulated undistributed (distributions in excess of) net investment
income................................................................ 70,871 8,250
Accumulated realized gains (losses) on investments...................... 2,852,190 2,214,593
Net unrealized appreciation from investments............................ 66,141,534 26,656,510
------------ -----------
Net assets applicable to shares outstanding............................... $199,623,101 $103,362,482
============ ===========
SHARES OF BENEFICIAL INTEREST:
INSTITUTIONAL CLASS:
Shares of Beneficial Interest Outstanding............................. 10,562,781 6,591,750
============ ===========
Net Asset Value, Maximum Offering Price, and Redemption Price Per
Share................................................................ $17.56 $15.33
====== ======
CONSUMER SERVICE CLASS:
Shares of Beneficial Interest Outstanding............................. 806,609 149,356
============ ===========
Net Asset Value, Maximum Offering Price, and Redemption Price Per
Share................................................................ $17.56 $15.33
====== ======
</TABLE>
- ---------------
(a) Offering price and redemption price are the same for the Money Market Fund.
See notes to financial statements.
20
<PAGE> 25
PERFORMANCE FUNDS TRUST
Statement of Operations (unaudited)
For the Six Months Ended November 30, 1996
<TABLE>
<CAPTION>
MONEY SHORT TERM INTERMEDIATE
MARKET GOVERNMENT TERM GOVERNMENT
FUND INCOME FUND INCOME FUND
----------- ----------- ---------------
<S> <C> <C> <C>
INCOME:
Interest income........................................ $10,964,863 $3,424,877 $ 2,857,197
Dividend income........................................ 15,370 4,215 708
---------- ---------- ----------
Total Income........................................... 10,980,233 3,429,092 2,857,905
---------- ---------- ----------
EXPENSES:
Advisory............................................... 606,587 218,825 216,814
Administrative services................................ 303,293 83,288 65,044
Custodian.............................................. 80,878 22,210 17,345
Legal.................................................. 19,795 2,858 3,288
Fund Accounting........................................ 13,505 16,032 19,704
Distribution (Consumer Service Class).................. 35,716 1,643 2,451
Insurance.............................................. 9,320 2,856 2,076
Audit.................................................. 9,904 9,656 13,493
Reports to shareholders................................ 4,842 2,053 6,164
Registration........................................... 10,621 1,493 2,778
Transfer Agent fees.................................... 6,215 4,177 9,871
Trustees' fees and expenses............................ 3,613 2,613 4,649
Miscellaneous.......................................... 21,200 5,310 8,746
---------- ---------- ----------
Total Expenses before waivers........................ 1,125,489 373,014 372,423
Less: Expenses waived by Advisor and Administrator... (586,366) -- (21,681)
---------- ---------- ----------
Net expenses......................................... 539,123 373,014 350,742
---------- ---------- ----------
NET INVESTMENT INCOME.................................. 10,441,110 3,056,078 2,507,163
---------- ---------- ----------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS:
Net realized gains (losses) on investment
transactions......................................... 21,417 (535,212) (123,510)
Net change in unrealized appreciation on investments... -- 1,818,309 3,218,480
---------- ---------- ----------
Net realized and unrealized gains (losses) on
investments.......................................... 21,417 1,283,097 3,094,970
---------- ---------- ----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS......... $10,462,527 $4,339,175 $ 5,602,133
========== ========== ==========
</TABLE>
See notes to financial statements.
21
<PAGE> 26
PERFORMANCE FUNDS TRUST
Statement of Operations (unaudited) (continued)
For the Six Months Ended November 30, 1996
<TABLE>
<CAPTION>
MID CAP
EQUITY GROWTH
FUND FUND
----------- ----------
<S> <C> <C>
INCOME:
Interest income............................................................ $ 324,289 $ 153,067
Dividend income............................................................ 1,655,323 663,878
---------- ----------
Total Income............................................................... 1,979,612 816,945
---------- ----------
EXPENSES:
Advisory................................................................... 500,802 335,665
Administrative services.................................................... 125,201 67,132
Custodian.................................................................. 33,387 17,902
Legal...................................................................... 6,969 2,180
Fund Accounting............................................................ 17,407 18,172
Distribution (Consumer Service Class)...................................... 13,713 2,200
Insurance.................................................................. 3,337 2,254
Audit...................................................................... 12,062 12,452
Reports to shareholders.................................................... 8,621 2,413
Registration............................................................... 5,751 2,305
Transfer Agent fees........................................................ 14,228 5,089
Trustees' fees and expenses................................................ 2,747 3,641
Miscellaneous.............................................................. 19,601 8,806
---------- ----------
Total Expenses before waivers............................................ 763,826 480,211
Less: Expenses waived by Advisor and Administrator....................... (83,466) (67,134)
---------- ----------
Net expenses............................................................. 680,360 413,077
---------- ----------
NET INVESTMENT INCOME...................................................... 1,299,252 403,868
---------- ----------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS:
Net realized gains (losses) on investment transactions..................... (2,817) 1,440,107
Net change in unrealized appreciation on investments....................... 25,216,594 7,543,084
---------- ----------
Net realized and unrealized gains (losses) on investments.................. 25,213,777 8,983,191
---------- ----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................. $26,513,029 $9,387,059
========== ==========
</TABLE>
See notes to financial statements.
22
<PAGE> 27
PERFORMANCE FUNDS TRUST
Statements of Changes in Net Assets (unaudited)
<TABLE>
<CAPTION>
SHORT TERM GOVERNMENT INTERMEDIATE TERM GOVERNMENT
MONEY MARKET FUND INCOME FUND INCOME FUND
--------------------------------- -------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1996 1996 1996 1996 1996 1996
---------------- ------------- ---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment
income.............. $ 10,441,110 $ 20,767,491 $ 3,056,078 $ 6,150,489 $ 2,507,163 $ 4,385,529
Net realized gains
(losses) from
investment
transactions........ 21,417 -- (535,212) 1,061,507 (123,510) 2,334,645
Net change in
unrealized
appreciation
(depreciation) from
investments......... -- -- 1,818,309 (2,185,226) 3,218,480 (4,382,087)
------------ ------------ ------------ ------------ ----------- ------------
Increase in net assets
resulting from
operations.......... 10,462,527 20,767,491 4,339,175 5,026,770 5,602,133 2,338,087
------------ ------------ ------------ ------------ ----------- ------------
Distributions to
Shareholders from:
Net investment income
Institutional
Class............. (9,749,408) (20,231,865) (3,021,579) (6,101,238) (2,452,905) (4,215,076)
Consumer Service
Class............. (705,582) (535,626) (34,499) (49,251) (54,258) (170,453)
------------ ------------ ------------ ------------ ----------- ------------
(10,454,990) (20,767,491) (3,056,078) (6,150,489) (2,507,163) (4,385,529)
------------ ------------ ------------ ------------ ----------- ------------
Total Distributions
to Shareholders... (10,454,990) (20,767,491) (3,056,078) (6,150,489) (2,507,163) (4,385,529)
------------ ------------ ------------ ------------ ----------- ------------
Transactions in Shares
of Beneficial Interest
Proceeds from sales of
shares:
Institutional
Class............. 381,724,244 866,500,419 16,474,350 39,421,139 13,742,784 18,417,877
Consumer Service
Class............. 33,696,971 37,943,309 22,432 1,033,188 53,303 708,923
------------ ------------ ------------ ------------ ----------- ------------
415,421,215 904,443,728 16,496,782 40,454,327 13,796,087 19,126,800
------------ ------------ ------------ ------------ ----------- ------------
Net asset value of
shares issued to
Shareholders in
reinvestment of
distributions:
Institutional
Class........... 25,112 28,067 2,191,213 4,357,882 1,626,741 2,629,070
Consumer Service
Class........... 652,098 456,141 32,663 42,063 45,789 145,175
------------ ------------ ------------ ------------ ----------- ------------
677,210 484,208 2,223,876 4,399,945 1,672,530 2,774,245
------------ ------------ ------------ ------------ ----------- ------------
Cost of shares
redeemed:
Institutional
Class............. (387,031,796) (824,504,347) (7,794,018) (40,782,969) (10,641,044) (49,449,964)
Consumer Service
Class............. (24,019,339) (16,747,680) (322,557) (322,490) (439,282) (1,829,651)
------------ ------------ ------------ ------------ ----------- ------------
(411,051,135) (841,252,027) (8,116,575) (41,105,459) (11,080,326) (51,279,615)
------------ ------------ ------------ ------------ ----------- ------------
Net increase
(decrease) in net
assets derived from
transactions in
shares of beneficial
interest............ 5,047,290 63,675,909 10,604,083 3,748,813 4,388,291 (29,378,570)
------------ ------------ ------------ ------------ ----------- ------------
Total Increase
(Decrease) in Net
Assets................ 5,054,827 63,675,909 11,887,180 2,625,094 7,483,261 (31,426,012)
NET ASSETS:
Beginning of Year..... 392,182,203 328,506,294 108,094,062 105,468,968 79,850,819 111,276,831
------------ ------------ ------------ ------------ ----------- ------------
End of Year........... $ 397,237,030 $ 392,182,203 $119,981,242 $108,094,062 $ 87,334,080 $ 79,850,819
============ ============ ============ ============ =========== ============
</TABLE>
See notes to financial statements.
23
<PAGE> 28
PERFORMANCE FUNDS TRUST
Statements of Changes in Net Assets (unaudited) (continued)
<TABLE>
<CAPTION>
EQUITY FUND MID CAP GROWTH FUND
-------------------------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1996 1996 1996 1996
---------------- ------------- ---------------- ------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income...................... $ 1,299,252 $ 2,043,173 $ 403,868 $ 649,351
Net realized gains (losses) from investment
transactions............................. (2,817) 3,790,726 1,440,107 2,929,921
Net change in unrealized appreciation from
investments.............................. 25,216,594 25,139,343 7,543,084 14,335,566
-------------- ------------- ------------ ------------
Increase in net assets resulting from
operations............................... 26,513,029 30,973,242 9,387,059 17,914,838
-------------- ------------- ------------ ------------
Distributions to Shareholders from:
Net investment income
Institutional Class...................... (1,215,209) (1,950,779) (391,273) (643,254)
Consumer Service Class................... (73,487) (92,399) (5,832) (4,859)
-------------- ------------- ------------ ------------
(1,288,696) (2,043,178) (397,105) (648,113)
-------------- ------------- ------------ ------------
Realized capital gains
Institutional Class...................... -- (4,158,224) -- (2,337,629)
Consumer Service Class................... -- (210,061) -- (15,913)
-------------- ------------- ------------ ------------
-- (4,368,285) -- (2,353,542)
-------------- ------------- ------------ ------------
Total Distributions to Shareholders........ (1,288,696) (6,411,463) (397,105) (3,001,655)
-------------- ------------- ------------ ------------
Transactions in Shares of Beneficial Interest
Proceeds from sales of shares:
Institutional Class...................... 39,113,302 31,171,285 21,433,815 26,665,253
Consumer Service Class................... 3,297,338 4,177,748 807,148 1,005,191
-------------- ------------- ------------ ------------
42,410,640 35,349,033 22,240,963 27,670,444
-------------- ------------- ------------ ------------
Net asset value of shares issued to
Shareholders in reinvestment of
distributions:
Institutional Class...................... 1,064,203 4,894,245 362,212 2,548,001
Consumer Service Class................... 78,150 293,864 6,188 19,816
-------------- ------------- ------------ ------------
1,142,353 5,188,109 368,400 2,567,817
-------------- ------------- ------------ ------------
Cost of shares redeemed:
Institutional Class...................... (18,162,044) (19,353,829) (10,233,385) (11,334,681)
Consumer Service Class................... (967,363) (1,113,532) (144,928) (19,842)
-------------- ------------- ------------ ------------
(19,129,407) (20,467,361) (10,378,313) (11,354,523)
-------------- ------------- ------------ ------------
Net increase in net assets derived from
transactions in shares of beneficial
interest................................. 24,423,586 20,069,781 12,231,050 18,883,738
-------------- ------------- ------------ ------------
Total Increase in Net Assets................. 49,647,919 44,631,560 21,221,004 33,796,921
NET ASSETS:
Beginning net assets....................... 149,975,182 105,343,622 82,141,478 48,344,557
Ending net assets.......................... $ 199,623,101 $ 149,975,182 $103,362,482 $ 82,141,478
============== ============= ============ ============
</TABLE>
See notes to financial statements.
24
<PAGE> 29
PERFORMANCE FUNDS TRUST
Notes to Financial Statements -- November 30, 1996
1. Description and Organization. Performance Funds Trust (the "Trust") is
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end, management investment company. The Trust was organized as
a Delaware business trust on March 11, 1992 and currently consists of six
separate portfolios: Money Market Fund, Short Term Government Income Fund,
Intermediate Term Government Income Fund, Equity Fund, Mid Cap Growth Fund and
U.S. Treasury Money Market Fund (collectively, the "Funds"), each with two (2)
classes of shares, the Institutional Class (offered only to certain
institutional investors) and the Consumer Service Class. Each class of shares
outstanding bears the same voting, dividend, liquidation and other rights and
conditions, except that the Consumer Service Class shares bear the expenses
incurred in the distribution and marketing of such shares. The Consumer Service
Class shares can be subject to a sales load of 2.00% for the Short Term
Government Income Fund and the Intermediate Term Government Income Fund and
4.70% for the Equity Fund and the Mid Cap Growth Fund. However, effective
December 12, 1995, the sales load for Consumer Service Class has been lifted.
There is no sales charge on the Money Market Fund. Currently, five of the
portfolios are active and one, U.S. Treasury Money Market Fund, has not
commenced operations. The investment objective of the Money Market Fund is to
provide investors with as high a level of current income as is consistent with
preservation of capital and liquidity. The Fund pursues its objective by
investing its assets in a broad range of high quality, short-term, money market
instruments which have remaining maturities not exceeding 397 days. The Fund is
required to maintain a dollar-weighted average portfolio maturity of 90 days or
less. The investment objective of the Short Term Government Income Fund is to
provide investors with as high a level of current income as is consistent with
limiting the risk of potential loss. Under normal conditions, the Short Term
Government Income Fund pursues this objective by investing primarily (at least
65% of total assets) in short term government income securities which results in
a dollar weighted average portfolio maturity of less than three years. The
investment objective of the Intermediate Term Government Income Fund is to
provide investors with a high level of current income. Total return, within
given quality parameters, is a secondary consideration of the Intermediate
Government Income Fund. Under normal conditions, the Intermediate Government
Income Fund pursues these objectives by investing primarily (at least 65% of
total assets) in intermediate term government income securities. The investment
objective of the Equity Fund is to provide investors with long-term capital
appreciation. The Equity Fund pursues this objective by investing primarily (at
least 65% of total assets) in common stocks of U.S. companies. The Equity Fund
may invest in large, well-established companies and smaller companies with
market capitalization exceeding $250 million. The investment objective of the
Mid Cap Growth Fund is to seek to achieve growth of capital by attempting to
outperform the S&P MidCap Index. The Fund will seek to achieve this objective by
investing primarily in common stocks of mid-sized companies (those with market
capitalization ranging from $200 million to $5.2 billion), including common
stocks listed on the S&P MidCap Index (collectively, "Mid Cap Common Stocks")
which the Fund's investment adviser believes are likely to outperform the S&P
MidCap Index. Prior to June 1, 1992 (commencement of operations for Short Term
Government Income Fund, Intermediate Term Government Income Fund and Equity
Fund), the Funds had no operations, other than organizational matters, except
for the sale to Furman Selz LLC ("Furman Selz"), of shares of beneficial
interest representing the initial capital of the Funds. In the event that any of
the initial shares of the Funds owned by Furman Selz are redeemed prior to the
complete amortization of organization costs, the redemption proceeds will be
reduced by a pro rata portion of any unamortized deferred organization expenses
in the same proportion as the number of initial shares being redeemed bears to
the number of initial shares outstanding at the time of redemption.
2. Significant Accounting Policies. The following is a summary of
significant accounting policies followed by the Funds:
A. Security Valuation. Securities listed on an exchange or on the
NASDAQ National Market System are valued on the basis of the last sale
prior to the time the valuation is made in the markets in which such
securities are primarily traded. If there has been no sale since the
immediately previous valuation, then the current bid price is used.
Securities for which the primary market is over-the-counter are valued on
the basis of
25
<PAGE> 30
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- November 30, 1996
the bid price at the close of business on each business day. Securities for
which market quotations are not readily available are valued at fair value
as determined in good faith by or at the direction of the Board of
Trustees. Bonds and other fixed-income securities are valued by using
market quotations and may be valued on the basis of prices provided by a
pricing service approved by the Board of Trustees. Money Market Fund values
investments at amortized cost, which approximates market value. Short term
securities which mature in 60 days or less are valued at amortized cost, if
their term to maturity at purchase was 60 days or less, or by amortizing
their value on the 61st day prior to maturity, if their term to maturity at
purchase exceeded 60 days.
B. Investment Transactions and Income. Transactions are recorded on
the trade date. Identified cost of investments sold is used to calculate
gain and loss on sales for both financial statement and Federal income tax
purposes. Interest income, including the amortization of discount or
premium, is recorded as earned. Dividends are recorded on the ex-dividend
date.
C. Determination of Net Asset Value and Calculation of
Expenses. Expenses directly attributable to a Fund are charged to that
Fund. Other expenses are allocated proportionately among the Funds within
the Trust in relation to the net assets of each Fund or on another
reasonable basis. In calculating net asset value per share of each class,
investment income, realized and unrealized gains and losses and expenses
other than class specific expenses are allocated daily to each class of
shares based upon the proportion of net assets attributed to each class at
the beginning of each day. Distribution expenses are solely borne by and
charged to the Consumer Service Class shares of each Fund based on net
assets of that class.
D. Federal Income Taxes. It is the Funds' policy to qualify as
"regulated investment companies" under Subchapter M of the Internal Revenue
Code of 1986, as amended. By so qualifying, the Funds will not be subject
to Federal income taxes to the extent that they distribute all taxable
income earned during their fiscal year. The Funds also intend to meet the
distribution requirements to avoid the payment of an excise tax.
Accordingly, no provision for income or excise tax is required.
E. Distributions to Shareholders. Money Market, Short Term
Government Income and Intermediate Term Government Income Funds declare
dividends of substantially all of their net investment income daily and pay
those dividends monthly. The Equity and The Mid Cap Growth Funds declare
and pay as a dividend substantially all of their net investment income each
month. Each Fund will distribute, at least annually, substantially all net
capital gains, if any, earned by such Fund. The Funds record all dividends
and distributions on the ex-dividend date.
The amount of dividends and distributions are determined in accordance
with Federal income tax regulations which may differ from generally
accepted accounting principles. These "book/tax" differences are either
considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within
the capital accounts based on their Federal tax basis treatment; temporary
differences do not require reclassification. Dividends and distributions
which exceed net investment income and net realized capital gains for
financial reporting purposes but not for tax purposes are reported as
dividends in excess of net investment income or distributions in excess of
net realized capital gains.
F. Organization Expenses. Costs incurred in connection with the
organization and initial registration of each Fund have been deferred and
are being amortized over a sixty month period beginning with each Fund's
commencement of operations.
G. Use of Estimates. Estimates and assumptions are required to be
made regarding assets, liabilities and changes in net assets resulting from
operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ from these amounts.
26
<PAGE> 31
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- November 30, 1996
3. Advisor. The Funds have entered into an Advisory Contract with
Trustmark National Bank ("Trustmark"). Under the Advisory Contract, Trustmark is
responsible for managing the investments of the Funds and for continually
reviewing, supervising and administering the Funds' investments. For the
advisory services it provides to the Funds, Trustmark is entitled to receive
monthly fees, based on average daily net assets, at up to the following annual
rates: Money Market Fund, 0.30%; Short Term Government Income Fund, 0.40%;
Intermediate Term Government Income Fund, 0.50%; Equity Fund, 0.60%; and Mid Cap
Growth Fund, 0.75%.
For the period ended November 30, 1996, Trustmark was entitled to and
waived advisory fees as listed below:
<TABLE>
<CAPTION>
TRUSTMARK TRUSTMARK
ENTITLED WAIVED
--------- ---------
<S> <C> <C>
Money Market Fund.......................................... $ 606,587 $ 404,391
Short Term Government Income Fund.......................... 218,825 --
Intermediate Term Government Income Fund................... 216,814 21,681
Equity Fund................................................ 500,802 83,466
Mid Cap Growth Fund........................................ 335,665 67,134
</TABLE>
4. Administrator. The Funds have entered into an Administrative Services
Contract with Furman Selz. Under the Administrative Services Contract, Furman
Selz provided management and administrative services necessary for the operation
of the Funds, furnished office space and facilities and paid the compensation of
the Trust's offices affiliated with Furman Selz. For these administrative
services, Furman Selz is paid a monthly fee at the annual rate of 0.15% of the
average daily net assets of each Fund.
For the period ended November 30, 1996, Furman Selz was entitled to and
waived administrative services fees as listed below:
<TABLE>
<CAPTION>
FURMAN SELZ FURMAN SELZ
ENTITLED WAIVED
----------- -----------
<S> <C> <C>
Money Market Fund.................................... $ 303,293 $ 181,975
Short Term Government Income Fund.................... 83,288 --
Intermediate Term Government Income Fund............. 65,044 --
Equity Fund.......................................... 125,201 --
Mid Cap Growth Fund.................................. 67,132 --
</TABLE>
Under a Distribution Plan adopted by the Funds under Rule 12b-1 of the 1940
Act, each Fund may, with respect to its Consumer Service Class, reimburse
Performance Funds Distributor, Inc. (the "Distributor"), a subsidiary of Furman
Selz, monthly (subject to a limit of 0.35% per annum of the average daily net
assets of each Fund) for costs and expenses of the Distributor in connection
with the distribution of Fund shares of the Consumer Service Class. No such fees
will be paid by the Institutional Class.
For the period ended November 30, 1996, the actual fee payable amounted to
0.25% per annum of the average daily net assets of each Fund's Consumer Service
Class.
5. Other Transactions with Affiliates. Pursuant to a Fund Accounting
Agreement between the Trust and Furman Selz, for calculating net asset values
and providing certain other accounting services for each Fund, Furman Selz is
paid an annual fee of $30,000 plus out of pocket expenses, from each Fund.
27
<PAGE> 32
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- November 30, 1996
The Funds retain Furman Selz as transfer agent. Furman Selz provides
personnel necessary to perform shareholder servicing functions. Pursuant to a
Shareholder Servicing Agreement Furman Selz receives a fee of $15.00 per
account, per year, and reimbursement for certain expenses.
For the period ended November 30, 1996, Furman Selz earned the following
fees for the performance of transfer agent and fund accounting services
(exclusive of out of pocket costs):
<TABLE>
<S> <C>
Money Market Fund................................................... $19,720
Short Term Government Income Fund................................... 20,209
Intermediate Term Government Income Fund............................ 29,575
Equity Fund......................................................... 31,635
Mid Cap Growth Fund................................................. 23,261
</TABLE>
Pursuant to a Custodian Agreement between the Trust and Trustmark National
Bank, Trustmark is the Custodian of the Funds' cash and securities. For these
services, Trustmark is paid a monthly fee at the annual rate of 0.04% of the
average daily net assets of each Fund, plus certain transaction charges. For the
period ended November 30, 1996, Trustmark earned the custody fees shown in the
statement of operations.
6. Repurchase Agreements. The Funds may enter into repurchase agreements
with government securities dealers recognized by the Federal Reserve Board, with
member Banks of the Federal Reserve System or with such other brokers or dealers
that meet the credit guidelines established by the Board of Trustees. It is the
Funds' policy to receive and maintain securities as collateral whose market
value, including accrued interest, will be at least 100% of the dollar amount
invested by that Fund in each agreement, and that Fund will make payment for
such securities only upon physical delivery or upon evidence of book entry
transfer to the account of the custodian. To the extent that any repurchase
transaction exceeds one business day, it is the Funds' policy that the value of
the collateral is marked to market on a daily basis to ensure the adequacy of
the collateral. If the seller defaults and the value of the collateral declines,
or if bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Fund may be delayed or limited.
7. Security Transactions. The cost of securities purchased and proceeds
from securities sold (excluding short-term securities) for the period ended
November 30, 1996 were as follows:
<TABLE>
<CAPTION>
PROCEEDS
COST OF FROM
SECURITIES SECURITIES
PURCHASED SOLD
----------- -----------
<S> <C> <C>
Short Term Government Income Fund................ $65,596,867 $56,923,255
Intermediate Term Government Income Fund......... 38,153,590 32,948,176
Equity Fund...................................... 24,766,611 260,358
Mid Cap Growth Fund.............................. 20,873,274 7,537,281
</TABLE>
28
<PAGE> 33
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- November 30, 1996
Unrealized appreciation at November 30, 1996, based on the cost of
securities for Federal income tax purposes, is as follows:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
----------- ---------- -----------
<S> <C> <C> <C>
Short Term Government Income Fund........... $ 1,283,134 $ 1,939 $ 1,281,195
Intermediate Term Government Income Fund.... 1,732,246 137,012 1,595,234
Equity Fund................................. 66,880,756 739,222 66,141,534
Mid Cap Growth Fund......................... 27,912,028 1,255,518 26,656,510
</TABLE>
8. Capital Share Transactions. The Trust is authorized to issue an
unlimited number of shares of beneficial interest with a par value of $0.001
each. Transactions in shares of the Funds were as follows:
<TABLE>
<CAPTION>
SHORT TERM GOVERNMENT INCOME
MONEY MARKET FUND FUND
------------------------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1996 1996 1996 1996
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS
Shares sold......................................... 381,724,245 866,500,419 1,682,586 3,990,252
Shares issued in reinvestment of distributions...... 25,114 28,067 224,265 442,352
-------------- ----------- ------------- -----------
381,749,359 866,528,486 1,906,851 4,432,604
Shares redeemed..................................... (387,031,796) (824,504,347) (797,605) (4,140,652)
-------------- ----------- ------------- -----------
Net increase (decrease) in shares................... (5,282,437) 42,024,139 1,109,246 291,952
============== =========== ============= ===========
CONSUMER SERVICE CLASS
Shares sold......................................... 33,696,972 37,943,309 2,278 104,816
Shares issued in reinvestment of distributions...... 652,098 456,141 3,343 4,272
-------------- ----------- ------------- -----------
34,349,070 38,399,450 5,621 109,088
Shares redeemed..................................... (24,019,339) (16,747,680) (33,077) (32,694)
-------------- ----------- ------------- -----------
Net increase (decrease) in shares................... 10,329,731 21,651,770 (27,456) 76,394
============== =========== ============= ===========
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE TERM
GOVERNMENT INCOME FUND EQUITY FUND
------------------------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1996 1996 1996 1996
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS
Shares sold......................................... 1,393,832 1,812,613 2,488,500 2,221,605
Shares issued in reinvestment of distributions...... 164,694 258,829 68,862 350,538
-------------- ----------- ------------- -----------
1,558,526 2,071,442 2,557,362 2,572,143
Shares redeemed..................................... (1,072,566) (4,845,988) (1,157,402) (1,409,960)
-------------- ----------- ------------- -----------
Net increase (decrease) in shares................... 485,960 (2,774,546) 1,399,960 1,162,183
============== =========== ============= ===========
CONSUMER SERVICE CLASS
Shares sold......................................... 5,424 69,994 222,977 282,644
Shares issued in reinvestment of distributions...... 4,636 14,284 5,057 21,044
-------------- ----------- ------------- -----------
10,060 84,278 228,034 303,688
Shares redeemed..................................... (44,573) (181,825) (64,212) (79,130)
-------------- ----------- ------------- -----------
Net increase (decrease) in shares................... (34,513) (97,547) 163,822 224,558
============== =========== ============= ===========
</TABLE>
29
<PAGE> 34
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- November 30, 1996
<TABLE>
<CAPTION>
MID CAP GROWTH FUND
---------------------------------
SIX MONTHS ENDED
NOVEMBER 30, YEAR ENDED
1996 MAY 31, 1996
---------------- ------------
<S> <C> <C>
INSTITUTIONAL CLASS
Shares sold....................................................................... 1,559,509 2,117,774
Shares issued in reinvestment of distributions.................................... 25,931 209,185
------------- -----------
1,585,440 2,326,959
Shares redeemed................................................................... (737,841) (909,532)
------------- -----------
Net increase (decrease) in shares................................................. 847,599 1,417,427
============= ===========
CONSUMER SERVICE CLASS
Shares sold....................................................................... 57,025 77,326
Shares issued in reinvestment of distributions.................................... 443 1,623
------------- -----------
57,468 78,949
Shares redeemed................................................................... (10,421) (1,579)
------------- -----------
Net increase (decrease) in shares................................................. 47,047 77,370
============= ===========
</TABLE>
9. Concentration of Credit Risk. In the pursuit of its minimum credit
risk policy, Money Market Fund maintains a diversified portfolio of money market
instruments, each of which matures in 397 days or less and is rated in the
highest rating category of at least two nationally recognized statistical rating
organizations, or, if not rated, is judged by the Board of Trustees to be of
comparable quality. The ability of the issuer of the instruments to meet its
obligations may be affected by economic developments in a specific industry or
region.
10. Subsequent Events. Furman Selz has consummated an agreement with
BISYS Group, Inc. ("BISYS") whereby services currently provided to the Company
by Furman Selz will be provided to the Company by BISYS and certain of its
affiliates under new Administrative Services, Transfer Agency and Fund
Accounting Agreements between the Company and BISYS.
30
<PAGE> 35
PERFORMANCE FUNDS TRUST
Financial Highlights
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
MONEY MARKET FUND
----------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS CONSUMER SERVICE CLASS
-------------------------------------------------- ----------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR YEAR YEAR ENDED YEAR YEAR YEAR
NOVEMBER 30, ENDED ENDED ENDED NOVEMBER 30, ENDED ENDED ENDED
1996 MAY 31, MAY 31, MAY 31, 1996 MAY 31, MAY 31, MAY 31,
(UNAUDITED) 1996 1995 1994* (UNAUDITED) 1996 1995 1994*
------------- -------- -------- -------- ------------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD.................. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- ----- -----
Income from Investment
Operations:
Net investment income...... 0.03 0.05 0.05 0.02 0.02 0.05 0.05 0.02
----- ----- ----- ----- ----- ----- ----- -----
Less Distributions;
Dividends from net
investment income........ (0.03) (0.05) (0.05) (0.02) (0.02) (0.05) (0.05) (0.02)
----- ----- ----- ----- ----- ----- ----- -----
Net Asset Value, End of
Period..................... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== ===== ===== =====
Total Return................ 2.63% 5.60% 5.27% 2.17% 2.51% 5.33% 5.02% 2.03%
Ratios/Supplemental Data:
Net Assets, End of Period
(in thousands)........... $ 361,691 $366,966 $324,942 $139,157 $35,546 $25,216 $3,564 $797
Ratios of Expenses to
Average Net Assets....... 0.25%** 0.24% 0.23% 0.15%** 0.54%** 0.49% 0.48% 0.40%**
Effect of
waivers/reimbursements on
expense ratios........... 0.29%** 0.30% 0.36% 0.53%** 0.33%** 0.30% 0.36% 0.53%**
Ratios of Net Investment
Income to
Average Net Assets....... 5.11%** 5.42% 5.27% 3.30%** 5.76%** 5.17% 5.02% 3.05%**
</TABLE>
<TABLE>
<CAPTION>
SHORT TERM GOVERNMENT INCOME FUND
----------------------------------------------------------------------------------------
INSTITUTIONAL CLASS CONSUMER SERVICE CLASS
------------------------------------------------------------ ------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR YEAR YEAR YEAR ENDED YEAR
NOVEMBER 30, ENDED ENDED ENDED ENDED NOVEMBER 30, ENDED
1996 MAY 31, MAY 31, MAY 31, MAY 31, 1996 MAY 31,
(UNAUDITED) 1996 1995 1994 1993* (UNAUDITED) 1996
------------ -------- -------- -------- -------- ------------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD.............................. $9.75 $9.84 $9.77 $10.10 $10.00 $9.75 $9.84
----- ----- ----- ------ ------ ----- -----
Income from Investment Operations:
Net investment income............... 0.27 0.54 0.53 0.40 0.44 0.25 0.51
Net gain (loss) on securities (both
realized and unrealized).......... 0.11 (0.09) 0.07 (0.25) 0.22 0.12 (0.09)
----- ----- ----- ------ ------ ----- -----
Total from Investment Operations.... 0.38 0.45 0.60 0.15 0.66 0.37 0.42
----- ----- ----- ------ ------ ----- -----
Less Distributions:
Dividends from net investment
income............................ (0.27) (0.54) (0.53) (0.40) (0.44) (0.26) (0.51)
Distributions from net realized
gains............................. -- -- -- (0.05) (0.12) -- --
Distributions in excess of net
realized gains.................... -- -- -- (0.03) (0.12) -- --
----- ----- ----- ------ ------ ----- -----
Total Distributions................. (0.27) (0.54) (0.53) (0.48) (0.56) (0.26) (0.51)
----- ----- ----- ------ ------ ----- -----
Net Asset Value, End of Period....... $9.86 $9.75 $9.84 $9.77 $10.10 $9.86 $9.75
===== ===== ===== ====== ====== ===== =====
Total Return (not reflecting sales
load)............................... 3.94% 4.65% 6.37% 1.49% 6.74% 3.81% 4.38%
Ratios/Supplemental Data:
Net Assets, End of Period
(in thousands).................... $118,758 $106,617 $104,730 $111,657 $138,822 $1,223 $1,477
Ratios of Expenses to Average Net
Assets............................ 0.67%** 0.71% 0.74% 0.69% 0.67% 0.85%** 0.95%
Effect of waivers/reimbursements on
expense ratios.................... --** 0.01% 0.03% 0.05% 0.05% --** 0.01%
Ratios of Net Investment Income to
Average Net Assets................ 5.50%** 5.48% 5.43% 4.00% 4.32% 4.71%** 5.23%
Portfolio Turnover Rate............. 53.96% 120.00% 267.65% 213.43% 216.52% 53.96% 120.00%
<CAPTION>
SHORT TERM GOVERNMENT INCOME FUND
---------------------------------
CONSUMER SERVICE CLASS
----------------------
YEAR YEAR YEAR
ENDED ENDED ENDED
MAY 31, MAY 31, MAY 31,
1995 1994 1993*
------- ------- -------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD.............................. $9.77 $10.10 $10.00
----- ------ ------
Income from Investment Operations:
Net investment income............... 0.50 0.37 0.43
Net gain (loss) on securities (both
realized and unrealized).......... 0.07 (0.25) 0.22
----- ------ ------
Total from Investment Operations.... 0.57 0.12 0.65
----- ------ ------
Less Distributions:
Dividends from net investment
income............................ (0.50) (0.37) (0.43)
Distributions from net realized
gains............................. -- (0.05) (0.12)
Distributions in excess of net
realized gains.................... -- (0.03) --
----- ------ ------
Total Distributions................. (0.50) (0.45) (0.55)
----- ------ ------
Net Asset Value, End of Period....... $9.84 $9.77 $10.10
===== ===== ======
Total Return (not reflecting sales
load)............................... 6.12% 1.23% 6.67%
Ratios/Supplemental Data:
Net Assets, End of Period
(in thousands).................... $739 $654 $1,125
Ratios of Expenses to Average Net
Assets............................ 0.99% 0.94% 0.75%
Effect of waivers/reimbursements on
expense ratios.................... 0.03% 0.05% 0.05%
Ratios of Net Investment Income to
Average Net Assets................ 5.18% 3.75% 4.24%
Portfolio Turnover Rate............. 267.65% 213.43% 216.52%
</TABLE>
* Fund commenced operations on June 1, 1992.
** Annualized.
See accompanying notes to financial statements.
31
<PAGE> 36
PERFORMANCE FUNDS TRUST
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
INTERMEDIATE TERM GOVERNMENT INCOME FUND
-----------------------------------------------------------------------------------------
INSTITUTIONAL CLASS CONSUMER SERVICE CLASS
------------------------------------------------------------ ------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR YEAR YEAR YEAR ENDED YEAR
NOVEMBER 30, ENDED ENDED ENDED ENDED NOVEMBER 30, ENDED
1996 MAY 31, MAY 31, MAY 31, MAY 31, 1996 MAY 31,
(UNAUDITED) 1996 1995 1994 1993* (UNAUDITED) 1996
------------ -------- -------- -------- -------- ------------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD.......................... $9.82 $10.11 $9.87 $10.56 $10.00 $9.82 $10.11
----- ------ ----- ------ ------ ----- ------
Income from Investment
Operations:
Net investment income........... 0.29 0.56 0.62 0.58 0.62 0.27 0.54
Net gain (loss) on securities
(both realized and
unrealized)................... 0.35 (0.29) 0.25 (0.52) 0.61 0.35 (0.29)
----- ------ ----- ------ ------ ----- ------
Total from Investment
Operations.................... 0.64 0.27 0.87 0.06 1.23 0.62 0.25
----- ------ ----- ------ ------ ----- ------
Less Distributions:
Dividends from net investment
income........................ (0.29) (0.56) (0.62) (0.58) (0.62) (0.27) (0.54)
Distributions from net realized
gains......................... -- -- -- (0.11) (0.05) -- --
Distributions in excess of net
realized gains................ -- -- (0.01) (0.06) -- -- --
----- ------ ----- ------ ------ ----- ------
Total Distributions............. (0.29) (0.56) (0.63) (0.75) (0.67) (0.27) (0.54)
----- ------ ----- ------ ------ ----- ------
Net Asset Value, End of Period... $10.17 $9.82 $10.11 $9.87 $10.56 $10.17 $9.82
====== ===== ====== ===== ====== ====== =====
Total Return (not reflecting
sales load)..................... 6.59% 2.66% 9.31% 0.34% 12.66% 6.46% 2.40%
Ratios/Supplemental Data:
Net Assets, End of Period
(in thousands)................ $85,433 $77,677 $108,052 $158,420 $150,115 $1,901 2,174
Ratios of Expenses to Average
Net Assets.................... 0.80%** 0.81% 0.71% 0.65% 0.67% 1.03%** 1.06%
Effect of waivers/reimbursements
on
expense ratios................ 0.05%** 0.05% 0.11% 0.15% 0.15% 0.05%** 0.05%
Ratios of Net Investment Income
to
Average Net Assets............ 5.78** 5.55% 6.44% 5.50% 6.00% 5.36%** 5.30%
Portfolio Turnover Rate......... 40.39% 183.00% 339.95% 102.46% 54.43% 40.39% 183.00%
<CAPTION>
INTERMEDIATE TERM GOVERNMENT INCOME FUND
----------------------------------------
CONSUMER SERVICE CLASS
--------------------------------
YEAR YEAR YEAR
ENDED ENDED ENDED
MAY 31, MAY 31, MAY 31,
1995 1994 1993*
-------- -------- --------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD.......................... $9.87 $10.56 $10.00
------ ----- ------
Income from Investment
Operations:
Net investment income........... 0.60 0.55 0.62
Net gain (loss) on securities
(both realized and
unrealized)................... 0.25 (0.52) 0.61
------ ----- ------
Total from Investment
Operations.................... 0.85 0.03 1.23
------ ----- ------
Less Distributions:
Dividends from net investment
income........................ (0.60) (0.55) (0.62)
Distributions from net realized
gains......................... -- (0.11) (0.05)
Distributions in excess of net
realized gains................ (0.01) (0.06) --
------ ----- ------
Total Distributions............. (0.61) (0.72) (0.67)
------ ----- ------
Net Asset Value, End of Period... $10.11 $9.87 $10.56
====== ===== ======
Total Return (not reflecting
sales load)..................... 9.06% 0.08% 12.58%
Ratios/Supplemental Data:
Net Assets, End of Period
(in thousands)................ $3,225 $3,384 $1,952
Ratios of Expenses to Average
Net Assets.................... 0.96% 0.90% 0.78%
Effect of waivers/reimbursements
on
expense ratios................ 0.11% 0.15% 0.15%
Ratios of Net Investment Income
to
Average Net Assets............ 6.19% 5.25% 5.89%
Portfolio Turnover Rate......... 339.95% 102.46% 54.43%
</TABLE>
* Fund commenced operations on June 1, 1992.
** Annualized.
See accompanying notes to financial statements.
32
<PAGE> 37
PERFORMANCE FUNDS TRUST
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
EQUITY FUND
----------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS CONSUMER SERVICE CLASS
---------------------------------------------------------- --------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR YEAR YEAR YEAR ENDED YEAR YEAR YEAR YEAR
NOVEMBER 30, ENDED ENDED ENDED ENDED NOVEMBER 30, ENDED ENDED ENDED ENDED
1996 MAY 31, MAY 31, MAY 31, MAY 31, 1996 MAY 31, MAY 31, MAY 31, MAY 31,
(UNAUDITED) 1996 1995 1994 1993* (UNAUDITED) 1996 1995 1994 1993*
------------ -------- -------- ------- ------- ------------ ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET
VALUE,
BEGINNING
OF
PERIOD... $15.29 $12.51 $11.33 $11.21 $10.00 $15.29 $12.51 $11.33 $11.21 $10.00
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income
from
Investment
Operations:
Net
investment
income... 0.12 0.23 0.25 0.23 0.22 0.11 0.19 0.22 0.20 0.21
Net gain
(loss)
on
securities
(both
realized
and
unrealized)... 2.27 3.29 1.42 0.12 1.21 2.26 3.29 1.42 0.12 1.21
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total
from
Investment
Operations... 2.39 3.52 1.67 0.35 1.43 2.37 3.48 1.64 0.32 1.42
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Less
Distributions:
Dividends
from
net
investment
income... (0.12) (0.23) (0.24) (0.23) (0.22) (0.10) (0.19) (0.21) (0.20) (0.21)
Distributions
from net
realized
gains... -- (0.51) (0.25) -- -- -- (0.51) (0.25) -- --
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total
Distributions... (0.12) (0.74) (0.49) (0.23) (0.22) (0.10) (0.70) (0.46) (0.20) (0.21)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net Asset
Value,
End of
Period... $17.56 $15.29 $12.51 $11.33 $11.21 $17.56 $15.29 $12.51 $11.33 $11.21
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total
Return
(not
reflecting
sales
load)... 15.73% 28.73% 15.35% 3.10% 14.48% 15.59% 28.42% 15.10% 2.85% 14.37%
Ratios/Supplementary
Data:
Net
Assets,
End of
Period
(in
thousands)... $185,457 $140,144 $100,110 $93,983 $87,755 $ 14,166 $ 9,831 $5,234 $5,287 $3,348
Ratios
of
Expenses
to
Average
Net
Assets... 0.80%** 0.81% 0.79% 0.83% 0.83% 1.04%** 1.06% 1.04% 1.08% 0.94%
Effect
of
waivers/
reimbursements
on
expense
ratios... 0.10%** 0.10% 0.13% 0.15% 0.20% 0.10%** 0.10% 0.13% 0.15% 0.20%
Ratios
of Net
Investment
Income
to
Average
Net
Assets... 1.57%** 1.65% 2.15% 1.99% 2.20% 1.31%** 1.40% 1.90% 1.74% 2.09%
Portfolio
Turnover
Rate... 0.17% 6.00% 58.08% 27.11% 2.61% 0.17% 6.00% 58.08% 27.11% 2.61%
Average
Commission
Rate
(a)... $ 0.0899 $ 0.1067 $ -- $ -- $ -- $ 0.0899 $0.1067 $ -- $ -- $ --
</TABLE>
* Fund commenced operations on June 1, 1992.
** Annualized.
(a) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged. This amount may vary from period to period
and fund to fund depending on the mix of trades executed in various markets
where trading practices and commission rate structures may differ.
See accompanying notes to financial statements.
33
<PAGE> 38
PERFORMANCE FUNDS TRUST
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
MID CAP GROWTH FUND
-----------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS CONSUMER SERVICE CLASS
--------------------------------------------- ----------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR YEAR YEAR ENDED YEAR YEAR YEAR
NOVEMBER 30, ENDED ENDED ENDED NOVEMBER 30, ENDED ENDED ENDED
1996 MAY 31, MAY 31, MAY 31, 1996 MAY 31, MAY 31, MAY 31,
(UNAUDITED) 1996 1995 1994* (UNAUDITED) 1996 1995 1994*
------------ ------- ------- ------- ------------ ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD......................... $14.05 $11.11 $ 9.60 $10.00 $14.05 $11.11 $ 9.60 $10.00
------ ------ ------ ------ ------ ------ ------ ------
Income from Investment
Operations:
Net investment income.......... 0.06 0.13 0.13 0.03 0.06 0.10 0.11 0.03
Net gain (loss) on securities
(both realized and
unrealized).................. 1.28 3.44 1.51 (0.40) 1.28 3.44 1.51 (0.40)
------ ------ ------ ------ ------ ------ ------ ------
Total from Investment
Operations................. 1.34 3.57 1.64 (0.37) 1.34 3.54 1.62 (0.37)
------ ------ ------ ------ ------ ------ ------ ------
Less Distributions:
Dividends from net investment
income....................... (0.06) (0.13) (0.13) (0.03) (0.06) (0.10) (0.11) (0.03)
Distributions from net realized
gains........................ -- (0.50) -- -- -- (0.50) -- --
------ ------ ------ ------ ------ ------ ------ ------
Total Distributions............ (0.06) (0.63) (0.13) (0.03) (0.06) (0.60) (0.11) (0.03)
------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Period... $15.33 $14.05 $11.11 $ 9.60 $15.33 $14.05 $11.11 $9.60
====== ====== ====== ====== ====== ====== ====== =====
Total Return (not reflecting
sales load).................... 9.59% 33.06% 17.31% (3.66)% 9.46% 32.76% 17.06% (3.70)%
Ratios/Supplementary Data:
Net Assets, End of Period (in
thousands)................... $101,071 $80,704 $48,068 $33,779 $2,291 $ 1,437 $ 277 $ 35
Ratios of Expenses to Average
Net Assets................... 0.91%** 0.98% 0.96% 0.93%** 1.21%** 1.23% 1.21% ** 1.18% **
Effect of
waivers/reimbursements on
expense ratios............... 0.15%** 0.16% 0.26% 1.00%** 0.16%** 0.16% 0.26% 100% **
Ratios of Net Investment Income
to Average Net Assets........ 0.90%** 1.06% 1.37% 1.60%** 0.70%** 0.79% 1.12% 1.35% **
Portfolio Turnover Rate........ 8.94% 28.00% 20.39% 5.88% 8.94% 28.00% 20.39% 5.88%
Average Commission Rate (a).... $ 0.0900 $0.1070 $ -- $ -- $0.0900 $0.1070 $ -- $ --
</TABLE>
* Fund commenced operations on February 24, 1994.
** Annualized.
(a) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged. This amount may vary from period to period
and fund to fund depending on the mix of trades executed in various markets
where trading practices and commission rate structures may differ.
See accompanying notes to financial statements.
34
<PAGE> 39
[This page intentionally left blank]
<PAGE> 40
(PERFORMANCE FUNDS LOGO)
INVESTMENT ADVISOR
- ------------------
Trustmark National Bank
248 East Capitol Street
Jackson, Mississippi 39201
ADMINISTRATOR AND
TRANSFER AGENT
- --------------
Furman Selz LLC
230 Park Avenue
New York, New York 10169
DISTRIBUTOR
- -----------
Performance Funds Distributor, Inc.
230 Park Avenue
New York, New York 10169
CUSTODIAN
- ---------
Trustmark National Bank
248 East Capitol Street
Jackson, Mississippi 39201
COUNSEL
- -------
Baker & McKenzie
805 Third Avenue
New York, New York 10022
INDEPENDENT ACCOUNTANTS
- -----------------------
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
THIS REPORT IS FOR THE INFORMATION OF THE SHAREHOLDERS OF THE PERFORMANCE
FAMILY OF MUTUAL FUNDS. ITS USE IN CONNECTION WITH ANY OFFERING OF THE
TRUST'S SHARES IS AUTHORIZED ONLY IN CASE OF A CONCURRENT OR PRIOR DELIVERY
OF THE TRUST'S CURRENT PROSPECTUS.
(PERFORMANCE FUNDS LOGO)
PERFORMANCE FUNDS TRUST
A FAMILY OF MUTUAL FUNDS
SEMI-ANNUAL REPORT
NOVEMBER 30, 1996
INVESTMENT ADVISOR
(TRUSTMARK LOGO)
SHARES OF THE TRUST ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, TRUSTMARK NATIONAL BANK, AND ARE NOT INSURED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER
AGENCY. SHARES OF THE TRUST INVOLVE INVESTMENT RISK, INCLUDING POSSIBLE LOSS
OF PRINCIPAL. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
PF1/97
