<PAGE> 1
[PERFORMANCE FUNDS LOGO]
July 1, 1998
Dear Shareholder:
We're pleased to present you the Performance Funds' sixth annual report for
the fiscal year ended May 31, 1998. The Performance Funds comprise of The Money
Market Fund, The Short Term Government Income Fund, The Intermediate Term
Government Income Fund, The Large Cap Equity Fund, The Mid Cap Growth Fund, and
our newest fund, The Small Cap Fund. All funds are managed by Trustmark National
Bank.
ECONOMIC REVIEW
The Funds' fiscal year of May 31, 1998 ended with the U.S. economy in its
eighth consecutive year of expansion, the longest on record. The unique times we
are experiencing can be attributable to a number of factors: budget accord,
falling deficit, reduced treasury supply, strong dollar, increased productivity,
low inflation/ unemployment.
While we remain optimistic that the economy will continue to expand, we
recognize its susceptibility to global events. Prior to last October's financial
crisis in Asia, the pace of the U.S. economy was accelerating and a Fed
tightening appeared imminent. Fed Chairman Greenspan's testimony before the
Joint Economic Committee following the global equity meltdown came as a welcomed
salve to a nervous financial market. The Fed's dilemma is twofold: 1) maintain
orderly domestic markets, while 2) controlling domestic inflation. The
"Greenspan" Fed seems to have done a good job. Until the uncertainties and risks
associated with the Asian economies become more evident, there is no compelling
reason to change current monetary policy. Why raise rates and risk putting the
U.S. economy into a recession should the Asian problems prove more severe than
originally perceived, or lower rates and potentially reignite inflation? With
current inflation running 1.7%, the Fed is even more restrictive now than when
it last raised rates in March of 1997, when inflation was at 2.8%
Just as the Fed remains diligent in balancing the risk/reward of the
domestic market amid global uncertainties, we too remain diligent in the task of
enhancing shareholder value. In our current effort to provide the best possible
shareholder service, we encourage you to view your current investment strategy
with a long-term perspective. Regardless of market conditions, the Performance
Funds' investment discipline remains the same with careful security selection,
diversification, and constant supervision.
On the following pages you will find a detailed discussion of each funds'
performance. As always, we appreciate your support, welcome your questions, and
look forward to serving you in the years to come.
Sincerely,
/s/ John J. Pileggi
John J. Pileggi
Chairman of the Board
- ------------
Trustmark Bank provides investment advisory services and other services to the
Fund and receives a fee for those services. This material is authorized for
distribution only when preceded or accompanied by a prospectus. The Funds are
distributed by Performance Funds Distributor, Inc.
Mutual funds are NOT INSURED BY THE FDIC. There is no bank guarantee. Mutual
funds may lose value. The views expressed in this Shareholder Letter reflect
those of the Chairman of the Board through the end of the period covered by the
report, as stated on the cover. The Chairman of the Board's views are subject to
change based on market and other conditions.
<PAGE> 2
PORTFOLIO MANAGER'S REPORT
PERFORMANCE MONEY MARKET FUND
The Performance Money Market Fund provided investors with a return of 5.43%
for the Institutional Class and 5.18% for the Consumer Service Class for the
year ended May 31, 1998. During this period, the 7-day yield of the Fund
remained in a narrow band with a low yield of 5.20% on May 11, 1998 and a high
yield of 5.46% on January 5, 1998 (Institutional Class). As of May 31, 1998 the
7-day yield for the Fund was 5.24%. One of the main reasons for the small change
in short rates during this period was the continued inactivity of the Federal
Reserve. Since the sector of the yield curve that the Fund invests in is one
year and under and greatly influenced by changes in the Fed Funds target, an
accommodating Federal Reserve led to stable short term rates.
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 a result of the high quality of the Fund's holdings per the
respective ratings from Standard and Poor's (A1 or higher) and Moody's (P1 or
higher). An investment in the Fund is neither insured nor guaranteed by the U.S.
Government. The Fund's objective is to maintain a stable NAV of $1.00 per share.
This has been accomplished since the Fund's inception, but there can be no
guarantee that it will be in the future.
Signed,
/s/ Kelly J. Collins
Kelly J. Collins
Trust Investment Officer
Trustmark National Bank
- ------------
All performance figures cited here represent past performance of the Money
Market Fund and do not guarantee future results.
<PAGE> 3
PERFORMANCE SHORT TERM GOVERNMENT INCOME FUND
Institutional Class shareholders of the Short Term Government Income Fund
received a return of 6.73% (Consumer Service Class 6.48%) for the current fiscal
year. Ending share value was $9.85, up $.10 per share for the year. Average
share price was $9.83 with a high of $9.92, and a low of $9.75. We believe this
low level of price fluctuation, combined with a highly competitive return, has
made this fund an attractive alternative to money markets and CD's.
The short bond market has been whipsawed over the past year by the opposing
forces of a strong domestic economy and the economic woes filtering out of Asia.
With our labor force working at near full capacity, our economy continues to
expand at a rate above that which our Federal Reserve Board deems a sustainable
level. The case of an interest rate hike remains prevalent, and markets have
reacted with intermittent yield spikes. However, Asian market turmoil has had
its effect on our economy, slowing manufacturing and trade, and it is quite
possible that we have yet to see the full effect. The possible magnitude of a
global economy induced slowdown, has sent investors scampering for bonds,
causing a generally downward trend in rates, and a flat yield curve.
Whether global deflation or domestic inflationary pressure prevails, we
continue to see value in the short end of the yield curve, as 10-year Treasuries
out yield 2-year Treasuries by only a few basis points. We believe Asian
investors will continue to pursue our bond market as a haven from their own
downward spiraling currencies. Our domestic interest rates and quelled levels of
inflation also offer high real return (return in excess of inflation) relative
to other real returns across the globe. In addition, a high priced stock market
and disappointing corporate earnings may incent investors to look for ways to
dilute risk in their portfolios with short term bonds.
For now, our investment strategy remains unchanged. We will continue to
pursue higher yielding securities in the U. S. Government market while reducing
the price volatility of the portfolio. We will stress quality, keep a solid base
of U. S. Treasury securities, continually search for short agency mortgage
securities which meet stringent criteria, and avoid corporate issues until we
see better opportunity.
Signed,
/s/ Jonathan Rogers
Jonathan Rogers, CFA
Vice President
Trustmark National Bank
- ------------
Past performance does not guarantee future results. Investment return and net
asset value will fluctuate so that investors shares when redeemed may be worth
more or less than the original cost.
<PAGE> 4
PERFORMANCE INTERMEDIATE TERM GOVERNMENT INCOME FUND
For the fiscal year ended May 31, 1998 the Performance Intermediate Term
Government Income Fund returned 10.42% for the Institutional Class shareholders
and 10.15% for the Consumer Service Class shareholders. Share price, as measured
by net asset value, increased from $9.93 on May 31, 1997 to $10.34 on May 31,
1998. The Fund's objective is to provide a higher level of current income with
total return, which consists of income and capital preservation, also an
important consideration. The Fund primarily invests in U.S. government
securities and investment grade corporate paper. While there is no maximum
maturity for an individual issue the Fund itself will normally have an average
maturity between three to ten years.
For the fiscal year the bond market was the beneficiary of a tumultuous
Asian market, a bipartisan budget accord, a falling deficit, reduced treasury
supply, a strong dollar, increased productivity, and low inflation. Bond yields,
as measured by the 30-year Treasury bond, fell from 6.91% to 5.80% while
short-term yields, as measured by the 2-year Treasury note, fell from 6.20% to
5.52% while Fed Funds remained unchanged at 5.50%. The markets' concern was
evidenced by this spread compression between the 2-year and 30 year Treasury
from 71BP to 28BP for the period. The Fed has left rates alone as continued
domestic job growth and falling unemployment have been offset by increased
productivity, falling commodity prices and a strong dollar. Previously, the
longest a "Greenspan" Fed had waited to tighten a second time in a cycle was six
weeks. Through May it has now been 60 weeks!
The Fund continues to stress quality and yield with increased emphasis on
spread products such as callable U. S. Agencies and investment grade corporate
paper. In fact, the Fund's exposure in corporate paper was increased from 20% to
30% this past year as yields continued their descent and domestic investors
sought yield and foreign investors sought quality.
The Fund continues to be managed recognizing that market and economic
conditions are constantly changing, which can and does affect the Fund's
composition. Please be mindful that while volatility can be extreme at times, it
does afford opportunities to acquire securities at more attractive valuations.
We appreciate your participation in The Performance Intermediate Term
Government Fund, and hope this report gives you insight to our investment
discipline, philosophy, and strategy at this time.
Signed,
/s/ Robert H. Spaulding
Robert H. Spaulding
Vice President & Trust Investment
Officer
- ------------
All performance figures cited here represent past performance of the
Intermediate Term Government Income Fund and do not guarantee future results.
Past performance does not guarantee future results. Investment return and net
asset value will fluctuate so that investors shares when redeemed may be worth
more or less than the original cost.
<PAGE> 5
PERFORMANCE LARGE CAP EQUITY FUND
For the fiscal year ended May 31, 1998, the Performance Large Cap Equity
Fund is able to report another good year, returning 32.53% to its Institutional
Class shareholders and 32.2% to its Consumer Service Class shareholders. For
this same period the S&P returned 28.61%.
Again, the health care sector performed very well with Pfizer up 105%,
Warner Lambert (1.37%) up 91% and Schering Plough up 86%. The retail sector saw
good performance with the Gap (0.71%) up 137%, WalMart up 85% and Walgreen
(1.12%) up 51%, along with the financial sector: Merrill Lynch (0.73%) up 70%
and Travelers (1.07%) up 68%.
We saw much volatility during this period, experiencing twenty-one new
highs in the months of February and March alone. We were still in a period of
relatively low inflation and low interest rates. We have begun to see more
earnings estimates questioned, especially from companies who are more involved
in the Asian markets. Thus, we will probably continue to see more of the
volatility to which we have become accustomed.
Our efforts and resources continue to be directed at security selection and
not at market timing.
TEN LARGEST HOLDINGS*
<TABLE>
<C> <S> <C> <C> <C> <C> <C> <C> <C>
1. General Electric Corp. 3.66% 4. Exxon Corp. 2.39% 8. IBM Corp. 1.72%
2. Microsoft Corp. 2.76% 5. Schering Plough Corp. 2.33% 9. Royal Dutch-ADR 1.68%
3. Coca Cola Co. 2.71% 6. Merck & Co. 1.87% 10. Pfizer, Inc. 1.67%
7. Wal-Mart Stores, Inc. 1.76%
</TABLE>
Signed,
/s/ Charles H. Windham, Jr.
Charles H. Windham, Jr.
Vice President
Trustmark National Bank
- ------------
* Percentages based upon Total Investments as of May 31, 1998.
The Fund's Performance is compared to the Standard & Poor's 500 Stock Index,
which represents the U.S. stock market as a whole. 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.
Past performance does not guarantee future results. Investment return and net
asset value will fluctuate so that investors shares when redeemed may be worth
more or less than the original cost.
<PAGE> 6
PERFORMANCE MID CAP GROWTH FUND
For the twelve months ending May 31, 1998 the Mid Cap Growth Fund returned
27.15% (Institutional Class) and 26.82% (Consumer Service Class). This compares
to the S&P MidCap 400 Index which returned 28.29% during the same period.
Strong performance from the Health Care and Financial sectors significantly
impacted the Fund's return. Among the Health Care names, both Watson
Pharmaceutical and Mylan Labs (1.12%) provided returns of more than 100%. Paine
Webber, in the Financial sector, was up 80% while Bear Stearns and A.G. Edwards
increased 60% in value. A position in Callaway Golf, down 35% for the period,
penalized results. Other disappointing performers were Olsten Corp. down 35% and
Vishay Intertech down 19%.
The Fund focuses on those companies in the MidCap Index we believe to have
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
May 31, 1998.
TEN LARGEST HOLDINGS*
<TABLE>
<C> <S> <C> <C> <C> <C> <C> <C> <C>
1. Dollar General Corp. 2.33% 4. Coca Cola Enterprises, Inc. 1.86% 8. Sundstrand Corp. 1.65%
2. Paine Webber Group, Inc. 1.96% 5. Bear Stearns Cos, Inc. 1.86% 9. Comdisco, Inc. 1.60%
3. Watson Pharmaceutical, Inc. 1.87% 6. Edwards (A.G.), Inc. 1.81% 10. Jones Apparel Group, Inc. 1.56%
7. First Health Group Corp. 1.67%
</TABLE>
Signed,
/s/ Douglas H. Ralston
Douglas H. Ralston, CFA
Vice President
Trustmark National Bank
- ------------
* Percentages based upon Total Investments as of May 31, 1998.
The Fund's performance is compared to the Standard & Poor's Midcap 400 Stock
Index, which is a capitalization-weighted index that measures the performance of
the mid-range sector of U.S. stock market where the median market capitalization
is approximately $700 million. 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.
Past performance does not guarantee future results. Investment return and net
asset value will fluctuate so that investors shares when redeemed may be worth
more or less than the original cost.
<PAGE> 7
PERFORMANCE SMALL CAP FUND
The Performance Small Cap Fund began operations on October 1, 1997. Total
return for the fund from inception through fiscal year end, May 31, 1998 was
- -0.80% (Institutional Class) and -0.90% (Consumer Service Class). During this
same period the S&P 600 Small Cap Index returned 2.51%.
The Fund's underperformance is mainly attributable to two factors: First,
the fourth quarter of 1997 was a difficult period in the small capitalization
sector. The S&P 600 traded between 190 and 175 during this period and the timing
of the Fund's cash flows were a detriment to performance. Second, concerns over
Asia and market liquidity have fallen in large part on small capitalization
issues with technology stocks being particularly hard hit. As a result,
companies like Kent Electronics and Novellus Systems, Inc. hurt the performance
of the Fund.
Despite these short term concerns, there were some positive factors in the
Fund. The Financial sector performed very well with companies such as Protective
Life (1.11%) up 44% and American Bankers Insurance (0.5%) up 65%. In addition,
Health Care turned in strong performance with Lincare Holdings up 49% for the
period and Patterson Dental (1.25%) up 20%.
TEN LARGEST HOLDINGS*
<TABLE>
<C> <S> <C> <C> <C> <C> <C> <C> <C>
1. Integrated Health Services 1.95% 4. Ross Stores, Inc. 1.83% 8. Enhance Financial Services Corp. 1.60%
2. Orion Capital Corp. 1.91% 5. Sola International, Inc. 1.83% 9. Fremont General Corp. 1.58%
3. Zebra Technologies, Class A 1.89% 6. Amresco, Inc. 1.77% 10. Manitowoc, Inc. 1.58%
7. Lincare Holdings, Inc. 1.73%
</TABLE>
Signed,
/s/ Douglas P. Muenzenmay
Doug P. Muenzenmay
Investment Officer
Trustmark National Bank
- ------------
* Percentages based upon Total Investments as of May 31, 1998.
The Fund's Performance is compared to the Standard & Poor's 600 Small Cap Index,
which is a capitalization-weighted index that measures the performance of
selected U.S. stocks with a small market capitalization. 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.
Past performance does not guarantee future results. Investment return and net
asset value will fluctuate so that investors shares when redeemed may be worth
more or less than the original cost.
Small cap funds typically carry addition risk since smaller companies may have a
higher risk of failure.
<PAGE> 8
PERFORMANCE FUNDS TRUST
MONEY MARKET FUND
Schedule of Portfolio Investments
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR S&P/MOODY'S
PRINCIPAL RATINGS MARKET
AMOUNT SECURITY DESCRIPTION (UNAUDITED) VALUE
--------- -------------------- ----------- ------
<C> <S> <C> <C>
COMMERCIAL PAPER -- 71.2%
AUTOMOTIVE -- 12.9%
$ 4,000,000 Ford Motor Credit Corporation, 5.50%, 6/8/98................ P1/A1 $ 3,995,722
5,000,000 Ford Motor Credit Corporation, 5.50%, 7/6/98................ P1/A1 4,973,264
6,000,000 Ford Motor Credit Corporation, 5.50%, 7/10/98............... P1/A1 5,964,250
10,000,000 GMAC, 5.52%, 6/17/98........................................ P1/A1 9,975,467
10,000,000 GMAC, 5.51%, 7/7/98......................................... P1/A1 9,944,900
3,500,000 Toyota Motor Credit Corporation, 5.50%, 6/2/98.............. P1/A1+ 3,499,465
2,500,000 Toyota Motor Credit Corporation, 5.51%, 6/18/98............. P1/A1+ 2,493,495
7,000,000 Toyota Motor Credit Corporation, 5.51%, 6/22/98............. P1/A1+ 6,977,501
7,000,000 Toyota Motor Credit Corporation, 5.50%, 7/7/98.............. P1/A1+ 6,961,500
------------
54,785,564
------------
BANKING -- 5.4%
5,000,000 BankAmerica Corporation, 5.48%, 6/17/98..................... P1/A1 4,987,822
8,000,000 Norwest Bank Corporation, 5.50%, 7/1/98..................... P1/A1+ 7,963,334
5,000,000 SunTrust Bank, Inc., 5.50%, 6/3/98.......................... P1/A1 4,998,472
5,000,000 SunTrust Bank, Inc., 5.50%, 6/10/98......................... P1/A1 4,993,125
------------
22,942,753
------------
CHEMICALS -- 4.7%
12,000,000 du Pont (E.I.) De Nemours & Company, 5.48%, 6/19/98......... P1/A1+ 11,967,120
8,000,000 du Pont (E.I.) De Nemours & Company, 5.49%, 7/8/98.......... P1/A1+ 7,954,860
------------
19,921,980
------------
CONSUMER PRODUCTS -- 1.2%
5,000,000 Clorox Company, 5.50%, 6/29/98.............................. P1/A1 4,978,611
------------
DIVERSIFIED -- 3.5%
5,000,000 General Electric Company, 5.50%, 6/4/98..................... P1/A1+ 4,997,709
5,000,000 General Electric Company, 5.52%, 6/26/98.................... P1/A1+ 4,980,833
5,000,000 General Electric Company, 5.52%, 7/17/98.................... P1/A1+ 4,964,733
------------
14,943,275
------------
FINANCE -- BROKERS -- 7.1%
10,000,000 Goldman Sachs Group L.P., 5.52%, 7/16/98.................... P1/A1+ 9,931,000
6,000,000 Merrill Lynch & Company, 5.53%, 6/15/98..................... P1/A1+ 5,987,097
8,000,000 Merrill Lynch & Company, 5.52%, 7/8/98...................... P1/A1+ 7,954,613
6,000,000 Merrill Lynch & Company, 5.53%, 7/14/98..................... P1/A1+ 5,960,368
------------
29,833,078
------------
FINANCIAL SERVICES -- 7.0%
7,000,000 Associates Credit Corporation, 5.51%, 7/9/98................ P1/A1+ 6,959,287
8,000,000 Associates Credit Corporation, 5.51%, 7/15/98............... P1/A1+ 7,946,124
5,000,000 Commercial Credit Corporation, 5.49%, 6/1/98................ P1/A1 5,000,000
5,000,000 Commercial Credit Corporation, 5.50%, 6/16/98............... P1/A1 4,988,542
5,000,000 Commercial Credit Corporation, 5.50%, 6/25/98............... P1/A1 4,981,667
------------
29,875,620
------------
</TABLE>
See notes to financial statements.
1
<PAGE> 9
PERFORMANCE FUNDS TRUST
MONEY MARKET FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR S&P/MOODY'S
PRINCIPAL RATINGS MARKET
AMOUNT SECURITY DESCRIPTION (UNAUDITED) VALUE
--------- -------------------- ----------- ------
<C> <S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
FOOD -- 4.3%
$10,000,000 Hershey Foods Corporation, 5.48%, 6/23/98................... P1/A1 $ 9,966,511
8,200,000 Kellogg Company, 5.49%, 6/18/98............................. P1/A1+ 8,178,742
------------
18,145,253
------------
GROCERY STORES -- 2.4%
10,000,000 Albertson's, Inc., 5.50%, 6/5/98............................ P1/A1 9,993,889
------------
HEALTH CARE -- 4.0%
10,000,000 Abbott Laboratories, 5.50%, 6/17/98......................... P1/A1+ 9,975,555
7,000,000 Abbott Laboratories, 5.50%, 6/26/98......................... P1/A1+ 6,973,264
------------
16,948,819
------------
OIL/GAS EXPLORATION -- 4.6%
6,000,000 Texaco, Inc., 5.51%, 6/5/98................................. P1/A1 5,996,327
10,000,000 Texaco, Inc., 5.50%, 7/6/98................................. P1/A1 9,946,527
3,500,000 Texaco, Inc., 5.50%, 7/14/98................................ P1/A1 3,477,007
------------
19,419,861
------------
PAPER PRODUCTS -- 4.7%
5,000,000 American Greetings Corporation, 5.49%, 6/1/98............... P1/A1 5,000,000
3,000,000 American Greetings Corporation, 5.50%, 6/4/98............... P1/A1 2,998,625
2,000,000 American Greetings Corporation, 5.50%, 6/9/98............... P1/A1 1,997,556
10,000,000 American Greetings Corporation, 5.50%, 6/10/98.............. P1/A1 9,986,250
------------
19,982,431
------------
PUBLISHING & PRINTING -- 2.4%
10,000,000 Gannett Company, Inc., 5.48%, 6/24/98....................... P1/A1+ 9,964,989
------------
RETAIL -- 1.8%
7,500,000 Toys "R" Us, 5.48%, 6/11/98................................. P1/A1 7,488,583
------------
TELECOMMUNICATIONS -- 4.3%
10,000,000 BellSouth Corporation, 5.48%, 7/2/98........................ P1/A1+ 9,952,811
8,150,000 Motorola, Inc., 5.51%, 6/16/98.............................. P1/A1+ 8,131,289
------------
18,084,100
------------
UTILITIES -- 0.9%
3,600,000 National Rural Utility Cooperative Finance Corporation,
5.50%, 6/8/98............................................... P1/A1+ 3,596,150
------------
TOTAL COMMERCIAL PAPER (Cost $300,904,956)............................... 300,904,956
------------
CORPORATE BONDS -- 5.3%
AUTOMOTIVE -- 1.2%
3,000,000 Ford Motor Credit Corporation, 5.625%, 1/15/99.............. A1/A 2,996,455
1,870,000 Ford Motor Credit Corporation, 8.00%, 1/15/99............... A1/A 1,897,179
------------
4,893,634
------------
</TABLE>
See notes to financial statements.
2
<PAGE> 10
PERFORMANCE FUNDS TRUST
MONEY MARKET FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR S&P/MOODY'S
PRINCIPAL RATINGS MARKET
AMOUNT SECURITY DESCRIPTION (UNAUDITED) VALUE
--------- -------------------- ----------- ------
<C> <S> <C> <C>
CORPORATE BONDS (CONTINUED)
BANKING -- 3.5%
$ 5,000,000 First Tennessee Bank Note, 5.66%, 2/12/99................... A1/A $ 5,000,000
5,000,000 First Tennessee Bank Note, 5.80%, 4/8/99.................... A1/A 5,000,000
5,000,000 Norwest Bank Corporation, 6.00%, 10/13/98................... AA-/AA3 5,001,403
------------
15,001,403
------------
DIVERSIFIED -- 0.6%
2,500,000 General Electric Company, 7.875%, 9/15/98................... AAA/AAA 2,515,219
------------
TOTAL CORPORATE BONDS (Cost $22,410,256)................................. 22,410,256
------------
U.S. GOVERNMENT DEBENTURES -- 14.0%
FEDERAL FARM CREDIT BANK -- 0.9%
4,000,000 Federal Farm Credit Bank, 5.70%, 9/2/98..................... AAA/AAA 3,998,644
------------
FEDERAL HOME LOAN BANK -- 3.2%
3,000,000 Federal Home Loan Bank Note, 5.80%, 6/12/98................. AAA/AAA 2,999,922
3,000,000 Federal Home Loan Bank Note, 5.30%, 11/18/98................ AAA/AAA 2,995,960
1,500,000 Federal Home Loan Bank Note, 5.43%, 12/29/98................ AAA/AAA 1,496,196
3,000,000 Federal Home Loan Bank Note, 5.625%, 3/23/99................ AAA/AAA 3,000,000
3,000,000 Federal Home Loan Bank Note, 5.705%, 5/5/99................. AAA/AAA 3,000,400
------------
13,492,478
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 0.6%
2,500,000 Federal Home Loan Mortgage Corporation, 5.37%, 12/7/98...... AAA/AAA 2,497,634
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 5.3%
1,000,000 Federal National Mortgage Assoc., 5.24%, 7/15/98............ AAA/AAA 999,229
2,000,000 Federal National Mortgage Assoc., 5.39%, 8/5/98............. AAA/AAA 1,998,018
1,000,000 Federal National Mortgage Assoc., 5.35%, 8/12/98............ AAA/AAA 998,811
4,000,000 Federal National Mortgage Assoc., 5.63%, 8/14/98............ AAA/AAA 3,999,030
2,000,000 Federal National Mortgage Assoc., 5.16%, 8/26/98............ AAA/AAA 1,996,962
3,675,000 Federal National Mortgage Assoc., 4.95%, 9/30/98............ AAA/AAA 3,665,264
3,665,000 Federal National Mortgage Assoc., 5.37%, 2/26/99............ AAA/AAA 3,657,561
5,000,000 Federal National Mortgage Assoc., 5.48%, 3/16/99............ AAA/AAA 4,993,248
------------
22,308,123
------------
STUDENT LOAN MARKETING ASSOCIATION -- 4.0%
4,000,000 Student Loan Marketing Assoc., 5.775%, 9/9/98............... AAA/AAA 3,999,401
5,000,000 Student Loan Marketing Assoc., 5.56%, 1/27/99............... AAA/AAA 5,000,000
3,000,000 Student Loan Marketing Assoc., 5.53%, 3/4/99................ AAA/AAA 2,999,291
5,000,000 Student Loan Marketing Assoc., 5.60%, 3/5/99................ AAA/AAA 5,000,000
------------
16,998,692
------------
TOTAL U.S. GOVERNMENT DEBENTURES (Cost $59,295,571)...................... 59,295,571
------------
</TABLE>
See notes to financial statements.
3
<PAGE> 11
PERFORMANCE FUNDS TRUST
MONEY MARKET FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
----------- ------------------------------------------------------------ ------------
<S> <C> <C>
REPURCHASE AGREEMENTS -- 9.7%
$41,039,863 First Union, dated 5/29/98, due 6/1/98 at 5.53% with a
maturity value of $41,058,775 (Collateralized by various
U.S. Government Agencies, 5.56% - 6.00%, 5/21/99 - 2/27/03,
market value -- $41,871,250)................................ $ 41,039,863
------------
TOTAL REPURCHASE AGREEMENTS (Cost $41,039,863)........................... 41,039,863
------------
TOTAL INVESTMENTS (Cost $423,650,646)(a) -- 100.2%....................... 423,650,646
LIABILITIES IN EXCESS OF OTHER ASSETS (0.2)%............................. (832,479)
------------
TOTAL NET ASSETS -- 100.0%............................................... $422,818,167
============
</TABLE>
- ---------------
(a) Cost for federal income tax and financial reporting purposes is
substantially the same.
See notes to financial statements.
4
<PAGE> 12
PERFORMANCE FUNDS TRUST
SHORT TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
U.S. TREASURY NOTES -- 35.8%
$ 6,000,000 U.S. Treasury Notes, 5.875%, 10/31/98....................... $ 6,010,440
10,000,000 U.S. Treasury Notes, 6.00%, 8/15/99......................... 10,053,000
4,000,000 U.S. Treasury Notes, 5.625%, 11/30/99....................... 4,004,800
12,000,000 U.S. Treasury Notes, 5.50%, 4/15/00......................... 11,994,720
12,000,000 U.S. Treasury Notes, 5.625%, 2/28/01........................ 12,024,240
------------
TOTAL U.S. TREASURY NOTES (Cost $43,787,564)................ 44,087,200
------------
U.S. GOVERNMENT AGENCY MORTGAGES -- 60.9%
FEDERAL HOME LOAN MORTGAGE CORP. -- 35.8%
3,548,292 Federal Home Loan Mortgage Corp., Series 1414(E), 6.25%,
7/15/05..................................................... 3,552,017
675,991 Federal Home Loan Mortgage Corp., Series 1675(D), 5.50%,
5/15/14..................................................... 674,814
10,760,000 Federal Home Loan Mortgage Corp., Series 1407(PF), 6.25%,
10/15/16.................................................... 10,793,033
10,000,000 Federal Home Loan Mortgage Corp., Series 2054(PA), 6.00%,
5/15/17..................................................... 9,964,453
10,000,000 Federal Home Loan Mortgage Corp., Series 1590(F), 6.00%,
1/15/19..................................................... 10,008,500
9,213,018 Federal Home Loan Mortgage Corp., Series 1637(F), 6.00%,
9/15/21..................................................... 9,221,218
------------
44,214,035
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 25.1%
1,775,189 Federal National Mortgage Assoc., Series 1993-10(E), 6.50%,
10/25/04.................................................... 1,779,573
6,748,686 Federal National Mortgage Assoc., Series 1997-78(PB), 6.00%,
8/18/14..................................................... 6,715,415
4,330,828 Federal National Mortgage Assoc., Series 1993-26(E), 6.25%,
4/25/16..................................................... 4,319,091
1,079,341 Federal National Mortgage Assoc., Series 1993-142(A), 5.25%,
9/25/16..................................................... 1,068,440
2,000,000 Federal National Mortgage Assoc., Series 1993-73(D), 5.75%,
9/25/16..................................................... 1,986,300
5,000,000 Federal National Mortgage Assoc., Series 1994-65(PE), 6.75%,
7/25/18..................................................... 5,033,600
10,000,000 Federal National Mortgage Assoc., Series 1993-102(G), 6.25%,
1/25/20..................................................... 10,055,901
------------
30,958,320
------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGES (Cost $75,004,368)... 75,172,355
------------
</TABLE>
See notes to financial statements.
5
<PAGE> 13
PERFORMANCE FUNDS TRUST
SHORT TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
U.S. GOVERNMENT AGENCY NOTES -- 2.4%
FEDERAL HOME LOAN MORTGAGE CORP. -- 1.6%
$ 2,000,000 Federal Home Loan Mortgage Corp., 6.50%, 6/8/98............. $ 2,001,880
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 0.8%
1,000,000 Federal National Mortgage Assoc., 5.38%, 1/6/99............. 999,700
------------
TOTAL U.S. GOVERNMENT AGENCY NOTES (Cost $2,982,472)........ 3,001,580
------------
MONEY MARKET MUTUAL FUND -- 0.4%
527,958 AIM Treasury Money Market................................... 527,958
------------
TOTAL MONEY MARKET MUTUAL FUND (Cost $527,958).............. 527,958
------------
TOTAL INVESTMENTS (Cost $122,302,362)(a) -- 99.5%........... 122,789,093
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.5%............... 594,496
------------
TOTAL NET ASSETS -- 100.0%.................................. $123,383,589
============
</TABLE>
- ---------------
(a) At May 31, 1998, the aggregate cost of investment securities for federal
income tax purposes differs from value of net unrealized appreciation of
securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................... $570,655
Unrealized depreciation............................... (83,924)
--------
Net unrealized appreciation........................... $486,731
========
</TABLE>
See notes to financial statements.
6
<PAGE> 14
PERFORMANCE FUNDS TRUST
INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
CORPORATE BONDS -- 29.6%
AEROSPACE -- 0.8%
$ 250,000 Raytheon Company, 6.50%, 7/15/05............................ $ 253,750
250,000 Raytheon Company, 7.375%, 7/15/25........................... 258,437
250,000 Rockwell International Corporation, 6.625%, 6/1/05.......... 258,125
250,000 WMX Technologies, Inc., 6.25%, 10/15/00..................... 250,313
------------
1,020,625
------------
AUTOMOTIVE -- 1.5%
500,000 Ford Motor Company, 7.25%, 10/01/08......................... 535,625
250,000 Ford Motor Company, 7.125%, 11/15/25........................ 265,000
1,000,000 General Motors Corporation, 7.10%, 3/15/06.................. 1,051,250
------------
1,851,875
------------
BANKING -- 2.4%
500,000 Bankers Trust Company, 6.00%, 9/30/99....................... 499,375
250,000 Bankers Trust Company, 7.125%, 7/31/02...................... 257,188
500,000 Bankers Trust Company, 7.50%, 11/15/15...................... 535,624
250,000 Chase Manhattan Corporation, 6.50%, 1/15/09................. 254,063
250,000 First Bank, N.A., 6.875%, 4/1/06............................ 258,750
250,000 NationsBank Corporation, 6.875%, 2/15/05.................... 258,125
500,000 NationsBank Corporation, 6.375%, 5/15/05.................... 503,750
350,000 NationsBank Corporation, 7.19%, 7/30/12..................... 360,500
------------
2,927,375
------------
BEVERAGES -- 0.6%
500,000 Coca-Cola Enterprises, Inc., 6.625%, 8/1/04................. 515,625
250,000 Coca-Cola Enterprises, Inc., 6.75%, 9/15/23................. 252,813
------------
768,438
------------
CHEMICALS -- 1.9%
500,000 Air Products & Chemicals, Inc., 7.375%, 5/1/05.............. 535,625
250,000 Air Products & Chemicals, Inc., 6.24%, 1/13/10.............. 245,938
750,000 du Pont (E.I.) De Nemours & Company, 6.00%, 12/1/01......... 750,000
500,000 Monsanto Company, 6.00%, 7/1/00............................. 500,625
250,000 PPG Industries, Inc., 6.875%, 8/1/05........................ 261,250
------------
2,293,438
------------
COMPUTER EQUIPMENT -- 0.8%
500,000 IBM Credit Corporation, 7.00%, 11/5/07...................... 510,000
500,000 IBM Credit Corporation, 6.75%, 12/24/07..................... 501,250
------------
1,011,250
------------
CONSUMER NON-DURABLE -- 0.4%
250,000 American Home Products, Inc., 7.25%, 3/1/23................. 270,937
250,000 Kimberly-Clark Corporation, 6.875%, 2/15/14................. 263,438
------------
534,375
------------
</TABLE>
See notes to financial statements.
7
<PAGE> 15
PERFORMANCE FUNDS TRUST
INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
DIVERSIFIED -- 0.6%
$ 650,000 General Electric Capital Corporation, 6.90%, 9/15/15........ $ 698,750
------------
FINANCIAL SERVICES -- 12.3%
500,000 American General Corporation, 6.75%, 6/15/05................ 513,125
250,000 American General Corporation, 7.50%, 7/15/25................ 274,063
500,000 Associates Corporation of North America, 6.00%, 3/15/00..... 500,000
1,500,000 Associates Corporation of North America, 6.00%, 6/15/00..... 1,499,999
500,000 Associates Corporation of North America, 6.50%, 8/15/02..... 505,625
250,000 Bear Stearns Company, 6.25%, 12/1/00........................ 250,938
500,000 Bear Stearns Company, 6.625%, 10/01/04...................... 506,250
250,000 Bear Stearns Company, 6.65%, 12/1/04........................ 253,438
250,000 CIT Group Holdings, 6.375%, 10/01/02........................ 252,188
500,000 Ford Motor Credit Corporation, 6.06%, 12/27/00.............. 499,375
1,500,000 GMAC, 6.21%, 9/19/00........................................ 1,503,749
250,000 Household Finance Corporation, 6.375%, 6/30/00.............. 251,563
500,000 Household Finance Corporation, 6.70%, 6/15/02............... 511,875
500,000 Household Finance Corporation, 6.875%, 3/1/07............... 519,375
500,000 Household Finance Corporation, 7.30%, 7/30/12............... 521,250
250,000 International Lease Finance, 6.125%, 11/1/99................ 250,768
500,000 International Lease Finance, 6.20%, 11/6/00................. 502,500
500,000 ITT Hartford Corporation, 7.30%, 11/1/15.................... 526,874
500,000 Merrill Lynch & Company, 7.00%, 4/27/08..................... 526,875
250,000 Merrill Lynch & Company, 6.25%, 10/15/08.................... 248,125
1,000,000 Merrill Lynch & Company, 7.15%, 7/30/12..................... 1,028,749
500,000 Norwest Corporation, 6.00%, 3/15/00......................... 501,250
250,000 Norwest Corporation, 6.50%, 6/1/05.......................... 253,750
500,000 Norwest Financial, Inc., 6.375%, 9/15/02.................... 504,375
500,000 Salomon SB Holdings, Inc., 6.125%, 1/15/03.................. 495,625
500,000 Salomon SB Holdings, Inc., 7.50%, 5/1/02.................... 522,500
500,000 Salomon SB Holdings, Inc., 6.625%, 7/1/02................... 507,500
500,000 The Travelers Group, Inc., 6.125%, 6/15/00.................. 501,875
250,000 The Travelers Group, Inc., 6.625%, 9/15/05.................. 256,563
------------
14,990,142
------------
MACHINERY & EQUIPMENT -- 0.4%
500,000 John Deere Capital Corporation, 6.00%, 2/1/99............... 500,430
------------
PHARMACEUTICALS -- 0.2%
250,000 Eli Lilly & Company, 7.125%, 6/1/25......................... 272,500
------------
RETAIL -- 1.2%
250,000 J.C. Penney & Company, 6.875%, 10/15/15..................... 254,375
250,000 Rite-Aid Corporation, 6.875%, 8/15/13....................... 251,875
500,000 Sears, Roebuck and Company, 6.00%, 5/1/00................... 499,375
500,000 Sears Roebuck Acceptance Corporation, 6.70%, 11/15/06....... 512,500
------------
1,518,125
------------
</TABLE>
See notes to financial statements.
8
<PAGE> 16
PERFORMANCE FUNDS TRUST
INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
RETAIL -- GROCERY -- 0.2%
$ 300,000 Albertson's, Inc., 6.375%, 6/1/00........................... $ 303,000
------------
TELECOMMUNICATIONS -- 1.7%
250,000 Motorola, Inc., 6.50%, 3/1/08............................... 256,875
250,000 Northern Telecommunications, 6.875%, 9/1/23................. 258,438
250,000 Southwestern Bell Telephone Company, 6.25%, 10/15/02........ 251,875
500,000 Southwestern Bell Telephone Company, 5.875%, 6/1/03......... 493,750
250,000 Southwestern Bell Telephone Company, 7.20%, 10/15/26........ 258,125
250,000 U.S. West Communications, Inc., 6.375%, 10/15/02............ 252,813
250,000 U.S. West Communications, Inc., 7.50%, 6/15/23.............. 260,937
------------
2,032,813
------------
TELEPHONE -- 1.8%
250,000 Chesapeake Bell Telephone Virginia, 7.00%, 7/15/25.......... 252,500
1,000,000 New York Telephone Company, 6.00%, 9/1/07................... 980,000
250,000 New York Telephone Company, 7.25%, 2/15/24.................. 258,125
500,000 Southern New England Telecommunication, Inc., 7.00%,
8/15/05..................................................... 521,875
240,000 Southern New England Telecommunication, Inc., 7.125%,
8/1/07...................................................... 255,600
------------
2,268,100
------------
UTILITIES -- 2.8%
250,000 Consolidated Edison Company of New York, Inc., 6.625%,
7/1/05...................................................... 257,187
250,000 Consolidated Edison Company of New York, Inc., 7.50%,
6/15/23..................................................... 262,499
250,000 Duke Power Company, 6.875%, 8/1/23.......................... 250,000
225,000 Georgia Power Company, 6.625%, 4/1/03....................... 228,938
250,000 Northern States Power Company, 7.125%, 7/1/25............... 270,937
250,000 Pacific Gas & Electric Company, 6.25%, 3/1/04............... 252,813
250,000 Pacific Gas & Electric Company, 7.25%, 8/1/26............... 255,313
250,000 PacifiCorp, 6.625%, 6/1/07.................................. 254,688
250,000 Public Service Electric & Gas, 6.00%, 5/1/00................ 250,313
250,000 Southern California Edison Company, 6.50%, 6/1/01........... 253,125
250,000 Southern California Edison Company, 6.90%, 10/1/18.......... 249,375
500,000 Virginia Electric & Power Company, 6.75%, 2/1/07............ 513,124
------------
3,298,312
------------
TOTAL CORPORATE BONDS (Cost $35,280,734).................... 36,289,548
------------
MORTGAGE-BACKED SECURITIES -- 0.1%
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 0.1%
60,299 Government National Mortgage Association, Pool #210311,
9.00%, 6/15/17.............................................. 64,250
37,312 Government National Mortgage Association, Pool #271741,
9.00%, 3/15/20.............................................. 39,760
------------
TOTAL MORTGAGE-BACKED SECURITIES (Cost $102,284)............ 104,010
------------
</TABLE>
See notes to financial statements.
9
<PAGE> 17
PERFORMANCE FUNDS TRUST
INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
U.S. GOVERNMENT AGENCY MORTGAGES -- 34.0%
FEDERAL HOME LOAN BANK -- 6.6%
$ 1,000,000 Federal Home Loan Mortgage Corporation, 7.256%, 9/17/01..... $ 1,004,840
2,000,000 Federal Home Loan Mortgage Corporation, 6.11%, 2/18/03...... 1,994,900
2,000,000 Federal Home Loan Mortgage Corporation, 7.52%, 9/1/05....... 2,005,200
1,000,000 Federal Home Loan Mortgage Corporation, 6.97%, 10/3/05...... 1,019,670
1,000,000 Federal Home Loan Mortgage Corporation, 7.405%, 4/19/06..... 1,037,930
1,000,000 Federal Home Loan Mortgage Corporation, 7.25%, 7/17/07...... 1,000,770
------------
8,063,310
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 25.6%
2,000,000 Federal National Mortgage Association, 5.55%, 1/17/01....... 1,992,120
1,725,000 Federal National Mortgage Association, 6.00%, 4/30/01....... 1,725,328
5,000,000 Federal National Mortgage Association, 7.00%, 5/10/01....... 5,056,149
2,000,000 Federal National Mortgage Association, 7.08%, 5/6/02........ 2,022,360
2,000,000 Federal National Mortgage Association, 6.23%, 7/18/02....... 2,033,920
1,450,000 Federal National Mortgage Association, 6.56%, 12/17/02...... 1,451,059
1,000,000 Federal National Mortgage Association, 5.75%, 2/20/03....... 991,760
1,000,000 Federal National Mortgage Association, 6.05%, 4/17/03....... 997,820
500,000 Federal National Mortgage Association, 6.31%, 5/5/03........ 501,850
1,000,000 Federal National Mortgage Association, 7.30%, 5/13/04....... 1,013,980
1,000,000 Federal National Mortgage Association, 7.00%, 8/19/04....... 1,001,200
3,000,000 Federal National Mortgage Association, 6.30%, 12/20/04...... 3,011,700
1,000,000 Federal National Mortgage Association, 6.42%, 4/14/05....... 997,710
2,000,000 Federal National Mortgage Association, 6.49%, 1/19/06....... 2,009,820
1,000,000 Federal National Mortgage Association, 7.32%, 5/3/06........ 1,035,640
1,000,000 Federal National Mortgage Association, 7.19%, 11/6/06....... 1,035,390
1,000,000 Federal National Mortgage Association, 7.33%, 4/2/07........ 1,045,190
2,000,000 Federal National Mortgage Association, 7.00%, 7/17/07....... 2,028,440
1,000,000 Federal National Mortgage Association, 6.17%, 1/15/08....... 995,600
500,000 Federal National Mortgage Association, 6.51%, 5/6/08........ 505,615
------------
31,452,651
------------
U.S. GOVERNMENT AGENCY -- 1.8%
159,749 Small Business Administration Loan Agreements, 12.25%,
11/15/98.................................................... 160,947
2,000,000 Tennessee Valley Authority, 6.375%, 6/15/05................. 2,057,500
------------
2,218,447
------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGES (Cost $41,220,598)... 41,734,408
------------
U.S. TREASURY OBLIGATIONS -- 34.8%
U.S. TREASURY BONDS -- 20.4%
10,000,000 U.S. Treasury Bonds, 7.25%, 5/15/16......................... 11,530,600
4,000,000 U.S. Treasury Bonds, 7.25%, 8/15/22......................... 4,690,680
5,000,000 U.S. Treasury Bonds, 6.25%, 8/15/23......................... 5,234,250
3,500,000 U.S. Treasury Bonds, 6.00%, 2/15/26......................... 3,556,700
------------
25,012,230
------------
</TABLE>
See notes to financial statements.
10
<PAGE> 18
PERFORMANCE FUNDS TRUST
INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS (CONTINUED)
U.S. TREASURY NOTES -- 14.4%
$ 2,500,000 U.S. Treasury Notes, 6.00%, 8/15/99......................... $ 2,513,250
2,500,000 U.S. Treasury Notes, 6.375%, 1/15/00........................ 2,532,500
775,000 U.S. Treasury Notes, 5.50%, 4/15/00......................... 774,659
1,500,000 U.S. Treasury Notes, 6.25%, 5/31/00......................... 1,520,160
2,000,000 U.S. Treasury Notes, 6.25%, 2/28/02......................... 2,043,100
5,000,000 U.S. Treasury Notes, 6.25%, 6/30/02......................... 5,116,800
3,000,000 U.S. Treasury Notes, 7.25%, 8/15/04......................... 3,256,080
------------
17,756,549
------------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $40,427,811).......... 42,768,779
------------
MONEY MARKET MUTUAL FUND -- 0.4%
502,275 AIM Treasury Money Market................................... 502,275
------------
TOTAL MONEY MARKET MUTUAL FUND (Cost $502,275).............. 502,275
------------
TOTAL INVESTMENTS (Cost $117,533,702)(a) -- 98.9%........... 121,399,020
------------
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.1%............... 1,309,464
------------
TOTAL NET ASSETS -- 100.0%.................................. $122,708,484
============
</TABLE>
- ---------------
(a) At May 31, 1998, the aggregate cost of investment securities for income tax
purposes was $117,617,898. Cost for federal income tax purposes differs from
value of net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................. $3,826,637
Unrealized depreciation............................. (45,515)
----------
Net unrealized appreciation......................... $3,781,122
==========
</TABLE>
See notes to financial statements.
11
<PAGE> 19
PERFORMANCE FUNDS TRUST
LARGE CAP EQUITY FUND
Schedule of Portfolio Investments
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- -------------------- ------
<C> <S> <C>
COMMON STOCKS -- 97.7%
AEROSPACE/DEFENSE -- 1.4%
30,000 Boeing Company.............................................. $ 1,428,750
13,000 Lockheed Martin Corporation................................. 1,459,250
27,000 Raytheon Company, Class B................................... 1,476,563
------------
4,364,563
------------
AUTOMOTIVE -- 2.2%
32,000 Chrysler Corporation........................................ 1,780,000
49,000 Ford Motor Company.......................................... 2,541,875
32,000 General Motors Corporation.................................. 2,302,000
------------
6,623,875
------------
BANKING -- 6.4%
30,000 Bank of New York Company, Inc............................... 1,833,750
34,000 BankAmerica Corporation..................................... 2,811,375
18,000 BankBoston Corporation...................................... 1,896,750
19,000 Chase Manhattan Corporation................................. 2,582,813
22,000 Citicorp.................................................... 3,280,749
35,000 NationsBank Corporation..................................... 2,651,250
30,000 SunTrust Banks, Inc......................................... 2,370,000
5,000 Wells Fargo & Company....................................... 1,807,500
------------
19,234,187
------------
BEVERAGES -- 4.1%
27,000 Anheuser Busch Companies, Inc............................... 1,240,313
104,000 Coca-Cola Company........................................... 8,150,999
69,000 PepsiCo, Inc................................................ 2,816,063
------------
12,207,375
------------
BUSINESS EQUIPMENT & SERVICES -- 0.6%
17,000 FDX Corporation(b).......................................... 1,090,125
25,000 Ryder System, Inc........................................... 851,563
------------
1,941,688
------------
CAPITAL GOODS -- 2.0%
30,000 Black & Decker Corporation.................................. 1,751,250
30,000 Illinois Tool Works, Inc.................................... 1,980,000
44,000 Sherwin-Williams Company.................................... 1,463,000
20,000 Timken Company.............................................. 752,500
------------
5,946,750
------------
CHEMICALS -- 0.9%
10,000 Dow Chemical Company........................................ 968,750
18,000 Praxair, Inc................................................ 887,625
20,000 Union Carbide Corporation................................... 998,750
------------
2,855,125
------------
</TABLE>
See notes to financial statements.
12
<PAGE> 20
PERFORMANCE FUNDS TRUST
LARGE CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CLOTHING -- 0.3%
17,000 Liz Claiborne, Inc.......................................... $ 861,688
------------
COMPUTER EQUIPMENT -- 2.0%
21,000 Computer Associates International, Inc...................... 1,102,500
68,000 Intel Corporation........................................... 4,857,750
------------
5,960,250
------------
COMPUTER SOFTWARE -- 4.2%
21,000 Adobe Systems, Inc.......................................... 838,688
45,000 Cisco Systems, Inc.(b)...................................... 3,403,125
98,000 Microsoft Corporation(b).................................... 8,311,624
------------
12,553,437
------------
COMPUTERS -- 4.0%
66,000 Compaq Computer Corporation................................. 1,802,625
30,000 Dell Computer Corporation(b)................................ 2,472,188
44,000 Hewlett Packard Company..................................... 2,733,500
44,000 International Business Machines Corporation................. 5,164,500
------------
12,172,813
------------
CONSUMER DURABLES -- 0.4%
11,000 Maytag Corporation.......................................... 554,813
11,000 Dana Corporation............................................ 573,375
------------
1,128,188
------------
CONSUMER NON-DURABLE -- 5.4%
28,000 Colgate-Palmolive Company................................... 2,436,000
33,000 ConAgra, Inc................................................ 965,250
31,000 Gillette Company............................................ 3,630,875
33,000 Kimberly-Clark Corporation.................................. 1,635,563
20,000 Premark International, Inc.................................. 641,250
53,000 Procter & Gamble Company.................................... 4,448,688
25,000 Wrigley (WM.) Jr. Company................................... 2,406,250
------------
16,163,876
------------
CONSUMER SERVICES -- 1.5%
10,000 Dow Jones & Company, Inc.................................... 481,250
41,000 Mattel, Inc................................................. 1,552,875
60,000 Meredith Corporation........................................ 2,385,000
------------
4,419,125
------------
ELECTRONICS -- 0.5%
20,000 National Service Industries, Inc............................ 1,020,000
12,000 Tandy Corporation........................................... 531,000
------------
1,551,000
------------
</TABLE>
See notes to financial statements.
13
<PAGE> 21
PERFORMANCE FUNDS TRUST
LARGE CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
ENERGY -- 7.2%
46,000 Amoco Corporation........................................... $ 1,923,375
31,000 Chevron Corporation......................................... 2,476,125
102,000 Exxon Corporation........................................... 7,190,999
38,000 Halliburton Company......................................... 1,800,250
40,000 Mobil Corporation........................................... 3,120,000
90,000 Royal Dutch Petroleum -- New York Shares ADR................ 5,045,625
------------
21,556,374
------------
ENTERTAINMENT -- 1.4%
36,000 King World Productions, Inc.(b)............................. 918,000
30,000 The Walt Disney Company..................................... 3,393,750
------------
4,311,750
------------
FINANCIAL SERVICES -- 6.7%
31,000 American Express Company.................................... 3,181,375
12,842 Associates First Capital.................................... 960,742
54,000 Federal Home Loan Mortgage Corporation...................... 2,457,000
56,000 Federal National Mortgage Association....................... 3,352,999
22,000 Green Tree Financial Corporation............................ 884,125
25,000 Merrill Lynch............................................... 2,237,500
39,000 Morgan Stanley Dean Witter & Co............................. 3,044,438
15,000 SunAmerica, Inc............................................. 729,375
54,000 The Travelers Group, Inc.................................... 3,294,000
------------
20,141,554
------------
FOOD -- 1.3%
20,000 Hershey Foods Corporation................................... 1,385,000
32,000 Unilever NV.-New York Shares ADR............................ 2,526,000
------------
3,911,000
------------
FUNERAL SERVICES -- 0.1%
11,000 Service Corporation International........................... 449,625
------------
HEALTH CARE -- 10.5%
34,000 Abbott Laboratories......................................... 2,522,375
50,000 American Home Products Corporation.......................... 2,415,625
21,000 Baxter International, Inc................................... 1,200,938
40,000 Bristol-Myers Squibb Company................................ 4,300,000
55,000 Johnson & Johnson, Inc...................................... 3,798,438
11,000 Manor Care, Inc............................................. 347,188
48,000 Merck & Company, Inc........................................ 5,618,999
84,000 Schering-Plough Corporation................................. 7,029,749
66,000 Warner Lambert Company...................................... 4,211,625
------------
31,444,937
------------
</TABLE>
See notes to financial statements.
14
<PAGE> 22
PERFORMANCE FUNDS TRUST
LARGE CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
INSURANCE -- 2.7%
29,000 Allstate Corporation........................................ $ 2,729,625
33,000 American International Group, Inc........................... 4,085,813
8,000 MBIA, Inc................................................... 596,500
12,000 MGIC Investment Corporation................................. 719,250
------------
8,131,188
------------
MACHINERY & EQUIPMENT -- 0.4%
20,000 Caterpillar, Inc............................................ 1,098,750
7,000 Harnischfeger Industries, Inc............................... 220,500
------------
1,319,250
------------
MULTI INDUSTRY -- 5.6%
30,000 Allied-Signal, Inc.......................................... 1,282,500
132,000 General Electric Company.................................... 11,005,500
12,000 Lowes Corporation........................................... 1,089,000
38,000 Textron, Inc................................................ 2,819,125
29,000 Whitman Corporation......................................... 628,938
------------
16,825,063
------------
OIL/GAS -- 0.3%
30,000 Helmerich & Payne, Inc...................................... 757,500
------------
PHARMACEUTICALS -- 2.6%
46,000 Eli Lilly & Company......................................... 2,826,125
48,000 Pfizer, Inc................................................. 5,031,000
------------
7,857,125
------------
RAILROADS -- 0.4%
39,000 Norfolk Southern Corporation................................ 1,221,188
------------
RAW MATERIALS -- 2.4%
14,000 Aluminum Company Of America................................. 971,250
22,000 Avery-Dennison Corporation.................................. 1,139,875
45,000 du Pont (E.I.) De Nemours & Company......................... 3,465,000
34,000 Ecolab, Inc................................................. 1,049,750
17,000 Hercules, Inc............................................... 749,063
------------
7,374,938
------------
RETAIL -- 5.5%
23,000 Circuit City Stores, Inc.................................... 974,625
40,500 Gap, Inc.................................................... 2,187,000
20,000 J.C. Penney Company......................................... 1,436,250
30,000 McDonalds Corporation....................................... 1,968,750
20,000 Sears, Roebuck & Company.................................... 1,236,250
96,000 Wal-Mart Stores, Inc........................................ 5,297,999
98,000 Walgreen Company............................................ 3,448,375
------------
16,549,249
------------
</TABLE>
See notes to financial statements.
15
<PAGE> 23
PERFORMANCE FUNDS TRUST
LARGE CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
SHELTER -- 0.5%
18,000 Armstrong World Industries, Inc............................. $ 1,514,250
------------
TECHNOLOGY -- 2.4%
29,000 Andrew Corporation(b)....................................... 637,094
19,000 Ceridian Corporation(b)..................................... 1,026,000
50,000 Loral Space & Communications Ltd.(b)........................ 1,268,750
29,000 Northrop Grumman Corporation................................ 3,108,437
19,000 Rockwell International Corporation.......................... 1,045,000
------------
7,085,281
------------
TELECOMMUNICATIONS -- 7.7%
52,000 Ameritech Corporation....................................... 2,206,750
64,000 AT&T Corporation............................................ 3,895,999
27,000 Bell Atlantic Corporation................................... 2,473,875
42,000 BellSouth Corporation....................................... 2,709,000
42,000 GTE Corporation............................................. 2,449,125
46,000 Lucent Technologies, Inc.................................... 3,263,125
27,000 Motorola, Inc............................................... 1,429,313
74,000 SBC Communications, Inc..................................... 2,876,750
28,000 Sprint Corporation.......................................... 2,009,000
------------
23,312,937
------------
TEXTILES AND APPAREL -- 0.2%
10,000 VF Corporation.............................................. 531,875
------------
TRANSPORTATION & SHIPPING -- 0.4%
12,000 Burlington Northern Santa Fe Corporation.................... 1,194,000
------------
UTILITIES -- 0.9%
50,000 Entergy Corporation......................................... 1,315,625
52,000 FirstEnergy Corporation..................................... 1,543,750
------------
2,859,375
------------
UTILITIES -- ELECTRIC -- 2.6%
45,000 Consolidated Edison Company of New York, Inc................ 1,926,563
46,000 Detroit Edison Company...................................... 1,819,875
39,000 Pacific Enterprises......................................... 1,484,438
100,000 Southern Company............................................ 2,656,249
------------
7,887,125
------------
TOTAL COMMON STOCKS (Cost $144,357,876)..................... 294,219,524
------------
</TABLE>
See notes to financial statements.
16
<PAGE> 24
PERFORMANCE FUNDS TRUST
LARGE CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- -------------------- ------
<C> <S> <C>
MONEY MARKET MUTUAL FUND -- 2.3%
6,865,950 First Choice Treasury Money Market.......................... $ 6,865,950
------------
TOTAL MONEY MARKET MUTUAL FUND (Cost $6,865,950)............ 6,865,950
------------
TOTAL INVESTMENTS (Cost $151,223,826)(a) -- 100.0%.......... 301,085,474
------------
LIABILITIES IN EXCESS OF OTHER ASSETS 0.0%.................. (25,799)
------------
TOTAL NET ASSETS -- 100.0%.................................. $301,059,675
============
</TABLE>
- ---------------
ADR -- American Depository Receipt.
(a) At May 31, 1998, the aggregate cost of investment securities for federal
income tax purposes differs from value of net unrealized appreciation of
securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................... $150,555,865
Unrealized depreciation........................... (694,217)
------------
Net unrealized appreciation....................... $149,861,648
============
</TABLE>
(b) Non-income producing securities.
See notes to financial statements.
17
<PAGE> 25
PERFORMANCE FUNDS TRUST
MID CAP GROWTH FUND
Schedule of Portfolio Investments
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
COMMON STOCKS -- 96.2%
AEROSPACE/DEFENSE -- 2.1%
50,000 Cordant Technologies, Inc................................... $ 2,493,750
24,000 Precision Castparts Corporation............................. 1,383,000
------------
3,876,750
------------
AUTOMOTIVE -- 1.2%
56,000 Kaydon Corporation.......................................... 2,208,500
------------
BANKING -- 3.8%
77,000 City National Corporation................................... 2,829,750
84,000 Pacific Century Financial Corporation....................... 2,105,250
52,500 SouthTrust Corporation...................................... 2,129,531
------------
7,064,531
------------
BUILDING PRODUCTS -- 2.2%
30,000 Carlisle Companies, Inc..................................... 1,451,250
23,000 Vulcan Materials Company.................................... 2,610,500
------------
4,061,750
------------
BUSINESS EQUIPMENT & SERVICES -- 2.9%
82,500 Comdisco, Inc............................................... 3,000,937
57,000 Manpower, Inc............................................... 2,447,438
------------
5,448,375
------------
CAPITAL GOODS -- 3.1%
90,000 American Power Conversion Corporation(b).................... 2,700,000
30,000 Avnet, Inc.................................................. 1,770,000
29,000 Kennametal, Inc............................................. 1,395,625
------------
5,865,625
------------
CHEMICALS -- 1.9%
13,000 IMC Global, Inc............................................. 422,500
51,000 Olin Corporation............................................ 2,205,750
36,100 Wellman, Inc................................................ 868,656
------------
3,496,906
------------
COMMERCIAL SERVICES -- 0.8%
115,000 Olsten Corporation.......................................... 1,430,313
------------
COMPUTER EQUIPMENT -- 1.9%
120,000 Quantum Corporation(b)...................................... 2,625,000
12,000 Storage Technology Corporation(b)........................... 1,006,500
------------
3,631,500
------------
COMPUTER SOFTWARE -- 3.5%
60,000 BMC Software, Inc.(b)....................................... 2,763,750
76,500 Cadence Design Systems, Inc.(b)............................. 2,696,625
54,200 Reynolds & Reynolds Company................................. 1,134,813
------------
6,595,188
------------
</TABLE>
See notes to financial statements.
18
<PAGE> 26
PERFORMANCE FUNDS TRUST
MID CAP GROWTH FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CONSUMER DURABLES -- 1.4%
72,000 Harley-Davidson, Inc........................................ $ 2,574,000
------------
CONSUMER NON-DURABLES -- 3.7%
92,700 Coca-Cola Enterprises, Inc.................................. 3,482,044
56,800 IBP, Inc.(b)................................................ 1,100,500
56,299 Lancaster Colony Corporation................................ 2,258,997
------------
6,841,541
------------
CONSUMER SERVICES -- 0.5%
28,500 Banta Corporation........................................... 903,094
------------
DIVERSIFIED -- 1.1%
32,000 Hillenbrand Industry, Inc................................... 1,976,000
------------
DRUGS -- 1.1%
70,000 Mylan Laboratories, Inc..................................... 2,100,000
------------
ELECTRICAL EQUIPMENT -- 0.8%
20,000 AMETEK, Inc................................................. 577,500
13,000 Linear Technology Corporation............................... 909,188
------------
1,486,688
------------
ELECTRONIC COMPONENTS/INSTRUMENTS -- 0.8%
68,250 Vishay Intertechnology, Inc.(b)............................. 1,522,828
------------
ELECTRONICS -- 2.8%
24,000 Analog Devices, Inc.(b)..................................... 592,500
62,000 Arrow Electronics, Inc.(b).................................. 1,561,625
50,000 Sundstrand Corporation...................................... 3,100,000
------------
5,254,125
------------
ENERGY -- 1.9%
40,000 Smith International, Inc.(b)................................ 1,962,500
48,600 Tosco Corporation........................................... 1,543,050
------------
3,505,550
------------
ENVIRONMENTAL SERVICES -- 0.6%
24,000 U.S.A. Waste Services, Inc.................................. 1,132,500
------------
FINANCIAL SERVICES -- 10.7%
41,200 AFLAC, Inc.................................................. 2,634,225
64,139 Bear Stearns Companies, Inc................................. 3,479,541
37,800 Crestar Financial Corporation............................... 2,171,138
84,000 Edwards (A.G.), Inc......................................... 3,396,750
117,450 First Security Corporation.................................. 2,671,988
85,500 Paine Webber Group, Inc..................................... 3,671,155
48,000 Regions Financial Corporation............................... 1,974,000
------------
19,998,797
------------
FOOD -- 0.8%
48,000 Interstate Bakeries Corporation............................. 1,548,000
------------
</TABLE>
See notes to financial statements.
19
<PAGE> 27
PERFORMANCE FUNDS TRUST
MID CAP GROWTH FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FOREST PRODUCTS -- 0.2%
14,000 Consolidated Papers, Inc.................................... $ 405,125
------------
HEALTH CARE -- 5.2%
30,000 Beckman Coulter, Inc........................................ 1,672,500
21,900 Datascope Corporation(b).................................... 615,938
55,000 First Health Group Corporation(b)........................... 3,124,687
48,000 Health Care & Retirement Corporation(b)..................... 1,857,000
62,000 Stryker Corporation......................................... 2,526,500
------------
9,796,625
------------
INDUSTRIAL GOODS & SERVICES -- 0.6%
24,000 HARSCO Corporation.......................................... 1,047,000
------------
MANUFACTURING -- 2.8%
73,000 Callaway Golf............................................... 1,505,625
17,600 Danaher Corporation......................................... 1,272,700
51,000 Leggett & Platt, Inc........................................ 2,562,750
------------
5,341,075
------------
METALS -- 0.4%
10,700 Brush Wellman, Inc.......................................... 260,813
24,300 Hanna (M.A.) Company........................................ 487,518
------------
748,331
------------
OIL/GAS -- 0.8%
47,000 Valero Energy............................................... 1,533,375
------------
OIL/GAS EXPLORATION -- 1.5%
26,000 BJ Services Company(b)...................................... 849,875
78,000 ENSCO International, Inc.................................... 1,974,375
------------
2,824,250
------------
PHARMACEUTICALS -- 1.9%
80,000 Watson Pharmaceutical, Inc.(b).............................. 3,500,000
------------
PUBLISHING & PRINTING -- 1.1%
20,000 Belo (A.H.) Corporation-Common Series A..................... 1,030,000
2,000 Washington Post Company..................................... 1,080,500
------------
2,110,500
------------
RAILROADS -- 1.0%
40,000 Trinity Industries.......................................... 1,910,000
------------
RAW MATERIALS -- 1.5%
45,000 Cleveland Cliffs, Inc....................................... 2,382,187
11,220 Ultramar Diamond Shamrock Corporation....................... 358,339
------------
2,740,526
------------
RESTAURANTS -- 1.0%
52,500 Outback Steakhouse(b)....................................... 1,935,938
------------
</TABLE>
See notes to financial statements.
20
<PAGE> 28
PERFORMANCE FUNDS TRUST
MID CAP GROWTH FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
RETAIL -- 6.5%
55,000 BJ's Wholesale Club, Inc.(b)................................ $ 2,172,500
118,000 Claire's Stores, Inc........................................ 2,219,875
114,745 Dollar General Corporation.................................. 4,374,653
34,800 Hannaford Brothers Company.................................. 1,537,725
65,000 Office Depot, Inc.(b)....................................... 1,917,500
------------
12,222,253
------------
RETAIL-SPECIAL LINE -- 1.5%
110,000 Staples, Inc.(b)............................................ 2,763,750
------------
SHELTER -- 1.2%
119,375 Clayton Homes, Inc.......................................... 2,245,742
------------
TECHNOLOGY -- 1.9%
83,000 International Game Technologies............................. 2,049,063
32,000 Varian Associates, Inc...................................... 1,538,000
------------
3,587,063
------------
TELECOMMUNICATIONS -- 0.2%
17,000 Alliant Communications, Inc. Class A........................ 394,188
------------
TELECOMMUNICATIONS -- SERVICE AND EQUIPMENT -- 0.4%
25,000 ADC Telecommunications, Inc.(b)............................. 703,125
------------
TEXTILES -- 2.1%
46,000 Jones Apparel Group, Inc.(b)................................ 2,915,250
28,700 Unifi, Inc.................................................. 1,117,506
------------
4,032,756
------------
TRANSPORTATION -- 3.3%
44,000 ASA Holdings, Inc........................................... 1,729,750
22,000 Kansas City Southern Industries............................. 932,250
50,000 Pittston Brink's Group...................................... 1,934,375
45,000 Tidewater, Inc.............................................. 1,710,000
------------
6,306,375
------------
</TABLE>
See notes to financial statements.
21
<PAGE> 29
PERFORMANCE FUNDS TRUST
MID CAP GROWTH FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
UTILITIES -- 11.5%
63,000 Century Telephone Enterprises............................... $ 2,791,687
38,000 Cleco Corporation........................................... 1,137,625
38,000 CMS Energy Corporation...................................... 1,655,375
61,000 Conectiv, Inc............................................... 1,246,688
61,000 Energy East Corporation..................................... 2,478,124
60,000 Illinova Corporation........................................ 1,743,750
34,000 MCN Corporation............................................. 1,224,000
34,000 New England Electric System................................. 1,419,500
64,000 NIPSCO Industries, Inc...................................... 1,720,000
25,000 Oklahoma Gas & Electric Company............................. 1,340,625
46,000 Pinnacle West Capital....................................... 2,067,124
67,000 Public Service Company of New Mexico........................ 1,453,063
45,000 SCANA Corporation........................................... 1,296,563
------------
21,574,124
------------
TOTAL COMMON STOCKS (Cost $118,401,636)..................... 180,244,682
------------
MONEY MARKET MUTUAL FUND -- 1.2%
2,253,190 AIM Treasury Money Market................................... 2,253,190
------------
TOTAL MONEY MARKET MUTUAL FUND (Cost $2,253,190)............ 2,253,190
------------
U.S. TREASURY BILL -- 2.6%
5,000,000 U.S. Treasury Bill, 7/23/98................................. 4,965,600
------------
TOTAL U.S. TREASURY BILL (Cost $4,964,106).................. 4,965,600
------------
TOTAL INVESTMENTS (Cost $125,618,932)(a) -- 100.0%.......... 187,463,472
LIABILITIES IN EXCESS OF OTHER ASSETS -- 0.0%............... (49,496)
------------
TOTAL NET ASSETS -- 100.0%.................................. $187,413,976
============
</TABLE>
- ---------------
(a) At May 31, 1998, the aggregate cost of investment securities for income tax
purposes was $125,619,218. Cost for federal income tax purposes differs from
value of net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................ $65,479,349
Unrealized depreciation............................ (3,635,095)
-----------
Net unrealized appreciation........................ $61,844,254
===========
</TABLE>
(b) Non-income producing securities.
See notes to financial statements.
22
<PAGE> 30
PERFORMANCE FUNDS TRUST
THE SMALL CAP FUND
Schedule of Portfolio Investments
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- -------------------- ------
<C> <S> <C>
COMMON STOCKS -- 94.0%
ADVERTISING -- 0.7%
10,000 Catalina Marketing Corporation(b)........................... $ 452,500
------------
AUTOMOTIVE -- 0.2%
5,000 Standard Products Company................................... 146,875
------------
BUILDING PRODUCTS -- 0.2%
4,000 TJ International, Inc....................................... 115,750
------------
BUSINESS EQUIPMENT & SERVICES -- 6.9%
40,000 ADVO, Inc.(b)............................................... 1,002,500
10,000 Jack Henry & Associates..................................... 326,250
3,000 Kronos, Inc.(b)............................................. 107,250
10,000 National Computer Systems, Inc.............................. 242,500
12,000 New England Business Services, Inc.......................... 390,750
55,000 Paxar Corporation(b)........................................ 680,625
13,000 Stone & Webster, Inc........................................ 526,500
32,000 Zebra Technologies, Class A(b).............................. 1,228,000
------------
4,504,375
------------
CAPITAL GOODS -- 6.8%
35,000 Dravo Group Corporation(b).................................. 393,750
25,000 Kent Electronics Corporation(b)............................. 525,000
13,000 Lone Star Industries Corporation............................ 977,438
25,000 Manitowoc Company, Inc...................................... 1,024,999
2,835 NSC Corporation............................................. 5,760
15,000 Regal-Beloit Corporation.................................... 489,375
17,000 Texas Industries, Inc....................................... 1,009,375
------------
4,425,697
------------
COMPUTER EQUIPMENT -- 0.2%
10,000 Integrated Circuit System(b)................................ 137,813
------------
COMPUTER SOFTWARE -- 0.5%
10,000 Dialogic Corporation(b)..................................... 330,000
------------
CONSTRUCTION -- 0.7%
30,000 MDC Holdings, Inc........................................... 453,750
------------
CONSUMER DURABLES -- 1.7%
14,000 A.O. Smith Corporation...................................... 707,000
50,000 TBC Corporation(b).......................................... 403,125
------------
1,110,125
------------
CONSUMER NON-DURABLE -- 7.0%
30,000 BMC Industries, Inc......................................... 440,625
22,000 Kellwood Company............................................ 727,375
15,000 Natures Sunshine............................................ 346,875
32,000 Nautica Enterprises, Inc.(b)................................ 936,000
26,000 Russ Berrie & Company, Inc.................................. 656,500
</TABLE>
See notes to financial statements.
23
<PAGE> 31
PERFORMANCE FUNDS TRUST
THE SMALL CAP FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CONSUMER NON-DURABLE (CONTINUED)
15,000 Smithfield Foods, Inc.(b)................................... $ 405,000
15,000 St. John Knits, Inc......................................... 576,563
20,000 Wolverine World Wide, Inc................................... 493,750
------------
4,582,688
------------
CONSUMER SERVICES -- 3.9%
10,000 Bell Sports(b).............................................. 94,375
18,750 Marcus Corporation.......................................... 331,641
45,000 Merrill Corporation......................................... 1,018,125
10,000 Nelson (Thomas), Inc........................................ 129,375
20,000 Prime Hospitality Corporation(b)............................ 358,750
17,500 Valassis Communications, Inc.(b)............................ 615,781
------------
2,548,047
------------
ELECTRICAL & ELECTRONICS -- 0.6%
30,000 Unitrode Corporation(b)..................................... 391,875
------------
ENERGY -- 4.0%
22,000 Input/Output, Inc.(b)....................................... 484,000
22,000 Oceaneering International, Inc.(b).......................... 473,000
20,000 Offshore Logistics(b)....................................... 407,500
10,000 Pool Energy Services Company(b)............................. 203,750
12,600 Seitel, Inc.(b)............................................. 214,200
12,000 Tuboscope, Inc.(b).......................................... 271,500
30,000 Vintage Petroleum, Inc...................................... 543,750
------------
2,597,700
------------
FINANCIAL SERVICES -- 15.5%
17,000 Allied Group, Inc........................................... 716,125
5,000 American Bankers Insurance Group............................ 300,000
34,000 AMRESCO, Inc.(b)............................................ 1,147,500
13,000 Arthur J. Gallagher & Company............................... 560,625
13,000 Capital Re Corporation...................................... 968,500
12,000 CMAC Investment Corporation................................. 726,000
16,000 Enhance Financial Services Corporation...................... 1,042,000
18,000 Fremont General Corporation................................. 1,029,375
25,000 Frontier Insurance Group, Inc............................... 612,500
22,000 Orion Capital Corp.......................................... 1,238,874
20,000 Protective Life Corporation................................. 720,000
11,000 Provident Financial Group................................... 563,063
15,000 Selective Insurance Group, Inc.............................. 395,625
------------
10,020,187
------------
FOOD -- 0.4%
15,000 Fleming Company............................................. 285,938
------------
</TABLE>
See notes to financial statements.
24
<PAGE> 32
PERFORMANCE FUNDS TRUST
THE SMALL CAP FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
HEALTH CARE -- 11.0%
40,000 ADAC Laboratories(b)........................................ $ 795,000
45,000 Alpharma, Inc............................................... 978,750
34,000 Integrated Health Services.................................. 1,264,374
15,000 Lincare Holdings, Inc.(b)................................... 1,125,000
35,000 Mariner Health Group(b)..................................... 520,625
9,852 Paragon Health Network(b)................................... 151,475
25,000 Patterson Dental Company(b)................................. 812,500
8,600 Safeskin Corporation(b)..................................... 301,000
30,000 Sola International, Inc.(b)................................. 1,186,875
------------
7,135,599
------------
HOMEBUILDERS -- 0.8%
30,000 D. R. Horton, Inc........................................... 540,000
------------
INSURANCE -- 0.5%
10,000 Fidelity National Financial................................. 333,750
------------
MACHINE-DIVERSIFIED -- 0.3%
5,000 Applied Power, Inc.......................................... 171,250
------------
MACHINERY & EQUIPMENT -- 0.2%
5,000 Robbins & Myers, Inc........................................ 148,438
------------
METALS -- 0.4%
15,000 Intermet Corporation........................................ 292,500
------------
RAW MATERIALS -- 3.5%
6,000 Cambrex Corporation......................................... 335,625
15,000 Chemed Corporation.......................................... 552,188
6,000 Macdermid, Inc.............................................. 246,000
24,000 Mueller Industries, Inc.(b)................................. 744,000
20,000 Quaker Chemical Corporation................................. 416,250
------------
2,294,063
------------
RETAIL -- 8.1%
10,000 Cash America International.................................. 168,750
35,000 Cato Corporation............................................ 529,375
25,000 CKE Restaurants, Inc........................................ 793,750
25,000 Dress Barn, Inc.(b)......................................... 724,219
35,000 Foodmaker, Inc.(b).......................................... 590,625
20,000 Landry's Seafood Restaurants, Inc.(b)....................... 453,125
15,000 Men's Warehouse(b).......................................... 639,375
27,000 Ross Stores, Inc............................................ 1,191,374
5,000 Shopko Stores, Inc.(b)...................................... 174,375
------------
5,264,968
------------
</TABLE>
See notes to financial statements.
25
<PAGE> 33
PERFORMANCE FUNDS TRUST
THE SMALL CAP FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
SHELTER -- 1.2%
7,500 Ethan Allen Interiors, Inc.................................. $ 377,343
9,000 Oakwood Homes Corporation................................... 244,688
8,000 Ryland Group, Inc........................................... 160,500
------------
782,531
------------
TECHNOLOGY -- 11.2%
10,000 Alliant Techsystems, Inc.(b)................................ 645,000
35,000 BE Aerospace, Inc.(b)....................................... 1,011,718
35,000 Benchmark Electronics, Inc.(b).............................. 706,563
10,000 Cube Microsystems, Inc.(b).................................. 195,625
45,000 Digital Microwave(b)........................................ 434,531
35,000 Kemet Corporation(b)........................................ 563,281
25,000 Kulicke & Soffa Industries(b)............................... 428,125
35,000 Microage, Inc.(b)........................................... 472,500
25,000 Novellus Systems(b)......................................... 945,312
40,000 Plexus Corporation(b)....................................... 860,000
4,000 Progress Software Corporation(b)............................ 129,500
20,000 Tech Data Corporation(b) 812,500
4,000 Watkins-Johnson Company..................................... 100,750
------------
7,305,405
------------
TEXTILES -- 0.5%
7,000 Pillowtex Corporation....................................... 327,250
------------
TRANSPORTATION & SHIPPING -- 2.8%
35,000 Arkansas Best Corporation(b)................................ 341,250
21,000 Comair Holdings, Inc........................................ 559,125
12,500 M.S. Carriers, Inc.(b)...................................... 373,438
17,000 U.S. Freightways Corporation................................ 535,500
------------
1,809,313
------------
UTILITIES -- 4.2%
11,000 Central Hudson Gas and Electric Corporation................. 480,563
13,000 Commonwealth Energy Systems Company......................... 493,999
5,400 Connecticut Energy Corporation.............................. 156,938
15,000 Eastern Utilities Association............................... 380,625
9,000 Orange & Rockland Utilities................................. 480,938
11,500 Piedmont Natural Gas Company, Inc........................... 364,406
12,500 TNP Enterprises, Inc........................................ 407,031
------------
2,764,500
------------
TOTAL COMMON STOCKS (Cost $60,671,424)...................... 61,272,887
------------
</TABLE>
See notes to financial statements.
26
<PAGE> 34
PERFORMANCE FUNDS TRUST
THE SMALL CAP FUND
Schedule of Portfolio Investments (continued)
May 31, 1998
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- -------------------- ------
<C> <S> <C>
MONEY MARKET MUTUAL FUNDS -- 5.7%
1,714,100 Aim Treasury Money Market................................... $ 1,714,100
2,000,000 Dreyfus Treasury Cash Management............................ 2,000,000
------------
TOTAL MONEY MARKET MUTUAL FUNDS (Cost $3,714,100)........... 3,714,100
------------
TOTAL INVESTMENTS (Cost $64,385,524)(a) -- 99.7%............ 64,986,987
------------
OTHER ASSETS IN EXCESS OF LIABILITIES 0.3%.................. 167,257
------------
TOTAL NET ASSETS -- 100.0%.................................. $ 65,154,244
============
</TABLE>
- ---------------
(a) At May 31, 1998, the aggregate cost of investment securities for federal
income tax purposes differs from the value of net unrealized appreciation of
securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 5,588,707
Unrealized depreciation........................... (4,987,244)
------------
Net unrealized appreciation....................... $ 601,463
============
</TABLE>
(b) Non-income producing securities.
See notes to financial statements.
27
<PAGE> 35
PERFORMANCE FUNDS TRUST
Statements of Assets and Liabilities
May 31, 1998
<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 (cost $382,610,783,
$122,302,362 and $117,533,702, respectively)......... $382,610,783 $122,789,093 $121,399,020
Repurchase agreements, at value........................ 41,039,863 -- --
Dividends and interest receivable...................... 1,200,824 1,049,502 1,975,674
Receivable for Fund shares sold........................ 669 189,864 1,737
Deferred organization costs............................ 3,738 -- --
Prepaid expenses and other assets...................... 14,447 -- --
------------ ------------ ------------
Total Assets......................................... 424,870,324 124,028,459 123,376,431
------------ ------------ ------------
LIABILITIES:
Dividends payable...................................... 1,955,539 558,470 585,364
Payable for Fund shares redeemed....................... -- -- 17,500
Advisory fees payable.................................. 56,720 41,723 51,413
Administrative services fees payable................... 4,136 4,998 4,706
Distribution fees payable (Consumer Service Class)..... 20,618 634 854
Custodian fees payable................................. 15,144 4,172 4,145
Other accrued expenses................................. -- 34,873 3,965
------------ ------------ ------------
Total Liabilities.................................. 2,052,157 644,870 667,947
------------ ------------ ------------
NET ASSETS:..................................... $422,818,167 $123,383,589 $122,708,484
============ ============ ============
NET ASSETS CONSIST OF:
Shares of beneficial interest, at par value............ $ 422,820 $ 12,529 $ 11,863
Additional paid-in capital............................. 422,406,487 125,587,305 123,373,651
Accumulated undistributed (distributions in excess of)
net investment income................................ 5,829 (25,116) (46,474)
Accumulated net realized loss on investments........... (16,969) (2,677,860) (4,495,874)
Net unrealized appreciation from investments........... -- 486,731 3,865,318
------------ ------------ ------------
Total Net Assets................................... $422,818,167 $123,383,589 $122,708,484
============ ============ ============
SHARES OF BENEFICIAL INTEREST:
INSTITUTIONAL CLASS:
Net Assets........................................... $349,023,832 $120,202,786 $118,743,425
Shares of beneficial interest outstanding............ 349,023,170 12,206,355 11,478,978
============ ============ ============
Net Asset Value, offering and redemption price per
share.............................................. $1.00 $9.85 $10.34
----- ----- --------
----- ----- --------
CONSUMER SERVICE CLASS:
Net Assets........................................... $ 73,794,335 $ 3,180,803 $ 3,965,059
Shares of beneficial interest outstanding............ 73,796,405 322,942 383,601
============ ============ ============
Net Asset Value, offering and redemption price per
share.............................................. $1.00 $9.85 $10.34
----- ----- --------
----- ----- --------
</TABLE>
See notes to financial statements.
28
<PAGE> 36
PERFORMANCE FUNDS TRUST
Statements of Assets and Liabilities (continued)
May 31, 1998
<TABLE>
<CAPTION>
LARGE CAP MID CAP SMALL CAP
EQUITY FUND GROWTH FUND FUND
------------ ------------ ---------------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value (cost $151,223,826,
$125,618,932 and $64,385,524, respectively).......... $301,085,474 $187,463,472 $64,986,987
Dividends and interest receivable...................... 538,874 190,501 45,107
Receivable for Fund shares sold........................ 68,055 29,351 205,364
Deferred organization costs............................ -- 7,327 8,590
Prepaid expenses and other assets...................... -- -- --
------------ ------------ -----------
Total Assets....................................... 301,692,403 187,690,651 65,246,048
------------ ------------ -----------
LIABILITIES:
Dividends payable...................................... 370,185 108,858 --
Payable for Fund shares redeemed....................... 39,039 1,400 --
Advisory fees payable.................................. 156,170 122,297 54,967
Administrative services fees payable................... 11,814 6,976 2,185
Distribution fees payable (Consumer Service Class)..... 8,240 4,174 758
Custodian fees payable................................. 10,398 6,523 2,199
Other accrued expenses................................. 36,882 26,447 31,695
------------ ------------ -----------
Total Liabilities.................................. 632,728 276,675 91,804
------------ ------------ -----------
NET ASSETS...................................... $301,059,675 $187,413,976 $65,154,244
============ ============ ===========
NET ASSETS CONSIST OF:
Shares of beneficial interest, at par value............ $ 12,054 $ 9,322 $ 6,566
Additional paid-in capital............................. 138,254,897 119,754,812 63,942,334
Accumulated distributions in excess of net investment
income............................................... (30,415) (5,977) --
Accumulated undistributed net realized gain on
investments.......................................... 12,961,491 5,811,279 603,881
Net unrealized appreciation from investments........... 149,861,648 61,844,540 601,463
------------ ------------ -----------
Total Net Assets................................... $301,059,675 $187,413,976 $65,154,244
============ ============ ===========
SHARES OF BENEFICIAL INTEREST:
INSTITUTIONAL CLASS:
Net Assets........................................... $259,585,418 $168,115,998 $61,449,878
Shares of beneficial interest outstanding............ 10,393,041 8,361,763 6,192,351
============ ============ ===========
Net Asset Value, offering and redemption price per
share.............................................. $24.98 $20.11 $9.92
------ ------ -------
------ ------ -------
CONSUMER SERVICE CLASS:
Net Assets........................................... $ 41,474,257 $ 19,297,978 $ 3,704,366
Shares of beneficial interest outstanding............ 1,660,726 960,071 373,786
============ ============ ===========
Net Asset Value, offering and redemption price per
share.............................................. $24.97 $20.10 $9.91
------ ------ -------
------ ------ -------
</TABLE>
See notes to financial statements.
29
<PAGE> 37
PERFORMANCE FUNDS TRUST
Statements of Operations
For the Year Ended May 31, 1998
<TABLE>
<CAPTION>
MONEY SHORT TERM INTERMEDIATE
MARKET GOVERNMENT TERM GOVERNMENT
FUND INCOME FUND INCOME FUND
----------- ----------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest............................................... $25,477,139 $7,490,797 $ 7,391,468
Dividends.............................................. 61,208 73,885 59,117
----------- ---------- -----------
Total Investment Income................................ 25,538,347 7,564,682 7,450,585
----------- ---------- -----------
EXPENSES:
Advisory fees.......................................... 1,358,311 490,543 572,600
Administrative services fees........................... 670,195 180,995 168,816
Distribution fees (Consumer Service Class)............. 288,789 4,034 5,186
Custodian fees......................................... 181,734 49,055 45,809
Audit and legal fees................................... 92,084 13,084 19,252
Fund accounting fees................................... 33,213 17,467 32,747
Transfer agency fees................................... 43,980 6,121 11,546
Organization expenses.................................. 9,297 4,864 4,864
Trustees' fees and expenses............................ 40,020 11,238 10,115
Other expenses......................................... 148,301 11,369 18,629
----------- ---------- -----------
Total Expenses....................................... 2,865,924 788,770 889,564
Less: Expenses waived by Advisor and/or
Administrator...................................... (1,082,548) -- (57,262)
----------- ---------- -----------
Total Net Expenses................................... 1,783,376 788,770 832,302
----------- ---------- -----------
NET INVESTMENT INCOME/(LOSS)........................... 23,754,971 6,775,912 6,618,283
----------- ---------- -----------
NET REALIZED/UNREALIZED GAIN ON INVESTMENTS:
Net realized gain/(loss) on investments................ (7,755) 709,547 123,368
Net change in unrealized appreciation/(depreciation) on
investments.......................................... -- 552,544 4,477,874
----------- ---------- -----------
Net realized/unrealized gain/(loss) on investments..... (7,755) 1,262,091 4,601,242
----------- ---------- -----------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS............................................. $23,747,216 $8,038,003 $11,219,525
=========== ========== ===========
</TABLE>
See notes to financial statements.
30
<PAGE> 38
PERFORMANCE FUNDS TRUST
Statements of Operations (continued)
For the Year Ended May 31, 1998
<TABLE>
<CAPTION>
LARGE CAP MID CAP SMALL CAP
EQUITY FUND GROWTH FUND Fund(a)
----------- ----------- ----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest.................................................. $ 112,237 $ 173,322 $ --
Dividends (net of foreign withholding tax of $30,239, $0
and $0, respectively)................................... 4,731,416 2,267,952 344,349
----------- ----------- ----------
Total Investment Income................................... 4,843,653 2,441,274 344,349
----------- ----------- ----------
EXPENSES:
Advisory fees............................................. 1,671,113 1,240,502 330,599
Administrative services fees.............................. 410,694 243,636 48,141
Distribution fees (Consumer Service Class)................ 73,719 30,841 2,469
Custodian fees............................................ 111,408 65,593 13,224
Audit and legal fees...................................... 72,682 35,488 19,551
Fund accounting fees...................................... 40,579 34,035 26,716
Transfer agency fees...................................... 87,004 40,542 3,960
Organization expenses..................................... 4,864 9,575 1,508
Trustees' fees and expenses............................... 25,096 14,651 2,785
Other expenses............................................ 113,662 74,730 34,925
----------- ----------- ----------
Total Expenses.......................................... 2,610,821 1,789,593 483,878
----------- ----------- ----------
NET INVESTMENT INCOME/(LOSS).............................. 2,232,832 651,681 (139,529)
----------- ----------- ----------
NET REALIZED/UNREALIZED GAIN ON INVESTMENTS:
Net realized gain/(loss) on investments................... 13,921,927 13,580,881 743,590
Net change in unrealized appreciation/(depreciation) on
investments............................................. 60,709,330 22,747,932 601,463
----------- ----------- ----------
Net realized/unrealized gain/(loss) on investments........ 74,631,257 36,328,813 1,345,053
----------- ----------- ----------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $76,864,089 $36,980,494 $1,205,524
=========== =========== ==========
</TABLE>
- ---------------
(a) Fund commenced operations on October 1, 1997.
See notes to financial statements.
31
<PAGE> 39
PERFORMANCE FUNDS TRUST
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
SHORT TERM GOVERNMENT INTERMEDIATE TERM
MONEY MARKET FUND INCOME FUND GOVERNMENT INCOME FUND
----------------------------- ----------------------------- ---------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
1998 1997 1998 1997 1998 1997
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income/(loss)....... $ 23,754,971 $ 21,840,078 $ 6,775,912 $ 6,631,180 $ 6,618,283 $ 5,292,333
Net realized gain/(loss) on
investments...................... (7,755) 10,495 709,547 (695,641) 123,368 (114,007)
Net change in unrealized
appreciation/ (depreciation) on
investments...................... -- -- 552,544 471,301 4,477,874 1,010,690
------------- ------------- ------------- ------------- ------------ ------------
Net increase/(decrease) in net
assets resulting from
operations....................... 23,747,216 21,850,573 8,038,003 6,406,840 11,219,525 6,189,016
------------- ------------- ------------- ------------- ------------ ------------
Distributions to shareholders from:
Net investment income
Institutional Class.............. (17,909,471) (18,776,904) (6,690,972) (6,564,119) (6,587,342) (5,059,433)
Consumer Service Class........... (5,845,500) (3,063,174) (84,940) (67,062) (115,823) (101,543)
------------- ------------- ------------- ------------- ------------ ------------
(23,754,971) (21,840,078) (6,775,912) (6,631,181) (6,703,165) (5,160,976)
------------- ------------- ------------- ------------- ------------ ------------
In excess of net investment income
Institutional Class.............. -- -- -- -- (45,724) --
Consumer Service Class........... -- -- -- -- (750) --
------------- ------------- ------------- ------------- ------------ ------------
-- -- -- -- (46,474) --
------------- ------------- ------------- ------------- ------------ ------------
Net realized gain on investments
Institutional Class.............. -- (13,881) -- -- -- --
------------- ------------- ------------- ------------- ------------ ------------
Net decrease in net assets
resulting from distributions... (23,754,971) (21,853,959) (6,775,912) (6,631,181) (6,749,639) (5,160,976)
------------- ------------- ------------- ------------- ------------ ------------
Shares of beneficial interest:
Proceeds from shares issued
Institutional Class.............. 694,995,401 673,536,254 18,548,663 39,147,025 38,379,424 30,358,536
Consumer Service Class........... 210,472,260 200,861,942 2,760,371 403,772 3,318,154 125,232
------------- ------------- ------------- ------------- ------------ ------------
905,467,661 874,398,196 21,309,034 39,550,797 41,697,578 30,483,768
------------- ------------- ------------- ------------- ------------ ------------
Proceeds from reinvestment of
dividends
Institutional Class.............. 67,649 50,627 4,951,318 4,778,814 4,721,379 3,306,749
Consumer Service Class........... 5,461,030 2,257,747 57,098 61,335 77,338 87,190
------------- ------------- ------------- ------------- ------------ ------------
5,528,679 2,308,374 5,008,416 4,840,149 4,798,717 3,393,939
------------- ------------- ------------- ------------- ------------ ------------
Cost of shares redeemed
Institutional Class.............. (666,771,987) (719,812,199) (30,975,873) (23,892,369) (23,009,377) (18,107,860)
Consumer Service Class........... (234,357,245) (136,114,374) (852,229) (736,148) (955,677) (941,349)
------------- ------------- ------------- ------------- ------------ ------------
(901,129,232) (855,926,573) (31,828,102) (24,628,517) (23,965,054) (19,049,209)
------------- ------------- ------------- ------------- ------------ ------------
Net increase/(decrease) in net
assets from shares of beneficial
interest transactions............ 9,867,108 20,779,997 (5,510,652) 19,762,429 22,531,241 14,828,498
------------- ------------- ------------- ------------- ------------ ------------
Total increase/(decrease) in net
assets............................. 9,859,353 20,776,611 (4,248,561) 19,538,088 27,001,127 15,856,538
NET ASSETS:
Beginning of period................ 412,958,814 392,182,203 127,632,150 108,094,062 95,707,357 79,850,819
------------- ------------- ------------- ------------- ------------ ------------
End of period...................... $ 422,818,167 $ 412,958,814 $ 123,383,589 $ 127,632,150 $122,708,484 $ 95,707,357
============= ============= ============= ============= ============ ============
</TABLE>
See notes to financial statements.
32
<PAGE> 40
PERFORMANCE FUNDS TRUST
Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
SMALL CAP
LARGE CAP EQUITY FUND MID CAP GROWTH FUND FUND
--------------------------- --------------------------- ------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
1998 1997 1998 1997 1998(a)
---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income/(loss).......................... $ 2,232,832 $ 2,798,324 $ 651,681 $ 893,163 $ (139,529)
Net realized gain/(loss) on investments............... 13,921,927 1,164,271 13,580,881 1,922,390 743,590
Net change in unrealized appreciation/(depreciation)
on investments...................................... 60,709,330 48,227,378 22,747,932 19,983,182 601,463
------------ ------------ ------------ ------------ -----------
Net increase in net assets resulting from
operations........................................ 76,864,089 52,189,973 36,980,494 22,798,735 1,205,524
------------ ------------ ------------ ------------ -----------
Distributions to shareholders from:
Net investment income
Institutional Class................................. (2,059,592) (2,692,406) (639,145) (870,028) (180)
Consumer Service Class.............................. (165,538) (173,421) (19,304) (17,854) --
------------ ------------ ------------ ------------ -----------
(2,225,130) (2,865,827) (658,449) (887,882) (180)
------------ ------------ ------------ ------------ -----------
In excess of net investment income
Institutional Class................................. (22,090) -- -- -- --
Consumer Service Class.............................. (8,326) -- (5,977) -- --
------------ ------------ ------------ ------------ -----------
(30,416) -- (5,977) -- --
------------ ------------ ------------ ------------ -----------
Net realized gain on investments
Institutional Class................................. (1,889,861) (2,663,128) (7,652,175) (2,164,608) --
Consumer Service Class.............................. (225,130) (201,637) (599,526) (50,169) --
------------ ------------ ------------ ------------ -----------
(2,114,991) (2,864,765) (8,251,701) (2,214,777) --
------------ ------------ ------------ ------------ -----------
Net decrease in net assets resulting from
distributions..................................... (4,370,537) (5,730,592) (8,916,127) (3,102,659) (180)
------------ ------------ ------------ ------------ -----------
Shares of beneficial interest:
Proceeds from shares issued
Institutional Class................................. 37,952,631 71,830,680 34,283,679 36,918,030 64,042,780
Consumer Service Class.............................. 18,685,066 8,069,305 13,519,294 4,080,489 3,880,547
------------ ------------ ------------ ------------ -----------
56,637,697 79,899,985 47,802,973 40,998,519 67,923,327
------------ ------------ ------------ ------------ -----------
Proceeds from reinvestment of dividends
Institutional Class................................. 3,086,525 4,115,005 7,069,524 2,591,733 163
Consumer Service Class.............................. 386,410 358,638 616,073 64,970 --
------------ ------------ ------------ ------------ -----------
3,472,935 4,473,643 7,685,597 2,656,703 163
------------ ------------ ------------ ------------ -----------
Cost of shares redeemed
Institutional Class................................. (79,937,041) (25,533,693) (24,672,370) (14,267,383) (3,812,494)
Consumer Service Class.............................. (4,592,259) (2,289,707) (2,408,822) (283,162) (162,096)
------------ ------------ ------------ ------------ -----------
(84,529,300) (27,823,400) (27,081,192) (14,550,545) (3,974,590)
------------ ------------ ------------ ------------ -----------
Net increase/(decrease) in net assets from shares of
beneficial interest transactions.................... (24,418,668) 56,550,228 28,407,378 29,104,677 63,948,900
------------ ------------ ------------ ------------ -----------
Total increase in net assets........................... 48,074,884 103,009,609 56,471,745 48,800,753 65,154,244
NET ASSETS:
Beginning of period................................... 252,984,791 149,975,182 130,942,231 82,141,478 --
------------ ------------ ------------ ------------ -----------
End of period......................................... $301,059,675 $252,984,791 $187,413,976 $130,942,231 $65,154,244
============ ============ ============ ============ ===========
</TABLE>
- ---------------
(a) Fund commenced operations on October 1, 1997.
See notes to financial statements.
33
<PAGE> 41
PERFORMANCE FUNDS TRUST
Notes to Financial Statements -- May 31, 1998
1. 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 seven separate
portfolios: The U.S. Treasury Money Market Fund, The Money Market Fund, The
Short Term Government Income Fund, The Intermediate Term Government Income Fund,
The Large Cap Equity Fund (formerly, the Equity Fund), The Mid Cap Growth Fund
and The Small Cap Fund (commenced operations on October 1, 1997), collectively
(the "Funds"), or individually (the "Fund"), each with two classes of shares,
the Institutional Class and the Consumer Service Class. The classes differ
primarily with respect to the level of Distribution Fees borne by each class.
Currently, six of the portfolios are active and one, The U.S. Treasury Money
Market Fund, has not yet commenced operations.
The Funds' investment objectives are as follows:
The Money Market Fund -- as high a level of current income as is
consistent with preservation of capital and liquidity.
The Short Term Government Income Fund -- as high a level of current
income as is consistent with limiting the risk of potential loss.
The Intermediate Term Government Income Fund -- a high level of current
income, with a secondary objective of total return.
The Large Cap Equity Fund -- long-term capital appreciation by investing
primarily in common stocks of large, well-established U.S. companies
with market capitalization exceeding $1 billion at the time of purchase.
The Mid Cap Growth Fund -- to achieve growth of capital by attempting to
outperform the S&P MidCap Index.
The Small Cap Fund -- long-term capital appreciation by investing
primarily in the universe of companies comprising the S&P Small Cap 600
Index.
2. Significant Accounting Policies. The preparation of financial
statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual amounts could differ from
those estimates. The following is a summary of significant accounting policies
consistently followed by the Trust in the preparation of its financial
statements:
Security Valuation. Securities listed on a national exchange or
exchanges for which market quotations are available are valued at their
last quoted sale price on each business day. If there is no such reported
sale, the most recently quoted bid price is used. Over-the-counter
securities are valued on the basis of the bid price at the close of
business on each business day. The Money Market Fund values its securities
at amortized cost, which approximates market value. Securities for which no
market quotation is readily available are valued at fair value as
determined in good faith under the direction of the Board of Trustees.
Security Transactions and Related Investment Income. Security
transactions are accounted for on the trade date with realized gain or loss
on the sale of investments determined by using the identified cost method.
Corporate actions (including cash dividends) are recorded on the ex-date or
as soon after the ex-date as the fund becomes aware of such action, net of
any non-refundable tax withholdings. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
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
34
<PAGE> 42
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- May 31, 1998
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 be
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.
Determination of Net Asset Value and Calculation of
Expenses. Expenses specific to an individual Fund are charged to that
Fund, while the expenses that are attributable to more than one fund of the
Trust are allocated among the respective funds. 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 shares outstanding attributed to each class at the beginning
of each day. Distribution expenses are solely borne by and charged to the
Consumer Service Class.
Dividends and Distributions. The Money Market, The Short Term
Government Income and The Intermediate Term Government Income Funds declare
dividends daily and pay those dividends monthly. The Large Cap Equity, The
Mid Cap Growth and The Small Cap Funds declare and pay dividends monthly.
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 amounts of dividends from net investment income and of
distributions from net realized gains 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 composition
of net assets based on their federal tax-basis treatment; temporary
differences do not require reclassification.
Dividends and distributions to shareholders which exceed net
investment income and net realized capital gains for financial reporting
purposes but not for tax purposes are reported as distributions in excess
of net investment income or distributions in excess of net realized gains.
To the extent they exceed net investment income and net realized gains for
tax purposes, they are reported as distributions of capital.
As of May 31, 1998, the following reclassification has been made to
increase/(decrease) such accounts with offsetting adjustments made to
capital:
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED NET UNDISTRIBUTED NET
INVESTMENT REALIZED GAIN/(LOSS)
INCOME/(LOSS) ON INVESTMENTS
----------------- --------------------
<S> <C> <C>
The Small Cap Fund.................................. 139,709 (139,709)
</TABLE>
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.
3. Advisory and Custodian Agreements. 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 a
fee computed daily and paid monthly, based on average
35
<PAGE> 43
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- May 31, 1998
daily net assets, at the following annual rates: The Money Market Fund, 0.30%;
The Short Term Government Income Fund, 0.40%; The Intermediate Term Government
Income Fund, 0.50%; The Large Cap Equity Fund, 0.60%; The Mid Cap Growth Fund,
0.75%; and The Small Cap Fund, 1.00%.
For the year ended May 31, 1998, Trustmark waived advisory fees of $679,155
and $57,262 for The Money Market Fund and Intermediate Term Government Income
Fund, respectively.
Under the Custodian Agreement, Trustmark is the Custodian of the Funds'
cash and securities. For these services, Trustmark is entitled to a fee computed
daily and paid monthly, based on average daily net assets, at the annual rate of
0.04%. For the year ended May 31, 1998, Trustmark earned the custodian fees
shown in the statement of operations.
4. Administration, Distribution, Fund Accounting and Transfer Agency
Agreements. BISYS Fund Services ("BISYS LP"), a wholly-owned subsidiary of The
BISYS Group, Inc., is an Ohio limited partnership. BISYS LP, with whom certain
officers and trustees of the Funds are affiliated, serves as the Trust's
administrator and assists the Trust in all aspects of its administration and
operation. Such officers and trustees are paid no fees directly by the Funds for
serving as officers and trustees of the Funds.
The Administrator is entitled to a fee, computed daily and paid monthly, at
an annual rate of 0.15% of the average net assets of the Funds. For the year
ended May 31, 1998, BISYS LP waived administrator fees of $403,393 for The Money
Market Fund.
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, pay fees to
Performance Funds Distributor, Inc. (the "Distributor"), an indirect wholly
owned subsidiary of The BISYS Group, Inc., up to an annual rate of 0.35% of the
average daily net assets attributable to such shares for costs and expenses of
the Distributor in connection with the distribution of the Consumer Service
Class shares. No such fees will be paid by the Institutional Class. For the year
ended May 31, 1998, the fees incurred amounted to 0.25% of the average daily net
assets of each Fund's Consumer Service Class of shares.
Under the terms of the fund accounting agreement, BISYS LP is entitled to
receive an annual fee of $30,000 per fund and is reimbursed for certain
out-of-pocket expenses incurred in providing fund accounting services.
Under the terms of the transfer agency agreement, BISYS LP is entitled to
receive an annual fee of $15.00 per account and is reimbursed for certain
out-of-pocket expenses incurred in providing transfer agency services.
5. Security Purchases and Sales. Purchases and sales of securities for
the year ended May 31, 1998, other than short term securities, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
The Short Term Government Income Fund..................... $87,265,957 $72,136,457
The Intermediate Term Government Income Fund.............. 67,520,872 39,871,802
The Large Cap Equity Fund................................. 12,816,058 31,060,034
The Mid Cap Growth Fund................................... 51,036,353 32,073,327
The Small Cap Fund........................................ 65,347,976 5,420,108
</TABLE>
36
<PAGE> 44
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- May 31, 1998
6. Shares of Beneficial Interest. The Trust is authorized to issue an
unlimited number of shares of beneficial interest with a par value of $0.001 per
share. Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
SHORT TERM GOVERNMENT
MONEY MARKET FUND INCOME FUND
--------------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, MAY 31, MAY 31, MAY 31,
1998 1997 1998 1997
------------ ------------ ---------- ----------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS
Shares sold................................................. 694,995,401 673,527,201 1,887,533 3,998,186
Shares issued in reinvestment of distributions.............. 67,649 50,629 504,025 489,110
------------ ------------ ---------- ----------
695,063,050 673,577,830 2,391,558 4,487,296
Shares redeemed............................................. (666,771,987) (719,812,099) (3,155,517) (2,452,500)
------------ ------------ ---------- ----------
Net increase (decrease) in shares........................... 28,291,063 (46,234,269) (763,959) 2,034,796
============ ============ ========== ==========
CONSUMER SERVICE CLASS
Shares sold................................................. 210,472,260 200,861,148 280,309 41,252
Shares issued in reinvestment of distributions.............. 5,461,030 2,257,747 5,810 6,276
------------ ------------ ---------- ----------
215,933,290 203,118,895 286,119 47,528
Shares redeemed............................................. (234,357,245) (136,114,373) (86,727) (75,497)
------------ ------------ ---------- ----------
Net increase (decrease) in shares........................... (18,423,955) 67,004,522 199,392 (27,969)
============ ============ ========== ==========
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE TERM
GOVERNMENT INCOME FUND LARGE CAP EQUITY FUND
--------------------------- -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, MAY 31, MAY 31, MAY 31,
1998 1997 1998 1997
------------ ------------ ---------- ----------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS
Shares sold................................................. 3,787,107 3,071,378 1,712,431 4,341,229
Shares issued in reinvestment of distributions.............. 462,986 333,451 142,827 249,397
------------ ------------ ---------- ----------
4,250,093 3,404,829 1,855,258 4,590,626
Shares redeemed............................................. (2,259,944) (1,826,500) (3,646,925) (1,568,739)
------------ ------------ ---------- ----------
Net increase (decrease) in shares........................... 1,990,149 1,578,329 (1,791,667) 3,021,887
============ ============ ========== ==========
CONSUMER SERVICE CLASS
Shares sold................................................. 322,546 12,702 827,432 492,606
Shares issued in reinvestment of distributions.............. 7,586 8,790 17,747 21,683
------------ ------------ ---------- ----------
330,132 21,492 845,179 514,289
Shares redeemed............................................. (94,109) (95,285) (203,755) (137,774)
------------ ------------ ---------- ----------
Net increase (decrease) in shares........................... 236,023 (73,793) 641,424 376,515
============ ============ ========== ==========
</TABLE>
37
<PAGE> 45
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- May 31, 1998
<TABLE>
<CAPTION>
SMALL CAP
MID CAP GROWTH FUND FUND
--------------------------- ------------
YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 31, MAY 31, MAY 31,
1998 1997 1998*
------------ ------------ ------------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS
Shares sold................................................. 1,782,027 2,558,236 6,582,400
Shares issued in reinvestment of distributions.............. 369,778 175,821 17
------------ ------------ ----------
2,151,805 2,734,057 6,582,417
Shares redeemed............................................. (1,271,150) (997,066) (390,066)
------------ ------------ ----------
Net increase (decrease) in shares........................... 880,655 1,736,991 6,192,351
============ ============ ==========
CONSUMER SERVICE CLASS
Shares sold................................................. 697,248 266,169 390,048
Shares issued in reinvestment of distributions.............. 32,187 4,397 --
------------ ------------ ----------
729,435 270,566 390,048
Shares redeemed............................................. (122,941) (19,298) (16,263)
------------ ------------ ----------
Net increase (decrease) in shares........................... 606,494 251,268 373,785
============ ============ ==========
</TABLE>
- ---------------
* Fund commenced operations on October 1, 1997 to May 31, 1998.
7. Concentration of Credit Risk. In the pursuit of its minimum credit risk
policy, The 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.
At May 31, 1998, The Money Market Fund had a concentration in excess of 10%
of its net assets in the Automotive industry (14.10%).
8. Federal Income Taxes. It is the policy of each Fund to qualify or
continue to qualify as a regulated investment company by complying with the
provisions available to certain investment companies, as defined in applicable
sections of the Internal Revenue Code, and to make distributions of net
investment income and net realized capital gains sufficient to relieve it from
all, or substantially all, federal income taxes.
At May 31, 1998, the following funds had net capital loss carryforwards to
offset future net capital gains, if any, to the extent provided by the Treasury
regulations:
<TABLE>
<CAPTION>
AMOUNT EXPIRES
------ -------
<S> <C> <C>
The Money Market Fund $ 16,528 2006
The Short Term Government Income Fund 2,081,922 2003
595,936 2005
The Intermediate Term Government Income Fund 4,297,671 2003
114,007 2005
</TABLE>
To the extent that these carryforwards are used to offset future capital
gains, it is probable that the gains so offset will not be distributed to
shareholders.
38
<PAGE> 46
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- May 31, 1998
9. Federal Income Taxes Information (unaudited). During the fiscal year
ended May 31, 1998, the Funds declared mid term capital gain distributions and
long term capital gain distributions as follows:
<TABLE>
<CAPTION>
MID-TERM LONG-TERM
28% 20%
-------- ---------
<S> <C> <C>
The Large Cap Equity Fund................................... $1,164,107 $ 950,884
The Mid Cap Growth Fund..................................... 989,387 5,039,784
</TABLE>
For corporate shareholders the following percentage of the total ordinary
income distributions paid during the fiscal year ended May 31, 1998 qualify for
the corporate dividend received deduction for the following funds:
<TABLE>
<CAPTION>
PERCENTAGE
----------
<S> <C>
The Large Cap Equity Fund......................... 100.00%
The Mid Cap Growth Fund........................... 71.74%
The Small Cap Fund................................ 30.29%
</TABLE>
Capital losses incurred after October 31, within a Fund's fiscal year are
deemed to arise on the first business day of the following fiscal year for tax
purposes. The following Funds have incurred and will elect to defer such capital
losses:
<TABLE>
<CAPTION>
POST-OCTOBER
CAPITAL LOSSES
--------------
<S> <C>
The Money Market Fund........................... $441
</TABLE>
39
<PAGE> 47
PERFORMANCE FUNDS TRUST
MONEY MARKET FUND
Financial Highlights
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
1998 1997 1996 1995 1994*
INSTITUTIONAL CLASS ------------ -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $1.00 $1.00 $1.00 $1.00 $1.00
------ ---- ---- ---- ----
Income from Investment Operations:
Net investment income/(loss).............................. 0.05 0.05 0.05 0.05 0.02
------ ---- ---- ---- ----
Distributions to shareholders from:
Net investment income..................................... (0.05) (0.05) (0.05) (0.05) (0.02)
------ ---- ---- ---- ----
Net Asset Value, End of Period.............................. $1.00 $1.00 $1.00 $1.00 $1.00
------ ---- ---- ---- ----
------ ---- ---- ---- ----
Total Return................................................ 5.43% 5.34% 5.60% 5.27% 2.17%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands).................. $349,024 $320,732 $366,966 $324,942 $139,157
Net investment income before waivers/reimbursements....... 5.07% 4.94% 5.12% 4.91% 2.77%**
Net investment income net of waivers/reimbursements....... 5.31% 5.20% 5.42% 5.27% 3.30%**
Expenses before waivers/reimbursements.................... 0.57% 0.51% 0.54% 0.59% 0.68%**
Expenses net of waivers/reimbursements.................... 0.33% 0.25% 0.24% 0.23% 0.15%**
CONSUMER SERVICE CLASS
NET ASSET VALUE, BEGINNING OF PERIOD........................ $1.00 $1.00 $1.00 $1.00 $1.00
------ ---- ---- ---- ----
Income from Investment Operations:
Net investment income/(loss).............................. 0.05 0.04 0.05 0.05 0.02
------ ---- ---- ---- ----
Distributions to shareholders from:
Net investment income..................................... (0.05) (0.04) (0.05) (0.05) (0.02)
------ ---- ---- ---- ----
Net Asset Value, End of Period.............................. $1.00 $1.00 $1.00 $1.00 $1.00
------ ---- ---- ---- ----
------ ---- ---- ---- ----
Total return................................................ 5.18% 5.07% 5.33% 5.02% 2.03%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands).................. $73,794 $92,220 $25,216 $3,564 $797
Net investment income before waivers/reimbursements....... 4.82% 5.13% 4.87% 4.66% 2.52%**
Net investment income net of waivers/reimbursements....... 5.06% 5.23% 5.17% 5.02% 3.05%**
Expenses before waivers/reimbursements.................... 0.82% 0.48% 0.79% 0.84% 0.93%**
Expenses net of waivers/reimbursements.................... 0.58% 0.38% 0.49% 0.48% 0.40%**
</TABLE>
* Fund commenced operations on September 30, 1993.
** Annualized.
See notes to financial statements.
40
<PAGE> 48
PERFORMANCE FUNDS TRUST
SHORT TERM GOVERNMENT INCOME FUND
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
1998 1997 1996 1995 1994
INSTITUTIONAL CLASS -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $9.75 $9.75 $9.84 $9.77 $10.10
---- ---- ---- ---- -----
Income from Investment Operations:
Net investment income/(loss).............................. 0.54 0.55 0.54 0.53 0.40
Net realized and unrealized gain/(loss) on investments.... 0.10 (0.01) (0.09) 0.07 (0.25)
---- ---- ---- ---- -----
Total from investment operations............................ 0.64 0.54 0.45 0.60 0.15
---- ---- ---- ---- -----
Distributions to shareholders from:
Net investment income..................................... (0.54) (0.54) (0.54) (0.53) (0.40)
Net realized gain on investments.......................... -- -- -- -- (0.05)
In excess of net realized gain on investments............. -- -- -- -- (0.03)
---- ---- ---- ---- -----
Total distributions to shareholders......................... (0.54) (0.54) (0.54) (0.53) (0.48)
---- ---- ---- ---- -----
Net Asset Value, End of Period.............................. $9.85 $9.75 $9.75 $9.84 $9.77
---- ---- ---- ---- -----
---- ---- ---- ---- -----
Total Return................................................ 6.73% 5.70% 4.65% 6.37% 1.49%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands).................. $120,203 $126,428 $106,617 $104,730 $111,657
Net investment income before waivers/reimbursements....... 5.53% 5.63% 5.47% 5.40% 3.95%
Net investment income net of waivers/reimbursements....... 5.53% 5.63% 5.48% 5.43% 4.00%
Expenses before waivers/reimbursements.................... 0.64% 0.66% 0.72% 0.77% 0.74%
Expenses net of waivers/reimbursements.................... 0.64% 0.66% 0.71% 0.74% 0.69%
Portfolio turnover rate................................... 65.07% 85.21% 120.00% 267.65% 213.43%
CONSUMER SERVICE CLASS
NET ASSET VALUE, BEGINNING OF PERIOD........................ $9.75 $9.75 $9.84 $9.77 $10.10
---- ---- ---- ---- -----
Income from Investment Operations:
Net investment income/(loss).............................. 0.52 0.49 0.51 0.50 0.37
Net realized and unrealized gain/(loss) on investments.... 0.10 -- (0.09) 0.07 (0.25)
---- ---- ---- ---- -----
Total from investment operations............................ 0.62 0.49 0.42 0.57 0.12
---- ---- ---- ---- -----
Distributions to shareholders from:
Net investment income..................................... (0.52) (0.49) (0.51) (0.50) (0.37)
Net realized gain on investments.......................... -- -- -- -- (0.05)
In excess of net realized gain on investments............. -- -- -- -- (0.03)
---- ---- ---- ---- -----
Total distributions to shareholders......................... (0.52) (0.49) (0.51) (0.50) (0.45)
---- ---- ---- ---- -----
Net Asset Value, End of Period.............................. $9.85 $9.75 $9.75 $9.84 $9.77
---- ---- ---- ---- -----
---- ---- ---- ---- -----
Total return................................................ 6.48% 5.44% 4.38% 6.12% 1.23%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands).................. $ 3,181 $ 1,205 $ 1,477 $ 739 $ 654
Net investment income before waivers/reimbursements....... 5.28% 5.01% 5.22% 5.15% 3.70%
Net investment income net of waivers/reimbursements....... 5.28% 5.01% 5.23% 5.18% 3.75%
Expenses before waivers/reimbursements.................... 0.89% 0.87% 0.96% 1.02% 0.99%
Expenses net of waivers/reimbursements.................... 0.89% 0.87% 0.95% 0.99% 0.94%
Portfolio turnover rate................................... 65.07% 85.21% 120.00% 267.65% 213.43%
</TABLE>
See notes to financial statements.
41
<PAGE> 49
PERFORMANCE FUNDS TRUST
INTERMEDIATE TERM GOVERNMENT INCOME FUND
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
1998 1997 1996 1995 1994
INSTITUTIONAL CLASS -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 9.93 $ 9.82 $10.11 $ 9.87 $10.56
----- ------ ------ ----- -----
Income from Investment Operations:
Net investment income/(loss).............................. 0.59 0.60 0.56 0.62 0.58
Net realized and unrealized gain/(loss) on investments.... 0.42 0.09 (0.29) 0.25 (0.52)
----- ----- ------ ----- -----
Total from investment operations............................ 1.01 0.69 0.27 0.87 0.06
----- ----- ------ ----- -----
Distributions to shareholders from:
Net investment income..................................... (0.59) (0.58) (0.56) (0.62) (0.58)
In excess of net investment income........................ (0.01) -- -- -- --
Net realized gain on investments.......................... -- -- -- -- (0.11)
In excess of net realized gain on investments............. -- -- -- (0.01) (0.06)
----- ----- ------ ----- -----
Total distributions to shareholders......................... (0.60) (0.58) (0.56) (0.63) (0.75)
----- ----- ------ ----- -----
Net Asset Value, End of Period.............................. $10.34 $ 9.93 $ 9.82 $10.11 $ 9.87
----- ----- ------ ----- -----
----- ----- ------ ----- -----
Total Return................................................ 10.42% 7.20% 2.66% 9.31% 0.34%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands).................. $118,743 $94,242 $77,677 $108,052 $158,420
Net investment income before waivers/reimbursements....... 5.73% 6.43% 5.50% 6.33% 5.35%
Net investment income net of waivers/reimbursements....... 5.78% 6.48% 5.55% 6.44% 5.50%
Expenses before waivers/reimbursements.................... 0.77% 0.91% 0.86% 0.82% 0.80%
Expenses net of waivers/reimbursements.................... 0.72% 0.86% 0.81% 0.71% 0.65%
Portfolio turnover rate................................... 35.62% 46.23% 183.00% 339.95% 102.46%
CONSUMER SERVICE CLASS
NET ASSET VALUE, BEGINNING OF PERIOD........................ $ 9.93 $ 9.82 $10.11 $ 9.87 $10.56
----- ------ ------ ----- -----
Income from Investment Operations:
Net investment income/(loss).............................. 0.57 0.57 0.54 0.60 0.55
Net realized and unrealized gain/(loss) on investments.... 0.42 0.10 (0.29) 0.25 (0.52)
----- ----- ------ ----- -----
Total from investment operations............................ 0.99 0.67 0.25 0.85 0.03
----- ----- ------ ----- -----
Distributions to shareholders from:
Net investment income..................................... (0.57) (0.56) (0.54) (0.60) (0.55)
In excess of net investment income........................ (0.01) -- -- -- --
Net realized gain on investments.......................... -- -- -- -- (0.11)
In excess of net realized gain on investments............. -- -- -- (0.01) (0.06)
----- ------ ------ ----- -----
Total distributions to shareholders......................... (0.58) (0.56) (0.54) (0.61) (0.72)
----- ----- ------ ----- -----
Net Asset Value, End of Period.............................. $10.34 $ 9.93 $ 9.82 $10.11 $ 9.87
----- ------ ------ ----- -----
----- ----- ------ ----- -----
Total return................................................ 10.15% 6.92% 2.40% 9.06% 0.08%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands).................. $ 3,965 $1,465 $2,174 $ 3,225 $ 3,384
Net investment income before waivers/reimbursements....... 5.48% 5.55% 5.25% 6.08% 5.10%
Net investment income net of waivers/reimbursements....... 5.53% 5.60% 5.30% 6.19% 5.25%
Expenses before waivers/reimbursements.................... 1.02% 1.08% 1.11% 1.07% 1.05%
Expenses net of waivers/reimbursements.................... 0.97% 1.03% 1.06% 0.96% 0.90%
Portfolio turnover rate................................... 35.62% 46.23% 183.00% 339.95% 102.46%
</TABLE>
See notes to financial statements.
42
<PAGE> 50
PERFORMANCE FUNDS TRUST
LARGE CAP EQUITY FUND
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
1998 1997 1996 1995 1994
INSTITUTIONAL CLASS -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $19.16 $15.29 $12.51 $11.33 $11.21
----- ----- ----- ----- ------
Income from Investment Operations:
Net investment income/(loss).............................. 0.19 0.24 0.23 0.25 0.23
Net realized and unrealized gain/(loss) on investments.... 6.00 4.13 3.29 1.42 0.12
----- ----- ----- ----- ------
Total from investment operations............................ 6.19 4.37 3.52 1.67 0.35
----- ----- ----- ----- ------
Distributions to shareholders from:
Net investment income..................................... (0.19) (0.25) (0.23) (0.24) (0.23)
Net realized gain on investments.......................... (0.18) (0.25) (0.51) (0.25) --
----- ----- ----- ----- ------
Total distributions to shareholders......................... (0.37) (0.50) (0.74) (0.49) (0.23)
----- ----- ----- ----- ------
Net Asset Value, End of Period.............................. $24.98 $19.16 $15.29 $12.51 $11.33
----- ----- ----- ----- ------
----- ----- ----- ----- ------
Total return................................................ 32.53% 29.06% 28.73% 15.35% 3.10%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands).................. $259,585 $233,454 $140,144 $100,110 $93,983
Net investment income before waivers/reimbursements....... 0.83% 1.34% 1.55% 2.02% 1.84%
Net investment income net of waivers/reimbursements....... 0.83% 1.43% 1.65% 2.15% 1.99%
Expenses before waivers/reimbursements.................... 0.91% 0.92% 0.91% 0.92% 0.98%
Expenses net of waivers/reimbursements.................... 0.91% 0.83% 0.81% 0.79% 0.83%
Portfolio turnover rate................................... 4.78% 1.41% 6.00% 58.08% 27.11%
CONSUMER SERVICE CLASS
NET ASSET VALUE, BEGINNING OF PERIOD........................ $19.16 $15.29 $12.51 $11.33 $11.21
----- ----- ----- ----- ------
Income from Investment Operations:
Net investment income/(loss).............................. 0.13 0.20 0.19 0.22 0.20
Net realized and unrealized gain/(loss) on investments.... 5.99 4.13 3.29 1.42 0.12
----- ----- ----- ----- ------
Total from investment operations............................ 6.12 4.33 3.48 1.64 0.32
----- ----- ----- ----- ------
Distributions to shareholders from:
Net investment income..................................... (0.13) (0.21) (0.19) (0.21) (0.20)
Net realized gain on investments.......................... (0.18) (0.25) (0.51) (0.25) --
----- ----- ----- ----- ------
Total distributions to shareholders......................... (0.31) (0.46) (0.70) (0.46) (0.20)
----- ----- ----- ----- ------
Net Asset Value, End of Period.............................. $24.97 $19.16 $15.29 $12.51 $11.33
----- ----- ----- ----- ------
----- ----- ----- ----- ------
Total return................................................ 32.20% 28.75% 28.42% 15.10% 2.85%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands).................. $41,474 $19,531 $9,831 $5,234 $5,287
Net investment income before waivers/reimbursements....... 0.58% 1.10% 1.30% 1.77% 1.59%
Net investment income net of waivers/reimbursements....... 0.58% 1.18% 1.40% 1.90% 1.74%
Expenses before waivers/reimbursements.................... 1.16% 1.14% 1.16% 1.17% 1.23%
Expenses net of waivers/reimbursements.................... 1.16% 1.06% 1.06% 1.04% 1.08%
Portfolio turnover rate................................... 4.78% 1.41% 6.00% 58.08% 27.11%
</TABLE>
See notes to financial statements.
43
<PAGE> 51
PERFORMANCE FUNDS TRUST
MID CAP GROWTH FUND
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
1998 1997 1996 1995 1994*
INSTITUTIONAL CLASS -------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $16.71 $14.05 $11.11 $ 9.60 $10.00
----- ----- ----- ----- -----
Income from Investment Operations:
Net investment income/(loss).............................. 0.08 0.13 0.13 0.13 0.03
Net realized and unrealized gain/(loss) on investments.... 4.40 2.99 3.44 1.51 (0.40)
----- ----- ----- ----- -----
Total from investment operations............................ 4.48 3.12 3.57 1.64 (0.37)
----- ----- ----- ----- -----
Distributions to shareholders from:
Net investment income..................................... (0.08) (0.13) (0.13) (0.13) (0.03)
Net realized gain on investments.......................... (1.00) (0.33) (0.50) -- --
----- ----- ----- ----- -----
Total distributions to shareholders......................... (1.08) (0.46) (0.63) (0.13) (0.03)
----- ----- ----- ----- -----
Net Asset Value, End of Period.............................. $20.11 $16.71 $14.05 $11.11 $9.60
----- ----- ----- ----- -----
----- ----- ----- ----- -----
Total return................................................ 27.15% 22.62% 33.06% 17.31% (3.66%)
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands).................. $168,116 $125,035 $80,704 $48,068 $33,779
Net investment income before waivers/reimbursements....... 0.41% 0.75% 0.90% 1.11% 0.60%**
Net investment income net of waivers/reimbursements....... 0.41% 0.89% 1.06% 1.37% 1.60%**
Expenses before waivers/reimbursements.................... 1.07% 1.06% 1.14% 1.22% 1.93%**
Expenses net of waivers/reimbursements.................... 1.07% 0.92% 0.98% 0.96% 0.93%**
Portfolio turnover rate................................... 20.48% 7.72% 28.00% 20.39% 5.88%
CONSUMER SERVICE CLASS
NET ASSET VALUE, BEGINNING OF PERIOD........................ $16.72 $14.05 $11.11 $ 9.60 $10.00
----- ----- ----- ----- -----
Income from Investment Operations:
Net investment income/(loss).............................. 0.03 0.09 0.10 0.11 0.03
Net realized and unrealized gain/(loss) on investments.... 4.39 3.00 3.44 1.51 (0.40)
----- ----- ----- ----- -----
Total from investment operations............................ 4.42 3.09 3.54 1.62 (0.37)
----- ----- ----- ----- -----
Distributions to shareholders from:
Net investment income..................................... (0.03) (0.09) (0.10) (0.11) (0.03)
In excess of net investment income........................ (0.01) -- -- -- --
Net realized gain on investments.......................... (1.00) (0.33) (0.50) -- --
----- ----- ----- ----- -----
Total distributions to shareholders......................... (1.04) (0.42) (0.60) (0.11) (0.03)
----- ----- ----- ----- -----
Net Asset Value, End of Period.............................. $20.10 $16.72 $14.05 $11.11 $9.60
----- ----- ----- ----- -----
----- ----- ----- ----- -----
Total return................................................ 26.82% 22.33% 32.76% 17.06% (3.70%)
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands).................. $19,298 $5,911 $1,437 $277 $35
Net investment income before waivers/reimbursements....... 0.16% 0.54% 0.63% 0.86% 0.35%**
Net investment income net of waivers/reimbursements....... 0.16% 0.65% 0.79% 1.12% 1.35%**
Expenses before waivers/reimbursements.................... 1.32% 1.30% 1.39% 1.47% 2.18%**
Expenses net of waivers/reimbursements.................... 1.32% 1.19% 1.23% 1.21% 1.18%**
Portfolio turnover rate................................... 20.48% 7.72% 28.00% 20.39% 5.88%
</TABLE>
- ---------------
* Fund commenced operations on February 24, 1994.
** Annualized.
See notes to financial statements.
44
<PAGE> 52
PERFORMANCE FUNDS TRUST
SMALL CAP FUND
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS CONSUMER SERVICE CLASS
------------------- ----------------------
FOR THE PERIOD FOR THE PERIOD
ENDED ENDED
MAY 31, 1998* MAY 31, 1998*
-------------- --------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $10.00 $ 10.00
------------ --------------
Income from Investment Operations:
Net investment income/(loss).............................. (0.03)(a) (0.04)(a)
Net realized and unrealized gain/(loss) on investments.... (0.05) (0.05)
------------ --------------
Total from investment operations............................ (0.08) (0.09)
------------ --------------
Net Asset Value, End of Period.............................. $ 9.92 $ 9.91
------------ --------------
------------ --------------
Total Return................................................ (0.80%) (0.90%)
Ratios to Average Net Assets/Supplemental Data:
Net Assets, end of period (in thousands).................. $61,450 $ 3,704
Ratio of net investment income/(loss) to average net
assets.................................................. (0.41%)** (0.66%)**
Ratio of expenses to average net assets................... 1.45% ** 1.70% **
Portfolio turnover rate................................... 12.28% 12.28%
</TABLE>
- ---------------
* Fund commenced operations on October 1, 1997.
** Annualized.
(a) Calculated based on average shares during the period.
See notes to financial statements.
45
<PAGE> 53
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of
Performance Funds Trust
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Money Market Fund, Short Term
Government Income Fund, Intermediate Term Government Income Fund, Large Cap
Equity Fund, Mid Cap Growth Fund and Small Cap Fund (constituting six of the
seven portfolios of Performance Funds Trust, hereafter referred to as the
"Trust"), at May 31, 1998, the results of each of their operations for the year
then ended, the changes in each of their net assets for each of the two years in
the period then ended and the financial highlights for each of the periods
presented, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at May 31,
1998 by correspondence with the custodian, provide a reasonable basis for the
opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
July 17, 1998
46
<PAGE> 54
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 55
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 56
[PERFORMANCE FUNDS LOGO]
INVESTMENT ADVISOR
Trustmark National Bank
248 East Capitol Street
Jackson, Mississippi 39201
ADMINISTRATOR AND
TRANSFER AGENT
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
DISTRIBUTOR
Performance Funds Distributor, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
CUSTODIAN
Trustmark National Bank
248 East Capitol Street
Jackson, Mississippi 39201
COUNSEL
Paul, Weiss, Rifkind, Wharton & Garrison
1285 Avenue of the Americas
New York, New York 10019-6064
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers 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
ANNUAL REPORT
MAY 31, 1998
INVESTMENT ADVISOR
[TRUSTMARK LOGO]
National Bank
Performance Funds'
Investment Adviser
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.
PF7/98
