<PAGE> 1
[PERFORMANCE FUNDS LOGO]
January 1, 1999
Dear Shareholder:
We are pleased to bring you this semi-annual report of the Performance
Funds, which covers the six months period ended November 30, 1998. The
Performance Funds are comprised 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 Equity Fund, and The Small Cap Equity Fund. All
funds are managed by Trustmark National Bank.
ECONOMIC REVIEW
The six months under review proved eventful as market psychology continued
to deal with uncertainties in the global economic & financial markets. The U.S.
economy began to show signs of slowing as concerns over the growing economic
crises in the emerging markets and the domestic politics eroded investor
confidence. Extreme volatility in both the stock and bond markets during this
period served to heighten investors' concerns.
At its September meeting, the Fed lowered the Fed Funds rate 25 basis
points to 5.25%, another 25bps on October 15th to 5.00% (first such Fed action
between Fed meetings since April, 1994), and another 25bps to 4.75% on November
17th (three rate cuts in the span of 49 days). In doing so, the Fed stated:
"Although conditions in the financial markets have settled down materially since
mid-October, unusual strains remain. With the 75 basis points decline in the
Federal Funds rate since September, financial conditions can reasonably be
expected to be consistent with fostering sustained economic expansion while
keeping inflationary pressures subdued". By acting aggressively, the "Greenspan"
Fed was taking proactive steps to minimize, if not prevent, the U. S. economy
dipping into a recession.
Market volatility, such as that experienced during the last six months,
always has and always will test the individual investor's tolerance to risk. The
informed investor understands that patience, discipline, and diversification are
critical keys to successful, long-term investing, and does not allow short-term
market volatility to drive long-term financial goals.
On the following pages you will find a detailed discussion of each fund's
performance. Regardless of the markets' direction, the Performance Funds
investment discipline remains the same with careful security selection,
diversification, & constant supervision.
As always, we appreciate your support, welcome your comments, and encourage
you to talk with your investment representative should you have any questions
about your funds.
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 2.62%
for the Institutional Class and 2.49% for the Class A for the six month period
ended November 30, 1998. The 7-day yield was 4.91% for the Institutional Class
and 4.66% for Class A as of November 30, 1998. During this period, the 7-day
yield of the Fund fluctuated between a high of 5.29% on August 5th and a low of
4.90% on November 25th. The Fund closed this six-month period with a yield of
4.88% (Institutional Class). Also during this reporting period, the Federal
Reserve lowered its target rate for Fed Funds three times. The moves by the Fed
resulted in a lowering of the target rate by 75 basis points from 5.50% to the
current 4.75%. These cuts by the Fed had a direct impact on the Fund since the
investments that the Fund uses generally track the direction in which the Fed
Funds rate goes. Hence a lower Fed Funds rate translates into lower investment
yields available for the Fund. These moves by the Federal Reserve came in a
fairly quick manner with all three moves coming in less than 60 days. Hopefully,
these aggressive moves by the Federal Reserve will be sufficient to keep them
out of the market for the coming months and our yield environment will
stabilize.
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 (Standard &
Poor's A-1 or A-1+ and Moody's P-1). An investment in the Fund is not guaranteed
by the FDIC or any other government agency. Although the fund seeks to preserve
the value of your investment at $1.00 per share, it is possible to lose money by
investing in the fund.
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
Share price of the Short Term Government Income Fund had a net increase of
$0.07 to $9.92 per share for the six months ending November 30, 1998. Dividends
and the share price increase provided a six-month period return of 3.37% to
Institutional Class shareholders, and 3.25% to the Class A shareholders(1).
These returns indicate successful fulfillment of the funds primary objective,
which is to provide an attractive alternative to money markets and certificates
of deposit, while maintaining a relatively low share price fluctuation.
Global asset and currency devaluation had the greatest effect on short bond
rates this period. Foreign investors, fearful of their own financial markets,
scooped up Treasury securities at an alarming rate, running up prices, which in
turn drove the yield on 2-year Treasury Notes from a high of 5.58% to a low of
3.85%, before settling slightly above 4.50%. The urgency of crumbling markets
abroad forced the Fed to lower the interbank lending rate to 4.75%, which is
still above short Treasury yields. In spite of the stellar price performance of
Treasury securities, other sectors did not fair as well. The relative spreads of
non-Treasury securities widened to historical highs, as bidders shunned
everything but the gilded Treasury Note.
As usually occurs during financial market turmoil, opportunities have
arisen in the short-term bond market, which should be of benefit to our
shareholders. Specifically, the illiquidity in the mortgage market has presented
opportunities in short-term mortgage securities, which now offer high relative
yield. High-grade corporate securities, which have been generally avoided by
this fund over the last two years, now offer enough potential additional yield
to become a sector of interest to us, while limited in amount by our prospectus.
We believe that these opportunities will be sufficient to continue to achieve
our objective, without compromising our stringent quality criteria, or incurring
unnecessary price volatility.
Signed,
/s/ Jonathan Rogers
Jonathan Rogers, CFA
Vice President
Trustmark National Bank
- ------------
(1) The total return for Class A, subject to a maximum sales load of 3.00%, was
0.20% for the period.
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 six month period ended November 30, 1998, the Performance
Intermediate Term Government Income Fund returned 5.39% for the Institutional
Class shareholders and 5.26% for Class A shareholders(1). Share price, as
measured by net asset value, increased from $10.34 on May 31, 1998 to $10.61 on
November 30, 1998. The Fund's objective is to provide a higher level of current
income with total return, which consists of income and capital
appreciation/depreciation, also an important consideration. The Fund primarily
invests in U. S. government securities and investment grade corporate bonds.
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 last six months the U. S. Treasury market was the prime beneficiary
of "flight to quality" as global investors sought refuge in its safety and
liquidity. Global asset & currency devaluation and an accommodating Federal
Reserve further accentuated this bullish run on Treasuries. Bond yields, as
measured by the 30-year Treasury Bond, fell from 5.80% in May to as low as 4.71%
on October 5th before closing the period at 5.06%. Short-term yields, as
measured by the 2-year Treasury Note, fell from 5.52% to as low as 3.82% on
October 15th before closing the period at 4.50%. This resulted in a spread 56
basis points between the 2-year Treasury Note and the 30-year Treasury Bond, up
from 28 basis points in May. For the period Treasuries returned a stellar 6.60%
followed by U.S. Agencies 5.35%, U. S. Corporate 4.72%, Asset Backed Securities
4.27%, and Mortgage Backed Securities 3.51%.
Despite third quarter's GDP coming in at 3.3%, substantially stronger than
anticipated, and a foreseeable upward revision in fourth quarter data, the Fed
aggressively eased Fed Funds Rate three time and the Discount Rate twice from
5.50% to 4.75% and from 5.00% to 4.50%, respectively. The Fed's action to
minimize, perhaps avoid, an anticipated economic slowdown and a credit/liquidity
squeeze in the fixed income markets was possible as economic fundamentals
revealed a slowdown in job creation, income growth, and corporate profits.
Benign inflation, CPI 1.50% year-over-year, and falling commodity prices were
influencing factors as well.
Signed,
/s/ Robert H. Spaulding
Robert H. Spaulding,
Vice President & Trust Investment
Officer
Trustmark National Bank
- ------------
(1) The total return for Class A, subject to a maximum sales load of 5.25%, was
-0.24% for the period.
All performance figures cited here represent past performance of the
Intermediate Term Government Income Fund and do 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 six months period ended November 30, 1998 the Large Cap Equity Fund
returned 7.91% to the Institutional Class shareholders and 7.74% to the Class A
shareholders(1). This compares to the S&P 500 Index which returned 7.49%.
The relative performance of the Fund was favorably impacted by holdings in
the health care sector. During the period Eli Lilly (1.30%) was up 47%, Abbott
Labs (1.01%) was up 32%, and Schering Plough increased 30%. The retail sector
also contributed with Wal-Mart returning 34% and Walgreen (1.63%) rising 49%.
Freddie Mac (1.01%) and Sun America (0.56%) in the financial sector were up 31%
and 60%, respectively. Technology companies like Microsoft (up 46%), Intel (up
58%), and Cisco (1.61%) (up 58%) also aided performance.
We expect volatility to continue as future earnings may not be sustainable
to prior quarters' earnings growth. Our efforts and resources continue to be
directed at security selection and not market timing. Listed below are the 10
largest holdings in the Fund at November 30, 1998.
TEN LARGEST HOLDINGS *
<TABLE>
<C> <S> <C> <C> <C> <C> <C> <C> <C>
1. Microsoft 3.78% 4. Exxon 2.42% 8. IBM 2.30%
2. General Electric 3.75% 5. Merck 2.35% 9. Wal-Mart 2.28%
3. Schering Plough 2.77% 6. Coca-Cola 2.30% 10. Citigroup 1.72%
7. Intel 2.30%
</TABLE>
Signed,
/s/ Charles H. Windham, Jr.
Charles H. Windham, Jr.
Vice President
Trustmark National Bank
- ------------
* Portfolio composition is subject to change.
(1) The total return for Class A, subject to a maximum sales load of 5.25%, was
2.10% for the period.
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 EQUITY FUND
For the six months ending November 30, 1998 the Mid Cap Equity Fund fell
7.60% (Institutional Class) and 7.66% (Class A(1)) . This compares to the S&P
MidCap 400 Index which had a negative 1.52% return.
The relative performance of the Fund was negatively impacted by holdings in
the Oil Services and Oil Equipment industries. Positions in Ensco (0.43%) and
Smith International (0.56%) each fell by more than 50% in response to much lower
crude oil prices. Holdings in the Raw Materials sector also penalized
performance, particularly Wellman Incorporated (0.61%) which was down 48% in the
period. On the upside, the Fund holds American Power Conversion which increased
38% and Energy East which appreciated 30%. In the Health Care sector Watson
Pharmaceuticals gained 23%.
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
November 30, 1998.
TEN LARGEST HOLDINGS*
<TABLE>
<C> <S> <C> <C> <C> <C> <C> <C> <C>
1. Watson Pharmaceutical 2.50% 4. Century Telephone 2.09% 8. Edwards (A.G.) 1.80%
2. Staples 2.23% 5. Coca-Cola Enterprises 2.04% 9. AFLAC, Inc. 1.76%
3. American Power Conversion 2.16% 6. Paine Webber 2.03% 10. Comdisco 1.75%
7. Energy East 1.88%
</TABLE>
Signed,
/s/ Douglas H. Ralston
Douglas H. Ralston, CFA
Vice President
Trustmark National Bank
- ------------
* Portfolio composition is subject to change.
(1) The total return for Class A, subject to a maximum sales load of 5.25%, was
-12.49% for the period.
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 EQUITY FUND
Small capitalization stocks are continuing their relative under performance
in the small cap universe. Through the first six months of the Fund's fiscal
year, performance was -13.61% (Institutional Class(1)) in comparison to the S&P
Small Cap 600 Index which returned -12.41%.
When compared to the larger companies in the domestic market, it is
apparent that small capitalization stocks are suffering from a continued "flight
to quality". This is typically a precursor to a downturn in economic growth and
is marked by continued money flows into more established, liquid stocks with
large discounts given to lesser known names. Sectors that have been hit
especially hard in the last six months include selected Healthcare issues and
Oil and Gas Equipment. Holdings in Integrated Health Services (0.80%) and
Input/Output (0.39%) within these sectors hurt performance for the period.
On a positive note, the relative valuation of small company stocks has
fallen to levels we have not seen since the 1970's. Attractive valuations do not
guarantee future success, but they increase the probability for out performance
over time. Generic drug maker Alpharma turned in a strong performance (up 70%)
and chip equipment maker Novellus reversed its downward trend with a positive
36% return.
TEN LARGEST HOLDINGS*
<TABLE>
<C> <S> <C> <C> <C> <C> <C> <C> <C>
1. Alpharma Inc. 2.59% 4. CMAC Invt Corp. 2.16% 8. Zebra Technologies, Class A 1.87%
2. Plexus Corp. 2.39% 5. Fremont General 2.01% 9. Fidelity Natl Financial 1.83%
3. Manitowoc Inc. 2.22% 6. Novellus Systems 1.98% 10. Orion Capital 1.73%
7. Enhance Finl Svc. 1.88%
</TABLE>
Signed,
/s/ Douglas P. Muenzenmay
Doug P. Muenzenmay
Investment Officer
Trustmark National Bank
- ------------
* Portfolio composition is subject to change.
(1) The total return for Class A, subject to a maximum sales load of 5.25%, was
- -18.36% for the period.
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
THE MONEY MARKET FUND
Schedule of Portfolio Investments
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR S&P/MOODY'S
PRINCIPAL RATINGS MARKET
AMOUNT SECURITY DESCRIPTION (UNAUDITED) VALUE
--------- -------------------- ----------- ------
<C> <S> <C> <C>
COMMERCIAL PAPER -- 68.3%
AUTOMOTIVE -- 11.9%
$ 6,000,000 Ford Motor Credit Corporation, 5.04%, 1/6/99................ P1/A1 $ 5,969,760
10,000,000 Ford Motor Credit Corporation, 5.24%, 2/1/99................ P1/A1 9,909,756
11,000,000 GMAC, 5.20%, 12/18/98....................................... P1/A1 10,972,988
5,000,000 GMAC, 5.07%, 1/14/99........................................ P1/A1 4,969,017
5,500,000 GMAC, 5.33%, 1/22/99........................................ P1/A1 5,457,656
5,000,000 Toyota Motor Credit Corporation, 5.02%, 1/5/99.............. P1/A1+ 4,975,597
6,000,000 Toyota Motor Credit Corporation, 5.18%, 1/7/99.............. P1/A1+ 5,968,057
10,000,000 Toyota Motor Credit Corporation, 5.15%, 1/8/99.............. P1/A1+ 9,945,639
------------
58,168,470
------------
BANKING -- 4.2%
10,000,000 BankAmerica Corporation, 5.16%, 1/13/99..................... P1/A1 9,938,366
6,000,000 Norwest Bank Corporation, 5.01%, 1/12/99.................... P1/A1+ 5,964,930
5,000,000 Wachovia Bank Corporation, 5.21%, 12/3/98................... P1/A1+ 4,998,553
------------
20,901,849
------------
BEVERAGES -- 3.0%
15,000,000 Coca Cola Company, 5.31%, 12/1/98........................... P1/A1+ 15,000,000
CHEMICALS -- 4.3%
10,000,000 du Pont (E.I.) De Nemours & Company, 5.01%, 12/16/98........ P1/A1+ 9,979,125
5,000,000 du Pont (E.I.) De Nemours & Company, 5.03%, 12/17/98........ P1/A1+ 4,988,822
6,000,000 du Pont (E.I.) De Nemours & Company, 5.23%, 1/21/99......... P1/A1+ 5,955,545
------------
20,923,492
------------
DIVERSIFIED -- 4.2%
5,000,000 General Electric Capital Corporation, 5.18%, 12/2/98........ P1/A1+ 4,999,281
8,000,000 General Electric Capital Corporation, 5.25%, 1/20/99........ P1/A1+ 7,941,666
8,000,000 General Electric Capital Corporation, 5.32%, 1/21/99........ P1/A1+ 7,939,707
------------
20,880,654
------------
FINANCE -- BROKERS -- 16.3%
3,000,000 Bear Stearns Company, 5.125%, 12/9/98....................... P1/A1 2,996,583
5,000,000 Bear Stearns Company, 5.18%, 1/26/99........................ P1/A1 4,959,711
10,000,000 Bear Stearns Company, 5.32%, 2/10/99........................ P1/A1 9,895,078
6,000,000 Goldman Sachs Group, 5.25%, 12/8/98......................... P1/A1+ 5,993,875
10,000,000 Goldman Sachs Group, 5.38%, 1/6/99.......................... P1/A1+ 9,946,200
5,000,000 Goldman Sachs Group, 5.28%, 2/12/99......................... P1/A1+ 4,946,467
8,000,000 Merrill Lynch & Company, 5.17%, 01/19/99.................... P1/A1+ 7,943,704
7,500,000 Merrill Lynch & Company, 5.33%, 1/27/99..................... P1/A1+ 7,436,706
6,000,000 Merrill Lynch & Company, 5.08%, 1/29/99..................... P1/A1+ 5,950,047
10,000,000 Morgan Stanley Dean Witter, 5.38%, 1/28/99.................. P1/A1 9,913,322
10,000,000 Morgan Stanley Dean Witter, 5.33%, 2/11/99.................. P1/A1 9,893,400
------------
79,875,093
------------
</TABLE>
See notes to financial statements.
1
<PAGE> 9
PERFORMANCE FUNDS TRUST
THE MONEY MARKET FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR S&P/MOODY'S
PRINCIPAL RATINGS MARKET
AMOUNT SECURITY DESCRIPTION (UNAUDITED) VALUE
--------- -------------------- ----------- ------
<C> <S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
FINANCIAL SERVICES -- 8.8%
$ 4,000,000 Associates Credit Corporation, 5.08%, 12/9/98............... P1/A1+ $ 3,995,484
10,000,000 Associates Credit Corporation, 5.04%, 12/21/98.............. P1/A1+ 9,972,000
3,000,000 Associates Credit Corporation, 5.33%, 1/4/99................ P1/A1+ 2,984,898
5,000,000 Associates Credit Corporation, 5.23%, 2/2/99................ P1/A1+ 4,954,238
11,000,000 Commercial Credit Corporation, 5.14%, 12/14/98.............. P1/A1 10,979,584
10,000,000 Commercial Credit Corporation, 5.08%, 1/11/99............... P1/A1 9,942,144
------------
42,828,348
------------
FOOD -- 6.1%
10,000,000 Campbell's Soup, Inc., 5.00%, 1/7/99........................ P1/A1+ 9,948,611
20,000,000 Kellogg Company, 5.12%, 12/15/98............................ P1/A1+ 19,960,178
------------
29,908,789
------------
OIL/GAS EXPLORATION -- 4.2%
11,000,000 Texaco, Inc., 5.17%, 12/11/98............................... P1/A1 10,984,203
5,000,000 Texaco, Inc., 5.12%, 1/20/99................................ P1/A1 4,964,444
5,000,000 Texaco, Inc., 5.12%, 1/25/99................................ P1/A1 4,960,889
------------
20,909,536
------------
TELECOMMUNICATIONS -- 1.8%
9,000,000 Bellsouth Corporation, 5.15%, 12/10/98...................... P1/A1+ 8,988,413
------------
UTILITIES -- 3.5%
3,000,000 National Rural Utility Cooperative Finance Corporation,
5.00%, 12/17/98............................................. P1/A1+ 2,993,333
9,500,000 National Rural Utility Cooperative Finance Corporation,
5.23%, 1/22/99.............................................. P1/A1+ 9,428,233
5,000,000 National Rural Utility Cooperative Finance Corporation,
5.07%, 2/5/99............................................... P1/A1+ 4,953,525
------------
17,375,091
------------
TOTAL COMMERCIAL PAPER (Cost $335,759,735)............................... 335,759,735
------------
CORPORATE BONDS -- 6.1%
AUTOMOTIVE -- 1.0%
3,000,000 Ford Motor Credit Corporation, 5.625%, 1/15/99.............. A1/A 2,999,301
1,870,000 Ford Motor Credit Corporation, 8.00%, 1/15/99............... A1/A 1,875,364
------------
4,874,665
------------
BANKING -- 4.1%
5,000,000 First Tennessee Bank, 5.57%, 9/17/99........................ A1/A 5,000,000
5,000,000 Norwest Bank Corporation, 6.25%, 3/15/99.................... Aa3/A+ 5,007,665
10,000,000 Wachovia Bank Corporation, 5.22%, 12/7/98................... Aa2/AA 10,000,001
------------
20,007,666
------------
ENTERTAINMENT -- 0.4%
2,000,000 The Walt Disney Company, 6.25%, 6/21/99..................... A2/A 2,005,324
------------
FINANCE -- BROKERS -- 0.6%
3,050,000 Bear Stearns Company, 7.625%, 9/15/99....................... A2/A 3,096,075
------------
TOTAL CORPORATE BONDS (Cost $29,983,730)................................. 29,983,730
------------
</TABLE>
See notes to financial statements.
2
<PAGE> 10
PERFORMANCE FUNDS TRUST
THE MONEY MARKET FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR S&P/MOODY'S
PRINCIPAL RATINGS MARKET
AMOUNT SECURITY DESCRIPTION (UNAUDITED) VALUE
--------- -------------------- ----------- ------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY MORTGAGES -- 18.1%
FEDERAL FARM CREDIT BANK -- 3.0%
$10,000,000 Federal Farm Credit Bank, 5.01%, 12/22/98................... Aaa/AAA $ 9,970,775
5,000,000 Federal Farm Credit Bank, 5.20%, 11/19/99................... Aaa/AAA 5,000,000
------------
14,970,775
------------
FEDERAL HOME LOAN BANK -- 2.9%
1,500,000 Federal Home Loan Bank Note, 5.43%, 12/29/98................ Aaa/AAA 1,499,495
5,000,000 Federal Home Loan Bank Note, 5.51%, 4/30/99................. Aaa/AAA 5,006,844
3,000,000 Federal Home Loan Bank Note, 5.705%, 5/5/99................. Aaa/AAA 3,000,183
5,000,000 Federal Home Loan Bank Note, 5.00%, 10/28/99................ Aaa/AAA 5,000,000
------------
14,506,522
------------
FEDERAL HOME LOAN MORTGAGE CORP. -- 7.2%
10,000,000 Federal Home Loan Mortgage Corporation, 5.06%, 12/1/98...... Aaa/AAA 10,000,000
10,000,000 Federal Home Loan Mortgage Corporation, 5.062%, 12/8/98..... Aaa/AAA 9,990,157
15,000,000 Federal Home Loan Mortgage Corporation, 5.00%, 1/15/99...... Aaa/AAA 14,906,250
------------
34,896,407
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 4.4%
10,000,000 Federal National Mortgage Assoc., 5.02%, 12/23/98........... Aaa/AAA 9,969,322
3,665,000 Federal National Mortgage Assoc., 5.37%, 2/26/99............ Aaa/AAA 3,662,603
5,000,000 Federal National Mortgage Assoc., 5.48%, 3/16/99............ Aaa/AAA 4,997,538
3,000,000 Federal National Mortgage Assoc., 5.49%, 8/03/99............ Aaa/AAA 2,997,739
------------
21,627,202
------------
STUDENT LOAN MARKETING ASSOCIATION -- 0.6%
3,000,000 Student Loan Marketing Assoc., 5.53%, 3/4/99................ Aaa/AAA 2,999,761
------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGES (Cost $89,000,667)................ 89,000,667
------------
REPURCHASE AGREEMENTS -- 7.8%
38,600,000 First Union, dated 11/30/98, due 12/1/98 at 5.35% with a
maturity value of $38,605,736 (Collateralized by a Federal
Home Loan Mortgage Corporation discount note, 2/1/99, market
value - $39,382,362)........................................ 38,600,000
------------
TOTAL REPURCHASE AGREEMENTS (Cost $38,600,000)........................... 38,600,000
------------
MONEY MARKET MUTUAL FUNDS -- 0.0%
67,289 AIM Prime Money Market Portfolio, Investment Company........ 67,289
------------
TOTAL MONEY MARKET MUTUAL FUNDS (Cost $67,289)........................... 67,289
------------
TOTAL INVESTMENTS (Cost $493,411,421)(a) -- 100.3%....................... 493,411,421
LIABILITIES IN EXCESS OF OTHER ASSETS (0.3)%............................. (1,286,778)
------------
TOTAL NET ASSETS -- 100.0%............................................... $492,124,643
============
</TABLE>
- ---------------
(a) Cost for federal income tax and financial reporting purposes is
substantially the same.
See notes to financial statements.
3
<PAGE> 11
PERFORMANCE FUNDS TRUST
THE SHORT TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 25.7%
U.S. TREASURY NOTES -- 18.4%
$ 2,000,000 U.S. Treasury Notes, 6.00%, 8/15/99......................... $ 2,017,820
4,000,000 U.S. Treasury Notes, 5.625%, 11/30/99....................... 4,036,760
12,000,000 U.S. Treasury Notes, 5.50%, 4/15/00......................... 12,141,120
2,000,000 U.S. Treasury Notes, 5.50%, 12/31/00........................ 2,035,240
2,500,000 U.S. Treasury Notes, 5.625%, 2/28/01........................ 2,553,350
------------
22,784,290
------------
U.S. TREASURY STRIPS -- 7.3%
5,000,000 U.S. Treasury Strip, 4.245%, 2/15/01........................ 4,519,650
5,000,000 U.S. Treasury Strip, 4.265%, 5/15/01........................ 4,468,400
------------
8,988,050
------------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $31,533,529).......... 31,772,340
------------
U.S. GOVERNMENT AGENCY MORTGAGES -- 65.7%
FEDERAL HOME LOAN MORTGAGE CORP. -- 37.1%
2,422,672 Federal Home Loan Mortgage Corp., Series 1414(E), 6.25%,
7/15/05..................................................... 2,424,876
203,985 Federal Home Loan Mortgage Corp., Series 1675(D), 5.50%,
5/15/14..................................................... 203,536
3,000,000 Federal Home Loan Mortgage Corp., Series 2061(PH), 6.00%,
5/15/16..................................................... 3,014,670
10,760,000 Federal Home Loan Mortgage Corp., Series 1407(PF), 6.25%,
10/15/16.................................................... 10,776,139
10,000,000 Federal Home Loan Mortgage Corp., Series 2054(PA), 6.00%,
5/15/17..................................................... 10,048,700
10,000,000 Federal Home Loan Mortgage Corp., Series 1590(F), 6.00%,
1/15/19..................................................... 10,045,300
9,213,018 Federal Home Loan Mortgage Corp., Series 1637(F), 6.00%,
9/15/21..................................................... 9,257,978
------------
45,771,199
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 22.8%
1,240,539 Federal National Mortgage Assoc., Series 1993-10(E), 6.50%,
10/25/04.................................................... 1,247,511
6,371,468 Federal National Mortgage Assoc., Series 1997-78(PB), 6.00%,
8/18/14..................................................... 6,424,351
3,084,082 Federal National Mortgage Assoc., Series 1993-26(E), 6.25%,
4/25/16..................................................... 3,080,659
794,463 Federal National Mortgage Assoc., Series 1993-142(A), 5.25%,
9/25/16..................................................... 788,703
1,475,045 Federal National Mortgage Assoc., Series 1993-73(D), 5.75%,
9/25/16..................................................... 1,467,832
5,000,000 Federal National Mortgage Assoc., Series 1994-65(PE), 6.75%,
7/25/18..................................................... 5,046,200
10,000,000 Federal National Mortgage Assoc., Series 1993-102(G), 6.25%,
01/25/20.................................................... 10,134,600
------------
28,189,856
------------
U.S. GOVERNMENT AGENCY -- 5.8%
2,000,000 Federal Farm Credit, 5.76%, 7/7/03.......................... 2,059,180
2,000,000 Federal Home Loan Bank, 5.625%, 3/19/01..................... 2,034,480
3,000,000 Federal Home Loan Bank, 5.795%, 5/11/01..................... 3,062,430
------------
7,156,090
------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGES (Cost $80,497,446)... 81,117,145
------------
</TABLE>
See notes to financial statements.
4
<PAGE> 12
PERFORMANCE FUNDS TRUST
THE SHORT TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
MUNICIPAL BONDS -- 0.8%
$ 1,000,000 City of Erie, PA, General Obligation, 5.15%, 11/15/01,
OID......................................................... $ 996,250
------------
TOTAL MUNICIPAL BONDS (Cost $998,880)....................... 996,250
------------
CORPORATE BONDS -- 7.3%
DIVERSIFIED -- 0.8%
1,000,000 General Electric Capital Corporation, 5.65%, 8/15/01........ 1,011,250
------------
FINANCIAL SERVICES -- 4.1%
1,000,000 Associates Credit Corporation, 5.60%, 1/15/01............... 1,005,000
1,000,000 Avco Financial Services, 5.50%, 4/1/00...................... 1,006,250
1,000,000 Ford Motor Credit, 5.125%, 10/15/01......................... 995,000
1,000,000 GMAC, 5.70%, 2/23/00........................................ 1,002,500
1,000,000 Merrill Lynch & Company, 6.00%, 1/15/01..................... 1,010,000
------------
5,018,750
------------
RAILROADS -- 0.8%
1,000,000 Conrail, 5.58%, 11/15/02.................................... 990,490
------------
TELECOMMUNICATIONS-EQUIPMENT -- 1.6%
1,000,000 Detroit Edison, 5.93%, 2/1/01............................... 1,015,000
1,000,000 Pennsylvania Power & Light, 6.00%, 6/1/00................... 1,013,750
------------
2,028,750
------------
TOTAL CORPORATE BONDS (Cost $9,078,712)..................... 9,049,240
------------
MONEY MARKET MUTUAL FUNDS -- 1.1%
1,297,048 AIM Treasury Money Market................................... 1,297,048
------------
TOTAL MONEY MARKET MUTUAL FUNDS (Cost $1,297,048)........... 1,297,048
------------
TOTAL INVESTMENTS (Cost $123,405,615)(a) -- 100.6%.......... 124,232,023
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.6)%............. (773,941)
------------
TOTAL NET ASSETS -- 100.0%.................................. $123,458,082
============
</TABLE>
- ---------------
(a) At November 30, 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............................... $945,828
Unrealized depreciation............................... (119,420)
--------
Net unrealized appreciation........................... $826,408
========
</TABLE>
See notes to financial statements.
5
<PAGE> 13
PERFORMANCE FUNDS TRUST
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
MORTGAGE-BACKED SECURITIES -- 0.1%
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 0.1%
$ 55,875 Government National Mortgage Association, Pool #210311,
9.00%, 6/15/17.............................................. $ 59,199
35,000 Government National Mortgage Association, Pool #271741,
9.00%, 3/15/20.............................................. 37,085
------------
TOTAL MORTGAGE-BACKED SECURITIES (Cost $95,184)............. 96,284
------------
U.S. TREASURY OBLIGATIONS -- 33.3%
U.S. TREASURY BONDS -- 21.9%
10,000,000 U.S. Treasury Bonds, 7.25%, 5/15/16......................... 12,235,000
4,000,000 U.S. Treasury Bonds, 7.25%, 8/15/22......................... 5,023,840
5,000,000 U.S. Treasury Bonds, 6.25%, 8/15/23......................... 5,631,500
3,500,000 U.S. Treasury Bonds, 6.00%, 2/15/26......................... 3,848,320
------------
26,738,660
------------
U.S. TREASURY NOTES -- 11.4%
150,000 U.S. Treasury Notes, 6.25%, 5/31/00......................... 153,476
2,000,000 U.S. Treasury Notes, 4.00%, 10/31/00........................ 1,978,900
500,000 U.S. Treasury Notes, 6.25%, 2/28/02......................... 523,490
5,000,000 U.S. Treasury Notes, 6.25%, 6/30/02......................... 5,255,850
2,700,000 U.S. Treasury Notes, 4.25%, 11/15/03........................ 2,668,545
3,000,000 U.S. Treasury Notes, 7.25%, 8/15/04......................... 3,373,620
------------
13,953,881
------------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $36,429,893).......... 40,692,541
------------
CORPORATE BONDS -- 27.8%
AEROSPACE -- 0.9%
250,000 Raytheon Company, 6.50%, 7/15/05............................ 258,750
250,000 Raytheon Company, 7.375%, 7/15/25........................... 269,375
250,000 Rockwell International Corporation, 6.625%, 6/1/05.......... 261,250
250,000 WMX Technologies, Inc., 6.250%, 10/15/00.................... 254,375
------------
1,043,750
------------
AUTOMOTIVE -- 1.6%
500,000 Ford Motor Company, 7.25%, 10/01/08......................... 549,375
250,000 Ford Motor Company, 7.125%, 11/15/25........................ 275,000
1,000,000 General Motors Corporation, 7.10%, 3/15/06.................. 1,075,000
------------
1,899,375
------------
BANKING -- 2.2%
250,000 Bankers Trust Company, 6.75%, 10/3/01....................... 254,375
250,000 Bankers Trust Company, 7.125%, 7/31/02...................... 256,563
500,000 Bankers Trust Company, 7.50%, 11/15/15...................... 490,625
250,000 Chase Manhattan Corporation, 6.50%, 1/15/09................. 260,938
250,000 First Bank, N.A., 6.875%, 4/1/06............................ 266,250
</TABLE>
See notes to financial statements.
6
<PAGE> 14
PERFORMANCE FUNDS TRUST
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
BANKING (CONTINUED)
$ 250,000 NationsBank Corporation, 6.875%, 2/15/05.................... $ 266,250
500,000 NationsBank Corporation, 6.375%, 5/15/05.................... 522,499
350,000 NationsBank Corporation, 7.19%, 7/30/12..................... 367,500
------------
2,685,000
------------
BEVERAGES -- 0.6%
500,000 Coca-Cola Enterprises, Inc., 6.625%, 8/1/04................. 526,875
250,000 Coca-Cola Enterprises, Inc., 6.75%, 9/15/23................. 263,750
------------
790,625
------------
CHEMICALS -- 1.3%
500,000 Air Products & Chemicals, Inc., 7.375%, 5/1/05.............. 548,125
250,000 Air Products & Chemicals, Inc., 6.24%, 1/13/10.............. 258,750
500,000 Monsanto Company, 6.00%, 7/1/00............................. 506,875
250,000 PPG Industries, Inc., 6.875%, 8/1/05........................ 269,375
------------
1,583,125
------------
COMPUTER EQUIPMENT -- 0.9%
500,000 IBM Credit Corporation, 7.00%, 11/5/07...................... 531,875
500,000 IBM Credit Corporation, 6.75%, 12/24/07..................... 505,625
------------
1,037,500
------------
CONSUMER NON-DURABLE -- 0.5%
250,000 American Home Products, Inc., 7.25%, 3/1/23................. 281,250
250,000 Kimberly-Clark Corporation, 6.875%, 2/15/14................. 274,063
------------
555,313
------------
DIVERSIFIED -- 0.6%
650,000 General Electric Capital Corporation, 6.90%, 9/15/15........ 704,438
------------
FINANCIAL SERVICES -- 11.2%
500,000 American General Corporation, 6.75%, 6/15/05................ 521,875
250,000 American General Corporation, 7.50%, 7/15/25................ 275,000
250,000 Associates Corporation of North America, 6.00%, 6/15/00..... 252,500
500,000 Associates Corporation of North America, 6.50%, 8/15/02..... 515,000
250,000 Bear Stearns Company, 6.25%, 12/1/00........................ 252,188
500,000 Bear Stearns Company, 6.625%, 10/1/04....................... 505,000
250,000 Bear Stearns Company, 6.65%, 12/1/04........................ 253,125
250,000 CIT Group Holdings, 6.375%, 10/1/02......................... 255,625
500,000 Citigroup, Inc., 6.125%, 6/15/00............................ 505,625
250,000 Citigroup, Inc., 6.625%, 9/15/05............................ 260,938
250,000 Ford Motor Credit Corporation, 6.06%, 12/27/00.............. 253,438
1,500,000 GMAC, 6.21%, 9/19/00........................................ 1,518,749
500,000 GMAC, 5.625%, 2/15/01....................................... 500,190
500,000 GMAC, 5.375%, 9/30/02....................................... 495,000
</TABLE>
See notes to financial statements.
7
<PAGE> 15
PERFORMANCE FUNDS TRUST
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
FINANCIAL SERVICES (CONTINUED)
$ 250,000 Household Finance Corporation, 6.375%, 6/30/00.............. $ 252,813
500,000 Household Finance Corporation, 6.70%, 6/15/02............... 514,375
500,000 Household Finance Corporation, 6.875%, 3/1/07............... 524,375
500,000 Household Finance Corporation, 7.30%, 7/30/12............... 547,499
500,000 International Lease Finance, 6.20%, 11/6/00................. 506,250
500,000 ITT Hartford Corporation, 7.30%, 11/01/15................... 548,749
500,000 Merrill Lynch & Company, 7.00%, 4/27/08..................... 544,375
250,000 Merrill Lynch & Company, 6.25%, 10/15/08.................... 259,063
1,000,000 Merrill Lynch & Company, 7.15%, 7/30/12..................... 1,036,249
500,000 Norwest Corporation, 6.00%, 3/15/00......................... 505,625
250,000 Norwest Corporation, 6.50%, 6/1/05.......................... 267,500
500,000 Norwest Financial, Inc., 6.375%, 9/15/02.................... 516,875
250,000 Salomon SB Holdings, Inc, 6.125%, 1/15/03................... 249,688
500,000 Salomon SB Holdings, Inc., 7.50%, 5/1/02.................... 527,500
500,000 Salomon SB Holdings, Inc., 6.625%, 7/1/02................... 511,250
------------
13,676,439
------------
PHARMACEUTICALS -- 0.2%
250,000 Eli Lilly & Company, 7.125%, 6/1/25......................... 280,000
------------
RETAIL -- 0.8%
250,000 J.C. Penney & Company, 6.875%, 10/15/15..................... 245,938
250,000 Rite-Aid Corporation, 6.875%, 8/15/13....................... 255,625
500,000 Sears Roebuck Acceptance Corporation, 6.70%, 11/15/06....... 529,375
------------
1,030,938
------------
RETAIL - GROCERY -- 0.2%
300,000 Albertsons, Inc., 6.375%, 6/1/00............................ 304,875
------------
TELECOMMUNICATIONS -- 2.1%
250,000 Motorola, Inc., 6.50%, 3/1/08............................... 265,938
250,000 Northern Telecommunications, 6.875%, 9/1/23................. 252,500
250,000 Southwestern Bell Telephone Company, 6.25%, 10/15/02........ 257,500
500,000 Southwestern Bell Telephone Company, 5.875%, 6/1/03......... 500,000
250,000 Southwestern Bell Telephone Company, 7.20%, 10/15/26........ 264,375
250,000 U.S. West Communications, Inc., 6.375%, 10/15/02............ 257,813
500,000 U.S. West Communications, Inc., 6.375, 7/15/08.............. 526,249
250,000 U.S. West Communications, Inc., 7.50%, 6/15/23.............. 270,938
------------
2,595,313
------------
TELEPHONE -- 1.9%
250,000 Chesapeake Bell Telephone Virginia, 7.00%, 7/15/25.......... 261,250
1,000,000 New York Telephone Company, 6.00%, 9/1/07................... 1,007,500
250,000 New York Telephone Company, 7.25%, 2/15/24.................. 262,188
</TABLE>
See notes to financial statements.
8
<PAGE> 16
PERFORMANCE FUNDS TRUST
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
TELEPHONE (CONTINUED)
$ 500,000 Southern New England Telecommunication, Inc., 7.00%,
8/15/05..................................................... $ 538,125
240,000 Southern New England Telecommunication, Inc., 7.125%,
8/1/07...................................................... 263,700
------------
2,332,763
------------
UTILITIES -- 2.8%
250,000 Consolidated Edison Company of New York, Inc., 6.625%,
7/1/05...................................................... 265,313
250,000 Consolidated Edison Company of New York, Inc., 7.500%,
6/15/23..................................................... 270,937
250,000 Duke Power Company, 6.875%, 8/1/23.......................... 256,875
225,000 Georgia Power Company, 6.625%, 4/1/03....................... 229,219
250,000 Northern States Power Company, 7.125%, 7/1/25............... 274,999
250,000 Pacific Gas & Electric Company, 6.25%, 3/1/04............... 258,125
250,000 Pacific Gas & Electric Company, 7.25%, 8/1/26............... 267,499
250,000 PacifiCorp, 6.625%, 6/1/07.................................. 264,063
250,000 Public Service Electric & Gas, 6.00%, 5/1/00................ 253,125
250,000 Southern California Edison Company, 6.50%, 6/1/01........... 257,188
250,000 Southern California Edison Company, 6.90%, 10/1/18.......... 252,813
500,000 Virginia Electric & Power Company, 6.75%, 2/1/07............ 525,624
------------
3,375,780
------------
TOTAL CORPORATE BONDS (Cost $32,306,009).................... 33,895,234
------------
U.S. GOVERNMENT AGENCY MORTGAGES -- 37.8%
FEDERAL HOME LOAN BANK -- 7.4%
5,000,000 Federal Home Loan Bank, 5.62%, 8/10/00...................... 5,059,750
3,000,000 Federal Home Loan Bank, 4.82%, 10/22/01..................... 2,985,930
1,000,000 Federal Home Loan Bank, 4.96%, 10/07/05..................... 987,380
------------
9,033,060
------------
FEDERAL HOME LOAN MORTGAGE CORP. -- 1.7%
1,000,000 Federal Home Loan Mortgage Corporation, 6.97%, 10/3/05...... 1,029,500
1,000,000 Federal Home Loan Mortgage Corporation, 7.405%, 4/19/06..... 1,051,950
------------
2,081,450
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 26.1%
2,000,000 Federal National Mortgage Association, 5.55%, 1/17/01....... 2,026,640
1,000,000 Federal National Mortgage Association, 7.00%, 5/10/01....... 1,008,900
6,000,000 Federal National Mortgage Association, 4.625%, 10/15/01..... 5,965,439
2,000,000 Federal National Mortgage Association, 7.08%, 5/6/02........ 2,017,140
2,000,000 Federal National Mortgage Association, 6.23%, 7/18/02....... 2,082,500
1,250,000 Federal National Mortgage Association, 6.06%, 1/13/03....... 1,260,075
1,000,000 Federal National Mortgage Association, 5.75%, 2/20/03....... 1,016,320
1,000,000 Federal National Mortgage Association, 6.05%, 4/17/03....... 1,010,950
500,000 Federal National Mortgage Association, 6.31%, 5/5/03........ 507,095
1,000,000 Federal National Mortgage Association, 6.01%, 7/17/03....... 1,008,220
1,000,000 Federal National Mortgage Association, 7.30%, 5/13/04....... 1,006,440
</TABLE>
See notes to financial statements.
9
<PAGE> 17
PERFORMANCE FUNDS TRUST
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
U.S. GOVERNMENT AGENCY MORTGAGES (CONTINUED)
FEDERAL NATIONAL MORTGAGE ASSOCIATION (CONTINUED)
$ 3,000,000 Federal National Mortgage Association, 6.30%, 12/20/04...... $ 3,063,330
2,000,000 Federal National Mortgage Association, 6.49%, 1/19/06....... 2,043,600
1,000,000 Federal National Mortgage Association, 7.32%, 5/3/06........ 1,050,390
1,000,000 Federal National Mortgage Association, 7.19%, 11/6/06....... 1,055,060
1,000,000 Federal National Mortgage Association, 7.33%, 4/2/07........ 1,067,830
2,000,000 Federal National Mortgage Association, 7.00%, 7/17/07....... 2,049,680
1,000,000 Federal National Mortgage Association, 6.17%, 1/15/08....... 1,023,960
1,000,000 Federal National Mortgage Association, 6.16%, 1/23/08....... 1,031,910
500,000 Federal National Mortgage Association, 6.51%, 5/6/08........ 520,525
------------
31,816,004
------------
U.S. GOVERNMENT AGENCY -- 2.6%
1,000,000 Tennessee Valley Authority, 5.28%, 9/14/01.................. 1,008,750
2,000,000 Tennessee Valley Authority, 6.375%, 6/15/05................. 2,120,000
------------
3,128,750
------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGES (Cost $45,182,145)... 46,059,264
------------
MONEY MARKET MUTUAL FUNDS -- 0.0%
29,560 AIM Treasury Money Market................................... 29,560
------------
TOTAL MONEY MARKET MUTUAL FUNDS (Cost $29,560).............. 29,560
------------
TOTAL INVESTMENTS (Cost $114,042,791)(a) -- 99.0%........... 120,772,883
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.0%............... 1,248,788
------------
TOTAL NET ASSETS -- 100.0%.................................. $122,021,671
============
</TABLE>
- ---------------
(a) At November 30, 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............................. $6,808,844
Unrealized depreciation............................. (78,752)
----------
Net unrealized appreciation......................... $6,730,092
==========
</TABLE>
See notes to financial statements.
10
<PAGE> 18
PERFORMANCE FUNDS TRUST
THE LARGE CAP EQUITY FUND
Schedule of Portfolio Investments
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- ------ -------------------- ------
<C> <S> <C>
COMMON STOCKS -- 99.9%
AEROSPACE/DEFENSE -- 1.3%
30,000 Boeing Company.............................................. $ 1,218,750
13,000 Lockheed Martin Corporation................................. 1,348,750
27,000 Raytheon Company, Class B................................... 1,495,125
------------
4,062,625
------------
AUTOMOTIVE -- 2.2%
21,822 DaimlerChrysler Ag(b)....................................... 2,000,850
50,000 Ford Motor Company.......................................... 2,762,500
32,000 General Motors Corporation.................................. 2,240,000
------------
7,003,350
------------
BANKING -- 3.1%
68,000 Bank of New York Company, Inc. ............................. 2,329,000
36,000 BankBoston Corporation...................................... 1,498,500
38,000 Chase Manhattan Corporation................................. 2,410,625
30,000 SunTrust Banks, Inc. ....................................... 2,094,375
50,000 Wells Fargo & Company....................................... 1,800,000
------------
10,132,500
------------
BEVERAGES -- 3.7%
31,000 Anheuser Busch Companies, Inc. ............................. 1,879,375
106,000 Coca-Cola Company........................................... 7,426,625
71,000 PepsiCo, Inc. .............................................. 2,746,813
------------
12,052,813
------------
BUSINESS EQUIPMENT & SERVICES -- 0.6%
17,000 FDX Corporation(b).......................................... 1,102,875
25,000 Ryder System, Inc. ......................................... 714,063
------------
1,816,938
------------
CAPITAL GOODS -- 1.6%
30,000 Black & Decker Corporation.................................. 1,625,625
30,000 Illinois Tool Works, Inc. .................................. 1,906,875
44,000 Sherwin-Williams Company.................................... 1,248,500
20,000 Timken Company.............................................. 385,000
------------
5,166,000
------------
CHEMICALS -- 0.8%
10,000 Dow Chemical Company........................................ 973,750
18,000 Praxair, Inc. .............................................. 687,375
23,000 Union Carbide Corporation................................... 1,029,250
------------
2,690,375
------------
COMPUTER EQUIPMENT -- 2.6%
21,000 Computer Associates International, Inc. .................... 929,250
69,000 Intel Corporation........................................... 7,426,125
------------
8,355,375
------------
</TABLE>
See notes to financial statements.
11
<PAGE> 19
PERFORMANCE FUNDS TRUST
THE LARGE CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- ------ -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
COMPUTER SOFTWARE -- 5.7%
21,000 Adobe Systems, Inc. ........................................ $ 939,750
69,000 Cisco Systems, Inc. .(b).................................... 5,200,875
100,000 Microsoft Corporation(b).................................... 12,200,000
------------
18,340,625
------------
COMPUTERS -- 4.9%
66,000 Compaq Computer Corporation................................. 2,145,000
60,000 Dell Computer Corporation(b)................................ 3,648,750
44,000 Hewlett Packard Company..................................... 2,761,000
45,000 International Business Machines Corporation................. 7,425,000
------------
15,979,750
------------
CONSUMER DURABLES -- 0.4%
14,000 Dana Corporation............................................ 546,000
14,000 Maytag Corporation.......................................... 757,750
------------
1,303,750
------------
CONSUMER NON-DURABLE -- 4.9%
28,000 Colgate-Palmolive Company................................... 2,397,500
33,000 ConAgra, Inc. .............................................. 1,037,438
62,000 Gillette Company............................................ 2,848,125
36,000 Kimberly-Clark Corporation.................................. 1,894,500
20,000 Premark International, Inc. ................................ 671,250
54,000 Procter & Gamble Company.................................... 4,731,750
25,000 Wrigley (WM.) Jr. Company................................... 2,203,125
------------
15,783,688
------------
CONSUMER SERVICES -- 1.5%
18,000 Dow Jones & Company, Inc. .................................. 860,625
45,000 Mattel, Inc. ............................................... 1,555,313
60,000 Meredith Corporation........................................ 2,328,750
------------
4,744,688
------------
ELECTRONICS -- 0.5%
24,000 National Service Industries, Inc. .......................... 927,000
12,000 Tandy Corporation........................................... 540,750
------------
1,467,750
------------
ENERGY -- 6.8%
46,000 Amoco Corporation........................................... 2,711,125
31,000 Chevron Corporation......................................... 2,592,375
104,000 Exxon Corporation........................................... 7,806,499
38,000 Halliburton Company......................................... 1,116,250
40,000 Mobil Corporation........................................... 3,447,500
91,000 Royal Dutch Petroleum -- New York Shares ADR................ 4,277,000
------------
21,950,749
------------
</TABLE>
See notes to financial statements.
12
<PAGE> 20
PERFORMANCE FUNDS TRUST
THE LARGE CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- ------ -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
ENTERTAINMENT -- 1.3%
36,000 King World Productions, Inc.(b)............................. $ 981,000
102,000 The Walt Disney Company..................................... 3,283,125
------------
4,264,125
------------
FINANCIAL SERVICES -- 8.8%
31,000 American Express Company.................................... 3,101,938
12,842 Associates First Capital.................................... 1,000,071
78,474 BankAmerica Corporation..................................... 5,115,523
111,000 Citigroup, Inc. ............................................ 5,570,812
54,000 Federal Home Loan Mortgage Corporation...................... 3,267,000
56,000 Federal National Mortgage Association....................... 4,074,000
25,000 Merrill Lynch............................................... 1,875,000
39,000 Morgan Stanley Dean Witter & Company........................ 2,720,250
23,000 SunAmerica, Inc. ........................................... 1,822,750
------------
28,547,344
------------
FOOD -- 1.2%
20,000 Hershey Foods Corporation................................... 1,345,000
32,000 Unilever NV. -- New York Shares ADR......................... 2,474,000
------------
3,819,000
------------
FUNERAL SERVICES -- 0.2%
17,000 Service Corporation International........................... 635,375
------------
HEALTH CARE -- 11.9%
68,000 Abbott Laboratories......................................... 3,264,000
51,000 American Home Products Corporation.......................... 2,715,750
21,000 Baxter International, Inc. ................................. 1,334,813
41,000 Bristol-Myers Squibb Company................................ 5,025,063
11,000 HCR Manor Care, Inc.(b)..................................... 349,250
56,000 Johnson & Johnson, Inc. .................................... 4,550,000
49,000 Merck & Company, Inc. ...................................... 7,588,874
84,000 Schering-Plough Corporation................................. 8,935,499
66,000 Warner Lambert Company...................................... 4,983,000
------------
38,746,249
------------
INSURANCE -- 2.5%
58,000 Allstate Corporation........................................ 2,363,500
51,000 American International Group, Inc. ......................... 4,794,000
8,000 MBIA, Inc. ................................................. 518,000
12,000 MGIC Investment Corporation................................. 527,250
------------
8,202,750
------------
MACHINERY & EQUIPMENT -- 0.3%
20,000 Caterpillar, Inc. .......................................... 988,750
------------
</TABLE>
See notes to financial statements.
13
<PAGE> 21
PERFORMANCE FUNDS TRUST
THE LARGE CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- ------ -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MULTI INDUSTRY -- 5.6%
30,000 Allied-Signal, Inc. ........................................ $ 1,320,000
134,000 General Electric Company.................................... 12,127,000
12,000 Lowes Corporation........................................... 1,200,000
38,000 Textron, Inc. .............................................. 2,952,125
29,000 Whitman Corporation......................................... 656,125
------------
18,255,250
------------
OIL/GAS -- 0.6%
30,000 Helmerich & Payne, Inc. .................................... 517,500
58,648 Sempra Energy............................................... 1,469,866
------------
1,987,366
------------
PHARMACEUTICALS -- 3.0%
47,000 Eli Lilly & Company......................................... 4,215,313
49,000 Pfizer, Inc. ............................................... 5,469,625
------------
9,684,938
------------
PUBLISHING & PRINTING -- 0.1%
14,000 New York Times Company, Class A............................. 434,875
------------
RAILROADS -- 0.4%
39,000 Norfolk Southern Corporation................................ 1,184,625
------------
RAW MATERIALS -- 2.0%
14,000 Aluminum Company of America................................. 1,037,750
22,000 Avery-Dennison Corporation.................................. 1,054,625
46,000 du Pont (E.I.) De Nemours and Company....................... 2,702,500
34,000 Ecolab, Inc. ............................................... 1,051,875
17,000 Hercules, Inc. ............................................. 558,875
------------
6,405,625
------------
RETAIL -- 6.4%
23,000 Circuit City Stores, Inc. .................................. 832,313
40,500 Gap, Inc. .................................................. 2,979,281
20,000 J.C. Penney Company......................................... 1,100,000
30,000 McDonalds Corporation....................................... 2,101,875
20,000 Sears, Roebuck & Company.................................... 948,750
98,000 Wal-Mart Stores, Inc. ...................................... 7,380,625
98,000 Walgreen Company............................................ 5,261,375
------------
20,604,219
------------
SHELTER -- 0.4%
18,000 Armstrong World Industries, Inc. ........................... 1,199,250
------------
</TABLE>
See notes to financial statements.
14
<PAGE> 22
PERFORMANCE FUNDS TRUST
THE LARGE CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
- ------ -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
TECHNOLOGY -- 1.7%
19,000 Ceridian Corporation(b)..................................... $ 1,236,188
50,000 Loral Space & Communications, Ltd.(b)....................... 918,750
29,000 Northrop Grumman Corporation................................ 2,356,249
19,000 Rockwell International Corporation.......................... 929,813
------------
5,441,000
------------
TELECOMMUNICATIONS -- 8.8%
52,000 Ameritech Corporation....................................... 2,814,500
65,000 AT&T Corporation............................................ 4,050,312
58,000 Bell Atlantic Corporation................................... 3,226,250
42,000 BellSouth Corporation....................................... 3,664,500
42,000 GTE Corporation............................................. 2,604,000
47,000 Lucent Technologies, Inc. .................................. 4,044,937
20,000 MCI WorldCom, Inc.(b)....................................... 1,180,000
27,000 Motorola, Inc. ............................................. 1,674,000
75,000 SBC Communications, Inc. ................................... 3,595,313
28,000 Sprint Corporation.......................................... 2,037,000
------------
28,890,812
------------
TEXTILES AND APPAREL -- 0.2%
10,000 VF Corporation.............................................. 490,625
------------
TRANSPORTATION & SHIPPING -- 0.4%
36,000 Burlington Northern Santa Fe Corporation.................... 1,224,000
------------
UTILITIES -- 1.0%
50,000 Entergy Corporation......................................... 1,465,625
52,000 FirstEnergy Corporation..................................... 1,608,750
------------
3,074,375
------------
UTILITIES -- ELECTRIC -- 2.5%
50,000 Consolidated Edison Company of New York, Inc. .............. 2,540,625
58,000 Detroit Edison Company...................................... 2,530,250
100,000 Southern Company............................................ 2,950,000
------------
8,020,875
------------
TOTAL COMMON STOCKS (Cost $150,790,938)..................... 322,952,404
------------
TOTAL INVESTMENTS (Cost $150,790,938)(a) -- 99.9%........... 322,952,404
OTHER ASSETS IN EXCESS OF LIABILITIES (0.1%)................ 206,803
------------
TOTAL NET ASSETS -- 100.0%.................................. $323,159,207
============
</TABLE>
- ---------------
(a) At November 30, 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........................... $173,041,895
Unrealized depreciation........................... (880,429)
------------
Net unrealized appreciation....................... $172,161,466
============
</TABLE>
See notes to financial statements.
15
<PAGE> 23
PERFORMANCE FUNDS TRUST
THE MID CAP EQUITY FUND
Schedule of Portfolio Investments
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
COMMON STOCKS -- 95.6%
BUSINESS EQUIPMENT & SERVICES -- 9.3%
165,000 Comdisco, Inc. ............................................. $ 3,011,250
90,000 Herman Miller, Inc. ........................................ 1,912,500
22,600 Jacobs Engineering Group, Inc.(b)........................... 851,738
65,000 Office Depot, Inc.(b)....................................... 2,112,500
50,000 Pittston Brink's Group...................................... 1,500,000
54,200 Reynolds & Reynolds Company................................. 1,144,975
110,000 Staples, Inc.(b)............................................ 3,843,124
68,300 Viad Corporation............................................ 1,592,244
-------------
15,968,331
-------------
CAPITAL GOODS -- 4.4%
24,000 HARSCO Corporation.......................................... 777,000
29,000 Kennametal, Inc. ........................................... 618,063
24,000 Precision Castparts Corporation............................. 1,060,500
15,000 Southdown, Inc. ............................................ 873,750
50,000 Sundstrand Corporation...................................... 2,700,000
40,000 Trinity Industries.......................................... 1,547,500
-------------
7,576,813
-------------
CONSUMER DURABLES -- 4.6%
30,000 Carlisle Companies, Inc. ................................... 1,329,375
35,200 Danaher Corporation......................................... 1,606,000
72,000 Harley-Davidson, Inc. ...................................... 3,010,500
56,000 Kaydon Corporation.......................................... 1,977,500
-------------
7,923,375
-------------
CONSUMER NON-DURABLE -- 5.2%
92,700 Coca-Cola Enterprises, Inc. ................................ 3,505,218
48,000 Interstate Bakeries Corporation............................. 1,260,000
92,000 Jones Apparel Group, Inc.(b)................................ 2,133,250
56,299 Lancaster Colony Corporation................................ 1,548,223
28,700 Unifi, Inc. ................................................ 552,475
-------------
8,999,166
-------------
CONSUMER SERVICES 2.6%
28,500 Banta Corporation........................................... 758,813
40,000 Belo (A.H.) Corporation-Common Series A..................... 755,000
83,000 International Game Technologies............................. 1,914,187
2,000 Washington Post Company..................................... 1,064,375
-------------
4,492,375
-------------
</TABLE>
See notes to financial statements.
16
<PAGE> 24
PERFORMANCE FUNDS TRUST
THE MID CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
ENERGY -- 3.2%
26,000 BJ Services Company(b)...................................... $ 359,125
78,000 ENSCO International, Inc. .................................. 745,875
40,000 Smith International, Inc.(b)................................ 965,000
45,000 Tidewater, Inc.............................................. 1,037,813
48,600 Tosco Corporation........................................... 1,269,675
47,000 Valero Energy............................................... 987,000
22,000 Varco International, Inc.(b)................................ 149,875
-------------
5,514,363
-------------
FINANCIAL SERVICES -- 15.3%
82,400 AFLAC, Inc.................................................. 3,038,500
10,000 Ambac Financial Group, Inc. ................................ 610,000
26,000 Charter One Financial, Inc. ................................ 771,875
77,000 City National Corporation................................... 2,877,875
37,800 Crestar Financial Corporation............................... 2,508,975
84,000 Edwards (A.G.), Inc......................................... 3,097,500
117,450 First Security Corporation.................................. 2,363,681
25,000 First Tennessee National Corporation........................ 837,500
15,000 Old Kent Financial Corporation.............................. 645,000
38,000 Old Republic International Corporation...................... 809,875
85,500 Paine Webber Group, Inc. ................................... 3,494,812
23,000 Price (T. Rowe) Associates.................................. 822,250
19,000 ReliaStar Financial Corporation............................. 893,000
20,000 Robert Half International, Inc.(b).......................... 940,000
52,500 SouthTrust Corporation...................................... 1,929,375
16,000 Zions Bancorporation........................................ 808,000
-------------
26,448,218
-------------
HEALTH CARE -- 8.6%
30,000 Beckman Coulter, Inc. ...................................... 1,447,500
60,000 First Health Group Corporation(b)........................... 956,250
32,000 Hillenbrand Industry, Inc. ................................. 1,818,000
19,000 McKesson Corporation........................................ 1,352,563
70,000 Mylan Laboratories, Inc. ................................... 2,323,125
62,000 Stryker Corporation(b)...................................... 2,619,500
80,000 Watson Pharmaceutical, Inc.(b).............................. 4,310,000
-------------
14,826,938
-------------
RAW MATERIALS -- 3.3%
45,000 Cleveland Cliffs, Inc. ..................................... 1,712,813
23,000 Vulcan Materials Company.................................... 2,883,624
86,100 Wellman, Inc. .............................................. 1,043,963
-------------
5,640,400
-------------
</TABLE>
See notes to financial statements.
17
<PAGE> 25
PERFORMANCE FUNDS TRUST
THE MID CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
RETAIL -- 6.2%
55,000 BJ's Wholesale Club, Inc.(b)................................ $ 2,120,938
118,000 Claire's Stores, Inc. ...................................... 2,006,000
34,800 Hannaford Brothers Company.................................. 1,626,900
52,500 Outback Steakhouse(b)....................................... 1,863,750
25,000 Ross Stores, Inc. .......................................... 909,375
49,000 Tiffany & Company........................................... 2,140,687
-------------
10,667,650
-------------
SHELTER -- 2.6%
119,375 Clayton Homes, Inc. ........................................ 1,850,313
102,000 Leggett & Platt, Inc. ...................................... 2,314,125
10,000 Pentair, Inc. .............................................. 376,875
-------------
4,541,313
-------------
TECHNOLOGY -- 13.6%
25,000 ADC Telecommunications, Inc.(b)............................. 746,875
90,000 American Power Conversion Corporation(b).................... 3,723,749
20,000 AMETEK, Inc. ............................................... 415,000
30,000 Avnet, Inc. ................................................ 1,745,625
76,500 Cadence Design Systems, Inc.(b)............................. 2,151,563
36,000 Compuware Corporation(b).................................... 2,241,000
50,000 Cordant Technologies, Inc. ................................. 2,009,375
14,000 Lexmark International Group, Inc.(b)........................ 1,069,250
13,000 Linear Technology Corporation............................... 910,813
13,000 Litton Industries, Inc.(b).................................. 795,438
25,000 Network Associates, Inc.(b)................................. 1,271,875
120,000 Quantum Corporation(b)...................................... 2,654,999
23,000 Solectron Corporation(b).................................... 1,522,313
24,000 Storage Technology Corporation(b)........................... 840,000
32,000 Varian Associates, Inc. .................................... 1,266,000
-------------
23,363,875
-------------
TRANSPORTATION & SHIPPING -- 2.4%
36,000 Airborne Freight Corporation................................ 960,750
18,000 Alaska Air Group, Inc.(b)................................... 673,875
44,000 ASA Holdings, Inc. ......................................... 1,493,250
22,000 Kansas City Southern Industries............................. 939,125
-------------
4,067,000
-------------
</TABLE>
See notes to financial statements.
18
<PAGE> 26
PERFORMANCE FUNDS TRUST
THE MID CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
UTILITIES -- 14.3%
17,000 Alliant Communications, Inc. Class A........................ $ 484,500
63,000 Century Telephone Enterprises............................... 3,590,999
27,000 Cincinnati Bell, Inc. ...................................... 850,500
38,700 Cleco Corporation........................................... 1,323,056
38,000 CMS Energy Corporation...................................... 1,852,500
61,000 Conectiv, Inc. ............................................. 1,403,000
61,000 Energy East Corporation..................................... 3,236,813
60,000 Illinova Corporation........................................ 1,623,750
34,000 MCN Corporation............................................. 643,875
34,000 New England Electric System................................. 1,419,500
64,000 NIPSCO Industries, Inc. .................................... 1,876,000
50,000 Oklahoma Gas & Electric Company............................. 1,396,875
46,000 Pinnacle West Capital....................................... 2,095,875
67,000 Public Service Company of New Mexico........................ 1,302,313
45,000 SCANA Corporation........................................... 1,468,125
-------------
24,567,681
-------------
TOTAL COMMON STOCKS (Cost $122,438,709)..................... 164,597,498
-------------
MONEY MARKET MUTUAL FUNDS -- 2.1%
3,533,686 AIM Treasury Money Market................................... 3,533,686
-------------
TOTAL MONEY MARKET MUTUAL FUNDS (Cost $3,533,686)........... 3,533,686
-------------
U.S. TREASURY BILLS -- 2.3%
4,000,000 U.S. Treasury Bills, 1/21/99................................ 3,974,880
-------------
TOTAL U.S. TREASURY BILLS (Cost $3,977,277)................. 3,974,880
-------------
TOTAL INVESTMENTS (Cost $129,949,672) (a) - 100.0%.......... 172,106,064
Other assets in excess of liabilities - 0.0%................ 83,948
-------------
TOTAL NET ASSETS -- 100.0%.................................. $ 172,190,012
=============
</TABLE>
- ---------------
(a) At November 30, 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............................ $ 53,053,977
Unrealized depreciation............................ (10,897,585)
------------
Net unrealized appreciation........................ $ 42,156,392
============
</TABLE>
See notes to financial statements.
19
<PAGE> 27
PERFORMANCE FUNDS TRUST
THE SMALL CAP EQUITY FUND
Schedule of Portfolio Investments
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- -------------------- ------
<C> <S> <C>
COMMON STOCKS -- 95.1%
BUSINESS EQUIPMENT & SERVICES -- 10.1%
41,200 ADVO, Inc.(b)............................................... $ 1,066,050
15,000 Catalina Marketing Corporation(b)........................... 873,750
30,000 Computer Task Group, Inc. .................................. 810,000
3,000 Kronos, Inc.(b)............................................. 129,750
10,000 National Computer Systems, Inc. ............................ 328,750
10,000 National Data Corporation................................... 373,750
15,000 New England Business Services, Inc. ........................ 480,000
55,000 Paxar Corporation(b)........................................ 577,500
15,000 Stone & Webster, Inc. ...................................... 510,000
35,000 Zebra Technologies, Class A(b).............................. 1,174,687
-----------
6,324,237
-----------
CAPITAL GOODS -- 7.4%
20,000 Applied Power, Inc. ........................................ 712,500
13,000 Lone Star Industries Corporation............................ 983,938
35,000 Manitowoc Company, Inc. .................................... 1,391,249
2,835 NSC Corporation............................................. 1,860
20,000 Regal-Beloit Corporation.................................... 500,000
10,000 Robbins & Myers, Inc. ...................................... 200,000
25,000 Texas Industries, Inc. ..................................... 723,438
4,000 TJ International, Inc. ..................................... 94,500
-----------
4,607,485
-----------
CONSUMER DURABLES -- 2.2%
22,500 A.O. Smith Corporation...................................... 559,688
28,000 Intermet Corporation........................................ 383,250
5,000 Standard Products Company................................... 93,125
50,000 TBC Corporation(b).......................................... 350,000
-----------
1,386,063
-----------
CONSUMER NON-DURABLE -- 8.3%
20,000 BMC Industries, Inc. ....................................... 123,750
5,000 Canandaigua Brands, Inc., Class A(b)........................ 248,750
25,000 Fleming Company............................................. 251,563
25,000 Kellwood Company............................................ 675,000
15,000 Natures Sunshine............................................ 234,375
36,000 Nautica Enterprises, Inc.(b)................................ 708,749
20,000 Pillowtex Corporation....................................... 675,000
28,000 Russ Berrie & Company, Inc. ................................ 633,500
15,000 Smithfield Foods, Inc.(b)................................... 396,563
</TABLE>
See notes to financial statements.
20
<PAGE> 28
PERFORMANCE FUNDS TRUST
THE SMALL CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CONSUMER NON-DURABLE (CONTINUED)
25,000 St. John Knits, Inc. ....................................... $ 500,000
5,000 Timberland Company, Class A................................. 204,688
40,000 Wolverine World Wide, Inc. ................................. 545,000
-----------
5,196,938
-----------
CONSUMER SERVICES -- 2.6%
18,750 Marcus Corporation.......................................... 283,594
45,000 Merrill Corporation......................................... 765,000
20,000 Prime Hospitality Corporation(b)............................ 175,000
10,000 Valassis Communications, Inc.(b)............................ 428,750
-----------
1,652,344
-----------
ENERGY -- 2.9%
30,000 Input/Output, Inc.(b)....................................... 245,625
31,000 Oceaneering International, Inc.(b).......................... 385,562
25,000 Offshore Logistics(b)....................................... 310,938
10,000 Pool Energy Services Company(b)............................. 112,500
26,000 Seitel, Inc.(b)............................................. 347,750
12,000 Tuboscope, Inc.(b).......................................... 99,750
30,000 Vintage Petroleum, Inc. .................................... 309,375
-----------
1,811,500
-----------
FINANCIAL SERVICES -- 16.0%
5,000 American Bankers Insurance Group, Inc. ..................... 226,875
70,000 AMRESCO, Inc.(b)............................................ 511,875
13,000 Arthur J. Gallagher & Company............................... 602,875
50,000 Capital Re Corporation...................................... 987,500
28,000 CMAC Investment Corporation................................. 1,350,999
40,000 Enhance Financial Services Corporation...................... 1,175,000
35,000 Fidelity National Financial................................. 1,148,438
25,000 First American Financial Corporation........................ 765,625
25,000 Fremont General Corporation................................. 1,259,375
60,000 Frontier Insurance Group, Inc. ............................. 851,250
30,000 Orion Capital Corporation................................... 1,083,750
-----------
9,963,562
-----------
HEALTH CARE -- 10.8%
40,000 ADAC Laboratories(b)........................................ 1,040,000
45,000 Alpharma, Inc. ............................................. 1,619,999
2,000 Diagnostic Products Corporation............................. 51,750
45,000 Integrated Health Services.................................. 503,438
40,000 Orthodontic Centers Of America, Inc.(b)..................... 765,000
25,000 Patterson Dental Company(b)................................. 1,040,625
40,000 Safeskin Corporation(b)..................................... 760,000
</TABLE>
See notes to financial statements.
21
<PAGE> 29
PERFORMANCE FUNDS TRUST
THE SMALL CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
HEALTH CARE (CONTINUED)
30,000 Sola International, Inc.(b)................................. $ 476,250
10,000 Universal Health Services(b)................................ 536,250
-----------
6,793,312
-----------
RAW MATERIALS -- 3.6%
12,000 Cambrex Corporation......................................... 336,000
10,000 Chemed Corporation.......................................... 338,750
6,000 Macdermid, Inc. ............................................ 221,250
30,000 Mueller Industries, Inc.(b)................................. 684,375
40,000 Quaker Chemical Corporation................................. 687,500
-----------
2,267,875
-----------
RETAIL -- 7.6%
10,000 Cash America International.................................. 168,750
45,000 Cato Corporation............................................ 610,313
30,000 CKE Restaurants, Inc. ...................................... 733,125
30,000 Dress Barn, Inc.(b)......................................... 442,500
52,000 Foodmaker, Inc.(b).......................................... 1,007,500
35,000 Landry's Seafood Restaurants, Inc.(b)....................... 284,375
22,500 Men's Wearhouse(b).......................................... 569,531
30,000 Pier 1 Imports, Inc. ....................................... 322,500
20,000 Shopko Stores, Inc.(b)...................................... 645,000
-----------
4,783,594
-----------
SHELTER -- 3.0%
30,000 D. R. Horton, Inc. ......................................... 566,250
7,500 Ethan Allen Interiors, Inc. ................................ 296,250
35,000 MDC Holdings, Inc. ......................................... 643,125
9,000 Oakwood Homes Corporation................................... 134,438
8,000 Ryland Group, Inc. ......................................... 212,500
-----------
1,852,563
-----------
TECHNOLOGY -- 13.0%
10,000 Alliant Techsystems, Inc.(b)................................ 761,875
45,000 BE Aerospace, Inc.(b)....................................... 1,068,750
35,000 Benchmark Electronics, Inc.(b).............................. 875,000
20,000 Cube Microsystems, Inc.(b).................................. 523,750
15,000 Dialogic Corporation(b)..................................... 337,500
10,000 Integrated Circuit System(b)................................ 143,750
25,000 Kulicke & Soffa Industries(b)............................... 426,563
35,000 Microage, Inc.(b)........................................... 612,500
25,000 Novellus Systems(b)......................................... 1,240,625
50,000 Plexus Corporation(b)....................................... 1,499,999
</TABLE>
See notes to financial statements.
22
<PAGE> 30
PERFORMANCE FUNDS TRUST
THE SMALL CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
- --------- -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
TECHNOLOGY (CONTINUED)
6,000 Progress Software Corporation(b)............................ $ 152,250
30,000 Unitrode Corporation(b)..................................... 508,125
-----------
8,150,687
-----------
TRANSPORTATION & SHIPPING -- 3.1%
35,000 Arkansas Best Corporation(b)................................ 205,625
31,000 Comair Holdings, Inc. ...................................... 949,375
12,500 M.S. Carriers, Inc.(b)...................................... 306,250
17,000 U.S. Freightways Corporation................................ 456,875
-----------
1,918,125
-----------
UTILITIES -- 4.5%
11,000 Central Hudson Gas and Electric Corporation................. 444,813
13,000 Commonwealth Energy Systems Company......................... 500,500
5,400 Connecticut Energy Corporation.............................. 150,863
15,000 Eastern Utilities Association............................... 370,313
9,000 Orange & Rockland Utilities................................. 506,249
11,500 Piedmont Natural Gas Company, Inc. ......................... 402,500
12,500 TNP Enterprises, Inc. ...................................... 475,000
-----------
2,850,238
-----------
TOTAL COMMON STOCKS (Cost $66,503,479)...................... 59,558,523
-----------
MONEY MARKET MUTUAL FUNDS -- 5.3%
1,332,926 AIM Treasury Money Market................................... 1,332,926
2,000,000 Dreyfus Treasury Cash Management............................ 2,000,000
-----------
TOTAL MONEY MARKET MUTUAL FUNDS (Cost $3,332,926)........... 3,332,926
-----------
TOTAL INVESTMENTS (Cost $69,836,405)(a) -- 100.4%........... 62,891,449
-----------
LIABILITIES IN EXCESS OF OTHER ASSETS -- 0.4%............... (237,247)
-----------
TOTAL NET ASSETS -- 100.0%.................................. $62,654,202
===========
</TABLE>
- ---------------
(a) At November 30, 1998, the aggregate cost of investment securities for
federal income tax purposes differs from the value of net unrealized
depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................... $ 5,368,610
Unrealized depreciation........................... (12,313,566)
------------
Net unrealized depreciation....................... $ (6,944,956)
============
</TABLE>
See notes to financial statements.
23
<PAGE> 31
PERFORMANCE FUNDS TRUST
Statements of Assets and Liabilities (unaudited)
November 30, 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 $454,811,421,
$123,405,615 and $114,042,791, respectively)......... $454,811,421 $124,232,023 $120,772,883
Repurchase agreements, at value........................ 38,600,000 -- --
Dividends and interest receivable...................... 821,389 808,444 1,752,760
Receivable for Fund shares sold........................ 986 70,022 54,738
------------ ------------ ------------
Total Assets......................................... 494,233,796 125,110,489 122,580,381
------------ ------------ ------------
LIABILITIES:
Dividends payable...................................... 1,970,953 516,220 493,697
Payable for Fund shares redeemed....................... 10,462 63,103 5,105
Payable for securities purchased....................... -- 998,880 --
Advisory fees payable.................................. 60,576 40,496 43,414
Administrative services fees payable................... 6,549 3,546 3,423
Distribution fees payable (Classes A/B)................ 20,009 1,214 1,313
Custodian fees payable................................. 16,154 4,050 3,859
Other accrued expenses................................. 24,450 24,898 7,899
------------ ------------ ------------
Total Liabilities.................................. 2,109,153 1,652,407 558,710
------------ ------------ ------------
NET ASSETS:.............................................. $492,124,643 $123,458,082 $122,021,671
============ ============ ============
NET ASSETS CONSIST OF:
Shares of beneficial interest, at par value............ $ 492,126 $ 12,449 $ 11,496
Additional paid-in capital............................. 491,643,169 124,793,767 119,584,046
Accumulated undistributed (distributions in excess of)
net investment income................................ 5,829 (25,116) (46,474)
Accumulated net realized loss on investments........... (16,481) (2,149,426) (4,257,489)
Net unrealized appreciation from investments........... -- 826,408 6,730,092
------------ ------------ ------------
Total Net Assets................................... $492,124,643 $123,458,082 $122,021,671
============ ============ ============
SHARES OF BENEFICIAL INTEREST:
INSTITUTIONAL CLASS:
Net Assets........................................... $392,395,345 $117,300,388 $115,461,312
Shares of beneficial interest outstanding............ 392,394,288 11,827,593 10,877,323
============ ============ ============
Net Asset Value, offering and redemption price per
share.............................................. $1.00 $9.92 $10.61
===== ===== ======
CLASS A:
Net Assets........................................... $ 99,728,285 $ 6,157,694 $ 6,511,117
Shares of beneficial interest outstanding............ 99,730,262 621,035 613,924
============ ============ ============
Net Asset Value, offering and redemption price per
share.............................................. $1.00 $9.92 $10.61
===== ===== ======
Maximum sales charge................................. None 3.00% 5.25%
===== ===== ======
Maximum offering price (100%/(100%-maximum sales
charge) of net asset value adjusted to the nearest
cent) per share.................................... $1.00 $10.23 $11.20
===== ====== ======
CLASS B:
Net Assets........................................... $1,013 NA $49,242
Shares of beneficial interest outstanding............ 1,013 4,643
====== =======
Net Asset Value, offering and redemption price per
share*............................................. $1.00 $10.61
===== ======
</TABLE>
- ---------------
* Redemption price per Class B shares varies based on length of time shares are
held.
See notes to financial statements.
24
<PAGE> 32
PERFORMANCE FUNDS TRUST
Statements of Assets and Liabilities (continued)
November 30, 1998
(unaudited)
<TABLE>
<CAPTION>
LARGE CAP MID CAP SMALL CAP
EQUITY FUND EQUITY FUND EQUITY FUND
ASSETS: ------------ ------------ -----------
<S> <C> <C> <C>
Investments in securities, at value (cost $150,790,938,
$129,949,672 and $69,836,405, respectively)............. $322,952,404 $172,106,064 $62,891,449
Dividends and interest receivable......................... 529,504 173,459 34,842
Receivable for Fund shares sold........................... 176,846 121,867 52,732
Deferred organization costs............................... -- 2,526 7,596
------------ ------------ -----------
Total Assets.......................................... 323,658,754 172,403,916 62,986,619
------------ ------------ -----------
LIABILITIES:
Dividends payable......................................... 230,581 58,258 --
Payable for Fund shares redeemed.......................... 18,562 16,578 7,127
Payable for securities purchased.......................... -- -- 252,763
Cash Overdraft............................................ 16,760 -- --
Advisory fees payable..................................... 158,335 106,565 50,867
Administrative services fees payable...................... 9,547 5,053 1,810
Distribution fees payable (Classes A/B)................... 10,538 4,210 980
Custodian fees payable.................................... 10,556 5,684 2,035
Other accrued expenses.................................... 44,668 19,556 16,835
------------ ------------ -----------
Total Liabilities..................................... 499,547 213,904 332,417
------------ ------------ -----------
NET ASSETS......................................... $323,159,207 $172,190,012 $62,654,202
============ ============ ===========
NET ASSETS CONSIST OF:
Shares of beneficial interest, at par value............... $ 12,026 $ 9,286 $ 7,317
Additional paid-in capital................................ 138,237,780 119,631,744 70,596,019
Accumulated distributions in excess of net investment
income.................................................. (20,492) (11,985) (100,675)
Accumulated undistributed net realized gain/(loss) on
investments............................................. 12,768,427 10,404,575 (903,503)
Net unrealized appreciation/(depreciation) from
investments............................................. 172,161,466 42,156,392 (6,944,956)
------------ ------------ -----------
Total Net Assets...................................... $323,159,207 $172,190,012 $62,654,202
============ ============ ===========
SHARES OF BENEFICIAL INTEREST:
INSTITUTIONAL CLASS:
Net Assets.............................................. $271,029,107 $151,610,245 $57,640,887
Shares of beneficial interest outstanding............... 10,085,758 8,175,861 6,729,233
============ ============ ===========
Net Asset Value, offering and redemption price per
share................................................. $26.87 $18.54 $8.57
====== ====== =====
CLASS A:
Net Assets.............................................. $ 51,774,950 $ 20,485,825 $ 4,976,020
Shares of beneficial interest outstanding............... 1,927,420 1,105,115 582,918
============ ============ ===========
Net Asset Value, offering and redemption price per
share................................................. $26.86 $18.54 $8.54
====== ====== =====
Maximum sales charge.................................... 5.25% 5.25% 5.25%
====== ====== =====
Maximum offering price (100%/(100%-maximum sales charge)
of net asset value adjusted to the nearest cent) per
share................................................. $28.35 $19.57 $9.01
====== ====== =====
CLASS B:
Net Assets.............................................. $355,150 $93,942 $37,295
Shares of beneficial interest outstanding............... 13,230 5,077 4,369
======== ======= =======
Net Asset Value, offering and redemption price per
share*................................................ $26.84 $18.50 $8.54
====== ====== =====
</TABLE>
- ---------------
* Redemption price per Class B shares varies based on length of time shares are
held.
See notes to financial statements.
25
<PAGE> 33
PERFORMANCE FUNDS TRUST
Statements of Operations (unaudited)
For the Six Months Ended November 30, 1998
<TABLE>
<CAPTION>
MONEY SHORT TERM INTERMEDIATE
MARKET GOVERNMENT TERM GOVERNMENT
FUND INCOME FUND INCOME FUND
----------- ----------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest............................................... $12,608,416 $3,573,083 $3,662,318
Dividend............................................... 4,852 42,996 6,882
----------- ---------- ----------
Total Investment Income................................ 12,613,268 3,616,079 3,669,200
----------- ---------- ----------
EXPENSES:
Advisory fees.......................................... 685,509 244,847 298,918
Administrative services fees........................... 338,796 89,578 87,471
Distribution fees (Class A)............................ 104,623 6,050 7,478
Distribution fees (Class B)*........................... 2 -- 6
Custodian fees......................................... 91,402 24,485 23,914
Audit and legal fees................................... 77,703 19,025 24,571
Fund accounting fees................................... 20,493 17,514 25,315
Transfer agency fees................................... 35,904 9,874 18,273
Organization expenses.................................. 3,738 -- --
Trustees' fees and expenses............................ 8,846 2,743 2,651
Other expenses......................................... 75,223 10,692 13,336
----------- ---------- ----------
Total Expenses....................................... 1,442,239 424,808 501,933
Less: Expenses waived by Advisor and/or
Administrator...................................... (536,384) -- (29,893)
----------- ---------- ----------
Total Net Expenses................................... 905,855 424,808 472,040
----------- ---------- ----------
NET INVESTMENT INCOME/(LOSS)........................... 11,707,413 3,191,271 3,197,160
----------- ---------- ----------
NET REALIZED/UNREALIZED GAIN ON INVESTMENTS:
Net realized gain/(loss) on investments................ 488 528,434 238,385
Net change in unrealized appreciation/(depreciation) on
investments.......................................... -- 339,677 2,864,775
----------- ---------- ----------
Net realized/unrealized gain/(loss) on investments..... 488 868,111 3,103,160
----------- ---------- ----------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS............................................. $11,707,901 $4,059,382 $6,300,320
=========== ========== ==========
</TABLE>
- ---------------
* Class B commenced operations on October 2, 1998.
See notes to financial statements.
26
<PAGE> 34
PERFORMANCE FUNDS TRUST
Statements of Operations (unaudited) (continued)
For the Six Months Ended November 30, 1998
<TABLE>
<CAPTION>
LARGE CAP MID CAP SMALL CAP
EQUITY FUND EQUITY FUND EQUITY FUND
----------- ------------ -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest.................................................. $ -- $ 161,065 $ --
Dividend.................................................. 2,346,948 1,127,831 320,818
----------- ------------ -----------
Total Investment Income................................... 2,346,948 1,288,896 320,818
----------- ------------ -----------
EXPENSES:
Advisory fees............................................. 922,927 646,028 302,907
Administrative services fees.............................. 225,115 125,956 44,291
Distribution fees (Class A)............................... 59,631 26,135 6,093
Distribution fees (Class B)*.............................. 177 23 7
Custodian fees............................................ 61,529 34,455 12,116
Audit and legal fees...................................... 49,160 30,094 13,371
Fund accounting fees...................................... 19,435 19,004 18,417
Transfer agency fees...................................... 49,638 37,049 14,573
Organization expenses..................................... -- 4,801 994
Trustees' fees and expenses............................... 5,642 3,455 1,139
Other expenses............................................ 50,073 24,203 7,585
----------- ------------ -----------
Total Expenses.......................................... 1,443,347 951,203 421,493
----------- ------------ -----------
NET INVESTMENT INCOME/(LOSS).............................. 903,601 337,693 (100,675)
----------- ------------ -----------
NET REALIZED/UNREALIZED GAIN ON INVESTMENTS:
Net realized gain/(loss) on investments................... (193,064) 4,593,297 (1,507,384)
Net change in unrealized appreciation/(depreciation) on
investments............................................. 22,299,818 (19,688,149) (7,546,419)
----------- ------------ -----------
Net realized/unrealized gain/(loss) on investments........ 22,106,754 (15,094,852) (9,053,803)
----------- ------------ -----------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $23,010,355 $(14,757,159) $(9,154,478)
=========== ============ ===========
</TABLE>
- ---------------
* Class B commenced operations on October 2, 1998.
See notes to financial statements.
27
<PAGE> 35
PERFORMANCE FUNDS TRUST
Statements of Changes in Net Assets (unaudited)
<TABLE>
<CAPTION>
SHORT TERM GOVERNMENT
MONEY MARKET FUND INCOME FUND
--------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1998 1998 1998 1998
---------------- ---------- ---------------- ----------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income/(loss)........ $ 11,707,413 $ 23,754,971 $ 3,191,271 $ 6,775,912
Net realized gain/(loss) on
investments....................... 488 (7,755) 528,434 709,547
Net change in unrealized
appreciation/ (depreciation) on
investments....................... -- -- 339,677 552,544
------------- ------------- ------------ ------------
Net increase in net assets resulting
from operations................... 11,707,901 23,747,216 4,059,382 8,038,003
------------- ------------- ------------ ------------
Distributions to shareholders from:
Net investment income
Institutional Class............... (9,648,245) (17,909,471) (3,070,935) (6,690,972)
Class A........................... (2,059,162) (5,845,500) (120,336) (84,940)
Class B*.......................... (6) -- -- --
------------- ------------- ------------ ------------
(11,707,413) (23,754,971) (3,191,271) (6,775,912)
------------- ------------- ------------ ------------
In excess of net investment income
Institutional Class............... -- -- -- --
Class A........................... -- -- -- --
------------- ------------- ------------ ------------
-- -- -- --
------------- ------------- ------------ ------------
Net decrease in net assets
resulting from distributions.... (11,707,413) (23,754,971) (3,191,271) (6,775,912)
------------- ------------- ------------ ------------
Shares of beneficial interest:
Proceeds from shares issued
Institutional Class............... 446,402,433 694,995,401 12,209,228 18,548,663
Class A........................... 90,497,245 210,472,260 7,761,825 2,760,371
Class B*.......................... 1,010 -- -- --
------------- ------------- ------------ ------------
536,900,688 905,467,661 19,971,053 21,309,034
------------- ------------- ------------ ------------
Proceeds from reinvestment of
dividends
Institutional Class............... 62,298 67,649 2,266,476 4,951,318
Class A........................... 1,935,715 5,461,030 82,482 57,098
Class B*.......................... 3 -- -- --
------------- ------------- ------------ ------------
1,998,016 5,528,679 2,348,958 5,008,416
------------- ------------- ------------ ------------
Cost of shares redeemed
Institutional Class............... (403,093,613) (666,771,987) (18,216,629) (30,975,873)
Class A........................... (66,499,103) (234,357,245) (4,897,000) (852,229)
------------- ------------- ------------ ------------
(469,592,716) (901,129,232) (23,113,629) (31,828,102)
------------- ------------- ------------ ------------
Net increase/(decrease) in net
assets from shares of beneficial
interest transactions............. 69,305,988 9,867,108 (793,618) (5,510,652)
------------- ------------- ------------ ------------
Total increase/(decrease) in net
assets.............................. 69,306,476 9,859,353 74,493 (4,248,561)
NET ASSETS:
Beginning of period................. 422,818,167 412,958,814 123,383,589 127,632,150
------------- ------------- ------------ ------------
End of period....................... $ 492,124,643 $ 422,818,167 $123,458,082 $123,383,589
============= ============= ============ ============
<CAPTION>
INTERMEDIATE TERM GOVERNMENT
INCOME FUND
--------------------------------
SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, MAY 31,
1998 1998
---------------- ----------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income/(loss)........ $ 3,197,160 $ 6,618,283
Net realized gain/(loss) on
investments....................... 238,385 123,368
Net change in unrealized
appreciation/ (depreciation) on
investments....................... 2,864,775 4,477,874
------------ ------------
Net increase in net assets resulting
from operations................... 6,300,320 11,219,525
------------ ------------
Distributions to shareholders from:
Net investment income
Institutional Class............... (3,044,158) (6,587,342)
Class A........................... (152,972) (115,823)
Class B*.......................... (30) --
------------ ------------
(3,197,160) (6,703,165)
------------ ------------
In excess of net investment income
Institutional Class............... -- (45,724)
Class A........................... -- (750)
------------ ------------
-- (46,474)
------------ ------------
Net decrease in net assets
resulting from distributions.... (3,197,160) (6,749,639)
------------ ------------
Shares of beneficial interest:
Proceeds from shares issued
Institutional Class............... 15,516,006 38,379,424
Class A........................... 6,521,720 3,318,154
Class B*.......................... 48,960 --
------------ ------------
22,086,686 41,697,578
------------ ------------
Proceeds from reinvestment of
dividends
Institutional Class............... 2,222,319 4,721,379
Class A........................... 126,179 77,338
Class B*.......................... 3 --
------------ ------------
2,348,501 4,798,717
------------ ------------
Cost of shares redeemed
Institutional Class............... (23,966,596) (23,009,377)
Class A........................... (4,258,564) (955,677)
------------ ------------
(28,225,160) (23,965,054)
------------ ------------
Net increase/(decrease) in net
assets from shares of beneficial
interest transactions............. (3,789,973) 22,531,241
------------ ------------
Total increase/(decrease) in net
assets.............................. (686,813) 27,001,127
NET ASSETS:
Beginning of period................. 122,708,484 95,707,357
------------ ------------
End of period....................... $122,021,671 $122,708,484
============ ============
</TABLE>
- ---------------
* Class B commenced operations on October 2, 1998.
See notes to financial statements.
28
<PAGE> 36
PERFORMANCE FUNDS TRUST
Statements of Changes in Net Assets (unaudited) (continued)
<TABLE>
<CAPTION>
LARGE CAP EQUITY FUND MID CAP EQUITY FUND
-------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1998 1998 1998 1998
---------------- ---------- ---------------- ----------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income/(loss).......... $ 903,601 $ 2,232,832 $ 337,693 $ 651,681
Net realized gain/(loss) on
investments......................... (193,064) 13,921,927 4,593,297 13,580,881
Net change in unrealized appreciation/
(depreciation) on investments....... 22,299,818 60,709,330 (19,688,149) 22,747,932
------------ ------------ ------------ ------------
Net increase/(decrease) in net
assets resulting from
operations........................ 23,010,355 76,864,089 (14,757,159) 36,980,494
------------ ------------ ------------ ------------
Distributions to shareholders from:
Net investment income
Institutional Class................. (796,888) (2,059,592) (320,498) (639,145)
Class A............................. (96,637) (165,538) (23,176) (19,304)
Class B*............................ (153) -- (27) --
------------ ------------ ------------ ------------
(893,678) (2,225,130) (343,701) (658,449)
------------ ------------ ------------ ------------
In excess of net investment income
Institutional Class................. -- (22,090) -- --
Class A............................. -- (8,326) -- (5,977)
------------ ------------ ------------ ------------
-- (30,416) -- (5,977)
------------ ------------ ------------ ------------
Net realized gain on investments
Institutional Class................. -- (1,889,861) -- (7,652,175)
Class A............................. -- (225,130) -- (599,526)
------------ ------------ ------------ ------------
-- (2,114,991) -- (8,251,701)
------------ ------------ ------------ ------------
Net decrease in net assets resulting
from distributions................ (893,678) (4,370,537) (343,701) (8,916,127)
------------ ------------ ------------ ------------
Shares of beneficial interest:
Proceeds from shares issued
Institutional Class................. 34,000,581 37,952,631 37,931,161 34,283,679
Class A............................. 18,204,896 18,685,066 14,402,469 13,519,294
Class B*............................ 345,229 -- 94,536 --
------------ ------------ ------------ ------------
52,550,706 56,637,697 52,428,166 47,802,973
------------ ------------ ------------ ------------
Proceeds from reinvestment of
dividends
Institutional Class................. 661,371 3,086,525 292,122 7,069,524
Class A............................. 110,137 386,410 27,460 616,073
Class B*............................ 6 -- 6 --
------------ ------------ ------------ ------------
771,514 3,472,935 319,588 7,685,597
------------ ------------ ------------ ------------
Cost of shares redeemed
Institutional Class................. (42,465,076) (79,937,041) (42,347,145) (24,672,370)
Class A............................. (10,874,289) (4,592,259) (10,523,713) (2,408,822)
------------ ------------ ------------ ------------
(53,339,365) (84,529,300) (52,870,858) (27,081,192)
------------ ------------ ------------ ------------
Net increase/(decrease) in net assets
from shares of beneficial interest
transactions........................ (17,145) (24,418,668) (123,104) 28,407,378
------------ ------------ ------------ ------------
Total increase in net assets........... 22,099,532 48,074,884 (15,223,964) 56,471,745
NET ASSETS:
Beginning of period................... 301,059,675 252,984,791 187,413,976 130,942,231
------------ ------------ ------------ ------------
End of period......................... $323,159,207 $301,059,675 $172,190,012 $187,413,976
============ ============ ============ ============
<CAPTION>
SMALL CAP EQUITY FUND
--------------------------------
SIX MONTHS ENDED PERIOD ENDED
NOVEMBER 30, MAY 31,
1998 1998**
---------------- ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income/(loss).......... $ (100,675) $ (139,529)
Net realized gain/(loss) on
investments......................... (1,507,384) 743,590
Net change in unrealized appreciation/
(depreciation) on investments....... (7,546,419) 601,463
------------ -----------
Net increase/(decrease) in net
assets resulting from
operations........................ (9,154,478) 1,205,524
------------ -----------
Distributions to shareholders from:
Net investment income
Institutional Class................. -- (180)
Class A............................. -- --
Class B*............................ -- --
------------ -----------
-- (180)
------------ -----------
In excess of net investment income
Institutional Class................. -- --
Class A............................. -- --
------------ -----------
-- --
------------ -----------
Net realized gain on investments
Institutional Class................. -- --
Class A............................. -- --
------------ -----------
-- --
------------ -----------
Net decrease in net assets resulting
from distributions................ -- (180)
------------ -----------
Shares of beneficial interest:
Proceeds from shares issued
Institutional Class................. 13,959,263 64,042,780
Class A............................. 5,610,343 3,880,547
Class B*............................ 37,289 --
------------ -----------
19,606,895 67,923,327
------------ -----------
Proceeds from reinvestment of
dividends
Institutional Class................. -- 163
Class A............................. --
Class B*............................ -- --
------------ -----------
-- 163
------------ -----------
Cost of shares redeemed
Institutional Class................. (9,766,061) (3,812,494)
Class A............................. (3,186,398) (162,096)
------------ -----------
(12,952,459) (3,974,590)
------------ -----------
Net increase/(decrease) in net assets
from shares of beneficial interest
transactions........................ 6,654,436 63,948,900
------------ -----------
Total increase in net assets........... (2,500,042) 65,154,244
NET ASSETS:
Beginning of period................... 65,154,244 --
------------ -----------
End of period......................... $ 62,654,202 $65,154,244
============ ===========
</TABLE>
- ---------------
* Class B commenced operations on October 2, 1998.
** Fund commenced operations on October 1, 1997.
See notes to financial statements.
29
<PAGE> 37
PERFORMANCE FUNDS TRUST
Notes to Financial Statements -- November 30, 1998 (unaudited)
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 Equity Fund
(formerly, the Mid Cap Growth Fund), and The Small Cap Equity Fund (formerly,
the Small Cap Fund), collectively (the "Funds"), or individually (the "Fund"),
each, with the exception of the Short Term Government Fund, with three classes
of shares, the Institutional Class, Class A (formerly, Consumer Service Class),
and Class B (commenced operations on October 2,1998). The Short Term Government
Fund offers the Institutional Class and Class A shares only. The classes differ
primarily with respect to the level of Distribution Fees borne by each class. In
addition, certain redemptions of Class B shares are subject to contingent
deferred sales charges in accordance with the Fund's prospectus. 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 U.S. companies with market capitalization
exceeding $1 billion at the time of purchase.
The Mid Cap Equity Fund -- to achieve growth of capital by attempting to
outperform the S&P MidCap Index.
The Small Cap Equity Fund -- long-term capital appreciation by investing
in smaller-capitalized common stocks.
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.
30
<PAGE> 38
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- November 30, 1998 (unaudited)
Repurchase Agreements. The Funds may enter into repurchase agreements
with government securities dealers recognized by the Federal Reserve Board,
with member Banks of the Federal Reserve System or with such other brokers
or dealers that meet the credit guidelines established by the Board of
Trustees. It is the Funds' policy to receive and maintain securities as
collateral whose market value, including accrued interest, will be at least
100% of the dollar amount invested by that Fund in each agreement, and that
Fund will make payment for such securities only upon physical delivery or
upon evidence of book entry transfer to the account of the custodian. To
the extent that any repurchase transaction exceeds one business day, it is
the Funds' policy that the value of the collateral 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 based upon their relative
net assets or another appropriate basis. Net asset value per share of each
class, investment income, realized and unrealized gains and losses 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. In
addition, distribution expenses that are attributable to a specific class
are charged only to that 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 Equity and The Small Cap Equity 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. The "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.
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 daily net assets, at the
following annual rates: Money Market Fund, 0.30%; Short Term Government Income
Fund, 0.40%; Intermediate Term Government Income Fund, 0.50%; Large Cap Equity
Fund, 0.60%; Mid Cap Equity Fund, 0.75%; and Small Cap Equity Fund, 1.00%.
For the period ended November 30, 1998, Trustmark waived advisory fees of
$342,754 and $29,893 for the Money Market Fund and Intermediate Term Government
Income Fund, respectively.
31
<PAGE> 39
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- November 30, 1998 (unaudited)
Pursuant to a Custodian Agreement between the Trust and Trustmark National
Bank, Trustmark is the Custodian of the Funds' cash and securities. For these
services, Trustmark is entitled to a fee computed daily and paid monthly, based
on average daily net assets, at the annual rate of 0.04%. For the period ended
November 30, 1998, Trustmark earned the custody 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 period ended November 30, 1998, BISYS LP waived administrator fees
of $193,630 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 Class A and Class B, 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% and
1.00% of their respective average daily net assets attributable to such shares
for costs and expenses of the Distributor in connection with the distribution of
the Class A and Class B shares. No such fees will be paid by the Institutional
Class.
For the period ended November 30, 1998, the fees incurred amounted to 0.25%
and 1.00% of the average daily net assets of each Fund's Class A and Class B
respectively.
BISYS Fund Services, Inc. serves the Trust as fund accountant. Under the
current terms, effective on October 1, 1998, of the fund accounting agreement,
BISYS LP is entitled to receive an annual fee of $30,000 plus $5,000 per
additional class and is reimbursed for certain out-of-pocket expenses incurred
in providing fund accounting services.
BISYS Fund Services, Inc. serves the Trust as transfer agent. Under the
current terms, effective on October 1, 1998, of the transfer agency agreement,
BISYS LP is entitled to receive an annual fee of $15.00 per account plus $7,000
per class per fund 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 period ended November 30, 1998, other than short term securities, were as
follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
The Short Term Government Income Fund..................... $31,146,234 $31,427,905
The Intermediate Term Government Income Fund.............. 25,667,861 28,914,498
The Large Cap Equity Fund................................. 8,625,204 1,999,071
The Mid Cap Equity Fund................................... 37,534,400 38,063,620
The Small Cap Equity Fund................................. 16,084,338 8,744,899
</TABLE>
32
<PAGE> 40
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- November 30, 1998 (unaudited)
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
each. Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
SHORT TERM GOVERNMENT
MONEY MARKET FUND INCOME FUND
------------------------------- -----------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1998 1998 1998 1998
---------------- ------------ ---------------- ----------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS
Shares sold.............................................. 446,402,433 694,995,401 1,234,007 1,887,533
Shares issued in reinvestment of distributions........... 62,298 67,649 228,807 504,025
------------ ------------ ---------- ----------
446,464,731 695,063,050 1,462,814 2,391,558
Shares redeemed.......................................... (403,093,613) (666,771,987) (1,841,576) (3,155,517)
------------ ------------ ---------- ----------
Net increase (decrease) in shares........................ 43,371,118 28,291,063 (378,762) (763,959)
============ ============ ========== ==========
CLASS A
Shares sold.............................................. 90,497,245 210,472,260 785,038 280,309
Shares issued in reinvestment of distributions........... 1,935,715 5,461,030 8,319 5,810
------------ ------------ ---------- ----------
92,432,960 215,933,290 793,357 286,119
Shares redeemed.......................................... (66,499,103) (234,357,245) (495,264) (86,727)
------------ ------------ ---------- ----------
Net increase (decrease) in shares........................ 25,933,857 (18,423,955) 298,093 199,392
============ ============ ========== ==========
CLASS B*
Shares sold.............................................. 1,010 --
Shares issued in reinvestment of distributions........... 3 --
------------ ------------
1,013 --
Shares redeemed.......................................... -- --
------------ ------------
Net increase (decrease) in shares........................ 1,013 --
============ ============
</TABLE>
<TABLE>
<CAPTION>
INTERMEDIATE TERM
GOVERNMENT INCOME FUND LARGE CAP EQUITY FUND
------------------------------- -----------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1998 1998 1998 1998
---------------- ------------ ---------------- ----------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS
Shares sold.............................................. 1,480,488 3,787,107 1,338,206 1,712,431
Shares issued in reinvestment of distributions........... 211,813 462,986 27,316 142,827
------------ ------------ ---------- ----------
1,692,301 4,250,093 1,365,522 1,855,258
Shares redeemed.......................................... (2,293,956) (2,259,944) (1,672,805) (3,646,925)
------------ ------------ ---------- ----------
Net increase (decrease) in shares........................ (601,655) 1,990,149 (307,283) (1,791,667)
============ ============ ========== ==========
CLASS A
Shares sold.............................................. 626,212 322,546 698,996 827,432
Shares issued in reinvestment of distributions........... 12,018 7,586 4,556 17,747
------------ ------------ ---------- ----------
638,230 330,132 703,552 845,179
Shares redeemed.......................................... (407,907) (94,109) (436,858) (203,755)
------------ ------------ ---------- ----------
Net increase (decrease) in shares........................ 230,323 236,023 266,694 641,424
============ ============ ========== ==========
CLASS B*
Shares sold.............................................. 4,643 -- 13,230 --
Shares issued in reinvestment of distributions........... -- -- -- --
------------ ------------ ---------- ----------
4,643 -- 13,230 --
Shares redeemed.......................................... -- -- -- --
------------ ------------ ---------- ----------
Net increase (decrease) in shares........................ 4,643 -- 13,230 --
============ ============ ========== ==========
</TABLE>
- ---------------
* Class B commenced operations on October 2, 1998.
33
<PAGE> 41
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- November 30, 1998 (unaudited)
<TABLE>
<CAPTION>
MID CAP EQUITY FUND SMALL CAP EQUITY FUND
------------------------------- -------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED PERIOD ENDED
NOVEMBER 30, MAY 31, NOVEMBER 30, MAY 31,
1998 1998 1998 1998**
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS
Shares sold............................................ 2,118,923 1,782,027 1,634,040 6,582,400
Shares issued in reinvestment of distributions......... 16,303 369,778 -- 17
------------ ------------ ---------- ----------
2,135,226 2,151,805 1,634,040 6,582,417
Shares redeemed........................................ (2,321,128) (1,271,150) (1,097,158) (390,066)
------------ ------------ ---------- ----------
Net increase (decrease) in shares...................... (185,902) 880,655 536,882 6,192,351
============ ============ ========== ==========
CLASS A
Shares sold............................................ 736,212 697,248 580,849 390,048
Shares issued in reinvestment of distributions......... 1,512 32,187 -- --
------------ ------------ ---------- ----------
737,724 729,435 580,849 390,048
Shares redeemed........................................ (592,680) (122,941) (371,717) (16,263)
------------ ------------ ---------- ----------
Net increase (decrease) in shares...................... 145,044 606,494 209,132 373,785
============ ============ ========== ==========
CLASS B*
Shares sold............................................ 5,077 -- 4,369 --
Shares issued in reinvestment of distributions......... -- -- -- --
------------ ------------ ---------- ----------
5,077 -- 4,369 --
Shares redeemed........................................ -- -- -- --
------------ ------------ ---------- ----------
Net increase (decrease) in shares...................... 5,077 -- 4,369 --
============ ============ ========== ==========
</TABLE>
- ---------------
* Class B commenced operations on October 2, 1998.
** Fund commenced operations on October 1, 1997.
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 November 30, 1998, the Money Market Fund had a concentration in excess
of 10% of its net assets in the Automotive industry (11.9%) and the Finance -
Brokers industry (16.3%). The Large Cap Equity Fund had a concentration in
excess of 10% of its net assets in the Health Care industry (11.9%). The Mid Cap
Equity Fund had a concentration in excess of 10% of its net assets in the
Financial Services industry (15.3%), Technology industry (13.6%) and the
Utilities industry (14.3%). The Small Cap Equity Fund had a concentration in
excess of 10% of its net assets in the Business Equipment & Services industry
(10.1%), Financial Services industry (16.0%), Health Care industry (10.8%) and
Technology industry (13.0%).
34
<PAGE> 42
PERFORMANCE FUNDS TRUST
MONEY MARKET FUND
Financial Highlights
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR YEAR YEAR YEAR YEAR
NOVEMBER 30, ENDED ENDED ENDED ENDED ENDED
1998 MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
(UNAUDITED) 1998 1997 1996 1995 1994*
INSTITUTIONAL CLASS ---------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD............ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- -----
Income from Investment Operations:
Net investment income/(loss).................. 0.03 0.05 0.05 0.05 0.05 0.02
----- ----- ----- ----- ----- -----
Distributions to shareholders from:
Net investment income......................... (0.03) (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 $1.00
===== ===== ===== ===== ===== =====
Total Return.................................... 2.62% 5.43% 5.34% 5.60% 5.27% 2.17%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands)...... $392,396 $349,024 $320,732 $366,966 $324,942 $139,157
Net investment income before
waivers/reimbursements...................... 4.93%** 5.07% 4.94% 5.12% 4.91% 2.77%**
Net investment income net of
waivers/reimbursements...................... 5.17%** 5.31% 5.20% 5.42% 5.27% 3.30%**
Expenses before waivers/reimbursements........ 0.59%** 0.57% 0.51% 0.54% 0.59% 0.68%**
Expenses net of waivers/reimbursements........ 0.35%** 0.33% 0.25% 0.24% 0.23% 0.15%**
CLASS A(A)
Net Asset Value, Beginning of Period............ $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- -----
Income from Investment Operations:
Net investment income/(loss).................. 0.02 0.05 0.04 0.05 0.05 0.02
----- ----- ----- ----- ----- -----
Distributions to shareholders from:
Net investment income......................... (0.02) (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 $1.00
===== ===== ===== ===== ===== =====
Total Return.................................... 2.49% 5.18% 5.07% 5.33% 5.02% 2.03%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands)...... $99,728 $73,794 $92,220 $25,216 $3,564 $797
Net investment income before
waivers/reimbursements...................... 4.68%** 4.82% 5.13% 4.87% 4.66% 2.52%**
Net investment income net of
waivers/reimbursements...................... 4.92%** 5.06% 5.23% 5.17% 5.02% 3.05%**
Expenses before waivers/reimbursements........ 0.84%** 0.82% 0.48% 0.79% 0.84% 0.93%**
Expenses net of waivers/reimbursements........ 0.60%** 0.58% 0.38% 0.49% 0.48% 0.40%**
</TABLE>
- ---------------
* Fund commenced operations on September 30, 1993.
** Annualized.
(a) On September 30, 1998 the portfolio redesignated the Consumer Service Class
as Class A shares.
See notes to financial statements.
35
<PAGE> 43
PERFORMANCE FUNDS TRUST
MONEY MARKET FUND
Financial Highlights
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
FOR THE PERIOD ENDED
NOVEMBER 30, 1998*
(UNAUDITED)
CLASS B --------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $1.00
-----
Income from Investment Operations:
Net investment income/(loss).............................. 0.01
-----
Distributions to shareholders from:
Net investment income..................................... (0.01)
-----
Net Asset Value, End of Period.............................. $1.00
=====
Total return................................................ 0.69%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands).................. $1
Net investment income before waivers/reimbursements....... 3.75%**
Net investment income net of waivers/reimbursements....... 3.99%**
Expenses before waivers/reimbursements.................... 1.61%**
Expenses net of waivers/reimbursements.................... 1.37%**
</TABLE>
- ---------------
* Class B commenced operations on October 2, 1998.
** Annualized.
See notes to financial statements.
36
<PAGE> 44
PERFORMANCE FUNDS TRUST
SHORT TERM GOVERNMENT INCOME FUND
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR YEAR YEAR YEAR YEAR
NOVEMBER 30, ENDED ENDED ENDED ENDED ENDED
1998 MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
(UNAUDITED) 1998 1997 1996 1995 1994
INSTITUTIONAL CLASS ----------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............. $9.85 $9.75 $9.75 $9.84 $9.77 $10.10
----- ----- ----- ----- ----- ------
Income from Investment Operations:
Net investment income........................... 0.26 0.54 0.55 0.54 0.53 0.40
Net realized and unrealized gain/(loss) on
investments................................... 0.07 0.10 (0.01) (0.09) 0.07 (0.25)
----- ----- ----- ----- ----- ------
Total from investment operations.................. 0.33 0.64 0.54 0.45 0.60 0.15
----- ----- ----- ----- ----- ------
Distributions to shareholders from:
Net investment income........................... (0.26) (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............... (0.26) (0.54) (0.54) (0.54) (0.53) (0.48)
----- ----- ----- ----- ----- ------
Net Asset Value, End of Period.................... $9.92 $9.85 $9.75 $9.75 $9.84 $9.77
===== ===== ===== ===== ===== ======
Total Return...................................... 3.37% 6.73% 5.70% 4.65% 6.37% 1.49%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands)........ $117,300 $120,203 $126,428 $106,617 $104,730 $111,657
Net investment income before
waivers/reimbursements........................ 5.22%* 5.53% 5.63% 5.47% 5.40% 3.95%
Net investment income net of
waivers/reimbursements........................ 5.22%* 5.53% 5.63% 5.48% 5.43% 4.00%
Expenses before waivers/reimbursements.......... 0.69%* 0.64% 0.66% 0.72% 0.77% 0.74%
Expenses net of waivers/reimbursements.......... 0.69%* 0.64% 0.66% 0.71% 0.74% 0.69%
Portfolio turnover rate......................... 25.89% 65.07% 86.21% 120.00% 267.65% 213.43%
CLASS A(A)
Net Asset Value, Beginning of Period.............. $9.85 $9.75 $9.75 $9.84 $9.77 $10.10
----- ----- ----- ----- ----- ------
Income from Investment Operations:
Net investment income........................... 0.25 0.52 0.49 0.51 0.50 0.37
Net realized and unrealized gain/(loss) on
investments................................... 0.07 0.10 -- (0.09) 0.07 (0.25)
----- ----- ----- ----- ----- ------
Total from investment operations.................. 0.32 0.62 0.49 0.42 0.57 0.12
----- ----- ----- ----- ----- ------
Distributions to shareholders from:
Net investment income........................... (0.25) (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............... (0.25) (0.52) (0.49) (0.51) (0.50) (0.45)
----- ----- ----- ----- ----- ------
Net Asset Value, End of Period.................... $9.92 $9.85 $9.75 $9.75 $9.84 $9.77
===== ===== ===== ===== ===== ======
Total return (Excluding sales charge)............. 3.25% 6.48% 5.44% 4.38% 6.12% 1.23%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands)........ $6,158 $3,181 $1,205 $1,477 $739 $654
Net investment income before
waivers/reimbursements........................ 4.97%* 5.28% 5.01% 5.22% 5.15% 3.70%
Net investment income net of
waivers/reimbursements........................ 4.97%* 5.28% 5.01% 5.23% 5.18% 3.75%
Expenses before waivers/reimbursements.......... 0.94%* 0.89% 0.87% 0.96% 1.02% 0.99%
Expenses net of waivers/reimbursements.......... 0.94%* 0.89% 0.87% 0.95% 0.99% 0.94%
Portfolio turnover rate......................... 25.89% 65.07% 86.21% 120.00% 267.65% 213.43%
</TABLE>
- ---------------
* Annualized.
(a) On September 30, 1998 the portfolio redesignated the Consumer Service Class
as Class A shares subject to a maximum sales charge of 3.00%.
See notes to financial statements.
37
<PAGE> 45
PERFORMANCE FUNDS TRUST
INTERMEDIATE TERM GOVERNMENT INCOME FUND
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR YEAR YEAR YEAR YEAR
NOVEMBER 30, ENDED ENDED ENDED ENDED ENDED
1998 MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
(UNAUDITED) 1998 1997 1996 1995 1994
INSTITUTIONAL CLASS ---------------- -------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................. $10.34 $ 9.93 $ 9.82 $10.11 $ 9.87 $10.56
------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income/(loss)....................... 0.28 0.59 0.60 0.56 0.62 0.58
Net realized and unrealized gain/(loss) on
investments...................................... 0.27 0.42 0.09 (0.29) 0.25 (0.52)
------ ------ ------ ------ ------ ------
Total from investment operations..................... 0.55 1.01 0.69 0.27 0.87 0.06
------ ------ ------ ------ ------ ------
Distributions to shareholders from:
Net investment income.............................. (0.28) (0.59) (0.58) (0.56) (0.62) (0.58)
In excess of net investment income................. -- (0.01) -- -- -- --
In excess of net realized gain on investments...... -- -- -- -- (0.01) (0.06)
------ ------ ------ ------ ------ ------
Total distributions to shareholders.................. (0.28) (0.60) (0.58) (0.56) (0.63) (0.75)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period....................... $10.61 $10.34 $ 9.93 $ 9.82 $10.11 $ 9.87
====== ====== ====== ====== ====== ======
Total Return......................................... 5.39% 10.42% 7.20% 2.66% 9.31% 0.34%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands)........... $115,462 $118,743 $94,242 $77,677 $108,052 $158,420
Net investment income before
waivers/reimbursements........................... 5.31%* 5.73% 6.43% 5.50% 6.33% 5.35%
Net investment income net of
waivers/reimbursements........................... 5.36%* 5.78% 6.48% 5.55% 6.44% 5.50%
Expenses before waivers/reimbursements............. 0.83%* 0.77% 0.91% 0.86% 0.82% 0.80%
Expenses net of waivers/reimbursements............. 0.78%* 0.72% 0.86% 0.81% 0.71% 0.65%
Portfolio turnover rate............................ 21.58% 35.62% 46.23% 183.00% 339.95% 102.46%
CLASS A(A)
Net Asset Value, Beginning of Period................. $10.34 $ 9.93 $ 9.82 $10.11 $ 9.87 $10.56
------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income/(loss)....................... 0.27 0.57 0.57 0.54 0.60 0.55
Net realized and unrealized gain/(loss) on
investments...................................... 0.27 0.42 0.10 (0.29) 0.25 (0.52)
------ ------ ------ ------ ------ ------
Total from investment operations..................... 0.54 0.99 0.67 0.25 0.85 0.03
------ ------ ------ ------ ------ ------
Distributions to shareholders from:
Net investment income.............................. (0.27) (0.57) (0.56) (0.54) (0.60) (0.55)
In excess of net investment income................. -- (0.01) -- -- -- --
In excess of net realized gain on investments...... -- -- -- -- (0.01) (0.06)
------ ------ ------ ------ ------ ------
Total distributions to shareholders.................. (0.27) (0.58) (0.56) (0.54) (0.61) (0.72)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period....................... $10.61 $10.34 $ 9.93 $ 9.82 $10.11 $ 9.87
====== ====== ====== ====== ====== ======
Total return (Excluding sales charge)................ 5.26% 10.15% 6.92% 2.40% 9.06% 0.08%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands)........... $ 6,511 $ 3,965 $ 1,465 $ 2,174 $ 3,225 $ 3,384
Net investment income before
waivers/reimbursements........................... 5.06%* 5.48% 5.55% 5.25% 6.08% 5.10%
Net investment income net of
waivers/reimbursements........................... 5.11%* 5.53% 5.60% 5.30% 6.19% 5.25%
Expenses before waivers/reimbursements............. 1.08%* 1.02% 1.08% 1.11% 1.07% 1.05%
Expenses net of waivers/reimbursements............. 1.03%* 0.97% 1.03% 1.06% 0.96% 0.90%
Portfolio turnover rate............................ 21.58% 35.62% 46.23% 183.00% 339.95% 102.46%
</TABLE>
- ---------------
* Annualized.
(a) On September 30, 1998 the portfolio redesignated the Consumer Service Class
as Class A shares subject to a maximum sales charge of 5.25%.
See notes to financial statements.
38
<PAGE> 46
PERFORMANCE FUNDS TRUST
INTERMEDIATE TERM GOVERNMENT INCOME FUND
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
FOR THE PERIOD ENDED
NOVEMBER 30, 1998*
(UNAUDITED)
CLASS B --------------------
<S> <C>
Net Asset Value, Beginning of Period........................ $10.81
------
Income from Investment Operations:
Net investment income/(loss).............................. 0.07
Net realized and unrealized gain/(loss) on investments.... (0.20)
------
Total from investment operations............................ (0.13)
------
Distributions to shareholders from:
Net investment income..................................... (0.07)
In excess of net investment income........................ --
In excess of net realized gain on investments............. --
------
Total distributions to shareholders......................... (0.07)
------
Net Asset Value, End of Period.............................. $10.61
======
Total return................................................ 6.83%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands).................. $ 49
Net investment income before waivers/reimbursements....... 4.09%**
Net investment income net of waivers/reimbursements....... 4.14%**
Expenses before waivers/reimbursements.................... 1.86%**
Expenses net of waivers/reimbursements.................... 1.81%**
Portfolio turnover rate................................... 21.58%
</TABLE>
- ---------------
* Class B commenced operations on October 2, 1998.
** Annualized.
See notes to financial statements.
39
<PAGE> 47
PERFORMANCE FUNDS TRUST
LARGE CAP EQUITY FUND
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR YEAR YEAR YEAR YEAR
NOVEMBER 30, ENDED ENDED ENDED ENDED ENDED
1998 MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
(UNAUDITED) 1998 1997 1996 1995 1994
INSTITUTIONAL CLASS ---------------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD............ $24.98 $19.16 $15.29 $12.51 $11.33 $11.21
------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income/(loss).................. 0.08 0.19 0.24 0.23 0.25 0.23
Net realized and unrealized gain/(loss) on
investments................................. 1.89 6.00 4.13 3.29 1.42 0.12
------ ------ ------ ------ ------ ------
Total from investment operations................ 1.97 6.19 4.37 3.52 1.67 0.35
------ ------ ------ ------ ------ ------
Distributions to shareholders from:
Net investment income......................... (0.08) (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............. (0.08) (0.37) (0.50) (0.74) (0.49) (0.23)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period.................. $26.87 $24.98 $19.16 $15.29 $12.51 $11.33
====== ====== ====== ====== ====== ======
Total Return.................................... 7.91% 32.53% 29.06% 28.73% 15.35% 3.10%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands)...... $271,029 $259,585 $233,454 $140,144 $100,110 $93,983
Net investment income (loss) before
waivers/reimbursements...................... 0.63%* 0.83% 1.34% 1.55% 2.02% 1.84%
Net investment income (loss) net of
waivers/reimbursements...................... 0.63%* 0.83% 1.43% 1.65% 2.15% 1.99%
Expenses before waivers/reimbursements........ 0.90%* 0.91% 0.92% 0.91% 0.92% 0.98%
Expenses net of waivers/reimbursements........ 0.90%* 0.91% 0.83% 0.81% 0.79% 0.83%
Portfolio turnover rate....................... 0.67% 4.78% 1.41% 6.00% 58.08% 27.11%
CLASS A(A)
Net Asset Value, Beginning of Period............ $24.97 $19.16 $15.29 $12.51 $11.33 $11.21
------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income/(loss).................. 0.05 0.13 0.20 0.19 0.22 0.20
Net realized and unrealized gain/(loss) on
investments................................. 1.89 5.99 4.13 3.29 1.42 0.12
------ ------ ------ ------ ------ ------
Total from investment operations................ 1.94 6.12 4.33 3.48 1.64 0.32
------ ------ ------ ------ ------ ------
Distributions to shareholders from:
Net investment income......................... (0.05) (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............. (0.05) (0.31) (0.46) (0.70) (0.46) (0.20)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period.................. $26.86 $24.97 $19.16 $15.29 $12.51 $11.33
====== ====== ====== ====== ====== ======
Total return (Excluding sales charge)........... 7.74% 32.20% 28.75% 28.42% 15.10% 2.85%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands)...... $51,775 $41,474 $19,531 $9,831 $5,234 $5,287
Net investment income before
waivers/reimbursements...................... 0.38%* 0.58% 1.10% 1.30% 1.77% 1.59%
Net investment income net of
waivers/reimbursements...................... 0.38%* 0.58% 1.18% 1.40% 1.90% 1.74%
Expenses before waivers/reimbursements........ 1.15%* 1.16% 1.14% 1.16% 1.17% 1.23%
Expenses net of waivers/reimbursements........ 1.15%* 1.16% 1.06% 1.06% 1.04% 1.08%
Portfolio turnover rate....................... 0.67% 4.78% 1.41% 6.00% 58.08% 27.11%
</TABLE>
- ---------------
* Annualized.
(a) On September 30, 1998 the portfolio redesignated the Consumer Service Class
as Class A shares subject to a maximum sales charge of 5.25%.
See notes to financial statements.
40
<PAGE> 48
PERFORMANCE FUNDS TRUST
LARGE CAP EQUITY FUND
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
FOR THE PERIOD ENDED
NOVEMBER 30, 1998*
(UNAUDITED)
CLASS B --------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $23.12
------
Income from Investment Operations:
Net investment income/(loss).............................. --
Net realized and unrealized gain/(loss) on investments.... $ 3.73
------
Total from investment operations............................ $ 3.73
------
Distributions to shareholders from:
Net investment income..................................... (0.01)
Net realized gain on investments.......................... --
------
Total distributions to shareholders......................... (0.01)
------
Net Asset Value, End of Period.............................. $26.84
======
Total Return................................................ 16.14%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands).................. $355
Net investment income (loss) before
waivers/reimbursements................................. (0.38%)**
Net investment income (loss) net of
waivers/reimbursements................................. (0.38%)**
Expenses before waivers/reimbursements.................... 1.93%**
Expenses net of waivers/reimbursements.................... 1.93%**
Portfolio turnover rate................................... 0.67%
</TABLE>
- ---------------
* Class B commenced operations on October 2, 1998.
** Annualized.
See notes to financial statements.
41
<PAGE> 49
PERFORMANCE FUNDS TRUST
MID CAP EQUITY FUND
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR YEAR YEAR YEAR YEAR
NOVEMBER 30, ENDED ENDED ENDED ENDED ENDED
1998 MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
(UNAUDITED) 1998 1997 1996 1995 1994*
INSTITUTIONAL CLASS ---------------- -------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD............... $20.11 $16.71 $14.05 $11.11 $ 9.60 $10.00
------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income/(loss)..................... 0.04 0.08 0.13 0.13 0.13 0.03
Net realized and unrealized gain/(loss) on
investments.................................... (1.57) 4.40 2.99 3.44 1.51 (0.40)
------ ------ ------ ------ ------ ------
Total from investment operations................... (1.53) 4.48 3.12 3.57 1.64 (0.37)
------ ------ ------ ------ ------ ------
Distributions to shareholders from:
Net investment income............................ (0.04) (0.08) (0.13) (0.13) (0.13) (0.03)
In excess of net investment income............... -- -- -- -- -- --
Net realized gain on investments................. -- (1.00) (0.33) (0.50) -- --
------ ------ ------ ------ ------ ------
Total distributions to shareholders................ (0.04) (1.08) (0.46) (0.63) (0.13) (0.03)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period..................... $18.54 $20.11 $16.71 $14.05 $11.11 $9.60
====== ====== ====== ====== ====== ======
Total Return....................................... (7.60%) 27.15% 22.62% 33.06% 17.31% (3.66%)
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands)......... $151,610 $168,116 $125,035 $80,704 $48,068 $33,779
Net investment income (loss) before
waivers/reimbursements......................... 0.42%** 0.41% 0.75% 0.90% 1.11% 0.60%**
Net investment income (loss) net of
waivers/reimbursements......................... 0.42%** 0.41% 0.89% 1.06% 1.37% 1.60%**
Expenses before waivers/reimbursements........... 1.07%** 1.07% 1.06% 1.14% 1.22% 1.93%**
Expenses net of waivers/reimbursements........... 1.07%** 1.07% 0.92% 0.98% 0.96% 0.93%**
Portfolio turnover rate.......................... 23.28% 20.48% 7.72% 28.00% 20.39% 5.88%
CLASS A(A)
Net Asset Value, Beginning of Period............... $20.10 $16.72 $14.05 $11.11 $ 9.60 $10.00
------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income/(loss)..................... 0.02 0.03 0.09 0.10 0.11 0.03
Net realized and unrealized gain/(loss) on
investments.................................... (1.56) 4.39 3.00 3.44 1.51 (0.40)
------ ------ ------ ------ ------ ------
Total from investment operations................... (1.54) 4.42 3.09 3.54 1.62 (0.37)
------ ------ ------ ------ ------ ------
Distributions to shareholders from:
Net investment income............................ (0.02) (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................ (0.02) (1.04) (0.42) (0.60) (0.11) (0.03)
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period..................... $18.54 $20.10 $16.72 $14.05 $11.11 $9.60
====== ====== ====== ====== ====== ======
Total return (Excluding sales charge).............. (7.66%) 26.82% 22.33% 32.76% 17.06% (3.70%)
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands)......... $20,486 $19,298 $5,911 $1,437 $277 $35
Net investment income before
waivers/reimbursements......................... 0.17%** 0.16% 0.54% 0.63% 0.86% 0.35%**
Net investment income net of
waivers/reimbursements......................... 0.17%** 0.16% 0.65% 0.79% 1.12% 1.35%**
Expenses before waivers/reimbursements........... 1.32%** 1.32% 1.30% 1.39% 1.47% 2.18%**
Expenses net of waivers/reimbursements........... 1.32%** 1.32% 1.19% 1.23% 1.21% 1.18%**
Portfolio turnover rate.......................... 23.28% 20.48% 7.72% 28.00% 20.39% 5.88%
</TABLE>
- ---------------
* Fund commenced operations on February 24, 1994.
** Annualized.
(a) On September 30, 1998 the portfolio redesignated the Consumer Service Class
as Class A shares subject to a maximum sales charge of 5.25%.
See notes to financial statements.
42
<PAGE> 50
PERFORMANCE FUNDS TRUST
MID CAP EQUITY FUND
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
FOR THE PERIOD ENDED
NOVEMBER 30, 1998*
(UNAUDITED)
CLASS B --------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $16.40
------
Income from Investment Operations:
Net investment income/(loss).............................. --
Net realized and unrealized gain/(loss) on investments.... 2.11
------
Total from investment operations............................ 2.11
------
Distributions to shareholders from:
Net investment income..................................... (0.01)
In excess of net investment income........................ --
Net realized gain on investments.......................... --
------
Total distributions to shareholders......................... (0.01)
------
Net Asset Value, End of Period.............................. $18.50
======
Total Return................................................ 12.89%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, End of Period (in thousands).................. $94
Net investment income (loss) before
waivers/reimbursements................................. (0.39%)**
Net investment income (loss) net of
waivers/reimbursements................................. (0.39%)**
Expenses before waivers/reimbursements.................... 2.11%**
Expenses net of waivers/reimbursements.................... 2.11%**
Portfolio turnover rate................................... 23.28%
</TABLE>
- ---------------
* Class B commenced operations on October 2, 1998.
** Annualized.
See notes to financial statements.
43
<PAGE> 51
PERFORMANCE FUNDS TRUST
SMALL CAP EQUITY FUND
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
SIX MONTHS ENDED FOR THE PERIOD
NOVEMBER 30, ENDED
1998 MAY 31,
(UNAUDITED) 1998*
INSTITUTIONAL CLASS ---------------- --------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $9.92 $10.00
----- ------
Income from Investment Operations:
Net investment income/(loss).............................. (0.01) (0.03)(b)
Net realized and unrealized gain/(loss) on investments.... (1.34) (0.05)
----- ------
Total from investment operations............................ (1.35) (0.08)
----- ------
Net Asset Value, End of Period.............................. $8.57 $9.92
===== ======
Total Return................................................ (13.61%) (0.80%)
Ratios to Average Net Assets/Supplemental Data:
Net Assets, end of period (in thousands).................. $57,641 $61,450
Net investment income/(loss) before
waivers/reimbursements.................................. (0.31%)** (0.41%)**
Net investment income/(loss) net of
waivers/reimbursements.................................. (0.31%)** (0.41%)**
Expenses before waivers/reimbursements.................... 1.37%** 1.45%**
Expenses net of waivers/reimbursements.................... 1.37%** 1.45%**
Portfolio turnover rate................................... 15.25% 12.28%
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED FOR THE PERIOD
NOVEMBER 30, ENDED
1998 MAY 31,
(UNAUDITED) 1998*
CLASS A(A) ---------------- --------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $9.91 $10.00
----- ------
Income from Investment Operations:
Net investment income/(loss).............................. (0.02) (0.04)(b)
Net realized and unrealized gain/(loss) on investments.... (1.35) (0.05)
----- ------
Total from investment operations............................ (1.37) (0.09)
----- ------
Net Asset Value, End of Period.............................. $8.54 $9.91
===== ======
Total Return (Excluding sales charge)....................... (13.82%) (0.90%)
Ratios to Average Net Assets/Supplemental Data:
Net Assets, end of period (in thousands).................. $4,976 $3,704
Net investment income/(loss) before
waivers/reimbursements.................................. (0.56%)** (0.66%)**
Net investment income/(loss) net of
waivers/reimbursements.................................. (0.56%)** (0.66%)**
Expenses before waivers/reimbursements.................... 1.62%** 1.70%**
Expenses net of waivers/reimbursements.................... 1.62%** 1.70%**
Portfolio turnover rate................................... 15.25% 12.28%
</TABLE>
- ---------------
* Fund commenced operations on February 24, 1994.
** Annualized.
(a) On September 30, 1998 the portfolio redesignated the Consumer Service Class
as Class A shares subject to a maximum sales charge of 5.25%.
(b) Calculated based on average shares during the period.
See notes to financial statements.
44
<PAGE> 52
PERFORMANCE FUNDS TRUST
SMALL CAP EQUITY FUND
Financial Highlights (continued)
For a share of beneficial interest outstanding throughout each period
<TABLE>
<CAPTION>
FOR THE PERIOD
ENDED
NOVEMBER 30,
1998*
(UNAUDITED)
CLASS B --------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $7.47
------
Income from Investment Operations:
Net investment income/(loss).............................. --
Net realized and unrealized gain/(loss) on investments.... 1.07
------
Total from investment operations............................ 1.07
------
Net Asset Value, End of Period.............................. $ 8.54
======
Total Return................................................ 14.32%
Ratios to Average Net Assets/Supplemental Data:
Net Assets, end of period (in thousands).................. $ 37
Net investment income/(loss) before
waivers/reimbursements................................. (1.39%)**
Net investment income/(loss) net of
waivers/reimbursements................................. (1.39%)**
Expenses before waivers/reimbursements.................... 2.41%**
Expenses net of waivers/reimbursements.................... 2.41%**
Portfolio turnover rate................................... 15.25%
</TABLE>
- ---------------
* Class B commenced operations on October 2, 1998.
** Annualized.
See notes to financial statements.
45
<PAGE> 53
[PERFORMANCE FUNDS LOGO]
INVESTMENT ADVISOR
- ------------------
Trustmark National Bank
248 East Capitol Street
Jackson, Mississippi 39201
ADMINISTRATOR AND
TRANSFER AGENT
- --------------
BISYS Fund Services
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
SEMI-ANNUAL REPORT
NOVEMBER 30, 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.
PF1/99
