<PAGE> 1
[PERFORMANCE FUNDS LOGO]
July 1, 2000
Dear Shareholder:
We are pleased to present you the Performance Funds' eighth annual report
for the fiscal year ended May 31, 2000. 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, individually a "Fund" and collectively the
"Funds." All funds are managed by Trustmark National Bank.
ECONOMIC REVIEW
The Funds' fiscal year ended May 31, 2000 as the U.S. economy, now in its
tenth consecutive year of expansion, entered the new millennium with
considerable momentum. The U.S. economy's continued strength can be attributed
to a number of long-run factors: higher underlying potential growth, the
continuing lagged impact of the long bull rally in the stock market,
technology-driven investment spending, and strong overseas growth. Adding to
this strength in the near-term has been the Federal Reserve's (the "Fed") Y2K
liquidity injection, strong tax refunds, and a burst of government spending.
The explosive growth in the economy has made the rosy budget outlook even
better. Because major federal government policy changes are unlikely until
fiscal year 2002, the budget surplus could surge to as much as $250 billion in
2001. Three factors have combined to drive the budget into surplus: 1) BUDGET
DISCIPLINE -- outlays have grown at a moderate pace over the last four years, 2)
STRONG ECONOMY -- Gross Domestic Product(1) (the "GDP") has been growing at 5%
annually, driving up revenues, and 3) REVENUE WINDFALL -- revenues have grown
faster than GDP, reflecting rapid growth in profits, the stock market, and
incomes for people in high tax brackets. The good budget news will encourage the
Treasury to keep cutting debt, which it commenced last March.
Following its May, 1999 policy meeting, the Fed announced its "tightening
bias" citing that improved foreign economic prospects, a tight labor market, and
continued consumer demand raised concerns that "financial conditions may no
longer be consistent with containing inflation." The Fed has delivered on its
message by raising the Fed funds rate over the past year from 4.75% to 6.50%
through its May, 2000 meeting. Inflation (as measured by Consumer Price Index(2)
during this period) is currently 3.1% after being as high as 3.7% at the end of
March this year, well above its 2.1% reading just a year ago.
On the following pages you will find a detailed discussion of each Fund's
performance. 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
Funds 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.
<TABLE>
<C> <S>
(1) The Gross Domestic Product is the measure of the market
value of goods and services produced by labor and property
in the United States.
(2) The Consumer Price Index is a measure of the average change
in prices, over time, of a fixed market basket of goods.
</TABLE>
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 YEAR ENDED MAY 31, 2000. THE
CHAIRMAN OF THE BOARD'S VIEWS ARE SUBJECT TO CHANGE BASED ON THE MARKET AND
OTHER CONDITIONS.
<PAGE> 2
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 3
PORTFOLIO REVIEW
PERFORMANCE FUNDS TRUST
--------------------------------------------------------------------------------
THE MONEY MARKET FUND
The Money Market Fund (the "Fund") provided investors with a return of
5.38% (Institutional Class Shares)* and 5.12% (Class A Shares)* for the year
ended May 31, 2000. During this period, the 7-day yield of the Institutional
Class Shares fluctuated between a high yield of 5.96% on May 31, 2000 and a low
yield of 4.67% on June 10, 1999. During this period, the Fed raised the target
rate for Fed Funds six times from a low rate of 4.75% to the current 6.50% rate.
As interest rates adjusted to the hostile Fed environment, the Fund has been a
beneficiary of higher rates in the short end of the market. These interest rate
moves by the Fed were in response to the continued growth in the U.S. economy
which expanded at around 5% for the past 12 months. These conditions should
continue to benefit the shareholders of the Fund for the coming six to twelve
months. As long as the Fed is in a restrictive mode, short term rates will be
attractive for the Fund.
The Fund invests primarily in high-quality, short-term instruments such as
U.S. Treasury obligations, U.S. Government Agency obligations, bankers'
acceptances, commercial paper, and repurchase agreements.** The Fund is
considered a first tier Fund as a result of the high quality holdings per the
respective ratings from Standard and Poor's (A-1 or A-1+) and Moody's (P1).
Signed,
/s/ Kelly J. Collins
Kelly J. Collins
Trust Investment Officer
Trustmark National Bank
---------------
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION
OF FUTURE RESULTS.
<TABLE>
<C> <S>
* The total return set forth reflects the waiver of a portion
of the Fund's fees. Without the waivers of these fees, the
total return for the period would have been lower.
** Portfolio composition is subject to change.
</TABLE>
An investment in the Fund is neither insured nor guaranteed by the U.S.
Government. The Fund's objective is to maintain a stable NAV of $1.00 per share.
This has been accomplished since the Fund's inception, but there can be no
guarantee that it will be in the future.
The views expressed in this report reflect those of the portfolio manager
through the year ended May 31, 2000. The manager's views are subject to change
at any time based on the market and other conditions.
<PAGE> 4
PORTFOLIO REVIEW
PERFORMANCE FUNDS TRUST
--------------------------------------------------------------------------------
THE SHORT TERM GOVERNMENT INCOME FUND
The Short Term Government Income Fund (the "Fund") provided shareholders
with a return of 3.94% (Institutional Class Shares), 3.68% (Class A
Shares -- excluding sales charge) and 0.60% (Class A Shares -- including sales
charge(1)) during the year ended May 31, 2000. Share price for the Institutional
Class Shares closed at $9.66 this reporting period, with a high of $9.80, and a
low of $9.63, during the fiscal year. This range of fluctuation is consistent
with the change in interest rates during this time period as measured by U.S.
Treasury rates.
The Fund continues to try and capture the incremental yield available in
the short end of the U.S. fixed income securities market. Over the past twelve
months, interest rates have risen about 100 basis points in this sector of the
market and the Fund continues to add these higher yielding bonds to the
portfolio. Going forward, shareholders of the Fund should benefit from these
additions as well as the Fund's continuing efforts to control price volatility.
The Fund continues to use high quality investments for its shareholders such as
U.S. Treasury securities, U.S. Agency and Mortgage related securities and
high-grade corporate and municipal issues.*
Signed,
/s/ Kelly J. Collins
Kelly J. Collins
Trust Investment Officer
Trustmark National Bank
---------------
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION
OF FUTURE RESULTS. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
<TABLE>
<C> <S>
(1) The total return for Class A Shares -- including sales
charge, listed above reflects the maximum sales charge of
3.00%.
* Portfolio composition is subject to change.
</TABLE>
The views expressed in this report reflect those of the portfolio manager
through the year ended May 31, 2000. The manager's views are subject to change
at any time based on the market and other conditions.
<PAGE> 5
PERFORMANCE FUNDS TRUST
--------------------------------------------------------------------------------
THE SHORT TERM GOVERNMENT INCOME FUND
PERFORMANCE (AS OF MAY 31, 2000)
<TABLE>
<CAPTION>
LEHMAN BROTHERS 1-3 YR.
CLASS A SHARES* INSTITUTIONAL SHARES GOV'T./CORP.(1)
-------------- -------------------- ----------------------
<S> <C> <C> <C>
6/92 9700 10000 10000
11/92 10016 10326 10322
5/93 10346 10673 10684
11/93 10542 10889 10938
5/94 10474 10832 10900
11/94 10548 10923 11016
5/95 11113 11522 11701
11/95 11474 11912 12141
5/96 11600 12057 12319
11/96 12042 12532 12854
5/97 12232 12745 13136
11/97 12653 13199 13620
5/98 13025 13604 14050
11/98 13448 14063 14612
5/99 13586 14225 14792
11/99 13805 14473 15089
5/00 14086 14787 15388
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------
CLASS A SHARES
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------------------
INCEPTION
1 YEAR 5 YEAR (6/1/92)
-------------------------------------------------------------
<S> <C> <C> <C>
Without Sales Charge 3.68% 4.86% 4.78%
-------------------------------------------------------------
With Sales Charge* 0.60% 4.23% 4.38%
-------------------------------------------------------------
</TABLE>
* Reflects the maximum sales charge of 3.00%
<TABLE>
<CAPTION>
--------------------------------------------------------------
INSTITUTIONAL SHARES
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------------------------------
INCEPTION
1 YEAR 5 YEAR (6/1/92)
--------------------------------------------------------------
<S> <C> <C>
3.94% 5.12% 5.01%
--------------------------------------------------------------
</TABLE>
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION
OF FUTURE RESULTS. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
<TABLE>
<C> <S>
(1) The charts above represent a comparison of a hypothetical
$10,000 investment and the reinvestment of dividends and
capital gains in the indicated share class versus a similar
investment in the Lehman Brothers 1-3 Year
Government/Corporate Index (the "Index"). The Index is
unmanaged and is comprised of investment-grade corporate
debt issues as well as debt issues of U.S. government
agencies and the U.S. Treasury. The debt issues all maintain
maturities within a range of 1-3 years. The Index does not
reflect the expenses associated with a mutual fund such as
investment management and accounting fees. The Fund's
performance reflects the deduction of fees for these
value-added services.
Investors cannot invest directly in an index although they
can invest in the underlying securities.
</TABLE>
<PAGE> 6
PORTFOLIO REVIEW
PERFORMANCE FUNDS TRUST
--------------------------------------------------------------------------------
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
To understand the bond market environment over the last year, we must look
at the economic events beginning in June 1998. The Fed, at that time, was
posturing for a rate increase because of our full capacity and an overheating
economy. It would be a full year before they actually moved rates, mainly due to
a financial crisis in Asia, Russia, and South America. This crisis sent global
investors looking for safety in U.S. Dollar denominated securities, mainly U.S.
Treasury securities. Therefore, in spite of a rapidly growing domestic economy,
and repeated warnings by the Fed, interest rates dropped to 30 year lows near
the end of 1998. The bond market was being stretched by huge contradictory
forces -- strong demand for the U.S. Dollar that was forcing rates down, and a
Hawkish Fed which wanted rates higher to control the exuberant economy.
By the end of 1998 and the early part of 1999, the global financial crisis
had begun to wane, and demand for the U.S. Dollar waned with it. Global
investors liquidated Treasury and U.S. Dollar denominated bonds at an alarming
rate, subsequently driving up rates 150 basis points from their lows, and back
to levels seen in June 1998 when these events began to reveal themselves. Bond
investors at May 31, 1999 were now sitting at rate levels they had experienced
just one year prior, yet had traveled through a vicious down/up 150 basis point
rate cycle. Enter Alan Greenspan and the Federal Open Market Committee, which
you remember had been threatening rate increases for over a year. The Fed made
its first attack at the new economy in June 1999, right at the start of this
reporting period. Since then, and through May 31, 2000, the Fed raised the Fed
Funds rate 6 times for a total of 175 basis points.
In general, intermediate interest rates rose over 100 basis points since
May 31, 1999, and over 200 basis points since the lows of 1998. Share price for
the Institutional Class Shares closed at $9.58 this reporting period, with a
high of $10.05, and low of $9.47 during the fiscal year. It is refreshing to
know, that in spite of this period overlapping part of the second worst bond
market in over 30 years, and the subsequent share price volatility, dividend
income was sufficient to provide shareholders with slightly above break-even
returns. Institutional Class Shares returned 0.71%* and Class A Shares
(excluding sales charge)(1) returned 0.45%* for the year ended May 31, 2000.
We now see a whole new light shining on the bond market. Yes, the Fed is
still threatening, but we currently see no more than 50-75 basis points in
increases ahead of us (25 basis point increase only is still a possibility). It
takes time for the effect of rate increases to filter through the economy,
sometimes 12 to 18 months. The Fed began to move a year ago, but didn't really
hit pay dirt until the moves to 6.00% and 6.50% in the last two months. Recent
signs are telling us that the higher rates are already affecting parts of the
economy. We believe that the time to start accumulating bonds is near, in that
the bond market will foresee the slowdown in the economy before it actually
occurs. It may still be too early to predict an economic slowdown, however, it
is not too early to start investing in good quality bond sectors which are now
at extremely low prices left over from a tumultuous bear market. In our opinion,
such bonds have excellent income opportunity which will carry an investor
through short term price volatility, and possibly provide outstanding returns if
the Fed is successful in squelching the new economy.
Signed,
/s/ Jonathan Rogers
Jonathan Rogers, CFA
Trustmark National Bank
---------------
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION
OF FUTURE RESULTS. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
<TABLE>
<C> <S>
(1) The total returns for Class A shares -- including the sales
charge of 5.25%, was -4.85% for the year ended May 31, 2000.
* The total return set forth reflects the waiver of a portion
of the Fund's fees. Without the waiver of these fees, total
return for the period would have been lower.
</TABLE>
The views expressed in this report reflect those of the portfolio manager
through the year ended May 31, 2000. The manager's views are subject to change
at any time based on the market and other conditions.
<PAGE> 7
PERFORMANCE FUNDS TRUST
--------------------------------------------------------------------------------
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
PERFORMANCE (AS OF MAY 31, 2000)
<TABLE>
<CAPTION>
LEHMAN BROTHERS
CLASS A SHARES* CLASS B SHARES*** INSTITUTIONAL SHARES GOV'T/CORP(1)
--------------- ----------------- -------------------- ---------------
<S> <C> <C> <C> <C>
6/92 9475.00 10000.00 10000.00 10000.00
11/92 9921.00 10466.00 10466.00 10470.00
5/93 10671.00 11258.00 11255.00 11227.00
11/93 11124.00 11736.00 11759.00 11776.00
5/94 10680.00 11267.00 11304.00 11340.00
11/94 10566.00 11147.00 11197.00 11338.00
5/95 11646.00 12286.00 12356.00 12657.00
11/95 12233.00 12906.00 12995.00 13411.00
5/96 11926.00 12582.00 12685.00 13176.00
11/96 12696.00 13395.00 13521.00 14161.00
5/97 12753.00 13453.00 13600.00 14216.00
11/97 13535.00 14279.00 14451.00 15210.00
5/98 14048.00 14820.00 15017.00 15849.00
11/98 14787.00 15579.00 15826.00 16784.00
5/99 14345.00 15057.00 15387.00 16493.00
11/99 14276.00 14944.00 15333.00 16563.00
5/00 14409.00 15012.00 15496.00 16805.00
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------
CLASS A SHARES
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------------------------
INCEPTION
1 YEAR 5 YEAR (6/1/92)
----------------------------------------------------------
<S> <C> <C> <C>
Without Sales Charge 0.45% 4.35% 5.38%
----------------------------------------------------------
With Sales Charge* -4.85% 3.23% 4.67%
----------------------------------------------------------
</TABLE>
* Reflects the maximum sales charge of 5.25%.
<TABLE>
<CAPTION>
------------------------------------------------------------------
CLASS B SHARES
AVERAGE ANNUAL TOTAL RETURN
------------------------------------------------------------------
INCEPTION
1 YEAR 5 YEAR*** (6/1/92)***
------------------------------------------------------------------
<S> <C> <C> <C>
Without CDSC -0.30% 4.09% 5.21%
------------------------------------------------------------------
With CDSC** -5.06% 3.76% 5.21%
------------------------------------------------------------------
</TABLE>
** Reflects the applicable contingent
deferred sales charge
(max. 5.00%) which varies with the
length of time held.
<TABLE>
<CAPTION>
-----------------------------------------------------------
INSTITUTIONAL SHARES
AVERAGE ANNUAL TOTAL RETURN
-----------------------------------------------------------
INCEPTION
1 YEAR 5 YEAR (6/1/92)
-----------------------------------------------------------
<S> <C> <C>
0.71% 4.63% 5.63%
-----------------------------------------------------------
</TABLE>
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION
OF FUTURE RESULTS. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
<TABLE>
<C> <S>
(1) The charts above represent a comparison of a hypothetical
$10,000 investment and the reinvestment of dividends and
capital gains in the indicated share class versus a similar
investment in Lehman Government/Corporate Bond Index (the
"Index"). The Index is an unmanaged index that is comprised
of investment-grade corporate debt issues as well as debt
issues of U.S. government agencies and the U.S. Treasury.
The debt issues all maintain maturities within a range of
1-10 years. The Index does not reflect the expenses
associated with a mutual fund, such as investment management
and accounting fees. The Fund's performance reflects the
deduction of fees for these value-added services.
Investors cannot invest directly in an index, although they
can invest in the underlying securities.
*** Performance of the Class B shares, which commenced
operations on 10/2/98 is based on the historical performance
of the Class A shares prior to that date which do not
reflect the higher distribution fees or the contingent
deferred sales charge (CDSC) associated with Class B shares.
Had the higher distribution fees and the CDSC been
incorporated, total return and hypothetical growth figures
would have been lower.
The total return set forth reflects the waiver of a portion
of the Fund's fees. Without the waiver of these fees, total
return for the period would have been lower.
</TABLE>
<PAGE> 8
PORTFOLIO REVIEW
PERFORMANCE FUNDS TRUST
--------------------------------------------------------------------------------
THE LARGE CAP EQUITY FUND
For the year ended May 31, 2000, the Large Cap Equity Fund, (the "Fund")
Institutional Class Shares returned 5.35% while the S&P 500 Index(1) returned
10.48%.
Again, we saw very good returns in the technology sector, with Cisco up
112% and Intel up 146%. The finance sector saw good performances from American
Express, up 38%, Bank of New York up 38%, Citigroup up 46%, and Morgan Stanley
Dean Witter up 57%. Issues in consumer related stocks continued to impact our
returns on the negative side, including Gillette, down 34%, Procter and Gamble
down 29% and Coca-Cola down 22%.
We are still faced with more uncertainty as to the extent of rate increases
by the Fed, which will fuel more sector rotation. However, our efforts and
resources continue to be directed at security selection rather than market
timing.
LISTED BELOW ARE THE TEN LARGEST HOLDINGS IN THE FUND ON MAY 31, 2000*:
<TABLE>
<C> <S> <C>
1. General Electric Company 4.80%
2. Intel Corporation 4.54%
3. Cisco Systems, Inc. 4.17%
4. Exxon-Mobil Corporation 3.06%
5. Microsoft Corporation 2.95%
6. Wal-Mart Stores, Inc. 2.70%
7. International Business Machines
Corporation 2.50%
8. Citigroup, Inc. 2.44%
9. Merck & Company, Inc. 1.97%
10. American International Group 1.92%
</TABLE>
Signed,
/s/ Charles H. Windham, Jr.
Charles H. Windham, Jr.
Vice President & Trust Officer
Trustmark National Bank
---------------
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION
OF FUTURE RESULTS. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
<TABLE>
<C> <S>
(1) The Standard & Poor's 500 Stock Index (the "Index") is an
unmanaged index that reflects the U.S. stock market as a
whole. The Index does not reflect the expenses associated
with a mutual fund such as investment management and
accounting fees. The Fund's performance reflects the
deduction of fees for such value-added services.
Investors cannot invest directly in an index although they
can invest in the underlying securities.
* Portfolio composition is subject to change. Ten largest
holdings' percentages are based upon net assets as of May
31, 2000.
</TABLE>
The views expressed in this report reflect those of the portfolio manager
through the year ended May 31, 2000. The manager's views are subject to change
at any time based on the market and other conditions.
<PAGE> 9
PERFORMANCE FUNDS TRUST
--------------------------------------------------------------------------------
THE LARGE CAP EQUITY FUND
PERFORMANCE (AS OF MAY 31, 2000)
<TABLE>
<CAPTION>
CLASS A SHARES* CLASS B SHARES*** INSTITUTIONAL SHARES S&P 500(1)
--------------- ----------------- -------------------- ----------
<S> <C> <C> <C> <C>
5/92 9475.00 10000.00 10000.00 10000.00
11/92 10138.00 10695.00 10695.00 10541.00
5/93 10841.00 11437.00 11448.00 11157.00
11/93 11408.00 12036.00 12061.00 11603.00
5/94 11150.00 11763.00 11802.00 11631.00
11/94 10978.00 11582.00 11635.00 11728.00
5/95 12830.00 13535.00 13615.00 13968.00
11/95 14743.00 15554.00 15665.00 16056.00
5/96 16475.00 17381.00 17526.00 17947.00
11/96 19044.00 20092.00 20284.00 20529.00
5/97 21212.00 22378.00 22619.00 23230.00
11/97 24245.00 25578.00 25885.00 26387.00
5/98 28044.00 29586.00 29976.00 30363.00
11/98 30215.00 31845.00 32346.00 32632.00
5/99 33069.00 34751.00 35445.00 36747.00
11/99 34988.00 36633.00 37554.00 39452.00
5/00 34749.00 36250.00 37344.00 40598.00
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------
CLASS A SHARES
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------------------------
INCEPTION
1 YEAR 5 YEAR (6/1/92)
----------------------------------------------------------
<S> <C> <C> <C>
Without Sales Charge 5.08% 22.05% 17.64%
----------------------------------------------------------
With Sales Charge* -0.44% 20.75% 16.85%
----------------------------------------------------------
</TABLE>
* Reflects the maximum sales charge of 5.25%
<TABLE>
<CAPTION>
----------------------------------------------------------
CLASS B SHARES
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------------------------
INCEPTION
1 YEAR 5 YEAR*** (6/1/92)***
----------------------------------------------------------
<S> <C> <C> <C>
Without CDSC 4.31% 21.78% 17.47%
----------------------------------------------------------
With CDSC** -0.69% 21.69% 17.47%
----------------------------------------------------------
</TABLE>
** Reflects the applicable contingent
deferred sales charge (max. 5.00%)
which varies with the length of
time held.
<TABLE>
<CAPTION>
-----------------------------------------------------------
INSTITUTIONAL SHARES
AVERAGE ANNUAL TOTAL RETURN
-----------------------------------------------------------
INCEPTION
1 YEAR 5 YEAR (6/1/92)
-----------------------------------------------------------
<S> <C> <C>
5.35% 22.36% 17.91%
-----------------------------------------------------------
</TABLE>
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION
OF FUTURE RESULTS. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
<TABLE>
<C> <S>
(1) The charts above represent a comparison of a hypothetical
$10,000 investment and the reinvestment of dividends and
capital gains in the indicated share class versus a similar
investment in the Standard & Poor's 500 Stock Index (the
"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 accounting fees. The Fund's performance
reflects the deduction of fees for these value-added
services.
Investors cannot invest directly in an index, although they
can invest in the underlying securities.
*** Performance of the Class B shares, which commenced
operations on 10/2/98, is based on the historical
performance of the Class A shares prior to that date which
do not reflect the higher distribution fees or the
contingent deferred sales charge (CDSC) associated with
Class B shares. Had the higher distribution fees and the
CDSC been incorporated, total return and hypothetical growth
figures would have been lower.
</TABLE>
<PAGE> 10
PORTFOLIO REVIEW
PERFORMANCE FUNDS TRUST
--------------------------------------------------------------------------------
THE MID CAP EQUITY FUND
For the year ending May 31, 2000, the Mid Cap Equity Fund, (the "Fund")
Institutional Class Shares returned 8.55% while the S&P MidCap 400(1) returned
21.51%. The Fund's returns were closely matching the benchmark until the final
three months of the period when the market underwent a dramatic correction.
Holdings in the technology, biotechnology, and communication sectors were
particularly hard hit during the market turbulence and the Fund's relative
performance subsequently suffered.
For the year, companies in the Energy sector positively impacted returns.
BJ Services increased 160%, Ensco International rallied 97%, and Smith
International jumped 83%. Retailers such as Dollar Tree (up 77%), Tiffany &
Company (up 48%), and Hannaford Brothers (up 41%) also contributed to the Fund's
increase. On the downside Claire's Stores fell 30%, Kaydon Corp. retreated 29%,
and Jones Apparel fell 13%. In the last three months of the period,
over-weighted positions in Electronic Arts (-36%) and Comdisco (-33%)
particularly affected the Fund's performance.
We expect the market to continue trading in a choppy range as it slowly
undergoes the repair process following the steep sell-off earlier in the year.
On a brighter note, the bear market served to remove much of the excesses,
valuations for most companies are quite reasonable, and corporate profits remain
healthy.
LISTED BELOW ARE THE TOP TEN HOLDINGS OF THE FUND AT MAY 31, 2000*:
<TABLE>
<C> <S> <C>
1. American Power Conversion
Corporation 4.10%
2. Comdisco, Inc. 3.76%
3. Stryker Corporation 3.63%
4. Smith International, Inc. 2.81%
5. Edwards (A.G.) Inc. 2.39%
6. Maxim Integrated Products, Inc. 2.37%
7. Jones Apparel Group, Inc. 2.07%
8. Ivax Corporation 2.01%
9. Electronic Arts, Inc. 1.99%
10. Energy East Corporation 1.79%
</TABLE>
Signed,
/s/ Douglas H. Ralston
Douglas H. Ralston, CFA
Vice President
Trustmark National Bank
---------------
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION
OF FUTURE RESULTS. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
<TABLE>
<C> <S>
(1) The Standard & Poor's MidCap 400 Stock Index (the "Index")
is an unmanaged capitalization weighted index that measures
the performance of the mid-range sector of the U.S. stock
market where the market capitalization is approximately $700
million. The Index does not reflect the expenses associated
with a mutual fund such as investment management and
accounting fees. The Fund's performance reflects the
deduction of fees for such value-added services.
Investors cannot invest directly in an index although they
can invest in the underlying securities.
* Portfolio composition is subject to change. Ten largest
holdings' percentages are based upon net assets as of May
31, 2000.
</TABLE>
The views expressed in this report reflect those of the portfolio manager
through the year ended May 31, 2000. The manager's views are subject to change
at any time based on the market and other conditions.
<PAGE> 11
PERFORMANCE FUNDS TRUST
--------------------------------------------------------------------------------
THE MID CAP EQUITY FUND
PERFORMANCE (AS OF MAY 31, 2000)
<TABLE>
<CAPTION>
CLASS A SHARES* CLASS B SHARES*** INSTITUTIONAL SHARES S&P MID CAP 400(1)
--------------- ----------------- -------------------- ------------------
<S> <C> <C> <C> <C>
2/94 9475.00 10000.00 10000.00 10000.00
5/94 9128.00 9630.00 9634.00 9517.00
11/94 9050.00 9548.00 9563.00 9472.00
5/95 10683.00 11271.00 11301.00 10803.00
11/95 12445.00 13129.00 13180.00 12548.00
5/96 14182.00 14963.00 15037.00 13878.00
11/96 15525.00 16379.00 16480.00 14903.00
5/97 17349.00 18304.00 18439.00 16398.00
11/97 20259.00 21374.00 21556.00 18995.00
5/98 22002.00 23212.00 23446.00 21302.00
11/98 20317.00 21390.00 21664.00 20971.00
5/99 21714.00 22792.00 23196.00 23843.00
11/99 23292.00 24344.00 24918.00 25452.00
5/00 23509.00 24472.00 25180.00 28959.00
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------
CLASS A SHARES
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------------------------
INCEPTION
1 YEAR 5 YEAR (2/24/94)
----------------------------------------------------------
<S> <C> <C> <C>
Without Sales Charge 8.27% 17.09% 15.61%
----------------------------------------------------------
With Sales Charge* 2.59% 15.82% 14.62%
----------------------------------------------------------
</TABLE>
* Reflects the maximum sales charge of 5.25%
<TABLE>
<CAPTION>
------------------------------------------------------------
CLASS B SHARES
AVERAGE ANNUAL TOTAL RETURN
------------------------------------------------------------
INCEPTION
1 YEAR 5 YEAR*** (2/24/94)***
------------------------------------------------------------
<S> <C> <C> <C>
Without CDSC 7.37% 16.77% 15.36%
------------------------------------------------------------
With CDSC** 2.82% 16.56% 15.36%
------------------------------------------------------------
</TABLE>
** Reflects the applicable contingent
deferred sales charge (max. 5.00%)
which varies with the length of
time held.
<TABLE>
<CAPTION>
-----------------------------------------------------------
INSTITUTIONAL SHARES
AVERAGE ANNUAL TOTAL RETURN
-----------------------------------------------------------
INCEPTION
1 YEAR 5 YEAR (2/24/94)
-----------------------------------------------------------
<S> <C> <C>
8.55% 17.38% 15.89%
-----------------------------------------------------------
</TABLE>
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION
OF FUTURE RESULTS. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
<TABLE>
<C> <S>
(1) The charts above represent a comparison of a hypothetical
$10,000 investment and the reinvestment of dividends and
capital gains in the indicated share class versus a similar
investment in the Standard & Poor's MidCap 400 Stock Index
(the "Index"), which is a capitalization-weighted index that
measures the performance of the mid-range sector of the 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 accounting fees. The
Fund's performance reflects the deduction of fees for these
value-added services.
Investors cannot invest directly in an index, although they
can invest in the underlying securities.
*** Performance of the Class B shares, which commenced
operations on 10/2/98 is based on the historical performance
of the Class A shares prior to that date which do not
reflect the higher distribution fees or the contingent
deferred sales charge (CDSC) associated with the Class B
shares. Had the higher distribution fees and the CDSC been
incorporated, total return and hypothetical growth figures
would have been lower.
</TABLE>
<PAGE> 12
PORTFOLIO REVIEW
PERFORMANCE FUNDS TRUST
--------------------------------------------------------------------------------
THE SMALL CAP EQUITY FUND(+)
The Small Cap Equity Fund (the "Fund") Institutional Class Shares returned
2.34%* for the year ending May 31, 2000. The S&P SmallCap 600 Index(1) returned
14.19% in comparison.
Technology continued to lead all sectors with some companies turning in
truly spectacular returns. Energy stocks benefited from a resurgence in oil
prices and the health care sector performed well, with biotechnology companies
providing most of the return. On the negative side, investor concerns over Fed
actions caused financials and rate sensitive cyclicals to significantly
underperform. In the Fund, Plexus Corp. returned 172.5%, Vintage Petroleum was
up 130.0% and Jones Pharmaceutical rose 110.7%. Enhance Financial was down 29.6%
and Shopko fell 48.2%.
Index returns continue to be driven by high-expected growth, expensive,
high beta stocks. In March 2000, some of these companies corrected (the Nasdaq
market index fell from over 5,100 to 3,400) and we saw broader market
participation by sector. This being positive for the market as a whole, was too
little, too late for market laggards.
The current environment is marked with volatility. Investors are concerned
about further rate increases by the Fed. Recent economic releases have begun to
show signs of a slowing in the economy and confirmation of a slowdown in the
coming weeks and months would be positive for stocks as the Fed takes a more
neutral stance.
LISTED BELOW ARE THE TOP TEN HOLDINGS OF THE FUND AT MAY 31, 2000**:
<TABLE>
<C> <S> <C>
1. Timberland Company, Class A 3.07%
Orthodontic Centers of America,
2. Inc. 2.86%
3. Patterson Dental Company 2.65%
4. Silicon Valley Bancshares 2.05%
5. Mercury Interactive Corporation 1.76%
6. Manitowoc Company, Inc. 1.70%
7. Dallas Semiconductor 1.67%
8. Canadaigua Brands, Inc. 1.63%
9. Mueller Industries, Inc. 1.53%
10. Dycom Industries 1.51%
</TABLE>
Signed,
/s/ Douglas P. Muenzenmay
Doug P. Muenzenmay
Investment Officer
Trustmark National Bank
---------------
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION
OF FUTURE RESULTS. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
<TABLE>
<C> <S>
(1) The Standard & Poor's SmallCap 600 Index (the "Index") is an
unmanaged capitalization weighted index that measures the
performance of selected U.S. stocks with a small market
capitalization. The Index does not reflect the expenses
associated with a mutual fund such as investment management
and accounting fees. The Fund's performance reflects the
deduction of fees for these value-added services.
Investors cannot invest directly in an index although they
can invest in the underlying securities.
* The total return set forth reflects the waiver of a portion
of the Fund's fees. Without the waiver of these fees, total
return for the period would have been lower.
** Portfolio composition is subject to change. Ten largest
holdings' percentages are based upon net assets as of May
31, 2000.
+ Small company funds typically carry additional risks since
small companies generally have higher company specific risk
and historically, their stocks have experienced a greater
degree of market volatility than larger company stocks on
average.
</TABLE>
The views expressed in this report reflect those of the portfolio manager
through the year ended May 31, 2000. The manager's views are subject to change
at any time based on the market and other conditions.
<PAGE> 13
PERFORMANCE FUNDS TRUST
--------------------------------------------------------------------------------
THE SMALL CAP EQUITY FUND
PERFORMANCE (AS OF MAY 31, 2000)
[SMALL CAP EQUITY FUND PERFORMANCE]
<TABLE>
<CAPTION>
CLASS A SHARES* CLASS B SHARES*** INSTITUTIONAL SHARES S&P SMALL CAP 600(1)
--------------- ----------------- -------------------- --------------------
<S> <C> <C> <C> <C>
10/97 9475 10000 10000 10000
11/97 8720 9200 9200 9499
5/98 9393 9910 9920 10253
11/98 8095 8540 8570 8990
5/99 7743 8139 8209 9505
11/99 7877 8250 8361 9934
5/00 7906 7995 8401 10849
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------
CLASS A SHARES
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------------------------
INCEPTION
1 YEAR 5 YEAR (10/1/97)
---------------------------------------------------------
<S> <C> <C> <C>
Without Sales Charge 2.10% N/A -6.59%
---------------------------------------------------------
With Sales Charge* -3.28% N/A -8.45%
---------------------------------------------------------
</TABLE>
* Reflects the maximum sales charge of 5.25%.
<TABLE>
<CAPTION>
------------------------------------------------------------
CLASS B SHARES
AVERAGE ANNUAL TOTAL RETURN
------------------------------------------------------------
INCEPTION
1 YEAR 5 YEAR*** (10/1/97)***
------------------------------------------------------------
<S> <C> <C> <C>
Without CDSC 1.24% N/A -7.01%
------------------------------------------------------------
With CDSC** -3.76% N/A -8.06%
------------------------------------------------------------
</TABLE>
** Reflects the applicable contingent
deferred sales charge (max. 5.00%)
which varies with the length of
time held.
<TABLE>
<CAPTION>
-----------------------------------------------------------
INSTITUTIONAL SHARES
AVERAGE ANNUAL TOTAL RETURN
-----------------------------------------------------------
INCEPTION
1 YEAR 5 YEAR (10/1/97)
-----------------------------------------------------------
<S> <C> <C>
2.34% N/A -6.33%
-----------------------------------------------------------
</TABLE>
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION
OF FUTURE RESULTS. THE INVESTMENT RETURN AND NET ASSET VALUE WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
<TABLE>
<C> <S>
(1) The charts above represent a comparison of a hypothetical
$10,000 investment and the reinvestment of dividends and
capital gains in the indicated share class versus a similar
investment in the Standard & Poor's SmallCap 600 Index (the
"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. The Fund's performance reflects the
deduction of fees for these value-added services.
Investors cannot invest directly in an index, although they
can invest in the underlying securities.
*** Performance of the Class B shares, which commenced
operations on 10/2/98 is based on the historical performance
of the Class A shares prior to that date which do not
reflect the higher distribution fees or the contingent
deferred sales charge (CDSC) associated with the Class B
shares. Had the higher distribution fees and the CDSC been
incorporated, total return and hypothetical growth figures
would have been lower.
</TABLE>
<PAGE> 14
PERFORMANCE FUNDS TRUST
THE MONEY MARKET FUND
Schedule of Portfolio Investments
May 31, 2000
<TABLE>
<CAPTION>
MOODY'S/S&P
PRINCIPAL RATINGS AMORTIZED
AMOUNT SECURITY DESCRIPTION (UNAUDITED) COST
--------- -------------------- ----------- ---------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY NOTES -- 26.7%
FEDERAL FARM CREDIT BANK -- 3.9%
$10,000,000 6.29%, 7/3/00*.............................................. Aaa/N/R $ 9,997,457
10,000,000 6.17%, 6/1/00*.............................................. Aaa/N/R 10,000,000
------------
19,997,457
------------
FEDERAL HOME LOAN BANK -- 7.5%
20,000,000 6.09%, 6/30/00.............................................. Aaa/N/R 19,901,883
5,000,000 5.56%, 7/14/00.............................................. Aaa/N/R 5,000,082
2,000,000 6.05%, 11/3/00.............................................. Aaa/N/R 1,999,678
3,000,000 6.09%, 11/3/00.............................................. Aaa/N/R 2,996,899
3,500,000 6.47%, 2/16/01.............................................. Aaa/N/R 3,498,055
5,000,000 6.45%, 3/16/01.............................................. Aaa/N/R 4,991,214
------------
38,387,811
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 8.5%
19,243,000 5.96%, 6/6/00............................................... Aaa/N/R 19,227,071
15,000,000 5.97%, 6/22/00.............................................. Aaa/N/R 14,947,763
5,000,000 6.26%, 1/12/01, MTN......................................... Aaa/N/R 4,992,292
5,000,000 6.75%, 4/27/01, MTN, Callable 7/27/00 @ 100................. Aaa/N/R 5,000,000
------------
44,167,126
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 6.8%
1,665,000 5.65%, 6/12/00, MTN......................................... Aaa/N/R 1,664,781
10,000,000 6.41%, 7/6/00............................................... Aaa/N/R 9,941,278
5,000,000 5.56%, 7/24/00.............................................. Aaa/N/R 4,999,730
5,000,000 5.60%, 9/1/00, Callable 7/3/00 @ 100........................ Aaa/N/R 4,988,772
3,545,000 6.57%, 2/22/01.............................................. Aaa/N/R 3,542,391
5,000,000 6.45%, 2/23/01.............................................. Aaa/N/R 4,997,410
5,000,000 6.52%, 3/16/01.............................................. Aaa/N/R 4,997,327
------------
35,131,689
------------
TOTAL U.S. GOVERNMENT AGENCY NOTES....................................... 137,684,083
------------
COMMERCIAL PAPER -- 62.1%
AUTOMOTIVE -- 5.0%
11,000,000 Ford Motor Credit Corporation, 6.06%, 6/12/00............... P1/A1 10,979,632
5,000,000 Ford Motor Credit Corporation, 6.46%, 6/28/00............... P1/A1 4,975,775
10,000,000 General Motors Acceptance Corporation, 6.30%, 6/13/00....... P1/A1 9,979,000
------------
25,934,407
------------
BANKING -- 3.9%
20,000,000 Wells Fargo Company, 6.30%, 6/1/00.......................... P1/A1 20,000,000
------------
</TABLE>
See notes to financial statements.
1
<PAGE> 15
PERFORMANCE FUNDS TRUST
THE MONEY MARKET FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
MOODY'S/S&P
PRINCIPAL RATINGS AMORTIZED
AMOUNT SECURITY DESCRIPTION (UNAUDITED) COST
--------- -------------------- ----------- ---------
<C> <S> <C> <C>
COMMERCIAL PAPER (CONTINUED)
BEVERAGES -- 4.8%
$10,000,000 Coca Cola Company, 6.17%, 6/15/00........................... P1/A1 $ 9,976,006
15,000,000 Coca Cola Company, 6.53%, 7/18/00........................... P1/A1 14,872,120
------------
24,848,126
------------
BROKERAGE SERVICES -- 9.8%
13,000,000 Bear Stearns Company, Inc., 6.41%, 6/14/00.................. P1/A1 12,969,909
15,000,000 Goldman Sachs & Company, 6.23%, 6/21/00..................... P1/A1+ 14,948,084
12,000,000 Merrill Lynch & Company, 6.05%, 6/8/00...................... P1/A1+ 11,985,883
10,000,000 Merrill Lynch & Company, 6.10%, 6/16/00..................... P1/A1+ 9,974,583
------------
49,878,459
------------
CHEMICALS -- 7.1%
12,920,000 Clorox Company, 6.08%, 7/7/00............................... P1/A1 12,841,446
14,000,000 Du Pont (E.I.) de Nemours, 6.00%, 6/9/00.................... P1/A1+ 13,981,334
10,000,000 Du Pont (E.I.) de Nemours, 6.34%, 6/19/00................... P1/A1+ 9,968,300
------------
36,791,080
------------
CONSUMER GOODS & SERVICES -- 2.0%
10,000,000 Minnesota Mining & Manufacturing Company, 6.30%, 6/5/00..... P1/A1+ 9,993,000
------------
ENERGY -- 1.9%
10,000,000 Texaco, Inc., 6.47%, 6/19/00................................ P1/A1 9,967,650
------------
FINANCIAL SERVICES -- 13.5%
11,000,000 American General Corporation, 6.04%, 6/5/00................. P1/A1+ 10,992,618
12,000,000 American General Corporation, 6.43%, 6/23/00................ P1/A1+ 11,952,846
9,000,000 Associates Corporation NA, 6.40%, 6/20/00................... P1/A1 8,969,600
6,000,000 Associates Corporation NA, 6.47%, 6/27/00................... P1/A1 5,971,963
8,000,000 Associates Corporation NA, 6.56%, 7/19/00................... P1/A1 7,930,027
12,000,000 General Electric Capital Corporation, 6.08%, 6/14/00........ P1/A1+ 11,973,653
12,000,000 General Electric Capital Corporation, 6.49%, 6/16/00........ P1/A1+ 11,967,550
------------
69,758,257
------------
MULTIMEDIA -- 2.9%
15,000,000 Gannett Company, 6.50%, 7/11/00............................. P1/A1+ 14,891,667
------------
RETAIL -- 1.9%
10,000,000 Albertson's, Inc., 6.50%, 6/14/00(b)*....................... P1/A1 9,999,510
------------
TELECOMMUNICATIONS -- 9.3%
11,000,000 Bell South Corporation, 6.02%, 6/13/00...................... P1/A1+ 10,977,927
13,000,000 Bell South Corporation, 6.51%, 7/10/00...................... P1/A1- 12,908,318
14,000,000 Motorola, Inc., 6.02%, 6/7/00............................... P1/A1 13,985,953
10,000,000 Motorola, Inc., 6.07%, 7/5/00............................... P1/A1 9,942,672
------------
47,814,870
------------
TOTAL COMMERCIAL PAPER................................................... 319,877,026
------------
</TABLE>
See notes to financial statements.
2
<PAGE> 16
PERFORMANCE FUNDS TRUST
THE MONEY MARKET FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
MOODY'S/S&P
PRINCIPAL RATINGS AMORTIZED
AMOUNT SECURITY DESCRIPTION (UNAUDITED) COST
--------- -------------------- ----------- ---------
<C> <S> <C> <C>
CORPORATE BONDS -- 3.9%
BROKERAGE SERVICES -- 2.3%
$ 2,225,000 Bear Stearns Company, Inc., 6.50%, 6/15/00.................. A2/A $ 2,225,342
5,000,000 Bear Stearns Company, Inc., 6.56%, 6/20/00.................. A2/A 5,001,216
4,000,000 Bear Stearns Company, Inc., 6.50%, 7/5/00................... A2/A 4,002,847
1,000,000 Merrill Lynch & Company, 6.70%, 8/1/00...................... Aa3/Aa- 1,001,008
------------
12,230,413
------------
CONSUMER GOODS & SERVICES -- 1.1%
3,000,000 Pepsico, Inc., 5.88%, 6/1/00................................ A1/A 3,000,000
2,500,000 Wal-Mart Stores, Inc., 8.63%, 4/1/01........................ Aa2/Aa 2,523,962
------------
5,523,962
------------
FINANCIAL SERVICES -- 0.5%
2,500,000 CitiFinancial, 5.75%, 7/15/00............................... Aa3/Aa- 2,498,992
------------
TOTAL CORPORATE BONDS.................................................... 20,253,367
------------
MUNICIPAL BONDS -- 2.1%
MISSISSIPPI -- 2.1%
11,000,000 Mississippi Business Finance Corporation, 6.45%, 7/5/00..... P1/A1+ 11,000,000
------------
TOTAL MUNICIPAL BONDS.................................................... 11,000,000
------------
CERTIFICATES OF DEPOSIT -- 2.9%
10,000,000 First Tennessee Bank, 6.53%, 6/21/00........................ A1/A 10,000,000
5,000,000 Regions Bank, 6.09%, 10/10/00............................... Aa2/A+ 4,999,144
------------
TOTAL CERTIFICATES OF DEPOSIT............................................ 14,999,144
------------
</TABLE>
See notes to financial statements.
3
<PAGE> 17
PERFORMANCE FUNDS TRUST
THE MONEY MARKET FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL AMORTIZED
AMOUNT SECURITY DESCRIPTION COST
--------- -------------------- ---------
<C> <S> <C> <C>
REPURCHASE AGREEMENTS -- 4.4%
$22,416,812 BA Securities, 6.52%, dated 5/31/00, due 6/1/00 with a maturity value of
$22,420,872 (collateralized by a Federal Home Loan Bank Note, 6.12%, due
10/25/00, market value $22,873,500)...................................... $ 22,416,812
------------
TOTAL REPURCHASE AGREEMENTS.............................................. 22,416,812
------------
TOTAL INVESTMENTS (Amortized Cost $526,230,432)(a) -- 102.1%............. 526,230,432
LIABILITIES IN EXCESS OF OTHER ASSETS -- (2.1)%.......................... (10,980,777)
------------
NET ASSETS -- 100.0%..................................................... $515,249,655
============
</TABLE>
---------------
(a) Cost for federal income tax and financial reporting purposes is the same.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
* Variable rate investments. The rate presented represents the rate in effect at
May 31, 2000. The maturity date presented represents the next rate change
date.
MTN -- Medium Term Note
NA -- National Association
N/R -- Not Rated
See notes to financial statements.
4
<PAGE> 18
PERFORMANCE FUNDS TRUST
THE SHORT TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments
May 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 60.3%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 39.3%
$ 4,781,270 Series 2078 (PQ), 6.00%, 7/15/07............................ $ 4,720,261
3,000,000 Series 2061 (PH), 6.00%, 5/15/16............................ 2,946,480
9,761,531 Series 2054 (PA), 6.00%, 5/15/17............................ 9,573,036
10,000,000 Series 1590 (F), 6.00%, 1/15/19............................. 9,841,300
9,213,018 Series 1637 (F), 6.00%, 9/15/21............................. 9,041,932
-----------
36,123,009
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 21.0%
4,544,988 Series 1998-26 (PA), 6.00%, 11/18/17........................ 4,449,588
2,074,469 Series 1994-65 (PE), 6.75%, 7/25/18......................... 2,064,511
3,000,000 Series 1998-47 (PB), 6.00%, 12/18/18........................ 2,935,140
10,000,000 Series 1993-102 (G), 6.25%, 1/25/20......................... 9,868,500
-----------
19,317,739
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS.................... 55,440,748
-----------
U.S. TREASURY OBLIGATIONS -- 8.6%
U.S. TREASURY NOTES -- 3.8%
3,500,000 6.50%, 5/31/02.............................................. 3,483,235
-----------
U.S. TREASURY STRIPS -- 4.8%
5,000,000 6.06%, 5/15/02.............................................. 4,394,200
-----------
TOTAL U.S. TREASURY OBLIGATIONS............................. 7,877,435
-----------
U.S. GOVERNMENT AGENCY NOTES -- 12.2%
FEDERAL FARM CREDIT BANK -- 2.1%
2,000,000 5.76%, 7/7/03............................................... 1,908,360
-----------
FEDERAL HOME LOAN BANK -- 5.8%
2,000,000 6.25%, 11/15/02............................................. 1,952,440
2,000,000 7.00%, 02/14/03............................................. 1,982,160
1,500,000 7.25%, 05/15/03............................................. 1,494,375
-----------
5,428,975
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 2.2%
2,000,000 7.00%, 2/15/03.............................................. 1,982,500
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 2.1%
2,000,000 6.50%, 8/15/04.............................................. 1,935,200
-----------
TOTAL U.S. GOVERNMENT AGENCY NOTES.......................... 11,255,035
-----------
CORPORATE BONDS -- 15.9%
AUTOMOTIVE -- 1.1%
1,000,000 Daimler Chrysler, 7.13%, 03/01/02........................... 995,000
-----------
ELECTRONICS -- 1.1%
1,000,000 Sony Corporation, 6.13%, 3/4/03............................. 968,750
-----------
</TABLE>
See notes to financial statements.
5
<PAGE> 19
PERFORMANCE FUNDS TRUST
THE SHORT TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
FINANCIAL SERVICES -- 7.4%
$ 1,000,000 CIT Group, Inc., 6.38%, 10/1/02............................. $ 966,250
1,000,000 Ford Motor Credit Corporation, 6.55%, 9/10/02............... 977,500
1,000,000 General Electric Capital Corporation, 7.00%, 2/3/03......... 990,000
1,000,000 IBM Credit Corporation, 6.40%, 8/13/01...................... 988,750
1,000,000 Lehman Brothers, Inc., 7.00%, 10/1/02....................... 975,000
1,000,000 Merrill Lynch & Company, 6.00%, 1/15/01..................... 992,500
1,000,000 Morgan Stanley Dean Witter, 6.88%, 3/1/03................... 978,750
-----------
6,868,750
-----------
INDUSTRIAL GOODS & SERVICES -- 2.1%
1,000,000 Baker Hughes, Inc., 5.80%, 2/15/03.......................... 948,750
1,000,000 Ingersoll-Rand Company, 6.38%, 11/19/01..................... 981,250
-----------
1,930,000
-----------
RAILROADS -- 1.0%
1,000,000 Consolidated Rail Corporation, 5.58%, 11/15/02 951,250
-----------
TELECOMMUNICATIONS -- 2.1%
1,000,000 MCI Worldcom, Inc., 6.13%, 8/15/01.......................... 985,000
1,000,000 US West Communications, Inc., 6.13%, 7/15/02................ 971,250
-----------
1,956,250
-----------
UTILITIES -- 1.1%
1,000,000 Detroit Edison Company, 5.93%, 2/1/01....................... 991,250
-----------
TOTAL CORPORATE BONDS....................................... 14,661,250
-----------
MUNICIPAL BONDS -- 1.1%
PENNSYLVANIA -- 1.1%
1,000,000 City of Erie, PA, GO, 5.15%, 11/15/01, OID.................. 970,000
-----------
TOTAL MUNICIPAL BONDS....................................... 970,000
-----------
</TABLE>
See notes to financial statements.
6
<PAGE> 20
PERFORMANCE FUNDS TRUST
THE SHORT TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
------ -------------------- ------
<C> <S> <C>
INVESTMENT COMPANIES -- 1.7%
1,553,656 AIM Treasury Money Market................................... $ 1,553,656
-----------
TOTAL INVESTMENT COMPANIES.................................. 1,553,656
-----------
TOTAL INVESTMENTS (Cost $93,296,034)(a) -- 99.8%............ 91,758,124
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.2%............... 224,523
-----------
NET ASSETS -- 100.0%........................................ $91,982,647
===========
</TABLE>
---------------
(a) The cost for federal income tax and financial reporting purposes is the
same. The cost for federal income tax purposes differs from market value by
net unrealized depreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................ $ 2,436
Unrealized depreciation............................ (1,540,346)
-----------
Net unrealized depreciation........................ $(1,537,910)
===========
</TABLE>
GO -- General Obligation
OID -- Original Issue Discount
See notes to financial statements.
7
<PAGE> 21
PERFORMANCE FUNDS TRUST
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments
May 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 37.6%
FEDERAL AGRICULTURAL MORTGAGE CORPORATION -- 0.6%
$1,000,000 5.93%, 6/04/08.............................................. $ 903,530
------------
FEDERAL FARM CREDIT BANK -- 3.8%
2,000,000 6.63%, 2/01/02.............................................. 1,982,500
2,000,000 5.63%, 9/02/03.............................................. 1,896,580
2,000,000 5.88%, 7/28/08.............................................. 1,797,500
------------
5,676,580
------------
FEDERAL HOME LOAN BANK -- 3.9%
3,000,000 6.13%, 8/15/03.............................................. 2,890,770
2,000,000 7.13%, 2/15/05.............................................. 1,978,340
1,000,000 6.38%, 8/15/06.............................................. 946,420
------------
5,815,530
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 4.4%
1,000,000 7.41%, 4/19/06, Callable 4/19/01 @ 100...................... 975,300
3,900,000 Series 2206 (VQ), 7.00%, 8/15/14............................ 3,605,706
2,000,000 6.75%, 9/15/29.............................................. 1,854,480
------------
6,435,486
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 8.9%
1,000,000 6.00%, 1/14/05, MTN, Callable 1/14/02 @ 100................. 941,760
2,000,000 6.49%, 1/19/06, MTN, Callable 1/19/01 @ 100................. 1,895,040
1,000,000 7.32%, 5/3/06, MTN, Callable 5/3/01 @ 100................... 967,880
1,000,000 7.19%, 11/6/06, MTN, Callable 11/6/01 @ 100................. 966,980
1,000,000 7.33%, 4/2/07, MTN, Callable 4/2/02 @ 100................... 971,100
2,000,000 7.00%, 7/17/07, MTN, Callable 7/21/00 @ 100................. 1,906,500
1,000,000 6.17%, 1/15/08, MTN, Callable 1/15/03 @ 100................. 911,550
1,000,000 6.16%, 1/23/08, MTN, Callable 1/23/03 @ 100................. 914,580
500,000 6.51%, 5/6/08, MTN, Callable 5/6/03 @ 100................... 462,555
3,391,253 Pool #253299, 7.00%, 04/01/20............................... 3,249,228
------------
13,187,173
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 16.0%
52,327 Pool #210311, 9.00%, 6/15/17................................ 53,681
22,315 Pool #271741, 9.00%, 3/15/20................................ 22,891
5,000,000 Series 1999-23 B, 6.50%, 7/20/25............................ 4,422,350
5,000,000 Series 2000-06 (BA), 7.00%, 9/20/26......................... 4,507,000
4,857,908 Pool #510559, 7.00%, 10/15/29............................... 4,665,777
4,971,629 Pool #510534, 7.50%, 10/15/29............................... 4,881,841
4,989,492 Pool #529127, 8.00%, 2/15/30................................ 5,000,369
------------
23,553,909
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS.................... 55,572,208
------------
</TABLE>
See notes to financial statements.
8
<PAGE> 22
PERFORMANCE FUNDS TRUST
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
U.S. TREASURY OBLIGATIONS -- 28.4%
U.S. TREASURY BONDS -- 11.5%
$8,000,000 7.25%, 5/15/16.............................................. $ 8,643,040
4,000,000 7.25%, 8/15/22.............................................. 4,412,200
4,000,000 6.25%, 8/15/23.............................................. 3,948,760
------------
17,004,000
------------
U.S. TREASURY NOTES -- 16.9%
5,900,000 5.50%, 2/28/03.............................................. 5,718,575
5,000,000 4.25%, 11/15/03............................................. 4,636,350
5,000,000 6.50%, 8/15/05.............................................. 4,974,450
1,400,000 5.63%, 2/15/06.............................................. 1,338,120
5,000,000 6.50%, 10/15/06............................................. 4,978,350
3,500,000 5.63%, 5/15/08.............................................. 3,318,070
------------
24,963,915
------------
TOTAL U.S. TREASURY OBLIGATIONS............................. 41,967,915
------------
U.S. GOVERNMENT AGENCY NOTES -- 3.4%
U.S. GOVERNMENT AGENCY -- 3.4%
2,000,000 Tennessee Valley Authority, 6.38%, 6/15/05.................. 1,900,000
3,500,000 Tennessee Valley Authority, 6.00%, 3/15/13.................. 3,071,250
------------
TOTAL U.S. GOVERNMENT AGENCY NOTES.......................... 4,971,250
------------
CORPORATE BONDS -- 30.0%
AEROSPACE -- 0.8%
250,000 Raytheon Company, 7.38%, 7/15/25, Callable 7/15/05 @
102.88...................................................... 206,875
250,000 Rockwell International Corporation, 6.63%, 6/1/05........... 239,375
500,000 Rockwell International Corporation, 6.15%, 1/15/08.......... 451,250
250,000 WMX Technologies, Inc., 6.25%, 10/15/00..................... 247,188
------------
1,144,688
------------
AUTOMOTIVE -- 0.7%
1,000,000 General Motors Corporation, 7.10%, 3/15/06.................. 967,500
------------
BANKING -- 2.3%
1,000,000 Bank of America Corporation, 6.63%, 6/15/04................. 959,999
250,000 Bank of America Corporation, 6.88%, 2/15/05................. 239,688
500,000 Bank of America Corporation, 6.38%, 5/15/05................. 466,875
350,000 Bank of America Corporation, 7.19%, 7/30/12................. 320,250
250,000 Bankers Trust Corporation, 6.75%, 10/3/01................... 246,875
250,000 Bankers Trust Corporation, 7.13%, 7/31/02................... 246,250
500,000 Bankers Trust Corporation, 7.50%, 11/15/15.................. 464,375
250,000 Chase Manhattan Corporation, 6.50%, 1/15/09................. 226,563
250,000 US Bank NA, 6.88%, 4/1/06................................... 233,125
------------
3,404,000
------------
</TABLE>
See notes to financial statements.
9
<PAGE> 23
PERFORMANCE FUNDS TRUST
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
BEVERAGES -- 0.8%
$ 500,000 Coca-Cola Enterprises, Inc., 6.63%, 8/1/04.................. $ 481,250
250,000 Coca-Cola Enterprises, Inc., 6.75%, 9/15/23................. 211,563
500,000 Pepsi Bottling Holdings, Inc., 5.38%, 2/17/04............... 465,625
------------
1,158,438
------------
CHEMICALS -- 1.3%
500,000 Air Products & Chemicals, Inc., 7.38%, 5/1/05............... 480,625
250,000 Air Products & Chemicals, Inc., 6.24%, 1/13/10.............. 216,563
500,000 Du Pont (E.I.) de Nemours, 6.50%, 9/1/02.................... 493,750
500,000 Monsanto Company, 6.00%, 7/1/00............................. 500,000
250,000 PPG Industries, Inc., 6.88%, 8/1/05......................... 242,500
------------
1,933,438
------------
CONSUMER GOODS & SERVICES -- 0.5%
500,000 General Mills, Inc., 5.82%, 2/5/03.......................... 476,875
250,000 Kimberly-Clark Corporation, 6.88%, 2/15/14.................. 230,938
------------
707,813
------------
ELECTRONICS -- 0.3%
500,000 Sony Corporation, 6.13%, 3/4/03............................. 484,375
------------
FINANCIAL SERVICES -- 9.0%
500,000 American General Corporation, 6.75%, 6/15/05................ 475,625
250,000 American General Corporation, 7.50%, 7/15/25................ 229,063
1,000,000 Bear Stearns Company Inc., 7.63%, 2/1/05.................... 971,249
250,000 CIT Group, Inc., 6.38%, 10/1/02............................. 241,563
500,000 Citigroup, Inc., 6.13%, 6/15/00............................. 499,875
250,000 Citigroup, Inc., 6.63%, 9/15/05............................. 237,500
1,000,000 Ford Motor Credit Corporation, 7.75%, 2/15/07............... 996,249
500,000 General Motors Acceptance Corporation, 5.63%, 2/15/01....... 493,750
1,000,000 General Motors Acceptance Corporation, 5.35%, 12/7/01....... 970,000
500,000 Household Finance Corporation, 6.70%, 6/15/02............... 488,125
500,000 Household Finance Corporation, 6.88%, 3/1/07................ 462,500
500,000 Household Finance Corporation, 7.30%, 7/30/12............... 456,875
500,000 International Lease Finance Corporation, 6.20%, 11/6/00..... 497,650
500,000 International Lease Finance Corporation, 6.38%, 8/1/02...... 486,875
500,000 ITT Hartford Corporation, 7.30%, 11/1/15.................... 456,250
500,000 Merrill Lynch & Company, 5.75%, 11/4/02..................... 479,375
500,000 Merrill Lynch & Company, 7.00%, 4/27/08..................... 466,875
250,000 Merrill Lynch & Company, 6.25%, 10/15/08.................... 221,563
1,000,000 Merrill Lynch & Company, 7.15%, 7/30/12..................... 910,000
1,000,000 Morgan Stanley Dean Witter, 6.75%, 3/4/03................... 974,999
500,000 Morgan Stanley Dean Witter, 5.63%, 1/20/04.................. 466,250
250,000 Norwest Corporation, 6.38%, 9/15/02......................... 243,125
250,000 Norwest Corporation, 6.50%, 6/1/05.......................... 237,188
</TABLE>
See notes to financial statements.
10
<PAGE> 24
PERFORMANCE FUNDS TRUST
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
FINANCIAL SERVICES (CONTINUED)
$ 500,000 Salomon SB Holdings, Inc., 7.50%, 5/1/02.................... $ 498,125
500,000 Salomon SB Holdings, Inc., 6.63%, 7/1/02.................... 490,000
250,000 Salomon SB Holdings, Inc., 6.13%, 1/15/03................... 240,000
------------
13,190,649
------------
FINANCIAL SERVICES -- DIVERSIFIED -- 4.6%
500,000 CNA Financial Corporation, 6.60%, 12/15/08.................. 415,625
500,000 General Electric Capital Corporation, 6.52%, 10/8/02........ 490,625
500,000 General Electric Capital Corporation, 6.10%, 5/24/04........ 476,875
650,000 General Electric Capital Corporation, 6.90%, 9/15/15........ 609,375
500,000 IBM Credit Corporation, 7.00%, 11/5/07...................... 472,500
500,000 IBM Credit Corporation, 6.75%, 12/24/07..................... 471,875
500,000 John Deere Capital Corporation, 6.00%, 2/15/09.............. 439,375
500,000 National Rural Utilities Cooperative Finance Corporation,
5.95%, 1/15/03.............................................. 481,250
250,000 SBC Communications Capital Corporation, 6.25%, 10/15/02..... 243,438
500,000 SBC Communications Capital Corporation, 5.88%, 6/1/03....... 478,125
250,000 SBC Communications Capital Corporation, 7.20%, 10/15/26..... 215,000
500,000 Texaco Capital, Inc., 5.70%, 12/1/08........................ 435,000
500,000 U.S. Leasing Capital Corporation, 5.95%, 10/15/03........... 474,375
1,000,000 Xerox Capital Europe PLC, 5.88%, 5/15/04.................... 924,999
------------
6,628,437
------------
HEALTH CARE -- 0.9%
250,000 American Home Products Corporation, 7.25%, 3/1/23........... 231,563
500,000 Baxter International, Inc., 6.63%, 2/15/28.................. 405,625
500,000 Eli Lilly & Company, 6.25% , 3/15/03........................ 485,624
250,000 Eli Lilly & Company, 7.13%, 6/1/25.......................... 234,688
------------
1,357,500
------------
INDUSTRIAL GOODS & SERVICES -- 0.3%
500,000 Ingersoll-Rand, 6.26%, 2/15/01.............................. 496,875
------------
RAILROADS -- 1.1%
250,000 Norfolk Southern Railway Corporation, 5.08%, 7/15/01........ 241,875
500,000 Norfolk Southern Railway Corporation, 7.00%, 6/15/05........ 474,375
1,000,000 Union Tank Car Company, 6.79%, 5/1/10....................... 945,000
------------
1,661,250
------------
</TABLE>
See notes to financial statements.
11
<PAGE> 25
PERFORMANCE FUNDS TRUST
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- -------------------- ------
<C> <S> <C>
CORPORATE BONDS (CONTINUED)
RETAIL -- 0.9%
$ 300,000 Albertson's, Inc., 6.38%, 6/1/00(b)......................... $ 300,000
250,000 J.C. Penney & Company, 6.88%, 10/15/15...................... 171,563
500,000 McDonald's Corporation, 6.75%, 2/15/03...................... 490,000
500,000 Sears Roebuck Acceptance Corporation, 6.70%, 11/15/06....... 460,625
------------
1,422,188
------------
TELECOMMUNICATIONS -- 3.9%
500,000 AT&T Corporation, 6.00%, 3/15/09............................ 435,625
250,000 Chesapeake Bell Telephone Virginia, 7.00%, 7/15/25.......... 216,250
500,000 MCI Worldcom, Inc., 6.13%, 8/15/01.......................... 492,500
250,000 Motorola, Inc., 6.50%, 3/1/08............................... 231,875
500,000 New York Telephone Company, 5.88%, 9/01/03.................. 474,375
1,000,000 New York Telephone Company, 6.00%, 9/1/07................... 896,250
250,000 New York Telephone Company, 7.25%, 2/15/24.................. 220,625
250,000 Nortel Networks Corporation, 6.88%, 9/1/23.................. 211,250
500,000 SBC Communications, Inc., 6.50%, 7/1/03..................... 484,375
500,000 SBC Communications, Inc., 7.00%, 8/15/05.................... 484,375
240,000 SBC Communications, Inc., 7.13%, 8/1/07..................... 230,400
500,000 Southern Bell Telephone Company, 6.00%, 10/1/04............. 472,500
250,000 US West Communications, Inc., 6.38%, 10/15/02............... 243,750
500,000 US West Communications, Inc., 6.38%, 7/15/08................ 448,125
250,000 US West Communications, Inc., 7.50%, 6/15/23................ 222,813
------------
5,765,088
------------
UTILITIES -- 2.6%
500,000 Carolina Power & Light Company, 5.88%, 1/15/04.............. 468,124
500,000 Central Power & Light Company, 6.63% 7/1/05................. 466,874
250,000 Consolidated Edison Company of New York, Inc., 6.63%,
7/1/05...................................................... 235,938
250,000 Consolidated Edison Company of New York, Inc., 7.50%,
6/15/23..................................................... 225,000
250,000 Duke Energy Corporation, 6.88%, 8/1/23...................... 212,500
225,000 Georgia Power Company, 6.63%, 4/1/03........................ 219,094
250,000 Northern States Power Company, 7.13%, 7/1/25................ 221,875
250,000 Pacific Gas & Electric Company, 6.25%, 3/1/04............... 237,813
250,000 Pacific Gas & Electric Company, 7.25%, 8/1/26............... 217,500
250,000 Scottish Power PLC, 6.63%, 6/1/07........................... 231,250
250,000 Southern California Edison Company, 6.50%, 6/1/01........... 247,812
250,000 Southern California Edison Company, 6.90%, 10/1/18.......... 220,313
500,000 Virginia Electric & Power Company, 6.75%, 2/1/07............ 464,999
250,000 West Penn Power Company, 6.38%, 6/1/04...................... 237,188
------------
3,906,280
------------
TOTAL CORPORATE BONDS....................................... 44,228,519
------------
</TABLE>
See notes to financial statements.
12
<PAGE> 26
PERFORMANCE FUNDS TRUST
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
------ -------------------- ------
<C> <S> <C>
INVESTMENT COMPANIES -- 2.0%
2,882,328 AIM Treasury Money Market................................... $ 2,882,328
------------
TOTAL INVESTMENT COMPANIES.................................. 2,882,328
------------
TOTAL INVESTMENTS (Cost $153,673,188)(a) -- 101.4%.......... 149,622,220
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.4)%............. (2,003,115)
------------
NET ASSETS -- 100.0%........................................ $147,619,105
============
</TABLE>
---------------
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses, of $92,224,
recognized for income tax purposes in excess of financial reporting. Cost
for federal income tax purposes differs from market value by net unrealized
depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................ $ 681,524
Unrealized depreciation............................ (4,824,716)
-----------
Net unrealized depreciation........................ $(4,143,192)
===========
</TABLE>
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
MTN -- Medium Term Note
NA -- National Association
PLC -- Public Limited Company
See notes to financial statements.
13
<PAGE> 27
PERFORMANCE FUNDS TRUST
THE LARGE CAP EQUITY FUND
Schedule of Portfolio Investments
May 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
------ -------------------- ------
<C> <S> <C>
COMMON STOCKS -- 98.8%
AUTOMOTIVE -- 1.3%
50,000 Ford Motor Company.......................................... $ 2,428,125
32,000 General Motors Corporation.................................. 2,260,000
------------
4,688,125
------------
BANKING -- 4.5%
74,000 Bank of America Corporation................................. 4,111,625
68,000 Bank of New York Company, Inc............................... 3,191,750
38,000 Chase Manhattan Corporation................................. 2,838,125
42,638 FleetBoston Financial Corporation........................... 1,612,249
30,000 SunTrust Banks, Inc......................................... 1,792,500
50,000 Wells Fargo & Company....................................... 2,262,500
------------
15,808,749
------------
BEVERAGES -- 2.7%
31,000 Anheuser Busch Companies, Inc............................... 2,402,500
82,000 Coca-Cola Company........................................... 4,376,750
71,000 PepsiCo, Inc................................................ 2,888,813
------------
9,668,063
------------
BUSINESS EQUIPMENT & SERVICES -- 2.3%
68,000 America Online(b)........................................... 3,604,000
20,000 Avery-Dennison Corporation.................................. 1,225,000
16,000 H & R Block................................................. 494,000
19,000 Pitney Bowes, Inc........................................... 826,500
18,000 Yahoo, Inc.(b).............................................. 2,035,125
------------
8,184,625
------------
CAPITAL GOODS -- 1.7%
27,000 Black & Decker Corporation.................................. 985,500
46,000 Du Pont (E.I.) De Nemours................................... 2,254,000
33,000 Illinois Tool Works, Inc.................................... 1,916,063
30,000 Sherwin-Williams Company.................................... 697,500
------------
5,853,063
------------
COMPUTER SOFTWARE -- 9.0%
257,000 Cisco Systems, Inc.(b)...................................... 14,649,000
166,000 Microsoft Corporation(b).................................... 10,385,375
92,000 Oracle Corporation(b)....................................... 6,612,500
------------
31,646,875
------------
</TABLE>
See notes to financial statements.
14
<PAGE> 28
PERFORMANCE FUNDS TRUST
THE LARGE CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
------ -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
COMPUTERS -- 12.8%
66,000 Compaq Computer Corporation................................. $ 1,732,500
25,000 Computer Associates International, Inc...................... 1,287,500
114,000 Dell Computer Corporation(b)................................ 4,916,250
30,000 EMC Corporation(b).......................................... 3,489,375
44,000 Hewlett Packard Company..................................... 5,285,500
128,000 Intel Corporation........................................... 15,952,000
82,000 International Business Machines Corporation................. 8,799,625
45,000 Sun Microsystems, Inc.(b)................................... 3,448,125
------------
44,910,875
------------
CONSUMER GOODS & SERVICES -- 7.1%
47,000 Colgate-Palmolive Company................................... 2,473,375
62,000 Gillette Company............................................ 2,069,250
20,000 Hershey Foods Corporation................................... 1,037,500
36,000 Kimberly-Clark Corporation.................................. 2,178,000
60,000 Meredith Corporation........................................ 1,826,250
48,000 Procter & Gamble Company.................................... 3,192,000
77,000 The Walt Disney Company..................................... 3,248,438
46,000 Time Warner, Inc............................................ 3,631,125
26,000 Unilever NV -- New York Shares -- ADR....................... 1,321,125
30,380 Viacom, Inc., Class B(b).................................... 1,883,560
25,000 Wrigley (WM.) Jr. Company................................... 2,001,563
------------
24,862,186
------------
ENERGY -- 6.5%
37,000 BP Amoco PLC -- ADR......................................... 2,011,875
31,000 Chevron Corporation......................................... 2,865,563
129,000 Exxon Mobil Corporation..................................... 10,747,312
8,000 Halliburton Company......................................... 408,000
93,000 Royal Dutch Petroleum -- New York Shares -- ADR............. 5,806,687
58,648 Sempra Energy............................................... 1,103,316
------------
22,942,753
------------
FINANCIAL SERVICES -- 6.9%
66,000 American Express Company.................................... 3,551,625
138,000 Citigroup, Inc.............................................. 8,581,875
54,000 Federal Home Loan Mortgage Corporation...................... 2,403,000
56,000 Federal National Mortgage Association....................... 3,367,000
20,000 Merrill Lynch & Company..................................... 1,972,500
60,000 Morgan Stanley Dean Witter & Company........................ 4,316,250
------------
24,192,250
------------
</TABLE>
See notes to financial statements.
15
<PAGE> 29
PERFORMANCE FUNDS TRUST
THE LARGE CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
------ -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
HEALTH CARE -- 12.2%
68,000 Abbott Laboratories......................................... $ 2,766,750
51,000 American Home Products Corporation.......................... 2,747,625
21,000 Baxter International, Inc................................... 1,396,500
82,000 Bristol-Myers Squibb Company................................ 4,515,125
4,200 Edwards Lifesciences Corporation(b)......................... 85,313
47,000 Eli Lilly & Company......................................... 3,577,875
56,000 Johnson & Johnson, Inc...................................... 5,012,000
93,000 Merck & Company, Inc........................................ 6,940,124
147,000 Pfizer, Inc................................................. 6,550,687
80,000 Schering-Plough Corporation................................. 3,870,000
43,000 Warner Lambert Company...................................... 5,251,375
------------
42,713,374
------------
INSURANCE -- 2.4%
58,000 Allstate Corporation........................................ 1,537,000
60,000 American International Group, Inc........................... 6,753,750
------------
8,290,750
------------
MULTI INDUSTRY -- 6.6%
26,000 Alcoa, Inc.................................................. 1,519,375
321,000 General Electric Company.................................... 16,892,625
38,000 Textron, Inc................................................ 2,384,500
52,000 Tyco International, Ltd..................................... 2,447,250
------------
23,243,750
------------
RETAIL -- 6.5%
41,000 Circuit City Stores, Inc.................................... 2,042,313
59,500 Gap, Inc.................................................... 2,086,219
70,500 Home Depot, Inc............................................. 3,441,281
60,000 McDonald's Corporation...................................... 2,148,750
165,000 Wal-Mart Stores, Inc........................................ 9,508,125
130,000 Walgreen Company............................................ 3,688,750
------------
22,915,438
------------
TECHNOLOGY -- 2.0%
44,000 Ceridian Corporation(b)..................................... 1,061,500
50,000 Loral Space & Communications, Ltd.(b)....................... 378,125
29,000 Northrop Grumman Corporation................................ 2,222,125
19,000 Rockwell International Corporation.......................... 779,000
34,000 Texas Instruments, Inc...................................... 2,456,500
------------
6,897,250
------------
</TABLE>
See notes to financial statements.
16
<PAGE> 30
PERFORMANCE FUNDS TRUST
THE LARGE CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
------ -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS -- 11.2%
104,500 AT&T Corporation............................................ $ 3,624,844
58,000 Bell Atlantic Corporation................................... 3,066,750
84,000 BellSouth Corporation....................................... 3,921,750
42,000 GTE Corporation............................................. 2,656,500
95,000 Lucent Technologies, Inc.................................... 5,450,624
27,000 Motorola, Inc............................................... 2,531,250
82,000 Nortel Networks Corporation -- ADR.......................... 4,453,625
22,000 Qualcomm, Inc.(b)........................................... 1,460,250
130,000 SBC Communications, Inc..................................... 5,679,374
53,000 Sprint Corporation.......................................... 3,206,500
91,500 MCI Worldcom, Inc.(b)....................................... 3,442,688
------------
39,494,155
------------
TRANSPORTATION & SHIPPING -- 0.6%
36,000 Burlington Northern Santa Fe Corporation.................... 850,500
34,000 FedEx Corporation(b)........................................ 1,202,750
------------
2,053,250
------------
UTILITIES -- 2.5%
50,000 Consolidated Edison Company of New York, Inc................ 1,631,250
56,000 DTE Energy Company.......................................... 1,935,500
45,000 Entergy Corporation......................................... 1,305,000
52,000 FirstEnergy Corporation..................................... 1,306,500
100,000 Southern Company............................................ 2,593,750
------------
8,772,000
------------
TOTAL COMMON STOCKS......................................... 347,137,531
------------
INVESTMENT COMPANIES -- 1.3%
4,648,589 AIM Treasury Money Market................................... 4,648,589
------------
TOTAL INVESTMENT COMPANIES.................................. 4,648,589
------------
TOTAL INVESTMENTS (Cost $164,025,882)(a) -- 100.1%.......... 351,786,120
LIABILITIES IN EXCESS OF OTHER ASSETS -- 0.1%............... (182,409)
------------
NET ASSETS -- 100.0%....................................... $351,603,711
============
</TABLE>
---------------
(a) The cost for federal income tax and financial reporting purposes is the
same. The cost for federal income tax purposes differs from market value by
net unrealized appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................... $195,755,859
Unrealized depreciation........................... (7,995,621)
------------
Net unrealized appreciation $187,760,238
============
</TABLE>
(b) Non-income producing security for the fiscal year ended May 31, 2000.
ADR -- American Depositary Receipt
NV -- Naamloze Vennootschap (Dutch Corporation)
PLC -- Public Limited Company
See notes to financial statements.
17
<PAGE> 31
PERFORMANCE FUNDS TRUST
THE MID CAP EQUITY FUND
Schedule of Portfolio Investments
May 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
------ -------------------- ------
<C> <S> <C>
COMMON STOCKS -- 95.3%
BUSINESS EQUIPMENT & SERVICES -- 7.6%
7,000 CheckFree Holdings Corporation(b)........................... $ 292,688
22,000 Cintas Corporation.......................................... 968,000
165,000 Comdisco, Inc............................................... 4,228,124
29,000 Concord EFS, Inc.(b)........................................ 703,250
27,000 Convergys Corporation(b).................................... 1,213,313
54,200 Reynolds & Reynolds Company................................. 1,185,625
------------
8,591,000
------------
CAPITAL GOODS -- 3.3%
18,000 Donaldson Company, Inc...................................... 411,750
11,000 Granite Construction, Inc................................... 286,688
16,000 HARSCO Corporation.......................................... 430,000
13,000 Newport News Shipbuilding, Inc.............................. 429,813
10,000 Precision Castparts Corporation............................. 487,500
15,000 Southdown, Inc.............................................. 920,624
19,000 USG Corporation............................................. 716,063
------------
3,682,438
------------
CHEMICALS -- 1.2%
18,000 Albemarle Corporation....................................... 396,000
26,000 Cabot Corporation........................................... 677,625
12,000 Georgia Gulf Corporation.................................... 300,000
------------
1,373,625
------------
COMPUTERS -- 5.9%
35,000 Electronic Arts, Inc.(b).................................... 2,235,625
16,000 Fiserv, Inc.(b)............................................. 748,000
34,000 Informix Corporation(b)..................................... 246,500
120,000 Quantum Corporation Digital Linear Tape & Storage(b)........ 1,245,000
11,000 Rational Software Corporation(b)............................ 806,438
8,000 Symantec Corporation(b)..................................... 526,000
16,500 Symbol Technologies, Inc.................................... 727,031
------------
6,534,594
------------
</TABLE>
See notes to financial statements.
18
<PAGE> 32
PERFORMANCE FUNDS TRUST
THE MID CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
------ -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CONSUMER GOODS & SERVICES -- 9.3%
11,000 Banta Corporation........................................... $ 203,500
30,000 Carlisle Companies, Inc..................................... 1,246,875
7,000 Hispanic Broadcasting Corporation, Class A(b)............... 530,250
29,000 International Game Technology(b)............................ 786,625
87,000 Jones Apparel Group, Inc.(b)................................ 2,332,687
28,000 Kaydon Corporation.......................................... 652,750
56,299 Lancaster Colony Corporation................................ 1,333,583
19,000 Mohawk Industries, Inc.(b).................................. 452,438
12,000 Suiza Foods Corporation(b).................................. 538,500
13,000 Univision Communications, Inc.(b)........................... 1,339,000
2,000 Washington Post Company..................................... 1,001,000
------------
10,417,208
------------
ELECTRONICS -- 6.6%
28,000 Atmel Corporation(b)........................................ 1,069,250
14,000 Cypress Semiconductor Corporation(b)........................ 588,875
22,000 Jabil Circuit, Inc.(b)...................................... 803,000
12,000 Microchip Technology, Inc.(b)............................... 681,188
9,000 QLogic Corporation(b)....................................... 441,563
18,000 Sanmina Corporation(b)...................................... 1,145,249
18,000 SCI Systems, Inc.(b)........................................ 810,000
11,000 Vishay Intertechnology, Inc.(b)............................. 778,250
22,000 Vitesse Semiconductor(b).................................... 1,113,750
------------
7,431,125
------------
ENERGY -- 10.5%
26,000 BJ Services Company(b)...................................... 1,862,250
2,000 Black Hills Corporation..................................... 47,875
8,000 Calpine Corporation(b)...................................... 847,500
18,000 Dynergy, Inc., Class A...................................... 1,388,250
18,000 ENSCO International, Inc.................................... 628,875
52,000 Keyspan Corporation......................................... 1,586,000
17,000 Nabors Industries, Inc.(b).................................. 731,000
17,000 Noble Drilling Corporation(b)............................... 737,375
40,000 Smith International, Inc.(b)................................ 3,162,499
30,000 Valero Energy Corporation................................... 877,500
------------
11,869,124
------------
</TABLE>
See notes to financial statements.
19
<PAGE> 33
PERFORMANCE FUNDS TRUST
THE MID CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
------ -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
FINANCIAL SERVICES -- 8.9%
32,000 City National Corporation................................... $ 1,248,000
43,000 Dime Bancorp, Inc........................................... 784,750
37,000 E*Trade Group, Inc.(b)...................................... 575,813
77,000 Edwards (A.G.), Inc......................................... 2,690,187
117,450 First Security Corporation.................................. 1,827,815
22,000 Legg Mason, Inc............................................. 970,750
14,000 Marshall & Ilsley Corporation............................... 679,000
20,000 Robert Half International, Inc.(b).......................... 1,187,500
------------
9,963,815
------------
HEALTH CARE -- 12.4%
30,000 Beckman Coulter, Inc........................................ 1,803,750
10,000 Forest Laboratories, Inc., Class A(b)....................... 885,000
60,000 Ivax Corporation(b)......................................... 2,257,500
9,000 Medimmune, Inc.(b).......................................... 1,398,375
12,000 Millennium Pharmaceuticals(b)............................... 1,003,500
70,000 Mylan Laboratories, Inc..................................... 1,876,875
8,000 Sepracor, Inc.(b)........................................... 765,000
108,000 Stryker Corporation......................................... 4,083,749
------------
14,073,749
------------
INDUSTRIAL GOODS & SERVICES -- 1.8%
9,000 Dexter Corporation.......................................... 389,250
15,000 Fastenal Company............................................ 946,875
8,000 Waters Corporation(b)....................................... 756,000
------------
2,092,125
------------
INSURANCE -- 0.8%
18,000 The PMI Group, Inc.......................................... 913,500
------------
RESEARCH & DEVELOPMENT -- 2.4%
26,000 Chiron Corporation(b)....................................... 986,375
30,000 Genzyme Corporation, General Division(b).................... 1,704,375
------------
2,690,750
------------
RETAIL -- 5.6%
28,000 BJ's Wholesale Club, Inc.(b)................................ 868,000
19,000 Claire's Stores, Inc........................................ 384,750
9,000 Dollar Tree Stores, Inc.(b)................................. 535,500
15,000 Hannaford Brothers Company.................................. 1,083,750
28,000 Outback Steakhouse, Inc.(b)................................. 848,750
9,000 Payless Shoesource, Inc.(b)................................. 454,500
14,000 Starbucks Corporation(b).................................... 476,000
27,000 Tiffany & Company........................................... 1,645,313
------------
6,296,563
------------
</TABLE>
See notes to financial statements.
20
<PAGE> 34
PERFORMANCE FUNDS TRUST
THE MID CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
------ -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
TECHNOLOGY -- 9.0%
130,000 American Power Conversion Corporation(b).................... $ 4,606,874
76,500 Cadence Design Systems, Inc.(b)............................. 1,224,000
24,000 Intuit, Inc.(b)............................................. 870,000
42,000 Maxim Integrated Products, Inc.(b).......................... 2,664,375
15,000 Novellus Systems, Inc.(b)................................... 722,813
------------
10,088,062
------------
TELECOMMUNICATIONS -- 1.7%
6,000 Adtran, Inc.(b)............................................. 369,750
27,000 Broadwing, Inc.............................................. 642,938
8,000 Telephone & Data Systems, Inc............................... 848,000
------------
1,860,688
------------
UTILITIES -- 8.3%
43,000 Allegheny Energy, Inc....................................... 1,330,313
38,700 Cleco Corporation........................................... 1,325,475
94,000 Energy East Corporation..................................... 2,009,249
13,000 Hawaiian Electric Industries, Inc........................... 459,063
28,000 Minnesota Power, Inc........................................ 516,250
42,000 Montana Power Company....................................... 1,588,125
16,000 Public Service Company of New Mexico........................ 267,000
33,000 Puget Sound Energy, Inc..................................... 761,063
40,000 SCANA Corporation........................................... 1,035,000
------------
9,291,538
------------
TOTAL COMMON STOCKS......................................... 107,169,904
------------
INVESTMENT COMPANIES -- 4.7%
5,317,468 AIM Treasury Money Market................................... 5,317,468
------------
TOTAL INVESTMENT COMPANIES.................................. 5,317,468
------------
TOTAL INVESTMENTS (Cost $84,508,450)(a) -- 100.0%........... 112,487,372
LIABILITIES IN EXCESS OF OTHER ASSETS -- 0.0%............... (23,403)
------------
NET ASSETS -- 100.0%........................................ $112,463,969
============
</TABLE>
---------------
(a) The cost for federal income tax and financial reporting purposes is the
same. The cost for federal income tax purposes differs from market value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................ $33,607,888
Unrealized depreciation............................ (5,628,966)
-----------
Net unrealized appreciation........................ $27,978,922
===========
</TABLE>
(b) Non-income producing securities for the fiscal year ended May 31, 2000.
See notes to financial statements.
21
<PAGE> 35
PERFORMANCE FUNDS TRUST
THE SMALL CAP EQUITY FUND
Schedule of Portfolio Investments
May 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
------ -------------------- ------
<C> <S> <C>
COMMON STOCKS -- 91.7%
BUSINESS EQUIPMENT & SERVICES -- 11.7%
5,000 ADVO, Inc.(b)............................................... $ 160,625
15,000 American Management Systems(b).............................. 561,563
4,000 Catalina Marketing Corporation(b)........................... 386,250
8,000 Choicepoint, Inc.(b)........................................ 323,500
4,000 HNC Software, Inc.(b)....................................... 164,000
10,000 Hyperion Solutions Corporation(b)........................... 313,750
10,000 Insight Enterprises, Inc.(b)................................ 453,750
20,000 Interim Services, Inc.(b)................................... 402,500
8,000 Maximus, Inc.(b)............................................ 166,000
5,000 Medquist, Inc.(b)........................................... 206,875
10,000 National Computer Systems, Inc.............................. 454,375
10,000 RSA Security, Inc.(b)....................................... 575,624
5,000 Tetra Technology, Inc.(b)................................... 110,000
7,000 True North Communications, Inc.............................. 305,813
10,000 United Stationers, Inc.(b).................................. 320,000
15,000 Zebra Technologies, Class A(b).............................. 719,999
-----------
5,624,624
-----------
CAPITAL GOODS -- 7.5%
7,000 C&D Technologies, Inc....................................... 507,500
4,000 Coherent, Inc.(b)........................................... 226,000
3,000 Electro Scientific Industries, Inc.(b)...................... 141,750
7,000 Florida Rock Industries..................................... 276,938
10,000 Graco, Inc.................................................. 320,625
3,000 Helix Technology Corporation................................ 102,188
25,000 Manitowoc Company, Inc...................................... 817,187
10,000 Methode Electronics......................................... 358,750
10,000 Roper Industries, Inc....................................... 352,500
7,000 Technitrol, Inc............................................. 483,000
-----------
3,586,438
-----------
CONSUMER DURABLES -- 2.5%
10,000 A.O. Smith Corporation...................................... 210,000
7,000 Copart, Inc.(b)............................................. 124,250
10,000 Gentex Corporation(b)....................................... 310,000
6,000 Harman International Industries, Inc........................ 347,250
5,000 Polaris Industries, Inc..................................... 150,313
5,000 Tower Automotive, Inc.(b)................................... 69,375
-----------
1,211,188
-----------
CONSUMER NON-DURABLE -- 6.2%
15,000 Canandaigua Brands, Inc., Class A(b)........................ 785,625
10,000 Fossil, Inc.(b)............................................. 201,250
</TABLE>
See notes to financial statements.
22
<PAGE> 36
PERFORMANCE FUNDS TRUST
THE SMALL CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
------ -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
CONSUMER NON-DURABLE (CONTINUED)
9,000 NBTY, Inc.(b)............................................... $ 143,438
10,000 Pacific Sunwear of California, Inc.(b)...................... 160,625
20,000 Timberland Company, Class A(b).............................. 1,477,500
20,000 Wolverine World Wide, Inc................................... 225,000
-----------
2,993,438
-----------
CONSUMER SERVICES -- 0.1%
8,000 Midway Games, Inc.(b)....................................... 52,500
-----------
ENERGY -- 4.0%
2,000 Atwood Oceanics, Inc.(b).................................... 109,375
8,000 HS Resources, Inc.(b)....................................... 268,500
10,000 Newfield Exploration Company(b)............................. 418,750
28,000 Oceaneering International, Inc.(b).......................... 546,000
3,000 St. Mary Land & Exploration Company......................... 108,000
20,000 Vintage Petroleum, Inc...................................... 475,000
-----------
1,925,625
-----------
FINANCIAL SERVICES -- 7.8%
10,000 Americredit Corporation(b).................................. 184,375
14,000 Arthur J. Gallagher & Company............................... 541,625
10,000 Cullen/Frost Bankers, Inc................................... 265,000
6,000 Dain Rauscher Corporation................................... 357,750
7,000 Eaton Vance Corporation..................................... 304,500
10,000 Radian Group, Inc........................................... 550,000
30,000 Silicon Valley Bancshares(b)................................ 984,374
4,000 U.S. Trust Corporation...................................... 568,250
-----------
3,755,874
-----------
HEALTH CARE -- 12.8%
6,000 Barr Laboratories, Inc.(b).................................. 324,750
15,000 Bindley Western Industries, Inc............................. 285,938
4,000 Cephalon, Inc.(b)........................................... 207,000
2,500 COR Therapeutics, Inc.(b)................................... 158,438
5,000 Datascope Corporation....................................... 188,125
5,000 Enzo Biochem, Inc.(b)....................................... 176,250
3,000 Idec Pharmaceuticals Corporation(b)......................... 191,438
1,500 Incyte Genomics, Inc.(b).................................... 79,125
10,000 Jones Pharma, Inc........................................... 364,374
4,000 Medicis Pharmaceutical Corporation, Class A(b).............. 187,000
4,000 Mentor Corporation.......................................... 96,000
60,000 Orthodontic Centers Of America, Inc.(b)..................... 1,376,249
25,000 Patterson Dental Company(b)................................. 1,273,437
4,000 Priority Healthcare Corporation, Series B(b)................ 204,000
</TABLE>
See notes to financial statements.
23
<PAGE> 37
PERFORMANCE FUNDS TRUST
THE SMALL CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
------ -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
HEALTH CARE (CONTINUED)
2,500 Protein Design Labs, Inc.(b)................................ $ 266,563
6,000 Regeneron Pharmaceutical, Inc.(b)........................... 122,250
6,000 Resmed, Inc.(b)............................................. 144,000
5,000 Universal Health Services, Inc.(b).......................... 265,625
3,000 Vertex Pharmaceuticals, Inc.(b)............................. 221,625
-----------
6,132,187
-----------
RAW MATERIALS -- 3.6%
12,000 Cambrex Corporation......................................... 505,500
6,000 Macdermid, Inc.............................................. 123,000
25,000 Mueller Industries, Inc.(b)................................. 734,374
5,000 Stillwater Mining Company(b)................................ 140,313
3,000 Techne Corporation(b)....................................... 239,813
-----------
1,743,000
-----------
RESTAURANTS -- 2.3%
10,000 Applebee's International, Inc............................... 320,625
10,000 Jack In the Box, Inc.(b).................................... 248,125
20,000 Ruby Tuesday, Inc........................................... 197,500
4,000 Sonic Corporation(b)........................................ 110,750
6,000 The Cheesecake Factory, Inc.(b)............................. 238,875
-----------
1,115,875
-----------
RETAIL -- 2.6%
5,000 99 Cents Only Stores(b)..................................... 179,688
10,000 Cato Corporation............................................ 123,750
10,000 Men's Wearhouse(b).......................................... 199,375
4,000 Michael Stores, Inc.(b)..................................... 171,250
15,000 Zale Corporation(b)......................................... 570,000
-----------
1,244,063
-----------
SHELTER -- 2.0%
25,000 D. R. Horton, Inc........................................... 326,563
5,000 Ethan Allen Interiors, Inc.................................. 116,250
10,000 La-Z-Boy, Inc............................................... 160,625
18,700 MDC Holdings, Inc........................................... 361,143
-----------
964,581
-----------
TECHNOLOGY -- 22.0%
6,000 Actel Corporation(b)........................................ 174,750
5,000 Adaptive Broadband Corporation(b)........................... 132,500
6,000 Alpha Industries, Inc.(b)................................... 276,375
7,000 Black Box Corporation(b).................................... 549,500
10,000 Burr-Brown Corporation(b)................................... 569,375
</TABLE>
See notes to financial statements.
24
<PAGE> 38
PERFORMANCE FUNDS TRUST
THE SMALL CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
------ -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
TECHNOLOGY (CONTINUED)
15,000 C-Cube Microsystems, Inc.(b)................................ $ 257,813
10,000 Cable Design Technologies Corporation(b).................... 276,875
5,000 Cognex Corporation(b)....................................... 270,313
5,000 Cohu, Inc................................................... 175,625
10,000 Commscope, Inc.(b).......................................... 386,250
7,000 CTS Corporation............................................. 386,313
20,000 Dallas Semi-Conductor Corporation........................... 799,999
15,000 Dycom, Inc.(b).............................................. 726,562
7,000 International Rectifier Corporation(b)...................... 288,750
5,000 Kemet Corporation(b)........................................ 335,938
9,800 Kronos, Inc.(b)............................................. 291,550
2,000 Kulicke & Soffa Industries(b)............................... 100,625
10,000 Lattice Semiconductor Corporation(b)........................ 594,374
4,000 Macromedia, Inc.(b)......................................... 320,500
10,000 Mercury Interactive Corporation(b).......................... 847,499
5,000 Micrel, Inc.(b)............................................. 318,750
7,000 Micros Systems, Inc.(b)..................................... 221,375
10,000 National Instruments Corporation(b)......................... 363,750
8,000 P-COM, Inc.(b).............................................. 58,750
5,000 Plantronics, Inc.(b)........................................ 426,875
5,000 Plexus Corporation(b)....................................... 417,500
3,000 Powerwave Technologies, Inc.(b)............................. 162,563
2,000 Project Software & Development, Inc.(b)..................... 43,500
2,000 Proxim, Inc.(b)............................................. 174,625
5,000 Remedy Corporation(b)....................................... 207,500
7,000 Silicon Valley Group, Inc.(b)............................... 186,375
10,000 Talk.com, Inc.(b)........................................... 69,063
4,000 Verity, Inc.(b)............................................. 135,000
-----------
10,547,112
-----------
TELECOMMUNICATIONS -- 2.2%
10,000 Aspect Communications, Inc.(b).............................. 401,250
8,141 Harmonic Lightwaves, Inc.(b)................................ 363,779
4,000 Intervoice-Brite, Inc.(b)................................... 57,000
4,000 Nortel Networks Corporation -- ADR.......................... 217,250
-----------
1,039,279
-----------
TRANSPORTATION & SHIPPING -- 2.0%
20,000 Arkansas Best Corporation(b)................................ 220,000
5,000 Expeditors International of Washington, Inc................. 202,813
5,000 Landstar System, Inc.(b).................................... 266,250
10,000 U.S. Freightways Corporation................................ 274,375
-----------
963,438
-----------
</TABLE>
See notes to financial statements.
25
<PAGE> 39
PERFORMANCE FUNDS TRUST
THE SMALL CAP EQUITY FUND
Schedule of Portfolio Investments (continued)
May 31, 2000
<TABLE>
<CAPTION>
MARKET
SHARES SECURITY DESCRIPTION VALUE
------ -------------------- ------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
UTILITIES -- 2.4%
11,000 CH Energy Group, Inc........................................ $ 354,063
20,000 Energen Corporation......................................... 442,499
1,111 Energy East Corporation..................................... 23,748
11,500 Piedmont Natural Gas Company, Inc........................... 342,125
-----------
1,162,435
-----------
TOTAL COMMON STOCKS......................................... 44,061,657
-----------
INVESTMENT COMPANIES -- 8.0%
2,027,160 AIM Treasury Money Market................................... 2,027,160
1,800,000 Dreyfus New York Money Market............................... 1,800,000
-----------
TOTAL INVESTMENT COMPANIES.................................. 3,827,160
-----------
TOTAL INVESTMENTS (Cost $42,198,151)(a) -- 99.7% 47,888,817
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.3%............... 161,903
-----------
NET ASSETS -- 100.0%........................................ $48,050,720
===========
</TABLE>
---------------
(a) The cost for federal income tax and financial reporting purposes is the
same. The cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................ $10,039,223
Unrealized depreciation............................ (4,348,557)
-----------
Net unrealized appreciation........................ $ 5,690,666
===========
</TABLE>
(b) Non-income producing security for the fiscal year ended May 31, 2000.
ADR -- American Depositary Receipt
See notes to financial statements.
26
<PAGE> 40
PERFORMANCE FUNDS TRUST
Statements of Assets and Liabilities
May 31, 2000
<TABLE>
<CAPTION>
THE SHORT TERM THE INTERMEDIATE
THE MONEY GOVERNMENT TERM GOVERNMENT
MARKET FUND INCOME FUND INCOME FUND
------------ -------------- ----------------
<S> <C> <C> <C>
ASSETS:
Investments, at market value (cost $526,230,432,
$93,296,034 and $153,673,188, respectively)............. $526,230,432 $91,758,124 $149,622,220
Interest and dividends receivable......................... 1,842,070 705,795 2,094,365
Receivable for capital shares issued...................... -- -- 502
Prepaid expenses.......................................... 19,487 6,465 8,595
------------ ----------- ------------
TOTAL ASSETS.......................................... 528,091,989 92,470,384 151,725,682
------------ ----------- ------------
LIABILITIES:
Dividends payable......................................... 2,628,192 422,037 756,732
Payable for investments purchased......................... 9,997,457 -- 3,249,245
Accrued expenses and other liabilities:
Advisory................................................ 90,078 31,299 55,640
Administration.......................................... 6,095 2,256 3,621
Distribution............................................ 17,887 875 1,274
Audit................................................... 7,973 7,434 7,499
Transfer agent.......................................... 31,249 12,938 15,613
Other liabilities....................................... 63,403 10,898 16,953
------------ ----------- ------------
TOTAL LIABILITIES..................................... 12,842,334 487,737 4,106,577
------------ ----------- ------------
NET ASSETS................................................ $515,249,655 $91,982,647 $147,619,105
============ =========== ============
COMPOSITION OF NET ASSETS:
Capital................................................... $515,251,393 $96,397,043 $161,220,932
Accumulated net investment income/(distributions in
excess)................................................. 15,546 (21,156) (47,506)
Accumulated net realized loss from investment
transactions............................................ (17,284) (2,855,330) (9,503,353)
Net unrealized depreciation from investment
transactions............................................ -- (1,537,910) (4,050,968)
------------ ----------- ------------
NET ASSETS................................................ $515,249,655 $91,982,647 $147,619,105
============ =========== ============
INSTITUTIONAL CLASS SHARES:
Net Assets................................................ $432,089,725 $87,516,570 $141,403,777
Shares outstanding (par value $0.001, unlimited number of
authorized shares)...................................... 432,089,302 9,056,096 14,762,098
============ =========== ============
Net Asset Value, Offering Price and Redemption Price per
share................................................... $ 1.00 $ 9.66 $ 9.58
============ =========== ============
CLASS A SHARES:
Net Assets................................................ $ 82,851,985 $ 4,466,077 $ 6,138,984
Shares outstanding (par value $0.001, unlimited number of
authorized shares)...................................... 82,854,145 462,290 641,333
============ =========== ============
Net Asset Value and Redemption Price per share............ $ 1.00 $ 9.66 $ 9.57
============ =========== ============
Maximum sales charge...................................... N/A 3.00% 5.25%
============ =========== ============
Maximum Offering Price per share (Net Asset
Value/(100%-maximum sales charge)....................... $ 1.00 $ 9.96 $ 10.10
============ =========== ============
CLASS B SHARES:
Net Assets................................................ $ 307,945 $ 76,344
Shares outstanding (par value $0.001, unlimited number of
authorized shares)...................................... 307,946 7,974
============ ============
Net Asset Value, Offering Price and Redemption Price per
share*.................................................. $ 1.00 $ 9.57
============ ============
</TABLE>
---------------
* Redemption price varies based on length of time shares are held.
See notes to financial statements.
27
<PAGE> 41
PERFORMANCE FUNDS TRUST
Statements of Assets and Liabilities (continued)
May 31, 2000
<TABLE>
<CAPTION>
THE LARGE CAP THE MID CAP THE SMALL CAP
EQUITY FUND EQUITY FUND EQUITY FUND
------------- ------------ -------------
<S> <C> <C> <C>
ASSETS:
Investments, at market value (cost $164,025,882,
$84,508,450 and $42,198,151, respectively).............. $351,786,120 $112,487,372 $ 47,888,817
Interest and dividends receivable......................... 517,899 104,199 18,907
Receivable for capital shares issued...................... 18,596 480 --
Receivable for investments sold........................... -- -- 194,406
Deferred organization costs............................... -- -- 4,408
Prepaid expenses.......................................... 16,432 9,041 6,470
------------ ------------ ------------
TOTAL ASSETS.......................................... 352,339,047 112,601,092 48,113,008
------------ ------------ ------------
LIABILITIES:
Dividends payable......................................... 206,571 -- --
Payable for capital shares redeemed....................... 242,099 13,676 --
Accrued expenses and other liabilities:
Advisory................................................ 178,176 70,862 33,217
Administration.......................................... 8,465 2,654 1,139
Distribution............................................ 17,237 3,724 837
Audit................................................... 7,739 7,457 7,379
Transfer agent.......................................... 33,869 23,017 13,816
Other liabilities....................................... 41,180 15,733 5,900
------------ ------------ ------------
TOTAL LIABILITIES..................................... 735,336 137,123 62,288
------------ ------------ ------------
NET ASSETS................................................ $351,603,711 $112,463,969 $ 48,050,720
============ ============ ============
COMPOSITION OF NET ASSETS:
Capital................................................... 143,256,069 70,338,604 57,175,211
Accumulated net investment income......................... 50,843 -- --
Accumulated net realized gain/(loss) from investment
transactions............................................ 20,536,561 14,146,443 (14,815,157)
Net unrealized appreciation from investment
transactions............................................ 187,760,238 27,978,922 5,690,666
------------ ------------ ------------
NET ASSETS................................................ $351,603,711 $112,463,969 $ 48,050,720
============ ============ ============
INSTITUTIONAL CLASS SHARES:
Net Assets................................................ $290,637,201 $ 95,306,858 $ 44,030,947
Shares outstanding (par value $0.001, unlimited number of
authorized shares)...................................... 10,081,149 5,565,155 5,294,669
============ ============ ============
Net Asset Value, Offering Price and Redemption Price per
share................................................... $ 28.83 $ 17.13 $ 8.32
============ ============ ============
CLASS A SHARES:
Net Assets................................................ $ 53,777,415 $ 16,708,468 $ 3,966,731
Shares outstanding (par value $0.001, unlimited number of
authorized shares)...................................... 1,868,382 979,021 480,452
============ ============ ============
Net Asset Value and Redemption Price per share............ $ 28.78 $ 17.07 $ 8.26
============ ============ ============
Maximum sales charge...................................... 5.25% 5.25% 5.25%
============ ============ ============
Maximum Offering Price per share (Net Asset
Value/(100%-maximum sales charge))...................... $ 30.37 $ 18.02 $ 8.72
============ ============ ============
CLASS B SHARES:
Net Assets................................................ $ 7,189,095 $ 448,643 $ 53,042
Shares outstanding (par value $0.001, unlimited number of
authorized shares)...................................... 251,778 26,672 6,497
============ ============ ============
Net Asset Value, Offering Price and Redemption Price per
share*.................................................. $ 28.55 $ 16.82 $ 8.16
============ ============ ============
</TABLE>
---------------
* Redemption Price varies based on length of time shares are held.
See notes to financial statements.
28
<PAGE> 42
PERFORMANCE FUNDS TRUST
Statements of Operations
For the year ended May 31, 2000
<TABLE>
<CAPTION>
THE SHORT TERM THE INTERMEDIATE
THE MONEY GOVERNMENT TERM GOVERNMENT
MARKET FUND INCOME FUND INCOME FUND
----------- -------------- ----------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income................................... $28,551,582 $ 6,487,429 $ 9,893,961
Dividend income................................... 15,859 46,105 59,657
----------- ----------- -----------
TOTAL INVESTMENT INCOME........................... 28,567,441 6,533,534 9,953,618
----------- ----------- -----------
EXPENSES:
Advisory.......................................... 1,527,082 443,117 785,403
Administration.................................... 763,550 166,170 235,623
Distribution:
Class A Shares................................. 229,282 12,794 17,223
Class B Shares................................. 5,818 -- 899
Accounting........................................ 36,259 40,196 57,174
Custodian......................................... 203,612 44,312 62,833
Transfer agency................................... 90,178 41,482 63,129
Other expenses.................................... 137,712 42,683 53,138
----------- ----------- -----------
Total expenses before voluntary/contractual
waivers...................................... 2,993,493 790,754 1,275,422
----------- ----------- -----------
Expenses voluntarily/contractually waived...... (956,719) -- (78,540)
----------- ----------- -----------
NET EXPENSES................................... 2,036,774 790,754 1,196,882
----------- ----------- -----------
NET INVESTMENT INCOME............................. 26,530,667 5,742,780 8,756,736
----------- ----------- -----------
NET REALIZED/UNREALIZED LOSSES FROM INVESTMENTS:
Net realized losses from investment
transactions................................... (683) (795,728) (4,999,827)
Change in unrealized appreciation/(depreciation)
from investments............................... -- (671,355) (2,779,369)
----------- ----------- -----------
Net realized/unrealized losses from investments... (683) (1,467,083) (7,779,196)
----------- ----------- -----------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS...... $26,529,984 $ 4,275,697 $ 977,540
=========== =========== ===========
</TABLE>
See notes to financial statements.
29
<PAGE> 43
PERFORMANCE FUNDS TRUST
Statements of Operations (continued)
For the year ended May 31, 2000
<TABLE>
<CAPTION>
THE LARGE CAP THE MID CAP THE SMALL CAP
EQUITY FUND EQUITY FUND EQUITY FUND
------------- ------------ -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income................................... $ 51,596 $ 15,361 $ 1,249
Dividend income................................... 4,629,407 1,297,406 464,703
----------- ------------ -----------
TOTAL INVESTMENT INCOME........................... 4,681,003 1,312,767 465,952
----------- ------------ -----------
EXPENSES:
Advisory.......................................... 2,161,103 913,111 569,533
Administration.................................... 540,281 182,624 85,431
Distribution:
Class A Shares................................. 147,225 47,464 12,034
Class B Shares................................. 55,018 2,691 605
Accounting........................................ 41,322 43,703 47,708
Custodian......................................... 144,074 48,700 22,781
Transfer agency................................... 150,574 93,215 51,446
Other expenses.................................... 110,040 63,824 38,846
----------- ------------ -----------
Total expenses before voluntary/contractual
waivers...................................... 3,349,637 1,395,332 828,384
Expenses voluntarily/contractually waived...... -- -- (93,176)
----------- ------------ -----------
NET EXPENSES................................... 3,349,637 1,395,332 735,208
----------- ------------ -----------
NET INVESTMENT INCOME/(LOSS)...................... 1,331,366 (82,565) (269,256)
----------- ------------ -----------
NET REALIZED/UNREALIZED GAINS/(LOSSES) FROM
INVESTMENTS:
Net realized gains/(losses) from investment
transactions................................... 21,594,267 24,606,485 (9,328,002)
Change in unrealized appreciation/(depreciation)
from investments............................... (3,788,229) (13,531,448) 11,191,861
----------- ------------ -----------
Net realized/unrealized gain from investments..... 17,806,038 11,075,037 1,863,859
----------- ------------ -----------
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS...... $19,137,404 $ 10,992,472 $ 1,594,603
=========== ============ ===========
</TABLE>
See notes to financial statements.
30
<PAGE> 44
PERFORMANCE FUNDS TRUST
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
THE SHORT TERM THE INTERMEDIATE TERM
THE MONEY MARKET FUND GOVERNMENT INCOME FUND GOVERNMENT INCOME FUND
--------------------------- --------------------------- ---------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
--------------------------- --------------------------- ---------------------------
MAY 31, MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
2000 1999 2000 1999 2000 1999
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income.................. $ 26,530,667 $ 23,539,572 $ 5,742,780 $ 6,201,064 $ 8,756,736 $ 6,957,424
Net realized gains/(losses) from
investment transactions.............. (683) 368 (795,728) 622,218 (4,999,827) (8,702)
Change in unrealized
appreciation/(depreciation) from
investments............................ -- -- (671,355) (1,353,286) (2,779,369) (5,136,917)
------------ ------------ ------------ ------------ ------------ ------------
CHANGE IN NET ASSETS RESULTING FROM
OPERATIONS............................. 26,529,984 23,539,940 4,275,697 5,469,996 977,540 1,811,805
------------ ------------ ------------ ------------ ------------ ------------
DIVIDENDS:
From net investment income:
Institutional Class Shares........... (21,932,862) (19,023,056) (5,489,935) (5,931,094) (8,386,458) (6,601,612)
Class A Shares*...................... (4,572,163) (4,515,204) (252,845) (269,970) (366,173) (354,297)
Class B Shares**..................... (25,657) (1,312) -- -- (4,105) (1,497)
------------ ------------ ------------ ------------ ------------ ------------
CHANGE IN NET ASSETS FROM SHAREHOLDER
DIVIDENDS.............................. (26,530,682) (23,539,572) (5,742,780) (6,201,064) (8,756,736) (6,957,406)
------------ ------------ ------------ ------------ ------------ ------------
CHANGE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS........................... 38,527,269 53,904,549 (25,291,153) (3,911,638) (7,831,581) 45,666,999
------------ ------------ ------------ ------------ ------------ ------------
CHANGE IN NET ASSETS.................... 38,526,571 53,904,917 (26,758,236) (4,642,706) (15,610,777) 40,521,398
NET ASSETS:
Beginning of period.................... 476,723,084 422,818,167 118,740,883 123,383,589 163,229,882 122,708,484
------------ ------------ ------------ ------------ ------------ ------------
End of period.......................... $515,249,655 $476,723,084 $ 91,982,647 $118,740,883 $147,619,105 $163,229,882
============ ============ ============ ============ ============ ============
</TABLE>
---------------
* On September 30, 1998, the portfolio designated the Consumer Service Class as
Class A Shares.
** Class B Shares commenced operations on October 2, 1998.
See notes to financial statements.
31
<PAGE> 45
PERFORMANCE FUNDS TRUST
Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
THE LARGE CAP EQUITY FUND THE MID CAP EQUITY FUND THE SMALL CAP EQUITY FUND
--------------------------- --------------------------- ---------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
--------------------------- --------------------------- ---------------------------
MAY 31, MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
2000 1999 2000 1999 2000 1999
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income/(loss)........... $ 1,331,366 $ 1,731,703 $ (82,565) $ 494,152 $ (269,256) $ (232,031)
Net realized gains/(losses) from
investment transactions.............. 21,594,267 8,542,654 24,606,485 13,880,187 (9,328,002) (5,487,155)
Change in unrealized
appreciation/(depreciation) from
investments.......................... (3,788,229) 41,686,819 (13,531,448) (20,334,170) 11,191,861 (6,102,658)
------------ ------------ ------------ ------------ ------------ ------------
CHANGE IN NET ASSETS RESULTING FROM
OPERATIONS............................. 19,137,404 51,961,176 10,992,472 (5,959,831) 1,594,603 (11,821,844)
------------ ------------ ------------ ------------ ------------ ------------
DIVIDENDS:
From net investment income:
Institutional Class Shares........... (1,128,430) (1,525,133) -- (463,652) -- --
Class A Shares*...................... (131,647) (194,139) -- (30,473) -- --
Class B Shares**..................... -- (2,462) -- (27) -- --
In excess of net investment income
Institutional Class Shares........... -- -- -- (3,514) -- --
Class A Shares*...................... -- -- -- (231) -- --
Net realized gains on investments
Institutional Class Shares........... (7,872,229) (10,852,696) (16,578,990) (9,135,108) -- (557,755)
Class A Shares*...................... (1,580,158) (2,102,671) (3,033,802) (1,263,784) -- (47,284)
Class B Shares**..................... (138,492) (15,605) (41,671) (5,866) -- (361)
------------ ------------ ------------ ------------ ------------ ------------
CHANGE IN NET ASSETS FROM SHAREHOLDER
DIVIDENDS.............................. (10,850,956) (14,692,706) (19,654,463) (10,902,655) -- (605,400)
------------ ------------ ------------ ------------ ------------ ------------
CHANGE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS........................... (7,506,909) 12,496,027 (5,751,460) (43,674,070) (13,384,358) 7,113,475
------------ ------------ ------------ ------------ ------------ ------------
CHANGE IN NET ASSETS.................... 779,539 49,764,497 (14,413,451) (60,536,556) (11,789,755) (5,313,769)
NET ASSETS:
Beginning of period.................... 350,824,172 301,059,675 126,877,420 187,413,976 59,840,475 65,154,244
------------ ------------ ------------ ------------ ------------ ------------
End of period.......................... $351,603,711 $350,824,172 $112,463,969 $126,877,420 $ 48,050,720 $ 59,840,475
============ ============ ============ ============ ============ ============
</TABLE>
---------------
* On September 30, 1998, the portfolio designated the Consumer Service Class as
Class A Shares.
** Class B Shares commenced operations on October 2, 1998.
See notes to financial statements.
32
<PAGE> 46
PERFORMANCE FUNDS TRUST
Notes to Financial Statements -- May 31, 2000
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 six separate portfolios: 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, collectively (the "Funds"), or individually
(the "Fund"). Each Fund has three classes of shares, the Institutional
Class Shares, Class A Shares (formerly, Consumer Service Class), and Class
B Shares, except for The Short Term Government Income Fund which offers the
Institutional Class Shares and Class A Shares only. Each class of shares in
the Funds has identical rights and privileges except with respect to fees
paid under distribution plans, voting rights on matters affecting a single
class of shares, and the exchange privilege of each class of shares.
2. SIGNIFICANT ACCOUNTING POLICIES:
The preparation of financial statements in conformity with generally
accepted accounting principles in the United States of America 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 Funds in the preparation
of their financial statements:
SECURITY VALUATION:
Bonds and other fixed income securities (other than short-term
obligations but including listed issues) in the Funds are valued on the
basis of valuations furnished by a pricing service, the use of which has
been approved by the Funds' Board of Trustees. In making such
valuations, the pricing service utilizes both dealer-supplied valuations
and electronic data processing techniques which take into account
appropriate factors such as institutional-size trading in similar groups
of securities, yield, quality, coupon rate, maturity, type of issue,
trading characteristics other than market data and without exclusive
reliance upon quoted prices or exchanges or over-the-counter prices,
since such valuations are believed to reflect more accurately the fair
value of such securities. All debt portfolio securities with a remaining
maturity of 60 days or less are valued at amortized cost, which
approximates market value as determined by the Board of Trustees.
The value of each equity security held by the Funds is based either on
the last sale price on a national securities exchange, or in the absence
of recorded sales, as the closing bid prices on such exchanges, or at
the quoted bid price in the over-the-counter market. Securities or other
assets for which market quotations are not readily available are valued
at fair market value as determined in good faith by or at 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. Interest income is recognized on the accrual
basis and, where applicable, includes the amortization of premium or
accretion of discount. Dividend income is recorded on the ex-dividend
date.
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
33
<PAGE> 47
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- May 31, 2000
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.
EXPENSE ALLOCATION:
Expenses with respect to any two or more Funds are allocated in
proportion to the net assets of each Fund in the Trust, except where
allocations of direct expenses to each Fund can otherwise be determined
fairly. Expenses directly attributable to a Fund are charged to that
Fund. The expenses of the Funds are allocated to each class of shares on
a pro-rata basis.
ORGANIZATION EXPENSES:
Costs incurred in connection with the organization and initial
registration of each Fund were deferred and are being amortized over a
sixty-month period beginning with each Fund's commencement of
operations.
DIVIDENDS TO SHAREHOLDERS:
The Money Market Fund, The Short Term Government Income Fund and The
Intermediate Term Government Income Fund declare all net investment
income daily as dividends to their shareholders and distribute such
dividends monthly. Dividends from net investment income, if any, are
declared and distributed monthly for The Large Cap Equity Fund, The Mid
Cap Equity Fund and The Small Cap Equity Fund.
The Funds' net realized gains, if any, are distributed to the
shareholders at least annually. Additional distributions are also made
to the Funds' shareholders to the extent necessary to avoid the federal
excise tax on certain undistributed income and net realized gains of
regulated investment companies.
The amounts of dividends from net investment income and 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.
For the year ended May 31, 2000, the following reclassifications have
been made to increase/(decrease) such accounts with offsetting
adjustments made to capital:
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED NET UNDISTRIBUTED NET
INVESTMENT REALIZED GAIN/LOSS
INCOME/LOSS ON INVESTMENTS
----------------- ------------------
<S> <C> <C>
The Short Term Government Income Fund.......... $ 2,347 $ (2,347)
The Intermediate Term Government Income Fund... (400) 400
The Mid Cap Equity Fund........................ 85,610 (85,610)
The Small Cap Equity Fund...................... 269,256 --
</TABLE>
34
<PAGE> 48
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- May 31, 2000
3. TRANSACTIONS WITH AFFILIATES:
ADVISOR AND CUSTODIAN:
Trustmark National Bank ("Trustmark") acts as Investment Advisor to the
Funds. Trustmark is entitled to receive a fee, computed daily and paid
monthly, based on average daily net assets. For the year ended May 31,
2000, the advisory fee rates and voluntary waivers were as follows:
<TABLE>
<CAPTION>
INVESTMENT INVESTMENT ADVISORY
ADVISORY FEE FEES VOLUNTARILY/CONTRACTUALLY
RATE WAIVED
------------ ------------------------------
<S> <C> <C>
The Money Market Fund..................... 0.30% $549,495
The Short Term Government Income Fund..... 0.40% --
The Intermediate Term Government Income
Fund.................................... 0.50% 78,540
The Large Cap Equity Fund................. 0.60% --
The Mid Cap Equity Fund................... 0.75% --
The Small Cap Equity Fund................. 1.00% 93,176
</TABLE>
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%.
ADMINISTRATION:
BISYS Fund Services Ohio, Inc. ("BISYS"), is a wholly-owned subsidiary
of The BISYS Group, Inc. BISYS, with whom certain officers and trustees
of the Funds are affiliated, serves as the Trust's administrator. Such
officers and trustees are paid no fees directly by the Funds for serving
as officers and trustees of the Funds. Under terms of the administration
agreement, BISYS is entitled to a fee, computed daily and paid monthly,
at an annual rate of 0.15% of the average net assets of the Funds. For
the year ended May 31, 2000, BISYS voluntarily waived administration
fees of $407,224 for the Money Market Fund.
DISTRIBUTION PLAN:
Performance Funds Distributor, Inc. (the "Distributor"), a wholly-owned
subsidiary of The BISYS Group, Inc., serves as the Funds' distribution
agent (the "Distributor"). The Trust has adopted a non-compensatory
Distribution Plan and Agreement (the "Plan") pursuant to Rule 12b-1 of
the 1940 Act. The Plan provides for a monthly payment by the Funds to
the Distributor at a rate not to exceed 0.35% of the average daily net
assets of Class A Shares and 1.00% of the average daily net assets of
Class B Shares of the Funds for amounts representing actual expenses
incurred by the Distributor for marketing costs and services rendered in
distributing the Funds' shares.
For the year ended May 31, 2000, BISYS as the Funds' distributor
received $86,903 from commissions earned on sales of the Funds of which
$86,848 was re-allowed to Trustmark, Distributor, Trustmark National
Bank and BISYS (affiliated broker/dealers).
FUND ACCOUNTING AND TRANSFER AGENCY:
BISYS provides fund accounting and transfer agency services for all
classes of each Fund and receives an annual per fund fee accrued daily
and paid monthly.
35
<PAGE> 49
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- May 31, 2000
4. SECURITY PURCHASES AND SALES:
Purchases and sales of securities for the year ended May 31, 2000, other
than short term securities, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
The Short Term Government Income Fund.............. $35,061,954 $60,818,423
The Intermediate Term Government Income Fund....... 82,267,902 89,159,889
The Large Cap Equity Fund.......................... 31,230,113 40,619,691
The Mid Cap Equity Fund............................ 66,959,193 94,173,830
The Small Cap Equity Fund.......................... 37,718,875 53,744,057
</TABLE>
36
<PAGE> 50
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- May 31, 2000
5. SHARES OF BENEFICIAL INTEREST:
The Trust is authorized to issue an unlimited number of shares of
beneficial interest with a par value of $0.001 per share. Transactions in
shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
THE SHORT TERM
THE MONEY MARKET FUND GOVERNMENT INCOME FUND
----------------------------- ---------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
----------------------------- ---------------------------
MAY 31, MAY 31, MAY 31, MAY 31,
2000 1999 2000 1999
------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
INSTITUTIONAL CLASS SHARES:
Proceeds from shares issued........ $ 744,783,074 $ 860,491,305 $ 14,891,738 $ 22,521,460
Dividends reinvested............... 207,484 141,718 3,452,594 4,137,050
Cost of shares redeemed............ (695,077,846) (827,479,603) (42,576,345) (33,038,180)
------------- ------------- ------------ ------------
Institutional Class Shares capital
transactions....................... 49,912,712 33,153,420 (24,232,013) (6,379,670)
------------- ------------- ------------ ------------
CLASS A SHARES:
Proceeds from shares issued........ 129,424,712 207,215,008 1,548,937 10,022,861
Dividends reinvested............... 4,458,728 4,404,063 221,025 207,150
Cost of shares redeemed............ (145,378,448) (191,066,323) (2,829,102) (7,761,979)
------------- ------------- ------------ ------------
Class A Shares capital
transactions....................... (11,495,008) 20,552,748 (1,059,140) 2,468,032
------------- ------------- ------------ ------------
CLASS B SHARES:
Proceeds from shares issued........ 1,663,489 242,396 -- --
Dividends reinvested............... 21,339 563 -- --
Cost of shares redeemed............ (1,575,263) (44,578) -- --
------------- ------------- ------------ ------------
Class B Shares capital
transactions....................... 109,565 198,381 -- --
------------- ------------- ------------ ------------
Change in net assets from capital
transactions....................... $ 38,527,269 $ 53,904,549 $(25,291,153) $ (3,911,638)
============= ============= ============ ============
SHARE TRANSACTIONS:
INSTITUTIONAL CLASS SHARES:
Issued............................. 744,783,074 860,491,305 1,537,912 2,276,708
Reinvested......................... 207,484 141,718 355,533 417,987
Redeemed........................... (695,077,846) (827,479,603) (4,394,952) (3,343,447)
------------- ------------- ------------ ------------
Change in Institutional Class
Shares............................. 49,912,712 33,153,420 (2,501,507) (648,752)
------------- ------------- ------------ ------------
CLASS A SHARES:
Issued............................. 129,424,712 207,215,008 159,845 1,013,580
Reinvested......................... 4,458,728 4,404,063 22,762 20,931
Redeemed........................... (145,378,448) (191,066,323) (292,069) (785,701)
------------- ------------- ------------ ------------
Change in Class A Shares............. (11,495,008) 20,552,748 (109,462) 248,810
------------- ------------- ------------ ------------
CLASS B SHARES:
Issued............................. 1,663,489 242,396 -- --
Reinvested......................... 21,339 563 -- --
Redeemed........................... (1,575,263) (44,578) -- --
------------- ------------- ------------ ------------
Change in Class B Shares............. 109,565 198,381 -- --
------------- ------------- ------------ ------------
Change in shares from share
transactions....................... 38,527,269 53,904,549 (2,610,969) (399,942)
============= ============= ============ ============
</TABLE>
37
<PAGE> 51
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- May 31, 2000
<TABLE>
<CAPTION>
THE INTERMEDIATE TERM
GOVERNMENT INCOME FUND THE LARGE CAP EQUITY FUND
--------------------------- ---------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
--------------------------- ---------------------------
MAY 31, MAY 31, MAY 31, MAY 31,
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
INSTITUTIONAL CLASS SHARES:
Proceeds from shares issued.......... $ 24,994,743 $ 69,320,815 $ 58,299,170 $ 70,031,838
Dividends reinvested................. 5,102,891 4,361,842 6,316,198 8,754,787
Cost of shares redeemed.............. (36,174,696) (32,678,463) (69,459,265) (81,091,911)
------------ ------------ ------------ ------------
Institutional Class Shares capital
transactions......................... (6,077,062) 41,004,194 (4,843,897) (2,305,286)
------------ ------------ ------------ ------------
CLASS A SHARES:
Proceeds from shares issued.......... 2,501,225 10,741,856 11,329,764 27,845,438
Dividends reinvested................. 345,206 301,726 1,737,607 2,229,016
Cost of shares redeemed.............. (4,587,254) (6,479,606) (19,928,937) (18,192,026)
------------ ------------ ------------ ------------
Class A Shares capital transactions.... (1,740,823) 4,563,976 (6,861,566) 11,882,428
------------ ------------ ------------ ------------
CLASS B SHARES:
Proceeds from shares issued.......... 13,696 103,713 4,822,497 3,050,623
Dividends reinvested................. 3,254 961 139,321 15,628
Cost of shares redeemed.............. (30,646) (5,845) (763,264) (147,366)
------------ ------------ ------------ ------------
Class B Shares capital transactions.... (13,696) 98,829 4,198,554 2,918,885
------------ ------------ ------------ ------------
Change in net assets from capital
transactions......................... $ (7,831,581) $ 45,666,999 $ (7,506,909) $ 12,496,027
============ ============ ============ ============
SHARE TRANSACTIONS:
INSTITUTIONAL CLASS SHARES:
Issued............................... 2,563,482 6,641,753 2,009,354 2,599,703
Reinvested........................... 521,362 417,298 212,622 337,983
Redeemed............................. (3,725,882) (3,134,893) (2,389,491) (3,082,063)
------------ ------------ ------------ ------------
Change in Institutional Class Shares... (641,038) 3,924,158 (167,515) (144,377)
------------ ------------ ------------ ------------
CLASS A SHARES:
Issued............................... 258,145 1,029,738 390,596 1,045,212
Reinvested........................... 35,276 28,909 58,447 86,013
Redeemed............................. (469,987) (624,348) (677,467) (695,145)
------------ ------------ ------------ ------------
Change in Class A Shares............... (176,566) 434,299 (228,424) 436,080
------------ ------------ ------------ ------------
CLASS B SHARES:
Issued............................... 1,392 9,889 167,703 110,466
Reinvested........................... 333 93 4,689 602
Redeemed............................. (3,174) (558) (26,576) (5,106)
------------ ------------ ------------ ------------
Change in Class B Shares............... (1,449) 9,424 145,816 105,962
------------ ------------ ------------ ------------
Change in shares from share
transactions......................... (819,053) 4,367,881 (250,123) 397,665
============ ============ ============ ============
</TABLE>
38
<PAGE> 52
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- May 31, 2000
<TABLE>
<CAPTION>
THE MID CAP EQUITY FUND THE SMALL CAP EQUITY FUND
---------------------------- ---------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
---------------------------- ---------------------------
MAY 31, MAY 31, MAY 31, MAY 31,
2000 1999 2000 1999
------------ ------------- ------------ ------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
INSTITUTIONAL CLASS SHARES:
Proceeds from shares issued......... $ 30,527,956 $ 82,245,888 $ 17,049,267 $ 21,706,370
Dividends reinvested................ 10,514,525 7,681,184 -- 477,076
Cost of shares redeemed............. (44,557,016) (137,448,633) (29,174,963) (17,955,879)
------------ ------------- ------------ ------------
Institutional Class Shares capital
transactions........................ (3,514,535) (47,521,561) (12,125,696) 4,227,567
------------ ------------- ------------ ------------
CLASS A SHARES:
Proceeds from shares issued......... 4,817,489 18,693,226 1,960,592 7,569,762
Dividends reinvested................ 3,002,076 1,282,375 -- 46,954
Cost of shares redeemed............. (10,400,955) (16,263,214) (3,224,461) (4,780,863)
------------ ------------- ------------ ------------
Class A Shares capital transactions... (2,581,390) 3,712,387 (1,263,869) 2,835,853
------------ ------------- ------------ ------------
CLASS B SHARES:
Proceeds from shares issued......... 334,204 158,259 17,226 51,475
Dividends reinvested................ 39,233 5,893 -- 361
Cost of shares redeemed............. (28,972) (29,048) (12,019) (1,781)
------------ ------------- ------------ ------------
Class B Shares capital transactions... 344,465 135,104 5,207 50,055
------------ ------------- ------------ ------------
Change in net assets from capital
transactions........................ $ (5,751,460) $ (43,674,070) $(13,384,358) $ 7,113,475
============ ============= ============ ============
SHARE TRANSACTIONS:
INSTITUTIONAL CLASS SHARES:
Issued.............................. 1,661,967 4,603,263 1,996,005 2,604,408
Reinvested.......................... 598,256 434,567 -- 56,259
Redeemed............................ (2,408,214) (7,686,447) (3,434,926) (2,119,428)
------------ ------------- ------------ ------------
Change in Institutional Class
Shares.............................. (147,991) (2,648,617) (1,438,921) 541,239
------------ ------------- ------------ ------------
CLASS A SHARES:
Issued.............................. 268,056 978,170 232,791 821,201
Reinvested.......................... 171,147 72,599 -- 5,557
Redeemed............................ (557,840) (913,182) (379,281) (573,601)
------------ ------------- ------------ ------------
Change in Class A Shares.............. (118,637) 137,587 (146,490) 253,157
------------ ------------- ------------ ------------
CLASS B SHARES:
Issued.............................. 18,498 8,674 2,092 6,054
Reinvested.......................... 2,261 334 -- 43
Redeemed............................ (1,559) (1,536) (1,490) (201)
------------ ------------- ------------ ------------
Change in Class B Shares.............. 19,200 7,472 602 5,896
------------ ------------- ------------ ------------
Change in shares from share
transactions........................ (247,428) (2,503,558) (1,584,809) 800,292
============ ============= ============ ============
</TABLE>
39
<PAGE> 53
PERFORMANCE FUNDS TRUST
Notes to Financial Statements (continued) -- May 31, 2000
6. FEDERAL INCOME TAXES:
It is the policy of each Fund to continue to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of net investment income and net
realized capital gains sufficient to relieve it from all, or substantially
all, federal income taxes.
At May 31, 2000, the following funds had net capital loss carryforwards to
offset future net capital gains, if any, to the extent provided by Treasury
regulations:
<TABLE>
<CAPTION>
AMOUNT EXPIRES
---------- -------
<S> <C> <C>
The Money Market Fund................................... $ 16,481 2006
520 2008
The Short Term Government Income Fund................... 1,466,013 2003
595,936 2005
210,095 2008
The Intermediate Term Government Income Fund............ 4,066,366 2003
114,007 2005
314,674 2008
The Small Cap Equity Fund............................... 1,553,247 2007
6,561,229 2008
</TABLE>
To the extent that these carryforwards are used to offset future capital
gains, it is probable that the gains so offset will not be distributed to
shareholders.
7. FEDERAL INCOME TAXES INFORMATION (UNAUDITED):
During the year ended May 31, 2000 the Funds declared long term capital
gain distributions as follows:
<TABLE>
<CAPTION>
LONG-TERM
20%
-----------
<S> <C>
The Large Cap Equity Fund................................... $ 9,590,879
The Mid Cap Equity Fund..................................... 16,261,930
</TABLE>
For corporate shareholders the percentage of the total ordinary income
distributions paid during the year ended May 31, 2000, that qualify for
the corporate dividend received deduction, are as follows:
<TABLE>
<CAPTION>
PERCENTAGE
----------
<S> <C>
The Large Cap Equity Fund................................... 100.00%
The Mid Cap Equity Fund..................................... 12.31%
</TABLE>
Realized capital losses incurred after October 31, within a Fund's fiscal
year are deemed to arise on the first business day of the following
fiscal year for tax purposes. The following Funds have incurred and will
elect to defer such capital losses:
<TABLE>
<CAPTION>
POST-OCTOBER
CAPITAL LOSSES
--------------
<S> <C>
The Money Market Fund....................................... $ 283
The Short Term Government Income Fund....................... 583,286
The Intermediate Term Government Income Fund................ 4,916,082
The Small Cap Equity Fund................................... 6,700,681
</TABLE>
40
<PAGE> 54
PERFORMANCE FUNDS TRUST
THE MONEY MARKET FUND
Financial Highlights
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
------------------------------------------------------------------------
MAY 31, 2000 MAY 31, 1999 MAY 31, 1998 MAY 31, 1997 MAY 31, 1996
INSTITUTIONAL CLASS SHARES ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................... $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment income................................. 0.05 0.05 0.05 0.05 0.05
------ ------ ------ ------ ------
Total from investment activities...................... 0.05 0.05 0.05 0.05 0.05
------ ------ ------ ------ ------
DIVIDENDS:
Net investment income................................. (0.05) (0.05) (0.05) (0.05) (0.05)
------ ------ ------ ------ ------
Total dividends....................................... (0.05) (0.05) (0.05) (0.05) (0.05)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD.......................... $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL RETURN............................................ 5.38% 5.05% 5.43% 5.34% 5.60%
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands).............. $432,090 $382,178 $349,024 $320,732 $366,966
Ratio of expenses to average net assets............... 0.35% 0.35% 0.33% 0.25% 0.24%
Ratio of net investment income to average net
assets.............................................. 5.26% 4.92% 5.31% 5.20% 5.42%
Ratio of expenses to average net assets(a)............ 0.54% 0.59% 0.57% 0.51% 0.54%
</TABLE>
---------------
(a) During the period certain fees were voluntarily/contractually waived. If
such fee waivers had not occurred, the ratio would have been as indicated.
See notes to financial statements.
41
<PAGE> 55
PERFORMANCE FUNDS TRUST
THE MONEY MARKET FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
------------------------------------------------------------------------
MAY 31, 2000 MAY 31, 1999 MAY 31, 1998 MAY 31, 1997 MAY 31, 1996
CLASS A SHARES(a) ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................... $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment income................................. 0.05 0.05 0.05 0.04 0.05
------ ------ ------ ------ ------
Total from investment activities...................... 0.05 0.05 0.05 0.04 0.05
------ ------ ------ ------ ------
DIVIDENDS:
Net investment income................................. (0.05) (0.05) (0.05) (0.04) (0.05)
------ ------ ------ ------ ------
Total dividends....................................... (0.05) (0.05) (0.05) (0.04) (0.05)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD.......................... $1.00 $1.00 $1.00 $1.00 $1.00
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL RETURN............................................ 5.12% 4.79% 5.18% 5.07% 5.33%
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands).............. $82,852 $94,347 $73,794 $92,220 $25,216
Ratio of expenses to average net assets............... 0.60% 0.60% 0.58% 0.38% 0.49%
Ratio of net investment income to average net
assets.............................................. 4.99% 4.67% 5.06% 5.23% 5.17%
Ratio of expenses to average net assets(b)............ 0.79% 0.84% 0.82% 0.48% 0.79%
</TABLE>
---------------
(a) On September 30, 1998, the portfolio designated the Consumer Service Class
as Class A shares.
(b) During the period certain fees were voluntarily/contractually waived. If
such fee waivers had not occurred, the ratio would have been as indicated.
See notes to financial statements.
42
<PAGE> 56
PERFORMANCE FUNDS TRUST
THE MONEY MARKET FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
MAY 31, 2000 MAY 31, 1999(a)
CLASS B SHARES ------------ ---------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $1.00 $1.00
-------- ---------
INVESTMENT ACTIVITIES:
Net investment income..................................... 0.04 0.02
-------- ---------
Total from investment activities.......................... 0.04 0.02
-------- ---------
DIVIDENDS:
Net investment income..................................... (0.04) (0.02)
-------- ---------
Total dividends........................................... (0.04) (0.02)
-------- ---------
NET ASSET VALUE, END OF PERIOD.............................. $1.00 $1.00
-------- ---------
-------- ---------
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE)................... 4.35% 2.30% **
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands).................. $308 $198
Ratio of expenses to average net assets................... 1.33% 1.51% *
Ratio of net investment income to average net assets...... 4.30% 3.43% *
Ratio of expenses to average net assets(b)................ 1.52% 1.73% *
</TABLE>
---------------
(a) Class B commenced operations on October 2, 1998.
(b) During the period certain fees were voluntarily/contractually waived. If
such fee waivers had not occurred, the ratio would have been as indicated.
* Annualized
** Not annualized
See notes to financial statements.
43
<PAGE> 57
PERFORMANCE FUNDS TRUST
THE SHORT TERM GOVERNMENT INCOME FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
------------------------------------------------------------------------
MAY 31, 2000 MAY 31, 1999 MAY 31, 1998 MAY 31, 1997 MAY 31, 1996
INSTITUTIONAL CLASS SHARES ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................. $9.79 $9.85 $9.75 $9.75 $9.84
------ ------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment income............................... 0.51 0.50 0.54 0.55 0.54
Net realized and unrealized gains/(losses) from
investments....................................... (0.13) (0.06) 0.10 (0.01) (0.09)
------ ------ ------ ------ ------
Total from investment activities.................... 0.38 0.44 0.64 0.54 0.45
------ ------ ------ ------ ------
DIVIDENDS:
Net investment income............................... (0.51) (0.50) (0.54) (0.54) (0.54)
------ ------ ------ ------ ------
Total dividends..................................... (0.51) (0.50) (0.54) (0.54) (0.54)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD........................ $9.66 $9.79 $9.85 $9.75 $9.75
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL RETURN.......................................... 3.94% 4.57% 6.73% 5.70% 4.65%
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands)............ $87,517 $113,145 $120,203 $126,428 $106,617
Ratio of expenses to average net assets............. 0.70% 0.69% 0.64% 0.66% 0.71%
Ratio of net investment income to average net
assets............................................ 5.20% 5.09% 5.53% 5.63% 5.48%
Ratio of expenses to average net assets............. 0.70% 0.69% 0.64% 0.66% 0.72%(a)
Portfolio turnover rate*............................ 32.29% 49.19% 65.07% 85.21% 120.00%
</TABLE>
---------------
(a) During the period certain fees were voluntarily waived. If such voluntary
fee waivers had not occurred, the ratio would have been as indicated.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
44
<PAGE> 58
PERFORMANCE FUNDS TRUST
THE SHORT TERM GOVERNMENT INCOME FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
------------------------------------------------------------------------
MAY 31, 2000 MAY 31, 1999 MAY 31, 1998 MAY 31, 1997 MAY 31, 1996
CLASS A SHARES(a) ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................. $9.79 $9.85 $9.75 $9.75 $9.84
------ ------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment income............................... 0.48 0.48 0.52 0.49 0.51
Net realized and unrealized gains/(losses) from
investments....................................... (0.13) (0.06) 0.10 -- (0.09)
------ ------ ------ ------ ------
Total from investment activities.................... 0.35 0.42 0.62 0.49 0.42
------ ------ ------ ------ ------
DIVIDENDS:
Net investment income............................... (0.48) (0.48) (0.52) (0.49) (0.51)
------ ------ ------ ------ ------
Total dividends..................................... (0.48) (0.48) (0.52) (0.49) (0.51)
------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD........................ $9.66 $9.79 $9.85 $9.75 $9.75
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL RETURN (EXCLUDES SALES CHARGE).................. 3.68% 4.31% 6.48% 5.44% 4.38%
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands)............ $4,466 $5,596 $3,181 $1,205 $1,477
Ratio of expenses to average net assets............. 0.95% 0.94% 0.89% 0.87% 0.95%
Ratio of net investment income to average net
assets............................................ 4.95% 4.82% 5.28% 5.01% 5.23%
Ratio of expenses to average net assets............. 0.95% 0.94% 0.89% 0.87% 0.96%(b)
Portfolio turnover rate*............................ 32.29% 49.19% 65.07% 85.21% 120.00%
</TABLE>
---------------
(a) On September 30, 1998, the portfolio designated the Consumer Service Class
as Class A shares and became subject to a maximum sales charge of 3.00%.
(b) During the period certain fees were voluntarily waived. If such voluntary
fee waivers had not occurred, the ratio would have been as indicated.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
45
<PAGE> 59
PERFORMANCE FUNDS TRUST
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
------------------------------------------------------------------------
MAY 31, 2000 MAY 31, 1999 MAY 31, 1998 MAY 31, 1997 MAY 31, 1996
INSTITUTIONAL CLASS SHARES ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................... $10.06 $10.34 $9.93 $9.82 $10.11
------- ------- ------- ------ -------
Investment Activities:
Net investment income................................. 0.55 0.54 0.59 0.60 0.56
Net realized and unrealized gains/(losses) from
investments......................................... (0.48) (0.28) 0.42 0.09 (0.29)
------- ------- ------- ------ -------
Total from investment activities...................... 0.07 0.26 1.01 0.69 0.27
------- ------- ------- ------ -------
Dividends:
Net investment income................................. (0.55) (0.54) (0.59) (0.58) (0.56)
In excess of net investment income.................... -- -- (0.01) -- --
------- ------- ------- ------ -------
Total dividends....................................... (0.55) (0.54) (0.60) (0.58) (0.56)
------- ------- ------- ------ -------
NET ASSET VALUE, END OF PERIOD.......................... $9.58 $10.06 $10.34 $9.93 $9.82
------- ------- ------- ------ -------
------- ------- ------- ------ -------
TOTAL RETURN............................................ 0.71% 2.47% 10.42% 7.20% 2.66%
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands).............. $141,404 $154,916 $118,743 $94,242 $77,677
Ratio of expenses to average net assets............... 0.75% 0.79% 0.72% 0.86% 0.81%
Ratio of net investment income to average net
assets.............................................. 5.59% 5.18% 5.78% 6.48% 5.55%
Ratio of expenses to average net assets(a)............ 0.80% 0.84% 0.77% 0.91% 0.86%
Portfolio turnover rate*.............................. 53.19% 74.03% 35.62% 46.23% 183.00%
</TABLE>
---------------
(a) During the period certain fees were voluntarily/contractually waived. If
such fee waivers had not occurred, the ratio would have been as indicated.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
46
<PAGE> 60
PERFORMANCE FUNDS TRUST
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
------------------------------------------------------------------------
MAY 31, 2000 MAY 31, 1999 MAY 31, 1998 MAY 31, 1997 MAY 31, 1996
CLASS A SHARES(a) ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................... $10.05 $10.34 $9.93 $9.82 $10.11
-------- -------- -------- ------- --------
INVESTMENT ACTIVITIES:
Net investment income................................. 0.52 0.52 0.57 0.57 0.54
Net realized and unrealized gains/(losses) from
investments......................................... (0.48) (0.29) 0.42 0.10 (0.29)
-------- -------- -------- ------- --------
Total from investment activities...................... 0.04 0.23 0.99 0.67 0.25
-------- -------- -------- ------- --------
DIVIDENDS:
Net investment income................................. (0.52) (0.52) (0.57) (0.56) (0.54)
In excess of net investment income.................... -- -- (0.01) -- --
-------- -------- -------- ------- --------
Total dividends....................................... (0.52) (0.52) (0.58) (0.56) (0.54)
-------- -------- -------- ------- --------
NET ASSET VALUE, END OF PERIOD.......................... $9.57 $10.05 $10.34 $9.93 $9.82
-------- -------- -------- ------- --------
-------- -------- -------- ------- --------
TOTAL RETURN (EXCLUDES SALES CHARGE).................... 0.45% 2.11% 10.15% 6.92% 2.40%
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands).............. $6,139 $8,219 $3,965 $1,465 $2,174
Ratio of expenses to average net assets............... 1.00% 1.05% 0.97% 1.03% 1.06%
Ratio of net investment income to average net
assets.............................................. 5.32% 4.92% 5.53% 5.60% 5.30%
Ratio of expenses to average net assets(b)............ 1.05% 1.10% 1.02% 1.08% 1.11%
Portfolio turnover rate*.............................. 53.19% 74.03% 35.62% 46.23% 183.00%
</TABLE>
---------------
(a) On September 30, 1998, the portfolio designated the Consumer Service Class
as Class A shares and became subject to a maximum sales charge of 5.25%.
(b) During the period certain fees were voluntarily/contractually waived. If
such fee waivers had not occurred, the ratio would have been as indicated.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
47
<PAGE> 61
PERFORMANCE FUNDS TRUST
THE INTERMEDIATE TERM GOVERNMENT INCOME FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
MAY 31, 2000 MAY 31, 1999(a)
CLASS B SHARES ------------ ---------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................... $10.05 $10.81
-------- ----------
INVESTMENT ACTIVITIES:
Net investment income................................ 0.45 0.28
Net realized and unrealized loss from investments.... (0.48) (0.76)
------- ---------
Total from investment activities..................... (0.03) (0.48)
------- ---------
DIVIDENDS:
Net investment income................................ (0.45) (0.28)
------- ---------
Total dividends...................................... (0.45) (0.28)
------- ---------
NET ASSET VALUE, END OF PERIOD......................... $9.57 $10.05
------- ----------
------- ----------
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE).............. (0.30%) (4.54%)***
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands)............. $76 $95
Ratio of expenses to average net assets.............. 1.75% 1.79%**
Ratio of net investment income to average net
assets............................................. 4.57% 4.01%**
Ratio of expenses to average net assets(b)........... 1.80% 1.84%**
Portfolio turnover rate*............................. 53.19% 74.03%
</TABLE>
---------------
(a) Class B commenced operations on October 2, 1998.
(b) During the period certain fees were voluntarily/contractually waived. If
such fee waivers had not occurred, the ratio would have been as indicated.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
** Annualized
*** Not annualized
See notes to financial statements.
48
<PAGE> 62
PERFORMANCE FUNDS TRUST
THE LARGE CAP EQUITY FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
------------------------------------------------------------------------
MAY 31, 2000 MAY 31, 1999 MAY 31, 1998 MAY 31, 1997 MAY 31, 1996
INSTITUTIONAL CLASS SHARES ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................. $28.18 $24.98 $19.16 $15.29 $12.51
------- ------- ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income............................... 0.12 0.15 0.19 0.24 0.23
Net realized and unrealized gain from investments... 1.41 4.30 6.00 4.13 3.29
------- ------- ------- ------- -------
Total from investment activities.................... 1.53 4.45 6.19 4.37 3.52
------- ------- ------- ------- -------
DIVIDENDS:
Net investment income............................... (0.11) (0.15) (0.19) (0.25) (0.23)
Net realized gains from investment transactions..... (0.77) (1.10) (0.18) (0.25) (0.51)
------- ------- ------- ------- -------
Total dividends..................................... (0.88) (1.25) (0.37) (0.50) (0.74)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD........................ $28.83 $28.18 $24.98 $19.16 $15.29
------- ------- ------- ------- -------
------- ------- ------- ------- -------
TOTAL RETURN.......................................... 5.35% 18.25% 32.53% 29.06% 28.73%
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands)............ $290,637 $288,804 $259,585 $233,454 $140,144
Ratio of expenses to average net assets............. 0.87% 0.90% 0.91% 0.83% 0.81%
Ratio of net investment income to average net
assets............................................ 0.43% 0.58% 0.83% 1.43% 1.65%
Ratio of expenses to average net assets............. 0.87% 0.90% 0.91% 0.92%(a) 0.91%(a)
Portfolio turnover rate*............................ 8.83% 7.20% 4.78% 1.41% 6.00%
</TABLE>
---------------
(a) During the period certain fees were voluntarily waived. If such voluntary
fee waivers had not occurred, the ratio would have been as indicated.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
49
<PAGE> 63
PERFORMANCE FUNDS TRUST
THE LARGE CAP EQUITY FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
------------------------------------------------------------------------
MAY 31, 2000 MAY 31, 1999 MAY 31, 1998 MAY 31, 1997 MAY 31, 1996
CLASS A SHARES(a) ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................. $28.16 $24.97 $19.16 $15.29 $12.51
------- ------- ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income............................... 0.05 0.09 0.13 0.20 0.19
Net realized and unrealized gain from investments... 1.40 4.30 5.99 4.13 3.29
------- ------- ------- ------- -------
Total from investment activities.................... 1.45 4.39 6.12 4.33 3.48
------- ------- ------- ------- -------
DIVIDENDS:
Net investment income............................... (0.06) (0.10) (0.13) (0.21) (0.19)
Net realized gains from investment transactions..... (0.77) (1.10) (0.18) (0.25) (0.51)
------- ------- ------- ------- -------
Total dividends..................................... (0.83) (1.20) (0.31) (0.46) (0.70)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD........................ $28.78 $28.16 $24.97 $19.16 $15.29
------- ------- ------- ------- -------
------- ------- ------- ------- -------
TOTAL RETURN (EXCLUDES SALES CHARGE).................. 5.08% 17.92% 32.20% 28.75% 28.42%
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands)............ $53,777 $59,045 $41,474 $19,531 $9,831
Ratio of expenses to average net assets............. 1.12% 1.15% 1.16% 1.06% 1.06%
Ratio of net investment income to average net
assets............................................ 0.18% 0.33% 0.58% 1.18% 1.40%
Ratio of expenses to average net assets............. 1.12% 1.15% 1.16% 1.14%(b) 1.16%(b)
Portfolio turnover rate*............................ 8.83% 7.20% 4.78% 1.41% 6.00%
</TABLE>
---------------
(a) On September 30, 1998, the portfolio designated the Consumer Service Class
as Class A shares and became subject to a maximum sales charge of 5.25%.
(b) During the period certain fees were voluntarily waived. If such voluntary
fee waivers had not occurred, the ratio would have been as indicated.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
50
<PAGE> 64
PERFORMANCE FUNDS TRUST
THE LARGE CAP EQUITY FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
MAY 31, 2000 MAY 31, 1999(a)
CLASS B SHARES ------------ ---------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD............... $28.08 $23.12
-------- ----------
INVESTMENT ACTIVITIES:
Net investment loss.............................. (0.13) (0.02)
Net realized and unrealized gain from
investments.................................... 1.37 6.11
-------- ----------
Total from investment activities................. 1.24 6.09
-------- ----------
DIVIDENDS:
Net investment income............................ -- (0.03)
Net realized gains from investment
transactions................................... (0.77) (1.10)
-------- ----------
Total dividends.................................. (0.77) (1.13)
-------- ----------
NET ASSET VALUE, END OF PERIOD..................... $28.55 $28.08
-------- ----------
-------- ----------
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE).......... 4.31% 26.80%***
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands)......... $7,189 $2,975
Ratio of expenses to average net assets.......... 1.87% 1.88%**
Ratio of net investment loss to average net
assets......................................... (0.57%) (0.33%)**
Portfolio turnover rate*......................... 8.83% 7.20%
</TABLE>
---------------
(a) Class B commenced operations on October 2, 1998
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
** Annualized
*** Not annualized
See notes to financial statements.
51
<PAGE> 65
PERFORMANCE FUNDS TRUST
THE MID CAP EQUITY FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
------------------------------------------------------------------------
MAY 31, 2000 MAY 31, 1999 MAY 31, 1998 MAY 31, 1997 MAY 31, 1996
INSTITUTIONAL CLASS SHARES ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.................... $18.61 $20.11 $16.71 $14.05 $11.11
-------- ------- ------- ------- --------
INVESTMENT ACTIVITIES:
Net investment income/(loss).......................... (0.00)** 0.06 0.08 0.13 0.13
Net realized and unrealized gains/(losses) from
investments......................................... 1.66 (0.34) 4.40 2.99 3.44
-------- ------- ------- ------- --------
Total from investment activities...................... 1.66 (0.28) 4.48 3.12 3.57
-------- ------- ------- ------- --------
DIVIDENDS:
Net investment income................................. -- (0.06) (0.08) (0.13) (0.13)
Net realized gains from investment transactions....... (3.14) (1.16) (1.00) (0.33) (0.50)
-------- ------- ------- ------- --------
Total dividends....................................... (3.14) (1.22) (1.08) (0.46) (0.63)
-------- ------- ------- ------- --------
NET ASSET VALUE, END OF PERIOD.......................... $17.13 $18.61 $20.11 $16.71 $14.05
-------- ------- ------- ------- --------
-------- ------- ------- ------- --------
TOTAL RETURN............................................ 8.55% (1.06%) 27.15% 22.62% 33.06%
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands).............. $95,307 $106,330 $168,116 $125,035 $80,704
Ratio of expenses to average net assets............... 1.11% 1.09% 1.07% 0.92% 0.98%
Ratio of net investment income/(loss) to average net
assets.............................................. (0.03%) 0.34% 0.41% 0.89% 1.06%
Ratio of expenses to average net assets............... 1.11% 1.09% 1.07% 1.06%(a) 1.14%(a)
Portfolio turnover rate*.............................. 56.82% 33.27% 20.48% 7.72% 28.00%
</TABLE>
---------------
(a) During the period certain fees were voluntarily waived. If such voluntary
fee waivers had not occurred, the ratio would have been as indicated.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
** Net Investment Income/(Loss) was less than $ 0.005.
See notes to financial statements.
52
<PAGE> 66
PERFORMANCE FUNDS TRUST
THE MID CAP EQUITY FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
------------------------------------------------------------------------
MAY 31, 2000 MAY 31, 1999 MAY 31, 1998 MAY 31, 1997 MAY 31, 1996
CLASS A SHARES(a) ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD................... $18.59 $20.10 $16.72 $14.05 $11.11
-------- -------- -------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income/(loss)......................... (0.05) 0.02 0.03 0.09 0.10
Net realized and unrealized gains/(losses) from
investments........................................ 1.67 (0.34) 4.39 3.00 3.44
-------- -------- -------- ------- -------
Total from investment activities..................... 1.62 (0.32) 4.42 3.09 3.54
-------- -------- -------- ------- -------
DIVIDENDS:
Net investment income................................ -- (0.03) (0.03) (0.09) (0.10)
In excess of net investment income................... -- -- (0.01) -- --
Net realized gains from investment transactions...... (3.14) (1.16) (1.00) (0.33) (0.50)
-------- -------- -------- ------- -------
Total dividends...................................... (3.14) (1.19) (1.04) (0.42) (0.60)
-------- -------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD......................... $17.07 $18.59 $20.10 $16.72 $14.05
-------- -------- -------- ------- -------
-------- -------- -------- ------- -------
TOTAL RETURN (EXCLUDES SALES CHARGE)................... 8.27% (1.31%) 26.82% 22.33% 32.76%
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands)............. $16,708 $20,409 $19,298 $5,911 $1,437
Ratio of expenses to average net assets.............. 1.36% 1.35% 1.32% 1.19% 1.23%
Ratio of net investment income/(loss) to average net
assets............................................. (0.28%) 0.10% 0.16% 0.65% 0.79%
Ratio of expenses to average net assets.............. 1.36% 1.35% 1.32% 1.30%(b) 1.39%(b)
Portfolio turnover rate*............................. 56.82% 33.27% 20.48% 7.72% 28.00%
</TABLE>
---------------
(a) On September 30, 1998, the portfolio designated the Consumer Service Class
as Class A shares and became subject to a maximum sales charge of 5.25%.
(b) During the period certain fees were voluntarily waived. If such voluntary
fee waivers had not occurred, the ratio would have been as indicated.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
** Distribution was less than $ 0.005.
See notes to financial statements.
53
<PAGE> 67
PERFORMANCE FUNDS TRUST
THE MID CAP EQUITY FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
MAY 31, 2000 MAY 31, 1999(a)
CLASS B SHARES ------------ ---------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $18.49 $16.40
-------- ----------
INVESTMENT ACTIVITIES:
Net investment loss....................................... (0.11) (0.06)
Net realized and unrealized gains from investments........ 1.58 3.32
-------- ----------
Total from investment activities.......................... 1.47 3.26
-------- ----------
DIVIDENDS:
Net investment income..................................... -- (0.01)
Net realized gains from investment transactions........... (3.14) (1.16)
-------- ----------
Total dividends........................................... (3.14) (1.17)
-------- ----------
NET ASSET VALUE, END OF PERIOD.............................. $16.82 $18.49
-------- ----------
-------- ----------
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE)................... 7.37% 20.28%***
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands).................. $449 $138
Ratio of expenses to average net assets................... 2.13% 2.10%**
Ratio of net investment loss to average net assets........ (1.07%) (0.73%)**
Portfolio turnover rate*.................................. 56.82% 33.27%
</TABLE>
---------------
(a) Class B commenced operations on October 2, 1998
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
** Annualized
*** Not annualized
See notes to financial statements.
54
<PAGE> 68
PERFORMANCE FUNDS TRUST
THE SMALL CAP EQUITY FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE
--------------------------- PERIOD ENDED
MAY 31, 2000 MAY 31, 1999 MAY 31, 1998(a)
INSTITUTIONAL CLASS SHARES ------------ ------------ ---------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $8.13 $9.92 $10.00
------- ------- ---------
INVESTMENT ACTIVITIES:
Net investment loss....................................... (0.04) (0.03) (0.03)(b)
Net realized and unrealized gains/(losses) from
investments............................................. 0.23 (1.68) (0.05)
------- ------- ---------
Total from investment activities............................ 0.19 (1.71) (0.08)
------- ------- ---------
DIVIDENDS:
Net realized gains from investment transactions........... -- (0.08) --
------- ------- ---------
Total dividends........................................... -- (0.08) --
------- ------- ---------
NET ASSET VALUE, END OF PERIOD.............................. $8.32 $8.13 $9.92
------- ------- ---------
------- ------- ---------
TOTAL RETURN................................................ 2.34% (17.25%) (0.80%)***
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands).................. $44,031 $54,722 $61,450
Ratio of expenses to average net assets................... 1.27% 1.40% 1.45%**
Ratio of net investment loss to average net assets........ (0.45%) (0.36%) (0.41%)**
Ratio of expenses to average net assets................... 1.43%(c) 1.40% 1.45%**
Portfolio turnover rate*.................................. 69.64% 34.52% 12.28%
</TABLE>
---------------
(a) Fund commenced operations on October 1, 1997.
(b) Calculated based on average shares during the period.
(c) During the period certain fees were voluntarily/contractually waived. If
such fee waivers had not occurred, the ratio would have been as indicated.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
** Annualized
*** Not Annualized
See notes to financial statements.
55
<PAGE> 69
PERFORMANCE FUNDS TRUST
THE SMALL CAP EQUITY FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE YEAR ENDED FOR THE
--------------------------- PERIOD ENDED
MAY 31, 2000 MAY 31, 1999 MAY 31, 1998(a)
CLASS A SHARES(c) ------------ ------------ ---------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $8.09 $9.91 $10.00
------- ------- ----------
INVESTMENT ACTIVITIES:
Net investment loss....................................... (0.07) (0.05) (0.04)(b)
Net realized and unrealized gains/(losses) from
investments............................................. 0.24 (1.69) (0.05)
------- ------- ----------
Total from investment activities.......................... 0.17 (1.74) (0.09)
------- ------- ----------
DIVIDENDS:
Net realized gains from investment transactions........... -- (0.08) --
------- ------- ----------
Total dividends........................................... -- (0.08) --
------- ------- ----------
NET ASSET VALUE, END OF PERIOD.............................. $8.26 $8.09 $9.91
------- ------- ----------
------- ------- ----------
TOTAL RETURN (EXCLUDES SALES CHARGE)........................ 2.10% (17.57%) (0.90%)***
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands).................. $3,967 $5,071 $3,704
Ratio of expenses to average net assets................... 1.52% 1.65% 1.70%**
Ratio of net investment loss to average net assets........ (0.70%) (0.61%) (0.66%)**
Ratio of expenses to average net assets................... 1.68%(d) 1.65% 1.70%**
Portfolio turnover rate*.................................. 69.64% 34.52% 12.28%
</TABLE>
---------------
(a) Fund commenced operations on October 1, 1997.
(b) Calculated based on average shares during the period.
(c) On September 30, 1998, the portfolio designated the Consumer Service Class
as Class A shares and became subject to a maximum sales charge of 5.25%.
(d) During the period certain fees were voluntarily/contractually waived. If
such fee waivers had not occurred, the ratio would have been as indicated.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
** Annualized
*** Not Annualized
See notes to financial statements.
56
<PAGE> 70
PERFORMANCE FUNDS TRUST
THE SMALL CAP EQUITY FUND
Financial Highlights (continued)
Selected data for a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
MAY 31, 2000 MAY 31, 1999(a)
CLASS B SHARES ------------ ---------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........................ $8.06 $7.47
-------- ---------
INVESTMENT ACTIVITIES:
Net investment loss....................................... (0.14) (0.05)
Net realized and unrealized gains from investments........ 0.24 0.72
-------- ---------
Total from investment activities.......................... 0.10 0.67
-------- ---------
DIVIDENDS:
Net realized gains from investment transactions........... -- (0.08)
-------- ---------
Total dividends........................................... -- (0.08)
-------- ---------
NET ASSET VALUE, END OF PERIOD.............................. $8.16 $8.06
-------- ---------
-------- ---------
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE)................... 1.24% 8.95%***
RATIOS/SUPPLEMENTARY DATA:
Net Assets, end of period (in thousands).................. $53 $48
Ratio of expenses to average net assets................... 2.27% 2.40%**
Ratio of net investment loss to average net assets........ (1.47%) (1.40%)**
Ratio of expenses to average net assets................... 2.43%(b) 2.40%**
Portfolio turnover rate*.................................. 69.64% 34.52%
</TABLE>
---------------
(a) Class B commenced operations on October 2, 1998.
(b) During the period certain fees were voluntarily/contractually waived. If
such fee waivers had not occurred, the ratio would have been as indicated.
* Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing between the classes of shares issued.
** Annualized
*** Not annualized
See notes to financial statements.
57
<PAGE> 71
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Trustees of
Performance Funds Trust
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of 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
(separate portfolios constituting the Performance Funds Trust, hereafter
referred to as the "Funds") at May 31, 2000, the results of each of their
operations for the year then ended, the changes in each of their net assets for
each of the two years then ended and the financial highlights for each of the
periods then ended, in conformity with accounting principles generally accepted
in the United States. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Funds' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at May 31, 2000 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
Columbus, Ohio
July 21, 2000
<PAGE> 72
[PERFORMANCE FUNDS LOGO]
INVESTMENT ADVISOR
Trustmark National Bank
248 East Capitol Street
Jackson, Mississippi 39201
ADMINISTRATOR AND
TRANSFER AGENT
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
DISTRIBUTOR
Performance Funds Distributor, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
CUSTODIAN
Trustmark National Bank
248 East Capitol Street
Jackson, Mississippi 39201
COUNSEL
Paul, Weiss, Rifkind, Wharton & Garrison
1285 Avenue of the Americas
New York, New York 10019-6064
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
100 East Broad St.
Columbus, Ohio 43215
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.
PR-ANN-5006-5/00
[PERFORMANCE FUNDS LOGO]
PERFORMANCE FUNDS TRUST
A FAMILY OF MUTUAL FUNDS
ANNUAL REPORT
MAY 31, 2000
INVESTMENT ADVISOR
[TRUSTMARK LOGO]
National Bank
Performance Funds'
Investment Advisor
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.
