<PAGE>
BJB INVESTMENT FUNDS
SEMI-ANNUAL REPORT
BJB GLOBAL INCOME FUND
AND BJB INTERNATIONAL EQUITY
FUND
APRIL 30, 1997
- --------------------------------------------------------------------------------
Dear Fellow Shareholder:
I am pleased to report on the activity and performance of the BJB Investment
Funds for the six month period ended April 30, 1997. During this first half of
the current fiscal year, the BJB International Equity Fund ('Equity Fund')
continued to provide shareholders with excellent results, significantly
outperforming both its benchmark index and the average of competitor's funds.
This period was a difficult one, however, for global bond markets and the BJB
Global Income Fund ('Income Fund') could not avoid the problems of those
markets. On the other hand, the Income Fund did continue to outperform its
benchmark, suffering a decline of well under one percent.
BJB GLOBAL INCOME FUND
For the six months ended April 30, 1997, the Income Fund returned -0.76%
compared with -1.43% for the equally blended Salomon Brothers World Government
Bond Index and the Lehman Brothers Intermediate Government/Corporate Bond Index.
The predominant factor in the six months under review was U.S. dollar
strength. Although the majority of bond markets exhibited positive local
currency returns during the period, total returns for dollar based investors
were universally negative owing to the strength of the U.S. unit and weakness of
U.S. Treasuries. The dollar was bolstered in general by strong domestic
fundamentals and the prospect of tighter monetary policy in the United States to
dampen inflationary pressures. In the case of both the deutschemark and yen,
this was reinforced by the belief that the two countries would welcome the
stimulatory benefits of currency weakness.
U.S. bond yields rose as evidence emerged that the economy was expanding at
a much faster pace than previously realized. The Federal Reserve subsequently
implemented a 0.25 basis points increase in the Federal Funds Rate on the 25th
of March. Initially, Canadian, Australian and New Zealand debt retreated broadly
in line with U.S. Treasuries, but weaker domestic economic data supported the
current interest rate structure in each country.
Japanese bonds remained well supported on expectations that the April rise
in consumption tax would dampen domestic demand, and the prevailing low interest
rate policy stance would be prolonged. In Europe, the 'high-yield' markets
performed well into the year-end, but Italy, Spain and Sweden experienced large
scale profit taking in the new year. The perceived inability of a number of
countries to meet the Maastricht Treaty convergence criteria fanned fears that
the single currency project might be delayed, an outcome that continues to
plague the markets.
In general, we believe that a cautious stance on the global fixed-income
markets continues to be warranted. The overall investment landscape is likely to
be characterized by accelerating economic growth and a gradual emergence of
capacity strains. Consequently, some rise in inflationary expectations appears
to be a prospect. Though modest further monetary easing is possible in Italy,
the balance of risks is that monetary conditions around the globe will become
increasingly restrictive. On currencies, G7 policy makers appear to be content
with the general level of the U.S. dollar against both the yen and the
deutschemark. A period of range trading is likely, therefore, with policy
statements aimed at countering substantial market volatility. Our view generally
coincides with official comments, i.e., the U.S. dollar's undervaluation has
been corrected. In these circumstances, we expect to reduce U.S. dollar exposure
over the next six months.
BJB INTERNATIONAL EQUITY FUND
The Equity Fund strongly outperformed both the MSCI EAFE Index and the
average of our competitors over the 6- and 12-month periods ending April 30,
1997. The Equity Fund returned +11.20% for the past 6 months and +14.13% over
the past 12 months versus MSCI EAFE returns of +1.57% and -0.89% over comparable
periods. Returns for the Lipper International Equity Fund Index, a reasonable
proxy for our competitors, were +8.74% and +9.28%, respectively during this
period.
The major strategy for geographic allocation was to overweight Continental
Europe and emerging markets at the expense of Japan and the United Kingdom. We
believed Continental European companies would benefit from economic recovery,
positive structural changes--mainly restructuring--and a stronger U.S. dollar.
In Japan we avoided financials and restricted ourselves to global and
export-oriented companies that would both benefit from a weaker yen and be more
competitive than the average Japanese company because of their exposure to
competition in the international arena, as well as to domestic names that were
not overly cyclical. The overall strategy was a major contributor to the Equity
Fund's return advantage over the EAFE Index. The trailing 12 month return in
local currency for the MSCI Europe ex-UK was a gain of 33.21% versus a loss of
- -11.78% for Japan and a gain of +18.93% for the United Kingdom over the same
period. In U.S. dollars, the trailing 12 month return was a gain of +17.31%, a
loss of -27% and a gain of +28%, respectively. While underweighting Japan was a
big positive,
<PAGE>
underweighting the U.K. was not advantageous when taking currency gains into
consideration. However, since we did not hedge any of our U.K. position, but did
partially hedge our Continental European stocks, the effect of underweighting
the U.K. was somewhat muted.
Underweighting Japan has become a losing strategy recently. The newly found
strength in the Japanese equity market can be explained by positive domestic
developments and by the deterioration of fundamentals in many other Asian
markets such as Thailand, Korea and the Philippines. Such markets have long
benefited from the flow of funds out of Japan but now the trend seems to be
reversing. In consequence, we recently increased our weighting in Japan from 8%
to 17%, which is still below EAFE's 29% weighting. Should more positive
developments come out of Japan we may increase our weighting further.
Emerging markets were a mixed bag. While we were hurt by the
underperformance of Indonesia, Korea, Malaysia, the Philippines, and Thailand,
we were more than compensated by our gains in Central Europe and Russia, Greece,
Hong Kong (especially 'red chips'), India, Latin America, and Taiwan. We lean
towards underweighting Asia ex-Hong Kong as the countries in the region digest
the twin problem of a strong U.S. dollar (especially against the yen) and
excessive real estate lending.
The U.S. dollar rose 12.9% and 20.9% versus the deutschemark and yen
respectively over the past year, and 14% and 11.4% over the past 6 months. The
Equity Fund hedged approximately 20% of its foreign assets back into U.S.
dollars to reduce the currency risk. Currency hedging will continue to be used
as needed, but it is done in moderation within prescribed ranges. We believe the
best long term results are unlikely to flow from an overly aggressive hedging
policy.
The U.S. dollar's rise has abated recently as perceived government backing
for a weaker local currency has appeared to soften. The strong dollar has helped
mainly exporters in Europe and Japan. Despite the strong dollar, Japanese and
European exporters continue to build capacity overseas instead of investing
domestically. Being global has the side effect of diminishing corporations'
national identity. Globalization means decentralization. Companies diversify
their operations overseas in order to reduce currency risk by matching revenues
with costs, to avoid future trade tensions and to be close to the ultimate
customer.
Our industry bias remains tilted towards financials, defensive issues and
selected growth stocks. The very low interest rates in Europe and Japan may
produce a mild recovery at best. In an era of very low interest rates, European
companies have been deleveraging and hiring fewer people. Net debt as a
percentage of equity was 31% in 1995, 28% in 1996 and is expected to reach 22%
and 14% in 1997 and 1998 respectively. Labor costs as a percentage of sales were
roughly 20.8% in 1995, 20.3% in 1996, and are expected to reach 20% and 19.4% in
1997 and 1998, respectively. If it were not for rigid labor laws, such labor
cost figures would have been much lower. The response of corporations to lower
interest rates is counter-intuitive at first, but given that Europe and Japan's
problems were more structural than cyclical, the behavioral response of
corporations is well understood.
In this new world order, trade-barriers are being lowered and competition
has been intensifying year after year. Corporations with market leadership and
premium products will succeed and prosper. We are significantly increasing our
exposure to corporations with a global and sustainable competitive advantage.
In conclusion, I would like to thank the Funds' advisers for their continued
excellent work and our shareholders for their loyalty. I am especially pleased
to note the significant increase in the assets of the BJB International Equity
Fund, reflective of its steadily improving track record.
Sincerely,
/s/ David E. Bodner
David E. Bodner
President
June 13, 1997
2
<PAGE>
BJB INVESTMENT FUNDS
BJB GLOBAL INCOME FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
FACE VALUE
CURRENCY VALUE (NOTE 1)
- --------- ------------- -----------
<S> <C> <C> <C>
FOREIGN GOVERNMENT BONDS -- 35.3%
CANADA-6.8%
Canada-Global Bond,
USD 275,000 6.750% due 8/28/2006............................................................ $ 270,875
Province of Alberta,
USD 400,000 7.625% due 11/05/1998........................................................... 406,400
Province of Ontario,
USD 330,000 7.375% due 1/27/2003............................................................ 336,831
-----------
1,014,106
-----------
UNITED KINGDOM-4.7%
United Kingdom Gilts,
GBP 275,000 10.000% due 2/26/2001........................................................... 487,503
GBP 125,000 8.500% due 12/07/2005............................................................. 216,526
-----------
704,029
-----------
AUSTRALIA-4.5%
Government of Australia,
AUD 750,000 10.000% due 2/15/2006........................................................... 663,555
-----------
NEW ZEALAND-4.1%
New Zealand Government,
NZD 140,000 8.000% due 2/15/2001.............................................................. 98,114
NZD 490,000 8.000% due 4/15/2004.............................................................. 340,854
NZD 240,000 8.000% due 11/15/2006............................................................. 167,448
-----------
606,416
-----------
DENMARK-3.3%
Kingdom of Denmark,
DKK 3,070,000 7.000% due 12/15/2004........................................................... 486,268
-----------
ITALY-3.0%
Government of Italy,
ITL 490,000,000 8.500% due 8/01/1999.............................................................. 294,330
ITL 240,000,000 9.500% due 1/01/2005.............................................................. 154,932
-----------
449,262
-----------
</TABLE>
See Notes to Financial Statements.
3
<PAGE>
BJB INVESTMENT FUNDS
BJB GLOBAL INCOME FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
FACE VALUE
CURRENCY VALUE (NOTE 1)
- --------- ------------- -----------
FOREIGN GOVERNMENT BONDS -- CONTINUED
<S> <C> <C> <C>
SWEDEN-2.9%
Kingdom of Sweden,
SEK 900,000 10.250% due 5/05/2000............................................................. $ 129,452
SEK 1,000,000 13.000% due 6/15/2001............................................................. 159,468
SEK 1,200,000 6.500% due 10/25/2006............................................................. 145,838
-----------
434,758
-----------
GERMANY-2.3%
Deutschland BundesRepublic,
DEM 625,000 6.000% due 6/20/2016............................................................ 344,148
-----------
FRANCE-2.0%
Government of France (B-TAN),
FRF 1,700,000 4.500% due 10/12/1998........................................................... 294,624
-----------
SPAIN-1.7%
Government of Spain,
ESP 31,560,000 10.100% due 02/28/2001.......................................................... 246,642
-----------
TOTAL FOREIGN GOVERNMENT BONDS (COST $5,398,725).................................. 5,243,808
-----------
CORPORATE BONDS -- 9.8%
UNITED KINGDOM-4.7%
Smithkline Beecham-Euro Medium Term Note,
USD 700,000 7.375% due 11/10/1997........................................................... 703,500
-----------
UNITED STATES-2.8%
General Electric Capital Corp.,
USD 370,000 8.625% due 6/15/2008............................................................ 410,774
-----------
AUSTRALIA-2.3%
Telstra Corp. Ltd,
USD 360,000 6.500% due 11/28/2005........................................................... 342,720
-----------
TOTAL CORPORATE BONDS (COST $1,479,826)........................................... 1,456,994
-----------
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
BJB INVESTMENT FUNDS
BJB GLOBAL INCOME FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
FACE VALUE
CURRENCY VALUE (NOTE 1)
- --------- ------------- -----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 20.1%
<S> <C> <C> <C>
Federal Home Loan Mortgage Corporation,
USD 195,000 6.750% due 5/30/2006............................................................ $ 191,783
Federal National Mortgage Association:
USD 1,000,000 5.300% due 12/10/1998........................................................... 984,600
USD 1,000,000 6.250% due 8/12/2003.............................................................. 955,500
Government National Mortgage Association (Pass Through),
USD 867,815 7.500% due 9/15/2025............................................................ 860,357
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $2,940,126)........................ 2,992,240
-----------
U.S. TREASURY OBLIGATIONS -- 27.9%
U.S. Treasury Note
USD 500,000 5.875% due 2/15/2000.............................................................. 493,205
USD 535,000 6.625% due 6/30/2001.............................................................. 536,525
USD 400,000 6.625% due 3/31/2002.............................................................. 400,920
USD 1,000,000 5.875% due 2/15/2004.............................................................. 958,240
USD 475,000 7.000% due 7/15/2006.............................................................. 483,108
USD 600,000 6.500% due 10/15/2006............................................................. 590,412
USD 390,000 6.250% due 2/15/2007.............................................................. 377,571
U.S. Treasury Strip,
USD 400,000 6.490% due 2/15/2001............................................................ 314,000
-----------
TOTAL U.S. TREASURY OBLIGATIONS (COST $4,181,369)................................. 4,153,981
-----------
ASSET-BACKED SECURITIES -- 1.3%
UNITED STATES-1.3%
Toyota Auto Receivables Grantor Trust Series 1996-A,
USD 194,417 6.300% due 7/20/2001 (Cost $194,413)............................................ 194,660
-----------
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
BJB INVESTMENT FUNDS
BJB GLOBAL INCOME FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
FACE VALUE
CURRENCY VALUE (NOTE 1)
- --------- ------------- -----------
SHORT-TERM INVESTMENTS -- 9.0%
<S> <C> <C> <C>
USD 738,722
Investors Bank & Trust Company Repurchase Agreement, dated 4/30/1997, due
5/01/1997, with a maturity value of $738,823 and an effective yield of 4.93%,
collateralized by a Federal National Mortgage Association Obligation, with a rate
of 7.522%, a maturity date of 11/01/2026, and a market value of $776,633 (at
cost)............................................................................. $ 738,722
</TABLE>
<TABLE>
<S> <C> <C> <C>
USD 590,000
U.S. Treasury Bill,
4.798% due 7/31/97.............................................................. 582,230
-----------
TOTAL SHORT-TERM INVESTMENTS (COST $1,320,925).................................... 1,320,952
-----------
TOTAL INVESTMENTS -- 103.4% (COST $15,515,411)*................................... 15,362,635
OTHER ASSETS AND LIABILITIES (NET) -- (3.4%)...................................... (498,533)
-----------
NET ASSETS -- 100.0%.............................................................. $14,864,102
-----------
-----------
</TABLE>
* Aggregate cost for federal income tax purposes.
See Notes to Financial Statements.
6
<PAGE>
BJB INVESTMENT FUNDS
BJB GLOBAL INCOME FUND
SCHEDULE OF FORWARD FOREIGN EXCHANGE CONTRACTS
APRIL 30, 1997 (UNAUDITED)
FORWARD FOREIGN EXCHANGE CONTRACTS TO BUY
<TABLE>
<CAPTION>
CONTRACTS TO RECEIVE
--------------------
EXPIRATION LOCAL VALUE IN IN EXCHANGE NET UNREALIZED
DATE CURRENCY USD FOR USD APPRECIATION
- ---------- -------------------- -------- ----------- --------------
<S> <C> <C> <C> <C>
5/19/97 AUD 810,000 631,566 628,268 $ 3,298
--------------
Net unrealized appreciation of forward foreign
exchange contracts................................ $ 3,298
--------------
--------------
</TABLE>
FORWARD FOREIGN EXCHANGE CONTRACTS TO SELL
<TABLE>
<CAPTION>
CONTRACTS TO DELIVER
-------------------- NET UNREALIZED
EXPIRATION LOCAL VALUE IN IN EXCHANGE APPRECIATION
DATE CURRENCY USD FOR USD (DEPRECIATION)
- ---------- -------------------- -------- ----------- --------------
<S> <C> <C> <C> <C>
5/19/97 AUD 810,000 631,566 627,272 $ (4,294)
5/12/97 DEM 250,000 144,343 144,425 82
5/21/97 DEM 378,000 218,385 218,419 34
--------------
Net unrealized depreciation of forward foreign
exchange contracts................................ $ (4,178)
--------------
--------------
</TABLE>
FORWARD FOREIGN CROSS CURRENCY CONTRACTS
<TABLE>
<CAPTION>
CONTRACTS TO DELIVER CONTRACTS TO RECEIVE
-------------------- -------------------- NET UNREALIZED
EXPIRATION LOCAL VALUE IN LOCAL VALUE IN APPRECIATION
DATE CURRENCY USD CURRENCY USD (DEPRECIATION)
- ---------- -------------------- -------- -------------------- -------- --------------
<S> <C> <C> <C> <C> <C>
5/12/97 DEM 605,640 349,680 CAD 490,000 351,248 $ 1,568
5/21/97 ESP 31,929,660 218,271 DEM 378,000 218,385 114
5/13/97 SEK 1,994,553 254,643 CAD 359,055 257,401 2,758
5/13/97 FRF 1,502,601 257,419 SEK 1,994,553 254,643 (2,776)
5/12/97 SEK 1,119,533 142,924 DEM 250,000 144,343 1,419
7/09/97 ITL 627,600,000 365,406 DEM 607,975 352,530 (12,876)
7/09/97 DEM 600,000 347,906 ITL 627,600,000 365,406 17,500
--------------
Net unrealized appreciation of forward foreign exchange contracts...... $ 7,707
--------------
--------------
</TABLE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
GLOSSARY OF CURRENCIES
AUD -- Australian Dollar GBP -- British Pound Sterling
CAD -- Canadian Dollar ITL -- Italian Lira
DEM -- German Deutsche Mark NZD -- New Zealand Dollar
DKK -- Danish Krone SEK -- Swedish Krona
ESP -- Spanish Peseta USD -- United States Dollar
FRF -- French Franc
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------- --------- -----------
<S> <C> <C>
COMMON STOCKS -- 95.7%
FRANCE-11.2%
Accor SA.............................................................................. 1,085 $ 155,446
Banque National De Paris.............................................................. 2,700 115,077
Canal Plus............................................................................ 450 81,185
Carrefour Supermarche................................................................. 408 254,485
Cent Assurances Gen France............................................................ 3,000 97,515
Cie Generale des Eaux *............................................................... 2,110 293,627
Compagnie de Saint Goban.............................................................. 650 87,005
Compagnie Financiere de Paribas....................................................... 82 5,167
Credit National....................................................................... 1,900 106,997
Dassault Aviation SA.................................................................. 800 180,069
Dassault Systemes *................................................................... 3,000 184,040
ICOM Informatique SA *................................................................ 1,182 77,084
Lafarge Coppee........................................................................ 28 1,835
Lagardere Groupe...................................................................... 3,700 114,378
L'Oreal............................................................................... 949 336,411
LVMH Company.......................................................................... 435 106,103
MGI Coutier........................................................................... 2,900 138,989
Michelin, Class B (Registered)........................................................ 3,808 212,555
Rhone Polenc.......................................................................... 3,450 115,921
Sidel................................................................................. 1,040 74,624
Societe BIC SA........................................................................ 930 147,248
Societe Generale...................................................................... 1,300 145,527
Societe National Elf-Aquitaine........................................................ 2,100 203,451
ST Dupont *........................................................................... 5,000 138,989
Technip SA............................................................................ 1,225 129,373
Total SA-Class B...................................................................... 2,352 194,853
Valeo................................................................................. 3,005 185,170
-----------
3,883,124
-----------
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------- --------- -----------
COMMON STOCKS -- CONTINUED
<S> <C> <C>
JAPAN-9.9%
Autobacs Seven........................................................................ 1,000 $ 66,821
Canon Sales Co. Inc................................................................... 12,400 256,667
Circle K Japan Co Ltd................................................................. 3,960 181,707
Daihatsu Motor Co Ltd................................................................. 16,000 81,728
Daiichi Pharmaceutical................................................................ 13,000 202,589
DDI Corporation....................................................................... 40 265,397
Fuji Photo Film....................................................................... 7,000 267,207
Hitachi Ltd........................................................................... 10,000 90,512
Honda Motor Co Ltd.................................................................... 9,000 279,091
Jusco Co.............................................................................. 5,000 153,477
Kawasaki Steel........................................................................ 44,000 129,865
Kokusai Denshin Denwa Co. Ltd......................................................... 1,400 73,386
Mitsubishi Heavy...................................................................... 11,000 72,551
Mitsubishi Motor Corp................................................................. 29,000 200,858
Nintendo Corp Ltd..................................................................... 3,500 255,637
Promise Co Ltd........................................................................ 6,200 256,188
Rohm Corp............................................................................. 2,000 152,375
Sankyo Co Ltd......................................................................... 5,000 133,800
Sony Corp............................................................................. 3,400 247,798
Toshiba Corporation................................................................... 14,000 78,454
-----------
3,446,108
-----------
UNITED KINGDOM-9.4%
3I Group Plc.......................................................................... 10,000 82,116
British Aerospace Plc................................................................. 7,149 151,949
British Airport Authority Plc......................................................... 17,450 144,708
British Airways Plc................................................................... 19,094 218,550
British Bio-Technology Group *........................................................ 27,000 105,714
British Petroleum Co Plc.............................................................. 10,657 122,326
British Telecommunications Plc........................................................ 24,000 176,068
Colt Telecom Group Plc *.............................................................. 10,500 187,688
CRH Plc............................................................................... 7,250 72,117
Esprit Telecom Group Plc ADR *........................................................ 8,300 47,725
Freepages Group Plc ADR *............................................................. 4,900 65,231
General Electric Plc.................................................................. 12,000 71,400
Glaxo Wellcome Plc.................................................................... 9,500 186,902
</TABLE>
See Notes to Financial Statements.
9
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------- --------- -----------
COMMON STOCKS -- CONTINUED
<S> <C> <C>
UNITED KINGDOM -- CONTINUED
Granada Group Plc..................................................................... 7,119 $ 102,721
Hays Plc.............................................................................. 16,500 146,192
HSBC Holdings Plc..................................................................... 5,088 133,633
Ladbroke Group........................................................................ 23,000 86,323
Lloyds TSB Group Plc.................................................................. 16,000 146,302
London Clubs International............................................................ 28,000 174,317
Mercury Asset Management.............................................................. 7,100 153,843
Northern Leisure Plc.................................................................. 35,500 143,886
Rentokil Initial Plc *................................................................ 11,000 72,138
Rolls Royce Plc *..................................................................... 17,128 67,339
Royal & Sun Alliance Insurance Group.................................................. 15,233 120,642
Sage Group Plc........................................................................ 12,500 130,004
Siebe Plc............................................................................. 7,193 106,471
-----------
3,216,305
-----------
SWITZERLAND-8.0%
ABB AG................................................................................ 80 96,814
Adecco SA *........................................................................... 650 216,814
Ares-Serono Group Class B............................................................. 100 134,102
Ciba Specialty Chemicals AG *......................................................... 120 10,332
CS Holdings (Registered).............................................................. 1,880 211,580
Danzas Holding........................................................................ 700 135,254
Holderbank Finance Glarus Class B..................................................... 260 202,183
Kudelski SA *......................................................................... 50 139,322
Kuoni Reisen Holding (Registered)..................................................... 43 123,607
Nestle SA (Registered)................................................................ 223 270,624
Novartis AG (Registered).............................................................. 197 259,372
Roche Holdings AG..................................................................... 282 293,254
Schweizerische Rueckversicherungs-Gesellschaft (Registered)........................... 178 205,877
Swiss Bank Corp....................................................................... 515 112,427
Swissair (Registered) *............................................................... 162 141,681
Zurich Versicherungs (Registered)..................................................... 550 180,475
-----------
2,733,718
-----------
</TABLE>
See Notes to Financial Statements.
10
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------- --------- -----------
COMMON STOCKS -- CONTINUED
<S> <C> <C>
GERMANY-6.9%
Adidas................................................................................ 2,250 $ 234,287
Allianz AG Holdings *................................................................. 30 5,815
Altana Ind-Aktien..................................................................... 150 115,954
Bayer AG *............................................................................ 4,000 158,989
Daimler Benz AG *..................................................................... 1,800 133,537
Deutsche Bank AG...................................................................... 3,000 158,182
Fresenius AG.......................................................................... 650 146,053
Fresenius Medical Care ADR *.......................................................... 3,000 88,125
Hoechst AG............................................................................ 4,000 156,913
MAN AG................................................................................ 850 244,685
Mannesmann AG......................................................................... 540 212,143
Plettac AG............................................................................ 900 198,333
Siemens AG............................................................................ 1,000 54,112
Veba AG............................................................................... 3,900 200,686
Volkswagen AG......................................................................... 400 254,060
-----------
2,361,874
-----------
NETHERLANDS-5.6%
Akzo Nobel............................................................................ 1,440 185,378
ASM Lithography Holding NV *.......................................................... 2,115 157,832
Baan Company NV *..................................................................... 3,000 157,097
ING Groep NV.......................................................................... 5,815 228,156
Koninklijke Ahold NV.................................................................. 1,700 115,964
Koninklijke Hoogovens................................................................. 4,450 203,129
Philips Gloeilampen Gem Bezit......................................................... 4,900 255,587
Ranstad Holdings NV................................................................... 1,700 152,584
Telegraaf Holdingsmij-CVA............................................................. 1,672 34,302
Unilever Ltd (ORD).................................................................... 6,600 173,612
Vendex International NV............................................................... 3,016 143,085
Wolters Kluwer NV..................................................................... 900 106,583
-----------
1,913,309
-----------
</TABLE>
See Notes to Financial Statements.
11
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------- --------- -----------
COMMON STOCKS -- CONTINUED
<S> <C> <C>
HONG KONG-4.5%
Cheung Kong Infrastructure * (a)...................................................... 32,000 $ 90,673
Cheung Kong........................................................................... 8,000 70,225
China Resources Beijing Land *........................................................ 220,000 144,840
China Resources Enterprises........................................................... 34,000 93,926
China-HK Photo Product Hld Ltd........................................................ 90,000 28,174
Citic Pacific Limited................................................................. 19,000 102,769
Gold Lion Holdings Ltd................................................................ 120,000 70,871
HKR International Ltd................................................................. 54,560 67,262
HSBC Holdings Plc..................................................................... 8,258 208,707
Hutchison Whampoa..................................................................... 12,000 89,072
Nam Fong International Holdings Ltd * (a)............................................. 338,000 135,261
New World Development................................................................. 12,301 70,981
New World Infrastructure *............................................................ 71,000 200,723
Shanghai Industrail Holdings Ltd...................................................... 17,000 95,682
Sun Hung Kai Properties Ltd........................................................... 8,000 86,749
-----------
1,555,915
-----------
ITALY-4.4%
Bulgari............................................................................... 5,500 99,349
ENI SPA............................................................................... 42,000 213,631
Fila Holdings SPA..................................................................... 3,600 155,700
Gucci Group........................................................................... 3,460 240,470
Istituto Mobiliare Italiano........................................................... 21,800 185,155
Seat SPA *............................................................................ 35,000 6,936
Seat *................................................................................ 489,000 150,732
Stet D Risp Port (Non Convertible).................................................... 62,400 230,835
Telecom Italia Mobile................................................................. 70,000 219,407
-----------
1,502,215
-----------
FINLAND-3.6%
Hartwall Oy AB........................................................................ 1,090 49,203
Konecranes International.............................................................. 3,435 131,963
Nokia (ORD)........................................................................... 3,000 185,267
Orion AS Class B...................................................................... 5,550 207,885
Raision Tehtaat Oy.................................................................... 2,760 228,498
</TABLE>
See Notes to Financial Statements.
12
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------- --------- -----------
COMMON STOCKS -- CONTINUED
<S> <C> <C>
FINLAND -- CONTINUED
Tt Tieto Oy Class B................................................................... 1,100 $ 83,461
Upm-Kymmeme........................................................................... 6,000 136,573
Valmet Class A........................................................................ 11,800 199,462
-----------
1,222,312
-----------
SWEDEN-3.5%
Ericsson AB, Class B.................................................................. 3,960 125,318
Fastighets AB Hufvudstaden Class A.................................................... 20,500 136,027
Lindex AB............................................................................. 5,850 125,783
Nordbanken AB......................................................................... 5,800 178,366
Nordictel Holdings AB *............................................................... 3,300 63,164
OM Gruppen AB......................................................................... 3,586 104,331
Sandvik AB-Class B Fria............................................................... 4,500 110,825
Scala AB.............................................................................. 925 48,394
Sparbanken Sverige.................................................................... 12,500 223,308
Tornet Fastighets AB.................................................................. 621 6,736
Tv 4 AB............................................................................... 4,500 77,520
-----------
1,199,772
-----------
SPAIN-3.2%
Banco Central Hispano................................................................. 5,340 162,432
Banco Popular Espanola (Registered)................................................... 974 206,391
Centros Comerciales Pryca............................................................. 5,200 90,283
Empresa Nacional de Electricidad...................................................... 1,500 104,788
General De Aguas D'Barcelona.......................................................... 1,843 71,808
Repsol SA............................................................................. 2,000 83,803
Tabacalera Spani...................................................................... 4,059 203,651
Telefonica de Espana.................................................................. 7,000 179,193
-----------
1,102,349
-----------
</TABLE>
See Notes to Financial Statements.
13
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------- --------- -----------
COMMON STOCKS -- CONTINUED
<S> <C> <C>
PORTUGAL-3.0%
Banco Espirito Santo (Registered)..................................................... 7,800 $ 153,517
Cimentos de Portugal SA............................................................... 2,000 42,984
Filmes Lusomundo SA *................................................................. 4,400 37,054
Jeronimo Martins *.................................................................... 3,299 197,159
Portugal Telecom...................................................................... 6,250 230,038
Sociedaded de Investimento e Gestao SGPS SA Semapa.................................... 7,300 156,051
Telecel Comunicacoes Pessoai SA *..................................................... 2,645 227,535
-----------
1,044,338
-----------
CANADA-2.5%
Barrick Gold Corp..................................................................... 3,000 67,125
BCE Inc............................................................................... 3,140 146,403
Bombardier Inc Class B................................................................ 7,560 153,230
Canadian Pacific...................................................................... 7,500 182,813
Northern Telecom Communications *..................................................... 1,960 142,622
Royal Bank of Canada.................................................................. 3,740 149,600
-----------
841,793
-----------
NORWAY-1.8%
Braathens Safe ASA *.................................................................. 10,650 112,164
Den Norske Bank ASA................................................................... 34,650 125,535
Ekjop................................................................................. 2,310 59,037
Gresvig ASA........................................................................... 5,750 90,837
Kvaerner ASA.......................................................................... 3,100 154,101
Norsk Hydro........................................................................... 1,800 87,709
-----------
629,383
-----------
BRAZIL-1.6%
Cia Cervejaria Brahma................................................................. 125,000 84,983
Electrobras PN ADR.................................................................... 3,300 75,521
Telecomunicacoes Brasileiras *........................................................ 3,400 390,150
-----------
550,654
-----------
</TABLE>
See Notes to Financial Statements.
14
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------- --------- -----------
COMMON STOCKS -- CONTINUED
<S> <C> <C>
AUSTRALIA-1.3%
Aberfoyle Limited..................................................................... 15,000 $ 42,697
Australia & New Zealand Bank Group.................................................... 25,192 160,901
Lend Lease Corp Ltd................................................................... 45 861
Sydney Harbor Casino Ltd *............................................................ 60,000 101,069
The News Corporation Ltd.............................................................. 19,154 88,279
Western Mining Corp Holding Ltd....................................................... 7,609 45,097
-----------
438,904
-----------
BELGIUM-1.2%
Colruyt SA............................................................................ 180 74,494
Credit Communal Hldg Dexia *.......................................................... 2,000 198,538
Generale De Banque SA *............................................................... 145 60,110
Telinfo SA *.......................................................................... 1,600 84,784
-----------
417,926
-----------
AUSTRIA-1.1%
Mayr-Melnhof *........................................................................ 2,000 94,602
Oemv AG............................................................................... 1,270 138,468
Strabag Oesterreich AG................................................................ 2,400 151,494
-----------
384,564
-----------
MEXICO-1.1%
Empressa Ica Sociedad-Sponsored ADR................................................... 1,900 28,025
Grupo Financieri Banamex *............................................................ 34,500 73,862
Grupo Posadas SA-Class L *............................................................ 180,000 82,967
Kimberly Clark........................................................................ 16,500 60,053
Panamerican Beverages Inc Class A..................................................... 2,560 74,240
Telefonos de Mexico ADR............................................................... 1,500 61,875
-----------
381,022
-----------
GREECE-0.9%
Intracom SA *......................................................................... 2,510 108,027
National Bank of Greece............................................................... 2,013 213,395
-----------
321,422
-----------
</TABLE>
See Notes to Financial Statements.
15
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------- --------- -----------
COMMON STOCKS -- CONTINUED
<S> <C> <C>
PERU-0.9%
Banco Wiese-Sponsored ADR............................................................. 4,600 $ 29,900
Cementos Lima SA-Trabajo.............................................................. 19,314 35,149
Cia De Minas Buenaventura............................................................. 2,698 25,360
Cia De Minas Buenaventura-Class B..................................................... 674 6,904
Corp Banco Credito Del Peru........................................................... 4,068 85,428
Luz Del Sur SA Class B................................................................ 61,000 72,559
Telefonica de Peru.................................................................... 22,000 52,998
-----------
308,298
-----------
IRELAND-0.9%
Bank of Ireland....................................................................... 15,016 159,688
Elan Corp Plc ADR *................................................................... 4,150 141,100
-----------
300,788
-----------
DENMARK-0.9%
Christian Hansen Holdings Class B..................................................... 1,100 133,384
Magasin Wessel & Vett *............................................................... 720 51,838
Oticon Holding........................................................................ 700 113,528
-----------
298,750
-----------
MALAYSIA-0.8%
Arab-Malaysian Merchant Bank.......................................................... 8,000 53,216
Hicom Holdings Berhad................................................................. 27,000 59,689
IOI Properties Berhad................................................................. 22,000 52,579
Lion Land Berhad...................................................................... 50,000 49,393
Malayan Banking Berhad................................................................ 6,000 59,749
-----------
274,626
-----------
INDIA-0.8%
State Bank of India-GDR * (a)......................................................... 6,000 84,900
Videsh Sanchar Nigam Ltd. GDR * (a)................................................... 10,000 176,500
-----------
261,400
-----------
RUSSIA-0.6%
Lukoil Oil Co ADR..................................................................... 3,530 201,210
-----------
</TABLE>
See Notes to Financial Statements.
16
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------- --------- -----------
COMMON STOCKS -- CONTINUED
<S> <C> <C>
CHILE-0.6%
Quimica Y Minera Chile ADR............................................................ 1,850 $ 109,613
Vina Concha Y Toro.................................................................... 2,500 81,563
-----------
191,176
-----------
INDONESIA-0.6%
Pt Bank International Indonesia *..................................................... 88,500 63,735
Pt Citra Marga Nusaphala Persada...................................................... 73,000 63,837
Pt Darya Varia Laboratoria-Foreign.................................................... 29,120 35,351
Pt Hm Sampoerna-Foreign *............................................................. 7,000 28,158
-----------
191,081
-----------
COLOMBIA-0.5%
Banco Ganadero SA ADR................................................................. 3,125 86,328
Cementos Argos SA..................................................................... 10,550 86,311
-----------
172,639
-----------
VENEZUELA-0.4%
Cia Anonima Telefono de Venezuela ADR *............................................... 5,000 150,000
-----------
ARGENTINA-0.4%
Banco Frances Rio Plata ADR........................................................... 2,470 75,026
Costanera ADR (a)..................................................................... 2,100 74,424
-----------
149,450
-----------
PAKISTAN-0.4%
Hub Power Co. Ltd. GDR *.............................................................. 76,000 71,179
Pakistan State Oil Co Ltd............................................................. 9,900 74,620
-----------
145,799
-----------
POLAND-0.4%
Bank Rozwoju Eksportu SA *............................................................ 1,300 31,031
Electrim SA........................................................................... 5,000 44,894
Gorazdze *............................................................................ 800 26,810
Mostostal-Export SA................................................................... 10,200 42,245
-----------
144,980
-----------
</TABLE>
See Notes to Financial Statements.
17
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------- --------- -----------
COMMON STOCKS -- CONTINUED
<S> <C> <C>
SOUTH AFRICA-0.4%
Barlow Limited........................................................................ 3,200 $ 35,264
Nedcor Ltd............................................................................ 2,872 58,454
South African Breweries Ltd........................................................... 1,321 38,918
-----------
132,636
-----------
THAILAND-0.4%
Advanced Info Services (FB)........................................................... 5,600 38,051
Land & House Plc (Foreign Shares)..................................................... 3,800 10,837
Siam Cement Co Ltd-Foreign (Registered)............................................... 1,300 34,836
Siam Commercial Bank (Foreign Shares)................................................. 6,300 36,899
-----------
120,623
-----------
NEW ZEALAND-0.3%
Carter Holt Harvey Ltd................................................................ 24,000 53,128
Lion Nathan........................................................................... 27,000 64,820
-----------
117,948
-----------
TURKEY-0.3%
Eregli Demir Ve Celik Fabrik.......................................................... 240,000 23,455
Hurriyet Gazeteci..................................................................... 600,000 34,076
Petkim Petrokimya Holding AS *........................................................ 34,000 13,040
Yapi Ve Kredi Bankasi................................................................. 1,100,000 46,246
-----------
116,817
-----------
MULTI-NATIONAL-0.3%
Euronet Services, Inc. *.............................................................. 9,200 115,575
-----------
MAURITIUS-0.3%
New Mauritius Hotels Ltd. *........................................................... 23,500 41,498
State Bank Of Mauritius Ltd........................................................... 72,000 45,659
-----------
87,157
-----------
PHILIPPINES-0.2%
San Miguel Corporation, Class B (ORD)................................................. 16,500 47,554
Southeast Asia Cement Holdings *...................................................... 381,600 17,655
-----------
65,209
-----------
</TABLE>
See Notes to Financial Statements.
18
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------- --------- -----------
COMMON STOCKS -- CONTINUED
<S> <C> <C>
CZECH REPUBLIC-0.2%
SPT Telecom AS *...................................................................... 570 $ 60,209
-----------
LUXEMBOURG-0.2%
Audiofina............................................................................. 1,175 51,585
-----------
SOUTH KOREA-0.1%
Korea Electric Power Corp ADR......................................................... 2,500 42,500
-----------
HUNGARY-0.1%
Mol Magyar Olaj-Es Gazipari........................................................... 1,950 35,598
-----------
TOTAL COMMON STOCKS (Cost $30,156,966) 32,883,061
-----------
INVESTMENT FUNDS-1.0%
TAIWAN-0.4%
Taipei Fund-Units *................................................................... 1,200 138,828
-----------
POLAND-0.2%
Polish National Investment Fund *..................................................... 1,500 65,207
-----------
SOUTH KOREA-0.2%
Korea Fund............................................................................ 4,327 55,710
-----------
MULTI-NATIONAL-0.2%
Morgan Stanely Africa Investments Fund, Inc........................................... 3,100 52,700
-----------
TOTAL INVESTMENT FUNDS (Cost $286,209)................................................ 312,445
-----------
RIGHTS & WARRANTS-0.2%
HUNGARY-0.2%
Egis Rights........................................................................... 780 49,528
Pick Szeged Rights.................................................................... 526 31,672
-----------
81,200
-----------
BRAZIL-0.0%
Brahma Warrants, expires 4/30/2003 *.................................................. 9,993 707
-----------
SWITZERLAND-0.0%
Roche Holdings Warrants, expires 5/05/1998 *.......................................... 5 298
-----------
</TABLE>
See Notes to Financial Statements.
19
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS -- (CONTINUED)
APRIL 30, 1997 (UNAUDITED)
(PERCENTAGE OF NET ASSETS)
<TABLE>
<CAPTION>
MARKET
SHARE VALUE
DESCRIPTION AMOUNT (NOTE 1)
- -------------------------------------------------------------------------------------- --------- -----------
RIGHTS & WARRANTS -- CONTINUED
<S> <C> <C>
GERMANY-0.0%
Daimler Benz AG Rights *.............................................................. 1,800 $ 145
-----------
TOTAL RIGHTS & WARRANTS (Cost $49,379)................................................ 82,350
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR
VALUE
---------
<S> <C> <C>
CORPORATE CONVERTIBLE BOND-0.0%
SWITZERLAND-0.0%
Winterthur--(Virgin Island)...................2.500% 12/31/1998 (Cost $13,199) CHF 15,360 16,818
-----------
</TABLE>
<TABLE>
<CAPTION>
FACE MARKET
CURRENCY VALUE VALUE
- -------- --------- -----------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS-18.5%
USD 6,345,879 Investors Bank & Trust Company Repurchase Agreement, dated 4/30/1997, due
5/01/1997, with a maturity value of $6,346,748 and an effective yield of
4.93%, collateralized by a Federal National Mortgage Association
Obligation, with a rate of 7.396%, a maturity of 10/01/2023, and a market
value of $6,663,382
(at cost)................................................................. $ 6,345,879
-----------
TOTAL INVESTMENTS-115.4%
(Cost $36,851,632) **..................................................... 39,640,553
Other Assets and Liabilities (net)-(15.4%)................................ (5,291,695)
-----------
TOTAL NET ASSETS-100.0%................................................... $34,348,858
-----------
-----------
PORTFOLIO FOOTNOTES:
</TABLE>
<TABLE>
<S> <C> <C> <C>
ADR American Depositary Receipt
ORD Ordinary Shares
GDR Global Depository Receipt
* Non-income producing security.
** Aggregate cost for federal income tax purposes.
(a) Securities that may be resold to 'qualified institutional buyers'
under Rule 144A or securities offered pursuant to Section 4 (2) of
the Securities Act of 1933, as amended. These securities have been
determined to be liquid under guidelines established by the Board
of Trustees.
</TABLE>
See Notes to Financial Statements.
20
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
PORTFOLIO OF INVESTMENTS--INDUSTRY SECTOR (UNAUDITED)
APRIL 30, 1997
(PERCENTAGE OF NET ASSETS)
At April 30, 1997 sector diversification of the fund's equity investments was
as follows:
<TABLE>
<CAPTION>
MARKET
% OF NET VALUE
ASSETS (NOTE 1)
---------- -----------
<S> <C> <C>
INDUSTRY SECTOR:
Banking...................................................................................... 13.1% $ 4,525,544
Communications............................................................................... 9.8 3,349,509
Beverages, Food & Tobacco.................................................................... 5.6 1,922,171
Retailers.................................................................................... 5.5 1,895,699
Financial Services........................................................................... 4.7 1,606,738
Commercial Services.......................................................................... 4.4 1,500,458
Automotive................................................................................... 4.0 1,376,970
Heavy Machinery.............................................................................. 3.7 1,270,298
Oil & Gas.................................................................................... 3.4 1,176,619
Transportation............................................................................... 3.3 1,144,981
Health....................................................................................... 3.2 1,094,708
Chemicals.................................................................................... 3.0 1,035,947
Pharmaceuticals.............................................................................. 2.4 817,996
Real Estate.................................................................................. 2.3 808,161
Industrial................................................................................... 2.0 686,077
Telephone Systems............................................................................ 1.8 630,331
Entertainment & Leisure...................................................................... 1.7 569,459
Utilities.................................................................................... 1.6 565,581
Forest Products & Paper...................................................................... 1.6 543,818
Building Materials........................................................................... 1.6 538,810
Insurance.................................................................................... 1.5 529,627
Electronics.................................................................................. 1.5 517,161
Metals & Mining.............................................................................. 1.5 500,935
Lodging...................................................................................... 1.3 446,502
Computer Software & Processing............................................................... 1.3 445,899
Electrical Equipment......................................................................... 1.1 369,713
Construction................................................................................. 1.0 336,458
Cosmetics & Personal Care.................................................................... 1.0 336,411
Media--Broadcasting & Publishing............................................................. 1.0 332,645
Textiles, Clothing & Fabrics................................................................. 0.9 325,920
Construction................................................................................. 0.7 240,168
Aerospace & Defense.......................................................................... 0.7 223,349
Environmental Controls....................................................................... 0.2 72,138
Other........................................................................................ 4.5 1,557,873
---------- -----------
TOTAL INVESTMENTS (EXCLUDES SHORT-TERM INVESTMENTS)............................................ 96.9 33,294,674
OTHER ASSETS AND LIABILITIES (NET)............................................................. 3.1 1,054,184
---------- -----------
NET ASSETS..................................................................................... 100.0% $34,348,858
---------- -----------
---------- -----------
</TABLE>
See Notes to Financial Statements.
21
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
SCHEDULE OF FORWARD FOREIGN EXCHANGE CONTRACTS
APRIL 30, 1997 (UNAUDITED)
FORWARD FOREIGN EXCHANGE CONTRACTS TO SELL
<TABLE>
<CAPTION>
CONTRACTS TO DELIVER
------------------------------------
EXPIRATION LOCAL VALUE IN IN EXCHANGE NET UNREALIZED
DATE CURRENCY USD FOR USD APPRECIATION
- ---------- ----------------------- --------- ----------- --------------
<S> <C> <C> <C> <C>
5/30/97 CHF 2,226,600 1,514,684 1,517,378 $ 2,694
5/30/97 DEM 829,600 479,596 480,454 858
5/30/97 FRF 11,295,300 1,937,235 1,940,273 3,038
5/30/97 JPY 144,560,000 1,142,816 1,145,084 2,268
--------------
Net unrealized appreciation of forward foreign exchange
contracts......................................................... $ 8,858
--------------
--------------
</TABLE>
GLOSSARY OF CURRENCIES
CHF -- Swiss Franc
DEM -- German Deutschemark
FRF -- French Franc
JPY -- Japanese Yen
See Notes to Financial Statements.
22
<PAGE>
BJB INVESTMENT FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
BJB BJB
GLOBAL INCOME INTERNATIONAL EQUITY
FUND FUND
------------- --------------------
<S> <C> <C>
ASSETS:
Investments in securities, at value (Cost $14,776,689 and $30,505,753,
respectively).................................................................... $14,623,913 $ 33,294,674
Repurchase agreements, at cost...................................................... 738,722 6,345,879
Cash and foreign currency, at value (Cost $156,806 and $29,940, respectively)....... 140,400 28,041
Receivables:
Investments sold................................................................. 282,798 --
Fund shares sold................................................................. -- 2,612
Interest and dividends........................................................... 299,730 92,418
Tax reclaim...................................................................... -- 18,588
Unrealized appreciation of forward foreign exchange contracts.................... 26,773 8,858
Other Assets:
Unamortized organization costs (Note 6).......................................... 3,725 6,984
Prepaid expense.................................................................. 863 3,469
------------- --------------------
Total Assets..................................................................... 16,116,924 39,801,523
------------- --------------------
LIABILITIES:
Payables:
Investments purchased............................................................ 1,153,754 5,321,902
Investment advisory fee payable (Note 2)......................................... 23,938 34,638
Custody and administration fee payable........................................... 21,368 41,851
Unrealized depreciation of forward foreign exchange contracts.................... 19,946 --
Distribution and shareholder servicing fees payable (Note 3)..................... 9,187 17,295
Accrued expenses and other payables.............................................. 24,629 36,979
------------- --------------------
Total Liabilities................................................................ 1,252,822 5,452,665
------------- --------------------
NET ASSETS............................................................................ $14,864,102 $ 34,348,858
------------- --------------------
------------- --------------------
NET ASSETS CONSIST OF:
Par value........................................................................... $ 1,286 $ 2,712
Paid in capital in excess of par value.............................................. 15,978,292 35,322,121
Undistributed net investment income (Distributions in excess of income)............. 34,544 (110,705)
Accumulated net realized loss on investments sold, forward foreign exchange
contracts and foreign currency transactions...................................... (980,341) (3,679,503)
Net unrealized appreciation (depreciation) on investments, forward foreign exchange
contracts, foreign currency transactions and net other assets.................... (169,679) 2,814,233
------------- --------------------
NET ASSETS............................................................................ $14,864,102 $ 34,348,858
------------- --------------------
------------- --------------------
SHARES OUTSTANDING.................................................................... 1,286,106 2,712,129
------------- --------------------
------------- --------------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE........................................ $ 11.56 $ 12.66
------------- --------------------
------------- --------------------
</TABLE>
See Notes to Financial Statements.
23
<PAGE>
BJB INVESTMENT FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
BJB BJB
GLOBAL INCOME INTERNATIONAL EQUITY
FUND FUND
------------- --------------------
<S> <C> <C>
INVESTMENT INCOME (LOSS):
Interest............................................................................ $ 497,388 $ 31,807
Dividends+.......................................................................... -- 187,755
------------- -----------
497,388 219,562
EXPENSES:
Investment advisory fee (Note 2).................................................... 48,052 123,756
Custody and administration fees..................................................... 32,699 91,824
Distribution and shareholder servicing fees (Note 3)................................ 18,482 30,939
Transfer agent fees................................................................. 11,522 11,724
Amortization of organization costs (Note 6)......................................... 11,255 2,753
Insurance premium expense........................................................... 8,132 4,661
Trustees' fees and expenses (Note 2)................................................ 5,951 5,951
Shareholder reports................................................................. 5,466 14,220
Registration and filing fees........................................................ 3,988 4,502
Professional fees................................................................... 3,022 33,217
Miscellaneous fees.................................................................. 523 523
Fees waived by investment adviser (Note 2).......................................... -- (61,878)
------------- -----------
Total Expenses................................................................... 149,092 262,192
------------- -----------
NET INVESTMENT INCOME (LOSS).......................................................... 348,296 (42,630)
------------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTES 1 AND 4):
Realized gain (loss) on:
Security transactions............................................................ 53,679 119,069
Forward foreign exchange contracts............................................... 54,394 758,481
Foreign currency transactions.................................................... (19,840) 5,356
------------- -----------
Net realized gain on investments............................................... 88,233 882,906
------------- -----------
Net change in unrealized appreciation (depreciation) of:
Securities....................................................................... (549,775) 1,525,836
Forward foreign exchange contracts............................................... 18,130 (26,337)
Currencies and net other assets.................................................. (27,617) 17,352
------------- -----------
Net change in unrealized appreciation (depreciation) of investments............ (559,262) 1,516,851
------------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................................ (471,029) 2,399,757
------------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....................... $(122,733) $2,357,127
------------- -----------
------------- -----------
</TABLE>
- ------------------
+ Net of foreign withholding tax of $21,413 for the Equity Fund.
See Notes to Financial Statements.
24
<PAGE>
BJB INVESTMENT FUNDS
BJB GLOBAL INCOME FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR
APRIL 30, 1997 ENDED
(UNAUDITED) OCTOBER 31, 1996
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income................................................................. $ 348,296 $ 732,684
Net realized gain on investments...................................................... 88,233 570,123
Net change in unrealized depreciation of investments.................................. (559,262) (118,640)
---------------- ----------------
Net increase (decrease) in net assets resulting from operations....................... (122,733) 1,184,167
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............................................................... (454,565) (1,396,952)
FUND SHARE TRANSACTIONS:
Net increase (decrease) from Fund share transactions (Note 5)....................... 857,168 (2,529,620)
---------------- ----------------
Net increase (decrease) in net assets............................................... 279,870 (2,742,405)
NET ASSETS:
Beginning of period................................................................... 14,584,232 17,326,637
---------------- ----------------
End of period (including undistributed net investment income of $34,544 and $140,813
respectively)....................................................................... $ 14,864,102 $ 14,584,232
---------------- ----------------
---------------- ----------------
</TABLE>
See Notes to Financial Statements.
25
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR
APRIL 30, 1997 ENDED
(UNAUDITED) OCTOBER 31, 1996
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment loss................................................................... $ (42,630) $ (67,871)
Net realized gain on investments...................................................... 882,906 288,180
Net change in unrealized appreciation of investments.................................. 1,516,851 1,079,084
---------------- ----------------
Net increase in net assets resulting from operations.................................. 2,357,127 1,299,393
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income................................................................. (67,184) --
FUND SHARE TRANSACTIONS:
Net increase from Fund share transactions (Note 5):................................. 12,897,728 8,218,480
---------------- ----------------
Net increase in net assets.......................................................... 15,187,671 9,517,873
NET ASSETS:
Beginning of period................................................................... 19,161,187 9,643,314
---------------- ----------------
End of period (including distributions in excess of income of ($110,705) and ($891)
respectively)....................................................................... $ 34,348,858 $ 19,161,187
---------------- ----------------
---------------- ----------------
</TABLE>
See Notes to Financial Statements.
26
<PAGE>
BJB INVESTMENT FUNDS
BJB GLOBAL INCOME FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR YEAR YEAR YEAR PERIOD
APRIL 30, 1997 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 10/31/96 10/31/95# 10/31/94# 10/31/93 10/31/92*
-------------- -------- --------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period................ $ 12.01 $ 12.11 $ 11.16 $ 12.28 $ 12.36 12.00
-------------- -------- --------- --------- -------- ---------
Income (Loss) from investment operations:
Net investment income............................. 0.28 0.59 0.59 0.39 0.37 0.16**
Net realized and unrealized gain (loss) on
securities..................................... (0.37) 0.36 0.92 (0.81) 0.58 0.42
-------------- -------- --------- --------- -------- ---------
Total income (loss) from investment
operations................................... (0.09) 0.95 1.51 (0.42) 0.95 0.58
Less Distributions:
Dividends from net investment income.............. (0.36) (1.05) (0.56) (0.27) (0.37) (0.16)
Distributions from net realized gains............. -- -- -- -- (0.66) --
Distributions from Capital (Note 1)............... -- -- -- (0.43) -- (0.06)
-------------- -------- --------- --------- -------- ---------
Total distributions............................ (0.36) (1.05) (0.56) (0.70) (1.03) (0.22)
-------------- -------- --------- --------- -------- ---------
Net Asset Value, end of period...................... $ 11.56 $ 12.01 $ 12.11 $ 11.16 $ 12.28 $ 12.36
-------------- -------- --------- --------- -------- ---------
-------------- -------- --------- --------- -------- ---------
Total Return ***.................................... (0.76)% 8.25% 13.90% (3.54)% 8.15% 4.86%
-------------- -------- --------- --------- -------- ---------
-------------- -------- --------- --------- -------- ---------
Ratios/Supplemental Data:
Net assets, end of period (in 000's)................ $ 14,864 $ 14,584 $17,327 $28,619 $ 57,682 $28,647
Ratio of net investment income to average net
assets............................................ 4.71%+ 4.71% 5.19% 3.29% 2.24% 3.95%+
Ratio of total expenses to average net assets....... 2.02%+ 2.53%## 2.15%## 1.66% 1.78% 1.00%+**
Portfolio turnover rate............................. 67% 219% 319% 320% 291% 43%
</TABLE>
- ------------------------------
<TABLE>
<S> <C>
* The BJB Global Income Fund commenced operations on July 1, 1992.
** Net investment income and annualized operating expenses before waiver of fees by the investment adviser,
sub-investment adviser or administrator were $0.13 and 1.75%.
*** Total return represents aggregate total return for the periods indicated and does not reflect any applicable sales
charge.
+ Annualized.
# Per share amounts have been calculated using the monthly average share method, which more appropriately presents the
per share data for the period since the use of the undistributed income method does not accord with results of
operations.
## Includes indirectly paid expenses. Excluding indirectly paid expenses the ratio of total expenses to average net
assets would have been 2.43% and 2.05% for the years ended October 31, 1996 and 1995, respectively.
</TABLE>
See Notes to Financial Statements.
27
<PAGE>
BJB INVESTMENT FUNDS
BJB INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR YEAR YEAR PERIOD
APRIL 30, 1997 ENDED ENDED ENDED ENDED
(UNAUDITED) 10/31/96 10/31/95# 10/31/94 10/31/93*
---------------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period................ $ 11.43 $ 10.13 $ 11.30 $ 13.10 $ 12.00
---------------- -------- --------- -------- ---------
Income from investment operations:
Net investment loss++............................. (0.02) (0.02) (0.06) (0.21) (0.02)
Net realized and unrealized gain (loss) on
securities................................... 1.29 1.32 (1.11) (1.56) 1.12
---------------- -------- --------- -------- ---------
Total income (loss) from investment
operations................................... 1.27 1.30 (1.17) (1.77) 1.10
---------------- -------- --------- -------- ---------
Less distributions:
In excess of net investment income.................. (0.04) -- -- (0.03) --
---------------- -------- --------- -------- ---------
Net Asset Value, end of period...................... $ 12.66 $ 11.43 $ 10.13 $ 11.30 $ 13.10
---------------- -------- --------- -------- ---------
---------------- -------- --------- -------- ---------
Total Return**...................................... 11.20% 12.73% (10.35)% (13.53)% 9.17%
---------------- -------- --------- -------- ---------
---------------- -------- --------- -------- ---------
Ratios/Supplemental Data:
Net assets, end of period (in 000's)................ $ 34,349 $ 19,161 $ 9,643 $ 14,831 $11,292
Ratio of net investment loss to average net
assets............................................ (0.34)%+ (0.58)% (0.63)% (1.26)% (3.83)%+
Ratio of total expenses to average net assets....... 2.11%+(a) 2.46%(a)(c) 2.84%(b)(c) 2.16% 2.09%+
Portfolio turnover rate............................. 15% 67% 116% 169% 20%
Average brokerage commission rate (d)............... $0.01759 $0.00464 N/A N/A N/A
</TABLE>
- ------------------------------
<TABLE>
<S> <C>
* The BJB International Equity Fund commenced operations on October 4, 1993.
** Total return represents aggregate total return for the periods indicated and does not reflect any applicable sales
charge.
+ Annualized.
++ Net investment loss before waiver of fees by the investment adviser was ($0.05), ($0.05) and ($0.11) for the six
months ended April 30, 1997 and for the years ended October 31, 1996 and 1995, respectively.
# Per share amounts have been calculated using the monthly average share method, which more appropriately presents the
per share data for the period since the use of the undistributed income method does not accord with results of
operations.
(a) Figure is net of the voluntary expense waiver by the Adviser. Excluding this waiver, the ratio of total expenses to
average net assets would have been 2.61% and 2.96% for the six months ended April 30, 1997 and for the year ended
October 31, 1996, respectively.
(b) Figures are net of the expense reimbursement by the Adviser in connection with the voluntary and involuntary expense
limitation. Before the expense reimbursement the ratio of total expenses to average net assets would have been
3.36%.
(c) Includes indirectly paid expenses. Excluding indirectly paid expenses the ratio of total expenses to average net
assets would have been 2.37% and 2.67% for the years ended October 31, 1996 and 1995, respectively.
(d) The average broker commission rate will vary depending on the markets in which trades are executed.
</TABLE>
See Notes to Financial Statements.
28
<PAGE>
BJB INVESTMENT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES
BJB Investment Funds (the 'Trust') is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940, as amended (the
'1940 Act'), as an open-end management investment company that currently offers
two investment funds: BJB Global Income Fund (the 'Income Fund') and BJB
International Equity Fund (the 'Equity Fund') (individually, a 'Fund' and
collectively, the 'Funds'). The Trust was organized as a Massachusetts business
trust under the laws of the Commonwealth of Massachusetts on April 30, 1992. The
Income Fund commenced operations on July 1, 1992 and the Equity Fund commenced
operations on October 4, 1993.
The Income Fund's investment objective is to maximize current income
consistent with the protection of principal by investing in a non-diversified
portfolio of fixed income securities of governmental, supranational and
corporate issuers denominated in various currencies, including U.S. dollars. The
Equity Fund's investment objective is long-term growth of capital from investing
in a diversified portfolio of common stocks of foreign issuers of all sizes.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
presentation of financial statements in conformity with generally accepted
accounting principals requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. Actual
results could differ from these estimates.
Portfolio valuation: Generally, each Fund's investments are valued at
market value or, in the absence of a market value, at fair value as determined
by or under the direction of the Trust's Board of Trustees. A security which is
traded primarily on a United States or foreign stock exchange is valued at the
last sale price on that exchange or, if there were no sales during the day, at
the mean of the current quoted bid and asked prices. Portfolio securities which
are traded primarily on foreign securities exchanges are generally valued at the
preceding closing values of such securities on their respective exchanges,
except that when an occurrence subsequent to the time that a value was so
established is likely to have changed such value, then the fair value of those
securities will be determined by consideration of other factors by or under the
direction of the Trust's Board of Trustees or its delegates. Debt securities
(other than government securities and short-term obligations) are valued by
independent pricing services approved by the Trust's Board of Trustees.
Investments in government securities (other than short-term securities) are
valued at the mean of the quoted bid and asked prices in the over-the-counter
market. Short-term investments that mature in 60 days or less are valued at
amortized cost.
Repurchase agreements: The Funds may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, a Fund takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an agreed-upon
price and time, thereby determining the yield during the Fund's holding period.
This arrangement results in a fixed rate of return that is not subject to market
fluctuations during a Fund's holding period. The value of the collateral at all
times is equal to at least 100% of the total amount of the repurchase
obligations, including interest. In the event of counterparty default, the Fund
has the right to use the collateral to offset losses incurred. There is
potential loss to a Fund in the event the Fund is delayed or prevented from
exercising its rights to dispose of the collateral securities, including the
risk of a possible decline in the value of the underlying securities during the
period while the Fund seeks to assert its rights. The Funds' investment
advisers, acting under the supervision of the Board of Trustees, reviews the
value of the collateral and the creditworthiness of those banks and dealers with
which the Funds enter into repurchase agreements to evaluate potential risks.
Foreign currency: The books and records of the Funds are maintained in
United States (U.S.) dollars. Foreign currencies, investments and other assets
and liabilities are translated into U.S. dollars at the exchange rates
prevailing at the end of the period, purchases and sales of investment
securities and income and expenses are translated on the respective dates of
such transactions. Unrealized gains or losses on investments which result from
changes in foreign currencies have been included in the net unrealized
appreciation (depreciation) of investments. Net realized currency gains and
losses include foreign currency gains and losses between trade date and
settlement date on investment securities transactions, foreign currency
transactions and the difference between the amounts of interest and dividends
recorded on the books of the Funds and the amount actually received. The portion
of foreign currency
29
<PAGE>
BJB INVESTMENT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
gains and losses related to fluctuations in exchange rates between the purchase
trade date and sale trade date is included in realized gains and losses on
security transactions.
Forward foreign currency contracts: Forward foreign currency contracts are
valued at the forward rate and are marked-to-market daily. The change in market
value is recorded by the Funds as an unrealized gain or loss. When the contract
is closed, the Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and the value at the
time it was closed.
The use of forward foreign currency contracts does not eliminate
fluctuations in the underlying prices of the Fund's portfolio securities, but it
does establish a rate of exchange that can be achieved in the future. Although
forward foreign currency contracts limit the risk of loss due to a decline in
the value of the currency holdings, they also limit any potential gain that
might result should the value of the currency increase. In addition, the Fund
could be exposed to risks if the counterparties to the contracts are unable to
meet the terms of their contracts.
Option contracts: Purchase of put and call options are recorded as an
investment, the value of which is marked-to-market daily. When a purchased
option expires, the Fund will realize a loss equal to the premium paid. When the
Fund enters into a closing sale transaction, the Fund will realize a gain or
loss depending on whether the sales proceeds from the closing sale transaction
are greater or less than the premium paid. When a Fund exercises a put option,
it will realize a gain or loss from the sale of the underlying security and the
proceeds from such sale will be decreased by the premium originally paid. When a
Fund exercises a call option, the cost of the security which the Fund purchases
upon exercise will be increased by the premium originally paid.
When a Fund writes a call option or a put option, an amount equal to the
premium received by a Fund is recorded as a liability, the value of which is
marked-to-market daily. When a written option expires, a Fund realizes a gain
equal to the amount of the premium received. When a Fund enters into a closing
purchase transaction the Fund realizes a gain (or loss if the cost of the
closing purchase transaction exceeds the premium received when the option was
sold) without regard to any unrealized gain or loss on the underlying security,
and the liability related to such option is eliminated. When a call option is
exercised, a Fund realizes a gain or loss from the sale of the underlying
security and the proceeds from such sale are increased by the premium originally
received. When a put option is exercised, the amount of the premium originally
received will reduce the cost of the security which a Fund purchased upon
exercise.
Unlike options on specific securities, all settlements of options on stock
indices are in cash and gains or losses depend on general movements in the
stocks included in the index rather than price movements on a particular stock.
There is no physical delivery of securities.
The risk associated with purchasing options is limited to the premium
originally paid. The risk in writing a call option is that a Fund may forego the
opportunity of profit if the market price of the underlying security increases
and the option is exercised. The risk in writing a put option is that a Fund may
incur a loss if the market price of the underlying security decreases and the
option is exercised. There is also the risk that a Fund may not be able to enter
into a closing transaction because of an illiquid secondary market. In addition,
the Fund could be exposed to risks if the counterparties to the transactions are
unable to meet the terms of the contracts.
Securities transactions and investment income: Securities transactions are
recorded as of the trade date. Realized gains and losses from securities
transactions are recorded on the identified cost basis. Interest income is
recorded on the accrual basis. Dividend income is recorded on the ex-dividend
date.
Dividends and distributions to shareholders: Distributions to shareholders
are recorded on the ex-dividend date. Each Fund intends to distribute annually
to its shareholders substantially all of its taxable income. The Income Fund
declares and pays monthly dividends of any investment income. The Equity Fund
intends to declare and pay annually dividends from its net investment income.
Both Funds will annually distribute any net realized capital gains. Additional
distributions of net investment income and capital gains may be made at the
discretion of the Board of Trustees to avoid the application of the excise tax
imposed under Section 4982 of the Internal Revenue Code of 1986, as amended for
certain undistributed amounts. Income distributions and capital gain
distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences
30
<PAGE>
BJB INVESTMENT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
are primarily due to differing treatments of income and gains on various
investment securities held by a Fund, timing differences and differing
characterization of distributions made by a Fund as a whole.
Federal income taxes: The Trust intends that each Fund separately qualify
as a regulated investment company for U.S. Federal income tax purposes.
Accordingly, the Funds do not anticipate that any income taxes will be paid. It
is expected that certain capital gains earned by the Funds and certain dividends
and interest received by the Funds will be subject to foreign withholding taxes.
2. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS
Julius Baer Investment Management Inc. ('Julius Baer Investment
Management') serves as the Income Fund's investment adviser pursuant to an
investment advisory agreement. The Income Fund pays Julius Baer Investment
Management a quarterly fee for its investment advisory services calculated at an
annual rate of 0.65% of the Income Fund's average daily net assets. Bank Julius
Baer & Co., Ltd.--New York Branch ('Bank Julius Baer') serves as the Income
Fund's servicing agent pursuant to a servicing agent agreement with Julius Baer
Investment Management. Out of its advisory fee, Julius Baer Investment
Management pays Bank Julius Baer a quarterly fee calculated at an annual rate of
0.15% of the Income Fund's average daily net assets.
Bank Julius Baer serves as the Equity Fund's investment adviser pursuant to
an investment advisory agreement. The Equity Fund pays Bank Julius Baer a
quarterly fee for its investment advisory services calculated at an annual rate
of 1.00% of the Equity Fund's average daily net assets. During the six months
ended April 30, 1997, the adviser agreed to waive half (0.50%) of its 1.00% fee.
No director, officer or employee of Julius Baer Investment Management, Bank
Julius Baer or any affiliates of those entities received any compensation from
the Trust for serving as an officer or Trustee of the Funds. The Funds pay each
of the Trustees who is not a director, officer or employee of Julius Baer
Investment Management, Bank Julius Baer or any affiliate thereof an annual fee
of $5,000 plus $250 for each Board of Trustees meeting attended. In addition,
the Funds reimburse these Trustees for travel and out-of-pocket expenses
incurred in connection with the Board of Trustees meetings.
For the six months ended April 30, 1997, the Funds incurred total brokerage
commissions of $55,805 of which $410 was paid in total to Bank Julius Baer,
Frankfurt and Bank Julius Baer, Zurich (affiliates of the Advisers).
3. DISTRIBUTION AND SHAREHOLDER SERVICING PLAN
The Trust has adopted a Shareholder Services Plan and a Distribution Plan
(the 'Plans') pursuant to Rule 12b-1 of the 1940 Act with respect to each class
of shares of the Funds. Under the Plans, the Funds may compensate certain
financial institutions, including Funds Distributor Inc., for certain
distribution, shareholder servicing, administrative and accounting services for
their clients and customers who are beneficial owners of each of the Funds'
shares. A Fund may expend an aggregate amount on an annual basis not to exceed
0.25% of the value of the average daily net assets of that class. For the six
months ended April 30, 1997 the Income Fund and Equity Fund incurred $18,482 and
$30,939, respectively, in service and distribution fees.
Under their terms, the Plans shall remain in effect from year to year,
provided such continuance is approved annually by a vote of a majority of the
Trustees and a majority of those Trustees who are not 'interested persons' of
the Trust and who have no direct or indirect financial interest in the operation
of the Plans or in any agreement related to the Plans.
4. PURCHASES AND SALES OF SECURITIES
Cost of purchases and proceeds from sales of securities, excluding U.S.
government securities and short-term investments, during the six months ended
April 30, 1997, were as follows:
<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
----------- ----------
<S> <C> <C>
Income Fund.................................................................................. $10,508,731 $9,220,036
Equity Fund.................................................................................. 18,806,482 3,625,326
</TABLE>
Cost of purchases and proceeds from sales of long-term U.S. government
securities, excluding short-term investments, during the six months ended April
30, 1997, were $3,555,081 and $2,182,471, respectively for the Income Fund.
31
<PAGE>
BJB INVESTMENT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(CONTINUED)
At April 30, 1997, aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost, and aggregate
gross unrealized depreciation for all securities in which there was an excess of
tax cost over value was:
<TABLE>
<CAPTION>
UNREALIZED UNREALIZED
APPRECIATION DEPRECIATION
------------ ------------
<S> <C> <C>
Income Fund.................................................................................. $ 92,513 $ (245,289)
Equity Fund.................................................................................. 4,425,961 (1,637,040)
</TABLE>
5. SHARES OF BENEFICIAL INTEREST
The Trust may issue an unlimited number of shares of beneficial interest of
each Fund, with a par value of $.001 per share. Changes in shares of beneficial
interest on the Income Fund and the Equity Fund were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED 4/30/97 YEAR ENDED 10/31/96
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Income Fund:
Sold................................................................. 131,031 $ 1,557,635 137,746 $ 1,633,687
Issued as reinvestment of dividends.................................. 25,361 298,065 72,439 859,744
Redeemed............................................................. (84,881) (998,532) (426,171) (5,023,051)
--------- ----------- --------- -----------
Net increase (decrease).............................................. 71,511 $ 857,168 (215,986) $(2,529,620)
--------- ----------- --------- -----------
--------- ----------- --------- -----------
<CAPTION>
SIX MONTHS ENDED 4/30/97 YEAR ENDED 10/31/96
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Equity Fund:
Sold................................................................. 1,226,142 $15,212,045 929,622 $10,454,315
Issued as reinvestment of dividends.................................. 105 1,243 -- --
Redeemed............................................................. (191,241) (2,315,560) (204,887) (2,235,835)
--------- ----------- --------- -----------
Net increase (decrease).............................................. 1,035,006 $12,897,728 724,735 $(8,218,480)
--------- ----------- --------- -----------
--------- ----------- --------- -----------
</TABLE>
6. ORGANIZATIONAL COSTS
All costs in connection with the organization of the Funds, including the
fees and expenses of registering and qualifying their shares for distribution
under federal and state securities regulations, are being amortized on the
straight-line method over a period of sixty months from July 1, 1992, the date
that the Income Fund commenced operations, and from October 4, 1993, the date
the Equity Fund commenced operations. In the event that any of the initial
shares of the Funds are redeemed during such amortization period, the Funds will
be reimbursed for any unamortized costs in the same proportion as the number of
initial shares outstanding bears to the total numbers of shares outstanding at
the time of redemption.
7. FOREIGN SECURITIES
Investing in securities of foreign companies and foreign governments
involves special risks and considerations not typically associated with
investing in U.S. companies and the United States government. These risks
include revaluation of currencies and future adverse political and economic
developments. Moreover, securities of many foreign companies and foreign
governments and their markets may be less liquid and their prices more volatile
than those of securities of comparable U.S. companies and the United States
government.
32
<PAGE>
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- --------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
[LOGO]
BJB
Global
Income
Fund
BJB
International
Equity
Fund
April 30, 1997
