IBJ FUNDS Trust
---------------
IBJ RESERVE MONEY MARKET FUND
IBJ BOND FUND
IBJ CORE EQUITY FUND
IBJ GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
July 25, 1996
Dear Shareholders:
This semi-annual report of the IBJ Funds Trust covers the period from December
1, 1995 to May 31, 1996.
ECONOMIC COMMENTARY
Domestic economic activity revived in early 1996 from late 1995's doldrums.
Beginning in February, several indicators, most notably those that measure
employment conditions, hinted that real GDP was stronger-than-anticipated. A
firm auto sector and a robust expansion of consumer credit provided additional
evidence of strength and support for a change in the economic outlook. Forecast
revisions dismissed remaining expectations of declining interest rates. As a
result, investor focus shifted toward the ramifications of accelerating economic
growth, namely the possibility of heightened inflation and the eventual need for
Federal Reserve monetary tightening. Interest rates rose sharply. Toward the end
of the period, however, many of the same indicators that pointed to unexpected
strength suggested that the second calendar quarter's GDP spurt might be
short-lived. Many economists concluded that the FRB's 2.5% target growth rate
might resume in 1996's second half; the projected slowdown would be linked to
the raised interest rates, less vibrant export activity, and a pullback in
consumer demand.
RESERVE MONEY MARKET FUND
The Fund holds investments in very high quality money market instruments of
corporate, government and agency issuers. During the period, the annualized net
yield was 4.69% which compares with 4.67% for the Donoghue Tier 1 Money Fund
Average. That yield reflects the late 1995 and early 1996 easings of monetary
policy that reduced the Federal Funds rate to 5.25%. Thereafter, owing to the
bottoming and subsequent upturn by the domestic economy, a relatively steady
course was maintained by the Federal Reserve.
BOND FUND
The Fund holds a broad array of intermediate and longer term fixed income
securities of corporate, government, and agency issuers, and seeks to provide
total return from both current income and capital appreciation. For the six
months covered by this report, the total rate of return was (2.12)% which
compares with (0.37)% for the Morningstar Corporate Bond-High Quality Fund
Average. During the latter months of the period the Fund suffered from rising
interest rates that were encouraged by the shift in economic outlook discussed
earlier. The reversal in bond prices interrupted the rally that began in early
1995 (about the date of the Fund's inception). The downturn was viewed by many
as a brief correction that is likely to stabilize as soon as nervous
participants complete their portfolio adjustments. As the economy cools in
1996's second half, the Fund's performance should improve.
1
<PAGE>
CORE EQUITY FUND
The Fund is invested in a broadly diversified portfolio of stocks of medium
and larger capitalization U.S. companies. Held stocks appear undervalued
relative to the stock market as a whole and other stocks in their respective
industries. Companies represented in the portfolio are generally high quality;
they are researched regularly and analyzed according to various criteria. For
the period ended May 31, 1996, the Fund's total rate of return was 12.09%
compared with 12.69% for the Morningstar Growth Fund universe. The stock market
managed to continue 1995's impressive rally during the early months of 1996
despite some slowdown in corporate profits growth, an upward move by interest
rates, and rather high valuations. Sector rotation fostered alternating
leadership by the value, growth, and small capitalization segments. However,
appreciation was accompanied by increased volatility that began to chase nervous
investors from risk-oriented issues. At the same time, elevated interest rates
became increasingly competitive with equities in pursuit of investor dollars.
Your Fund is continually positioned to take advantage of unfolding investment
opportunities. However, a stock market correction, of the sort experienced in
July 1996, can occur at any time and will probably affect the Fund's net asset
value negatively. Long-term investors continue to recognize that the core
fundamentals in support of investment in U.S. equities remain strong and are
constructive for further appreciation.
GROWTH AND INCOME FUND
The Fund is invested in a diversified mix of stocks, bonds and cash
equivalents to provide the most favorable combination of capital growth and
current income. The Fund recorded a total return of 5.56% for the period,
compared with 6.13% total return for the Morningstar Asset Allocation Fund
universe. As outlined earlier, the period contained a generally favorable
environment for stock investing while climbing interest rates prevented progress
by bond holdings. As evidence of an accelerating economy mounted during the
period, the Fund took a somewhat conservative stance by decreasing bond exposure
and increasing the percentage of portfolio market value committed to cash
equivalents. In the Fund's fiscal second half, the expectation of moderating
economic growth and controlled inflation suggests that timely deployment of
reserves in selected undervalued securities ought to prove advantageous for
absolute and relative performance.
Sincerely,
/s/ Charles Porten
-------------------------
Charles Porten
Chief Investment Officer
The Reserve Money Market Fund attempts to maintain a stable net asset value
per share of $1.00. There can be no assurance that the Fund will be successful
in this regard.
Past performance is not indicative of future results. Investments in the
Funds involve risk, including possible loss of principal amounts invested.
INVESTMENTS IN THE FUNDS ARE NOT OBLIGATIONS OF, NOR INSURED, NOR
GUARANTEED, BY IBJ SCHRODER BANK AND TRUST, THE FDIC OR THE U.S. GOVERNMENT.
2
<PAGE>
IBJ
FUNDS Trust
RESERVE MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) -- MAY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Yield to
Maturity
Credit at Time of Maturity Value
Ratings* Purchase Date Principal (Note 2a)
- -------- -------- -------- --------- ---------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER--41.95%
A1/P1 American Express Credit........................... 5.40% 06/20/1996 $1,500,000 $ 1,495,893
A1+/P1 Canadian Wheat Board.............................. 5.36 07/24/1996 1,100,000 1,091,629
A1/P1 Echlin Inc........................................ 5.40 06/10/1996 1,500,000 1,498,077
A1/P1 Ford Credit Europe plc............................ 5.42 06/11/1996 1,500,000 1,497,851
A1+/P1 General Electric Capital Corp..................... 5.41 06/12/1996 1,500,000 1,497,571
A1+/P1 Glaxo Wellcome plc................................ 5.41 08/09/1996 1,300,000 1,286,999
A1/P1 IBM Credit Corp................................... 5.43 06/13/1996 1,500,000 1,497,396
A1+/P1 Pfizer Inc........................................ 5.35 06/17/1996 1,500,000 1,496,606
A1/P1 Toshiba America Inc............................... 5.38 07/26/1996 1,500,000 1,488,109
A1+/P1 Toyota Motor Credit Corp.......................... 5.37 06/05/1996 1,500,000 1,499,145
A1/P1 U.S. West Capital Funding......................... 5.41 07/16/1996 1,500,000 1,490,212
-----------
TOTAL COMMERCIAL PAPER ........................... 15,839,488
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS--57.90%
AAA/Aaa Federal Agricultural Mortgage Corp. Discount Notes 5.34 06/28/1996 3,985,000 3,969,605
AAA/Aaa Federal Home Loan Bank Discount Notes............. 5.31 06/07/1996 7,100,000 7,093,823
AAA/Aaa Federal Home Loan Bank Discount Notes............. 5.35 06/10/1996 2,500,000 2,497,036
AAA/Aaa Federal Home Loan Bank Discount Notes............. 5.34 07/17/1996 1,265,000 1,256,678
AAA/Aaa Federal Home Loan Mortgage Corp. Discount Notes... 5.34 06/03/1996 2,350,000 2,349,316
AAA/Aaa Federal Home Loan Mortgage Corp. Discount Notes... 5.30 06/11/1996 3,200,000 3,195,498
AAA/Aaa Federal Home Loan Mortgage Corp. Discount Notes... 5.32 06/13/1996 1,500,000 1,497,460
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS ......... 21,859,416
-----------
SHORT-TERM INVESTMENTS--0.30%
NR/NR TempCash Provident Money Market Investment Fund... N/A 112,124 112,124
-----------
TOTAL SHORT-TERM INVESTMENTS ..................... 112,124
-----------
TOTAL INVESTMENTS (AMORTIZED COST $37,811,028 )+--100.15%
37,811,028
LIABILITIES IN EXCESS OF CASH AND OTHER ASSETS--(0.15%) (55,546)
-----------
NET ASSETS--100.00% ............................... $37,755,482
===========
* See page 12 for Credit Ratings Summary.
+ Cost for book and tax purposes is the same.
</TABLE>
See accompanying notes to financial statements
3
<PAGE>
IBJ FUNDS Trust
BOND FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) -- MAY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit Market
Ratings* Principal Cost Value
- -------- --------- ---- -----
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--40.41%
GOVERNMENT AGENCY OBLIGATIONS--19.35%
<S> <C> <C> <C>
AAA/Aaa $1,000,000 Federal Farm Credit Medium Term Notes, 5.35%, 05/12/1997......... $ 997,734 $ 995,800
AAA/Aaa 1,250,000 Federal Farm Credit Medium Term Notes, 6.32%, 09/09/2002......... 1,249,609 1,206,350
AAA/Aaa 500,000 Federal Home Loan Mortgage Corp., 6.54%, 03/21/2001.............. 495,944 487,490
AAA/Aaa 500,000 Federal Home Loan Mortgage Corp., 6.56%, 02/01/2006.............. 499,844 465,940
AAA/Aaa 17,397 Federal Home Loan Mortgage Corp. Pool #285113, 7.50%, 02/01/2017. 17,004 17,259
AAA/Aaa 500,000 Federal National Mortgage Association Medium Term Notes, 6.08%,
09/25/2000 .................................................... 500,136 486,235
AAA/Aaa 3,519 Government National Mortgage Association Pool #39821, 11.50%,
04/15/2010 .................................................... 3,831 3,941
AAA/Aaa 99,602 Government National Mortgage Association Pool #102627, 13.00%,
06/15/2014 ..................................................... 111,410 111,999
AAA/Aaa 73,921 Government National Mortgage Association Pool #115224, 13.00%,
11/15/2014 .................................................... 82,612 83,041
AAA/Aaa 45,565 Government National Mortgage Association Pool #120883, 13.00%,
12/15/2014 .................................................... 50,895 51,135
AAA/Aaa 489,612 Government National Mortgage Association Pool #398559, 7.00%,
04/15/2026 .................................................... 473,393 466,367
---------- ----------
4,482,412 4,375,557
---------- ----------
U.S. TREASURY OBLIGATIONS--21.06%
AAA/Aaa 1,000,000 Notes, 6.75%, 06/30/1999.......................................... 1,018,426 1,007,350
AAA/Aaa 750,000 Notes, 6.00%, 10/15/1999.......................................... 771,283 739,192
AAA/Aaa 1,750,000 Notes, 5.875%, 02/15/2004......................................... 1,692,433 1,651,877
AAA/Aaa 500,000 Notes, 6.50%, 08/15/2005.......................................... 497,625 487,155
AAA/Aaa 1,000,000 Notes, 6.00%, 02/15/2026.......................................... 892,404 876,020
---------- ----------
4,872,171 4,761,594
---------- ----------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS ..................... 9,354,583 9,137,151
---------- ----------
CORPORATE OBLIGATIONS--45.07%
AUTOMOBILES--1.55%
A-/A3 350,000 GMAC Notes, 7.00%, 03/01/2000..................................... 351,645 350,000
---------- ----------
BANKING--2.95%
A+/A2 300,000 BankAmerica Corp. Medium Term Notes, 7.125%, 05/12/2005........... 303,404 293,250
A-/Baa1 400,000 Old Kent Financial Sub. Notes, 6.625%, 11/15/2005................. 397,808 373,500
---------- ----------
701,212 666,750
---------- ----------
BEVERAGES--1.45%
AA/Aa3 350,000 Coca-Cola Co. Notes, 6.00%, 07/15/2003............................ 341,986 327,250
---------- ----------
CHEMICALS--0.56%
BBB-/Baa3 125,000 Lyondell Petrochemical Co. Notes, 8.25%, 03/15/1997............... 124,694 126,908
---------- ----------
DURABLE GOODS--2.36%
A+/A3 250,000 Whirlpool Corp. Debs., 9.00%, 03/01/2003.......................... 257,944 270,625
A/A2 254,000 Xerox Corp. Debs., 9.625%, 09/01/1997............................. 259,478 263,843
---------- ----------
517,422 534,468
---------- ----------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
IBJ FUNDS Trust
BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)) -- MAY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit Market
Ratings* Principal Cost Value
- -------- --------- ---- -----
<S> <C> <C> <C>
CORPORATE OBLIGATIONS (continued)
ENVIRONMENTAL CONTROL--1.67%
A/A2 $400,000 Browning-Ferris Sr. Notes, 6.10%, 01/15/2003...................... $ 405,177 $ 377,500
---------- ----------
FINANCIAL SERVICES--4.35%
AA-/Aa3 350,000 Associates Corp. N.A. Sr. Notes, 7.50%, 04/15/2002................ 351,793 356,125
A+/A1 285,000 Commercial Credit Co. Notes, 6.875%, 05/01/2002................... 289,562 280,725
A/A2 350,000 Household Finance Co. Notes, 6.75%, 06/01/2000.................... 352,051 346,500
---------- ----------
993,406 983,350
---------- ----------
FOOD--2.73%
BBB/Baa2 283,000 Nabisco Inc. Medium Term Notes, 7.63%, 08/13/2001................. 290,149 285,830
BBB/Baa2 350,000 Nabisco Inc. Notes, 6.85%, 06/15/2005............................. 357,052 330,750
---------- ----------
647,201 616,580
---------- ----------
FOREST PRODUCTS & PAPER--3.08%
BBB-/Baa3 400,000 Boise Cascade Co. Debs., 7.35%, 02/01/2016........................ 399,656 364,000
BBB/Baa1 325,000 Champion International Corp. Notes, 7.70%, 12/15/1999............. 337,489 331,906
---------- ----------
737,145 695,906
---------- ----------
MACHINES--0.90%
BBB-/Baa3 210,000 Case Corp. Notes, 7.25%, 08/01/2005............................... 213,196 204,487
---------- ----------
OIL/GAS--3.63%
AAA/Aa1 250,000 Amoco Canada Debs., 7.95%, 10/01/2022............................. 258,332 250,625
AA-/A1 250,000 British Gas Financial Debs., 8.75%, 03/15/1998.................... 253,933 259,062
A+/A1 300,000 Texaco Capital Debs., 9.00%, 11/15/1997........................... 306,996 311,121
---------- ----------
819,261 820,808
---------- ----------
PHARMACEUTICAL--1.11%
AAA/Aaa 250,000 Johnson & Johnson Debs., 8.00%, 09/01/1998........................ 250,444 250,938
---------- ----------
. TRANSPORTATION--5.13%
BBB/Baa2 411,000 Canadian National Railway Notes, 7.00%, 03/15/2004................ 409,734 397,129
A-/A3 140,000 Canadian Pacific Notes, 6.875%, 04/15/2003........................ 141,634 135,975
AA/Aa1 350,000 Conrail, Inc. Notes, 6.86%, 12/31/2007............................ 344,435 329,484
BBB+/A3 300,000 CSX Corp Notes, 7.00%, 09/15/2002................................. 299,280 298,875
---------- ----------
1,195,083 1,161,463
---------- ----------
UTILITIES--13.60%
A/A2 350,000 Central Power & Light Notes, 6.875%, 02/01/2003................... 359,030 341,688
A-/A3 250,000 Cincinnati Gas & Electric Notes, 6.45%, 02/15/2004................ 249,875 234,063
A/A2 250,000 Delmarva Power & Light Notes, 6.40%, 07/01/2003................... 248,473 237,187
NR/NR 250,000 Hydro Quebec Medium Term Notes, 8.59%, 08/22/2001................. 251,304 265,312
BBB/Baa2 500,000 Illinois Power Notes, 6.50%, 08/01/2003........................... 502,758 477,500
A/A2 276,000 Iowa Electric Light & Power Notes, 6.00%, 10/01/2008.............. 261,715 243,225
BBB+/Baa1 310,000 Jersey Central Power & Light Notes, 6.375%, 05/01/2003............ 305,031 289,850
BBB+/Baa1 300,000 Jersey Central Power & Light Notes, 7.125%, 10/01/2004............ 309,237 288,750
AA/Aa3 400,000 National Rural Utilities Notes, 6.50%, 09/15/2002................. 402,383 387,000
A-/A3 300,000 Pacific Gas & Electric Medium Term Notes, 9.08%, 12/15/1997....... 304,624 311,625
---------- ----------
3,194,430 3,076,200
---------- ----------
TOTAL CORPORATE OBLIGATIONS ...................................... 10,492,302 10,192,608
---------- ----------
See accompanying notes to financial statements.
</TABLE>
5
<PAGE>
IBJ FUNDS Trust
BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)) -- MAY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit Market
Ratings* Principal Cost Value
- -------- --------- ---- -----
<S> <C> <C> <C>
MUNICIPAL OBLIGATIONS--1.82%
A+/NR $393,000 Halifax NC Regional Economic Development Notes, 9.25%, 10/01/2005. $ 399,761 $ 411,668
---------- ----------
TOTAL MUNICIPAL OBLIGATIONS ...................................... 399,761 411,668
---------- ----------
SUPRA-NATIONAL OBLIGATIONS--1.14%
AA-/Aa1 250,000 African Development Bank Notes, 7.70%, 07/15/2002................. 260,218 257,813
---------- ----------
TOTAL SUPRA-NATIONAL OBLIGATIONS ................................. 260,218 257,813
---------- ----------
SHORT-TERM INVESTMENTS--0.63%
NR/NR 142,043 TempCash Provident Money Market Investment Fund................... 142,043 142,043
---------- ----------
TOTAL SHORT-TERM INVESTMENTS ..................................... 142,043 142,043
---------- ----------
TOTAL INVESTMENTS--89.07% .........................................$20,648,907+ 20,141,283
==========
CASH AND OTHER ASSETS, NET OF LIABILITIES--10.93% ................. 2,470,721
----------
NET ASSETS--100.00% ............................................... $22,612,004
===========
* See page 12 for Credit Ratings Summary.
+ Cost for book and tax purposes is the same.
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
IBJ FUNDS Trust
CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) -- MAY 31, 1996
- --------------------------------------------------------------------------------
Market
Shares Cost Value
------ ---- -----
COMMON STOCKS--99.01%
AEROSPACE/DEFENSE--4.27%
35,700 Raytheon Co............ $ 1,195,950 $ 1,901,025
16,700 United Technologies Corp. 1,805,633 1,826,563
---------- ----------
3,001,583 3,727,588
---------- ----------
AUTOMOBILES--1.97%
50,000 Echlin Inc............. 1,682,125 1,718,750
---------- ----------
BANKING--6.53%
40,500 First American (Tenn.)
Corp. ............... 1,209,937 1,776,937
25,400 NationsBank Corp....... 1,195,686 2,060,575
72,000 Signet Banking Corp.... 1,675,138 1,863,000
--------- ----------
4,080,761 5,700,512
---------- ----------
BEVERAGES--1.01%
26,600 Pepsico. Inc........... 823,973 884,450
---------- ----------
BUILDING MATERIALS--1.96%
38,100 Sherwin-Williams Co.... 1,285,801 1,709,738
---------- ----------
BUSINESS SERVICES--4.19%
47,400 Automatic Data Processing
Inc. ................ 1,476,373 1,818,975
36,900 Reynolds & Reynolds Co. 1,256,586 1,840,387
---------- ----------
2,732,959 3,659,362
---------- ----------
CHEMICALS--4.19%
32,000 Air Products &
Chemicals Inc. 1,675,720 1,904,000
11,500 Monsanto Co............ 881,682 1,746,563
---------- ----------
2,557,402 3,650,563
---------- ----------
ELECTRONICS--8.60%
25,000 General Electric Co.... 1,305,360 2,068,750
18,800 Hewlett-Packard Co..... 1,075,657 2,006,900
47,000 Molex Inc.............. 1,355,453 1,498,125
28,900 Motorola Inc........... 1,771,580 1,929,075
---------- ----------
5,508,050 7,502,850
---------- ----------
ENGINEERING--2.22%
29,700 Fluor Corp............. 1,414,442 1,937,925
---------- ----------
ENTERTAINMENT--4.19%
30,700 The Walt Disney Co..... 1,759,706 1,865,025
44,300 Time Warner Inc........ 1,616,520 1,788,612
--------- ---------
3,376,226 3,653,637
--------- ---------
FINANCIAL SERVICES--2.24%
28,200 Household International
Inc. 1,131,226 1,952,850
--------- ---------
FOOD--6.27%
50,000 Nabisco Holdings Corp.
Class A.............. 1,384,522 1,693,750
56,300 Sara Lee Corp.......... 1,530,296 1,879,012
55,500 Sysco Corp............. 1,722,940 1,893,938
--------- ---------
4,637,758 5,466,700
--------- ---------
HOUSEHOLD PRODUCTS--2.12%
23,500 Colgate-Palmolive Co... 1,466,945 1,850,625
--------- ---------
INSURANCE--4.05%
20,500 American International
Group Inc............ 1,393,980 1,932,125
53,300 TIG Holdings Inc....... 1,097,517 1,599,000
--------- ---------
2,491,497 3,531,125
--------- ---------
MACHINES--2.16%
39,600 Dover Corp............. 1,159,887 1,881,000
--------- ---------
MANUFACTURING--2.07%
32,900 Allied Signal Inc...... 1,163,838 1,801,275
--------- ---------
MEDICAL--2.11%
34,200 Columbia HCA Healthcare
Corp................. 1,408,265 1,842,525
--------- ---------
METALS--1.97%
27,900 Aluminum Company
of America........... 1,110,377 1,719,337
--------- ---------
OIL/GAS--6.60%
16,700 Atlantic Richfield Co.. 1,785,760 1,997,738
50,200 Enron Corp............. 1,776,080 2,008,000
15,500 Mobil Corp............. 1,339,993 1,749,562
--------- ---------
4,901,833 5,755,300
--------- ---------
PHARMACEUTICALS--6.47%
41,600 Alza Corp*............. 1,227,106 1,185,600
15,100 Amgen Inc.*............ 854,325 898,450
60,000 Ivax Corp.............. 1,347,880 1,650,000
27,000 Pfizer Inc............. 1,095,187 1,910,250
--------- ---------
4,524,498 5,644,300
--------- ---------
RETAIL--7.48%
49,000 Kroger Co.*............ 1,163,750 1,923,250
39,000 May Department Stores Co. 1,257,102 1,847,625
6,240 Payless Shoesource Inc.*. 128,350 175,500
85,100 Price/Costco Inc.*..... 1,201,163 1,702,000
37,000 Revco D.S. Inc.*....... 857,255 878,750
--------- ---------
4,607,620 6,527,125
--------- ---------
See accompanying notes to financial statements.
7
<PAGE>
IBJ FUNDS Trust
CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MAY 31, 1996
- --------------------------------------------------------------------------------
Shares/ Market
Principal Cost Value
--------- ---- -----
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS--7.43%
41,199 360 Communications Co.* $ 846,723 $ 952,727
28,500 AT&T Corp.............. 1,413,117 1,777,688
35,300 SBC Communications Inc. 1,541,117 1,742,937
47,400 Sprint Corp............ 1,164,435 2,008,575
--------- ---------
4,965,392 6,481,927
--------- ---------
TEXTILES/APPAREL--2.31%
39,600 Jones Apparel Group Inc.* 940,244 2,019,600
--------- ---------
TOBACCO--0.91%
8,000 Philip Morris Companies
Inc. ................ 726,224 795,000
--------- ---------
TRANSPORTATION--3.53%
36,200 Kansas City Southern
Industries Inc....... 1,642,311 1,610,900
17,000 Norfolk Southern Corp.. 1,350,272 1,466,250
--------- ---------
2,992,583 3,077,150
--------- ---------
UTILITIES--ELECTRIC--2.16%
39,100 Duke Power Co.......... 1,650,043 1,886,575
--------- ---------
TOTAL COMMON STOCK .... 66,341,552 86,377,789
--------- ---------
SHORT-TERM INVESTMENTS--0.23%
198,322 TempCash Provident
Money Market
Investment Fund...... 198,322 198,322
--------- ---------
TOTAL SHORT-TERM
INVESTMENTS 198,322 198,322
--------- ---------
TOTAL
INVESTMENTS--99.24% $66,539,874+ 86,576,111
===========
CASH AND OTHER ASSETS,
NET OF LIABILITIES--0.76% 664,391
-----------
NET ASSETS--100.00% .... $87,240,502
===========
* Non-income producing security.
+ Cost for book and tax purposes is the same.
See accompanying notes to financial statements.
8
<PAGE>
IBJ FUNDS Trust
GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) -- MAY 31, 1996
- --------------------------------------------------------------------------------
Market
Shares Cost Value
------ ---- -----
COMMON STOCKS--50.29%
AEROSPACE/DEFENSE--2.20%
11,800 Raytheon Co............$ 395,300 $ 628,350
5,500 United Technologies Corp. 595,896 601,562
---------- ----------
991,196 1,229,912
---------- ----------
AUTOMOBILES--0.98%
15,900 Echlin Inc............. 534,862 546,562
---------- ----------
BANKING--3.33%
13,400 First American (Tenn)
Corp. ............... 436,325 587,925
8,500 NationsBank Corp....... 407,306 689,563
22,400 Signet Banking Corp.... 495,610 579,600
---------- ----------
1,339,241 1,857,088
---------- ----------
BEVERAGES--0.52%
8,800 PepsiCo. Inc........... 272,475 292,600
---------- ----------
BUILDING MATERIALS--1.01%
12,500 Sherwin-Williams Co.... 427,935 560,937
---------- ----------
BUSINESS SERVICES--2.07%
14,300 Automatic Data
Processing Inc. 434,722 548,762
12,200 Reynolds & Reynolds Co. 409,936 608,475
---------- ----------
844,658 1,157,237
---------- ----------
CHEMICALS--2.10%
10,500 Air Products &
Chemicals Inc. ....... 549,403 624,750
3,600 Monsanto Co............ 295,203 546,750
---------- ----------
844,606 1,171,500
---------- ----------
ELECTRONICS--4.31%
8,200 General Electric Co.... 441,762 678,550
5,900 Hewlett-Packard Co..... 324,673 629,825
15,400 Molex Inc.............. 452,262 490,875
9,100 Motorola Inc........... 562,052 607,425
---------- ----------
1,780,749 2,406,675
---------- ----------
ENGINEERING--1.15%
9,800 Fluor Corp............. 471,382 639,450
---------- ----------
ENTERTAINMENT--2.16%
10,300 The Walt Disney Co..... 590,999 625,725
14,400 Time Warner Inc........ 536,995 581,400
---------- ----------
1,127,994 1,207,125
---------- ----------
FINANCIAL SERVICES--1.07%
8,600 Household International
Inc. 345,818 595,550
---------- ----------
FOOD--3.22%
15,800 NabisCo. Holdings Corp.
Class A.............. 438,399 535,225
20,000 Sara Lee Corp.......... 546,510 667,500
17,400 SysCo. Corp............ 539,075 593,775
---------- ----------
1,523,984 1,796,500
---------- ----------
HOUSEHOLD PRODUCTS--1.06%
7,500 Colgate-Palmolive Co... 483,084 590,625
---------- ----------
INSURANCE--2.11%
6,700 American International
Group Inc............ 455,588 631,475
18,200 TIG Holdings Inc....... 387,831 546,000
---------- ----------
843,419 1,177,475
---------- ----------
MACHINES--1.07%
12,600 Dover Corp............. 365,909 598,500
---------- ----------
MANUFACTURING--1.06%
10,800 Allied Signal Inc...... 382,050 591,300
---------- ----------
MEDICAL--1.09%
11,300 Columbia HCA Healthcare
Corp................. 467,375 608,788
---------- ----------
METALS--1.00%
9,100 Aluminum Company
of America........... 364,561 560,788
---------- ----------
OIL/GAS--3.24%
5,300 Atlantic Richfield Co.. 568,836 634,013
16,600 Enron Corp............. 587,956 664,000
4,500 Mobil Corp............. 389,278 507,937
---------- ----------
1,546,070 1,805,950
---------- ----------
PHARMACEUTICAL--3.46%
13,700 Alza Corp.*............ 404,363 390,450
4,900 Amgen Inc.*............ 276,925 291,550
19,500 Ivax Corp.............. 433,830 536,250
10,100 Pfizer Inc............. 416,141 714,575
---------- ----------
1,531,259 1,932,825
---------- ----------
RETAIL--3.85%
16,400 Kroger Co.*............ 389,500 643,700
12,900 May Department Stores Co. 459,838 611,138
1,632 Payless Shoesource Inc.* 33,520 45,900
28,000 Price/CostCo. Inc.*.... 394,625 560,000
12,200 RevCo. D.S. Inc.*...... 282,497 289,750
---------- ----------
1,559,980 2,150,488
---------- ----------
See accompanying notes to financial statements.
9
<PAGE>
IBJ FUNDS Trust
GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MAY 31, 1996
- --------------------------------------------------------------------------------
Shares/ Market
Principal Cost Value
--------- ---- -----
COMMON STOCKS--(CONTINUED)
TELECOMMUNICATIONS--3.82%
14,533 360 Communications Co..$ 303,231 $ 336,076
8,800 AT&T Corp.............. 436,279 548,900
12,000 SBC Communications Inc. 515,444 592,500
15,400 Sprint Corp............ 388,016 652,575
---------- ----------
1,642,970 2,130,051
---------- ----------
TEXTILES/APPAREL--1.14%
12,500 Jones Apparel
Group Inc.*. 310,459 637,500
---------- ----------
TOBACCO--0.46%
2,600 Philip Morris
Companies Inc. 236,023 258,375
---------- ----------
TRANSPORTATION--1.74%
11,600 Kansas City Southern
Industries, Inc...... 526,378 516,200
5,300 Norfolk Southern Corp.. 420,773 457,125
---------- ----------
947,151 973,325
---------- ----------
UTILITIES--1.06%
12,200 Duke Power Co.......... 513,951 588,650
---------- ----------
TOTAL COMMON STOCK ....21,699,161 28,065,776
---------- ----------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--35.46%
U.S. GOVERNMENT AGENCY OBLIGATIONS--23.73%
$2,000,000 Federal Home Loan Bank
Discount Notes,
07/17/1996........... 1,986,635 1,986,635
500,000 Federal Home Loan Bank
Medium Term Notes,
6.07%, 06/30/2003.... 489,146 475,075
500,000 Federal Home Loan
Mortgage Corp., 6.54%,
03/21/2001........... 492,021 487,490
500,000 Federal Home Loan
Mortgage Corp., 6.56%,
02/01/2006........... 499,687 465,940
2,000,000 Federal Home Loan
Mortgage Corp.
Discount Notes,
06/20/1996........... 1,994,707 1,994,707
500,500 Federal National
Mortgage Association,
6.50%, 08/25/2004.... 461,120 484,666
5,500,000 Federal National
Mortgage Association
Discount Notes,
08/06/1996........... 5,447,786 5,447,284
500,000 Federal National
Mortgage Association
Medium Term Notes,
7.52%, 04/23/2004.... 494,766 500,320
56,467 Government National
Mortgage Assocaition
Pool #55056, 13.00%,
03/15/2012........... 63,018 63,397
23,267 Government National
Mortgage Association
Pool #102470, 13.00,
10/15/2013........... 25,950 26,091
499,545 Government National
Mortgage Association
Pool #406475, 7.00%,
04/15/2026........... 484,012 475,831
495,000 Government National
Mortgage Association
Pool #422801, 7.50%,
05/15/2026........... 490,939 484,791
350,000 Tennessee Valley
Authority Notes,
7.625%, 09/15/1999... 351,362 350,000
---------- ----------
13,281,149 13,242,227
---------- ----------
U.S. TREASURY OBLIGATIONS--11.73%
1,500,000 Notes, 6.25%,
08/31/1996 .......... 1,502,492 1,502,640
600,000 Notes, 6.00%,
08/31/1997 .......... 600,173 599,790
1,500,000 Notes, 7.00%,
04/15/1999 .......... 1,527,793 1,521,900
1,250,000 Notes, 6.25%,
02/15/2003 .......... 1,249,784 1,215,812
750,000 Notes, 6.50%,
05/15/2005 .......... 777,297 731,655
1,000,000 Notes, 6.50%,
08/15/2005 .......... 980,841 974,310
---------- ----------
6,638,380 6,546,107
---------- ----------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS ..19,919,529 19,788,334
---------- ----------
CORPORATE OBLIGATIONS--10.97%
AUTOMOBILES--0.45%
250,000 GMAC Notes. 7.00%,
03/01/2000........... 251,176 250,000
---------- ----------
See accompanying notes to financial statements.
10
<PAGE>
IBJ FUNDS Trust
GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MAY 31, 1996
- --------------------------------------------------------------------------------
Market
Principal Cost Value
--------- ---- -----
CORPORATE OBLIGATIONS--(CONTINUED)
BANKING--2.00%
500,000 BankAmerica Corp. Medium
Term Notes, 7.125%,
05/12/2005........... $ 505,672 $ 488,750
250,000 JP Morgan Sub Notes,
7.625%, 09/15/2004... 248,078 254,687
400,000 Old Kent Financial
Sub. Notes, 6.625%,
11/15/2005........... 397,808 373,500
---------- ----------
1,151,558 1,116,937
---------- ----------
CHEMICALS--0.46%
250,000 Dupont EI de Nemours
Medium Term Notes,
8.35%, 05/15/1998.... 251,928 257,500
---------- ----------
DURABLE GOODS--0.40%
215,000 Xerox Corp. Debs.,
9.625%, 09/01/1997... 219,638 223,331
---------- ----------
FINANCIAL SERVICES--0.89%
250,000 Associates Corp. N.A.
Sr. Notes, 7.50%,
04/15/2002........... 251,280 254,375
250,000 Commercial Credit Co.
Notes, 6.375%,
09/15/2002........... 250,000 240,000
---------- ----------
501,280 494,375
---------- ----------
FOOD--0.59
350,000 Nabisco. Inc. Notes,
6.85%, 06/15/2005.... 357,052 330,750
---------- ----------
FOREST PRODUCTS & PAPER--0.57%
350,000 Boise Cascade Co.
Debs., 7.35%,
02/01/2016.......... 349,699 318,500
---------- ----------
OIL/GAS--0.63%
350,000 Amoco. Canada Debs.,
7.95%, 10/01/2022.... 362,016 350,875
---------- ----------
TRANSPORTATION--1.06%
300,000 Canadian National
Railway Notes, 7.00%,
03/15/2004........... 303,722 289,875
300,000 CSX Corp. Notes, 7.00%,
09/15/2002........... 299,280 298,875
---------- ----------
603,002 588,750
---------- ----------
UTILITIES--3.92%
300,000 Central Power &
Light Notes, 6.875%,
02/01/2003........... 307,740 292,875
250,000 Delmarva Power &
Light Notes, 6.40%,
07/01/2003........... 248,473 237,188
250,000 Hydro Quebec Medium
Term Notes, 8.59%,
08/22/2001........... 251,304 265,312
400,000 Illinois Power Notes,
6.50%, 08/01/2003.... 402,206 382,000
350,000 Jersey Central Power &
Light Notes, 7.125%,
10/01/2004........... 360,777 336,875
300,000 Pacific Gas & Electric
Medium Term Notes,
9.08%, 12/15/1997.... 304,624 311,625
400,000 Philadelphia Electric
Notes, 6.375%,
08/15/2005........... 392,988 364,000
---------- ----------
2,268,112 2,189,875
---------- ----------
TOTAL CORPORATE
OBLIGATIONS ......... 6,315,461 6,120,893
---------- ----------
MUNICIPAL OBLIGATIONS--0.71%
377,000 Halifax NC Regional
Economic Development
Notes, 9.25%,
10/01/2005........... 383,485 394,907
---------- ----------
TOTAL MUNICIPAL
OBLIGATIONS. ........ 383,485 394,907
---------- ----------
SUPRA-NATIONAL OBLIGATIONS--0.46%
250,000 African Development
Bank Sub. Notes,
7.70%, 07/15/2002.... 260,218 257,813
---------- ----------
TOTAL SUPRA-NATIONAL
OBLIGATIONS ......... 260,218 257,813
---------- ----------
SHORT-TERM INVESTMENTS--1.51%
843,196 TempCash Provident
Money Market
Investment Fund...... 843,196 843,196
---------- ----------
Total Short-Term
Investments.......... 843,196 843,196
---------- ----------
TOTAL
INVESTMENTS--99.40% $49,421,050+ 55,470,919
===========
CASH AND OTHER ASSETS,
NET OF LIABILITIES--0.60% 337,342
-----------
NET ASSETS--100.00% .... $55,808,261
===========
* Non-income producing securities.
+ Cost for book and tax purposes is the same.
See accompanying notes to financial statements.
11
<PAGE>
IBJ FUNDS Trust
Portfolio of Investments (continued) -- May 31, 1996
- --------------------------------------------------------------------------------
*Credit Ratings given by Standard & Poor's Corporation and Moody's Investors
Service Inc. (unaudited)
Standard & Poor's Moody's
- --------------- -------
A1 P1 Instrument of the highest quality.
AAA Aaa Instrument judged to be of the highest quality
and carrying the smallest amount of investment
risk.
AA Aa Instrument judged to be of high quality by all
standards.
A A Instrument judged to be adequate by all standards.
BBB Baa Instrument judged to be of modest quality by all
standards.
NR NR Not Rated. In the opinion of the Investment
Adviser, instrument judged to be of comparable
investment quality to rated securities which may
be purchased by the Fund.
For items possessing the strongest investment attributes of their category,
Moody's gives that letter rating followed by a number. The Standard & Poor's
ratings may be modified by the addition of a plus or minus sign to show relative
standing within the major rating categories.
U.S. Government Issues have an assumed rating of AAA/Aaa.
See accompanying notes to financial statements.
12
<PAGE>
BJ FUNDS TRUST
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
MAY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RESERVE MONEY CORE EQUITY GROWTH AND
MARKET FUND BOND FUND FUND INCOME FUND
----------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
ASSETS
Investments, at value (cost $37,811,028, $20,648,907,
$66,539,874, $49,421,050)............................. $37,811,028 $20,141,283 $86,576,111 $55,470,919
Cash.................................................... 92,274 7,726 0 0
Receivable for investments sold......................... 0 2,248,841 512,883 1,606,118
Interest receivable..................................... 2,545 354,582 9,655 257,498
Dividends receivable.................................... 0 0 190,894 61,652
Deferred organization expenses (Note 2e)................ 21,105 21,105 21,105 21,105
----------- ----------- ----------- -----------
Total assets........................................ 37,926,952 22,773,537 87,310,648 57,417,292
----------- ----------- ----------- -----------
LIABILITIES
Payable for investments purchased....................... 0 0 0 1,526,976
Income distribution payable (Note 2c)................... 133,000 107,812 0 0
Advisory fee payable (Note 3)........................... 19,325 7,923 37,396 23,585
Administrative fee payable (Note 3)..................... 4,242 2,971 11,219 7,076
Accrued expenses........................................ 14,903 42,827 21,531 51,394
----------- ----------- ----------- -----------
Total liabilities................................... 171,470 161,533 70,146 1,609,031
----------- ----------- ----------- -----------
NET ASSETS.............................................. $37,755,482 $22,612,004 $87,240,502 $55,808,261
=========== =========== =========== ===========
NET ASSETS CONSIST OF:
Capital Stock, $.001 par value
per share (unlimited shares authorized)............... $ 37,760 $ 2,294 $ 6,280 $ 4,663
Additional paid-in capital.............................. 37,721,913 23,132,256 60,920,619 48,069,717
Accumulated undistributed/(excess distributions of) net
investment income..................................... 0 0 381,479 (107,869)
Accumulated undistributed net realized gain/(loss) on
investments .......................................... (4,191) (14,922) 5,895,887 1,791,881
Net unrealized appreciation/(depreciation) of investments 0 (507,624) 20,036,237 6,049,869
----------- ----------- ----------- -----------
NET ASSETS.............................................. $37,755,482 $22,612,004 $87,240,502 $55,808,261
=========== =========== =========== ===========
SHARES OF BENEFICIAL INTEREST
Premium Class:
Net assets.............................................. $ 13,388 $ 13,722 $ 18,261 $ 16,014
=========== =========== =========== ===========
Shares of beneficial interest outstanding............... 13,390 1,392 1,315 1,338
=========== =========== =========== ===========
Net asset value per share (Net Assets / Shares Outstanding) $ 1.00 $ 9.86 $ 13.89 $ 11.97
Service Class:
Net assets.............................................. $37,742,094 $22,598,282 $87,222,241 $55,792,247
=========== =========== =========== ===========
Shares of beneficial interest outstanding............... 37,746,283 2,292,800 6,278,643 4,661,272
=========== =========== =========== ===========
Net asset value per share (Net Assets / Shares Outstanding) $ 1.00 $ 9.86 $ 13.89 $ 11.97
See accompanying notes to financial statements.
</TABLE>
13
<PAGE>
BJ FUNDS TRUST
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE PERIOD ENDED MAY 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RESERVE MONEY CORE EQUITY GROWTH AND
MARKET FUND BOND FUND FUND INCOME FUND
------------ ---------- ---------- ----------
<S> <C> <C> <C> <C>
Investment income:
Interest income....................................... $944,948 $ 837,748 $ 83,104 $ 803,618
Dividend income....................................... 0 0 738,909 236,658
-------- ---------- ----------- ----------
Total Income........................................ 944,948 837,748 822,013 1,040,276
-------- ---------- ----------- ----------
Expenses:
Advisory (Note 3)..................................... 52,256 65,435 267,882 161,576
Administrative services (Note 3)...................... 25,676 19,631 66,973 40,389
Fund accounting fees and expenses (Note 3)............ 15,372 20,496 16,932 21,510
Audit................................................. 6,000 10,000 10,000 10,000
Legal................................................. 12,331 8,876 30,383 19,118
Registration.......................................... 6,375 6,375 6,375 6,375
Custodian fees........................................ 6,920 5,308 18,078 10,795
Amortization of organization expense.................. 2,884 2,884 2,884 2,884
Printing.............................................. 2,577 1,696 1,971 1,558
Trustees'............................................. 3,424 3,424 3,424 3,424
Insurance............................................. 1,264 1,392 4,340 2,657
Transfer and shareholder servicing agent (Note 3)..... 4,448 3,136 3,817 2,888
Miscellaneous......................................... 4,881 11,009 8,953 22,993
-------- ---------- ----------- ----------
Total expenses before waivers/reimbursements........ 144,408 159,662 442,012 306,167
Less expenses waived/reimbursed..................... (32,931) (13,087) (44,638) (26,931)
-------- ---------- ----------- ----------
Net expenses........................................ 111,477 146,575 397,374 279,236
-------- ---------- ----------- ----------
Net investment income................................... 833,471 691,173 424,639 761,040
-------- ---------- ----------- ----------
Net realized and unrealized gain/(loss) on investments:
Net realized gain/(loss) on investments................. (1,257) (14,417) 5,895,887 1,792,037
Net increase/(decrease) in unrealized appreciation/depreciation
of investments........................................ 0 (1,229,729) 3,698,774 320,354
-------- ---------- ----------- ----------
Net realized and unrealized gain/(loss) on investments (1,257) (1,244,146) 9,594,661 2,112,391
-------- ---------- ----------- ----------
Net increase/(decrease) in net assets resulting from operations $832,214 $ (552,973) $10,019,300 $2,873,431
======== ========== =========== ==========
See accompanying notes to financial statements.
</TABLE>
14
<PAGE>
BJ FUNDS TRUST
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RESERVE MONEY MARKET FUND BOND FUND
--------------------------------- ---------------------------------------
FOR THE SIX FOR THE PERIOD FOR THE SIX FOR THE PERIOD
MONTHS ENDED FEBRUARY 1, 1995* TO MONTHS ENDED FEBRUARY 1, 1995* TO
MAY 31, 1996 NOVEMBER 30, 1995 MAY 31, 1996 NOVEMBER 30, 1995
------------- --------------------- ------------- --------------------
<S> <C> <C> <C> <C>
Operations:
Net investment income......................... $ 833,471 $ 1,127,106 $ 691,173 $ 1,088,323
Net realized gain/(loss) on investments....... (1,257) (2,934) (14,417) 954,547
Net change in unrealized appreciation/(depreciation)
of investments.............................. 0 0 (1,229,729) 722,105
---------- ---------- ---------- ----------
Net increase/(decrease) in net assets resulting from
operations...................................... 832,214 1,124,172 (552,973) 2,764,975
---------- ---------- ---------- ----------
Distributions to shareholders from:
Net investment income:
Premium Class................................. (320) (564) (367) (623)
Service Class................................. (833,151) (1,126,542) (690,806) (1,087,700)
---------- ---------- ---------- ----------
(833,471) (1,127,106) (691,173) (1,088,323)
---------- ---------- ---------- ----------
Realized gains:
Premium Class................................. 0 0 (498) 0
Service Class................................. 0 0 (954,554) 0
---------- ---------- ---------- ----------
0 0 (955,052) 0
---------- ---------- ---------- ----------
Decrease in net assets resulting from distributions
to shareholders............................. (833,471) (1,127,106) (1,646,225) (1,088,323)
---------- ---------- ---------- ----------
Capital Share Transactions:
Proceeds from sales of shares:
Premium Class................................. 0 60 0 60
Service Class................................. 74,772,029 66,759,082 3,602,764 29,612,433
---------- ---------- ---------- ----------
74,772,029 66,759,142 3,602,764 29,612,493
---------- ---------- ---------- ----------
Net asset value of shares issued to shareholders in reinvestment of
dividends:
Premium Class................................. 266 564 800 623
Service Class................................. 699,993 1,126,542 1,537,658 1,087,700
----------- ----------- ----------- -----------
700,259 1,127,106 1,538,458 1,088,323
----------- ----------- ----------- -----------
Net asset value of shares redeemed:
Premium Class................................. 0 0 0 0
Service Class................................. (66,671,256) (38,952,607) (7,192,867) (5,539,621)
----------- ----------- ----------- -----------
(66,671,256) (38,952,607) (7,192,867) (5,539,621)
----------- ----------- ----------- -----------
Net increase/(decrease) in net assets from capital
share transactions.......................... 8,801,032 28,933,641 (2,051,645) 25,161,195
----------- ----------- ----------- -----------
Total increase/(decrease) in net assets........... 8,799,775 28,930,707 (4,250,843) 26,837,847
Net assets:
Beginning of period........................... 28,955,707 25,000 26,862,847 25,000
----------- ----------- ----------- -----------
End of period ................................ $37,755,482 $28,955,707 $22,612,004 $26,862,847
=========== =========== =========== ===========
</TABLE>
*Commencement of Operations.
See accompanying notes to financial statements.
15
<PAGE>
<TABLE>
<CAPTION>
IBJ FUNDS TRUST
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------------------------------------------------
Core Equity Fund Growth and Income Fund
-------------------------------- -------------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE SIX FEBRUARY 1, FOR THE SIX FEBRUARY 1,
MONTHS ENDED 1995* TO MONTHS ENDED 1995* TO
MAY 31, 1996 NOVEMBER 30, 1995 MAY 31, 1996 NOVEMBER 30, 1995
------------ ----------------- ------------ -----------------
<S> <C> <C> <C> <C>
Operations:
Net investment income......................... $ 424,639 $ 839,554 $ 761,040 $ 1,089,503
Net realized gain on investments.............. 5,895,887 3,055,303 1,792,037 1,173,268
Net change in unrealized appreciation
of investments.............................. 3,698,774 16,337,463 320,354 5,729,515
---------- ---------- ---------- ----------
Net increase in net assets resulting from
operations...................................... 10,019,300 20,232,320 2,873,431 7,992,286
---------- ---------- ---------- ----------
Distributions to shareholders from:
Net investment income:
Premium Class................................. (164) 0 (246) (348)
Service Class................................. (882,550) 0 (855,797) (1,102,021)
---------- ---------- ---------- ----------
(882,714) 0 (856,043) (1,102,369)
---------- ---------- ---------- ----------
Realized gains:
Premium Class ................................ (568) 0 (352) 0
Service Class................................. (3,054,735) 0 (1,173,072) 0
---------- ---------- ---------- ----------
(3,055,303) 0 (1,173,424) 0
---------- ---------- ---------- ----------
Decrease in net assets resulting from
distributions to shareholders............... (3,938,017) 0 (2,029,467) (1,102,369)
---------- ---------- ---------- ----------
Capital Share Transactions:
Proceeds from sales of shares:
Premium Class................................. 0 60 0 60
Service Class................................. 19,555,274 89,149,468 8,732,182 48,843,232
---------- ---------- ---------- ----------
19,555,274 89,149,528 8,732,182 48,843,292
---------- ---------- ---------- ----------
Net asset value of shares issued to shareholders
in reinvestment of dividends:
Premium Class................................. 732 0 598 348
Service Class................................. 3,937,285 0 2,028,869 1,102,021
---------- ---------- ---------- ----------
3,938,017 0 2,029,467 1,102,369
---------- ---------- ---------- ----------
Net asset value of shares redeemed:
Premium Class................................. 0 0 0 0
Service Class................................. (28,946,810) (22,794,110) (6,395,685) (6,262,245)
---------- ---------- ---------- ----------
(28,946,810) (22,794,110) (6,395,685) (6,262,245)
---------- ---------- ---------- ----------
Net increase/(decrease) in net assets from
capital share transactions.................. (5,453,519) 66,355,418 4,365,964 43,683,416
---------- ---------- ---------- ----------
Total increase in net assets...................... 627,764 86,587,738 5,209,928 50,573,333
Net assets:
Beginning of period........................... 86,612,738 25,000 50,598,333 25,000
---------- ---------- ---------- ----------
End of period (includes undistributed/(excess
distributions of) net investment income of
$381,479, $839,554, $(107,869) and
$(12,866), respectively).................... $87,240,502 $86,612,738 $55,808,261 $50,598,333
=========== =========== =========== ===========
</TABLE>
*Commencement of Operations.
See accompanying notes to financial statements
16
<PAGE>
IBJ FUNDS Trust
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1 -- DESCRIPTION. IBJ FUNDS Trust (the "Trust") is registered under
the Investment Company Act of 1940, as amended, as an open-end diversified
management investment company and currently consists of four separate investment
portfolios: IBJ Reserve Money Market Fund, IBJ Bond Fund, IBJ Core Equity Fund
and IBJ Growth and Income Fund, each with two (2) classes of shares known as the
Premium Class and the Service Class. Each class of shares outstanding bears the
same voting, dividend, liquidation and other rights and conditions, except that
the expenses incurred in the distribution and marketing of such shares are
different for each class. The Premium Class may be subject to a 12b-1 fee of up
to 0.35% of average daily net assets and a shareholder servicing fee of up to
0.50% of average daily net assets. Currently, the 12b-1 and shareholder
servicing fees are not being charged. The Service Class will not be subject to
such fees.
NOTE 2-- SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies followed by the Funds:
(a) Portfolio Valuation. The net asset value per share of the Funds is
calculated as of 12:00 noon (Eastern time) for the Money Market Fund and as
of 4:15 p.m. (Eastern time) for each of the non-money market funds.
Securities listed on an exchange are valued on the basis of the last sale
prior to the time the valuation is made. If there has been no sale since
the immediately previous valuation, then the current bid price is used.
Quotations are taken from the exchange where the security is primarily
traded. Portfolio securities which are primarily traded on foreign
exchanges may be valued with the assistance of a pricing service and are
generally valued at the preceding closing values of such securities on
their respective exchanges. Over the counter securities are valued on the
basis of the bid price at the close of business on each business day.
Securities for which market quotations are not readily available are valued
at fair value as determined in good faith by or at the direction of the
Board of Trustees. The Money Market Fund uses the amortized cost method to
value its portfolio securities, in accordance with Rule 2a-7 under the
Investment Company Act of 1940, as amended, and seeks to maintain a
constant net asset value of $1.00 per share, although there may be
circumstances under which this goal cannot be achieved. The amortized cost
method involves valuing a security at its cost and amortizing any discount
or premium over the period until maturity, regardless of impact of
fluctuating interest rates on the market value of the security.
(b) Securities transactions and investment income. Securities transactions
are recorded on a trade date basis. Realized gains and losses from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including
amortization of premium and accretion of discount, is accrued daily.
(c) Distributions to shareholders. The Reserve Money Market Fund and Bond
Fund each declare dividends from net investment income daily and distribute
those dividends monthly. The Core Equity Fund will declare and pay
dividends annually and the Growth and Income Fund declares and pays
dividends quarterly. Distributions of net realized gains will be declared
and paid annually by each Fund. Distributions are recorded on the
ex-dividend date.
(d) Federal income taxes. It is the policy of each of the Funds to qualify
as a "regulated investment company" under Subchapter M of the Internal
Revenue Code of 1986, as amended. By so qualifying, the Funds will not be
subject to Federal income taxes to the extent that they distribute all of
their taxable income for the fiscal year. The Funds also intend to meet the
distribution requirements to avoid the payment of an excise tax.
(e) Organization expenses. Costs incurred in connection with the
organization and initial registration of the Funds have been deferred and
are being amortized on a straight-line basis over sixty months beginning
with each Fund's commencement of operations. In the event any of the
initial shares of any of the Funds, which were purchased by Furman Selz LLC
("Furman Selz"), are redeemed, the appropriate Fund will be reimbursed for
any unamortized organization expenses in the same proportion as the number
of shares redeemed bears to the number of initial shares held at the time
of redemption.
17
<PAGE>
IBJ FUNDS Trust
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
(f) Determination of net asset value and calculation of expenses. Expenses
directly attributable to a Fund are charged to that Fund. Other expenses
are allocated proportionately among each Fund within the Trust in relation
to the net assets of each Fund or on another reasonable basis. In
calculating net asset value per share of each class, investment income,
realized and unrealized gains and losses and expenses other than class
specific expenses, are allocated daily to each class of shares based upon
the proportion of net assets of each class at the beginning of each day.
NOTE 3 -- INVESTMENT ADVISORY, ADMINISTRATIVE AND OTHER TRANSACTIONS WITH
AFFILIATES. IBJ Schroder Bank & Trust Company ("IBJS") (the "Adviser") provides
investment advisory services to the Funds pursuant to an Advisory Agreement with
the Trust (the "Advisory Agreement"). Subject to such policies as the Trust's
Board of Trustees may determine, IBJS makes investment decisions for the Funds.
For the advisory services it provides to the Funds, IBJS receives fees based on
average daily net assets up to the following annualized rates: Reserve Money
Market Fund, 0.35%; Bond Fund, 0.50%; Core Equity Fund, 0.60%; and Growth and
Income Fund, 0.60%. For the six months ended May 31, 1996, the Adviser earned
fees of $52,256, $65,435, $267,882 and $161,576 for the Reserve Money Market
Fund, Bond Fund, Core Equity Fund and Growth and Income Fund, respectively. The
Adviser has voluntarily waived fees of $32,931, $13,087, $44,638 and $26,931 for
the Reserve Money Market Fund, Bond Fund, Core Equity Fund, and Growth and
Income Fund, respectively.
The Funds have also entered into an Administrative Service Contract with
Furman Selz (the "Administrator") pursuant to which Furman Selz provides certain
management and administrative services necessary for the Funds' operations
including: (i) general supervision of the operation of the Funds including
coordination of the services performed by the Funds' Adviser, transfer agent,
custodian, independent accountants and legal counsel, regulatory compliance,
including the compilation of information for documents such as reports to, and
filings with, the SEC and state securities commissions, and preparation of proxy
statements and shareholder reports for the Funds; (ii) general supervision
relative to the compilation of data required for the preparation of periodic
reports distributed to the Funds' Officers and Board of Trustees; and (iii)
furnishing office space and certain facilities required for conducting the
business of the Funds. For these services, Furman Selz receives from each Fund a
fee, payable monthly, at the annual rate of 0.15% of each Fund's average daily
net assets. For Administrative Services provided, Furman Selz earned fees of
$25,676, $19,631, $66,973 and $40,389 for the Reserve Money Market Fund, Bond
Fund, Core Equity Fund and Growth and Income Fund, respectively. Pursuant to a
Services Agreement between the Trust and the Administrator, Furman Selz assists
the Trust with certain transfer and dividend disbursing agent functions and
receives a fee of $15 per account per year per fund plus out of pocket expenses.
For the six months ended May 31, 1996, Furman Selz earned Transfer Agency fees
of $4,448, $3,136, $3,817 and $2,888 for the Reserve Money Market Fund, Bond
Fund, Core Equity Fund and Growth and Income Fund, respectively. Pursuant to a
Fund Accounting Agreement between the Trust and the Administrator, the
Administrator assists the Trust in calculating net asset values and provides
certain other accounting services for each Fund described therein, for an annual
fee of $30,000 per Fund plus out of pocket expenses. For the six months ended
May 31, 1996, Furman Selz earned Fund Accounting fees and expenses of $15,372,
$20,496, $16,932 and $21,510 for the Reserve Money Market Fund, Bond Fund, Core
Equity Fund and Growth and Income Fund, respectively.
Certain of the states in which the shares of the Funds are qualified for
sale impose limitations on the expenses of funds. If, in any fiscal year, the
total expenses of the Fund (excluding taxes, interest, distribution expenses,
brokerage commissions, certain portfolio transaction expenses, other expenses
which are capitalized in accordance with generally accepted accounting
principles and extraordinary expenses, but including advisory and administrative
services fees) exceed the expense limitation applicable to the Funds imposed by
the securities regulation of any state, the Adviser will pay or reimburse the
Funds to the extent of advisory fees earned. No such amounts were required to be
reimbursed for the current period.
18
<PAGE>
IBJ FUNDS Trust
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The Trust has adopted a distribution and service plan (the "Plan") pursuant
to Rule 12b-1 under the Investment Company Act of 1940 for each Fund of the
Trust. There are no fees or expenses chargeable to the Trust under the Plan and
the Trust's Board of Trustees has adopted the Plan in case certain expenses of
the Trust might be considered to constitute indirect payments by the Trust of
distribution expenses. IBJ Funds Distributor, Inc. (the "Distributor"), an
affiliate of Furman Selz serves as the exclusive Distributor of the shares of
each Fund pursuant to its Distribution Agreement with the Trust.
NOTE 4 -- SECURITIES TRANSACTIONS.
(a) PURCHASE AND SALE TRANSACTIONS. The aggregate amount of purchases and
sales of investment securities, other than short-term securities, for the six
months ended May 31, 1996 were as follows:
<TABLE>
<CAPTION>
COMMON STOCKS & BONDS U.S. GOVERNMENT OBLIGATIONS
----------------------------- -----------------------------
PURCHASES SALES PURCHASES SALES
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Bond Fund......................................... $ 1,686,348 $ 1,690,576 $15,028,221 $19,852,219
Core Equity Fund.................................. 12,039,038 19,783,564 0 0
Growth and Income Fund............................ 5,151,294 8,238,177 12,144,661 14,716,214
</TABLE>
(b) FEDERAL INCOME TAX BASIS. Gross unrealized appreciation and
depreciation on investment securities at May 31, 1996, based on cost for Federal
income tax purposes, is as follows:
<TABLE>
<CAPTION>
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ ------------
<S> <C> <C> <C>
Bond Fund................................................. $ 67,879 $(575,503) $ (507,624)
Core Equity Fund.......................................... 20,109,153 (72,916) 20,036,237
Growth and Income Fund.................................... 6,471,876 (422,007) 6,049,869
</TABLE>
19
<PAGE>
IBJ FUNDS Trust
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 5 -- CAPITAL SHARE TRANSACTIONS. The Trust is authorized to issue an
unlimited number of shares of beneficial interest with a par value of $0.001
each. Transactions in shares of the Funds are as follows:
<TABLE>
<CAPTION>
RESERVE MONEY MARKET FUND BOND FUND
------------------------------- -------------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE SIX FEBRUARY 1, FOR THE SIX FEBRUARY 1,
MONTHS ENDED 1995* to MONTHS ENDED 1995* TO
MAY 31, 1996 NOVEMBER 30, 1995 MAY 31, 1996 NOVEMBER 30, 1995
------------ ----------------- ------------ -----------------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Shares at beginning of period..................... 13,124 12,500 1,315 1,250
---------- ---------- --------- ---------
Shares sold....................................... 0 60 0 6
Shares issued in reinvestment of dividends
from net investment income..................... 266 564 77 59
---------- ---------- --------- ---------
Net increase in shares............................ 266 624 77 65
---------- ---------- --------- ---------
Shares at end of period........................... 13,390 13,124 1,392 1,315
========== ========== ========= =========
SERVICE CLASS
Shares at beginning of period..................... 28,945,517 12,500 2,505,331 1,250
---------- ---------- --------- ---------
Shares sold....................................... 74,772,029 66,759,082 349,874 2,930,127
Shares issued in reinvestment of dividends
from net investment income..................... 699,993 1,126,542 148,863 103,626
Shares redeemed................................... (66,671,256) (38,952,607) (711,268) (529,672)
---------- ---------- --------- ---------
Net increase/(decrease) in shares................. 8,800,766 28,933,017 (212,531) 2,504,081
---------- ---------- --------- ---------
Shares at end of period........................... 37,746,283 28,945,517 2,292,800 2,505,331
========== ========== ========= =========
CORE EQUITY FUND GROWTH AND INCOME FUND
------------------------------- -------------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE SIX FEBRUARY 1, FOR THE SIX FEBRUARY 1,
MONTHS ENDED 1995* to MONTHS ENDED 1995* TO
MAY 31, 1996 NOVEMBER 30, 1995 MAY 31, 1996 NOVEMBER 30, 1995
------------ ----------------- ------------ -----------------
PREMIUM CLASS
Shares at beginning of period..................... 1,256 1,250 1,287 1,250
---------- ---------- --------- ---------
Shares sold....................................... 0 6 0 6
Shares issued in reinvestment of dividends
from net investment income.................... 59 0 51 31
---------- ---------- --------- ---------
Net increase in shares............................ 59 6 51 37
---------- ---------- --------- ---------
Shares at end of period........................... 1,315 1,256 1,338 1,287
========== ========== ========= =========
SERVICE CLASS
Shares at beginning of period..................... 6,675,290 1,250 4,292,094 1,250
---------- ---------- --------- ---------
Shares sold....................................... 1,466,833 8,685,326 736,571 4,761,936
Shares issued in reinvestment of dividends
from net investment income..................... 314,731 0 172,942 98,242
Shares redeemed................................... (2,178,211) (2,011,286) (540,335) (569,334)
---------- ---------- --------- ---------
Net increase/(decrease) in shares................. (396,647) 6,674,040 369,178 4,290,844
---------- ---------- --------- ---------
Shares at end of period........................... 6,278,643 6,675,290 4,661,272 4,292,094
========== ========== ========= =========
*Commencement of Operations.
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
IBJ FUNDS Trust
FINANCIAL HIGHLIGHTS (UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------
RESERVE MONEY MARKET FUND BOND FUND
-------------------------------------- ------------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
MAY 31, 1996 NOVEMBER 30, 1995+ MAY 31, 1996 NOVEMBER 30, 1995+
----------------- ----------------- ----------------- -----------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $10.72 $10.72 $10.00 $10.00
------ ------ ------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income.............. 0.02 0.02 0.04 0.04 0.27 0.27 0.48 0.48
Net realized and unrealized
gain/(loss) on investments....... 0.00 0.00 0.00 0.00 (0.48) (0.48) 0.72 0.72
------ ------ ------ ------ ------ ------ ------ ------
Total from Investment Operations... 0.02 0.02 0.04 0.04 (0.21) (0.21) 1.20 1.20
------ ------ ------ ------ ------ ------ ------ ------
Less Distributions:
From Net Investment Income......... (0.02) (0.02) (0.04) (0.04) (0.27) (0.27) (0.48) (0.48)
From Realized Capital Gains........ (0.00) (0.00) (0.00) (0.00) (0.38) (0.38) (0.00) (0.00)
------ ------ ------ ------ ------ ------ ------ ------
Total Distributions:............... (0.02) (0.02) (0.04) (0.04) (0.65) (0.65) (0.48) (0.48)
------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 9.86 $ 9.86 $10.72 $10.72
====== ====== ====== ====== ====== ====== ====== ======
Total Return........................... 2.42% 2.42% 4.55% 4.55% (2.12)% (2.12)% 12.28% 12.28%
Net Assets, End of Period
(in thousands) .................... $13 $37,742 $13 $28,943 $14 $22,598 $14 $26,849
Ratios to average net assets of:
Net investment income.............. 4.80%* 4.79%* 5.35%* 5.35%* 5.30%* 5.29%* 5.59%* 5.59%*
Expenses before waivers/
reimbursements ................. 0.94%* 0.94%* 0.92%* 0.92%* 1.22%* 1.22%* 1.22%* 1.22%*
Expenses net waivers/
reimbursements ................. 0.64%* 0.64%* 0.64%* 0.64%* 1.12%* 1.12%* 1.12%* 1.12%*
Portfolio Turnover Rate................ N/A N/A N/A N/A 73% 73% 297% 297%
CORE EQUITY FUND GROWTH AND INCOME FUND
--------------------------------------- --------------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
MAY 31, 1996 NOVEMBER 30, 1995+ MAY 31, 1996 NOVEMBER 30, 1995+
----------------- ----------------- ----------------- -----------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, Beginning of Period... $12.97 $12.97 $10.00 $10.00 $11.78 $11.79 $10.00 $10.00
------ ------ ------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net investment income.............. 0.07 0.07 0.13 0.13 0.19 0.19 0.27 0.31
Net realized and unrealized
gain/(loss) on investments....... 1.43 1.43 2.84 2.84 0.45 0.45 1.79 1.79
------ ------ ------ ------ ------ ------ ------ ------
Total from Investment Operations... 1.50 1.50 2.97 2.97 0.64 0.64 2.06 2.10
------ ------ ------ ------ ------ ------ ------ ------
Less Distributions:
From Net Investment Income......... (0.13) (0.13) (0.00) (0.00) (0.18) (0.19) (0.28) (0.31)
From Realized Capital Gains........ (0.45) (0.45) (0.00) (0.00) (0.27) (0.27) (0.00) (0.00)
------ ------ ------ ------ ------ ------ ------ ------
Total Distributions:............... (0.58) (0.58) (0.00) (0.00) (0.45) (0.46) (0.28) (0.31)
------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, End of Period......... $13.89 $13.89 $12.97 $12.97 $11.97 $11.97 $11.78 $11.79
====== ====== ====== ====== ====== ====== ====== ======
Total Return........................... 12.09% 12.09% 29.70% 29.70% 5.56% 5.56% 20.72% 20.82%
Net Assets, End of Period
(in thousands) .................... $18 $87,222 $16 $86,596 $16 $55,792 $15 $50,583
Ratios to average net assets of:
Net investment income.............. 0.96%* 0.95%* 1.30%* 1.29%* 2.82%* 2.82%* 3.04%* 3.04%*
Expenses before waivers/
reimbursements ................. 0.99%* 0.99%* 0.99%* 0.99%* 1.14%* 1.14%* 1.14%* 1.15%*
Expenses net waivers/
reimbursements ................. 0.89%* 0.89%* 0.89%* 0.89%* 1.04%* 1.04%* 1.04%* 1.05%*
Portfolio Turnover Rate................ 14% 14% 37% 37% 37% 37% 78% 78%
</TABLE>
- ------------------
+ Per share amounts based on the average number of shares outstanding during the
period February 1, 1995 (Commencement of Operations) to November 30, 1995.
* Annualized.
21
<PAGE>
This page intentioinally left blank.
22
<PAGE>
IBJ FUNDS Trust
BOARD OF TRUSTEES
George H. Stewart Stephen V.R. Goodhue
Chairman Trustee
Edward F. Ryan Robert H. Dunker
Trustee Trustee
John J. Pileggi*
Trustee
*"Interested Person" as that term is defined in the Investment Company Act of
1940.
- --------------------------------------------------------------------------------
OFFICERS
John J. Pileggi Gordon M. Forrester
President Vice President &
Treasurer
Joan V. Fiore
Secretary Sheryl Hirschfeld
Assistant Secretary
IBJ FUNDS Trust
23
<PAGE>
Investment Adviser
- ------------------
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
Administrator and Sponsor
- ----------------------
Furman Selz LLC
230 Park Avenue
New York, New York 10169
Distributor
- ---------
IBJ Funds Distributor Incorporated
230 Park Avenue
New York, New York 10169
Custodian
- --------
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
Counsel
- -------
Baker & McKenzie
805 Third Avenue
New York, New York 10022
This report is for the information of the shareholders of IBJ FUNDS Trust. Its
use in connection with any offering of the Trust's shares is authorized only in
case of a concurrent or prior delivery of the Trust's current prospectus.
=================================================
IBJ FUNDS Trust
=================================================
IBJ RESERVE MONEY MARKET FUND
IBJ BOND FUND
IBJ CORE EQUITY FUND
IBJ GROWTH AND INCOME FUND
SEMI-ANNUAL REPORT
-------------------------------------------------
MAY 31, 1996
-------------------------------------------------
24
