IBJ FUNDS Trust
---------------
IBJ RESERVE MONEY MARKET FUND
IBJ BOND FUND
IBJ CORE EQUITY FUND
IBJ GROWTH AND INCOME FUND
Dear Shareholders:
We are pleased to present the first annual report of the IBJ Funds Trust.
As the Trust began February 1, 1995, it will cover the 10 month period ended
November 30, 1995.
ECONOMIC COMMENTARY
The capital markets benefited from a very favorable economic environment in
1995. The Federal Reserve Board was successful in engineering a "soft landing",
i.e., monetary policy which gradually slowed the economy to levels that would
reduce the risks of inflationary resurgence. The associated decline in interest
rates benefited both stock and bond investors, but caused a modest decline in
the yield on money market instruments. Fiscal policy also took a favorable turn
as both Congress and the Administration reached agreement to slow the growth in
government spending and gradually reduce the federal budget deficit to zero by
2003. We believe that successful implementation of this intent will benefit
capital markets.
RESERVE MONEY MARKET FUND
The Fund holds investments in very high quality money market instruments of
corporate, government and agency issuers. For the 10 month period total rate of
return was 4.6%. This compares to 4.5% for the Donoghue Tier I Money Fund
Average. Recent reductions in interest rates may reduce the return from money
market investments in the near term.
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 ten
month period the total rate of return was 12.3% which compares to 11.0% for the
Morningstar Corporate Bond Fund Average. The Fund benefited from the decline in
interest rates which caused most bond prices to rise and hence produced capital
appreciation in the Fund. Long term interest rates declined approximately 200
basis points during the period, which is an unusually sharp drop for only ten
months and reflects the favorable investor sentiment towards monetary and fiscal
policy as well as the benign inflation environment and a slowing economy. A
stable dollar and wide interest rate differentials favoring U.S. bonds over
bonds from major non-U.S. countries further added to the demand for fixed income
securities from offshore investors. Looking ahead, a rise in rates that would
cause bond prices to decline seems unlikely near term unless inflationary
pressures surprisingly appear. The returns from bonds in 1995 should be viewed
as above average, and will likely be followed by somewhat more modest returns in
1996.
1
<PAGE>
CORE EQUITY FUND
The Fund is invested in a broadly diversified portfolio of medium and
larger capitalization U.S. companies. The management style seeks high quality
companies that appear to be undervalued relative to the market and their
industry as measured by several analytical criteria. For the ten month period,
the total rate of return was 29.7% which compares to 29.3% for the Morningstar
Growth Fund Average. Equities have continued to benefit from four dynamics: (1)
Favorable corporate earnings comparison; (2) declining interest rates which make
most fixed income securities less competitive with stocks; (3) huge inflows into
equity mutual funds; (4) heavy share repurchase activity, corporate
restructurings, and merger activity. It is not often such a confluence of
positives occurs in a given year resulting in 1995 being one of the most
outstanding years on record for equity performance. These favorable factors
remain in place, but have dissipated somewhat, particularly expected earnings
comparisons in the face of a weakening economy. Consequently one ought not to
extrapolate 1995 returns into 1996. Nevertheless we remain positive about the
long term fundamentals for U.S. equities, but caution that short-term
corrections often follow strong moves such as we have just witnessed.
GROWTH AND INCOME FUND
The Fund is invested in a diversified mix of stocks, bonds and cash
equivalents to attempt to provide the most favorable combination of capital
growth and current income. For the ten month period total rate of return was
20.8% which compares to 20.4% for the Morningstar Asset Allocation Fund Average.
For most of the period investments were concentrated in stocks and bonds rather
than lower yielding money market instruments and consequently benefited from the
favorable environment cited earlier. As returns from stocks, bonds, and cash
equivalents are expected to moderate from the previous year's results, the same
holds true for this Fund as well.
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 (SERVICE CLASS)+
- --------------------------------------------------------------------------------
IBJ BOND FUND
A $1,000 investment in the IBJ Bond
Fund, made on the inception date
would have increased to $1,123 (as
of November 30, 1995). The graph on [GRAPH]
the right shows how this compares
to our benchmark over the same
period. Total return for the Fund
was 12.28%*.
IBJ CORE EQUITY FUND
A $1,000 investment in the IBJ Core
Equity Fund, made on the inception
date would have increased to $1,297 [GRAPH]
(as of November 30, 1995). The
graph on the right shows how this
compares to our benchmark over the
same period. Total return for the
Fund was 29.70%*.
IBJ GROWTH & INCOME FUND
A $1,000 investment in the IBJ
Growth & Income Fund, made on the
inception date would have increased [GRAPH]
to $1,208 (as of November 30,
1995). The graph on the right shows
how this compares to our benchmark
over the same period. Total return
for the Fund was 20.82%*.
Past performance is not predictive of future performance.
+Graphs for the Premium Class have been omitted as the only share activity has
been reinvestment of dividends from initial capitalization.
*Without certain fee waivers, returns would have been lower.
3
<PAGE>
IBJ FUNDS Trust
RESERVE MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Yield to
Maturity
Credit at Time of Maturity Value
Ratings* Purchase Date Principal (Note 2a)
- ------- ---------- -------- --------- ---------
COMMERCIAL PAPER -- 52.04%
<S> <C> <C> <C> <C>
A1/P1 American Express Credit........................... 5.70% 12/01/95 $ 600,000 $ 600,000
A1/P1 American Express Credit........................... 5.65 12/06/95 500,000 499,622
A1/P1 Brown-Forman Corp................................. 5.72 12/08/95 1,330,000 1,328,521
A1+/P1 Chevron Oil Finance Co............................ 5.72 12/07/95 1,250,000 1,248,849
A1/P1 Ford Credit Europe plc............................ 5.73 12/04/95 1,250,000 1,249,421
A1+/P1 General Electric Capital Corp..................... 5.74 12/21/95 1,250,000 1,246,457
A1/P1 IBM Credit Corp................................... 5.73 12/15/95 1,250,000 1,247,326
A1/P1 Kubota Finance USA Inc............................ 6.04 01/22/96 1,250,000 1,239,289
A1+/P1 National Rural Utilities Cooperative Finance Corp. 5.69 12/13/95 1,200,000 1,197,771
A1/P1 Southern Company (a).............................. 5.73 12/01/95 780,000 780,000
A1/P1 Southern Company (a).............................. 5.71 12/06/95 700,000 699,465
A1/P1 Texaco Inc........................................ 5.74 12/19/95 1,250,000 1,246,412
A1/P1 US West Capital Funding........................... 5.70 12/04/95 1,240,000 1,239,469
A1/P1 Weyerhauser Real Estate........................... 5.72 12/18/95 1,250,000 1,246,950
-----------
TOTAL COMMERCIAL PAPER ........................... 15,069,552
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 45.07%
AAA/Aaa Federal Farm Credit Discount Notes................ 5.60 12/01/95 4,250,000 4,250,000
AAA/Aaa Federal Home Loan Bank Discount Notes............. 5.62 01/04/96 1,250,000 1,243,780
AAA/Aaa Federal Home Loan Bank Discount Notes............. 5.57 01/10/96 2,500,000 2,485,049
AAA/Aaa Federal Home Loan Mortgage Corp. Discount Notes... 5.61 12/13/95 1,000,000 998,130
AAA/Aaa Federal Home Loan Mortgage Corp. Discount Notes... 5.59 01/22/96 3,300,000 3,274,449
AAA/Aaa Federal National Mortgage Corp. Discount Notes.... 5.58 12/13/95 800,000 798,538
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS ......... 13,049,946
-----------
SHORT-TERM INVESTMENTS -- 1.92%
NR/NR TempCash Provident Money Market Investment Fund... N/A 555,538 555,538
-----------
TOTAL SHORT-TERM INVESTMENTS ..................... 555,538
-----------
TOTAL INVESTMENTS (AMORTIZED COST $28,675,036)+-- 99.03%
28,675,036
CASH AND OTHER ASSETS, NET OF LIABILITIES-- 0.97% 280,671
-----------
NET ASSETS-- 100.00% ............................. $28,955,707
===========
</TABLE>
* See page 13 for Credit Ratings Summary.
+ Cost for book and tax purposes is the same.
(a) Security exempt from registration under Rule 144A of the Securities Act of
1933. The security may be resold in transactions exempt from registration,
normally to qualified institutional buyers.
See accompanying notes to financial statements.
4
<PAGE>
IBJ FUNDS Trust
BOND FUND
PORTFOLIO OF INVESTMENTS -- NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit Market
Ratings* Principal Cost Value
- -------- --------- ---- -----
U.S. GOVERNMENT AND AGENCY OBLIGATIONS -- 54.03%
GOVERNMENT AGENCY OBLIGATIONS -- 18.15%
<S> <C> <C> <C> <C>
AAA/Aaa $1,250,000 Federal Farm Credit Medium Term Notes, 6.32%, 09/09/2002.......... $1,249,609 $1,278,650
AAA/Aaa 500,000 Federal Home Loan Mortgage Corp., 6.385%, 06/13/2000.............. 497,890 501,595
AAA/Aaa 1,250,000 Federal Home Loan Mortgage Corp., 6.54%, 03/21/2001............... 1,245,595 1,266,125
AAA/Aaa 1,000,000 Federal Home Loan Mortgage Corp., 7.55%, 06/10/2004............... 997,940 1,042,770
AAA/Aaa 500,000 Federal National Mortgage Association Medium Term Notes, 6.08%,
09/25/2000 ..................................................... 500,152 505,970
AAA/Aaa 21,510 Federal Home Loan Mortgage Corp. Pool #285113, 7.50%, 02/01/2017.. 21,024 21,755
AAA/Aaa 4,020 Government National Mortgage Association Pool #39821, 11.50%,
04/15/2010 ..................................................... 4,381 4,504
AAA/Aaa 100,479 Government National Mortgage Association Pool #102627, 13.00%,
06/15/2014 ..................................................... 112,494 113,208
AAA/Aaa 74,364 Government National Mortgage Association Pool #115224, 13.00%,
11/15/2014 ..................................................... 83,179 83,700
AAA/Aaa 50,489 Government National Mortgage Association Pool #120883, 13.00%,
12/15/2014 ..................................................... 56,444 56,779
---------- ----------
4,768,708 4,875,056
---------- ----------
U.S. TREASURY OBLIGATIONS -- 35.88%
AAA/Aaa 1,500,000 Notes, 6.50%, 05/15/2005.......................................... 1,558,710 1,577,940
AAA/Aaa 1,500,000 Notes, 6.75%, 06/30/1999.......................................... 1,536,546 1,560,090
AAA/Aaa 1,000,000 Notes, 6.75%, 04/30/2000.......................................... 1,027,339 1,046,510
AAA/Aaa 1,000,000 Notes, 8.00%, 05/15/2001.......................................... 1,081,821 1,112,310
AAA/Aaa 1,500,000 Notes, 6.375%, 08/15/2002......................................... 1,504,529 1,560,585
AAA/Aaa 2,000,000 Notes, 6.25%, 02/15/2003.......................................... 2,018,585 2,066,380
AAA/Aaa 650,000 Notes, 7.25%, 08/15/2004.......................................... 677,098 714,161
---------- ----------
9,404,628 9,637,976
---------- ----------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS ..................... 14,173,336 14,513,032
---------- ----------
CORPORATE OBLIGATIONS -- 40.50%
AUTOMOBILES -- 1.35%
A-/A3 350,000 GMAC Notes, 7.00%, 03/01/2000..................................... 351,843 361,812
---------- ----------
BANKING -- 3.45%
A+/A2 500,000 BankAmerica Corp. Medium Term Notes, 7.125%, 05/12/2005........... 505,905 524,375
A-/Baa1 400,000 Old Kent Financial Sub. Notes, 6.625%, 11/15/2005................. 397,808 401,000
---------- ----------
903,713 925,375
---------- ----------
BEVERAGES -- 1.29%
AA/Aa3 350,000 Coca-Cola Co. Notes, 6.00%, 07/15/2003............................ 341,548 346,062
---------- ----------
CHEMICALS -- 1.95%
A-/A3 350,000 International Minerals & Chemicals Debs., 9.875%, 03/15/2011...... 368,559 394,187
BBB-/Baa3 125,000 Lyondell Petrochemical Co. Notes, 8.25%, 03/15/1997............... 124,524 128,386
---------- ----------
493,083 522,573
---------- ----------
DURABLE GOODS -- 2.07%
A+/A3 250,000 Whirlpool Corp. Debs., 9.00%, 03/01/2003.......................... 258,378 286,875
A/A2 254,000 Xerox Corp. Debs., 9.625%, 09/01/1997............................. 261,539 270,193
---------- ----------
519,917 557,068
---------- ----------
See accompanying notes to financial statements.
</TABLE>
5
<PAGE>
IBJ FUNDS Trust
BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)-- NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit Market
Ratings* Principal Cost Value
- -------- --------- ---- -----
<S> <C> <C> <C> <C>
CORPORATE OBLIGATIONS (CONTINUED)
FINANCIAL SERVICES -- 4.97%
AA-/Aa3 $350,000 Associates Corp. N.A. Sr. Notes, 7.50%, 04/15/2002................ $ 351,913 $ 374,500
A+/A1 285,000 Commercial Credit Co. Notes, 6.875%, 05/01/2002................... 289,878 295,331
A/A2 350,000 Household Finance Co. Notes, 6.75%, 06/01/2000.................... 352,272 358,750
BBB/Baa1 263,000 ITT Financial Debs., 9.375%, 12/15/2001........................... 283,070 307,053
---------- ----------
1,277,133 1,335,634
---------- ----------
FOOD -- 1.11%
BBB/Baa2 283,000 Nabisco Inc. Medium Term Notes, 7.63%, 08/13/2001................. 290,713 298,919
---------- ----------
FOREST PRODUCTS & PAPER -- 1.28%
BBB/Baa1 325,000 Champion International Corp. Notes, 7.70%, 12/15/1999............. 339,048 342,875
---------- ----------
MACHINERY -- 0.81%
BBB-/Baa3 210,000 Case Corp. Notes, 7.25%, 08/01/2005............................... 213,321 218,400
---------- ----------
OIL/GAS -- 5.26%
AAA/Aa1 500,000 Amoco Canada Debs., 7.95%,10/01/2022.............................. 517,293 553,750
AA-/A1 250,000 British Gas Financial Debs., 8.75%, 03/15/1998.................... 254,952 265,625
NR/NR 250,000 Hydro Quebec Medium Term Notes, 8.59%, 08/22/2001................. 251,404 276,250
A+/A1 300,000 Texaco Capital Debs., 9.00%, 11/15/1997........................... 309,281 318,375
---------- ----------
1,332,930 1,414,000
---------- ----------
PHARMACEUTICAL -- 0.95%
AAA/Aaa 250,000 Johnson & Johnson Debs., 8.00%, 09/01/1998........................ 251,361 254,375
---------- ----------
TRANSPORTATION -- 4.62%
BBB/Baa2 411,000 Canadian National Railway Notes, 7.00%, 03/15/2004................ 409,795 420,761
A-/A3 140,000 Canadian Pacific Notes, 6.875%, 04/15/2003........................ 141,726 143,675
AA/Aa1 350,000 Conrail, Inc. Notes, 6.86%, 12/31/2007............................ 344,435 362,485
BBB+/A3 300,000 CSX Corp Notes, 7.00%, 09/15/2002................................. 299,280 314,625
---------- ----------
1,195,236 1,241,546
---------- ----------
UTILITIES -- 11.39%
A/A2 350,000 Central Power & Light Notes, 6.875%, 02/01/2003................... 359,576 361,813
A-/A3 250,000 Cincinnati Gas & Electric Notes, 6.45%, 02/15/2004................ 249,875 249,063
A/A2 250,000 Delmarva Power & Light Notes, 6.40%, 07/01/2003................... 248,472 251,563
BBB/Baa2 500,000 Illinois Power Notes, 6.50%, 08/01/2003........................... 502,914 506,505
A/A2 276,000 Iowa Electric Light & Power Notes, 6.00%, 10/01/2008.............. 261,344 263,925
BBB+/Baa1 310,000 Jersey Central Power & Light Notes, 6.375%, 05/01/2003............ 305,031 308,062
AA/Aa3 400,000 National Rural Utilities Notes, 6.50%, 09/15/2002................. 402,535 407,500
A-/A3 300,000 Pacific Gas & Electric Medium Term Notes, 9.08%, 12/15/1997....... 306,029 318,375
BBB+/Baa1 400,000 Philadelphia Electric Notes, 6.375%, 08/15/2005................... 392,992 393,000
---------- ----------
3,028,768 3,059,806
---------- ----------
TOTAL CORPORATE OBLIGATIONS ...................................... 10,538,614 10,878,445
---------- ----------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
IBJ FUNDS Trust
BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)-- NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit Market
Ratings* Principal Cost Value
- -------- --------- ---- -----
<S> <C> <C> <C> <C>
MUNICIPAL OBLIGATIONS -- 1.61 %
A+/NR $393,000 Halifax NC Regional Economic Development Notes, 9.25%,
10/01/2005. ....................................................$ 399,997 $ 433,773
----------- -----------
TOTAL MUNICIPAL OBLIGATIONS ...................................... 399,997 433,773
----------- -----------
SUPRA-NATIONAL OBLIGATIONS -- 1.00%
AA-/Aa1 250,000 African Development Bank Notes, 7.70%, 07/15/2002................. 260,886 269,688
----------- -----------
TOTAL SUPRA-NATIONAL OBLIGATIONS ................................. 260,886 269,688
----------- -----------
. SHORT TERM INVESTMENTS -- 2.31%
619,231 TempCash Provident Money Market Investment Fund................... 619,231 619,231
----------- -----------
TOTAL SHORT TERM INVESTMENTS ..................................... 619,231 619,231
----------- -----------
TOTAL INVESTMENTS-- 99.45% ..................................... $25,992,064+ 26,714,169
===========
CASH AND OTHER ASSETS, NET OF LIABILITIES-- 0.55% ................ 148,678
-----------
NET ASSETS-- 100.00% ............................................. $26,862,847
===========
</TABLE>
* See page 13 for Credit Ratings Summary.
+ Cost for book and tax purposes is the same.
See accompanying note to financial statements.
7
<PAGE>
IBJ FUNDS Trust
CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS -- NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
Market
Shares Cost Value
------ ---- ------
COMMON STOCKS -- 97.60 %
AEROSPACE / DEFENSE -- 4.45%
54,500 Loral Corp............. $ 1,083,187 $ 1,846,187
45,200 Raytheon Co............ 1,514,200 2,011,400
----------- -----------
2,597,387 3,857,587
----------- -----------
APPAREL -- 1.78%
42,600 Jones Apparel Group
Inc.++ 1,011,494 1,538,925
----------- -----------
AUTOMOBILES -- 2.07%
49,000 Echlin Inc............. 1,646,150 1,788,500
----------- -----------
BANKING -- 5.90%
40,500 First American Corp.... 1,209,937 1,847,812
25,400 Nationsbank Corp....... 1,195,686 1,812,925
59,500 Signet Banking Corp.... 1,375,353 1,450,312
----------- -----------
3,780,976 5,111,049
----------- -----------
BUILDING MATERIALS -- 2.11%
46,100 Sherwin-Williams Co.... 1,555,802 1,826,713
----------- -----------
CHEMICALS -- 5.94%
24,000 Air Products &
Chemicals Inc. ...... 1,242,112 1,332,000
26,200 Great Lakes Chemical
Corp. ............... 1,496,675 1,863,475
17,000 Monsanto Co............ 1,281,807 1,946,500
----------- -----------
4,020,594 5,141,975
----------- -----------
COMPUTERS -- 3.75%
26,000 Automatic Data
Processing Inc. 1,534,000 2,070,250
30,900 Reynolds & Reynolds Co. 990,771 1,178,063
----------- -----------
2,524,771 3,248,313
----------- -----------
ELECTRICAL EQUIPMENT-- 2.36%
30,400 General Electric Co.... 1,580,760 2,044,400
----------- -----------
ELECTRONICS -- 5.54%
20,400 Hewlett-Packard Co..... 1,157,558 1,690,650
46,000 Molex Inc.............. 1,321,203 1,541,000
25,600 Motorola Inc........... 1,580,708 1,568,000
----------- -----------
4,059,469 4,799,650
----------- -----------
ENGINEERING -- 2.23%
29,700 Fluor Corp............. 1,414,442 1,930,500
----------- -----------
ENTERTAINMENT -- 4.18%
30,700 The Walt Disney Co..... 1,759,706 1,845,838
44,300 Time Warner Inc........ 1,616,520 1,772,000
----------- -----------
3,376,226 3,617,838
----------- -----------
FINANCIAL SERVICES -- 2.04%
28,200 Household International
Inc. ................ 1,131,226 1,762,500
----------- -----------
FOOD -- 7.74%
33,600 Campbell Soup Co....... $ 1,443,360 1,877,400
67,000 Nabisco Holdings Corp.
Class A.............. 1,853,212 1,892,750
56,300 Sara Lee Corp.......... 1,530,296 1,815,675
36,500 Sysco Corp............. 1,114,360 1,117,813
----------- -----------
5,941,228 6,703,638
----------- -----------
HOTELS / MOTELS -- 1.84%
24,600 Hilton Hotels Corp..... 1,623,387 1,589,775
----------- -----------
HOUSEHOLD PRODUCTS -- 2.24%
26,500 Colgate-Palmolive Co... 1,652,570 1,941,125
----------- -----------
INSURANCE -- 4.13%
20,500 American International
Group Inc............ 1,393,980 1,839,875
64,500 TIG Holdings Inc....... 1,328,517 1,741,500
----------- -----------
2,722,497 3,581,375
----------- -----------
MACHINERY -- 1.91%
42,600 Dover Corp............. 1,211,437 1,656,075
----------- -----------
MANUFACTURING -- 2.25%
41,200 Allied Signal Inc...... 1,457,450 1,946,700
----------- -----------
MEDICAL -- 3.42%
61,100 Caremark International
Inc. ................ 1,062,183 1,199,088
34,200 Columbia HCA Healthcare
Corp................. 1,408,265 1,765,575
----------- -----------
2,470,448 2,964,663
----------- -----------
METALS -- 1.88%
27,900 Aluminum Company of
America.............. 1,110,377 1,632,150
----------- -----------
OIL / GAS -- 8.25%
15,200 Atlantic Richfield Co.. 1,615,000 1,647,300
50,200 Enron Corp............. 1,776,081 1,882,500
15,500 Mobil Corp............. 1,339,993 1,617,813
27,000 Texaco Inc............. 1,689,595 1,998,000
----------- -----------
6,420,669 7,145,613
----------- -----------
PHARMACEUTICALS -- 3.79%
58,000 Ivax Corp.............. 1,289,700 1,544,250
30,000 Pfizer Inc............. 1,216,875 1,740,000
----------- -----------
2,506,575 3,284,250
----------- -----------
RETAIL -- 7.63%
49,000 Kroger Co.++........... 1,163,750 1,641,500
39,000 May Department Stores
Co. 1,385,452 1,701,375
85,100 Price/Costco Inc.++.... 1,201,163 1,414,788
67,100 Revco D.S. Inc.++...... 1,401,302 1,853,637
----------- -----------
5,151,667 6,611,300
----------- -----------
See accompanying notes to financial statements.
8
<PAGE>
IBJ FUNDS Trust
CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)-- NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
Market
Shares Cost Value
------ ---- ------
COMMON STOCKS (CONTINUED)
TRANSPORTATION -- 1.11 %
20,700 Kansas City Southern
Industries, Inc........ $ 941,367 $ 957,375
----------- -----------
UTILITIES -- 9.06%
32,500 AT&T Corp.............. 1,610,618 2,145,000
41,100 Duke Power Co.......... 1,708,758 1,844,361
36,300 SBC Communications Inc. 1,537,533 1,960,200
47,400 Sprint Corp............ 1,424,209 1,896,000
----------- -----------
6,281,118 7,845,561
----------- -----------
TOTAL COMMON STOCKS ... 68,190,087 84,527,550
----------- -----------
SHORT TERM INVESTMENTS -- 2.44%
$2,116,832 TempCash Provident
Money Market
Investment Fund...... 2,116,832 2,116,832
----------- -----------
TOTAL SHORT TERM
INVESTMENTS ......... 2,116,832 2,116,832
----------- -----------
TOTAL
INVESTMENTS--100.04% $70,306,919+ 86,644,382
===========
LIABILITIES IN EXCESS
OF CASH AND OTHER
ASSETS -- (0.04%) (31,644)
-----------
NET ASSETS-- 100.00% .. $86,612,738
===========
+ Cost for book and tax purposes is the same
++ Non-income producing security
See accompanying notes to financial statements.
9
<PAGE>
IBJ FUNDS Trust
GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS -- NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
Market
Shares Cost Value
------ ---- -----
COMMON STOCKS -- 54.38%
AEROSPACE/DEFENSE -- 2.35%
18,000 Loral Corp............. $ 357,750 $ 609,750
13,000 Raytheon Co............ 435,500 578,500
----------- -----------
793,250 1,188,250
----------- -----------
APPAREL -- 1.06%
14,900 Jones Apparel Group
Inc.++ .............. 367,459 538,263
----------- -----------
AUTOMOBILES -- 1.15%
15,900 Echlin Inc............. 534,862 580,350
----------- -----------
BANKING -- 3.49%
13,400 First American Corp.... 400,325 611,375
8,500 Nationsbank Corp....... 407,306 606,688
22,400 Signet Banking Corp.... 495,610 546,000
----------- -----------
1,303,241 1,764,063
----------- -----------
BUILDING MATERIALS-- 1.28%
16,300 Sherwin Williams Co.... 556,185 645,888
----------- -----------
CHEMICALS -- 3.44%
8,000 Air Products &
Chemicals Inc. ...... 414,037 444,000
9,200 Great Lakes Chemical
Corp. ............... 532,235 654,350
5,600 Monsanto Co............ 440,703 641,200
----------- -----------
1,386,975 1,739,550
----------- -----------
COMPUTERS -- 1.96%
7,500 Automatic Data
Processing Inc....... 442,500 597,188
10,400 Reynolds & Reynolds Co. 333,002 396,500
----------- -----------
775,502 993,688
----------- -----------
ELECTRICAL EQUIPMENT-- 1.36%
10,200 General Electric Co.... 543,762 685,950
----------- -----------
ELECTRONICS -- 3.13%
6,700 HewlettPackard Co...... 365,623 555,262
15,400 Molex Inc.............. 452,262 515,900
8,400 Motorola Inc........... 521,564 514,500
----------- -----------
1,339,449 1,585,662
----------- -----------
ENGINEERING -- 1.26%
9,800 Fluor Corp............. 471,382 637,000
----------- -----------
ENTERTAINMENT -- 2.36%
10,300 The Walt Disney Co..... 590,999 619,287
14,400 Time Warner Inc........ 536,995 576,000
----------- -----------
1,127,994 1,195,287
----------- -----------
FINANCIAL SERVICES -- 1.06%
8,600 Household International
Inc. ................ 345,818 537,500
----------- -----------
FOOD -- 4.47%
11,300 Campbell Soup Co....... 500,293 631,387
21,800 Nabisco Holdings Corp.
Class A.............. 603,819 615,850
20,000 Sara Lee Corp.......... 546,511 645,000
12,000 Sysco Corp............. 366,410 367,500
----------- -----------
2,017,033 2,259,737
----------- -----------
HOTELS/MOTELS -- 1.01 %
7,900 Hilton Hotels Corp..... 527,264 510,538
----------- -----------
HOUSEHOLD PRODUCTS-- 1.29%
8,900 ColgatePalmolive Co.... 569,709 651,925
----------- -----------
INSURANCE -- 2.33%
6,700 American International
Group Inc............ 455,588 601,325
21,300 TIG Holdings Inc....... 451,769 575,100
----------- -----------
907,357 1,176,425
----------- -----------
MACHINERY -- 1.11%
14,400 Dover Corp............. 409,500 559,800
----------- -----------
MANUFACTURING -- 1.01%
10,800 Allied Signal Inc...... 382,050 510,300
----------- -----------
MEDICAL -- 1.87%
18,500 Caremark International
Inc. ................ 321,645 363,063
11,300 Columbia HCA Healthcare
Corp................. 467,374 583,362
----------- -----------
789,019 946,425
----------- -----------
METALS -- 1.05%
9,100 Aluminum Company of
America.............. 364,561 532,350
----------- -----------
OIL/GAS -- 4.50%
4,900 Atlantic Richfield Co.. 523,300 531,037
16,600 Enron Corp............. 587,956 622,500
4,500 Mobil Corp............. 389,277 469,688
8,800 Texaco Inc............. 556,823 651,200
----------- -----------
2,057,356 2,274,425
----------- -----------
PHARMACEUTICALS -- 2.18%
19,500 Ivax Corp.............. 433,830 519,187
10,100 Pfizer Inc............. 416,141 585,800
----------- -----------
849,971 1,104,987
----------- -----------
RETAIL -- 4.11 %
16,400 Kroger Co.++........... 389,500 549,400
10,200 May Department Stores Co. 361,828 444,975
28,000 Price/Costco Inc.++.... 394,625 465,500
22,500 Revco D.S. Inc.++...... 469,063 621,563
----------- -----------
1,615,016 2,081,438
----------- -----------
TRANSPORTATION -- 0.58%
6,400 Kansas City Southern
Industries, Inc...... 290,401 296,000
----------- -----------
See accompanying notes to financial statements.
10
<PAGE>
IBJ FUNDS Trust
GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)-- NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
Market
Shares Cost Value
------ ---- -----
COMMON STOCKS -- (CONTINUED)
UTILITIES -- 4.97%
9,600 AT&T Corp.............. $ 475,779 $ 633,600
13,800 Duke Power Co.......... 573,270 619,275
12,000 SBC Communications Inc. 515,443 648,000
15,400 Sprint Corp............ 474,580 616,000
----------- -----------
2,039,072 2,516,875
----------- -----------
TOTAL COMMON STOCKS.... 22,364,188 27,512,676
----------- -----------
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS -- 27.38%
GOVERNMENT AGENCY OBLIGATIONS -- 12.34%
$2,000,000 Federal Home Loan Bank
Discount Notes,
02/16/1996........... 1,976,344 1,975,906
500,000 Federal Home Loan Bank
Medium Term Notes,
6.07%, 06/30/2003.... 488,551 505,695
350,000 Tennessee Valley Authority
Notes, 7.625%,
09/15/1999........... 353,789 354,375
750,000 Federal Home Loan
Mortgage Corp.,
6.54%, 03/21/2001.... 736,930 759,675
500,000 Federal Home Loan
Mortgage Corp.,
6.61%, 06/01/2000.... 505,322 508,885
500,000 Federal Home Loan
Mortgage Corp., 7.445%,
04/14/2004........... 494,219 516,420
500,500 Federal National Mortgage
Association, 6.50%,
08/25/2004........... 459,439 507,634
500,000 Federal National Mortgage
Association Medium Term
Notes, 6.08%,
09/25/2000........... 500,152 505,970
500,000 Federal National Mortgage
Association Medium Term
Notes, 7.52%, 04/23/2004 494,766 518,825
23,448 Government National Mortgage
Association Pool #102470,
13.00%, 10/15/2013... 26,178 26,345
57,025 Government National Mortgage
Association Pool #55056,
13.00%, 03/15/2012... 63,718 64,148
----------- -----------
6,099,408 6,243,878
----------- -----------
U.S. TREASURY OBLIGATIONS -- 15.04%
$ 500,000 Notes, 6.875%, 07/31/1999 $ 509,054 $ 522,160
1,500,000 Notes, 7.00%, 04/15/1999 1,532,221 1,568,730
1,500,000 Notes, 6.375%, 08/15/2002 1,521,557 1,560,585
1,250,000 Notes, 6.25%, 02/15/2003 1,270,695 1,291,487
750,000 Notes, 7.25%, 08/15/2004 793,359 824,033
1,500,000 Notes, 6.50%, 05/15/2005 1,558,255 1,577,940
250,000 Notes, 6.50%, 08/15/2005 258,738 263,045
----------- -----------
7,443,879 7,607,980
----------- -----------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS .. 13,543,287 13,851,858
----------- -----------
CORPORATE OBLIGATIONS -- 14.68%
AUTOMOBILES -- 1.22%
250,000 GMAC Notes, 7.00%,
03/01/2000........... 251,317 258,437
350,000 GMAC Notes, 6.625%,
10/01/2002........... 350,454 356,562
----------- -----------
601,771 614,999
----------- -----------
BANKING -- 1.83%
500,000 BankAmerica Corp. Medium
Term Notes, 7.125%,
05/12/2005........... 505,905 524,375
400,000 Old Kent Financial Sub. Notes,
6.625%, 11/15/2005... 397,808 401,000
----------- -----------
903,713 925,375
----------- -----------
CHEMICALS -- 0.86%
250,000 Dupont El de Nemours Medium
Term Notes, 8.35%,
05/15/1998........... 252,394 264,062
150,000 International Minerals &
Chemicals Debs.,
9.875%, 03/15/2011... 157,954 168,938
----------- -----------
410,348 433,000
----------- -----------
COMPUTERS -- 0.21%
100,000 IBM Corp. Notes, 7.25%,
11/01/2002........... 99,828 106,000
----------- -----------
DURABLE GOODS -- 0.45%
215,000 Xerox Corp. Debs., 9.625%,
09/01/1997........... 221,382 228,706
----------- -----------
FINANCIAL SERVICES -- 1.91 %
250,000 Associates Corp. N.A. Sr. Notes,
7.50%, 04/15/2002.... 251,367 267,500
250,000 Commercial Credit Co. Notes,
6.375%, 09/15/2002... 250,000 254,687
See accompanying notes to financial statements.
11
<PAGE>
IBJ FUNDS Trust
GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)-- NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
Market
Shares Cost Value
------ ---- -----
FINANCIAL SERVICES -- (CONTINUED)
150,000 ITT Financial Debs., 9.375%,
12/15/2001........... $ 161,447 $ 175,125
250,000 JP Morgan Sub Notes, 7.625%,
09/15/2004........... 248,077 270,312
----------- -----------
910,891 967,624
----------- -----------
OIL/GAS -- 2.33%
$350,000 Amoco Canada Debs., 7.95%,
10/01/2022........... 362,758 387,625
250,000 British Gas Financial Debs.,
8.75%, 03/15/1998.... 254,952 265,625
250,000 Exxon Capital Corp. Debs.,
7.75%, 02/14/1996.... 250,114 251,018
250,000 Hydro Quebec Medium Term
Notes, 8.59%, 08/22/2001 251,404 276,250
----------- -----------
1,119,228 1,180,518
----------- -----------
TRANSPORTATION -- 1.23%
300,000 Canadian National Railway Notes,
7.00%, 03/15/2004.... 303,905 307,125
300,000 CSX Corp Notes, 7.00%,
09/15/2002........... 299,280 314,625
----------- -----------
603,185 621,750
----------- -----------
UTILITIES -- 4.64%
300,000 Central Power & Light Notes,
6.875%, 02/01/2003... 308,208 310,125
250,000 Cincinnati Gas & Electric Notes,
6.45%, 02/15/2004.... 249,875 249,062
250,000 Delmarva Power & Light Notes,
6.40%, 07/01/2003.... 248,472 251,563
400,000 Illinois Power Notes, 6.50%,
08/01/2003........... 402,331 405,204
300,000 Pacific Gas & Electric Medium
Term Notes, 9.08%,
12/15/1997........... 306,029 318,375
420,000 Philadelphia Electric Notes,
6.625%, 03/01/2003... 420,000 424,200
400,000 Philadelphia Electric Notes,
6.375%, 08/15/2005... 392,988 393,000
----------- -----------
2,327,903 2,351,529
----------- -----------
TOTAL CORPORATE
OBLIGATIONS 7,198,249 7,429,501
----------- -----------
MUNICIPAL OBLIGATIONS -- 0.82%
$ 377,000 Halifax NC Regional Economic
Development Notes,
9.25%, 10/01/2005.... $ 383,711 $ 416,114
----------- -----------
TOTAL MUNICIPAL
OBLIGATIONS 383,711 416,114
----------- -----------
SUPRA-NATIONAL OBLIGATIONS -- 0.53%
250,000 African Development Bank
Sub. Notes, 7.70%,
07/15/2002........... 260,887 269,688
----------- ------------
TOTAL SUPRA NATIONAL
OBLIGATIONS ......... 260,887 269,688
----------- -----------
SHORT TERM INVESTMENTS -- 1.97%
998,549 TempCash Provident Money
Market Investment Fund 998,549 998,549
----------- -----------
TOTAL SHORT TERM
INVESTMENTS ......... 998,549 998,549
----------- -----------
TOTAL
INVESTMENTS-- 99.76% $44,748,871+ 50,478,386
==========
CASH AND OTHER ASSETS
NET OF LIABILITIES-- 0.24% 119,947
-----------
NET ASSETS-- 100.00% .. $50,598,333
===========
+ Cost for book and tax purposes is the same.
++ Non-income producing security.
See accompanying notes to financial statements.
12
<PAGE>
IBJ FUNDS Trust
PORTFOLIO OF INVESTMENTS (CONTINUED)-- NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
*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.
13
<PAGE>
IBJ FUNDS Trust
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
<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 $28,675,036, $25,992,064,
$70,306,919, $44,748,871)............................. $28,675,036 $26,714,169 $86,644,382 $50,478,386
Cash.................................................... 260,756 6,053 11,512 8,747
Receivable for investments sold......................... 0 264,460 57,783 281,795
Receivable for Fund shares sold......................... 0 4,538 14,424 34,791
Interest receivable..................................... 2,055 440,450 9,685 293,609
Dividends receivable.................................... 0 0 190,969 62,370
Receivable from sponsor (Note 3)........................ 46,886 0 0 0
Deferred organization expenses (Note 2e)................ 23,987 23,987 23,987 23,987
----------- ----------- ----------- -----------
Total assets........................................ 29,008,720 27,453,657 86,952,742 51,183,685
----------- ----------- ----------- -----------
LIABILITIES
Payable for investments purchased....................... 0 514,109 181,856 443,380
Payable for Fund shares redeemed........................ 0 623 12,516 31,920
Income distribution payable (Note 2c)................... 0 0 0 0
Advisory fee payable (Note 3)........................... 7,097 8,722 34,497 20,467
Administrative fee payable (Note 3)..................... 3,551 3,271 10,349 6,146
Accrued expenses........................................ 42,365 64,085 100,786 83,439
----------- ----------- ----------- -----------
Total liabilities................................... 53,013 590,810 340,004 585,352
----------- ----------- ----------- -----------
NET ASSETS.............................................. $28,955,707 $26,862,847 $86,612,738 $50,598,333
=========== =========== =========== ===========
NET ASSETS CONSIST OF:
Capital Stock, $.001 par value
per share; (unlimited shares authorized).............. $ 28,959 $ 2,507 $ 6,677 $ 4,293
Additional paid-in capital.............................. 28,929,682 25,183,688 66,373,741 43,704,123
Accumulated undistributed/(excess distributions of) net
investment income..................................... 0 0 839,554 (12,866)
Accumulated undistributed net realized gain/(loss) on investments (2,934) 954,547 3,055,303 1,173,268
Net unrealized appreciation of investments.............. 0 722,105 16,337,463 5,729,515
----------- ----------- ----------- -----------
NET ASSETS.............................................. $28,955,707 $26,862,847 $86,612,738 $50,598,333
=========== =========== =========== ===========
SHARES OF BENEFICIAL INTEREST
Premium Class:
Net assets.............................................. $ 13,123 $ 14,091 $ 16,292 $ 15,166
=========== =========== =========== ===========
Shares of beneficial interest outstanding............... 13,124 1,315 1,256 1,287
=========== =========== =========== ===========
Net asset value per share (Net Assets / Shares Outstanding) $ 1.00 $ 10.72 $ 12.97 $ 11.78
Service Class:
Net assets.............................................. $28,942,584 $26,848,756 $86,596,446 $50,583,167
=========== =========== =========== ===========
Shares of beneficial interest outstanding............... 28,945,517 2,505,331 6,675,290 4,292,094
=========== =========== =========== ===========
Net asset value per share (Net Assets / Shares Outstanding) $ 1.00 $ 10.72 $ 12.97 $ 11.79
See accompanying notes to financial statements.
</TABLE>
14
<PAGE>
IBJ FUNDS Trust
STATEMENT OF OPERATIOINS
FOR THE PERIOD FEBRUARY 1, 1995* TO NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RESERVE MONEY CORE EQUITY GROWTH AND
MARKET FUND BOND FUND FUND INCOME FUND
------------ ---------- ---------- ----------
<S> <C> <C> <C> <C>
Investment income:
Interest income....................................... $1,262,054 $ 1,306,925 $ 168,231 $1,080,474
Dividend income....................................... 0 0 1,246,534 383,216
---------- ---------- ----------- ----------
Total Income........................................ 1,262,054 1,306,925 1,414,765 1,463,690
---------- ---------- ----------- ----------
Expenses:
Advisory (Note 3)..................................... 74,958 96,897 387,797 214,009
Administrative services (Note 3)...................... 31,630 29,070 97,007 53,463
Fund accounting fees and expenses (Note 3)............ 26,667 30,757 27,854 40,164
Audit................................................. 11,000 18,000 18,000 18,000
Legal................................................. 12,005 10,276 31,814 19,405
Registration.......................................... 9,250 9,833 22,375 13,042
Custodian fees........................................ 6,000 6,672 21,000 10,333
Amortization of organization expense.................. 4,788 4,788 4,788 4,788
Printing.............................................. 4,109 4,109 4,411 4,109
Trustees'............................................. 3,975 3,975 3,975 3,975
Insurance............................................. 2,416 2,341 7,693 3,837
Transfer and shareholder servicing agent (Note 3)..... 2,958 2,567 2,215 2,125
Miscellaneous......................................... 3,781 18,700 10,723 22,754
---------- ---------- ----------- ----------
Total expenses before waivers/reimbursements........ 193,537 237,985 639,652 410,004
Less expenses waived/reimbursed..................... (58,589) (19,383) (64,441) (35,817)
---------- ---------- ----------- ----------
Net expenses........................................ 134,948 218,602 575,211 374,187
---------- ---------- ----------- ----------
Net investment income................................... 1,127,106 1,088,323 839,554 1,089,503
---------- ---------- ----------- ----------
Net realized and unrealized gain/(loss) on investments:
Net realized gain/(loss) on investments................. (2,934) 954,547 3,055,303 1,173,268
Net increase in unrealized appreciation of investments.. 0 722,105 16,337,463 5,729,515
---------- ---------- ----------- ----------
Net realized and unrealized gain/(loss) on investments (2,934) 1,676,652 19,392,766 6,902,783
---------- ---------- ----------- ----------
Net increase in net assets resulting from operations.... $1,124,172 $ 2,764,975 $20,232,320 $7,992,286
========== ========== =========== ==========
*Commencement of Operations.
See accompanying notes to financial statements.
</TABLE>
15
<PAGE>
IBJ FUNDS Trust
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD FEBRUARY 1, 1995* TO NOVEMBER 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RESERVE MONEY CORE EQUITY GROWTH AND
MARKET FUND BOND FUND FUND INCOME FUND
------------ ---------- ---------- ----------
<S> <C> <C> <C> <C>
Operations:
Net investment income............................... $ 1,127,106 $ 1,088,323 $ 839,554 $ 1,089,503
Net realized gain/(loss) on investments............. (2,934) 954,547 3,055,303 1,173,268
Net change in unrealized appreciation of investments 0 722,105 16,337,463 5,729,515
----------- ----------- ----------- -----------
Net increase in net assets resulting from operations.... 1,124,172 2,764,975 20,232,320 7,992,286
----------- ----------- ----------- -----------
Dividends to shareholders from net investment income:
Premium Class....................................... (564) (623) 0 (348)
Service Class....................................... (1,126,542) (1,087,700) 0 (1,102,021)
----------- ----------- ----------- -----------
Decrease in net assets resulting from dividends
to shareholders................................... (1,127,106) (1,088,323) 0 (1,102,369)
----------- ----------- ----------- -----------
Capital Share Transactions:
Proceeds from sales of shares:
Premium Class....................................... 60 60 60 60
Service Class....................................... 66,759,082 29,612,433 89,149,468 48,843,232
----------- ----------- ----------- -----------
66,759,142 29,612,493 89,149,528 48,843,292
----------- ----------- ----------- -----------
Net asset value of shares issued to shareholders in
reinvestment of dividends:
Premium Class....................................... 564 623 0 348
Service Class....................................... 1,126,542 1,087,700 0 1,102,021
----------- ----------- ----------- -----------
1,127,106 1,088,323 0 1,102,369
----------- ----------- ----------- -----------
Net asset value of shares redeemed:
Premium Class....................................... 0 0 0 0
Service Class....................................... (38,952,607) (5,539,621) (22,794,110) (6,262,245)
----------- ----------- ----------- -----------
(38,952,607) (5,539,621) (22,794,110) (6,262,245)
----------- ----------- ----------- -----------
Net increase in net assets from capital share
transactions ..................................... 28,933,641 25,161,195 66,355,418 43,683,416
----------- ----------- ----------- -----------
Total increase in net assets............................ 28,930,707 26,837,847 86,587,738 50,573,333
Net assets:
Beginning of period................................. 25,000 25,000 25,000 25,000
----------- ----------- ----------- -----------
End of period (includes undistributed/(excess distributions
of) net investment income of $0, $0, $839,554 and
$(12,866), respectively).......................... $28,955,707 $26,862,847 $86,612,738 $50,598,333
=========== =========== =========== ===========
*Commencement of Operations.
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
IBJ FUNDS Trust
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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
Incorporated ("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 period ended November 30, 1995, the Adviser earned
fees of $74,958, $96,897, $387,797 and $214,009 for the Reserve Money Market
Fund, Bond Fund, Core Equity Fund and Growth and Income Fund, respectively. The
Adviser has voluntarily waived fees of $11,703, $19,383, $64,441 and $35,817 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
$31,630, $29,070, $97,007 and $53,463 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 period ended November 30, 1995, Furman Selz earned Transfer Agency fees
of $2,958, $2,567, $2,215 and $2,125 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 period ended
November 30, 1995, Furman Selz earned Fund Accounting fees and expenses of
$26,667, $30,757, $27,854 and $40,164 for the Reserve Money Market Fund, Bond
Fund, Core Equity Fund and Growth and Income Fund, respectively.
The Adviser has voluntarily agreed to cap the expense ratio for the Reserve
Money Market Fund at 0.64%. In order to maintain this ratio the Adviser has
agreed to reimburse $46,886 to the Fund.
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
18
<PAGE>
IBJ FUNDS Trust
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
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.
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 period
ended November 30, 1995 were as follows:
<TABLE>
<CAPTION>
COMMON STOCKS & BONDS U.S. GOVERNMENT OBLIGATIONS
------------------------------ ------------------------------
PURCHASES SALES PURCHASES SALES
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
Bond Fund......................................... $14,373,522 $ 3,259,270 $68,695,946 $55,361,447
Core Equity Fund.................................. 92,741,272 27,606,488 0 0
Growth and Income Fund............................ 38,786,295 8,978,221 30,041,652 19,210,190
</TABLE>
(b) Federal income tax basis. Gross unrealized appreciation and
depreciation on investment securities at November 30, 1995, based on cost for
Federal income tax purposes, is as follows:
<TABLE>
<CAPTION>
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
APPRECIATION DEPRECIATION (DEPRECIATION)
----------- ----------- -----------
<S> <C> <C> <C>
Bond Fund................................................ .$ 722,917 $ (812) $ 722,105
Core Equity Fund.......................................... 16,383,782 (46,319) 16,337,463
Growth and Income Fund.................................... 5,754,555 (25,040) 5,729,515
</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>
FOR THE PERIOD FEBRUARY 1, 1995* TO NOVEMBER 30, 1995
-----------------------------------------------------------
RESERVE GROWTH AND
MONEY MARKET BOND CORE EQUITY INCOME
FUND FUND FUND FUND
------------ ---------- ---------- ----------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Shares at beginning of period............................. 12,500 1,250 1,250 1,250
----------- --------- --------- ---------
Shares sold............................................... 60 6 6 6
Shares issued in reinvestment of dividends from net
investment income...................................... 564 59 0 31
----------- --------- --------- ---------
Net increase in shares.................................... 624 65 6 37
----------- --------- --------- ---------
Shares at end of period................................... 13,124 1,315 1,256 1,287
=========== ========= ========= =========
SERVICE CLASS
Shares at beginning of period............................. 12,500 1,250 1,250 1,250
----------- --------- --------- ---------
Shares sold............................................... 66,759,082 2,930,127 8,685,326 4,761,936
Shares issued in reinvestment of dividends from net
investment income...................................... 1,126,542 103,626 0 98,242
Shares redeemed........................................... (38,952,607) (529,672) (2,011,286) (569,334)
----------- --------- --------- ---------
Net increase in shares.................................... 28,933,017 2,504,081 6,674,040 4,290,844
----------- --------- --------- ---------
Shares at end of period................................... 28,945,517 2,505,331 6,675,290 4,292,094
=========== ========= ========= =========
*Commencement of Operations.
</TABLE>
20
<PAGE>
<TABLE>
<CAPTION>
IBJ FUNDS Trust
FINANCIAL HIGHLIGHTS
FOR THE PERIOD FEBRUARY 1, 1995 (COMMENCEMENT OF OPERATIONS) TO NOVEMBER 30, 1995
- ---------------------------------------------------------------------------------
RESERVE MONEY GROWTH AND
MARKET FUND BOND FUND CORE EQUITY FUND INCOME FUND
------------------ ------------------ ------------------ ------------------
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 $10.00 $10.00 $10.00 $ 10.00 $10.00 $ 10.00
------ ------ ------ ------- ------ ------- ------ -------
Income from Investment Operations:
Net investment income.............. 0.04 0.04 0.48 0.48 0.13 0.13 0.27 0.31
Net realized and unrealized gain/(loss) on
investments...................... 0 00 0.00 0.72 0.72 2.84 2.84 1.79 1.79
------ ------ ------ ------- ------ ------- ------ -------
Total from Investment Operations... 0.04 0.04 1.20 1.20 2.97 2.97 2.06 2.10
------ ------ ------ ------- ------ ------- ------ -------
Less Distributions:
Dividends from net investment income (0.04) (0.04) (0.48) (0.48) 0.00 0.00 (0.28) (0.3)
------ ------ ------ ------- ------ ------- ------ -------
Net Asset Value, End of Period......... $ 1.00 $ 1.00 $10.72 $ 10.72 $12.97 $ 12.97 $11.78 $ 11.79
====== ====== ====== ======= ====== ======= ====== =======
Total Return........................... 4.55% 4.55% 12.28% 12.28% 29.70% 29.70% 20.72% 20.82%
Net Assets, End of Period (in thousands) $13 $28,943 $14 $26,849 $16 $86,596 $15 $50,583
Ratios to average net assets of:
Net investment income.............. 5.35%* 5.35%* 5.59%* 5.59%* 1.30%* 1.29%* 3.04%* 3.04%*
Expenses before waivers/reimbursements 0.92 %*0.92 %*1.22 %*1.22 %*0.99 %*0.99 %*1.14 %*1.15 %*
Expenses net waivers/reimbursements 0.64 %*0.64 %*1.12 %*1.12 %*0.89 %*0.89 %*1.04 %*1.05 %*
Portfolio Turnover Rate................ N/A N/A 297% 297% 37% 37% 78% 78%
- ------------------
+ 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.
</TABLE>
See accompanying notes to financial statements.
21
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To The Shareholders and Board of Trustees of IBJ Funds Trust:
We have audited the accompanying statement of assets and liabilities of IBJ
Funds Trust, comprised of the IBJ Reserve Money Market Fund, IBJ Bond Fund, IBJ
Core Equity Fund and IBJ Growth and Income Fund, including the portfolios of
investments, as of November 30, 1995, and the related statements of operations,
changes in net assets and the financial highlights for the period February 1,
1995 (commencement of operations) to November 30, 1995. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
November 30, 1995 by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
each of the respective funds constituting IBJ Funds Trust as of November 30,
1995, the results of their operations, the changes in their net assets and their
financial highlights for the period February 1, 1995 (commencement of
operations) to November 30, 1995, in conformity with generally accepted
accounting principles.
Coopers & Lybrand L.L.P.
New York, New York
January 12, 1996
<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
- --------------------------------------------------------------------------------
OFFICERS
John J. Pileggi Gordon M. Forrester
President Vice President &
Treasurer
Joan V. Fiore
Secretary Sheryl Hirschfeld
Assistant Secretary
<PAGE>
IBJ FUNDS Trust
Investment Adviser
- ----------------
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
Administrator and Sponsor
- ----------------------
Furman Selz LLC
(formerly Furman Selz Incorporated)
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
Independent Accountants
- ---------------------
Coopers & Lybrand L.L.P.
1301 Avenue of the Americas
New York, New York 10019
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
ANNUAL REPORT
------------------------------
NOVEMBER 30, 1995
------------------------------
