<PAGE>
IBJ FUNDS TRUST
IBJ RESERVE MONEY MARKET FUND
IBJ CORE FIXED INCOME FUND
IBJ CORE EQUITY FUND
IBJ BLENDED TOTAL RETURN FUND
- -------------------------------------------------------------------------------
Dear Shareholder:
The Semi-Annual Report of the IBJ Funds Trust covers the six months ended
May 31, 1997. Since our last Report, please note that the Growth and Income
Fund has been renamed the Blended Total Return Fund in order to better reflect
its investment objective. In addition, the Bond Fund has been renamed the Core
Fixed Income Fund. There has been no material change to the manner in which
the Funds are managed. Finally, the Core Equity Fund has been reclassified by
Morningstar as a "Large Cap Blend" fund; as such, we shall compare our
performance to this universe henceforth.
ECONOMIC COMMENTARY
Economic activity in the first half of 1997 has been quite robust, with the
first quarter GDP growing at an annual rate of 5.9% and the second quarter
moderating from this exceptionally high level to the vicinity of 2.0%. Despite
the fairly strong pace of economic growth, inflation remained in check.
Interest rates showed some upward movement as the Federal Reserve Board
tightened monetary policy a notch by raising the Federal Funds rate 1/4%. This
was viewed mostly as a preemptive move designed to ward off future
inflationary pressures. The economy continues in good health with unemployment
at a 23-year low; inflation at a 34-year low; and consumer confidence at a 28-
year high. Fiscal policy has also been favorable as a strong economy produced
better than expected revenues, thus driving down the Federal deficit below $50
billion, a level not seen in several years. Congress has also reached an
agreement to balance the Federal budget by the year 2002. These developments
have been generally favorable for the 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 past six months, the Fund's
total rate of return was 2.4%. As of May 31, 1997, the seven day yield was
5.06%. While we expect continued stability in short term rates during the next
six months, the Fund's returns will tend to move with the general trend of
Federal Reserve monetary policy. The Fund is neither insured nor guaranteed by
the U.S. Government, and there can be no assurance that the Fund will maintain
a stable NAV of $1.00 per share.
CORE FIXED INCOME 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 a
total rate of return from both current income and capital appreciation. For
the six-month period, the total rate of return for the Fund was 0.59% which
compares to 0.79% for the Morningstar Intermediate Term Bond Index. This Index
tracks the performance of the Morningstar Category of taxable bond funds
holding U.S.
1
<PAGE>
government and corporate obligations with an average duration of between four
and ten years. As previously mentioned, interest rates moved up slightly such
that the decline in bond prices offset much of the interest income earned on
the bond holdings. Total returns from bonds will almost always fare better in
a declining rate environment. To improve the potential return of the Fund, we
have recently initiated some investments in high yield corporate bonds. While
slightly less than "investment grade", these securities are still of good
quality with relatively short maturities.
CORE EQUITY FUND
The Fund is invested in a broadly diversified portfolio of medium and larger
capitalization U.S. companies. For the six-month period, the total rate of
return was 9.47%, which compares to 10.47% for the Morningstar Large Cap Blend
Index. This Index tracks the performance of the Morningstar category of equity
funds primarily invested in large market capitalization stocks utilizing a
blended investment style. Investor enthusiasm continues unabated, but it is
doubtful that the substantially above average returns we have seen over the
last 2 1/2 years can continue at the same pace.
BLENDED TOTAL RETURN FUND
The Fund is invested in a diversified mix of stocks, bonds and cash
equivalents to provide a combination of capital growth and current income. As
with the Core Fixed Income Fund, we have recently added some issues of higher
yielding corporate bonds in order to enhance potential returns. During the
six-month period, the Fund returned 5.21%, which compares to 5.63% for the
Morningstar Domestic Hybrid Fund Index. This Index tracks the performance of
the Morningstar category of funds invested in both U.S. equity and fixed
income securities with an equity portion not to exceed 70% of total fund
assets. The Fund maintained a somewhat conservative stance with regard to
equity exposure relative to its peer group with stocks averaging about 50% of
the portfolio.
Sincerely,
/s/ Charles Porten
Charles Porten
Chief Investment Officer
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
2
<PAGE>
IBJ FUNDS TRUST
IBJ RESERVE MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS--MAY 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Yield to
Maturity at
Credit Time of Maturity Shares/ Value
Rating* Purchase Date Principal (Note 2a)
------- ----------- -------- ---------- -----------
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER--48.54%
A1/P1 Alabama Power Co........ 5.57% 7/11/97 $1,500,000 $ 1,490,717
A1/P1 BAT Capital Corp........ 5.54 6/11/97 1,500,000 1,497,692
A1/P1 Brown-Forman............ 5.60 6/17/97 1,500,000 1,496,267
A1+/P1 Cargill, Inc............ 5.49 6/12/97 1,500,000 1,497,484
A1/P1 Ford Motor Credit Co.... 5.54 7/8/97 1,500,000 1,491,459
A1+/P1 National Rural Electric. 5.56 6/20/97 1,500,000 1,495,598
A1/P1 Philip Morris Cos.,
Inc.................... 5.54 6/9/97 1,500,000 1,498,153
A1/P1 Pepsico, Inc............ 5.50 7/14/97 1,500,000 1,490,146
A1+/P1 Toyota Motor Credit
Corp................... 5.50 6/3/97 1,500,000 1,499,542
A1/P1 Xerox Credit Corp....... 5.50 7/7/97 1,500,000 1,491,750
-----------
TOTAL COMMERCIAL PAPER.. 14,948,808
-----------
U.S. GOVERNMENT OBLIGATIONS--51.33%
AAA/Aaa Federal Farm Credit
Bank................... 5.45 8/13/97 3,775,000 3,733,281
AAA/Aaa Federal Home Loan Bank
Discount Notes......... 5.38 6/19/97 2,600,000 2,593,006
AAA/Aaa Federal Home Loan Bank
Discount Notes......... 5.43 6/26/97 3,000,000 2,988,687
AAA/Aaa Federal Home Loan Bank
Discount Notes......... 5.37 7/2/97 3,500,000 3,483,815
AAA/Aaa FMC Discount Notes...... 5.50 7/23/97 1,000,000 992,056
AAA/Aaa FMC Discount Notes...... 5.43 6/13/97 2,020,000 2,016,320
-----------
TOTAL U.S. GOVERNMENT
OBLIGATIONS............. 15,807,165
-----------
SHORT-TERM INVESTMENTS--0.43%
TempCash Provident Money
Market Investment Fund. N/A N/A 133,372 133,372
-----------
TOTAL INVESTMENTS
(AMORTIZED COST
$30,889,345)(A)........ $30,889,345
LIABILITIES, IN EXCESS
OF CASH AND OTHER
ASSETS--0.30%.......... (92,578)
-----------
NET ASSETS--100.00%..... $30,796,767
===========
</TABLE>
*See page 12 for credit ratings summary.
(a) Cost for book and tax purposes is the same.
See accompanying notes to financial statements
3
<PAGE>
IBJ FUNDS TRUST
IBJ CORE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS--MAY 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit* Value
Rating Principal Cost (Note 2a)
------- ---------- ----------- -----------
<C> <C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--2.43%
AAA/Aaa $ 650,000 Federal Farm Credit MTN. 6.32%, 9/9/02 $ 649,797 $ 639,691
----------- -----------
MORTGAGE OBLIGATIONS--18.47%
AAA/Aaa 500,000 FHLMC Debs.............. 6.54%, 3/21/01 496,664 494,815
AAA/Aaa 500,000 FHLMC Debs.............. 6.56%, 2/1/06 499,844 480,955
AAA/Aaa 17,082 FHLMC Pool # 285113..... 7.50%, 2/1/17 16,696 17,067
AAA/Aaa 628,558 FNMA Pool # 358604...... 8.00%, 11/1/26 645,573 639,287
AAA/Aaa 2,000,000 FMC Discount Note....... 5.40%, 6/12/97 1,996,700 1,996,100
AAA/Aaa 2,823 GNMA Pool # 39821....... 11.50%, 4/15/10 3,065 3,140
AAA/Aaa 97,656 GNMA Pool # 102627...... 13.00%, 6/15/14 109,042 109,944
AAA/Aaa 72,941 GNMA Pool # 115224...... 13.00%, 11/15/14 81,386 82,041
AAA/Aaa 38,529 GNMA Pool # 120883...... 13.00%, 12/15/14 42,968 43,283
AAA/Aaa 402,505 GNMA Pool # 423877...... 8.00%, 7/15/26 410,680 410,031
AAA/Aaa 423,638 GNMA Pool # 432232...... 8.00%, 1/15/27 432,243 431,577
AAA/Aaa 155,152 GNMA Pool # 445081...... 8.00%, 1/15/27 158,303 158,059
----------- -----------
4,893,164 4,866,299
----------- -----------
TOTAL U.S. GOVERNMENT
OBLIGATIONS............. 5,542,961 5,505,990
----------- -----------
U.S. TREASURY OBLIGATIONS--40.93%
AAA/Aaa 2,250,000 Bonds................... 7.25%, 8/15/22 2,253,536 2,311,673
AAA/Aaa 1,500,000 Bonds................... 6.88%, 8/15/25 1,541,462 1,481,340
AAA/Aaa 500,000 Notes................... 6.38%, 5/15/99 506,754 501,375
AAA/Aaa 1,750,000 Notes................... 6.75%, 6/30/99 1,766,941 1,767,675
AAA/Aaa 500,000 Notes................... 6.75%, 4/30/00 503,134 504,930
AAA/Aaa 650,000 Notes................... 6.63%, 4/30/02 653,525 652,360
AAA/Aaa 1,500,000 Notes................... 6.875%, 5/15/06 1,541,820 1,518,465
AAA/Aaa 2,000,000 Notes................... 7.00%, 7/15/06 2,079,709 2,041,680
----------- -----------
TOTAL U.S. TREASURY
OBLIGATIONS............. 10,846,881 10,779,498
----------- -----------
CORPORATE OBLIGATIONS--34.95%
AUTOMOBILES--1.53%
A-/A3 General Motors
400,000 Acceptance Corp. Notes.. 7.00%, 3/1/00 401,802 403,000
----------- -----------
BANKING--0.75%
A+/A1 200,000 BankAmerica Corp. MTN... 7.13%, 5/12/05 202,098 198,500
----------- -----------
DURABLE GOODS--1.03%
A-/Baa1 250,000 Whirlpool Corp. Debs.... 9.00%, 3/1/03 256,997 272,187
----------- -----------
ENVIRONMENTAL CONTROL--0.91%
A/A3 Browning-Ferris
Industries, Inc. Sr.
250,000 Notes.................. 6.10%, 1/15/03 252,730 238,750
----------- -----------
FINANCIAL SERVICES--2.82%
AA-/Aa3 Associates Corp. N.A.
350,000 Sr. Notes............... 7.50%, 4/15/02 351,510 358,750
A+/A1 Commercial Credit Co.
385,000 Notes................... 6.88%, 5/1/28 389,168 384,519
----------- -----------
740,678 743,269
----------- -----------
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
IBJ FUNDS TRUST
IBJ CORE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)--MAY 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit* Value
Rating Principal Cost (Note 2a)
--------- ---------- ----------- -----------
<C> <C> <S> <C> <C> <C>
FOOD--1.28%
BBB/Baa2 $ 350,000 Nabisco, Inc. Notes..... 6.85%, 6/15/05 $ 356,487 $ 337,750
----------- -----------
FOREST PRODUCTS & PAPER--2.30%
BBB/Baa1 Champion International
325,000 Corp. Sr. Notes......... 7.70%, 12/15/99 334,283 333,531
B+/B1 Fort Howard Corp. Sr.
256,000 Notes................... 9.25%, 3/15/01 267,143 272,960
----------- -----------
601,426 606,491
----------- -----------
INDUSTRIAL GOODS & SERVICES--2.96%
B+/B1 American Standard Sr.
200,000 Notes................... 9.88%, 6/1/01 210,059 211,250
BBB-/Baa3 Panamerican Beverage,
150,000 Inc. Sr. Notes.......... 8.13%, 4/1/03 150,559 151,875
BB+/Ba2 200,000 USG Corp. Sr. Notes..... 6.25%, 9/15/01 213,369 211,250
BB-/Ba3 Westpoint Stevens, Inc.
200,000 Sr. Notes............... 8.75%, 12/15/01 205,955 206,000
----------- -----------
779,942 780,375
----------- -----------
MACHINES--0.79%
BBB/Baa2 210,000 Case Corp. Notes........ 7.25%, 8/1/05 212,935 207,375
----------- -----------
OIL/GAS--3.99%
AAA/Aa1 Amoco Canada Petroleum
250,000 Co. Debs................ 7.95%, 10/1/22 258,902 258,125
BB/Ba3 Clark Oil Refinery Sr.
251,000 Notes................... 10.50%, 12/1/01 260,756 259,158
BB-/Ba2 Gulf Canada Resources
250,000 Ltd. Sub. Notes......... 9.63%, 7/1/05 271,163 266,875
A+/A2 250,000 Hydro--Quebec MTN....... 8.59%, 8/22/01 251,133 265,000
----------- -----------
1,041,954 1,049,158
----------- -----------
RETAIL--0.99%
BBB-/Ba1 Revco D.S., Inc. Sr.
250,000 Notes................... 9.13%, 1/15/00 260,456 261,562
----------- -----------
TELEPHONE--1.52%
AA-/A2 Southwestern Bell
400,000 Capital MTN............. 6.45%, 1/20/98 401,117 401,248
----------- -----------
TRANSPORTATION--4.47%
BBB/Baa2 Canadian National
411,000 Railway Notes........... 7.00%, 3/15/04 410,001 403,808
BBB+/Baa2 140,000 Canadian Pacific Notes.. 6.88%, 4/15/03 141,427 138,600
A/Aa1 350,000 Conrail, Inc. Notes..... 6.86%, 12/31/07 344,435 336,205
BBB/Baa2 300,000 CSX Corp. Notes......... 7.00%, 9/15/02 299,280 299,625
----------- -----------
1,195,143 1,178,238
----------- -----------
UTILITIES--9.61%
BB+/Ba2 200,000 California Energy Notes. 10.25%, 1/15/04 216,656 215,750
A/A3 Central Power & Light
350,000 Notes................... 6.88%, 2/1/03 357,921 347,375
BBB-/Ba1 Connecticut Light &
295,000 Power Notes............. 7.25%, 7/1/99 293,573 298,688
BBB-/Baa3 Consumer Energy Co.
284,000 Notes................... 6.88%, 5/1/98 284,000 285,065
BBB/Baa1 300,000 Illinois Power Notes.... 6.50%, 8/1/03 301,465 291,000
BBB+/Baa1 Jersey Central Power &
300,000 Light Notes............. 7.13%, 10/1/04 308,019 295,875
AA/Aa3 National Rural Utilities
400,000 Notes................... 6.50%, 9/15/02 402,029 393,000
</TABLE>
See accompanying notes to financial statements
5
<PAGE>
IBJ FUNDS TRUST
IBJ CORE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)--MAY 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit* Value
Rating Principal Cost (Note 2a)
-------- ---------- ----------- -----------
<C> <C> <S> <C> <C> <C>
BBB/Baa2 New Orleans Public
$ 400,000 Service, Inc. Notes..... 8.00%, 3/1/06 $ 396,603 $ 401,000
----------- -----------
2,560,266 2,527,753
----------- -----------
TOTAL CORPORATE
OBLIGATIONS............. 9,264,031 9,205,656
----------- -----------
SUPRA--NATIONAL OBLIGATIONS--0.98%
AA-/Aa1 African Development Bank
250,000 Notes................... 7.70%, 7/15/02 258,848 259,375
----------- -----------
SHORT-TERM INVESTMENTS--1.27%
TempCash Provident Money
333,490 Market Investment Fund.. 333,491 333,490
----------- -----------
TOTAL INVESTMENTS....... $26,246,212(a) 26,084,009
===========
CASH AND OTHER ASSETS,
NET OF LIABILITIES--
0.97%.................. 254,164
-----------
NET ASSETS--100.0%...... $26,338,173
===========
</TABLE>
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................................ $ 124,929
Unrealized depreciation........................................ (287,132)
---------
Net unrealized depreciation.................................... $(162,203)
=========
</TABLE>
*See page 12 for credit ratings summary
Debs.--Debentures
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GNMA--Government National Mortgage Association
MTN--Medium Term Notes
Sr.--Senior
Sub.--Subordinated
See accompanying notes to financial statements
6
<PAGE>
IBJ FUNDS TRUST
IBJ CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS--MAY 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Shares Cost (Note 2a)
------ ----------- ------------
<C> <S> <C> <C>
COMMON STOCKS--98.30%
AEROSPACE/DEFENSE--5.73%
26,900 AlliedSignal, Inc............................ $ 951,588 $ 2,064,575
42,700 Raytheon Co.................................. 1,516,425 2,038,925
20,400 United Technologies Corp..................... 1,121,262 1,639,650
----------- ------------
3,589,275 5,743,150
----------- ------------
AUTOMOTIVE PARTS--REPLACEMENT--0.50%
13,197 Autoliv, Inc.*............................... 455,779 491,577
----------- ------------
BANKING--5.61%
31,800 NationsBank Corp............................. 757,498 1,872,225
59,500 Signet Banking Corp.......................... 1,402,388 1,956,062
6,800 Wells Fargo & Co............................. 1,937,023 1,791,800
----------- ------------
4,096,909 5,620,087
----------- ------------
BEVERAGES--2.18%
59,600 PepsiCo, Inc................................. 1,853,004 2,190,300
----------- ------------
BUSINESS SERVICES--4.03%
43,900 Automatic Data Processing, Inc............... 1,373,123 2,156,587
80,800 Reynolds & Reynolds Co....................... 1,471,656 1,888,700
----------- ------------
2,844,779 4,045,287
----------- ------------
CHEMICALS--5.16%
23,300 Air Products & Chemicals, Inc................ 1,228,514 1,811,575
42,200 Monsanto Co.................................. 659,067 1,856,800
46,700 Morton International, Inc.*.................. 1,394,099 1,506,075
----------- ------------
3,281,680 5,174,450
----------- ------------
ELECTRONICS--9.70%
60,000 Coltec Industries, Inc.*..................... 1,191,160 1,177,500
44,000 General Electric Co.......................... 1,220,040 2,656,500
33,600 Hewlett-Packard Co........................... 973,282 1,730,400
51,750 Molex, Inc................................... 1,208,916 2,018,250
32,400 Motorola, Inc................................ 1,943,395 2,150,550
----------- ------------
6,536,793 9,733,200
----------- ------------
ENTERTAINMENT--3.59%
30,000 Time Warner, Inc............................. 1,338,150 1,395,000
26,900 The Walt Disney Co........................... 1,538,052 2,202,437
----------- ------------
2,876,202 3,597,437
----------- ------------
FINANCIAL SERVICES--2.08%
21,200 Household International, Inc................. 932,081 2,082,900
----------- ------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares Cost (Note 2a)
------ ----------- ------------
<C> <S> <C> <C>
FOOD--5.59%
45,000 Nabisco Holdings Corp.--
Class A..................................... $ 1,246,672 $ 1,783,125
46,300 Sara Lee Corp................................ 1,284,988 1,892,513
55,500 Sysco Corp................................... 1,722,940 1,935,563
----------- ------------
4,254,600 5,611,201
----------- ------------
HOUSEHOLD PRODUCTS--2.16%
35,000 Colgate-Palmolive Co......................... 1,082,812 2,170,000
----------- ------------
INSURANCE--3.69%
15,500 American International Group, Inc............ 1,053,980 2,098,312
59,300 TIG Holdings, Inc............................ 1,355,467 1,601,100
----------- ------------
2,409,447 3,699,412
----------- ------------
MACHINES--1.88%
33,000 Dover Corp................................... 972,200 1,889,250
----------- ------------
MEDICAL--1.65%
45,300 Columbia/HCA Healthcare Corp................. 1,242,265 1,659,112
----------- ------------
METALS--3.20%
27,900 Aluminum Co. of America...................... 1,110,376 2,054,137
62,300 Worthington Industries, Inc.................. 1,278,000 1,152,550
----------- ------------
2,388,376 3,206,687
----------- ------------
OIL/GAS--8.53%
12,300 Atlantic Richfield Co........................ 1,306,875 1,789,650
27,000 Enron Corp................................... 978,855 1,100,250
15,000 Mobil Corp................................... 1,338,760 2,098,125
35,400 Noble Affiliates, Inc........................ 1,363,657 1,491,225
48,800 Unocal Corp.................................. 1,980,532 2,080,100
----------- ------------
6,968,679 8,559,350
----------- ------------
PHARMACEUTICAL--6.00%
58,600 Alza Corp.*.................................. 1,686,921 1,728,700
31,100 Amgen, Inc.*................................. 1,796,332 2,079,813
21,500 Pfizer, Inc.................................. 872,094 2,211,813
----------- ------------
4,355,347 6,020,326
----------- ------------
RETAIL--8.27%
55,100 Costco Cos., Inc.*........................... 778,288 1,859,625
37,500 Fred Meyer, Inc.*............................ 1,393,928 1,720,313
71,000 Kroger Co.*.................................. 843,125 1,819,375
39,000 May Department Stores Co..................... 1,257,102 1,837,875
</TABLE>
See accompanying notes to financial statements
7
<PAGE>
IBJ FUNDS TRUST
IBJ CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)--MAY 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Shares Cost (Note 2a)
------ ----------- ------------
<C> <S> <C> <C>
RETAIL--CONTINUED
25,000 Revco D.S., Inc.*............................ $ 588,351 $ 1,052,751
----------- ------------
4,860,794 8,289,939
----------- ------------
TECHNOLOGY--1.06%
60,000 International Game Technology................ 1,091,710 1,065,000
----------- ------------
TELECOMMUNICATIONS--7.10%
58,199 360 Communications Co.*...................... 1,242,858 1,098,506
28,936 Lucent Technologies, Inc..................... 1,417,111 1,841,053
35,300 SBC Communications, Inc...................... 1,541,117 2,065,050
43,400 Sprint Corp.................................. 1,066,846 2,121,175
----------- ------------
5,267,932 7,125,784
----------- ------------
TEXTILES/APPAREL--1.83%
39,100 Jones Apparel Group, Inc.*................... 464,313 1,832,813
----------- ------------
TOBACCO--1.05%
24,000 Philip Morris Cos., Inc...................... 726,224 1,056,000
----------- ------------
TRANSPORTATION--3.80%
35,000 Kansas City Southern Industries, Inc......... 1,571,220 1,920,625
19,500 Norfolk Southern Corp........................ 1,570,497 1,893,938
----------- ------------
3,141,717 3,814,563
----------- ------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares Cost (Note 2a)
--------- ----------- ------------
<C> <S> <C> <C>
UTILITIES--3.91%
55,400 Cinergy Corp.......................... $ 1,678,095 $ 1,939,000
44,100 Duke Power Co......................... 1,877,368 1,984,500
----------- ------------
3,555,463 3,923,500
----------- ------------
TOTAL COMMON STOCKS................... 69,248,381 98,601,325
----------- ------------
SHORT TERM INVESTMENTS--1.61%
1,610,375 TempCash Provident Money Market
Investment Fund...................... 1,610,375 1,610,375
----------- ------------
TOTAL INVESTMENTS..................... $70,858,756(a) 100,211,700
===========
CASH AND OTHER ASSETS, NET OF
LIABILITIES--0.09%................... 87,555
------------
NET ASSETS--100.00%................... $100,299,255
============
</TABLE>
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $29,930,402
Unrealized depreciation...................................... (577,458)
-----------
Net unrealized appreciation.................................. $29,352,944
===========
</TABLE>
*Represents non-income producing security.
See accompanying notes to financial statements
8
<PAGE>
IBJ FUNDS TRUST
IBJ BLENDED TOTAL RETURN FUND
PORTFOLIO OF INVESTMENTS--MAY 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Shares Cost (Note 2a)
------ ----------- -----------
<C> <S> <C> <C>
COMMON STOCKS--53.25%
AEROSPACE/DEFENSE--1.09%
9,300 AlliedSignal, Inc............................. $ 328,988 $ 713,775
----------- -----------
BANKING--2.18%
3,000 BankAmerica Corp.............................. 321,774 350,625
11,800 First American Corp........................... 212,263 430,700
10,800 NationsBank Corp.............................. 264,319 635,850
----------- -----------
798,356 1,417,175
----------- -----------
BEVERAGES--1.12%
20,000 PepsiCo, Inc.................................. 620,396 735,000
----------- -----------
BUSINESS SERVICES--2.42%
18,000 Automatic Data Processing, Inc................ 601,698 884,250
30,000 Reynolds & Reynolds Co........................ 582,380 701,250
----------- -----------
1,184,078 1,585,500
----------- -----------
CHEMICALS--3.39%
10,000 Air Products & Chemicals, Inc................. 563,285 777,500
15,000 Great Lakes Chemical Corp..................... 679,050 733,125
22,000 Morton International, Inc.*................... 641,367 709,500
----------- -----------
1,883,702 2,220,125
----------- -----------
ELECTRONICS--4.99%
20,000 Allen Group, Inc.*............................ 443,700 465,000
25,000 AMETEK, Inc................................... 549,400 584,375
42,500 Coltec Industries, Inc.*...................... 848,618 834,063
15,200 General Electric Co........................... 434,850 917,700
9,000 Hewlett-Packard Co............................ 253,010 463,500
----------- -----------
2,529,578 3,264,638
----------- -----------
ENTERTAINMENT--0.71%
10,000 Time Warner, Inc.............................. 449,450 465,000
----------- -----------
FINANCIAL SERVICES--0.67%
10,000 Federal National Mortgage Assoc............... 390,700 436,250
----------- -----------
FOOD--2.96%
15,800 Nabisco Holdings Corp.--Class A............... 438,399 626,075
17,200 Sara Lee Corp................................. 481,622 703,050
17,400 Sysco Corp.................................... 539,075 606,825
----------- -----------
1,459,096 1,935,950
----------- -----------
HEALTH CARE--1.61%
20,000 Baxter International, Inc..................... 873,747 1,055,000
----------- -----------
HOUSEHOLD PRODUCTS--1.52%
16,000 Colgate-Palmolive Co.......................... 561,811 992,000
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares Cost (Note 2a)
------ ----------- -----------
<C> <S> <C> <C>
INSURANCE--2.58%
6,000 American International
Group, Inc.................................... $ 407,987 $ 812,250
5,000 General Re Corp................................ 781,421 876,250
----------- -----------
1,189,408 1,688,500
----------- -----------
MACHINES--0.44%
5,000 Dover Corp..................................... 177,844 286,250
----------- -----------
MEDICAL--0.84%
15,000 Columbia/HCA Healthcare Corp................... 456,694 549,375
----------- -----------
METALS--1.24%
11,000 Aluminum Co. of America........................ 592,764 809,875
----------- -----------
OIL/GAS--6.39%
18,000 Exxon Corp..................................... 886,503 1,066,500
6,200 Mobil Corp..................................... 582,403 867,225
16,000 Noble Affiliates, Inc.......................... 718,060 674,000
20,000 Triton Energy Ltd.*............................ 931,515 895,000
15,900 Unocal Corp.................................... 645,901 677,738
----------- -----------
3,764,382 4,180,463
----------- -----------
PHARMACEUTICAL--2.94%
23,200 Alza Corp.*.................................... 670,473 684,400
7,000 Amgen, Inc.*................................... 412,597 468,125
7,500 Pfizer, Inc.................................... 310,679 771,563
----------- -----------
1,393,749 1,924,088
----------- -----------
RETAIL--5.92%
24,000 Costco Cos., Inc.*............................. 338,125 810,000
20,000 CUC International, Inc.*....................... 492,460 460,000
24,000 Fred Meyer, Inc*............................... 829,406 1,101,000
10,000 Home Depot, Inc................................ 552,263 630,000
34,000 Kroger Co.*.................................... 490,570 871,250
----------- -----------
2,702,824 3,872,250
----------- -----------
TECHNOLOGY--2.80%
14,000 Computer Associates International, Inc......... 614,080 766,500
60,000 International Game Technology.................. 1,136,775 1,065,000
----------- -----------
1,750,855 1,831,500
----------- -----------
TELECOMMUNICATIONS--1.80%
7,000 Lucent Technologies, Inc....................... 322,592 445,375
12,500 SBC Communications, Inc........................ 539,556 731,250
----------- -----------
862,148 1,176,625
----------- -----------
TOBACCO--0.59%
8,800 Philip Morris Cos., Inc........................ 353,906 387,200
----------- -----------
</TABLE>
See accompanying notes to financial statements
9
<PAGE>
IBJ FUNDS TRUST
IBJ BLENDED TOTAL RETURN FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)--MAY 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/ Value
Principal Cost (Note 2a)
---------- ----------- -----------
<C> <S> <C> <C>
TRANSPORTATION--2.13%
8,000 Kansas City Southern Industries, Inc...... $ 350,531 $ 439,000
5,000 Norfolk Southern Corp..................... 404,947 485,625
34,100 Rollins Truck Leasing Corp................ 434,051 468,875
----------- -----------
1,189,529 1,393,500
----------- -----------
UTILITIES--ELECTRIC--2.00%
20,000 CMS Energy Corp........................... 675,532 672,500
14,200 Duke Power Co............................. 610,968 639,000
----------- -----------
1,286,500 1,311,500
----------- -----------
UTILITIES--GAS--0.92%
17,000 People's Energy Corp...................... 581,960 603,500
----------- -----------
TOTAL COMMON STOCKS....................... 27,382,465 34,835,039
----------- -----------
MORTGAGE OBLIGATIONS--8.38%
$ 500,000 FHLB 6.07%, 6/30/03....................... 490,414 483,340
500,000 FHLMC Debs. 6.54%, 3/21/01................ 493,437 494,815
500,000 FHLMC Debs. 6.56%, 2/1/06................. 499,688 480,955
1,500,000 FMC Discount Notes 5.50%, 7/18/97......... 1,489,229 1,488,975
500,500 FNMA 6.50%, 8/25/04....................... 464,651 494,789
55,231 GNMA Pool #55056 13.00%, 3/15/12.......... 61,494 62,086
21,325 GNMA Pool # 102470 13.00%, 10/15/13....... 23,741 23,943
481,400 GNMA Pool # 406475 7.00%, 4/15/26......... 466,431 468,195
479,682 GNMA Pool # 422801 7.50%, 5/15/26......... 475,747 477,624
868,218 GNMA Pool # 437152 8.00%, 1/15/27......... 885,854 884,488
119,010 GNMA Pool # 432232 8.00%, 1/15/27......... 121,427 121,240
----------- -----------
TOTAL MORTGAGE OBLIGATIONS................ 5,472,113 5,480,450
----------- -----------
U.S. TREASURY OBLIGATIONS--17.44%
500,000 Bills 5.33%, 2/5/98....................... 481,567 481,485
1,500,000 Bills 5.48%, 4/30/98...................... 1,424,034 1,424,340
1,000,000 Bonds 8.13%, 5/15/21...................... 1,103,645 1,127,820
3,000,000 Bonds 7.25%, 8/15/22...................... 3,011,932 3,082,230
500,000 Notes 7.00%, 4/15/99...................... 508,613 507,075
1,750,000 Notes 6.38%, 3/31/01...................... 1,768,110 1,743,630
500,000 Notes 6.50%, 5/15/05...................... 516,603 495,080
</TABLE>
<TABLE>
<CAPTION>
Value
Principal Cost (Note 2a)
---------- ----------- -----------
<C> <S> <C> <C>
$ 500,000 Notes 6.88%, 5/15/06..................... $ 526,770 $ 506,155
2,000,000 Notes 7.00%, 7/15/06..................... 2,073,233 2,041,680
----------- -----------
TOTAL U.S. TREASURY OBLIGATIONS.......... 11,414,507 11,409,495
----------- -----------
CORPORATE OBLIGATIONS--18.06%
AUTOMOBILES--0.62%
400,000 General Motors Acceptance Corp. Notes
7.00%, 3/1/00........................... 402,574 403,000
----------- -----------
BANKING--1.30%
250,000 BankAmerica Corp. MTN 7.13%, 5/12/05..... 252,622 248,125
250,000 JP Morgan & Co., Sub. Notes 7.63%,
9/15/04................................. 248,078 258,125
350,000 JP Morgan Capital Trust II Notes 7.95%,
2/1/27.................................. 345,703 347,375
----------- -----------
846,403 853,625
----------- -----------
CHEMICALS--0.39%
250,000 du Pont (E.I.) de Nemours & Co. MTN
8.35%, 5/15/98.......................... 250,989 255,475
----------- -----------
DURABLE GOODS--0.33%
215,000 Xerox Corp. Debs. 9.63%, 9/1/97.......... 215,878 216,866
----------- -----------
ENTERTAINMENT--0.28%
180,000 Time Warner, Inc. Notes 7.95%, 2/1/00.... 184,154 184,725
----------- -----------
FINANCIAL SERVICES--1.14%
250,000 Associates Corp. N.A. Sr. Notes 7.50%,
4/15/02................................. 251,079 256,250
250,000 Commercial Credit Co. Notes 6.38%,
9/15/02................................. 250,000 244,063
250,000 Heller Financial Notes 6.50%, 5/15/00.... 249,581 248,437
----------- -----------
750,660 748,750
----------- -----------
FOREST PRODUCTS--1.73%
560,000 Fort Howard Corp. MTN, Sr. Notes 9.25%,
3/15/01................................. 582,854 597,100
500,000 Fort Howard Corp. Sub. Notes 10.00%,
3/15/03................................. 535,617 536,250
----------- -----------
1,118,471 1,133,350
----------- -----------
</TABLE>
See accompanying notes to financial statements
10
<PAGE>
IBJ FUNDS TRUST
IBJ BLENDED TOTAL RETURN FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)--MAY 31, 1997 (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Principal Cost (Note 2a)
---------- ----------- -----------
<C> <S> <C> <C>
INDUSTRIAL GOODS AND SERVICES--7.31%
$ 600,000 American Standard Sr. Notes 10.88%,
5/15/99................................. $ 637,579 $ 638,250
300,000 American Standard Sr. Sub. Notes 9.88%,
6/1/01.................................. 315,089 316,875
500,000 HMH Properties Sr. Notes** 9.50%,
5/15/05................................. 523,082 521,250
75,000 Hook-SuperX, Inc. 10.13%, 6/1/02......... 78,750 79,031
215,000 Owens-Illinois, Inc. Sr. Sub. Notes
10.25%, 4/1/99.......................... 215,000 215,000
600,000 Owens-Illinois, Inc. Sr. Sub. Notes
10.50%, 6/15/02......................... 633,030 631,500
125,000 Owens-Illinois, Inc. Sr. Sub. Notes 9.75%
8/15/04................................. 131,931 131,562
500,000 Shopko Stores 9.25% 3/15/22.............. 523,045 519,065
510,000 USG Corp. Debs. 8.75%, 3/1/17............ 527,167 518,925
350,000 Valassis Inserts, Inc. Sr. Sub. Notes
9.38%, 3/15/99.......................... 361,372 362,687
520,000 Westinghouse Electric Notes 8.38%,
6/15/02................................. 536,792 536,900
300,000 Westpoint Stevens, Inc. Sr. Notes 8.75%,
12/15/01................................ 310,276 309,000
----------- -----------
4,793,113 4,780,045
----------- -----------
MEDIA--0.46%
283,000 Heritage Media Sr. Sub. Notes 11.00%,
10/1/02................................. 301,642 302,102
----------- -----------
OIL/GAS--3.03%
350,000 Amoco Canada Petroleum Co. Debs. 7.95%,
10/1/22................................. 362,730 361,375
500,000 Clark Oil Refinery Sr. Notes 10.50%,
12/1/01................................. 517,208 516,250
500,000 Ferrellgas Partnership Notes 9.38%,
6/15/06................................. 520,162 515,000
300,000 Gulf Canada Resources Ltd. Sub. Notes
9.63%, 7/1/05........................... 324,568 320,250
250,000 Hydro--Quebec MTN 8.59%, 8/22/01......... 251,133 265,000
----------- -----------
1,975,801 1,977,875
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
Value
Principal Cost (Note 2a)
---------- ----------- -----------
<C> <S> <C> <C>
RETAIL--0.48%
$ 300,000 Revco D.S., Inc. Sr. Notes 9.13%,
1/15/00............................. $ 312,547 $ 313,875
----------- -----------
UTILITIES--0.99%
100,000 AES Corp. Debs. 9.75%, 6/15/00....... 103,731 103,875
250,000 Delmarva Power & Light Notes 6.40%,
7/1/03.............................. 248,473 241,563
300,000 Pacific Gas & Electric MTN 9.08%,
12/15/97............................ 301,685 304,875
----------- -----------
653,889 650,313
----------- -----------
TOTAL CORPORATE OBLIGATIONS.......... 11,806,121 11,820,001
----------- -----------
SUPRA-NATIONAL OBLIGATIONS--0.40%
250,000 African Development Bank Notes 7.70%,
07/15/02............................ 258,848 259,375
----------- -----------
SHORT-TERM INVESTMENTS--2.97%
1,945,813 TempCash Provident Money Market
Investment Fund..................... 1,945,814 1,945,813
----------- -----------
TOTAL INVESTMENTS.................... $58,279,868(a) 65,750,173
=========== -----------
LIABILITIES, IN EXCESS OF CASH AND
OTHER ASSETS--0.50%................. (331,788)
-----------
NET ASSETS--100.00%.................. $65,418,385
===========
</TABLE>
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................................... $7,942,888
Unrealized depreciation........................................... (472,583)
----------
Net unrealized appreciation....................................... $7,470,305
==========
</TABLE>
*Represents non-income producing security.
** Represents a restricted security, purchased under Rule 144A, which is
exempt from registration under the Securities Act of 1933.
Debs.--Debentures
FHLB--Federal Home Loan Bank
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GNMA--Government National Mortgage Association
MTN--Medium Term Notes
Sr.--Senior
Sub.--Subordinated
See accompanying notes to financial statements
11
<PAGE>
IBJ FUNDS TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)--MAY 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
*CREDIT RATINGS GIVEN BY STANDARD & POOR'S CORPORATION AND MOODY'S INVESTORS
SERVICE INC. (UNAUDITED)
<TABLE>
<CAPTION>
STANDARD & POOR'S MOODY'S
----------------- -------
<C> <C> <S>
A1 P1 Instrument of the highest quality.
Instrument judged to be of the highest quality and
AAA Aaa carrying the smallest amount of investment risk.
Instrument judged to be of high quality by all
AA Aa standards.
A A Instrument judged to be adequate by all standards.
Instrument judged to be of modest quality by all
BBB Baa 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.
</TABLE>
For items possessing the strongest investment attributes of their category,
Moody's gives that letter rating followed by a number.
The Standards & Poor's rating may be modified by the addition of a plus or
minus sign to show relative standings within the major rating categories.
U.S. Government Issues have an assumed rating of AAA/Aaa.
See accompanying notes to financial statements
12
<PAGE>
This page intentionally left blank
13
<PAGE>
IBJ FUNDS TRUST
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
FOR THE SIX MONTHS ENDED MAY 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RESERVE MONEY CORE FIXED CORE EQUITY BLENDED TOTAL
MARKET FUND INCOME FUND FUND RETURN FUND
------------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
ASSETS
Investments, at value
(amortized cost
$30,889,345, cost
$26,246,212,
$70,858,756, and
$58,279,868
respectively)........... $30,889,345 $26,084,009 $100,211,700 $65,750,173
Cash..................... 99,925 -- -- 2,345
Receivable for
investments sold......... -- -- -- 270,558
Dividends, interest and
principal paydowns
receivable............... 3,144 438,126 160,870 547,488
Deferred organization
expenses (Note 2e)....... 2,876 2,876 2,876 2,876
Prepaid expenses and
other assets............. 127,810 14,948 66,182 16,138
----------- ----------- ------------ -----------
Total assets........... 31,123,100 26,539,959 100,441,628 66,589,578
----------- ----------- ------------ -----------
LIABILITIES
Dividends payable........ 136,669 127,807 -- 522,957
Payable for investments
purchased................ -- -- -- 523,045
Advisory fee payable
(Note 3)................. 154,129 9,211 41,891 27,667
Administrative fee
payable (Note 3)......... 5,134 8,590 26,969 18,520
Transfer agency fees
payable (Note 3)......... 2,756 14,263 13,274 7,375
Payable to trustees...... 8,364 8,256 10,406 9,484
Legal fees payable....... 2,668 17,355 34,042 10,892
Payable to custodian..... 2,069 6,864 9,105 3,137
Accrued expenses......... 14,544 9,440 6,686 48,116
----------- ----------- ------------ -----------
Total liabilities...... 326,333 201,786 142,373 1,171,193
----------- ----------- ------------ -----------
NET ASSETS............... $30,796,767 $26,338,173 $100,299,255 $65,418,385
=========== =========== ============ ===========
NET ASSETS CONSIST OF:
Capital Stock, $.001 par
value per share;
(unlimited shares
authorized).............. $ 30,805 $ 2,633 $ 6,626 $ 5,149
Additional paid-in
capital.................. 30,774,310 26,476,642 64,931,812 53,667,502
Accumulated
undistributed/(excess
distributions of) net
investment income....... 2 8,073 347,487 (15,779)
Accumulated undistributed
net realized gains/(loss)
on investments........... (8,350) 13,028 5,660,386 4,291,208
Net unrealized
appreciation
(depreciation) of
investments.............. -- (162,203) 29,352,944 7,470,305
----------- ----------- ------------ -----------
NET ASSETS............... $30,796,767 $26,338,173 $100,299,255 $65,418,385
=========== =========== ============ ===========
SHARES OF BENEFICIAL
INTEREST
Premium Class:
Net assets............... 12,615 12,450 12,941 12,670
Shares of beneficial
interest outstanding..... 12,619 1,245 855 997
=========== =========== ============ ===========
Net asset value per share
(Net Assets/Shares
Outstanding)............. $1.00 $10.00 $15.14 $12.71
=========== =========== ============ ===========
Service Class:
Net assets............... 30,784,152 26,325,723 100,286,315 65,405,715
Shares of beneficial
interest outstanding..... 30,792,496 2,632,015 6,625,606 5,147,967
=========== =========== ============ ===========
Net asset value per share
(Net Assets/Shares
Outstanding)............. $1.00 $10.00 $15.14 $12.71
=========== =========== ============ ===========
</TABLE>
See accompanying notes to financial statements
14
<PAGE>
IBJ FUNDS TRUST
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED MAY 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RESERVE MONEY CORE FIXED CORE EQUITY BLENDED TOTAL
MARKET FUND INCOME FUND FUND RETURN FUND
------------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income........... $842,501 $ 883,188 $ 73,394 $ 1,016,810
Dividend income........... 15,546 11,993 731,596 256,911
-------- --------- ---------- -----------
Total Income............. 858,047 895,181 804,990 1,273,721
-------- --------- ---------- -----------
Expenses:
Advisory (Note 3)......... 55,490 66,171 279,119 193,011
Administrative services
(Note 3)................. 23,771 19,846 68,991 47,710
Fund accounting fees and
expenses (Note 3)........ 15,244 18,088 16,296 19,641
Audit..................... 9,765 9,765 11,931 11,931
Legal..................... 21,918 17,644 29,286 34,252
Registration.............. 3,430 3,114 4,615 3,841
Custodian fees............ 6,854 5,270 8,771 6,089
Amortization of
organization expense..... 2,876 2,876 2,876 2,876
Printing.................. 3,805 3,488 9,513 6,953
Trustees'................. 2,231 2,099 4,648 3,559
Insurance................. 1,642 1,088 3,657 2,517
Transfer and shareholder
servicing agent (Note 3). 3,926 2,469 7,692 4,301
Miscellaneous............. 7,274 9,078 -- --
-------- --------- ---------- -----------
Total expenses before
waivers/reimbursements.. 158,226 160,996 447,395 336,681
Less expenses
waived/reimbursed....... (55,490) (13,234) (46,520) (32,168)
-------- --------- ---------- -----------
Net expenses.............. 102,736 147,762 400,875 304,513
-------- --------- ---------- -----------
Net investment income...... 755,311 747,419 404,115 969,208
-------- --------- ---------- -----------
Net realized and unrealized
gain/(loss) on investments:
Net realized gain/(loss) on
investments................ (1,316) (17,342) 4,354,023 3,702,298
Net increase in unrealized
appreciation/depreciation
of investments............ -- (572,055) 3,922,515 (1,275,334)
-------- --------- ---------- -----------
Net realized and
unrealized gain/(loss)
on investments.......... (1,316) (589,397) 8,276,538 2,426,964
-------- --------- ---------- -----------
Net increase in net assets
resulting from operations.. $753,995 $ 158,022 $8,680,653 $ 3,396,172
======== ========= ========== ===========
</TABLE>
See accompanying notes to financial statements
15
<PAGE>
IBJ FUNDS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RESERVE MONEY MARKET FUND
----------------------------------
SIX MONTHS ENDED
MAY 31, 1997 YEAR ENDED
(UNAUDITED) NOVEMBER 30, 1996
---------------- -----------------
<S> <C> <C>
Operations:
Net investment income..................... $ 755,311 $ 1,686,660
Net realized gain/(loss) on investments... (1,316) (4,100)
Net change in unrealized
appreciation/(depreciation) of
investments.............................. -- --
------------ -------------
Net increase in net assets resulting from
operations................................. 753,995 1,682,560
------------ -------------
Dividends to shareholders from net
investment income:
Premium Class............................. (286) (607)
Service Class............................. (755,023) (1,686,053)
------------ -------------
(755,309) (1,686,660)
------------ -------------
Distributions to shareholders from realized
gain on investments:
Premium Class............................. -- --
Service Class............................. -- --
------------ -------------
-- --
------------ -------------
Decrease in net assets resulting from
dividends and distributions to
shareholders............................. (755,309) (1,686,660)
------------ -------------
Capital Share Transactions:
Proceeds from sales of shares:
Premium Class............................. -- --
Service Class............................. 37,778,998 121,313,703
------------ -------------
37,778,998 121,313,703
------------ -------------
Net asset value of shares issued to
shareholders in reinvestment of dividends
and distributions:
Premium Class............................. 259 607
Service Class............................. 618,119 1,686,053
------------ -------------
618,378 1,686,660
------------ -------------
Net asset value of shares redeemed:
Premium Class............................. (1,309) (62)
Service Class............................. (41,880,806) (117,669,088)
------------ -------------
(41,882,115) (117,669,150)
------------ -------------
Net increase (decrease) in net assets from
capital share transactions............... (3,484,739) 5,331,213
------------ -------------
Total increase (decrease) in net assets..... (3,486,053) 5,327,113
Net assets:
Beginning of period....................... 34,282,820 28,955,707
------------ -------------
End of period............................. $ 30,796,767 $ 34,282,820
============ =============
Undistributed/(excess distributions of)
net investment income.................... -- --
</TABLE>
See accompanying notes to financial statements
16
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CORE FIXED CORE EQUITY BLENDED TOTAL
INCOME FUND FUND RETURN FUND
- ----------------------------------- ---------------------------------- ----------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED
MAY 31, 1997 YEAR ENDED MAY 31, 1997 YEAR ENDED MAY 31, 1997 YEAR ENDED
(UNAUDITED) NOVEMBER 30, 1996 (UNAUDITED) NOVEMBER 30, 1996 (UNAUDITED) NOVEMBER 30, 1996
- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C> <C>
$ 747,419 $ 1,424,794 $ 404,115 $ 831,732 $ 969,208 $ 1,696,351
(17,342) 30,875 4,354,023 9,863,103 3,702,298 3,067,207
(572,055) (312,253) 3,922,515 9,092,966 (1,275,334) 3,016,124
----------- ----------- ------------ ----------- ----------- -----------
158,022 1,143,416 8,680,653 19,787,801 3,396,172 7,779,682
----------- ----------- ------------ ----------- ----------- -----------
(338) (759) (99) (247) (222) (475)
(739,008) (1,424,035) (442,649) (1,284,919) (975,498) (1,692,277)
----------- ----------- ------------ ----------- ----------- -----------
(739,346) (1,424,794) (442,748) (1,285,166) (975,720) (1,692,752)
----------- ----------- ------------ ----------- ----------- -----------
-- (495) (1,908) (569) (667) (352)
-- (954,557) (8,554,830) (3,054,736) (2,477,474) (1,173,072)
----------- ----------- ------------ ----------- ----------- -----------
-- (955,052) (8,556,738) (3,055,305) (2,478,141) (1,173,424)
----------- ----------- ------------ ----------- ----------- -----------
(739,346) (2,379,846) (8,999,486) (4,340,471) (3,453,861) (2,866,176)
----------- ----------- ------------ ----------- ----------- -----------
-- -- -- -- -- --
1,487,670 11,985,540 14,110,188 30,155,508 4,621,858 17,930,945
----------- ----------- ------------ ----------- ----------- -----------
1,487,670 11,985,540 14,110,188 30,155,508 4,621,858 17,930,945
----------- ----------- ------------ ----------- ----------- -----------
371 1,254 2,006 816 788 827
723,147 2,378,592 8,997,453 4,339,655 2,930,096 2,865,349
----------- ----------- ------------ ----------- ----------- -----------
723,518 2,379,846 8,999,459 4,340,471 2,930,884 2,866,176
----------- ----------- ------------ ----------- ----------- -----------
(2,175) (64) (8,910) (92) (5,226) (79)
(3,072,053) (12,209,202) (16,142,681) (42,895,923) (6,321,056) (12,059,267)
----------- ----------- ------------ ----------- ----------- -----------
(3,074,228) (12,209,266) (16,151,591) (42,896,015) (6,326,282) (12,059,346)
----------- ----------- ------------ ----------- ----------- -----------
(863,040) 2,156,120 6,958,056 (8,400,036) 1,226,460 8,737,775
----------- ----------- ------------ ----------- ----------- -----------
(1,444,364) 919,690 6,639,223 7,047,294 1,168,771 13,651,281
27,782,537 26,862,847 93,660,032 86,612,738 64,249,614 50,598,333
----------- ----------- ------------ ----------- ----------- -----------
$26,336,173 $27,782,537 $100,299,255 $93,660,032 $65,418,385 $64,249,614
=========== =========== ============ =========== =========== ===========
-- -- -- $ 386,120 -- $ (9,267)
</TABLE>
See accompanying notes to financial statements
17
<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 Core Fixed Income
Fund (formerly the "Bond Fund"), IBJ Core Equity Fund and IBJ Blended Total
Return Fund (formerly the "Growth and Income Fund"), each with two 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.
The investment objectives of the Reserve Money Market Fund ("Money Market")
are current income, liquidity and the maintenance of a stable $1.00 net asset
value per share by investing in high quality, U.S. dollar-denominated short-
term obligations which are determined by the investment adviser to present
minimal credit risks.
The investment objective of the Core Fixed Income Fund ("Fixed Income") is
to provide a high total return (appreciation plus current income) by investing
at least 65% of its total assets in bonds such as U.S. Government securities,
corporate bonds, asset-backed securities (including mortgage-backed
securities), savings and loan and U.S. and foreign bank obligations,
commercial paper, and related repurchase agreements.
The objective of the Core Equity Fund ("Equity") is to seek long-term
capital appreciation through investment in a diversified portfolio of common
stock (and securities convertible into common stock) of publicly traded,
established companies.
The objective of the Blended Total Return Fund ("Total Return") is to
provide investors with long-term capital appreciation and current income for
high total return by investing in a balance of equities and debt market
securities. The Fund recently changed the credit standards for its fixed
income portion to an average rating of BBB by Standard & Poor's Corporation
("S&P") or Baa by Moody's Investors Service ("Moody's"). This new standard
permits some investments in lower rated securities which may have primarily
speculative characteristics.
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 Money Market 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. Money Market
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.
18
<PAGE>
IBJ FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------
(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. Money Market and Fixed Income each
declare dividends from net investment income daily and distribute those
dividends monthly. Equity will declare and pay dividends annually and Total
Return 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 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 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.
(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.
(g) Use of Estimates. Estimates and assumptions are required to be made
regarding assets, liabilities, and changes in net assets resulting from
operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining
these estimates could cause actual results to differ from these amounts.
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: Money Market, 0.35%; Fixed Income, 0.50%; Equity, 0.60%; and
Total Return, 0.60%. For the six months ended May 31, 1997, the Adviser earned
fees of $55,490, $66,171, $279,119 and $193,011 for Money Market, Fixed
Income, Equity and Total Return, respectively. The Adviser has voluntarily
waived fees of $55,490, $13,234, $46,520 and $32,168 for Money Market, Fixed
Income, Equity and Total Return, respectively.
The Funds have also entered into an Administrative Service Contract with
BISYS Fund Services Limited Partnership ("BISYS") (the "Administrator")
pursuant to which BISYS 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'
19
<PAGE>
IBJ FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
- -------------------------------------------------------------------------------
Officers and Board of Trustees; and (iii) furnishing office space and certain
facilities required for conducting the business of the Funds. BISYS assumed
these functions during the six months ended May 31, 1997, from the Mutual
Funds Division of Furman Selz LLC, which organization had previously provided
these services to the Funds. For these services, BISYS 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, BISYS earned fees of
$23,771, $19,846, $68,991 and $47,710 for Money Market, Fixed Income, Equity
and Total Return, respectively. Pursuant to a Services Agreement between the
Trust and the Administrator, BISYS 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,
1997, BISYS earned Transfer Agency fees of $3,926, $2,469, $7,692 and $4,301
for Money Market, Fixed Income, Equity and Total Return, 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, 1997, BISYS earned Fund Accounting fees and
expenses of $15,244, $18,088, $16,296 and $19,641 for Money Market, Fixed
Income, Equity and Total Return, respectively.
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
because the Premium Class of Shares that includes the Plan has not commenced
operations. IBJ Funds Distributor, Inc. (the "Distributor"), an affiliate of
BISYS, 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, 1997 was as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Fixed Income............................................ $32,174,389 $34,076,701
Equity.................................................. $14,363,762 $14,114,313
Total Return............................................ $40,227,971 $36,396,046
</TABLE>
20
<PAGE>
IBJ FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 SIX MONTHS ENDED MAY 31, 1997
----------------------------------------------
FIXED TOTAL
MONEY MARKET INCOME EQUITY RETURN
------------ --------- ---------- ---------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Shares at beginning of period... 13,669 1,432 1,314 1,350
Shares issued in reinvestment of
dividends from net
investment income and capital
gain distributions............. 278 36 146 65
Shares redeemed................. (1,328) (223) (605) (418)
Net increase/(decrease) in
shares......................... (1,050) (187) (459) (353)
----------- --------- ---------- ---------
Shares at end of period......... 12,619 1,245 855 997
=========== ========= ========== =========
SERVICE CLASS
Shares at beginning of period... 34,276,185 2,716,462 6,091,390 5,032,961
Shares sold..................... 37,643,133 149,392 992,433 384,600
Shares issued in reinvestment of
dividends from net
investment income and capital
gain distributions............. 753,984 72,049 656,269 240,262
Shares redeemed................. (41,880,806) (305,888) (1,114,486) (509,856)
Net increase/(decrease) in
shares......................... (3,483,689) (84,447) 534,216 115,006
----------- --------- ---------- ---------
Shares at end of period......... 30,792,496 2,632,015 6,625,606 5,147,967
=========== ========= ========== =========
</TABLE>
<TABLE>
<CAPTION>
FOR THE YEAR ENDED NOVEMBER 30, 1996
------------------------------------------------
FIXED TOTAL
MONEY MARKET INCOME EQUITY RETURN
------------ ---------- ---------- ----------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Shares at beginning of peri-
od.......................... 13,124 1,315 1,256 1,287
------------ ---------- ---------- ----------
Shares issued in reinvestment
of dividends from net
investment income and capi-
tal gain distributions...... 607 123 64 69
Shares redeemed.............. (62) (6) (6) (6)
------------ ---------- ---------- ----------
Net increase in shares....... 545 117 58 63
------------ ---------- ---------- ----------
Shares at end of period...... 13,669 1,432 1,314 1,350
============ ========== ========== ==========
SERVICE CLASS
Shares at beginning of peri-
od.......................... 28,945,517 2,505,331 6,675,290 4,292,094
------------ ---------- ---------- ----------
Shares sold.................. 121,313,703 1,192,811 2,227,903 1,505,811
Shares issued in reinvestment
of dividends from net
investment income and capi-
tal gain distributions...... 1,686,053 233,352 344,448 240,640
Shares redeemed.............. (117,669,088) (1,215,032) (3,156,251) (1,005,584)
------------ ---------- ---------- ----------
Net increase/(decrease) in
shares...................... 5,330,668 211,131 (583,900) 740,867
------------ ---------- ---------- ----------
Shares at end of period...... 34,276,185 2,716,462 6,091,390 5,032,961
============ ========== ========== ==========
</TABLE>
21
<PAGE>
IBJ FUNDS TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RESERVE MONEY MARKET FUND
----------------------------------------------------------------------
SIX MONTHS ENDED FOR THE PERIOD
MAY 31, 1997 FOR THE YEAR ENDED FEBRUARY 1, 1995* TO
(UNAUDITED) NOVEMBER 30, 1996 NOVEMBER 30, 1995
-------------------- -------------------- ------------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
-------- -------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- -------- -------- --------- --------- ----------
Income from Investment
Operations:
Net investment income.. 0.02 0.02 0.05 0.05 0.04 0.04
------- -------- -------- --------- --------- ----------
Less Distributions:
Dividends from net
investment income...... (0.02) (0.02) (0.05) (0.05) (0.04) (0.04)
------- -------- -------- --------- --------- ----------
Net Asset Value, End of
Period.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======== ======== ========= ========= ==========
Total Return............ 2.40% 2.40% 4.88% 4.88% 4.55% 4.55%
Net Assets, End of
Period (in thousands)... $13 $30,784 $14 $34,269 $13 $28,943
Ratios to average net
assets of:
Net investment income.. 4.76%** 4.76%** 4.82% 4.82% 5.40%** 5.40%**
Expenses before
waivers/reimbursements. 1.00%** 1.00%** 0.95% 0.95% 0.92%** 0.92%**
Expenses net of
waivers/reimbursements. 0.65%** 0.65%** 0.65% 0.65% 0.64%** 0.64%**
</TABLE>
- -----------
*Commencement of operations.
**Annualized.
See accompanying notes to financial statements
22
<PAGE>
IBJ FUNDS TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CORE FIXED INCOME FUND
----------------------------------------------------------------------
SIX MONTHS ENDED FOR THE PERIOD
MAY 31, 1997 FOR THE YEAR ENDED FEBRUARY 1, 1995* TO
(UNAUDITED) NOVEMBER 30, 1996 NOVEMBER 30, 1995
-------------------- -------------------- ------------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
-------- -------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $10.22 $10.22 $10.72 $10.72 $10.00 $10.00
------- -------- -------- --------- --------- ----------
Income from Investment
Operations:
Net investment income.. 0.28 0.28 0.54 0.54 0.48 0.48
Net realized and
unrealized gain/(loss)
on investments......... (0.22) (0.22) (0.12) (0.12) 0.72 0.72
------- -------- -------- --------- --------- ----------
Total from Investment
Operations............. 0.06 0.06 0.42 0.42 1.20 1.20
------- -------- -------- --------- --------- ----------
Less Distributions:
Dividends from net
investment income...... (0.28) (0.28) (0.54) (0.54) (0.48) (0.48)
Distributions from net
realized capital gains. -- -- (0.38) (0.38) -- --
------- -------- -------- --------- --------- ----------
Total Distributions.... (0.28) (0.28) (0.92) (0.92) (0.48) (0.48)
------- -------- -------- --------- --------- ----------
Net Asset Value, End of
Period.................. $10.00 $10.00 $10.22 $10.22 $10.72 $10.72
======= ======== ======== ========= ========= ==========
Total Return............ 0.59% 0.59% 4.25% 4.25% 12.28% 12.28%
Net Assets, End of
Period (in thousands)... $12 $26,326 $15 $27,768 $14 $26,849
Ratios to average net
assets of:
Net investment income.. 5.65%** 5.65%** 5.07% 5.07% 5.59%** 5.59%**
Expenses before
waivers/reimbursements. 1.22%** 1.22%** 1.22% 1.22% 1.22%** 1.22%**
Expenses net of
waivers/reimbursements. 1.12%** 1.12%** 1.12% 1.12% 1.12%** 1.12%**
Portfolio Turnover Rate. 132.03% 132.03% 160.00% 160.00% 297.00% 297.00%
</TABLE>
- -----------
*Commencement of operations.
**Annualized.
See accompanying notes to financial statements
23
<PAGE>
IBJ FUNDS TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CORE EQUITY FUND
------------------------------------------------------------------------
SIX MONTHS ENDED FOR THE PERIOD
MAY 31, 1997 FOR THE YEAR ENDED FEBRUARY 1, 1995* TO
(UNAUDITED) NOVEMBER 30, 1996 NOVEMBER 30, 1995
------------------- -------------------- ------------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
------- -------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period...... $15.37 $15.37 $12.97 $12.97 $10.00 $10.00
------- -------- --------- --------- --------- ----------
Income from Investment
Operations:
Net investment income... 0.14 0.14 0.14 0.14 0.13 0.13
Net realized and
unrealized gain/(loss)
on investments.......... 1.16 1.16 2.90 2.90 2.84 2.84
------- -------- --------- --------- --------- ----------
Total from Investment
Operations.............. 1.30 1.30 3.04 3.04 2.97 2.97
------- -------- --------- --------- --------- ----------
Less Distributions:
Dividends from net
investment income....... (0.08) (0.08) (0.19) (0.19) -- --
Distributions from net
realized capital gains.. (1.45) (1.45) (0.45) (0.45) -- --
------- -------- --------- --------- --------- ----------
Total Distributions..... (1.53) (1.53) (0.64) (0.64) -- --
------- -------- --------- --------- --------- ----------
Net Asset Value, End of
Period................... $15.14 $15.14 $15.37 $15.37 $12.97 $12.97
======= ======== ========= ========= ========= ==========
Total Return............. 9.47% 9.47% 24.61% 24.61% 29.70% 29.70%
Net Assets, End of Period
(in thousands)........... $13 $100,286 $20 $93,640 $16 $86,596
Ratios to average net
assets of:
Net Investment Income... 0.87%** 0.87%** 0.93% 0.93% 1.30%** 1.29%**
Expenses before
waivers/reimbursements.. 0.96%** 0.96%** 0.99% 0.99% 1.09%** 1.09%**
Expenses net of
waivers/reimbursements.. 0.86%** 0.86%** 0.89% 0.89% 0.89%** 0.89%**
Portfolio Turnover Rate.. 15.50% 15.50% 27.00% 27.00% 37.00% 37.00%
Average Commission per
share(a)................. $0.0754 $0.0754 $0.0776 $0.0776 -- --
</TABLE>
- -----------
*Commencement of operations.
**Annualized.
(a) Represents the total dollar amount of commissions paid on portfolio
transactions divided by the total number of shares purchased and sold by
the Fund for which commissions were charged.
See accompanying notes to financial statements
24
<PAGE>
IBJ FUNDS TRUST
FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BLENDED TOTAL RETURN FUND
----------------------------------------------------------------------
SIX MONTHS ENDED FOR THE PERIOD
MAY 31, 1997 FOR THE YEAR ENDED FEBRUARY 1, 1995* TO
(UNAUDITED) NOVEMBER 30, 1996 NOVEMBER 30, 1995
-------------------- -------------------- ------------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
-------- -------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $12.76 $12.76 $11.78 $11.79 $10.00 $10.00
-------- -------- --------- --------- --------- ----------
Income from Investment
Operations:
Net investment income.. 0.19 0.19 0.34 0.34 0.27 0.31
Net realized and
unrealized gain/(loss)
on investments......... 0.44 0.44 1.26 1.26 1.79 1.79
-------- -------- --------- --------- --------- ----------
Total from Investment
Operations............. 0.63 0.63 1.60 1.60 2.06 2.10
-------- -------- --------- --------- --------- ----------
Less Distributions:
Dividends from net
investment income...... (0.19) (0.19) (0.35) (0.36) (0.28) (0.31)
Distributions from net
realized capital gains. (0.49) (0.49) (0.27) (0.27) -- --
-------- -------- --------- --------- --------- ----------
Total Distributions.... (0.68) (0.68) (0.62) (0.63) (0.28) (0.31)
-------- -------- --------- --------- --------- ----------
Net Asset Value, End of
Period.................. $12.71 $12.71 $12.76 $12.76 $11.78 $11.79
======== ======== ========= ========= ========= ==========
Total Return............ 5.21% 5.21% 14.08% 14.08% 20.72% 20.82%
Net Assets, End of
Period (in thousands)... $12 $65,406 $17 $64,232 $15 $50,583
Ratios to average net
assets of:
Net Investment Income.. 3.01%** 3.01%** 2.98% 2.98% 3.04%** 3.04%**
Expenses before
waivers/reimbursements. 1.05%** 1.05%** -- -- 1.14%** 1.15%**
Expenses net of
waivers/reimbursements. 0.95%** 0.95%** 0.99% 0.99% 1.04%** 1.05%**
Portfolio Turnover Rate. 66.53% 66.53% 77.00% 77.00% 78.00% 78.00%
Average Commission Rate
(a)..................... $0.0763 $0.0763 $0.0789 $0.0789 -- --
</TABLE>
- -----------
* Commencement of operations.
** Annualized.
(a) Represents the total dollar amount of commissions paid on portfolio
transactions divided by the total number of shares purchased and sold by
the Fund for which commissions were charged.
See accompanying notes to financial statements
25
<PAGE>
IBJ FUNDS TRUST
BOARD OF TRUSTEES
George H. Stewart Stephen V.R. Goodhue
Chairman Trustee
Edward F. Ryan Robert H. Dunker
Trustee Trustee
- --------------------------------------------------------------------------------
OFFICERS
W. Anthony Turner Janelle Gellermann
President Assistant Treasurer
Charles L. Booth Alaina Metz
Vice President Assistant Secretary
Georgette L. Horton Bruce Treff
Vice President Assistant Secretary
Mike Sakala
Treasurer
<PAGE>
IBJ FUNDS TRUST
Investment Advisor
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
Administrator
BISYS Fund Services L.P.
3435 Stelzer Rd.
Columbus, Ohio 43219
Distributor
IBJ Funds Distributor, Inc.
3435 Stelzer Rd.
Columbus, Ohio 43219
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.
7/97
--------------------------------
IBJ FUNDS TRUST
--------------------------------
IBJ RESERVE MONEY MARKET FUND
IBJ CORE FIXED INCOME FUND
IBJ CORE EQUITY FUND
IBJ BLENDED TOTAL RETURN FUND
SEMI-ANNUAL REPORT
------------------------------------
MAY 31, 1997
------------------------------------
