IBJ FUNDS Trust
---------------
IBJ RESERVE MONEY MARKET FUND
IBJ BOND FUND
IBJ CORE EQUITY FUND
IBJ GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
Dear Shareholders:
The annual report of the IBJ Funds Trust covers the year ended November
30, 1996. As we have been accustomed to comparing the performance of our funds
to the relevant Morningstar Fund Average where available, you will note some
changes in categories as Morningstar has recently implemented revisions in the
classification of Funds.
ECONOMIC COMMENTARY
Economic activity in the second half of 1996 moderated from the
accelerated levels in the prior period. As a result inflation remained in check,
interest rates declined somewhat, and monetary policy remained on hold. The Fed
saw no need to tighten, as markets had previously been anticipating. Looking
ahead to 1997, GDP growth is expected to remain in the vicinity of 2.0% as the
generally over-extended consumer is forced to pull back. Inflation and interest
rates are unlikely to make any dramatic moves in this environment.
RESERVE MONEY MARKET FUND
The Fund holds investments in very high quality money market instruments
of corporate, government and agency issuers. During the year, the total rate of
return was 4.88%, and the seven day yield was 4.64%. This return will tend to
move with the general trend of Federal Reserve Monetary policy which has been
fairly steady for the past several months. An investment in the fund is neither
insured or guaranteed by the U.S. Government. Yields will fluctuate and there
can be no assurance that the fund will be able to maintain a stable NAV of $1.00
per share. Past performance is no guarantee of future results.
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 a
total rate of return from both current income and capital appreciation. For the
year the total rate of return was 4.3%. The Fund benefitted from the decline in
longer term interest rates associated with the economic slowdown in the second
half.
CORE EQUITY FUND
The Fund is invested in a broadly diversified portfolio of medium and
larger capitalization U.S. companies. For the period ended November 30, 1996 the
Fund's total rate of return was 24.61% which compares with 21.45% for the
Morningstar Growth Fund Average.
1
<PAGE>
For the past two years the performance of equities has been almost three
times the long term historical rate of return for the stock market. It is most
unlikely that this level of performance can be sustained in the ensuing period.
GROWTH AND INCOME 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.
During the period the Fund returned 14.08% compared with 15.7% for the
Morningstar Domestic Hybrid Fund Average. By "hybrid" it is meant that the fund
takes a balanced approach toward investment in equities and fixed income
instruments. As stocks and bonds continued to deliver above average returns, the
Fund took a somewhat conservative stance by increasing th cash equivalents in
the portfolio to reduce risk of volatility.
Sincerely,
/s/ John J. Pileggi /s/ Charles Porten
- ------------------- ------------------
John J. Pileggi Charles Porten
President Chief Investment Officer
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 $1,158 (as of November 30, 1996). The graph on the right shows how
this compares to our benchmark over the same period. Total return for the Fund
was 4.25%*.
The funds performance is compared to the Lehman Government/Corporate Bond Index,
which reflects the performance of U.S Treasury and Government issues with
maturities of 1 to 30 years, and investment grade corporate bonds with
maturities of 1 to 30 years. The index is unmanaged, and does not reflect the
deduction of fees associated with a mutual fund, such as investment management
and fund accounting fees. The performance of the IBJ Bond Fund reflects the fees
for these value added services. Past performance is not predictive of future
results. The investment return and NAV will fluctuate, so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
IBJ CORE EQUITY FUND
A $1,000 investment in the IBJ Core Equity Fund, made on the inception date
would have increased to $1,583 (as of November 30, 1996). The graph on the right
shows how this compares to our benchmark over the same period. Total return for
the Fund was 24.61%*.
The funds performance is compared to the Standard & Poor's 500 Stock Index,
which reflects the performance of U.S stock market as a whole. The index is
unmanaged, and does not reflect the deduction of fees associated with a mutual
fund, such as investment management and fund accounting fees. The performance of
the IBJ Equity Fund reflects the fees for these value added services. Past
performance is not predictive of future results. The investment return and NAV
will fluctuate, so that an investor's shares, when redeemed, may be worth more
or less than the original cost.
+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.
[THE FOLLOWING TABLE REPRESENTS A GRAPH IN THE PRINTED PIECE]
IBJ BOND FUND LEHMAN BROS GOVERNMENT/
SERVICE CLASS SHARES CORPORATE BOND INDEX
2/1/95 $1000 $1000
3/95 $1032 $1030
6/95 $1067 $1097
9/95 $1082 $1118
12/95 $1125 $1170
3/96 $1102 $1143
6/96 $1102 $1148
9/96 $1124 $1168
11/96 $1158 $1217
AVERAGE ANNUAL TOTAL RETURN
AS OF NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
SINCE INCEPTION
1 YEAR (2/1/95)
- --------------------------------------------------------------------------------
PREMIUM CLASS 4.25% 15.76%
- --------------------------------------------------------------------------------
SERVICE CLASS 4.25% 15.76%
- --------------------------------------------------------------------------------
[THE FOLLOWING TABLE REPRESENTS A GRAPH IN THE PRINTED PIECE]
IBJ CORE EQUITY FUND S&P 500
SERVICE CLASS SHARES STOCK INDEX
2/1/95 $1000 $1000
3/95 $1051 $1070
6/95 $1116 $1172
9/95 $1214 $1265
12/95 $1286 $1341
3/96 $1398 $1413
6/96 $1420 $1477
9/96 $1453 $1522
11/96 $1583 $1682
AVERAGE ANNUAL TOTAL RETURN
AS OF NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
SINCE INCEPTION
1 YEAR (2/1/95)
- --------------------------------------------------------------------------------
PREMIUM CLASS 24.61% 58.27%
- --------------------------------------------------------------------------------
SERVICE CLASS 24.61% 58.27%
- --------------------------------------------------------------------------------
3
<PAGE>
- --------------------------------------------------------------------------------
IBJ GROWTH & INCOME FUND
A $1,000 investment in the IBJ Growth & Income Fund, made on the inception date
would have increased to $1,338 (as of November 30, 1996). The graph on the right
shows how this compares to our benchmark over the same period. Total return for
the Fund was 14.08%*.
The funds performance is compared to the Lehman Government/Corporate Bond Index,
which reflects the performance of U.S. Treasury and Goverment issues with
maturities of 1 to 30 years, and investment grade corporate bonds with
maturities of 1 to 30 years, and the Standard & Poor's 500 Stock Index, which
reflects the performance of U.S. stock market as a whole. The indices are
unmanaged, and do not reflect the deduction of fees associated with a mutual
fund, such as investment management and fund accounting fees. The performance of
the IBJ Growth & Income Fund reflects the fees for these value added services.
Past performance is not predictive of future results. The investment return and
NAV will fluctuate, so that an investor's shares, when redeemed, may be worth
more or less than the original cost.
+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.
[THE FOLLOWING TABLE REPRESENTS A GRAPH IN THE PRINTED PIECE]
IBJ BOND FUND LEHMAN GOVERNMENT/ STANDARD & POOR'S
SERVICE CLASS SHARES CORPORATE BOND INDEX CORPORATE BOND
INDEX
2/1/95 $1000 $1000 $1000
3/95 $1037 $1030 $1070
6/95 $1091 $1097 $1172
9/95 $1147 $1118 $1265
12/95 $1203 $1170 $1341
3/96 $1239 $1143 $1413
6/96 $1241 $1148 $1477
9/96 $1264 $1168 $1522
11/96 $1338 $1217 $1682
AVERAGE ANNUAL TOTAL RETURN
AS OF NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
SINCE INCEPTION
1 YEAR (2/1/95)
- --------------------------------------------------------------------------------
PREMIUM CLASS 14.08% 33.78%
- --------------------------------------------------------------------------------
SERVICE CLASS 14.08% 33.78%
- --------------------------------------------------------------------------------
4
<PAGE>
IBJ FUNDS TRUST
IBJ MONEY MARKET RESERVE FUND
PORTFOLIO OF INVESTMENTS -- NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YIELD TO
MATURITY
CREDIT AT TIME OF MATURITY SHARES/
VALUE
RATINGS* PURCHASE DATE PRINCIPAL
(NOTE 2A)
------- --------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PAPER -- 61.78%
A1/P1 American Express Credit.................................. 5.44% 1/16/97 $1,750,000
$ 1,738,899
A1/P1 BAT Capital Corp......................................... 5.37 12/4/96 1,750,000
1,749,261
A1+/P1 Coca-Cola Co............................................. 5.34 12/23/96 1,500,000
1,495,356
A1/P1 Daimler-Benz NA Corp..................................... 5.42 12/3/96 1,750,000
1,749,507
A1/P1 Ford Credit Europe PLC................................... 5.40 12/12/96 1,750,000
1,747,187
A1 +/P1 General Electric Capital Corp............................ 5.47 1/23/97 1,500,000
1,488,805
A1+/P1 Glaxo Wellcome PLC....................................... 5.37 12/16/96 1,750,000
1,746,179
A1/P1 IBM Credit Corp.......................................... 5.40 12/5/96 1,750,000
1,748,993
A1 +/P1 Mobil Australia Finance.................................. 5.46 1/13/97 1,500,000
1,490,674
A1 +/P1 Province of Alberta...................................... 5.43 1/14/97 1,500,000
1,490,885
A1 +/P1 Toyota Motor Credit Corp................................. 5.43 12/10/96 1,750,000
1,747,717
A1/P1 Weyerhauser Real Estate.................................. 5.37 12/20/96 1,500,000
1,495,959
A1 +/P1 Wisconsin Electric Fuel Trust............................ 5.47 1/13/97 1,500,000
1,490,645
-----------
TOTAL COMMERCIAL PAPER ..................................
21,180,067
-----------
U.S. GOVERNMENT OBLIGATIONS -- 34.97%
AAA/Aaa Federal Home Loan Bank Notes............................. 5.29 3/11/97
1,000,000 999,793
AAA/Aaa Federal Home Loan Bank Discount Notes.................... 5.37 1/9/97
2,500,000 2,486,141
AAA/Aaa Federal Home Loan Mortgage Corp. Discount Notes.......... 5.39 1/24/97
800,000 793,823
AAA/Aaa Federal National Mortgage Corp. Discount Notes........... 5.39 1/28/97
4,250,000 4,214,761
AAA/Aaa Federal National Mortgage Corp. Discount Notes........... 5.31 12/11/96
3,500,000 3,495,091
-----------
TOTAL U.S GOVERNMENT OBLIGATIONS ........................
11,989,609
-----------
SHORT-TERM INVESTMENTS -- 1.62%
TempCash Provident Money Market Investment Fund.......... N/R N/A
555,498 555,498
-----------
TOTAL SHORT-TERM INVESTMENTS ............................
555,498
-----------
TOTAL INVESTMENTS (amortized cost $33,725,174)+-- 98.37%.
33,725,174
Cash and other assets, net of liabilities-- 1.63% .......
557,646
-----------
NET ASSETS-- 100.00% ....................................
$34,282,820
===========
</TABLE>
* See page 13 for Credit Ratings Summary.
+ Cost for book and tax purposes is the same.
See accompanying notes to financial statements
5
<PAGE>
IBJ FUNDS TRUST
IBJ BOND FUND
PORTFOLIO OF INVESTMENTS -- NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT VALUE
RATINGS* PRINCIPAL COST
(NOTE 2A)
- -------- --------- ---- ---------
U.S. GOVERNMENT OBLIGATIONS -- 15.64%
<S> <C> <C> <C> <C>
AAA/Aaa $ 650,000 Federal Farm Credit Medium Term Notes 6.32%, 9/9/2002......... $
649,797 $ 659,763
---------- ----------
MORTGAGE OBLIGATIONS
AAA/Aaa 500,000 FHLMC 6.54%, 3/21/2001 ....................................... 496,304
500,790
AAA/Aaa 500,000 FHLMC 6.56%, 2/1/2006......................................... 499,844
496,770
AAA/Aaa 750,000 FHLMC Discount Notes due 12/20/1996...........................
747,994 747,994
AAA/Aaa 17,245 FHLMC Pool #285113, 7.50%, 2/1/2017........................... 16,855
17,455
AAA/Aaa 500,000 FNMA Medium Term Notes 6.08%, 9/25/2000.......................
500,120 502,135
AAA/Aaa 672,238 FNMA Pool #358604, 8.00%,11/1/2026............................
690,513 691,145
AAA/Aaa 2,894 GNMA Pool #39821, 11.50%, 4/15/2010........................... 3,146
3,240
AAA/Aaa 98,653 GNMA Pool #102627,13.00%, 6/15/2014...........................
110,242 111,119
AAA/Aaa 73,448 GNMA Pool #115224, 13.00%, 11/15/2014.........................
82,008 82,648
AAA/Aaa 42,408 GNMA Pool #120883, 13.00%, 12/15/2014.........................
47,327 47,667
AAA/Aaa 487,034 GNMA Pool #398559, 7.00%, 4/15/2026...........................
470,901 484,305
---------- ----------
3,665,254 3,685,268
---------- ----------
TOTAL U.S. GOVERNMENT OBLIGATIONS ............................
4,315,051 4,345,031
---------- ----------
U.S. TREASURY OBLIGATIONS -- 50.85%
AAA/Aaa 750,000 Bonds 5.75%, 10/31/1997....................................... 751,650
752,265
AAA/Aaa 1,500,000 Notes 6.375%, 5/15/1999....................................... 1,523,855
1,524,180
AAA/Aaa 2,000,000 Notes 6.75%, 6/30/1999........................................ 2,022,610
2,051,000
AAA/Aaa 500,000 Notes 6.00%,10/15/1999........................................ 495,018
504,665
AAA/Aaa 2,250,000 Notes 6.75%, 4/30/2000........................................ 2,264,804
2,317,927
AAA/Aaa 2,000,000 Notes 6.50%, 5/31/2001........................................ 2,007,388
2,052,680
AAA/Aaa 1,750,000 Notes 6.25%, 2/15/2003........................................ 1,745,335
1,780,135
AAA/Aaa 1,000,000 Notes 6.50%, 8/15/2005........................................ 984,219
1,030,030
AAA/Aaa 2,000,000 Notes 6.875%, 5/15/2006....................................... 2,098,881
2,113,159
---------- ----------
TOTAL U.S. TREASURY OBLIGATIONS .............................. 13,893,760
14,126,041
---------- ----------
CORPORATE OBLIGATIONS -- 29.67%
AUTOMOBILES -- 1.47%
A-/A3 400,000 GMAC Notes 7.00%, 3/1/2000.................................... 402,094
409,000
---------- ----------
BANKING -- 2.54%
A+/A2 300,000 BankAmerica Corp. Medium Term Notes 7.125%, 5/12/2005.........
303,260 309,000
A+/Baa1 400,000 Old Kent Financial Sub. Notes 6.625%, 11/15/2005..............
397,808 397,000
---------- ----------
701,068 706,000
---------- ----------
DURABLE GOODS -- 1.02%
A+/A3 250,000 Whirlpool Corp. Debs. 9.00%, 3/1/2003......................... 257,490
281,875
---------- ----------
ENVIRONMENTAL CONTROL -- 1.42%
A/A2 400,000 Browning-Ferris Sr. Notes 6.10%, 1/15/2003.................... 404,851
393,500
---------- ----------
FINANCIAL SERVICES -- 2.75%
AA-/Aa3 350,000 Associates Corp. N.A. Sr. Notes 7.50%, 4/15/2002..............
351,668 369,688
A+/A1 385,000 Commercial Credit Co. Notes 6.875%, 5/1/2002..................
389,522 395,588
---------- ----------
741,190 765,276
---------- ----------
</TABLE>
See accompanying notes to financial statements
6
<PAGE>
IBJ FUNDS TRUST
IBJ BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT SHARES/ VALUE
RATINGS* PRINCIPAL COST
(NOTE 2A)
- -------- --------- ---- ---------
<S> <C> <C> <C> <C>
FOOD -- 1.25%
BBB/Baa2 $350,000 Nabisco Inc. Notes 6.85%, 6/15/2005........................... $
356,757 $ 347,813
----------- -----------
FOREST PRODUCTS & PAPER -- 2.62%
BBB-/Baa3 400,000 Boise Cascade Co. Debs. 7.35%, 2/1/2016.......................
399,656 388,000
BBB/Baa1 325,000 Champion International Corp. Notes 7.70%, 12/15/1999..........
335,881 339,219
----------- -----------
735,537 727,219
----------- -----------
MACHINES -- 0.78%
BBB-/Baa3 210,000 Case Corp. Notes 7.25%, 8/1/2005.............................. 213,067
215,513
----------- -----------
OIL/GAS -- 0.95%
AAA/Aa1 250,000 Amoco Canada Debs. 7.95%,10/1/2022............................
257,797 265,312
----------- -----------
TELEPHONE -- 1.45%
AA/Aa3 400,000 Southwestern Bell Capital Medium Term Notes 6.45%, 1/20/1998..
401,956 402,500
----------- -----------
TRANSPORTATION -- 4.40%
BBB/Baa2 411,000 Canadian National Railway Notes 7.00%, 3/15/2004..............
409,671 417,679
A-/A3 140,000 Canadian Pacific Notes 6.875%, 4/15/2003...................... 141,538
142,800
AA/Aa1 350,000 Conrail, Inc. Notes 6.86%, 12/31/2007......................... 344,435
352,129
BBB+/A3 300,000 CSX Corp Notes 7.00%, 9/15/2002............................... 299,280
310,875
----------- -----------
1,194,924 1,223,483
----------- -----------
UTILITIES -- 9.02%
A/A2 350,000 Central Power & Light Notes 6.875%, 2/1/2003..................
358,472 359,625
A/A2 250,000 Delmarva Power & Light Notes 6.40%, 7/1/2003..................
248,472 248,750
A+/A2 250,000 Hydro Quebec Medium Term Notes 8.59%, 8/22/2001...............
251,199 273,125
BBB/Baa2 500,000 Illinois Power Notes 6.50%, 8/1/2003 ......................... 502,598
501,875
BBB+/Baa1 300,000 Jersey Central Power & Light Notes 7.125%, 10/1/2004..........
308,632 303,375
AA/Aa3 400,000 National Rural Utilities Notes 6.50%, 9/15/2002...............
402,226 404,500
NR/Baa2 400,000 New Orleans Public Service Inc. Notes 8.00%, 3/1/2006.........
396,580 415,500
2,468,179 2,506,750
----------- -----------
TOTAL CORPORATE OBLIGATIONS .................................. 8,134,910
8,244,241
----------- -----------
MUNICIPAL OBLIGATIONS -- 1.43%
A+/NR 361,000 Halifax NC Regional Economic Development
Notes 9.25%,10/1/2005......................................... 366,983
396,649
----------- -----------
TOTAL MUNICIPAL OBLIGATIONS .................................. 366,983
396,649
----------- -----------
SUPRA-NATIONAL OBLIGATIONS -- 0.96%
AA-/Aa1 250,000 African Development Bank Notes 7.70%, 7/15/2002...............
259,531 268,125
----------- -----------
TOTAL SUPRA-NATIONAL OBLIGATIONS ............................
259,531 268,125
----------- -----------
SHORT TERM INVESTMENTS -- 1.25%
346,616 TempCash Provident Money Market Investment Fund...............
346,616 346,616
----------- -----------
TOTAL SHORT TERM INVESTMENTS ................................. 346,616
346,616
----------- -----------
TOTAL INVESTMENTS -- 99.80% .................................. $27,316,851+
27,726,703
===========
Cash and other assets, net of liabilities-- 0.20% ............
55,834
-----------
NET ASSETS-- 100.00% .........................................
$27,782,537
===========
</TABLE>
* See page 13 for Credit Ratings Summary.
+ Cost for book and tax purposes is the same.
See accompanying notes to financial statements
7
<PAGE>
IBJ FUNDS TRUST
IBJ CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS -- NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
VALUE
SHARES COST (NOTE 2A)
------- ---- ------
COMMON STOCKS -- 97.77%
AEROSPACE/DEFENSE -- 4.21 %
38,200 Raytheon Co.................... $1,318,583 $1,952,975
14,200 United Technologies Corp....... 1,545,276 1,991,550
---------- ----------
2,863,859 3,944,525
---------- ----------
AUTOMOBILES -- 1.22%
34,000 Echlin Inc..................... 1,152,125 1,143,250
---------- ----------
BANKING -- 6.20%
16,500 First American Corp............ 492,937 944,625
20,400 NationsBank Corp............... 965,061 2,113,950
64,500 Signet Banking Corp............ 1,511,488 1,951,125
2,800 Wells Fargo & Co............... 745,200 796,950
---------- ----------
3,714,686 5,806,650
---------- ----------
BEVERAGES -- 1.74%
54,600 Pepsico. Inc................... 1,693,179 1,631,175
---------- ----------
BUILDING MATERIALS -- 0.79%
13,100 Sherwin-Williams Co............ 442,051 743,425
---------- ----------
BUSINESS SERVICES -- 4.02%
43,900 Automatic Data Processing Inc. 1,373,123 1,882,213
67,800 Reynolds & Reynolds Co......... 1,163,347 1,881,450
---------- ----------
2,536,470 3,763,663
---------- ----------
CHEMICALS -- 5.09%
29,000 Air Products & Chemicals Inc. 1,521,512 2,015,500
42,200 Monsanto Co.................... 659,067 1,677,450
26,700 Morton International Inc....... 1,098,743 1,078,012
---------- ----------
3,279,322 4,770,962
---------- ----------
ELECTRONICS -- 8.48%
22,000 General Electric Co............ 1,220,040 2,288,000
37,600 Hewlett-Packard Co............. 1,075,657 2,025,700
47,000 Molex Inc...................... 1,355,453 1,833,000
32,400 Motorola Inc................... 1,943,395 1,794,150
---------- ----------
5,594,545 7,940,850
---------- ----------
ENTERTAINMENT -- 3.75%
26,900 The Walt Disney Co............. 1,538,052 1,983,875
37,500 Time Warner Inc................ 1,371,720 1,528,125
---------- ----------
2,909,772 3,512,000
---------- ----------
FINANCIAL SERVICES -- 2.15%
21,200 Household International Inc.... 852,101 2,008,700
---------- ----------
FOOD -- 6.24%
50,000 Nabisco Holdings Corp.
Class A..................... 1,384,522 1,937,500
51,300 Sara Lee Corp.................. 1,421,838 2,013,525
55,500 Sysco Corp..................... 1,722,940 1,893,937
---------- ----------
4,529,300 5,844,962
---------- ----------
HOUSEHOLD PRODUCTS -- 2.03%
20,500 Colgate-Palmolive Co........... 1,281,320 1,898,812
---------- ----------
INSURANCE -- 4.08%
17,000 American International
Group Inc................... 1,155,980 1,955,000
61,300 TIG Holdings Inc............... 1,332,157 1,869,650
---------- ----------
2,488,137 3,824,650
---------- ----------
MACHINES -- 2.05%
36,000 Dover Corp..................... 1,057,512 1,921,500
---------- ----------
MANUFACTURING -- 2.34%
29,900 Allied Signal Inc.............. 1,057,712 2,190,175
---------- ----------
MEDICAL -- 1.93%
45,300 Columbia HCA
Healthcare Corp............. 1,242,265 1,812,000
---------- ----------
METALS -- 2.90%
27,900 Aluminum Company
of America.................. 1,110,377 1,775,137
47,300 Worthington Industries Inc..... 978,500 940,087
---------- ----------
2,088,877 2,715,224
---------- ----------
OIL/GAS -- 7.97%
15,300 Atlantic Richfield Co.......... 1,637,010 2,128,613
42,500 Enron Corp..................... 1,528,594 1,944,375
18,000 Mobil Corp..................... 1,625,905 2,178,000
29,800 Unocal Corp.................... 1,224,012 1,214,350
---------- ----------
6,015,521 7,465,338
---------- ----------
PHARMACEUTICAL -- 6.09%
58,600 Alza Corp.*.................... 1,686,921 1,655,450
31,100 Amgen Inc.*.................... 1,796,332 1,893,213
24,000 Pfizer Inc..................... 973,500 2,151,000
---------- ----------
4,456,753 5,699,663
---------- ----------
See accompanying notes to financial statements
8
<PAGE>
IBJ FUNDS TRUST
IBJ CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) -- NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
VALUE
SHARES COST (NOTE 2A)
------- ---- ------
RETAIL -- 8.02%
39,000 Kroger Co.*.................... $ 926,250 $ 1,798,875
39,000 May Department Stores Co....... 1,257,102 1,901,250
85,100 Price/Costco Inc.*............. 1,201,163 1,978,575
53,000 Revco D.S. Inc.*............... 1,232,534 1,828,500
----------- -----------
4,617,049 7,507,200
----------- -----------
TELECOMMUNICATIONS -- 6.08%
58,199 360 Communications Co.*........ 1,242,858 1,382,226
9,236 Lucent Technologies Inc........ 398,653 473,345
35,300 SBC Communications Inc......... 1,541,117 1,857,663
47,400 Sprint Corp.................... 1,164,435 1,984,875
----------- -----------
4,347,063 5,698,109
----------- -----------
TEXTILES/APPAREL -- 1.74%
53,100 Jones Apparel Group Inc.*...... 630,307 1,632,825
----------- -----------
TOBACCO -- 0.88%
8,000 Philip Morris Companies Inc.... 726,224 825,000
----------- -----------
TRANSPORTATION -- 3.75%
35,000 Kansas City
Southern Industries, Inc.... 1,577,178 1,758,750
19,500 Norfolk Southern Corp.......... 1,570,497 1,755,000
----------- -----------
3,147,675 3,513,750
----------- -----------
UTILITIES-ELECTRIC -- 4.02%
55,400 Cinergy Corp................... $ 1,678,095 $ 1,855,901
41,100 Duke Power Co.................. 1,743,973 1,906,013
----------- -----------
3,422,068 3,761,914
----------- -----------
Total Common Stocks ........... 66,145,893 91,576,322
----------- -----------
SHORT TERM INVESTMENTS -- 2.57%
2,404,534 TempCash Provident Money
Market Investment Fund...... 2,404,534 2,404,534
----------- -----------
TOTAL SHORT-TERM
INVESTMENTS ................ 2,404,534 2,404,534
----------- -----------
TOTAL INVESTMENTS -- 100.34%$ $68,550,427+ 93,980,856
===========
LIABILITIES, IN EXCESS OF CASH
AND OTHER ASSETS-- (0.34%) . (320,824)
-----------
NET ASSETS-- 100.00% .......... $93,660,032
===========
*Represents non-income producing securities.
+Cost for book and tax purposes is the same.
See accompanying notes to financial statements
9
<PAGE>
IBJ FUNDS TRUST
IBJ GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS - NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
VALUE
SHARES COST (NOTE 2A)
------- ---- ------
COMMON STOCKS--48.49%
AEROSPACE/DEFENSE -- 2.25%
13,200 Raytheon Co.................... $ 460,642 $ 674,850
5,500 United Technologies Corp....... 595,896 771,375
---------- ----------
1,056,538 1,446,225
---------- ----------
AUTOMOBILES -- 0.61 %
11,600 Echlin Inc..................... 393,192 390,050
---------- ----------
BANKING -- 3.15%
5,900 First American Corp............ 212,263 337,775
7,400 NationsBank Corp............... 356,569 766,825
21,900 Signet Banking Corp............ 484,700 662,475
900 Wells Fargo & Co............... 239,529 256,163
---------- ----------
1,293,061 2,023,238
---------- ----------
BEVERAGES -- 0.87%
18,800 Pepsico Inc.................... 584,353 561,650
---------- ----------
BUILDING MATERIALS -- 0.40%
4,500 Sherwin-Williams Co............ 157,935 255,375
---------- ----------
BUSINESS SERVICES -- 1.91%
13,700 Automatic Data
Processing Inc.............. 417,022 587,388
23,100 Reynolds &
Reynolds Co................. 389,734 641,025
---------- ----------
806,756 1,228,413
---------- ----------
CHEMICALS -- 2.53%
9,900 Air Products & Chemicals Inc. 524,633 688,050
14,500 Monsanto Co.................... 244,278 576,375
8,900 Morton International Inc....... 366,227 359,338
---------- ----------
1,135,138 1,623,763
---------- ----------
ELECTRONICS -- 4.20%
7,600 General Electric Co............ 434,850 790,400
11,800 Hewlett-Packard Co............. 324,673 635,725
16,700 Molex Inc...................... 489,312 651,300
11,200 Motorola Inc................... 670,703 620,200
---------- ----------
1,919,538 2,697,625
---------- ----------
ENTERTAINMENT -- 1.85%
9,100 The Walt Disney Co............. 521,003 671,125
12,700 Time Warner Inc................ 481,570 517,525
---------- ----------
1,002,573 1,188,650
---------- ----------
FINANCIAL SERVICES -- 1.06%
7,200 Household International Inc.... 289,994 682,200
---------- ----------
FOOD -- 2.93%
15,800 Nabisco Holdings
Corp. Class A............... 438,399 612,250
17,200 Sara Lee Corp.................. 481,622 675,100
17,400 Sysco Corp..................... 539,075 593,775
---------- ----------
1,459,096 1,881,125
---------- ----------
HOUSEHOLD PRODUCTS -- 0.99%
6,900 Colgate-Palmolive Co........... 445,958 639,113
---------- ----------
INSURANCE -- 2.08%
6,000 American International
Group Inc................... 407,987 690,000
21,100 TIG Holdings Inc............... 472,889 643,550
---------- ----------
880,876 1,333,550
---------- ----------
MACHINES -- 1.01%
12,200 Dover Corp..................... 382,594 651,175
---------- ----------
MANUFACTURING -- 1.06%
9,300 Allied Signal Inc.............. 328,987 681,225
---------- ----------
MEDICAL -- 0.98%
15,750 Columbia HCA
Healthcare Corp............. 434,174 630,000
---------- ----------
METALS -- 1.40%
9,100 Aluminum Company of
America..................... 364,561 578,987
16,100 Worthington Industries Inc..... 332,875 319,988
---------- ----------
697,436 898,975
---------- ----------
OIL/GAS -- 3.99%
5,300 Atlantic Richfield Co.......... 577,671 737,363
14,500 Enron Corp..................... 518,718 663,375
6,200 Mobil Corp..................... 582,403 750,200
10,200 Unocal Corp.................... 418,938 415,650
---------- ----------
2,097,730 2,566,588
---------- ----------
PHARMACEUTICAL -- 2.94%
20,200 Alza Corp. *................... 580,953 570,650
10,600 Amgen Inc.*.................... 612,984 645,275
7,500 Pfizer Inc..................... 310,679 672,188
---------- ----------
1,504,616 1,888,113
---------- ----------
RETAIL -- 4.01%
13,300 Kroger Co.*.................... 315,875 613,463
14,000 May Department Stores Co....... 508,486 682,500
28,000 Price/Costco Inc.*............. 394,625 651,000
18,200 Revco D.S. Inc.*............... 424,226 627,900
---------- ----------
1,643,212 2,574,863
---------- ----------
See accompanying notes to financial statements
10
<PAGE>
IBJ FUNDS TRUST
IBJ GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) - NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
SHARES/ VALUE
PRINCIPAL COST (NOTE 2A)
--------- ---- ------
TELECOMMUNICATIONS -- 3.04%
20,133 360 Communications Co. * ...... $ 433,508 $ 478,159
3,305 Lucent Technologies Inc. ...... 147,237 169,380
12,500 SBC Communications Inc. ....... 539,556 657,812
15,400 Sprint Corp ................... 388,016 644,875
---------- ----------
1,508,317 1,950,226
---------- ----------
TEXTILES/APPAREL -- 0.95%
19,900 Jones Apparel Group Inc.* ..... 249,896 611,924
---------- ----------
TOBACCO -- 0.42%
2,600 Philip Morris Companies Inc.... 236,023 268,124
---------- ----------
TRANSPORTATION -- 1.84%
11,900 Kansas City Southern
Industries, Inc............. 531,284 597,974
6,500 Norfolk Southern Corp.......... 523,775 585,000
---------- ----------
1,055,059 1,182,974
---------- ----------
UTILITIES-ELECTRIC -- 2.02%
19,100 Cinergy Corp................... 578,327 639,850
14,200 Duke Power Co.................. 610,968 658,525
---------- ----------
1,189,295 1,298,375
---------- ----------
TOTAL COMMON STOCKS ........... 22,752,347 31,153,539
---------- ----------
U.S. GOVERNMENT OBLIGATIONS -- 18.73%
$2,000,000 FHLB Discount Notes
due 1/9/1997................ 1,989,182 1,989,182
500,000 FHLB Medium Term Notes
6.07%, 6/30/2003............ 489,755 498,005
500,000 FHLMC 6.54%, 3/21/2001 ........ 492,730 500,790
500,000 FHLMC 6.56%, 2/1/2006 ......... 499,687 496,770
2,000,000 FHLMC Discount Notes
due 12/20/1996.............. 1,994,616 1,994,616
2,500,000 FHLMC Discount Notes
due 2/10/1997............... 2,475,153 2,473,689
500,500 FNMA 6.50%, 8/25/2004 ......... 462,865 504,070
2,000,000 FNMA Discount Notes
due 1/17/1997............... 1,986,343 1,985,817
500,000 FNMA Medium Term Notes
7.52%, 4/23/2004............ 494,766 516,745
55,870 GNMA Pool #55056 13.00%,
3/15/2012................... 62,272 62,832
23,073 GNMA Pool #102470 13.00%,
10/15/2013.................. 25,707 25,917
487,444 GNMA Pool #406475 7.00%,
4/15/2026................... 472,287 484,748
491,426 GNMA Pool #422801 7.50%,
5/15/2026................... 487,395 498,485
---------- ----------
TOTAL U.S. GOVERNMENT
OBLIGATIONS ................ 11,932,758 12,031,666
---------- ----------
U.S. TREASURY OBLIGATIONS -- 19.07%
1,000,000 Notes 5.50%, 9/30/1997......... 1,000,703 1,000,790
1,250,000 Notes 5.75%, 10/31/1997 ....... 1,252,510 1,253,775
1,000,000 Notes 6.00%, 9/30/1998......... 1,002,492 1,007,800
1,250,000 Notes 7.00%, 4/15/1999......... 1,275,620 1,286,812
1,250,000 Notes 6.375%, 5/15/1999 ....... 1,269,879 1,270,150
1,750,000 Notes 6.375%, 3/31/2001 ....... 1,770,463 1,786,767
1,500,000 Notes 6.25%, 2/15/2003......... 1,503,247 1,525,830
750,000 Notes 6.50%, 5/15/2005......... 776,124 772,567
1,000,000 Notes 6.50%, 8/15/2005......... 985,000 1,030,030
1,250,000 Notes 6.875%, 5/15/2006 ....... 1,311,286 1,320,725
---------- ----------
TOTAL U.S. TREASURY
OBLIGATIONS ................ 12,147,324 12,255,246
---------- ----------
CORPORATE OBLIGATIONS -- 11.22%
AUTOMOBILES -- 0.64%
400,000 GMAC Notes 7.00%,
3/1/2000.................... 402,992 409,000
---------- ----------
BANKING -- 1.44%
250,000 BankAmerica Corp.
Medium Term Notes
7.125%, 5/12/2005........... 252,715 257,500
250,000 JP Morgan Sub Notes
7.625%, 9/15/2004........... 248,078 268,125
400,000 Old Kent Financial
Sub. Notes 6.625%,
11/15/2005.................. 397,808 397,000
---------- ----------
898,601 922,625
---------- ----------
CHEMICALS -- 0.40%
250,000 Dupont El de Nemours
Medium Term Notes
8.35%, 5/15/1998............ 251,448 258,750
---------- ----------
DURABLE GOODS -- 0.34%
215,000 Xerox Corp. Debs. 9.625%,
9/1/1997.................... 217,822 220,960
---------- ----------
See accompanying notes to financial statements
11
<PAGE>
IBJ FUNDS TRUST
IBJ GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) - NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
VALUE
PRINCIPAL COST (NOTE 2A)
--------- ---- ------
FINANCIAL SERVICES -- 1.20%
$250,000 Associates Corp. N.A.
Sr. Notes 7.50%,
4/15/2002................... $ 251,190 $ 264,062
250,000 Commercial Credit Co.
Notes 6.375%, 9/15/2002..... 250,000 251,562
250,000 Heller Financial Notes 6.50%,
5/15/2000................... 249,515 252,812
---------- -----------
750,705 768,436
---------- -----------
FOOD -- 0.54%
350,000 Nabisco Inc. Notes
6.85%, 6/15/2005............ 356,756 347,813
---------- -----------
FOREST PRODUCTS & PAPER -- 0.53%
350,000 Boise Cascade Co. Debs.
7.35%, 2/1/2016............. 349,699 339,500
---------- -----------
OIL/GAS -- 0.58%
350,000 Amoco Canada Debs.
7.95%, 10/1/2022............ 361,246 371,438
---------- -----------
TELEPHONE -- 0.63%
400,000 Southwestern Bell Capital
Medium Term Notes
6.45%, 1/20/1998............ 401,956 402,500
---------- -----------
TRANSPORTATION -- 0.96%
300,000 Canadian National Railway
Notes 7.00%, 3/15/2004...... 303,530 304,875
300,000 CSX Corp. Notes
7.00%, 9/15/2002............ 299,280 310,875
---------- -----------
602,810 615,750
---------- -----------
UTILITIES -- 3 97%
300,000 Central Power & Light Notes
6.875%, 2/1/2003............ 307,262 308,250
250,000 Delmarva Power & Light
Notes 6.40%, 7/1/2003 ...... 248,473 248,750
250,000 Hydro Quebec Medium Term
Notes 8.59%, 8/22/2001 ..... 251,199 273,125
400,000 Illinois Power Notes
6.50%, 8/1/2003............. 402,078 401,500
350,000 Jersey Central Power & Light
Notes 7.125%,
10/1/2004................... 360,070 353,938
400,000 New Orleans Public
Service Inc. Notes
8.00%, 3/1/2006............. 396,580 415,500
300,000 Pacific Gas & Electric Medium
Term Notes
9.08%,12/15/1997............ 303,163 309,375
250,000 Philadelphia Electric Notes
6.375%, 8/15/2005........... 245,606 242,500
---------- -----------
2,514,431 2,552,938
---------- -----------
TOTAL CORPORATE OBLIGATIONS ... 7,108,466 7,209,710
---------- -----------
MUNICIPAL OBLIGATIONS -- 0.58%
338,000 Halifax NC Regional
Economic Development
Notes 9.25%, 10/1/2005...... 343,601 371,378
---------- -----------
TOTAL MUNICIPAL OBLIGATIONS ... 343,601 371,378
---------- -----------
SUPRA-NATIONAL OBLIGATIONS -- 0.42%
250,000 African Development
Bank Sub. Notes
7.70%, 7/15/2002............ 259,531 268,127
---------- -----------
TOTAL SUPRA-NATIONAL
OBLIGATIONS ................ 259,531 268,127
---------- -----------
SHORT TERM INVESTMENTS -- 2.20%
1,413,219 TempCash Provident Money
Market Investment Fund...... 1,413,219 1,413,219
---------- -----------
Total Short Term
Investments................. 1,413,219 1,413,219
---------- -----------
TOTAL INVESTMENTS -- 100.72%$ 55,957,246+ 64,702,885
==========
LIABILITIES, IN EXCESS OF CASH
AND OTHER ASSETS-- (0.72%) (453,271)
-----------
NET ASSETS-- 100.00% .......... $64,249,614
===========
*Represents non-income producing securities.
+Cost for book and tax purposes is the same.
See accompanying notes to financial statements
12
<PAGE>
IBJ FUNDS TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED) - NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
*Credit Ratings given by Standard & Poor's Corporation and Moody's Investors
Service Inc. (unaudited)
STANDARD & POOR'S MOODY'S
- --------------- -------
A1 P1 Instrument of the highest quality.
AAA Aaa Instrument judged to be of the highest
quality and carrying the smallest amount
of investment risk.
AA Aa Instrument judged to be of high quality
by all standards.
A A Instrument judged to be adequate by all
standards.
BBB Baa Instrument judged to be of modest quality
by all standards.
NR NR Not Rated. In the opinion of the
Investment Adviser, instrument judged to
be of comparable investment quality to
rated securities which may be purchased
by the Fund.
For items possessing the strongest investment attributes of their category,
Moody's gives that letter rating followed by a number. The Standard & Poor's
ratings may be modified by the addition of a plus or minus sign to show relative
standing within the major rating categories.
U.S. Government Issues have an assumed rating of AAA/Aaa.
See accompanying notes to financial statements
13
<PAGE>
IBJ FUNDS TRUST
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RESERVE MONEY
MARKET FUND BOND FUND
----------- -----------
ASSETS
<S> <C> <C>
Investments, at value (amortized cost $33,725,174, cost
$27,316,851, $68,550,427, $55,957,246).......................... $33,725,174 $27,726,703
Cash.............................................................. 597,742 --
Receivable for investments sold................................... -- 1,283,476
Interest receivable............................................... 11,711 401,300
Dividends receivable.............................................. 1,697 2,956
Deferred organization expenses (Note 2e).......................... 18,223 18,223
----------- -----------
Total assets.................................................. 34,354,547 29,432,658
----------- -----------
LIABILITIES
Payable for investments purchased................................. -- 1,528,397
Payable to custodian.............................................. -- 46,164
Advisory fee payable (Note 3)..................................... -- 8,929
Administrative fee payable (Note 3)............................... 4,338 3,348
Accrued expenses.................................................. 67,389 63,283
----------- -----------
Total liabilities............................................. 71,727 1,650,121
----------- -----------
NET ASSETS........................................................ $34,282,820 $27,782,537
=========== ===========
NET ASSETS CONSIST OF:
Capital Stock, $.001 par value
per share; (unlimited shares authorized)........................ $ 34,290 $ 2,718
Additional paid-in capital........................................ 34,255,564 27,339,597
Accumulated undistributed/(excess distributions of) net
investment income............................................... -- --
Accumulated undistributed net realized gain/(loss) on investments. (7,034) 30,370
Net unrealized appreciation of investments........................ -- 409,852
----------- -----------
NET ASSETS........................................................ $34,282,820 $27,782,537
=========== ===========
SHARES OF BENEFICIAL INTEREST
Premium Class:
Net assets........................................................ $ 13,665 $ 14,630
=========== ===========
Shares of beneficial interest outstanding......................... 13,669 1,432
=========== ===========
Net asset value per share (Net Assets / Shares Outstanding)....... $ 1.00 $ 10.22
Service Class:
Net assets........................................................ $34,269,155 $27,767,907
=========== ===========
Shares of beneficial interest outstanding......................... 34,276,185 2,716,462
=========== ===========
Net asset value per share (Net Assets / Shares Outstanding)....... $ 1.00 $ 10.22
</TABLE>
<TABLE>
<CAPTION>
CORE EQUITY GROWTH AND
FUND INCOME FUND
---------- -----------
ASSETS
<S> <C> <C>
Investments, at value (amortized cost $33,725,174, cost
$27,316,851, $68,550,427, $55,957,246).......................... $93,980,856 $64,702,885
Cash.............................................................. 123,928 --
Receivable for investments sold................................... 704,672 1,377,945
Interest receivable............................................... -- 281,005
Dividends receivable.............................................. 153,826 53,998
Deferred organization expenses (Note 2e).......................... 18,223 18,223
----------- -----------
Total assets.................................................. 94,981,505 66,434,056
----------- -----------
LIABILITIES
Payable for investments purchased................................. 1,224,012 1,951,370
Payable to custodian.............................................. -- 127,538
Advisory fee payable (Note 3)..................................... 38,307 26,070
Administrative fee payable (Note 3)............................... 11,492 7,821
Accrued expenses.................................................. 47,662 71,643
----------- -----------
Total liabilities............................................. 1,321,473 2,184,442
----------- -----------
NET ASSETS........................................................ $93,660,032 $64,249,614
=========== ===========
NET ASSETS CONSIST OF:
Capital Stock, $.001 par value
per share; (unlimited shares authorized)........................ $ 6,093 $ 5,034
Additional paid-in capital........................................ 57,974,289 52,441,157
Accumulated undistributed/(excess distributions of) net
investment income............................................... 386,120 (9,267)
Accumulated undistributed net realized gain/(loss) on investments. 9,863,101 3,067,051
Net unrealized appreciation of investments........................ 25,430,429 8,745,639
----------- -----------
NET ASSETS........................................................ $93,660,032 $64,249,614
=========== ===========
SHARES OF BENEFICIAL INTEREST
Premium Class:
Net assets........................................................ $ 20,202 $ 17,230
=========== ===========
Shares of beneficial interest outstanding......................... 1,314 1,350
=========== ===========
Net asset value per share (Net Assets / Shares Outstanding)....... $ 15.37 $ 12.76
Service Class:
Net assets........................................................ $93,639,830 $64,232,384
=========== ===========
Shares of beneficial interest outstanding......................... 6,091,390 5,032,961
=========== ===========
Net asset value per share (Net Assets / Shares Outstanding)....... $ 15.37 $ 12.76
</TABLE>
See accompanying notes to financial statements
14
<PAGE>
IBJ FUNDS TRUST
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RESERVE MONEY CORE EQUITY
GROWTH AND
MARKET FUND BOND FUND FUND
INCOME FUND
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment income:
Interest income .................................................. $ 1,877,796 $ 1,683,989 $ 13,361 $
1,687,563
Dividend income .................................................. 35,221 36,498 1,609,449
572,564
------------ ------------ ------------ ------------
Total Income ................................................... 1,913,017 1,720,487 1,622,810
2,260,127
------------ ------------ ------------ ------------
Expenses:
Advisory (Note 3) ................................................ 106,107 132,005 533,300
341,198
Administrative services (Note 3) ................................. 52,601 39,602 133,328
85,315
Fund accounting fees and expenses (Note 3) ....................... 30,668 41,721
33,836 43,504
Audit ............................................................ 15,850 23,850 23,850 23,850
Legal ............................................................ 25,253 17,604 62,403 39,867
Registration ..................................................... 4,635 2,510 1,910 4,910
Custodian fees ................................................... 14,034 10,490 35,446
22,424
Amortization of organization expense ............................. 5,768 5,768 5,768
5,768
Printing ......................................................... 4,060 2,269 2,864 2,047
Trustees' ........................................................ 9,067 9,067 9,067 9,067
Insurance ........................................................ 2,529 2,784 8,679 5,313
Transfer and shareholder servicing agent (Note 3) ................ 9,696 5,881
8,396 5,563
Miscellaneous .................................................... 52,196 28,542 21,105
31,695
------------ ------------ ------------ ------------
Total expenses before waivers/reimbursements ................... 332,464 322,093
879,952 620,521
Less expenses waived/reimbursed ................................ (106,107) (26,400)
(88,874) (56,745)
------------ ------------ ------------ ------------
Net expenses ................................................... 226,357 295,693 791,078
563,776
------------ ------------ ------------ ------------
Net investment income .............................................. 1,686,660 1,424,794 831,732
1,696,351
------------ ------------ ------------ ------------
Net realized and unrealized gain/(loss) on investments:
Net realized gain/(loss) on investments ............................ (4,100) 30,875 9,863,103
3,067,207
Net increase in unrealized appreciation/depreciation of
investments ...................................................... -- (312,253) 9,092,966
3,016,124
------------ ------------ ------------ ------------
Net realized and unrealized gain/(loss) on investments ......... (4,100) (281,378)
18,956,069 6,083,331
------------ ------------ ------------ ------------
Net increase in net assets resulting from operations ............... $ 1,682,560 $ 1,143,416 $
19,787,801 $ 7,779,682
============ ============
============ ============
</TABLE>
See accompanying notes to financial statements
15
<PAGE>
<TABLE>
<CAPTION>
IBJ FUNDS TRUST
Statement of Changes in Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Reserve Money Market Fund
-------------------------------------
For the For the Period
Year Ended February 1, 1995* to
November 30, 1996 November 30,
1995
----------------- -----------------
<S> <C> <C>
Operations:
Net investment income........................................................... $ 1,686,660 $
1,127,106
Net realized gain/(loss) on investments......................................... (4,100)
(2,934)
Net change in unrealized appreciation/(depreciation) of
investments................................................................... -- --
----------- -----------
Net increase in net assets resulting from operations................................ 1,682,560
1,124,172
----------- -----------
Dividends to shareholders from net investment income:
Premium Class................................................................... (607) (564)
Service Class................................................................... (1,686,053) (1,126,542)
----------- -----------
(1,686,660) (1,127,106)
----------- -----------
Distributions to shareholders from realized gain on investments:
Premium Class................................................................... -- --
Service Class................................................................... -- --
----------- -----------
-- --
----------- -----------
Decrease in net assets resulting from dividends and distributions
to shareholders............................................................... (1,686,660) (1,127,106)
----------- -----------
Capital Share Transactions:
Proceeds from sales of shares:
Premium Class................................................................... -- 60
Service Class................................................................... 121,313,703 66,759,082
----------- -----------
121,313,703 66,759,142
----------- -----------
Net asset value of shares issued to shareholders
in reinvestment of dividends and distributions:
Premium Class................................................................... 607 564
Service Class................................................................... 1,686,053 1,126,542
----------- -----------
1,686,660 1,127,106
----------- -----------
Net asset value of shares redeemed:
Premium Class................................................................... (62) --
Service Class................................................................... (117,669,088) (38,952,607)
----------- -----------
(117,669,150) (38,952,607)
----------- -----------
Net increase in net assets from capital share transactions...................... 5,331,213
28,933,641
----------- -----------
Total increase (decrease) in net assets............................................. 5,327,113
28,930,707
Net assets:
Beginning of period............................................................. 28,955,707 25,000
----------- -----------
End of period .................................................................. $34,282,820 $28,955,707
=========== ===========
Undistributed/(excess distributions
of) net investment income .................................................... -- --
- ------------------
*Commencement of operations.
</TABLE>
See accompanying notes to financial statements
16
<PAGE>
<TABLE>
<CAPTION>
IBJ FUNDS TRUST
Statement of Changes in Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Bond Fund Core Equity Fund
------------------------------------- ---------------------------------------
For the For the Period For the For the Period
Year Ended February 1, 1995* to Year Ended
February 1, 1995* to
November 30, 1996 November 30, 1995 November 30, 1996
November 30, 1995
----------------- ----------------- ----------------- -----------------
Operations:
<S> <C> <C> <C> <C>
Net investment income....................... $1,424,794 $1,088,323 $ 831,732
$ 839,554
Net realized gain/(loss) on investments..... 30,875 954,547 9,863,103
3,055,303
Net change in unrealized appreciation/
(depreciation) of investments............. (312,253) 722,105 9,092,966
16,337,463
---------- ---------- ---------- ----------
Net increase in net assets resulting from
operations................................. 1,143,416 2,764,975 19,787,801
20,232,320
---------- ---------- ---------- ----------
Dividends to shareholders from net
investment income:
Premium Class............................... (759) (623) (247) --
Service Class............................... (1,424,035) (1,087,700) (1,284,919)
--
---------- ---------- ---------- ----------
(1,424,794) (1,088,323) (1,285,166) --
---------- ---------- ---------- ----------
Distributions to shareholders from
realized gain on investments:
Premium Class............................... (495) -- (569) --
Service Class............................... (954,557) -- (3,054,736) --
---------- ---------- ---------- ----------
(955,052) -- (3,055,305) --
---------- ---------- ---------- ----------
Decrease in net assets resulting from
dividends and distributions
to shareholders............................. (2,379,846) (1,088,323) (4,340,471)
--
---------- ---------- ---------- ----------
Capital Share Transactions:
Proceeds from sales of shares:
Premium Class............................... -- 60 -- 60
Service Class............................... 11,985,540 29,612,433 30,155,508
89,149,468
---------- ---------- ---------- ----------
11,985,540 29,612,493 30,155,508
89,149,528
---------- ---------- ---------- ----------
Net asset value of shares issued to
shareholders in reinvestment of dividends
and distributions:
Premium Class............................... 1,254 623 816 --
Service Class............................... 2,378,592 1,087,700 4,339,655
- --
---------- ---------- ---------- ----------
2,379,846 1,088,323 4,340,471 --
---------- ---------- ---------- ----------
Net asset value of shares redeemed:
Premium Class............................... (64) -- (92) --
Service Class............................... (12,209,202) (5,539,621) (42,895,923)
(22,794,110)
---------- ---------- ---------- ----------
(12,209,266) (5,539,621) (42,896,015)
(22,794,110)
---------- ---------- ---------- ----------
Net increase in net assets from capital
share transactions....................... 2,156,120 25,161,195 (8,400,036)
66,355,418
---------- ---------- ---------- ----------
Total increase (decrease) in net assets......... 919,690 26,837,847 7,047,294
86,587,738
Net assets:
Beginning of period......................... 26,862,847 25,000 86,612,738
25,000
---------- ---------- ---------- ----------
End of period .............................. $27,782,537 $26,862,847 $93,660,032
$86,612,738
========== ========== ==========
==========
Undistributed/(excess distributions
of) net investment income ................ -- -- $386,120
$839,554
- ------------------
*Commencement of operations.
</TABLE>
See accompanying notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
IBJ FUNDS TRUST
Statement of Changes in Net Assets
- ----------------------------------------------------------------------------------------
Growth and Income Fund
-----------------------------------------
For the For the Period
Year Ended February 1, 1995* to
November 30, 1996 November 30, 1995
----------------- -----------------
<S> <C> <C>
Operations:
Net investment income....................... $1,696,351 $1,089,503
Net realized gain/(loss) on investments..... 3,067,207 1,173,268
Net change in unrealized appreciation/
(depreciation) of investments............. 3,016,124 5,729,515
----------- -----------
Net increase in net assets resulting from
operations.................................... 7,779,682 7,992,286
----------- -----------
Dividends to shareholders from net
investment income:
Premium Class............................... (475) (348)
Service Class............................... (1,692,277) (1,102,021)
----------- -----------
(1,692,752) (1.102,369)
----------- -----------
Distributions to shareholders from
realized gain on investments:
Premium Class............................... (352) --
Service Class............................... (1,173,072) --
----------- -----------
(1,173,424) --
----------- -----------
Decrease in net assets resulting from
dividends and distributions
to shareholders........................... (2,866,176) (1,102,369)
----------- -----------
Capital Share Transactions:
Proceeds from sales of shares:
Premium Class............................... -- 60
Service Class............................... 17,930,945 48,843,232
----------- -----------
17,930,945 48,843,292
----------- -----------
Net asset value of shares issued to
shareholders in reinvestment of dividends
and distributions:
Premium Class............................... 827 348
Service Class............................... 2,865,349 1,102,021
----------- -----------
2,866,176 1,102,369
----------- -----------
Net asset value of shares redeemed:
Premium Class............................... (79) --
Service Class............................... (12,059,267) (6,262,245)
----------- -----------
(12,059,346) (6,262,245)
----------- -----------
Net increase in net assets from capital
share transactions....................... 8,737,775 43,683,416
----------- -----------
Total increase (decrease) in net assets......... 13,651,281 50,573,333
Net assets:
Beginning of period......................... 50,598,333 25,000
----------- -----------
End of period .............................. $64,249,614 $50,598,333
=========== ===========
Undistributed/(excess distributions
of) net investment income ................ $(9,267) $(12,866)
- ------------------
*Commencement of operations.
</TABLE>
See accompanying notes to financial statements
17
<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.
18
<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 year ended November 30, 1996, the Adviser earned
fees of $106,107, $132,005, $533,300 and $341,198 for the Reserve Money Market
Fund, Bond Fund, Core Equity Fund and Growth and Income Fund, respectively. The
Adviser has voluntarily waived fees of $106,107, $26,400, $88,874 and $56,745
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
$52,601, $39,602, $133,328 and $85,315 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 year ended November 30, 1996, Furman Selz earned Transfer Agency fees of
$9,696, $5,881, $8,396 and $5,563 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 year ended November 30,
1996, Furman Selz earned Fund Accounting fees and expenses of $30,668, $41,721,
$33,836 and $43,504 for the Reserve Money Market Fund, Bond Fund, Core Equity
Fund and Growth and Income Fund, respectively.
Certain of the states in which the shares of the Funds are qualified for
sale impose limitations on the expenses of funds. If, in any fiscal year, the
total expenses of the Fund (excluding taxes, interest, distribution expenses,
brokerage commissions, certain portfolio transaction expenses, other expenses
which are capitalized in accordance with generally accepted accounting
principles and extraordinary expenses, but including advisory and administrative
services fees) exceed the expense limitation applicable to the Funds imposed by
the securities regulation of any state, the Adviser will pay or reimburse the
Funds to the extent of advisory fees earned. No such amounts were required to be
reimbursed for the current period.
19
<PAGE>
IBJ FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
The Trust has adopted a distribution and service plan (the "Plan") pursuant
to Rule 12b-1 under the Investment Company Act of 1940 for each Fund of the
Trust. There are no fees or expenses chargeable to the Trust under the Plan and
the Trust's Board of Trustees has adopted the Plan in case certain expenses of
the Trust might be considered to constitute indirect payments by the Trust of
distribution expenses. IBJ Funds Distributor, Inc. (the "Distributor"), an
affiliate of Furman Selz serves as the exclusive Distributor of the shares of
each Fund pursuant to its Distribution Agreement with the Trust.
NOTE 4 -- SECURITIES TRANSACTIONS.
(a) PURCHASE AND SALE TRANSACTIONS. The aggregate amount of purchases and
sales of investment securities, other than short-term securities, for the year
ended November 30, 1996 were as follows:
<TABLE>
<CAPTION>
COMMON STOCKS & BONDS U.S. GOVERNMENT
OBLIGATIONS
------------------------- ---------------------------
PURCHASES SALES PURCHASES SALES
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Bond Fund ................................ $ 2,636,105 $ 4,924,341 $37,207,797 $35,621,520
Core Equity Fund ......................... 22,435,463 34,469,103 -- --
Growth and Income Fund ................... 15,152,554 11,342,434 21,618,400 22,519,024
</TABLE>
(b) FEDERAL INCOME TAX BASIS. Gross unrealized appreciation and
depreciation on investment securities at November 30, 1996, based on cost for
Federal income tax purposes, is as follows:
<TABLE>
<CAPTION>
NET
GROSS GROSS UNREALIZED
UNREALIZED UNREALIZED APPRECIATION/
APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ --------------
<S> <C> <C> <C>
Bond Fund................................. $ 451,665 $ (41,813) $ 409,852
Core Equity Fund.......................... 25,750,828 (320,399) 25,430,429
Growth and Income Fund.................... 8,893,602 (147,963) 8,745,639
</TABLE>
Note 5 -- FEDERAL INCOME TAXES.
For Federal income tax purposes, the Funds indicated below have capital
loss carryforwards at November 30, 1996, which are available to offset future
capital gains, if any:
CAPITAL LOSS
CARRYFORWARDS EXPIRES
------------- --------
Reserve Money Market Fund.................... $ 2,781 2003
4,253 2004
Bond Fund.................................... 102,125 2004
20
<PAGE>
IBJ FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
NOTE 6 -- 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 year ended November 30, 1996
-------------------------------------------------------------------
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........................... 13,124 1,315 1,256
1,287
----------- --------- --------- ---------
Shares issued in reinvestment of dividends from net
investment income and capital 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 period........................... 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 capital 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
=========== ========= =========
=========
For the period February 1, 1995* to November 30,
1995
--------------------------------------------------------------------
Reserve Growth and
Money Market Bond Core Equity
Income
Fund Fund Fund Fund
------------ ---------- ---------- ----------
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 -- 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 --
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>
21
<PAGE>
BJ FUNDS Trust
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
NOTE 7 -- SUBSEQUENT EVENTS. Furman Selz has consummated an agreement
with BISYS Group, Inc. ("BISYS") whereby services currently provided to the
Trust by Furman Selz will be provided to the Trust by BISYS and certain of its
affiliates under new Administrative Services, Transfer Agency and Fund
Accounting Agreements between the Trust and BISYS.
22
<PAGE>
<TABLE>
<CAPTION>
IBJ FUNDS Trust
Financial Highlights (For a Share Outstanding Throughout the Period+)
- ---------------------------------------------------------------------------------------------------------
Reserve Money Market Fund
----------------------------------------------
For the period
For the year ended February 1, 1995* to
November 30, 1996 November 30, 1995
------------------- ---------------------
Premium Service Premium Service
Class Class Class Class
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................. $1.00 $1.00 $1.00 $ 1.00
----- ------ ----- ------
Income from Investment Operations:
Net investment income............................ 0.05 0.05 0.04 0.04
Net realized and unrealized gain/(loss) on
investments.................................... -- -- -- --
----- ------ ----- ------
Total from Investment Operations................. 0.05 0.05 0.04 0.04
----- ------ ----- ------
Less Distributions:
Dividends from net investment income............. (0.05) (0.05) (0.04) (0.04)
Distributions from net realized capital gains.... -- -- -- --
----- ------ ----- ------
Total Distributions.............................. (0.05) (0.05) (0.04) (0.04)
----- ------ ----- ------
Net Asset Value, End of Period....................... $1.00 $1.00 $1.00 $ 1.00
===== ====== ===== ======
Total Return......................................... 4.88% 4.88% 4.55% 4.55%
Net Assets, End of Period (in thousands)............. $14 $34,269 $13 $28,943
Ratios to average net assets of:
Net investment income............................ 4.82% 4.82% 5.40%** 5.40%**
Expenses before waivers/reimbursements........... 0.95% 0.95% 0.92%**
0.92%**
Expenses net of waivers/reimbursements........... 0.65% 0.65% 0.64%**
0.64%**
Portfolio Turnover Rate.............................. N/A N/A N/A N/A
</TABLE>
<TABLE>
<CAPTION>
Bond Fund
----------------------------------------------
For the period
For the year ended February 1, 1995* to
November 30, 1996 November 30, 1995
----------------- ---------------------
Premium Service Premium Service
Class Class Class Class
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................. $10.72 $10.72 $10.00 $ 10.00
----- ------ ----- ------
Income from Investment Operations:
Net investment income............................ 0.54 0.54 0.48 0.48
Net realized and unrealized gain/(loss) on
investments.................................... (0.12) (0.12) 0.72 0.72
------ ------ ------ -------
Total from Investment Operations................. 0.42 0.42 1.20 1.20
------ ------ ------ -------
Less Distributions:
Dividends from net investment income............. (0.54) (0.54) (0.48) (0.48)
Distributions from net realized capital gains.... (0.38) (0.38) -- --
------ ------ ------ -------
Total Distributions.............................. (0.92) (0.92) (0.48) (0.48)
------ ------ ------ -------
Net Asset Value, End of Period....................... $10.22 $ 10.22 $10.72 $ 10.72
====== ====== ====== =======
Total Return......................................... 4.25% 4.25% 12.28% 12.28%
Net Assets, End of Period (in thousands)............. $15 $27,768 $14 $26,849
Ratios to average net assets of:
Net investment income............................ 5.07% 5.07% 5.59%** 5.59%**
Expenses before waivers/reimbursements........... 1.22% 1.22% 1.22%**
1.22%**
Expenses net of waivers/reimbursements........... 1.12% 1.12% 1.12%**
1.12%**
Portfolio Turnover Rate.............................. 160% 160% 297% 297%
------------------
* Commencement of operations.
** Annualized.
+ Per Share amounts are based on the average number of shares outstanding.
See accompanying notes to financial statements
</TABLE>
23
<PAGE>
IBJ FUNDS Trust
Financial Highlights (For a Share Outstanding Throughout the Period+)
<TABLE>
<CAPTION>
CORE EQUITY FUND
----------------------------------------------
FOR THE PERIOD
FOR THE YEAR ENDED FEBRUARY 1, 1995* TO
NOVEMBER 30, 1996 NOVEMBER 30, 1995
------------------- --------------------
PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................. $12.97 $ 12.97 $10.00 $10.00
----- ------ ----- ------
Income from Investment Operations:
Net investment income............................ 0.14 0.14 0.13 0.13
Net realized and unrealized gain/(loss) on
investments.................................... 2.90 2.90 2.84 2.84
----- ------ ----- ------
Total from Investment Operations................. 3.04 3.04 2.97 2.97
----- ------ ----- ------
Less Distributions:
Dividends from net investment income............. (0.19) (0.19) -- --
Distributions from net realized capital gains.... (0.45) (0.45) -- --
----- ------ ----- ------
Total Distributions.............................. (0.64) (0.64) -- --
----- ------ ----- ------
Net Asset Value, End of Period....................... $15.37 $ 15.37 $12.97 $12.97
===== ====== ===== ======
Total Return......................................... 24.61% 24.61% 29.70% 29.70%
Net Assets, End of Period (in thousands)............. $20 $93,640 $16 $86,596
Ratios to average net assets of:
Net investment income............................ 0.93% 0.93% 1.30%** 1.29%**
Expenses before waivers/reimbursements........... 0.99% 0.99% 1.09%**
1.09%**
Expenses net of waivers/reimbursements........... 0.89% 0.89% 0.89%**
0.89%**
Portfolio Turnover Rate.............................. 27% 27% 37% 37%
Average Commission Rate(a)........................... $0.0776 $0.0776 -- --
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND
-------------------------------------------
FOR THE PERIOD
FOR THE YEAR ENDED FEBRUARY 1, 1995* TO
NOVEMBER 30, 1996 NOVEMBER 30, 1995
------------------ ------------------
PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period................. $11.78 $ 11.79 $10.00 $ 10.00
----- ------ ----- ------
Income from Investment Operations:
Net investment income............................ 0.34 0.34 0.27 0.31
Net realized and unrealized gain/(loss) on
investments.................................... 1.26 1.26 1.79 1.79
----- ------ ----- ------
Total from Investment Operations................. 1.60 1.60 2.06 2.10
----- ------ ----- ------
Less Distributions:
Dividends from net investment income............. (0.35) (0.36) (0.28) (0.31)
Distributions from net realized capital gains.... (0.27) (0.27) -- --
----- ------ ----- ------
Total Distributions.............................. (0.62) (0.63) (0.28) (0.31)
----- ------ ----- ------
Net Asset Value, End of Period....................... $12.76 $ 12.76 $11.78 $ 11.79
===== ====== ===== ======
Total Return......................................... 14.08% 14.08% 20.72% 20.82%
Net Assets, End of Period (in thousands)............. $17 $64,232 $15 $50,583
Ratios to average net assets of:
Net investment income............................ 2.98% 2.98% 3.04%** 3.04%**
Expenses before waivers/reimbursements........... 1.14%** 1.15%**
Expenses net of waivers/reimbursements........... 0.99% 0.99% 1.04%**
1.05%**
Portfolio Turnover Rate.............................. 77% 77% 78% 78%
Average Commission Rate(a)........................... $0.0789 $0.0789 -- --
</TABLE>
- ------------------
* Commencement of operations.
** Annualized.
+ Per Share amounts are based on the average number of shares outstanding.
(a) For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate per share for security trades on
which commissions are charged. This amount may vary from period to period
and fund to fund depending on the mix of trades executed in various markets
where trading practices and commission rate structures may differ.
See accompanying notes to financial statements
24
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To The Shareholders and Board of Trustees of IBJ Funds Trust:
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, 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) as of November 30, 1996, and the related statements of
operations for the year then ended and the related statements of changes in net
assets and the financial highlights for the year ended November 30, 1996 and 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 audits.
We conducted our audits 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, 1996 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 audits provide 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, 1996, the results of their operations for the year then ended and
the changes in their net assets and their financial highlights for the periods
referred to above, in conformity with generally accepted accounting principles.
Coopers & Lybrand L.L.P.
New York, New York
January 22, 1997
<PAGE>
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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
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OFFICERS
John J. Pileggi Gordon M. Forrester
President Vice President &
Treasurer
Joan V. Fiore
Secretary Sheryl Hirschfeld
Assistant Secretary
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IBJ FUNDS Trust
INVESTMENT ADVISER
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IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
ADMINISTRATOR AND SPONSOR
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Furman Selz LLC
230 Park Avenue
New York, New York 10169
DISTRIBUTOR
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IBJ Funds Distributor, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
CUSTODIAN
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IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
COUNSEL
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Baker & McKenzie
805 Third Avenue
New York, New York 10022
INDEPENDENT ACCOUNTANTS
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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.
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IBJ FUNDS Trust
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IBJ RESERVE MONEY MARKET FUND
IBJ BOND FUND
IBJ CORE EQUITY FUND
IBJ GROWTH AND INCOME FUND
ANNUAL REPORT
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NOVEMBER 30, 1996
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