<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, 1998.
ECONOMIC COMMENTARY
Economic activity in the first half of 1998 continues to show considerable
strength with real GDP growing in excess of 4.0%. The driving force behind the
economy remains consumer spending. Real incomes have been rising and confidence
is high, buoyed by strong employment and the "wealth effect" associated with
rising asset values in real estate and equities. Despite the very strong pace of
economic growth, most measures of inflation have remained in check, with
commodity prices even showing a deflationary trend. The major cloud on the
horizon is the global impact of the crisis in Asia. A widening trade deficit
reflecting the currency and economic weakness throughout Asia will be the
primary cause of slower growth in 1998. On balance the economy is in good health
as employment remains strong, inflation fears are minimal and most interest
rates have been declining. Even fiscal policy, a perennial area of weakness with
large deficits, has now turned favorable, with a budget surplus in excess of $50
billion being forecast for the current fiscal year. These developments have been
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 of 2.6% was in line with returns from 3 month Treasury
Bills. The seven-day effective yield as of May 31, 1998 was 5.4%. This return
will likely continue for approximately as long as the Federal Reserve maintains
its current monetary policy of stable short-term interest rates. Whereas the
very strong domestic economy would normally lead the Fed to raise interest
rates, the Asian slowdown and currency weakness have more than offset any
inflationary pressures, thus allowing the Fed to defer any increase until more
signs of aggregate inflation appear.
CORE FIXED INCOME
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
high rate of return from both current income and capital appreciation. For the
six months ended May 31, 1998 the total rate of return for the Fund was 3.6% as
compared to 3.8% for the Morningstar Intermediate-Term Bond Index. Since
interest rates declined modestly during the period, the Fund benefited slightly
from rising bond prices as well as current income derived from coupons.
CORE EQUITY FUND
The Fund is invested in a broadly diversified portfolio of medium and larger
capitalization U.S. companies. For the past six-month period the total rate of
return was 10.9%, as compared to 12.9% for the Morningstar Large Cap Blend
Index. The stock market performance was dominated by the performance of large
capitalization stocks so that portfolios diversified with medium and small
capitalization issues tended to underperform the broad averages. The stock
market has been in a very strong positive trend for several years. While the
economic fundamentals remain generally favorable for U.S. companies, it is
unlikely that substantially above average returns will persist and investors
should be prepared for periodic corrections and moderation in future returns.
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.
During the past six-month period, the Fund returned 8.0% as compared to 8.3% for
the Morningstar Domestic-Hybrid Fund Index. The Fund maintained a somewhat
conservative stance with regard to asset mix compared to its peer group with
stocks averaging about 50% of the portfolio.
While forecasting the precise direction of capital market movements in the
future is difficult at best, investors can follow some basic guidelines to help
with retirement planning. It is generally best to maintain a long-term
perspective rather than try to catch the short-term cyclical swings inherent in
the markets. This strategy argues for maintaining significant exposure to
equities, despite the recent above average returns, since stocks have
outperformed other asset classes over a long period of time.
Sincerely,
/s/ Charles Porten
Charles Porten
Chief Investment Officer
The views expressed in this report reflect those of the portfolio managers only
through the end of the period of the report as stated on the cover. The views
contained herein are subject to change at any time based on market and other
conditions.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
<PAGE>
IBJ FUNDS Trust
IBJ RESERVE MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS - MAY 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
COST
PAR VALUE (NOTE 2)
- --------- --------
COMMERCIAL PAPER (A) - 65.28%
$1,000,000 Abbott Laboratories
5.480%, 06/01/98 ............. $ 1,000,000
1,100,000 American Express
5.450%, 07/08/98 ............. 1,093,838
1,000,000 Amgen, Inc.
5.520%, 08/25/98 ............. 986,967
1,100,000 BAT Capital Corp.
5.600%, 06/22/98 ............. 1,096,406
1,000,000 Bell Atlantic Network
5.480%, 06/09/98 ............. 998,782
1,000,000 Coca-Cola Corp.
5.460%, 08/13/98 ............. 988,928
1,100,000 Deere & Co.
5.490%, 07/16/98 ............. 1,092,451
1,000,000 Fluor Corp.
5.520%, 07/07/98 ............. 994,480
1,000,000 Ford Motor Credit
5.480%, 06/12/98 ............. 998,326
1,100,000 General Electric Capital Corp.
5.510%, 06/04/98 ............. 1,099,494
1,000,000 IBM Credit Corp.
5.510%, 07/15/98 ............. 993,266
1,100,000 National Rural Utilities
5.470%, 07/21/98 ............. 1,091,643
1,000,000 Southern Co.
5.510%, 06/10/98 ............. 998,623
1,100,000 Texaco Inc.
5.490%, 06/12/98 ............. 1,098,155
1,000,000 Weyerhauser Real Estate
5.480%, 06/11/98 ............. 998,478
-----------
Total Commercial Paper $15,529,837
(Cost $15,529,837) -----------
CREDIT
RATINGS+
-------
U.S. GOVERNMENT AND
AGENCY OBLIGATIONS - 35.92%
FEDERAL HOME LOAN BANK - 10.02%
$2,400,000 5.390%, 07/15/98 ............. AAA/Aaa $ 2,384,189
-----------
FEDERAL HOME LOAN
Mortgage Corp. - 19.23%
1,500,000 5.410%, 06/11/98 ............. AAA/Aaa 1,497,746
1,100,000 5.490%, 07/02/98 ............. AAA/Aaa 1,094,899
2,000,000 5.390%, 08/04/98 ............. AAA/Aaa 1,980,836
-----------
4,573,481
-----------
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 6.67%
500,000 5.400%, 07/02/98 ............. AAA/Aaa 497,675
1,100,000 5.400%, 08/10/98 ............. AAA/Aaa 1,088,450
-----------
1,586,125
-----------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS ........... 8,543,795
(Cost $8,543,795) -----------
SHARES
------
SHORT-TERM INVESTMENTS - 2.28%
TempCash Provident Money Market
542,818 Investment Fund .............. 542,818
TOTAL SHORT-TERM INVESTMENTS . 542,818
(Cost $542,818) -----------
TOTAL INVESTMENTS - 103.48% .. 24,616,450
(Cost $24,616,450**) -----------
NET OTHER ASSETS
AND LIABILITIES - (3.48)% .... (828,934)
-----------
NET ASSETS - 100.00% ......... $23,787,516
===========
- ----------
(A) Represents discount yield at time of purchase.
+ See page 12 for Credit Ratings Summary
** Aggregate cost for Federal tax purposes is $24,616,450.
See accompanying notes to financial statements.
<PAGE>
IBJ FUNDS Trust
IBJ CORE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS - MAY 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------
CREDIT VALUE
PAR VALUE RATINGS+ (NOTE 2)
- --------- ------- --------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 49.48%
U.S. TREASURY NOTES - 22.75%
$ 900,000 6.750%, 04/30/00 ............. AAA/Aaa $ 919,296
1,750,000 6.625%, 04/30/02 ............. AAA/Aaa 1,811,513
1,000,000 6.875%, 05/15/06 ............. AAA/Aaa 1,076,920
2,000,000 7.000%, 07/15/06 ............. AAA/Aaa 2,172,400
1,250,000 6.500%, 10/15/06 ............. AAA/Aaa 1,318,287
1,000,000 6.250%, 02/15/07 ............. AAA/Aaa 1,040,690
-----------
8,339,106
-----------
U.S. TREASURY BONDS - 11.87%
1,250,000 7.250%, 08/15/22 ............. AAA/Aaa 1,465,838
1,350,000 6.875%, 08/15/25 ............. AAA/Aaa 1,529,051
1,250,000 6.500%, 11/15/26 ............. AAA/Aaa 1,356,400
-----------
4,351,289
-----------
FEDERAL FARM CREDIT BANK - 3.22%
650,000 6.320%, 09/09/02 ............. AAA/Aaa 663,533
500,000 6.430%, 07/23/07 ............. AAA/Aaa 517,755
-----------
1,181,288
-----------
FEDERAL HOME LOAN BANK - 1.24%
435,000 6.750%, 04/05/04 ............. AAA/Aaa 455,193
FEDERAL HOME LOAN
MORTGAGE CORPORATION - 1.72%
11,798 7.500%, 02/01/17 Pool # 285113 AAA/Aaa 12,222
615,000 7.055%, 06/07/01 ............. AAA/Aaa 616,574
-----------
628,796
-----------
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 6.07%
150,000 6.720%, 07/14/04 ............. AAA/Aaa 152,223
700,000 6.540%, 10/03/05 ............. AAA/Aaa 727,979
850,000 6.700%, 06/19/07 ............. AAA/Aaa 896,495
432,473 8.000%, 11/01/26 Pool # 358604 AAA/Aaa 448,958
-----------
2,225,655
-----------
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION - 2.61%
2,222 11.500%, 04/15/10 Pool # 39821 AAA/Aaa 2,524
52,801 13.000%, 06/15/14 Pool # 102627 AAA/Aaa 61,810
71,820 13.000%, 11/15/14 Pool # 115224 AAA/Aaa 84,074
24,207 13.000%, 12/15/14 Pool # 120883 AAA/Aaa 28,336
320,707 8.000%, 07/15/26 Pool # 423877 AAA/Aaa 333,432
325,670 8.000%, 12/15/26 Pool # 432232 AAA/Aaa 338,593
105,312 8.000%, 01/15/27 Pool # 445081 AAA/Aaa 109,491
-----------
958,260
-----------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS ........... 18,139,587
(Cost $17,638,354) -----------
CORPORATE OBLIGATIONS - 49.62%
AUTOMOBILES - 2.54%
335,000 Ford Capital BV 9.875%, 05/15/02 A/A1 378,550
400,000 General Motors Acceptance Corp.,
Notes
7.000%, 03/01/00 ............. A/A2 406,500
131,000 General Motors Acceptance Corp.
9.000%, 10/15/02 ............. A/A2 144,755
-----------
929,805
-----------
BANKING - 3.67%
200,000 BankAmerica Corp., MTN
7.125%, 05/12/05 ... ......... A+/Aa3 209,000
250,000 Bankers Trust Corp. NY
9.500%, 06/14/00 ............. A-/A3 265,624
175,000 El Paso Natural Gas
7.500%, 11/15/26 ............. BBB/Baa2 188,781
315,000 Firstar Corp.
7.150%, 09/01/00 ............. BBB+/A3 315,788
350,000 Swiss Bank Corp. NY
7.000%, 10/15/15 ............. AA/Aa1 364,875
-----------
1,344,068
-----------
CHEMICALS - 0.48%
175,000 Eastman Chemical, Notes
6.375%, 01/15/04 ............. BBB+/A3 175,656
DURABLE GOODS - 0.76%
250,000 Whirlpool Corp., Debs.
9.000%, 03/01/03 ............. A-/Baa1 277,500
FINANCIAL SERVICES - 6.06%
350,000 Associates Corp., N.A. Sr. Notes
7.500%, 04/15/02 ............. AA-/Aa3 365,750
385,000 Commercial Credit Co., Notes
6.875%, 05/01/02 ............. A+/A1 395,588
319,000 Dean Witter Discovery & Co.,
Notes
6.875%, 03/01/03 ............. A+/A1 327,373
100,000 Discover Credit, MTN
8.540%, 12/11/01 ............. A-/A2 107,150
335,000 Lehman Brothers, Inc., Sr.
Sub. Notes 6.625%, 02/15/08 .. A/Baa1 337,513
270,000 Lehman Brothers Holdings, Notes
8.500%, 05/01/07 ............. A/Baa1 307,800
370,000 Midland Amer Cap., Debs.
12.750%, 11/15/03 ............ A/Aa3 380,638
-----------
2,221,812
-----------
FOOD - 2.07%
350,000 Nabisco, Inc. 6.850%, 06/15/05 BBB/Baa2 354,375
400,000 Tyson Foods, Inc., Notes
6.625%, 10/17/05 ............. A-/A3 406,500
-----------
760,875
-----------
INDUSTRIAL GOODS & SERVICES - 14.70%
135,000 ADT Operations, Sr. Sub. Notes
9.250%, 08/01/03 ............. BBB+/Baa1 142,256
636,000 American Standard, Sr. Notes
9.875%, 06/01/01 ............. B1 654,285
200,000 ARA Group 8.500%, 06/01/03 ... NR 208,500
210,000 Case Corp. 7.250%, 08/01/05 .. A-/Baa1 220,763
325,000 Champion International Corp.
7.700%, 12/15/99 ...BBB/Baa1 . 333,125
230,000 Hertz Corp. 7.000%, 05/01/02 . BBB+/A3 234,313
467,000 Lockheed Martin Corp.
7.250%, 05/15/06 ............. BBB+/A3 494,436
150,000 Panamerican Beverage, Inc.,
Sr. Notes 8.125%, 04/01/03 ... BBB-/Baa3 155,625
330,000 Pennzoil Co. 10.625%, 06/01/01 BBB/Baa3 344,438
275,000 Polaroid Corp. 8.000%, 03/15/99 BBB-/Baa3 278,437
125,000 Rohm & Haas Co., Debs.
9.375%, 11/15/19 ............. A/A1 135,469
250,000 Scotts Co. 9.875%, 08/01/04 .. BB+/Ba3 268,750
225,000 Tyco International, Ltd.
8.250%, 08/01/00 ............. A-/A3 231,469
463,000 USG Corp. Debs.
8.750%, 03/01/17 ............. BBB/Baa3 479,205
200,000 USG Corp. Debs.
9.250%, 09/15/01 ............. BBB/Baa3 217,000
500,000 Westinghouse Electric Corp.,
Notes
9.300%, 06/07/99 ............. BB/Ba1 513,125
250,000 Westinghouse Electric Corp.,
Notes
9.400%, 01/31/01 ............. BB/Ba1 263,750
200,000 Westpoint Stevens, Inc., Sr.
Notes
8.750%, 12/15/01 ............. BB/Ba3 215,750
-----------
5,390,696
-----------
HEALTH CARE SERVICES - 0.66%
250,000 Columbia/HCA Healthcare Corp.
7.000%, 07/01/07 ............. BBB/Ba2 240,938
OIL AND GAS - 2.32%
250,000 Amoco Canada Petroleum Co.,
Debs. 7.950%, 10/01/22 ....... AAA/Aa1 281,250
101,000 Columbia Gas System
6.800%, 11/28/05 ............. BBB+/Baa1 103,399
250,000 Gulf Canada Resources Ltd.,
Sub. Notes 9.625%, 07/01/05 BB-/Ba2 270,625
190,000 Union Oil of California
6.700%, 10/15/07 ............. BBB+/Baa1 194,750
-----------
850,024
-----------
STEEL - 0.72%
250,000 AK Steel Corp.
10.750%, 04/01/04 ............ BB-/Ba2 266,250
TELECOMMUNICATIONS - 0.94%
150,000 Bellsouth Telecommunications,
Inc.
6.500%, 02/01/00 ............. AAA/Aaa 151,500
190,000 GTE Southwest, Inc.
6.540%, 12/01/05 ............. AA-/A2 193,800
-----------
345,300
-----------
TRANSPORTATION - 3.82%
431,000 Canadian National Railway, Notes
7.000%, 03/15/04 ............. BBB/Baa2 442,852
140,000 Canadian Pacific, Notes
6.875%, 04/15/03 ............. BBB+/Baa1 143,150
300,000 CSX Corp.
7.000%, 09/15/02 ............. BBB/Baa2 308,250
350,000 Conrail, Inc., Notes
6.860%, 12/31/07 ............. A/A1 361,225
140,000 Union Pacific Corp.
7.375%, 05/15/01 ............. BBB-/Baa3 144,550
-----------
1,400,027
-----------
UTILITIES - 10.88%
325,000 California Energy Co., Inc.,
Notes
10.250%, 01/15/04 ............ BB+/Ba1 350,594
350,000 Central Power & Light Co., Notes
6.875%, 02/01/03 ............. A/A3 360,063
295,000 Connecticut Light &
Power Co., Notes
7.250%, 07/01/99 ............. BB/Ba3 295,369
340,000 Duquesne Light Co.
8.375%, 05/15/24 ............. BBB+/Baa1 355,725
60,000 Duquesne Light Co.
8.375%, 05/15/24 ............. AAA/Aaa 62,700
250,000 Hydro-Quebec, MTN
8.590%, 08/22/01 ............. A+/A2 267,813
285,000 Hydro-Quebec, MTN
9.410%, 03/23/00 ............. A+/A2 301,030
300,000 Illinois Power Co., Notes
6.500%, 08/01/03 ............. BBB/Baa1 304,500
300,000 Jersey Central Power &
Light Co., Notes
7.125%, 10/01/04 ............. A-/Baa1 310,500
400,000 National Rural Utilities, Notes
6.500%, 09/15/02 ............. AA/Aa3 406,000
400,000 New Orleans
Public Service, Inc., Notes
8.000%, 03/01/06 ............. BBB/Baa2 414,500
400,000 Niagara Mohawk Power Corp.
6.500%, 08/01/98 ............. BBB-/Ba1 399,500
10,000 Niagara Mohawk Power Corp.
9.250%, 10/01/01 ............. BBB-/Ba1 10,800
100,000 Niagara Mohawk Power Corp.
9.500%, 06/01/00 ............. BBB-/Ba1 105,750
40,000 Rochester Gas & Electirc Corp.
9.375%, 04/01/21 ............. A-/A3 45,400
-----------
3,990,244
-----------
TOTAL CORPORATE OBLIGATIONS 18,193,195
(Cost $17,928,884) -----------
SHARES
------
SHORT-TERM INVESTMENTS - 0.74%
TempCash Provident Money Market
273,049 Investment Fund .............. 273,049
-----------
TOTAL SHORT-TERM INVESTMENTS 273,049
(Cost $273,048) -----------
TOTAL INVESTMENTS - 99.84% 36,605,831
(Cost $35,840,286**) -----------
NET OTHER ASSETS
AND LIABILITIES - 0.16% 59,380
-----------
NET ASSETS - 100.00% $36,665,211
===========
- --------------
MTN Medium Term Note
+ See page 12 for Credit Rating Summary
** Aggregate cost for Federal tax purposes is $35,840,286.
See accompanying notes to financial statements.
<PAGE>
IBJ FUNDS Trust
IBJ CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) - MAY 31, 1998
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 95.59%
AEROSPACE / DEFENSE - 4.48%
31,600 Allied Signal Corp. .................... $ 1,350,900
42,700 Boeing Co. ............................. 2,033,587
30,000 Raytheon Co., Class B .................. 1,640,625
------------
5,025,112
------------
AUTOMOBLIES - 0.85%
20,000 Echlin, Inc. ........................... 950,000
------------
BANKING - 6.33%
68,000 Charter One Financial, Inc. ............ 2,329,000
31,800 NationsBank Corp. ...................... 2,408,850
6,500 Wells Fargo & Co. ...................... 2,349,750
------------
7,087,600
------------
BEVERAGES - 2.53%
69,600 PepsiCo, Inc. .......................... 2,840,550
------------
CHEMICALS - 3.90%
19,000 Air Products & Chemicals, Inc .......... 1,653,000
49,000 Monsanto Co. ........................... 2,713,375
------------
4,366,375
------------
COMPUTERS - 0.76%
20,500 EMC Corp./ Mass.* ...................... 849,469
------------
DIVERSIFIED MANUFACTURING - 8.93%
42,500 AMETEK, Inc. ........................... 1,227,188
100,000 Coltec Industries, Inc.* ............... 2,231,250
24,200 Dexter Corp. ........................... 998,250
41,000 General Electric Co. ................... 3,418,375
86,300 International Game Technology .......... 2,130,530
------------
10,005,593
------------
ENTERTAINMENT - 1.74%
25,000 Time Warner, Inc. ...................... 1,945,313
------------
ENVIRONMENTAL - 0.74%
27,200 U.S. Filter Corp.* ..................... 827,900
------------
FINANCIAL SERVICES - 1.98%
16,400 Household International, Inc. .......... 2,219,125
------------
FOOD - 2.36%
45,000 Sara Lee Corp. ......................... 2,649,375
------------
FOOD SERVICE - 1.98%
95,000 Sysco Corp. ............................ 2,214,688
------------
HEALTH CARE - 1.53%
30,000 Baxter International, Inc. ............. 1,715,625
------------
HOUSEHOLD PRODUCTS - 2.33%
30,000 Colgate-Palmolive Co. .................. 2,610,000
------------
INSURANCE - 4.32%
20,250 American International Group, Inc. ..... 2,507,203
50,000 Conseco, Inc. .......................... 2,331,250
------------
4,838,453
------------
METALS - 1.24%
20,000 Aluminum Co. of America ................ 1,387,500
------------
MEDIA - 1.30%
59,000 The News Corp., ADR .................... 1,452,875
------------
OIL AND GAS - 8.88%
10,000 Atlantic Richfield Co. ................. 788,750
32,000 Exxon Corp. ............................ 2,256,000
30,000 Mobil Corp. ............................ 2,340,000
86,000 Newpark Resources, Inc.* ............... 1,564,125
40,400 Noble Affiliates, Inc. ................. 1,578,125
40,000 Unocal Corp. ........................... 1,425,000
------------
9,952,000
------------
PACKAGING AND CONTAINERS - 1.24%
26,000 Sealed Air Corp.* ...................... 1,391,000
------------
PAPER AND ALLIED PRODUCTS - 1.32%
30,000 Kimberly-Clark Corp. ................... 1,486,875
------------
PHARMACEUTICALS - 6.80%
41,000 Amgen, Inc.* ........................... 2,480,500
22,000 Pfizer, Inc. ........................... 2,305,875
34,400 R.P. Scherer Corp.* .................... 2,840,150
------------
7,626,525
------------
RETAIL - 6.97%
40,000 Costco Cos., Inc.* ..................... 2,315,000
60,000 Fred Meyer, Inc.* ...................... 2,580,000
68,000 Kroger Co.* ............................ 2,919,750
------------
7,814,750
------------
TECHNOLOGY - 8.77%
25,000 Hewlett Packard Co. .................... 1,553,125
27,700 Intel Corp. ............................ 1,978,818
18,872 Lucent Technologies, Inc. .............. 1,338,733
65,000 Molex, Inc. ............................ 1,811,875
31,000 SCI Systems, Inc. ...................... 1,057,875
55,000 Xilinx, Inc.* .......................... 2,091,719
------------
9,832,145
------------
TELECOMMUNICATIONS - 7.27%
86,199 360 Communications Co.* ................ 2,462,059
45,000 Cincinnati Bell, Inc. .................. 1,431,562
54,000 SBC Communications, Inc. ............... 2,099,250
30,000 Sprint Corp. ........................... 2,152,500
------------
8,145,371
------------
TOBACCO - 1.28%
38,600 Philip Morris Cos., Inc. ............... 1,442,675
------------
TRANSPORTATION - 1.68%
60,000 Norfolk Southern Corp. ................. 1,878,750
------------
UTILITIES - 4.08%
68,200 CINergy Corp. .......................... 2,203,713
41,100 Duke Power Co. ......................... 2,368,388
------------
4,572,101
------------
TOTAL COMMON STOCKS .................... 107,127,745
(Cost $78,494,909) ------------
SHORT-TERM INVESTMENTS - 3.57%
4,001,954 TempCash Provident Money
Market Investment Fund ................. 4,001,954
------------
TOTAL SHORT-TERM INVESTMENTS ........... 4,001,954
(Cost $4,001,954) ------------
TOTAL INVESTMENTS - 99.16% ............. 111,129,699
(Cost $82,496,863** ) ------------
NET OTHER ASSETS
AND LIABILITES - 0.84% ................. 946,577
------------
TOTAL NET ASSETS - 100.00% ............. $112,076,276
============
- --------------
* Non-income producing security.
** Aggregate cost for Federal tax purposes is $82,496,863.
ADR American Depository Receipt
See accompanying notes to financial statements.
<PAGE>
IBJ FUNDS Trust
IBJ BLENDED TOTAL RETURN FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) - MAY 31, 1998
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 45.65%
AEROSPACE / DEFENSE - 2.27%
9,100 Allied Signal, Inc. .................... $ 389,025
11,700 Boeing Co. ............................. 557,213
8,700 Raytheon Co., Class B .................. 475,781
------------
1,422,019
------------
AUTOMOBILES - 0.42%
5,600 Echlin, Inc. ........................... 266,000
------------
BANKING - 3.04%
19,600 Charter One Financial, Inc. ............ 671,300
9,200 NationsBank Corp. ...................... 696,900
1,500 Wells Fargo & Co. ...................... 542,250
------------
1,910,450
------------
BEVERAGES - 1.27%
19,500 PepsiCo, Inc. .......................... 795,844
CHEMICALS - 1.90%
5,000 Air Products & Chemicals, Inc. ......... 435,000
13,700 Monsanto Co. ........................... 758,638
------------
1,193,638
------------
COMPUTERS - 0.46%
7,000 EMC Corp./ Mass.* ...................... 290,063
------------
DIVERSIFIED MANUFACTURING - 4.38%
11,900 AMETEK, Inc. ........................... 343,613
29,000 Coltec Industries, Inc.* ............... 647,063
7,000 Dexter Corp. ........................... 288,750
11,800 General Electric Co. ................... 983,825
20,000 International Game Technology .......... 493,750
------------
2,757,001
------------
ENTERTAINMENT - 0.87%
7,000 Time Warner, Inc. ...................... 544,688
------------
ENVIRONMENTAL - 0.48%
10,000 U.S. Filter Corp. ...................... 304,375
------------
FOOD - 1.18%
12,600 Sara Lee Corp. ......................... 741,825
------------
FOOD SERVICE - 0.74%
20,000 Sysco Corp. ............................ 466,250
------------
HEALTH CARE - 1.09%
12,000 Baxter International, Inc. ............. 686,250
------------
HOUSEHOLD PRODUCTS - 0.83%
6,000 Colgate-Palmolive Co. .................. 522,000
------------
INSURANCE - 3.35%
6,000 American International Group, Inc. ..... 742,875
14,400 Conseco, Inc. .......................... 671,400
5,000 Progressive Corp. Ohio ........... 689,375
------------
2,103,650
------------
METALS - 0.62%
5,600 Aluminum Co. of America ................ 388,500
------------
MEDIA - 0.63%
16,000 The News Corp., ADR .................... 394,000
------------
OIL AND GAS - 4.07%
10,000 Exxon Corp. ............................ 705,000
7,000 Mobil Corp. ............................ 546,000
22,800 Newpark Resources, Inc.* ............... 414,675
10,000 Noble Affiliates, Inc. ................. 390,624
14,000 Unocal Corp. ........................... 498,750
------------
2,555,049
------------
PACKAGING AND CONTAINERS - 0.64%
7,500 Sealed Air Corp.* ...................... 401,250
------------
PHARMACEUTICALS - 3.43%
11,500 Amgen, Inc.* ........................... 695,750
6,400 Pfizer, Inc. ........................... 670,800
9,600 R.P. Scherer Corp.* .................... 792,600
------------
2,159,150
------------
RETAIL - 3.36%
10,700 Costco Cos., Inc.* ..................... 619,263
16,500 Fred Meyer, Inc.* ...................... 709,500
18,300 Kroger Co.* ............................ 785,756
------------
2,114,519
------------
TECHNOLOGY - 4.57%
7,100 Hewlett Packard Co. .................... 441,088
8,000 Intel Corp. ............................ 571,500
6,000 Lucent Technologies, Inc. .............. 425,625
20,000 Molex, Inc. ............................ 557,500
9,000 SCI Systems, Inc.* ..................... 307,125
15,000 Xilinx, Inc.* .......................... 570,468
------------
2,873,306
------------
TELECOMMUNICATIONS - 1.79%
25,000 360 Communications Co.* ................ 714,063
13,000 Cincinnati Bell, Inc. .................. 413,563
------------
1,127,626
------------
TOBACCO - 0.65%
11,000 Philip Morris Cos., Inc. ............... 411,125
------------
TRANSPORTATION - 0.86%
17,300 Norfolk Southern Corp. ................. 541,706
------------
UTILITIES - 2.75%
19,100 CINergy Corp. .......................... 617,169
15,000 CMS Energy Corp. ....................... 653,437
12,500 Peoples Energy Corp. ................... 460,938
------------
1,731,544
------------
Total Common Stocks .................... 28,701,828
(Cost $22,744,961) ------------
CONVERTIBLE PREFERRED STOCK - 0.76%
TRANSPORTATION - 0.76%
12,500 Laidlaw One, Inc. 5.75%, 12/31/00 ...... 478,124
------------
TOTAL CONVERTIBLE PREFERRED STOCK 478,124
(Cost $629,781) ------------
CREDIT
PAR VALUE RATINGS+
- --------- --------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 21.31%
U.S. TREASURY NOTES - 9.74%
$ 750,000 6.375%, 03/31/01 ............. AAA/Aaa 765,548
1,500,000 6.500%, 05/15/05 ............. AAA/Aaa 1,575,060
1,500,000 6.875%, 05/15/06 ............. AAA/Aaa 1,615,380
2,000,000 7.000%, 07/15/06 ............. AAA/Aaa 2,172,400
------------
6,128,388
------------
U.S. TREASURY BONDS - 9.95%
2,000,000 6.500%, 11/15/26 ............. AAA/Aaa 2,170,240
2,000,000 6.625%, 02/15/27 ............. AAA/Aaa 2,208,100
1,750,000 6.375%, 08/15/27 ............. AAA/Aaa 1,880,253
------------
6,258,593
------------
FEDERAL HOME LOAN
MORTGAGE CORPORATION - 0.81%
500,000 6.095%, 03/01/06 ............. AAA/Aaa 506,240
------------
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 0.67%
400,000 6.570%, 08/22/07, MTN ........ AAA/Aaa 417,935
500 6.500%, 08/25/04 ............. AAA/Aaa 506
------------
418,441
------------
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION - 0.14%
20,630 13.000%, 10/15/13, Pool # 102470 AAA/Aaa 24,148
53,818 13.000%, 03/15/12, Pool # 55056 AAA/Aaa 63,000
------------
87,148
------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS ........... 13,398,810
(Cost $12,963,832) ------------
CORPORATE OBLIGATIONS - 22.89%
AUTOMOBILES - 0.65%
400,000 General Motors Acceptance Corp.
7.000%, 03/01/00 ............. A/A2 406,500
------------
BANKING - 0.60%
350,000 JP Morgan Capital Trust II
7.950%, 02/01/27 ............. A+/Aaa3 380,187
------------
ENTERTAINMENT - 0.13%
80,000 Time Warner, Inc.
7.950%, 02/01/00 ............. BBB-/Baa3 82,300
------------
HEALTH SERVICES - 0.87%
500,000 Columbia/HCA Healthcare Corp.
9.000%, 12/15/14 ............. BBB/Ba2 544,375
------------
INDUSTRIAL GOODS AND SERVICES - 13.03%
600,000 American Standard
10.875%, 05/15/99 ............ BB-/Ba3 628,500
1,446,000 American Standard
9.875%, 06/01/01 ............. BB3 1,487,573
750,000 Coca-Cola Bottling (SW)
9.000%, 11/15/03 ............. B+/B1 787,500
300,000 JP Foodservice, Inc.
8.875%, 11/01/03 ............. B/B2 309,750
481,000 La Quinta Inns, Inc.
9.250%, 05/15/03 ............. BB+/Ba2 499,037
283,000 News Corp. Ltd.
11.000%, 10/01/02 ............ BB+/B1 298,211
750,000 Scotts Co.
9.875%, 08/01/04 ............. BB+/Ba3 806,250
250,000 Unisys Corp.
12.000%, 04/15/03 ............ BB-/Ba3 283,438
795,000 USG Corp., Debs.
8.750%, 03/01/17 ............. BBB/Baa3 822,825
750,000 Valassis Communications, Inc.
9.550%, 12/01/03 ............. BB+/Ba1 839,063
350,000 Valassis Inserts, Inc.
9.375%, 03/15/99 ............. BB-/Ba3 357,000
550,000 Westinghouse Electric Corp.
9.300%, 06/07/99 ............. BB/Ba1 564,438
470,000 Westpoint Stevens, Inc.
8.750%, 12/15/01 ............. BB/Ba3 507,013
------------
8,190,598
------------
METALS - 1.27%
750,000 AK Steel Corp.
10.750%, 04/01/04 ............ BB-/Ba2 798,750
------------
OIL AND GAS - 3.86%
350,000 Amoco Canada Petroleum Co.
7.950%, 10/01/22 ............. AAA/Aa1 393,750
500,000 Ferrellgas Partnership
9.375%, 06/15/06 ............. B+/B1 533,125
750,000 Imperial Oil Ltd.
8.750%, 10/15/19 ............. AA+/Aa2 800,625
641,000 Occidental Petroleum Corp.
11.125%, 06/01/19 ............ BBB/Baa2 703,497
------------
2,430,997
------------
RETAIL - 1.87%
250,000 K Mart Corp.
9.800%, 06/15/98 ............. B1 250,000
900,000 Kroger Co.
10.000%, 05/01/99 ............ BB+/Ba2 927,062
------------
1,177,062
------------
UTILITIES - 0.61%
385,000 Niagara Mohawk Power Corp.
6.500%, 08/01/98 ............. BBB-/Ba1 384,519
------------
TOTAL CORPORATE OBLIGATIONS 14,395,288
(Cost $14,242,593) ------------
COMMERCIAL PAPER (A) - 3.57%
DIVERSIFIED MANUFACTURING - 1.19%
750,000 Tenneco, Inc.
5.650%, 06/12/98 ............. BBB/Baa1 748,705
------------
TELECOMMUNICATIONS - 1.20%
750,000 Cincinnati Bell, Inc.
5.650%, 06/04/98 ............. A-/Baa1 749,647
------------
TRANSPORTATION - 1.18%
750,000 Norfolk Southern Corp.
5.690%, 07/13/98 ............. BBB+/Baa1 745,021
------------
TOTAL COMMERCIAL PAPER ....... 2,243,373
(Cost $2,243,373) ------------
SHARES
------
SHORT-TERM INVESTMENTS - 4.72%
2,968,032 TempCash Provident Money Market
Investment Fund .............. 2,968,032
------------
TOTAL SHORT-TERM INVESTMENTS . 2,968,032
(Cost $2,968,032) ------------
TOTAL INVESTMENTS - 98.90% 62,185,455
(Cost $55,792,572**) ------------
NET OTHER ASSETS
AND LIABILITES - 1.10% ....... 692,067
------------
TOTAL NET ASSETS - 100.00% $ 62,877,522
============
- -------------
* Non-income producing security.
** Aggregate cost for Federal tax purposes is $55,792,572.
MTN Medium Term Note
(A) Represents discount yield at time of purchase.
See page 12 for Credit Ratings Summary
See accompanying notes to financial statements.
<PAGE>
IBJ FUNDS Trust
PORTFOLIO OF INVESTMENTS (UNAUDITED) (CONTINUED) - MAY 31, 1998
- -------------------------------------------------------------------------------
CREDIT RATINGS GIVEN BY STANDARD & POOR'S CORPORATION AND MOODY'S INVESTORS
SERVICES 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.
BB Ba Instrument judged to have speculative elements.
B B Instrument judged to lack characteristics of the
desirable investment.
NR NR Not Rated. In the opinion of the Investment Advisor,
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 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 and Agency Issues have an assumed rating of AAA/Aaa.
See accompanying notes to financial statements.
<PAGE>
<TABLE>
IBJ FUNDS Trust
STATEMENTS OF ASSETS AND LIABILITIES
MAY 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
RESERVE MONEY CORE FIXED CORE EQUITY BLENDED TOTAL
MARKET FUND INCOME FUND FUND RETURN FUND
------------- ---------- ----------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments at cost .......................... $ 24,616,450 $ 35,840,286 $ 82,496,863 $ 55,792,572
Net unrealized appreciation ................ -- 765,545 28,632,836 6,392,883
------------ ------------ ------------ ------------
Total investments at value ............... 24,616,450 36,605,831 111,129,699 62,185,455
Cash ....................................... 109,167 13,441 9,212 9,177
Receivables
Investments sold ........................... -- -- 982,069 261,596
Fund shares sold ........................... 125,281 4,037 2,821 6,915
Dividends and Interest ..................... 1,922 601,940 117,346 547,623
Deferred organization costs .................. 10,504 10,504 10,504 10,504
Other Assets ................................. 5,737 548 17,361 12,853
------------ ------------ ------------ ------------
Total Assets ............................... 24,869,061 37,236,301 112,269,012 63,034,123
------------ ------------ ------------ ------------
LIABILITIES:
Payables
Investments purchased ...................... 993,266 473,652 -- --
Fund shares repurchased .................... -- 260 25,236 12,173
Advisory fees payable ...................... -- 12,332 48,832 26,936
Administration fees payable ................ 7,160 8,765 18,790 17,221
Transfer agent fee ......................... 13,250 11,250 13,250 21,250
Trustees fees .............................. 749 1,148 3,584 2,019
Accrued expenses and other payables .......... 67,120 63,683 83,044 77,002
------------ ------------ ------------ ------------
Total Liabilities .......................... 1,081,545 571,090 192,736 156,601
------------ ------------ ------------ ------------
NET ASSETS ................................... $ 23,787,516 $ 36,665,211 $112,076,276 $ 62,877,522
============ ============ ============ ============
NET ASSETS CONSIST OF:
Paid-In capital ............................ $ 23,796,577 $ 35,808,798 $ 66,151,647 $ 52,289,749
Accumulated undistributed/(distribution in
excess of) net investment income ......... -- 115,885 (618,574) 53,895
Accumulated net realized gain/(loss)
on investments sold ...................... (9,061) (25,017) 17,910,367 4,140,995
Net unrealized appreciation of investments . -- 765,545 28,632,836 6,392,883
------------ ------------ ------------ ------------
TOTAL NET ASSETS ............................. $ 23,787,516 $ 36,665,211 $112,076,276 $ 62,877,522
============ ============ ============ ============
SHARES OF BENEFICIAL INTEREST
Premium Class:
Net assets ................................. $ 13,323 $ 13,808 $ 16,355 $ 15,030
============ ============ ============ ============
Shares of beneficial interest outstanding .. 13,326 1,334 982 1,220
============ ============ ============ ============
Net assets value offering and
redemption price per share
(Net Assets/Shares Outstanding) .......... $ 1.00 $ 10.35 $ 16.65 $ 12.32
============ ============ ============ ============
Service Class:
Net assets ................................. $ 23,774,193 $ 36,651,403 $112,059,921 $ 62,862,492
============ ============ ============ ============
Shares of beneficial interest outstanding .. 23,783,331 3,541,310 6,730,648 5,104,418
============ ============ ============ ============
Net assets value offering and
redemption price per share
(Net Assets/Shares Outstanding) .......... $ 1.00 $ 10.35 $ 16.65 $ 12.32
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS Trust
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1998 (UNAUDITED)
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
RESERVE MONEY CORE FIXED CORE EQUITY BLENDED TOTAL
MARKET FUND INCOME FUND FUND RETURN FUND
------------- ---------- ----------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ................................... $ 666,709 $ 1,133,792 $ 297,889 $ 1,059,973
----------- ----------- ----------- -----------
Dividend ................................... -- -- 438,042 171,012
----------- ----------- ----------- -----------
Total Income ............................. 666,709 1,133,792 735,931 1,230,985
----------- ----------- ----------- -----------
EXPENSES:
Advisory (Note 3) .......................... 41,522 87,260 332,255 188,764
Administration (Note 3) .................... 28,821 41,730 95,947 66,813
Transfer Agent (Note 3) .................... 6,971 3,919 18,697 13,845
Custody (Note 3) ........................... 850 585 26,209 8,540
Professional Fees .......................... 3,400 9,572 18,718 22,015
Trustees ................................... 1,361 2,300 15,334 4,675
Printing ................................... 2,741 6,498 3,390 4,639
Registration and filing fees ............... 4,728 3,695 22,024 7,456
Amortization of organization costs ......... 1,970 1,970 1,970 1,970
Miscellaneous .............................. 1,812 2,746 14,625 4,466
----------- ----------- ----------- -----------
Total expenses before waivers ............ 94,176 160,275 549,169 323,183
Less expenses waived (Note 3) ............ (41,522) (17,452) (55,375) (31,460)
----------- ----------- ----------- -----------
Net expenses ............................... 52,654 142,823 493,794 291,723
----------- ----------- ----------- -----------
NET INVESTMENT INCOME ........................ 614,055 990,969 242,137 939,262
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAINS (LOSS)
ON INVESTMENTS (NOTE 2):
Net realized gain/(loss) on investment
transactions ............................... (508) 132,553 11,806,870 3,563,358
Net change in unrealized appreciation
(depreciation) on investments .............. -- 79,233 (601,424) 294,320
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS ................................ (508) 211,786 11,205,446 3,857,678
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS ................................. $ 613,547 $ 1,202,755 $11,447,583 $ 4,796,940
=========== =========== =========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS Trust
STATEMENTS OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------
<CAPTION>
Reserve Money Market Fund
-------------------------
For the For the
Six Months Ended Year Ended
May 31, 1998 November 30,
(Unaudited) 1997
---------------- -----------
<S> <C> <C>
INVESTMENT ACTIVITIES:
Operations:
Net investment income ......................................... $ 614,055 $ 1,400,764
Net realized gain/(loss) on investment transactions ........... (508) (1,601)
Net change in unrealized appreciation (depreciation)
of investments .............................................. -- --
----------- -----------
Net increase in Net Assets resulting from operations ............ 613,547 1,399,163
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Premium Class ................................................. (332) (631)
Service Class ................................................. (613,723) (1,400,133)
----------- -----------
(614,055) (1,400,764)
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS IN EXCESS OF NET INVESTMENT INCOME
Premium Class ................................................. -- --
Service Class ................................................. -- --
----------- -----------
-- --
----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM REALIZED GAINS ON INVESTMENTS
Premium Class ................................................. -- --
Service Class ................................................. -- --
----------- -----------
-- --
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued ................................... 20,842,174 67,540,758
Dividends reinvested .......................................... 718,224 1,294,564
Net asset value of shares redeemed ............................ (23,569,651) (77,319,264)
----------- -----------
Change in net assets from capital share transactions ............ (2,009,253) (8,483,942)
----------- -----------
Change in net assets ............................................ (2,009,761) (8,485,543)
NET ASSETS:
Beginning of year ............................................. 25,797,277 34,282,820
----------- -----------
End of year (including line A) ................................ $23,787,516 $25,797,277
=========== ===========
(A) Undistributed (distribution in excess of) net investment income $ -- $ --
=========== ===========
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
CORE FIXED CORE EQUITY BLENDED TOTAL
INCOME FUND FUND RETURN FUND
-------------------------------- -------------------------------- ----------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 NOVEMBER 30, MAY 31, 1998 NOVEMBER 30, MAY 31, 1998 NOVEMBER 30,
(UNAUDITED) 1997 (UNAUDITED) 1997 (UNAUDITED) 1997
---------------- ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
$ 990,969 $ 1,591,376 $ 242,137 $ 728,298 $ 939,262 $ 1,854,818
132,553 177,278 11,806,870 17,291,184 3,563,358 9,499,637
79,233 276,460 (601,424) 3,803,831 294,320 (2,647,076)
------------ ------------ ------------ ------------ ------------ ------------
1,202,755 2,045,114 11,447,583 21,823,313 4,796,940 8,707,379
------------ ------------ ------------ ------------ ------------ ------------
(409) (740) -- (175) (184) (415)
(996,709) (1,590,636) -- (1,114,028) (936,522) (1,842,417)
------------ ------------ ------------ ------------ ------------ ------------
(997,118) (1,591,376) -- (1,114,203) (936,706) (1,842,832)
------------ ------------ ------------ ------------ ------------ ------------
-- -- -- (135) -- --
-- -- -- (860,576) -- --
------------ ------------ ------------ ------------ ------------ ------------
-- -- -- (860,711) -- --
------------ ------------ ------------ ------------ ------------ ------------
(102) -- (1,463) (2,169) (1,970) (818)
(243,082) -- (10,604,338) (10,445,960) (8,769,122) (3,160,241)
------------ ------------ ------------ ------------ ------------ ------------
(243,184) -- (10,605,801) (10,448,129) (8,771,092) (3,161,059)
------------ ------------ ------------ ------------ ------------ ------------
5,719,372 7,685,783 9,257,554 21,842,264 3,725,005 7,315,837
1,385,477 1,445,059 12,137,952 10,890,846 10,123,650 4,588,014
(2,043,751) (5,725,457) (15,561,452) (30,392,972) (7,941,317) (17,975,911)
------------ ------------ ------------ ------------ ------------ ------------
5,061,098 3,405,385 5,834,054 2,340,138 5,907,338 (6,072,060)
------------ ------------ ------------ ------------ ------------ ------------
5,023,551 3,859,123 6,675,836 11,740,408 996,480 (2,368,572)
31,641,660 27,782,537 105,400,440 93,660,032 61,881,042 64,249,614
------------ ------------ ------------ ------------ ------------ ------------
$ 36,665,211 $ 31,641,660 $112,076,276 $105,400,440 $ 62,877,522 $ 61,881,042
============ ============ ============ ============ ============ ============
$ 115,885 $ 122,034 $ (618,574) $ (860,711) $ 53,895 $ 51,339
============ ============ ============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS Trust
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
RESERVE MONEY MARKET FUND
--------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 31, 1998 NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
(UNAUDITED) 1997 1996 1995*
------------------- ------------------- ------------------- -------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------ ------ ------ ------ ------ ------ ------
Income from Investment
Operations:
Net investment income ....... 0.03 0.03 0.05 0.05 0.05 0.05 0.04 0.04
------ ------ ------ ------ ------ ------ ------ ------
Total income from
investment operations ..... 0.03 0.03 0.05 0.05 0.05 0.05 0.04 0.04
------ ------ ------ ------ ------ ------ ------ ------
Less Dividends from:
Net investment income ....... (0.03) (0.03) (0.05) (0.05) (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 $ 1.00 $ 1.00
====== ====== ====== ====== ====== ====== ====== ======
Total Return (a) .............. 2.61% 2.61% 4.96% 4.96% 4.88% 4.88% 4.55% 4.55%
Ratios/Supplemental Data:
Net Assets at the end of
year (in thousands) ......... $ 13 $23,774 $ 13 $25,784 $ 14 $34,269 $ 13 $28,943
Ratios to average net assets
Expenses before waivers+..... 0.79%** 0.79%** 0.99% 0.99% 0.95% 0.95% 0.92%** 0.92%**
Expenses net of waivers ..... 0.44%** 0.44%** 0.64% 0.64% 0.65% 0.65% 0.64%** 0.64%**
Net investment income
(net of waivers) .......... 5.18%** 5.18%** 4.84% 4.84% 4.82% 4.82% 5.40%** 5.40%**
- ----------
* Commencement of operations, February 1, 1995.
** Annualized.
+ During the period, certain fees were voluntarily reduced and/or reimbursed. If such voluntary fee reductions and/or
reimbursements had not occured, the ratios would have been indicated.
(a) Total return is based on the change in net asset value during the period and assumes reinvestment of all dividends
and distributions.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS Trust
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CORE FIXED INCOME FUND
--------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 31, 1998 NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
(UNAUDITED) 1997 1996 1995*
------------------- ------------------- ------------------- -------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ..... $10.35 $10.36 $10.22 $10.22 $10.72 $10.72 $10.00 $10.00
------ ------ ------ ------ ------ ------ ------ ------
Income from Investment
Operations:
Net investment income ....... 0.29 0.29 0.57 0.57 0.54 0.54 0.48 0.48
Net realized and unrealized
gains (losses) on
investment transactions ... 0.08 0.07 0.13 0.14 (0.12) (0.12) 0.72 0.72
------ ------ ------ ------ ------ ------ ------ ------
Total income from
investment operations ..... 0.37 0.36 0.70 0.71 0.42 0.42 1.20 1.20
------ ------ ------ ------ ------ ------ ------ ------
Less Dividends from:
Net investment income ....... (0.29) (0.29) (0.57) (0.57) (0.54) (0.54) 0.48) (0.48)
Realized gains .............. (0.08) (0.08) -- -- (0.38) (0.38) -- --
------ ------ ------ ------ ------ ------ ------ ------
Net change in net asset
value per share ........... -- (0.01) 0.13 0.14 (0.50) (0.50) (0.48) (0.48)
------ ------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, End of Period $10.35 $10.35 $10.35 $10.36 $10.22 $10.22 $10.72 $10.72
====== ====== ====== ====== ====== ====== ====== ======
Total Return (a) .............. 3.57% 3.57% 7.20% 7.20% 4.25% 4.25% 12.28% 12.28%
Ratios/Supplemental Data:
Net Assets at the end of
year (in thousands) ......... $ 14 $36,651 $ 13 $31,628 $ 15 $27,768 $ 14 $26,849
Ratios to average net assets
Expenses before waivers+ .... 0.92%** 0.92%** 1.17% 1.17% 1.22% 1.22% 1.22%** 1.22%**
Expenses net of waivers ..... 0.82%** 0.82%** 1.07% 1.07% 1.12% 1.12% 1.12%** 1.12%**
Net investment income ....... 5.71%** 5.71%** 5.61% 5.61% 5.07% 5.07% 5.59%** 5.59%**
Portfolio Turnover Rate (b) ... 108% 108% 210% 210% 160% 160% 297% 297%
- ----------
* Commencement of operations, February 1, 1995.
** Annualized.
+ During the period, certain fees were voluntarily reduced and/or reimbursed. If such voluntary fee reductions and/or
reimbursements had not occured, the ratios would have been indicated.
(a) Total return is based on the change in net asset value during the period and assumes reinvestment of all dividends
and distributions.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of
shares issued.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS Trust
FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CORE EQUITY FUND
--------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 31, 1998 NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
(UNAUDITED) 1997 1996 1995*
------------------- ------------------- ------------------- -------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ..... $16.68 $16.67 $15.37 $15.37 $12.97 $12.97 $10.00 $10.00
------ ------ ------ ------ ------ ------ ------ ------
Income from Investment
Operations:
Net investment income ....... 0.04 0.04 0.35 0.35 0.14 0.14 0.13 0.13
Net realized and unrealized
gains (losses) on
investment transactions ... 1.58 1.59 3.04 3.03 2.90 2.90 2.84 2.84
------ ------ ------ ------ ------ ------ ------ ------
Total income from
investment operations ..... 1.62 1.63 3.39 3.38 3.04 3.04 2.97 2.97
------ ------ ------ ------ ------ ------ ------ ------
Less Distributions from:
Net investment income ....... -- -- (0.31) (0.31) (0.19) (0.19) -- --
In excess of net
investment income ......... -- -- (0.24) (0.24) -- -- -- --
Realized gains .............. (1.65) (1.65) (1.53) (1.53) (0.45) (0.45) -- --
------ ------ ------ ------ ------ ------ ------ ------
Net change in net asset
value per share ........... (0.03) (0.02) 1.31 1.30 2.40 2.40 -- --
------ ------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, End of Period $16.65 $16.65 $16.68 $16.67 $15.37 $15.37 $12.97 $12.97
====== ====== ====== ====== ====== ====== ====== ======
Total Return (a) .............. 10.88% 10.88% 24.68% 24.68% 24.61% 24.61% 29.70% 29.70%
Ratios/Supplemental Data:
Net Assets at the end of
year (in thousands) ......... $ 16 $112,060 $ 15 $105,386 $ 20 $93,640 $ 16 $86,596
Ratios to average net assets
Expenses before waivers ..... 0.99%** 0.99%** 0.99% 0.99% 0.99% 0.99% 1.09%** 1.09%**
Expenses net of waivers ..... 0.89%** 0.89%** 0.89% 0.89% 0.89% 0.89% 0.89%** 0.89%**
Net investment income ....... 0.44%** 0.44%** 0.74% 0.74% 0.93% 0.93% 1.30%** 1.29%**
Portfolio Turnover Rate (b) ... 81% 81% 44% 44% 27% 27% 37% 37%
- ----------
* Commencement of operations, February 1, 1995.
** Annualized.
+ During the period, certain fees were voluntarily reduced and/or reimbursed. If such voluntary fee reductions and/or
reimbursements had not occured, the ratios would have been indicated.
(a) Total return is based on the change in net asset value during the period and assumes reinvestment of all dividends
and distributions.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of
shares issued.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS Trust
FINANCIAL HIGHLIGHTS
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
BLENDED TOTAL RETURN FUND
--------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 31, 1998 NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
(UNAUDITED) 1997 1996 1995*
------------------- ------------------- ------------------- -------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ..... $13.51 $13.51 $12.76 $12.76 $11.78 $11.79 $10.00 $10.00
------ ------ ------ ------ ------ ------ ------ ------
Income from Investment
Operations:
Net investment income ....... 0.18 0.18 0.50 0.50 0.34 0.34 0.27 0.31
Net realized and unrealized
gains (losses) on
investment transactions ... 0.66 0.66 1.27 1.27 1.26 1.26 1.79 1.79
------ ------ ------ ------ ------ ------ ------ ------
Total income from
investment operations ..... 0.84 0.84 1.77 1.77 1.60 1.60 2.06 2.10
------ ------ ------ ------ ------ ------ ------ ------
Less Dividends from:
Net investment income ....... (0.12) (0.12) (0.50) (0.50) (0.35) (0.36) (0.28) (0.31)
Realized gains .............. (1.91) (1.91) (0.52) (0.52) (0.27) (0.27) -- --
------ ------ ------ ------ ------ ------ ------ ------
Net change in net asset
value per share ........... (1.19) (1.19) 0.75 0.75 0.98 0.97 1.78 1.79
------ ------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, End of Period $12.32 $12.32 $13.51 $13.51 $12.76 $12.76 $11.78 $11.79
====== ====== ====== ====== ====== ====== ====== ======
Total Return (a) .............. 7.96% 7.96% 14.69% 14.69% 14.08% 14.08% 20.72% 20.82%
Ratios/Supplemental Data:
Net Assets at the end of
year (in thousands) ......... $ 15 $62,862 $ 14 $61,867 $ 17 $64,232 $ 15 $50,583
Ratios to average net assets
Expenses before waivers+ .... 1.03%** 1.03%** 1.07% 1.07% 1.09% 1.09% 1.14%** 1.15%**
Expenses net of waivers ..... 0.93%** 0.93%** 0.97% 0.97% 0.99% 0.99% 1.04%** 1.05%**
Net investment income ....... 2.99%** 2.99%** 2.91% 2.91% 2.98% 2.98% 3.04%** 3.04%**
Portfolio Turnover Rate (b) ... 88% 88% 138% 138% 77% 77% 78% 78%
- ----------
* Commencement of operations, February 1, 1995.
** Annualized.
+ During the period, certain fees were voluntarily reduced and/or reimbursed. If such voluntary fee reductions and/or
reimbursements had not occured, the ratios would have been indicated.
(a) Total return is based on the change in net asset value during the period and assumes reinvestment of all dividends
and distributions.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of
shares issued.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
IBJ FUNDS Trust
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
NOTE 1 -- ORGANIZATION. 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, IBJ Core
Equity Fund and IBJ Blended Total Return Fund (individually, a "Fund", and
collectively, the "Funds"), 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 Fund")
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 Fund") 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 ("Core Equity Fund") 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 ("Blended Total Return Fund") 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.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies followed by the Funds in the preparation of the
financial statements. The policies are in conformity with generally accepted
accounting principles. The preparation of financial statements requires
management to make estimates and assumptions that affect the reported amount and
disclosures. Actual results could differ from those estimates.
(a) Portfolio Valuations: 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 4:00 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 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 the impact of fluctuating interest
rates on the market value of the security.
(b) Securities Transactions and Related Income: The Funds record
security transactions on a trade date basis. Interest income, including
accretion of discount and amortization of premium, is accrued daily.
Dividend income is recognized on the ex-dividend date. Realized gains
and losses from security transactions are recorded on an identified cost
basis.
(c) Expenses: The Trust accounts separately for the assets, liabilities
and operations of each Fund. Direct expenses of a Fund are charged to
that Fund, while general Trust expenses are allocated proportionately
among each Fund within the Trust in relation to the net assets of each
Fund or on another reasonable basis. The investment income and expense
of a fund (other than class specific expenses) and realized and
unrealized gains and losses on investments of a fund are allocated to
each class of shares based upon their relative net asset value on the
date income is earned or expenses and realized and unrealized gains and
losses are incurred. 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 redemption proceeds will be
reduced by the amount of 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.
(d) Dividends and Distributions to Shareholders: The Money Market and
Fixed Income Funds' net investment income, if any, is declared daily and
paid monthly. The Core Equity Fund's net investment income, if any, is
declared and paid annually. The Blended Total Return Fund's net
investment income, if any, is declared and paid quarterly. Net realized
gains on portfolio securities, if any, are distributed at least annually
by each Fund. However, to the extent net realized gains can be offset by
capital loss carryover, such gains will not be distributed. Dividends
and distributions are recorded by the Funds on the ex-dividend date.The
amount of dividends from net investment income and distributions from
net realized gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting
principles. These "book/tax" differences are either considered temporary
or permanent in nature. To the extent these differences are permanent in
nature, such amounts are reclassified within the composition of net
assets based on their federal tax-basis treatment; temporary differences
do not require reclassification. Dividend and distributions which exceed
net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as dividends in
excess of net investment income or distributions in excess of net
realized gains. To the extent they exceed net investment income and net
realized capital gains for tax purposes, they are reported as
distributions of capital. Permanent book/tax differences are primarily
attributable to non-deductible organization cost.
(e) Federal Income Taxes: It is the Funds' policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute timely all of their net
investment company taxable income and net capital gains to shareholders.
Therefore, no federal income tax provision is required.
NOTE 3 - AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES. The Trust, on behalf
of each fund, has entered into investment advisory agreements (the "Advisory
Agreements") with IBJ Schroder Bank & Trust Company (the "Advisor"). Pursuant to
the terms of the Advisory Agreements, the advisor is entitled to a fee that is
calculated daily and paid monthly based on the average daily net assets of each
Fund, at the annual rate of: 0.35% for the Money Market Fund; 0.50% for the Core
Fixed Income Fund; 0.60% for the Core Equity Fund; and 0.60% for the Blended
Total Return Fund. For the six months ended May 31, 1998, the Advisor earned
fees of $41,522, $87,260, $332,255 and $188,764 for the Money Market Fund, the
Core Fixed Income Fund, the Core Equity Fund and the Blended Total Return Fund,
respectively. The Advisor has voluntarily waived fees of $41,522, $17,452,
$55,375 and $31,460 for the Money Market Fund, the Core Fixed Income Fund, the
Core Equity Fund and the Blended Total Return Fund, respectively. IBJS also
serves as custodian for all the Funds.
Effective March 1, 1998, the Trust and First Data Investor Services Group, Inc.
("Investor Services Group"), a wholly-owned subsidiary of First Data
Corporation, became parties to an administration agreement under which Investor
Services Group ("Administrator") provides services for a fee, computed daily and
paid monthly, at the annual rate of 0.15% of average daily net assets of each
Fund up to $500 million; 0.10% of average daily net assets of each Fund in
excess of $500 million up to $1 billion; 0.075% of average daily net assets of
each Fund in excess of $1 billion. The services are subject to the supervision
of the Trust's Board of Trustees and officers and include the day-to-day
administration of matters related to the corporate existence of the Trust,
maintenance of its records, preparation of reports, supervision of the Trust's
arrangements with its custodian and assistance in the preparation of the Trust's
registration statements under federal and state laws. Prior to March 1, 1998,
BISYS Fund Services, Inc. provided these services for a monthly fee which was
calculated on an annualized basis not to exceed 0.15% of the average daily net
assets of the Trust.
In addition, Investor Services Group also provides certain fund accounting and
related services. For these services, Investor Services Group is paid an annual
fee of $35,000 per Fund plus $5,000 for each additional class of shares. Prior
to March 1, 1998, BISYS Fund Services, Inc. provided these services to the
Funds.
The Investor Services Group also serves as transfer agent for the Funds pursuant
to a Transfer Agency and Services Agreement with the Trust effective March 1,
1998. The fee for this service is $20,000 per Fund plus reimbursement of certain
out-of-pocket expenses. Prior to March 1, 1998, BISYS Fund Services, Inc. served
as transfer agent for the fund.
First Data Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary of
Investor Services Group and an indirect wholly-owned subsidiary of First Data
Corporation, serves as the distributor of the Trust's shares.
The Trust has adopted a distribution and service plan pursuant to Rule 12b-1
under the Investment Company Act of 1940, as amended, for the Premium Class of
Shares of each Fund of the Trust. There were no fees or expenses charged to the
Trust under the Plan. The Distributor serves as the exclusive distributor of the
shares of each Fund pursuant to its Distribution Agreement with the Trust.
NOTE 4 -- SECURITIES TRANSACTIONS. For the six months ended May 31, 1998, the
cost of purchases and the proceeds from sales of the Funds' portfolio securities
(excluding short-term investments), amounted to the following:
PURCHASES SALES
--------- -----
Fixed Income Fund ........................ $ 42,261,962 $ 37,418,255
Core Equity Fund ......................... 76,699,137 84,120,743
Blended Total Return Fund ................ 55,480,071 59,355,579
The cost of securities is substantially the same for Federal income tax purposes
as it is for financial reporting purposes.
APPRECIATION (DEPRECIATION) NET
------------ -------------- ---
Fixed Income Fund ................. $ 806,945 $ (41,400) $ 765,545
Core Equity Fund .................. 30,340,366 (1,707,530) 28,632,836
Blended Total Return Fund ......... 7,172,519 (779,636) 6,392,883
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:
RESERVE MONEY MARKET FUND
-----------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 (UNAUDITED) NOVEMBER 30, 1997
------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- -----------
Premium Class
Issued ................ -- $ -- -- $ --
Reinvested ............ 390 390 576 576
Redeemed .............. -- -- (1,309) (1,309)
---------- ------------ ---------- -----------
Net increase/(decrease) 390 $ 390 (733) $ (733)
========== ============ ========== ===========
Service Class
Issued ................ 20,842,173 $ 20,842,174 67,540,758 $67,540,758
Reinvested ............ 717,834 717,834 1,293,988 1,293,988
Redeemed .............. (23,569,651) (23,569,651) (77,317,955) (77,317,955)
---------- ------------ ---------- -----------
Net increase/(decrease) (2,009,644) $ (2,009,643) (8,483,209) $(8,483,209)
========== ============ ========== ===========
CORE FIXED INCOME FUND
-----------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 (UNAUDITED) NOVEMBER 30, 1997
------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- -----------
Premium Class
Issued ................ -- $ -- 6 $ 65
Reinvested ............ 53 589 60 610
Redeemed .............. -- -- (217) (2,175)
---------- ------------ ---------- -----------
Net increase/(decrease) 53 $ 589 (151) $ (1,500)
Service Class
Issued ................ 551,213 $ 5,719,372 761,972 $ 7,685,718
Reinvested ............ 134,041 1,384,888 142,902 1,444,449
Redeemed .............. (197,519) (2,043,751) (567,761) (5,723,282)
---------- ------------ ---------- -----------
Net increase/(decrease) 487,735 $ 5,060,509 337,113 $ 3,406,865
CORE EQUITY FUND
-----------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 (UNAUDITED) NOVEMBER 30, 1997
------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- -----------
Premium Class
Issued ................ -- $ -- -- $ --
Reinvested ............ 111 1,674 163 2,268
Redeemed .............. -- -- (606) (8,910)
---------- ------------ ---------- -----------
Net increase/(decrease) 111 $ 1,674 (443) $ (6,642)
Service Class
Issued ................ 571,823 $ 9,257,554 1,466,620 $21,842,264
Reinvested ............ 802,224 12,136,278 775,133 10,888,578
Redeemed .............. (963,517) (15,561,452) (2,013,025) (30,384,062)
---------- ------------ ---------- -----------
Net increase/(decrease) 410,530 $ 5,832,380 228,728 $ 2,346,780
BLENDED TOTAL RETURN FUND
-----------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1998 (UNAUDITED) NOVEMBER 30, 1997
------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- -----------
Premium Class
Issued ................ -- $ -- -- $ --
Reinvested ............ 196 2,281 91 1,139
Redeemed .............. -- -- (417) (5,226)
---------- ------------ ---------- -----------
Net increase/(decrease) 196 $ 2,281 (326) $ (4,087)
Service Class
Issued ................ 293,442 $ 3,725,005 576,525 $ 7,315,837
Reinvested ............ 869,870 10,121,369 367,212 4,586,875
Redeemed .............. (637,253) (7,941,317) (1,398,339) (17,970,685)
---------- ------------ ---------- -----------
Net increase/(decrease) 526,059 $ 5,905,057 (454,602) $(6,067,973)
<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
Jylanne M. Dunne
President
William J. Greilich
Vice President
Steven L. Levy
Treasurer
Joseph Wencus
Assistant Treasurer
Brigid O. Bieber
Secretary
Therese Hogan
Assistant Secretary
Elizabeth A. Russell
Assistant Secretary
<PAGE>
IBJ FUNDS Trust ---------------
IBJ FUNDS Trust
Investment Advisor ---------------
- ------------------
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004 IBJ RESERVE MONEY MARKET FUND
IBJ CORE FIXED INCOME FUND
Administrator IBJ CORE EQUITY FUND
- ------------- IBJ BLENDED TOTAL RETURN FUND
First Data Investor Services Group, Inc.
4400 Computer Drive
Westborough, MA 01581
Distributor SEMI-ANNUAL REPORT
- -----------
First Data Distributors, Inc.
4400 Computer Drive
Westborough, MA 01581
-----------------------------------
Custodian MAY 31, 1998
- --------- -----------------------------------
IBJ Schroder Bank & Trust Company
One State Street Mutual fund shares are not deposits
New York, NY 10004 or obligations of, or guaranteed
by, any depository institution.
Counsel Shares are not insured by the FDIC,
- ------- Federal Reserve Board or any other
Paul, Weiss, Rifkind, Wharton & Garrison agency, and are subject to
1285 Sixth Avenue investment risks, including
New York, New York 10019 possible loss of principal amount
invested.
Independent Accountants
- -----------------------
Ernst & Young LLP
787 Seventh Avenue
New York, New York 10019
This report is for the information of
the shareholders of IBJ 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.
