<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 annual report of the IBJ Funds Trust covers the year ended November 30,
1997. During the year certain funds' names were modified to better reflect
their objectives. The Bond Fund became the Core Fixed Income Fund and the
Growth and Income Fund became the Blended Total Return Fund. The funds'
objectives did not change.
ECONOMIC COMMENTARY
1997 was a year of solid economic growth, low inflation, and declining
interest rates. Monetary policy was very stable despite a robust employment
environment that fanned inflation fears. Fiscal policy was also quite
favorable with the federal deficit having declined to its lowest level in 25
years and there are now expectations for a balanced budget if not surplus in
1998. The major cloud on the horizon comes from Asia where the surprising
collapse of currencies, capital markets, and selected financial institutions
has caused some concerns of decline in the growth of the global economy. In
all probability 1998 should be a more modest year for the U.S. economy as
well.
RESERVE MONEY MARKET FUND
The Fund holds investments in high quality money market instruments of
corporate, government and agency issuers. For the year, the total rate of
return was 4.96% and the seven-day effective yield was 5.01%/1/ as of year
end. This return tends to move with the general trend of Federal Reserve
Monetary policy which has been fairly steady for much of the past year. Unless
inflationary pressures increase the Fed is unlikely to raise interest rates in
the near-term. Should the economy weaken significantly from present levels it
is likely that interest rates would decline which will have a negative impact
on return of the Fund.
CORE FIXED INCOME FUND
The Fund holds a broad array of intermediate and longer term fixed income
securities of corporate, government, and agency issuers and seeks to provide a
high total rate of return from both current income and capital appreciation.
For the year, the total rate of return was 7.20% which compares to 6.58% for
the Morningstar Intermediate-Term Bond Index. The Fund benefitted from the
modest decline in intermediate term interest rates during the period allowing
for some gains from capital appreciation as well as interest income. During
the year selected investments were made in high yield corporate bonds that
added to the Fund's total rate of return.
- -------
/1/ 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.
1
<PAGE>
CORE EQUITY FUND
The Fund is invested in a broadly diversified portfolio of medium and large
capitalization U.S. companies. For the year the total rate of return was
24.68% which compares to 23.87% for the Morningstar Large Cap Blend Index. The
equity market has now rung up its third vintage year in a row as the favorable
economic environment generated strong corporate profits which stimulated
investor enthusiasm for stocks. In view of the very long term historical
returns from equities in the vicinity of 11% - 12%, it is doubtful that the
substantially above average returns we have seen over the past few years can
continue at the same pace.
BLENDED TOTAL RETURN FUND
The Fund is invested in a diversified mix of stocks, bonds, and money market
instruments to provide returns from a combination of capital growth and
current income. The Fund's total return for the year was 14.69% which compares
to 14.65% for the Morningstar Domestic Hybrid Fund Index. Throughout much of
the year the Fund maintained a somewhat conservative stance with regard to
equity exposure relative to its peer group with stocks averaging about 50% of
the portfolio. The Fund was able to remain competitive with its peer group
through judicious stock selection and selected higher yielding corporate bond
issues.
Sincerely,
/s/ Charles Porten
Charles Porten
Chief Investment Officer
This report, including the financial statements herein, is transmitted to the
shareholders of the IBJ Funds Trust for their information. This is not a
prospectus, circular or representation intended for the use in the purchase of
shares of the Trust or any securities mentioned in this report. This material
must be preceded by a prospectus.
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.
IBJ Funds Distributor, Inc. is the distributor of the Funds' shares.
1/98
2
<PAGE>
IBJ FUNDS TRUST (SERVICE CLASS)+
- -------------------------------------------------------------------------------
CORE FIXED INCOME FUND
A $10,000 investment in the IBJ Core Fixed Income Fund, made on the inception
date would have increased to $12,550 (as of November 30, 1997). The graph on
the right shows how this compares to our benchmark over the same period. Total
return for the Fund was 7.20%.*
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 administration fees. The performance of the IBJ Core Fixed 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.
- ---- IBJ Core Fixed Income Fund Service Class Shares
- ---- Lehman Government/Corporate Bond Index
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Label A B
- --------------------------------------------------------------------------------
Label IBJ Core Fixed Income Fund Lehman Government/Corporate
Service Class Shares Bond Index
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
1 2/1/95 10000 10000
- --------------------------------------------------------------------------------
2 3/95 10320 10301
- --------------------------------------------------------------------------------
3 6/95 10780 10969
- --------------------------------------------------------------------------------
4 9/95 10931 11179
- --------------------------------------------------------------------------------
5 12/95 11359 11700
- --------------------------------------------------------------------------------
6 3/96 11133 11426
- --------------------------------------------------------------------------------
7 6/96 11130 11480
- --------------------------------------------------------------------------------
8 9/96 11286 11682
- --------------------------------------------------------------------------------
9 12/96 11612 12039
- --------------------------------------------------------------------------------
10 3/97 11513 11935
- --------------------------------------------------------------------------------
11 6/97 11903 12370
- --------------------------------------------------------------------------------
12 9/97 12313 12803
- --------------------------------------------------------------------------------
13 11/97 12550 13077
- --------------------------------------------------------------------------------
</TABLE>
Average Annual Total Return
as of November 30, 1997
- ------------------------------------------------
Since Inception
1 Year (2/1/95)
- ------------------------------------------------
Premium Class 7.20% 8.35%
- ------------------------------------------------
Service Class 7.20% 8.35%
- ------------------------------------------------
IBJ CORE EQUITY FUND
A $10,000 investment in the IBJ Core Equity Fund, made on the inception date
would have increased to $20,151 (as of November 30, 1997). The graph on the
right shows how this compares to our benchmark over the same period. Total
return for the Fund was 24.68%.*
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 administration fees. The
performance of the IBJ Core 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.
- ---- IBJ Core Equity Fund
Service Class Shares
- ---- Standard & Poor's
500 Stock Index
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Label A B
- --------------------------------------------------------------------------------
Label IBJ Core Equity Fund Standard & Poor's
Service Class Shares 500 Stock Index
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
1 2/1/95 10000 10000
- --------------------------------------------------------------------------------
2 3/95 11730 10695
- --------------------------------------------------------------------------------
3 6/95 11390 11715
- --------------------------------------------------------------------------------
4 9/95 12400 12645
- --------------------------------------------------------------------------------
5 12/95 13135 13406
- --------------------------------------------------------------------------------
6 3/96 14276 14125
- --------------------------------------------------------------------------------
7 6/96 14496 14758
- --------------------------------------------------------------------------------
8 9/96 14900 15215
- --------------------------------------------------------------------------------
9 12/96 15846 16482
- --------------------------------------------------------------------------------
10 3/97 16173 16925
- --------------------------------------------------------------------------------
11 6/97 18265 19877
- --------------------------------------------------------------------------------
12 9/97 19779 21366
- --------------------------------------------------------------------------------
13 11/97 20151 21608
- --------------------------------------------------------------------------------
</TABLE>
Average Annual Total Return
as of November 30, 1997
- ------------------------------------------------
Since Inception
1 Year (2/1/95)
- ------------------------------------------------
Premium Class 24.68% 28.06%
- ------------------------------------------------
Service Class 24.68% 28.06%
- ------------------------------------------------
+Graphs for the Premium Class have been omitted as the only share activity has
been reinvestment of dividends from initial capitalization.
*Without certain fee waivers, returns would have been lower.
3
<PAGE>
IBJ FUNDS TRUST (SERVICE CLASS)+ (CONTINUED)
- --------------------------------------------------------------------------------
IBJ BLENDED TOTAL RETURN FUND
A $10,000 investment in the IBJ Blended Total Return Fund, made on the
inception date would have increased to $15,808 (as of November 30, 1997). The
graph on the right shows how this compares to our benchmark over the same
period. Total return for the Fund was 14.69%.*
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, 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 does not reflect the deduction of fees associated with a mutual
fund, such as investment management and fund administration fees. The
performance of the IBJ Blended Total Return 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 Blended Total Return Fund
Service Class Shares
- ---- Lehman Government/Corporate Bond Index
- ---- Standard & Poor's 500 Stock Index
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Label A B C
- --------------------------------------------------------------------------------------------
Label IBJ Blended Total Lehman Standard & Poor's
Return Fund Government/Corporate 500 Stock Index
Service Class Shares Bond Index
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 2/1/95 10000 10000 10000
- --------------------------------------------------------------------------------------------
2 3/95 10540 10301 10695
- --------------------------------------------------------------------------------------------
3 6/95 11100 10969 11715
- --------------------------------------------------------------------------------------------
4 9/95 11657 11179 12645
- --------------------------------------------------------------------------------------------
5 12/95 12222 11700 13406
- --------------------------------------------------------------------------------------------
6 3/96 12674 11426 14125
- --------------------------------------------------------------------------------------------
7 6/96 12807 11480 14758
- --------------------------------------------------------------------------------------------
8 9/96 13049 11682 15215
- --------------------------------------------------------------------------------------------
9 12/96 13620 12039 16482
- --------------------------------------------------------------------------------------------
10 3/97 13662 11935 16925
- --------------------------------------------------------------------------------------------
11 6/97 14798 12370 19877
- --------------------------------------------------------------------------------------------
12 9/97 15807 12803 21366
- --------------------------------------------------------------------------------------------
13 11/97 15808 13077 21608
- --------------------------------------------------------------------------------------------
</TABLE>
Average Annual Total Return
as of November 30, 1997
- ------------------------------------------------
Since Inception
1 Year (2/1/95)
- ------------------------------------------------
Premium Class 14.69% 17.55%
- ------------------------------------------------
Service Class 14.69% 17.55%
- ------------------------------------------------
+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.
4
<PAGE>
IBJ FUNDS TRUST
IBJ RESERVE MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS--NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Yield to
Maturity
at Time of Amortized
Credit Purchase/ Maturity Shares/ Cost
Ratings* Coupon Date Principal (Note 2)
-------- ---------- -------- ---------- -----------
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER--68.39%
A1/P1 American Express Credit. 5.64% 1/7/98 $1,300,000 $ 1,292,612
A1/P1 Bell Atlantic........... 5.65% 12/22/97 1,200,000 1,196,115
A1/P1 Brown-Forman............ 5.64% 12/10/97 1,200,000 1,198,341
A1+/P1 Campbell................ 5.57% 12/9/97 1,000,000 998,786
A1+/P1 Cargill, Inc............ 5.72% 1/9/98 1,200,000 1,192,720
A1/P1 Daimler-Benz N.A. Corp.. 5.80% 1/16/98 1,200,000 1,191,275
A1+/P1 General Electric Capital
Corp.................... 5.82% 1/16/98 1,200,000 1,191,260
A1/P1 General Mills........... 5.65% 12/11/97 1,220,000 1,218,119
A1/P1 IBM Credit Corp......... 5.78% 1/23/98 1,200,000 1,189,983
A1/P1 National Rural Electric. 5.77% 1/15/98 1,200,000 1,191,525
A1/P1 Sony Capital............ 5.65% 12/4/97 1,200,000 1,199,445
A1+/P1 Toyota Motor Credit
Corp.................... 5.75% 2/27/98 1,200,000 1,183,456
A1/P1 Toys R Us............... 5.66% 12/4/97 1,200,000 1,199,444
A1/P1 Weyerhauser Real Estate. 5.65% 12/5/97 1,200,000 1,199,261
A1/P1 Xerox Credit Corp....... 5.61% 12/2/97 1,000,000 999,847
-----------
TOTAL COMMERCIAL PAPER.. 17,642,189
-----------
U.S. GOVERNMENT AGENCIES--29.37%
AAA/Aaa FFCB.................... 5.58% 1/13/98 1,000,000 993,478
AAA/Aaa FHLB--Fltr.............. 5.70% 5/12/98 2,000,000 2,000,181
AAA/Aaa FMC..................... 5.51% 12/5/97 1,500,000 1,499,098
AAA/Aaa FNMA.................... 5.55% 12/11/97 1,200,000 1,198,183
AAA/Aaa FNMA.................... 5.57% 1/15/98 1,900,000 1,886,996
-----------
TOTAL U.S. GOVERNMENT
AGENCIES................ 7,577,936
-----------
SHORT-TERM INVESTMENTS--2.52%
TempCash Provident Money
Market Investment Fund.. N/R N/A 650,539 650,539
-----------
TOTAL SHORT-TERM
INVESTMENTS............. 650,539
-----------
TOTAL INVESTMENTS--
(AMORTIZED COST
$25,870,664)(A) 100.28%. 25,870,664
LIABILITIES, IN EXCESS
OF OTHER ASSETS--(.28%). (73,387)
-----------
NET ASSETS--100.00%..... $25,797,277
===========
</TABLE>
*See pg. 14 for Credit Ratings Summary.
(a) Cost for book and tax purposes is the same.
FFCB--Federal Farm Credit Bank
FHLB--Federal Home Loan Bank
FMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
See accompanying notes to financial statements
5
<PAGE>
IBJ FUNDS TRUST
IBJ CORE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS--NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Yield to
Maturity
at Time of
Credit Purchase/ Value
Ratings* Principal Coupon Maturity Cost (Note 2)
-------- ---------- ---------- -------- ----------- -----------
<C> <C> <S> <C> <C> <C> <C>
U.S. GOVERNMENT AGENCIES--8.17%
AAA/aaa $ 650,000 Federal Farm Credit MTN. 6.32% 9/9/02 $ 649,797 $ 655,478
AAA/aaa 11,934 FHLMC Pool # 285113..... 7.50% 2/1/17 11,664 12,156
AAA/aaa 606,174 FNMA Pool # 358604...... 8.00% 11/1/26 622,509 626,614
AAA/aaa 500,000 FNMA ................... 6.54% 10/3/05 508,826 511,615
AAA/aaa 750,000 FNMA.................... 6.70% 6/19/07 759,974 779,025
----------- -----------
TOTAL U.S. GOVERNMENT
AGENCIES................ 2,552,770 2,584,888
----------- -----------
U.S. GOVERNMENT OBLIGATIONS--3.60%
AAA/aaa 379,280 GNMA Pool # 423877...... 8.00% 7/15/26 386,985 392,316
AAA/aaa 399,684 GNMA Pool # 432232...... 8.00% 1/15/27 407,803 413,338
AAA/aaa 154,555 GNMA Pool # 445081...... 8.00% 1/15/27 157,694 159,864
AAA/aaa 53,580 GNMA Pool # 102627...... 13.00% 6/15/14 59,767 60,495
AAA/aaa 72,400 GNMA Pool # 115224...... 13.00% 11/15/14 80,704 81,796
AAA/aaa 24,412 GNMA Pool # 120883...... 13.00% 12/15/14 27,199 27,531
AAA/aaa 2,292 GNMA Pool # 39821....... 13.00% 4/15/10 2,485 2,570
----------- -----------
TOTAL U.S. GOVERNMENT
OBLIGATIONS............. 1,122,637 1,137,910
----------- -----------
U.S. TREASURY OBLIGATIONS--38.72%
AAA/aaa 1,000,000 Bonds................... 6.875% 8/15/25 1,053,638 1,100,810
AAA/aaa 1,250,000 Bonds................... 7.25% 8/15/22 1,249,431 1,426,050
AAA/aaa 1,500,000 Bonds................... 6.625% 2/15/27 1,568,527 1,607,775
AAA/aaa 1,250,000 Notes................... 6.75% 4/30/00 1,268,066 1,276,288
AAA/aaa 1,500,000 Notes................... 6.50% 10/15/06 1,554,924 1,559,355
AAA/aaa 1,500,000 Notes................... 6.625% 4/30/02 1,505,112 1,542,990
AAA/aaa 1,500,000 Notes................... 6.875% 5/15/06 1,540,154 1,595,250
AAA/aaa 2,000,000 Notes................... 7.00% 7/15/06 2,077,030 2,144,180
----------- -----------
TOTAL U.S. TREASURY
OBLIGATIONS............. 11,816,882 12,252,698
----------- -----------
CORPORATE OBLIGATIONS--46.21%
AEROSPACE/DEFENSE--1.21%
BBB1 365,000 Lockheed Martin Corp.... 7.25% 5/15/06 371,775 383,250
----------- -----------
AUTOMOBILES--1.74%
A3 400,000 General Motors
Acceptance Corp. Notes.. 7.00% 3/1/00 401,488 406,500
A3 131,000 General Motors
Acceptance Corp. Notes.. 9.00% 10/15/02 143,049 145,410
----------- -----------
544,537 551,910
----------- -----------
BANKING--1.50%
A1 200,000 BankAmerica Corp. MTN... 7.125% 5/12/05 201,996 206,250
A3 250,000 Bankers Trust NY Corp... 9.50% 6/14/00 265,354 267,813
----------- -----------
467,350 474,063
----------- -----------
CHEMICALS--0.55%
A3 175,000 Eastman Chemical........ 6.375% 1/15/04 175,000 173,906
----------- -----------
DURABLE GOODS--0.88%
BB2 250,000 Whirlpool Corp. Debs.... 9.00% 3/1/03 256,507 277,188
----------- -----------
</TABLE>
See accompanying notes to financial statements
6
<PAGE>
IBJ FUNDS TRUST
IBJ CORE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)--NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Yield to
Maturity
at Time of
Credit Purchase/ Value
Ratings* Principal Coupon Maturity Cost (Note 2)
-------- --------- ---------- -------- ----------- -----------
<C> <C> <S> <C> <C> <C> <C>
ENTERTAINMENT--0.17%
BB1 $ 55,000 Time Warner Inc......... 7.45% 2/1/98 $ 55,118 $ 55,138
----------- -----------
FINANCIAL SERVICES--4.38%
AA3 350,000 Associates Corp. N.A.
Sr. Notes............... 7.50% 4/15/02 351,375 364,875
A1 385,000 Commercial Credit Co.
Notes................... 6.875% 5/1/02 388,798 393,663
A1 319,000 Dean Witter Discovery &
Co...................... 6.875% 3/1/03 319,303 324,184
A3 270,000 Lehman Brothers
Holdings................ 8.50% 5/1/07 287,555 303,750
----------- -----------
1,347,031 1,386,472
----------- -----------
FOOD--1.12%
BBB2 350,000 Nabisco, Inc. Notes..... 6.85% 6/15/05 356,174 353,063
----------- -----------
FOREST PRODUCTS & PAPER--1.06%
BBB2 325,000 Champion International
Corp. Sr. Notes......... 7.70% 12/15/99 332,569 334,344
----------- -----------
INDUSTRIAL GOODS & SERVICES--11.51%
B1 636,000 American Standard Sr.
Notes................... 9.875% 6/1/01 662,754 660,645
BB2 250,000 Freeport McMoran........ 8.75% 2/15/04 258,875 261,250
BBB3 150,000 Panamerican Beverage,
Inc. Sr. Notes.......... 8.125% 4/1/03 150,519 155,812
BB2 250,000 Rohr Industries......... 9.25% 3/1/17 260,346 258,750
NR 200,000 Rowan Companies......... 11.875% 12/1/01 208,542 212,000
BB2 250,000 Scotts Co............... 9.875% 8/1/04 270,111 269,063
BBB3 200,000 USG Corp. Debs.......... 9.25% 9/15/01 212,012 214,750
BBB3 350,000 USG Corp. Debs.......... 8.75% 3/1/17 362,330 367,938
BB2 500,000 Westinghouse Electric
Notes................... 9.30% 6/7/99 517,957 518,125
BB2 250,000 Westinghouse Electric
Notes................... 9.40% 1/31/01 266,112 267,188
BB3 200,000 Westpoint Stevens, Inc.
Sr. Notes............... 8.75% 12/15/01 207,431 206,500
BBB1 250,000 WMX Technologies........ 8.125% 2/1/98 250,670 250,790
----------- -----------
3,627,659 3,642,811
----------- -----------
MACHINES--0.69%
BBB1 210,000 Case Corp............... 7.25% 8/1/05 212,797 216,825
----------- -----------
METALS--0.85%
BB3 250,000 AK Steel Corp........... 10.75% 4/1/04 270,165 268,125
----------- -----------
OIL/GAS--3.15%
AA1 250,000 Amoco Canada Petroleum
Co. Debs................ 7.95% 10/1/22 258,839 272,812
BB3 251,000 Clark Oil Refinery Sr.
Notes................... 10.50% 12/1/01 257,714 259,471
BB3 250,000 Gulf Canada Resources
Ltd. Sub. Notes......... 9.625% 7/1/05 269,891 271,250
BBB1 190,000 Union Oil of California. 6.70% 10/15/07 187,976 192,138
----------- -----------
974,420 995,671
----------- -----------
TRANSPORTATION--4.38%
BBB2 431,000 Canadian National
Railway Notes........... 7.00% 3/15/04 429,992 438,003
BBB2 140,000 Canadian Pacific Notes.. 6.875% 4/15/03 141,325 142,275
A2 350,000 Conrail Inc., Notes..... 6.86% 12/31/07 344,435 355,309
BBB2 300,000 CSX Corp. Notes......... 7.00% 9/15/02 299,280 306,750
</TABLE>
See accompanying notes to financial statements
7
<PAGE>
IBJ FUNDS TRUST
IBJ CORE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)--NOVEMBER 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Yield to
Maturity
at Time of
Credit Shares/ Purchase/ Value
Ratings* Principal Coupon Maturity Cost (Note 2)
-------- ---------- ---------- -------- ----------- -----------
<C> <C> <S> <C> <C> <C> <C>
BBB2 $ 140,000 Union Pacific Corp...... 7.375% 5/15/01 $ 144,115 $ 144,200
----------- -----------
1,359,147 1,386,537
----------- -----------
UTILITIES--13.03%
BB1 325,000 California Energy Notes. 10.25% 1/15/04 349,079 352,219
A3 350,000 Central Power & Light
Notes................... 6.875% 2/1/03 357,327 357,875
BB1 295,000 Connecticut Light &
Power Notes............. 7.25% 7/1/99 293,889 298,688
BBB2 284,000 Consumer Energy Co.
Notes................... 6.875% 5/1/98 284,000 284,710
BBB1 150,000 Duquesne Light.......... 8.375% 5/15/24 156,337 158,250
A2 250,000 Hydro-Quebec MTN........ 8.59% 8/22/01 251,022 267,187
A2 285,000 Hydro-Quebec MTN........ 9.41% 3/23/00 301,674 303,168
BBB2 300,000 Illinois Power Notes.... 6.50% 8/1/03 301,364 301,500
BBB1 300,000 Jersey Central Power &
Light Notes............. 7.125% 10/1/04 307,375 306,375
AA3 400,000 National Rural Utilities
Notes................... 6.50% 9/15/02 401,861 403,500
BBB2 400,000 New Orleans Public
Service, Inc. Notes..... 8.00% 3/1/06 396,653 423,000
BB2 551,000 Niagara Mohawk Power.... 6.50% 8/1/98 550,689 548,934
BB2 10,000 Niagara Mohawk Power.... 9.25% 10/1/01 10,693 10,688
BB2 100,000 Niagara Mohawk Power.... 9.50% 6/1/00 105,580 105,500
----------- -----------
4,067,543 4,121,594
----------- -----------
TOTAL CORPORATE
OBLIGATIONS............. 14,417,792 14,620,897
----------- -----------
COMMERCIAL PAPER--1.57%
A2 500,000 Union Pacific 5.97%..... 1/12/98 496,517 496,517
----------- -----------
SHORT-TERM INVESTMENTS--1.63%
514,820 TempCash Provident Money
Market Investment Fund.. 514,820 514,820
----------- -----------
TOTAL INVESTMENTS--
99.89% (A).............. $30,921,418 31,607,730
===========
CASH AND OTHER ASSETS,
NET OF LIABILITIES--
0.11%................... 33,930
-----------
NET ASSETS--100.00%..... $31,641,660
===========
</TABLE>
*See page 14 for Credit Ratings Summary.
(a)Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax reporting
by approximately $6,708:
<TABLE>
<S> <C>
Unrealized appreciation......................................... $694,410
Unrealized depreciation......................................... (14,806)
--------
Net unrealized appreciation..................................... $679,604
========
</TABLE>
Debs.--Debentures
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GNMA--Government National Mortgage Association
MTN--Medium Term Note
Sr.--Senior Notes
Sub.--Subordinate Notes
See accompanying notes to financial statements
8
<PAGE>
IBJ FUNDS TRUST
IBJ CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS--NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ----------- ------------
<C> <S> <C> <C>
COMMON STOCKS--96.85%
AEROSPACE/DEFENSE--1.23%
22,800 AlliedSignal, Inc........................... $ 527,227 $ 846,450
8,000 Raytheon Co................................. 315,093 447,500
----------- ------------
842,320 1,293,950
----------- ------------
AUTO MANUFACTURERS--0.82%
20,000 Ford Motor Co............................... 859,700 860,000
----------- ------------
BANKING--5.49%
31,800 NationsBank Corp............................ 757,499 1,909,987
33,200 Signet Banking Corp......................... 813,181 1,790,725
6,800 Wells Fargo & Co............................ 1,937,023 2,089,300
----------- ------------
3,507,703 5,790,012
----------- ------------
BEVERAGES--2.09%
59,600 PepsiCo, Inc................................ 1,712,302 2,197,750
----------- ------------
CHEMICALS--5.90%
32,800 Air Products & Chemical, Inc................ 2,059,653 2,515,350
43,000 Monsanto Co................................. 733,714 1,878,563
53,700 Morton International, Inc................... 1,614,592 1,829,156
----------- ------------
4,407,959 6,223,069
----------- ------------
COMMERCIAL SERVICES--0.97%
40,000 Trigon Healthcare*.......................... 1,057,808 1,025,000
----------- ------------
COMPUTERS--0.69%
20,000 3 Com Corp.*................................ 703,344 725,000
----------- ------------
ELECTRONICS--11.12%
100,000 Coltec Industries, Inc.*.................... 2,025,310 2,331,250
32,000 General Electric Co......................... 816,000 2,360,000
16,000 Hewlett-Packard Co.......................... 409,500 977,000
45,000 Molex, Inc.................................. 1,165,960 1,712,813
14,000 Motorola, Inc............................... 837,823 880,250
15,000 Parker-Hannifin Corp........................ 672,765 667,500
15,000 SCI Systems, Inc.*.......................... 645,050 687,188
70,000 Westinghouse Electric Corp.*................ 1,911,970 2,100,000
----------- ------------
8,484,378 11,716,001
----------- ------------
ENTERTAINMENT--3.41%
30,000 Time Warner, Inc............................ 1,338,150 1,747,500
19,400 The Walt Disney Co.......................... 1,174,123 1,841,788
----------- ------------
2,512,273 3,589,288
----------- ------------
ENVIRONMENTAL CONTROL--1.34%
45,000 United States Filter Corp.*................. 1,529,830 1,411,875
----------- ------------
FINANCIAL SERVICES--2.18%
18,200 Household International, Inc................ 812,135 2,293,200
----------- ------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ----------- ------------
<C> <S> <C> <C>
FOOD--6.95%
50,000 Nabisco Holdings............................. $ 1,442,647 $ 2,331,250
41,300 Sara Lee Corp................................ 1,148,637 2,183,738
63,000 Sysco Corp................................... 2,023,934 2,807,438
----------- ------------
4,615,218 7,322,426
----------- ------------
HOUSEHOLD PRODUCTS--1.90%
30,000 Colgate-Palmolive Co......................... 928,125 2,004,375
----------- ------------
INSURANCE--1.94%
20,250 American International Group, Inc............ 917,980 2,041,453
----------- ------------
MACHINES--0.95%
15,000 Dover Corp................................... 460,325 1,005,938
----------- ------------
MANUFACTURING--1.83%
20,000 Dexter Corp.................................. 802,400 796,250
50,000 Mark IV Industries, Inc...................... 1,192,063 1,131,250
----------- ------------
1,994,463 1,927,500
----------- ------------
MEDICAL--1.27%
45,300 Columbia/HCA Healthcare Corp................. 1,242,265 1,336,350
----------- ------------
METALS--1.47%
19,000 Aluminum Co. of America...................... 763,562 1,277,750
15,000 Worthington Industries, Inc.................. 299,500 271,875
----------- ------------
1,063,062 1,549,625
----------- ------------
OIL/GAS--9.49%
15,000 Apache Corp.................................. 568,924 551,250
24,600 Atlantic Richfield Co........................ 1,306,875 2,004,900
27,000 Exxon Corp................................... 1,681,170 1,647,000
30,000 Mobil Corp................................... 1,338,760 2,158,125
40,400 Noble Affiliates, Inc........................ 1,580,257 1,499,850
53,800 Unocal Corp.................................. 2,175,257 2,141,912
----------- ------------
8,651,243 10,003,037
----------- ------------
PACKAGING & CONTAINERS--1.19%
22,000 Sealed Air Corp.*............................ 1,169,120 1,251,250
----------- ------------
PHARMACEUTICAL--4.95%
38,600 Alza Corp.*.................................. 1,107,121 1,030,138
1,930 Crescendo Pharmaceuticals*................... 22,195 22,074
26,000 Pfizer, Inc.................................. 695,319 1,891,500
37,000 R.P. Scherer Corp.*.......................... 2,174,577 2,268,563
----------- ------------
3,999,212 5,212,275
----------- ------------
RETAIL--9.68%
48,300 Costco Cos., Inc.*........................... 682,237 2,140,294
</TABLE>
See accompanying notes to financial statements
9
<PAGE>
IBJ FUNDS TRUST
IBJ CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)--NOVEMBER 30, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
SHARES COST (NOTE 2)
------ ----------- ------------
<C> <S> <C> <C>
RETAIL--CONTINUED
13,105 CVS Corp..................................... $ 347,044 $ 869,844
80,000 Fred Meyer, Inc.*............................ 1,667,140 2,710,000
73,000 Kroger Co.*.................................. 1,077,885 2,513,938
30,000 Lowe's Companies............................. 1,383,048 1,378,125
10,000 Nordstrom, Inc............................... 615,313 590,000
----------- ------------
5,772,667 10,202,201
----------- ------------
SEMICONDUCTORS--1.56%
47,500 Xilinx, Inc.*................................ 1,596,214 1,641,719
----------- ------------
TECHNOLOGY--1.58%
66,800 International Game Technology................ 1,194,678 1,670,000
----------- ------------
TELECOMMUNICATIONS--8.77%
55,000 Cincinnati Bell, Inc......................... 1,482,675 1,622,500
86,199 360 Communications Co.*...................... 1,821,943 1,659,331
14,936 Lucent Technologies, Inc..................... 789,500 1,196,747
35,300 SBC Communications, Inc...................... 1,541,117 2,570,281
37,400 Sprint Corp.................................. 1,012,070 2,190,237
----------- ------------
6,647,305 9,239,096
----------- ------------
TEXTILES/APPAREL--0.67%
14,400 Jones Apparel Group, Inc.*................... 171,000 702,000
----------- ------------
</TABLE>
<TABLE>
<CAPTION>
SHARES/ VALUE
PRINCIPAL COST (NOTE 2)
---------- ----------- ------------
<C> <S> <C> <C>
TOBACCO--1.59%
38,600 Philip Morris Cos., Inc................. $ 1,371,496 $ 1,679,100
----------- ------------
TRANSPORTATION--2.97%
50,000 Kansas City Southern Industries, Inc.... 730,734 1,543,750
50,000 Norfolk Southern Corp. ................. 1,346,043 1,590,624
----------- ------------
2,076,777 3,134,374
----------- ------------
UTILITIES--2.87%
25,000 Cinergy Corp............................ 785,956 890,623
41,100 Duke Power Co........................... 1,754,569 2,137,200
----------- ------------
2,540,525 3,027,823
----------- ------------
TOTAL COMMON STOCKS..................... 72,841,427 102,075,687
----------- ------------
DISCOUNT NOTES--.95%
$1,000,000 Japan Airline Dn 12/10/97............... 998,550 998,550
----------- ------------
SHORT-TERM INVESTMENTS--4.03%
4,250,237 TempCash Provident Money Market
Investment Fund........................ 4,250,238 4,250,238
----------- ------------
TOTAL INVESTMENTS--101.83%(A)........... $78,090,215 107,324,475
===========
LIABILITIES IN EXCESS OF OTHER ASSETS--
(1.83%)................................ (1,924,035)
------------
NET ASSETS--100.00%..................... $105,400,440
============
</TABLE>
* Denotes non-income producing security.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax reporting
by approximately $4,360:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $30,182,716
Unrealized depreciation...................................... (952,816)
-----------
Net unrealized appreciation.................................. $29,229,900
===========
</TABLE>
See accompanying notes to financial statements
10
<PAGE>
IBJ FUNDS TRUST
IBJ BLENDED TOTAL RETURN FUND
PORTFOLIO OF INVESTMENTS--NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL COST VALUE
--------- ----------- -----------
<C> <S> <C> <C>
COMMON STOCKS--51.00%
AUTO MANUFACTURERS--0.87%
12,500 Ford Motor Co.............................. $ 538,887 $ 537,500
----------- -----------
BANKING--2.14%
6,000 BankAmerica Corp........................... 321,774 438,000
11,800 First American Corp........................ 212,262 584,100
5,000 NationsBank Corp........................... 130,110 300,313
----------- -----------
664,146 1,322,413
----------- -----------
BEVERAGES--0.74%
12,500 PepsiCo, Inc............................... 351,458 460,937
----------- -----------
CHEMICALS--1.75%
7,000 Air Products & Chemicals, Inc.............. 461,244 536,813
16,000 Morton International, Inc.................. 465,808 545,000
----------- -----------
927,052 1,081,813
----------- -----------
COMMERCIAL SERVICES--0.72%
17,500 Trigon Healthcare, Inc.*................... 465,064 448,437
----------- -----------
COMPUTERS--1.22%
13,000 Bay Networks, Inc*......................... 415,098 390,812
10,000 3 Com Corp.*............................... 353,688 362,500
----------- -----------
768,786 753,312
----------- -----------
ELECTRONICS--6.40%
20,000 Allen Group, Inc.*......................... 476,780 406,250
25,000 AMETEK, Inc................................ 457,211 593,750
50,000 Coltec Industries, Inc.*................... 1,038,581 1,165,625
9,000 General Electric Co........................ 276,750 663,750
15,000 SCI Systems, Inc.*......................... 755,315 687,188
10,000 Parker-Hannifin Corp....................... 447,963 445,000
----------- -----------
3,452,600 3,961,563
----------- -----------
ENTERTAINMENT--0.94%
10,000 Time Warner, Inc........................... 469,575 582,500
----------- -----------
ENVIRONMENTAL--0.76%
15,000 United States Filter Corp.*................ 500,865 470,625
----------- -----------
FOOD--2.95%
13,000 Nabisco Holdings Corp.
Class A................................... 360,946 606,125
13,000 Sara Lee Corp.............................. 440,765 687,375
12,000 Sysco Corp................................. 376,580 534,750
----------- -----------
1,178,291 1,828,250
----------- -----------
HEALTH CARE--0.65%
8,000 Baxter International, Inc.................. 344,960 405,000
----------- -----------
INDUSTRIAL GOODS & SERVICES--0.73%
15,000 Westinghouse Electric Corp.*............... 367,710 450,000
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL COST VALUE
--------- ----------- -----------
<C> <S> <C> <C>
LODGING--0.75%
15,000 Hilton Hotels.............................. $ 451,050 $ 466,875
----------- -----------
HOUSEHOLD PRODUCTS--0.65%
6,000 Colgate-Palmolive Co....................... 251,376 400,875
----------- -----------
INSURANCE--2.83%
6,000 American International
Group, Inc................................ 271,987 604,875
3,200 General Re Corp............................ 500,894 635,200
5,000 Progressive Corp.-Ohio..................... 423,620 510,000
----------- -----------
1,196,501 1,750,075
----------- -----------
METALS--0.49%
4,500 Aluminum Co. of America.................... 321,030 302,625
----------- -----------
MISCELLANEOUS MANUFACTURING--1.69%
12,000 Dexter Corp................................ 487,075 477,750
25,000 Mark IV Industries, Inc.................... 618,828 565,625
----------- -----------
1,105,903 1,043,375
----------- -----------
OIL/GAS--4.74%
10,000 Exxon Corp................................. 493,431 610,000
7,000 Mobil Corp................................. 349,191 503,563
16,000 Noble Affiliates, Inc...................... 718,060 594,000
10,000 Triton Energy Ltd.*........................ 441,775 350,000
22,000 Unocal Corp................................ 884,978 875,875
----------- -----------
2,887,435 2,933,438
----------- -----------
PACKAGING AND CONTAINERS--1.19%
13,000 Sealed Air Corp.*.......................... 660,005 739,375
----------- -----------
PHARMACEUTICAL--2.33%
8,000 Pfizer, Inc................................ 168,710 582,000
14,000 R.P. Scherer Corp.*........................ 724,154 858,375
----------- -----------
892,864 1,440,375
----------- -----------
RETAIL--7.38%
20,000 Costco Cos., Inc.*......................... 281,625 886,250
38,000 Fred Meyer, Inc.*.......................... 750,692 1,287,250
30,000 Kroger Co.*................................ 443,071 1,033,125
15,000 Lowe's Cos................................. 662,310 689,063
22,000 Proffitts, Inc.*........................... 535,899 672,375
----------- -----------
2,673,597 4,568,063
----------- -----------
SEMICONDUCTORS--0.70%
12,500 Xilinx, Inc.*.............................. 447,550 432,030
----------- -----------
TECHNOLOGY--0.81%
20,000 International Game
Technology................................ 352,700 500,000
----------- -----------
</TABLE>
See accompanying notes to financial statements
11
<PAGE>
IBJ FUNDS TRUST
IBJ BLENDED TOTAL RETURN FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)--NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES/
PRINCIPAL COST VALUE
--------- ----------- -----------
<C> <S> <C> <C>
TELECOMMUNICATIONS--3.64%
37,500 360 Communications Co.*.................... $ 812,006 $ 721,875
23,000 Cincinnati Bell, Inc....................... 584,060 678,500
20,000 DSC Communications*........................ 577,500 451,250
5,000 Lucent Technologies, Inc................... 230,056 400,625
----------- -----------
2,203,622 2,252,250
----------- -----------
TOBACCO--0.63%
9,000 Philip Morris Cos., Inc.................... 386,788 391,500
----------- -----------
TRANSPORTATION--1.59%
15,000 Norfolk Southern Corp...................... 404,947 477,188
30,000 Rollins Truck Leasing Corp................. 382,473 508,125
----------- -----------
787,420 985,313
----------- -----------
UTILITIES--ELECTRIC--0.95%
15,000 CMS Energy Corp............................ 506,957 590,625
----------- -----------
UTILITIES--GAS--0.74%
12,500 People's Energy Corp....................... 423,830 457,812
----------- -----------
TOTAL COMMON STOCKS........................ 25,578,022 31,556,956
----------- -----------
PREFERRED STOCKS--0.79%
12,500 Laidlaw One, Inc........................... 629,781 487,500
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
CREDIT SHARES/
RATINGS* PRINCIPAL COST VALUE
-------- ---------- ----------- -----------
<C> <C> <S> <C> <C>
U.S. GOVERNMENT AGENCIES--0.81%
AAA $ 500,000 FHLB 6.07%, 06/30/03............ $ 491,068 $ 499,105
AAA 500 FNMA 6.50%, 08/25/04............ 466 502
----------- -----------
TOTAL U.S. GOVERNMENT AGENCIES.. 491,534 499,607
----------- -----------
U.S. GOVERNMENT OBLIGATIONS--0.14%
AAA 20,982 GNMA Pool
# 102470........................ 23,333 23,661
AAA 54,548 GNMA Pool # 55056............... 60,651 61,590
----------- -----------
TOTAL U.S. GOVERNMENT
OBLIGATIONS..................... 83,984 85,251
----------- -----------
U.S. TREASURY OBLIGATIONS--14.89%
AAA 2,000,000 Bonds 6.625%, 02/15/27.......... 2,068,417 2,143,700
AAA 1,500,000 Notes 6.50%, 05/15/05........... 1,521,007 1,553,550
</TABLE>
<TABLE>
<CAPTION>
CREDIT SHARES/
RATINGS* PRINCIPAL COST VALUE
-------- ---------- ----------- -----------
<C> <C> <S> <C> <C>
AAA $1,750,000 Notes 6.375%, 03/31/01.......... $ 1,765,741 $ 1,777,265
AAA 1,500,000 Notes 6.875%, 5/15/06........... 1,553,166 1,595,250
AAA 2,000,000 Notes 7.00%, 07/15/06........... 2,070,811 2,144,180
----------- -----------
TOTAL U.S. TREASURY OBLIGATIONS. 8,979,142 9,213,945
----------- -----------
CORPORATE OBLIGATIONS--30.11%
AUTOMOBILES--0.66%
A3 400,000 General Motors Acceptance Corp.
7.00%, 03/01/00................. 402,130 406,500
----------- -----------
BANKING--0.60%
AA2 350,000 JP Morgan Capital Trust II Notes
7.95%, 02/01/27................. 346,328 370,562
----------- -----------
CHEMICALS--0.41%
AA3 250,000 du Pont (E.I.) de Nemours & Co.
MTN 8.35%, 5/15/98.............. 250,474 252,600
----------- -----------
ENTERTAINMENT--0.30%
BB1 180,000 Time Warner, Inc. Notes 7.95%,
02/01/00........................ 183,427 186,075
----------- -----------
INDUSTRIAL GOODS AND SERVICES--23.77%
BB3 600,000 American Standard 10.875%,
5/15/99......................... 628,499 633,750
B1 950,000 American Standard 9.875%,
6/1/01.......................... 990,302 986,813
B1 231,000 American Standard Step 06/01/05. 235,281 231,289
BBB3 200,000 ARA Group 10.625%, 08/01/00..... 213,689 216,750
BB2 820,000 ARA Group 8.50%, 06/01/03....... 859,957 854,850
B1 300,000 Essex Group 10.00%, 05/01/03.... 315,141 315,000
AA2 750,000 Imperial Oil Ltd. 8.75%,
10/15/19........................ 802,245 810,000
B1 250,000 K Mart Corp. 9.80%, 06/15/98.... 253,577 252,812
BB2 481,000 La Quinta Inns, Inc. 9.25%,
05/15/03........................ 502,996 497,835
</TABLE>
See accompanying notes to financial statements
12
<PAGE>
IBJ FUNDS TRUST
IBJ BLENDED TOTAL RETURN FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)--NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CREDIT SHARES/
RATINGS* PRINCIPAL COST VALUE
-------- ---------- ----------- -----------
<C> <C> <S> <C> <C>
BBB2 $ 641,000 Occidental 11.125%, 06/01/19.... $ 710,389 $ 714,715
B2 500,000 Purina 10.25%, 09/01/03......... 535,000 528,750
B3 750,000 Ralphs Grocery Co. 11.00%,
06/15/05........................ 856,732 853,125
BB2 750,000 Rohr Industries 9.25%, 3/1/17... 781,037 776,250
NR 950,000 Rowan Companies 11.875%,
12/01/01........................ 990,572 1,007,000
BB2 750,000 Scotts Co. 9.875%, 08/01/04..... 809,263 807,187
BB3 750,000 US Filter Corp. 4.50%, 12/15/01. 850,790 784,688
BBB3 1,565,000 USG Corp. Debs. 8.75%, 03/01/17. 1,621,008 1,645,206
BB3 350,000 Valassis Inserts, Inc. Sr. Sub.
Notes 9.375%, 3/15/99........... 358,321 360,500
BBB1 750,000 WMX Tech 8.125%, 02/01/98....... 752,010 752,370
BB2 550,000 Westinghouse Electric Notes
9.30%, 06/07/99................. 569,757 569,937
BB2 750,000 Westinghouse Electric Notes
9.40%, 01/31/01................. 798,554 801,563
BB3 300,000 Westpoint Stevens, Inc. Sr.
Notes 8.75%, 12/15/01........... 312,078 309,750
----------- -----------
14,747,198 14,710,140
----------- -----------
MEDIA--0.48%
BB3 283,000 Heritage Media Sr. Sub. Notes
11.00%, 10/01/02................ 297,243 299,272
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
CREDIT SHARES/
RATINGS* PRINCIPAL COST VALUE
-------- --------- ----------- -----------
<C> <C> <S> <C> <C>
METALS--1.30%
BB3 $ 750,000 AK Steel Corp. 10.75%, 4/1/04... $ 810,548 $ 804,375
----------- -----------
OIL/GAS--1.46%
AA1 350,000 Amoco Canada Petroleum Co. Debs.
7.95%, 10/1/22.................. 362,616 381,938
B1 500,000 Ferrellgas Partnership Notes
9.375%, 06/15/06................ 520,508 522,500
----------- -----------
883,124 904,438
----------- -----------
RETAIL--0.64%
BB2 377,000 Kroger Co. 10.00%, 05/01/99..... 392,785 396,793
----------- -----------
UTILITIES--0.49%
A2 300,000 Pacific Gas & Electric MTN,
9.08%, 12/15/97................. 300,106 300,375
----------- -----------
TOTAL CORPORATE OBLIGATIONS..... 18,613,363 18,631,130
----------- -----------
SHORT-TERM INVESTMENTS--3.01%
1,862,379 TempCash Provident Money Market
Investment Fund................. 1,862,379 1,862,379
----------- -----------
TOTAL INVESTMENTS--100.74% (A).. $56,238,205 62,336,768
===========
LIABILITIES, IN EXCESS OF CASH
AND OTHER ASSETS--(0.74%)....... (455,726)
-----------
NET ASSET VALUE--100.00%........ $61,881,042
===========
</TABLE>
* See page 14 for Credit Ratings Summary.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $ 7,127,256
Unrealized depreciation...................................... (1,028,693)
-----------
Net unrealized appreciation.................................. $ 6,098,563
===========
</TABLE>
Debs.--Debentures
FHLMC--Federal Home Loan Mortgage Corporation
FNMA--Federal National Mortgage Association
GNMA--Government National Mortgage Association
MTN--Medium Term Note
Sr.--Senior Notes
Sub.--Subordinate Notes
See accompanying notes to financial statements
13
<PAGE>
IBJ FUNDS TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED)--NOVEMBER 30, 1997
- -------------------------------------------------------------------------------
*CREDIT RATINGS GIVEN BY STANDARD & POOR'S CORPORATION AND MOODY'S INVESTORS
SERVICE INC. (UNAUDITED)
<TABLE>
<CAPTION>
STANDARD & POOR'S MOODY'S
----------------- -------
<C> <C> <S>
A1 P1 Instrument of the highest quality.
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 Adviser,
instrument judged to be of comparable investment
quality to rated securities which may be purchased
by the Fund.
</TABLE>
For items possessing the strongest investment attributes of their category,
Moody's gives that letter rating followed by a number.
The Standards & Poor's rating may be modified by the addition of a plus or
minus sign to show relative standings within the major rating categories.
U.S. Government Issues have an assumed rating of AAA/Aaa.
See accompanying notes to financial statements
14
<PAGE>
[This Page Intentionally Left Blank]
15
<PAGE>
IBJ FUNDS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RESERVE MONEY CORE FIXED CORE EQUITY BLENDED TOTAL
MARKET FUND INCOME FUND FUND RETURN FUND
------------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(amortized cost
$25,870,664; cost
$30,921,418, $78,090,215,
$56,238,205)............... $25,870,664 $31,607,730 $107,324,475 $62,336,768
Cash........................ 96,040 -- -- 37,410
Interest and dividends
receivable................. 9,087 513,714 141,194 627,821
Receivable for investment
securities sold............ -- -- -- 795,938
Unamortized organization
cost....................... 12,474 12,474 12,474 12,474
Other assets................ 3,003 -- 10,317 --
----------- ----------- ------------ -----------
Total Assets.............. $25,991,268 $32,133,918 $107,488,460 $63,810,411
----------- ----------- ------------ -----------
LIABILITIES:
Payable for investment
securities purchased....... -- 250,670 443,615 1,396,609
Dividends payable........... 105,813 146,118 1,532,166 415,853
Advisory fees payable (Note
3)......................... -- 10,314 43,163 25,646
Administration fees payable
(Note 3)................... 3,188 3,868 12,949 7,694
Fund accounting fees payable
(Note 3)................... 3,000 3,000 3,000 3,000
Transfer agent fees payable
(Note 3)................... 5,855 9,044 2,428 1,708
Audit fees payable.......... 38,305 13,900 24,163 22,282
Legal fees payable.......... 15,252 16,386 11,624 19,735
Custodian fees payable...... 8,532 12,409 4,593 17,588
Other payables and accrued
expenses................... 14,046 26,549 10,319 19,254
----------- ----------- ------------ -----------
Total Liabilities......... 193,991 492,258 2,088,020 1,929,369
----------- ----------- ------------ -----------
NET ASSETS.................. $25,797,277 $31,641,660 $105,400,440 $61,881,042
=========== =========== ============ ===========
NET ASSETS CONSIST OF:
Shares of capital stock,
$0.001 par value per share
(unlimited shares
authorized)................ $ 25,806 $ 3,055 $ 6,321 $ 4,579
Additional paid-in capital.. 25,780,024 30,744,645 60,311,272 46,377,832
Accumulated
undistributed/(distribution
in excess of)
net investment income...... -- 122,034 (860,711) 51,339
Accumulated net realized
gain/(loss) on investment
transactions............... (8,553) 85,614 16,709,298 9,348,729
Net unrealized appreciation
of investments............. -- 686,312 29,234,260 6,098,563
----------- ----------- ------------ -----------
NET ASSETS.................. $25,797,277 $31,641,660 $105,400,440 $61,881,042
=========== =========== ============ ===========
SHARES OF BENEFICIAL
INTEREST
Premium Class:
Net assets.................. $ 12,932 $ 13,264 $ 14,530 $ 13,839
=========== =========== ============ ===========
Shares of beneficial
interest outstanding....... 12,936 1,281 871 1,024
=========== =========== ============ ===========
Net asset value offering and
redemption price per share
(Net Assets/Shares
Outstanding).............. $1.00 $10.35 $16.68 $13.51
=========== =========== ============ ===========
Service Class:
Net assets.................. $25,784,345 $31,628,396 $105,385,910 $61,867,203
=========== =========== ============ ===========
Shares of beneficial
interest outstanding....... 25,792,975 3,053,575 6,320,118 4,578,359
=========== =========== ============ ===========
Net asset value offering and
redemption price per share
(Net Assets/Shares
Outstanding).............. $1.00 $10.36 $16.67 $13.51
=========== =========== ============ ===========
</TABLE>
See accompanying notes to financial statements
16
<PAGE>
IBJ FUNDS TRUST
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RESERVE MONEY CORE FIXED CORE EQUITY BLENDED TOTAL
MARKET FUND INCOME FUND FUND RETURN FUND
------------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Investment Income:
Interest................ $1,557,649 $1,869,000 $ 27,378 $ 1,973,375
Dividend................ 29,494 26,567 1,573,130 500,603
---------- ---------- ----------- -----------
Total Income........... 1,587,143 1,895,567 1,600,508 2,473,978
---------- ---------- ----------- -----------
Expenses:
Advisory (Note 3)....... 101,221 141,947 588,328 381,947
Administration (Note 3). 43,380 42,584 147,082 95,487
Fund Accounting (Note
3)..................... 35,000 29,999 30,000 35,000
Transfer Agent (Note 3). 9,465 12,198 15,874 7,424
Audit................... 41,148 30,024 71,617 44,350
Custody (Note 3)........ 14,124 18,810 34,570 35,038
Legal................... 16,252 19,668 37,615 31,516
Printing................ 13,561 9,656 31,556 18,564
Miscellaneous........... 13,449 27,695 13,623 33,492
---------- ---------- ----------- -----------
Total expenses before
waivers............... 287,600 332,581 970,265 682,818
Less expenses waived
(Note 3).............. (101,221) (28,390) (98,055) (63,658)
---------- ---------- ----------- -----------
Net expenses............ 186,379 304,191 872,210 619,160
---------- ---------- ----------- -----------
Net Investment Income.... 1,400,764 1,591,376 728,298 1,854,818
---------- ---------- ----------- -----------
Realized and Unrealized
Gains on Investments:
Net realized gain/(loss)
on investment
transactions............. (1,601) 177,278 17,291,184 9,499,637
Net change in unrealized
appreciation on
investments.............. -- 276,460 3,803,831 (2,647,076)
---------- ---------- ----------- -----------
Net realized and
unrealized
gains/(losses) on
investments........... (1,601) 453,738 21,095,015 6,852,561
---------- ---------- ----------- -----------
Increase in Net Assets
Resulting from
Operations............... $1,399,163 $2,045,114 $21,823,313 $ 8,707,379
========== ========== =========== ===========
</TABLE>
See accompanying notes to financial statements
17
<PAGE>
IBJ FUNDS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RESERVE MONEY MARKET FUND
-----------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1997 NOVEMBER 30, 1996
----------------- -----------------
<S> <C> <C>
Investment Activities:
Operations:
Net investment income................... $ 1,400,764 $ 1,686,660
Net realized gains/(losses) on
investment transactions................ (1,601) (4,100)
Net change in unrealized appreciation of
investments............................ -- --
------------ -------------
Change in net assets resulting from
operations............................... 1,399,163 1,682,560
------------ -------------
Dividends to Shareholders from Net
Investment Income:
Premium Class........................... (631) (607)
Service Class........................... (1,400,133) (1,686,053)
------------ -------------
(1,400,764) (1,686,660)
------------ -------------
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............. 67,540,758 121,313,703
Dividends reinvested.................... 1,294,564 1,686,660
Net asset value of shares redeemed...... (77,319,264) (117,669,150)
------------ -------------
Change in net assets from capital share
transactions............................. (8,483,942) 5,331,213
------------ -------------
Change in net assets...................... (8,485,543) 5,327,113
Net Assets:
Beginning of year....................... 34,282,820 28,955,707
------------ -------------
End of year............................. $ 25,797,277 $ 34,282,820
============ =============
</TABLE>
See accompanying notes to financial statements
18
<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
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
NOVEMBER 30, 1997 NOVEMBER 30, 1996 NOVEMBER 30, 1997 NOVEMBER 30, 1996 NOVEMBER 30, 1997 NOVEMBER 30, 1996
- ----------------- ----------------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
$ 1,591,376 $ 1,424,794 $ 728,298 $ 831,732 $ 1,854,818 $ 1,696,351
177,278 30,875 17,291,184 9,863,103 9,499,637 3,067,207
276,460 (312,253) 3,803,831 9,092,966 (2,647,076) 3,016,124
----------- ------------ ------------ ------------ ------------ ------------
2,045,114 1,143,416 21,823,313 19,787,801 8,707,379 7,779,682
----------- ------------ ------------ ------------ ------------ ------------
(740) (759) (175) (247) (415) (475)
(1,590,636) (1,424,035) (1,114,028) (1,284,919) (1,842,417) (1,692,277)
----------- ------------ ------------ ------------ ------------ ------------
(1,591,376) (1,424,794) (1,114,203) (1,285,166) (1,842,832) (1,692,752)
----------- ------------ ------------ ------------ ------------ ------------
-- -- (135) -- -- --
-- -- (860,576) -- -- --
----------- ------------ ------------ ------------ ------------ ------------
-- -- (860,711) -- -- --
----------- ------------ ------------ ------------ ------------ ------------
-- (495) (2,169) (569) (818) (352)
-- (954,557) (10,445,960) (3,054,736) (3,160,241) (1,173,072)
----------- ------------ ------------ ------------ ------------ ------------
-- (955,052) (10,448,129) (3,055,305) (3,161,059) (1,173,424)
----------- ------------ ------------ ------------ ------------ ------------
7,685,783 11,985,540 21,842,264 30,155,508 7,315,837 17,930,945
1,445,059 2,379,846 10,890,846 4,340,471 4,588,014 2,866,176
(5,725,457) (12,209,266) (30,392,972) (42,896,015) (17,975,911) (12,059,346)
----------- ------------ ------------ ------------ ------------ ------------
3,405,385 2,156,120 2,340,138 (8,400,036) (6,072,060) 8,737,775
----------- ------------ ------------ ------------ ------------ ------------
3,859,123 919,690 11,740,408 7,047,294 (2,368,572) 13,651,281
27,782,537 26,862,847 93,660,032 86,612,738 64,249,614 50,598,333
----------- ------------ ------------ ------------ ------------ ------------
$31,641,660 $ 27,782,537 $105,400,440 $ 93,660,032 $ 61,881,042 $ 64,249,614
=========== ============ ============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements
19
<PAGE>
IBJ FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
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 (formerly the "Bond Fund"), IBJ Core Equity Fund and IBJ Blended Total
Return Fund (formerly the "Growth and Income 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.
IBJ Schroder Bank & Trust Company ("IBJS") serves as the Funds' investment
adviser. BISYS Fund Services, Limited Partnership ("BISYS"), serves as the
Funds' administrator. IBJ Funds Distributor, Inc. (the "Distributor"), serves
as the distributor of the Funds' shares. BISYS Fund Services, Inc. serves as
fund accountant and transfer and dividend disbursing agent of the Funds.
BISYS, the Distributor, and BISYS Fund Services, Inc. are each a wholly-owned
subsidiary of The BISYS Group, Inc.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies followed by the Funds in the preparation of
their 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
amounts 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 4:15 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
20
<PAGE>
IBJ FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
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 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
carryovers, 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
costs. As of November 30, 1997, the following reclassifications have been
made to increase (decrease) such accounts with offsetting adjustments made
to paid-in-capital:
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED
UNDISTRIBUTED NET NET REALIZED GAIN/
INVESTMENT INCOME (LOSS) ON INVESTMENTS
----------------- ---------------------
<S> <C> <C>
Money Market Fund.................... $ -- $ 82
Fixed Income Fund.................... 122,034 (122,034)
Core Equity Fund..................... (215) 3,142
Blended Total Return Fund............ 48,620 (56,900)
</TABLE>
21
<PAGE>
IBJ FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
(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 has
entered into investment advisory agreements (the "Advisory Agreements") with
IBJS (the "Adviser"). Pursuant to the terms of the Advisory Agreements, the
Adviser 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 Fixed Income Fund; 0.60% for the Core
Equity Fund; and 0.60% for the Blended Total Return Fund. For the year ended
November 30, 1997, the Adviser earned fees of $101,221, $141,947, $588,328 and
$381,947 for the Money Market Fund, the Fixed Income Fund, the Core Equity
Fund and the Blended Total Return Fund, respectively. The Adviser has
voluntarily waived fees of $101,221, $28,390, $98,055 and $63,658 for the
Money Market Fund, the Fixed Income Fund, the Core Equity Fund and the Blended
Total Return Fund, respectively. IBJS also serves as custodian for all of the
Funds. For the year ended November 30, 1997, IBJS earned fees of $14,124,
$18,810, $34,570 and $35,088 for the Money Market Fund, the Fixed Income Fund,
the Core Equity Fund and the Blended Total Return Fund, respectively.
BISYS provides the Trust with administrative services pursuant to an
administration agreement (the "Administration Agreement"). The services under
the Administration Agreement are subject to the supervision of the Trust's
Board of Trustees and officers and includes 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. BISYS assumed these functions during
the year ended November 30, 1997, from Furman Selz LLC, which had previously
provided these services to the Funds. Pursuant to the Administration
Agreement, the Trust pays BISYS a monthly fee for its services which on an
annualized basis will not exceed 0.15% of the average daily net assets of the
Trust. For the year ended November 30, 1997, BISYS earned fees of $43,380,
$42,584, $147,082 and $95,487 for the Money Market Fund, the Fixed Income
Fund, the Core Equity Fund and the Blended Total Return Fund, respectively.
BISYS Fund Services, Inc. provides the Funds with fund accounting and
related services pursuant to a Fund Accounting Agreement with the Trust. For
these services, BISYS was paid a fee of $2,500 per month per Fund plus out-of-
pocket expenses. For the year ended November 30, 1997, BISYS earned fees of
$35,000, $29,999, $30,000, and $35,000 for the Money Market Fund, the Fixed
Income Fund, the Core Equity Fund and the Blended Total Return Fund,
respectively.
BISYS Fund Services, Inc. also serves as transfer agent for the Funds and
pursuant to a Transfer Agency Agreement with the Trust, receives reimbursement
of certain expenses plus a per account fee of $15 per year. For the year ended
November 30, 1997, BISYS earned fees of $9,465, $12,198, $15,874 and $7,424
for the Money Market Fund, the Fixed Income Fund, the Core Equity Fund and the
Blended Total Return Fund, respectively.
The Trust has adopted a distribution and service plan pursuant to Rule 12b-1
under the Investment Company Act of 1940 for the Premium Class of Shares of
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. 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 year ended November 30, 1997, the
cost of purchases and the proceeds from sales of the Funds' portfolio
securities (excluding short-term investments), amounted to the following:
22
<PAGE>
IBJ FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Fixed Income Fund....................................... $59,140,307 $55,277,620
Core Equity Fund........................................ 41,754,597 50,849,263
Blended Total Return Fund............................... 78,235,665 79,557,410
</TABLE>
The cost of securities is substantially the same for Federal income tax
purposes as it is for financial reporting purposes.
NOTE 5 -- CAPITAL SHARE TRANSACTIONS. The Trust is authorized to issue an
unlimited number of shares of beneficial interest with a par value of $0.001
each. Transactions in shares of the Funds are as follows:
<TABLE>
<CAPTION>
RESERVE MONEY MARKET FUND
------------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1997 NOVEMBER 30, 1996
------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Issued.................. 0 $ 0 0 $ 0
Reinvested.............. 576 576 607 607
Redeemed................ (1,309) (1,309) (62) (62)
----------- ------------ ------------ -------------
Net increase (decrease). (733) $ (733) 545 $ 545
=========== ============ ============ =============
SERVICE CLASS
Issued.................. 67,540,758 $ 67,540,758 121,313,703 $ 121,313,703
Reinvested.............. 1,293,988 1,293,988 1,686,053 1,686,053
Redeemed................ (77,317,955) (77,317,955) (117,669,088) (117,669,088)
----------- ------------ ------------ -------------
Net increase (decrease). (8,483,209) $ (8,483,209) 5,330,668 $ 5,330,668
=========== ============ ============ =============
<CAPTION>
CORE FIXED INCOME FUND
------------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1997 NOVEMBER 30, 1996
------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Issued.................. 6 $ 65 0 $ 0
Reinvested.............. 60 610 123 1,254
Redeemed................ (217) (2,175) (6) (64)
----------- ------------ ------------ -------------
Net increase (decrease). (151) $ (1,500) 117 $ 1,190
=========== ============ ============ =============
SERVICE CLASS
Issued.................. 761,972 $ 7,685,718 1,192,811 $ 11,985,540
Reinvested.............. 142,902 1,444,449 233,352 2,378,592
Redeemed................ (567,761) (5,723,282) (1,215,032) (12,209,202)
----------- ------------ ------------ -------------
Net increase (decrease). 337,113 $ 3,406,885 211,131 $ 2,154,930
=========== ============ ============ =============
</TABLE>
23
<PAGE>
IBJ FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CORE EQUITY FUND
--------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1997 NOVEMBER 30, 1996
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Issued...................... 0 $ 0 0 $ 0
Reinvested.................. 163 2,268 64 816
Redeemed.................... (606) (8,910) (6) (92)
---------- ------------ ---------- ------------
Net increase (decrease)..... (443) $ (6,642) 58 $ 724
========== ============ ========== ============
SERVICE CLASS
Issued...................... 1,466,620 $ 21,842,264 2,227,903 $ 30,155,508
Reinvested.................. 775,133 10,888,578 344,448 4,339,655
Redeemed.................... (2,013,025) (30,384,062) (3,156,251) (42,895,923)
---------- ------------ ---------- ------------
Net increase (decrease)..... 228,728 $ 2,346,780 (583,900) $ (8,400,760)
========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
BLENDED TOTAL RETURN FUND
--------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1997 NOVEMBER 30, 1996
------------------------ ------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Issued...................... 0 $ 0 0 $ 0
Reinvested.................. 91 1,139 69 827
Redeemed.................... (417) (5,226) (6) (79)
---------- ------------ ---------- ------------
Net increase (decrease)..... (326) $ (4,087) 63 $ 748
========== ============ ========== ============
SERVICE CLASS
Issued...................... 576,525 $ 7,315,837 1,505,811 $ 17,930,945
Reinvested.................. 367,212 4,586,875 240,640 2,865,349
Redeemed.................... (1,398,339) (17,970,685) (1,005,584) (12,059,267)
---------- ------------ ---------- ------------
Net increase (decrease)..... (454,602) $ (6,067,973) 740,867 $ 8,737,027
========== ============ ========== ============
</TABLE>
NOTE 6 -- SUBSEQUENT EVENTS. The Trust has consummated an agreement
effective March 1, 1998 with First Data Investor Services Group, Inc. ("FDC")
whereby services currently provided to the Trust by BISYS will be provided to
the Trust by FDC and certain of its affiliates under new Administrative
Services, Transfer Agency, Distribution and Fund Accounting Agreements between
the Trust and FDC.
NOTE 7 -- FEDERAL INCOME TAX INFORMATION (UNAUDITED). During the year ended
November 30, 1997, the following Funds declared long-term capital
distributions in the following amounts:
<TABLE>
<S> <C>
Core Equity Fund..................................................... $1,891,391
Blended Total Return Fund............................................ $ 682,919
</TABLE>
For corporate shareholders, 8.07% of the total ordinary income distributions
paid during the fiscal year ended November 30, 1997 for the Blended Total
Return Fund qualifies for the corporate dividends received deduction.
24
<PAGE>
IBJ FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
At November 30, 1997, the Money Market Fund had the following capital loss
carryovers:
<TABLE>
<CAPTION>
CAPITAL LOSS EXPIRATION
CARRYOVER DATE
------------ ----------
<S> <C> <C>
Money Market Fund $2,781 2003
4,512 2004
1,260 2005
------
$8,553
======
</TABLE>
To the extent that these loss carryovers are used to offset future capital
gains, it is probable that the gains so offset will not be distributed to
shareholders. During the year, the Fixed Income Fund utilized all of its
available capital loss carryover, amounting to $45,930, to offset realized
capital gains for federal income tax purposes.
25
<PAGE>
IBJ FUNDS TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RESERVE MONEY MARKET FUND
--------------------------------------------------------------------
FOR THE FOR THE FOR THE PERIOD
YEAR ENDED YEAR ENDED FEBRUARY 1, 1995* TO
NOVEMBER 30, 1997 NOVEMBER 30, 1996 NOVEMBER 30, 1995
-------------------- -------------------- ------------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
-------- --------- -------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- --------- -------- --------- --------- ----------
Income from Investment
Operations:
Net investment income.. 0.05 0.05 0.05 0.05 0.04 0.04
-------- --------- -------- --------- --------- ----------
Total income from
investment operations.. 0.05 0.05 0.05 0.05 0.04 0.04
-------- --------- -------- --------- --------- ----------
Less Dividents from:
Net investment income.. (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
======== ========= ======== ========= ========= ==========
Total Return (a)........ 4.96% 4.96% 4.88% 4.88% 4.55% 4.55%
Ratios/Supplemental
Data:
Net Assets at end of
year (in thousands)..... $13 $25,784 $14 $34,269 $13 $28,943
Ratios to average net
assets:
Expenses before
waivers+............... 0.99% 0.99% 0.95% 0.95% 0.92%** 0.92%**
Expenses net of
waivers................ 0.64% 0.64% 0.65% 0.65% 0.64%** 0.64%**
Net investment income
(net of waivers)....... 4.84% 4.84% 4.82% 4.82% 5.40%** 5.40%**
</TABLE>
- -----------
*Commencement of operations.
**Annualized.
+ During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as 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
26
<PAGE>
IBJ FUNDS TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CORE FIXED INCOME FUND
--------------------------------------------------------------------
FOR THE FOR THE FOR THE PERIOD
YEAR ENDED YEAR ENDED FEBRUARY 1, 1995* TO
NOVEMBER 30, 1997 NOVEMBER 30, 1996 NOVEMBER 30, 1995
-------------------- -------------------- ------------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
-------- --------- -------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $10.22 $10.22 $10.72 $10.72 $10.00 $10.00
-------- --------- -------- --------- --------- ----------
Income from Investment
Operations:
Net investment income.. 0.57 0.57 0.54 0.54 0.48 0.48
Net realized and
unrealized gains
(losses) on investment
transactions........... 0.13 0.14 (0.12) (0.12) 0.72 0.72
-------- --------- -------- --------- --------- ----------
Total income from
investment operations.. 0.70 0.71 0.42 0.42 1.20 1.20
-------- --------- -------- --------- --------- ----------
Less Dividends from:
Net investment income.. (0.57) (0.57) (0.54) (0.54) (0.48) (0.48)
Realized gains......... 0.00 0.00 (0.38) (0.38) 0.00 0.00
-------- --------- -------- --------- --------- ----------
Net change in net asset
value per share........ 0.13 0.14 (0.50) (0.50) (0.48) (0.48)
-------- --------- -------- --------- --------- ----------
Net Asset Value, End of
Period.................. $10.35 $10.36 $10.22 $10.22 $10.72 $10.72
======== ========= ======== ========= ========= ==========
Total Return (a)........ 7.20% 7.20% 4.25% 4.25% 12.28% 12.28%
Ratios/Supplemental
Data:
Net Assets at End of
Year (in thousands)..... $13 $31,628 $15 $27,768 $14 $26,849
Ratios to average net
assets:
Expenses before
waivers+............... 1.17% 1.17% 1.22% 1.22% 1.22%** 1.22%**
Expenses net of
waivers................ 1.07% 1.07% 1.12% 1.12% 1.12%** 1.12%**
Net investment income.. 5.61% 5.61% 5.07% 5.07% 5.59%** 5.59%**
Portfolio Turnover Rate
(b)..................... 210% 210% 160% 160% 297% 297%
</TABLE>
- -----------
*Commencement of operations.
**Annualized.
+ During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as 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
27
<PAGE>
IBJ FUNDS TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CORE EQUITY FUND
--------------------------------------------------------------------
FOR THE FOR THE FOR THE PERIOD
YEAR ENDED YEAR ENDED FEBRUARY 1, 1995* TO
NOVEMBER 30, 1997 NOVEMBER 30, 1996 NOVEMBER 30, 1995
------------------- ------------------ ------------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
-------- --------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period...... $15.37 $15.37 $12.97 $12.97 $10.00 $10.00
-------- --------- -------- -------- --------- ----------
Income from Investment
Operations:
Net investment income... 0.35 0.35 0.14 0.14 0.13 0.13
Net realized and
unrealized gains on
investment transactions. 3.04 3.03 2.90 2.90 2.84 2.84
-------- --------- -------- -------- --------- ----------
Total income from
investment operations... 3.39 3.38 3.04 3.04 2.97 2.97
-------- --------- -------- -------- --------- ----------
Less Distributions from:
Net investment income... (.31) (.31) (0.19) (0.19) 0.00 0.00
In excess of net
investment income....... (.24) (.24) -- -- -- --
Realized gains.......... (1.53) (1.53) (0.45) (0.45) 0.00 0.00
-------- --------- -------- -------- --------- ----------
Net change in net asset
value per share......... 1.31 1.30 2.40 2.40 0.00 0.00
-------- --------- -------- -------- --------- ----------
Net Asset Value, End of
Period................... $16.68 $16.67 $15.37 $15.37 $12.97 $12.97
======== ========= ======== ======== ========= ==========
Total Return (a)......... 24.68% 24.68% 24.61% 24.61% 29.70% 29.70%
Ratios/Supplemental Data:
Net Assets at End of Year
(in thousands)........... $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% 1.09%** 1.09%**
Expenses net of waivers. 0.89% 0.89% 0.89% 0.89% 0.89%** 0.89%**
Net investment income... 0.74% 0.74% 0.93% 0.93% 1.30%** 1.29%**
Portfolio Turnover Rate
(b)...................... 44% 44% 27% 27% 37% 37%
Average Commission Rate
Paid (c)................. $0.0701 $0.0701 $0.0776 $0.0776
</TABLE>
- -----------
*Commencement of operations.
**Annualized.
+ During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as 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.
(c) Represents the dollar amount of commissions paid on portfolio transactions
divided by the total number of portfolio shares purchased and sold for
which commissions were charged and 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
28
<PAGE>
IBJ FUNDS TRUST
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BLENDED TOTAL RETURN FUND
----------------------------------------------------------------
FOR THE FOR THE FOR THE PERIOD
YEAR ENDED YEAR ENDED FEBRUARY 1, 1995* TO
NOVEMBER 30, 1997 NOVEMBER 30, 1996 NOVEMBER 30, 1995
------------------ ------------------ ------------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS
-------- -------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $12.76 $12.76 $11.78 $11.79 $10.00 $10.00
-------- -------- -------- -------- --------- ----------
Income from Investment
Operations:
Net investment income.. 0.50 0.50 0.34 0.34 0.27 0.31
Net realized and
unrealized gains on
investment
transactions........... 1.27 1.27 1.26 1.26 1.79 1.79
-------- -------- -------- -------- --------- ----------
Total income from
Investment Operations.. 1.77 1.77 1.60 1.60 2.06 2.10
-------- -------- -------- -------- --------- ----------
Less Dividends from:
Net investment income.. (0.50) (0.50) (0.35) (0.36) (0.28) (0.31)
Realized gains......... (0.52) (0.52) (0.27) (0.27) 0.00 0.00
-------- -------- -------- -------- --------- ----------
Net change in net asset
value per share........ 0.75 0.75 0.98 0.97 1.78 1.79
-------- -------- -------- -------- --------- ----------
Net Asset Value, End of
Period.................. $13.51 $13.51 $12.76 $12.76 $11.78 $11.79
======== ======== ======== ======== ========= ==========
Total Return (a)........ 14.69% 14.69% 14.08% 14.08% 20.72% 20.82%
Ratios/Supplemental
Data:
Net Assets at End of
Year (in thousands)..... $14 $61,867 $17 $64,232 $15 $50,583
Ratios to average net
assets:
Expenses before
waivers+............... 1.07% 1.07% 1.09% 1.09% 1.14%** 1.15%**
Expenses net of
waivers................ 0.97% 0.97% 0.99% 0.99% 1.04%** 1.05%**
Net investment income.. 2.91% 2.91% 2.98% 2.98% 3.04%** 3.04%**
Portfolio Turnover Rate
(b)..................... 138% 138% 77% 77% 78% 78%
Average Commission Rate
Paid (c)................ $0.0731 $0.0731 $0.0789 $0.0789 $ -- $ --
</TABLE>
- -----------
*Commencement of operations.
**Annualized.
+ During the period, certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursements had not occurred, the
ratios would have been as 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.
(c) Represents the dollar amount of commissions paid on portfolio transactions
divided by the total number of portfolio shares purchased and sold for
which commissions were charged and 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
29
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
- -------------------------------------------------------------------------------
To the Shareholders and Trustees of IBJ Funds Trust
We have audited the accompanying statements of assets and liabilities of the
IBJ Funds Trust (comprising, respectively, the IBJ Reserve Money Market Fund,
IBJ Core Fixed Income Fund (formerly the IBJ Bond Fund), IBJ Core Equity Fund,
and IBJ Blended Total Return Fund (formerly the IBJ Growth and Income Fund)),
including the schedules of portfolio investments, as of November 30, 1997, and
the related statements of operations for the year ended November 30, 1997,
statements of changes in net assets for the two years ended November 30, 1997
and 1996, and the financial highlights for the two years ended November 30,
1997 and 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 IBJ Funds 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, 1997 by correspondence with the custodian and brokers
or other auditing procedures where confirmations from brokers were not
received. 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 comprising IBJ Funds Trust as of November 30,
1997, and the results of their operations and the changes in their net assets
and the financial highlights for the periods referred to above in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND, L.L.P.
Columbus, Ohio
January 19, 1998
30
<PAGE>
IBJ FUNDS TRUST
BOARD OF TRUSTEES
George H. Stewart Stephen V.R. Goodhue
Chairman Trustee
Edward F. Ryan Robert H. Dunker
Trustee Trustee
- --------------------------------------------------------------------------------
OFFICERS
W. Anthony Turner
President
Charles L. Booth
Vice President
Georgette L. Horton
Vice President
Martin R. Dean
Treasurer
Ellen Stoutamire
Secretary
Amy Ward Kaup
Assistant Secretary
Bruce Treff
Assistant Secretary
Alaina Metz
Assistant Secretary
<PAGE>
IBJ FUNDS TRUST
Investment Advisor
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
Administrator
BISYS Fund Services Limited Partnership
3435 Stelzer Rd.
Columbus, Ohio 43219
Distributor
IBJ Funds Distributor, Inc.
3435 Stelzer Rd.
Columbus, Ohio 43219
Custodian
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
Counsel
Baker & McKenzie
805 Third Avenue
New York, New York 10022
Independent Accountants
Coopers & Lybrand L.L.P.
100 East Broad St.
Columbus, Ohio 43215
This report is for the information
of the shareholders of IBJ Funds
Trust. Its use in connection with
any offering of the Trust's shares
is authorized only in case of a
concurrent or prior delivery of the
Trust's current prospectus.
-------------------------------
IBJ FUNDS TRUST
-------------------------------
IBJ RESERVE MONEY MARKET FUND
IBJ CORE FIXED INCOME FUND
IBJ CORE EQUITY FUND
IBJ BLENDED TOTAL RETURN FUND
ANNUAL REPORT
-----------------------------------
NOVEMBER 30, 1997
-----------------------------------
These funds are not insured by IBJ
Schroder Bank & Trust Company, the
FDIC, or any other insurer, and they
may lose value.
