<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:
This annual report of the IBJ Funds Trust covers the fiscal year ended
November 30, 1998. I am pleased to report that all of the Funds performed
competitively relative to their respective benchmarks. The six-month period
since the Funds' semi-annual report, dated May 31, 1998, included a significant
increase in U.S. financial market volatility that resulted from global economic
and financial uncertainties. The environment for investing was an exceptional
challenge for portfolio managers.
ECONOMIC COMMENTARY
Throughout 1998, the domestic economy was surprisingly resilient, aided by
Fed policy. Real GDP growth persisted, on average, at a 3%+ annual rate.
However, in recent months concern has risen that 1998's pace will be
unsustainable, especially in light of the deteriorating trade balance and
weakness among many overseas economies, especially in Asia and Latin America.
The Federal Reserve Board, in anticipation of a slowdown in activity has eased
monetary policy. Despite a low domestic unemployment rate, inflation continues
at a modest rate, with oil and other commodity prices weak. Overall, we expect
the U.S. economy to continue its record of moderate real growth in 1999,
providing the financial markets reason for some optimism.
RESERVE MONEY MARKET FUND
This Fund's portfolio holds very high-quality money market instruments of
corporate, government and agency issuers. This Fund's total rate of return was
5.27% over the past twelve months, and its seven-day effective yield was 4.95%
at fiscal year end. In general, performance reflects the level and path of
3-month Treasury Bill yields, as influenced by Fed policy and money market
conditions. At this juncture, investors should expect little change in
short-term interest rates over the year ahead, although additional monetary ease
is possible in early 1999. Another major unknown is the extent to which overseas
uncertainties or any stock market weakness might favor investment in
short-maturity, dollar-denominated securities.
CORE FIXED INCOME
Fixed income securities in this Fund's portfolio include securities of
corporate, government, and agency issuers. The Fund seeks a high rate of total
return from current income and capital appreciation. For fiscal year 1998, the
Fund's total return was 9.27% which compared with 7.90% for the Morningstar
Intermediate-Term Bond benchmark for similarly-managed mutual funds. Positives
for bond prices in recent quarters include moderate domestic economic growth,
monetary policy ease, sluggish overseas economic growth (accompanied by
political and financial system uncertainties), currency (U.S. dollar strength),
subdued inflation, and a favorable trend for the U.S. budget deficit. U.S.
interest rates are at or near their multi-year lows at the present time. A
continuation of their downward trend should be more difficult in the current
fiscal year.
CORE EQUITY FUND
This Fund is invested in a diversified portfolio of the common stocks of
medium and large capitalization companies. The Fund's total return for the last
fiscal year was 17.87%, which is ahead of 17.15% for the Morningstar Large Blend
category of similarly-managed mutual funds. Leading to that relative result were
important exposures to technology, health care, and financial services stocks
that performed very well, especially toward the end of the period. The high
absolute return recorded by the Fund and the U.S. stock market in general was
due primarily to the continuation of favorable economic fundamentals together
with persistent (albeit modest) corporate profit growth. In addition, the
willingness to take incremental risk by an increasing number of investors added
to the demand for U.S. stocks. The Fund was appropriately positioned for the
relative strength of large capitalization stocks compared with small
capitalization stocks. The ability of the stock market to record lucrative gains
in the current fiscal year seems to depend most on the absence of any surprises
that might disrupt the confidence now held by investors. The valuation of stocks
is at record highs and analyst expectations for individual companies' future
earnings remain lofty. Investors should expect ongoing high volatility of share
prices.
BLENDED TOTAL RETURN FUND
This Fund is invested in a mix of stocks, fixed income securities, and
money market securities, in varying proportions, intended to provide a high rate
of total return from capital appreciation and current income. The Fund's total
return for the fiscal year was 15.98% compared with 10.14% for the Morningstar
Domestic Hybrid category of similarly-managed mutual funds. Benefiting relative
results significantly during the period was an asset allocation strategy that
kept the portfolio's exposure to stocks at a below-average level in the volatile
months from July through October. In addition, good securities selections (both
stocks and bonds) boosted the return.
Sincerely,
/s/ Charles Porten
Charles Porten
Chief Investment Officer
An investment in shares of the Trust is neither insured nor guaranteed by the
U.S. Government. There can be no assurance that the Reserve Money Market Fund
will be able to maintain a stable net asset value of $1.00 per share. Shares of
the Trust are not deposits or obligations of, or guaranteed or endorsed by, IBJ
Schroder Bank & Trust Company ("IBJS"), and are not federally insured by the
Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency, and may involve investment risk, including the possible loss
of principal.
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.
<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 $13,713 (as of November 30, 1998). The graph below
shows how this compares to our benchmark over the same period. Total return for
the Fund was 9.27% for the year ended November 30, 1998.
The Fund's 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 Fund's performance is also compared to the
Lehman Intermediate Government/Corporate Bond Index, which reflects the
performance of U.S. Treasury and Government issues with maturities of 1 to 10
years, and investment grade corporate bonds with maturities of 1 to 10 years.
The indices are unmanaged, and do 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
services. Past performance is not predictive of future results. At any time the
investment return and NAV will fluctuate, so that an investor's shares may be
worth more or less than the original cost.
IBJ Core Lehman Lehman Intermediate
Fixed Income Fund Government/Corporate Government/Corporate
Values/Yrs Service Class Bond Bond Index**
- ---------- ----------------- -------------------- --------------------
2/1/95 $10,000 $10,000 $10,000
3/95 10,320 10,301 10,265
6/95 10,780 10,969 10,778
9/95 10,931 11,179 10,956
12/95 11,359 11,700 11,342
3/96 11,133 11,426 11,247
6/96 11,130 11,480 11,318
9/96 11,286 11,682 11,519
12/96 11,612 12,039 11,801
3/97 11,513 11,935 11,787
6/97 11,903 12,370 12,135
9/97 12,313 12,803 12,463
12/97 12,646 13,214 12,729
3/98 12,825 13,414 12,928
6/98 13,122 13,765 13,171
9/98 13,741 14,447 13,763
11/98 13,713 14,430 13,748
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
AS OF NOVEMBER 30, 1998*
- --------------------------------------------------------------------------------
SINCE INCEPTION
1 YEAR 3 YEAR (2/1/95)
PREMIUM CLASS 9.27% 6.89% 8.60%
SERVICE CLASS 9.27% 6.89% 8.60%
- --------------------------------------------------------------------------------
+ Graphs for the Premium Class have been omitted as the only share activity has
been reinvestment of dividends from initial capitalization.
* Without certain fee waivers, returns would have been lower.
** The comparative index for the Core Fixed Income Fund has been changed to the
Lehman Intermediate Government/Corporate Bond Index. The duration of the
Lehman Intermediate Government/Corporate Bond Index is more representative of
the Core Fixed Income Fund.
<PAGE>
IBJ FUNDS TRUST (SERVICE CLASS)+
- --------------------------------------------------------------------------------
IBJ CORE EQUITY FUND
A $10,000 investment in the IBJ Core Equity Fund, made on the inception date,
would have increased to $23,751 ( as of November 30, 1998). The graph below
shows how this compares to our benchmark over the same period. Total return for
the Fund was 17.87% for the year ended November 30, 1998.
The Fund's performance is compared to the Standard & Poor's 500 Stock Index,
which reflects the performance of the U.S. Stock Market as a whole. The index is
unmanaged, and does not reflect the deduction 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 services.
Past performance is not predictive of future results. At any time the investment
return and NAV will fluctuate, so that an investor's shares may be worth more or
less than the original cost.
IBJ Core Equity Fund Standard & Poor's
Values/Yrs Service Class Shares 500 Stock Index
- ---------- -------------------- -----------------
2/1/95 $10,000 $10,000
3/95 10,730 10,695
6/95 11,390 11,715
9/95 12,400 12,645
12/95 13,135 13,406
3/96 14,276 14,125
6/96 14,495 14,758
9/96 14,899 15,214
12/96 15,845 16,481
3/97 16,173 16,924
6/97 18,264 19,876
9/97 19,778 21,365
12/97 20,585 21,979
3/98 22,947 25,042
6/98 22,531 25,874
9/98 20,039 23,306
11/98 23,751 26,725
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
AS OF NOVEMBER 30, 1998*
- --------------------------------------------------------------------------------
SINCE INCEPTION
1 YEAR 3 YEAR (2/1/95)
PREMIUM CLASS 17.87% 22.34% 25.36%
SERVICE CLASS 17.87% 22.34% 25.36%
- --------------------------------------------------------------------------------
+ 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.
<PAGE>
IBJ FUNDS TRUST (SERVICE CLASS)+
- --------------------------------------------------------------------------------
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 $18,335 (as of November 30, 1998). The graph below
shows how this compares to our benchmark over the same period. Total return for
the Fund was 15.98% for the year ended November 30, 1998. The Fund's 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 Lehman Intermediate Government/Corporate Bond Index, which reflects the
performance of U.S. Treasury and Government issues with maturities of 1 to 10
years, and investment grade corporate bonds with maturities of 1 to 10 years,
and the Standard & Poor's 500 Stock Index, which reflects the performance of the
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 services. Past performance is not
predictive of future results. At any time the investment return and NAV will
fluctuate, so that an investor's shares may be worth more or less than the
original cost.
Lehman
IBJ Blended Intermediate Lehman
Total Return Government/ Government/
Fund Service Standard & Poor's Corporate Corporate
Values/Yrs Class Shares 500 Stock Index Bond Index** Bond Index
- ---------- ------------ ----------------- ------------- -----------
2/1/95 $10,000 $10,000 $10,000 $10,000
3/95 10,540 10,695 10,301 10,265
6/95 11,099 11,715 10,969 10,778
9/95 11,656 12,645 11,179 10,956
12/95 12,222 13,406 11,700 11,342
3/96 12,673 14,125 11,426 11,247
6/96 12,807 14,758 11,480 11,318
9/96 13,048 15,214 11,682 11,519
12/96 13,721 16,481 12,039 11,801
3/97 13,662 16,924 11,935 11,787
6/97 17,798 19,876 12,370 12,135
9/97 15,807 21,365 12,803 12,463
12/97 16,048 21,979 13,214 12,729
3/98 17,122 25,042 13,414 12,928
6/98 17,190 25,874 13,765 13,171
9/98 16,886 23,306 14,447 13,763
11/98 18,335 26,725 14,430 13,748
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
AS OF NOVEMBER 30, 1998*
- --------------------------------------------------------------------------------
SINCE INCEPTION
1 YEAR 3 YEAR (2/1/95)
PREMIUM CLASS 15.98% 14.91% 17.16%
SERVICE CLASS 15.98% 14.91% 17.16%
- --------------------------------------------------------------------------------
+ Graphs for the Premium Class have been omitted as the only share activity has
been reinvestment of dividends from initial capitalization.
* Without certain fee waivers, returns would have been lower.
** The comparative index for the fixed income portion of the Blended Total
Return Fund has been changed to the Lehman Intermediate Government/Corporate
Bond Index. The duration of the index is more representative of the fixed
income portion of the portfolio.
<PAGE>
IBJ FUNDS TRUST
IBJ RESERVE MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
VALUE
PAR VALUE (NOTE 2)
- --------- --------
COMMERCIAL PAPER (A) - 73.00%
$ 850,000 American Express
5.450%, 01/26/99 ....................... $ 843,389
500,000 Chevron USA
5.222%, 02/05/99 ....................... 495,279
900,000 Coca-Cola Corp.
5.460%, 01/02/99 ....................... 893,713
850,000 Daimler-Benz
5.070%, 03/22/99 ....................... 836,896
850,000 Deere & Co.
5.490%, 01/14/99 ....................... 844,484
850,000 Fluor Corp.
5.520%, 01/19/99 ....................... 843,845
1,000,00 0 Ford Motor Credit
5.480%, 12/04/98 ....................... 999,549
850,000 General Electric Capital Corp.
5.510%, 01/19/99 ....................... 843,845
850,000 IBM Credit Corp.
5.510%, 01/11/99 ....................... 845,102
800,000 McGraw-Hill Co.
5.120%, 02/22/99 ....................... 790,686
900,000 Mobil Australia Fincl.
5.100%, 12/11/98 ....................... 898,742
750,000 National Rural Utilities
5.470%, 12/11/98 ....................... 748,885
850,000 PepsiCo Inc.
5.100%, 01/12/99 ....................... 845,012
950,000 Texaco, Inc.
5.490%, 12/10/98 ....................... 948,746
900,000 Weyerhauser Real Estate
5.480%, 12/02/98 ....................... 899,873
1,000,000 Xerox Credit Corp.
5.495%,12/04/98 ........................ 999,548
-------------
TOTAL COMMERCIAL PAPER ................. $ 13,577,594
(Cost $13,577,594) -------------
CREDIT VALUE
PAR VALUE RATINGS+ (NOTE 2)
- --------- -------- --------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 25.96%
FEDERAL FARM CREDIT BANK- 1.73%
322,000 4.989%, 01/04/99 ....................... AAA/Aaa 320,504
-------------
FEDERAL HOME LOAN
MORTGAGE CORPORATION- 4.00%
750,000 5.018%, 01/21/99 ....................... AAA/Aaa 744,741
-------------
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 20.23%
950,000 5.373%, 12/04/98 ....................... AAA/Aaa 949,580
250,000 4.866%, 01/21/99 ....................... AAA/Aaa 248,300
850,000 5.019%, 02/05/99 ....................... AAA/Aaa 842,286
1,750,000 4.842%, 04/01/99 ....................... AAA/Aaa 1,721,909
-------------
3,762,075
-------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS ..................... 4,827,320
(Cost $4,827,320) -------------
SHARES
INVESTMENT COMPANY - 0.61%
TempCash Provident Money Market
113,547 Investment Fund ........................ 113,547
-------------
TOTAL INVESTMENT COMPANY ............... 113,547
(Cost $113,547) -------------
TOTAL INVESTMENTS - 99.57% ............. 18,518,461
(Cost $18,518,461) -------------
OTHER ASSETS
NET OF LIABILITIES - 0.43% ............. 79,821
-------------
NET ASSETS - 100.00% ................... $ 18,598,282
=============
- ------------------
(A) Interest rate presented represents annualized yield at time of purchase.
+ See page 15 for Credit Ratings Summary
See accompanying notes to financial statements.
<PAGE>
IBJ FUNDS TRUST
IBJ CORE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS - NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
CREDIT VALUE
PAR VALUE RATINGS+ (NOTE 2)
- --------- -------- --------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 46.92%
U.S. TREASURY BONDS - 12.54%
$1,250,000 7.250%, 08/15/22 ...................... AAA/Aaa $ 1,569,950
1,350,000 6.875%, 08/15/25 ...................... AAA/Aaa 1,648,728
1,500,000 6.000%, 02/15/26 ...................... AAA/Aaa 1,649,280
-------------
4,867,958
-------------
U.S. TREASURY NOTES - 16.42%
1,000,000 6.625%, 04/30/02 ...................... AAA/Aaa 1,060,660
750,000 5.875%, 11/15/05 ...................... AAA/Aaa 802,192
1,000,000 6.875%, 05/15/06 ...................... AAA/Aaa 1,128,100
2,000,000 7.000%, 07/15/06 ...................... AAA/Aaa 2,273,960
1,000,000 6.500%, 10/15/06 ...................... AAA/Aaa 1,107,570
------------
6,372,482
------------
FEDERAL FARM CREDIT BANK - 3.13%
500,000 6.320%, 09/09/02 ...................... AAA/Aaa 522,735
500,000 6.430%, 07/23/07 ...................... AAA/Aaa 535,510
150,000 5.870%, 09/02/08 ...................... AAA/Aaa 155,625
------------
1,213,870
------------
FEDERAL HOME LOAN BANK - 1.21%
435,000 6.750%, 04/05/04 ...................... AAA/Aaa 468,799
------------
FEDERAL HOME LOAN
MORTGAGE CORPORATION - 3.40%
615,000 7.055%, 06/07/01 ...................... AAA/Aaa 616,095
635,000 6.704%, 01/09/07 ...................... AAA/Aaa 690,899
11,665 7.500%, 02/01/17 ...................... AAA/Aaa 12,106
------------
1,319,100
------------
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 5.68%
150,000 6.720%, 07/14/04 ...................... AAA/Aaa 153,631
700,000 6.540%, 10/03/05 ...................... AAA/Aaa 754,173
850,000 6.700%, 06/19/07 ...................... AAA/Aaa 925,446
358,028 8.000%, 11/01/26 ...................... AAA/Aaa 370,781
------------
2,204,031
------------
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION - 4.54%
2,146 11.500%, 04/15/10 ..................... AAA/Aaa 2,415
51,968 13.000%, 06/15/14 ..................... AAA/Aaa 60,380
71,201 13.000%, 11/15/14 ..................... AAA/Aaa 82,726
19,769 13.000%, 12/15/14 ..................... AAA/Aaa 22,969
251,629 8.000%, 07/15/26 ...................... AAA/Aaa 261,850
242,301 8.000%, 12/15/26 ...................... AAA/Aaa 252,143
62,156 8.000%, 01/15/27 ...................... AAA/Aaa 64,681
1,009,103 6.500%, 10/15/28 ...................... AAA/Aaa 1,019,506
------------
1,766,670
------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS .................... 18,212,910
(Cost $17,115,012) ------------
CORPORATE OBLIGATIONS - 50.85%
AUTOMOBILES - 4.38%
750,000 Chase Manhattan Auto Trust
6.500%, 10/15/01 ...................... AAA/Aaa 766,612
335,000 Ford Capital BV
9.875%, 05/15/02 ..................... A/A1 380,225
131,000 General Motors Acceptance Corp.
9.000%, 10/15/02 ..................... A/A2 145,901
400,000 General Motors Acceptance
Corp., Notes 7.000%, 03/01/00 ........ A/A2 407,000
------------
1,699,738
------------
BANKING - 2.16%
200,000 BankAmerica Corp., MTN
7.125%, 05/12/05 ...................... A+/Aa2 214,250
250,000 Bankers Trust Corp., NY
9.500%, 06/14/00 ...................... BBB+/A3 262,187
350,000 Swiss Bank Corp., NY
7.000%, 10/15/15 ...................... AA/Aa1 363,125
------------
839,562
------------
DURABLE GOODS - 0.73%
250,000 Whirlpool Corp., Debs.
9.000%, 03/01/03 ...................... A-/Baa1 284,062
-------------
FINANCIAL SERVICES - 8.17%
350,000 Associates Corp., N.A. Sr. Notes
7.500%, 04/15/02 ...................... AA-/Aa3 371,000
310,000 BHP Finance - USA
7.875%, 12/01/02 ...................... A/A3 327,050
250,000 Case Credit Corp., MTN-A
5.930%, 2/26/01 ....................... A-/Baa1 247,500
385,000 Commercial Credit Co., Notes
6.875%, 05/01/02 ...................... A+/A3 399,919
319,000 Dean Witter Discovery & Co., Notes
6.875%, 03/01/03 ...................... A+/A3 336,944
100,000 Discover Credit, MTN
8.540%, 12/11/01 ...................... A-/A2 105,750
500,000 Household Finance Corp.
6.450%, 03/15/01 ...................... A/A2 508,750
150,000 Lehman Brothers Holdings, Notes
6.330%, 08/01/00 ...................... A/Baa1 150,187
270,000 Lehman Brothers Holdings, Notes
8.500%, 05/01/07 ...................... A/Baa1 299,700
400,000 St. Paul Companies Inc.
6.740%, 07/18/05 ...................... A+/A1 424,000
------------
3,170,800
------------
FOOD - 2.40%
350,000 Nabisco, Inc.
6.850%, 06/15/05 ...................... BBB/Baa2 354,375
150,000 Panamerican Beverage, Inc.,
Sr. Notes 8.125%, 04/01/03 ............ BBB-/Baa3 153,750
400,000 Tyson Foods, Inc., Notes
6.625%, 10/17/05 ...................... A-/A3 422,500
------------
930,625
------------
HEALTH CARE SERVICES - 1.83%
475,000 Columbia/HCA Healthcare Corp.
6.500%, 03/15/99 ...................... BBB/Ba2 474,406
250,000 Columbia/HCA Healthcare Corp.
7.000%, 07/01/07 ...................... BBB/Ba2 236,562
------------
710,968
------------
INDUSTRIAL GOODS & SERVICES - 12.45%
135,000 ADT Operations, Sr. Sub., Notes
9.250%, 08/01/03 ...................... BBB+/Baa1 138,544
210,000 Case Corp.
7.250%, 08/01/05 ...................... A-/Baa1 227,325
325,000 Champion International Corp.
7.700%, 12/15/99 ...................... BBB/Baa1 330,687
350,000 Crown Cork & Seal Financial
6.750%, 12/15/03 ...................... BBB/Baa2 350,000
230,000 Hertz Corp.
7.000%, 05/01/02 ...................... BBB+/A3 236,325
230,000 Levis Stauss
6.800%, 11/01/03 ...................... BBB-/Baa3 238,625
467,000 Lockheed Martin Corp.
7.250%, 05/15/06 ...................... BBB+/A3 503,776
330,000 Pennzoil Co.
10.625%, 06/01/01 ..................... BBB/Ba1 338,250
275,000 Polaroid Corp.
8.000%, 03/15/99 ...................... BB-/B2 276,719
350,000 Scotts Co.
9.875%, 08/01/04 ...................... BB-/B2 371,437
225,000 Tyco International, Ltd.
8.250%, 08/01/00 ...................... A-/A3 228,656
200,000 USG Corp. Debs.
9.250%, 09/15/01 ...................... BBB/Baa3 211,750
463,000 USG Corp. Debs.
8.750%, 03/01/17 ...................... BBB/Baa3 451,425
650,000 Westinghouse Electric Corp., Notes
9.300%, 06/07/99 ...................... BBB-/Baa3 661,375
250,000 Westinghouse Electric Corp., Notes
9.400%, 01/31/01 ...................... BBB-/Baa3 266,562
------------
4,831,456
------------
OIL AND GAS - 2.61%
250,000 Amoco Canada Petroleum Co., Debs.
7.950%, 10/01/22 ...................... AAA/Aa1 274,375
101,000 Columbia Gas System
6.800%, 11/28/05 ...................... BBB+/A3 107,312
175,000 El Paso Natural Gas
7.500%, 11/15/26 ...................... BBB/Baa2 187,031
250,000 Gulf Canada Resources Ltd.,
Sub., Notes 9.625%, 07/01/05 .......... BB-/Ba2 249,375
190,000 Union Oil of California
6.700%, 10/15/07 ...................... BBB+/Baa1 196,412
------------
1,014,505
------------
STEEL - 0.95%
350,000 AK Steel Corp.
10.750%, 04/01/04 ..................... BB-/Ba2 369,250
-------------
TELECOMMUNICATIONS - 0.91%
150,000 Bellsouth Telecommunications, Inc.
6.500%, 02/01/00 ...................... AAA/Aaa 152,063
190,000 GTE Southwest, Inc.
6.540%, 12/01/05 ...................... AA-/A2 201,162
------------
353,225
------------
TRANSPORTATION - 3.68%
431,000 Canadian National Railway, Notes
7.000%, 03/15/04 ...................... BBB/Baa2 457,937
140,000 Canadian Pacific, Notes
6.875%, 04/15/03 ...................... BBB+/Baa2 146,475
350,000 Conrail, Inc., Notes
6.860%, 12/31/07 ...................... A/A1 365,568
300,000 CSX Corp.
7.000%, 09/15/02 ...................... BBB/Baa2 314,625
140,000 Union Pacific Corp.
7.375%, 05/15/01 ...................... BBB-/Baa3 145,250
------------
1,429,855
------------
UTILITIES - 10.58%
325,000 California Energy Co., Inc., Notes
10.250%, 01/15/04 ..................... BB+/Ba1 343,281
350,000 Central Power & Light Co., Notes
6.875%, 02/01/03 ...................... A/A3 371,437
220,000 Connecticut Light & Power Co., Notes
7.250%, 07/01/99 ...................... BB+/Ba2 220,275
535,000 Duquesne Light Co.
8.375%, 05/15/24 ...................... BBB+/Baa1 563,097
285,000 Hydro-Quebec, MTN
9.410%, 03/23/00 ...................... A+/A2 298,894
250,000 Hydro-Quebec, MTN
8.590%, 08/22/01 ...................... A+/A2 268,750
300,000 Illinois Power Co., Notes
6.500%, 08/01/03 ...................... BBB/Baa1 310,125
300,000 Jersey Central Power & Light Co.,
Notes 7.125%, 10/01/04 ................ A-/Baa1 323,625
400,000 National Rural Utilities, Notes
6.500%, 09/15/02 ...................... AA/Aa3 418,500
400,000 New Orleans Public Service, Inc., Notes
8.000%, 03/01/06 ...................... BBB/Baa2 418,500
100,000 Niagara Mohawk Power Corp.
9.500%, 06/01/00 ...................... BBB/Baa3 105,375
140,000 Niagara Mohawk Power Corp.
9.250%, 10/01/01 ...................... BBB/Baa3 153,125
260,000 Niagara Mohawk Power Corp. (Series E)
7.375%, 07/01/03 ...................... BB+/Baa2 266,175
40,000 Rochester Gas & Electric Corp.
9.375%, 04/01/21 ...................... A-/A3 44,400
------------
4,105,559
------------
TOTAL CORPORATE OBLIGATIONS ........... 19,739,605
(Cost $19,347,978) ------------
SHARES
- ------
INVESTMENT COMPANY - 0.13%
TempCash Provident Money Market
49,950 Investment Fund ....................... 49,950
------------
TOTAL INVESTMENT COMPANY .............. 49,950
(Cost $49,950) ------------
TOTAL INVESTMENTS - 97.90% ............ 38,002,465
(Cost $36,512,940) ------------
OTHER ASSETS
NET OF LIABILITIES - 2.10% ............ 815,143
------------
NET ASSETS - 100.00% .................. $ 38,817,608
============
- ------------------------
MTN Medium Term Note
+ See page 15 for Credit Rating Summary.
See accompanying notes to financial statements.
<PAGE>
IBJ FUNDS TRUST
IBJ CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS - NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 97.24%
AEROSPACE / DEFENSE - 1.63%
50,100 Boeing Co. ................................ $ 2,035,312
-------------
BANKING - 5.80%
50,000 BankAmerica Corp.* ........................ 3,259,375
110,000 Wells Fargo & Co.* ........................ 3,960,000
-------------
7,219,375
-------------
CHEMICALS - 2.24%
61,500 Monsanto Co. .............................. 2,786,719
-------------
COMPUTERS - 6.33%
50,000 EMC Corp./ Mass.* ......................... 3,625,000
20,000 Gateway 2000* ............................. 1,122,500
50,000 Hewlett Packard Co. ....................... 3,137,500
-------------
7,885,000
-------------
DIVERSIFIED MANUFACTURING - 6.51%
99,800 Allied Signal Corp. ....................... 4,391,200
41,000 General Electric Co. ...................... 3,710,500
-------------
8,101,700
-------------
ENTERTAINMENT - 5.89%
100,000 International Game Technology ............. 2,306,250
160,000 Mirage Resorts, Inc.* ..................... 2,380,000
25,000 Time Warner, Inc. ......................... 2,643,750
-------------
7,330,000
-------------
FINANCIAL SERVICES - 8.68%
65,000 Federal National Mortgage Association ..... 4,728,750
69,200 Household International, Inc. ............. 2,707,450
45,000 Merrill Lynch & Co. ....................... 3,375,000
-------------
10,811,200
-------------
FOOD - 2.53%
45,000 McDonald's Corp. .......................... 3,152,813
-------------
HEALTH CARE - 4.30%
30,000 Baxter International, Inc. ................ 1,906,875
50,250 Cardinal Health ........................... 3,448,406
-------------
5,355,281
-------------
HOUSEHOLD PRODUCTS - 2.06%
30,000 Colgate-Palmolive Co. ..................... 2,568,750
-------------
INSURANCE - 3.02%
40,000 American International Group, Inc. ........ 3,760,000
-------------
OIL AND GAS - 6.40%
32,500 Exxon Corp. ............................... 2,439,531
60,000 Halliburton Co. ........................... 1,762,500
30,000 Mobil Corp. ............................... 2,585,625
160,000 Newpark Resources, Inc.* .................. 1,180,000
-------------
7,967,656
-------------
PHARMACEUTICALS - 7.71%
46,000 Amgen, Inc.* .............................. 3,461,500
30,000 Bristol-Myers Squibb Co. .................. 3,676,875
22,000 Pfizer, Inc. .............................. 2,455,750
-------------
9,594,125
-------------
RETAIL - 7.41%
57,000 Costco Cos., Inc.* ........................ 3,576,750
40,000 Fred Meyer, Inc.* ......................... 2,035,000
68,000 Kroger Co.* ............................... 3,608,250
-------------
9,220,000
-------------
SEMICONDUCTORS - 13.01%
70,000 Altera Corp.* ............................. 3,434,375
33,700 Intel Corp. ............................... 3,626,963
100,000 Maxim Integrated Products, Inc.* .......... 3,925,000
25,000 Texas Instruments, Inc. ................... 1,909,375
65,000 Xilinx, Inc.* ............................. 3,298,750
-------------
16,194,463
-------------
TECHNOLOGY - 9.07%
120,000 Applied Materials, Inc.* .................. 4,650,000
90,000 Molex, Inc. ............................... 3,245,625
70,000 SCI Systems, Inc.* ........................ 3,403,750
-------------
11,299,375
-------------
TELECOMMUNICATIONS - 1.95%
30,000 Sprint Corp.(FON Group) ................... 2,182,500
15,000 Sprint Corp.(PCS Group)* .................. 240,000
-------------
2,422,500
-------------
TOBACCO - 2.70%
60,000 Philip Morris Cos., Inc. .................. 3,356,250
-------------
TOTAL COMMON STOCKS ....................... 121,060,519
(Cost $88,314,712) -------------
INVESTMENT COMPANY - 2.32%
TempCash Provident Money
2,893,796 Market Investment Fund .................... 2,893,796
-------------
TOTAL INVESTMENT COMPANY .................. 2,893,796
(Cost $2,893,796) -------------
TOTAL INVESTMENTS - 99.56% ................ 123,954,315
(Cost $91,208,508) -------------
OTHER ASSETS
NET OF LIABILITES - 0.44% ................. 548,458
-------------
TOTAL NET ASSETS - 100.00% ................ $ 124,502,773
=============
- ----------------
* Non-income producing security.
See accompanying notes to financial statements.
<PAGE>
IBJ FUNDS TRUST
IBJ BLENDED TOTAL RETURN FUND
PORTFOLIO OF INVESTMENTS - NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
VALUE
SHARES (NOTE 2)
------ --------
COMMON STOCKS - 53.97%
AEROSPACE / DEFENSE - 2.32%
18,500 Boeing Co. ................................ $ 751,563
14,200 Raytheon Co., Class B ..................... 786,325
------------
1,537,888
------------
BANKING - 3.12%
10,800 BankAmerica Corp.* ........................ 704,025
24,080 Charter One Financial, Inc. ............... 714,875
18,000 Wells Fargo & Co.* ........................ 648,000
------------
2,066,900
------------
BEVERAGES - 1.37%
23,500 PepsiCo, Inc. ............................. 909,156
------------
CHEMICALS - 2.31%
20,000 Air Products & Chemicals, Inc. ............ 762,500
17,000 Monsanto Co. .............................. 770,313
------------
1,532,813
------------
CONSUMER GOODS - 1.22%
15,400 Kimberly-Clark Corp. ...................... 810,425
------------
DIVERSIFIED MANUFACTURING - 4.39%
18,000 Allied Signal Corp. ....................... 792,000
40,000 Coltec Industries, Inc.* .................. 772,500
14,800 General Electric Co. ...................... 1,339,400
------------
2,903,900
------------
ENTERTAINMENT - 2.49%
31,000 International Game Technology ............. 714,937
20,000 Mirage Resorts, Inc.* ..................... 297,500
6,000 Time Warner, Inc. ......................... 634,500
------------
1,646,937
------------
FINANCIAL SERVICES - 0.94%
16,000 Household International, Inc.* ............ 626,000
------------
FOOD - 1.11%
12,600 Sara Lee Corp. ............................ 735,525
------------
FOOD SERVICE - 1.14%
28,000 Sysco Corp. ............................... 754,250
------------
HEALTH CARE - 1.76%
12,000 Baxter International, Inc. ................ 762,750
5,835 Cardinal Health, Inc. ..................... 400,427
------------
1,163,177
------------
HOUSEHOLD PRODUCTS - 1.03%
8,000 Colgate-Palmolive Co. ..................... 685,000
------------
INSURANCE - 2.94%
6,350 American International Group, Inc. ........ 596,900
18,400 Conseco, Inc. ............................. 609,500
5,000 Progressive Corp. ......................... 741,875
------------
1,948,275
------------
MACHINERY - 1.25%
23,200 Dover Corp. ............................... 826,500
------------
METALS - 0.96%
8,600 Aluminum Co. of America ................... 637,475
------------
OIL AND GAS - 4.26%
12,000 Exxon Corp. ............................... 900,750
12,500 Mobil Corp. ............................... 1,077,344
22,800 Newpark Resources, Inc.* .................. 168,150
20,000 Unocal Corp. .............................. 677,500
------------
2,823,744
------------
PHARMACEUTICALS - 2.38%
11,500 Amgen, Inc.* .............................. 865,375
6,400 Pfizer, Inc. .............................. 714,400
------------
1,579,775
------------
RETAIL - 2.59%
10,000 Costco Cos., Inc.* ........................ 627,500
6,000 Fred Meyer, Inc.* ......................... 305,250
14,800 Kroger Co.* ............................... 785,325
------------
1,718,075
------------
RESTAURANT - 1.17%
11,100 McDonald's Corp. .......................... 777,694
------------
TECHNOLOGY - 8.75%
22,000 Applied Materials* ........................ 852,500
11,600 Hewlett Packard Co. ....................... 727,900
7,500 Intel Corp. ............................... 807,187
19,700 Maxim Integrated Products, Inc.* .......... 773,225
25,000 Molex, Inc. ............................... 901,562
20,000 SCI Systems, Inc.* ........................ 972,500
15,000 Xilinx, Inc.* ............................. 761,250
------------
5,796,124
------------
TELECOMMUNICATIONS - 1.54%
8,000 Cincinnati Bell, Inc. ..................... 252,000
16,100 SBC Communications, Inc. .................. 771,794
------------
1,023,794
------------
TOBACCO - 1.27%
15,000 Philip Morris Cos., Inc. .................. 839,062
------------
TRANSPORTATION - 0.88%
19,300 Norfolk Southern Corp. .................... 586,237
------------
UTILITIES - 2.78%
21,600 CINergy Corp. ............................. 746,550
10,000 Duke Energy Corp. ......................... 625,625
12,500 Peoples Energy Corp. ...................... 471,094
------------
1,843,269
------------
TOTAL COMMON STOCKS ....................... 35,771,995
(Cost $28,034,639) ------------
CONVERTIBLE PREFERRED STOCK - 0.57%
TRANSPORTATION - 0.57%
12,500 Laidlaw One, Inc.
5.75%, 12/31/00 ........................... 375,000
------------
TOTAL CONVERTIBLE PREFERRED STOCK ......... 375,000
(Cost $629,781) ------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 21.30%
CREDIT
PAR VALUE RATINGS+
- --------- --------
U.S. TREASURY BONDS - 7.27%
$1,350,000 6.500%, 11/15/26 ...................... AAA/Aaa 1,583,941
1,500,000 6.625%, 02/15/27 ...................... AAA/Aaa 1,788,135
1,250,000 6.375%, 08/15/27 ...................... AAA/Aaa 1,448,187
------------
4,820,263
------------
U.S. TREASURY NOTES - 10.53%
750,000 6.375%, 03/31/01 ...................... AAA/Aaa 778,522
1,000,000 6.000%, 07/31/02 ...................... AAA/Aaa 1,044,260
1,500,000 6.500%, 05/15/05 ...................... AAA/Aaa 1,646,985
1,500,000 6.875%, 05/15/06 ...................... AAA/Aaa 1,692,150
1,600,000 7.000%, 07/15/06 ...................... AAA/Aaa 1,819,168
------------
6,981,085
------------
FEDERAL FARM CREDIT BANK - 1.13%
750,000 6.010%, 07/09/02 ...................... AAA/Aaa 750,705
------------
FEDERAL HOME LOAN BANK - 0.79%
500,000 6.040%, 02/04/08 ...................... AAA/Aaa 523,235
------------
FEDERAL HOME LOAN MORTGAGE
CORPORATION - 0.79%
500,000 6.095%, 03/01/06 ...................... AAA/Aaa 522,700
------------
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 0.66%
478 6.500%, 08/25/04 ...................... AAA/Aaa 484
400,000 6.570%, 08/22/07, MTN ................. AAA/Aaa 432,468
------------
432,952
------------
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION - 0.13%
53,036 13.000%, 03/15/12 ..................... AAA/Aaa 61,622
20,180 13.000%, 10/15/13 ..................... AAA/Aaa 23,447
------------
85,069
------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS .................... 14,116,009
(Cost $13,101,939) ------------
CORPORATE OBLIGATIONS - 16.91%
AUTOMOBILES - 1.77%
750,000 Chase Manhattan Auto Trust
6.500%, 10/15/01 ...................... AAA/Aaa 766,613
400,000 General Motors Acceptance Corp.
7.000%, 03/01/00 ...................... A/A2 407,000
------------
1,173,613
------------
BANKING - 0.75%
350,000 JP Morgan Capital Trust II
7.950%, 02/01/27 ...................... A+/A1 388,938
100,000 NBD Bancorp, Inc.
7.125%, 05/15/07 ...................... A/A1 110,625
------------
499,563
------------
ENTERTAINMENT - 0.12%
80,000 Time Warner, Inc.
7.950%, 02/01/00 ...................... BBB-/Baa3 82,300
------------
FINANCIAL SERVICES - 1.00%
250,000 BHP Finance - USA
7.875%, 12/01/02 ...................... A/A3 263,750
400,000 Lehman Brothers Holdings, Notes
6.330%, 08/01/00 ...................... A/Baa1 400,500
------------
664,250
------------
HEALTH SERVICES - 0.76%
500,000 Columbia/HCA Healthcare Corp.
9.000%, 12/15/14 ...................... BBB/Ba2 505,625
------------
INDUSTRIAL GOODS AND SERVICES - 6.11%
600,000 American Standard
10.875%, 05/15/99 ..................... BB-/Ba3 614,250
350,000 Crown Cork & Seal Fin, Yankee
6.750%, 12/15/03 ...................... BBB/Baa2 350,000
300,000 JP Foodservice, Inc.
8.875%, 11/01/03 ...................... B/B1 310,125
750,000 Scotts Co.
9.875%, 08/01/04 ...................... BB-/B2 795,937
250,000 Unisys Corp.
12.000%, 04/15/03 ..................... BB-/Ba3 280,625
795,000 USG Corp., Debs.
8.750%, 03/01/17 ...................... BBB/Baa3 775,125
350,000 Valassis Inserts, Inc.
9.375%, 03/15/99 ...................... BB+/Ba2 353,063
550,000 Westinghouse Electric Corp.
9.300%, 06/07/99 ...................... BBB-/Baa3 559,625
------------
4,038,750
------------
METALS - 1.19%
750,000 AK Steel Corp.
10.750%, 04/01/04 ..................... BB-/Ba2 791,250
------------
OIL AND GAS - 3.58%
350,000 Amoco Canada Petroleum Co.
7.950%, 10/01/22 ...................... AAA/Aa1 384,125
500,000 Ferrellgas Partnership
9.375%, 06/15/06 ...................... B+/B1 501,250
750,000 Imperial Oil Ltd.
8.750%, 10/15/19 ...................... AA+/Aa2 797,813
641,000 Occidental Petroleum Corp.
11.125%, 06/01/19 ..................... BBB/Baa2 689,075
------------
2,372,263
------------
RETAIL - 1.38%
900,000 Kroger Co.
10.000%, 05/01/99 ..................... BB+/Ba2 914,349
------------
UTILITIES - 0.25%
160,000 Duquesne Light
8.375%, 05/15/24 ...................... BBB+/Baa1 168,400
------------
TOTAL CORPORATE OBLIGATIONS ........... 11,210,363
(Cost $11,806,560) ------------
SHARES
------
SHORT-TERM INVESTMENTS - 6.69%
INVESTMENT COMPANY - 2.80%
1,854,739 TempCash Provident Money Market
Investment Fund ....................... 1,854,739
------------
PAR VALUE
DISCOUNT NOTES (A) - 3.89%
$ 1,000,000 Federal Home Loan Bank
4.846%, 01/15/99 ...................... 994,025
1,500,000 Federal Home Loan Bank
5.120%, 02/05/99 ...................... 1,486,470
100,000 Xerox Credit Group
5.497%, 12/04/98 ...................... 99,955
------------
2,580,450
------------
TOTAL SHORT-TERM INVESTMENTS .......... 4,435,189
(Cost $4,435,189) ------------
TOTAL INVESTMENTS - 99.44% ............ 65,908,556
(Cost $58,008,108) ------------
OTHER ASSETS
NET OF LIABILITES - 0.56% ............. 369,156
------------
TOTAL NET ASSETS - 100.00% ............ $ 66,277,712
============
- ------------------------
* Non-income producing security.
MTN Medium Term Note
(A) Interest rate presented represents annualized yield at time of purchase.
+ See page 15 for Credit Rating Summary
See accompanying notes to financial statements.
<PAGE>
IBJ FUNDS TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED) - NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
CREDIT RATINGS GIVEN BY STANDARD & POOR'S CORPORATION AND MOODY'S INVESTORS
SERVICES INC. (UNAUDITED)
STANDARD & POOR'S MOODY'S
-------------------------
A1 P1 Instrument of the highest quality.
AAA Aaa Instrument judged to be of the highest quality and
carrying the smallest amount of investment risk.
AA Aa Instrument judged to be of high quality by all
standards.
A A Instrument judged to be adequate by all standards.
BBB Baa Instrument judged to be of modest quality by all
standards.
BB Ba Instrument judged to have speculative elements.
B B Instrument judged to lack characteristics of the
desirable investment.
NR NR Not Rated. In the opinion of the Investment Advisor,
instrument judged to be of comparable investment
quality to rated securities which may be purchased
by the Fund.
For items possessing the strongest investment attributes of their category,
Moody's gives that letter rating followed by a number.
The Standard & Poor's rating may be modified by the addition of a plus or minus
sign to show relative standings within the major rating categories.
U.S. Government and Agency Issues have an assumed rating of AAA/Aaa.
See accompanying notes to financial statements.
<PAGE>
<TABLE>
IBJ FUNDS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
NOVEMBER 30, 1998
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
RESERVE MONEY CORE FIXED CORE EQUITY BLENDED TOTAL
MARKET FUND INCOME FUND FUND RETURN FUND
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS:
Investments at cost ........................... $ 18,518,461 $ 36,512,940 $ 91,208,508 $ 58,008,108
Net unrealized appreciation ................... -- 1,489,525 32,745,807 7,900,448
------------ ------------ ------------ ------------
Total investments at value ................. 18,518,461 38,002,465 123,954,315 65,908,556
Cash .......................................... 95,224 -- 1,101,315 125,981
Receivables:
Investments sold ........................... -- 1,040,354 512,058 --
Fund shares sold ........................... -- 3,679 33,308 21,883
Dividends and interest ..................... 1,308 604,003 87,779 450,796
Deferred organization costs ................... 6,725 6,725 6,725 6,725
Other assets .................................. 437 1,169 4,726 10,494
------------ ------------ ------------ ------------
Total Assets ............................... 18,622,155 39,658,395 125,700,226 66,524,435
------------ ------------ ------------ ------------
LIABILITIES:
Payables:
To custodian ............................... -- 10,234 -- --
Investments purchased ...................... -- 783,972 451,170 --
Fund shares repurchased .................... -- 4,978 602,939 163,572
Advisory fees .............................. -- 10,915 50,621 27,995
Administration fees ........................... 2,241 4,731 15,186 8,098
Transfer agent fee ......................... 4,378 2,619 6,685 2,877
Trustees fees .............................. 717 2,697 5,448 4,498
Accrued expenses and other payables ........... 16,537 20,641 65,404 39,683
------------ ------------ ------------ ------------
Total Liabilities .......................... 23,873 840,787 1,197,453 246,723
------------ ------------ ------------ ------------
NET ASSETS .................................... $ 18,598,282 $ 38,817,608 $124,502,773 $ 66,277,712
============ ============ ============ ============
NET ASSETS CONSIST OF:
Paid-In capital ............................... $ 18,607,082 $ 37,002,241 $ 77,116,284 $ 52,652,289
Accumulated undistributed
net investment income ...................... -- 100,752 -- 6,018
Accumulated net realized gain/(loss)
on investments sold ........................ (8,800) 225,090 14,640,682 5,718,957
Net unrealized appreciation
on investments ............................. -- 1,489,525 32,745,807 7,900,448
------------ ------------ ------------ ------------
TOTAL NET ASSETS .............................. $ 18,598,282 $ 38,817,608 $124,502,773 $ 66,277,712
============ ============ ============ ============
PREMIUM CLASS:
Net assets ................................. $ 13,669 $ 14,562 $ 17,391 $ 16,150
============ ============ ============ ============
Shares of beneficial interest outstanding .. 13,673 1,372 1,053 1,252
============ ============ ============ ============
Net asset value offering and
redemption price per share
(Net Assets/Shares Outstanding) .......... $ 1.00 $ 10.61 $ 16.52 $ 12.90
============ ============ ============ ============
SERVICE CLASS:
Net assets ................................. $ 18,584,613 $ 38,803,046 $124,485,382 $ 66,261,562
============ ============ ============ ============
Shares of beneficial interest outstanding .. 18,593,490 3,655,513 7,538,496 5,137,039
============ ============ ============ ============
Net asset value offering and
redemption price per share
(Net Assets/Shares Outstanding) .......... $ 1.00 $ 10.61 $ 16.51 $ 12.90
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS TRUST
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED NOVEMBER 30, 1998
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
RESERVE MONEY CORE FIXED CORE EQUITY BLENDED TOTAL
MARKET FUND INCOME FUND FUND RETURN FUND
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ................................... $ 1,210,543 $ 2,312,417 $ 65,843 $ 1,951,378
Dividends .................................. 20,768 24,120 1,342,223 469,801
------------ ------------ ------------ ------------
Total Income ............................. 1,231,311 2,336,537 1,408,066 2,421,179
------------ ------------ ------------ ------------
EXPENSES:
Advisory (Note 3) .......................... 77,459 182,051 670,551 378,308
Administration (Note 3) .................... 32,886 55,759 167,087 95,244
Transfer Agent (Note 3) .................... 27,674 54,723 91,662 69,263
Custody (Note 3) ........................... 2,234 4,242 46,558 11,725
Professional Fees .......................... 5,376 14,780 115,768 42,941
Trustees (Note 4) .......................... 3,108 2,372 25,997 12,148
Printing ................................... -- 459 13,242 8,264
Registration and filing fees ............... 9,390 3,426 17,073 6,054
Amortization of organization costs ......... 5,749 5,749 5,749 5,749
Miscellaneous .............................. 3,767 3,275 10,347 2,668
------------ ------------ ------------ ------------
Total expenses before waivers ............ 167,643 326,836 1,164,034 632,364
Less expenses waived (Note 3) ............ (77,459) (38,173) (112,286) (62,992)
------------ ------------ ------------ ------------
Net expenses ............................... 90,184 288,663 1,051,748 569,372
------------ ------------ ------------ ------------
NET INVESTMENT INCOME ......................... 1,141,127 2,047,874 356,318 1,851,807
------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAINS (LOSS)
ON INVESTMENTS:
Net realized gain/(loss) on
investment transactions .................... (247) 367,794 15,507,187 5,722,500
Net change in unrealized
appreciation on investments ................ -- 803,213 3,511,547 1,801,885
------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS ................. (247) 1,171,007 19,018,734 7,524,385
------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS .................. $ 1,140,880 $ 3,218,881 $ 19,375,052 $ 9,376,192
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
RESERVE MONEY MARKET FUND
-------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
NOVEMBER 30, NOVEMBER 30,
1998 1997
------------ ------------
<S> <C> <C>
INVESTMENT ACTIVITIES:
Operations:
Net investment income ........................................................ $ 1,141,127 $ 1,400,764
Net realized gain/(loss) on investment transactions .......................... (247) (1,601)
Net change in unrealized appreciation (depreciation) on investments .......... -- --
------------ ------------
Net increase in net assets resulting from operations ............................ 1,140,880 1,399,163
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Premium Class ................................................................ (677) (631)
Service Class ................................................................ (1,140,450) (1,400,133)
------------ ------------
(1,141,127) (1,400,764)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS IN EXCESS OF NET INVESTMENT INCOME:
Premium Class ................................................................ -- --
Service Class ................................................................ -- --
------------ ------------
-- --
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM REALIZED GAINS ON INVESTMENTS:
Premium Class ................................................................ -- --
Service Class ................................................................ -- --
------------ ------------
-- --
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued .................................................. 36,424,340 67,540,758
Dividends reinvested ......................................................... 1,245,201 1,294,564
Cost of shares redeemed ...................................................... (44,868,289) (77,319,264)
------------ ------------
Change in net assets from capital share transactions ............................ (7,198,748) (8,483,942)
------------ ------------
Net change in net assets ........................................................ (7,198,995) (8,485,543)
NET ASSETS:
Beginning of year ............................................................ 25,797,277 34,282,820
------------ ------------
End of year (including line A) ............................................... $ 18,598,282 $ 25,797,277
============ ============
(A) Undistributed (distribution in excess of) net investment income .......... $ -- $ --
============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
CORE FIXED CORE EQUITY BLENDED TOTAL
INCOME FUND FUND RETURN FUND
------------------------------ ----------------------------- ------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
1998 1997 1998 1997 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
$ 2,047,874 $ 1,591,376 $ 356,318 $ 728,298 $ 1,851,807 $ 1,854,818
367,794 177,278 15,507,187 17,291,184 5,722,500 9,499,637
803,213 276,460 3,511,547 3,803,831 1,801,885 (2,647,076)
------------ ------------ ------------ ------------ ------------ ------------
3,218,881 2,045,114 19,375,052 21,823,313 9,376,192 8,707,379
------------ ------------ ------------ ------------ ------------ ------------
(614) (740) (50) (175) (418) (415)
(2,053,647) (1,590,636) (355,900) (1,114,028) (1,899,280) (1,842,417)
------------ ------------ ------------ ------------ ------------ ------------
(2,054,261) (1,591,376) (355,950) (1,114,203) (1,899,698) (1,842,832)
------------ ------------ ------------ ------------ ------------ ------------
-- -- -- (135) -- --
-- -- -- (860,576) -- --
------------ ------------ ------------ ------------ ------------ ------------
-- -- -- (860,711) -- --
------------ ------------ ------------ ------------ ------------ ------------
(102) -- (2,343) (2,169) (2,110) (818)
(243,081) -- (16,713,117) (10,445,960) (9,347,592) (3,160,241)
------------ ------------ ------------ ------------ ------------ ------------
(243,183) -- (16,715,460) (10,448,129) (9,349,702) (3,161,059)
------------ ------------ ------------ ------------ ------------ ------------
9,118,310 7,685,783 22,769,953 21,842,264 6,727,596 7,315,837
2,442,821 1,445,059 18,600,734 10,890,846 11,665,161 4,588,014
(5,306,620) (5,725,457) (24,571,996) (30,392,972) (12,122,879) (17,975,911)
------------ ------------ ------------ ------------ ------------ ------------
6,254,511 3,405,385 16,798,691 2,340,138 6,269,878 (6,072,060)
------------ ------------ ------------ ------------ ------------ ------------
7,175,948 3,859,123 19,102,333 11,740,408 4,396,670 (2,368,572)
31,641,660 27,782,537 105,400,440 93,660,032 61,881,042 64,249,614
------------ ------------ ------------ ------------ ------------ ------------
$ 38,817,608 $ 31,641,660 $124,502,773 $105,400,440 $ 66,277,712 $ 61,881,042
============ ============ ============ ============ ============ ============
$ 100,752 $ 122,034 $ -- $ (860,711) $ 6,018 $ 51,339
============ ============ ============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS TRUST
FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
RESERVE MONEY MARKET FUND
--------------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
1998 1997 1996 1995*
------------------- -------------------- -------------------- ---------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ...... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- ----- -----
Income from Investment
Operations:
Net investment income ..... 0.05 0.05 0.05 0.05 0.05 0.05 0.04 0.04
----- ----- ----- ----- ----- ----- ----- -----
Less Dividends from:
Net investment income ..... (0.05) (0.05) (0.05) (0.05) (0.05) (0.05) (0.04) (0.04)
----- ----- ----- ----- ----- ----- ----- -----
NET ASSET VALUE, End of Period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== ===== ===== =====
Total Return (a) ............. 5.27% 5.27% 4.96% 4.96% 4.88% 4.88% 4.55% 4.55%
Ratios/Supplemental Data:
Net Assets at the end of
year (in thousands) ....... $ 14 $18,585 $ 13 $25,784 $ 14 $34,269 $ 13 $28,943
Ratios to average net assets:
Expenses before waivers+ .. 0.76% 0.76% 0.99% 0.99% 0.95% 0.95% 0.92%** 0.92%**
Expenses net of waivers ... 0.41% 0.41% 0.64% 0.64% 0.65% 0.65% 0.64%** 0.64%**
Net investment income
(net of waivers) ........ 5.16% 5.16% 4.84% 4.84% 4.82% 4.82% 5.40%** 5.40%**
- -----------------------------------------------------------------------------------------------------------------------------------
* Commencement of operations, February 1, 1995.
** Annualized.
+ During the period, certain fees were voluntarily reduced and/or reimbursed. If such voluntary fee reductions and/or
reimbursements had not 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.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS TRUST
FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CORE FIXED INCOME FUND
--------------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
1998 1997 1996 1995*
------------------- -------------------- -------------------- ---------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ...... $10.35 $10.36 $10.22 $10.22 $10.72 $10.72 $10.00 $10.00
------ ------ ------ ------ ------ ------ ------ ------
Income from Investment
Operations:
Net investment income ..... 0.59 0.59 0.57 0.57 0.54 0.54 0.48 0.48
Net realized and unrealized
gains (losses) on
investment transactions . 0.34 0.33 0.13 0.14 (0.12) (0.12) 0.72 0.72
------ ------ ------ ------ ------ ------ ------ ------
Total income from
investment operations ... 0.93 0.92 0.70 0.71 0.42 0.42 1.20 1.20
------ ------ ------ ------ ------ ------ ------ ------
Less Dividends from:
Net investment income ..... (0.59) (0.59) (0.57) (0.57) (0.54) (0.54) (0.48) (0.48)
Realized gains ............ (0.08) (0.08) -- -- (0.38) (0.38) -- --
------ ------ ------ ------ ------ ------ ------ ------
Total Distributions ....... (0.67) (0.67) (0.57) (0.57) (0.92) (0.92) (0.48) (0.48)
------ ------ ------ ------ ------ ------ ------ ------
Net change in net asset
value per share ........... 0.26 0.25 0.13 0.14 (0.50) (0.50) 0.72 0.72
------ ------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, End of Period $10.61 $10.61 $10.35 $10.36 $10.22 $10.22 $10.72 $10.72
====== ====== ====== ====== ====== ====== ====== ======
Total Return (a) ............. 9.27% 9.27% 7.20% 7.20% 4.25% 4.25% 12.28% 12.28%
Ratios/Supplemental Data:
Net Assets at the end of
year (in thousands) ....... $ 15 $38,803 $ 13 $31,628 $ 15 $27,768 $ 14 $26,849
Ratios to average net assets:
Expenses before waivers+ .. 0.90% 0.90% 1.17% 1.17% 1.22% 1.22% 1.22%** 1.22%**
Expenses net of waivers ... 0.80% 0.80% 1.07% 1.07% 1.12% 1.12% 1.12%** 1.12%**
Net investment income ..... 5.63% 5.63% 5.61% 5.61% 5.07% 5.07% 5.59%** 5.59%**
Portfolio Turnover Rate (b) .. 93% 93% 210% 210% 160% 160% 297% 297%
- ---------------------------------------------------------------------------------------------------------------------------
* Commencement of operations, February 1, 1995.
** Annualized.
+ During the period, certain fees were voluntarily reduced and/or reimbursed. If such voluntary fee reductions and/or
reimbursements had not 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.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS TRUST
FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
CORE EQUITY FUND
--------------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
1998 1997 1996 1995*
------------------- -------------------- -------------------- ---------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ...... $16.68 $16.67 $15.37 $15.37 $12.97 $12.97 $10.00 $10.00
------ ------ ------ ------ ------ ------ ------ ------
Income from Investment
Operations:
Net investment income ..... 0.07 0.07 0.35 0.35 0.14 0.14 0.13 0.13
Net realized and unrealized
gains on investment
transactions ............ 2.37 2.37 3.04 3.03 2.90 2.90 2.84 2.84
------ ------ ------ ------ ------ ------ ------ ------
Total income from
investment operations ... 2.44 2.44 3.39 3.38 3.04 3.04 2.97 2.97
------ ------ ------ ------ ------ ------ ------ ------
Less Distributions from:
Net investment income ..... (0.05) (0.05) (0.31) (0.31) (0.19) (0.19) -- --
In excess of net
investment income ....... -- -- (0.24) (0.24) -- -- -- --
Realized gains ............ (2.55) (2.55) (1.53) (1.53) (0.45) (0.45) -- --
------ ------ ------ ------ ------ ------ ------ ------
Total Distributions ....... (2.60) (2.60) (2.08) (2.08) (0.64) (0.64) -- --
------ ------ ------ ------ ------ ------ ------ ------
Net change in net asset
value per share ........... (0.16) (0.16) 1.31 1.30 2.40 2.40 2.97 2.97
------ ------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, End of Period $16.52 $16.51 $16.68 $16.67 $15.37 $15.37 $12.97 $12.97
====== ====== ====== ====== ====== ====== ====== ======
Total Return (a) ............. 17.87% 17.87% 24.68% 24.68% 24.61% 24.61% 29.70% 29.70%
Ratios/Supplemental Data:
Net Assets at the end of
year (in thousands) ...... $ 17 $124,485 $ 15 $105,386 $ 20 $93,640 $ 16 $86,596
Ratios to average net assets:
Expenses before waivers+ .. 1.04% 1.04% 0.99% 0.99% 0.99% 0.99% 1.09%** 1.09%**
Expenses net of waivers ... 0.94% 0.94% 0.89% 0.89% 0.89% 0.89% 0.89%** 0.89%**
Net investment income ..... 0.32% 0.32% 0.74% 0.74% 0.93% 0.93% 1.30%** 1.29%**
Portfolio Turnover Rate (b) .. 92% 92% 44% 44% 27% 27% 37% 37%
- ----------------------------------------------------------------------------------------------------------------------------------
* Commencement of operations, February 1, 1995.
** Annualized.
+ During the period, certain fees were voluntarily reduced and/or reimbursed. If such voluntary fee reductions and/or
reimbursements had not 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.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS TRUST
FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
BLENDED TOTAL RETURN FUND
--------------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
1998 1997 1996 1995*
------------------- -------------------- -------------------- ---------------------
PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE PREMIUM SERVICE
CLASS CLASS CLASS CLASS CLASS CLASS CLASS CLASS
----- ----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ...... $13.51 $13.51 $12.76 $12.76 $11.78 $11.79 $10.00 $10.00
------ ------ ------ ------ ------ ------ ------ ------
Income from Investment
Operations:
Net investment income ..... 0.38 0.38 0.50 0.50 0.34 0.34 0.27 0.31
Net realized and unrealized
gains on investment
transactions ............ 1.41 1.41 1.27 1.27 1.26 1.26 1.79 1.79
------ ------ ------ ------ ------ ------ ------ ------
Total income from
investment operations ... 1.79 1.79 1.77 1.77 1.60 1.60 2.06 2.10
------ ------ ------ ------ ------ ------ ------ ------
Less Dividends from:
Net investment income ..... (0.38) (0.38) (0.50) (0.50) (0.35) (0.36) (0.28) (0.31)
Realized gains ............ (2.02) (2.02) (0.52) (0.52) (0.27) (0.27) -- --
------ ------ ------ ------ ------ ------ ------ ------
Total Distributions ....... (2.40) (2.40) (1.02) (1.02) (0.62) (0.63) (0.28) (0.31)
------ ------ ------ ------ ------ ------ ------ ------
Net change in net asset
value per share ........... (0.61) (0.61) 0.75 0.75 0.98 0.97 1.78 1.79
------ ------ ------ ------ ------ ------ ------ ------
NET ASSET VALUE, End of Period $12.90 $12.90 $13.51 $13.51 $12.76 $12.76 $11.78 $11.79
====== ====== ====== ====== ====== ====== ====== ======
Total Return (a) ............. 15.98% 15.98% 14.69% 14.69% 14.08% 14.08% 20.72% 20.82%
Ratios/Supplemental Data:
Net Assets at the end of
year (in thousands) ....... $ 16 $66,262 $ 14 $61,867 $ 17 $64,232 $ 15 $50,583
Ratios to average net assets:
Expenses before waivers+ .. 1.01% 1.01% 1.07% 1.07% 1.09% 1.09% 1.14%** 1.15%**
Expenses net of waivers ... 0.91% 0.91% 0.97% 0.97% 0.99% 0.99% 1.04%** 1.05%**
Net investment income ..... 2.95% 2.95% 2.91% 2.91% 2.98% 2.98% 3.04%** 3.04%**
Portfolio Turnover Rate (b) .. 76% 76% 138% 138% 77% 77% 78% 78%
- ---------------------------------------------------------------------------------------------------------------------------
* Commencement of operations, February 1, 1995.
** Annualized.
+ During the period, certain fees were voluntarily reduced and/or reimbursed. If such voluntary fee reductions and/or
reimbursements had not 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.
</TABLE>
<PAGE>
IBJ FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED NOVEMBER 30, 1998
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION. IBJ Funds Trust (the "Trust") is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
diversified management investment company and currently consists of four
separate investment portfolios: IBJ Reserve Money Market Fund, IBJ Core Fixed
Income Fund, IBJ Core Equity Fund and IBJ Blended Total Return Fund
(individually, a "Fund", and collectively, the "Funds"), each with two classes
of shares known as the Premium Class and the Service Class. Each class of shares
outstanding bears the same voting, dividend, liquidation and other rights and
conditions, except that the expenses incurred in the distribution and marketing
of such shares are different for each class. The Premium Class may be subject to
a 12b-1 fee of up to 0.35% of average daily net assets and a shareholder
servicing fee of up to 0.50% of average daily net assets. Currently, the 12b-1
and shareholder servicing fees are not being charged. The Service Class will not
be subject to such fees.
The investment objectives of the Reserve Money Market Fund ("Money Market Fund")
are current income, liquidity and the maintenance of a stable $1.00 net asset
value per share by investing in high quality, U.S. dollar-denominated short-term
obligations which are determined by the investment adviser to present minimal
credit risks.
The investment objective of the Core Fixed Income Fund ("Fixed Income Fund") is
to provide a high total return (appreciation plus current income) by investing
at least 65% of its total assets in bonds such as U.S. Government securities,
corporate bonds, asset-backed securities (including mortgage-backed securities),
savings and loan and U.S. and foreign bank obligations, commercial paper, and
related repurchase agreements.
The objective of the Core Equity Fund ("Core Equity Fund") is to seek long-term
capital appreciation through investment in a diversified portfolio of common
stock (and securities convertible into common stock) of publicly traded,
established companies.
The objective of the Blended Total Return Fund ("Blended Total Return Fund") is
to provide investors with long-term capital appreciation and current income for
high total return by investing in a balance of equities and debt securities.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the
significant accounting policies followed by the Funds in the preparation of the
financial statements. The policies are in conformity with generally accepted
accounting principles. The preparation of financial statements requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates.
(a) Portfolio Valuations: The net asset value per share of the Funds is
calculated as of 12:00 noon (Eastern time) for the Money Market Fund
and as of 4:00 p.m. (Eastern time) for each of the non-money market
funds. Securities listed on an exchange are valued on the basis of the
last sale prior to the time the valuation is made. If there has been no
sale since the immediately previous valuation, then the current bid
price is used. Quotations are taken from the exchange where the
security is primarily traded. Portfolio securities which are primarily
traded on foreign exchanges may be valued with the assistance of a
pricing service and are generally valued on the basis of the bid price
at the close of business on each business day. Securities for which
market quotations are not readily available are valued at fair value as
determined in good faith by or at the direction of the Board of
Trustees. The Money Market Fund uses the amortized cost method to value
its portfolio securities, in accordance with Rule 2a-7 under the 1940
Act, as amended, and seeks to maintain a constant net asset value of
$1.00 per share, although there may be circumstances under which this
goal cannot be achieved. The amortized cost method involves valuing a
security at its cost and amortizing any discount or premium over the
period until maturity, regardless of the impact of fluctuating interest
rates on the market value of the security.
(b) Securities Transactions and Related Income: The Funds record
security transactions on a trade date basis. Interest income, including
accretion of discount and amortization of premium, is accrued daily.
Dividend income is recognized on the ex-dividend date. Realized gains
and losses from security transactions are recorded on an identified
cost basis.
(c) Expenses: The Trust accounts separately for the assets, liabilities
and operations of each Fund. Direct expenses of a Fund are charged to
that Fund, while general Trust expenses are allocated proportionately
among each Fund within the Trust in relation to the net assets of each
Fund or on another reasonable basis. The investment income and expense
of a Fund (other than class specific expenses) and realized and
unrealized gains and losses on investments of a Fund are allocated to
each class of shares based upon their relative net asset value on the
date income is earned or expenses and realized and unrealized gains and
losses are incurred. Costs incurred in connection with the organization
and initial registration of the Funds have been deferred and are being
amortized on a straight-line basis over sixty months beginning with
each Fund's commencement of operations. In the event any of the initial
shares of any of the Funds are redeemed, the redemption proceeds will
be reduced by the amount of any unamortized organization expenses in
the same proportion as the number of shares redeemed bears to the
number of initial shares held at the time of redemption.
(d) Dividends and Distributions to Shareholders: The Money Market and
Fixed Income Funds' net investment income is declared daily and paid
monthly. The Core Equity Fund's net investment income is declared and
paid annually. The Blended Total Return Fund's net investment income is
declared and paid quarterly. Net realized gains on portfolio
securities, if any, are distributed at least annually by each Fund.
However, to the extent net realized gains can be offset by capital loss
carryover, such gains will not be distributed. Dividends and
distributions are recorded by the Funds on the ex-dividend date.The
amount of dividends from net investment income and distributions from
net realized gains are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting
principles. These book/tax differences are either considered temporary
or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the composition of net
assets based on their federal tax-basis treatment; temporary
differences do not require reclassification. Dividend and distributions
which exceed net investment income and net realized capital gains for
financial reporting purposes but not for tax purposes are reported as
dividends in excess of net investment income or distributions in excess
of net realized gains. Permanent book/tax differences are primarily
attributable to market discount, redesignation of distributions and
paydowns.
(e) Federal Income Taxes: It is the Funds' policy to continue to comply
with the requirements of Subchapter M of the Internal Revenue Code
applicable to regulated investment companies and to distribute timely
all of their net investment company taxable income and net capital
gains to shareholders. Therefore, no federal income tax provision is
required.
NOTE 3 - AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES. The Trust, on behalf
of each Fund, has entered into investment advisory agreements (the "Advisory
Agreements") with IBJ Schroder Bank & Trust Company (the "Advisor" or "IBJS").
Pursuant to the terms of the Advisory Agreements, the Advisor is entitled to a
fee that is calculated daily and paid monthly based on the average daily net
assets of each Fund, at the annual rate of: 0.35% for the Money Market Fund;
0.50% for the Core Fixed Income Fund; 0.60% for the Core Equity Fund; and 0.60%
for the Blended Total Return Fund. For the year ended November 30, 1998, the
Advisor earned fees of $77,459, $182,051, $670,551 and $378,308 for the Money
Market Fund, the Core Fixed Income Fund, the Core Equity Fund and the Blended
Total Return Fund, respectively. The Advisor has voluntarily waived fees of
$77,459, $38,173, $112,286 and $62,992 for the Money Market Fund, the Core Fixed
Income Fund, the Core Equity Fund and the Blended Total Return Fund,
respectively. IBJS also serves as custodian for all the Funds.
In September 1998, IBJS entered into a Co-Administration Services Contract with
the Trust. Under this contract, IBJS performs supplemental administrative
services, including (i) supervising the activities of First Data Investor
Services Group, Inc. ("Investor Services Group"), a wholly-owned subsidiary of
First Data Corporation, and the Funds' other service providers, (ii) serving as
liason with the Trustees and (iii) providing general product management and
oversight to the extent not provided by Investor Services Group. In
consideration of IBJS's services under this contract, the Trust pays IBJS a
monthly fee with respect to each Fund at an annual rate of 0.03% of the average
daily value of the net assets of the Fund during the preceeding month.
Effective March 1, 1998, the Trust and Investor Services Group, became parties
to an administration agreement under which Investor Services Group
(Administrator) provides services for a fee, computed daily and paid monthly, at
the annual rate of 0.15% of average daily net assets of each Fund up to $500
million; 0.10% of average daily net assets of each Fund in excess of $500
million up to $1 billion; 0.075% of average daily net assets of each Fund in
excess of $1 billion. The services are subject to the supervision of the Trust's
Board of Trustees and officers and include the day-to-day administration of
matters related to the corporate existence of the Trust, maintenance of its
records, preparation of reports, supervision of the Trust's arrangements with
its custodian and assistance in the preparation of the Trust's registration
statements under federal and state laws. Prior to March 1, 1998, BISYS Fund
Services, Inc. provided these services for a monthly fee which was calculated on
an annualized basis not to exceed 0.15% of the average daily net assets of the
Trust.
In addition, Investor Services Group also provides certain fund accounting and
related services. For these services, Investor Services Group is paid an annual
fee of $35,000 per Fund plus $5,000 for each additional class of shares. Prior
to March 1, 1998, BISYS Fund Services, Inc. provided these services to the
Funds.
The Investor Services Group also serves as transfer agent for the Funds pursuant
to a Transfer Agency and Services Agreement with the Trust effective March 1,
1998. The fee for this service is $20,000 per Fund plus reimbursement of certain
out-of-pocket expenses. Prior to March 1, 1998, BISYS Fund Services, Inc. served
as transfer agent for the Funds.
First Data Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary of
Investor Services Group and an indirect wholly-owned subsidiary of First Data
Corporation, serves as the distributor of the Trust's shares. Prior to March 1,
1998, IBJ Funds Distributor, Inc. provided these services to the Funds.
The Trust has adopted a distribution and service plan pursuant to Rule 12b-1
under the 1940 Act, as amended, for the Premium Class of Shares of each Fund of
the Trust. There were no fees or expenses charged to the Trust under the Plan.
The Distributor serves as the exclusive distributor of the shares of each Fund
pursuant to its Distribution Agreement with the Trust.
NOTE 4 -- TRUSTEE COMPENSATION. The Trust pays each unaffiliated Trustee or
Director an annual fee of $5,000 ($7,000 for the Chairman of the Board), plus a
fee of $500 for each Board of Trustees meeting and $500 for each Board committee
meeting of the Trust. The Trust also reimburses expenses incurred by each
unaffiliated Trustee or Director in attending such meetings. Trustees who are
affiliated receive no compensation from the Trust.
NOTE 5 - SECURITIES TRANSACTIONS. For the year ended November 30, 1998, the cost
of purchases and the proceeds from sales of the Funds' portfolio securities
(excluding short-term investments), amounted to the following:
<TABLE>
<CAPTION>
PURCHASES SALES
--------- -----
<S> <C> <C>
Core Fixed Income Fund ................................................ $ 39,032,384 $ 32,793,302
Core Equity Fund ...................................................... 100,420,739 111,459,659
Blended Total Return Fund ............................................. 44,813,997 51,092,794
</TABLE>
The aggregate gross unrealized appreciation and depreciation, net unrealized
appreciation (depreciation) and cost for all securities as computed on a federal
income tax basis, at November 30, 1998 for each Fund is as follows:
<TABLE>
<CAPTION>
NET
GROSS GROSS APPRECIATION/
APPRECIATION (DEPRECIATION) (DEPRECIATION) COST
------------ -------------- -------------- ----
<S> <C> <C> <C> <C>
Reserve Money Market Fund ........ $ -- $ -- $ -- $ 18,518,461
Core Fixed Income Fund ........... 1,575,098 (92,596) 1,482,502 36,519,963
Core Equity Fund ................. 35,387,215 (2,641,408) 32,745,807 91,208,508
Blended Total Return Fund ........ 9,167,630 (1,273,782) 7,893,848 58,014,708
</TABLE>
NOTE 6 - CAPITAL SHARE TRANSACTIONS. The Trust is authorized to issue an
unlimited number of shares of beneficial interest with a par value of $0.001
each. Transactions in shares of the Funds are as follows:
<TABLE>
<CAPTION>
RESERVE MONEY MARKET FUND
--------------------------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1998 NOVEMBER 30, 1997
----------------------------- -----------------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Issued ................................. -- $ -- -- $ --
Reinvested ............................. 737 737 576 576
Redeemed ............................... -- -- (1,309) (1,309)
----------- ------------ ----------- ------------
Net increase/(decrease) ................ 737 $ 737 (733) $ (733)
=========== ============ =========== ============
SERVICE CLASS
Issued ................................. 36,424,340 $ 36,424,340 67,540,758 $ 67,540,758
Reinvested ............................. 1,244,464 1,244,464 1,293,988 1,293,988
Redeemed ............................... (44,868,289) (44,868,289) (77,317,955) (77,317,955)
----------- ------------ ----------- ------------
Net decrease ........................... (7,199,485) $ (7,199,485) (8,483,209) $ (8,483,209)
=========== ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
CORE FIXED INCOME FUND
--------------------------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1998 NOVEMBER 30, 1997
----------------------------- -----------------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Issued ................................. -- $ -- 6 $ 65
Reinvested ............................. 91 984 60 610
Redeemed ............................... -- -- (217) (2,175)
----------- ------------ ----------- ------------
Net increase/(decrease) ................ 91 $ 984 (151) $ (1,500)
=========== ============ =========== ============
SERVICE CLASS
Issued ................................. 865,700 $ 9,118,310 761,972 $ 7,685,718
Reinvested ............................. 234,260 2,441,837 142,902 1,444,449
Redeemed ............................... (498,022) (5,306,620) (567,761) (5,723,282)
----------- ------------ ----------- ------------
Net increase ........................... 601,938 $ 6,253,527 337,113 $ 3,406,885
=========== ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
CORE EQUITY FUND
--------------------------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1998 NOVEMBER 30, 1997
----------------------------- -----------------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Issued ................................. -- $ -- -- $ --
Reinvested ............................. 182 2,884 163 2,268
Redeemed ............................... -- -- (606) (8,910)
----------- ------------ ----------- ------------
Net increase/(decrease) ................ 182 $ 2,884 (443) $ (6,642)
=========== ============ =========== ============
SERVICE CLASS
Issued ................................. 1,473,105 $ 22,769,953 1,466,620 $ 21,842,264
Reinvested ............................. 1,293,470 18,597,850 775,133 10,888,578
Redeemed ............................... (1,548,197) (24,571,996) (2,013,025) (30,384,062)
----------- ------------ ----------- ------------
Net increase ........................... 1,218,378 $ 16,795,807 228,728 $ 2,346,780
=========== ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
BLENDED TOTAL RETURN FUND
--------------------------------------------------------------------
YEAR ENDED YEAR ENDED
NOVEMBER 30, 1998 NOVEMBER 30, 1997
----------------------------- -----------------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Issued ................................. -- $ -- -- $ --
Reinvested ............................. 228 2,656 91
1,139
Redeemed ............................... -- -- (417) (5,226)
---------- ------------ ---------- ------------
Net increase/(decrease) ................ 228 $ 2,656 (326) $ (4,087)
=========== ============ =========== ============
SERVICE CLASS
Issued ................................. 539,674 $ 6,727,596 576,525 $ 7,315,837
Reinvested ............................. 1,001,007 11,662,505 367,212 4,586,875
Redeemed ............................... (982,001) (12,122,879) (1,398,339) (17,970,685)
----------- ------------ ----------- ------------
Net increase/(decrease) ................ 558,680 $ 6,267,222 (454,602) $ (6,067,973)
=========== ============ =========== ============
</TABLE>
NOTE 7 -- CAPITAL LOSS CARRYOVERS AND POST OCTOBER LOSSES. At November 30, 1998,
the Money Market Fund had the following capital loss carryovers:
CAPITAL LOSS EXPIRATION
CARRYOVER DATE
------------ ----------
Money Market Fund $ 2,781 2003
4,512 2004
1,260 2005
247 2006
-----------
$ 8,800
===========
Any net capital and currency losses incurred after October 31, within each
Fund's tax year, are deemed to arise on the first day of the Fund's next tax
year if the Fund so elects to defer such losses. As of November 30, 1998, the
Core Fixed Income Fund incurred and elected to defer $21,807.
NOTE 8 -- SUBSEQUENT EVENT Effective January 1, 1999, IBJ Schroder Bank & Trust
Company, the Investment Adviser, will change its name to IBJ Whitehall Bank &
Trust Company ("IBJW"). IBJW is a wholly owned subsidiary of The Industrial Bank
of Japan, Limited.
NOTE 9 - FEDERAL INCOME TAX INFORMATION (UNAUDITED) During the year ended
November 30, 1998, the following Funds declared long-term capital distributions
in the following amounts:
Core Equity Fund ......................................... $ 10,945,952
Blended Total Return Fund ................................ 7,000,935
For corporate shareholders, 19.18% and 11.04% of the total ordinary income
distributions paid during the fiscal year ended November 30, 1998 for the Core
Equity and Blended Total Return Fund, respectively, qualifies for the corporate
dividends received deduction.
NOTE 10 -- YEAR 2000 (UNAUDITED) The Funds could be adversely affected if the
computer systems used by the Investment Advisor and the Fund's other service
providers do not properly process and calculate date-related information from
and after January 1, 2000. The Investment Advisor is working to avoid Year
2000-related problems in its systems and to obtain assurances from other service
providers that they are taking similar steps. In addition, issuers of securities
in which the Fund invests may be adversely affected by Year 2000-related
problems. This could have an impact on the value of the Fund's investments and
its share price.
NOTE 11 -- CHANGE OF INDEPENDENT ACCOUNTANT (UNAUDITED) During the fiscal year
the Board of Trustees of the Funds approved a change of the Funds Independent
Accountants to Ernst & Young LLP.
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Trustees
IBJ Funds Trust
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of IBJ Funds Trust (comprising, respectively, the
IBJ Reserve Money Market Fund, IBJ Core Fixed Income Fund, IBJ Core Equity Fund,
and IBJ Blended Total Return Fund, collectively, the "Trust") as of November 30,
1998, and the related statements of operations, the statements of changes in net
assets, and the financial highlights for the year then ended. These financial
statements and financial highlights are the responsibility of the Trust's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audit. The statement of changes
in net assets of the Trust for the year ended November 30, 1997 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,
were audited by other auditors whose report dated January 19, 1998, expressed an
unqualified opinion on those statements.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in financial statements and
financial highlights. Our procedures included verification by examination of
securities held by the custodian as of November 30, 1998 and confirmation of
securities not held by the custodian by correspondence with brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective funds comprising IBJ Funds Trust at November 30, 1998, the
results of their operations, changes in their net assets and the financial
highlights for the year then ended, in conformity with generally accepted
accounting principles.
/s/ Ernst & Young LLP
New York, New York
January 6, 1999
<PAGE>
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<PAGE>
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<PAGE>
IBJ FUNDS TRUST
BOARD OF TRUSTEES
George H. Stewart Stephen V.R. Goodhue
Chairman Trustee
Edward F. Ryan Robert H. Dunker
Trustee Trustee
- --------------------------------------------------------------------------------
OFFICERS
Jylanne M. Dunne
President
William J. Greilich
Vice President
Brian R. Curran
Treasurer
Joseph J. Wencus
Assistant Treasurer
Linda J. Hoard
Secretary
Therese Hogan
Assistant Secretary
Elizabeth A. Russell
Assistant Secretary
<PAGE>
IBJ FUNDS TRUST
Investment Advisor
- ------------------
IBJ Schroder Bank & Trust Company
One State Street
New York, New York 10004
Administrator
- -------------
First Data Investor Services Group, Inc.
4400 Computer Drive
Westborough, MA 01581
Distributor
- -----------
First Data Distributors, Inc.
4400 Computer Drive
Westborough, MA 01581
Custodian
- ---------
IBJ Schroder Bank & Trust Company
One State Street
New York, NY 10004
Counsel
- -------
Paul, Weiss, Rifkind, Wharton & Garrison
1285 Sixth Avenue
New York, New York 10019
Independent Accountants
- -----------------------
Ernst & Young LLP
787 Seventh Avenue
New York, New York 10019
This report is for the information of the shareholders of IBJ Funds Trust. Its
use in connection with any offering of the Trust's shares is authorized only in
case of a concurrent or prior delivery of the Trust's current prospectus.
---------------
IBJ FUNDS TRUST
---------------
IBJ RESERVE MONEY MARKET FUND
IBJ CORE FIXED INCOME FUND
IBJ CORE EQUITY FUND
IBJ BLENDED TOTAL RETURN FUND
ANNUAL REPORT
-----------------
NOVEMBER 30, 1998
-----------------
Mutual fund shares are not deposits or obligations of, or guaranteed by, any
depository institution. Shares are not insured by the FDIC, Federal Reserve
Board or any other agency, and are subject to investment risks, including
possible loss of principal amount invested.
