<PAGE>
IBJ FUNDS TRUST
IBJ RESERVE MONEY MARKET FUND
IBJ CORE FIXED INCOME FUND
IBJ CORE EQUITY FUND
IBJ BLENDED TOTAL RETURN FUND
Dear Shareholder:
The Semi-Annual Report of the IBJ Funds Trust covers the six months ended
May 31, 1999.
ECONOMIC COMMENTARY
Economic activity in the first half of 1999 continues to show considerable
strength with real GDP growing at 4.1% for the first three months. This follows
the 6.0% advance in the closing quarter of 1998. Stronger chain store, auto and
new home sales drove business activity as consumer spending clearly benefited
from unexpected strength in tax refunds in May and rising consumer confidence.
Productivity advances continue ahead of consensus expectations, providing the
catalyst for further above-trendline-growth through the remainder of the year.
Inflation has shown a modest pickup in the early stages of 1999 due to firming
commodity prices, tightening of labor markets, and the resiliency of U.S.
economic expansion. Nevertheless, we believe the CPI should advance by only 2.0%
as corporate restructuring and uneven economic growth throughout the world mute
inflationary pressures. Capital spending patterns over the past few years are
resulting in sharply rising levels of productivity. These gains have, in turn,
heightened U.S. domestic profitability. We believe that this model for growth
remains fundamentally in place and should propel economic expansion well into
the new millennium.
RESERVE MONEY MARKET FUND
The Fund holds investments in very high-quality money market instruments of
government, agency and corporate issuers. For the past six months, the Fund's
total rate of return of 2.2% was commensurate with returns from 3 month Treasury
Bills. The seven-day effective yield as of May 31, 1999, was 4.3%. The Federal
Reserve has given indications of moving toward a tighter monetary policy. Strong
levels of real economic activity and the release of consumer prices for April
have created concern about the future of short-term interest rates.
CORE FIXED INCOME
The Fund holds a diversified portfolio of intermediate and longer term
fixed income securities of government, agency and corporate issuers and seeks to
provide a high rate of return from both current income and capital appreciation.
For the six months ended May 31, 1999, the total rate of return for the Fund was
- -1.7%, which compares to -1.7% for the Lehman Government/Corporate Bond Index.
As interest rates have risen on 2 to 30 year issues over the past six months,
bond price declines have more than offset interest income as the yield curve has
discounted anticipated future Federal Reserve tightening.
CORE EQUITY FUND
The Fund is invested in a broadly diversified portfolio of medium and
larger capitalization U.S. companies. During the past six months, the Fund's
total rate of return was 16.9%, compared to 12.6% for the Standard and Poor's
500 Index and 11.2% for the Morningstar Large Blend Average. Contributing to the
Fund's superior performance were its holdings of technology issues, such as
semiconductor manufacturers, that benefited from the stronger than expected
domestic economic growth. Stocks of stable growth companies, such as
pharmaceutical companies, as well as financial companies were adversely affected
by rising interest rates. We remain constructive on the U.S. equity market
reflecting the favorable environment of strong economic growth and mild
inflationary pressures.
BLENDED TOTAL RETURN FUND
The Fund is invested in a diversified mix of stocks, bonds and cash
equivalents to provide a combination of capital growth and current income.
During the past six month period, the Fund's total rate of return was 4.5%,
compared to 12.6% for the Standard and Poor's 500 Index and -1.7% for the Lehman
Government/Corporate Bond Index. The Fund maintained a somewhat conservative
asset mix, with a lower exposure to stocks than its peer group. We ended the
period with a slightly increased exposure to equities and towards the end of the
period, we shifted a modest amount of assets from bonds into cash equivalents.
Sincerely,
/s/ Michael Felson
Michael Felson
Chief Investment Officer
The views expressed in this report reflect those of the portfolio managers only
through the end of the period of the report as stated on the cover. The views
contained herein are subject to change at any time based on market and other
conditions.
An investment in shares of the Trust is neither insured nor guaranteed by the
FDIC or the U.S. Government. Although the Reserve Money Market Fund seeks to
preserve the value of your investment at $1.00 per share, it is possible to lose
money by investing in the Fund. Shares of the Trust are not deposits or
obligations of, or guaranteed or endorsed by, IBJ Whitehall Bank & Trust Company
("IBJW"), 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.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
<PAGE>
<TABLE>
IBJ FUNDS TRUST
RESERVE MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) - MAY 31, 1999
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
PAR VALUE VALUE
- --------- -----
COMMERCIAL PAPER (A) - 66.91%
<S> <C> <C>
$ 700,000 AI Credit Corp. 4.770%, 06/09/99 ....................................... $ 699,258
700,000 Abbott Laboratories 4.740%, 06/03/99 ................................... 699,816
800,000 American Express Credit 4.790%, 07/12/99 ............................... 795,636
800,000 Bayer Corp. 4.760%, 07/20/99 ........................................... 794,817
700,000 BellSouth Capital Funding Corp. 4.760%, 06/11/99 (B) ................... 699,075
800,000 British Gas Capital, Inc. 4.900%, 08/18/99 ............................. 791,507
800,000 Brown-Forman Corp. 4.850%, 08/23/99 (B) ................................ 791,054
800,000 Canadian Wheat Board 4.810%, 06/21/99 .................................. 797,862
800,000 DaimlerChrysler, N.A. Holding Corp. 4.820%, 08/02/99 ................... 793,359
800,000 Deere & Co. 4.810%, 06/01/99 ........................................... 800,000
700,000 Fluor Corp. 4.790%, 07/09/99 (B) ....................................... 696,845
700,000 Ford Motor Credit Co. 4.790%, 07/19/99 ................................. 695,529
800,000 General Electric Capital Corp. 4.810%, 07/09/99 ........................ 795,938
700,000 General Motors Acceptance Corp. 4.770%, 07/16/99 ....................... 695,826
800,000 IBM Credit Corp. 4.750%, 07/12/99 ...................................... 795,672
800,000 McGraw-Hill Cos. 4.820%, 06/14/99 ...................................... 798,608
700,000 National Rural Utilities Cooperative Finance Corp. 4.760%, 06/17/99 .... 698,519
700,000 Pfizer, Inc. 4.750%, 06/17/99 (B) ...................................... 698,522
800,000 Texaco, Inc. 4.810%, 06/09/99 .......................................... 799,145
800,000 Weyerhaeuser Real Estate 4.850%, 06/07/99 .............................. 799,353
800,000 Wisconsin Electric Fuel Trust 4.850%, 07/15/99 ......................... 795,258
-----------
TOTAL COMMERCIAL PAPER ................................................. 15,931,599
(Cost $15,931,599) -----------
<CAPTION>
CREDIT
RATINGS
-------
U.S. AGENCY OBLIGATIONS (A) - 30.01%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 24.61%
<S> <C> <C> <C>
$ 500,000 4.760%, 06/16/99 ....................................... AAA/Aaa $ 499,008
1,400,000 4.734%, 06/21/99 ....................................... AAA/Aaa 1,396,318
1,500,000 4.700%, 06/22/99 ....................................... AAA/Aaa 1,495,888
1,300,000 4.760%, 06/29/99 ....................................... AAA/Aaa 1,295,187
880,000 4.770%, 07/08/99 ....................................... AAA/Aaa 875,686
300,000 4.760%, 08/16/99 ....................................... AAA/Aaa 296,985
-----------
5,859,072
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 5.40%
1,294,000 4.700%, 07/15/99 ....................................... AAA/Aaa 1,286,567
-----------
TOTAL U.S. AGENCY OBLIGATIONS .......................... 7,145,639
(Cost $7,145,639) -----------
SHARES
------
INVESTMENT COMPANY - 2.70%
641,941 TempCash Provident Money
Market Investment Fund ................................. 641,941
-----------
TOTAL INVESTMENT COMPANY ............................... 641,941
(Cost $641,941) -----------
TOTAL INVESTMENTS - 99.62% ............................. 23,719,179
(Cost $23,719,179) -----------
OTHER ASSETS
NET OF LIABILITIES - 0.38% ............................. 89,468
-----------
NET ASSETS - 100.00% ................................... $23,808,647
===========
- --------------
(A) Interest rate presented represents annualized yield at time of purchase.
(B) Securities exempt from registration under section 4(2) of the Securities Act of 1933, as amended.
These securities may only be resold in an exempt transaction to qualified institutional buyers. At
May 31, 1999, these securities amounted to $2,885,496 or 12.12% of net assets.
+ See page 12 for Credit Ratings Summary.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS TRUST
CORE FIXED INCOME FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) - MAY 31, 1999
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
CREDIT
PAR VALUE RATINGS+ VALUE
- --------- ------- -----
<S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 48.68%
U.S. TREASURY BONDS - 16.36%
$ 1,250,000 7.250%, 08/15/22 ....................................... AAA/Aaa $ 1,424,563
1,750,000 6.250%, 08/15/23 ....................................... AAA/Aaa 1,783,898
1,500,000 6.875%, 08/15/25 ....................................... AAA/Aaa 1,656,285
1,000,000 6.000%, 02/15/26 ....................................... AAA/Aaa 992,670
-----------
5,857,416
-----------
U.S. TREASURY NOTES - 14.70%
1,000,000 6.625%, 04/30/02 ....................................... AAA/Aaa 1,027,400
1,000,000 6.875%, 05/15/06 ....................................... AAA/Aaa 1,059,540
2,000,000 7.000%, 07/15/06 ....................................... AAA/Aaa 2,135,740
1,000,000 6.500%, 10/15/06 ....................................... AAA/Aaa 1,039,570
-----------
5,262,250
-----------
FEDERAL FARM CREDIT BANK - 3.84%
500,000 6.320%, 09/09/02 ....................................... AAA/Aaa 506,550
220,000 6.040%, 01/19/06 ....................................... AAA/Aaa 218,324
500,000 6.430%, 07/23/07 ....................................... AAA/Aaa 504,990
150,000 5.870%, 09/02/08, MTN .................................. AAA/Aaa 145,716
-----------
1,375,580
-----------
FEDERAL HOME LOAN BANK - 2.21%
435,000 6.750%, 04/05/04 ....................................... AAA/Aaa 447,023
350,000 6.040%, 02/04/08 ....................................... AAA/Aaa 344,407
-----------
791,430
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 2.84%
635,000 6.704%, 01/09/07 ....................................... AAA/Aaa 652,183
300,000 8.250%, 06/01/16 ....................................... AAA/Aaa 356,304
7,358 7.500%, 02/01/17 ....................................... AAA/Aaa 7,591
-----------
1,016,078
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 7.03%
150,000 6.720%, 07/14/04 ....................................... AAA/Aaa 150,589
700,000 6.540%, 10/03/05 ....................................... AAA/Aaa 714,077
850,000 6.700%, 06/19/07 ....................................... AAA/Aaa 872,788
575,000 6.210%, 11/01/07 ....................................... AAA/Aaa 574,966
198,199 8.000%, 11/01/26 ....................................... AAA/Aaa 205,693
-----------
2,518,113
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 1.70%
2,063 11.500%, 04/15/10 ...................................... AAA/Aaa 2,315
51,076 13.000%, 06/15/14 ...................................... AAA/Aaa 59,185
70,539 13.000%, 11/15/14 ...................................... AAA/Aaa 81,737
19,574 13.000%, 12/15/14 ...................................... AAA/Aaa 22,682
$ 189,341 8.000%, 07/15/26 ....................................... AAA/Aaa $ 196,737
173,495 8.000%, 12/15/26 ....................................... AAA/Aaa 180,272
61,881 8.000%, 01/15/27 ....................................... AAA/Aaa 64,298
-----------
607,226
-----------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS ........... 17,428,093
(Cost $17,447,094) -----------
CORPORATE OBLIGATIONS - 46.04%
AEROSPACE - 1.33%
467,000 Lockheed Martin Corp. 7.250%, 05/15/06 ................. BBB+/A3 474,589
-----------
AUTOMOBILES - 3.35%
300,000 Delphi Auto Systems Corp. 6.500%, 05/01/09 ............. BBB/Baa2 285,375
335,000 Ford Capital BV, Yankee 9.875%, 05/15/02 ............... A/A1 366,825
131,000 General Motors Acceptance Corp. 9.000%, 10/15/02 ....... A/A2 141,480
400,000 General Motors Acceptance Corp., Notes 7.000%, 03/01/00 A/A2 405,116
-----------
1,198,796
-----------
BANKING - 2.25%
200,000 BankAmerica Corp., MTN 7.125%, 05/12/05 ................ A+/Aa2 204,500
250,000 Bankers Trust Corp., NY Subordinated Debentures
9.500%, 06/14/00 ....................................... BBB+/A3 258,750
350,000 Swiss Bank Corp., NY Subordinated Debentures
7.000%, 10/15/15 ....................................... AA/Aa1 343,000
-----------
806,250
-----------
DURABLE GOODS - 0.75%
250,000 Whirlpool Corp., Debentures 9.000%, 03/01/03 ........... A-/Baa1 269,063
-----------
FINANCIAL SERVICES - 10.15%
$ 200,000 Abbey National Plc Subordinated Notes 6.690%, 10/17/05 . AA-/Aa3 $ 198,000
350,000 Associates Corp., N.A. Senior Notes 7.500%, 04/15/02 ... AA-/Aa3 360,937
310,000 BHP Finance USA, Yankee 7.875%, 12/01/02 ............... A/A3 319,687
210,000 Case Credit Corp., MTN-A 5.930%, 02/26/01 .............. A-/Baa1 248,750
385,000 Commercial Credit Co., Notes 6.875%, 05/01/02 .......... A+/A3 390,775
319,000 Dean Witter Discovery & Co., Notes 6.875%, 03/01/03 .... A+/A3 322,589
100,000 Discover Credit, MTN 8.540%, 12/11/01 .................. A-/A2 103,800
500,000 Household Finance Corp. 6.450%, 03/15/01 ............... A/A2 502,500
270,000 Lehman Brothers Holdings Inc., Notes 8.500%, 05/01/07 .. A/Baa1 290,588
100,000 Metropolitan Life Insurance Co. 6.300%, 11/01/03 (A) ... A+/A1 97,250
400,000 National Rural Utilities Cooperative Finance Corp.
6.500%, 09/15/02 ....................................... AA/Aa3 404,000
400,000 St. Paul Cos. Inc., MTN 6.740%, 07/18/05 ............... A+/A1 396,500
-----------
3,635,376
-----------
FOOD SERVICE - 2.48%
350,000 Nabisco, Inc. 6.850%, 06/15/05 ......................... BBB/Baa2 344,750
150,000 Panamerican Beverage, Inc., Senior Notes 8.125%, 04/01/03 BBB-/Baa3 145,125
400,000 Tyson Foods, Inc., Yankee 6.625%, 10/17/05 ............. A-/A3 398,500
-----------
888,375
-----------
HEALTH CARE SERVICES - 0.78%
$ 12,000 Columbia/HCA Healthcare Corp. 7.150%, 03/30/04 ......... BB+/Ba2 $ 11,295
55,000 Columbia/HCA Healthcare Corp. 6.910%, 06/15/05 ......... BB+/Ba2 50,119
250,000 Columbia/HCA Healthcare Corp. 7.000%, 07/01/07 ......... BBB/Ba2 219,375
-----------
280,789
-----------
INDUSTRIAL GOODS AND SERVICES - 8.41%
210,000 Case Corp. 7.250%, 08/01/05 ............................ A-/Baa1 207,375
325,000 Champion International Corp. 7.700%, 12/15/99 .......... BBB/Baa1 327,437
350,000 Crown Cork & Seal Financial Plc, Yankee 6.750%, 12/15/03 BBB/Baa2 350,000
230,000 Hertz Corp., Senior Notes 7.000%, 05/01/02 ............. BBB+/A3 233,163
230,000 Levis Strauss & Co. 6.800%, 11/01/03 (A) ............... BBB-/Baa3 214,475
330,000 Pennzoil Co., Debentures 10.625%, 06/01/01 ............. BBB/Ba1 330,413
225,000 Tyco International, Ltd. Senior Notes 8.250%, 08/01/00 . A-/A3 227,812
200,000 USG Corp. Senior Notes 9.250%, 09/15/01 ................ BBB/Baa3 211,500
650,000 Westinghouse Electric Corp., MTN 9.300%, 06/07/99 ...... BBB-/Baa3 650,000
250,000 Westinghouse Electric Corp., MTN 9.400%, 01/31/01 ...... BBB-/Baa3 259,375
-----------
3,011,550
-----------
OIL AND GAS - 2.74%
250,000 Amoco Canada Petroleum Co. Yankee 7.950%, 10/01/22 ..... AAA/Aa1 260,937
101,000 Columbia Energy Group 6.800%, 11/28/05 ................. BBB+/A3 100,242
175,000 El Paso Natural Gas, Debentures 7.500%, 11/15/26 ....... BBB/Baa2 176,969
$ 250,000 Gulf Canada Resources, Ltd. Subordinated Notes
9.625%, 07/01/05 ....................................... BB-/Ba2 $ 258,750
190,000 Union Oil Co. of California, MTN 6.700%, 10/15/07 ...... BBB+/Baa1 185,013
-----------
981,911
-----------
TELECOMMUNICATIONS - 1.23%
150,000 BellSouth Telecommunications, Inc. 6.500%, 02/01/00 .... AAA/Aaa 151,125
100,000 Cable & Wireless Communications, Plc, Yankee
6.375%, 03/06/03 ....................................... A-/Baa1 98,625
190,000 GTE Southwest, Inc., Debenture 6.540%, 12/01/05 ........ AA-/A2 189,050
-----------
438,800
-----------
TRANSPORTATION - 3.84%
431,000 Canadian National Railway Co. Yankee 7.000%, 03/15/04 .. BBB/Baa2 436,387
140,000 Canadian Pacific, Ltd., Yankee 6.875%, 04/15/03 ........ BBB+/Baa2 141,400
350,000 Consolidated Rail Corp., Subordinated Notes
6.860%, 12/31/07 ....................................... A/A1 350,325
300,000 CSX Corp. 7.000%, 09/15/02 ............................. BBB/Baa2 303,000
140,000 Union Pacific Corp. 7.375%, 05/15/01 ................... BBB-/Baa3 142,275
-----------
1,373,387
-----------
UTILITIES 8.73%
350,000 Central Power & Light Co. First Mortgage 6.875%, 02/01/03 A/A3 355,250
220,000 Connecticut Light & Power Co., First Mortgage
7.250%, 07/01/99 ....................................... BB+/Ba2 220,275
405,000 Duquesne Light Co. 8.375%, 05/15/24 .................... BBB+/Baa1 426,262
$ 285,000 Hydro-Quebec, MTN 9.410%, 03/23/00 ..................... A+/A2 $ 292,125
250,000 Hydro-Quebec, MTN 8.590%, 08/22/01 ..................... A+/A2 262,500
300,000 Illinois Power Co., Notes 6.500%, 08/01/03 ............. BBB/Baa1 296,625
300,000 Jersey Central Power & Light Co., First Mortgage
7.125%, 10/01/04 ....................................... A-/Baa1 306,375
400,000 New Orleans Public Service, Inc., Notes 8.000%, 03/01/06 BBB/Baa2 409,000
100,000 Niagara Mohawk Power Corp. Mortgage 9.500%, 06/01/00 ... BBB/Baa3 103,125
140,000 Niagara Mohawk Power Corp. First Mortgage
9.250%, 10/01/01 ....................................... BBB/Baa3 148,225
260,000 Niagara Mohawk Power Corp. Series E, Senior Notes
7.375%, 07/01/03 ....................................... BB+/Baa2 261,950
40,000 Rochester Gas & Electric Corp. First Mortgage
9.375%, 04/01/21 ....................................... A-/A3 43,000
-----------
3,124,712
-----------
TOTAL CORPORATE OBLIGATIONS ............................ 16,483,598
(Cost $16,579,900) -----------
ASSET-BACKED SECURITIES - 3.00%
750,000 Chase Manhattan Auto Trust Series 1997-B, Class A4
6.500%, 10/15/01 ....................................... AAA/Aaa 758,002
316,000 Discover Card Master Trust I Series 1999-4, Class B
5.850%, 11/16/04 ....................................... A/A2 315,605
-----------
TOTAL ASSET-BACKED SECURITIES .......................... 1,073,607
(Cost $1,072,276) -----------
SHARES
------
INVESTMENT COMPANY - 0.98%
350,272 TempCash Provident Money Market Investment Fund ........ $ 350,272
-----------
TOTAL INVESTMENT COMPANY ............................... 350,272
(Cost $350,272) -----------
TOTAL INVESTMENTS - 98.70% ............................. 35,335,570
(Cost $35,449,542) -----------
OTHER ASSETS
NET OF LIABILITIES - 1.30% ............................. 467,288
-----------
NET ASSETS - 100.00% ................................... $35,802,858
===========
- -------------
(A) Securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These
securities may only be resold, in transactions exempt from registration, to qualified institutional
buyers. At May 31, 1999, these securities amounted to $311,725 or 0.87% of net assets.
MTN Medium Term Note
+ See page 12 for Credit Ratings Summary.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS TRUST
CORE EQUITY FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) - MAY 31, 1999
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 99.22%
BANKING - 3.55%
100,000 Wells Fargo & Co. ...................................................... $ 4,000,000
------------
BEVERAGES - 0.95%
30,000 PepsiCo, Inc. .......................................................... 1,074,375
------------
COMPUTERS - 8.71%
33,000 EMC Corp./Mass.* ....................................................... 3,287,625
30,000 Gateway 2000* .......................................................... 1,824,375
50,000 Hewlett-Packard Co. .................................................... 4,715,625
------------
9,827,625
------------
DIVERSIFIED MANUFACTURING - 7.20%
75,000 AlliedSignal Corp. ..................................................... 4,354,687
37,000 General Electric Co. ................................................... 3,762,438
------------
8,117,125
------------
ENTERTAINMENT - 6.29%
180,000 Mirage Resorts, Inc.* .................................................. 3,690,000
50,000 Time Warner, Inc. ...................................................... 3,403,125
------------
7,093,125
------------
FINANCIAL SERVICES - 9.63%
60,000 Fannie Mae ............................................................. 4,080,000
69,200 Household International, Inc. .......................................... 3,001,550
45,000 Merrill Lynch & Co. .................................................... 3,780,000
------------
10,861,550
------------
HEALTH CARE SERVICES - 4.41%
30,000 Baxter International, Inc. ............................................. 1,936,875
50,250 Cardinal Health, Inc. .................................................. 3,033,844
------------
4,970,719
------------
HOUSEHOLD PRODUCTS - 2.65%
30,000 Colgate-Palmolive Co. .................................................. 2,996,250
------------
INSURANCE - 3.44%
34,000 American International Group, Inc. ..................................... 3,886,625
------------
OIL AND GAS - 5.58%
25,000 Exxon Corp. ............................................................ 1,996,875
55,000 Halliburton Co. ........................................................ 2,275,625
20,000 Mobil Corp. ............................................................ 2,025,000
------------
6,297,500
------------
PHARMACEUTICALS - 8.71%
53,000 Amgen, Inc.* ........................................................... 3,352,250
60,000 Bristol-Myers Squibb Co. ............................................... 4,117,500
22,000 Pfizer, Inc. ........................................................... $ 2,354,000
------------
9,823,750
------------
RESTAURANTS - 3.07%
90,000 McDonald's Corp. ....................................................... 3,465,000
------------
RETAIL - 7.68%
44,000 Costco Cos., Inc.* ..................................................... 3,190,000
65,000 Kroger Co.* ............................................................ 3,806,562
80,000 Office Depot, Inc.* .................................................... 1,670,000
------------
8,666,562
------------
SEMICONDUCTORS -15.83%
120,000 Altera Corp.* .......................................................... 4,177,500
67,400 Intel Corp. ............................................................ 3,643,813
70,000 Maxim Integrated Products, Inc.* ....................................... 3,740,625
25,000 Texas Instruments, Inc. ................................................ 2,734,375
80,000 Xilinx, Inc.* .......................................................... 3,555,000
------------
17,851,313
------------
TECHNOLOGY - 7.92%
65,000 Applied Materials, Inc.* ............................................... 3,570,937
30,000 Micron Technology, Inc.* ............................................... 1,138,125
90,000 Molex, Inc. ............................................................ 2,756,250
30,000 Novellus Systems, Inc.* ................................................ 1,464,375
------------
8,929,687
------------
TELECOMMUNICATIONS - 3.60%
30,000 Sprint Corp. (FON Group) ............................................... 3,382,500
15,000 Sprint Corp. (PCS Group)* .............................................. 675,000
------------
4,057,500
------------
TOTAL COMMON STOCKS .................................................... 111,918,706
(Cost $68,739,310) ------------
INVESTMENT COMPANY - 0.68%
764,827 TempCash Provident Money Market Investment Fund ........................ 764,827
------------
TOTAL INVESTMENT COMPANY .............................................. 764,827
(Cost $764,827) ------------
TOTAL INVESTMENTS - 99.90% ............................................ 112,683,533
(Cost $69,504,137) ------------
OTHER ASSETS
NET OF LIABILITES - 0.10% ............................................. 109,678
------------
TOTAL NET ASSETS - 100.00% ............................................ $112,793,211
============
- -------------
* Non-income producing security.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS TRUST
BLENDED TOTAL RETURN FUND
PORTFOLIO OF INVESTMENTS (UNAUDITED) - MAY 31, 1999
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCKS - 58.07%
AEROSPACE/DEFENSE - 1.68%
14,200 Raytheon Co., Class B .................................................. $ 966,488
------------
BANKING - 3.17%
14,000 BankAmerica Corp. ...................................................... 905,625
23,000 Wells Fargo & Co. ...................................................... 920,000
------------
1,825,625
------------
BEVERAGES - 1.68%
27,000 PepsiCo, Inc. .......................................................... 966,937
------------
CHEMICALS - 0.72%
10,000 Monsanto Co. ........................................................... 415,000
------------
COMMERCIAL SERVICES - 0.24%
8,000 Convergys Corp.* ....................................................... 141,000
------------
COMPUTERS - 3.22%
14,000 Automatic Data Processing, Inc. ........................................ 576,625
13,600 Hewlett-Packard Co. .................................................... 1,282,650
------------
1,859,275
------------
CONSUMER GOODS - 1.57%
15,400 Kimberly-Clark Corp. ................................................... 903,788
------------
DIVERSIFIED MANUFACTURING - 4.16%
18,000 AlliedSignal Corp. ..................................................... 1,045,125
13,300 General Electric Co. ................................................... 1,352,444
------------
2,397,569
------------
ENTERTAINMENT - 3.55%
60,000 Mirage Resorts, Inc.* .................................................. 1,230,000
12,000 Time Warner, Inc. ...................................................... 816,750
------------
2,046,750
------------
FINANCIAL SERVICES - 1.51%
20,000 Household International, Inc. .......................................... 867,500
------------
FOOD SERVICE - 1.44%
28,000 Sysco Corp. ............................................................ 831,250
------------
HEALTH CARE SERVICES - 1.96%
12,000 Baxter International, Inc. ............................................. 774,750
5,835 Cardinal Health, Inc. .................................................. 352,288
------------
1,127,038
------------
HOUSEHOLD PRODUCTS - 1.39%
8,000 Colgate-Palmolive Co. .................................................. $ 799,000
------------
INSURANCE - 2.96%
10,000 American International Group, Inc. ..................................... 1,143,125
4,000 Progressive Corp. ...................................................... 561,500
------------
1,704,625
------------
OIL AND GAS - 3.51%
12,000 Exxon Corp. ............................................................ 958,500
10,500 Mobil Corp. ............................................................ 1,063,125
------------
2,021,625
------------
PHARMACEUTICALS - 2.83%
15,000 Amgen, Inc.* ........................................................... 948,750
6,400 Pfizer, Inc. ........................................................... 684,800
------------
1,633,550
------------
RETAIL - 3.37%
10,000 Costco Cos., Inc.* ..................................................... 725,000
20,800 Kroger Co.* ............................................................ 1,218,100
------------
1,943,100
------------
RESTAURANTS - 1.74%
26,000 McDonald's Corp. ....................................................... 1,001,000
------------
SEMICONDUCTORS - 8.49%
40,000 Altera Corp.* .......................................................... 1,392,500
15,000 Intel Corp. ............................................................ 810,938
27,000 Maxim Integrated Products, Inc.* ....................................... 1,442,812
28,000 Xilinx, Inc.* .......................................................... 1,244,250
------------
4,890,500
------------
TECHNOLOGY - 6.45%
22,000 Applied Materials, Inc.* ............................................... 1,208,625
12,000 Micron Technology, Inc.* ............................................... 455,250
25,000 Molex, Inc. ............................................................ 765,625
14,000 Novellus Systems, Inc.* ................................................ 683,375
14,500 SCI Systems, Inc.* ..................................................... 601,750
------------
3,714,625
------------
TELECOMMUNICATIONS - 1.43%
16,100 SBC Communications, Inc. ............................................... 823,112
------------
TOBACCO - 1.00%
15,000 Philip Morris Cos., Inc. ............................................... 578,438
------------
TOTAL COMMON STOCKS .................................................... 33,457,795
(Cost $22,929,615) ------------
<CAPTION>
CREDIT
PAR VALUE RATINGS+ VALUE
- --------- ------- -----
<S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 22.57%
U.S. TREASURY BONDS - 6.41%
$ 750,000 6.250%, 08/15/23 ....................................... AAA/Aaa $ 764,527
1,000,000 6.500%, 11/15/26 ....................................... AAA/Aaa 1,057,830
1,500,000 6.625%, 02/15/27 ....................................... AAA/Aaa 1,611,975
250,000 6.375%, 08/15/27 ....................................... AAA/Aaa 260,743
------------
3,695,075
------------
U.S. TREASURY NOTES - 10.18%
1,000,000 6.000%, 07/31/02 ....................................... AAA/Aaa 1,011,070
1,500,000 6.500%, 05/15/05 ....................................... AAA/Aaa 1,554,270
1,500,000 6.875%, 05/15/06 ....................................... AAA/Aaa 1,589,310
1,600,000 7.000%, 07/15/06 ....................................... AAA/Aaa 1,708,592
------------
5,863,242
------------
FEDERAL FARM CREDIT BANK - 1.29%
750,000 6.010%, 07/09/02, MTN .................................. AAA/Aaa 743,903
------------
FEDERAL HOME LOAN BANK - 1.72%
500,000 6.135%, 12/23/04 ....................................... AAA/Aaa 501,020
500,000 6.040%, 02/04/08 ....................................... AAA/Aaa 492,010
------------
993,030
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION - 2.11%
1,170,000 6.943%, 03/21/07, Debenture ............................ AAA/Aaa 1,217,865
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 0.71%
443 6.500%, 08/25/04 ....................................... AAA/Aaa 444
400,000 6.570%, 08/22/07, MTN .................................. AAA/Aaa 407,568
------------
408,012
------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.15%
52,201 13.000%, 03/15/12 ...................................... AAA/Aaa 60,488
19,771 13.000%, 10/15/13 ...................................... AAA/Aaa 22,910
------------
83,398
------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS ........... 13,004,525
(Cost $12,972,129) ------------
CORPORATE OBLIGATIONS - 11.39%
AEROSPACE - 0.78%
$ 442,000 Lockheed Martin Corp. 7.250%, 05/15/06 ................. BBB+/Baa1 $ 449,182
------------
AUTOMOBILES - 1.56%
200,000 Delphi Auto Systems Corp. 6.500%, 05/01/09 ............. BBB/Baa2 190,250
300,000 Ford Motor Credit Co. 6.550%, 09/10/02 ................. A/A1 301,875
400,000 General Motors Acceptance Corp., Notes 7.000%, 03/01/00 A/A2 405,116
------------
897,241
------------
BANKING - 0.62%
250,000 Bank of America Corp. Subordinated Notes 8.950%, 11/04/99 A/Aa3 253,125
100,000 NBD Bancorp, Inc. 7.125%, 05/15/07 ..................... A/A1 101,875
------------
355,000
------------
ENTERTAINMENT - 0.14%
80,000 Time Warner, Inc. 7.950%, 02/01/00 ..................... BBB-/Baa3 81,000
------------
FINANCIAL SERVICES - 0.64%
360,000 BHP Finance USA, Yankee 7.875%, 12/01/02 ............... A/A3 371,250
------------
HEALTH CARE SERVICES - 0.85%
12,000 Columbia/HCA Healthcare Corp. 7.250%, 05/20/08 ......... BB+/Ba2 10,605
500,000 Columbia/HCA Healthcare Corp., MTN 9.000%, 12/15/14 .... BBB/Ba2 476,875
------------
487,480
------------
INDUSTRIAL GOODS AND SERVICES - 2.04%
$ 350,000 Crown Cork & Seal Financial, Plc, Yankee 6.750%, 12/15/03 BBB/Baa2 $ 350,000
250,000 Unisys Corp., Senior Notes 12.000%, 04/15/03 ........... BB-/Ba3 273,438
550,000 Westinghouse Electric Corp., MTN 9.300%, 06/07/99 ...... BBB-/Baa3 550,000
------------
1,173,438
------------
OIL AND GAS - 4.04%
350,000 Amoco Canada Petroleum Co. Yankee 7.950%, 10/01/22 ..... AAA/Aa1 365,312
500,000 Ferrellgas Partners, L.P. 9.375%, 06/15/06 ............. B+/B1 498,750
750,000 Imperial Oil Ltd., Yankee 8.750%, 10/15/19 ............. AA+/Aa2 786,562
641,000 Occidental Petroleum Corp. Debenture 11.125%, 06/01/19 . BBB/Baa2 677,858
------------
2,328,482
------------
REGIONAL AGENCIES - 0.18%
100,000 Province of Alberta, Yankee 9.250%, 04/01/00 ........... AA+/Aa2 102,750
------------
UTILITIES - 0.54%
160,000 Duquesne Light Co. 8.375%, 05/15/24 .................... BBB+/Baa1 168,400
150,000 New England Telephone & Telegraph Co., Debenture
6.375%, 09/01/08 ....................................... AA/Aa2 146,063
------------
314,463
------------
TOTAL CORPORATE OBLIGATIONS ............................ 6,560,286
(Cost $6,689,018) ------------
ASSET-BACKED SECURITY - 1.31%
750,000 Chase Manhattan Auto Owner Trust Series 1997-B, Class A4
6.500%, 10/15/01 ....................................... AAA/Aaa 758,002
------------
TOTAL ASSET-BACKED SECURITY ............................ 758,002
(Cost $756,671) ------------
SHORT-TERM INVESTMENTS - 4.92%
INVESTMENT COMPANY - 3.53%
2,034,058 TempCash Provident Money Market Investment Fund ........ $ 2,034,058
------------
PAR VALUE
---------
DISCOUNT NOTE (A) - 1.39%
$ 800,000 Weyerhaeuser Real Estate 4.832%, 06/16/99 .............. 798,390
------------
TOTAL SHORT-TERM INVESTMENTS ........................... 2,832,448
(Cost $2,832,448) ------------
TOTAL INVESTMENTS - 98.26% ............................. 56,613,056
(Cost $46,179,881) ------------
OTHER ASSETS
NET OF LIABILITES - 1.74% .............................. 1,004,688
------------
TOTAL NET ASSETS - 100.00% ............................. $ 57,617,744
============
* Non-income producing security.
MTN Medium Term Note
(A) Interest rate presented represents annualized yield at time of purchase.
+ See page 12 for Credit Rating Summary
See accompanying notes to financial statements.
</TABLE>
<PAGE>
CREDIT RATING SUMMARY
CREDIT RATINGS GIVEN BY STANDARD & POOR'S CORPORATION AND MOODY'S INVESTORS
SERVICES INC.
STANDARD & POOR'S MOODY'S
- ----------------- -------
AAA Aaa Instrument judged to be of the highest quality and
carrying the smallest amount of investment risk.
AA Aa Instrument judged to be of high quality by all
standards.
A A Instrument judged to be adequate by all standards.
BBB Baa Instrument judged to be of modest quality by all
standards.
BB Ba Instrument judged to have speculative elements.
B B Instrument judged to lack characteristics of the
desirable investment.
NR NR Not Rated. In the opinion of the Investment
Advisor, instrument judged to be of comparable
investment quality to rated securities which may
be purchased by the Fund.
For items possessing the strongest investment attributes of their category,
Moody's gives that letter rating followed by a number.
The Standard & Poor's rating may be modified by the addition of a plus or minus
sign to show relative standings within the major rating categories.
U.S. Government and Agency Issues have an assumed rating of AAA/Aaa.
See accompanying notes to financial statements.
<PAGE>
<TABLE>
IBJ FUNDS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
MAY 31, 1999 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
RESERVE MONEY CORE FIXED CORE EQUITY BLENDED TOTAL
MARKET FUND INCOME FUND FUND RETURN FUND
------------- ---------- ----------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments at cost ........................... $ 23,719,179 $ 35,449,542 $ 69,504,137 $ 46,179,881
Net unrealized appreciation (depreciation) .... -- (113,972) 43,179,396 10,433,175
------------ ------------ ------------ ------------
Total investments at value ................. 23,719,179 35,335,570 112,683,533 56,613,056
Cash .......................................... 100,427 1,778,569 997,814 --
Receivables:
Investments sold ........................... -- -- -- 609,124
Fund shares sold ........................... -- 25,007 211,389 116,335
Dividends and interest ..................... 1,963 576,084 74,997 374,638
From Investment Advisor .................... 12,257 -- -- --
Deferred organization costs ................... 3,859 3,859 3,859 3,859
Other assets .................................. 183 490 1,981 323
------------ ------------ ------------ ------------
Total Assets ............................... 23,837,868 37,719,579 113,973,573 57,717,335
------------ ------------ ------------ ------------
LIABILITIES:
Payables:
To custodian ............................... -- -- -- 17,919
Fund shares repurchased .................... -- 1,875,381 1,029,730 5,637
Advisory fees .............................. -- 12,718 48,993 24,814
Custody fees ............................... 667 1,272 3,919 1,985
Administration fees ........................ 2,503 4,769 14,698 7,444
Co-Administration fees ..................... -- 954 2,939 1,489
Transfer agent fees ........................ 11,070 4,572 11,727 9,520
Trustees fees .............................. 1,498 2,662 7,773 3,991
Accrued expenses and other payables ........... 13,483 14,393 60,583 26,792
------------ ------------ ------------ ------------
Total Liabilities .......................... 29,221 1,916,721 1,180,362 99,591
------------ ------------ ------------ ------------
NET ASSETS .................................... $ 23,808,647 $ 35,802,858 $112,793,211 $ 57,617,744
============ ============ ============ ============
NET ASSETS CONSIST OF:
Paid-In capital ............................... $ 23,817,730 $ 36,039,212 $ 58,980,719 $ 46,926,544
Accumulated undistributed (distribution in
excess of) net investment income ........... -- (14,893) (110,201) 8,723
Accumulated net realized gain (loss)
on investments sold ........................ (9,083) (107,489) 10,743,297 249,302
Net unrealized appreciation (depreciation)
on investments ............................. -- (113,972) 43,179,396 10,433,175
------------ ------------ ------------ ------------
TOTAL NET ASSETS .............................. $ 23,808,647 $ 35,802,858 $112,793,211 $ 57,617,744
============ ============ ============ ============
PREMIUM CLASS:
Net assets ................................. $ 13,966 $ 14,320 $ 20,318 $ 16,879
============ ============ ============ ============
Shares of beneficial interest outstanding .. 13,970 1,422 1,197 1,377
============ ============ ============ ============
Net asset value offering and
redemption price per share
(Net Assets/Shares Outstanding) .......... $ 1.00 $ 10.07 $ 16.97 $ 12.26
============ ============ ============ ============
SERVICE CLASS:
Net assets ................................. $ 23,794,681 $ 35,788,538 $112,772,893 $ 57,600,865
============ ============ ============ ============
Shares of beneficial interest outstanding .. 23,803,841 3,554,306 6,649,307 4,696,444
============ ============ ============ ============
Net asset value offering and
redemption price per share
(Net Assets/Shares Outstanding) .......... $ 1.00 $ 10.07 $ 16.96 $ 12.26
------------ ------------ ------------ ------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 1999 (UNAUDITED)
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
RESERVE MONEY CORE FIXED CORE EQUITY BLENDED TOTAL
MARKET FUND INCOME FUND FUND RETURN FUND
------------- ---------- ----------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ................................... $ 429,823 $ 1,199,597 $ -- $ 802,701
Dividends .................................. 7,303 11,113 494,792 219,134
------------ ------------ ------------ ------------
Total Income ............................. 437,126 1,210,710 494,792 1,021,835
------------ ------------ ------------ ------------
EXPENSES:
Advisory ................................... 30,863 96,681 388,569 193,750
Co-Administration .......................... 2,645 5,801 19,428 9,688
Administration ............................. 13,227 29,004 97,142 48,438
Transfer Agent ............................. 26,244 34,886 49,559 38,681
Custody .................................... 3,552 7,789 26,137 13,026
Professional fees .......................... 9,019 17,188 52,967 26,827
Trustees ................................... 1,976 3,766 11,605 5,878
Printing ................................... 520 685 2,056 952
Registration and filing fees ............... 9,890 9,345 10,972 10,027
Amortization of organization costs ......... 2,866 2,866 2,866 2,866
Miscellaneous .............................. 1,245 1,824 22,012 6,171
------------ ------------ ------------ ------------
Total expenses before
reimbursements/waivers ................. 102,047 209,835 683,313 356,304
Less expenses
reimbursed/waived ...................... (45,766) (23,239) (78,320) (39,032)
------------ ------------ ------------ ------------
Net expenses ............................... 56,281 186,596 604,993 317,272
------------ ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS) .................. 380,845 1,024,114 (110,201) 704,563
------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain (loss) on
investment transactions .................... (283) (78,636) 10,799,657 (276,794)
Net change in unrealized
appreciation (depreciation) on investments . -- (1,603,497) 10,433,589 2,532,727
------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS ................. (283) (1,682,133) 21,233,246 2,255,933
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS .................. $ 380,562 $ (658,019) $ 21,123,045 $ 2,960,496
============ ============ ============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
RESERVE MONEY
MARKET FUND
-------------------------------
SIX MONTHS
ENDED YEAR ENDED
MAY 31, 1999 NOVEMBER 30,
(UNAUDITED) 1998
----------- ----
<S> <C> <C>
INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss) ............................................ $ 380,845 $ 1,141,127
Net realized gain (loss) on investment transactions .................... (283) (247)
Net change in unrealized appreciation (depreciation) on investments .... -- --
------------ ------------
Net increase (decrease) in net assets resulting from operations ........... 380,562 1,140,880
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Premium Class .......................................................... (297) (677)
Service Class .......................................................... (380,548) (1,140,450)
------------ ------------
(380,845) (1,141,127)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM REALIZED GAINS ON INVESTMENTS:
Premium Class .......................................................... -- --
Service Class .......................................................... -- --
------------ ------------
-- --
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Change in net assets from capital share transactions (Note 6) ............. 5,210,648 (7,198,748)
------------ ------------
Net change in net assets .................................................. 5,210,365 (7,198,995)
NET ASSETS:
Beginning of year ...................................................... 18,598,282 25,797,277
------------ ------------
End of period (including line A) ....................................... $ 23,808,647 $ 18,598,282
============ ============
(A) Undistributed (distribution in excess of) net investment income (loss) $ -- $ --
============ ============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CORE FIXED CORE EQUITY BLENDED TOTAL
INCOME FUND FUND RETURN FUND
--------------------------------- ----------------------------- -------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
MAY 31, 1999 NOVEMBER 30, MAY 31, 1999 NOVEMBER 30, MAY 31, 1999 NOVEMBER 30,
(UNAUDITED) 1998 (UNAUDITED) 1998 (UNAUDITED) 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
$ 1,024,114 $ 2,047,874 $ (110,201) $ 356,318 $ 704,563 $ 1,851,807
(78,636) 367,794 10,799,657 15,507,187 (276,794) 5,722,500
(1,603,497) 803,213 10,433,589 3,511,547 2,532,727 1,801,885
------------ ------------ ------------ ------------ ------------ ------------
(658,019) 3,218,881 21,123,045 19,375,052 2,960,496 9,376,192
------------ ------------ ------------ ------------ ------------ ------------
(425) (614) -- (50) (186) (418)
(1,139,334) (2,053,647) -- (355,900) (701,672) (1,899,280)
------------ ------------ ------------ ------------ ------------ ------------
(1,139,759) (2,054,261) -- (355,950) (701,858) (1,899,698)
------------ ------------ ------------ ------------ ------------ ------------
(95) (102) (2,055) (2,343) (1,269) (2,110)
(253,848) (243,081) (14,694,987) (16,713,117) (5,191,592) (9,347,592)
------------ ------------ ------------ ------------ ------------ ------------
(253,943) (243,183) (14,697,042) (16,715,460) (5,192,861) (9,349,702)
------------ ------------ ------------ ------------ ------------ ------------
(963,029) 6,254,511 (18,135,565) 16,798,691 (5,725,745) 6,269,878
------------ ------------ ------------ ------------ ------------ ------------
(3,014,750) 7,175,948 (11,709,562) 19,102,333 (8,659,968) 4,396,670
38,817,608 31,641,660 124,502,773 105,400,440 66,277,712 61,881,042
------------ ------------ ------------ ------------ ------------ ------------
$ 35,802,858 $ 38,817,608 $112,793,211 $124,502,773 $ 57,617,744 $ 66,277,712
============ ============ ============ ============ ============ ============
$ (14,893) $ 100,752 $ (110,201) $ -- $ 8,723 $ 6,018
============ ============ ============ ============ ============ ============
</TABLE>
<PAGE>
<TABLE>
IBJ FUNDS TRUST
FINANCIAL HIGHLIGHTS
- -------------------------------------------------------------------------------------------------------------
<CAPTION>
RESERVE MONEY MARKET FUND
PREMIUM CLASS
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 31, 1999 NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
(UNAUDITED) 1998 1997 1996 1995*
----------- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Income from Investment
Operations:
Net investment income .... 0.02 0.05 0.05 0.05 0.04
------- ------- ------- ------- -------
Less Dividends from:
Net investment income .... (0.02) (0.05) (0.05) (0.05) (0.04)
------- ------- ------- ------- -------
NET ASSET VALUE, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return (a) ............ 2.17% 5.27% 4.96% 4.88% 4.55%
Ratios/Supplemental Data:
Net Assets at the end of
period (in thousands) .... $ 14 $ 14 $ 13 $ 14 $ 13
Ratios to average net assets:
Expenses before waivers+ . 1.16%** 0.76% 0.99% 0.95% 0.92%**
Expenses net of waivers .. 0.64%** 0.41% 0.64% 0.65% 0.64%**
Net investment income
(net of waivers) ....... 4.32%** 5.16% 4.84% 4.82% 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>
<CAPTION>
RESERVE MONEY MARKET FUND
SERVICE CLASS
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 31, 1999 NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
(UNAUDITED) 1998 1997 1996 1995*
----------- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- -------
Income from Investment
Operations:
Net investment income .... 0.02 0.05 0.05 0.05 0.04
------- ------- ------- ------- -------
Less Dividends from:
Net investment income .... (0.02) (0.05) (0.05) (0.05) (0.04)
------- ------- ------- ------- -------
NET ASSET VALUE, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
Total Return (a) ............ 2.17% 5.27% 4.96% 4.88% 4.55%
Ratios/Supplemental Data:
Net Assets at the end of
period (in thousands) .... $23,795 $18,585 $25,784 $34,269 $28,943
Ratios to average net assets:
Expenses before waivers+ . 1.16%** 0.76% 0.99% 0.95% 0.92%**
Expenses net of waivers .. 0.64%** 0.41% 0.64% 0.65% 0.64%**
Net investment income
(net of waivers) ....... 4.32%** 5.16% 4.84% 4.82% 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
PREMIUM CLASS
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 31, 1999 NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
(UNAUDITED) 1998 1997 1996 1995*
----------- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ..... $ 10.61 $ 10.35 $ 10.22 $ 10.72 $ 10.00
------- ------- ------- ------- -------
Income from Investment
Operations:
Net investment income .... 0.27 0.59 0.57 0.54 0.48
Net realized and unrealized
gains (losses) on
investment transactions (0.44) 0.34 0.13 (0.12) 0.72
------- ------- ------- ------- -------
Total income (loss) from
investment operations .. (0.17) 0.93 0.70 0.42 1.20
------- ------- ------- ------- -------
Less Dividends from:
Net investment income .... (0.30) (0.59) (0.57) (0.54) (0.48)
Realized gains ........... (0.07) (0.08) -- (0.38) --
------- ------- ------- ------- -------
Total Distributions ...... (0.37) (0.67) (0.57) (0.92) (0.48)
------- ------- ------- ------- -------
Net change in net asset
value per share .......... (0.54) 0.26 0.13 (0.50) 0.72
------- ------- ------- ------- -------
NET ASSET VALUE, End of Period $ 10.07 $ 10.61 $ 10.35 $ 10.22 $ 10.72
======= ======= ======= ======= =======
Total Return (a) ............ (1.70)% 9.27% 7.20% 4.25% 12.28%
Ratios/Supplemental Data:
Net Assets at the end of
period (in thousands) .... $ 14 $ 15 $ 13 $ 15 $ 14
Ratios to average net assets:
Expenses before waivers+ . 1.09%** 0.90% 1.17% 1.22% 1.22%**
Expenses net of waivers .. 0.97%** 0.80% 1.07% 1.12% 1.12%**
Net investment income .... 5.30%** 5.63% 5.61% 5.07% 5.59%**
Portfolio Turnover Rate (b) . 22% 93% 210% 160% 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>
<CAPTION>
CORE FIXED INCOME FUND
SERVICE CLASS
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 31, 1999 NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
(UNAUDITED) 1998 1997 1996 1995*
----------- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ..... $ 10.61 $ 10.36 $ 10.22 $ 10.72 $ 10.00
------- ------- ------- ------- -------
Income from Investment
Operations:
Net investment income .... 0.27 0.59 0.57 0.54 0.48
Net realized and unrealized
gains (losses) on
investment transactions (0.44) 0.33 0.14 (0.12) 0.72
------- ------- ------- ------- -------
Total income (loss) from
investment operations .. (0.17) 0.92 0.71 0.42 1.20
------- ------- ------- ------- -------
Less Dividends from:
Net investment income .... (0.30) (0.59) (0.57) (0.54) (0.48)
Realized gains ........... (0.07) (0.08) -- (0.38) --
------- ------- ------- ------- -------
Total Distributions ...... (0.37) (0.67) (0.57) (0.92) (0.48)
------- ------- ------- ------- -------
Net change in net asset
value per share .......... (0.54) 0.25 0.14 (0.50) 0.72
------- ------- ------- ------- -------
NET ASSET VALUE, End of Period $ 10.07 $ 10.61 $ 10.36 $ 10.22 $ 10.72
======= ======= ======= ======= =======
Total Return (a) ............ (1.70)% 9.27% 7.20% 4.25% 12.28%
Ratios/Supplemental Data:
Net Assets at the end of
period (in thousands) .... $35,789 $38,803 $31,628 $27,768 $26,849
Ratios to average net assets:
Expenses before waivers+ . 1.09%** 0.90% 1.17% 1.22% 1.22%**
Expenses net of waivers .. 0.97%** 0.80% 1.07% 1.12% 1.12%**
Net investment income .... 5.30%** 5.63% 5.61% 5.07% 5.59%**
Portfolio Turnover Rate (b) . 22% 93% 210% 160% 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
PREMIUM CLASS
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 31, 1999 NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
(UNAUDITED) 1998 1997 1996 1995*
----------- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ..... $ 16.52 $ 16.68 $ 15.37 $ 12.97 $ 10.00
------- ------- ------- ------- -------
Income from Investment
Operations:
Net investment income (loss) (0.01) 0.07 0.35 0.14 0.13
Net realized and unrealized
gains on investment
transactions ........... 2.41 2.37 3.04 2.90 2.84
------- ------- ------- ------- -------
Total income from
investment operations .. 2.40 2.44 3.39 3.04 2.97
------- ------- ------- ------- -------
Less Distributions from:
Net investment income .... -- (0.05) (0.31) (0.19) --
In excess of net
investment income ...... -- -- (0.24) -- --
Realized gains ........... (1.95) (2.55) (1.53) (0.45) --
------- ------- ------- ------- -------
Total Distributions ...... (1.95) (2.60) (2.08) (0.64) --
------- ------- ------- ------- -------
Net change in net asset
value per share .......... 0.45 (0.16) 1.31 2.40 2.97
------- ------- ------- ------- -------
NET ASSET VALUE, End of Period $ 16.97 $ 16.52 $ 16.68 $ 15.37 $ 12.97
======= ======= ======= ======= =======
Total Return (a) ............ 16.86% 17.87% 24.68% 24.61% 29.70%
Ratios/Supplemental Data:
Net Assets at the end of
period (in thousands) .... $ 20 $ 17 $ 15 $ 20 $ 16
Ratios to average net assets:
Expenses before waivers+ . 1.06%** 1.04% 0.99% 0.99% 1.09%**
Expenses net of waivers .. 0.93%** 0.94% 0.89% 0.89% 0.89%**
Net investment income .... (0.17)%** 0.32% 0.74% 0.93% 1.30%**
Portfolio Turnover Rate (b) . 6% 92% 44% 27% 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>
<CAPTION>
CORE EQUITY FUND
SERVICE CLASS
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 31, 1999 NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
(UNAUDITED) 1998 1997 1996 1995*
----------- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ..... $ 16.51 $ 16.67 $ 15.37 $ 12.97 $ 10.00
------- ------- ------- ------- -------
Income from Investment
Operations:
Net investment income (loss) (0.02) 0.07 0.35 0.14 0.13
Net realized and unrealized
gains on investment
transactions ........... 2.42 2.37 3.03 2.90 2.84
------- ------- ------- ------- -------
Total income from
investment operations .. 2.40 2.44 3.38 3.04 2.97
------- ------- ------- ------- -------
Less Distributions from:
Net investment income .... -- (0.05) (0.31) (0.19) --
In excess of net
investment income ...... -- -- (0.24) -- --
Realized gains ........... (1.95) (2.55) (1.53) (0.45) --
------- ------- ------- ------- -------
Total Distributions ...... (1.95) (2.60) (2.08) (0.64) --
------- ------- ------- ------- -------
Net change in net asset
value per share .......... 0.45 (0.16) 1.30 2.40 2.97
------- ------- ------- ------- -------
NET ASSET VALUE, End of Period $ 16.96 $ 16.51 $ 16.67 $ 15.37 $ 12.97
======= ======= ======= ======= =======
Total Return (a) ............ 16.86% 17.87% 24.68% 24.61% 29.70%
Ratios/Supplemental Data:
Net Assets at the end of
period (in thousands) .... $112,773 $124,485 $105,386 $93,640 $86,596
Ratios to average net assets:
Expenses before waivers+ . 1.06%** 1.04% 0.99% 0.99% 1.09%**
Expenses net of waivers .. 0.93%** 0.94% 0.89% 0.89% 0.89%**
Net investment income .... (0.17)%** 0.32% 0.74% 0.93% 1.29%**
Portfolio Turnover Rate (b) . 6% 92% 44% 27% 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
PREMIUM CLASS
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 31, 1999 NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
(UNAUDITED) 1998 1997 1996 1995*
----------- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ..... $ 12.90 $ 13.51 $ 12.76 $ 11.78 $ 10.00
------- ------- ------- ------- -------
Income from Investment
Operations:
Net investment income .... 0.09 0.38 0.50 0.34 0.27
Net realized and unrealized
gains on investment
transactions ........... 0.37 1.41 1.27 1.26 1.79
------- ------- ------- ------- -------
Total income from
investment operations .. 0.46 1.79 1.77 1.60 2.06
------- ------- ------- ------- -------
Less Dividends from:
Net investment income .... (0.09) (0.38) (0.50) (0.35) (0.28)
Realized gains ........... (1.01) (2.02) (0.52) (0.27) --
------- ------- ------- ------- -------
Total Distributions ...... (1.10) (2.40) (1.02) (0.62) (0.28)
------- ------- ------- ------- -------
Net change in net asset
value per share .......... (0.64) (0.61) 0.75 0.98 1.78
------- ------- ------- ------- -------
NET ASSET VALUE, End of Period $ 12.26 $ 12.90 $ 13.51 $ 12.76 $ 11.78
======= ======= ======= ======= =======
Total Return (a) ............ 4.46% 15.98% 14.69% 14.08% 20.72%
Ratios/Supplemental Data:
Net Assets at the end of
period (in thousands) .... $ 17 $ 16 $ 14 $ 17 $ 15
Ratios to average net assets:
Expenses before waivers+ . 1.10%** 1.01% 1.07% 1.09% 1.14%**
Expenses net of waivers .. 0.98%** 0.91% 0.97% 0.99% 1.04%**
Net investment income .... 2.18%** 2.95% 2.91% 2.98% 3.04%**
Portfolio Turnover Rate (b) . 20% 76% 138% 77% 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>
<TABLE>
<CAPTION>
BLENDED TOTAL RETURN FUND
SERVICE CLASS
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MAY 31, 1999 NOVEMBER 30, NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
(UNAUDITED) 1998 1997 1996 1995*
----------- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period ..... $ 12.90 $ 13.51 $ 12.76 $ 11.79 $ 10.00
------- ------- ------- ------- -------
Income from Investment
Operations:
Net investment income .... 0.09 0.38 0.50 0.34 0.31
Net realized and unrealized
gains on investment
transactions ........... 0.37 1.41 1.27 1.26 1.79
------- ------- ------- ------- -------
Total income from
investment operations .. 0.46 1.79 1.77 1.60 2.10
------- ------- ------- ------- -------
Less Dividends from:
Net investment income .... (0.09) (0.38) (0.50) (0.36) (0.31)
Realized gains ........... (1.01) (2.02) (0.52) (0.27) --
------- ------- ------- ------- -------
Total Distributions ...... (1.10) (2.40) (1.02) (0.63) (0.31)
------- ------- ------- ------- -------
Net change in net asset
value per share .......... (0.64) (0.61) 0.75 0.97 1.79
------- ------- ------- ------- -------
NET ASSET VALUE, End of Period $ 12.26 $ 12.90 $ 13.51 $ 12.76 $ 11.79
======= ======= ======= ======= =======
Total Return (a) ............ 4.46% 15.98% 14.69% 14.08% 20.82%
Ratios/Supplemental Data:
Net Assets at the end of
period (in thousands) .... $57,601 $66,262 $61,867 $64,232 $50,583
Ratios to average net assets:
Expenses before waivers+ . 1.10%** 1.01% 1.07% 1.09% 1.15%**
Expenses net of waivers .. 0.98%** 0.91% 0.97% 0.99% 1.05%**
Net investment income .... 2.18%** 2.95% 2.91% 2.98% 3.04%**
Portfolio Turnover Rate (b) . 20% 76% 138% 77% 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
MAY 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
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: Reserve Money Market Fund, Core Fixed Income
Fund, Core Equity Fund and 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. For the six months ended May 31, 1999, no
12b-1 and shareholder servicing fees were paid. The Service Class will not be
subject to such fees.
The investment objectives of the Reserve Money Market Fund ("Money Market") are
current income, liquidity and the maintenance of a stable $1.00 net asset value
per share by investing in high quality, U.S. dollar-denominated short-term
obligations which are determined by the investment advisor to present minimal
credit risks.
The investment objective of the Core Fixed Income Fund ("Core Fixed Income") is
to provide a high total return (appreciation plus current income) by investing
at least 65% of its total assets in bonds such as U.S. Government securities,
corporate bonds, asset-backed securities (including mortgage-backed securities),
savings and loan and U.S. and foreign bank obligations, commercial paper, and
related repurchase agreements.
The investment objective of the Core Equity Fund ("Core Equity") is to seek
long-term capital appreciation through investment in a diversified portfolio of
common stock (and securities convertible into common stock) of publicly traded,
U.S. companies. However, if in the investment advisor's judgement, market
conditions change, Core Equity may also invest in the common stock, convertible
securities, preferred stocks and warrants of any U.S. companies, the equity
securities of foreign companies (if traded "over-the-counter"), and American
Depository Receipts.
The investment objective of the Blended Total Return Fund ("Blended Total
Return") is to provide investors with long-term capital appreciation and current
income for high total return by investing in varying proportions of equities and
debt securities depending on the projected strength of the equity and debt
markets at the time of purchase.
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 Standard Time) for Money Market
and as of 4:00 p.m. (Eastern Standard 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. Money Market uses the amortized cost method to value its
portfolio securities, in accordance with Rule 2a-7 under the 1940 Act
and seeks to maintain a constant net asset value of $1.00 per share.
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: Money Market's and
Core Fixed Income's net investment income is declared daily and paid
monthly. Core Equity's net investment income is declared and paid
annually. Blended Total Return'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 Whitehall Bank & Trust Company (the "Advisor" or
"IBJW"). 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 Money Market;
0.50% for Core Fixed Income; 0.60% for Core Equity; and 0.60% for Blended Total
Return. Through November 30, 1999, the Advisor has contractually agreed to waive
a portion of its management fee equal to 0.10% of average daily net assets with
respect to Core Fixed Income, Core Equity and Blended Total Return. This
resulted in fee waivers of $19,336, $64,762 and $32,292 for Core Fixed Income,
Core Equity and Blended Total Return, respectively, for the six months ended May
31, 1999. Through November 30, 1999, the Advisor has contractually agreed to
waive its management fee for Money Market and to reimburse Money Market up to
$35,000 for its other expenses. This resulted in the Advisor waiving $30,863 in
management fees and reimbursing expenses of $12,258 for the six months ended May
31, 1999. Under the terms of its contractual waiver, the Advisor may charge
Money Market up to its full management fee and may reimburse Money Market less
than $35,000 if, in doing so, Money Market's net expenses would not exceed 0.64%
of average daily net assets. IBJW also serves as custodian for all the Funds.
In September 1998, IBJW entered into a Co-Administration Services Contract with
the Trust. Under this contract, IBJW 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
liaison with the Trustees and (iii) providing general product management and
oversight to the extent not provided by Investor Services Group. In
consideration of IBJW's services under this contract, the Trust pays IBJW 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 preceding month. For the
six months ended May 31, 1999, IBJW received co-administration fees of $2,645,
$5,801, $19,428 and $9,688 and has waived co-administration fees of $2,645,
$3,903, $13,558 and $6,740 for Money Market, Core Fixed Income, Core Equity and
Blended Total Return, respectively.
The Trust and Investor Services Group have entered into an administration
agreement under which Investor Services Group 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.
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.
The Investor Services Group also serves as transfer agent for the Funds pursuant
to a Transfer Agency and Services Agreement with the Trust. The fee for this
service is $20,000 per Fund plus reimbursement of certain out-of-pocket
expenses.
First Data Distributors, Inc. (the "Distributor"), a wholly-owned subsidiary of
Investor Services Group and an indirect wholly-owned subsidiary of First Data
Corporation, serves as the distributor of the Trust's shares.
The Trust has adopted a Rule 12b-1 Distribution Plan and Agreement (the "Plan")
pursuant to Rule 12b-1 under the 1940 Act for the Premium Class of Shares of
each Fund of the Trust. The Distributor may be paid a fee of up to 0.35% of the
average daily net assets of the Premium Class of each Fund. 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. In addition, a shareholder servicing fee of up to
0.50% of the average daily net assets of the Premium Class of each Fund may be
paid to various financial institutions for providing services, such as
maintaining shareholder accounts and records.
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 six months ended May 31, 1999, 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
------------------------------ ------------------------------
U.S. GOVERNMENT OTHER U.S. GOVERNMENT OTHER
--------------- ----- --------------- -----
<S> <C> <C> <C> <C>
Core Fixed Income ...................... $ 7,109,118 $ 1,086,636 $ 6,673,789 $ 2,720,046
Core Equity ............................ -- 7,200,554 -- 37,575,613
Blended Total Return ................... 4,939,848 7,303,760 5,032,942 17,061,500
</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 May 31, 1999 for each Fund is as follows:
<TABLE>
<CAPTION>
NET
GROSS GROSS APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION) COST
------------ -------------- -------------- ----
<S> <C> <C> <C> <C>
Money Market ....................... $ -- $ -- $ -- $23,719,179
Core Fixed Income .................. 425,060 (539,032) (113,972) 35,449,542
Core Equity ........................ 43,573,510 (394,114) 43,179,396 69,504,137
Blended Total Return ............... 11,052,865 (619,690) 10,433,175 46,179,881
</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>
MONEY MARKET
------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1999 NOVEMBER 30, 1998
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Issued ........................................... -- $ -- -- $ --
Reinvested ....................................... 297 297 737 737
Redeemed ......................................... -- -- -- --
----------- ------------ ----------- ------------
Net increase ..................................... 297 $ 297 737 $ 737
=========== ============ =========== ============
SERVICE CLASS
Issued ........................................... 21,932,545 $ 21,932,545 36,424,340 $ 36,424,340
Reinvested ....................................... 380,609 380,609 1,244,464 1,244,464
Redeemed ......................................... (17,102,803) (17,102,803) (44,868,289) (44,868,289)
----------- ------------ ----------- ------------
Net increase (decrease) .......................... 5,210,351 $ 5,210,351 (7,199,485) $ (7,199,485)
=========== ============ =========== ============
<CAPTION>
CORE FIXED INCOME
------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1999 NOVEMBER 30, 1998
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Issued ........................................... -- $ -- -- $ --
Reinvested ....................................... 50 521 91 984
Redeemed ......................................... -- -- -- --
----------- ------------ ----------- ------------
Net increase ..................................... 50 $ 521 91 $ 984
=========== ============ =========== ============
SERVICE CLASS
Issued ........................................... 244,288 $ 2,541,326 865,700 $ 9,118,310
Reinvested ....................................... 134,633 1,394,783 234,260 2,441,837
Redeemed ......................................... (480,128) (4,899,659) (498,022) (5,306,620)
----------- ------------ ----------- ------------
Net increase (decrease) .......................... (101,207) $ (963,550) 601,938 $ 6,253,527
=========== ============ =========== ============
<CAPTION>
CORE EQUITY
------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1999 NOVEMBER 30, 1998
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Issued ........................................... -- $ -- -- $ --
Reinvested ....................................... 144 2,056 182 2,884
Redeemed ......................................... -- -- -- --
----------- ------------ ----------- ------------
Net increase ..................................... 144 $ 2,056 182 $ 2,884
=========== ============ =========== ============
SERVICE CLASS
Issued ........................................... 517,951 $ 8,547,924 1,473,105 $ 22,769,953
Reinvested ....................................... 1,035,579 14,694,872 1,293,470 18,597,850
Redeemed ......................................... (2,442,719) (41,380,417) (1,548,197) (24,571,996)
----------- ------------ ----------- ------------
Net increase (decrease) .......................... (889,189) $(18,137,621) 1,218,378 $ 16,795,807
=========== ============ =========== ============
<CAPTION>
BLENDED TOTAL RETURN
------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 1999 NOVEMBER 30, 1998
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
PREMIUM CLASS
Issued ........................................... -- $ -- -- $ --
Reinvested ....................................... 125 1,454 228 2,656
Redeemed ......................................... -- -- -- --
----------- ------------ ----------- ------------
Net increase ..................................... 125 $ 1,454 228 $ 2,656
=========== ============ =========== ============
SERVICE CLASS
Issued ........................................... 272,779 $ 3,353,244 539,674 $ 6,727,596
Reinvested ....................................... 503,320 5,893,241 1,001,007 11,662,505
Redeemed ......................................... (1,216,694) (14,973,684) (982,001) (12,122,879)
----------- ------------ ----------- ------------
Net increase (decrease) .......................... (440,595) $ (5,727,199) 558,680 $ 6,267,222
=========== ============ =========== ============
</TABLE>
NOTE 7 -- YEAR 2000. The Funds could be adversely affected if the computer
systems used by the Advisor and the Funds' other service providers do not
properly process and calculate date-related information from and after January
1, 2000. The 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 Funds
invest may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the Funds' investments and share prices.
<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 Whitehall Bank & Trust Company -----------------------------------
One State Street IBJ FUNDS TRUST
New York, New York 10004 -----------------------------------
Administrator
First Data Investor Services Group, Inc.
4400 Computer Drive
Westborough, MA 01581
Distributor
First Data Distributors, Inc. IBJ RESERVE MONEY MARKET FUND
4400 Computer Drive IBJ CORE FIXED INCOME FUND
Westborough, MA 01581 IBJ CORE EQUITY FUND
IBJ BLENDED TOTAL RETURN FUND
Custodian
IBJ Whitehall Bank & Trust Company
One State Street
New York, NY 10004
SEMI-ANNUAL REPORT
Counsel
Paul, Weiss, Rifkind, Wharton & Garrison
1285 Sixth Avenue
New York, New York 10019
-----------------------------------
Independent Accountants MAY 31, 1999
Ernst & Young LLP -----------------------------------
787 Seventh Avenue
New York, New York 10019
This report is for the information of Mutual fund shares are not deposits
the shareholders of IBJ Funds Trust. Its or obligations of, or guaranteed
use in connection with any offering of by, any depository institution.
the Trust's shares is authorized only in Shares are not insured by the FDIC,
case of a concurrent or prior delivery Federal Reserve Board or any other
of the Trust's current prospectus. agency, and are subject to
investment risks, including
possible loss of principal amount
invested.
