<PAGE>
WHITEHALL FUNDS TRUST
SEMI-ANNUAL REPORT
May 31, 2000
[GRAPHIC OMITTED]
W 1923
WHITEHALL GROWTH FUND
WHITEHALL GROWTH AND INCOME FUND
WHITEHALL INCOME FUND
WHITEHALL MONEY MARKET FUND
IBJ WHITEHALL FINANCIAL GROUP
<PAGE>
WHITEHALL FUNDS TRUST
--------------------------------------------------------------------------------
Fellow Shareholder:
We are pleased to submit this semi-annual report for the six month period
ending May 31, 2000.
Equity markets were quite volatile during the first half of the year. The
average daily percentage change in the Standard and Poor's 500 Index (the "S&P
500 Index") and NASDAQ indices during the second quarter alone was 1.3% and
2.7%, respectively, both historic records. All three major market indices,
including the S&P 500 Index, Dow Jones Industrial Average and the NASDAQ
Composite, finished lower in the quarter and are down for the year-to-period
ending June 30th.
U.S. fixed income markets remain in an inverted yield curve - yields on
shorter-term securities exceed those on longer dated securities. The inversion
in part reflects the scarcity value of Treasury securities given the current
budget surplus and may also reflect a belief by investors that inflation is more
of a short-term versus long-term threat. As measured by the 10-year U.S.
Treasury note, yields were under upward pressure in April and May based on
concern of an overheating economy. Rates have since declined to a level slightly
above where they started the quarter as signs of an economic slowdown have eased
inflation concerns.
The Federal Reserve (the "Fed") left interest rates unchanged at its June
28th meeting citing preliminary evidence of moderating growth in the economy.
Recent economic figures suggest that the Fed's interest rate hikes over the past
year, possibly in conjunction with higher oil and gas prices, have dampened
consumer spending, slowed the pace of job creation and taken some of the
exuberance out of the stock market. However, the Fed maintained its stance of
leaning toward future rate increases because the moderation in growth is
"still tentative and preliminary" and unemployment conditions remain tight.
Given the Fed's tightening bias, financial markets may continue to be choppy
until such time as investors can ascertain whether the economic slowdown is
sustainable and sufficient to restrain inflation.
The core rate of inflation has been creeping upward since the beginning of
the year, but has not reached a level that would be called troublesome.
Nonetheless, the direction remains bothersome. Serving to contain inflationary
pressures have been strong productivity gains in recent years which we expect to
continue. Interestingly, Fed Chairman Alan Greenspan recently paid homage to the
notion that such productivity gains may be secular in nature by stating, "our
economy is benefiting from structural gains in productivity that have been
driven by a remarkable wave of technological innovation."
1
<PAGE>
Throughout this year's stock market volatility, our portfolio approach has
been to invest in companies whose unique product or service offerings and
competitive positioning should drive earnings and therefore capital appreciation
over time. At such times as these when we are "fighting the Fed," stock
investing can be particularly challenging. We believe we are well positioned for
the long term in attractive growth areas of the economy, including technology,
telecommunications, media, outsourcing, financial services, pharmaceuticals and
specialty retail. The stock market may continue to be choppy for a while as
uncertainty about the Fed lingers, however we believe the constructive
underpinnings of the market - a productive and growing economy, healthy
corporate profits and restrained inflation - will ultimately pave the way for
more rewarding investment returns.
As you are no doubt well aware, the performance of our Funds during 2000
has been outstanding. Still, we approach the second half of the year with
caution. While it is always gratifying to report above-average investment
returns, we are ever mindful of our dual mandate which is to grow and preserve
our shareholders' wealth by pursuing investments which do not expose you to
undue levels of risk.
Respectfully submitted,
/S/ SIGNATURE
Marc Keller
Chief Investment Officer
2
<PAGE>
WHITEHALL FUNDS TRUST
GROWTH FUND
PORTFOLIO OF INVESTMENTS - MAY 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
SHARES VALUE
------ -----
COMMON STOCKS-- 93.45%
BANKING - 2.16%
80,000 Wells Fargo & Co................. $ 3,620,000
-------------
BEVERAGES - 0.73%
30,000 PepsiCo, Inc..................... 1,220,625
-------------
COMPUTERS - 8.12%
50,000 EMC Corp./Mass.*................. 5,815,625
60,000 Gateway 2000*.................... 2,970,000
40,000 Hewlett-Packard Co............... 4,805,000
-------------
13,590,625
-------------
DIVERSIFIED MANUFACTURING - 5.34%
6,000 Edwards Lifesciences Corp.*...... 121,875
105,000 General Electric Co.............. 5,525,625
60,000 Honeywell International, Inc..... 3,281,250
-------------
8,928,750
-------------
ENTERTAINMENT - 3.23%
56,000 Fox Entertainment Group, Inc.,
Class A*......................... 1,463,000
50,000 Time Warner, Inc................. 3,946,875
-------------
5,409,875
-------------
FINANCIAL SERVICES - 5.84%
50,000 Fannie Mae....................... 3,006,250
60,000 Household International, Inc..... 2,820,000
40,000 Merrill Lynch & Co............... 3,945,000
-------------
9,771,250
-------------
HEALTH CARE SERVICES - 3.14%
30,000 Baxter International, Inc........ 1,995,000
50,250 Cardinal Health, Inc............. 3,259,969
-------------
5,254,969
-------------
HOUSEHOLD PRODUCTS - 1.89%
60,000 Colgate-Palmolive Co............. 3,157,500
-------------
INSURANCE - 2.86%
42,500 American International
Group, Inc....................... 4,783,906
-------------
OIL AND GAS - 3.74%
41,403 Exxon Mobil Corp................. 3,449,388
55,000 Halliburton Co................... 2,805,000
-------------
6,254,388
-------------
PHARMACEUTICALS - 8.03%
106,000 Amgen, Inc.*..................... 6,744,250
60,000 Bristol-Myers Squibb Co.......... 3,303,750
Shares Value
------ -----
PHARMACEUTICALS (CONTINUED)
76,000 Pfizer, Inc...................... $ 3,386,750
-------------
13,434,750
-------------
RESTAURANTS - 1.93%
90,000 McDonald's Corp.................. 3,223,125
-------------
RETAIL - 3.08%
88,000 Costco Cos., Inc.*............... 2,810,500
90,000 Kroger Co.*...................... 1,788,750
80,000 Office Depot, Inc.*.............. 565,000
-------------
5,164,250
-------------
SEMICONDUCTORS - 25.34%
120,000 Altera Corp.*.................... 10,305,000
60,000 Intel Corp....................... 7,477,500
140,000 Maxim Integrated Products, Inc.*. 8,881,250
60,000 Texas Instruments, Inc....... 4,335,000
150,000 Xilinx, Inc.*................ 11,418,750
-------------
42,417,500
-------------
TECHNOLOGY - 14.86%
130,000 Applied Materials, Inc.*......... 10,855,000
60,000 Micron Technology, Inc.*......... 4,196,250
112,500 Molex, Inc....................... 5,491,406
90,000 Novellus Systems, Inc.*.......... 4,336,875
-------------
24,879,531
-------------
TELECOMMUNICATIONS - 3.16%
60,000 Sprint Corp. (FON Group)......... 3,630,000
30,000 Sprint Corp. (PCS Group)*........ 1,665,000
-------------
5,295,000
-------------
TOTAL COMMON STOCKS ............. 156,406,044
-------------
(Cost $62,381,573)
INVESTMENT COMPANY - 6.64%
11,116,548 Bank of New York Cash Reserve.... 11,116,548
-------------
TOTAL INVESTMENT COMPANY ........ 11,116,548
-------------
(Cost $11,116,548)
TOTAL INVESTMENTS - 100.09%...... 167,522,592
-------------
(Cost $73,498,121)
OTHER ASSETS
NET OF LIABILITIES - (0.09)%..... (147,044)
-------------
NET ASSETS - 100.00%............. $167,375,548
-------------
-------------
-------------------------------
* Non-income producing security.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
WHITEHALL FUNDS TRUST
GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS - MAY 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
Shares Value
------ -----
COMMON STOCKS - 63.64%
BANKING - 1.50%
23,000 Wells Fargo & Co................. $ 1,040,750
-------------
BEVERAGES - 1.58%
27,000 PepsiCo, Inc..................... 1,098,562
-------------
COMPUTERS - 2.35%
13,600 Hewlett-Packard Co............... 1,633,700
-------------
CONSUMER GOODS - 1.34%
15,400 Kimberly-Clark Corp.............. 931,700
-------------
DIVERSIFIED MANUFACTURING - 4.50%
2,400 Edwards Lifesciences Corp.*...... 48,750
39,900 General Electric Co.............. 2,099,737
18,000 Honeywell International, Inc..... 984,375
-------------
3,132,862
-------------
ENTERTAINMENT - 1.36%
12,000 Time Warner, Inc................. 947,250
-------------
FINANCIAL SERVICES - 1.35%
20,000 Household International, Inc..... 940,000
-------------
FOOD SERVICE - 1.21%
20,000 Sysco Corp....................... 838,750
-------------
HEALTH CARE SERVICES - 1.69%
12,000 Baxter International, Inc........ 798,000
5,835 Cardinal Health, Inc............. 378,546
-------------
1,176,546
-------------
HOUSEHOLD PRODUCTS - 1.21%
16,000 Colgate-Palmolive Co............. 842,000
-------------
INSURANCE - 2.02%
12,500 American International Group, Inc. 1,407,031
-------------
OIL AND GAS - 3.10%
25,861 Exxon Mobil Corp................. 2,154,545
-------------
PHARMACEUTICALS - 5.30%
30,000 Amgen, Inc.*..................... 1,908,750
8,000 Bristol-Myers Squibb Co.......... 440,500
30,000 Pfizer, Inc...................... 1,336,875
-------------
3,686,125
-------------
RESTAURANTS - 1.34%
26,000 McDonald's Corp.................. 931,125
-------------
Shares Value
------ -----
RETAIL - 3.16%
20,000 Costco Cos., Inc.*............... $ 638,750
12,000 CVS Corp......................... 522,000
41,600 Kroger Co.*...................... 826,800
30,000 Office Depot, Inc.*.............. 211,875
-------------
2,199,425
-------------
SEMICONDUCTORS - 18.67%
40,000 Altera Corp.*.................... 3,435,000
15,000 Intel Corp....................... 1,869,375
54,000 Maxim Integrated Products, Inc.*. 3,425,625
56,000 Xilinx, Inc.*.................... 4,263,000
-------------
12,993,000
-------------
TECHNOLOGY - 11.96%
44,000 Applied Materials, Inc.*......... 3,674,000
24,000 Micron Technology, Inc.*......... 1,678,500
31,250 Molex, Inc....................... 1,525,391
30,000 Novellus Systems, Inc.*.......... 1,445,625
-------------
8,323,516
-------------
TOTAL COMMON STOCKS ............. 44,276,887
-------------
(Cost $18,973,316)
CREDIT
PAR VALUE RATINGS(DAGGER)
--------- ---------------
CORPORATE OBLIGATIONS - 19.01%
AEROSPACE-- 0.60%
$ 442,000 Lockheed Martin Corp.,
7.250%, 05/15/06....... BBB-/Baa3 417,690
----------
AUTOMOBILES - 0.25%
200,000 Delphi Automotive Systems
Corp., Notes
6.500%, 05/01/09....... BBB/Baa2 176,000
----------
BANKING - 1.94%
1,000,000 Deutsche Ausgleichsbank
6.500%, 09/15/04....... AAA/NA 971,250
400,000 Northern Trust Co.,
Subordinated Notes
6.700%, 09/15/05....... A+/A1 381,500
----------
1,352,750
----------
COMPUTERS - 0.43%
300,000 Sun Microsystems, Inc.,
Senior Notes
7.000%, 08/15/02...... BBB+/Baa1 295,500
----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
WHITEHALL FUNDS TRUST
GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) - MAY 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CREDIT
PAR VALUE RATINGS(DAGGER) VALUE
--------- --------------- -----
DIVERSIFIED MANUFACTURING - 0.71%
$ 500,000 Honeywell International, Inc. Notes,
7.500%, 03/01/10....... A/A2 $ 494,375
----------
FINANCIAL SERVICES - 7.60%
500,000 Abbey National Plc,
Subordinated Notes
6.690%, 10/17/05....... AA-/Aa3 470,000
500,000 Associates Corp., N.A.,
Senior Note
6.000%, 07/15/05....... AA-/Aa3 458,125
500,000 CitiGroup, Inc., Senior Note
5.800%, 03/15/04....... AA-/Aa2 471,250
500,000 Duke Capital Corp., Senior Note
7.500%, 10/01/09....... A/A3 474,375
500,000 Enhance Financial Services Group,
Debentures
6.750%, 03/01/03....... A+/A2 484,375
500,000 ERAC USA Finance Co., MTN
6.350%, 01/15/01 (A)... BBB+/Baa1 494,375
500,000 Ford Motor Credit Co., Notes
6.700%, 07/16/04....... A/A2 478,750
500,000 Geico Corp., Notes
7.500%, 04/15/05....... AAA/Aa1 498,750
500,000 General Electric Capital Corp.,
EMTN
6.250%, 03/27/01....... AAA/Aaa 494,900
500,000 Loews Corp., Notes
6.750%, 12/15/06....... AA-/A1 466,875
500,000 Santander Financial Issuances,
Yankee
7.875%, 04/15/05....... A/A1 493,750
----------
5,285,525
----------
HEALTH CARE SERVICES - 0.67%
500,000 Columbia/HCA Healthcare Corp.,
MTN
9.000%, 12/15/14....... BB+/Ba2 465,625
----------
INDUSTRIAL GOODS AND SERVICES - 3.48%
500,000 Comdisco, Inc., Series H, MTN
7.230%, 08/16/01....... BBB+/Baa1 494,375
350,000 Crown Cork & Seal Financial Plc,
Yankee
6.750%, 12/15/03....... BBB/Baa2 323,750
CREDIT
PAR VALUE RATINGS(DAGGER) VALUE
--------- --------------- -----
INDUSTRIAL GOODS AND SERVICES (CONTINUED)
$ 400,000 Deere & Co., Debentures
7.850%, 05/15/10....... A+/A $ 391,930
150,000 du Pont (E.I.) de Nemours & Co.,
Notes
6.875%, 10/15/09....... AA-/Aa3 142,125
600,000 P.H. Glatfelter, Notes, Series B
6.875%, 07/15/07....... BBB+/Baa2 544,500
300,000 PPG Industries, Inc., Notes
6.750%, 08/15/04....... A/A1 291,000
250,000 WMX Technologies, Notes
8.000%, 04/30/04....... BBB/Ba1 232,500
----------
2,420,180
----------
OIL AND GAS - 1.66%
350,000 Amoco Canada Petroleum Co.,
Yankee
7.950%, 10/01/22....... AA+/Aa1 350,000
456,000 Imperial Oil, Ltd.,
Debenture, Yankee
8.750%, 10/15/19....... AA+/Aa2 471,960
334,000 Occidental Petroleum Corp.,
Debenture
11.125%, 06/01/19...... Baa3/BBB- 334,417
----------
1,156,377
----------
TECHNOLOGY - 0.69%
500,000 Applied Materials, Inc.,
Series A, MTN
7.000%, 09/06/05....... A-/A3 476,875
----------
TRANSPORTATION - 0.67%
300,000 Norfolk Southern Railway,
Equipment Trust
5.950%, 04/01/07....... A+/Aa3 262,500
250,000 Norfolk Southern Railway,
Equipment Trust, Series I
6.150%, 04/01/14....... A/Aa3 205,625
----------
468,125
----------
UTILITIES - 0.31%
225,000 Duquesne Light Co.,
Collateral Trust
8.375%, 05/15/24....... BBB+/A3 216,563
----------
TOTAL CORPORATE OBLIGATIONS . 13,225,585
----------
(Cost $13,659,263)
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
WHITEHALL FUNDS TRUST
GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) - MAY 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CREDIT
PAR VALUE RATINGS(DAGGER) VALUE
--------- --------------- -----
ASSET-BACKED SECURITIES - 7.17%
$ 250,000 Aames Mortgage Trust, Series
1998-B, Class A3F
6.335%, 08/15/24....... AAA/Aaa $ 244,625
725,041 Arcadia Automobile
Receivables Trust,
Series 1999-C, Class A3
7.200%, 06/15/07....... AAA/Aaa 715,550
300,000 Capital Auto Receivables Asset
Trust, Series 1999-2, Class A4
6.300%, 05/15/04....... AAA/Aaa 295,497
500,000 Chase Manhattan Credit
Card Master
Trust, Series 1999-3, Class A
6.660%, 01/15/07....... AAA/Aaa 484,020
500,000 Discover Card Master Trust I,
Series 1999-6, Class A
6.850%, 07/17/07....... AAA/Aaa 486,400
500,000 First Union National Bank
Commercial Mortgage,
Series 2000-C1, Class A1
7.739%, 07/15/09....... AAA/Aaa 497,144
500,000 GMAC Commercial Mortgage
Securities Inc.,
Series 1997-C2, Class A3
6.566%, 11/15/07....... AAA/Aaa 461,064
500,000 Household Automotive Trust IV,
Series 2000-1, Class A4
7.480%, 12/18/06....... AAA/Aaa 500,040
500,000 MBNA Master Credit Card Trust,
Series 1999-G, Class A
6.350%, 12/15/06....... AAA/Aaa 479,095
475,000 PECO Energy Transition Trust,
Series 1999-A, Class A6
6.050%, 03/01/09....... AAA/Aaa 433,167
400,000 PP&L Transition Bond Co., LLC,
Series 1999-1, Class A5
6.830%, 03/25/07....... AAA/Aaa 389,652
----------
TOTAL ASSET-BACKED SECURITIES 4,986,254
----------
(Cost $5,081,041)
CREDIT
PAR VALUE RATINGS(DAGGER) VALUE
--------- --------------- -----
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 7.08%
FEDERAL HOME LOAN
MORTGAGE CORPORATION-- 3.15%
$ 220,000 6.943%, 03/21/07....... AAA/Aaa $ 213,483
100,000 7.000%, 03/15/10....... AAA/Aaa 96,605
500,000 7.500%, 09/15/21....... AAA/Aaa 489,656
473,894 7.500%, 12/15/27....... AAA/Aaa 467,460
1,000,000 6.750%, 09/15/29....... AAA/Aaa 927,240
----------
2,194,444
----------
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 3.00%
382 6.500%, 08/25/04....... AAA/Aaa 373
1,182,258 6.500%, 04/01/19....... AAA/Aaa 1,093,479
1,000,000 8.000%, 06/01/30 (B)... AAA/Aaa 991,250
----------
2,085,102
----------
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION - 0.08%
50,353 13.000%, 03/15/12...... AAA/Aaa 57,905
----------
U.S. TREASURY BONDS - 0.85%
450,000 6.250%, 08/15/23....... AAA/Aaa 444,238
145,000 6.375%, 08/15/27....... AAA/Aaa 146,109
----------
590,347
----------
TOTAL U.S. GOVERNMENT
AND AGENCY OBLIGATIONS ...... 4,927,798
----------
(Cost $5,085,475)
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
WHITEHALL FUNDS TRUST
GROWTH AND INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) - MAY 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
Shares Value
------ -----
INVESTMENT COMPANY - 3.83%
2,668,781 Bank of New York Cash Reserve $ 2,668,781
-------------
TOTAL INVESTMENT COMPANY ..... 2,668,781
-------------
(Cost $2,668,781)
TOTAL INVESTMENTS - 100.73%... 70,085,305
-------------
(Cost $45,467,876)
OTHER ASSETS
NET OF LIABILITIES - (0.73)%.. (510,515)
-------------
NET ASSETS - 100.00%.......... $ 69,574,790
=============
------------------------
* Non-income producing security.
(A) Security exempt from registration under Rule 144A of the Securities
Act of 1933, as amended. This security may only be resold, in
transactions exempt from registration, to qualified institutional
buyers. At May 31, 2000, this security amounted to $494,375 or 0.71%
of net assets.
(B) When-issued security.
EMTN Euro Medium Term Note
MTN Medium Term Note
(DAGGER) See page 12 for Credit Rating Summary.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
WHITEHALL FUNDS TRUST
INCOME FUND
PORTFOLIO OF INVESTMENTS - MAY 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CREDIT
PAR VALUE RATINGS(DAGGER) VALUE
--------- --------------- -----
CORPORATE OBLIGATIONS - 55.84%
AEROSPACE - 1.30%
$ 467,000 Lockheed Martin Corp.,
7.250%, 05/15/06....... BBB-/Baa3 $ 441,315
----------
AUTOMOBILES - 0.78%
300,000 Delphi Automotive Systems
Corp., Notes
6.500%, 05/01/09....... BBB/Baa2 264,000
----------
BANKING - 3.46%
200,000 BankAmerica Corp., MTN
7.125%, 05/12/05....... A+/Aa2 193,250
700,000 Northern Trust Co.,
Subordinated Notes
6.700%, 09/15/05....... A+/A1 667,625
350,000 Swiss Bank Corp., NY,
Subordinated Debentures
7.000%, 10/15/15....... AA/Aa2 312,812
----------
1,173,687
----------
DURABLE GOODS - 0.75%
250,000 Whirlpool Corp., Debentures
9.000%, 03/01/03....... BBB+/Baa1 255,625
----------
FINANCIAL SERVICES - 21.87%
200,000 Abbey National Plc,
Subordinated Notes
6.690%, 10/17/05....... AA-/Aa3 188,000
500,000 Associates Corp., N.A.,
Senior Note
6.000%, 07/15/05....... AA-/Aa3 458,125
500,000 CitiGroup, Inc., Senior Note
5.800%, 03/15/04....... AA-/Aa2 471,250
385,000 Commercial Credit Co., Notes
6.875%, 05/01/02....... AA-/Aa3 379,706
319,000 Dean Witter,
Discover & Co., Notes
6.875%, 03/01/03....... AA-/Aa3 312,221
500,000 Duke Capital Corp.,
Senior Notes
7.500%, 10/01/09....... A/A3 474,375
500,000 Enhance Financial Services Group,
Debentures
6.750%, 03/01/03....... A+/A2 484,375
CREDIT
PAR VALUE RATINGS(DAGGER) VALUE
--------- --------------- -----
FINANCIAL SERVICES (CONTINUED)
$ 550,000 ERAC USA Finance Co., MTN
6.350%, 01/15/01 (A)... BBB+/Baa1$ 543,813
500,000 Ford Motor Credit Co., MTN
7.750%, 02/15/07....... A+/A2 498,125
500,000 Geico Corp., Notes
7.500%, 04/15/05....... AAA/Aa1 498,750
500,000 General Electric Capital Corp.,
EMTN
6.250%, 03/27/01....... AAA/Aaa 494,900
500,000 Household Finance Corp., Notes
6.450%, 03/15/01....... A/A2 495,625
270,000 Lehman Brothers Holdings Inc.,
Notes
8.500%, 05/01/07....... A/A3 267,300
750,000 Loews Corp., Notes
6.750%, 12/15/06....... AA-/A1 700,313
200,000 National Rural Utilities Cooperative
Finance Corp., Collateral Trust
6.500%, 09/15/02....... AA/Aa3 196,250
600,000 Santander Financial Issuances,
Yankee
7.875%, 04/15/05....... A/A1 592,500
400,000 St. Paul Cos., Inc.,
Series B, MTN
6.740%, 07/18/05....... A+/A1 372,000
----------
7,427,628
----------
FOOD SERVICE - 2.02%
350,000 Nabisco, Inc., Notes
6.850%, 06/15/05....... BBB/Baa2 312,813
400,000 Tyson Foods, Inc., MTN
6.625%, 10/17/05....... A-/A3 372,500
----------
685,313
----------
INDUSTRIAL GOODS AND SERVICES - 12.71%
500,000 Cargill, Inc., Notes,
6.150%, 02/25/08 (A)... A+/A1 438,750
500,000 Comdisco, Inc., Series H,
MTN
7.230%, 08/16/01....... BBB+/Baa1 494,375
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
WHITEHALL FUNDS TRUST
INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) - MAY 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CREDIT
PAR VALUE RATINGS(DAGGER) VALUE
--------- --------------- -----
INDUSTRIAL GOODS AND SERVICES (CONTINUED)
$ 350,000 Crown Cork & Seal Financial Plc,
Yankee
6.750%, 12/15/03....... BBB/Baa2 $ 323,750
600,000 Deere & Co., Debentures
7.850%, 05/15/10....... A+/A2 587,895
400,000 Dow Chemical Co., Debentures
7.375%, 11/01/29....... A/A1 376,500
250,000 du Pont (E.I.) de Nemours
& Co., Notes
6.875%, 10/15/09....... AA-/Aa3 236,875
300,000 Hertz Corp., Senior Notes
7.625%, 08/15/07....... A-/A3 293,625
500,000 Honeywell International, Inc. Notes,
7.500%, 03/01/10....... A/A2 494,375
700,000 P.H. Glatfelter, Notes, Series B
6.875%, 07/15/07....... BBB+/Baa2 635,250
200,000 USG Corp., Senior Notes
9.250%, 09/15/01....... BBB+/Baa1 203,500
250,000 WMX Technologies, Notes
8.000%, 04/30/04....... BBB/Ba1 232,500
----------
4,317,395
----------
OIL AND GAS - 0.74%
250,000 Amoco Canada Petroleum Co.,
Yankee
7.950%, 10/01/22....... AA+/Aa1 250,000
----------
TECHNOLOGY - 1.40%
500,000 Applied Materials, Inc.,
Series A, MTN
7.000%, 09/06/05....... A-/A3 476,875
----------
TRANSPORTATION - 4.26%
431,000 Canadian National Railway Co.,
Yankee
7.000%, 03/15/04....... BBB/Baa2 418,070
350,000 Consolidated Rail Corp.,
Equipment Trust
6.860%, 12/31/07....... A1/A 324,709
300,000 CSX Corp., Notes
7.000%, 09/15/02....... BBB/Baa2 294,000
500,000 Norfolk Southern Railway,
Equipment Trust, Series I
6.150%, 04/01/14....... A/Aa3 411,250
----------
1,448,029
----------
CREDIT
PAR VALUE RATINGS(DAGGER) VALUE
--------- --------------- -----
UTILITIES - 6.55%
$ 350,000 Central Power & Light Co.,
First Mortgage
6.875%, 02/01/03....... A/A3 $ 339,500
405,000 Duquesne Light Co.,
Collateral Trust
8.375%, 05/15/24....... BBB+/A3 389,813
300,000 Illinois Power Co.,
First Mortgage
6.500%, 08/01/03....... BBB+/Baa1 288,000
300,000 Jersey Central Power & Light Co.,
First Mortgage
7.125%, 10/01/04....... A+/A2 291,000
200,000 Monongahela Power Co.,
First Mortgage
8.375%, 07/01/22....... A+/A1 193,500
400,000 New Orleans Public Service,
Inc., Notes
8.000%, 03/01/06....... BBB/Baa2 389,500
140,000 Niagara Mohawk Power Corp.,
First Mortgage
9.250%, 10/01/01....... BBB+/Baa2 142,450
196,585 Niagara Mohawk Power Corp.,
Series E, Senior Notes
7.375%, 07/01/03....... BBB-/Baa3 192,162
----------
2,225,925
----------
TOTAL CORPORATE OBLIGATIONS . 18,965,792
----------
(Cost $19,662,124)
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 30.43%
FEDERAL HOME LOAN MORTGAGE CORPORATION - 12.66%
900,000 7.000%, 03/15/10....... AAA/Aaa 869,448
520,000 7.500%, 09/15/21....... AAA/Aaa 509,242
1,551,881 7.500%, 12/15/27....... AAA/Aaa 1,530,810
1,500,000 6.750%, 09/15/29....... AAA/Aaa 1,390,860
----------
4,300,360
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 9.90%
350,000 6.700%, 06/19/07....... AAA/Aaa 334,454
1,000,000 6.625%, 09/15/09....... AAA/Aaa 941,250
1,184,963 6.500%, 04/01/19....... AAA/Aaa 1,096,091
1,000,000 8.000%, 06/01/30....... AAA/Aaa 991,250
----------
3,363,045
----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 3.43%
1,243,531 6.500%, 04/15/29....... AAA/Aaa 1,163,479
----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
WHITEHALL FUNDS TRUST
INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED) - MAY 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
CREDIT
PAR VALUE RATINGS(DAGGER) VALUE
--------- --------------- -----
U.S. TREASURY BONDS - 4.44%
$ 800,000 6.250%, 08/15/23....... AAA/Aaa $ 789,756
750,000 6.000%, 02/15/26....... AAA/Aaa 719,139
----------
1,508,895
----------
TOTAL U.S. GOVERNMENT
AND AGENCY OBLIGATIONS ...... 10,335,779
----------
(Cost $10,659,129)
ASSET-BACKED SECURITIES - 17.67%
250,000 Aames Mortgage Trust,
Series 1998-B, Class A3F
6.335%, 08/15/24....... AAA/Aaa 244,625
725,041 Arcadia Automobile Receivables
Trust, Series 1999-C, Class A3
7.200%, 06/15/07....... AAA/Aaa 715,550
500,000 Capital Auto Receivables Asset
Trust, Series 2000-1, Class A4
7.000%, 01/17/05....... AAA/Aaa 495,781
500,000 Chase Manhattan Credit Card
Master Trust, Series 1999-3,
Class A
6.660%, 01/15/07....... AAA/Aaa 484,020
316,000 Discover Card Master Trust I,
Series 1999-4, Class B
5.850%, 11/16/04....... A/A2 304,413
630,000 EQCC Home Equity Loan Trust,
Series 1999-1,Class A4F
6.134%, 07/20/28....... AAA/Aaa 564,510
1,000,000 First Union National Bank
Commercial Mortgage,
Series 2000-C1, Class-A1
7.739%, 07/15/09....... AAA/NA 994,287
500,000 GMAC Commercial Mortgage
Securities Inc.,
Series 1997-C2, Class A3
6.566%, 11/15/07....... NA/Aaa 461,064
500,000 Greenpoint Maunufactured Housing,
Series 2000-1, Class A2
7.600%, 09/20/22....... NA/Aaa 494,070
CREDIT
PAR VALUE RATINGS(DAGGER) VALUE
--------- --------------- -----
ASSET-BACKED SECURITIES (CONTINUED)
$ 500,000 Household Automotive Trust IV,
Series 2000-1, Class A4
7.480%, 12/18/06....... AAA/Aaa $ 500,040
600,000 PECO Energy Transition Trust,
Series 1999-A, Class A6
6.050%, 03/01/09....... AAA/Aaa 547,158
200,000 PP&L Transition Bond Co., LLC,
Series 1999-1, Class A5
6.830%, 03/25/07....... AAA/Aaa 194,826
----------
TOTAL ASSET-BACKED SECURITIES 6,000,344
----------
(Cost $6,112,158)
Shares
------
INVESTMENT COMPANY - 1.12%
381,821 Bank of New York Cash Reserve.. 381,821
------------
TOTAL INVESTMENT COMPANY ...... 381,821
------------
(Cost $381,821)
TOTAL INVESTMENTS - 105.06%.... 35,683,736
------------
(Cost $36,815,232)
OTHER ASSETS
NET OF LIABILITIES - (5.06)%... (1,718,385)
------------
NET ASSETS - 100.00%........... $ 33,965,351
============
------------------------------------
(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, 2000, these securities amounted to $982,563 or
2.89% of net assets.
EMTN Euro Medium Term Note
MTN Medium Term Note
(DAGGER) See page 12 for Credit Rating Summary.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
WHITEHALL FUNDS TRUST
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS - MAY 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
PAR VALUE VALUE
--------- -----
COMMERCIAL PAPER - 72.80%
AUTOMOBILE -- 4.42%
$ 700,000 DaimerChysler, N.A. Holding Corp.
6.540%, 07/21/00 (A)......... $ 693,642
----------
BEVERAGES - 8.88%
650,000 Brown-Forman Corp.
6.600%, 07/07/00 (A)......... 645,710
750,000 Coca-Cola Co.
5.000%, 06/16/00............. 747,981
----------
1,393,691
----------
CONSUMER PRODUCTS - 4.43%
700,000 Unilever Capital Corp.
6.460%, 07/10/00 (A) (B)..... 695,101
----------
FINANCIAL SERVICES - 13.28%
700,000 Ford Motor Credit Co.
6.520%, 07/19/00 (A)......... 693,915
700,000 General Electric Capital Corp.
6.000%, 07/03/00............. 695,943
700,000 General Motors Acceptance Corp.
6.560%, 07/13/00 (A)......... 694,643
----------
2,084,501
----------
INDUSTRIAL GOODS AND SERVICES - 13.93%
750,000 Abbot Laboratories
6.450%, 06/29/00............. 746,238
750,000 duPont (E.I.) deNemours & Co.
6.500%, 07/11/00 (A)......... 744,583
700,000 Siemens Capital Corp.
6.460%, 06/26/00 (A)......... 696,860
----------
2,187,681
----------
PHARMACEUTICALS - 8.86%
700,000 Bayer Corp.
6.520%, 07/18/00 (A) (B)..... 694,041
700,000 Pfizer, Inc.
6.120%, 06/19/00 (A) (B)..... 697,739
----------
1,391,780
----------
UTILITIES - 19.00%
700,000 AT&T Corp.
6.480%, 06/29/00 (A)......... 696,472
700,000 Bell Atlantic Corp.
6.550%, 07/10/00 (A)......... 498,035
500,000 BellSouth Telecomm, Inc.
6.430%, 06/23/00............. 695,033
CREDIT
PAR VALUE RATINGS(DAGGER) VALUE
--------- --------------- -----
UTILITIES (CONTINUED)
$ 400,000 Emerson Electric Co.
6.520%, 07/07/00 (A) (B)..... $ 397,392
700,000 Wisconsin Electric Fuel
6.500%, 07/06/00 (A)......... 695,576
-----------
2,982,508
-----------
TOTAL COMMERCIAL PAPER ...... 11,428,904
-----------
(Cost $11,428,904)
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (A) - 21.94%
FEDERAL FARM CREDIT BANK - 14.64%
1,800,000 6.200%, 06/05/00....... AAA/Aaa 1,798,760
500,000 6.100%, 06/07/00....... AAA/Aaa 499,492
-----------
2,298,252
-----------
FEDERAL HOME LOAN BANK - 1.58%
250,000 6.410%, 07/14/00....... AAA/Aaa 248,086
-----------
FEDERAL NATIONAL
MORTGAGE ASSOCIATION - 5.72%
900,000 6.430%, 06/21/00....... AAA/Aaa 896,830
-----------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS .......... 3,443,168
-----------
(Cost $3,443,168)
SHARES
------
INVESTMENT COMPANY - 5.18%
813,561 Bank of New York Cash Reserve.. 813,561
-----------
TOTAL INVESTMENT COMPANY ...... 813,561
-----------
(Cost $813,561)
TOTAL INVESTMENTS - 99.92%..... 15,685,633
-----------
(Cost $15,685,633)
OTHER ASSETS
NET OF LIABILITIES - 0.08%..... 13,018
-----------
NET ASSETS - 100.00%........... $15,698,651
===========
-----------------------------------------------------------------------------
(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, 2000, these securities amounted to $2,484,273 or 15.82%
of net assets.
(DAGGER) See page 12 for Credit Rating Summary.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
WHITEHALL FUNDS TRUST
PORTFOLIO OF INVESTMENTS (CONTINUED) - MAY 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
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.
12
<PAGE>
This page intentionally left blank.
13
<PAGE>
WHITEHALL FUNDS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
MAY 31, 2000 (UNAUDITED)
-------------------------------------------------------------------------------
<TABLE>
GROWTH GROWTH AND INCOME MONEY
FUND INCOME FUND FUND MARKET FUND
------------ ------------- ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Investments:
Investments at cost......................... $ 73,498,121 $ 45,467,876 $ 36,815,232 $ 15,685,633
Net unrealized appreciation (depreciation).. 94,024,471 24,617,429 (1,131,496) --
------------ ------------- ------------ ------------
Total investments at value.................. 167,522,592 70,085,305 35,683,736 15,685,633
Cash.......................................... 61,421 48,456 -- --
Receivables:
Investments sold............................ -- 305,418 860,969 --
Fund shares sold............................ 187,291 40,691 24,357 82,849
Dividends and interest...................... 85,925 357,551 481,425 11,493
Other assets.................................. 1,719 1,719 1,719 1,719
------------ ------------- ------------ ------------
Total Assets................................ 167,858,948 70,839,140 37,052,206 15,781,694
------------ ------------- ------------ ------------
LIABILITIES:
Payables:
To custodian................................ -- -- 7,394 28,326
Dividends payable........................... -- -- -- 1,060
Investments purchased....................... -- 989,139 989,139 --
Fund shares repurchased..................... 279,690 178,820 2,038,557 42,458
Advisory fees............................... 118,280 49,043 19,595 --
Administration fees......................... 20,873 8,504 4,522 1,986
Co-Administration fees...................... 4,175 1,731 904 --
Transfer agent fee.......................... 11,628 13,561 16,683 6,702
Trustees fees............................... 4,555 2,075 1,153 446
12b-1 distribution fees..................... 2,644 1,490 714 --
Accrued expenses and other payables........... 41,555 19,987 8,194 2,065
------------ ------------- ------------ ------------
Total Liabilities........................... 483,400 1,264,350 3,086,855 83,043
------------ ------------- ------------ ------------
NET ASSETS..................................... $167,375,548 $ 69,574,790 $ 33,965,351 $ 15,698,651
============ ============= ============ ============
NET ASSETS CONSIST OF:
Paid-in Capital............................... $ 69,780,619 $ 44,098,149 $ 36,063,497 $ 15,710,958
Accumulated undistributed (distribution in
excess of)net investment income............. (482,243) 168,546 -- --
Accumulated net realized gain (loss)
on investments sold......................... 4,052,701 690,666 (966,650) (12,307)
Net unrealized appreciation (depreciation)
on investments.............................. 94,024,471 24,617,429 (1,131,496) --
------------ ------------- ------------ ------------
TOTAL NET ASSETS............................... $167,375,548 $ 69,574,790 $ 33,965,351 $ 15,698,651
============ ============= ============ ============
SERVICE CLASS:
Net Assets.................................. $167,375,548 $ 69,574,790 $ 33,965,351 $ 15,698,651
============ ============= ============ ============
Shares of beneficial interest outstanding... 7,139,431 4,498,263 3,558,592 15,711,070
============ ============= ============ ============
Net asset value, offering and
redemption price per share...............
(Net Assets/Shares Outstanding)........... $ 23.44 $ 15.47 $ 9.54 $ 1.00
============ ============= ============ ============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
WHITEHALL FUNDS TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
Growth Growth and Income Money
Fund Income Fund Fund Market Fund
------------ ------------- ------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest.................................... $ -- $ 759,522 $ 1,251,781 $ 590,556
Dividends................................... 411,849 136,829 16,141 14,155
------------ ------------- ------------- ------------
Total Income.............................. 411,849 896,351 1,267,922 604,711
------------ ------------- ------------- ------------
EXPENSES:
Advisory.................................... 599,259 254,532 106,311 36,061
Co-Administration........................... 23,273 9,929 5,330 3,091
Administration.............................. 116,366 49,497 26,652 15,458
Transfer Agent.............................. 54,927 45,271 41,304 32,905
Custody..................................... 31,064 13,273 7,082 4,133
Professional Fees........................... 54,288 22,466 14,250 7,857
Trustees.................................... 9,380 3,862 2,067 1,414
Printing.................................... 12,655 5,422 2,962 1,418
Registration and filing fees................ 7,713 6,143 6,106 5,362
Amortization of organization costs.......... 976 976 976 976
12b-1 distribution fees..................... 3,877 1,649 888 --
Miscellaneous............................... 4,374 320 1,194 2,525
------------ ------------- ------------- ------------
Total expenses before waivers............... 918,152 413,340 215,122 111,200
------------ ------------- ------------- ------------
Less expenses waived ....................... (24,060) (10,721) (6,120) (44,785)
------------ ------------- ------------- ------------
Net expenses................................ 894,092 402,619 209,002 66,415
------------ ------------- ------------- ------------
NET INVESTMENT INCOME (LOSS).................. (482,243) 493,732 1,058,920 538,296
------------ ------------- ------------- ------------
NET REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Net realized gain (loss) on
investment transactions................... 4,052,733 697,819 (905,152) (2,947)
Net change in unrealized appreciation
(depreciation) on investments............. 28,919,494 9,444,516 (6,019) --
------------ ------------- ------------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS.................. 32,972,227 10,142,335 (911,171) (2,947)
------------ ------------- ------------- ------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS................... $ 32,489,984 $ 10,636,067 $ 147,749 $ 535,349
============ ============= ============ ============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
WHITEHALL FUNDS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
-------------------------------------------------------------------------------
<TABLE>
GROWTH FUND
----------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 2000 NOVEMBER 30,
(UNAUDITED) 1999
------------- ------------
<S> <C> <C>
INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss).......................................... $ (482,243) $ (282,890)
Net realized gain (loss) on investment transactions................... 4,052,733 14,568,242
Net change in unrealized appreciation (depreciation) on investments... 28,919,494 32,359,170
------------ ------------
Net increase (decrease) in net assets resulting from operations.......... 32,489,984 46,644,522
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Premium Class*........................................................ -- --
Service Class......................................................... -- --
------------ ------------
-- --
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS IN EXCESS OF NET INVESTMENT INCOME:
Premium Class*........................................................ -- --
Service Class......................................................... -- --
------------ ------------
-- --
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM REALIZED GAINS ON INVESTMENTS:
Premium Class*........................................................ (2,673) (2,055)
Service Class......................................................... (14,226,351) (14,694,987)
------------ ------------
(14,229,024) (14,697,042)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued........................................... 20,593,115 16,667,882
Dividends reinvested.................................................. 14,216,432 14,696,927
Cost of shares redeemed............................................... (17,216,203) (56,293,818)
------------ ------------
Change in net assets from capital share transactions..................... 17,593,344 (24,929,009)
------------ ------------
Net change in net assets................................................. 35,854,304 7,018,471
NET ASSETS:
Beginning of year..................................................... 131,521,244 124,502,773
------------ ------------
End of period (including line A)..................................... $167,375,548 $131,521,244
============ ============
(A) Undistributed (distribution in excess of) net investment income...... $ (482,243) $ --
============ ============
</TABLE>
16
<PAGE>
<TABLE>
GROWTH AND
INCOME FUND INCOME FUND
--------------------------- ---------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MAY 31, 2000 NOVEMBER 30, MAY 31, 2000 NOVEMBER 30
(UNAUDITED) 1999 (UNAUDITED) 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss).......................................... $ 493,732 $ 1,244,452 $ 1,058,920 $ 1,985,791
Net realized gain (loss) on investment transactions................... 697,819 164,669 (905,152) (41,725)
Net change in unrealized appreciation (depreciation) on investments... 9,444,516 7,272,465 (6,019) (2,615,002)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting from operations.......... 10,636,067 8,681,586 147,749 (670,936)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Premium Class*........................................................ (113) (273) (186) (804)
Service Class......................................................... (591,314) (981,730) (1,058,734) (2,076,255)
----------- ----------- ----------- -----------
(591,427) (982,003) (1,058,920) (2,077,059)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS IN EXCESS OF NET INVESTMENT INCOME:
Premium Class*........................................................ -- -- -- (10)
Service Class......................................................... -- -- -- (24,367)
----------- ----------- ----------- -----------
-- -- -- (24,377)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM REALIZED GAINS ON INVESTMENTS:
Premium Class*........................................................ (51) (1,434) -- (95)
Service Class......................................................... (167,378) (5,724,142) -- (253,847)
----------- ----------- ----------- -----------
(167,429) (5,725,576) -- (253,942)
----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued........................................... 6,671,356 4,923,466 4,600,560 4,953,315
Dividends reinvested.................................................. 758,751 6,707,555 859,477 2,357,031
Cost of shares redeemed............................................... (7,323,438) (20,291,830) (6,357,708) (7,327,447)
----------- ----------- ----------- -----------
Change in net assets from capital share transactions..................... 106,669 (8,660,809) (897,671) (17,101)
----------- ----------- ----------- -----------
Net change in net assets................................................. 9,983,880 (6,686,802) (1,808,842) (3,043,415)
NET ASSETS:
Beginning of year..................................................... 59,590,910 66,277,712 35,774,193 38,817,608
----------- ----------- ----------- -----------
End of period (including line A)..................................... $69,574,790 $59,590,910 $33,965,351 $35,774,193
=========== =========== =========== ===========
(A) Undistributed (distribution in excess of) net investment income...... $ 168,546 $ 266,241 $ -- $ --
=========== =========== =========== ===========
</TABLE>
<TABLE>
MONEY
MARKET FUND
----------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 2000 NOVEMBER 30,
(UNAUDITED) 1999
----------- -----------
<S> <C> <C>
INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss).......................................... $ 538,296 $ 899,982
Net realized gain (loss) on investment transactions................... (2,947) (559)
Net change in unrealized appreciation (depreciation) on investments... -- --
------------- -----------
Net increase (decrease) in net assets resulting from operations.......... 535,349 899,423
------------- -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Premium Class*........................................................ (186) (621)
Service Class......................................................... (538,110) (899,361)
------------- -----------
(538,296) (899,982)
------------- -----------
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........................................... 27,714,633 41,324,463
Dividends reinvested.................................................. 513,858 900,063
Cost of shares redeemed............................................... (33,041,363) (40,307,779)
------------- -----------
Change in net assets from capital share transactions..................... (4,812,872) 1,916,747
------------- -----------
Net change in net assets................................................. (4,815,819) 1,916,188
NET ASSETS:
Beginning of year..................................................... 20,514,470 18,598,282
------------- -----------
End of period (including line A)..................................... $ 15,698,651 $20,514,470
============== ===========
(A) Undistributed (distribution in excess of) net investment income...... $ -- $ --
============= ===========
-----------------------------------------------------------
</TABLE>
* The Premium Class closed on February 23, 2000 with respect to the Growth
Fund, Growth and Income Fund and Income Fund, and on March 2, 2000 with
respect to the Money Market Fund.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16-17
<PAGE>
WHITEHALL FUNDS TRUST
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
GROWTH FUND
SERVICE CLASS
--------------------------------------------------------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
MAY 31, 2000 YEARS ENDED NOVEMBER 30, NOVEMBER 30,
-----------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995*
--------- --------- --------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period........... $ 20.97 $ 16.51 $ 16.67 $ 15.37 $ 12.97 $ 10.00
--------- --------- --------- --------- -------- ---------
Income from Investment
Operations:
Net investment
income (loss)................. (0.07) (0.05) 0.07 0.35 0.14 0.13
Net realized and unrealized
gain on investment
transactions.................. 4.77 6.46 2.37 3.03 2.90 2.84
--------- --------- --------- --------- -------- ---------
Total income from
investment operations......... 4.70 6.41 2.44 3.38 3.04 2.97
--------- --------- --------- --------- -------- ---------
Less Dividends from:
Net investment income........... -- -- (0.05) (0.31) (0.19) --
In excess of net
investment income............. -- -- -- (0.24) -- --
Realized gains.................. (2.23) (1.95) (2.55) (1.53) (0.45) --
--------- --------- --------- --------- -------- ---------
Total Distributions............. (2.23) (1.95) (2.60) (2.08) (0.64) --
--------- --------- --------- --------- -------- ---------
Net change in net asset
value per share................. 2.47 4.46 (0.16) 1.30 2.40 2.97
--------- --------- --------- --------- -------- ---------
NET ASSET VALUE,
End of Period................... $ 23.44 $ 20.97 $ 16.51 $ 16.67 $ 15.37 $ 12.97
========= ========= ========= ========= ======== =========
Total Return (a).............. 24.22% 44.49% 17.87% 24.68% 24.61% 29.70%
Ratios/Supplemental Data:
Net Assets at the end of
period (in thousands)........... $ 167,376 $ 131,496 $ 124,485 $ 105,386 $ 93,640 $ 86,596
Ratios to average net assets:
Expenses before waivers(DAGGER) 1.18%** 1.04% 1.04% 0.99% 0.99% 1.09%**
Expenses net of waivers......... 1.15%** 0.93% 0.94% 0.89% 0.89% 0.89%**
Net investment
income (loss)................. (0.62)%** (0.23)% 0.32% 0.74% 0.93% 1.29%**
Portfolio Turnover Rate........... 2% 6% 92% 44% 27% 37%
-----------------------------------------------------------
<FN>
* Commencement of operations, February 1, 1995.
** Annualized.
(DAGGER) During the period, certain fees were reduced and/or reimbursed.
If such 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.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
GROWTH AND INCOME FUND
SERVICE CLASS
--------------------------------------------------------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
MAY 31, 2000 YEARS ENDED NOVEMBER 30, NOVEMBER 30,
-----------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995*
--------- --------- --------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period........... $ 13.33 $ 12.90 $ 13.51 $ 12.76 $ 11.79 $ 10.00
--------- --------- --------- --------- -------- ---------
Income from Investment
Operations:
Net investment income........... 0.11 0.26 0.38 0.50 0.34 0.31
Net realized and unrealized
gain on investment
transactions.................. 2.20 1.50 1.41 1.27 1.26 1.79
--------- --------- --------- --------- -------- ---------
Total income from
investment operations......... 2.31 1.76 1.79 1.77 1.60 2.10
--------- --------- --------- --------- -------- ---------
Less Dividends from:
Net investment income........... (0.13) (0.20) (0.38) (0.50) (0.36) (0.31)
Realized gains.................. (0.04) (1.13) (2.02) (0.52) (0.27) --
--------- --------- --------- --------- -------- ---------
Total Distributions............. (0.17) (1.33) (2.40) (1.02) (0.63) (0.31)
--------- --------- --------- --------- -------- ---------
Net change in net asset
value per share................. 2.14 0.43 (0.61) 0.75 0.97 1.79
--------- --------- --------- --------- -------- ---------
NET ASSET VALUE,
End of Period................... $ 15.47 $ 13.33 $ 12.90 $ 13.51 $ 12.76 $ 11.79
========= ========= ========= ========= ======== =========
Total Return (a).................. 17.42% 15.23% 15.98% 14.69% 14.08% 20.82%
Ratios/Supplemental Data:
Net Assets at the end of
period (in thousands)........... $ 69,575 $ 59,572 $ 66,262 $ 61,867 $ 64,232 $ 50,583
Ratios to average net assets:
Expenses before waiver(DAGGER).. 1.25%** 1.11% 1.01% 1.07% 1.09% 1.15%**
Expenses net of waiver.......... 1.22%** 1.00% 0.91% 0.97% 0.99% 1.05%**
Net investment income........... 1.50%** 2.02% 2.95% 2.91% 2.98% 3.04%**
Portfolio Turnover Rate........... 25% 42% 76% 138% 77% 78%
<FN>
---------------------------------------------------------------
* Commencement of operations, February 1, 1995.
** Annualized.
(DAGGER) During the period, certain fees were reduced and/or reimbursed. If
such 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.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
WHITEHALL FUNDS TRUST
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
INCOME FUND
SERVICE CLASS
--------------------------------------------------------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
MAY 31, 2000 YEARS ENDED NOVEMBER 30, NOVEMBER 30,
-----------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995*
--------- --------- --------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of the Period........... $ 9.79 $ 10.61 $ 10.36 $ 10.22 $ 10.72 $ 10.00
--------- --------- --------- --------- -------- ---------
Income from Investment
Operations:
Net investment income........... 0.29 0.55 0.59 0.57 0.54 0.48
Net realized and unrealized
gain (loss) on investment
transactions.................. (0.25) (0.72) 0.33 0.14 (0.12) 0.72
--------- --------- --------- --------- -------- ---------
Total income (loss) from
investment operations......... 0.04 (0.17) 0.92 0.71 0.42 1.20
--------- --------- --------- --------- -------- ---------
Less Dividends from:
Net investment income........... (0.29) (0.57) (0.59) (0.57) (0.54) (0.48)
In excess of net
investment income............. -- (0.01) -- -- -- --
Realized gains.................. -- (0.07) (0.08) -- (0.38) --
--------- --------- --------- --------- -------- ---------
Total distributions............. (0.29) (0.65) (0.67) (0.57) (0.92) (0.48)
--------- --------- --------- --------- -------- ---------
Net change in net asset
value per share................. (0.25) (0.82) 0.25 0.14 (0.50) 0.72
--------- --------- --------- --------- -------- ---------
NET ASSET VALUE,
End of Period................... $ 9.54 $ 9.79 $ 10.61 $ 10.36 $ 10.22 $ 10.72
========= ========= ========= ========= ======== =========
Total Return (a).................. 0.50% (1.79)% 9.27% 7.20% 4.25% 12.28%
Ratios/Supplemental Data:
Net Assets at the end of
period (in thousands)........... $ 33,965 $ 35,760 $ 38,803 $ 31,628 $ 27,768 $ 26,849
Ratios to average net assets:
Expenses before waivers(DAGGER). 1.21%** 1.13% 0.90% 1.17% 1.22% 1.22%**
Expenses net of waivers......... 1.18%** 1.02% 0.80% 1.07% 1.12% 1.12%**
Net investment income........... 5.96%** 5.37% 5.63% 5.61% 5.07% 5.59%**
Portfolio Turnover Rate........... 72% 70% 93% 210% 160% 297%
<FN>
-----------------------------------------------------------
* Commencement of operations, February 1, 1995.
** Annualized.
(DAGGER) During the period, certain fees were reduced and/or reimbursed. If
such 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.
</FN>
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
<TABLE>
MONEY MARKET FUND
SERVICE CLASS
--------------------------------------------------------------------------------------------
SIX MONTHS ENDED PERIOD ENDED
MAY 31, 2000 YEARS ENDED NOVEMBER 30, NOVEMBER 30,
-----------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995*
--------- --------- --------- --------- -------- ---------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
Beginning of Period............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- -------- ---------
Income from Investment
Operations:
Net investment income........... 0.03 0.04 0.05 0.05 0.05 0.04
--------- --------- --------- --------- -------- ---------
Less Dividends from:
Net investment income........... (0.03) (0.04) (0.05) (0.05) (0.05) (0.04)
--------- --------- --------- --------- -------- ---------
NET ASSET VALUE,
End of Period................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ======== =========
Total Return (a).................. 2.65% 4.54% 5.27% 4.96% 4.88% 4.55%
Ratios/Supplemental Data:
Net Assets at the end of
period (in thousands)........... $ 15,699 $ 20,500 $ 18,585 $ 25,784 $ 34,269 $ 28,943
Ratios to average net assets:
Expenses before waivers(DAGGER). 1.08%** 1.07% 0.76% 0.99% 0.95% 0.92%**
Expenses net of waivers......... 0.64%** 0.64% 0.41% 0.64% 0.65% 0.64%**
Net investment income
(net of waivers)............. 5.23%** 4.46% 5.16% 4.84% 4.82% 5.40%**
</TABLE>
[FN]
-----------------------------------------------------------
* Commencement of operations, February 1, 1995.
** Annualized.
(DAGGER) During the period, certain fees were reduced and/or reimbursed. If
such 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.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
WHITEHALL FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NOTE 1 -- ORGANIZATION. Whitehall 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: Growth Fund, Growth and Income Fund, Income Fund
and Money Market Fund (individually, a "Fund", and collectively, the "Funds"),
each offering one class of shares. The Board of Trustees approved the
termination of each Fund's Premium Class, which was never offered to the public,
on October 28, 1999. The Premium Class was closed on February 23, 2000 with
respect to Growth Fund, Growth and Income Fund and Income Fund, and on March 2,
2000 with respect to Money Market Fund.
At a special meeting of the shareholders of the Growth Fund, Growth and Income
Fund and Income Fund, held on January 28, 2000, shareholders approved a new
investment advisory agreement which increased the advisory fees payable to IBJ
Whitehall Bank and Trust Company (the "Advisor" or "Whitehall") to 0.85%, 0.85%
and 0.65% of the average daily net assets of the Growth Fund, Growth and Income
Fund and Income Fund, respectively. At the meeting, shareholders also approved
the adoption of a Rule 12b-1 Distribution Plan for the Growth Fund, Growth and
Income Fund and Income Fund, under which Provident Distributors, Inc. (the
"Distributor") may be paid up to 0.25% of the average daily net assets of each
of these Funds.
The investment objective of the Growth Fund ("Growth") is to seek long-term
capital appreciation through investment primarily in a diversified portfolio of
common stock (and securities convertible into common stock) of publicly traded
U.S. companies. Growth 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
Depositary Receipts.
The investment objective of the Growth and Income Fund ("Growth and Income") 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.
The investment objective of the Income Fund ("Income") is to provide a high
total return (current income plus appreciation) 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 objectives of the 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.
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 Money Market 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. Money Market 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. 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.
22
<PAGE>
WHITEHALL FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)(CONTINUED)
--------------------------------------------------------------------------------
(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 assets 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: Income and Money
Market's net investment income is declared daily and paid monthly.
Growth's net investment income is declared and paid annually. Growth
and Income'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 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.
(F) WHEN-ISSUED TRANSACTIONS: The Funds may purchase securities on a
when-issued and delayed delivery basis. These transactions arise when
securities are purchased by a Fund with payment and delivery taking
place in the future.
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 the Advisor. Pursuant to the terms of the Advisory
Agreements, the Advisor was entitled to a fee that is calculated daily and paid
monthly based on the average daily net assets of each Fund, through February 1,
2000 at the annual rate of: 0.60% for Growth, and Growth and Income; 0.50% for
Income; and 0.35% for Money Market. As of February 2, 2000, 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 0.85% for Growth and Growth
and Income; 0.65% for Income; and 0.35% for Money Market. From December 1, 1999
through February 1, 2000, the Advisor contractually agreed to waive a portion of
its management fee equal to 0.10% of average daily net assets with respect to
Growth, Growth and Income and Income. This resulted in fee waivers of $24,060,
$10,721 and $6,120 for
23
<PAGE>
WHITEHALL FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)(CONTINUED)
--------------------------------------------------------------------------------
Growth, Growth and Income and Income, respectively. As of February 2, 2000 that
waiver was discontinued. Through November 30, 2000, the Advisor has
contractually agreed to waive its management fee and to reimburse Money Market
up to $35,000 for its other expenses. This resulted in the Advisor waiving
$36,061 in management fees and reimbursing expenses of $5,633 for the six months
ended May 31, 2000. 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. Whitehall also serves as custodian for all
the Funds.
In September 1998, Whitehall entered into a Co-Administration Services Contract
with the Trust. Under this contract, Whitehall performs supplemental
administrative services, including (i) supervising the activities of PFPC Inc.,
a member of PNC Financial Services Group (formerly known as PNC Bank Corp.), 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 PFPC Inc. In consideration of Whitehall's services under this
contract, the Trust pays Whitehall a monthly fee with respect to each Fund at an
annual rate of 0.03% of the average daily net assets of the Fund during the
preceding month. For the six months ended May 31, 2000, Whitehall received
co-administration fees of $23,273, $9,929, $5,330 and $3,091 for Growth, Growth
and Income, Income and Money Market, respectively, and has waived fees of $3,091
for Money Market.
The Trust and PFPC Inc. have entered into an administration agreement under
which PFPC Inc. ("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; and 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 December
1, 1999, the services described above were provided by First Data Investor
Services Group, Inc. a wholly-owned subsidiary of First Data Corp. On that date,
PFPC Trust Co., a wholly-owned subsidiary of PFPC Worldwide, Inc., and an
indirect wholly-owned subsidiary of PNC Bank Corp., acquired all the outstanding
stock of First Data Investor Services Group, Inc. As part of that transaction,
PFPC Inc., also an indirect wholly-owned subsidiary of PNC Bank Corp., was
merged with First Data Investor ServicesGroup, Inc. which then changed its name
to PFPC Inc.
In addition, PFPC Inc. also provides certain fund accounting and related
services. PFPC Inc. also serves as transfer agent for the Funds pursuant to a
Transfer Agency and Services Agreement with the Trust effective March 1, 1998.
Provident Distributors, Inc. (the "Distributor") serves as the distributor of
the Trust's shares. Prior to December 1, 1999, First Data Distributors, Inc, a
wholly-owned subsidiary of First Data Investor Services Group, Inc. and an
indirect wholly-owned subsidiary of First Data Corporation, acted as exclusive
distributor of the Trust's shares.
Effective February 2, 2000, the Trust has adopted a Rule 12b-1 Distribution Plan
and Agreement (the "Plan") pursuant to Rule 12b-1 under the 1940 Act for Growth,
Growth and Income and Income. The Distributor may be paid a fee of up to 0.25%
of the average daily net assets of each of these Funds. For the six months ended
May 31, 2000, Whitehall received 12b-1 fees of $3,877, $1,649 and $888 for
Growth, Growth and Income and Income, respectively. The Distributor serves as
the exclusive distributor of the shares of each Fund pursuant to the Plan.
NOTE 4 -- TRUSTEE COMPENSATION. The Trust pays each unaffiliated Trustee 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 attended. The Trust also reimburses expenses incurred by each
unaffiliated Trustee in attending such meetings. Trustees who are affiliated
receive no compensation from the Trust.
24
<PAGE>
WHITEHALL FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)(CONTINUED)
--------------------------------------------------------------------------------
NOTE 5 -- SECURITIES TRANSACTIONS. For the six months ended May 31, 2000, the
cost of purchases and the proceeds from sales of the Funds' portfolio securities
(excluding short-term investments), amounted to the following:
<TABLE>
PURCHASES SALES
------------------------------------ ------------------------------------
U.S. GOVERNMENT OTHER U.S. GOVERNMENT OTHER
--------------- ----------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Growth..................... $ -- $ 2,625,450 $ -- $ 7,670,211
Growth & Income............ 4,077,259 11,892,101 8,670,058 7,644,601
Income..................... 14,056,727 13,387,622 16,906,423 8,524,224
</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, 2000 for each Fund is as follows:
<TABLE>
NET
GROSS GROSS APPRECIATION
APPRECIATION (DEPRECIATION) (DEPRECIATION) COST
--------------- ----------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Growth..................... $ 95,124,983 $ (1,100,512) $ 94,024,471 $ 73,498,121
Growth & Income............ 25,856,417 (1,238,988) 24,617,429 45,467,876
Income..................... 20,749 (1,152,245) (1,131,496) 36,815,232
Money Market............... -- -- -- 15,685,633
</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>
GROWTH
--------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 2000 NOVEMBER 30, 1999
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- -------------
<S> <C> <C> <C> <C>
SERVICE CLASS
Issued..................... 905,556 $ 20,593,115 951,004 $ 16,667,882
Reinvested................. 708,925 14,213,759 1,035,579 14,694,872
Redeemed................... (745,819) (17,188,027) (3,254,310) (56,293,818)
----------- -------------- ----------- -------------
Net increase (decrease).... 868,662 $ 17,618,847 (1,267,727) $ (24,931,064)
=========== ============== ============ =============
PREMIUM CLASS*
Issued..................... -- $ -- -- $ --
Reinvested................. 133 2,673 144 2,055
Redeemed................... (1,330) (28,176) -- --
----------- -------------- ----------- -------------
Net increase (decrease).... (1,197) $ (25,503) 144 $ 2,055
=========== ============== ============ =============
<FN>
* The Premium Class closed on February 23, 2000.
</FN>
</TABLE>
25
<PAGE>
WHITEHALL FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)(CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
GROWTH AND INCOME
--------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 2000 NOVEMBER 30, 1999
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- -------------
<S> <C> <C> <C> <C>
SERVICE CLASS
Issued..................... 458,677 $ 6,671,442 395,393 $ 4,923,466
Reinvested................. 52,906 758,586 567,864 6,705,849
Redeemed................... (481,240) (7,303,450) (1,632,376) (20,291,830)
----------- -------------- ----------- -------------
Net increase (decrease).... 30,343 $ 126,578 (669,119) $ (8,662,515)
=========== ============== ============ =============
PREMIUM CLASS*
Issued..................... -- $ -- -- $ --
Reinvested................. 12 165 145 1,706
Redeemed................... (1,409) (20,074) -- --
----------- -------------- ----------- -------------
Net increase (decrease).... (1,397) $ (19,909) 145 $ 1,706
=========== ============== ============ =============
</TABLE>
<TABLE>
INCOME
--------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 2000 NOVEMBER 30, 1999
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- -------------
<S> <C> <C> <C> <C>
SERVICE CLASS
Issued..................... 457,028 $ 4,600,560 488,803 $ 4,953,315
Reinvested................. 109,534 859,329 231,913 2,356,121
Redeemed................... (659,013) (6,342,810) (725,186) (7,327,447)
----------- -------------- ----------- -------------
Net increase (decrease).... (92,451) $ (882,921) (4,470) $ (18,011)
=========== ============== ============ =============
PREMIUM CLASS*
Issued..................... -- $ -- -- $ --
Reinvested................. 14 148 90 910
Redeemed................... (1,476) (14,898) -- --
----------- -------------- ----------- -------------
Net increase (decrease).... (1,462) $ (14,750) 90 $ 910
=========== ============== ============ =============
<FN>
* The Premium Class closed on February 23, 2000.
</FN>
</TABLE>
26
<PAGE>
WHITEHALL FUNDS TRUST
NOTES TO FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)(CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
MONEY MARKET
--------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MAY 31, 2000 NOVEMBER 30, 1999
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- -------------
<S> <C> <C> <C> <C>
SERVICE CLASS
Issued..................... 27,714,633 $ 27,714,633 41,324,463 $ 41,324,463
Reinvested................. 513,688 513,688 899,474 899,442
Redeemed................... (33,026,899) (33,026,899) (40,307,779) (40,307,779)
----------- -------------- ----------- -------------
Net increase (decrease).... (4,798,578) $ (4,798,578) 1,916,158 $ 1,916,126
=========== ============== ============ =============
PREMIUM CLASS*
Issued..................... -- $ -- -- $ --
Reinvested................. 170 170 621 621
Redeemed................... (14,464) (14,464) -- --
----------- -------------- ----------- -------------
Net increase............... (14,294) $ (14,294) 621 $ 621
=========== ============== ============ =============
<FN>
* The Premium Class closed on March 2, 2000.
</FN>
</TABLE>
NOTE 7 -- CAPITAL LOSS CARRYOVERS. At November 30, 1999, Income and Money Market
had the following capital loss carryovers:
CAPITAL LOSS CARRYOVER EXPIRATION DATE
---------------------- ---------------
Income $ 61,083 2007
==========
Money Market $ 2,781 2003
4,513 2004
1,260 2005
247 2006
532 2007
---------
$ 9,333
==========
27
<PAGE>
WHITEHALL FUNDS TRUST
An investment in shares of the Trust is neither insured nor guaranteed by
the FDIC or the U.S. Government. Although the 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, 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.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
28
<PAGE>
WHITEHALL FUNDS TRUST
BOARD OF TRUSTEES
George H. Stewart
Chairman
Stephen V.R. Goodhue
Trustee
Robert H. Dunker
Trustee
-----------------------
OFFICERS
Joseph E. Breslin
President
William J. Greilich
Vice President
Michael C. Kardok
Treasurer
Frank DiPietro
Assistant Treasurer
Mary Jane Maloney
Secretary
Therese Hogan
Assistant Secretary
David C. Lebisky
Assistant Secretary
Investment Advisor
------------------
IBJ Whitehall Bank & Trust Company
320 Park Avenue, 10th Floor
New York, New York 10022
Administrator
-------------
PFPC Inc.
4400 Computer Drive
Westborough, MA 01581
Distributor
-----------
Provident Distributors, Inc.
3200 Horizon Drive
King of Prussia, PA 19406
Custodian
---------
IBJ Whitehall Bank & Trust Company
320 Park Avenue, 10th Floor
New York, New York 10022
Counsel
-------
Paul, Weiss, Rifkind, Wharton & Garrison
1285 Avenue of the Americas
New York, New York 10019
Independent Auditors
--------------------
Ernst & Young LLP
787 Seventh Avenue
New York, New York 10019
This report is for the information of the shareholders of Whitehall 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.
<PAGE>
[GRAPHIC OMITTED]
W 1923
IBJ WHITEHALL FINANCIAL GROUP
329 Park Avenue, 10th Floor
New York NY 10022
