As filed with the Securities and Exchange Commission on 8/7/03

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-6653
--------

The Jensen Portfolio, Inc.
--------------------------
(Exact name of registrant as specified in charter)

2130 Pacwest Center, 1211 SW Fifth Avenue
Portland, OR 97204-3721
-----------------------
(Address of principal executive offices) (Zip code)

Val E. Jensen
2130 Pacwest Center, 1211 SW Fifth Avenue
Portland, OR 97204-3721
-----------------------
(Name and address of agent for service)

(800) 221 - 4384
----------------
Registrant's telephone number, including area code

Date of fiscal year end: May 31, 2003
------------

Date of reporting period: May 31, 2003
------------

Item 1. Report to Stockholders.
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The Jensen Portfolio
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LETTER FROM THE INVESTMENT ADVISER

Dear Fellow Shareholders;

PERFORMANCE

This report covers the Portfolio's activities for its 2003 fiscal year ended
May 31st. During the past 12 months, there was ample economic news that roiled
the security markets. The war, fears of a depression, unemployment, and issues
of corporate governance occupied the media and the investment community. Among
the most pronounced changes were the minimal returns offered by fixed income
investments that in turn make equity investments, particularly The Jensen
Portfolio, even more attractive.

As much as we were pleased with the business performance of the companies in
the Portfolio, we were displeased with the market performance of the Portfolio.
The Portfolio's average annual total returns for the years ending on May 31st,
after deducting expenses, is shown in the table below.

1- 2- 3- 4- 5- 10-
Year Year Year Year Year Year

JENSX -7.17 -1.33 -0.95 5.54 7.46 10.94
S&P 500 -8.06 -11.00 -10.85 -5.93 -1.07 9.93
JENSX
Variance +.89 +9.67 +9.90 +11.47 +8.53 +1.01

The "Variance" line is significant because we believe it gives credence to our
strategy of owning companies that can sustain their competitive advantages. On
the other hand, as every shareholder understands, the purpose of investing is
to obtain positive returns. After three successive years of market
disappointments, the inevitable return to positive ground will be all the
sweeter.

Our positive variance with the S&P 500 regularly invokes questions. Since our
practice is to buy a qualified company at a fair price and own the company as
the market reflects its increasing value, the question centers upon the
differences between the Index and the Portfolio. The S&P 500 is a list of
stocks designed by McGraw Hill to emulate the price of 500 large companies
doing business across a variety of industries. To own an index fund is to
accept that you will receive market returns by representation in sectors that
are hot (currently technology and home building) as well as sectors that are
cold (utilities, consumer staples). An index has no objective other than
accepting what the market gods deliver. The Jensen Portfolio, on the other
hand, represents our best efforts in selecting approximately 25 companies whose
businesses will consistently perform well, year in and year out, at very high
levels. We do not try to catch cyclical businesses that may be on the edge of
rebounding, nor businesses that might become popular with other investment
managers. As much as we would enjoy trouncing the S&P 500 every day and every
year, we will not misuse our strategy with the idea of outfoxing an index.

This is an appropriate point to deliver an investment manager's equivalent of a
football coach's halftime pep talk. We remain excited about the business
prospects of each company in the Portfolio. It is important to remember, as we
describe below, some companies have the ability to enhance shareholder value in
the doldrums of an economic cycle. Just when positive market returns will be
reported requires a crystal ball less cloudy than ours. (Ours has always proved
to be cloudy.) Fortunately, we have Sir John Templeton's comment to fall back
on, "History shows that time, not timing, is the key to investment success.
Therefore, the best time to buy stocks is when you have money."

CREATING VALUE

In retrospect, foul economic weather often gives strong companies an
opportunity to create higher future values for shareholders. One such company
in the Portfolio is Automatic Data Processing. ADP's largest business is
payroll processing whose performance thrives on increasing employment

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and higher interest rates, neither of which currently sport attractive numbers.
ADP's second largest business is servicing the investment industry, another
business clearly not enjoying the best of times.

For most of this year we have expected that ADP will report slightly lower
earnings during its fiscal year ending June 30th than the year before. This
will end an awesome streak of 41 consecutive years of their reporting double
digit increases in earnings. We further expect slightly lower earnings for the
next two quarters. The stock's price reflects all this of course.

Nonetheless, we believe ADP will generate record amounts of free cash flow per
share this year and next. The company is using this cash for the benefit of
shareholders: it has announced acquisitions and joint ventures in businesses
they know well and that will increase market share; dividends have been
increased for the 28th consecutive year; shares are being bought back; and
other assets are being acquired at favorable rates.

The fact is that ADP's intrinsic value per share continues to increase at
record-breaking rates, although its market price reflects the company's
lackluster immediate prospects. Having already declared our crystal ball to be
hopelessly clouded, we don't know when employment and interest rates will rise.
With ADP, we do not believe it matters.

STRATEGY

Although the market changes daily and seems to pursue one siren after another,
the strategy employed in the Jensen Portfolio does not change.

The strategy's objective is single-minded: to identify companies that have the
greatest likelihood of being consistently successful between now, 2012, and
beyond. We begin by looking for companies that have reported at least a 15
percent return on equity (ROE) each year for the past decade. Studies show that
companies meeting this hurdle have an advantage over competitors, and it is
likely that their management will do everything they can to sustain that
advantage. It turns out that having an edge over your competitors is good for
profits, for employees, for suppliers, for customers and, over time, good for
the stock price.

This ROE hurdle diminishes the number of possible candidates for the Portfolio
to about 110 companies. These 110 companies consist of large cap, small cap,
technology, service and manufacturing businesses--some of the characteristics
they have in common are entry barriers such as unique products or economies of
scale, and focused product lines.

Since a company is worth the present value of all its future cash flows, we use
our projection of future cash flows to calculate its intrinsic or true business
value. To illustrate, in order to pay a reasonable price for Stryker, for
example, we must have an idea of what the company would be worth if there were
no stock market. We wish to add a caveat here. This calculation includes our
presumption of future inflation, interest and earnings growth rates. Although
we consider various outside sources for this data, our intrinsic value
calculation is an estimate, albeit our best one.

The next step, and the first time that market value comes into consideration,
is to compare per share intrinsic value to market value. If we can acquire
shares at less than 60 cents of market value to each dollar of intrinsic value,
only then do we consider the company eligible for purchase.

The list is pared the final time to approximately 25 companies that we use in
the Portfolio. While there is no single criterion for their selection, having a
strong business franchise is at the top of the list.

Our sell strategy is quite simple. If a company fails to report a 15 percent
ROE, it's sold. Similarly if a company's market price should rise above
intrinsic value, its shares will be liquidated.

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We do not expect the stock market performance of the Portfolio over time to
exceed the business performance of its companies. In other words, we do not
expect a company that increases earnings at a 10 percent clip annually to
increase in market value by more than 10 percent. Unfortunately, using the past
three years as evidence, market and business values do not march in lock
step--a failing that is corrected by Sir John's observations on time, not
timing.

DR. PERRY

To long-time shareholders of the Portfolio, the name of Louis B. Perry is both
familiar and meaningful. As a director from its inception to his retirement,
Dr. Perry faithfully represented the fund's shareholders. He never sought the
popular answer to the many issues faced but, rather, the best answer for
shareholders. He knows how to think as a shareholder, if for no other reason,
because he holds a significant number of the Portfolio's shares.

So it is with pleasure that we announce that he has been lured out of
retirement to rejoin the Board. The only condition to Dr. Perry's engagement is
that it is short term--he expects a replacement before long. Any lack of
activity to replace him will be like a coach with a NBA-quality player--the use
of any artifice to keep him in college.

He joins Norm Achen, a director since inception, Bob Harold and Roger Cooke as
independent directors. It is worth noting here that the scope of the
independent directors responsibilities has expanded significantly in recent
months. The most notable example is their responsibility as the audit committee
for the Portfolio.

Among the outside directors, the Portfolio has met current regulations by
having a "financial expert" and exceeded current requirements by having
independent directors comprise two-thirds of the Board.

FREDDIE MAC

In the week following the end of the Portfolio's fiscal year, Freddie Mac's
Board announced the resignation two top officers and the dismissal of another.
Gregory Parseghian, a widely respected veteran in the industry, was named CEO,
and Shaun O'Malley, retired Chairman of Price Waterhouse, became Freddie Mac's
independent chairman.

All this suddenly materialized and, with much credit to Freddie Mac's Board,
was quickly addressed. It had been known since earlier this year that
PricewaterhouseCoopers, who had replaced the now defunct Arthur Andersen as the
company's auditors, disagreed with the accounting treatment Freddie Mac was
using for the treatment of derivatives. As a result, Freddie Mac will have to
restate the past three years earnings and will be unable to report first and
second quarter earnings on a timely basis. The company has announced that the
review will be completed sometime during the third calendar quarter.

This, however, will not be the typical earnings restatement because the prior
three years' earnings will be restated upwards--more earnings, not less. The
replacement of the top officers, we understand, did not involve accounting
issues. David Glenn, the former chief operating officer, was dismissed because
he refused to hand over his diaries in an unadulterated form. The other two
officers resigned.

In spite of the clamor, Freddie Mac and Fannie Mae provide significant benefits
for home ownership and the housing industry. Their debt instruments continue to
be highly regarded both in the US and abroad. Industry followers expect the
result of Freddie Mac's reaudit will be increased regulation that would, in
turn, only increase their acceptability as investments. The company's financial
soundness can be represented by Freddie Mac's risk-based capital of $26.5
Billion--only $5.2 Billion is required.

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In his initial comments to investors and analysts, Mr. Parseghian said "We are
blessed with a great franchise in the largest financing market, in the largest
economy, in the world. The housing market has been our economy's most powerful
engine of growth for some time. This is a business in which we have and will
continue to succeed."

In closing, we wish to welcome our new shareholders and express our
appreciation to those investors that have stayed the course. Warren Buffett has
commented that companies inevitably get the kind of shareholders they desire.
By concentrating on hitting quarterly earnings targets, a company will get
short term investors, who are costly and encourage volatility. We believe
management's primary focus should be in increasing the value of the enterprise
over time. We are pleased with the responses we've received from investors who
are committed to long-term ownership, because it matches the objectives of the
Portfolio.

Thank you for your support,

/s/Val Jensen

Val Jensen, Chairman

Jensen Investment Management, Inc.

The above outlook reflects the opinions of Val Jensen as of May 2003. They are
subject to change and any forecasts made cannot be guaranteed.

Past performance is no guarantee of future results. The principal value and
investment return of an investment will fluctuate so that an investor's share,
when redeemed, may be worth more or less than their original cost. The S&P 500
Index is an unmanaged index commonly used to measure performance of U.S.
stocks. Fund holdings and sector weightings are subject to change at any time
and are not recommendations to buy or sell any security. For more complete
information regarding performance and holdings, please refer to the financial
and portfolio headings of this report.

For use only when accompanied or preceded by a current prospectus.

Quasar Distributors, LLC Distributor (07/03).

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The Jensen Portfolio
Total Returns vs. the S&P 500 (unaudited)
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[THE FOLLOWING DATA WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL]

Jensen S&P 500
MONTH END MONTH END
AS-OF INVESTMENT INVESTMENT

03-Aug-92 10,000 10,000
30-Nov-92 10,283 10,360
31-May-93 10,885 9,428
30-Nov-93 11,321 9,233
31-May-94 11,348 8,991
30-Nov-94 11,440 9,115
31-May-95 13,640 10,325
30-Nov-95 15,671 11,643
31-May-96 17,519 12,818
30-Nov-96 20,037 14,611
31-May-97 22,672 15,709
30-Nov-97 25,751 17,340
31-May-98 29,629 18,581
30-Nov-98 31,843 20,456
31-May-99 35,859 21,464
30-Nov-99 38,498 23,296
31-May-00 39,616 27,398
30-Nov-00 36,873 29,308
31-May-01 35,435 27,349
30-Nov-01 32,370 28,205
31-May-02 30,532 28,683
30-Nov-02 27,025 26,802
31-May-03 28,070 26,627

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For the Period Ending May 31, 2003

Average Annual
------------------------------------------------------------------
One Year Three Year Five Year Ten Year Since Inception
-------- ---------- --------- -------- ---------------

The Jensen Portfolio: -7.17% -0.95% 7.46% 10.94% 9.46%
S&P 500 Stock Index: -8.06% -10.85% -1.07% 9.93% 10.00%

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The S&P 500 stock index is an unmanaged but commonly used measure of common
stock total return performance. This chart assumes an initial gross investment
of $10,000 made on 8/3/92 (inception). Returns shown include the reinvestment
of all dividends. Returns shown do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund shares.
Past performance is not predicative of future performance. Investment return
and principal value will fluctuate, so that your shares, when redeemed, may be
worth more or less than the original cost.

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STATEMENT OF ASSETS & LIABILITIES
May 31, 2003

ASSETS:
Investments, at value
(cost $1,450,406,107) ..................... $1,451,606,021
Income receivable ........................... 1,544,508
Receivable for capital stock issued ......... 9,960,282
Other assets ................................ 57,390
--------------
Total Assets .............................. 1,463,168,201
--------------
LIABILITIES:
Payable to Investment Adviser ............... 653,763
Payable to Directors ........................ 39,512
Payable for securities purchased ............ 5,980,848
Payable for capital stock redeemed .......... 2,530,360
Other accrued expenses ...................... 894,431
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Total Liabilities ......................... 10,098,914
--------------
NET ASSETS .................................. $1,453,069,287
==============
NET ASSETS CONSIST OF:
Capital stock ............................... $1,451,802,268
Unrealized appreciation on investments ...... 1,199,914
Accumulated undistributed net
investment income ......................... 1,276,614
Accumulated undistributed net
realized loss ............................. (1,209,509)
--------------
Total Net Assets .......................... $1,453,069,287
==============
Net Asset Value Per Share,
69,854,139 shares outstanding
(100,000,000 shares authorized,
$.001 par value) .......................... $20.80
======

SCHEDULE OF INVESTMENTS
May 31, 2003

Number of Shares Fair Value
- ----------------- -----------

COMMON STOCK 98.80%
Advertising Agencies 5.25%
1,092,000 Omnicom Group Inc. ............... $76,232,520
-----------
Apparel Manufacturers 3.41%
1,687,000 Jones Apparel Group, Inc. # ...... 49,530,320
-----------
Banks 4.20%
1,593,000 State Street Corporation ......... 61,027,830
-----------
Beverages 4.41%
1,405,000 The Coca-Cola Company ............ 64,025,850
-----------
Computer Software Services 6.22%
1,274,000 Automatic Data
Processing, Inc. ................. 44,462,600
1,505,000 Paychex, Inc. .................... 45,932,600
-----------
90,395,200
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Drugs 8.78%
1,023,000 Merck & Co. Inc. ................. 56,858,340
2,281,000 Pfizer Inc. ...................... 70,756,620
-----------
127,614,960
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Electrical Equipment 10.07%
1,423,000 Emerson Electric Co. ............. 74,422,900
2,503,000 General Electric Company ......... 71,836,100
-----------
146,259,000
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Financial Services 4.22%
3,061,000 MBNA Corporation ................. 61,373,050
-----------

6 See notes to financial statements.

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SCHEDULE OF INVESTMENTS
May 31, 2003
(Continued)

Number of Shares Fair Value
- ----------------- --------------

Healthcare Products 4.47%
1,196,000 Johnson & Johnson .............. $ 65,002,600
--------------
Household Products 12.70%
1,083,000 Colgate-Palmolive
Company ...................... 64,568,460
1,257,000 The Clorox Company ............. 56,137,620
696,000 The Proctor & Gamble
Company ...................... 63,906,720
--------------
184,612,800
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Industrial Services 4.84%
2,775,000 Equifax Inc. ................... 70,263,000
--------------
Medical Supplies 14.48%
1,579,000 Abbott Laboratories ............ 70,344,450
1,250,000 Medtronic, Inc. ................ 60,912,500
1,175,000 Stryker Corporation ............ 79,124,500
--------------
210,381,450
--------------
Newspapers 4.73%
870,000 Gannett Co., Inc. .............. 68,730,000
--------------
Office Equipment 4.49%
516,000 3M Co. ......................... 65,258,520
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Precision Instruments 1.10%
429,000 Dionex Corporation # ........... 16,023,150
--------------
Thrift Industry 5.43%
503,000 Fannie Mae ..................... 37,222,000
696,000 Freddie Mac .................... 41,627,760
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78,849,760
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Total Common Stock
Cost ($1,434,380,096) ........ 1,435,580,010
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Principal Amount Fair Value
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SHORT-TERM INVESTMENTS 1.10%

Commercial Paper 1.10%
$16,011,000 American Express
Commercial Paper,
1.10%, 6/2/03 ................ $ 16,011,000
--------------
Variable Rate Demand Notes* 0.00%
15,011 Wisconsin Corporate
Central Credit Union,
0.99% ........................ 15,011
--------------
Total Short-Term
Investments
(Cost $16,026,011) ........... 16,026,011
--------------
Total Investments 99.90%
(Cost $1,450,406,107) ........ 1,451,606,021
--------------
Other Assets, less
liabilities 0.10% ............ 1,463,266
--------------
NET ASSETS 100.00% ............. $1,453,069,287
==============

# Non-income producing security.
* Variable rate demand notes are considered short-term obligations and are
payable on demand. Interest rates change periodically on specified dates.
The rates shown are as of May 31, 2003.

See notes to financial statements. 7

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STATEMENT OF OPERATIONS
Year Ended May 31, 2003

INVESTMENT INCOME:
Dividend income ............................. $12,897,783
Interest income ............................. 216,903
-----------
13,114,686
-----------
EXPENSES:
Investment advisory fees .................... 4,326,676
Shareholder servicing fees .................. 1,298,003
12b-1 fees .................................. 865,335
Administration fees ......................... 330,591
Transfer agent fees and expenses ............ 237,391
Federal and state registration fees ......... 191,566
Custody fees ................................ 214,434
Reports to shareholders ..................... 95,092
Fund accounting fees ........................ 75,938
Directors' fees and expenses ................ 48,454
Professional fees ........................... 30,431
Other ....................................... 17,488
Interest expense ............................ 15,786
-----------
Total expenses .................... 7,747,185
-----------
NET INVESTMENT INCOME ....................... 5,367,501
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REALIZED AND UNREALIZED
LOSS ON INVESTMENTS:
Net realized loss on investment
transactions .............................. (147,879)
Change in unrealized appreciation on
investments ............................... (7,873,445)
-----------
Net loss on investments ..................... (8,021,324)
-----------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS ................. $(2,653,823)
===========

STATEMENT OF CHANGES IN
NET ASSETS

Year Ended Year Ended
May 31, '03 May 31, '02
----------------- ---------------

OPERATIONS:
Net investment income ........... $ 5,367,501 $ 337,293
Net realized loss on
investment transactions ........ (147,879) (818,178)
Change in unrealized
appreciation on
investments .................... (7,873,445) (3,215,626)
-------------- ------------
Net decrease in net
assets resulting from
operations ..................... (2,653,823) (3,696,511)
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CAPITAL SHARE TRANSACTIONS:
Shares sold ..................... 1,437,110,788 458,477,927
Shares issued to holders
in reinvestment of
dividends ...................... 3,523,465 235,266
Shares redeemed ................. (454,201,152) (27,382,201)
-------------- ------------
Net increase .................... 986,433,101 431,330,992
-------------- ------------
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS:
Net investment income ........... (4,123,525) (340,360)
-------------- ------------
Total dividends and
distributions .................. (4,123,525) (340,360)
-------------- ------------
INCREASE IN
NET ASSETS ...................... 979,655,753 427,294,121

NET ASSETS:
Beginning of year ............... 473,413,534 46,119,413
-------------- ------------
End of year (including
undistributed net
investment income of
$1,276,614 and
$32,638, respectively) ......... $1,453,069,287 $473,413,534
============== ============

8 See notes to financial statements.

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FINANCIAL HIGHLIGHTS

Year Ended Year Ended Year Ended Year Ended Year Ended
May 31, '03 May 31, '02 May 31, '01 May 31, '00 May 31, '99
------------- ------------- ------------- ------------- ------------

Per Share Data:
Net asset value,
beginning of year ................ $22.51 $21.53 $22.25 $19.42 $16.87
------ ------ ------ ------ ------
Income from investment
operations:
Net investment income ............ 0.11 0.05 0.09 0.06 0.05
Net realized and unrealized gains
(losses) on investments ......... (1.73) 1.00 (0.14) 5.30 2.56
------ ------ ------ ------ ------
Total from investment
operations ...................... (1.62) 1.05 (0.05) 5.36 2.61
------ ------ ------ ------ ------
Less distributions:
Dividends from net investment
income .......................... (0.09) (0.07) (0.10) (0.03) (0.05)
Distribution in excess of net
investment income ............... -- -- -- -- (0.01)
From net realized gains .......... -- -- (0.57) (2.50) --
------ ------ ------ ------ ------
Total distributions .............. (0.09) (0.07) (0.67) (2.53) (0.06)
------ ------ ------ ------ ------
Net asset value,
end of year ...................... $20.80 $22.51 $21.53 $22.25 $19.42
====== ====== ====== ====== ======
Total return ....................... -7.17% 4.88% -0.18% 27.65% 15.51%

Supplemental data and ratios:
Net assets, end of year ......... $1,453,069,287 $473,413,534 $46,119,413 $30,525,067 $24,542,844
Ratio of expenses to
average net assets ............. 0.90% 1.00% 0.95% 0.94% 0.96%
Ratio of net investment income to
average net assets ............. 0.62% 0.23% 0.45% 0.31% 0.27%
Portfolio turnover rate ......... 7.22% 0.78% 6.53% 32.35% 13.87%

See notes to financial statements. 9

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NOTES TO THE FINANCIAL STATEMENTS
May 31, 2003

1. Organization and Significant
Accounting Policies
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The Jensen Portfolio, Inc. (the "Fund") was organized as an Oregon Corporation
on April 17, 1992, and is registered as an open-end, nondiversified management
investment company under the Investment Company Act of 1940. The principal
investment objective of the Fund is long-term capital appreciation. The Fund
issued and sold 10,000 shares of its capital stock at $10 per share on June 29,
1992 ("initial shares"). The Fund commenced operations on August 3, 1992.

The following is a summary of significant accounting policies consistently
followed by the Fund. The policies are in conformity with accounting principles
generally accepted in the United States of America.

a) Investment Valuation - Securities that are listed on United States stock
exchanges or the Nasdaq Stock Market are valued at the last sale price on the
day the securities are valued or, if there has been no sale on that day, at
their current bid price. Quotations are taken from the market in which the
security is primarily traded. Over-the-counter securities are valued at their
current bid price. Securities for which market quotations are not readily
available are valued at fair value as determined by the Investment Adviser at
or under the direction of the Fund's Board of Directors. There were no
securities valued by the Board of Directors as of May 31, 2003. Variable rate
demand notes are valued at cost which approximates fair value. Notwithstanding
the above, fixed-income securities may be valued on the basis of prices
provided by an established pricing service when the Board believes that such
prices better reflect market values.

b) Federal Income Taxes - No provision for federal income taxes has been made
since the Fund has complied to date with the provisions of the Internal Revenue
Code applicable to regulated investment companies and intends to continue to so
comply in the future and to distribute substantially all of its net investment
income and realized capital gains in order to relieve the Fund from all federal
income taxes.

c) Distributions to Shareholders - Dividends to shareholders are recorded on
ex-dividend date. Dividends from net investment income are declared and paid
quarterly by the Fund. Distributions of net realized capital gains, if any,
will be declared and paid at least annually. Income and capital gain
distributions are determined in accordance with income tax regulations which
may differ from generally accepted accounting principles. Permanent differences
between financial reporting and tax are reclassified to capital stock.

d) Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.

e) Guarantees and Indemnifications - In the normal course of business the Fund
enters into contracts with service providers that contain general
indemnification clauses. The Fund's maximum exposure under these arrangements
is unknown as this would involve future claims that may be made against the
Fund that have not yet occurred. However, based on experience, the Fund expects
the risk of loss to be remote.

f) Other - Investment and shareholder transactions are recorded on trade date.
Gains or losses from the investment transactions are determined on the basis of
identified carrying value. Dividend income is recognized on the ex-dividend
date and interest income is recognized on an accrual basis. The Fund has
investments in short-term variable rate demand notes, which are unsecured
instruments. These notes may present credit risk to the extent the issuer
defaults on its payment obligation. The credit-worthiness of the issuer is
monitored, and these notes are considered to present minimal credit risk in the
opinion of the Investment Adviser.

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2. Capital Share Transactions
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Transactions in shares of the Fund were as follows:

Year Ended Year Ended
May 31, '03 May 31, '02
----------- -----------

Shares sold .......................... 71,897,475 20,083,354
Shares issued to holders in
reinvestment of dividends ......... 181,436 10,509
Shares redeemed ...................... (23,254,446) (1,205,945)
----------- -----------
Net increase ......................... 48,824,465 18,887,918
Shares outstanding:
Beginning of year .................... 21,029,674 2,141,756
----------- -----------
End of year .......................... 69,854,139 21,029,674
=========== ===========

3. Investment Transactions
- --------------------------------------------------------------------------------
The aggregate purchases and sales of securities, excluding short-term
investments, by the Fund for the year ended May 31, 2003, were $1,040,552,226
and $62,218,117, respectively.

4. Income Taxes
- --------------------------------------------------------------------------------
At May 31, 2003, the Fund had accumulated net realized capital loss carryovers
of $767,052 expiring in 2010. To the extent the Fund realizes future net
capital gains, taxable distributions to its shareholders will be offset by any
unused capital loss carryover. During 2003, the fund utilized $294,579 of
capital loss carryovers.

Net realized losses differ for financial statement and tax purposes primarily
due to differing treatments of wash sales.

The distributions of $4,123,525 paid during the year ended May 31, 2003 were
classified as ordinary for income tax purposes.

At May 31, 2003, the cost of investments, net unrealized appreciation
(depreciation), undistributed ordinary income and undistributed long term
capital gains for income tax purposes were as follows:

Cost of investments ........................... $1,450,848,548
==============
Unrealized appreciation ....................... $ 79,920,566
Unrealized depreciation ....................... (79,163,093)
--------------
Net unrealized appreciation
(depreciation) ............................. $ 757,473
--------------
Undistributed ordinary income ................. $ 1,276,598
Undistributed long-term capital gains ......... 0
--------------
Distributable earnings ........................ $ 1,276,598
==============

5. Line of Credit
- --------------------------------------------------------------------------------
The Fund has a $100 million revolving credit facility for temporary emergency
purposes, including the meeting of redemption requests that otherwise might
require the untimely disposition of securities. The interest rate on the
outstanding principal amount is equal to the prime rate less 1/2%. The Fund
borrowed on the line of credit on nineteen days, with average borrowing during
the period of $4,454,516. The agreement will expire on December 21, 2003.

6. Investment Advisory and Other
Agreements
- --------------------------------------------------------------------------------
The Fund has entered into an Investment Advisory and Service Contract with
Jensen Investment Management, Inc. Pursuant to its advisory agreement with the
Fund, the Investment Adviser is entitled to receive a fee, calculated daily and
payable monthly, at the annual rate of 0.50% as applied to the Fund's daily net
assets.

Certain officers and directors of the Fund are also officers and directors of
the Investment Adviser.

7. Expense Guarantee
- --------------------------------------------------------------------------------
In order to limit the Fund's expenses, the Investment Adviser has guaranteed
that certain expenses payable by the Fund (including, but not limited to,
investment advisory fees, legal, audit, custodial, printing and other

- --------------------------------------------------------------------------------
The Jensen Portfolio
- --------------------------------------------------------------------------------

regular Fund expenses, but excluding brokerage commissions, taxes, interest,
organizational costs and other expenses that are capitalized, and all
extraordinary items such as litigation or indemnification expenses) will not
exceed 1.40% in any fiscal year. If the Fund's regular operating expenses
exceed 1.40% (expressed as a percentage of average daily net assets on an
annual basis), the Investment Adviser will reduce its management fee, or
reimburse the Fund, in an amount equal to the excess.

Any waiver or reimbursement is subject to later adjustment to allow the
Investment Adviser to recoup amounts waived or reimbursed to the extent actual
fees and expenses for a period are less than the expense limitation cap of
1.40%, provided, however, that the Investment Adviser shall only be entitled to
recoup such amounts for a period of three years from the date such amount was
waived or reimbursed.

8. Distribution and Shareholder
Servicing
- -------------------------------------
The Fund has adopted a distribution plan pursuant to Rule 12b-1 under the 1940
Act (the "12b-1 Plan"), which provides that the Fund may reimburse the Fund's
distributor or others at an annual rate of up to 0.10% of the average daily net
assets attributable to its shares. Payments under the 12b-1 Plan shall be used
to compensate or reimburse the Fund's distributor or others for services
provided and expenses incurred are tied in connection with the sale of shares
and to the amounts of actual expenses incurred.

In addition, the Fund has adopted a Shareholder Services Plan the "Services
Plan" under which the Fund can pay for shareholder support services from the
Fund's assets pursuant to a Shareholder Servicing Agreement in an amount not to
exceed 0.15% of the Fund's average daily net assets.

Pending Shareholder vote at a meeting scheduled for July 14, 2003, the Fund
proposes to adopt an Amended and Restated Distribution and Shareholder
Servicing Plan for the Fund pursuant to Rule 12b-1 under the 1940 Act. The
Restated Distribution Plan would replace the existing Distribution Plan and
Servicing Plan by essentially combining them into one plan with annual expenses
for distribution and shareholder servicing not exceeding 0.25% of the Fund's
average daily net assets.

REPORT OF INDEPENDENT AUDITORS
To the Directors and Shareholders of The Jensen Portfolio, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Jensen Portfolio, Inc. (the
Fund) at May 31, 2003, the results of its operations for the year then ended,
the changes in its net assets for each of the two years in the period then
ended and the financial highlights for each of the five years in the period
then ended, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as financial statements) are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted
in the United States of America, which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at May 31,
2003 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion.

PricewaterhouseCoopers, LLP
Portland, Oregon
June 20, 2003

- --------------------------------------------------------------------------------
The Jensen Portfolio
- --------------------------------------------------------------------------------

ADDITIONAL INFORMATION
1. SHAREHOLDER NOTIFICATION OF FEDERAL TAX STATUS (UNAUDITED)
The Fund designates ninety-nine percent of dividends declared during the fiscal
year ended May 31, 2003 as dividends qualifying for the dividends received
deduction available to corporate shareholders.

The Fund designates ninety-nine percent of dividends declared after December
31, 2002 from net investment income as qualified income under the Jobs and
Growth Tax Relief Reconciliation Act of 2003.

2. AVAILABILITY OF PROXY VOTING INFORMATION
Information regarding how the Fund votes proxies relating to portfolio
securities is available without charge, upon request by calling toll-free,
1-800-221-4384, or by accessing the SEC's website at www.sec.gov.

3. ADDITIONAL DISCLOSURE REGARDING FUND DIRECTORS AND OFFICERS (UNAUDITED)

INDEPENDENT DIRECTORS

# of
Portfolios
Term of Principal in Fund Other
Position(s) Office and Occupation Complex Directorships
Held with Length of During Past Overseen held by
Name, Age and Address the Company Time Served Five Years by Director Director
- ---------------------------- ------------- ------------------ ----------------------------- ------------- ---------------------

Norman W. Achen J.D., 82 Independent Indefinite Term; President of N.W. 1 Director of
2842 Luciernaga St. Director Served since Achen Professional Brentwood
Carlsbad, CA 92009 inception. Corporation Biomedical
(1980 - present); Research
Chairman and CEO Institute
of International (1998 - present);
Medical Devices Director of
Partners, Inc. Clinical Research
(1998 - 2001). Administration at
V.A. Hospital
in Los Angeles,
CA (2002 - present).

- -------------------------------------------------------------------------------------------------------------------------------
Roger A. Cooke J.D., 55 Independent Indefinite Term; Vice President - Regulatory 1 None
The Jensen Portfolio, Inc. Director 4 years served. and Legal Affairs of
2130 Pacwest Center Precision Castparts Corp.,
1211 SW Fifth Avenue an investment casting and
Portland, OR 97204 forging company,
(2000 - present);
Executive Vice President -
Regulatory and Legal
Affairs of Fred Meyer, Inc.,
a grocery and
general merchandise
company,
(1992 - 2000).

- --------------------------------------------------------------------------------
The Jensen Portfolio
- --------------------------------------------------------------------------------

Robert E. Harold Independent Indefinite Term; Senior Director of 1 Director of
C.P.A. (Retired), 56 Director 2 years served. Financial Planning StoriedLearning,
The Jensen Portfolio, Inc. of Nike, Inc. (2001 - Inc. (2000 -
2130 Pacwest Center 2002); Global Brand present);
1211 SW Fifth Avenue Controller for Nike, Inc. Director of
Portland, OR 97204 (1996, 1997, 2000 - 2001); St. Mary's
CFO (Interim) for Nike, Inc. Academy, a non-
(1998 - 1999). profit high school
(2000 - present);
Director of
Will Vinton
Studios, an
animation studio
(2002 - present).

- ------------------------------------------------------------------------------------------------------------------------------
Louis B. Perry, Ph.D, 85 Independent Indefinite Retired 1 None
1585 Gray Lynn Drive Director Term;
Walla Walla, WA 99362 Served
since
inception
(at times as
Director
Emeritus).

- --------------------------------------------------------------------------------
The Jensen Portfolio
- --------------------------------------------------------------------------------

INTERESTED DIRECTORS AND OFFICERS

# of
Portfolios
Term of Principal in Fund Other
Position(s) Office and Occupation Complex Directorships
Held with Length of During Past Overseen held by
Name, Age and Address the Company Time Served Five Years by Director Director
- --------------------------- ---------------- -------------------- ------------------------ ------------- --------------

Val E. Jensen, 74 Director and Indefinite Term; Chairman and Director 1 None
Jensen Investment Chairman Served as of Jensen Investment
Management, Inc. Director since Management, Inc.
2130 Pacwest Center inception; (1988 - present).
1211 SW Fifth Avenue Served as
Portland, OR 97204 President
from inception
to March 2002;
Served as
Chairman since
March 2002.

- ------------------------------------------------------------------------------------------------------------------------------
Gary W. Hibler, Ph.D., 59 Director, Indefinite Term; President of Jensen 1 None
Jensen Investment President Served as Investment Management
Management, Inc. and Director since (1994 - present).
2130 Pacwest Center Treasurer inception;
1211 SW Fifth Avenue Served as
Portland, OR 97204 Secretary from
inception to
March 2002;
Served as
President since
March 2002.

- ------------------------------------------------------------------------------------------------------------------------------
Robert F. Zagunis, 49 Vice President 1 Year Term; Vice President and N/A N/A
Jensen Investment Served since Director of Jensen
Management, Inc. inception. Investment Management,
2130 Pacwest Center Inc. (1993 - present).
1211 SW Fifth Avenue
Portland, OR 97204

- ------------------------------------------------------------------------------------------------------------------------------
Robert G. Millen, 56 Secretary 1 Year Term; Vice President and N/A N/A
Jensen Investment Served since 2000. Director of Jensen
Management, Inc. Investment Management,
2130 Pacwest Center Inc. (2000 - present);
1211 SW Fifth Avenue Vice President of
Portland, OR 97204 Principal Financial
Group, an insurance
company (1997 - 2000).

INVESTMENT ADVISER

Jensen Investment Management, Inc.
2130 Pacwest Center
1211 SW Fifth Avenue
Portland, OR 97204-3721
(800) 992-4144
www.jenseninvestment.com

FUND ADMINISTRATOR, Annual Report
TRANSFER AGENT, AND the Jensen
FUND ACCOUNTANT Portfolio

U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, WI 53202

CUSTODIAN

U.S. Bank, N.A.
425 Walnut Street
Cincinnati, OH 45202

LEGAL COUNSEL

Stoel Rives LLP
Standard Insurance Center
900 SW Fifth Avenue
Suite 2300
Portland, OR 97204-1268

INDEPENDENT AUDITORS

PricewaterhouseCoopers LLP
1300 SW Fifth Avenue
Suite 3100
Portland, OR 97201-5638

DISTRIBUTOR
Quasar Distributors, LLC [Logo]
615 East Michigan Street
Milwaukee, WI 53202 Jensen
Investment
Management

This report has been prepared
for shareholders and may be
distributed to others only if
preceded or accompanied by a ANNUAL REPORT
current prospectus. MAY 31, 2003

Item 2. Code of Ethics.
- -----------------------

Not applicable to annual reports filed for periods ending before July 15, 2003.

Item 3. Audit Committee Financial Expert.
- -----------------------------------------

Not applicable to annual reports filed for periods ending before July 15, 2003.

Item 4. Principal Accountant Fees and Services.
- -----------------------------------------------

Not required for annual reports filed for periods ending before December 15,
2003.

Item 5. Audit Committee of Listed Registrants.
- ----------------------------------------------

Not applicable to open-end investment companies.

Item 6. [Reserved]
- -------------------

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
- -------------------------------------------------------------------------
Management Investment Companies.
- --------------------------------

Not applicable to open-end investment companies.

Item 8. [Reserved]
- ------------------

Item 9. Controls and Procedures.
- ---------------------------------

(a) Based on their evaluation of the Registrant's Disclosure Controls and
Procedures as of a date within 90 days of the Filing Date, the Registrant's
President and Treasurer has determined that the Disclosure Controls and
Procedures (as defined in Rule 30a-2(c) under the Act) are designed to
ensure that information required to be disclosed by the Registrant is
recorded, processed, summarized and reported by the Filing Date, and that
information required to be disclosed in the report is communicated to the
Registrant's management, as appropriate, to allow timely decisions
regarding required disclosure.

(b) There were no significant changes in the Registrant's internal controls or
in other factors that could significantly affect these controls subsequent
to the date of the evaluation, and there were no corrective actions with
regard to significant deficiencies and material weaknesses.

Item 10. Exhibits.
- ------------------

(a) Any code of ethics or amendment thereto. Not applicable to annual reports
for periods ending before July 15, 2003.

(b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) The Jensen Portfolio, Inc.
------------------------------------------------

By (Signature and Title) /s/ Gary Hibler
------------------------------------
Gary Hibler, President and Treasurer

Date: 8/5/03
-----------------------------------------------------