SEMI-ANNUAL
REPORT
JUNE 30, 1996
[HARRIS INSIGHT FUNDS LOGO]
SHARES OF THE HARRIS INSIGHT FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY HARRIS TRUST & SAVINGS BANK OR ANY OF ITS AFFILIATES,
AND ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,
THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. AN INVESTMENT IN THE FUNDS
INVOLVES INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT
INVESTED. THE MARKET VALUE OF SHARES WILL FLUCTUATE AND, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THE AMOUNT INVESTED.
HARRIS INSIGHT FUNDS
July 31, 1996
DEAR SHAREHOLDER:
We are pleased to present the Harris Insight Funds' Semi-Annual Report for
the six-month period ended June 30, 1996. This Report contains important
information such as the "Market Environment," which provides a six-month review
of the U.S. economy, the domestic equity and fixed income markets, and our
economic outlook for the second half of 1996. In addition, the Report contains
"Portfolio Management Review," authored by members of the Harris Insight Funds'
portfolio management team.
In order to provide shareholders with a further look at the U.S. economy,
the "Market Environment" discussion, which begins on page 3, has been expanded
to include a review of the domestic equity and fixed income markets. Bill
Leszinske, President and Chief Investment Officer of Harris Investment
Management, Inc., which serves as the Funds' portfolio management agent,
provides a review of the equity market. Mr. Leszinske has over 25 years of
experience as an investment executive. He has managed assets and relationships
for both institutional and personal clients and managed both fixed income and
equity functions including research, trading and portfolio management. He has
both a B.S. in Finance and Accounting and an M.B.A. from Northern Illinois
University. Mark Newlin, Director of Fixed Income Management at Harris
Investment Management, Inc. discusses the fixed income market. A Chartered
Financial Analyst, Mr. Newlin has more than ten years of investment experience.
He specializes in managing institutional fixed income portfolios and earned a
B.A. from Earlham College and an M.B.A. from Harvard University. The Harris
Insight Funds welcome Mr. Leszinske's and Mr. Newlin's comments and economic
perspective in this and future shareholder communications.
On February 26, 1996, the Harris Insight Funds expanded its Family of Funds
from six to thirteen Funds. Assets in the Funds increased on that date from $1.5
billion to approximately $3 billion as a result of investments in the Funds by
the common trust funds of Harris Trust & Savings Bank. Also, in early April, we
launched the Hemisphere Free Trade Fund, which invests in equities and fixed
income securities in the United States, Canada and Mexico, and the Bond Fund,
which seeks to provide a high level of total return, including a competive level
of current income, by investing primarily in investment-grade debt securities of
various maturities. This larger Family provides our shareholders with a variety
of benefits, including the availability of additional Funds to meet changing
investment needs; expanded shareholder services, designed to provide our
shareholders with increased flexibility; and an even larger asset base over
which to spread the fixed expenses associated with operating mutual funds.
New shareholder services offered just within the last few months include the
Harris Insight Funds' IRA, a highly competitive investment vehicle to help you
plan for a comfortable retirement and the Automatic Investment Plan, or AIP.
While the AIP does not ensure a profit or protect against a loss, it allows you
to enjoy the benefits of investing at regular intervals, automatically. As we
progress further into 1996, watch for additional services, such as a Redirected
Distribution Plan that automatically invests your dividends from one Harris
Insight Fund to shares of another Harris Insight Fund. Be assured that we will
inform you of these new shareholder services and other exciting changes
regarding the Funds. Should you have any questions regarding this Report or any
of the Harris Insight Funds, feel free to call a representative at (800)
982-8782. As always, we thank you for your continued interest in the Harris
Insight Funds and for the opportunity to meet your investment needs.
Sincerely,
/s/ The Harris Insight Funds
The Harris Insight Funds
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
<S> <C>
-----
Letter to Shareholders .............................................. 1
The Market Environment .............................................. 3
Portfolio Management Review ......................................... 5
Statement of Net Assets
Money Market Funds:
Government Money Market Fund ("Government Money Fund") .......... 8
Money Market Fund ("Money Fund") ................................ 10
Tax-Exempt Money Market Fund ("Tax-Exempt Money Fund") .......... 12
Fixed Income Funds:
Short/Intermediate Bond Fund ("Short/Intermediate Fund") ........ 21
Bond Fund ........................................................ 26
Intermediate Tax-Exempt Bond Fund ("Intermediate Tax-Exempt Fund") 29
Tax-Exempt Bond Fund ("Tax-Exempt Fund") ........................ 35
Convertible Fund ................................................. 40
Equity Funds:
Equity Fund ...................................................... 43
Equity Income Fund ............................................... 45
Growth Fund ...................................................... 47
Small-Cap Opportunity Fund ("Small-Cap Fund") ................... 49
Index Fund ....................................................... 52
International Fund ............................................... 60
Hemisphere Free Trade Fund ("Hemisphere Fund") .................. 67
Statements of Operations ............................................ 72
Statements of Changes in Net Assets .................................. 74
Statements of Changes -- Capital Stock Activity ...................... 77
Financial Highlights ................................................ 80
Notes to Financial Statements ....................................... 89
Board of Directors and Board of Trustees/Officers .................... 99
</TABLE>
2
THE MARKET ENVIRONMENT
ECONOMIC REVIEW
THE U.S. ECONOMY STRENGTHENS
As the second quarter of 1996 ends, it is evident that the U.S. economy has
rebounded from the inventory correction which began late in 1995. Auto sales,
new home sales and consumer spending have all showed surprising strength despite
the rise in interest rates since year-end. This is undoubtedly the result of
above-average job creation and a rising trend in real disposable income growth.
This rebound in the economy has begun to concern the financial markets as
excess capacity in both the labor supply and production have dropped. This
threatens rising prices which, when combined with higher commodity prices for
energy and food, could introduce another round of inflation. This uncertainty
has caused bond yields to rise and is forcing the Federal Reserve Board to take
note.
Interestingly, foreign economic growth has lagged earlier estimates. This
implies that U.S. exports may not be as robust as earlier thought and could act
to reduce fears of an overheating economy.
WILL THE FED TIGHTEN?
The Federal Reserve is currently facing a difficult decision. Should it
raise short-term interest rates to calm inflationary fears and risk stopping the
economic rebound? Or should it wait for more evidence of mounting inflationary
pressures, risking a continued rise in bond yields and a late start in quelling
inflation?
Following its July 3rd meeting, the Federal Reserve Board of Governors has
opted to wait and see. This means that long-term bond yields will probably
remain at current or higher levels as investors await further evidence of
inflationary pressures and the Federal Reserve Board's response.
STOCKS AND BONDS MOVED IN OPPOSITE DIRECTIONS
For the first half of 1996, stock prices moved higher while bond prices,
affected by rising yields, moved lower. This disparity in performance is unusual
as both bond and stock prices have tended to move in the same direction in
recent years. Much of the positive stock performance has been driven by record
flows into equity mutual funds by individuals, as well as very optimistic
earnings growth forecasts. Both factors have pushed stock prices to near record
levels.
Bond prices, on the other hand, were negatively impacted by rising
inflationary concerns. These concerns, heightened by higher commodity prices and
a firmer economy, have hurt bond performance year-to-date.
THE SECOND HALF -- NOT STARTING OFF WELL
Following a good first half of the year, stock prices have declined in early
July as earnings disappointments have spread. While these problems have largely
been confined to the technology sector, other sectors are also vulnerable should
the economy begin to slow. Stock investors have become complacent about both
earnings and valuation and, should earnings troubles persist, they may become
worried. Given that the stock market has not had a significant correction since
1990, it appears that market volatility will increase. If so, stocks may have
seen their best relative performance in the first six months of the year.
The bond market outlook, while appearing better, may also present some road
bumps for investors. With inflation concerns rising and future Federal Reserve
Board action in question, bond investors may continue to shorten bond portfolio
maturities. If so, this could extend the period of poor performance despite a
generally positive long-term inflationary outlook.
Finally, the election landscape is becoming more clouded with the growing
possibility of a major shift in the Washington power structure. This
possibility, which is by no means certain, could still add to the volatility of
the financial markets and investor worries over coming months.
While we remain cautious near-term as a result of the above-mentioned
concerns, moderate inflation and increasingly pro-growth policies should combine
with positive demographic trends to maintain a positive longer-term outlook for
the financial markets.
David L. Mead
Vice President and Chief Investment
Officer
Harris Bankcorp
3
FIXED INCOME MARKETS REVIEW
The sentiment in the fixed income markets reversed during the first quarter
of 1996, as signs of a weakening economy and hopes that the Federal Reserve
Board would lower interest rates gave way to widespread fears that stronger
growth in the economy would push inflation and interest rates higher.
These fears were realized in the second quarter, as the economy showed signs
of a resurgence. The heightened anxiety about each new piece of economic news
released by the government contributed to market bearishness and, in turn,
market volatility.
By the end of the first half of the year, the interest rate yield curve
reflected investor beliefs that interest rates had bottomed, that no further
easing of interest rates by the Federal Reserve Board was in store, and that
commodity prices and inflation were headed higher.
The overall market environment for bond prices was weak during this period,
as expectations that interest rates were moving higher made bonds less
attractive investment vehicles.
Mark E. Newlin, C.F.A.
Director of Fixed Income Management
Harris Investment Management, Inc.
EQUITY MARKETS REVIEW
What appeared to be a very promising start to the equity markets in 1996
evaporated in the second quarter of the year.
Particularly noteworthy in the first quarter was the continued strong flow
of cash into equity mutual funds. In fact, investors put more money into stock
mutual funds in the first six months of 1996 than in any previous full year.
Although this remarkable inflow helped to underpin the market, by June the flow
of new money had dropped considerably.
Ironically, signs of strength in the economy became a major contributor to
growing bearish sentiment in the second quarter. Investors became nervous that
renewed growth in the economy would trigger upward pressure on inflation and
interest rates. Although commodity prices did rise, these fears unfortunately
became self-fulfilling.
Compounding these factors were concerns about the sustainability of
corporate earnings growth. By the end of the second quarter, the market appeared
to have little regard for companies that were experiencing earnings
disappointments.
By the end of the first half of the year, the environment for equities was
becoming very bearish, with gains in the prices of many issues having been
capped or trimmed.
William O. Leszinske
President and Chief Investment Officer
Harris Investment Management, Inc.
4
PORTFOLIO MANAGEMENT REVIEW
THE HARRIS INSIGHT GOVERNMENT MONEY MARKET FUND
The most significant event of the first half of the year for the Harris
Insight Money Funds was the conversion of Common Trust Fund assets held by
Personal Trust clients to the Harris Insight Funds. In order to accommodate this
significant inflow of new funds, the average maturity of the Funds was extended.
After the conversion was completed, the average maturity of the securities held
by the Government Money Fund eventually was set at approximately 29 days. This
strategy worked well for the Fund, as the interest rate yield curve inverted
deeply during January, (with long-term rates rising much faster than short-term
rates) and then rebounded through the first half of the year.
THE HARRIS INSIGHT MONEY MARKET FUND
Again, the most significant event of the first half of the year for the
Harris Insight Money Funds was the significant inflow of new funds resulting
from the conversion of Common Trust Fund assets to the Harris Insight Funds.
After the conversion was completed, the average maturity of the securities held
by the Money Fund eventually was set at approximately 40 days. This strategy
worked well for the Fund, as the interest rate yield curve inverted deeply
during January (with long-term rates rising much faster than short-term rates),
and then rebounded through the first half of the year.
THE HARRIS INSIGHT TAX-EXEMPT MONEY MARKET FUND
Like the taxable money funds, the Harris Tax-Exempt Money Fund experienced a
significant inflow of new funds in the first quarter of the year following a
conversion of Common Trust Fund assets into the Fund. The Fund maintained a
relatively short average maturity through much of the first quarter. Upon
completion of the conversion, the Fund extended its average maturity. At the end
of the second quarter, the Fund's average maturity stood at 52.5 days.
THE HARRIS INSIGHT SHORT/INTERMEDIATE BOND FUND
In a dramatic reversal of last year's performance, nearly all sectors of the
fixed income markets posted negative returns in the first half of 1996. In an
unusual move characterized as a "bear market steepening," long maturity interest
rates increased more relative to short rates. The overall bearish sentiment in
the first half of the year was linked to heightened market anxiety that signs of
growth in the nation's economy would trigger higher inflation.
In anticipation of higher interest rates, the Fund maintained a short
duration strategy from the middle of February throughout the first half of the
year. This strategy will be maintained by the Fund as long as fundamental and
technical factors continue to point to a strengthening economy and higher bond
yields.
THE HARRIS INSIGHT BOND FUND
Bond yields rose dramatically in the first half of 1996 as investors were
concerned that a strengthening economy would reignite inflation. Rising yields
produced negative returns for most bond fund categories. The magnitude of the
negative returns was duration-dependent, as securities with durations of three
years and under posted positive returns and those with longer lives posted
negative returns. Spread sectors outperformed Treasury issues for the six-month
time period. The portfolio's duration has been short versus its index since the
Fund's April inception in anticipation of rising interest rates. This strategy
will be maintained as long as the economy and job growth remain quite strong.
THE HARRIS INSIGHT INTERMEDIATE TAX-EXEMPT BOND FUND
The municipal bond market experienced a difficult first half of the year. In
February, the tax-exempt market ended its string of seven consecutive months of
positive price performance. Ironically, municipal bonds outperformed Treasury
issues simply by losing less ground on days when economic reports agitated the
financial markets.
5
On the positive side, demand for tax-exempt bonds was high. During June, the
municipal market experienced one of the largest bond call/maturity periods in
recent history. In addition, as yields on longer tax-exempt issues reached the
6% level, strong retail demand surfaced. Finally, supplies turned light as the
general rise in interest rates discouraged issuers from refinancing existing
bonds or bringing new issues to market.
THE HARRIS INSIGHT TAX-EXEMPT BOND FUND
The municipal bond market experienced a difficult first half of the year. In
February, the tax-exempt market ended its string of seven consecutive months of
positive price performance. First, the yield relationship between taxable and
tax-exempt issues widened back out to its historical norm as prospects for a
flat tax faded with Steve Forbes' presidential run. In addition, a number of
factors weighed heavily on Fund performance, including a steepening of the
tax-exempt yield curve -- which reflected investor preferences for shorter-term
tax-exempt maturities -- as well as a large supply of new issues overhanging the
market.
THE HARRIS INSIGHT CONVERTIBLE FUND
Given the nearly 1.00% rise in long-term interest rates since year end 1995,
the Convertible Fund's performance benefited from minimal holdings of "bond
equivalents" (convertibles with large premiums to conversion value) and from
specific issue selections.
Performance was helped by holdings in the energy and retail industries while
health care and -- later in the second quarter-electronic technology
underperformed.
THE HARRIS INSIGHT EQUITY FUND
Although the Fund's performance during the first quarter was buoyed by the
overall strong performance of the stock market, those gains were erased in the
second quarter of the year by a sharp rise in interest rates. Interest rates
rose in response to concerns that strength in the U.S. economy would cause
inflationary pressures to build.
In addition, the Fund was negatively impacted by its overweighting in
financial stocks, which were the worst-performing sector in the Standard &
Poor's 500 Stock Index. Financial stocks were especially hard hit by the up-tick
in interest rates in the second quarter.
On the positive side, the Fund benefited from holdings in the retail food
and oil sectors. Although inflation in foods and fuels drives down bond prices,
it also raises the profits of supermarkets and oil companies.
THE HARRIS INSIGHT EQUITY INCOME FUND
At the end of the first quarter, the financial markets were jostled by an
increase in market volatility due to heightened sensitivity on the part of
investors to releases of economic data. Concern that growth in the economy would
ignite inflationary pressures was responsible for weakness in both the equity
and fixed income markets. In addition, stocks of companies with earnings
disappointments typically came under heavy selling pressure, which thereby
reduced their share prices.
Nonetheless, the Fund benefited from its exposure to holdings in the
consumer staples, energy and technology sectors, while the Fund's holdings of
basic materials, consumer cyclicals and services were a drag on Fund
performance. Utilities issues staged a sizable comeback during the quarter, but
were not able to erase negative price performance on a year-to-date basis.
THE HARRIS INSIGHT GROWTH FUND
The Growth Fund's solid performance during the period reflected the strong
underlying performance of a number of large capitalization issues selected for
the portfolio by the Fund's management team, including Andrew Corp., up 40.5%;
Tellabs, up 38.2%; U.S. Robotics, which increased 32.3%; Intel, which increased
29.1%; and Cisco Systems, up 22.1%. Other issues experiencing over 15% in price
appreciation included Mirage Resorts, Gillette, Philip Morris, Coca-Cola,
Motorola, Microsoft and Safeway.
6
By the end of the second quarter, the Fund had shifted to a more defensive
posture by reducing weightings in the technology sector and in selected large
capitalization consumer goods companies.
THE HARRIS INSIGHT SMALL-CAP OPPORTUNITY FUND
The Fund's positive showing can be attributed to the strong performance by
smaller capitalization issues, which by and large outperformed larger
capitalization stocks and the overall market during the first half of the year.
However, the Fund's performance was hampered during the period by weakness
in the market in the second quarter, and particularly by a sell-off in
technology issues. Technology stocks were jostled by selling from investors
disappointed with lower-than-expected earnings results.
THE HARRIS INSIGHT INDEX FUND
As an unmanaged index, the S&P 500 Stock Index (the "Index") is constructed
and its returns are calculated without including operational costs. The Harris
Insight Index Fund, an actual investment portfolio, inescapably incurs some
operational and transactional costs in striving to replicate the Index.
Tracking error relative to the Index for the second quarter was -0.11%
(-0.005% before expenses). Since inception, the Fund's tracking error was -0.14%
(-0.03% before expenses).
THE HARRIS INSIGHT INTERNATIONAL FUND
The Fund's performance during the period closely tracked the Morgan Stanley
Europe, Australasia and Far East (EAFE) Index. Since inception of the Fund,
performance of most of the major financial markets has been mixed relative to
the broad market indices of the United States, such as the Standard & Poor's 500
Stock Index.
Fund performance was positively impacted by stronger markets in Japan,
Switzerland and Malaysia, but hindered by weakness in the markets in the
United Kingdom, Germany and Singapore.
THE HARRIS INSIGHT HEMISPHERE FREE TRADE FUND
From the Hemisphere Free Trade Fund's inception in April through the end of
June, the Fund's asset allocation in the three North American free trade zone
countries has been 40% in the United States, 30% in Canada, and 30% in Mexico.
The weakness in the United States financial markets in the second quarter of
1996 -- reflecting investor concerns about inflationary pressures and rising
interest rates -- spilled over into Canada and Mexico. The U.S. market portion
of the Fund finished the quarter on the plus side, while the Mexican portion
ended the period flat and the Canadian portion was off slightly. The best
performing U.S. sector for the Fund was consumer staples and energy, while the
technology group was a drag on Fund performance. Berkley Petroleum Corp.,
Phillips Petroleum, Nike, IBP, and Philip Morris proved to be the best
performing individual issues for the Fund.
Money Market Fund shares are neither insured nor guaranteed by the U.S.
Government or any other entity. While each Money Market Fund seeks to maintain a
$1.00 net asset value per share, there is no assurance that it will be able to
do so. A portion of income from the Tax-Exempt Money Market Fund, Intermediate
Tax-Exempt Bond Fund and Tax-Exempt Bond Fund may be subject to some state
and/or local taxes and for certain investors, a portion may be subject to the
federal alternative minimum tax. International investing, especially in emerging
markets, poses greater potential risks as well as rewards when compared to U.S.
investing as a result of market and currency fluctuations caused by political
and financial factors abroad. Historically, small company stocks have been more
volatile than large company stocks, U.S. Government bonds and Treasury bills.
7
HARRIS INSIGHT FUNDS
GOVERNMENT MONEY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE+
<S> <C> <C> <C>
---------- --------- ------ -------
AGENCY OBLIGATIONS -- 58.8%
FEDERAL HOME LOAN BANK -- 43.8%
5.52% 07/01/96 $ 51,510 $ 51,510,000
5.25% 07/03/96 5,000 4,998,542
5.25% 07/08/96 10,000 9,989,792
4.95% 07/26/96 10,000 9,965,625
5.20% 08/26/96 7,000 6,943,378
5.10% 09/06/96 8,000 7,924,067
5.325% 03/18/97 10,000 9,990,818
-----------
101,322,222
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 15.0%
7.90% 08/12/96 9,700 9,724,542
5.76% 09/03/96 10,000 10,002,613
5.07% 09/13/96 10,000 9,895,783
5.64% 10/02/96 5,000 4,997,916
-----------
34,620,854
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $135,943,076) 135,943,076
-----------
VARIABLE RATE OBLIGATIONS++ -- 40.7%
FEDERAL HOME LOAN BANK -- 3.9%
5.405% 09/04/96* 9,000 8,992,698
-----------
STUDENT LOAN MARKETING ASSOCIATION -- 15.2%
5.43% 07/02/96* 10,000 9,995,767
5.45% 07/02/96* 10,000 10,002,102
5.50% 07/02/96* 15,000 15,000,000
----------
34,997,869
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 21.6%
5.18% 07/01/96* 19,000 18,996,807
5.85% 07/01/96* 5,000 5,008,614
5.45% 07/02/96* 6,000 6,000,000
5.335% 07/14/96* 20,000 19,985,275
-----------
49,990,696
-----------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $93,981,263) 93,981,263
-----------
SHARES
-------
TEMPORARY INVESTMENTS -- 0.3%
Goldman Sachs Institutional
Liquid Assets Government
Portfolio (Cost $652,908) 652,908 652,908
-----------
TOTAL INVESTMENTS -- 99.8%
(Cost $230,577,247) 230,577,247
-----------
</TABLE>
See Notes to Financial Statements.
8
HARRIS INSIGHT FUNDS
GOVERNMENT MONEY FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE+
------
<S> <C>
OTHER ASSETS AND LIABILITIES -- 0.2%
Interest receivable and other
assets $1,501,663
Dividend payable (929,481)
Accrued expenses (Note 4) (146,962)
-----------
OTHER ASSETS AND LIABILITIES, NET 425,220
-----------
NET ASSETS -- 100.0%
Applicable to 30,086,672 and 200,915,883 shares outstanding of
Institutional Class and Class A, respectively, $.001 par value;
1.5 billion authorized shares (Note 9) $231,002,467
-----------
-----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
EACH FOR INSTITUTIONAL CLASS AND CLASS A SHARES $1.00
------
------
</TABLE>
- ----------
+ See Note 2a to the Financial Statements.
++ Rate in effect on 06/30/96.
* Date of next interest rate reset.
See Notes to Financial Statements.
9
HARRIS INSIGHT FUNDS
MONEY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE+
<S> <C> <C> <C> <C>
--------- --------- ------ -------
AGENCY OBLIGATIONS -- 3.2%
Federal Home Loan Bank 5.65% 07/04/96 $12,500 $ 12,531,603
Federal National Mortgage
Association Discount Note 5.84 07/01/96 10,000 10,007,913
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $22,539,516) 22,539,516
-----------
ASSET BACKED SECURITIES -- 4.5%
Ford Credit Auto Trust Series
1996A 5.67 07/15/97 15,000 14,997,722
The Money Store Auto Trust
1996-1 5.6375 07/18/97 16,550 16,544,965
-----------
TOTAL ASSET BACKED SECURITIES
(Cost $31,542,687) 31,542,687
-----------
CERTIFICATES OF DEPOSIT -- 4.2%
A.B.B. Treasury Center USA
Inc. 5.345 07/08/96 20,000 20,000,231
Sumitomo Corp. of America 5.50 07/01/96 10,000 10,000,000
-----------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $30,000,231) 30,000,231
-----------
COMMERCIAL PAPER -- 48.5%
City of Whiting Indiana 5.38 07/15/96 38,000 38,000,000
Commonwealth Edison 5.50 07/03/96 2,000 1,999,389
ConAgra Inc. 5.55 07/11/96 5,000 4,992,292
Dayton Hudson Corp. 5.50 07/08/96 6,000 5,993,583
Eksportfinans 5.23 08/14/96 2,200 2,185,937
Enserch Corp. 5.55 07/10/96 4,000 3,994,450
Finnish Export Credit 5.29 07/01/96 10,000 10,000,000
Finnish Export Credit 5.07 07/26/96 25,000 24,911,979
Fleet Funding Inc. 5.35 07/12/96 6,000 5,990,192
General Motors Acceptance
Corp. 5.40 07/19/96 15,000 14,959,500
General Motors Acceptance
Corp. 5.37 11/15/96 20,000 19,591,283
Goldman, Sachs & Co. 5.65 07/01/96 32,000 32,000,000
Heller Financial, Inc. 5.42 07/22/96 10,000 9,968,383
Heller Financial, Inc. 5.02 10/25/96 25,000 24,595,611
Household Finance 5.33 07/01/96 15,000 15,000,000
Merrill Lynch & Co., Inc. 5.33 07/01/96 15,000 15,000,000
Merrill Lynch & Co., Inc. 5.31 09/09/96 15,000 14,845,125
Province of Quebec 4.97 07/22/96 7,000 6,979,706
Public Service Electric & Gas
Co. 5.50 07/15/96 7,000 6,985,028
Sheffield Receivables Corp. 5.32 07/01/96 6,190 6,190,000
Sheffield Receivables Corp. 5.35 07/12/96 7,600 7,587,576
Sweden Kingdom 5.05 08/16/96 21,000 20,864,492
West Baton Rouge 5.45 07/01/96 10,666 10,666,000
Wool International 5.06 07/26/96 25,000 24,912,153
Xerox Corp. 5.32 07/01/96 15,000 15,000,000
-----------
TOTAL COMMERCIAL PAPER (Cost
$343,212,679) 343,212,679
-----------
CORPORATE BONDS -- 2.1%
Beta Finance, Inc. 5.87 08/19/96 10,000 9,997,904
General Electric Capital Corp.
EURO 8.00 01/17/97 3,856 3,901,274
General Electric Capital Corp. 8.00 02/01/97 1,000 1,016,434
-----------
TOTAL CORPORATE BONDS (Cost
$14,915,612) 14,915,612
-----------
</TABLE>
See Notes to Financial Statements.
10
HARRIS INSIGHT FUNDS
MONEY FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ANNUALIZED PAR
YIELD/RATE MATURITY (000) VALUE+
<S> <C> <C> <C> <C>
---------- --------- ------ -------
TIME DEPOSITS -- 12.7%
Mitsubishi Bank (Cayman) 5.6875% 07/01/96 $30,000 $ 30,000,000
Sanwa Bank LTD. 5.625 07/01/96 35,000 35,000,000
Sumitomo Bank (Cayman) 5.6875 07/01/96 25,000 25,000,000
-----------
TOTAL TIME DEPOSITS (Cost
$90,000,000) 90,000,000
-----------
VARIABLE RATE OBLIGATIONS++ -- 22.6%
Asset Backed Trust 1995-
Series-A-1 5.5075 07/10/96* 3,000 3,000,000
Bank One Columbus 5.30 07/01/96* 25,000 24,996,609
Beta Finance, Inc. 5.456 07/13/96* 10,000 10,000,000
Federal Farm Credit Bank 5.70 07/01/96* 1,500 1,499,831
Federal National Mortgage
Association 5.18 07/01/96* 10,000 9,996,387
Federal National Mortgage
Association 5.85 07/01/96* 16,000 16,027,566
Federal National mortgage
Association 5.45 07/02/96* 10,000 10,000,000
General Electric Capital Corp. 5.50 07/01/96* 7,000 7,000,022
General Electric Capital Corp. 5.24 07/02/96* 1,300 1,299,885
General Electric Capital Corp. 5.452 08/07/96* 26,000 26,000,000
Racer Series 1996MM 2-1 Trust 5.568 07/22/96* 40,000 40,000,000
Student Loan Marketing
Association 5.45 07/02/96* 10,000 10,002,102
-----------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $159,822,402) 159,822,402
-----------
SHARES
------
TEMPORARY INVESTMENTS -- 2.3%
Dreyfus Cash Management Plus, Inc.
Class A Shares 13,883,684 13,883,684
Goldman Sachs Financial Square
Money Market Portfolio 2,088,086 2,088,086
Lehman Prime Money Market Fund
Class A Shares 181,390 181,390
-----------
TOTAL TEMPORARY INVESTMENTS (Cost
$16,153,160) 16,153,160
-----------
TOTAL INVESTMENTS -- 100.1% (Cost $708,186,287) 708,186,287
-----------
OTHER ASSETS AND LIABILITIES -- (0.1%)
Interest receivable and other assets 2,731,952
Dividends payable (3,110,078)
Accrued expenses (Note 4) (353,885)
-----------
OTHER ASSETS AND LIABILITIES, NET (732,011)
-----------
NET ASSETS -- 100.0%
Applicable to 311,318,027, and 396,136,249 shares outstanding
of Institutional Class and Class A, respectively, $.001 par
value; 1.75 billion authorized shares (Note 9) $707,454,276
-----------
-----------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE EACH FOR INSTITUTIONAL CLASS AND CLASS A SHARES $1.00
------
------
</TABLE>
- ----------
+ See Note 2a to the Financial Statements.
++ Rate in effect on 06/30/96.
* Date of next interest rate reset.
See Notes to Financial Statements.
11
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS -- 103.1%
ALABAMA -- 0.6%
Montgomery, Alabama, Industrial
Development Pollution Control
Revenue Bonds (General Electric
Co.) PS
3.65% 07/23/96 $ 4,030 $ 4,030,000
-----------
ALASKA -- 4.9%
Valdez, Alaska Marine Terminal
(Arco) Series C PS
3.70% 08/14/96 9,600 9,600,000
3.75% 08/19/96 12,500 12,500,000
Valdez, Alaska Marine Terminal
(Atlantic Richfield) Series
1994 PS
3.60% 08/07/96 5,000 5,000,000
Valdez, Alaska Marine Terminal
(Atlantic Richfield) Series
1994A PS
3.20% 07/17/96 3,000 3,000,000
3.55% 08/07/96 1,000 1,000,000
-----------
TOTAL ALASKA 31,100,000
ARIZONA -- 5.2%
Maricopa County, Arizona,
Pollution Control Corporation
Pollution Control Revenue
Refunding Bonds (Arizona Public
Service Co.) Series E VR
3.60% 07/01/96 7,600 7,600,000
Salt River, Arizona, Agriculture
and Improvement Power District
TECP
3.60% 07/08/96 2,415 2,415,000
3.65% 07/16/96 4,000 4,000,000
3.50% 08/01/96 3,050 3,050,000
3.40% 08/05/96 4,000 4,000,000
3.45% 08/05/96 3,000 3,000,000
3.65% 08/06/96 8,850 8,850,000
-----------
TOTAL ARIZONA 32,915,000
-----------
CALIFORNIA -- 4.5%
California Community College
Financing Authority Series A
TRANS
4.75% 07/02/97 12,105 12,209,587
Los Angeles, California Regional
Airports Improvement Corp.
Lease Revenue Bonds (American
Airlines) Series B VR
3.65% 07/01/96 2,000 2,000,000
Los Angeles, California Union
School District TRANS
4.50% 06/30/97 9,350 9,412,832
South Coast, California, Local
Education Agencies Note
Partners
Series A TRANS
4.75% 06/30/97 5,000 5,032,450
-----------
TOTAL CALIFORNIA 28,654,869
-----------
</TABLE>
See Notes to Financial Statements.
12
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY FUND
STATEMENT OF NET ASSETS (UNAUDITED) (CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
DISTRICT OF COLUMBIA -- 2.1%
District of Columbia Loans Revenue
Series 1985
4.33% 07/01/97 $ 1,620 $ 1,624,390
District of Columbia, Revenue
Bonds American Association for
the Advancement of Science VR
3.65% 07/01/96 12,000 12,000,000
-----------
TOTAL DISTRICT OF COLUMBIA 13,624,390
-----------
FLORIDA -- 5.9%
Dade County, Florida, Industrial
Development Authority Revenue
Refunding Bonds (Florida Power
& Light Company) VR
3.60% 07/01/96 8,700 8,700,000
Dade County, Florida, Special
Obligation Revenue Bonds
Capital Asset Acquisition
Series 1990 VR
3.60% 07/07/96 7,360 7,360,000
Jacksonville, Florida, Electric
Authority TECP
3.30% 07/02/96 1,700 1,700,000
3.50% 07/02/96 1,000 1,000,000
3.50% 08/09/96 3,100 3,100,000
Putnam County, Florida
Development Authority
Pollution Control Revenue Bonds
Seminole Electric Series H-3 PS
3.25% 09/15/96 8,900 8,900,000
Putnam County, Florida,
Development Authority
Pollution Control Revenue Bonds
Seminole Electric Series D PS
3.50% 12/15/96 2,000 2,000,000
Sunshine State, Florida PS
3.30% 07/24/96 3,900 3,900,000
3.65% 07/24/96 1,000 1,000,000
-----------
TOTAL FLORIDA 37,660,000
-----------
GEORGIA -- 9.0%
Burke County, Georgia,
Development Authority
Pollution Control Revenue
Bonds (Oglethorpe Power
Corporation) Project A PS
3.65% 07/11/96 2,000 2,000,000
3.55% 08/01/96 3,000 3,000,000
3.35% 08/26/96 2,000 2,000,000
3.40% 08/26/96 7,300 7,300,000
3.35% 08/27/96 2,200 2,200,000
3.40% 08/27/96 7,000 7,000,000
Burke County, Georgia, Pollution
Control Revenue Bonds (Georgia
Power & Light Company Vogtle
Project) 3RD 1994 VR
3.75% 07/01/96 9,000 9,000,000
</TABLE>
See Notes to Financial Statements.
13
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY FUND
STATEMENT OF NET ASSETS (UNAUDITED) (CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
GEORGIA (CONTINUED)
Dekalb Private Hospital
Authority, Georgia Revenue
Bonds
(Egleston Children's Hospital)
Series B VR
3.30% 07/07/96 $14,000 $ 14,000,000
Dekalb Private Hospital
Authority, Georgia Revenue
Bonds
(Egleston Children's Hospital)
Series A VR
3.30% 07/07/96 11,000 11,000,000
-----------
TOTAL GEORGIA 57,500,000
-----------
HAWAII -- 0.9%
Honolulu, Hawaii Series B
3.90% 10/01/96 1,000 1,000,407
Honolulu, Hawaii TECP
3.55% 08/07/96 5,000 5,000,000
-----------
TOTAL HAWAII 6,000,407
-----------
IDAHO -- 0.6%
Idaho State TRANS
4.50% 06/30/97 4,000 4,022,960
Illinois -- 2.6%
Chicago, Illinois General
Obligation Notes
3.10% 02/04/97 3,000 3,000,000
Cook County, Illinois Revenue
Bonds (Catholic Charities) VR
3.40% 07/07/96 8,200 8,200,000
Illinois Development Finance
Authority Revenue Bonds
(Catholic Charities) Series B
3.40% 07/03/96 1,310 1,310,000
Illinois Educational Facility
TECP
3.60% 07/12/96 4,160 4,159,871
-----------
TOTAL ILLINOIS 16,669,871
-----------
INDIANA -- 4.0%
Indiana State Educational
Facility Authority Revenue
Bonds,
(University of Notre Dame) VR
3.15% 07/07/96 7,500 7,500,000
Indiana Bond Bank
4.25% 07/08/96 6,000 6,001,026
4.25% 01/09/97 5,000 5,019,060
Jasper County, Indiana, Pollution
Control Revenue Bonds, Northern
Indiana Public Service Series
A PS
3.50% 08/16/96 2,500 2,500,000
</TABLE>
See Notes to Financial Statements.
14
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
INDIANA (CONTINUED)
Jasper County, Indiana, Pollution
Control Revenue Bonds,
Northern Indiana Public Service
Series C PS
3.50% 08/16/96 $ 2,000 $ 2,000,000
Sullivan, Indiana PS
3.60% 10/09/96 2,600 2,600,000
-----------
TOTAL INDIANA 25,620,086
-----------
KANSAS -- 6.0%
Burlington, Kansas, Pollution
Control Revenue Bonds
(Kansas City Power & Light)
Series 1987A PS
3.40% 08/08/96 3,000 3,000,000
Burlington, Kansas, Pollution
Control Revenue Bonds,
(Kansas City Power & Light)
Series 1985A PS
3.50% 07/08/96 4,700 4,700,000
Burlington, Kansas, Pollution
Control Revenue Bonds,
(Kansas City Power & Light)
Series 1985B PS
3.70% 07/10/96 6,700 6,700,000
Burlington, Kansas, Pollution
Control Revenue Bonds,
(Kansas City Power & Light)
Series 1987A PS
3.40% 08/08/96 1,000 1,000,000
Burlington, Kansas, Pollution
Control Revenue Bonds,
(Kansas City Power & Light)
Series 1987B PS
3.40% 08/08/96 4,150 4,150,000
Kansas State Department of
Transportation Highway Revenue
Bonds
Series B VR
3.30% 07/07/96 18,400 18,400,000
-----------
TOTAL KANSAS 37,950,000
-----------
KENTUCKY -- 1.7%
Clark County, Kentucky, Pollution
Control Revenue Bonds,
(East Kentucky Power) PS
3.40% 10/15/96 5,000 5,000,000
Jefferson County, Kentucky,
Pollution Control Revenue Bonds
(Louisville Gas & Electric Co.)
Series A PS
3.60% 07/18/96 5,600 5,600,000
-----------
TOTAL KENTUCKY 10,600,000
-----------
LOUISIANA -- 5.4%
East Baton Rouge (Parish of)
Louisiana Pollution Control
Revenue Bonds (Exxon Corp.)
Project Series 1983A VR
3.60% 07/01/96 11,100 11,100,000
Jefferson (Parish of), Louisiana
Hospital Service District #2
Hospital Revenue Bonds VR
3.10% 07/07/96 4,800 4,800,000
</TABLE>
See Notes to Financial Statements.
15
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
LOUISIANA (CONTINUED)
Louisiana State General
Obligation Series A
3.55% 08/01/96 $ 1,125 $ 1,125,000
West Baton Rouge (Parish of),
Louisiana, Industrial District
#3 Revenue Bonds (Dow Chemical
Co.) Series B VR
3.65% 07/01/96 12,100 12,100,000
West Baton Rouge, Louisiana PS
3.65% 08/02/96 4,900 4,900,000
-----------
TOTAL LOUISIANA 34,025,000
-----------
MARYLAND -- 0.3%
State of Maryland General
Obligation Bond
6.70% 07/15/96 2,000 2,002,585
-----------
MICHIGAN -- 3.7%
Michigan State General Obligation
Bond
4.00% 09/30/96 15,000 15,037,461
Michigan State Underground
Storage Tank Financial
Assurance Authority Revenue
Bonds Series I PS
3.45% 08/15/96 5,000 5,000,000
Michigan Strategic Fund PS
3.60% 08/02/96 1,000 1,000,000
3.65% 08/02/96 2,500 2,500,000
-----------
TOTAL MICHIGAN 23,537,461
-----------
MINNESOTA -- 4.3%
Rochester, Minnesota, Health Care
Facilities Revenue Bonds
(Mayo Foundation, Mayo Medical
Center) Series A PS
3.45% 07/25/96 500 500,000
3.65% 10/08/96 2,000 2,000,000
Rochester, Minnesota, Health Care
Facilities Revenue Bonds
(Mayo Foundation, Mayo Medical
Center) Series C PS
3.65% 07/25/96 2,000 2,000,000
3.40% 10/08/96 7,700 7,700,000
Rochester, Minnesota, Health Care
Facilities Revenue Bonds
(Mayo Foundation, Mayo Medical
Center) Series E PS
3.55% 07/11/96 1,500 1,500,000
Rochester, Minnesota, Health Care
Facilities Revenue Bonds
(Mayo Foundation, Mayo Medical
Center) Series F PS
3.50% 10/02/96 7,700 7,700,000
University of Minnesota Revenue
Bonds (Full Faith & Credit)
Series G PS
3.45% 07/29/96 5,000 5,000,000
3.25% 08/01/96 1,150 1,150,000
-----------
TOTAL MINNESOTA 27,550,000
-----------
</TABLE>
See Notes to Financial Statements.
16
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MISSISSIPPI -- 1.1%
Claiborne County, Mississippi PS
3.75% 08/05/96 $ 3,000 $ 3,000,000
Jacksonville County,
Mississippi, Port Facility,
Chevron USA, Inc,
Series 1993 VR
3.55% 07/01/96 4,200 4,200,000
-----------
TOTAL MISSISSIPPI 7,200,000
-----------
MISSOURI -- 1.8%
Independence, Missouri, Water
Utility Revenue Bonds PS
3.70% 07/17/96 1,200 1,200,000
3.60% 08/20/96 5,000 5,000,000
3.60% 08/21/96 5,000 5,000,000
-----------
TOTAL MISSOURI 11,200,000
-----------
NEW YORK -- 17.6%
New York City General Obligation
Bonds Series 1994B VR
3.75% 07/01/96 1,000 1,000,000
New York City Municipal Water
Finance Authority Water and
Sewer
System Revenue Bonds VR
3.60% 07/01/96 20,000 20,000,000
3.75% 07/01/96 7,600 7,600,000
New York City, New York General
Obligation Bonds VR
3.75% 07/01/96 15,550 15,550,000
3.80% 07/01/96 18,400 18,400,000
3.45% 07/03/96 7,000 7,000,000
New York State Energy Research &
Development Authority
Pollution Control Refunding
Revenue Bonds (Niagara Mohawk
Power Corp) Series B VR
3.60% 07/01/96 5,000 5,000,000
New York State Energy Research &
Development Authority
Pollution Control Revenue Bonds
(Niagara Mohawk Power) Series
A VR
3.70% 07/01/96 5,000 5,000,000
New York State Revenue Bonds
(Local Government Assistance
Corp.) Series D VR
3.10% 07/07/96 12,000 12,000,000
Westchester County, New York
General Obligation Note
3.75% 12/11/96 20,000 20,056,651
-----------
TOTAL NEW YORK 111,606,651
-----------
</TABLE>
See Notes to Financial Statements.
17
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
OHIO -- 0.7%
Cleveland, Ohio, City School
District RANS
4.50% 06/01/97 $ 2,000 $ 2,010,658
Ohio State Air Quality Development
Authority Revenue Bonds Series
A VR
3.75% 07/01/96 2,400 2,400,000
-----------
TOTAL OHIO 4,410,658
-----------
OKLAHOMA -- 0.3%
Tulsa, Oklahoma, Tulsa Industrial
Authority Revenue Bonds
(University of Tulsa) Series B
VR
3.10% 07/07/96 2,000 2,000,000
Pennsylvania -- 1.5%
Montgomery County, Pennsylvania
PS
3.50% 07/11/96 4,080 4,080,000
Philadelphia, Pennsylvania,
School District General
Obligation Series A
4.00% 07/01/96 5,500 5,500,000
-----------
TOTAL PENNSYLVANIA 9,580,000
-----------
SOUTH CAROLINA -- 0.6%
South Carolina Public Service
Authority TECP
3.30% 08/12/96 3,700 3,700,000
-----------
TENNESSEE -- 2.9%
Metro Government Nashville &
Davidson County, Tennessee,
Health and Education Facilities
Revenue Bonds (Vanderbilt
University) Series B PS
3.70% 05/01/97 750 750,000
State of Tennessee BANS Series A
VR
3.25% 07/07/96 17,600 17,600,000
-----------
TOTAL TENNESSEE 18,350,000
-----------
TEXAS -- 4.5%
Harris County, Texas, Health
Facilities Development Corp.
Hospital
Revenue Bonds (Memorial
Hospital System) Series 1994B
PS
3.60% 08/13/96 5,900 5,900,000
Sabine River, Texas, Industrial
Development Authority Revenue
Bonds (Northeast Texas) Series
Q
3.10% 08/15/96 4,005 4,005,000
Sabine River, Texas, Pollution
Control Revenue Bonds
(Collective Utilities Electric
Company) Series B VR
3.75% 07/01/96 2,000 2,000,000
Texas Muni Power Agency TECP
3.45% 10/07/96 12,075 12,075,000
Texas State Tax and Revenue
4.75% 08/30/96 5,000 5,005,926
-----------
TOTAL TEXAS 28,985,926
-----------
</TABLE>
See Notes to Financial Statements.
18
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
UTAH -- 2.4%
Intermountain Power Agency, Utah,
Power Supply Revenue Bonds,
Series F PS
3.45% 07/03/96 $ 2,700 $ 2,700,000
3.50% 07/03/96 6,700 6,700,000
3.60% 07/09/96 5,650 5,650,000
-----------
TOTAL UTAH 15,050,000
-----------
VERMONT -- 0.2%
Vermont Educational Health and
Building Funding Agency Revenue
Bonds (Middlebury College)
Series A PS
3.70% 05/01/97 1,000 1,000,000
Virginia -- 0.9%
Chesterfield County, Virginia,
Industrial Development
Authority Pollution Control
Revenue Bonds (Philip Morris
Companies) VR
3.35% 07/07/96 3,000 3,000,000
Colonial Heights, Virginia,
Industrial Development
Authority Revenue
Bonds (Philip Morris Companies)
VR
3.35% 07/07/96 2,600 2,600,000
-----------
TOTAL VIRGINIA 5,600,000
-----------
WASHINGTON -- 3.8%
Washington State General
Obligation Series 1996A VR
3.40% 07/07/96 5,000 5,000,000
Washington State General
Obligation Series 1996B VR
3.25% 07/07/96 19,100 19,100,000
-----------
TOTAL WASHINGTON 24,100,000
-----------
WYOMING -- 3.1%
Gillette County, Wyoming,
Pollution Control Revenue Bonds
(Pacificorp) PS
3.70% 07/19/96 9,100 9,100,000
Lincoln County, Wyoming,
Pollution Control Revenue Bonds
(Pacificorp) PS
3.50% 10/03/96 10,500 10,500,000
-----------
TOTAL WYOMING 19,600,000
-----------
TOTAL MUNICIPAL BONDS (Cost
$655,845,864) 655,845,864
-----------
SHARES
-------
TEMPORARY INVESTMENTS -- 1.8%
Federated Tax-Free Obligation
Fund 2,354,021 2,354,021
Fidelity Tax-Exempt Money Market
Fund 25,460 25,460
Goldman Sachs Financial Square
Tax-Exempt Money Market
Portfolio 8,720,595 8,720,595
Nuveen Tax Exempt Money Market
Fund 99,042 99,042
-----------
TOTAL TEMPORARY INVESTMENTS (Cost
$11,199,118) 11,199,118
-----------
TOTAL INVESTMENTS -- 104.9% (Cost
$667,044,982) 667,044,982
-----------
</TABLE>
See Notes to Financial Statements.
19
HARRIS INSIGHT FUNDS
TAX-EXEMPT MONEY FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE+
------
<S> <C>
OTHER ASSETS AND LIABILITIES -- (4.9%)
Interest receivable and other assets $ 2,989,500
Payable for investments purchased (32,302,219)
Dividend payable (1,635,198)
Accrued expenses (Note 4) (224,397)
-----------
OTHER ASSETS AND LIABILITIES, NET (31,172,314)
-----------
NET ASSETS -- 100.0%
Applicable to 474,892,588 and 160,985,373 shares outstanding of
Institutional Class and Class A, respectively, $.001 par value;
1.5 billion authorized shares (Note 9) $635,872,668
------------
------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
EACH FOR INSTITUTIONAL CLASS AND
CLASS A SHARES $ 1.00
------
------
</TABLE>
- ----------
+ See Note 2a to the Financial Statements.
PS -- Security with a "put" feature; date shown is when security may be put back
for redemption.
VR -- Variable rate demand note; interest rate in effect on 6/30/96. Maturity
date is the later of the next interest rate change or exercise of the
demand feature.
TECP -- Tax Exempt Commercial Paper.
TRANS -- Tax Revenue Anticipation Note.
RANS -- Revenue Anticipation Note.
BANS -- Bond Anticipation Note.
See Notes to Financial Statements.
20
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COUPON PAR
RATE MATURITY (000) VALUE+
---- -------- ----- ------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS -- 9.9%
AID -- Israel Guaranteed
Notes 6.05 % 08/15/00 $ 520 $ 507,650
Federal Home Loan Bank 5.43 12/29/98 8,500 8,324,049
Federal Home Loan Bank 7.36 07/01/04 1,000 1,024,830
Federal National Mortgage
Association 6.375 10/13/00 400 394,736
Federal National Mortgage
Association 8.40 10/25/04 5,000 5,182,300
Federal Home Loan Mortgage
Corp. 6.51 06/08/97 5,000 5,027,100
Federal Home Loan Mortgage
Corp. 7.98 09/08/04 5,000 5,009,100
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $25,476,172) 25,469,765
-----------
MATURITY++
---------
ASSET-BACKED SECURITIES --
14.9%
AFC Home Equity Loan Trust
1991 Series 3 8.40 08/15/06 340 342,822
AFC Home Equity Loan Trust
1991 Series 4 7.75 02/15/06 147 147,857
Bank America Manufactured
Housing Contract Series
1996-1 Class B1 7.875 10/10/26 3,500 3,500,000
Chase Manhattan Credit Card
Master Trust Series 1996-3
Class A 7.04 02/15/04 2,750 2,774,063
Chemical Master Credit Card
Trust 1 1995-3 Class A 6.23 04/15/05 1,000 970,380
First Deposit Master Trust
1995-2 6.05 08/15/02 5,000 4,972,393
Fleet Financial Home Equity
1991 Series 1, Class A 8.45 04/15/06 181 184,552
Ford Credit Auto Loan Master
Trust Series 1, Class A 6.50 08/15/02 1,000 996,300
Goldome Home Equity Trust
1990 Series 1 10.00 07/15/05 301 311,832
Greentree Financial
Corporation Pass Through
Certificate 1996-2, B1 7.55 04/21/03 1,500 1,476,722
Household Affinity Credit
Card Master Trust 1 Series
1994-2, Class A 7.00 12/15/99 1,000 1,012,550
Merrill Lynch Home Equity
Loan 6.167 07/15/22 770 768,276
Nissan Auto Receivables
Grantor Trust Series 1994-A 6.45 09/15/99 366 368,121
Olympic Automobile
Receivable Trust 6.00 02/15/02 5,000 4,897,500
Premier Auto Trust Series
1995-A, Class CTFS 6.20 09/06/00 4,662 4,593,675
Premier Auto Trust Series
1996, Class 1B 6.35 07/06/00 4,000 3,969,377
Private Label Credit Card
Master Trust II Series
1994-1,
Class A 7.15 06/20/01 833 839,041
Standard Credit Card Master
Trust Series 95-3A 7.85 02/07/02 2,000 2,072,400
Western Auto Receivables
Series 96-A 6.05 06/01/00 4,000 3,964,220
Security Pacific Home Equity
1991 Class 1A 7.85 05/15/98 119 119,680
Vanderbilt Mortgage Finance
Series 1995-A, Class A1 7.15 09/07/19 303 303,763
-----------
TOTAL ASSET-BACKED
SECURITIES (Cost
$38,914,264) 38,585,524
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 24.7%
DLJ Mortgage Acceptance
Corporation Series 1995-Q1
Class A1S I0 1.605 03/25/25 809 227,535
</TABLE>
See Notes to Financial Statements.
21
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COUPON PAR
RATE MATURITY++ (000) VALUE+
---- ---------- ----- ------
<S> <C> <C> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS
(CONTINUED)
DLJ Mortgage Acceptance
Corporation Series
1996-CF1 Class A1A 7.28 % 03/13/28 $4,477 $ 4,498,904
Federal Home Loan Mortgage
Corporation FHR Series
1576, Class PD 5.50 09/15/02 7,000 6,909,280
Federal Home Loan Mortgage
Corporation Series 1758,
Class K 5.50 11/15/02 750 737,334
Federal Home Loan Mortgage
Corporation FHR Series
1376, Class B 6.25 10/15/15 663 662,534
Federal Home Loan Mortgage
Corporation Series 1571,
Class BA PO 0.00 04/15/19 754 684,539
Federal Home Loan Mortgage
Corporation Series 15,
Class A 9.10 10/15/19 1 1,002
Federal Home Loan Mortgage
Corporation Series 1044,
Class D 8.90 03/15/20 1,037 1,068,874
Federal Home Loan Mortgage
Corporation GNMA FHG
Series 24, Class K 6.25 09/25/22 3,800 3,558,938
Federal National Mortgage
Association Series
1990-32,
Class E 9.00 08/01/01 6,650 6,936,781
Federal National Mortgage
Association FNR Series
1994-85, Class E 6.00 11/25/06 1,200 1,162,948
Federal National Mortgage
Association FNA Series
1996-M3, Class A1 7.385 03/20/21 773 777,532
Federal National Mortgage
Association Series
1993-146, Class B PO 0.00 05/25/23 1,153 1,080,254
Federal National Mortgage
Association FNS 240 Series
240, Class 2 I0 7.00 09/01/23 2,591 890,765
Federal National Mortgage
Association Series
1993-228, Class D PO 0.00 09/25/23 2,209 1,435,970
Federal National Mortgage
Association Series
1995-11,
Class A PO 0.00 01/25/24 518 378,788
Federal Home Loan Mortgage
Corporation Pool #G00143 7.50 06/01/23 1,080 1,070,808
Federal National Mortgage
Association Pool #303724 6.00 01/01/11 8,900 8,524,531
Federal National Mortgage
Association Pool #305189 9.00 01/01/25 54 56,703
Federal National Mortgage
Association Pool #305555 9.00 01/01/25 519 541,629
Federal National Mortgage
Association Pool #306031 9.00 02/01/25 1,222 1,276,329
Federal National Mortgage
Association Pool #306674 9.00 03/01/25 450 469,207
Federal National Mortgage
Association Pool #317306 9.00 07/01/25 437 455,856
Federal National Mortgage
Association Pool #338001 9.00 10/01/25 45 46,964
Federal National Mortgage
Association TBA 7.75 01/15/30 7,000 7,070,000
Government National
Mortgage Association Pool
#333668 7.00 07/15/23 802 774,057
Government National
Mortgage Association Pool
#326150 7.00 09/15/23 284 274,106
Government National
Mortgage Association Pool
#345039 7.00 09/15/23 854 823,777
</TABLE>
See Notes to Financial Statements.
22
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COUPON PAR
RATE MATURITY++ (000) VALUE+
---- ---------- ----- ------
<S> <C> <C> <C> <C>
COLLATERALIZED MORTGAGE
OBLIGATIONS (CONTINUED)
Government National
Mortgage Association Pool
#383330 7.00 % 12/01/23 $ 969 $ 930,041
Government National
Mortgage Association Pool
#391901 7.00 12/01/23 882 846,653
Government National
Mortgage Association Pool
#407660 7.00 12/01/23 872 837,032
Government National
Mortgage Association Pool
#345536 7.00 01/15/24 564 543,659
Government National
Mortgage Association Pool
#351638 7.00 01/15/24 810 781,047
Government National
Mortgage Association Pool
#397755 7.00 05/15/24 688 663,713
Government National
Mortgage Association Pool
#780023 7.00 09/15/24 919 885,966
Government National
Mortgage Association Pool
#377553 7.00 07/15/25 744 713,864
Government National
Mortgage Association Pool
#406568 7.00 07/15/25 971 931,446
Government National
Mortgage Association Pool
#8747 6.50 11/20/25 273 275,121
Prudential Home Mortgage
Securities Series 1992-6,
Class A3 7.00 04/25/99 528 527,485
Ryland Acceptance
Corporation Series 74,
Class D 7.50 08/01/13 922 924,866
Structured Asset Securities
Corporation Series
1996-CFL, Class A1C 5.944 02/01/25 2,640 2,549,735
-----------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $64,099,904) 63,806,573
-----------
MATURITY
-------
CORPORATE BONDS -- 21.5%
FINANCE BONDS -- 11.8%
American Express 6.125 11/15/01 440 427,350
Associates Corp.of North
America 5.75 10/15/03 190 175,988
Banco Bilbao Vizcaya
International 6.875 10/27/05 4,080 3,901,500
Beneficial Corp. 8.40 05/15/08 20 21,725
Beneficial Corp. MTN 9.13 07/25/01 1,000 1,095,000
British Gas Financial Euro 8.375 09/08/99 3,485 3,633,113
Caterpillar Financial
Services Corp., MTN 8.29 03/04/99 1,000 1,040,000
General Motors Acceptance
Corp. 8.25 12/09/97 2,000 2,053,060
Household Finance Corp. 8.55 10/15/04 3,000 3,105,000
Korea Development Bank 5.875 12/01/98 4,000 3,935,000
Lehman Brothers Holdings 8.50 10/15/00 4,000 4,415,000
Merrill Lynch 6.00 03/01/01 4,000 3,860,000
Sears O S Financial 0.00 07/12/98 3,000 2,640,000
-----------
30,302,736
-----------
INDUSTRIAL BONDS -- 8.3%
Atlantic Richfield Co. 9.125 03/01/11 100 115,375
Browning-Ferris Corp. 6.10 01/15/03 1,000 955,000
E.I. DuPont de Nemours & Co. 7.50 06/11/99 440 450,450
Ford Motor Co. 9.00 09/15/01 4,000 4,355,000
</TABLE>
See Notes to Financial Statements.
23
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COUPON PAR
RATE MATURITY (000) VALUE+
---- -------- ----- ------
<S> <C> <C> <C> <C>
CORPORATE BONDS (CONTINUED)
INDUSTRIAL BONDS (CONTINUED)
H.J. Heinz Co. 7.50 % 04/26/00 $ 1,000 $ 1,022,500
Hertz Corp. 8.30 02/02/98 1,000 1,028,750
Lockheed Martin Corp. 6.55 05/15/99 4,200 4,194,750
Ryder Systems Inc. 5.77 04/21/98 1,475 1,460,250
Sears Roebuck, Co. MTN 8.39 02/14/02 800 849,000
State Bank of New South Wales 10.375 04/26/99 750 819,375
Wal-Mart Stores 5.875 10/15/05 3,100 2,840,375
Walt Disney Co. 6.375 03/30/01 2,785 2,739,744
Waste Management
Technologies, Inc. 6.25 10/15/00 700 686,000
-----------
21,516,569
-----------
UTILITY BONDS -- 1.4%
Commonwealth Edison Co. 6.00 03/15/98 715 708,744
Korea Electric Power 7.40 04/01/16 345 335,081
Pacific Gas & Electric First
Mortgage Bond 7.875 03/01/02 500 519,375
Consolidated Edison 6.625 07/01/05 2,150 2,050,563
-----------
3,613,763
-----------
TOTAL CORPORATE BONDS (Cost
$55,594,536) 55,433,068
-----------
VARIABLE RATE OBLIGATIONS -- 1.6%
Comdisco Inc. (Cost
$4,000,789) 5.50 05/22/96 4,000 4,003,876
U.S. Treasury Obligations --
20.6%
U.S. Treasury Note 6.875 10/31/96 15,000 15,072,899
U.S. Treasury Note 5.75 09/30/97 275 274,513
U.S. Treasury Note 6.00 11/30/97 6,200 6,205,393
U.S. Treasury Note 5.50 11/15/98 1,100 1,083,401
U.S. Treasury Note 8.875 11/15/98 2,000 2,116,540
U.S. Treasury Note 7.50 10/31/99 1,515 1,565,495
U.S. Treasury Note 7.875 11/15/99 5,000 5,226,100
U.S. Treasury Note 7.75 11/30/99 3,320 3,459,340
U.S. Treasury Note 7.75 12/31/99 2,850 2,972,550
U.S. Treasury Note 5.625 11/30/00 8,000 7,747,440
U.S. Treasury Note 5.75 08/15/03 3,000 2,858,310
U.S. Treasury Note 6.875 05/15/06 4,600 4,650,324
-----------
TOTAL U.S. TREASURY
OBLIGATIONS (Cost
$53,634,250) 53,232,305
-----------
</TABLE>
See Notes to Financial Statements.
24
HARRIS INSIGHT FUNDS
SHORT/INTERMEDIATE FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COUPON PAR
RATE MATURITY (000) VALUE+
---- -------- ----- ------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER -- 11.8%
Commonwealth Edison 5.55 % 07/01/96 $ 2,000 $ 2,000,000
ConAgra, Inc. 5.55 07/10/96 10,000 9,986,125
Enserch Corp. 5.65 07/03/96 1,300 1,299,592
Lockheed Corp. 5.55 07/23/96 11,200 11,162,013
PSE&G 5.55 08/02/96 5,000 4,975,333
Textron, Inc. 5.75 08/16/96 1,000 992,653
-----------
TOTAL COMMERCIAL PAPER (Cost
$30,415,716) 30,415,716
-----------
TEMPORARY INVESTMENTS -- 0.3%
SHARES
-------
Goldman Sachs Institutional Liquid Assets
Money Market Portfolio (Cost $708,031) 708 708,031
-----------
TOTAL INVESTMENTS -- 105.3%
(Cost $272,843,662) 271,654,858
-----------
OTHER ASSETS AND LIABILITIES -- (5.3%)
Receivable for investments
sold 10,931,536
Interest receivable and
other assets 2,958,875
Receivable for capital stock
sold 373,227
Payable for investments
purchased (26,405,222)
Dividend payable (1,085,183)
Payable for capital stock
redeemed (206,597)
Accrued expenses (Note 4) (162,836)
-----------
OTHER ASSETS AND
LIABILITIES, NET (13,596,200)
-----------
NET ASSETS -- 100%
Applicable to 25,559,346 and 151,985 shares outstanding of
Institutional Class and Class A, respectively,
$.001 par value; 200,000,000 authorized shares (Note 9) $258,058,658
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($256,533,227/25,559,346) $10.04
------
------
NET ASSET VALUE AND REDEMPTION PRICE PER CLASS A SHARE
($1,525,431/151,985) $10.04
------
------
MAXIMUM PUBLIC OFFERING PRICE PER CLASS A SHARE (Note 6) $10.51
------
------
</TABLE>
+ See Note 2a to the Financial Statements.
++ Maturity dates for asset-backed securities, including collateralized mortgage
obligations, represent weighted average maturities of the underlying securities
at June 30, 1996.
MTN -- Medium Term Note.
IO -- Interest Only security.
PO -- Principal Only security.
See Notes to Financial Statements.
25
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COUPON PAR
RATE MATURITY (000) VALUE+
---- -------- ----- ------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS -- 17.5%
Federal National Mortgage
Association 7.00 % 01/15/11 $ 2,000 $ 1,973,125
Federal National Mortgage
Association 7.00 01/15/26 1,000 955,781
Government National
Mortgage Association 7.50 01/15/26 2,200 2,168,375
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $5,024,313) 5,097,281
-----------
MATURITY++
----------
ASSET-BACKED SECURITIES -- 13.4%
BankAmerica Manufactured
Housing Contract Series
1996-1, Class B1 7.875 10/10/26 500 500,000
Chase Manhattan Credit Card
Master Trust
Series 1996-3, Class A 7.04 02/15/04 500 504,375
Chemical Master Credit Card
Trust I Series 1995-2, Class
A 6.23 06/15/03 610 600,531
Federal National Mortgage
Association Pool 305555 9.00 01/01/25 530 553,448
Household Affinity Credit
Card Master Trust I Series
1994-2, Class A 7.00 12/15/99 500 505,627
New York City Tax Lien Series
1996 6.81 05/25/05 600 599,813
Standard Credit Card Master,
Series 1994-3, Class B 7.00 04/07/01 400 403,200
Standard Credit Card Master
Trust Series 1995-3, Class
A 7.85 02/07/02 250 259,575
-----------
TOTAL ASSET-BACKED
SECURITIES (Cost
$3,919,304) 3,926,569
-----------
Collateralized Mortgage
Obligations -- 8.1%
DLJ Mortgage Acceptance
Corporation Series
1996-CF1
Class A1A 7.28 05/12/05 497 499,878
Federal Home Loan Mortgage
Corporation -- Government
National Mortgage
Association FHR, Series 24,
Class K 6.25 09/25/22 550 515,109
Federal National Mortgage
Association Series
1992-216,
Class ZB 7.00 12/25/22 498 440,969
Federal National Mortgage
Association Series 1849,
Class DB 6.00 07/15/22 1,000 921,563
TOTAL COLLATERALIZED
-----------
MORTGAGE OBLIGATIONS
(Cost $2,364,435) 2,377,519
-----------
MATURITY
-------
CORPORATE BONDS -- 22.1%
FINANCE BONDS -- 6.0%
BBV International 7.00 12/01/25 200 179,750
BBV International 6.875 10/27/05 250 239,062
British Gas Finance
Euro-Bond 8.375 09/08/99 200 208,500
Lehman Brothers Holdings 7.125 09/15/03 200 196,750
Merrill Lynch 6.00 03/01/01 200 193,000
Smith Barney Holdings 6.50 10/15/02 200 194,250
State Bank of New South Wales 10.375 04/26/99 500 546,250
-----------
1,757,562
-----------
INDUSTRIAL BONDS -- 14.7%
Comdisco, Inc. 6.05 10/31/97 500 499,005
Dayton Hudson Co. 9.75 11/01/98 500 533,750
Ford Motor Co. 8.875 01/15/22 200 224,750
</TABLE>
See Notes to Financial Statements.
26
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COUPON PAR
RATE MATURITY (000) VALUE+
---- -------- ----- ------
<S> <C> <C> <C> <C>
CORPORATE BONDS (CONTINUED)
INDUSTRIAL BONDS (CONTINUED)
General Motors 7.10 % 03/15/06 $ 200 $ 196,500
GTE Corp. 8.85 03/01/98 500 519,420
Hertz Corp. 6.50 04/01/00 500 495,000
Honeywell, Inc. 7.35 05/15/00 200 204,250
International Business
Machines, Inc. 7.00 10/30/25 200 185,000
Lockheed Martin 7.65 05/01/16 200 199,000
Proctor & Gamble 9.625 01/14/01 400 443,500
Ryder System 5.77 04/21/98 400 396,000
Wal-Mart Stores 6.75 05/24/02 200 196,250
Xerox Corp. 5.75 07/21/00 200 193,028
-----------
4,285,453
-----------
UTILITY BONDS -- 1.4%
Bell South
Telecommunications 7.625 05/15/35 215 211,237
Korea Electric Power Yankee
Bond 7.40 04/01/16 200 194,250
-----------
405,487
-----------
TOTAL CORPORATE BONDS (Cost
$6,469,256) 6,448,502
-----------
U.S. TREASURY OBLIGATIONS -- 29.8%
U.S. Treasury Bond 8.75 08/15/20 980 1,173,040
U.S. Treasury Note 7.25 02/15/98 865 880,985
U.S. Treasury Note 6.375 05/15/99 1,000 1,002,360
U.S. Treasury Note 6.75 05/31/99 1,400 1,416,814
U.S. Treasury Note 6.25 08/31/00 1,850 1,837,790
U.S. Treasury Note 7.50 11/15/01 500 522,310
U.S. Treasury Note 5.875 11/15/05 2,000 1,885,000
-----------
7,545,259
-----------
TOTAL U.S. TREASURY
OBLIGATIONS (Cost
$8,700,424) 8,718,299
-----------
COMMERCIAL PAPER -- 22.9%
Commonwealth Edison Fuel Co. 5.57 07/29/96 1,000 995,668
ConAgra, Inc. 5.54 07/25/96 1,400 1,394,829
Enserch Corp. 5.55 07/10/96 1,000 998,613
ITT Destinations 5.60 07/10/96 1,000 998,600
PSE&G Co. 5.44 07/15/96 1,000 997,884
Texas Utilities Co. 5.52 07/15/96 1,300 1,297,209
-----------
TOTAL COMMERCIAL PAPER (Cost
$6,682,803) 6,682,803
-----------
</TABLE>
See Notes to Financial Statements.
27
HARRIS INSIGHT FUNDS
BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
TEMPORARY INVESTMENTS -- 2.6%
Goldman Sachs Institutional Liquid Assets Money Market
Portfolio (Cost $762,194) 762,194 $ 762,194
-----------
TOTAL INVESTMENTS -- 116.4%
(Cost $33,922,729) 34,013,167
-----------
OTHER ASSETS AND LIABILITIES -- (16.4%)
Receivable for investments sold 557,791
Interest receivable and other assets 212,623
Receivable for capital stock sold 30,000
Payable for investments purchased (5,570,347)
Accrued expenses (Note 4) (36,060)
-----------
OTHER ASSETS AND
LIABILITIES, NET (4,805,993)
NET ASSETS -- 100.0%
Applicable to 2,930,779 and 3,190 shares of beneficial interest
outstanding of Institutional Class
and Class A, respectively, $.001 par value (Note 9) $ 29,207,174
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($29,175,421/2,930,779) $9.95
------
------
NET ASSET VALUE AND REDEMPTION PRICE PER CLASS A SHARE
($31,753/3,190) $9.95
------
------
MAXIMUM PUBLIC OFFERING PRICE PER CLASS A SHARE (Note 6) $10.42
------
------
</TABLE>
- ----------
+ See Note 2a to the Financial Statements.
++ Maturity dates for asset-backed securities, including collaterialized
mortgage obligations, represent weighted average maturities of the underlying
securities at June 30, 1996.
See Notes to Financial Statements.
28
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS -- 95.2%
ARIZONA -- 11.4%
Maricopa County, Arizona, Unified
School District No. 48
Scottsdale
7.75% 07/01/02 $1,570 $ 1,801,574
Phoenix, Arizona, General
Obligation
5.90% 07/01/00 5,400 5,656,500
7.50% 07/01/08 5,000 5,975,000
Salt River Project Arizona
Agriculture and Improvement
District
6.50% 01/01/04 6,050 6,624,750
Scottsdale, Arizona, General
Obligation Series D
6.50% 07/01/99 1,025 1,085,219
Tucson, Arizona, Street and
Highway User Revenue Series A
7.00% 07/01/11 1,800 2,047,500
7.00% 07/01/12 2,000 2,300,000
-----------
TOTAL ARIZONA 25,490,543
-----------
CALIFORNIA -- 11.4%
California State General
Obligation
6.20% 09/01/02 1,750 1,876,875
6.75% 04/01/07 1,750 1,951,250
Metropolitan Water District South
California
6.40% 03/01/99 5,000 5,243,750
Redding, California, Joint Power
Finance Series A
6.25% 06/01/08 2,665 2,864,875
Riverside County, California,
Transportation Commission
Sales Tax
Revenue Series A
6.00% 06/01/06 2,000 2,130,000
6.00% 06/01/07 2,430 2,578,838
Riverside, California, Electric
Revenue
8.25% 10/01/01 2,510 2,851,987
San Diego, California, Public
Facilities Financing Authority
Sewer Revenue
6.00% 05/15/05 5,600 5,971,000
TOTAL CALIFORNIA 25,468,575
CONNECTICUT -- 0.9%
CONNECTICUT STATE GENERAL
OBLIGATION SERIES B
5.30% 09/15/07 2,000 1,995,000
DELAWARE -- 1.8%
DELAWARE STATE GENERAL OBLIGATION
6.125% 04/01/01 3,700 3,926,625
FLORIDA -- 0.7%
GAINSVILLE, FLORIDA, UTILITIES
SYSTEM REVENUE SERIES A
5.75% 10/01/07 1,500 1,563,750
-----------
</TABLE>
See Notes to Financial Statements.
29
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
GEORGIA -- 4.6%
Georgia Municipal Electric
Authority Power Revenue Series
CC
4.60% 01/01/03 $4,000 $ 3,865,000
Georgia State General Obligation
Series B
6.30% 03/01/08 1,500 1,638,750
Georgia State General Obligation
Series D
5.80% 11/01/02 1,000 1,063,750
Georgia State General Obligation
Series F
6.50% 12/01/06 3,370 3,765,975
-----------
TOTAL GEORGIA 10,333,475
-----------
HAWAII -- 1.5%
Honolulu, Hawaii, City & County
Reference Series A
7.35% 07/01/05 3,000 3,483,750
-----------
ILLINOIS -- 10.0%
Chicago, Illinois, Metropolitan
Water Capital Improvement Bonds
6.60% 01/01/02 2,600 2,814,500
7.00% 01/01/08 1,000 1,138,750
Chicago, Illinois, Metropolitan
Water Reclamation
District-Greater Chicago
6.30% 12/01/09 2,000 2,112,500
Chicago, Illinois, Motor Fuel Tax
Revenue Bonds
6.50% 01/01/01 2,000 2,135,000
Chicago, Illinois, Project Series
1993
5.30% 01/01/07 1,000 995,000
Cook County, Illinois, General
Obligation
7.00% 11/01/00 2,000 2,210,000
Du Page County, Illinois, First
Preservation District
6.00% 11/01/03 2,000 2,127,500
Evanston, Illinois, General
Obligation
5.00% 12/01/05 1,000 991,250
Illinois Development Financial
Authority Revenue School
District Rockford School 205
6.55% 02/01/09 1,000 1,082,500
Illinois State Government General
Obligation Unlimited Bond
5.50% 08/01/01 3,500 3,600,624
Metropolitan Pier & Exposition
Authority
6.25% 06/01/05 1,000 1,070,000
Regional Transportation
Authority Illinois Series C
7.75% 06/01/05 1,000 1,173,750
University of Illinois Revenue
Bonds
5.80% 10/01/97 1,000 1,022,500
-----------
TOTAL ILLINOIS 22,473,874
-----------
</TABLE>
See Notes to Financial Statements.
30
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
INDIANA -- 2.2%
Indiana Municipal Power Agency
Power Supply System Revenue
Reference Series B
6.00% 01/01/11 $3,000 $ 3,097,500
Indiana State Office Building
Commission Correctional
Facilities Revenue Service B
Womens Prison
5.20% 07/01/08 1,835 1,784,538
-----------
TOTAL INDIANA 4,882,038
-----------
KANSAS -- 1.9%
Kansas State Department of
Transportation Highway Revenue
Bonds
6.00% 03/01/03 1,250 1,342,188
7.25% 03/01/04 2,555 2,951,025
-----------
TOTAL KANSAS 4,293,213
-----------
MARYLAND -- 3.0%
Maryland State Department of
Transportation
4.20% 06/15/03 2,600 2,460,250
Maryland State General Obligation
6.50% 03/01/98 3,000 3,112,500
Montgomery County, Maryland,
General Obligation
8.60% 05/01/03 1,000 1,215,000
-----------
TOTAL MARYLAND 6,787,750
-----------
MASSACHUSETTS -- 0.7%
Massachusetts State Health &
Education Facilities Authority
Revenue Bond
7.125% 10/01/10 1,500 1,642,500
-----------
MICHIGAN -- 5.6%
Detroit, Michigan, Water System
5.20% 07/01/08 1,000 981,250
5.30% 07/01/09 1,625 1,594,530
Oakland County, Michigan,
Economic Development
6.375% 11/01/04 8,200 8,886,750
Riverview, Michigan, Community
School District General
Obligation
6.55% 05/01/02 1,000 1,096,250
-----------
TOTAL MICHIGAN 12,558,780
-----------
NEBRASKA -- 0.4%
Omaha Public Power District
5.40% 02/01/08 1,000 1,006,250
-----------
NEW HAMPSHIRE -- 0.4%
New Hampshire Municipal Bond
Series F
4.90% 07/15/06 1,020 990,675
-----------
</TABLE>
See Notes to Financial Statements.
31
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
NEW JERSEY -- 3.4%
New Jersey State Highway Garden
State Parkway General Revenue
6.20% 01/01/10 $5,000 $ 5,350,000
Union County, New Jersey, General
Obligation
4.40% 09/01/04 2,300 2,210,875
-----------
TOTAL NEW JERSEY 7,560,875
-----------
NEW MEXICO -- 0.5%
Albuquerque, New Mexico, Joint
Water and Sewer System
6.00% 07/01/05 1,000 1,071,250
-----------
NEW YORK -- 3.7%
New York State General Obligation
Series B
6.375% 08/15/00 3,750 3,979,688
New York State Housing Finance
Agency Special Health
Facilities
New York City-Series A
6.70% 05/01/99 4,000 4,240,000
-----------
TOTAL NEW YORK 8,219,688
-----------
OHIO -- 4.5%
Hamilton County, Ohio, Sewer
System
5.45% 12/01/07 1,500 1,515,000
Warren Ohio Hospital Revenue Bond
Series B
7.30% 11/15/03 7,290 8,483,738
-----------
TOTAL OHIO 9,998,738
-----------
PENNSYLVANIA -- 1.0%
Washington County Authority Lease
Revenue Municipal Facilities --
Pool Capital C Subseries C-1C
7.45% 06/15/00 2,000 2,245,000
-----------
SOUTH CAROLINA -- 1.3%
South Carolina State Capital
Improvement Series V
6.50% 02/01/00 2,635 2,806,275
-----------
TENNESSEE -- 2.2%
Tennessee State General
Obligation Series B
5.50% 05/01/04 4,800 4,986,000
-----------
TEXAS -- 8.8%
Arlington, Texas, Reference
Permanent Improvements Series
A
6.10% 08/15/02 1,000 1,065,000
Bexar County, Texas, Detention
Facilities
7.25% 06/15/04 1,000 1,143,750
Fort Worth, Texas, Water Revenue
Bond
5.20% 02/15/09 2,000 1,937,500
</TABLE>
See Notes to Financial Statements.
32
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
TEXAS (CONTINUED)
Harris County, Texas, General
Obligation
9.00% 06/01/02 $1,250 $ 1,506,250
Katy, Texas, Independent School
District Series A
7.90% 08/15/06 875 1,068,593
Plano, Texas, Independent School
District
5.90% 02/15/10 1,000 1,022,500
South San Antonio, Texas,
Independent School District
6.60% 12/01/02 2,500 2,725,000
Spring Branch, Texas, Independent
School District
6.50% 02/01/02 1,750 1,892,188
Texas Municipal Power Agency
Series 1986A 1,2,3
5.25% 09/01/07 1,000 998,750
University of Texas Revenue
Financing System Series B
6.00% 08/15/06 3,540 3,792,225
Westcentral Texas Municipal Water
District Revenue Water
Transmission Line Contract
6.75% 11/01/03 2,325 2,580,750
-----------
TOTAL TEXAS 19,732,506
-----------
UTAH -- 4.8%
Jordan, Utah, School District
General Obligation
6.15% 06/15/06 1,165 1,245,094
Utah State General Obligation
6.00% 07/01/01 5,000 5,293,750
Utah State General Obligation
Series 1991
5.50% 07/01/98 4,100 4,212,750
-----------
TOTAL UTAH 10,751,594
-----------
WASHINGTON -- 3.3%
Washington State General
Obligation Unlimited Bond
4.80% 07/01/98 3,460 3,490,275
Washington State Refunding
5.60% 09/01/04 2,750 2,856,563
Washington State Series 1993A
5.30% 10/01/01 1,000 1,026,250
-----------
TOTAL WASHINGTON 7,373,088
-----------
WISCONSIN -- 5.2%
Appleton, Wisconsin, Area School
District General Obligation
5.00% 04/01/09 2,000 1,882,500
Milwaukee, Wisconsin, General
Obligation
6.00% 02/01/09 1,380 1,449,000
Milwaukee, Wisconsin,
Metropolitan Sewer District
Series A
6.125% 10/01/03 1,000 1,076,250
</TABLE>
See Notes to Financial Statements.
33
HARRIS INSIGHT FUNDS
INTERMEDIATE TAX-EXEMPT FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
WISCONSIN (CONTINUED)
Wisconsin State General
Obligation Series C
6.25% 05/01/03 $ 1,585 $ 1,703,875
Wisconsin State Transportation
Revenue
6.25% 07/01/02 3,135 3,354,450
Wisconsin State Transportation
Revenue Series A
7.50% 07/01/04 2,000 2,292,500
-----------
TOTAL WISCONSIN 11,758,575
-----------
TOTAL MUNICIPAL BONDS (Cost
$212,795,240) 213,400,387
-----------
SHARES
-------
TEMPORARY INVESTMENTS -- 3.4%
Federated Tax Free Obligation Fund 3,691,669 3,691,669
Goldman Sachs Financial Square
Tax-Exempt Money Market
Portfolio 3,887,350 3,887,350
-----------
TOTAL TEMPORARY INVESTMENTS (Cost
$7,579,019) 7,579,019
-----------
TOTAL INVESTMENTS -- 98.6% (Cost
$220,374,259) 220,979,406
-----------
OTHER ASSETS AND LIABILITIES -- 1.4%
Interest receivable and other
assets 3,377,182
Receivable for investments sold 1,028,347
Receivable for capital stock 183,000
Payable for investments purchased (1,048,440)
Payable for capital stock redeemed (92,726)
Accrued expenses (Note 4) (198,070)
-----------
OTHER ASSETS AND LIABILITIES, NET 3,249,293
-----------
NET ASSETS -- 100.0%
Applicable to 21,451,418 shares of beneficial interest outstanding
of Institutional Class $.001 par value (Note 9)* $224,228,699
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($224,228,699/21,451,418) $10.45
------
------
</TABLE>
- ----------
+ See Note 2a to the Financial Statements.
* No shares, except for the initial shares, of Class A are outstanding at
06/30/96.
See Notes to Financial Statements.
34
HARRIS INSIGHT FUNDS
TAX-EXEMPT FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS -- 96.1%
ARIZONA -- 5.1%
Arizona State Transportation
Board Highway Revenue Series B
8.00% 07/01/06 $4,000 $ 4,875,000
Phoenix, Arizona, Civic
Corporation Water System
Revenue
5.625% 07/01/09 3,345 3,361,725
-----------
TOTAL ARIZONA 8,236,725
-----------
CALIFORNIA -- 9.3%
California State, General
Obligation
5.90% 03/01/25 1,000 998,750
East Bay, California, Municipal
Utilities District, Water
System Revenue
5.00% 06/01/14 3,500 3,185,000
Los Angeles, California, Waste
Water System Revenue Series A
4.75% 02/01/09 4,000 3,675,000
Northern California Power Agency,
Public Power Revenue, Series B-1
8.00% 07/01/98 1,050 1,127,438
Pasadena, California, Water
Revenue
5.00% 07/01/18 3,000 2,621,250
Riverside, California, Electric
Revenue
8.25% 10/01/01 3,000 3,408,750
-----------
TOTAL CALIFORNIA 15,016,188
-----------
COLORADO -- 1.3%
Aurora, Colorado, Water General
Obligation
4.60% 11/01/97 2,000 2,017,500
-----------
FLORIDA -- 7.9%
Broward County, Florida General
Obligation
12.50% 01/01/06 4,000 6,160,000
Florida State, Broward County
Expressway Authority
9.875% 07/01/09 4,000 5,635,000
Orlando, Florida Utilities
Commission, Water and Electric
6.00% 10/01/10 1,000 1,048,750
-----------
TOTAL FLORIDA 12,843,750
-----------
GEORGIA -- 2.5%
Atlanta Georgia Airport Revenue
6.00% 01/01/07 2,000 2,102,500
Georgia State, General Obligation
Series E
4.20% 07/01/99 2,000 1,987,500
-----------
TOTAL GEORGIA 4,090,000
-----------
</TABLE>
See Notes to Financial Statements.
35
HARRIS INSIGHT FUNDS
TAX-EXEMPT FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
HAWAII -- 3.7%
Hawaii State, Series CD
5.00% 02/01/03 $1,825 $ 1,827,281
Honolulu, Hawaii, City & County,
General Obligation Series A
7.35% 07/01/08 3,500 4,138,750
-----------
TOTAL HAWAII 5,966,031
-----------
ILLINOIS -- 11.3%
Chicago, Illinois, Water Revenue
6.50% 11/01/15 3,475 3,705,219
Illinois Development Finance
Authority Revenue
School District PG-Rockford
School 205
6.55% 02/01/09 1,000 1,082,500
6.65% 02/01/11 4,000 4,350,000
Illinois Development Finance
Authority Revenue,
School District Number U46
9.00% 01/01/07 4,250 5,461,250
Illinois State Sales Tax Revenue
Series V
6.375% 06/15/20 1,000 1,023,750
Metropolitan Pier & Exposition
Authority
Illinois Dedicated State Tax
Revenue
6.25% 06/01/04 1,025 1,098,031
6.50% 06/01/06 1,000 1,095,000
Springfield, Illinois, General
Obligation
6.50% 12/01/97 500 518,125
-----------
TOTAL ILLINOIS 18,333,875
-----------
INDIANA -- 4.1%
Indiana Municipal Power Agency
Supply System Revenue
Series B
6.00% 01/01/11 6,455 6,664,788
-----------
MARYLAND -- 4.9%
Maryland State Department
Transportation Construction
Revenue
4.125% 06/15/02 3,480 3,340,800
Maryland State Health and Higher
Education Facility
Authority Doctors Community
Hospital
8.75% 07/01/00 3,000 3,487,500
Maryland Transportation
Authority
6.00% 07/01/97 1,000 1,015,690
-----------
TOTAL MARYLAND 7,843,990
-----------
MASSACHUSETTS -- 0.6%
Massachusetts State
Consolidation Loan Series B
6.40% 07/01/96 1,000 1,000,190
-----------
</TABLE>
See Notes to Financial Statements.
36
HARRIS INSIGHT FUNDS
TAX-EXEMPT FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
MUNICIPAL BONDS (CONTINUED)
MICHIGAN -- 6.3%
Detroit, Michigan, City School
District, General Obligation
4.65% 05/01/01 $1,000 $ 981,250
Detroit, Michigan, Water Supply
System Revenue
6.50% 07/01/15 1,000 1,101,250
Michigan State Trunk Line Revenue
Series A
5.25% 11/15/04 3,035 3,057,763
Oakland County, Michigan,
Economic Development
Corporation,
Limited Obligation Revenue
6.90% 11/01/14 2,725 3,014,531
Oakland University, Michigan,
Revenue
5.60% 05/15/10 2,015 2,015,000
-----------
TOTAL MICHIGAN 10,169,794
-----------
MINNESOTA -- 1.5%
Metropolitan Council
Minneapolis-St. Paul
Metropolitan Area
5.15% 09/01/08 2,425 2,376,500
-----------
NEW JERSEY -- 3.1%
New Jersey State General
Obligation
6.25% 09/15/00 2,750 2,925,313
New Jersey Highway Authority
6.20% 01/01/10 2,000 2,140,000
-----------
TOTAL NEW JERSEY 5,065,313
-----------
NEW YORK -- 6.4%
New York State General Obligation
Series B
6.375% 08/15/00 6,000 6,367,500
Port Authority of New York and New
Jersey Consolidated Series
One Hundred Revenue
5.625% 10/15/17 4,000 3,900,000
-----------
TOTAL NEW YORK 10,267,500
-----------
OHIO -- 3.7%
Centerville, Ohio, General
Obligation
5.625% 12/01/26 1,930 1,855,213
Hamilton County, Ohio, Sewer
System Series A
6.00% 12/01/03 1,000 1,066,250
Ohio State Water Development
Authority Revenue
5.00% 06/01/98 3,000 3,045,000
-----------
TOTAL OHIO 5,966,463
-----------
</TABLE>
See Notes to Financial Statements.
37
HARRIS INSIGHT FUNDS
TAX-EXEMPT FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
Municipal Bonds - (Continued)
OKLAHOMA -- 2.1%
South Oklahoma City, Oklahoma
Hospital Treasury Revenue
9.75% 02/01/10 $1,300 $1,764,750
Tulsa, Oklahoma, Tulsa Industrial
Authority Revenue
University of Tulsa Series A
6.00% 10/01/16 1,500 1,550,625
-----------
TOTAL OKLAHOMA 3,315,375
-----------
SOUTH CAROLINA -- 2.1%
South Carolina State Public
Service Authority Revenue
Series B
5.875% 01/01/23 3,450 3,432,750
-----------
TENNESSEE -- 2.6%
Rutherford County, Tennessee,
General Obligation Series A
6.25% 05/01/05 2,000 2,177,500
Shelby County, Tennessee, School
District, Series A
5.6250% 06/01/07 2,000 2,057,500
-----------
TOTAL TENNESSEE 4,235,000
-----------
TEXAS -- 7.4%
Alief, Texas, Independent School
District General Obligation
8.00% 02/15/99 1,000 1,090,000
Houston, Texas, Water and Sewer
Revenue
6.20% 12/01/23 4,750 4,850,938
Texas Municipal Power Agency
Revenue
5.10% 09/01/03 6,000 6,037,500
-----------
TOTAL TEXAS 11,978,438
-----------
UTAH -- 1.1%
Utah State General Obligation
4.40% 07/01/99 1,840 1,840,000
-----------
VIRGINIA -- 3.8%
Norfolk, Virginia, Water Revenue
5.875% 11/01/15 2,400 2,409,000
Richmond, Virginia, General
Obligation Series B
6.50% 07/15/02 2,160 2,332,800
Southeastern Public Service
Authority Virginia Senior
Regular Waste System Revenue
6.90% 07/01/99 1,300 1,413,750
-----------
TOTAL VIRGINIA 6,155,550
-----------
WASHINGTON -- 0.7%
Washington State Public Power
Supply
7.50% 07/01/00 1,000 1,117,500
-----------
</TABLE>
See Notes to Financial Statements.
38
HARRIS INSIGHT FUNDS
TAX-EXEMPT FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR
MATURITY (000) VALUE+
-------- ----- ------
<S> <C> <C> <C>
Municipal Bonds - (Continued)
WISCONSIN -- 4.6%
Milwaukee, Wisconsin,
Metropolitan Sewage District
Series 1992A
6.125% 10/01/03 $1,335 $ 1,436,791
Milwaukee, Wisconsin,
Metropolitan Sewage District,
General Obligation Series A
6.70% 10/01/02 1,000 1,095,000
Wisconsin State General
Obligation, Series 3
5.25% 11/01/10 5,000 4,812,500
-----------
TOTAL WISCONSIN 7,344,291
-----------
TOTAL MUNICIPAL BONDS (Cost $152,581,263) 155,277,511
-----------
SHARES
-------
TEMPORARY INVESTMENTS -- 6.9%
Federated Tax-Free Obligation Fund 7,527,548 7,527,548
Goldman Sachs Financial Square Tax-Exempt Money
Market Portfolio 3,655,146 3,655,146
-----------
TOTAL TEMPORARY INVESTMENTS (Cost $11,182,694) 11,182,694
-----------
TOTAL INVESTMENTS -- 103.0% (Cost $163,763,957) 166,460,205
-----------
OTHER ASSETS AND LIABILITIES -- (3.0%)
Interest receivable and other assets 2,665,441
Receivable for capital stock 159,000
Payable for investments purchased (7,462,113)
Accrued expenses (Note 4) (150,406)
Payable for capital stock redeemed (14,300)
-----------
OTHER ASSETS AND LIABILITIES, NET (4,802,378)
-----------
NET ASSETS -- 100.0%
Applicable to 15,784,456 shares of beneficial interest outstanding
of Institutional Class $.001 par value
(Note 9)* $161,657,827
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE ($161,657,827/15,784,456) $10.24
------
------
</TABLE>
- ----------
+ See Note 2a to the Financial Statements.
* At 06/30/96 Class A shares had not yet commenced operations.
See Notes to Financial Statements.
39
HARRIS INSIGHT FUNDS
CONVERTIBLE FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK -- 2.8%
Electronics
Electronic Data Systems Corp. (Cost $21,574) 563 $ 30,261
-----------
CONVERTIBLE PREFERRED STOCK -- 29.5%
BANKS AND SAVINGS AND LOANS -- 4.8%
Ahmanson, H.F. & Co. 230 13,656
First Chicago Corp. 500 33,312
Sovereign Bancorp. 100 5,675
-----------
52,643
-----------
BUILDING AND CONSTRUCTION -- 1.6%
Owens Corning Capital 300 17,063
Communication Services -- 0.3%
Merrill Lynch "Cox" (STRYPES) 150 3,319
Financial Services -- 2.3%
Merry Land and Investment 100 2,675
Penn Corp. Financial 300 22,238
-----------
24,913
-----------
HEALTH CARE -- 2.5%
F.H.P. International Corp. 1,100 27,638
-----------
INDUSTRIAL -- 3.7%
Corning Glass Works 200 11,425
GATX Corp. 500 29,125
-----------
40,550
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
INSURANCE -- 1.5%
American General 200 $ 10,500
St. Paul Capital 100 5,250
-----------
15,750
-----------
LEISURE RELATED -- 0.5%
Tyco Toys 1,000 5,625
-----------
MEDIA -- 0.3%
Triathlon Broadcasting Co. 300 2,887
-----------
OPERATORS OF NON-RESIDENTIAL
BUILDING -- 1.7%
Rouse Co. 325 18,850
-----------
OIL-DOMESTIC -- 3.7%
Diamond Shamrock, Inc. 200 12,200
Unocal Corp. 500 28,375
-----------
40,575
-----------
PAPER-FOREST PRODUCTS -- 3.5%
James River Corp. 800 37,500
-----------
RETAIL -- 2.2%
Ann Taylor 400 24,000
-----------
UTILITIES -- ELECTRIC -- 0.9%
Citizens Utilities Trust 200 9,650
-----------
TOTAL CONVERTIBLE PREFERRED STOCK (Cost
$286,350) 320,963
-----------
</TABLE>
See Notes to Financial Statements.
40
HARRIS INSIGHT FUNDS
CONVERTIBLE FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COUPON PAR
RATE MATURITY (000) VALUE+
---- -------- ----- ------
<S> <C> <C> <C> <C>
CONVERTIBLE CORPORATE BONDS -- 62.8%
ADVERTISING -- 3.1%
Omnicom Group, Inc. 4.50 % 09/01/00 $ 20 $ 33,825
-----------
AIRLINE -- 3.1%
Alaska Air Group, Inc. 6.875 06/15/14 35 34,125
-----------
APPAREL AND TEXTILES -- 3.7%
Guilford Mills, Inc. 6.00 09/15/12 40 39,800
-----------
AUTO PARTS -- 2.5%
Arvin Industries, Inc. 7.50 09/30/14 27 27,439
-----------
BUILDING AND CONSTRUCTION -- 3.9%
Lafarge Corp. 7.00 07/01/13 40 42,550
-----------
ELECTRONICS -- 2.5%
Altera Corp. 5.75 06/15/02 15 15,037
Integrated Device
Technology 5.50 06/01/02 15 11,906
-----------
26,943
-----------
FINANCIAL SERVICES -- 1.4%
Pioneer Financial Services 6.50 04/01/03 15 15,413
-----------
FOOD SERVICES AND LODGING -- 2.5%
Hilton Hotels 5.00 05/15/06 25 26,656
-----------
HEALTHCARE -- 1.1%
Healthsource, Inc. 5.00 03/01/03 15 11,944
-----------
INDUSTRIAL -- 9.5%
Trimas Corp. 5.00 08/01/03 20 22,675
Trinova Corp. 6.00 10/15/02 40 38,000
U.S. Filter Corp. 5.00 10/15/00 25 43,094
-----------
103,769
-----------
METALS AND MINING -- 3.4%
Inco LTD. 7.75 03/15/16 35 37,188
-----------
OFFICE EQUIPMENT -- SERVICES -- 5.0%
EMC Corp. 4.25 01/01/01 15 16,350
Quantum Corp. 6.375 04/01/02 20 20,350
Seagate Technology 5.00 11/01/03 10 17,288
-----------
53,988
-----------
OIL-DOMESTIC -- 6.9%
Ashland Oil, Inc. 6.75 07/01/14 25 25,063
Pennzoil Co. 4.75 10/01/03 20 21,550
USX Corp. 7.00 06/15/17 30 28,425
-----------
75,038
-----------
</TABLE>
See Notes to Financial Statements.
41
HARRIS INSIGHT FUNDS
CONVERTIBLE FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COUPON PAR
RATE/YIELD MATURITY (000) VALUE+
---------- -------- ----- ------
<S> <C> <C> <C> <C>
Convertible Corporate Bonds
(Continued)
PHARMACEUTICALS -- 0.9%
Alza Corporation 5.00% 05/01/06 $ 10 $ 9,787
-----------
PROFESSIONAL SERVICES -- 1.9%
Career Horizons, Inc. 7.00 11/01/02 10 20,850
-----------
RETAIL -- 10.0%
Food Lion, Inc. 5.00 06/01/03 25 27,219
Pier One Imports, Inc. 6.875 04/01/02 40 50,000
Price Co. 5.50 02/28/12 30 32,025
-----------
109,244
-----------
TRANSPORTATION SERVICES -- 1.4%
Airborne Freight Corp. 6.75 08/15/01 15 14,963
-----------
TOTAL CONVERTIBLE CORPORATE
BONDS (Cost $597,779) 683,522
-----------
U.S. TREASURY OBLIGATIONS -- 1.8%
U.S. Treasury Bills (Cost
$19,934) 4.97 07/25/96 20 19,934
-----------
SHARES
-------
TEMPORARY INVESTMENTS -- 2.7%
Goldman Sachs Institutional Liquid Assets Government
Portfolio 14,201 14,201
Goldman Sachs Institutional Liquid Assets Money Market
Portfolio 15,202 15,202
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $29,403) 29,403
-----------
TOTAL INVESTMENTS -- 99.6%
(Cost $955,040) 1,084,083
-----------
OTHER ASSETS AND LIABILITIES -- 0.4%
Interest receivable and other assets 14,609
Accrued expenses (Note 4) (9,922)
-----------
OTHER ASSETS AND
LIABILITIES, NET 4,687
-----------
NET ASSETS -- 100.0%
Applicable to 108,663 shares outstanding, $.001 par value;
100,000,000 shares authorized (Note 9) $1,088,770
------------
------------
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
($1,088,770/108,663) $10.02
------
------
MAXIMUM PUBLIC OFFERING PRICE PER SHARE (Note 6) $10.49
------
------
</TABLE>
- ----------
+ See Note 2a to the Financial Statements.
See Notes to Financial Statements.
42
HARRIS INSIGHT FUNDS
EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
Common Stock - 99.8%
ADVERTISING -- 2.5%
Omnicom Group, Inc. 308,700 $ 14,354,550
Aerospace -- 5.7%
Lockheed Martin Corp. 186,500 15,666,000
Raytheon Co. 73,200 3,778,950
Textron, Inc. 162,800 13,003,650
-----------
32,448,600
-----------
AIRLINE -- 3.9%
AMR Corp.* 126,400 11,502,400
British Airways PLC ADR 127,700 10,950,275
-----------
22,452,675
-----------
APPAREL AND TEXTILES -- 1.1%
Liz Claiborne, Inc. 188,000 6,509,500
-----------
AUTO-TRUCKS -- 5.1%
Chrysler Corp. 262,000 16,244,000
Ford Motor Co. 394,800 12,781,650
-----------
29,025,650
-----------
BANKS -- 7.3%
Bank of Boston Corp. 164,100 8,122,950
Chase Manhattan Corp. 241,180 17,033,337
Citicorp 122,700 10,138,087
Washington Mutual, Inc. 199,000 5,945,125
-----------
41,239,499
-----------
CHEMICALS -- 4.3%
Dow Chemical Co. 131,600 10,001,600
Union Carbide Corp. 361,200 14,357,700
-----------
24,359,300
-----------
COAL-GAS-PIPELINES -- 3.2%
Coastal Corp. 437,300 18,257,275
-----------
CONSUMER SERVICES -- 0.8%
Dial Corp. 154,800 4,431,150
-----------
ELECTRONICS -- 1.9%
Avnet, Inc. 155,300 6,542,013
Harris Corp. 74,475 4,542,975
-----------
11,084,988
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
FINANCIAL SERVICES -- 1.5%
Bear Stearns Companies, Inc. 120,600 $ 2,849,175
Travelers Group, Inc. 126,150 5,755,594
-----------
8,604,769
-----------
FOODS -- 3.7%
Dole Food, Inc. 256,500 11,029,500
IBP, Inc. 236,350 6,529,169
Smithfield Foods, Inc.* 128,900 3,222,500
-----------
20,781,169
-----------
HOSPITAL SUPPLIES AND SERVICES -- 3.5%
Baxter International, Inc. 131,800 6,227,550
Becton Dickinson & Co. 79,300 6,363,825
Tenet Healthcare Corp.* 338,500 7,235,438
-----------
19,826,813
-----------
INSURANCE -- 5.3%
Allstate Corp. 50,954 2,324,776
CIGNA Corp. 82,800 9,760,050
Conseco, Inc. 153,900 6,156,000
Reliastar Financial Corp. 97,619 4,209,819
Transamerica Corp. 91,600 7,419,600
-----------
29,870,245
-----------
MACHINERY -- 0.8%
Deere & Co. 110,700 4,428,000
-----------
OFFICE EQUIPMENT -- SERVICES -- 5.1%
Digital Equipment Corp.* 112,000 5,040,000
International Business
Machines Corp. 158,400 15,681,600
Sun Microsystems, Inc.* 142,600 8,377,750
-----------
29,099,350
-----------
OIL-DOMESTIC -- 1.6%
Phillips Petroleum Co. 210,700 8,823,062
-----------
OIL-INTERNATIONAL -- 6.6%
Exxon Corp. 112,100 9,738,688
Mobil Corp. 201,350 22,576,369
Texaco, Inc. 61,600 5,166,700
-----------
37,481,757
-----------
</TABLE>
See Notes to Financial Statements.
43
HARRIS INSIGHT FUNDS
EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
Common Stock (Continued)
PHARMACEUTICALS -- 5.8%
Bergen Brunswig Corp. 135,458 $ 3,758,960
Bristol-Myers Squibb Co. 195,700 17,613,000
Rhone Poulenc Rorer, Inc. 169,600 11,384,400
-----------
32,756,360
-----------
PROFESSIONAL SERVICES -- 0.6%
Olsten Corp., Class B 108,750 3,194,531
-----------
RETAIL-FOOD -- 4.1%
Safeway Inc. Co. 708,000 23,364,000
-----------
RETAIL-GENERAL -- 5.3%
Sears Roebuck & Co. 195,300 9,496,462
TJX Companies, Inc.* 443,300 14,961,375
Waban, Inc. 239,700 5,722,837
-----------
30,180,674
-----------
TECHNOLOGY -- 0.9%
Western Digital Corp. 185,800 4,854,025
-----------
TOBACCO -- 4.5%
Loews Corp. 84,800 6,688,600
Philip Morris Companies, Inc. 180,700 18,792,800
-----------
25,481,400
-----------
UTILITIES -- ELECTRIC -- 5.5%
General Public Utilities Corp. 281,100 9,908,775
New York State Electric & Gas
Corp. 539,000 13,138,125
Unicom Corp. 303,900 8,471,213
-----------
31,518,113
-----------
UTILITIES -- TELEPHONE -- 9.2%
AT&T Corp. 134,600 8,345,200
MCI Communications Corp. 511,200 13,035,600
Southern New England
Telecommunications Corp. 266,625 11,198,250
Sprint Corp. 474,550 19,931,100
-----------
52,510,150
-----------
TOTAL COMMON STOCK
(Cost $461,197,055) 566,937,605
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
TEMPORARY INVESTMENTS -- 0.9%
Goldman Sachs Institutional
Liquid Assets Government
Portfolio 2,511,030 $ 2,511,030
Goldman Sachs Institutional
Liquid Assets Money Market
Portfolio 2,509,646 2,509,646
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $5,020,676) 5,020,676
-----------
TOTAL INVESTMENTS -- 100.7%
(Cost $466,217,731) 571,958,281
-----------
OTHER ASSETS AND LIABILITIES -- (0.7%)
Receivable for investments sold 751,425
Dividends receivable and other assets 1,401,282
Receivable for capital stock sold 376,714
Payable for investments purchased (5,673,417)
Payable for capital stock redeemed (235,937)
Accrued expenses (Note 4) (606,695)
-----------
OTHER ASSETS AND LIABILITIES, NET (3,986,628)
-----------
NET ASSETS -- 100.0%
Applicable to 37,238,627 and 217,873 shares outstanding
of Institutional Class and Class A, respectively, $.001
par value; 200,000,000 authorized shares (Note 9) $567,971,653
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
INSTITUTIONAL CLASS SHARE
($564,668,571/37,238,627) $15.16
------
------
NET ASSET VALUE AND REDEMPTION PRICE PER CLASS A SHARE
($3,303,082/217,873) $15.16
------
------
MAXIMUM PUBLIC OFFERING PRICE PER CLASS A SHARE (Note 6) $15.87
------
------
</TABLE>
- ----------
+ See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements.
44
HARRIS INSIGHT FUNDS
EQUITY INCOME FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
Common Stock 96.15%
BASIC MATERIALS -- 6.1%
Dow Chemical Co. 7,700 $ 585,200
Olin Corp. 5,200 464,100
Union Carbide 11,200 445,200
USX-US Steel Group, Inc. 10,500 297,938
-----------
1,792,438
-----------
CAPITAL GOODS -- 8.5%
Deere & Co. 7,800 312,000
General Electric Co. 12,900 1,115,850
Honeywell, Inc. 2,800 152,600
Textron, Inc. 1,300 103,836
United Technlogies Corp. 1,200 828,000
-----------
2,512,286
-----------
CONSUMER CYCLICALS -- 4.6%
Chrysler Corp. 5,900 365,800
Ford Motor Co. 20,100 650,738
Goodyear Tire and Rubber Co. 6,900 332,925
-----------
1,349,463
-----------
CONSUMER STAPLES -- 5.2%
Philip Morris Companies, Inc. 12,500 1,300,000
Sara Lee Corp. 7,700 249,288
-----------
1,549,288
-----------
ENERGY -- 8.9%
Exxon Corp. 13,300 1,155,438
Mobil Corp. 5,000 560,625
Phillips Petroleum 17,200 720,250
Sun Co., Inc. 6,155 186,958
-----------
2,623,271
-----------
ENERGY SERVICES -- 0.6%
Ogden Corp. 9,900 179,437
-----------
FINANCIAL SERVICES -- 15.2%
Banc One Corp. 14,630 497,420
Bankers Trust New York Corp. 5,000 369,375
Chase Manhattan Corp. 7,800 550,875
Cigna Corp. 2,900 341,837
Conseco, Inc. 9,300 372,000
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
FINANCIAL SERVICES (CONTINUED)
First Chicago NBD Corp. 16,471 $ 644,428
Keycorp 13,500 523,125
Merrill Lynch 9,300 605,662
Student Loan Marketing
Association 8,200 606,800
-----------
4,511,522
-----------
HEALTH CARE -- 12.1%
American Home Products Corp. 10,000 601,250
Baxter International, Inc. 13,000 614,250
Bristol-Myers Squibb Co. 11,900 1,071,000
FHP International Corp. 11,000 276,375
Lilly Eli & Co. 13,400 871,000
Tenet Healthcare Corp.* 6,500 138,937
-----------
3,572,812
-----------
MERCHANDISE/DISTRIBUTION -- 5.9%
Dayton Hudson 2,400 247,500
Penney, J. C. Co. 11,600 609,000
Safeway, Inc. 2,500 82,500
Sears Roebuck & Co. 10,200 495,975
Waban, Inc. 13,000 310,375
-----------
1,745,350
-----------
TECHNOLOGY -- 7.4%
Cisco Systems* 2,000 113,250
Digital Equipment Corp.* 5,200 234,000
Harris Corp. 4,100 250,100
Intel Corp. 4,300 315,513
International Business Machines Corp. 3,300 326,700
Microsoft Corp.* 800 96,000
Seagate Technologies 8,900 400,500
Sun Microsystems* 4,300 252,625
Xerox Corp. 3,900 208,650
-----------
2,197,338
-----------
TRANSPORTATION -- 3.4%
AMR Corp* 7,500 682,500
British Airways ADR 3,700 317,275
-----------
999,775
-----------
</TABLE>
See Notes to Financial Statements.
45
HARRIS INSIGHT FUNDS
EQUITY INCOME FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK (CONTINUED)
UTILITIES -- 18.2%
Ameritech Corp. 2,400 $ 142,500
Bell Atlantic Corp. 4,200 267,750
GTE Corp. 25,100 1,123,225
Nicor, Inc. 3,000 85,125
NYNEX Corp. 21,600 1,026,000
Pacific Enterprises 27,400 811,725
Public Service Co. Colorado 15,400 565,950
Sprint Corp. 9,000 378,000
Texas Utilities Co. 16,600 709,650
Unicom Corp. 10,400 289,900
-----------
5,399,825
-----------
TOTAL COMMON STOCK
(Cost $22,702,805) 28,432,805
-----------
TEMPORARY INVESTMENTS -- 3.7%
Goldman Sachs Financial Square Money Market
Portfolio
(Cost $1,094,282) 1,094,282 1,094,282
-----------
TOTAL INVESTMENTS -- 99.8%
(Cost $23,797,087) 29,527,087
-----------
</TABLE>
<TABLE>
<CAPTION>
VALUE+
------
<S> <C>
OTHER ASSETS AND LIABILITIES -- 0.2%
Dividends receivable and other assets $ 114,669
Accrued expenses (Note 4) (49,764)
-----------
OTHER ASSETS AND LIABILITIES, NET 64,905
-----------
NET ASSETS -- 100.0%
Applicable to 2,201,410 and 7,980 shares of beneficial
interest outstanding of Institutional Class and Class
A, respectively, $.001 par value (Note 9) $29,591,992
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
INSTITUTIONAL CLASS SHARE
($29,485,125/2,201,410) $13.39
------
------
NET ASSET VALUE AND REDEMPTION PRICE PER CLASS A SHARE
($106,867/7,980) $13.39
------
------
MAXIMUM PUBLIC OFFERING PRICE PER CLASS A SHARE (Note 6) $14.02
------
------
</TABLE>
- ----------
+ See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements.
46
HARRIS INSIGHT FUNDS
GROWTH FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK -- 97.3%
AEROSPACE -- 0.8%
Textron, Inc. 7,000 $ 559,125
-----------
BUSINESS EQUIPMENT & SERVICE -- 8.5%
Automatic Data Processing, Inc. 15,000 579,375
Cisco Systems, Inc.* 47,000 2,661,375
Computer Sciences Corp.* 17,200 1,285,700
International Business Machines Corp. 7,500 742,500
United States Cellular Corp.* 15,000 465,000
-----------
5,733,950
-----------
CAPITAL GOODS -- 7.7%
General Electric Co. 30,000 2,595,000
Harnischfeger Industries, Inc. 19,000 631,750
Illinois Tool Works, Inc. 7,000 473,375
Solectron Corp.* 10,000 378,750
United Technologies Corp. 10,000 1,150,000
-----------
5,228,875
-----------
CHEMICALS -- 0.7%
Union Carbide Corp. 12,500 496,875
-----------
CONSUMER NON-DURABLES -- 14.9%
Coca Cola Co. 14,000 684,250
Conagra, Inc. 26,700 1,211,512
Gillette Co. 20,000 1,247,500
IBP, Inc. 30,000 828,750
Kimberly-Clark Corp. 8,000 618,000
Pepsico, Inc. 66,000 2,334,750
Philip Morris Companies, Inc. 17,500 1,820,000
Procter & Gamble Co. 15,000 1,359,375
-----------
10,104,137
-----------
CONSUMER SERVICES -- 7.2%
ITT Industries, Inc. 16,854 423,457
Mattel, Inc. 20,062 574,275
McDonalds Corp. 25,972 1,214,191
Mirage Resorts, Inc.* 9,300 502,200
Tribune Co. 9,000 653,625
Tupperware Corp.* 14,200 599,950
Walt Disney Co. 15,083 948,343
-----------
4,916,041
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
FINANCIAL SERVICES -- 7.8%
American International Group, Inc. 22,032 $ 2,172,906
Bank of Boston Corp. 12,100 598,950
Citicorp 5,000 413,125
Federal Home Loan Mortgage
Corp. 5,000 427,500
Reliastar Financial Corp. 10,000 431,250
Travelers Group, Inc. 18,000 821,250
Vesta Insurance Group, Inc. 12,150 405,506
-----------
5,270,487
HEALTH CARE -- 15.3%
Abbott Laboratories, Inc. 35,332 1,536,942
American Home Products Corp. 7,500 450,937
Amgen, Inc.* 7,700 413,875
Bristol-Myers Squibb Co. 10,000 900,000
Columbia HCA Healthcare Corp. 24,500 1,307,687
Dura Pharmaceuticals, Inc.* 10,000 560,000
Johnson & Johnson 23,600 1,168,200
Medtronic, Inc. 10,000 560,000
Merck & Co., Inc. 10,000 646,250
Pfizer, Inc. 12,000 856,500
Schering Plough Corp. 31,200 1,957,800
-----------
10,358,191
-----------
MACHINERY -- 0.9%
Deere & Co. 15,000 600,000
-----------
OIL AND GAS-DOMESTIC -- 2.2%
Phillips Petroleum Co. 27,500 1,151,562
Valero Energy Corp. 13,509 337,725
-----------
1,489,287
-----------
RAW MATERIALS -- 2.1%
Alco Standard Corp. 5,000 226,250
Hercules, Inc. 15,600 861,900
Nucor Corp. 6,000 303,750
-----------
1,391,900
-----------
RETAIL -- 6.7%
Home Depot, Inc. 15,000 810,000
Safeway Inc., Co. 40,800 1,346,400
Sears Roebuck & Co. 10,000 486,250
Sysco Corp. 20,400 698,700
Walgreen Co. 35,000 1,172,500
-----------
4,513,850
-----------
</TABLE>
See Notes to Financial Statements.
47
HARRIS INSIGHT FUNDS
GROWTH FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK (CONTINUED)
TECHNOLOGY -- 13.7%
Andrew Corp. 12,275 $ 662,850
Applied Materials, Inc.* 10,000 303,750
Ericsson L M Telephone Co.* 31,780 679,297
Hewlett Packard Co. 14,200 1,414,675
Intel Corp. 22,500 1,650,938
Microsoft Corp.* 12,000 1,440,000
Motorola, Inc. 8,500 534,438
Northern Telecom Ltd. 5,000 271,875
Parker Hannifin Corp. 12,000 508,500
Tellabs, Inc.* 15,800 1,054,650
Texas Instruments, Inc. 8,300 413,963
US Robotics Corp. 4,500 383,625
-----------
9,318,561
-----------
TRANSPORTATION -- 0.8%
Conrail, Inc. 8,500 564,188
-----------
UTILITIES -- 8.0%
AT&T Corp. 28,200 1,748,400
Coastal Corp. 25,000 1,043,750
GTE Corp. 17,500 783,125
Illinova Corp. 26,300 756,125
MCI Communications Corp. 44,000 1,122,000
-----------
5,453,400
-----------
TOTAL COMMON STOCK (Cost $46,183,984) 65,998,867
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
TEMPORARY INVESTMENTS - 2.3%
Dreyfus Cash Management Plus #719 201,400 $ 201,400
Goldman Sachs Financial Square Money Market
Portfolio 1,337,861 1,337,861
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $1,539,261) 1,539,261
-----------
TOTAL INVESTMENTS -- 99.6%
(Cost $47,723,245) 67,538,128
-----------
OTHER ASSETS AND LIABILITIES -- 0.4%
Receivables for investments sold 1,732,802
Receivable for capital stock sold 204,491
Dividend receivable and other assets 97,948
Payable for investments purchased (1,631,057)
Payable for capital stock redeemed (14,767)
Accrued expenses (91,129)
-----------
OTHER ASSETS AND LIABILITIES, NET 298,288
-----------
NET ASSETS -- 100.0%
Applicable to 3,850,756 and 6,498 shares of beneficial
interest outstanding of Institutional Class and Class
A, respectively, $.001 par value (Note 9) $67,836,416
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
INSTITUTIONAL CLASS SHARE
($67,722,182/3,850,756) $17.59
------
------
NET ASSET VALUE AND REDEMPTION PRICE PER CLASS A SHARE
($114,234/6,498) $17.58
------
------
MAXIMUM PUBLIC OFFERING PRICE PER CLASS A SHARE (Note 6) $18.41
------
------
</TABLE>
- ----------
+ See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements.
48
HARRIS INSIGHT FUNDS
SMALL-CAP FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK -- 89.7%
ADVERTISING -- 1.4%
Omnicom Group, Inc. 36,000 $ 1,674,000
Ha-Lo Industries Corp. 7,500 195,000
-----------
1,869,000
-----------
BANKS -- 0.1%
Redwood Trust, Inc. 5,000 140,000
-----------
BROADCASTING -- 0.5%
Infinity Broadcasting Corp. 12,500 375,000
Westwood One* 23,500 358,371
-----------
733,371
BUSINESS EQUIPMENT & SERVICES -- 1.2%
American Business Products, Inc. 28,125 615,234
Comdisco, Inc. 37,500 998,438
-----------
1,613,672
-----------
CAPITAL GOODS -- 5.7%
Crane Co. 13,500 553,500
Graco, Inc. 25,717 520,769
Hubbell, Inc. 14,674 972,153
Idex Corp. 46,800 1,778,400
Precision Castparts Corp. 72,200 3,104,600
Twin Disc, Inc. 23,900 558,663
Zycon Corp.* 25,000 228,125
-----------
7,716,210
-----------
CHEMICALS -- 1.0%
Cytec Industries, Inc.* 11,000 940,500
Scotts Co.* 22,000 385,000
-----------
1,325,500
-----------
CONSUMER DURABLES -- 1.5%
K2, Inc. 25,000 678,125
Nautica Enterprises, Inc. 25,000 718,750
St. John Knits, Inc. 13,200 589,050
-----------
1,985,925
-----------
CONSUMER NON-DURABLES -- 4.4%
Alberto Culver Co. Class A 25,000 1,000,000
Alberto Culver Co. Class B 2,600 120,575
Arbor Drugs, Inc. 35,000 717,500
First Brands Corp. 53,400 1,441,800
Morningstar Group, Inc.* 25,100 276,100
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
CONSUMER NON-DURABLES (CONTINUED)
Robert Mondavi Corp.* 15,000 $ 472,500
Springs Industries, Inc. 23,100 1,166,550
Universal Corp. 27,000 715,500
-----------
5,910,525
-----------
CONSUMER SERVICES -- 8.5%
Bush Industries, Inc. 3,000 102,000
Checkpoint Systems, Inc. 55,000 1,890,625
Day Runner, Inc.* 30,000 765,000
Delta & Pine Land Co. 4,000 169,000
Grand Casinos, Inc. 11,900 306,425
Griffon Corp.* 58,000 471,250
La-Z-Boy Chair Co. 38,800 1,168,850
Lee Enterprises, Inc. 56,400 1,332,450
Millipore Corp. 52,650 2,204,719
Myer Industries, Inc. 5,000 93,125
PHH Corp. 28,900 1,647,300
Sodak Gaming, Inc.* 25,000 762,500
Tecumseh Products Co. 10,000 537,500
-----------
11,450,744
-----------
CONTAINERS -- 0.3%
Bemis, Inc. 10,000 350,000
-----------
ELECTRONICS -- 4.5%
Amphenol Corp.* 20,000 460,000
Analog Devices, Inc. 65,000 1,657,500
BMC Industries, Inc. 25,000 718,750
Electronics for Imaging, Inc. 5,000 346,875
Input/Output, Inc. 5,000 161,875
International Rectifier Corp. 15,000 241,875
Macromedia, Inc. 7,000 153,125
MEMC Electronic Materials, Inc. 5,000 193,750
Microchip Technology, Inc.* 15,000 371,250
Sanmina Corp. 10,000 267,500
S3 Inc. 60,000 735,000
Vitesse Semiconductors Corp.* 27,500 660,000
-----------
5,967,500
-----------
ENERGY -- 1.9%
Tosco Corp. 21,000 1,055,250
United Meridian Corp.* 43,500 1,566,000
-----------
2,621,250
-----------
</TABLE>
See Notes to Financial Statements.
49
HARRIS INSIGHT FUNDS
SMALL-CAP FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK (CONTINUED)
FINANCIAL SERVICES -- 15.0%
Alex. Brown, Inc. 23,700 $ 1,339,050
City National Corporation 10,000 157,500
Commerce Bancshares, Inc. 48,620 1,659,158
Compass Bancshares, Inc. 10,000 327,500
Corrections Corp. 20,000 1,400,000
Corus Bankshares, Inc. 17,000 510,000
Financial Federal Corp. 30,000 468,750
GATX Corp. 20,000 965,000
Hibernia Corp. 20,000 217,500
Jefferson Bankshares, Inc. 5,000 110,625
Keystone Financial, Inc. 5,000 167,500
Maf Bancorp, Inc. 10,000 240,000
North Fork Bancorporation, Inc. 16,200 423,225
Old Kent Financial Corp. 64,441 2,521,238
Old Republic International Corp. 127,950 2,750,925
Protective Life Corp. 26,000 913,250
Provident Bancorp 7,500 264,375
Quick & Reilly Group, Inc. 47,130 1,531,725
RCSB Financial, Inc. 10,000 258,750
Reliastar Financial Corp. 28,200 1,216,125
Renaissance RE Holdings Ltd. 16,000 492,000
Southtrust Corp. 17,400 489,375
USLife Corp. 22,500 739,688
Washington National Corp. 22,000 566,500
West America Bancorporation 3,000 150,750
Zions Bancorp* 3,000 218,250
-----------
20,098,759
-----------
HEALTH CARE -- 8.6%
Beckman Instruments, Inc. 41,700 1,584,600
Bergen Brunswig Corp. 79,280 2,200,020
FHP International* 25,000 684,375
Mentor Corp. 64,600 1,631,150
Shared Medical Systems Corp. 18,000 1,156,500
Sterile Concepts Holdings, Inc. 5,000 99,375
Tecnol Medical Products, Inc.* 40,050 755,944
Unversal Health Services, Inc. 129,400 3,380,575
-----------
11,492,539
-----------
HOSPITAL SUPPLIES AND SERVICES -- 0.3%
Boston Science Corp. 8,600 387,000
-----------
INSURANCE -- 0.6%
American Travelers Corp. 37,500 857,813
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
MISCELLANEOUS -- 1.6%
Gibraltar Steel Corp. 20,000 $ 395,000
Newfield Exploration Co. 10,000 388,750
Papa John's International, Inc. 5,000 241,250
Robbins & Myers, Inc. 10,000 445,000
Safeskin Corp.* 10,000 415,000
Showboat, Inc. 10,000 301,250
-----------
2,186,250
-----------
PHARMACEUTICALS -- 0.5%
Al Pharma, Inc. 34,100 677,738
-----------
PRINTING AND PUBLISHING -- 1.1%
Gartner Group, Inc. 40,000 1,465,000
-----------
RAW MATERIALS -- 1.5%
Ferro Corp. 49,645 1,315,593
Nacco Industries, Inc. 12,800 708,800
-----------
2,024,393
-----------
RETAIL -- 2.3%
Boston Chicken* 10,000 323,750
Donna Karan, Intl., Inc.* 4,600 110,400
Gymboree Corp.* 10,000 302,500
Lubys Cafeterias, Inc. 30,900 726,150
Regis Corp. 7,500 228,750
Ruddick Corp. 29,400 360,150
Ryans Family Steak Houses, Inc.* 90,000 832,500
Urban Outfitters 10,000 247,500
-----------
3,131,700
-----------
SHELTER -- 2.2%
Centex Corp. 35,240 1,096,845
Fleetwood Enterprises, Inc. 24,925 772,675
Wausau Paper Mills Co. 52,493 1,036,737
-----------
2,906,257
-----------
TECHNOLOGY -- 20.7%
ADC Telecommunications, Inc. 90,800 4,040,600
Aspen Technology, Inc. 5,000 273,750
Banctec, Inc.* 55,500 1,123,875
C-Cube Microsystems, Inc. 5,000 165,000
Cable Design Technologies 17,500 573,125
CFM Technologies, Inc.* 100,000 1,000,000
Comsat Corp. 54,400 1,414,400
Cubic Corp. 9,997 326,152
Cytyc Corp.* 4,000 103,500
Davidson and Associates, Inc. 40,000 1,200,000
</TABLE>
See Notes to Financial Statements.
50
HARRIS INSIGHT FUNDS
SMALL-CAP FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK (CONTINUED)
TECHNOLOGY (CONTINUED)
Dynatech Corp.* 37,600 $ 1,222,000
Henry (Jack) & Associates Inc. 5,000 170,000
Lindsay Manufacturing Co. 10,000 402,500
Logicon, Inc. 50,400 1,505,700
Marshall Industries, Inc.* 85,200 2,385,600
Mts Systems Corp. 47,400 959,850
Parametric Technologies Co. 11,400 493,050
Pioneer Standard Electronics, Inc. 93,487 1,215,331
Reynolds & Reynolds Co. 110,000 5,857,500
Spyglass Inc. 5,000 106,250
Systemsoft Corp.* 10,000 468,750
Thiokol Corp. 49,300 1,947,350
Valmont Industries Inc. 20,000 665,000
Vans Inc.* 10,000 168,750
-----------
27,788,033
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
TELECOMMUNICATIONS -- 2.3%
Dialogic Corp. 35,000 $ 2,082,500
Network Equipment
Technologies, Inc. 21,250 451,563
Tellabs, Inc. 8,900 594,075
-----------
3,128,138
-----------
UTILITIES -- 2.0%
Interstate Power Co. 23,600 758,150
LCI International, Inc. 15,600 489,450
Piedmont Natural Gas Co., Inc. 26,100 603,563
Washington Water Power Co. 44,200 823,225
-----------
2,674,388
-----------
TOTAL COMMON STOCK
(Cost $76,180,102) 120,501,705
-----------
</TABLE>
<TABLE>
<CAPTION>
COUPON PAR
RATE/YIELD MATURITY (000)
---------- -------- -----
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS -- 0.8%
Federal Home Loan Bank
Discount Note -- (Cost
$1,000,000) 5.52% 07/01/96 $ 1,000 1,000,000
-----------
SHARES
-----------
TEMPORARY INVESTMENTS -- 9.6%
Dreyfus Cash Management Plus
#719 6,502,300 6,502,300
Goldman Sachs Financial
Square
Money Market Portfolio 6,371,824 6,371,824
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $12,874,124) 12,874,124
-----------
TOTAL INVESTMENTS -- 100.1%
(Cost $90,054,226) 134,375,829
-----------
OTHER ASSETS AND LIABILITIES -- (0.1%)
Receivable for capital stock
sold 235,097
Dividends receivable and
other assets 175,852
Payable for investments
purchased (309,750)
Payable for capital stock
redeemed (26,500)
Accrued expenses (Note 4) (168,900)
-----------
OTHER ASSETS AND LIABILITIES, NET (94,201)
-----------
NET ASSETS -- 100%
Applicable to 8,969,701 and 7,384 shares of beneficial interest
outstanding of Institutional Class
and Class A, respectively, $.001 par value (Note 9) $ 134,281,628
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE
($134,171,179/8,969,701) $14.96
------
------
NET ASSET VALUE AND REDEMPTION PRICE PER CLASS A SHARE
($110,449/7,384) $14.96
------
------
MAXIMUM PUBLIC OFFERING PRICE PER CLASS A SHARE (Note 6) $15.66
------
------
</TABLE>
- ----------
+ See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements.
51
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C>
COMMON STOCK -- 97.2%
ADVERTISING -- 0.1%
Interpublic Group of Cos., Inc. 2,000 $ 93,750
-----------
AEROSPACE -- 1.9%
Boeing Co. 8,500 740,562
General Dynamics Corp. 1,600 99,200
Lockheed Martin Corp. 4,971 417,562
McDonnell Douglas Corp. 5,600 271,600
Northrop Grumman Corp. 1,300 88,563
Rockwell International Corp. 5,400 309,150
Textron, Inc. 2,100 167,738
United Technologies Corp. 3,000 345,000
-----------
2,439,375
-----------
AIR TRANSPORTATION -- 0.4%
AMR Corp.* 1,900 172,900
Delta Air Lines 1,300 107,900
Federal Express Corp.* 1,400 114,800
Southwest Airlines Co. 3,800 110,675
U.S. Air Group, Inc.* 1,600 28,800
-----------
535,075
-----------
APPAREL -- 0.8%
Brown Group, Inc. 500 8,688
Charming Shoppes, Inc. 2,600 18,038
Gap, Inc. 7,200 231,300
Limited, Inc. 6,813 146,480
Liz Claiborne, Inc. 1,900 65,788
Nike, Inc. 3,600 369,900
Reebok International, Ltd. 1,900 63,888
Russell Corp. 1,100 30,388
Springs Industries, Inc. 500 25,250
Stride Rite Corp. 1,300 10,725
V.F. Corp. 1,600 95,400
-----------
1,065,845
-----------
AUTOMOTIVE -- 2.4%
Chrysler Corp. 9,400 582,800
Cummins Engine Co., Inc. 1,100 44,413
Dana Corp. 2,600 80,600
Eaton Corp. 2,000 117,250
Echlin, Inc. 1,500 56,813
Ford Motor Co. 29,100 942,113
General Motors Corp. 18,600 974,175
Genuine Parts Co. 3,050 139,538
T.R.W., Inc. 1,600 143,800
-----------
3,081,502
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
BANKS -- 6.2%
Banc One Corp. 11,348 $ 385,832
Bank of Boston Corp. 2,800 138,600
Bank of New York Co. Inc. 5,000 256,250
BankAmerica Corp. 9,188 695,991
Bankers Trust New York Corp. 2,000 147,750
Barnett Banks, Inc. 2,400 146,400
Boatmens Bancshares Inc. 3,900 155,513
Chase Manhattan Corp. 10,884 768,683
Citicorp 12,100 999,763
Comerica, Inc. 3,000 133,875
CoreStates Financial Corp. 5,500 211,750
Fifth Third Bancorp* 2,500 134,375
First Bank Systems Inc. 3,600 208,800
First Chicago NBD Corp. 8,013 313,509
First Union Corp. 7,100 432,213
Fleet Financial Group, Inc. 6,655 289,493
Keycorp 5,856 226,920
MBNA Corp. 5,550 158,175
Mellon Bank Corp. 3,300 188,100
National City Corp. 5,500 193,188
NationsBank Corp. 7,400 611,425
Norwest Corp. 8,800 306,900
Republic New York Corp. 1,400 87,150
Suntrust Banks, Inc. 5,600 207,200
U.S. Bancorp, Inc. 3,800 136,800
Wells Fargo & Co. 2,433 581,183
-----------
8,115,838
-----------
BEVERAGES -- 4.1%
Anheuser-Busch Cos., Inc. 6,300 472,500
Brown-Forman Corp. 1,800 72,000
Coca-Cola Co. 63,200 3,088,900
Coors Adolph Co. 1,100 19,663
Pepsico, Inc. 39,200 1,386,700
Seagram Company Ltd. 9,300 312,713
-----------
5,352,476
-----------
BROADCASTING -- 0.5%
Comcast Corp. 1,200 21,900
Tele-Communications Inc.* 16,200 291,600
Viacom, Inc. -- Class A* 560 21,350
Viacom, Inc. -- Class B* 8,643 335,997
-----------
670,847
-----------
</TABLE>
See Notes to Financial Statements.
52
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK (CONTINUED)
BUSINESS MACHINES -- 1.6%
D.S.C. Communication Corp.* 2,900 $ 87,000
Intergraph Corp.* 1,100 13,338
International Business Machines Corp. 14,100 1,395,900
Pitney Bowes, Inc. 3,800 181,450
Unisys Corp.* 4,200 29,925
Xerox Corp. 8,100 433,350
-----------
2,140,963
-----------
BUSINESS SERVICES -- 0.9%
Alco Standard Corp. 3,200 144,800
Automatic Data Processing, Inc. 7,200 278,100
Deluxe Corp. 2,100 74,550
Ecolab Inc. 1,600 52,800
First Data Corp. 5,500 437,938
John H. Harland Co. 800 19,700
Moore Corp., Ltd. 2,500 46,744
Ogden Corp. 1,200 21,750
Shared Medical Systems Corp. 600 38,550
-----------
1,114,932
-----------
CAPITAL GOODS -- 0.0%
EMCor Group Inc. 8 119
-----------
CHEMICALS -- 3.1%
Air Products & Chemicals, Inc. 2,800 161,700
B.F. Goodrich Co. 1,400 52,325
Dow Chemical Co. 6,500 494,000
E.I. Dupont de Nemours & Co. 13,800 1,091,925
Eastman Chemical Co. 2,000 121,750
Engelhard Corp. 3,687 84,801
F.M.C. Corp.* 900 58,725
Great Lakes Chemical Corp. 1,600 99,600
Hercules, Inc. 2,800 154,700
Mallinckrodt Group, Inc. 1,900 73,863
Monsanto Co. 14,500 471,250
Morton International, Inc. 3,700 137,825
Nalco Chemical Co. 1,700 53,550
P.P.G. Industries, Inc. 4,900 238,875
Praxair, Inc. 3,600 152,100
Rohm & Haas Co. 1,700 106,675
Safety-Kleen Corp. 1,500 26,250
Sherwin Williams Co. 2,200 102,300
Sigma Aldrich Corp. 1,300 68,900
Union Carbide Corp. 3,400 135,150
W.R. Grace & Co. 2,400 170,100
-----------
4,056,364
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
<S> <C> <C>
------- -----------
COMPUTER AND OFFICE EQUIPMENT -- 5.3%
Amdahl Corp.* 2,900 $ 31,175
Apple Computer, Inc. 3,200 66,800
Bay Networks* 4,600 118,450
Cabletron Systems, Inc.* 1,800 123,525
Ceridian Corp.* 1,700 85,850
Cisco Systems* 13,700 775,763
Compaq Computer Corp.* 6,600 325,050
Computer Associates
International, Inc. 6,050 431,063
Computer Sciences Corp.* 1,400 104,650
Data General Corp.* 1,000 13,000
Digital Equipment Corp.* 3,800 171,000
Intel Corp. 20,400 1,496,850
Microsoft Corp.* 14,800 1,776,000
Novell, Inc.* 9,200 126,500
Oracle Systems Corp.* 16,225 638,859
Silicon Graphics, Inc.* 4,000 96,000
Sun Microsystems, Inc.* 4,600 270,250
Tandem Computers, Inc.* 2,900 35,888
Three Com Corp.* 4,100 187,063
-----------
6,873,736
-----------
CONGLOMERATES -- 0.1%
I.T.T. Industries, Inc. 3,100 77,888
-----------
CONSTRUCTION -- 1.1%
Armstrong World Industries, Inc. 900 51,863
Centex Corp. 800 24,900
Corning, Inc. 5,700 218,738
Fluor Corp. 2,100 137,288
Foster Wheeler Corp. 1,000 44,875
Halliburton Co. 2,900 160,950
Home Depot, Inc. 11,866 640,764
Kaufman & Broad Home Corp. 900 13,050
Owens Corning* 1,300 55,900
Pulte Corp. 700 18,725
-----------
1,367,053
-----------
CONSUMER DURABLES -- 0.4%
Black & Decker Corp. 2,200 84,975
Federated Department Stores, Inc. 5,000 170,625
Maytag Corp. 2,600 54,275
Newell Co. 4,000 122,500
Outboard Marine Corp. 600 10,875
Whirlpool Corp. 1,900 94,288
-----------
537,538
-----------
</TABLE>
See Notes to Financial Statements.
53
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK (CONTINUED)
CONSUMER NON-DURABLES -- 0.5%
Brunswick Corp. 2,500 $ 50,000
CUC International, Inc. 4,600 163,300
Premark International, Inc. 1,600 29,600
Rubbermaid, Inc. 4,000 109,000
Service Corp. International 3,050 175,375
Tupperware Corp.* 1,600 67,600
-----------
594,875
-----------
CONSUMER SERVICES -- 0.1%
Comcast Corp. 4,800 88,200
-----------
CONTAINERS -- 0.2%
Ball Corp. 900 25,875
Bemis Co., Inc. 1,400 49,000
Crown Cork & Seal Co., Inc. 3,200 144,000
-----------
218,875
-----------
DRUGS AND HEALTH CARE -- 8.7%
Abbott Laboratories 19,700 856,950
Allergan, Inc. 1,600 62,800
Alza Corp.* 2,100 57,488
American Home Products Corp. 15,600 937,950
Amgen, Inc.* 6,600 354,750
Bristol-Myers Squibb Co. 12,600 1,134,000
Columbia HCA Healthcare Corp. 11,088 591,822
Community Psychiatric Centers* 1,100 10,450
Eli Lilly & Co. 13,700 890,500
Humana, Inc.* 4,000 71,500
Johnson & Johnson 33,200 1,643,400
Manor Care, Inc. 1,550 61,031
Merck & Co., Inc. 30,600 1,977,525
Pfizer, Inc. 15,800 1,127,725
Schering Plough Corp. 9,100 571,025
U.S. Surgical Corp. 1,500 46,500
Upjohn Co. 12,580 558,238
Warner Lambert Co. 6,800 374,000
-----------
11,327,654
-----------
ELECTRONICS -- 3.7%
Advanced Micro Devices Inc.* 3,300 44,963
A.M.P., Inc. 5,396 216,515
Andrew Corp.* 1,425 76,950
Applied Materials, Inc.* 4,500 136,688
E.G.&G., Inc. 1,200 25,650
Emerson Electric Co. 5,600 506,100
General Instruments 3,100 89,513
General Signal Corp. 1,200 45,450
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
ELECTRONICS (CONTINUED)
Harris Corp. 1,000 $ 61,000
Hewlett Packard Co. 12,700 1,265,238
Honeywell, Inc. 3,200 174,400
Johnson Controls, Inc. 1,000 69,500
LSI Logic Corp.* 3,200 83,200
Micron Technology, Inc. 5,200 134,550
Motorola, Inc. 14,700 924,263
National Semiconductor Corp.* 3,500 54,250
Raytheon Co. 6,000 309,750
Scientific Atlanta Corp. 2,000 31,000
Tektronix, Inc. 800 35,800
Teledyne, Inc. 1,400 50,575
Texas Instruments, Inc. 4,700 234,413
Thomas & Betts Corp. 1,000 37,500
Westinghouse Electric Corp. 10,300 193,125
-----------
4,800,393
-----------
ENERGY AND RAW MATERIALS -- 2.3%
Baker Hughes, Inc. 3,500 115,063
Dresser Industries, Inc. 4,600 135,700
Eastern Enterprises 500 16,625
Helmerich & Payne, Inc. 700 25,638
Royal Dutch Petroleum Co. 13,300 2,044,875
Schlumberger Ltd. 6,000 505,500
USX-Marathon Group, Inc. 7,500 150,938
-----------
2,994,339
-----------
ENERGY AND UTILITIES -- 4.0%
American Electric Power Co., Inc. 4,700 200,338
Baltimore Gas & Electric Co. 3,700 104,988
Carolina Power & Light Co. 3,900 148,200
Central & South West Corp. 5,100 147,900
Cinergy Corp. 3,936 125,952
Coastal Corp. 2,700 112,725
Consolidated Edison Co., Inc. 5,900 172,575
Consolidated Natural Gas Co. 2,400 125,400
Dominion Resources, Inc. 4,450 178,000
DTE Energy Co. 3,700 114,238
Duke Power Co. 5,200 266,500
Edison International 11,200 197,400
Enron Corp. 6,300 257,513
Enserch Corp. 1,800 39,150
Entergy Corp. 5,700 161,738
F.P.L. Group Inc. 4,700 216,200
General Public Utilities Corp. 3,100 109,275
Houston Industries, Inc. 6,600 162,525
</TABLE>
See Notes to Financial Statements.
54
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK (CONTINUED)
ENERGY AND UTILITIES (CONTINUED)
Niagara Mohawk Power Corp. 3,700 $ 28,675
Nicor, Inc. 1,300 36,888
Noram Energy Corp. 3,100 33,713
Northern States Power Co. 1,700 83,938
Ohio Edison Co. 4,000 87,500
Oneok, Inc. 700 17,500
Oryx Energy Co.* 2,600 42,250
P.P.&L. Resources Inc. 4,000 94,500
Pacific Enterprises 2,100 62,213
Pacific Gas & Electric Co. 10,600 246,450
Pacificorp 7,400 164,650
Panhandle Eastern Corp. 3,800 124,925
PECO Energy Co. 5,600 145,600
Peoples Energy Corp. 900 30,150
Public Service Enterprise Group, Inc. 6,200 169,725
Sonat, Inc. 2,200 99,000
Southern Co. 16,800 413,700
Texas Utilities Co. 5,700 243,675
Unicom Corp. 5,400 150,525
Union Electric Co. 2,600 104,650
---------
5,220,844
---------
FOOD AND AGRICULTURE -- 2.6%
Archer-Daniels-Midland Co. 12,992 248,472
Campbell Soup Co. 6,200 437,100
Conagra, Inc. 6,150 279,056
CPC International Inc. 3,700 266,400
Fleming Cos., Inc. 1,000 14,375
General Mills, Inc. 4,000 218,000
H.J. Heinz Co. 9,200 279,450
Hershey Foods Corp. 1,900 139,413
Kellogg Co. 5,400 395,550
Pioneer HI Bred International 2,100 111,038
Quaker Oats Co. 3,300 112,613
Ralston Purina Group 2,700 173,138
Sara Lee Corp. 12,000 388,500
Sysco Corp. 4,600 157,550
W.M. Wrigley Jr., Co. 2,900 146,450
-----------
3,367,105
-----------
FINANCE -- 3.0%
Beneficial Corp. 1,300 72,963
Dean Witter Discover & Co. 4,252 243,427
Federal Home Loan Mortgage
Corp. 4,500 384,750
Federal National Mortgage
Association 27,100 907,850
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
FINANCE (CONTINUED)
Golden West Financial Corp. 1,500 $ 84,000
Great Western Financial Corp. 3,500 83,563
Green Tree Financial Corp.* 3,500 109,375
H.F. Ahmanson & Co. 3,000 81,000
Household International, Inc. 2,400 182,400
J.P. Morgan & Co., Inc. 4,700 397,738
Merrill Lynch & Co., Inc. 4,400 286,550
Morgan Stanley Group, Inc. 3,900 191,588
Salomon, Inc. 2,700 118,800
Travelers Group, Inc. 11,742 535,729
Wachovia Corp. 4,200 183,750
-----------
3,863,483
-----------
FINANCIAL SERVICES -- 0.6%
American Express Co. 12,100 539,963
PNC Bank Corp. 8,500 252,875
-----------
792,838
-----------
INSURANCE -- 3.6%
Aetna Life & Casualty Co. 2,900 207,350
Alexander & Alexander Services, Inc. 1,200 23,700
Allstate Corp. 11,170 509,631
American General Corp. 5,100 185,513
American International Group, Inc. 11,775 1,161,309
AON Corp. 2,700 137,025
Chubb Corp. 4,300 214,463
Cigna Corp. 1,900 223,963
General Re Corp. 2,000 304,500
Jefferson Pilot Corp. 1,800 92,925
Lincoln National Corp. 2,600 120,250
Loews Corp. 2,900 228,738
Marsh & McLennan Cos., Inc. 1,800 173,700
Providian Corp. 2,400 102,900
Safeco Corp. 3,100 109,663
St. Paul Cos., Inc. 2,100 112,350
Torchmark Corp. 1,750 76,563
Transamerica Corp. 1,700 137,700
U.S. Life Corp. 900 29,588
U.S.F.&G. Corp. 2,900 47,488
United Healthcare Corp. 4,300 217,150
UNUM Corp. 1,800 112,050
US Healthcare, Inc. 3,800 208,525
-----------
4,737,044
-----------
</TABLE>
See Notes to Financial Statements.
55
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (UNAUDITED) (CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK (CONTINUED)
MACHINERY AND HEAVY EQUIPMENT -- 0.6%
Case Corp. 1,800 $ 86,400
Caterpillar, Inc. 5,000 338,750
Deere & Co. 6,600 264,000
Giddings & Lewis, Inc. 900 14,625
McDermott International, Inc. 1,300 27,138
-----------
730,913
-----------
MANUFACTURING -- 1.1%
Allied Signal, Inc. 7,100 405,588
Avery Dennison Corp. 1,300 71,338
Masco Corp. 4,000 121,000
Millipore Corp. 1,100 46,063
Minnesota Mining & Manufacturing Co. 10,400 717,600
Nacco Industries, Inc. 200 11,075
National Service Industries, Inc. 1,200 46,950
Whitman Corp. 2,700 65,138
-----------
1,484,752
-----------
MEDIA -- 0.9%
Gannet Co., Inc. 3,500 247,625
King World Productions, Inc.* 1,000 36,375
Knight-Ridder, Inc. 1,200 87,000
New York Times Co. 2,400 78,300
Time Warner, Inc. 9,600 376,800
Tribune Co. 1,600 116,200
U.S. West Media Group* 11,700 213,525
-----------
1,155,825
-----------
MEDICAL AND MEDICAL SERVICES -- 0.1%
Beverly Enterprises, Inc* 2,300 27,600
Tenet Healthcare Corp.* 5,200 111,150
-----------
138,750
-----------
MEDICAL INSTRUMENTS AND SUPPLIES -- 0.9%
Bausch & Lomb, Inc. 1,500 63,750
Baxter International, Inc. 6,800 321,300
Becton, Dickinson & Co. 1,600 128,400
Biomet, Inc.* 3,000 42,375
Boston Scientific Corp.* 4,300 193,500
C.R. Bard, Inc. 1,400 47,600
Medtronic, Inc. 5,800 324,800
Perkin Elmer Corp. 1,100 53,075
St. Jude Medical, Inc.* 1,800 59,850
-----------
1,234,650
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
METALS AND MINING -- 1.2%
Alcan Aluminum, Ltd. 5,600 $ 170,800
Aluminum Co. of America 4,400 252,450
ASARCO, Inc. 1,100 30,388
Barrick Gold Corp. 8,800 238,700
Cyprus Amax Minerals Co. 2,350 53,169
Echo Bay Mines, Ltd. 3,300 35,475
Freeport-McMoran Copper &
Gold, Inc. 5,100 162,563
Homestake Mining Corp. 3,600 61,650
Inco, Inc. 3,000 96,487
Newmont Mining Corp. 2,445 120,722
Phelps Dodge Corp. 1,700 106,038
Placer Dome, Inc. 5,900 140,863
Reynolds Metals Co. 1,600 83,400
Santa Fe Pacific Gold Corp. 3,520 49,720
-----------
1,602,425
-----------
OIL-DOMESTIC -- 1.6%
Ashland, Inc. 1,600 63,400
Atlantic Richfield Co. 4,000 474,000
Burlington Resources, Inc. 3,100 133,300
Kerr-McGee Corp. 1,300 79,138
Louisiana Land & Exploration Co. 800 46,100
Occidental Petroleum Corp. 7,900 195,525
Pennzoil Co. 1,200 55,500
Phillips Petroleum Co. 6,500 272,188
Rowan Cos., Inc.* 2,100 30,975
Santa Fe Energy Resources, Inc. 2,400 28,500
Sun Co., Inc. 1,955 59,383
Tenneco, Inc. 4,400 224,950
Unocal Corp. 6,100 205,875
Western Atlas, Inc.* 1,300 75,725
Williams Cos., Inc. 2,600 128,700
-----------
2,073,259
-----------
OIL INTERNATIONAL -- 4.9%
Amerada Hess Corp. 2,400 128,700
Amoco Corp. 12,400 897,450
Chevron Corp. 16,200 955,800
Exxon Corp. 30,900 2,684,438
Mobil Corp. 9,800 1,098,825
Texaco, Inc. 6,700 561,963
-----------
6,327,176
-----------
</TABLE>
See Notes to Financial Statements.
56
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK (CONTINUED)
PAPER AND FOREST PRODUCTS -- 1.5%
Boise Cascade Corp. 1,200 $ 43,950
Champion International, Inc. 2,400 100,200
Georgia Pacific Corp. 2,300 163,300
International Paper Co. 7,307 269,446
James River Corp. 2,100 55,388
Kimberly Clark Corp. 6,964 537,969
Louisiana-Pacific Corp. 2,800 61,950
Mead Corp. 1,400 72,625
Potlatch Corp. 700 27,388
Stone Container Corp. 2,554 35,118
Temple Inland, Inc. 1,400 65,450
Union Camp Corp. 1,800 87,750
Westvaco Corp. 2,500 74,688
Weyerhaeuser Co. 5,000 212,500
Willamette Industries, Inc. 1,400 82,950
-----------
1,890,672
-----------
PERSONAL SERVICES -- 0.1%
H&R Block, Inc. 2,700 88,088
-----------
PHOTOGRAPHIC EQUIPMENT -- 0.5%
Eastman Kodak Co. 8,500 660,875
Polaroid Corp. 1,100 50,188
-----------
711,063
-----------
PRODUCER GOODS -- 3.9%
Briggs & Stratton Corp. 700 28,788
Cincinnati Milacron, Inc. 900 21,600
Cooper Industries, Inc. 2,700 112,050
Crane Co. 800 32,800
Dover Corp. 2,900 133,763
General Electric Co. 42,100 3,641,650
Harnischfeger Industries, Inc. 1,200 39,900
Illinois Tool Works, Inc. 3,000 202,875
Ingersoll Rand Co. 2,700 118,125
Paccar, Inc. 995 48,506
Pall Corp. 2,933 70,759
Parker-Hannifin Corp. 1,850 78,394
Raychem Corp. 1,100 79,063
SnapOn, Inc. 1,000 47,375
Stanley Works 2,200 65,450
Timken Co. 800 31,000
Trinova Corp. 800 26,700
Tyco International, Ltd. 3,800 154,850
W.W. Grainger, Inc. 1,300 100,750
Worthington Industries, Inc. 2,450 50,531
-----------
5,084,929
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
PUBLISHING -- 0.6%
American Greetings Corp. 1,900 $ 51,775
Dow Jones & Co.,Inc. 2,500 104,375
Dun & Bradstreet Corp. 4,200 262,500
McGraw-Hill Companies, Inc. 2,500 114,375
Meredith Corp. 700 29,225
R.R. Donnelley & Sons, Inc. 3,800 132,525
Times Mirror Co. 2,800 121,800
-----------
816,575
-----------
RAILROADS AND SHIPPING -- 1.0%
Burlington Northern Santa Fe
Corp. 3,631 293,657
C.S.X. Corp. 5,200 250,900
Consolidated Rail Corp. 2,000 132,750
Norfolk Southern Corp. 3,300 279,675
Union Pacific Corp. 5,100 356,363
-----------
1,313,345
-----------
RESTAURANTS -- 0.7%
Darden Restaurants 4,100 44,075
Luby's Cafeterias, Inc. 600 14,100
McDonald's Corp. 17,600 822,800
Ryan's Family Steak Houses,
Inc.* 1,300 12,025
Shoneys, Inc.* 1,200 13,050
Wendy's International 3,100 57,738
-----------
963,788
-----------
RETAIL-MERCHANDISING -- 4.2%
Albertsons, Inc. 6,300 260,663
American Stores Co. 3,700 152,625
Circuit City Stores, Inc. 2,400 86,700
Dayton Hudson Corp. 1,800 185,625
Dillard Department Stores, Inc. 2,800 102,200
Fruit of the Loom, Inc.* 1,900 48,450
Giant Food, Inc. 1,500 53,813
Great Atlantic & Pacific Tea Co., Inc. 1,000 32,875
Harcourt General, Inc. 1,900 95,000
Hasbro, Inc. 2,200 78,650
J.C. Penney Co., Inc. 5,600 294,000
Jostens, Inc. 1,000 19,750
K Mart Corp. 11,400 141,075
Kroger Co.* 3,100 122,450
Longs Drug Stores, Inc. 500 22,313
Lowe's Companies, Inc. 4,000 144,500
Mattel, Inc. 6,938 198,586
May Department Stores Co. 6,200 271,250
Melville Corp. 2,600 105,300
</TABLE>
See Notes to Financial Statements.
57
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK (CONTINUED)
RETAIL-MERCHANDISING (CONTINUED)
Mercantile Stores Co., Inc. 900 $ 52,763
Nordstrom, Inc. 2,000 88,500
Payless Shoesource 1,008 32,004
Pep Boys -- Manny, Moe & Jack 1,600 54,400
Price Costco, Inc.* 4,821 103,049
Rite Aid Corp. 2,100 62,475
Sears, Roebuck & Co. 9,700 471,663
Supervalu, Inc. 1,700 53,550
Tandy Corp.* 1,600 75,800
T.J.X. Companies, Inc. 1,800 60,750
Toys R Us, Inc.* 6,800 193,800
Wal-Mart Stores, Inc. 57,100 1,448,913
Walgreen Co. 6,100 204,350
Winn-Dixie Stores, Inc. 3,800 134,425
Woolworth Corp.* 3,300 74,250
-----------
5,526,517
-----------
SOAPS AND COSMETICS -- 2.8%
Alberto-Culver Co. 700 32,463
Avon Products, Inc. 3,400 153,425
Clorox Co. 1,300 115,213
Colgate-Palmolive Co. 3,700 313,575
Dial Corp. 2,300 65,838
Gillette Co. 11,000 686,125
International Flavors & Fragrances, Inc. 2,800 133,350
Proctor & Gamble Co. 17,100 1,549,688
Unilever N.V. 4,000 580,500
3,630,177
STEEL -- 0.2%
Armco, Inc* 3,100 15,500
Bethlehem Steel Corp.* 2,900 34,438
Inland Steel Industries, Inc. 1,200 23,550
Nucor Corp. 2,300 116,438
USX-US Steel Group, Inc. 2,000 56,750
246,676
TECHNOLOGY -- 0.2%
Autodesk, Inc. 1,200 35,700
Cray Research, Inc. 154 3,715
EMC Corp. 5,600 104,300
Loral Space and Communications 4,500 61,313
205,028
TELECOMMUNICATIONS -- 8.1%
Airtouch Communications, Inc. 12,300 347,475
Alltel Corp. 4,900 150,675
Ameritech Corp. 13,800 819,375
AT&T Corp. 39,742 2,464,004
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
Bell Atlantic Corp. 10,900 $ 694,875
BellSouth Corp. 24,700 1,046,663
G.T.E. Corp. 24,100 1,078,475
ITT Corp.* 3,000 198,750
ITT Hartford Group, Inc. 3,000 159,750
MCI Communications Corp. 16,900 430,950
Northern Telecom, Ltd. 6,300 342,563
NYNEX Corp. 10,700 508,250
Pacific Telesis Group 10,700 361,125
SBC Communications, Inc. 15,200 748,600
Sprint Corp. 10,900 457,800
Tellabs, Inc.* 2,200 146,850
US West, Inc. 11,700 372,938
Worldcom, Inc. 4,900 270,725
360 Communications Co. 1 23
-----------
10,599,866
-----------
TIRES AND RUBBER -- 0.2%
Cooper Tire & Rubber Co. 2,200 48,950
Goodyear Tire & Rubber Co. 3,900 188,175
-----------
237,125
-----------
TOBACCO -- 2.0%
American Brands, Inc. 4,700 213,263
Philip Morris Cos., Inc. 20,800 2,163,200
UST, Inc. 4,900 167,825
-----------
2,544,288
-----------
TRAVEL AND RECREATION -- 1.1%
Fleetwood Enterprises, Inc. 1,200 37,200
Harrahs Entertainment, Inc. 2,650 74,863
Hilton Hotels Corp. 1,200 135,000
Marriot International, Inc. 3,100 166,625
Walt Disney Co. 16,900 1,062,588
-----------
1,476,276
-----------
TRUCKING AND FREIGHT -- 0.1%
Caliber Systems, Inc. 1,000 34,000
Consolidated Freightways, Inc. 1,100 23,238
Ryder System, Inc. 2,100 59,063
Yellow Corp. 800 10,500
-----------
126,801
-----------
WASTE MANAGEMENT -- 0.5%
Browning-Ferris Industries, Inc. 5,400 156,600
Laidlaw, Inc. 7,200 72,975
WMX Technologies, Inc. 12,100 396,275
-----------
625,850
-----------
TOTAL COMMON STOCK
(Cost $82,049,952) 126,363,765
-----------
</TABLE>
See Notes to Financial Statements.
58
HARRIS INSIGHT FUNDS
INDEX FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COUPON PAR
RATE MATURITY (000) VALUE+
---- -------- ----- ------
<S> <C> <C> <C> <C>
U.S TREASURY OBLIGATIONS -- 0.2%
U.S. Treasury Bill** (Cost
$197,030) 4.95% 10/17/96 $ 200 $ 196,818
-----------
SHARES
-------
TEMPORARY INVESTMENTS -- 2.5%
Goldman Sachs Financial Square Money Market Fund (Cost
$3,298,291) 3,298,291 3,298,291
-----------
TOTAL INVESTMENTS -- 99.9% (Cost $85,545,273) 129,858,874
-----------
OTHER ASSETS AND LIABILITIES -- 0.1%
Receivable for capital stock purchased 17,096
Dividends receivable and other assets 248,906
Payable for capital stock redeemed (21,217)
Accrued expenses (Note 4) (79,893)
-----------
OTHER ASSETS AND LIABILITIES, NET 164,892
-----------
NET ASSETS -- 100.0%
Applicable to 7,635,702 and 3,051 shares of beneficial interest
outstanding of Institutional
Class and Class A, respectively, $.001 par value (Note 9) $130,023,766
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER INSTITUTIONAL
CLASS SHARE
($129,971,845/7,635,702) $17.02
------
------
NET ASSET VALUE AND REDEMPTION PRICE PER CLASS A SHARES
($51,921/3,051) $17.02
------
------
MAXIMUM PUBLIC OFFERING PRICE PER CLASS A SHARE (Note 6) $17.82
------
------
</TABLE>
- ----------
+ See Note 2a to the Financial Statements.
* Non-income producing security.
** Security pledged as collateral for futures contracts.
<TABLE>
<CAPTION>
NUMBER OF UNREALIZED
CONTRACTS APPRECIATION
--------- ------------
<S> <C> <C>
Futures Contracts -- Long Position S&P 500
Index, September 1996 10 $12,075
------- ---------
------- ---------
</TABLE>
See Notes to Financial Statements.
59
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK (CONTINUED)
COMMON STOCK -- 96.5%
Australia -- 2.7%
Amcor, Ltd. 15,021 $ 102,159
Boral, Ltd. 18,322 47,539
Brambles Industries, Ltd. 8,111 112,751
Broken Hill Proprietary Co., Ltd. 40,130 554,377
Coca Cola Amatil, Ltd. 10,393 115,464
Coles Myer, Ltd. 35,216 127,922
CRA, Ltd. 10,404 160,005
CSR, Ltd. 20,458 72,223
Lend Lease Corp., Ltd. 8,518 130,598
MIM Holdings, Ltd. 42,075 54,254
National Australia Bank, Ltd. 37,497 346,416
The News Corp., Ltd. 38,415 217,771
The News Corp., Ltd.-Pref. 16,917 82,467
North Limited NBH 36,085 103,558
Pacific Dunlop, Ltd. 31,014 69,741
Pioneer International, Ltd. 55,515 161,501
WMC Limited 25,048 179,217
Westpac Banking Corp. 49,443 218,866
-----------
2,856,829
-----------
BELGIUM -- 1.0%
Bekaert SA 35 28,045
Cies Reunies Electrabel et
Tractionel SA 269 110,133
Electrabel SA 800 170,854
Electrabel Strips 200 651
Electrabel SA 200 44,757
Etablissement Delhaize Freres & Cie Le Lion
SA 1,140 56,955
Fortis AG 614 80,560
Generale de Banque SA 300 104,150
Groupe Bruxelles Lambert SA 682 85,345
Kredietbank NV 263 78,669
Petrofina SA 456 142,950
Royale Belge SA 319 62,527
Solvay et Cie SA 247 151,591
-----------
1,117,187
-----------
DENMARK -- 0.8%
Carlsberg AS 667 39,219
Dampskibsselskabet Svendburg 4 130,550
Dampskibsselskabet AF 1912 AS 5 113,336
Danisco AS 1,432 71,264
Den Danske Bank AS 1,000 66,979
FLS Industries 177 17,798
Novo-Nordisk AS 557 78,792
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
DENMARK (CONTINUED)
SAS Danmark AS 1,920 $ 26,178
Sophus Berendsen AS 550 73,505
Tele Danmark AS 2,700 135,113
Unidanmark AS 1,100 50,993
-----------
803,727
-----------
FINLAND -- 0.5%
Cultor OY 500 24,443
Kesko OY 2,000 29,504
Merita, Ltd.* 10,000 20,890
Metra OY 500 22,612
Outokumpu OY 3,000 50,393
OY Nokia AB 4,400 162,033
OY Nokia AB 2,000 73,091
Sampo Insurance Co., Ltd. 300 17,379
UPM-Kymmene Corp.* 6,500 134,521
-----------
534,866
-----------
FRANCE -- 6.3%
Accor SA 1,000 139,928
Alcatel Alsthom Cie Generale
D'electricite SA 3,000 261,782
AXA SA 3,300 180,601
Banque Nationale de Paris 4,100 143,984
Bouygues 650 72,510
Canal Plus SA 439 107,414
Carrefour Supermarche SA 594 332,931
CIE Bancaire 600 67,632
CIE Financiere de Paribas SA 2,400 141,794
CIE Generale Des Eaux 2,350 262,608
CIE Generale Des
Establissements Michelin SA 3,150 154,026
Compagnie de Suez SA 3,350 122,593
Compagnie De St. Gobain 2,107 282,134
Compagnie UAP SA 4,947 100,469
CSF (Thomson-CSF) 2,500 70,304
Elf Aquitaine SA 5,450 401,005
Eridania Beghin-Say SA 650 101,817
Groupe Danone 1,500 227,092
Havas SA 1,150 94,092
Immindo SA 1,400 129,239
L'Air Liquide 2,119 374,341
L'Oreal 1,450 481,596
Lafarge SA 2,050 124,103
Legrand SA 526 94,047
LVMH (Louis Vuitton Moet
Hennessey) 1,938 459,877
</TABLE>
See Notes to Financial Statements.
60
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK (CONTINUED)
FRANCE (CONTINUED)
Lyonnaise De Eaux SA 1,500 $ 143,310
Peugeot SA 1,400 187,465
Pinault Printemps 600 210,009
Promodes 488 140,743
Rhone-Poulenc SA 6,850 180,119
Sanofi SA 2,150 161,203
SEFIMEG Ste. Francaise
D'Investissements Immobiliers
& De Gestion 1,150 77,777
Schneider SA 3,202 168,018
Total SA 4,550 337,613
Usinor Sacilor 5,131 74,041
-----------
6,608,217
-----------
GERMANY -- 6.7%
Aktiengesellschaft Holding 400 695,629
AMB Aachener und Muenchener Beteiligungs AG 100 72,297
Asko Deutsche Kaufhaus AG 100 73,743
BASF AG 1,250 356,145
Bayer AG 15,000 527,933
Bayerische Vereinsbank AG 3,728 104,379
Beiersdorf AG 100 98,455
Daimler-Benz AG 1,050 563,474
Degussa Benz AG 250 84,867
Deutsche Bank AG 10,600 502,307
Deutsche Lufthansa AG 700 99,146
Dresdner Bank AG 9,050 227,217
Heidelberger Zement AG 144 98,808
Hochtief AG 288 128,715
Karstadt AG 400 159,316
Linde AG 200 129,675
M.A.N. AG 400 100,296
Mannesmann AG 850 292,738
Merck KGAA 2,105 79,551
Muenchener Rueckver 150 306,605
Preussag AG 600 151,232
RWE Aktiengesellschaft 12,500 445,448
SAP AG 1,096 161,501
Schering AG 1,400 101,538
Siemens AG 11,500 623,033
Thyssen AG 750 137,282
Veba AG 5,921 314,827
Viag AG 500 199,146
Volkswagen AG 600 223,398
-----------
7,058,701
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
HONG KONG -- 3.2%
Bank of East Asia, Ltd. 38,280 $ 139,973
Cathay Pacific Airways, Ltd. 46,000 84,398
Cheung Kong Holdings, Ltd. 50,000 360,165
China Light & Power Co., Ltd. 39,000 176,872
Hang Seng Bank, Ltd. 37,300 375,916
Hong Kong & China Gas Co., Ltd. 74,400 118,721
Hong Kong Telecommunications, Ltd. 224,000 402,300
Hong Kong & Shanghai Hotels,
Ltd. 44,000 75,044
Hopewell Holdings, Ltd. 80,000 43,414
Hutchinson Whampoa, Ltd. 75,000 471,930
New World Development Co.,
Ltd. 29,000 134,518
Shangri-La Asia, Ltd. 28,000 39,253
Sun Hung Kai Properties, Ltd. 47,000 475,192
Swire Pacific, Ltd. 11,000 41,288
Television Broadcasts, Ltd. 36,500 312,439
The Wharf Holdings, Ltd. 44,000 157,478
-----------
3,408,901
-----------
ITALY -- 2.7%
Assicurazioni Generali SPA 20,500 471,794
Banca Commerciale Italiana SPA 36,000 72,188
Banco Ambrosiano Veneto SPA 9,000 24,111
Benetton Group SPA 6,500 83,789
Credito Italiano SPA 57,500 67,233
Edison SPA 18,000 108,398
Eni SPA 19,000 457,904
Fiat SPA-PRIV 96,000 168,125
Fiat SPA-D 19,000 32,409
Istituto Bancario San Paola Torino SPA 25,500 164,355
Italgas Sta Italiana Per Il Gas SPA 22,000 81,999
Mediobanca SPA 15,500 98,237
Montedison SPA* 150,000 87,012
Pirelli SPA 40,000 66,797
Riunione Adriatica Disicurta RAS SPA 9,250 95,421
Sirti SPA 6,500 41,683
SNIA BPD SPA 35,000 39,124
Telecom Italia SPA 145,000 311,051
Telecom Italia-RNC 40,000 68,880
Telecom Italia Mobile SPA 138,031 307,784
-----------
2,848,294
-----------
</TABLE>
See Notes to Financial Statements.
61
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
JAPAN -- 39.0%
Ajinomoto Co., Inc. 36,000 $ 430,096
Aoki Corp.* 25,000 92,795
Asahi Bank, Ltd. 42,000 486,457
Asahi Chemical Industry Co., Ltd. 61,000 435,039
Asahi Glass Co., Ltd. 23,000 274,783
Ashikaga Bank, Ltd. 20,000 126,402
Bank of Tokyo -- Mitsubishi Ltd. 54,000 1,250,899
Bank of Tokyo -- Mitsubishi Ltd. 29,600 688,372
Bank of Yokohama, Ltd. 24,000 217,784
Bridgestone Corp. 22,000 419,334
Canon, Inc. 13,000 270,315
Chiba Bank, Ltd. 12,000 105,718
Chugai Pharmaceutical Co., Ltd. 14,000 136,617
Citizen Watch Co., Ltd. 18,000 149,877
Dai Nippon Printing Co., Ltd. 20,000 386,685
Daiei, Inc. 18,000 216,689
Daikin Industries, Ltd. 14,000 153,215
Daiwa House Industry Co., Ltd. 13,000 201,550
Daiwa Securities Co., Ltd. 35,000 450,068
Denki Kagaku Kogyo, K.K. 24,000 86,676
Fanuc, Ltd. 6,300 250,506
Fuji Bank, Ltd. 58,000 1,248,336
Fuji Photo Film Co., Ltd. 10,000 315,549
Fujita Corp. 9,000 41,860
Fujitsu, Ltd. 43,000 392,157
Furukawa Eletric Co., Ltd. 38,000 226,995
Gunma Bank, Ltd. 20,000 222,526
Hitachi, Ltd. 77,000 716,279
Honda Motor Co., Ltd. 20,000 518,012
Industrial Bank of Japan 45,000 1,116,279
Ito-Yokado Co., Ltd. 9,000 542,544
Itochu Corp. 56,000 391,208
Japan Airlines Co., Ltd.* 58,000 469,184
Japan Energy Corp. 45,000 167,031
Joyo Bank, Ltd. 17,000 128,837
Jusco Co., Ltd. 11,000 360,146
Kajima Corp. 28,000 288,554
Kaneka Corp. 21,000 141,149
Kansai Electric Power Co., Inc. 16,800 384,569
Kao Corp. 20,000 269,950
Kawasaki Kisen Kaisha, Ltd.* 12,000 40,492
Kawasaki Steel Corp. 71,000 255,768
Kinki Nippon Railway Co., Ltd. 53,560 385,398
Kirin Brewery Co., Ltd. 29,000 354,400
Komatsu, Ltd. 21,000 206,840
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
JAPAN (CONTINUED)
Kubota Corp. 67,000 $ 441,778
Kumagai Gumi Co., Ltd. 26,000 104,332
Kyocera Corp. 4,000 282,718
Kyowa Hakko Kogyo Co., Ltd. 21,000 201,094
Kyushu Electric Power Co. 90 2,027
Marubeni Corp. 38,000 207,934
Marui Co., Ltd. 11,000 243,776
Matsushita Electric Industrial Co., Ltd. 40,000 744,186
Meiji Seika Kaisha, Ltd. 24,000 148,618
Misawa Homes Co., Ltd. 6,000 58,550
Mitsubishi Chemical Corp. 40,000 184,587
Mitsubishi Corp. 38,000 499,042
Mitsubishi Electric Corp. 51,000 355,349
Mitsubishi Estate Co., Ltd. 30,000 413,133
Mitsubishi Heavy Industries, Ltd. 78,000 677,921
Mitsubishi Trust & Banking Corp. 23,000 388,053
Mitsui Engineering & Shipbuilding Co., Ltd.* 48,000 146,211
Mitsui Fudosan Co., Ltd. 17,000 229,457
Mitsui Osk Lines, Ltd.* 29,000 99,973
Mitsui Toatsu Chemicals, Inc. 22,000 86,876
Mitsui Trust and Banking Co., Ltd. 11,000 128,409
Mitsukoshis, Ltd. 24,000 256,088
Nagoya Railroad Co., Ltd. 28,000 142,745
NEC Corp. 37,000 401,550
New Oji Paper Co., Ltd. 32,000 276,079
Nichirei Corp. 16,000 114,546
Nippon Express Co., Ltd. 25,000 243,958
Nippon Light Metal Co., Ltd. 37,000 209,886
Nippon Oil Co., Ltd. 67,000 453,999
Nippon Sheet Glass Co., Ltd. 25,000 122,435
Nippon Steel Corp. 121,000 414,920
Nippon Yusen K.K. 26,000 150,333
Nippondenso Co., Ltd. 31,000 672,868
Nissan Motors Co., Ltd. 45,000 399,316
NKK Corp. 130,000 393,616
Nomura Securities Co., Ltd. 46,000 897,766
Odakyu Electric Railway Co., Ltd. 40,870 275,076
Olympus Optical Co., Ltd. 15,000 150,479
Osaka Gas Co. 47,000 171,883
Penta-Ocean Construction Co.,
Ltd. 15,000 101,094
Rohm Co., Ltd. 4,000 264,113
Sakura Bank, Ltd. 63,000 700,958
Sankyo Co., Ltd. 4,000 103,602
Sanyo Electric, Co., Ltd. 65,000 396,580
Sekisui Chemical Co., Ltd. 21,000 256,635
Sekisui House, Ltd. 17,000 193,799
</TABLE>
See Notes to Financial Statements.
62
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK (CONTINUED)
JAPAN (CONTINUED)
Seven-Eleven Japan Co., Ltd. 800 $ 50,999
Sharp Corp. 28,000 490,287
Shimizu Corp. 37,000 408,299
Shizuoka Bank, Ltd. 11,000 141,450
Showa Denko K.K.* 43,000 132,549
Sony Corp. 8,000 526,037
Sumitomo Bank, Ltd. 61,000 1,179,389
Sumitomo Chemical Co., Ltd. 44,000 209,868
Sumitomo Corp. 32,000 284,250
Sumitomo Electrical Industries,
Ltd. 29,000 415,230
Sumitomo Metal Industries, Ltd. 66,000 202,244
Sumitomo Metal Mining Co., Ltd. 11,000 95,203
Taisho Pharmaceutical Co., Ltd. 19,000 410,670
Takashimaya Co., Ltd. 16,000 248,062
Takeda Chemical Industries, Ltd. 24,000 424,624
Tobu Railway Co., Ltd. 52,000 340,976
Tohoku Electric Power Co., Inc. 4,500 100,547
Tokai Bank, Ltd. 41,000 530,962
Tokio Marine & Fire Insurance
Co., Ltd. 41,000 545,919
Tokyo Electric Power Co., Inc. 19,200 486,785
Tokyo Gas Co., Inc. 60,000 218,878
Tokyu Corp. 44,000 335,066
Toppan Printing Co., Ltd. 30,000 437,757
Toray Industries, Inc. 43,000 296,471
Tostem Corp. 6,000 176,744
Toto, Ltd. 10,000 150,480
Toyobo Co., Inc. 48,000 179,913
Toyota Motor Co. 69,000 1,724,210
Yamaichi Securities Co., Ltd. 35,000 240,037
Yamanouchi Pharmaceutical Co., Ltd. 13,000 282,171
Yamato Transport Co., Ltd. 25,000 294,118
Yasuda Trust & Banking Co., Ltd. 24,000 151,683
-----------
41,134,166
-----------
MALAYSIA -- 2.4%
AMMB Holdings BHD 12,000 168,303
DCB Holdings BHD 23,000 78,802
Edaran Otomobil Nasional BHD 11,000 105,349
Golden Hope Plantations BHD 49,000 76,185
Hong Leong Properties BHD 53,000 61,591
Land & General BHD 28,000 69,004
Magnum Corp. Berhad 55,500 93,853
Malayan Banking BHD 28,000 269,285
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
MAYLASIA (CONTINUED)
Malaysian International Shipping
Corp., BHD 30,000 $ 93,168
Multi Purpose Holdings BHD 46,000 74,101
Perusahaan Otomobil Nasional
BHD Proton 25,000 136,245
Public Bank Berhad 39,000 107,834
Resorts World BHD 25,000 143,258
Sime Darby Berhad 62,000 171,428
Technology Resources (Industries) BHD* 21,000 73,212
Telekom Malaysia BHD 41,000 364,737
Tenaga Nasional BHD 64,000 269,285
United Engineers (Malaysia) BHD 17,000 117,852
YTL Corp. Berhad 19,500 101,583
-----------
2,575,075
-----------
NETHERLANDS -- 4.0%
ABN AMRO Bank NV 7,666 411,187
Elsevier NV 14,035 212,857
ING Groep (Inte'le Neder) NV 20,358 507,833
Koninklijke Ptt Nederland NV 4,500 170,224
Philips Electronics NV 9,930 322,714
Royal Dutch Petroleum Co.,
Den Haag NV 12,586 1,942,714
Unilever NV 4,614 667,345
-----------
4,234,874
-----------
SINGAPORE -- 1.8%
Amcol Holdings, Ltd. 3,000 6,638
City Developments, Ltd. 14,000 109,220
Cycle & Carriage, Ltd. 4,000 42,837
D.B.S. Land, Ltd. 15,000 51,489
Development Bank of Singapore, Ltd. 14,000 174,752
First Capital Corporation, Ltd. 7,000 17,376
Fraser & Neave, Ltd. 6,600 68,340
Hotel Properties, Ltd. 11,000 19,504
Jurong Shipyard, Ltd. 2,000 10,142
Keppel Corp., Ltd. 12,000 100,426
Natsteel, Ltd. 10,000 19,858
Neptune Orient Lines, Ltd. 36,000 37,787
Oversea-Chinese Banking Corp.,
Ltd. 20,000 234,043
Parkway Holdings, Ltd. 3,000 8,936
Singapore Airlines, Ltd. 26,000 274,752
Singapore Telecommunications,
Ltd. 120,000 320,000
Singapore Press Holdings 7,000 137,518
</TABLE>
See Notes to Financial Statements.
63
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
Common Stock (Continued)
Singapore (Continued)
Straits Trading Co., Ltd 14,000 $ 36,738
United Industrial Corp., Ltd. 37,000 37,787
United Overseas Bank, Ltd. 17,232 164,987
United Overseas Land, Ltd. 4,000 7,035
-----------
1,880,165
-----------
SPAIN -- 1.9%
Autopistas Concesionaria
Espanola SA 4,464 51,842
Banco Bilbao Vizcaya SA 4,783 193,482
Banco Central Hispano Americano SA 4,066 82,714
Banco Santander SA 3,050 142,159
Corporacion Bancario de Espana SA 2,474 107,792
Corporacion Financiera Alba SA 686 56,997
Empresa Nacional de Electricdad SA 4,627 288,151
Fomento De Construcciones y
Contratas SA 707 58,412
Gas Natural SDG SA 748 156,829
Iberdrola SA 25,428 260,622
Repsol SA 5,801 201,430
Tabacalera SA 861 43,285
Telefonica De Espana SA 18,224 335,219
-----------
1,978,934
-----------
SWITZERLAND -- 5.8%
ABB AG 200 247,284
Schweizerische Bankgesellschaft (SBG) 1,010 528,155
Ciba-Geigy AG 550 669,928
Ciba-Geigy AG-B 50 60,623
CS Holding 3,860 366,885
Holderbank Financiere Glarus AG 329 262,780
Nestle SA, Cham et Vevey 788 899,403
Roche Holding AG Basel 138 1,052,085
Roche Holding AG Basel-Bearer 37 459,545
Sandoz AG 670 765,791
Schweizerische Rueckver-
sicherungs -- Gesellschaft 250 256,589
Schweizerischer Bankverein 1,500 295,926
Zurich Versicherungs --
Gesellschaft 800 217,891
-----------
6,082,885
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
SWEDEN -- 2.1%
AGA AB 6,050 $ 107,434
ASEA AB 1,600 169,270
ASEA AB Series 'B' 350 36,922
AB Astra 12,700 558,119
AB Electrolux 600 30,113
AB Skanska/Frueher 2,500 88,224
Enskilda Banken 12,000 95,711
Foersaekrings AB 2,100 55,463
Mauritz AB 702 64,971
Stadshypotek AB 2,193 48,843
Stora Kopparbergs Berglags AB 11,650 153,405
Svenska Cellulosa AB 7,200 147,901
Svenska Handelsbanken 4,800 100,045
Swedish Match AB* 9,050 28,056
Telefon AB L.M. Ericsson 17,500 376,599
Volvo 9,050 205,873
----------
2,266,949
----------
UNITED KINGDOM -- 15.6%
Abbey National 29,254 245,309
Arjo Wiggins Appleton P.L.C. 28,604 78,032
Barclays P.L.C. 29,024 347,751
Bass P.L.C. 20,791 260,709
BAT Industries P.L.C. 61,989 481,376
Bicc P.L.C. 15,116 72,632
Boc Group P.L.C. 12,224 175,072
Boots Co., P.L.C. 19,729 177,058
British Aerospace P.L.C. 13,032 197,350
British Airways P.L.C. 25,984 223,125
British Gas P.L.C. 87,820 245,018
British Petroleum Co., P.L.C. 108,662 950,765
British Sky Broadcasting Group
P.L.C. 30,432 207,546
British Steel P.L.C. 48,774 124,362
British Telecommunications
P.L.C. 117,681 631,123
BTR P.L.C. 77,651 305,110
Cable & Wireless P.L.C. 48,470 320,047
Cadbury Schweppes P.L.C. 21,655 170,847
Caradon P.L.C. 21,119 70,706
Coats Viyella P.L.C. 19,526 52,056
Commercial Union P.L.C. 16,588 149,126
De La Rue P.L.C. 2,677 24,689
East Midlands Electricity 5,255 42,437
Forte P.L.C. 28,090 163,273
General Accident P.L.C. 10,913 110,456
General Electric Co., P.L.C. 60,816 327,099
</TABLE>
See Notes to Financial Statements.
64
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
COMMON STOCK (CONTINUED)
UNITED KINGDOM (CONTINUED)
Glaxo Wellcome P.L.C. 62,264 $ 836,252
Grand Metropolitan P.L.C. 47,425 313,882
Great Universal Stores P.L.C. 19,754 200,246
Guinness P.L.C. 39,631 287,483
Hanson P.L.C. 110,228 308,390
HSBC Holdings P.L.C. 53,832 829,094
Imperial Chemical Industries
P.L.C. 18,165 221,867
J. Sainsbury P.L.C. 32,897 193,253
Kingfisher P.L.C. 16,646 166,934
Ladbroke Group P.L.C. 32,024 89,347
Land Securities P.L.C. 15,836 152,920
Legal & General Group P.L.C. 9,391 97,380
Lloyds TSB P.L.C. 98,236 479,637
Marks & Spencer P.L.C. 63,580 463,673
National Grid Group P.L.C. 29,393 77,678
National Power P.L.C. 26,998 217,604
Pearson P.L.C. 15,545 159,989
Peninsular & Oriental Steam
Navigation Co. 17,264 130,050
Prudential Corp., P.L.C. 37,688 237,171
Rank Organisation P.L.C. 23,567 181,914
Redland P.L.C. 23,527 146,232
Reed International P.L.C. 14,746 246,162
Reuters Holdings P.L.C. 40,402 487,834
Rexam P.L.C. 6,400 33,629
RMC Group P.L.C. 10,882 170,864
Rolls-Royce P.L.C. 38,075 132,196
Royal Bank of Scotland Group
P.L.C. 13,509 103,229
RTZ Corp. P.L.C. 22,933 338,755
Safeway P.L.C. 17,868 96,103
Schroders P.L.C. 4,883 102,555
Scottish & Newcastle P.L.C. 14,811 151,287
Scottish Power P.L.C. 18,035 84,981
Sears P.L.C. 58,689 90,058
Smith Industries P.L.C. 17,363 189,465
Smithkline Beecham P.L.C. 48,923 522,094
Tesco P.L.C. 38,477 175,340
Thames Water P.L.C. 14,032 123,320
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------ ------
<S> <C> <C>
UNITED KINGDOM (CONTINUED)
Thorn EMI P.L.C. 11,495 $ 319,642
Unilever P.L.C. Holdings 13,489 267,622
United Biscuits Holdings P.L.C. 12,349 40,962
United Utilities P.L.C. 11,214 94,209
Vodafone Group P.L.C. 68,537 254,427
Wolseley P.L.C. 12,008 84,687
Zeneca Group P.L.C. 19,153 422,448
-----------
16,475,939
-----------
TOTAL COMMON STOCK (Cost $95,156,813) 101,865,709
-----------
RIGHTS AND WARRANTS* -- 0.2%
AUSTRALIA
MIM Holdings Rights 8,415 0
-----------
DENMARK
SAS Danmark Rights 7,680 5,890
-----------
FRANCE
Carrefour Supermarch Rights 594 164,155
-----------
GERMANY
Daimler Rights 15 2
Viag Rights 500 0
-----------
2
-----------
HONG KONG
Hong Kong China Gas Warrants 6,200 0
-----------
SINGAPORE
Oversea -- Chinese Banking
Rights 900 7,940
United Overseas Rights 400 0
-----------
7,940
-----------
TOTAL RIGHTS AND WARRANTS
(Cost $131,104) 177,987
-----------
TEMPORARY INVESTMENTS -- 2.9%
Dreyfus Cash Management Plus #719 1,699,600 1,699,600
Goldman Sachs Financial Square Money Market
Portfolio 1,389,840 1,389,840
-----------
TOTAL TEMPORARY INVESTMENTS
(Cost $3,089,440) 3,089,440
-----------
TOTAL INVESTMENTS -- 99.6%
(Cost $98,377,357) 105,133,136
-----------
</TABLE>
See Notes to Financial Statements.
65
HARRIS INSIGHT FUNDS
INTERNATIONAL FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE+
------
<S> <C>
OTHER ASSETS AND LIABILITIES -- 0.4%
Dividends receivable and other assets $ 556,975
Receivable for capital stock sold 236,477
Receivable for investments sold 41,929
Unrealized foreign exchange gain/loss 1,225
Payable for capital stock redeemed (10,500)
Payable for investments purchased (200,531)
Accrued expenses (Note 4) (164,765)
-----------
OTHER ASSETS AND LIABILITIES, NET 460,810
-----------
NET ASSETS -- 100%
Applicable to 6,838,317 and 13,336 shares of beneficial
interest outstanding of Institutional Class and Class
A, respectively, $.001 par value (Note 9) $105,593,946
------------
------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
INSTITUTIONAL CLASS SHARE
($105,388,451/6,838,317) $15.41
------
------
NET ASSET VALUE AND REDEMPTION PRICE PER CLASS A SHARE
($205,495/13,336) $15.41
------
------
MAXIMUM PUBLIC OFFERING PRICE PER CLASS A SHARE (Note 6) $16.14
------
------
</TABLE>
- ----------
+ See Note 2a to the Financial Statements.
* Non-income producing security.
See Notes to Financial Statements.
66
HARRIS INSIGHT FUNDS
HEMISPHERE FUND
STATEMENT OF NET ASSETS (UNAUDITED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
-------- ----------
<S> <C> <C>
U.S. Securities -- 42.1%
Common Stock -- 39.9%
Aerospace -- 0.4%
Litton Industries, Inc. 800 $ 34,800
---------
AIR TRANSPORTATION -- 1.4%
AMR Corp.* 1,500 136,500
---------
APPAREL -- 1.2%
Nike, Inc. 1,200 123,300
---------
AUTOMOTIVE -- 1.9%
Chrysler Corp. 1,300 80,600
Ford Motor Co. 800 25,900
General Motors Corp. 1,700 89,037
---------
195,537
---------
BEVERAGES -- 1.3%
Pepsico, Inc. 3,600 127,350
---------
BROADCASTING -- 1.2%
NYNEX Corp. 2,500 118,750
---------
BUSINESS EQUIPMENT AND SERVICE -- 1.5%
Comdicso, Inc. 3,200 85,200
Harris Corp. 1,100 67,100
---------
152,300
---------
CHEMICALS -- 0.7%
Olin Corp. 800 71,400
---------
COMPUTER AND OFFICE EQUIPMENT -- 0.1%
Virco Manufacturing Corp. 1,200 11,550
---------
CONGLOMERATES -- 1.1%
Textron, Inc. 1,400 111,825
---------
ELECTRONICS -- 3.1%
Avnet, Inc. 2,300 96,887
Digital Equipment Corp.* 2,000 90,000
Esco Electronics Corp. Trust
Receipt 1,000 11,375
International Business
Machines Corp. 700 69,300
Sun Microsystems, Inc.* 800 47,100
---------
314,662
---------
ENERGY -- 1.6%
Mobil Corp. 1,000 112,125
Valero Energy Corp. 2,000 50,000
---------
162,125
---------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
--------- -----------
<S> <C> <C>
FINANCIAL SERVICES -- 0.6%
Aviall 1,000 $ 9,250
Travelers Group 1,200 54,750
---------
64,000
---------
FOOD AND AGRICULTURE -- 1.9%
IBP Inc. 4,600 127,075
Sara Lee Corp. 1,100 35,613
Supervalu, Inc. 1,000 31,500
---------
194,188
---------
FINANCIAL SERVICES -- 6.9%
Bankamerica Corp. 1,700 128,775
Bear Stearns Co. 5,040 119,070
Chase Manhattan Corp. 1,900 134,188
Cigna Corp. 1,300 153,238
Merrill Lynch & Co., Inc. 600 39,075
NationsBank Corp. 1,400 115,675
---------
690,021
---------
HEALTH CARE -- 1.4%
Baxter International, Inc. 2,900 137,025
---------
HOSPITAL SUPPLIES AND SERVICES -- 1.0%
Becton, Dickinson & Co. 1,300 104,325
---------
INSURANCE -- 0.4%
Aetna Life & Casualty Co. 600 42,900
---------
INDUSTRIAL EQUIPMENT -- 0.2%
Deere & Co. 600 24,000
---------
MACHINERY AND HEAVY EQUIPMENT -- 0.5%
Gardner Denver Machinery,
Inc. 1,700 44,838
---------
MULTI-INDUSTRY -- 1.1%
Gencorp, Inc. 7,000 105,875
---------
OIL DOMESTIC -- 0.4%
El Paso Natural Gas 1,000 38,500
OIL -- INTERNATIONAL -- 3.3%
Exxon Corp. 1,400 121,625
Phillips Petroleum Co. 3,000 125,625
Texaco, Inc. 1,000 83,875
---------
331,125
---------
</TABLE>
See Notes to Financial Statements.
67
HARRIS INSIGHT FUNDS
HEMISPHERE FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
------- ----------
<S> <C> <C>
PHARMACEUTICALS -- 2.3%
Bristol-myers Squibb Co. 1,000 $ 90,000
Merck & Co., Inc. 900 58,163
Rhone Poulenc Rorer 1,000 67,125
Schering Plough Corp. 300 18,825
---------
234,113
---------
RETAIL -- 0.5%
Sears, Roebuck & Co. 1,000 48,625
---------
Telecommunications -- 2.3%
AT&T CORP. 1,900 117,800
Sprint Corp. 2,800 117,600
---------
235,400
---------
TOBACCO -- 0.6%
Philip Morris Cos., Inc. 600 62,400
---------
UTILITIES -- ELECTRIC -- 1.0%
Edison International 5,800 102,224
---------
TOTAL U.S. COMMON STOCK (Cost $3,909,732) 4,019,658
---------
TEMPORARY INVESTMENTS -- 2.2%
Dreyfus Cash Management Plus
#719 157,244 157,244
Goldman Sachs Financial
Square Money Market Portfolio 60,323 60,323
---------
TOTAL U.S. TEMPORARY INVESTMENTS
(Cost $217,567) 217,567
---------
TOTAL U.S. SECURITIES (Cost $4,127,299) 4,237,225
---------
CANADIAN SECURITIES -- 28.2%
COMMON STOCK -- 28.2%
COMMUNICATION MEDIA -- 0.8%
Thomson Corp. 5,300 81,837
---------
CONGLOMERATES -- 1.0%
Canadian Pacific Ltd. 4,500 97,969
---------
CONSUMER PRODUCTS -- 0.9%
CCL Industries, Inc. 10,000 94,036
---------
FINANCIAL SERVICES -- 0.9%
Newcourt Credit Group, Inc. 3,700 89,488
---------
GOLD AND SILVER -- 3.5%
Bre-x Minerals Ltd.* 5,500 91,163
Dayton Mining Corp.* 15,000 90,011
Placer Dome, Inc. 3,300 81,866
Teck Corp. 4,300 88,580
---------
351,620
---------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------- ----------
<S> <C> <C>
INDUSTRIAL PRODUCTS -- 7.5%
Ats Automation Tooling
System* 3,700 $ 84,614
Bombardier, Inc. 8,700 127,651
CAE, Inc. 14,000 118,844
Cinram Ltd. 5,000 108,306
Dofasco, Inc. 5,800 84,464
Northern Telecom Ltd. 2,200 116,722
Nova Corporation 7,900 71,398
United Dominion Industries
Ltd. 2,000 45,737
---------
757,736
---------
MERCHANDISING -- 1.8%
Extendicare, Inc.* 7,500 90,834
Loewen Group, Inc. 3,100 93,465
---------
184,299
---------
METALS AND MINING -- 3.8%
Alcan Aluminium Ltd. 3,600 109,067
Cameco Corp. 2,250 102,168
Falconbridge, Ltd. 4,000 86,352
Noranda, Inc. 4,100 83,560
---------
381,147
---------
OIL AND GAS -- 4.6%
Berkley Petroleum
Corporation* 8,000 106,842
Canadian Natural Resources
Ltd.* 3,300 60,977
Northstar Energy Corporation* 9,300 90,176
Renaissance Energy Ltd.* 4,500 118,222
Startech Energy, Inc.* 13,000 86,096
---------
462,313
---------
PAPER-FOREST PRODUCTS -- 1.3%
Donohue, Inc. 4,300 55,697
International Forest Products
Class A* 9,100 79,912
---------
135,609
---------
UTILITIES -- 2.1%
BCE, Inc. 3,700 144,723
Fonorola, Inc.* 7,200 65,862
---------
210,585
---------
TOTAL CANADIAN SECURITIES (Cost $2,874,004) 2,846,639
---------
</TABLE>
See Notes to Financial Statements.
68
HARRIS INSIGHT FUNDS
HEMISPHERE FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE+
-------- ---------
<S> <C> <C>
MEXICAN SECURITIES -- 29.3%
COMMON STOCK -- 27.2%
AUTO PARTS -- 1.1%
Corporacion Industrial San
Luis S.a. De C.V. 18,000 $ 109,895
---------
BEVERAGES -- 3.5%
Coca Cola Femsa S.A. de C.V. 25,000 72,533
Fomento Economico Mexicano,
S.A. de C.V. 37,000 105,645
Grupo Modelo S.A. -- Series C 38,000 178,500
---------
356,678
---------
BROADCASTING -- 2.2%
Grupo Televisa S.A. de C.V.* 5,000 78,289
Telefonos De Mexico S.A. de
C.V. 85,000 144,053
---------
222,342
---------
BUILDING AND CONSTRUCTION -- 2.5%
Apasco A, S.A. de C.V. 25,000 137,171
Empresas ICA Sociedad
Controladora S.A.* 8,000 112,105
---------
249,276
---------
ELECTRONICS -- 1.3%
Grupo Elektra S.A. de C.V. 18,000 129,553
---------
FOOD AND AGRICULTURE -- 1.4%
Grupo Industrial Maseca S.A.
de C.V. Series B 137,000 142,047
---------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE+
------- ---------
<S> <C> <C>
METALS AND MINING -- 5.3%
Altos Hornos de Mexico S.A. de
C.V.* 17,000 $ 138,013
Grupo Mexico S.A. -- Series B* 37,000 113,434
Hylsamex S.A. de C.V. Series B 36,000 157,026
Industrias Penoles S.A. -- CP 27,000 123,276
---------
531,749
---------
MULTI-INDUSTRY -- 3.1%
Alfa S.A. de C.V. Ser'A'NPV
(CPO) 34,573 155,124
Grupo Carso S.A. de C.V.* 22,000 155,447
---------
310,571
---------
PAPER AND FOREST PRODUCTS -- 2.2%
Kimberly-clark de Mexico
Series A 12,000 217,895
---------
RAW MATERIALS -- 1.5%
Cemex S.A. de C.V. (CPO) 42,000 151,697
---------
RETAIL -- 1.0%
Cifra S.A. de C.V.* 74,000 105,158
---------
TRANSPORTATION -- 0.9%
Transportacion Maritima
Mexicana S.A. de C.V. 12,000 86,842
---------
TOBACCO -- 1.2%
Empresas la Moderna S.A de C.V. 28,000 124,895
---------
TOTAL MEXICAN COMMON STOCK
(Cost $2,749,026) 2,738,598
---------
</TABLE>
See Notes to Financial Statements.
69
HARRIS INSIGHT FUNDS
HEMISPHERE FUND
STATEMENT OF NET ASSETS (UNAUDITED)(CONTINUED)
JUNE 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COUPON PAR
RATE MATURITY (000) VALUE+
------- --------- ----- -----------
<S> <C> <C> <C> <C>
TREASURY BILLS -- 2.1%
Cetes B960718 (Cost $214,087) 35.60% 07/18/96 P1,600 $ 210,526
-----------
TOTAL MEXICAN SECURITIES (Cost $2,963,113) 2,949,124
-----------
TOTAL INVESTMENTS -- 99.6% (Cost $9,964,416) 10,032,988
-----------
OTHER ASSETS AND LIABILITIES -- 0.4%
Dividends and interest receivable and other assets 67,066
Accrued expenses (Note 4) (28,885)
-----------
OTHER ASSETS AND LIABILITIES, NET 38,181
-----------
NET ASSETS -- 100.0%
Applicable to 1,000,001 and 5,296 shares outstanding of Institutional Class
and Class A, respectively, $.001 par value; 100,000,000 authorized shares
(Note 9) $10,071,169
===========
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER INSTITUTIONAL CLASS SHARE
($10,018,128/1,000,001) $10.02
======
NET ASSET VALUE AND REDEMPTION PRICE PER CLASS A SHARE ($53,041/5,296) $10.02
======
MAXIMUM PUBLIC OFFERING PRICE PER CLASS A SHARE (Note 6) $10.49
======
</TABLE>
+ See Note 2a to the Financial Statements.
* Non-income producing.
P-Mexican Pesos.
See Notes to Financial Statements
70
[This Page Intentionally Left Blank]
71
HARRIS INSIGHT FUNDS
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE PERIOD ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
MONEY MARKET FUNDS FIXED INCOME FUNDS
--------------------------------------- -----------------------------------------------------------
SHORT/ INTERMEDIATE
GOVERNMENT MONEY TAX-EXEMPT INTERMEDIATE BOND TAX-EXEMPT TAX-EXEMPT CONVERTIBLE
MONEY FUND FUND MONEY FUND FUND FUND(3) FUND(1) FUND(1) FUND
---------- ---- ---------- ----------- -------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $7,147,386 $21,851,948 $10,389,070 $ 6,363,066 $ 332,583 $ 3,932,316 $ 3,023,894 $ 22,151
Dividends -- -- -- -- -- -- -- 8,392
Foreign taxes
withheld -- -- -- -- -- -- -- --
---------- ----------- ----------- ----------- --------- ----------- ----------- --------
Total investment
income 7,147,386 21,851,948 10,389,070 6,363,066 332,583 3,932,316 3,023,894 30,543
---------- ----------- ----------- ----------- --------- ----------- ----------- --------
EXPENSES (NOTE 2D):
Investment advisory
fee (Note 4) 151,561 415,750 329,473 690,036 34,185 464,711 334,475 4,098
Rule 12b-1 fee --
Class A (Note 5) 399,075 850,961 332,430 270 6 44 -- --
Shareholder services
fee (Note 4) 13,059 10,996 6,769 7,983 135 3,400 2,950 6,443
Administration fee
(Note 4) 160,533 499,174 383,853 116,732 5,643 90,829 64,202 683
Custodian fee (Note
4) 38,970 54,828 50,901 16,500 2,253 16,809 14,669 2,927
Directors' fees and
expenses 8,694 22,038 18,004 5,789 325 4,650 3,346 24
Audit fee 5,145 16,152 14,053 4,357 242 3,485 2,507 18
Legal fee 4,324 10,751 8,778 2,759 157 2,257 1,624 19
Amortization of
organization
expenses (Note 2h) -- -- -- 430 832 1,336 1,336 --
Reports to
shareholders 4,493 8,340 7,014 1,676 84 1,206 868 6
Registration fees (13,926) (4,201) (8,749) 35,965 5,439 27,225 14,097 2,118
Miscellaneous 7,369 22,848 13,646 5,822 126 15,251 12,395 1,200
---------- ----------- ----------- ----------- --------- ----------- ----------- --------
Total expenses 779,297 1,907,637 1,156,172 888,319 49,427 631,203 452,469 17,536
Less fee waivers and
expense
reimbursements
(Notes 4,5) (113,497) (240,094) (88,122) (310,241) (19,303) (25,067) (16,323) (12,845)
---------- ----------- ----------- ----------- --------- ----------- ----------- --------
Net expenses 665,800 1,667,543 1,068,050 578,078 30,124 606,136 436,146 4,691
---------- ----------- ----------- ----------- --------- ----------- ----------- --------
NET INVESTMENT
INCOME 6,481,586 20,184,405 9,321,020 5,784,988 302,459 3,326,180 2,587,748 25,852
---------- ----------- ----------- ----------- --------- ----------- ----------- --------
NET REALIZED AND
UNREALIZED
GAIN/(LOSS) ON
INVESTMENTS (NOTE 7):
Net realized
gain/(loss) from:
Investment
transactions (88) -- 13 (1,371,544) (151,092) 407,021 2,915,837 20,547
Futures contracts -- -- -- -- -- -- -- --
Foreign currency
transactions -- -- -- -- -- -- -- --
Net change in
unrealized
appreciation/
(depreciation) on:
Investments -- -- -- (6,071,474) 90,438 (6,458,629) (7,942,159) 42,203
Futures contracts -- -- -- -- -- -- -- --
Foreign currency
transactions -- -- -- -- -- -- -- --
Increase in amortized
market discount -- -- 870 -- -- -- -- --
---------- ----------- ----------- ----------- --------- ----------- ----------- --------
NET REALIZED AND
UNREALIZED
GAIN/(LOSS) ON
INVESTMENTS (88) -- 883 (7,443,018) (60,654) (6,051,608) (5,026,322) 62,750
---------- ----------- ----------- ----------- --------- ----------- ----------- --------
INCREASE/(DECREASE) IN
NET ASSETS FROM
OPERATIONS $6,481,498 $20,184,405 $ 9,321,903 $(1,658,030) $ 241,805 $(2,725,428) $(2,438,574) $88,602
========== =========== =========== =========== ========= =========== =========== =======
</TABLE>
(1) For the period 02/26/96 (commencement of operations) to 06/30/96.
(2) For the period 04/09/96 (commencement of operations) to 06/30/96.
(3) For the period 04/16/96 (commencement of operations) to 06/30/96.
See Notes to Financial Statements.
72
<TABLE>
<CAPTION>
EQUITY FUNDS
- ------------------------------------------------------------------------------------------------
EQUITY
EQUITY INCOME GROWTH SMALL-CAP INDEX INTERNATIONAL HEMISPHERE
FUND FUND(1) FUND(1) FUND(1) FUND(1) FUND(1) FUND(2)
- --------- ----------- ----------- ----------- ---------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
$ 154,252 $ 16,610 $ 21,254 $ 181,885 $ 39,695 $ 60,799 $ 33,943
5,093,733 334,424 290,890 655,572 983,276 1,371,709 40,636
-- -- -- -- -- (241,198) (1,998)
- ----------- ----------- ----------- ---------- ---------- ---------- --------
5,247,985 351,034 312,144 837,457 1,022,971 1,191,310 72,581
- ----------- ----------- ----------- ---------- ---------- ---------- --------
1,463,497 70,381 200,051 433,016 109,987 375,925 20,702
578 23 9 12 5 31 28
17,310 3,358 3,358 2,908 2,908 3,358 872
255,622 8,209 22,650 49,030 49,922 45,004 2,739
31,080 2,940 4,959 7,521 7,570 31,916 1,413
12,485 606 1,341 2,615 2,654 2,160 141
9,296 347 1,005 1,960 1,989 1,619 106
6,141 294 651 1,270 1,289 1,049 68
-- 1,379 1,379 1,379 1,336 1,379 909
3,419 227 348 678 689 560 37
122,055 4,484 9,555 15,392 15,483 10,865 3,618
52,826 1,438 2,603 8,162 8,154 52 5,145
1,974,309 93,686 247,909 523,943 201,986 473,918 35,778
- ----------- ----------- ----------- ---------- ---------- ---------- --------
-- -- (2,725) (2,897) (3,462) -- --
- ----------- ----------- ----------- ---------- ---------- ---------- --------
1,974,309 93,686 245,184 521,046 198,524 473,918 35,778
- ----------- ----------- ----------- ---------- ---------- ---------- --------
3,273,676 257,348 66,960 316,411 824,447 717,392 36,803
- ----------- ----------- ----------- ---------- ---------- ---------- --------
39,460,537 1,396,764 3,215,313 1,363,159 2,412,901 307,897 (39,311)
-- -- -- -- 25,899 -- --
-- -- -- -- -- (7,379) (47,664)
(38,102,686) (1,293,445) (1,033,876) 4,768,222 (216,127) 2,223,511 68,572
-- -- -- -- 12,075 -- --
-- -- -- -- -- 1,225 (251)
-- -- -- -- -- -- --
- ----------- ----------- ----------- ---------- ---------- ---------- --------
1,357,851 103,319 2,181,437 6,131,381 2,234,748 2,525,254 (18,654)
- ----------- ----------- ----------- ---------- ---------- ---------- --------
$ 4,631,527 $ 360,667 $ 2,248,397 $6,447,792 $3,059,195 $3,242,646 $18,149
=========== =========== =========== ========== ========== ========== =======
</TABLE>
See Notes to Financial Statements.
73
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
FOR THE PERIOD ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
MONEY MARKET FUNDS FIXED INCOME FUNDS
------------------------------------------ ---------------------------------------------------------------
SHORT/ INTERMEDIATE
GOVERNMENT MONEY TAX-EXEMPT INTERMEDIATE BOND TAX-EXEMPT TAX-EXEMPT CONVERTIBLE
MONEY FUND FUND MONEY FUND FUND FUND(3) FUND(1) FUND(1) FUND
------------ ------------ ------------ ------------ ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE)
IN NET ASSETS
OPERATIONS:
Net Investment
Income/ (Loss) $ 6,481,586 $ 20,184,405 $ 9,321,020 $ 5,784,988 $ 302,459 $ 3,326,180 $ 2,587,748 $ 25,852
Net Realized
Gain/(loss) On
Investment
Transactions,
Futures Contracts
And Foreign Currency
Transactions (88) -- 13 (1,371,544) (151,092) 407,021 2,915,837 20,547
Net Change In
Unrealized
Appreciation/
(depreciation)
Investments On
Futures Contracts,
And Foreign Currency
Transactions -- -- -- (6,071,474) 90,438 (6,458,629) (7,942,159) 42,203
Increase In Amortized
Market Discount -- -- 870 -- -- -- -- --
------------ ------------ ------------ ------------ ----------- ------------ ------------ ----------
Increase/(decrease)
In Net Assets From
Operations 6,481,498 20,184,405 9,321,903 (1,658,030) 241,805 (2,725,428) (2,438,574) 88,602
------------ ------------ ------------ ------------ ----------- ------------ ------------ ----------
DISTRIBUTIONS TO
SHAREHOLDERS (NOTES
2C AND 2E):
Net Investment
Income:
Institutional
Class (911,398) (8,067,377) (6,623,842) (4,813,245) (302,127) (3,324,749) (2,587,748) --
Class A (5,570,188) (12,127,877) (2,697,178) (1,006,217) (332) (1,431) -- (24,509)
------------ ------------ ------------ ------------ ----------- ------------ ------------ ----------
Total DistributionS (6,481,586) (20,195,254) (9,321,020) (5,819,462) (302,459) (3,326,180) (2,587,748) (24,509)
------------ ------------ ------------ ------------ ----------- ------------ ------------ ----------
CAPITAL SHARE
TRANSACTIONS:
Increase/(decrease)
In Net Assets From
Capital Share
Transactions In:
Institutional
Class 11,719,982 212,481,204 262,746,073 262,146,589 29,235,956 230,278,680 166,684,049 --
Class A (63,510,206) (27,441,378) (9,590,747) (48,424,497) 31,832 1,527 -- (146,011)
------------ ------------ ------------ ------------ ----------- ------------ ------------ ----------
Increase/(decrease)
In Net Assets From
Capital Share
Transactions (51,790,224) 185,039,826 253,155,326 213,722,092 29,267,788 230,280,207 166,684,049 (146,011)
------------ ------------ ------------ ------------ ----------- ------------ ------------ ----------
Total
Increase/(decrease)
In Net Assets (51,790,312) 185,028,977 253,156,209 206,244,600 29,207,134 224,228,599 161,657,727 (81,918)
NET ASSETS:
Beginning Of Period 282,792,779 522,425,299 382,716,459 51,814,058 40 100 100 1,170,688
------------ ------------ ------------ ------------ ----------- ------------ ------------ ----------
End Of Period $231,002,467 $707,454,276 $635,872,668 $258,058,658 $29,207,174 $224,228,699 $161,657,827 $1,088,770
============ ============ ============ ============ =========== ============ ============ ==========
</TABLE>
(1) For the period 02/26/96 (commencement of operations) to 06/30/96.
(2) For the period 04/09/96 (commencement of operations) to 06/30/96.
(3) For the period 04/16/96 (commencement of operations) to 06/30/96.
See Notes to Financial Statements.
74
<TABLE>
<CAPTION>
EQUITY FUNDS
- --------------------------------------------------------------------------------
EQUITY
EQUITY INCOME GROWTH SMALL-CAP INDEX INTERNATIONAL HEMISPHERE
FUND FUND(1) FUND(1) FUND(1) FUND(1) FUND(1) FUND(2)
- ------------ ----------- ----------- ------------ ------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,273,676 $ 257,348 $ 66,960 $ 316,411 $ 824,447 $ 717,392 $ 36,803
39,460,537 1,396,764 3,215,313 1,363,159 2,438,800 300,518 (86,975)
(38,102,686) (1,293,445) (1,033,876) 4,768,222 (204,052) 2,224,736 68,321
-- -- -- -- -- -- --
- ------------ ----------- ----------- ------------ ------------ ------------ ------------
4,631,527 360,667 2,248,397 6,447,792 3,059,195 3,242,646 18,149
- ------------ ----------- ----------- ------------ ------------ ------------ ------------
(3,451,578) (241,282) (63,697) (308,510) (789,359) (691,521) --
(260,743) (850) (21) (192) (149) (1,209) --
- ------------ ----------- ----------- ------------ ------------ ------------ ------------
(3,712,321) (242,132) (63,718) (308,702) (789,508) (692,730) --
- ------------ ----------- ----------- ------------ ------------ ------------ ------------
568,180,274 29,366,893 65,537,867 128,031,786 127,702,194 102,843,255 10,000,000
(62,383,904) 7,514 113,740 110,552 51,685 200,575 53,000
- ------------ ----------- ----------- ------------ ------------ ------------ ------------
505,796,370 29,374,407 65,651,607 128,142,338 127,753,879 103,043,830 10,053,000
- ------------ ----------- ----------- ------------ ------------ ------------ ------------
506,715,576 29,492,942 67,836,286 134,281,428 130,023,566 105,593,746 10,071,149
61,256,077 99,050 130 200 200 200 20
- ------------ ----------- ----------- ------------ ------------ ------------ ------------
$567,971,653 $29,591,992 $67,836,416 $134,281,628 $130,023,766 $105,593,946 $10,071,169
- ------------ ----------- ----------- ------------ ------------ ------------ ------------
</TABLE>
See Notes to Financial Statements.
75
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
TAX-EXEMPT SHORT/
GOVERNMENT MONEY MONEY INTERMEDIATE CONVERTIBLE EQUITY
MONEY FUND FUND FUND FUND FUND FUND
------------ ------------ ------------ ----------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS
Net investment income/(loss) $ 16,350,982 $ 35,155,654 $ 14,426,474 $ 2,765,514 $ 74,101 $ 916,856
Net realized gain/(loss) on
investment transactions -- 11,705 (968) 835,603 (2,487) 4,873,879
Net change in unrealized
appreciation/
(depreciation) on investments -- -- -- 2,423,206 159,092 10,034,375
------------ ------------- ------------ ----------- ---------- -----------
Net increase in net assets
resulting from operations 16,350,982 35,167,359 14,425,506 6,024,323 230,706 15,825,110
------------ ------------- ------------ ----------- ---------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTES 2C AND 2E):
Net investment income
Institutional Class (1,525,847) (6,754,027) (9,438,847) -- -- --
Class A (14,825,135) (28,401,627) (4,987,627) (2,736,934) (112,506) (926,271)
Realized net gain/(loss) on
investments -- -- -- -- -- (4,885,308)
------------ ------------- ------------ ----------- ---------- -----------
Total distributions (16,350,982) (35,155,654) (14,426,474) (2,736,934) (112,506) (5,811,579)
------------ ------------- ------------ ----------- ---------- -----------
CAPITAL SHARE TRANSACTIONS:
Net increase/(decrease) in net
assets from capital share
transactions in:
Institutional Class 8,749,235 66,847,015 (24,954,287) -- -- --
Class A 34,807,179 (106,789,241) 47,071,146 4,194,142 (363,477) 12,322,500
------------ ------------- ------------ ----------- ---------- -----------
Increase/(decrease) in net
assets from capital share
transactions 43,556,414 (39,942,226) 22,116,859 4,194,142 (363,477) 12,322,500
------------ ------------- ------------ ----------- ---------- -----------
Total increase/(decrease) in net
assets 43,556,414 (39,930,521) 22,115,891 7,481,531 (245,277) 22,336,031
NET ASSETS:
Beginning of year 239,236,365 562,355,820 360,600,568 44,332,527 1,415,965 38,920,046
------------ ------------- ------------ ----------- ---------- -----------
End of year $282,792,779 $ 522,425,299 $382,716,459 $51,814,058 $1,170,688 $61,256,077
============ ============= ============ =========== ========== ===========
</TABLE>
See Notes to Financial Statements.
76
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES -- CAPITAL STOCK ACTIVITY (UNAUDITED)
FOR THE PERIOD ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
FIXED INCOME FUNDS
----------------------------------------------------------------------
SHORT/ INTERMEDIATE
INTERMEDIATE BOND TAX-EXEMPT TAX-EXEMPT CONVERTIBLE
FUND FUND(2) FUND(1) FUND(1) FUND
------------ ----------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
AMOUNT
INSTITUTIONAL CLASS:
Sold $297,669,790 $29,245,417 $243,357,192 $173,997,421 --
Issued as reinvestment of
dividends 199,747 5,148 309 167 --
Redeemed (35,722,948) (14,609) (13,078,821) (7,313,539) --
------------ ----------- ------------ ------------ ---------
Net Increase/(Decrease) $262,146,589 $29,235,956 $230,278,680 $166,684,049 --
============ =========== ============ ============ =========
CLASS A:
Sold $ 9,057,964 $ 50,601 $ 179,000 -- $ 21,899
Issued as reinvestment of
dividends 524,362 332 -- -- 21,775
Redeemed (58,006,823) (19,101) (177,473) -- (189,685)
------------ ----------- ------------ ------------ ---------
Net Increase/(Decrease) $(48,424,497) $ 31,832 $ 1,527 -- $(146,011)
============ =========== ============ ============ =========
=========================================================================================================
SHARES
INSTITUTIONAL CLASS:
Sold 29,064,726 2,931,732 22,699,901 16,498,613 --
Issued as reinvestment of
dividends 38,362 518 29 17 --
Redeemed (3,543,742) (1,473) (1,248,517) (714,179) --
------------ ----------- ------------ ------------ ---------
Net Increase/(Decrease) 25,559,346 2,930,777 21,451,413 15,784,451 --
============ =========== ============ ============ =========
CLASS A:
Sold 884,356 5,066 16,967 -- 2,201
Issued as reinvestment of
dividends 51,893 34 -- -- 2,239
Redeemed (5,778,243) (1,912) (16,967) -- (18,802)
------------ ----------- ------------ ------------ ---------
Net Increase/(Decrease) (4,841,994) 3,188 -- -- (14,362)
============ =========== ============ ============ =========
</TABLE>
(1) For the Period 02/26/96 (commencement of operations) to 06/30/96.
(2) For the Period 04/16/96 (commencement of operations) to 06/30/96.
See Notes to Financial Statements.
77
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES -- CAPITAL STOCK ACTIVITY (UNAUDITED)(CONTINUED)
FOR THE PERIOD ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
EQUITY FUNDS
----------------------------------------------------------------------------------------------------
EQUITY
EQUITY INCOME GROWTH SMALL CAP INDEX INTERNATIONAL HEMISPHERE
FUND FUND(1) FUND(1) FUND(1) FUND(1) FUND(1) FUND(2)
------------ ----------- ----------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
AMOUNT
INSTITUTIONAL CLASS:
Sold $599,333,127 $30,937,692 $67,444,971 $133,184,227 $133,514,312 $117,845,265 $10,000,000
Issued as reinvestment
of dividends 112,055 130 13 12,097 8,194 12,005 --
Redeemed (31,264,908) (1,570,929) (1,907,117) (5,164,538) (5,820,312) (15,014,015) --
------------ ----------- ----------- ------------ ------------ ------------ -----------
Net Increase/(Decrease) $568,180,274 $29,366,893 $65,537,867 $128,031,786 $127,702,194 $102,843,255 $10,000,000
============ =========== =========== ============ ============ ============ ===========
CLASS A:
Sold $ 14,189,031 $ 7,477 $ 115,211 $ 114,745 $ 53,446 $ 200,058 $ 53,000
Issued as reinvestment
of dividends 3,264,196 37 21 192 149 517 --
Redeemed (79,837,131) -- (1,492) (4,385) (1,910) -- --
------------ ----------- ----------- ------------ ------------ ------------ -----------
Net Increase/(Decrease) $(62,383,904) $ 7,514 $ 113,740 $ 110,552 $ 51,685 $ 200,575 $ 53,000
============ =========== =========== ============ ============ ============ ===========
================================================================================================================================
SHARES
INSTITUTIONAL CLASS:
Sold 39,303,924 2,310,133 3,964,150 9,327,341 7,984,105 7,524,239 1,000,000
Issued as reinvestment
of dividends 7,446 10 1 819 483 780 --
Redeemed (2,072,743) (118,633) (113,403) (358,469) (348,892) (686,709) --
------------ ----------- ----------- ------------ ------------ ------------ -----------
Net Increase/(Decrease) 37,238,627 2,191,510 3,850,748 8,969,691 7,635,696 6,838,310 1,000,000
============ =========== =========== ============ ============ ============ ===========
CLASS A:
Sold 965,705 7,972 6,583 8,028 3,153 13,296 5,295
Issued as reinvestment
of dividends 234,073 3 1 13 9 34 --
Redeemed (5,360,531) -- (91) (667) (117) -- --
------------ ----------- ----------- ------------ ------------ ------------ -----------
Net Increase/(Decrease) (4,160,753) 7,975 6,493 7,374 3,045 13,330 5,295
============ =========== =========== ============ ============ ============ ===========
</TABLE>
(1) For the Period 02/26/96 (commencement of operations) to 06/30/96.
(2) For the Period 04/09/96 (commencement of operations) to 06/30/96.
See Notes to Financial Statements.
78
HARRIS INSIGHT FUNDS
STATEMENTS OF CHANGES -- CAPITAL STOCK ACTIVITY (CONTINUED)
Since the Money Market Funds have sold and redeemed shares only at a
constant net asset value of $1.00 per share, the number of shares represented by
such sales and redemptions is the same as the amounts shown below for such
transactions.
<TABLE>
<CAPTION>
MONEY MARKET FUNDS
---------------------------------------------------------------------------------------------------
GOVERNMENT MONEY FUND MONEY FUND TAX-EXEMPT MONEY FUND
------------------------------- -------------------------------- -----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/96 12/31/95 06/30/96 12/31/95 06/30/96 12/31/95
------------- --------------- --------------- --------------- ------------- -------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL CLASS:
Sold $ 100,627,518 $ 131,707,872 $ 624,971,584 $ 582,600,924 $ 635,085,217 $ 557,879,624
Redeemed (88,907,536) (122,958,637) (412,490,380) (515,753,909) (372,339,144) (582,833,911)
------------- --------------- --------------- --------------- ------------- -------------
Net Increase/(Decrease) $ 11,719,982 $ 8,749,235 $ 212,481,204 $ 66,847,015 $ 262,746,073 $ (24,954,287)
============= =============== =============== =============== ============= =============
CLASS A:
Sold $ 652,958,240 $ 1,616,444,970 $ 1,152,554,460 $ 2,220,465,314 $ 269,817,205 $ 375,279,584
Issued as reinvestment
of dividends 2,419,925 3,971,290 5,449,721 6,557,546 1,846,717 3,268,939
Redeemed (718,888,371) (1,585,609,081) (1,185,445,559) (2,333,812,101) (281,254,669) (331,477,377)
------------- --------------- --------------- --------------- ------------- -------------
Net Increase/(Decrease) $ (63,510,206) $ 34,807,179 $ (27,441,378) $ (106,789,241) $ (9,590,747) $ 47,071,146
============= =============== =============== =============== ============= =============
===============================================================================================================================
</TABLE>
STATEMENTS OF CHANGES -- CAPITAL STOCK ACTIVITY
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
CONVERTIBLE FUND EQUITY FUND SHORT/INTERMEDIATE FUND
------------------- ------------------------- -------------------------
SHARES DOLLARS SHARES DOLLARS SHARES DOLLARS
------- --------- ---------- ------------ --------- ------------
<S> <C> <C> <C> <C> <C> <C>
Sold 13,659 $ 127,741 2,589,189 $ 34,629,202 1,490,117 $ 15,074,161
Issued as reinvestment
of dividends 4,101 38,901 16,147 215,680 135,887 1,372,471
Redeemed (55,971) (530,119) (1,678,367) (22,522,382) (1,219,880) (12,252,490)
------- --------- --------- ------------ --------- ------------
Net Increase/(Decrease) (38,211) ($363,477) 926,969 $ 12,322,500 406,124 $ 4,194,142
======= ========= ========= ============ ========= ============
</TABLE>
See Notes to Financial Statements.
79
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS CLASS A
------------------------------------- --------------------------------------------------------------------
SIX MONTHS YEAR PERIOD SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
GOVERNMENT MONEY FUND 06/30/96 12/31/95 12/31/94(4) 06/30/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91
---------- --------- ---------- --------- -------- -------- --------- -------- --------
(UNAUDITED) UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning Of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- ------- -------- -------- -------- -------- ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income 0.026 0.056 0.028 0.024 0.054 0.037 0.026 0.033 0.055
-------- ------- ------- -------- -------- -------- -------- ------ ------
Total From Investment
Operations 0.026 0.056 0.028 0.024 0.054 0.037 0.026 0.033 0.055
-------- ------- ------- -------- -------- -------- -------- ------ ------
LESS DISTRIBUTIONS:
Net Investment Income (0.026) (0.056) (0.028) (0.024) (0.054) (0.037) (0.026) (0.033) (0.055)
-------- ------- ------- -------- -------- -------- -------- ------ ------
Total Distributions (0.026) (0.056) (0.028) (0.024) (0.054) (0.037) (0.026) (0.033) (0.055)
-------- ------- ------- -------- -------- -------- -------- ------ ------
Net Asset Value,
End Of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======== ======== ======== ======== ======= =======
TOTAL RETURN 2.58%(3) 5.79% 2.82%(3) 2.45%(3) 5.51% 3.72% 2.62% 3.42% 5.67%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End Of Period
$(000) $30,087 $18,367 $ 9,617 $200,916 $264,426 $229,619 $263,909 $140,134 $632,663
Ratios Of Expenses To
Average Net Assets(1) 0.29%(2) 0.31% 0.29%(2) 0.54%(2) 0.57% 0.60% 0.61% 0.66% 0.71%
Ratio Of Net Investment
Income To Average Net
Assets 5.12%(2) 5.62% 4.52%(2) 4.88%(2) 5.36% 3.62% 2.57% 3.34% 5.45%
</TABLE>
(1) Without the voluntary waiver of fees, the expense ratios for the year ended
December 31, 1995 and the period ended December 31, 1994 for the
Institutional Class shares would have been 0.32% and 0.31% (annualized),
respectively, and for the six months ended June 30, 1996 and the years ended
December 31, 1995, 1994, 1993, 1992 and 1991 for the Class A shares would
have been 0.64% (annualized), 0.67%, 0.66%, 0.70%, 0.70% and 0.78%,
respectively.
(2) Annualized.
(3) Total returns for periods less than one year are not annualized.
(4) Commenced operations on May 16, 1994.
See Notes to Financial Statements.
80
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS CLASS A
------------------------------------------------ ------------------------------------------------------
SIX MONTHS YEAR PERIOD SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
MONEY FUND 06/30/96 12/31/95 12/31/94(4) 06/30/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91
------------ -------- ---------- --------- -------- -------- -------- -------- ---------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning Of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- ------- -------- -------- -------- -------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income 0.026 0.057 0.039 0.025 0.054 0.037 0.027 0.034 0.057
-------- ------- ------- -------- -------- -------- -------- ------- -------
Total From Investment
Operations 0.026 0.057 0.039 0.025 0.054 0.037 0.027 0.034 0.057
-------- ------- ------- -------- -------- -------- -------- ------- -------
LESS DISTRIBUTIONS:
Net Investment Income (0.026) (0.057) (0.039) (0.025) (0.054) (0.037) (0.027) (0.034) (0.057)
-------- ------- ------- -------- -------- -------- -------- ------- -------
Total Distributions (0.026) (0.057) (0.039) (0.025) (0.054) (0.037) (0.027) (0.034) (0.057)
-------- ------- ------- -------- -------- -------- -------- ------- -------
Net Asset Value,
End Of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======== ======= ======== ======== ======== ========
TOTAL RETURN 2.63%(3) 5.86% 4.08%(3) 2.51%(3) 5.58% 3.79% 2.69% 3.41% 5.87%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End Of Period
$(000) $311,318 $98,837 $31,990 $396,136 $423,588 $530,366 $348,984 $383,280 $263,419
Ratios Of Expenses To
Average Net Assets(1) 0.26%(2) 0.29% 0.29%(2) 0.52%(2) 0.56% 0.55% 0.57% 0.60% 0.71%
Ratio Of Net Investment
Income To Average Net
Assets 5.18%(2) 5.69% 4.79%(2) 4.97%(2) 5.42% 3.79% 2.66% 3.34% 5.69%
</TABLE>
- ---------
(1) Without the voluntary waiver of fees, the expense ratios for the year ended
December 31, 1995 and the period ended December 31, 1994 for the
Institutional Class shares would have been 0.30% and 0.30% (annualized),
respectively, and for the six months ended June 30, 1996 and the years ended
December 31, 1995, 1994, 1993, 1992 and 1991 for the Class A shares would
have been 0.61% (annualized), 0.65%, 0.65%, 0.72%, 0.73% and 0.74%,
respectively.
(2) Annualized.
(3) Total returns for periods less than one year are not annualized.
(4) Commenced operations on January 5, 1994.
See Notes to Financial Statements.
81
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS CLASS A
------------------------------------ --------------------------------------------------------------
SIX MONTHS YEAR PERIOD SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
TAX-EXEMPT MONEY FUND 06/30/96 12/31/95 12/31/94(4) 06/30/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91
---------- --------- ---------- ---------- -------- -------- -------- -------- ---------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning Of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- ------- -------- -------- -------- -------- ------ --------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income 0.015 0.035 0.025 0.014 0.033 0.023 0.020 0.025 0.041
-------- ------- ------- -------- -------- -------- -------- ------ --------
Total From Investment
Operations 0.015 0.035 0.025 0.014 0.033 0.023 0.020 0.025 0.041
-------- ------- ------- -------- -------- -------- -------- ------ --------
LESS DISTRIBUTIONS:
Net Investment Income (0.015) (0.035) (0.025) (0.014) (0.033) (0.023) (0.020) (0.025) (0.041)
-------- ------- ------- -------- -------- -------- -------- ------ --------
Total Distributions (0.015) (0.035) (0.025) (0.014) (0.033) (0.023) (0.020) (0.025) (0.041)
-------- ------- ------- -------- -------- -------- -------- ------ --------
Net Asset Value,
End Of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ======== ======== ====== ========
TOTAL RETURN 1.55%(3) 3.60% 2.56%(3) 1.42%(3) 3.31% 2.30% 1.99% 2.54% 4.16%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End Of Period
$(000) $474,893 $212,146 $237,100 $160,980 $170,570 $123,501 $168,440 $152,821 $157,693
Ratios Of Expenses To
Average Net Assets(1) 0.26%(2) 0.29% 0.28%(2) 0.52%(2) 0.56% 0.54% 0.54% 0.62% 0.49%
Ratio Of Net Investment
Income To Average Net
Assets 3.08%(2) 3.52% 2.99%(2) 2.83%(2) 3.25% 2.20% 1.97% 2.50% 4.08%
</TABLE>
- ---------
(1) Without the voluntary waiver of fees, the expense ratios for the year ended
December 31, 1995 and the period ended December 31, 1994 for the
Institutional Class shares would have been 0.29% and 0.30% (annualized),
respectively, and for the six months ended June 30, 1996 and the years ended
December 31, 1995, 1994, 1993, 1992 and 1991 for the Class A shares would
have been 0.61% (annualized), 0.65%, 0.65%, 0.71%, 0.73% and 0.75%,
respectively.
(2) Annualized.
(3) Total returns for periods less than one year are not annualized.
(4) Commenced operations on January 5, 1994.
See Notes to Financial Statements.
82
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOut Each Period)
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS CLASS A
------------------- ---------------------------------------------------------------------------
FOR THE PERIOD SIX MONTHS YEAR YEAR YEAR YEAR FOR THE PERIOD
02/26/96(5) ENDED ENDED ENDED ENDED ENDED 04/01/91(5)
SHORT/INTERMEDIATE FUND TO 06/30/96 06/30/96 12/31/95 12/31/94 12/31/93 12/31/92 TO 12/31/91
----------------- ----------- -------- -------- -------- ------- ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning Of
Period $ 10.30 $ 10.38 $ 9.66 $ 10.34 $ 10.22 $ 10.57 $ 10.00
-------- ------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income 0.206 0.310 0.588 0.559 0.563 0.630 0.474
Net Realized And Unrealized
Gain/(loss) On Investments (0.260) (0.361) 0.720 (0.694) 0.435 (0.087) 0.601
-------- ------- ------- ------- ------- ------- -------
Total From Investment Operations (0.054) (0.051) 1.308 (0.135) 0.998 0.543 1.075
-------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Net Investment Income (0.206) (0.289) (0.588) (0.545) (0.564) (0.631) (0.030)
-------- ------- ------- ------- ------- ------- -------
Total Distributions (0.206) (0.289) (0.588) (0.545) (0.878) (0.893) (0.505)
-------- ------- ------- ------- ------- ------- -------
Net Asset Value, End Of Period $ 10.04 $ 10.04 $ 10.38 $ 9.66 $ 10.34 $ 10.22 $ 10.57
======== ======= ======= ======= ======= ======= =======
TOTAL RETURN(4) (0.52)%(3) (0.49)%(3) 13.88% (1.29)% 9.91% 5.28% 11.04%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End Of Period $(000) $256,533 $ 1,526 $51,814 $44,333 $74,057 $71,848 $44,313
Ratios Of Expenses To Average
Net Assets(1) 0.58%(2) 0.58%(2) 0.60% 0.60% 0.60% 0.60% 0.60%(2)
Ratio Of Net Investment Income
To Average Net Assets 5.93%(2) 5.54%(2) 5.91% 5.29% 5.32% 6.07% 6.60%(2)
Portfolio Turnover Rate 138.37% 138.37% 194.94% 140.99% 215.07% 133.78% 108.70%
</TABLE>
(1) Without the voluntary waiver of fees, the expense ratios for the period
ended June 30, 1996 for the Institutional Class shares would have been 0.90%
(annualized) and for the six months ended June 30, 1996, years ended
December 31, 1995, 1994, 1993 and 1992 and the period ended December 31,
1991 for the Class A shares would have been 0.90% (annualized), 0.96%,
0.92%, 0.94%, 0.93% and 1.01% (annualized), respectively.
(2) Annualized.
(3) Total returns for periods less than one year are not annualized.
(4) Sales load is not reflected in total return.
(5) Date commenced operations.
See Notes to Financial Statements.
83
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (UNAUDITED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INTERMEDIATE
BOND FUND TAX-EXEMPT FUND TAX-EXEMPT FUND
------------------------------ ------------------------------ ---------------
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
CLASS CLASS A CLASS CLASS A CLASS
-------------- -------------- -------------- -------------- ---------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
04/16/96(5) 04/22/96(5) 02/26/96(5) 03/13/96(5) 02/26/96(5)
TO 06/30/96 TO 06/30/96 TO 06/30/96 TO 06/30/96 TO 06/30/96
-------------- -------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.00 $ 9.99 $ 10.74 $ 10.55 $ 10.56
------- ------- -------- ------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income 0.117 0.107 0.156 0.084 0.165
Net Realized and Unrealized Gain/(Loss)
on
Investments (0.050) (0.040) (0.290) (0.100) (0.320)
------- ------- -------- ------- --------
Total from Investment Operations 0.067 0.067 (0.134) (0.016) (0.155)
------- ------- -------- ------- --------
LESS DISTRIBUTIONS:
Net Investment Income (0.117) (0.107) (0.156) (0.084) (0.165)
------- ------- -------- ------- --------
Total Distributions (0.117) (0.107) (0.156) (0.084) (0.165)
------- ------- -------- ------- --------
Net Asset Value, End of Period $ 9.95 $ 9.95 $ 10.45 $ 10.45 $ 10.24
======= ======= ======== ======= ========
TOTAL RETURN(4) 0.68%(3) 0.67%(3) (1.25)%(3) (0.15)%(3) (1.46)%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period $(000) $29,175 $ 32 $224,229 -- $161,658
Ratios of Expenses to Average Net
Assets(1)(2) 0.57% 0.67% 0.78% 0.78% 0.78%
Ratio of Net Investment Income to
Average Net Assets(2) 5.74% 6.18% 4.30% 2.22% 4.65%
Portfolio Turnover Rate 34.25% 34.25% 28.13% 28.13% 37.94%
</TABLE>
- --------
(1) Without the voluntary waiver of fees, the annualized expense ratios for the
period ended June 30, 1996 for the Institutional Class shares of the Bond
Fund, Intermediate Tax-Exempt Fund and Tax-Exempt Fund would have been
0.94%, 0.81% and 0.81%, respectively, and for the Class A shares of the Bond
Fund and Intermediate Tax-Exempt Fund, 1.04% and 0.81%, respectively.
(2) Annualized.
(3) Total returns for periods less than one year are not annualized.
(4) Sales load is not reflected in total return.
(5) Date commenced operations.
See Notes to Financial Statements.
84
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
CONVERTIBLE FUND
-----------------------------------------------------------------
SIX MONTHS YEAR PERIOD YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
06/30/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91
--------- -------- -------- -------- -------- --------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 9.52 $ 8.78 $ 9.84 $ 9.16 $ 8.41 $ 7.18
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income 0.229 0.621 0.669 0.538 0.487 0.609
Net Realized and Unrealized Gain/(Loss)
on Investments 0.488 0.975 (1.049) 0.680 0.783 1.221
------- ------- ------- ------- ------- -------
Total from Investment Operations 0.717 1.596 (0.380) 1.218 1.270 1.830
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Net Investment Income (0.217) (0.856) (0.680) (0.538) (0.520) (0.600)
------- ------- ------- ------- ------- -------
Total Distributions (0.217) (0.856) (0.680) (0.538) (0.520) (0.600)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 10.02 $ 9.52 $ 8.78 $ 9.84 $ 9.16 $ 8.41
======= ======= ======= ======= ======= =======
TOTAL RETURN(2) 7.55%(3) 18.52% (4.01)% 13.50% 15.40% 26.04%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period $(000) $ 1,089 $ 1,171 $ 1,416 $ 6,064 $ 7,354 $ 3,732
Ratios of Expenses to Average Net
Assets(1) 0.80%(4) 0.80% 0.80% 0.80% 0.80% 0.80%
Ratio of Net Investment Income to
Average Net
Assets 4.41%(4) 5.68% 5.21% 5.16% 5.83% 6.91%
Portfolio Turnover Rate 7.62% 35.59% 31.63% 81.04% 21.27% 62.20%
Average Commission Rate(5) $ 0.060 -- -- -- -- --
</TABLE>
- --------
(1) Without the voluntary waiver of fees, the expense ratios for the six months
ended June 30, 1996 and the years ended December 31, 1995, 1994, 1993, 1992
and 1991 would have been 2.29% (annualized), 2.58%, 1.26%, 1.20%, 1.26% and
1.66%, respectively.
(2) Sales load is not reflected in total return.
(3) Total returns for periods of less than one year are not annualized.
(4) Annualized.
(5) Computed by dividing the total amount of commission paid by the total number
of shares purchased and sold during the period.
See Notes to Financial Statements.
85
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INSTITUTIONAL CLASS CLASS A
------------------- ---------------------------------------------------------------------
FOR THE PERIOD SIX MONTHS YEAR YEAR YEAR YEAR YEAR
02/26/96(5) ENDED ENDED ENDED ENDED ENDED ENDED
EQUITY FUND TO 06/30/96 06/30/96 12/31/95 12/31/94 12/31/93 12/31/92 12/31/91
------------------- ---------- -------- -------- -------- -------- -------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period $ 15.30 $ 13.99 $ 11.28 $ 12.86 $ 11.57 $ 12.08 $ 10.05
-------- ------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS:
Net Investment Income 0.082 0.723 0.229 0.263 0.197 0.267 0.282
Net Realized and Unrealized
Gain/(Loss) on Investments (0.125) 0.544 3.827 (0.514) 1.904 0.703 2.418
-------- ------- ------- ------- ------- ------- -------
Total from Investment Operations (0.043) 1.267 4.056 (0.251) 2.101 0.970 2.700
-------- ------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS:
Net Investment Income (0.097) (0.097) (0.232) (0.263) (0.204) (0.290) (0.280)
Net Realized Gains 0.000 0.000 (1.114) (1.066) (0.607) (1.190) (0.390)
-------- ------- ------- ------- ------- ------- -------
Total Distributions (0.097) (0.097) (1.346) (1.329) (0.811) (1.480) (0.670)
-------- ------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $ 15.16 $ 15.16 $ 13.99 $ 11.28 $ 12.86 $ 11.57 $ 12.08
======== ======= ======= ======= ======= ======= =======
TOTAL RETURN(4) (0.27)%(3) 9.07%(3) 36.26% (2.05)% 18.23% 8.19% 27.29%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period $(000) $564,669 $ 3,303 $61,256 $38,920 $47,241 $31,809 $34,150
Ratios of Expenses to Average Net
Assets(1) 0.94%(2) 0.94%(2) 0.96% 0.90% 0.93% 0.96% 0.98%
Ratio of Net Investment Income to
Average Net Assets 1.57%(2) 2.24%(2) 1.75% 1.94% 1.59% 2.16% 2.52%
Portfolio Turnover Rate 43.20% 43.20% 75.93% 87.83% 57.31% 63.79% 77.85%
Average Commission Rate(6) $ 0.058 $ 0.058 -- -- -- -- --
</TABLE>
- --------
(1) Without the voluntary waiver of fees, the expense ratios for the years ended
December 31, 1995, 1994, 1993, 1992 and 1991 for the Class A shares would
have been 0.97%, 0.92%, 0.96%, 0.98% and 1.01%, respectively.
(2) Annualized.
(3) Total returns for periods of less than one year are not annualized.
(4) Sales load is not reflected in total return.
(5) Date commenced operations.
(6) Computed by dividing the total amount of commission paid by the total number
of shares purchased and sold during the period.
See Notes to Financial Statements.
86
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (UNAUDITED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
EQUITY INCOME FUND GROWTH FUND SMALL-CAP FUND
---------------------------- ------------------------------ ----------------------------
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
CLASS CLASS A CLASS CLASS A CLASS CLASS A
-------------- -------------- -------------- -------------- -------------- -------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
02/26/96(6) 04/18/96(6) 02/26/96(6) 04/19/96(6) 02/26/96(6) 04/19/96(6)
TO 06/30/96 TO 06/30/96 TO 06/30/96 TO 06/30/96 TO 06/30/96 TO 06/30/96
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period $ 13.34 $ 13.02 $ 17.01 $ 16.49 $ 14.24 $ 14.25
------- ------- ------- ------- -------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income 0.117 0.069 0.018 0.008 0.035 0.011
Net Realized and Unrealized
Gain/(Loss) on Investments 0.043 0.368 0.579 1.092 0.719 0.733
------- ------- ------- ------- -------- -------
Total from Investment Operations 0.160 0.437 0.597 1.100 0.754 0.744
------- ------- ------- ------- -------- -------
LESS DISTRIBUTIONS:
Net Investment Income (0.110) (0.067) (0.017) (0.010) (0.034) (0.034)
------- ------- ------- ------- -------- -------
Total Distributions (0.110) (0.067) (0.017) (0.010) (0.034) (0.034)
------- ------- ------- ------- -------- -------
Net Asset Value, End of Period $ 13.39 $ 13.39 $ 17.59 $ 17.58 $ 14.96 $ 14.96
======= ======= ======= ======= ======== ========
TOTAL RETURN(4) 1.21%(3) 3.36%(3) 3.51%(3) 6.67%(3) 5.30%(3) 5.23%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period $(000) $29,485 $ 107 $67,722 $ 114 $134,171 $ 111
Ratios of Expenses to Average Net
Assets(2) 0.93% 1.03% 1.10%(1) 1.25%(1) 1.20%(1) 1.34%(1)
Ratio of Net Investment Income to
Average Net Assets(2) 2.55% 4.37% 0.30% 0.22% 0.07% 0.64%
Portfolio Turnover Rate 0.34% 0.34% 15.80% 15.80% 22.72% 22.72%
Average Commission Rate(5) $ 0.059 $ 0.059 $ 0.057 $ 0.057 $ 0.058 $0.058
</TABLE>
- --------
(1) Without the voluntary waiver of fees, the annualized expense ratios for the
period ended June 30, 1996 for the Institutional Class shares of the Growth
Fund and Small-Cap Fund would have been 1.11% and 1.21%, respectively, and
for the Class A shares of the Growth Fund and Small-Cap Fund would have been
1.26% and 1.35%, respectively.
(2) Annualized.
(3) Total returns for periods less than one year are not annualized.
(4) Sales load is not reflected in total return.
(5) Computed by dividing the total amount of commission paid by the total number
of shares purchased and sold during the period.
(6) Date commenced operations.
See Notes to Financial Statements.
87
HARRIS INSIGHT FUNDS
FINANCIAL HIGHLIGHTS (UNAUDITED)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
INDEX FUND INTERNATIONAL FUND HEMISPHERE FUND
------------------------------- ------------------------------ -------------------------
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
CLASS CLASS A CLASS CLASS A CLASS CLASS A
-------------- -------------- -------------- -------------- -------------- --------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
02/26/96(6) 04/19/96(6) 02/26/96(6) 03/13/96(6) 04/09/96(6) 04/11/96(6)
TO 06/30/96 TO 06/30/96 TO 06/30/96 TO 06/30/96 TO 06/30/96 TO 06/30/96
-------------- -------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period $ 16.72 $ 16.35 $ 15.04 $ 14.69 $ 10.00 $ 10.00
-------- ------- -------- ------- ------- -------
Income from Investment Operations:
Net Investment Income 0.108 0.046 0.106 0.082 0.037 0.028
Net Realized and Unrealized
Gain/(Loss) on Investments 0.295 0.702 0.366 0.739 (0.017) (0.008)
-------- ------- -------- ------- ------- -------
Total from Investment Operations 0.403 0.748 0.472 0.821 0.020 0.020
-------- ------- -------- ------- ------- -------
Less Distributions:
Net Investment Income (0.103) (0.078) (0.101) (0.101) 0.000 0.000
-------- ------- -------- ------- ------- -------
Total Distributions (0.103) (0.078) (0.101) (0.101) 0.000 0.000
-------- ------- -------- ------- ------- -------
Net Asset Value, End of Period $ 17.02 $ 17.02 $ 15.41 $ 15.41 $ 10.02 $ 10.02
======== ======= ======== ======= ======= =======
Total Return(3)(4) 2.42% 4.58% 3.14% 5.59% 0.20% 0.20%
Ratios/Supplemental Data:
Net Assets, End of Period $(000) $129,972 $ 52 $105,388 $ 206 $10,018 $ 53
Ratios of Expenses to Average Net
Assets (2) 0.45%(1) 0.58%(1) 1.32% 1.41% 1.55% 1.80%
Ratio of Net Investment Income to
Average Net Assets(2) 1.87% 2.85% 2.84% 2.71% 1.60% 1.35%
Portfolio Turnover Rate 4.08% 4.08% 5.58% 5.58% 19.30% 19.30%
Average Commission Rate(5) $ 0.041 $ 0.041 $ 0.016 $ 0.016 $ 0.039 $0.039
</TABLE>
- --------
(1) Without the voluntary waiver of fees, the annualized expense ratios for the
period ended June 30, 1996 for the Index Fund Institutional Class and Class
A shares would have been 0.46% and 0.59%, respectively.
(2) Annualized.
(3) Total returns for periods less than one year are not annualized.
(4) Sales load is not reflected in total return.
(5) Computed by dividing the total amount of commission paid by the total number
of shares purchased and sold during the period.
(6) Date commenced operations.
See Notes to Financial Statements.
88
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1996
1. ORGANIZATION
HT Insight Funds, Inc., doing business as Harris Insight Funds (the
"Company") was incorporated in Maryland on September 16, 1987 as an open-end
diversified management investment company and currently offers seven investment
portfolios. Harris Insight Funds Trust (the "Trust") was organized as a business
trust under the laws of The Commonwealth of Massachusetts on December 6, 1995 as
an open-end diversified management investment company and is registered with
eleven investment portfolios. On February 9, 1996, Funds Distributor, Inc.
deposited $100,000 amongst the portfolios of the Trust against issue of initial
shares of each Class of shares of the portfolios of the Trust. The portfolios of
the Company and the Trust (each a "Fund" and collectively, the "Funds") are as
follows:
COMPANY:
EQUITY FUNDS:
Harris Insight Equity Fund ("Equity Fund")
Harris Insight Hemisphere Free Trade Fund ("Hemisphere Fund")
FIXED INCOME FUNDS:
Harris Insight Convertible Fund ("Convertible Fund")
Harris Insight Short/Intermediate Bond Fund ("Short/Intermediate
Fund",
formerly named the Harris Insight Managed Fixed Income Fund)
MONEY MARKET FUNDS:
Harris Insight Government Money Market Fund ("Government Money
Fund",
formerly named the Harris Insight Government Assets Fund)
Harris Insight Money Market Fund ("Money Fund", formerly named
the Harris Insight Cash
Management Fund)
Harris Insight Tax-Exempt Money Market Fund ("Tax-Exempt Money
Fund",
formerly named the Harris Insight Tax-Free Money Market Fund)
TRUST:
EQUITY FUNDS:
Harris Insight Equity Income Fund ("Equity Income Fund")
Harris Insight Growth Fund ("Growth Fund")
Harris Insight Small-Cap Opportunity Fund ("Small-Cap Fund")
Harris Insight Index Fund ("Index Fund")
Harris Insight International Fund ("International Fund")
Harris Insight Balanced Fund ("Balanced Fund")
FIXED INCOME FUNDS:
Harris Insight Convertible Securities Fund ("Convertible
Securities Fund")
Harris Insight Bond Fund ("Bond Fund")
Harris Insight Intermediate Government Bond Fund ("Intermediate
Government Fund")
Harris Insight Intermediate Tax-Exempt Bond Fund ("Intermediate
Tax-Exempt Fund")
Harris Insight Tax-Exempt Bond Fund ("Tax-Exempt Fund")
The Intermediate Government Fund, Convertible Securities Fund, Balanced Fund
and the Class A shares of the Tax-Exempt Bond Fund have not commenced operations
as of June 30, 1996. Each other Fund except for the Convertible Fund currently
offers two classes of shares: Class A shares and Institutional shares (formerly
designated Class C shares).
89
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)
JUNE 30, 1996
Each of the Money Market Funds also has registered Class B shares but does not
currently offer those shares for sale. Shares of each class of a Fund represent
equal pro rata interests in the Fund and are identical in all respects except
that Class A and Class B shares are subject to certain service organization fees
as described in Note 5. Institutional shares are not subject to service
organization fees. Each of the three classes of shares of the Money Market Funds
declares dividends daily in the same manner. Class B and Institutional shares of
the Money Market Funds were first made available in 1994.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies used by the
Funds in the preparation of the financial statements which are in accordance
with generally accepted accounting principles. The preparation of financial
statements in accordance with generally accepted accounting principles 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) Security Valuation -- The value of securities (other than bonds and debt
obligations maturing in 60 days or less) of the Funds other than the Money
Market Funds, is determined based on the last sales price on the principal
exchange on which the securities are traded as of the close of regular trading
on the New York Stock Exchange (which is currently 4:00 P.M., New York City
time). In the absence of any sale on the valuation date, the securities are
valued at the closing bid price. Securities traded only on the over-the-counter
markets are valued at the closing over-the-counter bid prices. Portfolio
securities which are primarily traded on foreign securities exchanges are
generally valued at the closing values of such securities on their respective
exchanges, except when an occurrence subsequent to the time a value was so
established is likely to have changed such value. In such an event, the fair
value of those securities will be determined through the consideration of other
factors by or under the direction of the Board of Trustees and Board of
Directors of the Funds. Bonds are valued at the mean of the last bid and asked
prices. In the event that such prices are not readily available, securities are
valued at fair value as determined in good faith by the Board of Trustees or
Board of Directors, as the case may be. Prices used for valuations of securities
are provided by independent pricing services. Debt obligations with remaining
maturities of 60 days or less are valued at amortized cost when the Trust's
Board of Trustees or the Company's Board of Directors, as the case may be, has
determined that amortized cost valuation represents fair value.
Each of the Money Market Funds values its investments using the amortized
cost method, which involves initially valuing investments at cost and thereafter
assuming a constant amortization to maturity of any premium or discount. This
method approximates market value.
(b) Foreign Currency Translation -- The books and records of the
International Fund and the Hemisphere Fund are maintained in U.S. dollars.
Foreign currency amounts are translated into U.S. dollars on the following
basis:
(i) market value of investment securities, other assets and liabilities
at the current rate of exchange on the valuation date; and
(ii) purchases and sales of investment securities, income and expenses
at the relevant rates of exchange prevailing on the respective dates of
such transactions.
The International Fund and the Hemisphere Fund do not isolate that portion
of gains and losses on investments in securities which is due to changes in the
foreign exchange rates from that which is due to changes in the market prices of
such securities. The International Fund and the Hemisphere Fund report gains and
losses on foreign currency related transactions as realized and unrealized gains
and losses for financial reporting purposes, whereas such gains and losses, to
the extent realized, are treated as ordinary income or loss for federal income
tax purposes.
90
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)
JUNE 30, 1996
(c) Federal Income Taxes -- Each Fund intends to continue to qualify as a
regulated investment company under the Internal Revenue Code and to distribute
substantially all of its net investment income and net realized capital gains to
shareholders. Accordingly, no provision for federal income tax is required.
(d) Allocation of Expenses -- Expenses which have not been directly charged
to a specific Fund are generally allocated among the Funds primarily on the
basis of relative net assets. Expenses relating to a particular class of shares
are charged to the respective class of shares of a Fund. Non-class specific
expenses are allocated between the classes of shares of a Fund based upon the
relative net assets of the classes of shares of a Fund.
(e) Distributions -- Each of the Funds declares dividends from net
investment income. The Money Market Funds and the Fixed Income Funds (other than
Convertible Fund and Convertible Securities Fund) declare dividends each
business day to shareholders of record that day for payment on the first
business day of the following month. Dividends from the Convertible Fund,
Convertible Securities Fund and Equity Funds (other than Small-Cap Fund,
International Fund and Hemisphere Fund) are declared and paid quarterly.
Dividends from the Small-Cap Fund and the International Fund are declared and
paid semi-annually. Dividends from the Hemisphere Fund are declared and paid
annually. Each Fund's net realized capital gains, if any, are distributed
annually. Distributions to shareholders are recorded on the ex-dividend dates.
The amounts of distributions from net investment income and net realized
capital gains are determined in accordance with federal income tax regulations,
which may differ from those amounts determined under generally accepted
accounting principles. These book/tax differences are either temporary or
permanent in nature. To the extent these differences are permanent, they are
reclassified within the capital accounts to conform to their tax treatment in
the period that the difference arises.
(f) Forward currency contracts -- Each Equity Fund may enter into forward
foreign currency contracts in connection with planned purchases or sales of
securities or to hedge the U.S. dollar value of the investment securities
denominated in foreign currencies. When a Fund enters into a currency hedging
transaction, the custodian places cash or U.S. government or other high quality
short-term debt obligations or a combination thereof, in a segregated account of
the Fund in an amount equal to the value of the Fund's total assets committed to
the consummation of the forward contract, which value is adjusted on a daily
basis. If the value of the securities placed in a segregated account declines,
additional cash or securities will be placed in the account so that the value of
the account will equal the amount of the Fund's commitment with respect to the
contracts.
Risks may arise upon entering into these contracts from the potential
inability of counterparties to meet the terms of their contracts and from
unanticipated movements in the value of the foreign currency relative to the
U.S. dollar.
The aggregate principal amounts of the contracts are not recorded as the
Funds do not intend to hold the contracts to maturity. All commitments are
"marked-to-market" daily at the applicable foreign exchange rate and any
resulting unrealized gains or losses are recorded currently. The Funds realize
gains or losses at the time forward contracts are extinguished, except that
gains or losses on certain open contracts are required to be recognized for U.S.
federal income tax purposes at the close of a Fund's taxable year and are
generally treated as ordinary income for such purposes.
(g) Futures Contracts -- Each Fund may seek to hedge all or a portion of its
investments through the use of securities index and financial futures contracts.
Upon entering into a futures contract, a Fund is required to deposit an amount
("initial margin") equal to a certain percentage of the contract value.
Subsequent payments ("variation margin") are made or received by the Fund each
day, reflecting the daily change in the value of the contracts and are recorded
as an unrealized gain or loss. When the contract is closed, the Fund will
recognize a realized gain or loss.
91
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)
JUNE 30, 1996
Futures contracts are subject to the risk associated with the imperfect
correlation between movements in the price of the future contract and the price
of the securities being hedged. The risk of imperfect correlation increases with
respect to securities' index futures as the composition of the Fund's portfolio
diverges from composition of the index underlying such index futures. In
addition, there is no assurance that a liquid secondary market will exist at the
time the Fund elects to close out a futures position.
(h) Organization Expenses -- Each Fund's share of the costs incurred in
connection with the organization of the Company and the Trust have been deferred
and are being amortized over 60 months from commencement of operations of the
respective Fund.
(i) Other -- Investment transactions are recorded on trade date. Interest
income, including the amortization of discount or premium, is recorded as
earned. Discounts and premiums on securities purchased are amortized over the
lives of the respective securities. Dividend income is recorded on the
ex-dividend date.
3. REPURCHASE AGREEMENTS
Certain Funds invest in repurchase agreements. Securities pledged as
collateral for repurchase agreements are held by the custodian bank until
maturity of the repurchase agreements. Provisions of the repurchase agreements
and procedures adopted by the Funds require that the market value of the
collateral, including accrued interest thereon, is sufficient in the event of
default by the counterparty. If the counterparty defaults and the value of the
collateral declines or if the counterparty enters an insolvency proceeding,
realization of the collateral by the Funds may be delayed or limited.
4. ADVISORY, ADMINISTRATION AND DISTRIBUTION ARRANGEMENTS
The Company and the Trust retain Harris Trust & Savings Bank ("Harris
Trust") as investment adviser (the "Adviser"), pursuant to advisory
contracts for each Fund. As Adviser, Harris Trust is entitled to receive
fees payable monthly, based upon the average daily net asset value of each
Fund, at the following annual rates:
<TABLE>
<CAPTION>
<S> <C>
Each Money Market Fund 0.14% of the first $100 million
of net assets and 0.10% of net
assets over $100 million
Short/Intermediate Fund 0.70%
Bond Fund 0.65%
Intermediate Tax-Exempt Fund 0.60%
Tax-Exempt Fund 0.60%
Convertible Fund 0.70%
Equity Fund 0.70%
Equity Income Fund 0.70%
Growth Fund 0.90%
Small-Cap Fund 1.00%
Index Fund 0.25%
International Fund 1.05%
Hemisphere Fund 0.90%
</TABLE>
92
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)
JUNE 30, 1996
Harris Trust may at its discretion, voluntarily waive all or any portion of
its respective advisory fees for any Fund. For the six month period ended June
30, 1996, advisory fees and waivers for certain Funds were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADVISORY FEE WAIVER ADVISORY FEE
------------ ------ ------------
<S> <C> <C> <C>
Short/Intermediate Fund $ 690,036 $ 295,098 $ 394,938
Bond Fund 34,185 17,779 16,406
Intermediate Tax-Exempt Fund 464,711 12,790 451,921
Tax-Exempt Fund 334,475 7,422 327,053
Convertible Fund 4,098 4,098 --
Growth Fund 200,051 2,725 197,326
Small-Cap Fund 433,016 2,897 430,119
Index Fund 109,987 3,462 106,525
</TABLE>
There were no advisory fee waivers for other than the above Funds.
For the period ended June 30, 1996, Harris Trust also reimbursed expenses of
$8,747 for the Convertible Fund.
Harris Trust has entered into Portfolio Management Agreements with Harris
Investment Management, Inc. ("HIM") under which HIM undertakes to furnish
investment guidance and policy direction in connection with the daily portfolio
management of the Funds, other than the Tax-Exempt Money Market Fund. HIM, as
portfolio manager, receives a fee directly from Harris Trust, not from the
Funds. Harris Trust and HIM are subsidiaries of Harris Bankcorp, Inc.
Jones Heward Investment Counsel Inc. ("JHICI") and Bancomer Asesora de
Fondos, S.A. de C.V. ("Bancomer") have each entered into an Investment
Sub-Advisory Agreement with HIM with respect to the Hemisphere Fund. Pursuant to
these agreements JHICI selects and manages the Canadian securities and Bancomer
selects and manages the Mexican securities in which the Hemisphere Fund invests.
Payments made to JHICI and Bancomer for these services are made by HIM, and are
not separate expenses of the Hemisphere Fund.
Prior to July 1, 1996, pursuant to an Administration and Accounting Service
Agreement and an Administration Agreement, the Company and the Trust retained
PFPC Inc. ("PFPC") and First Data Investor Services Group, Inc. ("First Data")
as Co-Administrator and Accounting Service Agent and Co-Administrator (the
"Co-Administrators"), respectively. PFPC also served as the transfer and
dividend disbursing agent (the "Transfer Agent") of the Funds. PNC Bank, N. A.,
served as the custodian (the "Custodian") of the Funds. PFPC and the Custodian
are indirect, wholly-owned subsidiaries of PNC Bank Corp. As compensation for
their services, the Co-Administrators, the Transfer Agent and the Custodian were
entitled to receive a combined fee based on the aggregate average daily net
assets of the Funds, payable monthly at an annual rate of 0.17% of the first
$300 million of average daily net assets; 0.15% of the next $300 million; and
0.13% of the average net assets in excess of $600 million. In addition, a
separate fee was charged by PFPC for certain retail transfer agent services and
for various custody transactional charges. During the period ended June 30,
1996, PFPC voluntarily waived fees of $15,143 for the Short/Intermediate Fund,
$1,524 for the Bond Fund, $12,277 for the Intermediate Tax-Exempt Fund and
$8,901 for the Tax-Exempt Fund.
If the total expenses, excluding certain expenses, of any of the Funds
exceed limitations imposed by certain states, Harris Trust, PFPC and First Data
are each required to reimburse the Fund for such excess in proportion to, but
not exceeding, their fees. No reimbursements to meet such state limitations were
made for the period ended June 30, 1996.
Funds Distributor, Inc. ("Funds Distributor") provides services as
distributor (the "Distributor") in connection with sales of shares of the Funds.
During the period ended June 30, 1996, fees for services rendered by the
Distributor were paid by the Co-Administrators. For the period ended June 30,
1996, Funds
93
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)
JUNE 30, 1996
Distributor advised the Funds it had received commissions of
approximately $3,524, $5,442, $915 and $80 respectively, after concessions paid
to dealers of approximately $264, $343, $63 and $5 on sales of shares of the
Short/Intermediate, Equity, Small-Cap and International Funds, respectively.
The Company and the Trust have a compensation arrangement under which
payment of directors' fees may be deferred by the directors. Interest is accrued
on the deferred balances and is included in directors' fees and expenses. The
accumulated balance of deferred directors' fees and interest thereon relating to
the Funds comprising the Company, excluding the Hemisphere Fund, on June 30,
1996 aggregated approximately $184,000, an applicable portion of which is
included in accrued expenses of each applicable Fund.
Effective July 1, 1996, the Company and the Trust have entered into an
Administration Agreement with Harris Trust (the "Administrator"). In its
capacity as the Administrator, Harris Trust will generally assist the Funds in
all aspects of their administration and operation. Harris Trust will also serve
as the transfer and dividend disbursing agent of the Funds (the "Transfer
Agent"). The Administrator has entered into a Sub-Administration Agreement with
Funds Distributor (the "Sub-Administrator"), pursuant to which the
Sub-Administrator will perform certain administrative services for the Funds.
The Administrator has also entered into a Sub- Administration and Accounting
Services Agreement with PFPC (the "Sub-Administrator and Accounting Services
Agent"). Under these Agreements, the Admistrator will compensate the
Sub-Administrator and the Sub-Administrator and Accounting Services Agent for
providing such services. Harris Trust has also entered into a Sub-Transfer
Agency Services Agreement with PFPC (the "Sub-Transfer Agent"), pursuant to
which the Sub-Transfer Agent will continue to perform certain transfer agency
and dividend disbursing agency services. Harris Trust will compensate the
Sub-Transfer Agent for providing such services. PNC Bank, N.A. will continue to
serve as the Custodian of the assets of the Funds. Under the new agreements, as
compensation for their services, Harris Trust, in its capacity as the
Administrator and Transfer Agent, and the Custodian are entitled to receive a
combined fee based on the aggregate average daily net assets of the Funds,
payable monthly at an annual rate of 0.17% of the first $300 million of average
daily net assets; 0.15% of the next $300 million; and 0.13% of the average net
assets in excess of $600 million. These fees are similar to those in effect
prior to July 1, 1996.
Certain employees of First Data were officers of the Funds during the period
ended June 30, 1996. Effective July 1, 1996, certain employees of PFPC and Funds
Distributor became officers of the Funds.
5. RULE 12B-1 OR SERVICE PLANS
The Company and the Trust have adopted Service Plans pursuant to Rule 12b-1
under the Investment Company Act of 1940, as amended, (the "Plan") for the Funds
other than with respect to Institutional Shares of the Funds.
Under the Plan for Money Market Funds, each Money Market Fund may enter into
service agreements with banks and other institutions (each a "Service
Organization") that require the Service Organization to provide certain
shareholder support services and distribution assistance in consideration of the
Fund's payment of up to 0.35% and 0.25% per annum of the average daily net asset
value of the Class A and Class B shares, respectively, held by or for the
benefit of customers of the Service Organization. Service Organization fees paid
to Harris Trust for the period ended June 30, 1996 were $285,578, $610,867 and
$244,308 (net of voluntary waivers of $113,497, $240,094 and $88,122) for the
Class A shares of Government Money Fund, Money Fund and Tax-Exempt Money Fund,
respectively. There were no Service Organization fees payable during the period
ended June 30, 1996 for the Class B shares of the Money Market Funds.
Under each of the Non-Money Market Fund Plans, each Non-Money Market Fund
may enter into service agreements with banks and other institutions
(individually, "Service Agent"). A Service Agent may receive fees with respect
to a Non-Money Market Fund's shares owned by shareholders for whom the Service
Agent is the
94
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)
JUNE 30, 1996
dealer or holder of record, or with whom the Service Agent has a
servicing relationship. Funds Distributor may act as a Service Agent and receive
fees. Fees to a Service Agent may be up to a rate of 0.25% per annum of the
average daily net asset value of Class A shares attributable to the Service
Agent. In addition to the fees paid by Class A shares of the Non-Money Market
Funds, a Non-Money Market Fund may, pursuant to the Service Plan, defray all or
part of the cost of preparing, printing and delivering promotional materials,
prospectuses and statements of additional information to prospective
shareholders of Class A shares of the Funds by paying on an annual basis up to
the greater of $100,000 or 0.05% of a Fund's average daily net assets (but not
in any case greater than such costs). As of June 30, no payments have been made
pursuant to the Non-Money Market Fund Plans.
6. PUBLIC OFFERING PRICE
Class A shares of the Non-Money Market Funds and shares of the Convertible
Fund are sold at a public offering price which is equal to the current net asset
value of such shares with a maximum sales load of 4.5%. There is no sales load
on Class A and Class B shares of Money Market Funds and the Institutional Shares
of the Funds.
7. INVESTMENT TRANSACTIONS
The cost of investments at June 30, 1996 and the net realized gains and
losses on securities sold for the period then ended for each of the Funds for
federal income tax purposes was not materially different from the amounts
reported for financial reporting purposes.
Purchases and sales of investment securities of the Non-Money Market Funds
(excluding short-term investments and U.S. government securities) during the
period ended June 30, 1996 were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Short/Intermediate Fund $261,898,276 $274,650,904
Bond Fund 44,804,119 18,462,293
Intermediate Tax-Exempt Fund 96,541,675 92,725,695
Tax-Exempt Fund 61,085,485 58,225,568
Convertible Fund 106,581 233,283
Equity Fund 184,674,787 197,661,096
Equity Income Fund 8,790,855 8,242,139
Growth Fund 10,107,604 359,213
Small-Cap Fund 44,342,615 42,207,563
Index Fund 8,809,906 5,449,789
International Fund 9,550,930 8,416,060
Hemisphere Fund 11,166,615 1,598,175
</TABLE>
Purchases and sales of U.S. government securities, excluding short-term
securities, of the Non-Money Market Funds during the period ended June 30, 1996
were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------- ------------
<S> <C> <C>
Short/Intermediate Fund $157,496,035 $235,474,368
Bond Fund 32,911,130 12,988,866
</TABLE>
95
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)
JUNE 30, 1996
At June 30, 1996, gross unrealized appreciation (depreciation) for each Fund
was as follows:
<TABLE>
<CAPTION>
NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ -------------
<S> <C> <C> <C>
Short/Intermediate Fund $ 1,343,462 $(2,532,266) $ (1,188,804)
Bond Fund 140,175 (49,737) 90,438
Intermediate Tax-Exempt Fund 3,522,884 (2,917,737) 605,147
Tax-Exempt Bond Fund 3,640,538 (944,290) 2,696,248
Convertible Fund 139,147 (10,104) 129,043
Equity Fund 114,828,307 (9,087,757) 105,740,550
Equity Income Fund 6,184,566 (454,566) 5,730,000
Growth Fund 20,227,025 (412,142) 19,814,883
Small-Cap Fund 46,275,614 (1,954,011) 44,321,603
Index Fund 46,151,250 (1,837,649) 44,313,601
International Fund 9,325,000 (2,569,221) 6,755,779
Hemisphere Fund 373,661 (305,089) 68,572
</TABLE>
At December 31, 1995, the Convertible Fund and the Short/Intermediate Fund
had available capital loss carryforwards of approximately $2,694,500 and
$2,100,000, respectively, that may be used to offset future net capital gains
through 1999 and 2003, respectively. Net capital losses utilized by the
Short/Intermediate Fund during the year ending December 31, 1995 were
approximately $835,000.
8. IN-KIND TRANSFER OF SECURITIES
On February 23, 1996, the following Funds issued shares of beneficial
interest in exchange for portfolio securities from common trust funds managed by
Harris Trust at their current value. The tax basis of the securities exchanged
for the shares of the Funds was carried over to the respective Funds and
included unrealized gain. The number of shares issued, the current value on the
date of transfer and the unrealized gain on securities included in the transfer
are as follows:
<TABLE>
<CAPTION>
NUMBER
OF SHARES UNREALIZED
ISSUED VALUE APPRECIATION
---------- ------------ ------------
<S> <C> <C> <C>
Short/Intermediate Fund 22,385,111 $230,561,882 $ 3,625,568
Intermediate Tax-Exempt Fund 21,132,582 226,884,514 7,063,776
Tax-Exempt Fund 15,689,395 165,704,780 10,638,407
Equity Fund 33,693,907 515,516,776 131,133,983
Equity Income Fund 2,191,705 29,234,220 7,023,445
Growth Fund 3,778,213 64,284,254 20,848,759
Small-Cap Fund 8,237,828 117,276,469 39,553,381
Index Fund 7,687,741 128,542,619 44,529,728
International Fund 6,850,804 103,009,222 4,532,268
</TABLE>
96
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)
JUNE 30, 1996
9. NET ASSETS
At June 30, 1996, net assets of each Fund consisted of:
<TABLE>
<CAPTION>
GOVERNMENT TAX-EXEMPT
MONEY FUND MONEY FUND MONEY FUND
----------- ------------- --------------
<S> <C> <C> <C>
Capital Stock at Par Value $ 231,002 $ 707,454 $ 635,878
Paid-in Capital 230,771,553 706,746,822 635,242,083
Undistributed Net Investment Income -- -- --
Accumulated Net Realized Gain (Loss) (88) -- (5,293)
Unrealized Appreciation/(Depreciation)
on Investment Transactions, Future
Contracts and Foreign Currency
Transactions -- -- --
------------ ------------ ------------
Net Assets $231,002,467 $707,454,276 $635,872,668
============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
SHORT/ INTERMEDIATE
INTERMEDIATE TAX-EXEMPT TAX-EXEMPT
FUND BOND FUND FUND FUND
------------- -------------- ------------ ----------
<S> <C> <C> <C> <C>
Capital Stock or Beneficial Interest
at Par Value $ 25,676 $ 2,934 $ 23,029 $ 15,915
Paid-in Capital 262,724,426 29,264,894 223,193,502 156,029,827
Undistributed/(overdistributed) Net
Investment Income (31,185) -- -- --
Accumulated Net Realized Gain (Loss) (3,471,455) (151,092) 407,021 2,915,837
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Future Contracts
and Foreign Currency Transactions (1,188,804) 90,438 605,147 2,696,248
------------ ----------- ------------ ------------
Net Assets $258,058,658 $29,207,174 $224,228,699 $161,657,827
============ =========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
EQUITY
CONVERTIBLE EQUITY INCOME GROWTH
FUND FUND FUND FUND
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Capital Stock or Beneficial Interest
at Par Value $ 109 $ 423,220 $ 2,210 $ 3,857
Paid-in Capital 3,630,206 422,797,224 22,447,802 44,799,121
Undistributed/(overdistributed) Net
Investment Income 3,494 (438,449) 15,216 3,242
Accumulated Net Realized Gain (Loss) (2,674,082) 39,449,108 1,396,764 3,215,313
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Future Contracts
and Foreign Currency Transactions 129,043 105,740,550 5,730,000 19,814,883
----------- ------------ ----------- -----------
Net Assets $ 1,088,770 $567,971,653 $29,591,992 $67,836,416
=========== ============ =========== ===========
</TABLE>
<TABLE>
<CAPTION>
SMALL-CAP INDEX INTERNATIONAL HEMISPHERE
FUND FUND FUND FUND
----------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
Capital Stock or Beneficial Interest
at Par Value $ 8,977 $ 7,639 $ 6,852 $ 1,005
Paid-in Capital 88,580,180 83,216,712 98,504,910 10,052,015
Undistributed Net Investment Income 7,709 34,939 24,662 36,803
Accumulated Net Realized Gain (Loss) 1,363,159 2,438,800 300,518 (86,975)
Unrealized Appreciation/(Depreciation) on
Investment Transactions, Future Contracts
and Foreign Currency Transactions 44,321,603 44,325,676 6,757,004 68,321
------------ ------------ ------------ -----------
Net Assets $134,281,628 $130,023,766 $105,593,946 $10,071,169
============ ============ ============ ===========
</TABLE>
97
HARRIS INSIGHT FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED)
JUNE 30, 1996
10. CONCENTRATION OF RISKS
The Tax-Exempt Money Fund, Intermediate Tax-Exempt Fund and Tax-Exempt Bond
Fund invest primarily in a diversified portfolio of municipal securities,
including municipal bonds and debentures. The Fixed Income Funds and the Money
Market Funds invest in debt instruments. The issuers' abilities to meet their
obligations may be affected by political and economic developments in a specific
state or region or their respective industries.
The International Fund and the Hemisphere Fund invest in securities of
foreign issuers in various countries. These investments may involve certain
considerations and risks not typically associated with investments in the U.S.,
as a result of, among other factors, the possibility of future political and
economic developments and the level of governmental supervision and regulation
of securities markets in the respective countries.
98
BOARD OF DIRECTORS AND
BOARD OF TRUSTEES
Edgar R. Fiedler*
Senior Fellow and Economic Counsellor,
The Conference Board; Director or
Trustee of The Stanley Works,
Zurich-American
Insurance Company, The Brazil Fund, AARP
Income Trust, Scudder Institutional Funds
and The Emerging Mexico Fund
C. Gary Gerst*
Chairman of the Board of Directors
and Board of Trustees;
Chairman Emeritus, La Salle Partners, Ltd.
John W. McCarter, Jr.*
Senior Vice President (until April 1,
1997) and
former Director of Booz * Allen &
Hamilton, Inc.
(Consulting Firm); Director of W.W.
Grainger,
Inc. and A.M. Castle, Inc. Effective
October 1, 1996, President and Chief
Executive Officer
of The Field Museum of Natural History
(Chicago)
Ernest M. Roth*
Consultant; Retired Senior Vice President
and Chief Financial Officer,
Commonwealth Edison Company
OFFICERS
Richard W. Ingram
President, Treasurer and
Chief Financial Officer
John E. Pelletier
Vice President and
Secretary
Christopher J. Kelley
Vice President and
Assistant Secretary
Mary A. Nelson
Assistant Treasurer
Thomas J. Ryan
Assistant Treasurer
Elizabeth A. Bachman
Assistant Secretary
Joseph T. Gramlich
Assistant Secretary
Karen Jacoppo-Wood
Assistant Secretary
Andrea M. Passarella
Assistant Secretary
Sharon A. Vandiver
Assistant Secretary
---------------------------------
* Member of Audit and Nominating Committees
HARRIS INSIGHT FUNDS
60 STATE STREET, BOSTON, MA 02109
TELEPHONE: (800) 982-8782
INVESTMENT ADVISER, ADMINISTRATOR,
TRANSFER AGENT AND DIVIDEND
DISBURSING AGENT
Harris Trust & Savings Bank
111 West Monroe Street
Chicago, Illinois 60603
PORTFOLIO MANAGEMENT AGENT
Harris Investment Management, Inc.
190 South La Salle Street
Chicago, Illinois 60603
SUB-ADMINISTRATOR AND ACCOUNTING
SERVICES AGENT, SUB-TRANSFER AGENT
AND DIVIDEND DISBURSING AGENT
PFPC Inc.
103 Bellevue Parkway
Wilmington, Delaware 19809
SUB-ADMINISTRATOR AND DISTRIBUTOR
Funds Distributor, Inc.
60 State Street, Suite 1300
Boston, Massachusetts 02109
CUSTODIAN
PNC Bank, N.A.
Broad & Chestnut Streets
Philadelphia, Pennsylvania 19101
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
30 South 17th Street
Philadelphia, Pennsylvania 19103
LEGAL COUNSEL
Bell, Boyd & Lloyd
Three First National Plaza
70 West Madison Street
Chicago, Illinois 60602-4207
This report is submitted for the general information of the shareholder of the
Harris Insight Funds. It is not authorized for distribution to prospective
investors unless accompanied or preceded by a prospectus of the Harris Insight
Funds. Please read the prospectus carefully before you invest or send money.
DISTRIBUTOR:
Funds Distributor, Inc.
HSA0696
