SEMIANNUAL
REPORT
MARCH 31, 1998
TIP FUNDS [LOGO OMITTED]
TRUSTED INSTITUTIONAL PARTNERS
================================================================================
Clover Equity Value Fund
================================================================================
Clover Small Cap Value Fund
================================================================================
Clover Max Cap Value Fund
================================================================================
Clover Fixed Income Fund
================================================================================
This information must be preceded or accompanied
by a current prospectus for each Fund described.
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1998 (Unaudited)
Market
Value
CLOVER EQUITY VALUE FUND Shares (000)
- --------------------------------------------------------
COMMON STOCKS (88.2%)
BROADCASTING, NEWSPAPERS & ADVERTISING (3.1%)
Comcast UK Cable
Partners Limited* 295,000 $ 3,946
-------
CHEMICALS (4.4%)
Agrium 260,000 3,672
Geon 85,800 1,920
-------
5,592
-------
COMMUNICATIONS EQUIPMENT (3.8%)
Harman International 70,000 3,080
Harris 34,000 1,772
-------
4,852
-------
COMPUTERS & SERVICES (16.9%)
American Management Systems* 95,000 2,612
MAPICS* 450,900 7,975
Marcam Solutions* 180,000 1,423
Policy Management Systems* 50,500 4,056
SunGard Data Systems* 150,000 5,522
-------
21,588
-------
ENTERTAINMENT (2.7%)
King World Productions* 120,000 3,510
-------
FINANCIAL SERVICES (1.9%)
Cash America International 150,000 2,438
-------
FOOD, BEVERAGE & TOBACCO (1.7%)
United Biscuits Holdings, ADR 500,000 2,150
-------
INSURANCE (5.9%)
Acceptance Insurance* 60,000 1,429
HSB Group 25,000 1,681
Renaissancere Holdings 40,000 2,000
Safeco 45,000 2,460
-------
7,570
-------
MACHINERY (2.0%)
AGCO 85,000 2,523
-------
MEDICAL PRODUCTS & SERVICES (5.2%)
Mallinckrodt 40,000 1,580
MedPartners* 460,000 4,715
Oncor* 225,700 395
-------
6,690
-------
Market
Value
Shares (000)
- --------------------------------------------------------
PAPER & PAPER PRODUCTS (1.2%)
Willamette Industries 40,000 $ 1,502
-------
PETROLEUM & FUEL PRODUCTS (6.0%)
Nuevo Energy* 40,000 1,432
Phillips Petroleum 35,000 1,748
Union Texas Petroleum 120,000 2,655
USX-Marathon Group 50,000 1,881
-------
7,716
-------
PRINTING & PUBLISHING (1.4%)
American Greetings, Cl A 40,000 1,840
-------
REAL ESTATE INVESTMENT TRUSTS (3.6%)
Chateau Communities 50,000 1,487
Manufactured Home
Communities 75,000 1,941
Storage Trust Realty 50,000 1,234
-------
4,662
-------
RETAIL (5.1%)
Department 56* 80,000 3,040
Kroger* 75,000 3,464
-------
6,504
-------
RUBBER & PLASTIC (4.5%)
Hanna 140,000 3,421
Myers Industries 113,400 2,367
-------
5,788
-------
STEEL & STEEL WORKS (1.2%)
UCAR International* 50,000 1,569
-------
TELEPHONES & TELECOMMUNICATION (11.2%)
COMSAT 70,000 2,411
Frontier 300,000 9,769
Sprint 31,000 2,098
-------
14,278
-------
TRANSPORTATION SERVICES (1.4%)
CSX 29,000 1,726
-------
The accompanying notes are an integral part of the financial statements.
1
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1998 (Unaudited)
Shares/ Market
CLOVER EQUITY VALUE FUND Face Amount Value
(Concluded) (000) (000)
- --------------------------------------------------------
TRUCKING (1.6%)
Roadway Express 5,000 $ 123
Yellow* 100,000 1,913
-------
2,036
-------
WHOLESALE (3.4%)
Avnet 40,000 2,303
Supervalu 45,000 2,098
-------
4,401
-------
TOTAL COMMON STOCKS
(Cost $90,496) 112,881
-------
CONVERTIBLE BONDS (1.3%)
Danka Business Systems,
Convertible to
34.3348 Shares
6.750%, 04/01/02 $1,000 956
Meditrust,
Convertible to
27.6396 Shares
7.500%, 03/01/01 600 638
-------
TOTAL CONVERTIBLE BONDS
(Cost $1,478) 1,594
-------
CORPORATE OBLIGATIONS (3.0%)
Canandaigua Wine
8.750%, 12/15/03 1,500 1,547
Tenet Healthcare
8.000%, 01/15/05 2,300 2,358
-------
TOTAL CORPORATE OBLIGATIONS
(Cost $3,756) 3,905
-------
Face Market
Amount Value
(000) (000)
- --------------------------------------------------------
REPURCHASE AGREEMENT (4.7%)
Lehman Brothers
5.25%, dated 03/31/98,
matures 04/01/98, repurchase
price $6,086,356 (collateralized
by U.S. Treasury Notes, par
value $6,021,874, 5.375%-
6.50%, matures 05/31/98-
04/30/99: market
value $6,242,270) $6,086 $ 6,086
--------
TOTAL REPURCHASE AGREEMENT
(Cost $6,086) 6,086
--------
TOTAL INVESTMENTS (97.2%)
(Cost $101,816) 124,466
--------
OTHER ASSETS AND LIABILITIES, NET (2.8%) 3,563
--------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 6,725,876 outstanding
shares of beneficial interest 96,044
Undistributed net investment income 41
Accumulated net realized gain
on investments 9,294
Net unrealized appreciation
on investments 22,650
--------
TOTAL NET ASSETS (100.0%) $128,029
========
Net Asset Value, Offering and
Redemption Price Per Share $ 19.04
========
*NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1998 (Unaudited)
Market
Value
CLOVER SMALL CAP VALUE FUND Shares (000)
- --------------------------------------------------------
COMMON STOCKS (97.9%)
AGRICULTURE (0.1%)
Cagle's, Cl A 1,600 $ 17
--------
AIR TRANSPORTATION (1.6%)
Mesa Air Group* 30,000 276
--------
APPAREL/TEXTILES (1.5%)
Conso Products* 6,000 51
Crown Crafts 8,000 168
Dixie Group 4,000 46
--------
265
--------
AUTOMOTIVE (5.1%)
Exide 6,600 112
Global Motorsport Group* 5,000 91
Jason* 14,000 135
Monro Muffler Brake* 18,000 299
Oshkosh Truck 4,300 82
Republic Automotive Parts* 9,400 170
--------
889
--------
BANKS (2.9%)
Business Bank of California* 3,000 42
Clovis Community Bank of CA 2,500 60
Cortland Bancorp, Cortland, OH 1,000 58
First Federal S&L of Alpena 3,000 56
First Place Financial Corp* 900 58
National Bankshares VA 2,200 59
Pioneer Bankcorporation NV* 2,000 86
Ridgestone Financial Services* 2,500 45
Wake Forest Federal
Savings & Loan 2,000 43
--------
507
--------
BEAUTY PRODUCTS (1.5%)
Allou Health & Beauty, Cl A* 12,000 102
Jean Philippe Fragrances* 19,500 149
--------
251
--------
BROADCASTING, NEWSPAPERS & ADVERTISING (5.2%)
Comcast UK Cable Partners Ltd* 39,500 528
Four Media* 15,500 145
Jones Intercable, Cl A* 12,300 224
--------
897
--------
Market
Value
Shares (000)
- --------------------------------------------------------
CHEMICALS (6.6%)
Bush Boake Allen* 10,000 $ 319
CPAC* 32,000 356
Quaker Chemical 13,000 247
Terra Industries 14,000 153
Triple S Plastics* 10,000 63
--------
1,138
--------
COMMUNICATIONS EQUIPMENT (3.2%)
Aseco* 18,400 142
California Microwave* 2,500 53
Performance Technologies* 16,000 236
TII Industries* 21,500 114
--------
545
--------
COMPUTERS & SERVICES (9.9%)
Bell & Howell* 5,000 137
Carnegie Group Inc* 21,200 76
Data General* 13,500 239
MAPICS* 45,000 796
Marcam Solutions* 11,000 87
Metatec, Cl A* 42,300 201
Miltope Group Inc* 5,000 16
Santa Cruz Operation* 11,000 56
Trident Microsystems* 14,000 104
--------
1,712
--------
CONSUMER PRODUCTS (2.4%)
Oil-Dri 15,700 251
Perfumania* 23,000 60
Vans* 10,000 106
--------
417
--------
ENTERTAINMENT (1.0%)
Aztar* 20,000 173
--------
ENVIRONMENTAL SERVICES (0.1%)
Gundle/Slt Environmental* 3,000 16
--------
FINANCIAL SERVICES (3.9%)
Capital Senior Living Corp.* 11,000 153
Cash America International 25,500 414
Ezcorp* 9,000 107
--------
674
--------
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1998 (Unaudited)
Market
CLOVER SMALL CAP VALUE FUND Value
(Continued) Shares (000)
- --------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (2.8%)
Canandaigua Wine, Cl A* 3,100 $ 177
Chock Full O'Nuts* 13,100 102
Imperial Holly 11,000 106
Sanderson Farms 8,000 101
--------
486
--------
INSURANCE (2.8%)
Acceptance Insurance* 9,000 214
LaSalle Re Holdings 4,000 168
Rightchoice Managed Care* 3,400 33
Standard Management* 10,000 74
--------
489
--------
LEISURE PRODUCTS (3.5%)
GT Bicycles* 78,100 483
Riddell Sports* 21,500 118
--------
601
--------
LUMBER & WOOD PRODUCTS (1.1%)
Cavalier Homes 16,000 183
--------
MACHINERY (4.4%)
Brown & Sharpe
Manufacturing, Cl A* 23,000 273
Daw Technologies* 35,000 50
Defiance 12,000 99
Devlieg-Bullard* 5,000 13
Farrel 10,000 61
Tecumseh Products, Cl A 2,100 113
Transpro 19,500 154
--------
763
--------
MARINE TRANSPORTATION (0.5%)
Maritrans 8,300 91
--------
MEDICAL PRODUCTS & SERVICES (3.7%)
Advocat* 13,000 131
Laserscope* 25,000 72
Mariner Health Group* 10,200 175
MedPartners* 10,200 105
Market
Value
Shares (000)
- --------------------------------------------------------
Oncor* 18,500 $ 32
Physicians Resource Group* 23,000 85
Staff Builders* 20,000 45
--------
645
--------
METALS & MINING (0.3%)
Souther Peru Copper 3,800 57
--------
MISCELLANEOUS BUSINESS SERVICES (1.0%)
Franklin Electric Publishing* 15,200 173
--------
PETROLEUM & FUEL PRODUCTS (1.0%)
HS Resources* 7,500 117
Tesoro Petroleum* 3,300 59
--------
176
--------
PRECIOUS METALS (1.1%)
Campbell Resources* 200,000 94
Golden Star Resources* 29,000 92
--------
186
--------
PRINTING & PUBLISHING (2.8%)
Cadmus Communications 7,900 188
Norwood Promotional Products* 14,700 292
--------
480
--------
PROFESSIONAL SERVICES (2.4%)
Exponent Inc* 3,000 30
Inacom* 7,000 193
Moneygram Payment Systems* 8,500 129
Right Management Consultants* 5,000 59
--------
411
--------
REAL ESTATE INVESTMENT TRUSTS (4.6%)
Entertainment Properties Trust* 10,000 196
Home Properties of New York 12,600 350
National Golf Properties 5,000 159
Storage Trust Realty 3,800 94
--------
799
--------
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1998 (Unaudited)
Market
CLOVER SMALL CAP VALUE FUND Value
(Concluded) Shares (000)
- --------------------------------------------------------
RETAIL (8.9%)
Books-A-Million* 5,000 $ 29
Building Material Holding* 6,500 89
Buttrey Food & Drug Stores* 12,700 189
Cache* 46,000 170
Department 56* 5,400 205
Jacobson Stores* 20,100 281
Max & Erma's Restaurants* 15,000 98
Michael Anthony Jewelers* 12,700 31
Multiple Zones* 28,500 107
Service Merchandise* 15,000 30
Tandycrafts* 59,200 311
--------
1,540
--------
RUBBER & PLASTIC (2.6%)
American Biltrite 1,000 30
Myers Industries 20,000 418
--------
448
--------
SEMI-CONDUCTORS/INSTRUMENTS (3.3%)
Exar* 6,000 130
Innovex 9,000 219
Interphase* 20,000 140
Tegal* 12,700 90
--------
579
--------
STEEL & STEEL WORKS (1.1%)
Inland Steel Industries 7,200 199
--------
TELEPHONES & TELECOMMUNICATION (0.6%)
CoreComm* 6,000 100
--------
TRUCKING (2.7%)
American Freightways* 30,000 330
Celadon Group* 9,400 139
--------
469
--------
WHOLESALE (1.7%)
Moore Medical* 5,000 57
Nash Finch 7,000 139
Patrick Industries 6,000 93
--------
289
--------
Face Market
Amount Value
(000) (000)
- --------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $14,867) $ 16,941
--------
REPURCHASE AGREEMENT (2.0%)
Lehman Brothers
5.25%, dated 03/31/98,
matures 04/01/98, repurchase
price $354,847 (collateralized
by U.S. Treasury Note, par
value $357,547, 5.375%,
matures 05/31/98: total
market value $363,825) $355 355
--------
TOTAL REPURCHASE AGREEMENT
(Cost $355) 355
--------
TOTAL INVESTMENTS (99.9%)
(Cost $15,222) 17,296
--------
OTHER ASSETS AND LIABILITIES, NET (0.1%) 13
--------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 1,190,104 outstanding
shares of beneficial interest 14,571
Net investment loss (53)
Accumulated net realized gain
on investments 717
Net unrealized appreciation
on investments 2,074
--------
TOTAL NET ASSETS (100.0%) $ 17,309
========
Net Asset Value, Offering and
Redemption Price Per Share $14.54
========
*NON-INCOME PRODUCING SECURITY
CL -- CLASS
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1998 (Unaudited)
Market
Value
CLOVER MAX CAP VALUE FUND Shares (000)
- --------------------------------------------------------
COMMON STOCKS (95.4%)
AEROSPACE & DEFENSE (1.0%)
Litton Industries* 300 $ 17
--------
AIRLINES (1.3%)
British Airways, PLC, ADR 200 21
--------
AUTOMOTIVE (1.2%)
Ford Motor 100 6
Honda Motor 200 14
--------
20
--------
AUTO PARTS (5.3%)
Cummins Engine 500 28
Genuine Parts 700 27
Meritor Automotive 1,200 32
--------
87
--------
BANKS (3.8%)
JP Morgan 150 20
Norwest 500 21
PNC Bank 375 22
--------
63
--------
BEAUTY PRODUCTS (2.0%)
International Flavors &
Fragrances 700 33
--------
CHEMICALS (2.1%)
Dow Chemical 350 34
--------
COMMUNICATIONS EQUIPMENT (1.1%)
Harris 350 18
--------
COMPUTERS & SERVICES (4.2%)
Bay Networks* 350 9
NCR* 500 17
Seagate Technology* 600 15
Silicon Graphics* 2,000 28
--------
69
--------
CONSUMER PRODUCTS (0.9%)
General Mills 200 15
--------
Market
Value
Shares (000)
- --------------------------------------------------------
CONTAINERS & PACKAGING (1.9%)
Crown Cork & Seal 600 $ 32
--------
DRUGS (1.3%)
Abbott Laboratories 150 11
Merck 75 10
--------
21
--------
ELECTRICAL UTILITIES (1.1%)
Central & South West 300 8
WPL Holdings 300 10
--------
18
--------
FOOD, BEVERAGE & TOBACCO (7.7%)
Anheuser Busch 600 28
Conagra 900 29
McCormick 900 29
Philip Morris 400 17
RJR Nabisco 800 25
--------
128
--------
GAS/NATURAL GAS (1.9%)
National Fuel & Gas 400 19
Nicor 300 13
--------
32
--------
GLASS PRODUCTS (1.3%)
Corning 500 22
--------
HOUSEHOLD PRODUCTS (1.6%)
Whirlpool 400 27
--------
INDUSTRIAL ELECTRONICS (1.7%)
Raytheon Company, Cl A 6 --
Raytheon Company, Cl B 500 29
--------
29
--------
INSURANCE (1.3%)
Safeco 400 22
--------
LUMBER & WOOD PRODUCTS (2.4%)
Georgia-Pacific 600 39
--------
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1998 (Unaudited)
Market
CLOVER MAX CAP VALUE FUND Value
(Continued) Shares (000)
- --------------------------------------------------------
MACHINERY (2.2%)
Black & Decker 400 $ 21
Timken 450 15
--------
36
--------
MEASURING DEVICES (1.0%)
EG & G 550 16
--------
MEDICAL PRODUCTS & SERVICES (6.4%)
Baxter International 500 28
Healthsouth* 400 11
Mallinckrodt 400 16
MedPartners* 1,600 16
Pall 1,650 35
--------
106
--------
METALS & MINING (1.3%)
Freeport-McMoran
Copper & Gold, Cl B 600 12
Reynolds Metals 150 9
--------
21
--------
PAPER & PAPER PRODUCTS (5.2%)
Chesapeake 700 24
Consolidated Papers 300 19
Potlatch 350 15
Westvaco 300 9
Weyerhaeuser 350 20
--------
87
--------
PETROLEUM & FUEL PRODUCTS (4.2%)
Kerr-McGee 300 21
Occidental Petroleum 1,400 41
Phillips Petroleum 150 7
--------
69
--------
PETROLEUM REFINING (0.9%)
Amoco 100 9
Ashland 100 6
--------
15
--------
Market
Value
Shares (000)
- --------------------------------------------------------
PROFESSIONAL SERVICES (1.4%)
Dun & Bradstreet 700 $ 24
--------
RAILROADS (2.2%)
Norfolk Southern 800 30
Union Pacific 100 6
--------
36
--------
REAL ESTATE INVESTMENT TRUSTS (4.8%)
Camden Property Trust 800 24
Equity Residential
Properties Trust 600 30
Meditrust 800 25
--------
79
--------
RESTAURANTS (1.7%)
Wendy's International 1,300 29
--------
RETAIL (5.9%)
American Stores 500 13
Dillards Incorporated, Cl A 800 30
Federated Department Stores* 600 31
Toys "R" Us* 800 24
--------
98
--------
RUBBER & PLASTIC (1.2%)
Rubbermaid 700 20
--------
SEMI-CONDUCTORS/INSTRUMENTS (4.4%)
AMP 700 31
Intel 250 19
National Semiconductor* 1,100 23
--------
73
--------
STEEL & STEEL WORKS (0.4%)
Alcan Aluminum 200 6
--------
TELEPHONES & TELECOMMUNICATION (3.6%)
Frontier 850 28
Sprint 300 20
Telephone & Data Systems 250 12
--------
60
--------
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1998 (Unaudited)
Face Market
CLOVER MAX CAP VALUE FUND Amount Value
(Concluded) (000) (000)
- --------------------------------------------------------
TRANSPORTATION SERVICES (2.2%)
CSX $300 $ 18
FDX* 150 11
Ryder System 200 8
--------
37
--------
WHOLESALE (1.3%)
Supervalu 450 21
--------
TOTAL COMMON STOCKS
(Cost $1,485) 1,580
--------
REPURCHASE AGREEMENT (5.0%)
Lehman Brothers
5.25%, dated 03/31/98,
matures 04/01/98, repurchase
price $82,633 (collateralized by
U.S. Treasury Note, par value
$83,262, 5.375%, matures
05/31/98: market
value $84,724) 83 83
--------
TOTAL REPURCHASE AGREEMENT
(Cost $83) 83
--------
TOTAL INVESTMENTS (100.4%)
(Cost $1,568) 1,663
--------
OTHER ASSETS AND LIABILITIES, NET (-0.4%) (6)
--------
Market
Value
(000)
- --------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 149,007 outstanding
shares of beneficial interest $ 1,533
Accumulated net realized gain
on investments 29
Net unrealized appreciation
on investments 95
--------
TOTAL NET ASSETS (100.0%) $ 1,657
========
Net Asset Value, Offering
and Redemption Price Per Share $11.12
========
*NON-INCOME PRODUCING SECURITY
ADR--AMERICAN DEPOSITORY RECEIPT
CL--CLASS
PLC--PUBLIC LIMITED COMPANY
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1998 (Unaudited)
Face Market
Amount Value
CLOVER FIXED INCOME FUND (000) (000)
- --------------------------------------------------------
CORPORATE OBLIGATIONS (48.2%)
ENTERTAINMENT (3.7%)
Mattel
6.750%, 05/15/00 $ 350 $ 356
Walt Disney
6.375%, 03/30/01 750 759
--------
1,115
--------
FINANCE (3.1%)
General Motors Acceptance
7.750%, 01/15/99 400 405
Texaco Capital MTN
7.420%, 07/15/02 500 526
--------
931
--------
FINANCIAL SERVICES (1.6%)
Pitney Bowes Credit
5.650%, 01/15/03 500 491
--------
FOOD, BEVERAGE & TOBACCO (8.3%)
Anheuser Busch
6.750%, 08/01/03 750 774
Bass America
6.750%, 08/01/99 450 454
Canandaigua Wine
8.750%, 12/15/03 1,000 1,031
Grand Metropolitan Investment
6.500%, 09/15/99 250 252
--------
2,511
--------
INDUSTRIAL (0.7%)
Masco
6.125%, 09/15/03 200 198
--------
MEDICAL PRODUCTS & SERVICES (10.2%)
Abbott Laboratories
5.600%, 10/01/03 700 686
Eli Lilly
6.250%, 03/15/03 750 756
Tenet Healthcare
8.000%, 01/15/05 1,100 1,127
Zeneca Wilmington
6.300%, 06/15/03 500 502
--------
3,071
--------
Face Market
Amount Value
(000) (000)
- --------------------------------------------------------
PRINTING & PUBLISHING (4.7%)
Knight-Ridder
8.500%, 09/01/01 $ 750 $ 774
McGraw-Hill
9.430%, 09/01/00 600 645
--------
1,419
--------
REAL ESTATE INVESTMENT TRUSTS (1.7%)
Meditrust
7.000%, 08/15/07 500 510
--------
RETAIL (1.7%)
Dayton Hudson
7.500%, 03/01/99 500 507
--------
UTILITIES (12.5%)
Detroit Edison
6.560%, 05/01/01 500 507
Florida Power & Light
5.500%, 07/01/99 800 795
Northern Illinois Gas
6.750%, 06/01/02 1,000 1,021
Northern States Power
7.875%, 10/01/01 6500 687
5.875%, 03/01/03 750 745
--------
3,755
--------
TOTAL CORPORATE OBLIGATIONS
(Cost $14,299) 14,508
--------
U.S. GOVERNMENT MORTGAGE-BACKED BONDS (12.5%)
FHLMC, Pool # 252641
8.000%, 07/01/07 39 41
FHLMC, Pool # 277449
8.500%, 09/01/09 16 17
FHLMC, REMIC, Series
1546, Cl H
7.000%, 12/15/22 390 397
FNMA, Pool # 369214
5.000%, 04/01/09 356 336
FNMA, REMIC, Series
1993-118 G
6.500%, 11/25/06 1,000 1,009
FNMA, REMIC, Series
1993-95, Cl PE
6.500%, 10/25/07 750 756
FNMA, REMIC, Series
G93-21, Cl VE
6.600%, 11/25/07 184 183
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1998 (Unaudited)
Face Market
CLOVER FIXED INCOME FUND Amount Value
(Concluded) (000) (000)
- --------------------------------------------------------
GNMA, Pool # 13125
8.000%, 10/15/06 $ 33 $ 34
GNMA, Pool # 187899
8.000%, 05/15/17 220 227
GNMA, Pool # 196477
10.000%, 04/15/10 84 90
GNMA, Pool # 202886
8.000%, 03/15/17 218 226
GNMA, Pool # 221235
8.500%, 07/15/17 92 97
GNMA, Pool # 331786
8.000%, 08/15/22 335 347
--------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED BONDS
(Cost $3,707) 3,760
--------
U.S. TREASURY OBLIGATIONS (31.4%)
U.S. Treasury Bonds
7.500%, 11/15/16 1,250 1,458
8.000%, 11/15/21 750 934
7.250%, 08/15/22 1,500 1,731
U.S. Treasury Notes
6.250%, 06/30/02 1,000 1,020
7.250%, 05/15/04 150 162
7.875%, 11/15/04 1,000 1,117
7.500%, 02/15/05 300 330
6.500%, 05/15/05 950 991
6.500%, 08/15/05 250 261
6.500%, 10/15/06 1,000 1,049
U.S. Treasury STRIPS
0.000%, 05/15/20 1,500 398
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $9,006) 9,451
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS (1.7%)
FNMA, MTN
6.250%, 01/14/04 250 249
Private Export Funding
6.620%, 10/01/05 250 260
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $481) 509
--------
Face Market
Amount Value
(000) (000)
- --------------------------------------------------------
CONVERTIBLE BOND (2.0%)
Meditrust,
Convertible to
27.6396 Shares
7.500%, 03/01/01 $570 $ 606
--------
TOTAL CONVERTIBLE BOND
(Cost $573) 606
--------
REPURCHASE AGREEMENT (2.8%)
Lehman Brothers
5.25%, dated 03/31/98,
matures 04/01/98, repurchase
price $862,901 (collateralized
by U.S. Treasury Note, par
value $852,499, 6.50%,
matures 04/30/99: market
value $883,707) 862 862
--------
TOTAL REPURCHASE AGREEMENT
(Cost $862) 862
--------
TOTAL INVESTMENTS (98.6%)
(Cost $28,928) 29,696
--------
OTHER ASSETS AND LIABILITIES, NET (1.4%) 428
--------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 3,008,278 outstanding
shares of beneficial interest 29,355
Undistributed net investment income 11
Accumulated net realized loss
on investments (10)
Net unrealized appreciation
on investments 768
--------
TOTAL NET ASSETS (100.0%) $ 30,124
========
Net Asset Value, Offering and
Redemption Price Per Share $ 10.01
========
CL--CLASS
FHLMC--FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA--FEDERAL NATIONAL MORTGAGE ASSOCIATION
GNMA--GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
MTN--MEDIUM TERM NOTE
REMIC--REAL ESTATE MORTGAGE INVESTMENT CONDUIT
STRIPS--SEPARATELY TRADED AND REGISTERED INTEREST AND PRINCIPAL SECURITIES
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS (000) CLOVER FUNDS
For the six-month period ended March 31, 1998 (Unaudited)
CLOVER CLOVER CLOVER CLOVER
EQUITY SMALL CAP MAX CAP FIXED
VALUE VALUE VALUE INCOME
FUND FUND FUND (1) FUND
- ---------------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C> <C>
Dividends ....................................... $ 733 $ 41 $ 9 $ --
Interest ........................................ 360 13 2 873
- ---------------------------------------------------------------------------------------------------------------------------
Total Investment Income........................ 1,093 54 11 873
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ........................ 451 65 3 60
Investment Advisory Fee Waiver .................. (13) (39) (3) (37)
Reimbursements by Advisor........................ -- -- (58) --
Administrator Fees .............................. 68 37 30 37
Custodian Fees .................................. 5 4 3 3
Transfer Agent Fees ............................. 77 16 11 13
Professional Fees ............................... 37 7 3 7
Trustee Fees .................................... 3 1 -- 1
Registration Fees ............................... 15 9 8 8
Pricing Fees .................................... 1 -- 1 1
Printing Expense ................................ 20 4 2 4
Amortization of Deferred Organizational Costs ... 1 3 4 2
Insurance and Other Fees ........................ 5 -- -- 1
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses ................................ 670 107 4 100
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) .............. 423 (53) 7 773
- ---------------------------------------------------------------------------------------------------------------------------
Net Realized Gain From Securities Sold .......... 9,256 985 29 --
Net Unrealized Appreciation (Depreciation)
of Investment Securities ...................... 4,980 (892) 95 253
- ---------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain
on Investments .............................. 14,236 93 124 253
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
From Operations .............................. $14,659 $ 40 $131 $1,026
- ---------------------------------------------------------------------------------------------------------------------------
<FN>
(1) Clover Max Cap Value Fund commenced operations on October 31, 1997.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS (000)
For the six-month period ended March 31, 1998 (Unaudited) and the eleven-month period ended September 30, 1997.
CLOVER EQUITY CLOVER SMALL CAP
VALUE FUND VALUE FUND
------------------------ ------------------------
FOR THE FOR THE
SIX-MONTH ELEVEN-MONTH SIX-MONTH ELEVEN-MONTH
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
3/31/98 9/30/97 3/31/98 9/30/97
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Activities:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) ............................. $ 423 $ 1,100 $ (53) $ (50)
Net Realized Gain on Securities Sold ..................... 9,256 12,612 985 1,014
Net Unrealized Appreciation (Depreciation) of
Investment Securities .................................. 4,980 8,409 (892) 2,889
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Operations ...................................... 14,659 22,121 40 3,853
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
Net Investment Income .................................... (420) (1,119) -- --
Realized Capital Gain .................................... (12,612) (3,929) (1,235) (60)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions .................................... (13,032) (5,048) (1,235) (60)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Proceeds from Shares Issued .............................. 13,518 28,919 3,645 7,760
Proceeds from Shares Issued in Lieu of
Cash Distributions ..................................... 12,746 4,923 1,219 59
Cost of Shares Redeemed .................................. (17,721) (18,106) (1,639) (828)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets From
Capital Share Transactions ........................... 8,543 15,736 3,225 6,991
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets............................ 10,170 32,809 2,030 10,784
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period .................................... 117,859 85,050 15,279 4,495
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period .......................................... $128,029(1) $117,859(1) $17,309 $15,279
====================================================================================================================================
Shares Issued and Redeemed:
Issued ................................................... 741 1,714 258 604
Issued in Lieu of Cash Distributions ..................... 732 297 96 5
Redeemed ................................................. (954) (1,054) (122) (65)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Share Transactions ..................... 519 957 232 544
- ------------------------------------------------------------------------------------------------------------------------------------
CLOVER MAX CAP CLOVER FIXED
VALUE FUND INCOME FUND
---------------------- ------------------------
FOR THE FOR THE
PERIOD SIX-MONTH ELEVEN-MONTH
10/31/97 THRU PERIOD ENDED PERIOD ENDED
3/31/98 (3) 3/31/98 9/30/97
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Activities:
<S> <C> <C> <C>
Net Investment Income (Loss) ............................. $ 7 $ 773 $ 1,216
Net Realized Gain on Securities Sold ..................... 29 -- 50
Net Unrealized Appreciation (Depreciation) of
Investment Securities .................................. 95 253 349
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Operations ...................................... 131 1,026 1,615
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
Net Investment Income .................................... (7) (780) (1,209)
Realized Capital Gain .................................... -- (52) (204)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions .................................... (7) (832) (1,413)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Proceeds from Shares Issued .............................. 1,528 9,949 7,459
Proceeds from Shares Issued in Lieu of
Cash Distributions ..................................... 7 788 1,346
Cost of Shares Redeemed .................................. (2) (4,484) (5,061)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets From
Capital Share Transactions ........................... 1,533 6,253 3,744
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets............................ 1,657 6,447 3,946
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period .................................... -- 23,677 19,731
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period .......................................... $1,657 $30,124(2) $23,677(2)
====================================================================================================================================
Shares Issued and Redeemed:
Issued ................................................... 148 989 765
Issued in Lieu of Cash Distributions ..................... 1 78 138
Redeemed ................................................. -- (446) (519)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Share Transactions ..................... 149 621 384
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
(1) Includes undistributed net investment income of $41 and $38 as of March 31,
1998 and September 30, 1997, respectively.
(2) Includes undistributed net investment income of $11 and $18, as of March 31,
1998 and September 30, 1997, respectively.
(3) The Clover Max Cap Value Fund commenced operations October 31, 1997.
</FN>
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
12 & 13
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS CLOVER FUNDS
For the six-month period ended March 31, 1998 (Unaudited) and the periods ended October 31,
For a Share Outstanding Throughout the Period
Ratio of Net
Net Realized and Net Net Investment
Asset Net Unrealized Distributions Distributions Asset Assets Ratio Income
Value Investment Gains or from Net from Value End of Expenses or (Loss)
Beginning Income (Losses) on Investment Capital End of Period to Average to Average
of Period (Loss) Investments Income Gains of Period Total Return (000) Net Assets Net Assets
--------- ---------- ------------ ------------- ------------- ---------- ------------ --------- ----------- ------------
- ------------------------
CLOVER EQUITY VALUE FUND
- ------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1998 $18.99 0.06 2.07 (0.06) (2.02) $19.04 12.30%+ $128,029 1.10%* 0.69%*
1997(1) $16.20 0.18 3.54 (0.18) (0.75) $18.99 23.86%+ $117,859 1.10%* 1.18%*
1996 $15.29 0.19 2.15 (0.22) (1.21) $16.20 16.47% $ 85,050 1.10% 1.32%
1995 $13.74 0.24 2.46 (0.22) (0.93) $15.29 21.25% $ 51,647 1.10% 1.82%
1994 $11.94 0.08 2.01 (0.08) (0.21) $13.74 17.80% $ 25,249 1.14% 0.71%
1993 $10.45 0.10 1.54 (0.10) (0.05) $11.94 15.83% $ 15,070 1.18% 0.89%
1992(2) $10.00 0.10 0.44 (0.09) -- $10.45 5.94%* $ 9,005 1.20%* 1.15%*
- ---------------------------
CLOVER SMALL CAP VALUE FUND
- ---------------------------
1998 $15.94 (0.03) (0.20) -- (1.17) $14.54 (0.35)%+ $ 17,309 1.40%* (0.70)%*
1997(1) $10.87 (0.04) 5.24 -- (0.13) $15.94 48.23%+ $ 15,279 1.40%* (0.64)%*
1996(3) $10.00 0.02 0.88 (0.03) -- $10.87 8.97%+ $ 4,495 1.40%* (0.03)%*
- -------------------------
CLOVER MAX CAP VALUE FUND
- -------------------------
1998(4) $10.00 0.07 1.12 (0.07) -- $11.12 11.94%+ $ 1,657 0.95%* 2.10%*
- ------------------------
CLOVER FIXED INCOME FUND
- ------------------------
1998 $ 9.92 0.29 0.11 (0.29) (0.02) $10.01 4.10%+ $ 30,124 0.75%* 5.77%*
1997(1) $ 9.85 0.54 0.16 (0.54) (0.09) $ 9.92 7.43%+ $ 23,677 0.75%* 6.03%*
1996 $ 9.89 0.59 0.01 (0.59) (0.05) $ 9.85 6.26% $ 19,731 0.80% 6.00%
1995 $ 9.14 0.58 0.77 (0.58) (0.02) $ 9.89 15.27% $ 14,685 0.80% 6.13%
1994 $10.85 0.57 (0.92) (0.57) (0.79) $ 9.14 (3.54)% $ 9,762 0.80% 5.88%
1993 $10.23 0.61 0.72 (0.61) (0.10) $10.85 13.40% $ 7,966 0.78% 5.62%
1992(2) $10.00 0.56 0.23 (0.56) -- $10.23 9.05%* $ 8,982 0.80%* 6.28%*
</TABLE>
<TABLE>
<CAPTION>
Ratio of Net
Ratio of Investment
Expenses Income (Loss)
to Average to Average
Net Assets Net Assets
(Excluding (Excluding Portfolio Average
Waivers and Waivers and Turnover Commission
Contributions) Contributions Rate Rate(5)
-------------- ------------- ---------- ----------
- ------------------------
CLOVER EQUITY VALUE FUND
- ------------------------
<S> <C> <C> <C> <C>
1998 1.12%* 0.67%* 24.15% $0.0536
1997(1) 1.15%* 1.13%* 51.64% $0.0551
1996 1.21% 1.21% 51.36% $0.0577
1995 1.20% 1.72% 84.76% n/a
1994 1.30% 0.55% 58.44% n/a
1993 1.51% 0.56% 82.51% n/a
1992(2) 2.09%* 0.26%* 31.00% n/a
- ---------------------------
CLOVER SMALL CAP VALUE FUND
- ---------------------------
1998 1.91%* (1.21)%* 32.67% $0.0528
1997(1) 2.43%* (1.67)%* 59.03% $0.0461
1996(3) 5.29%* (3.92)%* 14.17% $0.0470
- -------------------------
CLOVER MAX CAP VALUE FUND
- -------------------------
1998(4) 17.82%* (14.77)%* 25.38% $0.0501
- ------------------------
CLOVER FIXED INCOME FUND
- ------------------------
1998 1.03%* 5.49%* 2.50% n/a
1997(1) 1.02%* 5.76%* 11.83% n/a
1996 1.11% 5.69% 24.52% n/a
1995 1.40% 5.53% 35.84% n/a
1994 1.46% 5.22% 11.11% n/a
1993 1.29% 5.11% 68.61% n/a
1992(2) 1.76%* 5.32%* 113.00% n/a
<FN>
* Annualized
+ Returns are for the period indicated and have not been annualized.
(1)On June 25, 1997 the Board of Trustees of TIP Funds approved a change in the
Clover Funds' fiscal year end from October 31 to September 30, effective
September 30, 1997. (2)The Clover Fixed Income Fund and the Clover Equity Value
Fund commenced operations on December 6, 1991.
(3)The Clover Small Cap Value Fund commenced operations on February 28, 1996.
(4)The Clover Max Cap Value Fund commenced operations on October 31, 1997.
(5)Average commission rate paid per share for the security purchases and sales
made during the period. Presentation of the rate is only required for fiscal
years beginning after September 1, 1995.
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS CLOVER FUNDS
March 31, 1998 (Unaudited)
1. ORGANIZATION:
TIP FUNDS (the "Trust") is organized as a Massachusetts business trust. The
Trust is registered under the Investment Company Act of 1940, as amended, as a
diversified open-end management investment company with twelve portfolios. The
financial statements included herein are those of the Clover Equity Value Fund,
the Clover Small Cap Value Fund, the Clover Max Cap Value Fund and the Clover
Fixed Income Fund (the "Funds"). The financial statements of the remaining
portfolios are presented separately. The assets of each portfolio are
segregated, and a Shareholder's interest is limited to the portfolio in which
shares are held. The Funds' prospectus provides a description of each Fund's
investment objectives, policies and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies followed by
the Funds.
SECURITY VALUATION -- Investments in equity securities which are traded on
a national exchange (or reported on the NASDAQ national market system) are
stated at the last quoted sales price if readily available for such equity
securities on each business day; other equity securities traded in the
over-the-counter market and listed equity securities for which no sale was
reported on that date are stated at the last quoted bid price. Debt
obligations exceeding sixty days to maturity for which market quotations
are readily available are valued at the most recently quoted bid price.
Debt obligations with sixty days or less remaining until maturity may be
valued at their amortized cost, which approximates market value.
FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a
regulated investment company by complying with the appropriate provisions
of the Internal Revenue Code of 1986, as amended. Accordingly, no
provisions for Federal income taxes are required.
SECURITY TRANSACTIONS AND RELATED INCOME -- Security transactions are
accounted for on the date the security is purchased or sold (trade date).
Dividend income is recognized on the ex-dividend date, and interest income
is recognized on the accrual basis. Costs used in determining realized
gains and losses on the sales of investment securities are those of the
specific securities sold adjusted for the accretion and amortization of
purchase discounts and premiums during the respective holding period.
Purchase discounts and premiums on securities held by the Funds are
accreted and amortized to maturity using the scientific interest method,
which approximates the effective interest method.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the respective agreements
mature. Provisions of the repurchase agreements ensure that the market
value of the collateral, including accrued interest thereon, is sufficient
in the event of the default of 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.
NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is
calculated on each business day by dividing the total value of each Fund's
assets, less liabilities, by the number of shares outstanding.
EXPENSES -- Expenses that are directly related to one of the Funds are
charged to that Fund. Other operating expenses of the Trust are prorated to
the Funds on the basis of relative daily net assets.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income
are declared and paid quarterly to Shareholders for the Clover Equity Value
Fund, the Clover Small Cap Value Fund and the Clover Max Cap Value Fund
declared daily and paid monthly for the Clover Fixed Income Fund. Any net
realized capital gains on sales of securities are distributed to
Shareholders at least annually.
Distributions from net investment income and net realized capital gains
are determined in accordance with the U.S. Federal income tax
regulations, which may differ from those amounts
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued) CLOVER FUNDS
March 31, 1998 (Unaudited)
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 charged or credited to
paid-in-capital in the period that the differences arise. These
classifications have no effect on net assets or net asset value.
USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from
those estimates.
3. ORGANIZATION COSTS AND TRANSACTIONS WITH AFFILIATES:
Organization costs have been capitalized by the Funds and are being amortized
over sixty months commencing with the reorganziation. In the event any of the
initial shares of a Fund are redeemed by any holder thereof during the period
that such Fund is amortizing its organizational costs, the redemption proceeds
payable to the holder thereof by the Fund will be reduced by the unamortized
organizational costs in the same ratio as the number of initial shares being
redeemed bears to the number of initial shares outstanding at the time of
redemption.
Certain officers of the Trust are also officers of SEI Fund Resources (the
"Administrator"). Such officers are paid no fees by the Trust for serving as
officers of the Trust.
4. ADMINISTRATION, SHAREHOLDER SERVICING AND DISTRIBUTION AGREEMENTS:
The Trust and the Administrator are parties to an agreement under which the
Administrator provides management and administrative services for an annual fee
of .12% of the average daily net assets of each of the Funds up to $75 million,
.10% on the next $75 million, .09% on the next $150 million, .08% on the next
$300 million and .075% of such assets in excess of $600 million. There is a
minimum annual fee of $75,000 per Fund payable to the Administrator for services
rendered to the Funds under The Administration Agreement.
DST Systems, Inc. (the "Transfer Agent") serves as
the transfer agent and dividend distributing agent for the Funds under a
transfer agency agreement with the Trust. The Trust and the Distributor
(CCM Securities, Inc.) are parties to a Distribution Agreement. The Distributor
receives no fees for its distribution services under this agreement.
5. INVESTMENT ADVISORY AND CUSTODIAN AGREEMENTS:
The Trust and Clover Capital Management, Inc. (the "Adviser") are parties to an
Investment Advisory Agreement under which the Adviser receives an annual fee
equal to .74% of the average daily net assets of the Clover Equity Value Fund
and the Clover Max Cap Value Fund, .45% of the average daily net assets of the
Clover Fixed Income Fund and .85% of the average daily net assets of the Clover
Small Cap Value Fund. The Adviser has voluntarily agreed to waive all or a
portion of its fees (and to reimburse the expenses of the Funds) in order to
limit operating expenses to not more than 1.20% of the average daily net assets
for net assets below $20 million and to not more than 1.10% for net assets of
$20 million or more for the Clover Equity Value Fund. Operating expenses for the
Clover Fixed Income Fund are limited to not more than .80% of the average daily
net assets for net assets below $20 million and to not more than .75% for net
assets of $20 million or more. Operating expenses for the Clover Small Cap Value
Fund and the Clover Max Cap Value Fund are limited to 1.40% and .95%,
respectively, of the Portfolio's average daily net assets. Fee waivers and
expense reimbursements are voluntary and may be terminated at any time.
CoreStates Bank, N.A. acts as custodian (the "Custodian") for the Funds. Fees of
the Custodian are being paid in part on the basis of the net assets of the Funds
and the cost of transactions. The Custodian plays no role in determining the
investment policies of the Trust or which securities are to be purchased or sold
by the Funds.
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Concluded) CLOVER FUNDS
March 31, 1998 (Unaudited)
6. INVESTMENT TRANSACTIONS:
The cost of security purchases and the proceeds from security sales, other than
short-term investments, for the period ended March 31, 1998, are as follows
(000):
CLOVER CLOVER CLOVER CLOVER
EQUITY SMALL CAP MAX CAP FIXED
VALUE VALUE VALUE INCOME
FUND FUND FUND FUND
-------- -------- -------- --------
Purchases
Government $ -- $ -- $ -- $4,420
Other 28,178 6,628 1,656 1,241
Sales
Government $ -- $ -- $ -- $ 650
Other 41,691 4,869 200 --
At March 31, 1998, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes were not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation for securities held by the Funds
at March 31, 1998, is as follows (000):
CLOVER CLOVER CLOVER CLOVER
EQUITY SMALL CAP MAX CAP FIXED
VALUE VALUE VALUE INCOME
FUND FUND FUND FUND
-------- -------- -------- --------
Aggregate
gross
unrealized
appreciation $27,523 $3,069 $109 $805
------- ------ ---- ----
Aggregate
gross
unrealized
depreciation (4,873) (995) (14) (38)
------- ------ ---- ----
Net unrealized
appreciation $22,650 $2,074 $ 95 $768
======= ====== ==== ====
7. CONCENTRATION OF CREDIT RISK:
The Clover Fixed Income Fund invests primarily in fixed income securities which
are rated in the top four rating categories by either Moody's Investors
Services, Inc. ("Moody's") or Standard & Poor's Ratings Group ("S&P"), or if not
rated, determined by the Adviser to be of comparable quality. The ability of the
issuers of the securities held by the Fund to meet their obligations may be
affected by economic developments in a specific industry, state or region.
The summary of credit quality rating for securities held by the Fund at March
31, 1998 is as follows:
S&P MOODY'S
---------------- ----------------
Bonds: AAA 52.28% AAA 50.81%
AA 10.15% AA3 11.70%
AA- 6.68% AA1 5.75%
A+ 6.753% A3 5.84%
A 6.53% A2 2.56%
A- 1.20% A1 10.62%
BBB+ 2.37% BAA3 3.76%
BBB- 3.76% BAA1 1.71%
BB+ 3.80% BA1 3.80%
B+ 3.47% B1 3.47%
NR 3.01% --------
-------- 100.0%
100.0%
17
<PAGE>
NOTES
18
<PAGE>
TRUST
TIP Funds
P.O. Box 419805
Kansas City, MO 64141-6805
INVESTMENT ADVISOR
Clover Capital Management, Inc.
DISTRIBUTOR
CCM Securities, Inc.
ADMINISTRATOR
SEI Fund Resources
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
INDEPENDENT AUDITORS
Ernst & Young LLP
To open an account, receive account information, make inquiries, or request
literature:
1-800-224-6312
THIS REPORT WAS PREPARED FOR SHAREHOLDERS IN THE TIP FUNDS. IT MAY BE
DISTRIBUTED TO OTHERS ONLY IF PRECEDED OR ACCOMPANIED BY A TIP FUNDS
PROSPECTUS, WHICH CONTAINS DETAILED INFORMATION.