SEMIANNUAL
REPORT
MARCH 31, 1999
(Unaudited)
[LOGO OMITTED]
- --------------------------------------------------------------------------------
Clover Small Cap Value Fund
- --------------------------------------------------------------------------------
Clover Equity Value Fund
- --------------------------------------------------------------------------------
Clover Max Cap Value Fund
- --------------------------------------------------------------------------------
Clover Fixed Income Fund
- --------------------------------------------------------------------------------
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1999 (Unaudited)
Value
CLOVER SMALL CAP VALUE FUND Shares (000)
- ------------------------------------------------------
COMMON STOCKS (99.8%)
AEROSPACE & DEFENSE (0.8%)
Allied Research* 16,000 $ 113
------
AIR TRANSPORTATION (1.2%)
Mesa Air Group* 25,000 156
------
APPAREL/TEXTILES (2.8%)
Angelica 7,500 105
Burlington Industries* 7,400 49
Cone Mills* 24,000 117
Conso International* 6,000 37
Maxwell Shoe* 8,000 69
------
377
------
AUTOMOTIVE (3.3%)
Jason* 14,000 119
Keystone Automotive
Industries* 11,720 190
TBC* 22,000 133
------
442
------
BANKS (2.2%)
Business Bank of California* 3,000 39
Clovis Community Bank/CA* 2,500 54
First Federal Savings & Loan
of Alpena 3,000 40
First Place Financial 900 49
National Bankshare/VA 2,200 57
Ridgestone Financial Services* 2,625 30
Wake Forest Federal Savings
& Loan 2,000 24
------
293
------
BEAUTY PRODUCTS (2.4%)
Allou Health & Beauty, Cl A* 12,000 128
Helen of Troy Limited* 5,300 69
Jean Philippe Fragrances* 19,500 122
------
319
------
BROADCASTING, NEWSPAPERS & ADVERTISING (1.3%)
Four Media* 15,500 93
RH Donnelley 5,500 85
------
178
------
Value
Shares (000)
- ------------------------------------------------------
CHEMICALS (4.5%)
Bush Boake Allen* 2,500 $ 69
CPAC 33,000 243
Hanna (M.A.) 7,000 90
OM Group 3,000 99
Terra Industries 10,000 46
Wellman 7,000 62
------
609
------
COMMUNICATIONS EQUIPMENT (3.1%)
Cobra Electronics* 35,000 131
Performance Technologies* 24,000 258
TII Industries* 21,500 35
------
424
------
COMPUTERS & SERVICES (7.5%)
Bell & Howell* 2,500 73
Data General* 13,500 137
GT Interative Software* 32,000 148
Informix* 8,500 63
MAPICS* 32,700 251
Marcam Solutions* 11,000 30
Metatec* 30,000 127
Powerhouse Technologies* 9,200 158
Wallace Computer Services 1,500 30
------
1,017
------
CONSUMER PRODUCTS (8.1%)
Department 56* 15,000 457
Vans* 90,000 630
------
1,087
------
ELECTRICAL EQUIPMENT (0.7%)
American Technical Ceramics* 7,500 43
IEC Electronics* 15,000 49
------
92
------
ELECTRICAL UTILITIES (4.4%)
Calpine* 7,600 277
Commonwealth Energy System 2,200 85
Eastern Utilities Association 5,000 142
Trigen Energy 7,000 96
------
600
------
The accompanying notes are an integral part of the financial statements.
1
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1999 (Unaudited)
CLOVER SMALL CAP VALUE FUND Value
(Continued) Shares (000)
- ------------------------------------------------------
ENTERTAINMENT (0.7%)
Aztar* 20,000 $ 96
------
ENVIRONMENTAL SERVICES (1.0%)
Calgon Carbon 25,000 130
------
FINANCIAL SERVICES (1.4%)
Cash America International 10,000 129
EzCorp, Cl A 9,000 62
------
191
------
FOOD, BEVERAGE & TOBACCO (2.3%)
Canandaigua Brands, Cl A* 2,100 106
Imperial Sugar 11,000 67
M&F Worldwide* 19,000 133
------
306
------
GAS/NATURAL GAS (2.5%)
Cascade Natural Gas 8,000 119
HS Resources* 7,500 66
Madison Gas & Electric 6,000 117
Valley Resources 4,000 42
------
344
------
INSURANCE (0.9%)
LaSalle Re Holdings 4,000 59
Standard Management* 10,000 62
------
121
------
LEISURE PRODUCTS (2.7%)
Arctic Cat 22,000 219
K2 8,000 63
Riddell Sports* 21,500 78
------
360
------
LUMBER & WOOD PRODUCTS (0.6%)
Cavalier Homes 8,000 77
------
MACHINERY (2.4%)
Brown & Sharpe Manufacturing,
Cl A* 16,900 83
Daw Technologies* 35,000 52
Lufkin Industries 6,000 99
Transpro 19,500 84
------
318
------
Value
Shares (000)
- ------------------------------------------------------
MARINE TRANSPORTATION (0.4%)
Maritrans 8,300 $ 48
-----
MEDICAL PRODUCTS & SERVICES (5.3%)
Advocat* 13,000 31
Bio-Rad Labs, Cl A* 6,500 132
Block Drug, Cl A 4,120 169
Colorado Medtech Inc* 13,000 145
Laserscope* 25,000 31
Matria Healthcare* 35,000 94
Raytel Medical* 28,000 115
-----
717
-----
METALS & MINING (0.4%)
Kinross Gold* 25,000 53
-----
PAPER & PAPER PRODUCTS (1.9%)
Louisiana-Pacific 4,000 74
Rock-Tenn, Cl A 12,000 184
-----
258
-----
PETROLEUM & FUEL PRODUCTS (0.3%)
Tesoro Petroleum* 3,300 36
-----
PETROLEUM REFINING (1.3%)
Cabot Oil & Gas, Cl A 12,500 180
-----
PRECIOUS METALS (0.3%)
Golden Star Resources* 48,000 39
-----
PRINTING & PUBLISHING (0.5%)
Cadmus Communications 4,800 69
-----
PROFESSIONAL SERVICES (3.4%)
Emcon* 39,000 127
Franklin Covey* 14,000 126
ICT Group* 45,200 130
Right Management Consultants* 5,000 79
-----
462
-----
REAL ESTATE INVESTMENT TRUSTS (8.2%)
Eastgroup Properties 6,000 97
Entertainment Properties Trust 10,000 172
Home Properties of New York 12,600 291
National Golf Properties 5,000 110
Public Storage 17,372 434
-----
1,104
-----
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1999 (Unaudited)
CLOVER SMALL CAP VALUE FUND Value
(Concluded) Shares (000)
- ------------------------------------------------------
RETAIL (11.1%)
Cache* 23,800 $ 150
Catherine's Stores* 9,900 69
DAMARK International, Cl A* 30,000 259
Duckwall-ALCO Stores* 11,000 107
Jacobson Stores* 20,100 126
Tandycrafts* 104,700 229
ValueVision International, Cl A* 35,000 431
West Marine* 15,000 133
-------
1,504
-------
RUBBER & PLASTIC (1.6%)
Treadco* 24,900 221
-------
SEMI-CONDUCTORS/INSTRUMENTS (1.9%)
Exar* 6,000 97
Interphase* 20,000 125
Tegal* 12,700 38
-------
260
-------
STEEL & STEEL WORKS (0.7%)
Steel Technologies 12,000 94
-------
TELEPHONES & TELECOMMUNICATION (1.9%)
Cellular Communications
of Puerto Rico* 4,000 108
CoreComm* 4,000 147
-------
255
-------
TRANSPORTATION SERVICES (0.7%)
Laidlaw 16,000 93
-------
TRUCKING (1.4%)
Celadon Group* 15,900 129
Old Dominion Freight Line* 5,000 57
-------
186
-------
WHOLESALE (1.7%)
Fleming Companies 2,600 22
Moore Medical* 5,000 53
Patrick Industries 6,000 81
PrimeSource 12,000 68
-------
224
-------
TOTAL COMMON STOCKS
(Cost $15,375) 13,453
-------
Face
Amount Value
(000) (000)
- ------------------------------------------------------
REPURCHASE AGREEMENT (0.2%)
Morgan Stanley
4.50%, dated 03/31/99, matures
04/01/99, repurchase price
$29,382 (collateralized by
U.S. Treasury Note, par value
$29,288, 5.625%, matures
10/31/99 market value $30,117) $ 29 $ 29
-------
TOTAL REPURCHASE AGREEMENT
(Cost $29) 29
-------
TOTAL INVESTMENTS (100.0%)
(Cost $15,404) 13,482
-------
OTHER ASSETS AND LIABILITIES, NET (0.0%) 3
-------
NET ASSETS:
Portfolio Shares (unlimited
authorization--no par value)
based on 1,203,634 outstanding
shares of beneficial interest 14,971
Accumulated net investment loss (2)
Accumulated net realized gain
on investments 438
Net unrealized depreciation
on investments (1,922)
-------
TOTAL NET ASSETS (100.0%) $13,485
=======
Net Asset Value, Offering and
Redemption Price Per Share $11.20
======
* NON-INCOME PRODUCING SECURITY
CL--CLASS
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1999 (Unaudited)
Value
CLOVER EQUITY VALUE FUND Shares (000)
- ------------------------------------------------------
COMMON STOCKS (97.0%)
AEROSPACE & DEFENSE (3.6%)
Alliant Techsystems* 20,000 $ 1,554
Litton Industries* 15,000 862
-------
2,416
-------
CHEMICALS (4.1%)
Agrium 176,000 1,617
OM Group 35,000 1,155
-------
2,772
-------
COMPUTERS & SERVICES (13.0%)
Convergys* 60,000 1,027
Electronic Data Systems 20,000 974
Informix* 200,000 1,475
MAPICS* 250,000 1,922
Marcam Solutions* 180,000 495
Networks Associates* 25,000 767
Oracle* 30,000 791
Policy Management Systems* 40,000 1,225
-------
8,676
-------
CONSUMER PRODUCTS (6.9%)
Department 56* 30,000 913
Harman International 40,000 1,470
Nine West Group* 90,000 2,222
-------
4,605
-------
ELECTRICAL SERVICES (5.0%)
Citizens Utilities, Cl B 235,000 1,821
Nevada Power 60,000 1,485
-------
3,306
-------
ENTERTAINMENT (4.3%)
King World Productions* 94,900 2,900
-------
FINANCIAL SERVICES (4.4%)
The PMI Group 45,000 2,087
Wells Fargo 25,000 877
-------
2,964
-------
Value
Shares (000)
- ------------------------------------------------------
GAS/NATURAL GAS (7.1%)
AGL Resources 85,000 $ 1,493
Laclede Gas 50,000 1,047
Northwest Natural Gas 60,000 1,312
Schlumberger 15,000 903
-------
4,755
-------
MACHINERY (1.1%)
Lincoln Electric Holdings 40,000 745
-------
MEDICAL PRODUCTS & SERVICES (6.4%)
Bausch & Lomb 25,000 1,625
Baxter International 20,000 1,320
Becton Dickinson 35,000 1,341
-------
4,286
-------
METALS & MINING (2.5%)
De Beers Consolidated Mines,
ADR 90,000 1,704
-------
PAPER & PAPER PRODUCTS (1.8%)
Potlatch 35,000 1,188
-------
PETROLEUM & FUEL PRODUCTS (4.6%)
Burlington Resources 30,000 1,198
Pioneer Natural Resources 100,000 775
Santa Fe Energy Resources* 150,000 1,097
-------
3,070
-------
REAL ESTATE INVESTMENT TRUSTS (8.4%)
Chateau Communities 50,000 1,375
Manufactured Home
Communities 55,000 1,320
Meditrust 235,000 2,923
-------
5,618
-------
RETAIL (2.0%)
Sears Roebuck 30,000 1,356
-------
RETAIL - FOOD (6.2%)
Hannaford Brothers 25,000 1,136
Kroger* 50,000 2,994
-------
4,130
-------
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1999 (Unaudited)
Shares/
CLOVER EQUITY VALUE FUND Face Amount Value
(Concluded) (000) (000)
- -----------------------------------------------------
RUBBER & PLASTIC (1.5%)
Myers Industries 47,000 $ 993
-------
SPECIALTY MACHINERY (1.6%)
York International 30,000 1,059
-------
STEEL & STEEL WORKS (1.9%)
UCAR International* 90,000 1,271
-------
TELEPHONES & TELECOMMUNICATION (7.6%)
Frontier 25,000 1,297
Sprint Corp (FON Group) 20,000 1,963
Sprint Corp (PCS Group)* 15,500 687
US West 20,000 1,101
-------
5,048
-------
TRUCKING (3.0%)
Yellow* 115,000 1,998
-------
TOTAL COMMON STOCKS
(Cost $63,364) 64,860
-------
CONVERTIBLE BOND (0.9%)
Meditrust
7.500%, 03/01/01 $ 600 582
-------
TOTAL CONVERTIBLE BOND
(Cost $595) 582
-------
REPURCHASE AGREEMENT (7.0%)
Morgan Stanley
4.50%, dated 03/31/99, matures
04/01/99, repurchase price
$4,653,181 (collateralized
by U.S. Treasury Notes,
par value $4,639,484,
5.625%, matures 10/31/99
market value
$4,770,413) 4,653 4,653
-------
TOTAL REPURCHASE AGREEMENT
(Cost $4,653) 4,653
-------
TOTAL INVESTMENTS (104.9%)
(Cost $68,612) 70,095
-------
OTHER ASSETS AND LIABILITIES, NET (-4.9%) (3,258)
-------
Value
(000)
- ------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization--no par value)
based on 4,378,647 outstanding
shares of beneficial interest $56,994
Undistributed net investment income 41
Accumulated net realized gain
on investments 8,319
Net unrealized appreciation
on investments 1,483
-------
TOTAL NET ASSETS (100.0%) $66,837
=======
Net Asset Value, Offering and
Redemption Price Per Share $15.26
======
*NON-INCOME PRODUCING SECURITY
ADR--AMERICAN DEPOSITORY RECEIPT
CL--CLASS
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1999 (Unaudited)
Value
CLOVER MAX CAP VALUE FUND Shares (000)
- ------------------------------------------------------
COMMON STOCKS (99.0%)
AEROSPACE & DEFENSE (2.6%)
Litton Industries* 300 $ 17
Lockheed Martin 650 24
Northrop 375 22
----
63
----
AIR TRANSPORTATION (1.1%)
AMR* 175 10
UAL* 200 16
----
26
----
AUTO PARTS (0.7%)
Cummins Engine 500 18
----
AUTOMOTIVE (1.1%)
General Motors 300 26
----
BANKS (6.7%)
Bank One 250 14
BankAmerica 350 25
Chase Manhattan 200 16
First Union 500 27
PNC Bank 375 21
Republic New York 200 9
Union Planters 450 20
Washington Mutual 600 25
Wells Fargo 250 9
----
166
----
BEAUTY PRODUCTS (0.5%)
International Flavors & Fragrances 350 13
----
BROADCASTING, NEWSPAPERS & ADVERTISING (0.1%)
RH Donnelley 140 2
----
COMMUNICATIONS EQUIPMENT (0.5%)
Harris 450 13
----
COMPUTERS & SERVICES (11.5%)
3Com* 600 14
Computer Associates International 500 18
Electronic Data Systems 700 34
Hewlett Packard 325 22
Microsoft* 250 22
Value
Shares (000)
- ------------------------------------------------------
NCR* 250 $ 13
Networks Associates* 1,450 44
Oracle* 600 16
Seagate Technology* 600 18
Silicon Graphics* 3,100 52
Sterling Commerce* 1,025 32
----
285
----
CONSUMER PRODUCTS (4.5%)
Fortune Brands 600 23
General Mills 200 15
HJ Heinz 500 24
Johnson & Johnson 250 23
Minnesota Mining &
Manufacturing 375 27
----
112
----
DRUGS (6.5%)
Abbott Laboratories 550 26
American Home Products 175 11
Astra AB, Cl A, ADR 1,150 26
Bristol-Myers Squibb 400 26
Eli Lilly 275 23
Merck 600 48
----
160
----
ELECTRICAL PRODUCTS (2.6%)
Emerson Electric 450 24
General Electric 350 39
----
63
----
ELECTRICAL UTILITIES (1.9%)
Central & South West 300 7
Duke Energy 375 20
FPL Group 375 20
----
47
----
ENTERTAINMENT (2.7%)
Mattel 1,450 36
Walt Disney 1,000 31
----
67
----
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1999 (Unaudited)
CLOVER MAX CAP VALUE FUND Value
(Continued) Shares (000)
- ------------------------------------------------------
FOOD, BEVERAGE & TOBACCO (3.9%)
Anheuser-Busch 300 $ 23
Campbell Soup 425 17
ConAgra 450 12
McCormick 900 26
UST 650 17
----
95
----
GAS/NATURAL GAS (2.8%)
AGL Resources 900 16
Eastern Enterprises 500 18
National Fuel Gas 400 16
Nicor 300 11
Peoples Energy 250 8
----
69
----
HOUSEHOLD PRODUCTS (2.6%)
Alberto-Culver, Cl B 850 20
Allergan 250 22
Whirlpool 400 22
----
64
----
INSURANCE (1.5%)
Mony Group* 850 21
Safeco 400 16
----
37
----
MACHINERY (1.4%)
Black & Decker 450 25
Timken 600 10
----
35
----
MEDICAL PRODUCTS & SERVICES (3.3%)
Baxter International 500 33
Becton Dickinson 350 13
St. Jude Medical* 900 22
Stryker 250 13
----
81
----
METALS & MINING (0.2%)
Newmont Mining 350 6
----
Value
Shares (000)
- ------------------------------------------------------
PAPER & PAPER PRODUCTS (6.0%)
Chesapeake 700 $ 19
Fort James 825 26
Louisiana-Pacific 2,700 50
Smurfit-Stone Container* 2,000 39
Temple-Inland 225 14
----
148
----
PETROLEUM & FUEL PRODUCTS (2.3%)
Atlantic Richfield 200 15
Kerr-McGee 300 10
Occidental Petroleum 1,400 25
Phillips Petroleum 150 7
----
57
----
PETROLEUM REFINING (2.1%)
Ashland 300 12
BP Amoco Plc-Spons ADR 132 13
Chevron 300 27
----
52
----
PHOTOGRAPHIC EQUIPMENT &
SUPPLIES (1.1%)
Xerox 500 27
----
PROFESSIONAL SERVICES (0.5%)
Dun & Bradstreet 350 12
----
REAL ESTATE INVESTMENT TRUSTS (5.7%)
Camden Property Trust 800 20
Chateau Communities 600 17
Equity Office Properties Trust 800 20
Equity Residential Properties Trust 650 27
First Industrial Realty Trust 1,100 26
Mack-Cali Realty 375 11
Meditrust 800 10
Post Properties 300 11
----
142
----
RESTAURANTS (1.3%)
McDonald's 350 16
Wendy's International 600 17
----
33
----
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1999 (Unaudited)
CLOVER MAX CAP VALUE FUND Value
(Concluded) Shares (000)
- ------------------------------------------------------
RETAIL (2.7%)
JC Penney 400 $ 16
Rite Aid 525 13
Sears Roebuck 525 24
Toys 'R' Us* 800 15
------
68
------
RETAIL - FOOD (2.9%)
Albertson's 200 11
Hannaford Brothers 250 11
Richfood Holdings 1,400 30
Supervalu 900 19
------
71
------
SEMI-CONDUCTORS/INSTRUMENTS (3.8%)
Analog Devices* 1,250 37
Applied Materials* 150 9
Intel 200 24
LSI Logic* 750 23
------
93
------
TELECOMMUNICATIONS EQUIPMENT (1.6%)
Lucent Technologies 250 27
Qualcomm* 100 12
------
39
------
TELEPHONES & TELECOMMUNICATION (9.9%)
ADC Telecommunications* 450 21
ALLTEL 550 34
Ameritech 450 26
AT&T 150 12
Bell Atlantic 225 12
BellSouth 300 12
Frontier 275 14
General Instrument* 350 11
Sprint (FON Group) 325 32
Sprint (PCS Group)* 75 3
Telephone & Data Systems 550 31
US West 650 36
------
244
------
TRANSPORTATION SERVICES (0.4%)
Laidlaw 900 5
Ryder System 200 6
------
11
------
Face
Amount Value
(000) (000)
- ------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $2,377) $2,445
------
REPURCHASE AGREEMENT (2.9%)
Morgan Stanley
4.50%, dated 03/31/99, matures
04/01/99, repurchase price
$72,159 (collateralized by
U.S. Treasury Note, par
value $71,930, 5.625%,
matures 10/31/99 market value
$73,962) $ 72 72
------
TOTAL REPURCHASE AGREEMENT
(Cost $72) 72
------
TOTAL INVESTMENTS (101.9%)
(Cost $2,449) 2,517
------
OTHER ASSETS AND LIABILITIES, NET (-1.9%) (46)
------
NET ASSETS:
Portfolio Shares (unlimited
authorization--no par value)
based on 224,139 outstanding
shares of beneficial interest 2,332
Accumulated net realized gain
on investments 71
Net unrealized appreciation
on investments 68
------
TOTAL NET ASSETS (100.0%) $2,471
======
Net Asset Value, Offering and
Redemption Price Per Share $11.02
======
*NON-INCOME PRODUCING SECURITY
ADR--AMERICAN DEPOSITORY RECEIPT
CL--CLASS
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1999 (Unaudited)
Face
Amount Value
CLOVER FIXED INCOME FUND (000) (000)
- ------------------------------------------------------
CORPORATE OBLIGATIONS (38.2%)
ENTERTAINMENT (3.2%)
Mattel
6.750%, 05/15/00 $ 350 $ 355
Walt Disney
6.375%, 03/30/01 750 762
------
1,117
------
FINANCIAL SERVICES (1.5%)
Pitney Bowes Credit
5.650%, 01/15/03 500 499
------
FOOD, BEVERAGE & TOBACCO (7.2%)
Anheuser Busch
6.750%, 08/01/03 750 779
Bass America
6.750%, 08/01/99 450 452
Canandaigua Brands
8.750%, 12/15/03 1,250 1,269
------
2,500
------
GAS/NATURAL GAS (4.4%)
Columbia Gas Systems
6.610%, 11/28/02 1,000 1,013
Texaco Capital, MTN
7.420%, 07/15/02 500 525
------
1,538
------
INDUSTRIAL (0.6%)
Masco
6.125%, 09/15/03 200 201
------
MEDICAL PRODUCTS & SERVICES (6.4%)
Abbott Laboratories
5.600%, 10/01/03 700 698
Eli Lilly
8.125%, 12/01/01 250 265
6.250%, 03/15/03 750 764
Zeneca Wilmington
6.300%, 06/15/03 500 508
------
2,235
------
PRINTING & PUBLISHING (1.7%)
Knight-Ridder
8.500%, 09/01/01 562 581
------
Face
Amount Value
CLOVER FIXED INCOME FUND (000) (000)
- ------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (1.1%)
Meditrust
7.000%, 08/15/07 $ 500 $ 388
-------
RETAIL (1.2%)
Wal-Mart Stores
8.625%, 04/01/01 400 422
-------
UTILITIES (10.9%)
Detroit Edison
6.560%, 05/01/01 500 509
Florida Power & Light
5.500%, 07/01/99 800 801
Northern Illinois Gas
6.750%, 06/01/02 1,000 1,029
Northern States Power
7.875%, 10/01/01 650 684
5.875%, 03/01/03 750 757
-------
3,780
-------
TOTAL CORPORATE OBLIGATIONS
(Cost $13,177) 13,261
-------
U.S. GOVERNMENT MORTGAGE-BACKED BONDS (14.7%)
FHLMC, Pool # 252641
8.000%, 07/01/07 18 19
FHLMC, Pool # 277449
8.500%, 09/01/09 7 8
FHLMC, REMIC, Series 1546, Cl H
7.000%, 12/15/22 390 399
FNMA, Pool # 369214
5.000%, 04/01/09 331 316
FNMA, REMIC, Series 1993-118 Cl G
6.500%, 11/25/06 1,000 1,013
FNMA, REMIC, Series 1993-95, Cl PE
6.500%, 10/25/07 750 760
FNMA, REMIC, Series 1994-17, Cl H
6.000%, 02/25/09 750 746
FNMA, REMIC, Series G93-21, Cl VE
6.600%, 11/25/07 184 184
GNMA, Pool # 13125
8.000%, 10/15/06 28 30
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 1999 (Unaudited)
Face
CLOVER FIXED INCOME FUND Amount Value
(Concluded) (000) (000)
- -------------------------------------------------------
GNMA, Pool # 187899
8.000%, 05/15/17 $ 145 $ 151
GNMA, Pool # 196477
10.000%, 04/15/10 70 76
GNMA, Pool # 202886
8.000%, 03/15/17 152 159
GNMA, Pool # 221235
8.500%, 07/15/17 78 82
GNMA, Pool # 331786
8.000%, 08/15/22 213 222
GNMA, Pool # 376400
6.500%, 02/15/24 962 958
-------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED BONDS
(Cost $5,073) 5,123
-------
U.S. TREASURY OBLIGATIONS (34.0%)
U.S. Treasury Bonds
7.250%, 05/15/16 1,250 1,434
7.500%, 11/15/16 1,000 1,174
8.125%, 05/15/21 750 953
7.125%, 02/15/23 1,500 1,733
U.S. Treasury Notes
6.625%, 04/30/02 600 625
7.250%, 05/15/04 150 163
7.500%, 02/15/05 300 333
6.500%, 05/15/05 950 1,007
6.500%, 08/15/05 250 265
5.625%, 02/15/06 1,500 1,522
6.500%, 10/15/06 1,500 1,598
U.S. Treasury STRIPS
0.000%, 05/15/20 3,500 990
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $11,957) 11,797
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS (2.5%)
FNMA, MTN
6.920%, 03/19/07 555 590
Private Export Funding
6.620%, 10/01/05 250 263
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $863) 853
-------
Face
Amount Value
(000) (000)
- -------------------------------------------------------
CONVERTIBLE BOND (1.6%)
Meditrust, Convertible
to 27.6396 Shares
7.500%, 03/01/01 $ 570 $ 553
-------
TOTAL CONVERTIBLE BOND
(Cost $572) 553
-------
REPURCHASE AGREEMENT (7.7%)
Morgan Stanley
4.50%, dated 03/31/99,
matures 04/01/99,
repurchase price $2,686,066
(collateralized by
U.S. Treasury Note,
par value $2,677,617,
5.625%, matures 10/31/99
market value
$2,753,218) 2,686 2,686
-------
TOTAL REPURCHASE AGREEMENT
(Cost $2,686) 2,686
-------
TOTAL INVESTMENTS (98.7%)
(Cost $34,328) 34,273
-------
OTHER ASSETS AND LIABILITIES, NET (1.3%) 460
-------
NET ASSETS:
Portfolio Shares (unlimited
authorization--no par value)
based on 3,541,367 outstanding
shares of beneficial interest 34,723
Undistributed net investment income 12
Accumulated net realized gain
on investments 53
Net unrealized depreciation
on investments (55)
-------
TOTAL NET ASSETS (100.0%) $34,733
=======
Net Asset Value, Offering and
Redemption Price Per Share $9.81
=======
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>
STATEMENT OF OPERATIONS (000) CLOVER FUNDS
For the six-month period ended March 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
CLOVER CLOVER CLOVER CLOVER
SMALL CAP EQUITY MAX CAP FIXED
VALUE VALUE VALUE INCOME
FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Dividends ....................................... $ 98 $ 708 $ 24 $ --
Interest ........................................ 10 273 2 1,031
- -------------------------------------------------------------------------------------------------------------------
Total Investment Income........................ 108 981 26 1,031
- -------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ........................ 67 316 8 76
Investment Advisory Fee Waiver .................. (31) -- (8) (25)
Administrator Fees .............................. 35 48 35 35
Custodian Fees .................................. 4 5 -- 3
Transfer Agent Fees ............................. 13 -- -- 13
Professional Fees ............................... 7 37 3 7
Trustee Fees .................................... -- 2 -- 1
Registration Fees ............................... 9 9 10 8
Pricing Fees .................................... -- 1 2 1
Printing Expense ................................ 4 20 2 4
Amortization of Deferred Organizational Costs ... 1 1 5 2
Insurance and Other Fees ........................ 1 6 1 2
- -------------------------------------------------------------------------------------------------------------------
Total Expenses ................................ 110 445 58 127
- -------------------------------------------------------------------------------------------------------------------
Less: Reimbursements by Adviser.................. -- -- (47) --
- -------------------------------------------------------------------------------------------------------------------
Total Net Expenses ............................ 110 445 11 127
- -------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) .............. (2) 536 15 904
- -------------------------------------------------------------------------------------------------------------------
Net Realized Gain From Securities Sold .......... 866 11,889 83 83
Net Unrealized Appreciation (Depreciation)
of Investment Securities ...................... (829) (10,970) 277 (1,431)
- -------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss)
on Investments .............................. 37 919 360 (1,348)
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
From Operations .............................. $ 35 $ 1,455 $375 $ (444)
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (000) CLOVER FUNDS
(Unaudited)
<TABLE>
<CAPTION>
CLOVER SMALL CAP
VALUE FUND
-------------------------------------------
FOR THE
SIX-MONTH YEAR
PERIOD ENDED ENDED
3/31/99 9/30/98
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Activities:
Net Investment Income (Loss) ............................................ $ (2) $ (82)
Net Realized Gain on Securities Sold .................................... 866 175
Net Unrealized Appreciation (Depreciation) of
Investment Securities ................................................. (829) (4,059)
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
from Operations ..................................................... 35 (3,966)
- -------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
Net Investment Income ................................................... -- --
Realized Capital Gain ................................................... (326) (1,235)
- -------------------------------------------------------------------------------------------------------------------
Total Distributions ................................................... (326) (1,235)
- -------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Proceeds from Shares Issued ............................................. 1,192 7,247
Proceeds from Shares Issued in Lieu of
Cash Distributions .................................................... 322 1,219
Cost of Shares Redeemed ................................................. (3,400) (2,882)
- -------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Capital Share Transactions .......................................... (1,886) 5,584
- -------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets................................ (2,177) 383
- -------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ................................................... 15,662 15,279
- -------------------------------------------------------------------------------------------------------------------
End of Period(1) ...................................................... $13,485 $15,662
- -------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed:
Issued .................................................................. 101 523
Issued in Lieu of Cash Distributions .................................... 27 96
Redeemed ................................................................ (287) (214)
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Share Transactions .......................... (159) 405
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Includes undistributed net investment income (loss) and/or distributions in
excess of net investment income (000) of $(2) for the Clover Small Cap Fund
as of March 31, 1999, $41 and $12 for the Clover Equity Value Fund and the
Clover Fixed Income Fund, respectively, as of March 31, 1999, and
September 30, 1998.
(2) The Clover Max Cap Value Fund commenced operations 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.
12
<PAGE>
<TABLE>
<CAPTION>
CLOVER EQUITY CLOVER MAX CAP CLOVER FIXED
VALUE FUND VALUE FUND INCOME FUND
------------------------ -------------------------- --------------------------
FOR THE FOR THE FOR THE
SIX-MONTH YEAR SIX-MONTH PERIOD SIX-MONTH YEAR
PERIOD ENDED ENDED PERIOD ENDED 10/31/97 THRU PERIOD ENDED ENDED
3/31/99 9/30/98 3/31/99 9/30/98 (2) 3/31/99 9/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) ............. $ 536 $ 957 $ 15 $ 23 $ 904 $ 1,655
Net Realized Gain on Securities Sold ..... 11,889 195 83 -- 83 634
Net Unrealized Appreciation
(Depreciation) of Investment
Securities ............................. (10,970) (5,217) 277 (209) (1,431) 861
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net
Assets Resulting from Operations ..... 1,455 (4,065) 375 (186) (444) 3,150
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
Net Investment Income .................... (536) (954) (15) (23) (904) (1,661)
Realized Capital Gain .................... (3,802) (12,613) (12) -- (653) (53)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Distributions .................... (4,338) (13,567) (27) (23) (1,557) (1,714)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Proceeds from Shares Issued .............. 13,716 27,976 633 1,986 6,245 14,420
Proceeds from Shares Issued in Lieu of
Cash Distributions ..................... 4,260 13,258 35 22 1,469 1,625
Cost of Shares Redeemed .................. (39,062) (50,655) (321) (23) (4,355) (7,783)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
From Capital Share Transactions ...... (21,086) (9,421) 347 1,985 3,359 8,262
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease)
in Net Assets......................... (23,969) (27,053) 695 1,776 1,358 9,698
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period .................... 90,806 117,859 1,776 -- 33,375 23,677
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period(1) ....................... $66,837 $ 90,806 $2,471 $ 1,776 $ 34,733 $ 33,375
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed:
Issued ................................... 876 1,547 57 193 623 1,431
Issued in Lieu of Cash Distributions ..... 272 763 3 2 146 161
Redeemed ................................. (2,497) (2,789) (29) (2) (435) (772)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease)
in Share Transactions ............... (1,349) (479) 31 193 334 820
- ------------------------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
FINANCIAL HIGHLIGHTS CLOVER FUNDS
(Unaudited)
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 SMALL CAP VALUE FUND
- ---------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1999 $11.49 -- (0.04) -- (0.25) $11.20 (0.48)% $ 13,485 1.40%* (0.02)%*
1998 $15.94 (0.06) (3.22) -- (1.17) $11.49 (21.25)% $ 15,662 1.40% (0.50)%*
1997(1) $10.87 (0.04) 5.24 -- (0.13) $15.94 48.23% $ 15,279 1.40%* (0.64)%*
1996(2) $10.00 0.02 0.88 (0.03) -- $10.87 8.97% $ 4,495 1.40%* (0.03)%*
- ------------------------
CLOVER EQUITY VALUE FUND
- ------------------------
1999 $15.85 0.11 0.08 (0.10) (0.68) $15.26 1.11% $ 66,837 1.04%* 1.25%*
1998 $18.99 0.15 (1.12) (0.15) (2.02) $15.85 (6.00)% $ 90,806 1.10% 0.82%*
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%
- -------------------------
CLOVER MAX CAP VALUE FUND
- -------------------------
1999** $ 9.21 0.07 1.86 (0.07) (0.05) $11.02 20.99% $ 2,471 0.95%* 1.31%*
1998(3) $10.00 0.15 (0.79) (0.15) -- $ 9.21 (6.52)% $ 1,776 0.95%* 1.82%*
- ------------------------
CLOVER FIXED INCOME FUND
- ------------------------
1999** $10.41 0.27 (0.40) (0.27) (0.20) $ 9.81 (1.30) $ 34,733 0.75%* 5.36%*
1998 $ 9.92 0.57 0.51 (0.57) (0.02) $10.41 11.32% $ 33,375 0.75%* 5.67%
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%
</TABLE>
<TABLE>
<CAPTION>
Ratio of Net
Ratio of Investment
Expenses Income (Loss)
to Average to Average
Net Assets Net Assets
(Excluding (Excluding Portfolio
Waivers and Waivers and Turnover
Contributions) Contributions Rate
-------------- ------------- ----------
- ---------------------------
CLOVER SMALL CAP VALUE FUND
- ---------------------------
1999 1.79%* (0.41)%* 40.37%
1998 1.84%* (0.94)%* 70.02%
1997(1) 2.43%* (1.67)%* 59.03%
1996(2) 5.29%* (3.92)%* 14.17%
- ------------------------
CLOVER EQUITY VALUE FUND
- ------------------------
<S> <C> <C> <C>
1999 1.04%* 1.25%* 47.90%
1998 1.12%* 0.80%* 42.10%
1997(1) 1.15%* 1.13%* 51.64%
1996 1.21% 1.21% 51.36%
1995 1.20% 1.72% 84.76%
1994 1.30% 0.55% 58.44%
1993 1.51% 0.56% 82.51%
- -------------------------
CLOVER MAX CAP VALUE FUND
- -------------------------
1999 5.72%* (3.46)%* 43.97%
1998(3) 11.40%* (8.63)%* 62.71%
- ------------------------
CLOVER FIXED INCOME FUND
- ------------------------
1999 0.90%* 5.21%* 11.09%
1998 0.99% 5.43%* 27.07%
1997(1) 1.02%* 5.76%* 11.83%
1996 1.11% 5.69% 24.52%
1995 1.40% 5.53% 35.84%
1994 1.46% 5.22% 11.11%
1993 1.29% 5.11% 68.61%
<FN>
* Annualized
** For the six-month period ended March 31.
+ 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 Small Cap Value Fund and the Clover Equity Value Fund commenced
operations on February 28, 1996.
(3)The Clover Max Cap Value Fund commenced operations on October 31, 1997.
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, 1999 (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 14 portfolios. The
financial statements included herein are those of the Clover Small Cap Value
Fund, the Clover Equity 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.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued) CLOVER FUNDS
March 31, 1999 (Unaudited)
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income
are declared and paid quarterly to Shareholders for the Clover Small Cap
Value Fund, the Clover Equity Value Fund, and the Clover Max Cap Value Fund
and 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 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. 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 Investments Mutual Funds
Services (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 .09% of the average daily net assets of the Trust up to $250 million, .07% on
the next $250 million, .06% on the next $250 million, .05% on the next $1.25
billion and .04% of such assets in excess of $2 billion. There is a minimum
annual fee of $65,000 per Fund payable to the Administrator for services
rendered to the Funds under The Administration Agreement. The Administrator may,
at its sole discretion waive all or a portion of its fees.
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 AGREEMENT:
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 .85% of the average daily net assets of the Clover Small Cap Value
Fund, .74% of the average daily net assets of the Clover Equity Value Fund and
the Clover Max Cap Value Fund, and .45% of the average daily net assets of the
Clover Fixed Income Fund.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Concluded) CLOVER FUNDS
March 31, 1999 (Unaudited)
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.
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, 1999, are as follows
(000):
CLOVER CLOVER CLOVER CLOVER
SMALL CAP EQUITY MAX CAP FIXED
VALUE VALUE VALUE INCOME
FUND FUND FUND FUND
-------- -------- -------- --------
Purchases
Government $ -- $ -- $ -- $ 3,462
Other 6,199 37,827 1,349 615
Sales
Government $ -- $ -- $ -- $ 1,062
Other 7,614 54,856 986 2,438
At March 31, 1999, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes was 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, 1999, is as follows (000):
CLOVER CLOVER CLOVER CLOVER
SMALL CAP EQUITY MAX CAP FIXED
VALUE VALUE VALUE INCOME
FUND FUND FUND FUND
--------- -------- -------- --------
Aggregate
gross
unrealized
appreciation $ 1,331 $8,706 $ 266 $ 421
Aggregate
gross
unrealized
depreciation (3,253) (7,223) (198) (476)
------- ------ ----- ------
Net unrealized
appreciation
(depreciation) $(1,922) $1,483 $ 68 $ (55)
======= ====== ===== =====
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, 1999, is as follows:
S&P MOODY'S
--------------- ---------------
Bonds: AAA 61.50% AAA 61.18%
AA 16.72% AA 15.07%
A 10.66% A 17.31%
BBB 5.70% BAA 2.74%
BB --% BA --%
B 3.70% B 3.70%
NR 1.72% NR --%
----- -----
100.0% 100.0%
17
<PAGE>
NOTES
<PAGE>
TRUST
TIP Funds
P.O. Box 419805
Kansas City, MO 64141-6805
INVESTMENT ADVISER
Clover Capital Management, Inc.
DISTRIBUTOR
CCM Securities, Inc.
ADMINISTRATOR
SEI Investments Mutual Funds Services
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
CLOVER FUNDS. IT MAY BE DISTRIBUTED TO OTHERS ONLY IF
PRECEDED OR ACCOMPANIED BY A TIP FUNDS PROSPECTUS,
WHICH CONTAINS DETAILED INFORMATION.
