SEMIANNUAL
REPORT
MARCH 31, 2000
(UNAUDITED)
CLOVER FUNDS [Graphic Omitted]
- ------------------------------
PORTFOLIO OF THE TIP FUNDS
- --------------------------------------------------------------------------------
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, 2000 (Unaudited)
Value
CLOVER SMALL CAP VALUE FUND Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCKS (94.1%)
AEROSPACE & DEFENSE (0.2%)
Avteam, Cl A* 17,000 $ 59
-------
AIR TRANSPORTATION (0.7%)
Mesa Air Group* 31,000 194
-------
APPAREL/TEXTILES (1.6%)
Ashworth* 30,000 129
Cone Mills* 9,000 39
Dan River, Cl A* 45,000 290
-------
458
-------
AUTO PARTS & EQUIPMENT (4.9%)
Arvin Industries 18,000 407
Exide 40,000 472
Jason* 14,000 147
Monro Muffler Brake* 16,000 133
TBC* 32,000 162
TransPro 19,500 98
-------
1,419
-------
BANKS (0.5%)
Business Bancorp* 3,750 33
Clovis Community Bank/CA* 2,750 36
First Federal Savings & Loan
of Alpena 3,000 19
National Bankshare/VA 196 4
Ridgestone Financial Services* 2,625 16
Wake Forest Bancshares 2,000 22
-------
130
-------
BEAUTY PRODUCTS (0.8%)
Inter Parfums* 19,500 244
-------
BROADCASTING, NEWSPAPERS & ADVERTISING (1.3%)
Spectrian* 6,000 135
ValueVision International* 6,000 248
-------
383
-------
CHEMICALS (2.1%)
Agrium 21,500 173
CPAC 21,000 157
Hanna (M.A.) 7,000 79
TETRA Technologies* 15,000 201
-------
610
-------
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES (0.4%)
Billing Concepts* 17,000 $ 120
-------
COMMUNICATIONS EQUIPMENT (4.0%)
Cobra Electronics* 35,000 206
Corsair Communications* 14,000 268
Performance Technologies* 14,400 626
TII Industries* 21,500 47
-------
1,147
-------
COMPUTERS & SERVICES (16.9%)
4Front Technologies* 6,000 125
Analysts International 9,600 95
Bell & Howell* 2,500 78
Computer Horizons* 20,000 343
Deltek Systems* 9,500 145
Dot Hill Systems* 15,000 188
eLoyalty* 5,000 119
ENCAD* 19,000 105
Epicor Software* 35,000 298
Informix* 27,500 466
Intelligroup* 6,500 193
MAPICS* 32,700 521
Mentor Graphics* 17,000 257
MicroAge* 105,000 246
MicroTouch Systems* 5,500 70
Printrak International* 16,000 208
QAD* 18,000 160
Rainbow Technologies* 9,000 336
SPSS* 3,000 95
Syntel* 10,500 156
Technology Solutions* 5,000 46
Transaction Systems Architects* 10,300 297
Versant* 25,000 336
-------
4,883
-------
CONSUMER PRODUCTS (6.1%)
Central Garden & Pet* 12,000 119
Reebok International* 31,000 287
Vans* 85,000 1,371
-------
1,777
-------
The accompanying notes are an integral part of the financial statements.
1
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 2000 (Unaudited)
CLOVER SMALL CAP VALUE FUND Value
(Continued) Shares (000)
- --------------------------------------------------------------------------------
DRUGS (1.7%)
Anesta* 4,100 $ 54
Dura Pharmaceuticals* 15,000 185
Scios* 18,000 93
Zonagen* 20,000 171
-------
503
-------
ELECTRICAL SERVICES (2.8%)
Calpine* 8,000 752
NSTAR 1,489 63
-------
815
-------
ELECTRONICS (3.6%)
American Technical Ceramics* 7,500 274
Barringer Technologies* 15,000 94
Checkpoint Systems* 31,700 265
IEC Electronics* 15,000 45
II-VI* 6,100 232
Thermedics* 17,300 142
-------
1,052
-------
ENTERTAINMENT (0.5%)
Aztar* 15,000 143
-------
ENVIRONMENTAL SERVICES (0.6%)
Calgon Carbon 25,000 164
-------
FINANCIAL SERVICES (1.7%)
Dain Rauscher 3,700 244
Raymond James Financial 12,000 249
-------
493
-------
FOOD, BEVERAGE & TOBACCO (1.0%)
Genesee, Cl B 10,000 210
M & F Worldwide* 19,000 83
-------
293
-------
GAS/NATURAL GAS (1.6%)
Cascade Natural Gas 8,000 129
CTG Resources 2,000 74
HS Resources* 7,500 158
Madison Gas & Electric 6,000 107
-------
468
-------
Value
Shares (000)
- --------------------------------------------------------------------------------
IRON & STEEL (0.8%)
Brush Wellman 2,000 $ 35
Wolverine Tube* 16,000 205
-------
240
-------
HOTELS & LODGING (0.4%)
Suburban Lodges of America* 20,000 124
-------
INSURANCE (0.6%)
LaSalle Re Holdings 3,500 48
MIIX Group 5,900 82
Standard Management* 10,000 46
-------
176
-------
LEISURE PRODUCTS (3.2%)
Arctic Cat 22,000 226
Huffy 9,000 39
K2 26,000 206
Oakley* 28,000 298
Riddell Sports* 21,500 65
The North Face* 22,500 84
-------
918
-------
MACHINERY (2.6%)
AGCO 14,000 159
Brown & Sharpe Manufacturing,
Cl A* 33,800 65
DT Industries 15,000 191
ITEQ* 77,000 94
MagneTek* 13,000 119
SpeedFam-IPEC* 6,500 129
-------
757
-------
MARINE TRANSPORTATION (0.2%)
Maritrans 8,300 50
-------
MEDICAL PRODUCTS & SERVICES (6.3%)
ADAC Laboratories* 15,000 206
Bio-Rad Labs, Cl A* 3,500 95
Block Drug, Cl A 4,243 117
CHRONIMED* 14,500 109
Cyberonics* 6,500 121
Eclipse Surgical Technologies* 12,000 89
Hologic* 20,000 159
Laserscope* 25,000 49
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 2000 (Unaudited)
CLOVER SMALL CAP VALUE FUND Value
(Continued) Shares (000)
- --------------------------------------------------------------------------------
Matria Healthcare* 35,000 $ 186
Pediatrix Medical Group* 13,000 94
PSS World Medical* 15,000 102
QuadraMed* 20,000 115
Raytel Medical* 28,000 88
Serologicals* 33,000 179
Trex Medical* 34,000 102
-------
1,811
-------
METALS & MINING (0.1%)
Kinross Gold* 25,000 39
-------
NUTRITION PRODUCTS (0.3%)
Nutraceutical International* 20,000 74
-------
OFFICE SUPPLIES (0.3%)
Hunt 10,000 89
-------
PAPER & PAPER PRODUCTS (1.5%)
Gaylord Container* 48,000 306
Rock-Tenn, Cl A 12,000 117
-------
423
-------
PETROLEUM & FUEL PRODUCTS (8.2%)
Cabot Oil & Gas, Cl A 12,500 226
Grey Wolf* 90,000 354
Key Energy Services* 100,000 1,163
Parker Drilling* 61,000 305
Seven Seas Petroleum* 85,000 170
Tesoro Petroleum* 3,300 38
USEC 28,000 130
-------
2,386
-------
PRECIOUS METALS (0.2%)
Golden Star Resources* 48,000 54
-------
PROFESSIONAL SERVICES (2.7%)
ICT Group* 35,200 235
Modis Professional Services* 12,000 149
Personnel Group of America* 10,000 61
ProMedCo Management* 45,000 110
Right Management Consultants* 17,000 156
UniFirst 7,000 79
-------
790
-------
Value
Shares (000)
- --------------------------------------------------------------------------------
REAL ESTATE (0.4%)
Trammell Crow* 11,500 $ 127
-------
REAL ESTATE INVESTMENT TRUSTS (2.4%)
EastGroup Properties 6,000 129
Entertainment Properties Trust 10,000 132
Home Properties of New York 12,600 337
National Golf Properties 5,000 105
-------
703
-------
RETAIL (3.9%)
Cache* 23,800 137
DAMARK International, Cl A* 6,000 229
Duckwall-ALCO Stores* 11,000 89
J. Jill Group* 20,000 79
Tandycrafts* 104,700 301
The Elder-Beerman Stores* 25,500 147
West Marine* 15,000 149
-------
1,131
-------
SEMI-CONDUCTORS/INSTRUMENTS (1.2%)
Exar* 2,500 179
Tegal* 25,700 170
-------
349
-------
SPECIALTY MACHINERY (0.7%)
Lennox International 22,110 193
-------
TELEPHONES & TELECOMMUNICATIONS (2.3%)
CoreComm* 9,000 396
GST Telecommunications* 20,000 122
Primus Telecommunications
Group* 3,000 155
-------
673
-------
TRANSPORTATION SERVICES (0.0%)
Rural/Metro* 5,000 6
-------
TRUCKING (1.4%)
Celadon Group* 13,000 336
Old Dominion Freight Line* 5,000 60
-------
396
-------
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 2000 (Unaudited)
Shares/Face
CLOVER SMALL CAP VALUE FUND Amount Value
(Concluded) (000) (000)
- --------------------------------------------------------------------------------
VETERINARY SERVICES (1.2%)
Heska* 40,000 $ 155
Veterinary Centers of America* 13,500 186
-------
341
-------
WHOLESALE (0.2%)
PrimeSource 12,000 64
-------
TOTAL COMMON STOCKS
(Cost $22,902) 27,269
-------
REPURCHASE AGREEMENT (6.4%)
Morgan Stanley,
5.80%, dated 03/31/00, matures 04/03/00,
repurchase price $1,867,132 (collateralized
by U.S. Treasury Note, par value
$1,814,918, 7.50%, matures 02/15/05:
market value $1,913,488) $1,867 1,867
-------
TOTAL REPURCHASE AGREEMENT
(Cost $1,867) 1,867
-------
TOTAL INVESTMENTS (100.5%)
(Cost $24,769) 29,136
-------
OTHER ASSETS AND LIABILITIES, NET (-0.5%) (138)
-------
Value
(000)
- --------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital (unlimited
authorization -- no par value)
based on 1,599,013 outstanding
shares of beneficial interest $21,565
Accumulated net investment
income loss (34)
Accumulated net realized gain
on investments 3,100
Net unrealized appreciation
on investments 4,367
-------
TOTAL NET ASSETS (100.0%) $28,998
=======
Net Asset Value, Offering and
Redemption Price Per Share $18.13
======
*NON-INCOME PRODUCING SECURITY
CL -- CLASS
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 2000 (Unaudited)
Value
CLOVER EQUITY VALUE FUND Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCKS (97.2%)
AEROSPACE & DEFENSE (3.1%)
Cordant Technologies 17,000 $ 962
Litton Industries* 15,000 663
-------
1,625
-------
APPAREL/TEXTILES (1.8%)
Russell 65,000 930
-------
BANKS (2.0%)
Wells Fargo 25,000 1,023
-------
CHEMICALS (5.9%)
Agrium 76,000 613
Cytec Industries* 20,000 612
IMC Global 40,000 587
OM Group 15,000 682
Omnova Solutions 100,000 562
-------
3,056
-------
COMMUNICATION EQUIPMENT (1.4%)
Loral Space & Communication* 70,000 713
-------
COMPUTERS & SERVICES (28.0%)
American Management Systems* 35,000 1,533
Analysts International 81,500 805
Ceridian* 50,000 959
CIBER* 41,000 841
Computer Horizons* 46,000 788
Convergys* 48,000 1,854
Informix* 110,000 1,863
MAPICS* 76,500 1,219
Networks Associates* 25,000 806
Oracle* 10,000 781
Rainbow Technologies* 17,000 635
Reynolds & Reynolds, Cl A 40,000 1,080
SunGard Data Systems* 15,000 566
Technology Solutions* 79,000 721
-------
14,451
-------
CONSUMER PRODUCTS (5.5%)
Dial 70,000 963
Harman International 20,000 1,200
Sherwin-Williams 30,000 658
-------
2,821
-------
Value
Shares (000)
- --------------------------------------------------------------------------------
DRUGS (1.3%)
Dura Pharmaceuticals* 55,000 $ 677
-------
FINANCIAL SERVICES (5.5%)
Equifax 35,000 884
Nova* 42,000 1,223
S1* 8,500 728
-------
2,835
-------
GAS/NATURAL GAS (10.0%)
Dynegy, Cl A 27,000 1,694
Eastern Enterprises 27,000 1,617
MCN Energy 55,000 1,375
Northwest Natural Gas 25,000 488
-------
5,174
-------
INSURANCE (2.3%)
The PMI Group 25,000 1,186
-------
MACHINERY (1.4%)
Lincoln Electric Holdings 30,000 726
-------
MANUFACTURING (2.2%)
Thermo Electron* 55,000 1,121
-------
MEDICAL PRODUCTS & SERVICES (1.8%)
Becton Dickinson 20,000 526
Chiron* 8,000 399
Parexel International* 2,500 24
-------
949
-------
PETROLEUM & FUEL PRODUCTS (7.8%)
Pioneer Natural Resources 65,000 691
Santa Fe Snyder* 100,000 963
Schlumberger 20,000 1,530
Union Pacific Resources Group 55,000 798
-------
3,982
-------
PETROLEUM REFINING (1.7%)
Transocean Sedco Forex 17,000 872
-------
REAL ESTATE INVESTMENT TRUSTS (1.1%)
Manufactured Home
Communities 25,000 578
-------
RETAIL (1.9%)
Neiman Marcus Group, Cl A* 35,000 973
-------
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 2000 (Unaudited)
Shares/
CLOVER EQUITY VALUE FUND Face Amount Value
(Concluded) (000) (000)
- --------------------------------------------------------------------------------
RETAIL FOOD (3.5%)
Great Atlantic & Pacific Tea 44,000 $ 858
Kroger* 55,000 966
-------
1,824
-------
TELEPHONES & TELECOMMUNICATIONS (5.3%)
Citizens Utilities, Cl B* 90,000 1,474
GST Telecommunications* 50,000 306
RSL Communications, Cl A* 40,000 960
-------
2,740
-------
TRANSPORTATION SERVICES (2.3%)
Galileo International 50,000 1,203
-------
TRUCKING (1.4%)
Yellow* 40,000 738
-------
TOTAL COMMON STOCKS
(Cost $41,765) 50,197
-------
CONVERTIBLE BOND (1.0%)
Meditrust,
Convertible to
33.2114 Shares
7.500%, 03/01/01 600 522
-------
TOTAL CONVERTIBLE BOND
(Cost $598) 522
-------
REPURCHASE AGREEMENT (1.1%)
Morgan Stanley,
5.80%, dated 03/31/00, matures
04/03/00, repurchase price $541,963
(collateralized by U.S. Treasury
Notes, par value $526,545, 7.50%,
matures 02/15/05: market value
$555,141) $542 542
-------
Value
(000)
- --------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $542) $ 542
-------
TOTAL INVESTMENTS (99.3%)
(Cost $42,905) 51,261
-------
OTHER ASSETS AND LIABILITIES, NET (0.7%) 359
-------
NET ASSETS:
Portfolio Capital (unlimited
authorization -- no par value)
based on 3,498,225 outstanding
shares of beneficial interest 41,958
Undistributed net investment income 80
Accumulated net realized gain
on investments 1,226
Net unrealized appreciation
on investments 8,356
-------
TOTAL NET ASSETS (100.0%) $51,620
=======
Net Asset Value, Offering and
Redemption Price Per Share $14.76
======
*NON-INCOME PRODUCING SECURITY
CL -- CLASS
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 2000 (Unaudited)
Value
CLOVER MAX CAP VALUE FUND Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCKS (98.3%)
AEROSPACE & DEFENSE (1.8%)
General Dynamics 850 $ 42
Litton Industries* 450 20
Northrop Grumman 375 20
------
82
------
APPAREL/TEXTILES (2.2%)
Liz Claiborne 2,200 101
------
AUTO PARTS (0.4%)
Cummins Engine 500 19
------
AUTOMOTIVE (1.9%)
Ford Motor 600 28
General Motors 700 58
------
86
------
BANKS (3.3%)
Bank of America 900 47
Bank One 250 9
First Union 500 19
PNC Bank 375 17
Union Planters 450 14
Washington Mutual 600 16
Wells Fargo 750 31
------
153
------
BEAUTY PRODUCTS (0.3%)
International Flavors & Fragrances 350 12
------
BROADCASTING, NEWSPAPERS & ADVERTISING (0.7%)
Chris-Craft Industries* 257 16
RH Donnelley 800 14
------
30
------
COMMERCIAL SERVICES (0.3%)
Cendant* 700 13
------
COMMUNICATIONS EQUIPMENT (1.0%)
ADC Telecommunications* 900 48
------
COMPUTERS & SERVICES (19.1%)
3Com* 300 17
Adobe Systems 500 56
Value
Shares (000)
- --------------------------------------------------------------------------------
Autodesk 1,100 $ 50
Compaq Computer 2,800 75
Computer Associates 1,150 68
Computer Sciences* 575 45
International Business Machines 425 50
J.D. Edwards & Company* 750 24
Lexmark International Group, Cl A* 200 21
Lycos* 250 18
Micron Electronics* 3,000 42
Microsoft* 1,300 138
NCR* 250 10
Networks Associates* 3,100 100
Oracle* 600 47
Parametric Technology* 1,000 21
SAP AG ADR 800 48
Seagate Technology* 600 36
Transaction Systems Architects* 400 12
------
878
------
CONSUMER PRODUCTS (2.2%)
Fortune Brands 300 7
HJ Heinz 600 21
Johnson & Johnson 325 23
Playtex Products* 900 12
Sherwin-Williams 1,700 37
------
100
------
DRUGS (2.2%)
American Home Products 425 23
Bristol-Myers Squibb 900 52
Eli Lilly 275 17
Merck 150 9
------
101
------
ELECTRICAL PRODUCTS (2.0%)
General Electric 600 93
------
ENTERTAINMENT (3.1%)
Mattel 5,600 58
Walt Disney 2,000 83
------
141
------
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 2000 (Unaudited)
Value
CLOVER MAX CAP VALUE FUND Shares (000)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES (4.9%)
Citigroup 1,750 $ 104
Merrill Lynch 550 58
Morgan Stanley, Dean Witter,
& Company 525 43
The Charles Schwab 375 21
------
226
------
FOOD, BEVERAGE & TOBACCO (3.6%)
Bestfoods 250 12
ConAgra 450 8
McCormick 900 29
Ralston-Ralston Purina Group 2,000 55
Sara Lee 1,200 22
Tyson Foods 3,400 38
------
164
------
GAS/NATURAL GAS (2.2%)
Dynegy, Cl A 1,000 63
National Fuel Gas 400 18
Northwest Natural Gas 1,100 21
------
102
------
HOUSEHOLD PRODUCTS (0.7%)
Alberto-Culver, Cl B 850 20
Allergan 250 12
------
32
------
INSURANCE (1.6%)
Allstate 700 17
American International Group 425 47
SAFECO 400 11
------
75
------
LUMBER & WOOD PRODUCTS (0.6%)
Georgia-Pacific 700 28
------
MACHINERY (2.3%)
Deere 1,250 47
Eaton 275 21
Timken 2,300 37
------
105
------
Value
Shares (000)
- --------------------------------------------------------------------------------
MANUFACTURING (0.8%)
Thermo Electron* 1,800 $ 37
------
MEDICAL PRODUCTS & SERVICES (3.9%)
Baxter International 250 16
Becton Dickinson 350 9
Boston Scientific* 1,400 30
Columbia/HCA Healthcare 1,000 25
Humana* 4,500 33
Pall 700 16
Stryker 250 17
Tenet Healthcare* 700 16
United Healthcare 325 19
------
181
------
METALS & MINING (0.2%)
Newmont Mining 350 8
------
MISCELLANEOUS BUSINESS SERVICES (0.3%)
First Data 350 15
------
NETWORKING PRODUCTS (0.3%)
Adaptec* 350 13
------
PAPER & PAPER PRODUCTS (1.3%)
Fort James 800 18
International Paper 275 12
Smurfit-Stone Container* 1,000 17
Temple-Inland 225 11
------
58
------
PETROLEUM & FUEL PRODUCTS (2.8%)
Conoco, Cl A 500 12
Halliburton 600 25
Occidental Petroleum 1,400 29
Schlumberger 400 31
Unocal 1,125 33
------
130
------
PETROLEUM REFINING (6.7%)
BP Amoco Plc-Spons ADR 1,164 62
Chevron 300 28
Devon Energy 1,300 63
Diamond Offshore Drilling 800 32
Exxon Mobil 350 27
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 2000 (Unaudited)
CLOVER MAX CAP VALUE FUND Value
(Concluded) Shares (000)
- --------------------------------------------------------------------------------
Global Marine* 900 $ 23
Texaco 700 38
Transocean Sedco Forex 77 4
Vastar Resources 425 32
------
309
------
PRINTING & PUBLISHING (0.6%)
Tribune 800 29
------
REAL ESTATE INVESTMENT TRUSTS (5.9%)
AMB Property 1,600 34
Camden Property Trust 800 22
Equity Office Properties Trust 800 20
Equity Residential Properties Trust 650 26
First Industrial Realty Trust 2,925 80
Mack-Cali Realty 375 10
Post Properties 200 8
Prentiss Properties 1,500 33
Spieker Properties 800 36
------
269
------
RESTAURANTS (0.7%)
Tricon Global Restaurants* 650 20
Wendy's International 600 12
------
32
------
RETAIL (0.4%)
Tandy 400 20
------
RETAIL FOOD (0.7%)
Safeway* 700 32
------
SEMI-CONDUCTORS/INSTRUMENTS (6.4%)
Analog Devices* 650 52
Applied Materials* 300 28
Intel 700 92
LSI Logic* 750 54
Micron Technology 400 50
National Semiconductor* 350 21
------
297
------
TELECOMMUNICATIONS EQUIPMENT (2.5%)
Broadwing* 600 22
ECI Telecom 1,050 33
GTE 200 14
Nippon Telegraph & Telephone 600 47
------
116
------
Shares/
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS (8.4%)
ALLTEL 775 $ 49
AT&T 1,525 86
Bell Atlantic 225 14
BellSouth 300 14
EMC* 250 31
SBC Communications 550 23
Talk.com* 5,300 85
US West 1,150 84
------
386
------
TOTAL COMMON STOCKS
(Cost $4,070) 4,521
------
REPURCHASE AGREEMENT (1.2%)
Morgan Stanley,
5.80%, dated 03/31/00, matures
04/03/00, repurchase price $53,183
(collateralized by U.S. Treasury
Note, par value $51,696, 7.50%,
matures 02/15/05: market value
$54,503) $53 53
------
TOTAL REPURCHASE AGREEMENT
(Cost $53) 53
------
TOTAL INVESTMENTS (99.5%)
(Cost $4,123) 4,574
------
OTHER ASSETS AND LIABILITIES, NET (0.5%) 21
------
TOTAL NET ASSETS (100.0%) $4,595
======
*NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 2000 (Unaudited)
Face
Amount Value
CLOVER FIXED INCOME FUND (000) (000)
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS (41.1%)
BUILDING & CONSTRUCTION PRODUCTS (0.6%)
Masco
6.125%, 09/15/03 $ 200 $ 192
-------
ELECTRICAL SERVICES (1.5%)
Pacific Gas & Electric
7.875%, 03/01/02 500 504
-------
ENTERTAINMENT (3.3%)
Mattel
6.750%, 05/15/00 350 350
Walt Disney
6.375%, 03/30/01 750 744
-------
1,094
-------
FINANCIAL SERVICES (1.5%)
Pitney Bowes Credit
5.650%, 01/15/03 500 483
-------
FOOD, BEVERAGE & TOBACCO (5.8%)
Anheuser Busch
6.750%, 08/01/03 750 741
Canandaigua Brands
8.750%, 12/15/03 1,250 1,209
-------
1,950
-------
GAS/NATURAL GAS (9.9%)
Amoco Canada
6.750%, 02/15/05 1,500 1,470
Chevron
8.110%, 12/01/04 360 366
Columbia Gas Systems
6.610%, 11/28/02 1,000 971
Texaco Capital
7.420%, 07/15/02 500 503
-------
3,310
-------
MEDICAL PRODUCTS & SERVICES (7.6%)
Abbott Laboratories
5.600%, 10/01/03 700 671
Eli Lilly
8.125%, 12/01/01 250 254
6.250%, 03/15/03 1,150 1,121
Zeneca Wilmington
6.300%, 06/15/03 500 486
-------
2,532
-------
Face
Amount Value
(000) (000)
- --------------------------------------------------------------------------------
PRINTING & PUBLISHING (1.1%)
Knight-Ridder
8.500%, 09/01/01 $ 377 $ 378
-------
RETAIL (1.2%)
Wal-Mart Stores
8.625%, 04/01/01 400 406
-------
UTILITIES (8.6%)
Detroit Edison
6.560%, 05/01/01 500 497
Northern Illinois Gas
6.750%, 06/01/02 1,000 992
Northern States Power
7.875%, 10/01/01 650 657
5.875%, 03/01/03 750 724
-------
2,870
-------
TOTAL CORPORATE OBLIGATIONS
(Cost $13,992) 13,719
-------
U.S. GOVERNMENT MORTGAGE-BACKED BONDS (18.9%)
FHLMC, CMO/REMIC,
Ser 1561, Cl H
6.500%, 05/15/08 750 731
FHLMC, Pool # 252641
8.000%, 07/01/07 3 3
FHLMC, Pool # 277449
8.500%, 09/01/09 6 6
FHLMC, REMIC,
Ser 1546, Cl H
7.000%, 12/15/22 390 373
FNMA, CMO/REMIC,
Ser 1992-193, Cl HC
7.000%, 01/25/07 1,000 986
FNMA, Pool # 369214
5.000%, 04/01/09 305 273
FNMA, REMIC,
Ser 1993-118 Cl G
6.500%, 11/25/06 1,000 994
FNMA, REMIC,
Ser 1993-95, Cl PE
6.500%, 10/25/07 750 745
FNMA, REMIC,
Ser 1994-17, Cl H
6.000%, 02/25/09 750 708
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
STATEMENT OF NET ASSETS CLOVER FUNDS
March 31, 2000 (Unaudited)
Face
CLOVER FIXED INCOME FUND Amount Value
(Continued) (000) (000)
- --------------------------------------------------------------------------------
FNMA, REMIC,
Ser G93-21, Cl VE
6.600%, 11/25/07 $ 184 $ 177
GNMA, Pool # 013125
8.000%, 10/15/06 25 26
GNMA, Pool # 187899
8.000%, 05/15/17 113 114
GNMA, Pool # 196477
10.000%, 04/15/10 58 62
GNMA, Pool # 202886
8.000%, 03/15/17 127 128
GNMA, Pool # 221235
8.500%, 07/15/17 67 69
GNMA, Pool # 331786
8.000%, 08/15/22 146 148
GNMA, Pool # 376400
6.500%, 02/15/24 828 781
-------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED BONDS
(Cost $6,487) 6,324
-------
U.S. TREASURY OBLIGATIONS (34.9%)
U.S. Treasury Bonds
7.250%, 05/15/16 2,000 2,206
7.500%, 11/15/16 1,000 1,132
8.125%, 05/15/21 750 920
7.250%, 08/15/22 1,500 1,696
6.375%, 08/15/27 1,750 1,822
U.S. Treasury Notes
7.250%, 05/15/04 150 155
5.625%, 02/15/06 1,500 1,449
7.000%, 07/15/06 750 775
6.500%, 10/15/06 1,500 1,513
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $11,961) 11,668
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS (2.4%)
FNMA, MTN
6.920%, 03/19/07 555 550
Private Export Funding
6.620%, 10/01/05 250 248
-------
Face
Amount Value
(000) (000)
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $857) $ 798
-------
REPURCHASE AGREEMENT (1.3%)
Morgan Stanley,
5.80%, dated 03/31/00, matures
04/03/00, repurchase price $419,258
(collateralized by U.S. Treasury
Note, par value $425,888, 7.50%,
matures 02/15/05: market value
$429,667) $419 419
-------
TOTAL REPURCHASE AGREEMENT
(Cost $419) 419
-------
TOTAL INVESTMENTS (98.6%)
(Cost $33,716) 32,928
-------
OTHER ASSETS AND LIABILITIES, NET (1.4%) 483
-------
NET ASSETS:
Portfolio Capital (unlimited
authorization -- no par value)
based on 3,521,468 outstanding
shares of beneficial interest 34,495
Undistributed net investment income 7
Accumulated net realized loss
on investments (303)
Net unrealized depreciation
on investments (788)
-------
TOTAL NET ASSETS (100.0%) $33,411
=======
Net Asset Value, Offering and
Redemption Price Per Share $9.49
=====
CL -- CLASS
CMO -- COLLATERALIZED MORTGAGE OBLIGATION
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
SER -- SERIES
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (000) CLOVER FUNDS
(Unaudited)
CLOVER MAX CAP
VALUE FUND
---------------
AS OF
3/31/00
- --------------------------------------------------------------------------------
Assets:
Investment securities at value (Cost $4,123) ............. $4,574
Income receivable ........................................ 8
Receivable for investment securities sold ................ 281
Receivable for capital shares sold ....................... 9
Other Assets ........................................... 31
- --------------------------------------------------------------------------------
Total Assets ........................................... 4,903
- --------------------------------------------------------------------------------
Liabilities:
Income payable ........................................... (10)
Payable for investment securities purchased .............. (273)
Accrued expenses ....................................... (25)
- --------------------------------------------------------------------------------
Total Liabilities ...................................... (308)
- --------------------------------------------------------------------------------
Net Assets:
Portfolio capital (unlimited authorization--
no par value) based on 381,682 outstanding
shares of beneficial interest ......................... 4,146
Accumulated net realized loss on investments ............. (2)
Net unrealized appreciation of investments ............... 451
- --------------------------------------------------------------------------------
Total Net Assets ....................................... $4,595
================================================================================
Net Asset Value, Offering Price, and
Redemption Price Per Share ............................... $12.04
================================================================================
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
STATEMENT OF OPERATIONS (000) CLOVER FUNDS
For the six-month period ended March 31, 2000 (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 .............................................. $ 82 $ 384 $ 30 $ --
Interest ............................................... 31 57 5 1,061
- ---------------------------------------------------------------------------------------------------------------
Total Investment Income .............................. 113 441 35 1,061
- ---------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ............................... 91 198 13 74
Investment Advisory Fee Waiver ......................... (10) -- (13) (40)
Administrator Fees ..................................... 33 33 32 33
Custodian Fees ......................................... 2 3 1 2
Transfer Agent Fees .................................... 12 30 15 25
Professional Fees ...................................... 9 10 6 14
Trustee Fees ........................................... 1 -- 1 1
Registration Fees ...................................... 5 7 -- 6
Pricing Fees ........................................... 1 -- -- 2
Printing Expense ....................................... 2 5 (1) 5
Amortization of Deferred Organizational Costs .......... 1 1 5 1
Insurance and Other Fees ............................... -- 1 -- --
- ---------------------------------------------------------------------------------------------------------------
Total Expenses ....................................... 147 288 59 123
- ---------------------------------------------------------------------------------------------------------------
Less: Reimbursements by Adviser ........................ -- -- (42) --
- ---------------------------------------------------------------------------------------------------------------
Total Net Expenses ................................... 147 288 17 123
- ---------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) ..................... (34) 153 18 938
- ---------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) From Securities Sold .......... 3,151 1,868 6 (140)
Net Unrealized Appreciation of Investment Securities.... 4,299 6,339 502 92
- ---------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss)
on Investments ................................... 7,450 8,207 508 (48)
- ---------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
From Operations ..................................... $7,416 $8,360 $526 $ 890
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS (000)
<TABLE>
<CAPTION>
CLOVER SMALL CAP
VALUE FUND
-------------------------
FOR THE
SIX-MONTH YEAR
PERIOD ENDED ENDED
3/31/00 9/30/99
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Activities:
Net Investment Income Gain (Loss) ........................ $ (34) $ (17)
Net Realized Gain (Loss) on Securities Sold .............. 3,151 1,818
Net Unrealized Appreciation (Depreciation) of
Investment Securities .................................. 4,299 1,161
- -----------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
from Operations ...................................... 7,416 2,962
- -----------------------------------------------------------------------------------------------
Distributions to Shareholders:
Net Investment Income .................................... -- --
Realized Capital Gain .................................... (1,422) (327)
- -----------------------------------------------------------------------------------------------
Total Distributions .................................... (1,422) (327)
- -----------------------------------------------------------------------------------------------
Capital Share Transactions:
Proceeds from Shares Issued .............................. 12,938 3,059
Proceeds from Shares Issued in Lieu of
Cash Distributions ..................................... 1,407 323
Cost of Shares Redeemed .................................. (7,835) (5,185)
- -----------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Capital Share Transactions ........................... 6,510 (1,803)
- -----------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets ................ 12,504 832
- -----------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period .................................... 16,494 15,662
- -----------------------------------------------------------------------------------------------
End of Period(1) ....................................... $28,998 $16,494
===============================================================================================
Shares Issued and Redeemed:
Issued ................................................... 789 240
Issued in Lieu of Cash Distributions ..................... 97 27
Redeemed ................................................. (490) (427)
- -----------------------------------------------------------------------------------------------
Net Increase (Decrease) in Share Transactions .......... 396 (160)
- -----------------------------------------------------------------------------------------------
(1) Includes undistributed net investment income (loss) and/or distributions in
excess of net investment income (000) of $(34) and $0 for the Clover Small
Cap Value Fund, $80 and $80 for the Clover Equity Value Fund, and $7 and $7
for the Clover Fixed Income Fund, as of March 31, 2000, and September 30,
1999, respectively.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part ofthe financial statements.
14
<PAGE>
</TABLE>
<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 YEAR SIX-MONTH YEAR
PERIOD ENDED ENDED PERIOD ENDED ENDED PERIOD ENDED ENDED
3/31/00 9/30/99 3/31/00 9/30/99 3/31/00 9/30/99
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 153 $ 928 $ 18 $ 30 $ 938 $ 1,807
1,868 14,773 6 278 (140) (138)
6,339 (10,436) 502 158 92 (2,256)
- ----------------------------------------------------------------------------------------------------------
8,360 5,265 526 466 890 (587)
- ----------------------------------------------------------------------------------------------------------
(153) (927) (18) (30) (938) (1,807)
(11,807) (3,802) (274) (12) -- (653)
- ----------------------------------------------------------------------------------------------------------
(11,960) (4,729) (292) (42) (938) (2,460)
- ----------------------------------------------------------------------------------------------------------
11,922 21,142 1,879 1,117 5,464 11,824
11,379 4,641 291 51 893 2,316
(27,683) (57,523) (534) (643) (5,627) (11,739)
- ----------------------------------------------------------------------------------------------------------
(4,382) (31,740) 1,636 525 730 2,401
- ----------------------------------------------------------------------------------------------------------
(7,982) (31,204) 1,870 949 682 (646)
- ----------------------------------------------------------------------------------------------------------
59,602 90,806 2,725 1,776 32,729 33,375
- ----------------------------------------------------------------------------------------------------------
$51,620 $ 59,602 $4,595 $2,725 $33,411 $32,729
==========================================================================================================
795 1,323 164 97 583 1,204
872 295 26 5 95 235
(1,912) (3,603) (46) (57) (600) (1,202)
- ----------------------------------------------------------------------------------------------------------
(245) (1,985) 144 45 78 237
- ----------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
FINANCIAL HIGHLIGHTS CLOVER FUNDS
For a Share Outstanding Throughout each Period (Unaudited)
<TABLE>
<CAPTION>
Net Realized and Net
Asset Net Unrealized Distributions Distributions Asset
Value Investment Gains or from Net from Value
Beginning Income (Losses) on Investment Capital End Total
of Period (Loss) Investments Income Gains of Period Return+
--------- ---------- ----------- ------------- ------------- --------- -------
- ---------------------------
CLOVER SMALL CAP VALUE FUND
- ---------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2000* $13.71 (0.02) 5.68 -- (1.24) $18.13 43.61%
1999 11.49 (0.01) 2.48 -- (0.25) 13.71 21.82
1998 15.94 (0.06) (3.22) -- (1.17) 11.49 (21.25)
1997(1) 10.87 (0.04) 5.24 -- (0.13) 15.94 48.23
1996(2) 10.00 0.02 0.88 (0.03) -- 10.87 8.97
- ------------------------
CLOVER EQUITY VALUE FUND
- ------------------------
2000* $15.92 0.04 2.30 (0.04) (3.46) $14.76 17.69%
1999 15.85 0.21 0.74 (0.21) (0.67) 15.92 6.13
1998 18.99 0.15 (1.12) (0.15) (2.02) 15.85 (6.00)
1997(1) 16.20 0.18 3.54 (0.18) (0.75) 18.99 23.86
1996 15.29 0.19 2.15 (0.22) (1.21) 16.20 16.47
1995 13.74 0.24 2.46 (0.22) (0.93) 15.29 21.25
1994 11.94 0.08 2.01 (0.08) (0.21) 13.74 17.80
- -------------------------
CLOVER MAX CAP VALUE FUND
- -------------------------
2000* $11.43 0.05 1.65 (0.05) (1.04) $12.04 15.68%
1999 9.21 0.13 2.27 (0.13) (0.05) 11.43 26.17
1998(3) 10.00 0.15 (0.79) (0.15) -- 9.21 (6.52)
- ------------------------
CLOVER FIXED INCOME FUND
- ------------------------
2000* $ 9.50 0.27 (0.01) (0.27) -- $ 9.49 2.78%
1999 10.41 0.53 (0.71) (0.53) (0.20) 9.50 (1.78)
1998 9.92 0.57 0.51 (0.57) (0.02) 10.41 11.32
1997(1) 9.85 0.54 0.16 (0.54) (0.09) 9.92 7.43
1996 9.89 0.59 0.01 (0.59) (0.05) 9.85 6.26
1995 9.14 0.58 0.77 (0.58) (0.02) 9.89 15.27
1994 10.85 0.57 (0.92) (0.57) (0.79) 9.14 (3.54)
</TABLE>
<TABLE>
<CAPTION>
Ratio of Net
Ratio of Investment
Ratio of Net Expenses Income (Loss)
Net Investment to Average to Average
Assets Ratio Income Net Assets Net Assets
End of Expenses or (Loss) (Excluding (Excluding Portfolio
of Period to Average to Average Waivers and Waivers and Turnover
(000) Net Assets Net Assets Reimbursements) Reimbursements) Rate
--------- ----------- ---------- -------------- --------------- --------
- ---------------------------
CLOVER SMALL CAP VALUE FUND
- ---------------------------
<S> <C> <C> <C> <C> <C> <C>
2000* $ 28,998 1.38% (0.32)% 1.47% (0.41)% 47.02%
1999 16,494 1.40 (0.10) 1.72 (0.42) 79.93
1998 15,662 1.40 (0.50) 1.84 (0.94) 70.02
1997(1) 15,279 1.40 (0.64) 2.43 (1.67) 59.03
1996(2) 4,495 1.40 (0.03) 5.29 (3.92) 14.17
- ------------------------
CLOVER EQUITY VALUE FUND
- ------------------------
2000* $ 51,620 1.08% 0.57% 1.82% (0.17)% 54.68%
1999 59,602 0.95 1.21 0.95 1.21 98.85
1998 90,806 1.10 0.82 1.12 0.80 42.10
1997(1) 117,859 1.10 1.18 1.15 1.13 51.64
1996 85,050 1.10 1.32 1.21 1.21 51.36
1995 51,647 1.10 1.82 1.20 1.72 84.76
1994 25,249 1.14 0.71 1.30 0.55 58.44
- -------------------------
CLOVER MAX CAP VALUE FUND
- -------------------------
2000* $ 4,595 0.95% 1.03% 4.11% (2.13)% 50.85%
1999 2,725 0.95 1.20 4.13 (1.98) 92.2
1998(3) 1,776 0.95 1.82 11.40 (8.63) 62.71
- ------------------------
CLOVER FIXED INCOME FUND
- ------------------------
2000* $ 33,411 0.75% 5.71% 1.00% 5.46% 9.62%
1999 32,729 0.75 5.40 0.97 5.18 28.47
1998 33,375 0.75 5.67 0.99 5.43 27.07
1997(1) 23,677 0.75 6.03 1.02 5.76 11.83
1996 19,731 0.80 6.00 1.11 5.69 24.52
1995 14,685 0.80 6.13 1.40 5.53 35.84
1994 9,762 0.80 5.88 1.46 5.22 11.11
</TABLE>
* For the six-month period ended March 31. All ratios are for the period
indicated and have been annualized.
+ Returns are for the periods 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. All ratios are for the period indicated and have been
annualized.
(2) The Clover Small Cap Value Fund commenced operations on February 28, 1996.
All ratios are for the period indicated and have been annualized.
(3) The Clover Max Cap Value Fund commenced operations on October 31, 1997. All
ratios are for the period indicated and have been annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS CLOVER FUNDS
March 31, 2000 (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 19 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.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued) CLOVER FUNDS
March 31, 2000 (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.
Certain 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 dated June 25, 1997. 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
18
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Concluded) CLOVER FUNDS
March 31, 2000 (Unaudited)
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. 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, 2000, are as follows
(000):
CLOVER CLOVER CLOVER CLOVER
SMALL CAP EQUITY MAX CAP FIXED
VALUE VALUE VALUE INCOME
FUND FUND FUND FUND
--------- ------- ------- ------
Purchases
Government $ -- $ -- $ -- $3,712
Other 13,840 28,586 2,992 1,269
Sales
Government $ -- $ -- $ -- $1,891
Other 9,563 42,571 1,706 904
At March 31, 2000, 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, 2000, 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 $7,454 $11,289 $ 725 $ 128
Aggregate
gross
unrealized
depreciation (3,087) (2,933) (2,74) (916)
------- -------- ----- -----
Net unrealized
appreciation/
(depreciation) $4,367 $ 8,356 $ 451 $(788)
====== ======= ===== =====
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, 2000, is as follows:
S&P MOODY'S
--------------- --------------
Bonds: AAA 57.62% AAA 57.99%
AA 23.17% AA 22.67%
A 12.25% A 7.77%
BAA 1.06% BBB 4.01%
BB 0.00% BA 0.00%
B 3.67% B 3.67%
NR 2.22% NR 3.89%
------ ------
100.00% 100.00%
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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 simply call 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 PROSPECTUS, WHICH
CONTAINS DETAILED INFORMATION.
