<PAGE>
[Logo] WM
GROUPofFUNDS
[Graphic Omitted]
STRATEGIC ASSET
MANAGEMENT PORTFOLIOS
----------------------------------
the difference is experience
----------------------------------
Semi-Annual Report
for the period ended April 30, 2000
<PAGE>
[graphic omitted]
WM STRATEGIC ASSET
MANAGEMENT PORTFOLIOS
strategic growth portfolio
conservative growth portfolio
balanced portfolio
flexible income portfolio
income portfolio
CONTENTS
message from the president 1
statements of assets and liabilities 2
statements of operations 4
statements of changes in net assets 5
statements of changes in net assets - capital stock activity 8
financial highlights 10
portfolio of investments 20
notes to financial statements (unaudited) 25
<PAGE>
[Photo of William G. Papesh]
Dear Shareholder,
The tides of the equity markets shifted in the past six months, as the prices of
many stocks that drove markets to new highs in late 1999 retreated. Although
first quarter earnings were strong and most companies had healthy balance
sheets, prices of many growth stocks were overextended, peaking in early March.
This concentrated correction may be a healthy revaluation and could pave the way
for the return of market breadth. Some of the "Old Economy" stocks should
continue to gain favor relative to higher-valued "dot com" companies. Market
volatility has been unprecedented, as four of the technology-heavy NASDAQ
Index's ten worst historical days (on a percentage basis) were recorded in April
2000.
The recent divergence of market indices can create confusion when reported by
media sources. Historically, the Dow Jones Industrial Average (DJIA), which is
most watched, dates back prior to 1900 and measures 30 of the country's largest
companies' stock performance. With increased investment awareness and
intensified financial news reporting, additional indices are now being followed
on a minute-by-minute basis around the globe. For example, the Standard & Poor's
500 (S&P 500) Index, a capitalization-weighted compilation of 500 of the largest
companies traded on domestic market exchanges, has become the most common
benchmark used by domestic equity mutual funds. It is broader in scope than the
DJIA and more indicative of the overall large-cap market. Another index that has
grabbed recent headlines is the NASDAQ. It has a much more significant exposure
to small- and medium-sized companies. Much of the NASDAQ's popularity can be
attributed to its concentration in technology holdings and its meteoric rise in
the past several years. No matter what index you track, it is important to keep
the scope and relative magnitude of the daily moves in perspective. While 100
point fluctuations in the DJIA attracted headlines in the past, this now only
represents a 1% move and has become routine. For comparative purposes, 100
points on the NASDAQ index is approximately 3%. During the 12-month period ended
April 30, 2000, the weekly risk or volatility of the NASDAQ Index was nearly
double that of the DJIA.(1)
Since the biggest advances in the past several years were narrowly focused,
portfolio managers who had stayed away from large concentrations in the hottest
sectors were stung by weaker relative performance. Now, as the markets appear to
be shifting, adherence to a long-term strategy and investment discipline becomes
crucial. The WM GROUP OF FUNDS' unique focus on strict investment philosophy
could pay off with a broadening market and a resurgence of some core value
holdings that generate consistent cash flows and earnings.
Because of the recent narrow focus, it is important to manage our expectations
of the equity markets. The five-year period ended December 31, 1999, was the
strongest ever, with the S&P 500 returning an average of over 28%(2) per year.
As we have seen since this past March, these steep gains, particularly for the
largest growth stocks, will not continue forever. Therefore, we have to manage
our portfolios with that in mind. There are several strategies and solutions
that can help temper short-term market fluctuations including: regular
investments, diversified portfolios with multiple asset classes, and sticking
with a long-term plan.
During the period, we added the WM MID CAP STOCK FUND to help round out our Fund
family. The Fund will focus on taking advantage of the growth potential from
medium-sized companies. We also changed the names of a few of our Funds to more
closely match their investment objectives, making it easier for you to
understand how the Funds could possibly fit your individual investment needs.
I again stress the importance of meeting with your Investment Representative and
maintaining a long-term diversified focus. Your Representative can assess your
risk tolerance and help you make any changes necessary to put you on track
toward meeting your long-term goals. At the WM GROUP OF FUNDS, our experience
has proven that the key to successful investing is a long-term focus. Markets
will shift in response to short-term conditions, but long-term investing does
not depend on accurate predictions of short-term events.
We will continue to build, grow and leverage our experience and history to help
meet your investment needs - just as we have for over 60 years. Thank you for
your continued confidence in the WM GROUP OF FUNDS.
Sincerely,
/s/ William G. Papesh
William G. Papesh
President
(1) Source: NASDAQ and Dow Jones. Both are unmanaged indices of common stocks.
Risk is measured by standard deviation or the movement around the mean
return.
(2) Source: Ibbotson Associates. The S&P 500 is an unmanaged index of common
stocks. Results include reinvestment of dividends.
Past performance is no guarantee of future results. Individuals cannot invest
directly in any index.
<PAGE>
<TABLE>
STATEMENTS of ASSETS and LIABILITIES
WM GROUP OF FUNDS
APRIL 30, 2000 (UNAUDITED)
<CAPTION>
STRATEGIC CONSERVATIVE FLEXIBLE
GROWTH GROWTH BALANCED INCOME INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value
(See portfolios of investments) (a) ..... $382,280,426 $774,238,890 $776,616,485 $213,549,425 $17,476,238
Cash ...................................... 158,550 -- 1,475,942 464 86,194
Dividends and/or interest receivable ...... 952 1,255 269,229 3,416 15,361
Receivable for Fund shares sold ........... 3,616,803 6,825,201 7,787,109 1,250,289 73,791
Receivable for investment securities
sold .................................... -- -- 776,000 -- --
Unamortized organization costs ............ 10,487 10,487 10,487 10,487 10,487
Receivable from investment advisor ........ -- -- -- -- 13,529
Prepaid expenses and other assets ......... 7,024 15,568 15,939 5,150 474
------------ ------------ ------------ ------------ -----------
Total Assets .......................... 386,074,242 781,091,401 786,951,191 214,819,231 17,676,074
------------ ------------ ------------ ------------ -----------
LIABILITIES:
Payable for Fund shares redeemed .......... 387,927 1,131,900 804,127 768,551 86,001
Payable for investment securities
purchased ............................... 1,914,362 2,632,000 4,968,344 -- 101,386
Investment advisory fee payable ........... 45,582 92,821 93,920 14,955 --
Administration fee payable ................ 151,938 309,402 313,067 88,029 7,282
Shareholder servicing and distribution
fees payable ............................ 230,638 421,405 391,568 80,376 10,770
Dividends payable ......................... -- -- 14,823 1,067 17,098
Accrued expenses and other payables ....... 76,499 138,559 141,589 28,739 9,776
------------ ------------ ------------ ------------ -----------
Total Liabilities ..................... 2,806,946 4,726,087 6,727,438 981,717 232,313
------------ ------------ ------------ ------------ -----------
NET ASSETS ................................ $383,267,296 $776,365,314 $780,223,753 $213,837,514 $17,443,761
============ ============ ============ ============ ===========
-----------
(a) Investments, at cost .................. $317,991,834 $633,190,523 $699,024,204 $214,292,763 $17,837,762
============ ============ ============ ============ ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
STATEMENTS of ASSETS and LIABILITIES (continued)
WM GROUP OF FUNDS
APRIL 30, 2000 (UNAUDITED)
<CAPTION>
STRATEGIC CONSERVATIVE FLEXIBLE
GROWTH GROWTH BALANCED INCOME INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
NET ASSETS CONSIST OF:
Accumulated net investment (loss)/
(distributions in excess of net
investment income) ...................... $ (8,884,578) $(15,772,336) $(11,290,214) $ (1,774,210) $ --
Accumulated net realized gain/(loss)
on investments sold ..................... 15,832,770 41,256,773 37,076,325 2,913,063 (307,602)
Net unrealized appreciation/
(depreciation) of investments ........... 64,288,592 141,048,367 77,592,281 (743,338) (361,524)
Paid-in capital ........................... 312,030,512 609,832,510 676,845,361 213,441,999 18,112,887
------------ ------------ ------------ ------------ -----------
Total Net Assets ...................... $383,267,296 $776,365,314 $780,223,753 $213,837,514 $17,443,761
============ ============ ============ ============ ===========
NET ASSETS:
Class A Shares ............................ $120,484,268 $324,494,252 $382,483,361 $153,056,851 $ 6,054,843
============ ============ ============ ============ ===========
Class B Shares ............................ $262,783,028 $451,871,062 $397,740,392 $ 60,780,663 $11,388,918
============ ============ ============ ============ ===========
SHARES OUTSTANDING:
Class A Shares ............................ 6,955,770 20,772,540 28,234,794 13,990,299 616,897
============ ============ ============ ============ ===========
Class B Shares ............................ 15,443,682 29,477,498 29,387,576 5,555,704 1,160,482
============ ============ ============ ============ ===========
CLASS A SHARES:
Net asset value per share of beneficial
interest outstanding* ................... $ 17.32 $ 15.62 $ 13.55 $ 10.94 $ 9.81
============ ============ ============ ============ ===========
Maximum sales charge ...................... 5.50% 5.50% 5.50% 4.50% 4.50%
============ ============ ============ ============ ===========
Maximum offering price per share of
beneficial interest outstanding ......... $ 18.33 $ 16.53 $ 14.34 $ 11.46 $ 10.27
============ ============ ============ ============ ===========
CLASS B SHARES:
Net asset value and offering price per
share of beneficial interest outstanding* $ 17.02 $ 15.33 $ 13.53 $ 10.94 $ 9.81
============ ============ ============ ============ ===========
--------------
* Redemption price per share is equal to net asset value per share less any applicable contingent deferred sales charge.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
STATEMENTS of OPERATIONS
WM GROUP OF FUNDS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
<CAPTION>
STRATEGIC CONSERVATIVE FLEXIBLE
GROWTH GROWTH BALANCED INCOME INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends ................................. $ 1,338,395 $ 5,756,308 $ 10,552,768 $ 5,879,853 $ 649,143
Interest .................................. 40,067 67,542 65,548 30,226 6,242
------------ ------------ ------------ ------------ -----------
Total investment income ............... 1,378,462 5,823,850 10,618,316 5,910,079 655,385
------------ ------------ ------------ ------------ -----------
EXPENSES:
Investment advisory fee ................... 223,438 488,467 510,583 170,177 14,133
Administration fee ........................ 744,793 1,628,223 1,701,943 567,258 47,109
Custodian fees ............................ 1,165 1,532 1,786 815 1,014
Legal and audit fees ...................... 12,481 22,237 24,283 13,806 5,967
Amortization of organization costs ........ 4,565 4,565 4,565 4,565 4,565
Registration and filing fees .............. 45,176 59,445 87,939 39,832 10,911
Other ..................................... 97,397 189,294 213,971 75,813 9,119
Shareholder servicing and distribution
fees:
Class A Shares .......................... 127,274 368,279 456,426 216,449 8,476
Class B Shares .......................... 980,489 1,783,329 1,578,183 268,718 60,314
Transfer agent fees:
Class A Shares .......................... 29,717 69,779 92,283 49,182 2,518
Class B Shares .......................... 61,115 82,026 74,251 12,319 3,217
Fees waived and/or expenses
reimbursed by investment advisor ........ -- -- -- (11,453) (15,714)
------------ ------------ ------------ ------------ -----------
Total expenses ........................ 2,327,610 4,697,176 4,746,213 1,407,481 151,629
Fees reduced by credits allowed
by the custodian ........................ -- -- -- -- (14)
------------ ------------ ------------ ------------ -----------
Net expenses .......................... 2,327,610 4,697,176 4,746,213 1,407,481 151,615
------------ ------------ ------------ ------------ -----------
NET INVESTMENT INCOME/(LOSS) .............. (949,148) 1,126,674 5,872,103 4,502,598 503,770
------------ ------------ ------------ ------------ -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS:
Net realized gain/(loss) on investments ... 1,479,067 13,897,285 17,543,048 (200,477) (261,059)
Capital gain distribution received ........ 14,954,155 28,431,063 20,669,539 3,228,353 --
Net change in unrealized appreciation
of investments .......................... 32,860,229 60,002,475 37,812,996 3,704,658 26,560
------------ ------------ ------------ ------------ -----------
Net realized and unrealized
gain/(loss) on investments .............. 49,293,451 102,330,823 76,025,583 6,732,534 (234,499)
------------ ------------ ------------ ------------ -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ......................... $ 48,344,303 $103,457,497 $ 81,897,686 $ 11,235,132 $ 269,271
============ ============ ============ ============ ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
STATEMENTS of CHANGES in NET assets
WM GROUP OF FUNDS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
<CAPTION>
STRATEGIC CONSERVATIVE FLEXIBLE
GROWTH GROWTH BALANCED INCOME INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Net investment income/(loss) .............. $ (949,148) $ 1,126,674 $ 5,872,103 $ 4,502,598 $ 503,770
Net realized gain/(loss) on investment
transactions ............................ 1,479,067 13,897,285 17,543,048 (200,477) (261,059)
Capital gain distribution received ........ 14,954,155 28,431,063 20,669,539 3,228,353 --
Net change in unrealized appreciation of
investments ............................. 32,860,229 60,002,475 37,812,996 3,704,658 26,560
------------ ------------ ------------ ------------ -----------
Net increase in net assets resulting from
operations .............................. 48,344,303 103,457,497 81,897,686 11,235,132 269,271
Distributions to shareholders from:
Net investment income:
Class A Shares .......................... -- (876,806) (4,191,543) (3,672,059) (199,431)
Class B Shares .......................... -- (249,868) (1,885,819) (895,686) (310,347)
Distributions in excess of net investment
income:
Class A Shares .......................... (2,848,924) (7,134,925) (6,055,603) (1,353,976) --
Class B Shares .......................... (5,086,507) (8,637,411) (5,234,611) (420,234) --
Net realized gain on investments:
Class A Shares .......................... -- -- -- (531,697) (8,251)
Class B Shares .......................... -- -- -- (146,967) (14,593)
Net increase/(decrease) in net assets from
Fund share transactions:
Class A Shares .......................... 30,980,298 33,479,084 12,487,768 (44,659,320) (1,150,429)
Class B Shares .......................... 106,677,916 142,767,261 132,128,255 13,057,121 (1,881,975)
------------ ------------ ------------ ------------ -----------
Net increase/(decrease) in net assets ..... 178,067,086 262,804,832 209,146,133 (27,387,686) (3,295,755)
NET ASSETS:
Beginning of period ....................... 205,200,210 513,560,482 571,077,620 241,225,200 20,739,516
------------ ------------ ------------ ------------ -----------
End of period ............................. $383,267,296 $776,365,314 $780,223,753 $213,837,514 $17,443,761
============ ============ ============ ============ ===========
Accumulated net investment loss/
(distributions in excess of net
investment income) at end of period ..... $ (8,884,578) $(15,772,336) $(11,290,214) $ (1,774,210) $ --
============ ============ ============ ============ ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
STATEMENTS of CHANGES in NET assets (continued)
WM GROUP OF FUNDS
FOR THE YEAR ENDED OCTOBER 31, 1999
<CAPTION>
STRATEGIC CONSERVATIVE FLEXIBLE
GROWTH GROWTH BALANCED INCOME INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Net investment income/(loss) .............. $ (937,568) $ 181,191 $ 4,335,214 $ 3,515,920 $ 958,403
Net realized gain/(loss) on investment
transactions ............................ 201,044 (30,780) 3,638,526 864,625 (18,781)
Capital gain distribution received ........ 3,004,756 9,527,211 5,459,522 116,398 12,184
Net change in unrealized appreciation/
(depreciation) of investments ........... 31,876,169 84,143,303 40,975,531 (4,468,412) (558,256)
------------ ------------ ------------ ------------ -----------
Net increase in net assets resulting
from operations ......................... 34,144,401 93,820,925 54,408,793 28,531 393,550
Distributions to shareholders from:
Net investment income:
Class A Shares .......................... (107,238) (1,038,646) (3,390,680) (2,705,301) (447,960)
Class B Shares .......................... (235,957) (1,236,501) (2,695,097) (910,233) (517,023)
Distributions in excess of net investment
income:
Class A Shares .......................... (592,113) (2,709,359) (1,357,621) (9,717) (5,133)
Class B Shares .......................... (1,269,569) (3,596,734) (1,271,937) (3,887) (7,053)
Net realized gains on investments:
Class A Shares .......................... (1,864,169) (8,005,825) (8,213,824) (373,109) (11,412)
Class B Shares .......................... (5,092,714) (13,002,709) (11,040,671) (573,961) (10,095)
Net increase/(decrease) in net assets from
Fund share transactions:
Class A Shares .......................... 48,320,715 125,283,751 229,975,091 189,252,311 (73,395)
Class B Shares .......................... 60,455,368 68,957,442 110,546,761 35,612,391 8,108,750
------------ ------------ ------------ ------------ -----------
Net increase in net assets ................ 133,758,724 258,472,344 366,960,815 220,317,025 7,430,229
NET ASSETS:
Beginning of year ......................... 71,441,486 255,088,138 204,116,805 20,908,175 13,309,287
------------ ------------ ------------ ------------ -----------
End of year ............................... $205,200,210 $513,560,482 $571,077,620 $241,225,200 $20,739,516
============ ============ ============ ============ ===========
Undistributed net investment income at
end of year ............................. $ 1 $ -- $ 205,259 $ 65,147 $ 6,008
============ ============ ============ ============ ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
[This page intentionally left blank]
<PAGE>
<TABLE>
STATEMENTS of CHANGES in NET assets -- CAPITAL stock ACTIVITY
WM GROUP OF FUNDS
<CAPTION>
STRATEGIC GROWTH PORTFOLIO CONSERVATIVE GROWTH PORTFOLIO
----------------------------------- -----------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
04/30/00 YEAR ENDED 04/30/00 YEAR ENDED
(UNAUDITED) 10/31/99 (UNAUDITED) 10/31/99
----------- -------- ----------- --------
<S> <C> <C> <C> <C>
AMOUNT
CLASS A:
Sold ................................... $ 47,294,034 $ 98,311,574 $ 55,563,644 $ 36,408,180
Contribution in-kind (Note 1) .......... -- 32,378,262 -- 114,020,652
Issued as reinvestment of dividends .... 2,834,731 2,539,601 7,912,089 11,559,002
Redeemed ............................... (19,148,467) (84,908,722) (29,996,649) (36,704,083)
------------ ------------ ------------ ------------
Net increase/(decrease) ................ $ 30,980,298 $ 48,320,715 $ 33,479,084 $125,283,751
============ ============ ============ ============
CLASS B:
Sold ................................... $116,943,811 $181,187,449 $161,418,270 $ 94,691,081
Issued as reinvestment of dividends .... 4,982,680 6,458,074 8,706,009 17,500,095
Redeemed ............................... (15,248,575) (127,190,155) (27,357,018) (43,233,734)
------------ ------------ ------------ ------------
Net increase/(decrease) ................ $106,677,916 $ 60,455,368 $142,767,261 $ 68,957,442
============ ============ ============ ============
SHARES
CLASS A:
Sold ................................... 2,799,113 6,888,775 3,636,538 2,909,519
Contribution in-kind (Note 1) .......... -- 2,214,655 -- 8,509,004
Issued as reinvestment of dividends .... 171,802 205,455 529,945 1,017,836
Redeemed ............................... (1,125,674) (5,885,943) (1,988,112) (2,959,104)
------------ ------------ ------------ ------------
Net increase/(decrease) ................ 1,845,241 3,422,942 2,178,371 9,477,255
============ ============ ============ ============
CLASS B:
Sold ................................... 6,992,219 12,957,573 10,738,727 7,693,451
Issued as reinvestment of dividends .... 306,626 525,313 593,052 1,547,745
Redeemed ............................... (919,608) (8,911,255) (1,824,849) (3,566,510)
------------ ------------ ------------ ------------
Net increase/(decrease) ................ 6,379,237 4,571,631 9,506,930 5,674,686
============ ============ ============ ============
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
BALANCED PORTFOLIO FLEXIBLE INCOME PORTFOLIO INCOME PORTFOLIO
------------------------------------ -------------------------------- -------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
04/30/00 YEAR ENDED 04/30/00 YEAR ENDED 04/30/00 YEAR ENDED
(UNAUDITED) 10/31/99 (UNAUDITED) 10/31/99 (UNAUDITED) 10/31/99
------------- ------------- ------------ ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
$ 56,065,806 $ 44,514,028 $ 4,015,333 $ 8,898,276 $ 494,423 $ 3,483,186
-- 221,368,654 -- 213,729,146 -- --
10,050,863 12,792,803 5,367,140 2,987,879 121,957 238,112
(53,628,901) (48,700,394) (54,041,793) (36,362,990) (1,766,809) (3,794,693)
------------ ------------ ------------ ------------ ----------- -----------
$ 12,487,768 $229,975,091 $(44,659,320) $189,252,311 $(1,150,429) $ (73,395)
============ ============ ============ ============ =========== ===========
$153,319,983 $137,812,380 $ 20,380,687 $ 44,201,324 $ 3,193,737 $12,710,412
6,976,195 14,729,178 1,368,597 1,391,288 269,105 424,051
(28,167,923) (41,994,797) (8,692,163) (9,980,221) (5,344,817) (5,025,713)
------------ ------------ ------------ ------------ ----------- -----------
$132,128,255 $110,546,761 $ 13,057,121 $ 35,612,391 $(1,881,975) $ 8,108,750
============ ============ ============ ============ =========== ===========
4,225,265 3,776,656 371,949 822,244 49,628 344,897
-- 18,056,171 -- 19,483,058 -- --
753,422 1,130,113 492,318 279,908 12,375 23,554
(4,049,647) (4,141,436) (4,966,376) (3,411,942) (179,166) (376,831)
-- -- -- -- -- --
929,040 18,821,504 (4,102,109) 17,173,268 (117,163) (8,380)
============ ============ ============ ============ =========== ===========
11,538,255 11,686,498 1,871,215 4,103,474 323,129 1,252,218
523,146 1,296,525 125,482 129,523 27,292 42,095
(2,120,963) (3,575,735) (798,464) (924,028) (542,301) (497,805)
------------ ------------ ------------ ------------ ----------- -----------
9,940,438 9,407,288 1,198,233 3,308,969 (191,880) 796,508
============ ============ ============ ============ =========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
FINANCIAL highlights
STRATEGIC GROWTH PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------------------- ----------------------------------------------------------
NET REALIZED DISTRIBUTIONS
NET AND DIVIDENDS IN EXCESS DISTRIBUTIONS
ASSET VALUE, NET UNREALIZED TOTAL FROM FROM NET OF NET FROM
BEGINNING INVESTMENT GAIN/(LOSS) INVESTMENT INVESTMENT INVESTMENT NET REALIZED TOTAL
OF PERIOD INCOME/(LOSS) ON INVESTMENTS OPERATIONS INCOME INCOME CAPITAL GAINS DISTRIBUTIONS
----------- ------------ ------------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
04/30/00
(unaudited) $14.61 $(0.01)++ $ 3.25 $ 3.24 $ -- $(0.53) $ -- $(0.53)
10/31/99 11.67 (0.03)++ 4.36 4.33 (0.22) (0.19) (0.98) (1.39)
10/31/98(c) 12.66 (0.02)++ (0.97) (0.99) -- -- -- --
06/30/98 11.26 0.00#++ 2.12 2.12 -- (0.68) (0.04) (0.72)
06/30/97* 10.00 (0.02)++ 1.90 1.88 -- (0.62) (0.00)# (0.62)
CLASS B
04/30/00
(unaudited) 14.40 (0.07)++ 3.20 3.13 -- (0.51) -- (0.51)
10/31/99 11.52 (0.13)++ 4.31 4.18 (0.13) (0.19) (0.98) (1.30)
10/31/98(c) 12.53 (0.05)++ (0.96) (1.01) -- -- -- --
06/30/98 11.19 (0.09)++ 2.11 2.02 -- (0.64) (0.04) (0.68)
06/30/97* 10.00 (0.10)++ 1.90 1.80 -- (0.61) (0.00)# (0.61)
----------------
* The Portfolio's Class A and Class B shares commenced operations on July 25, 1996.
** Annualized.
# Amount represents less than $0.01 per share.
+ Total return is not annualized for periods less than one year and does not reflect any applicable sales charges. The total
return would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor or if fees
had not been reduced by credits allowed by the custodian.
++ Per share numbers have been calculated using the average shares method.
(a) The Portfolio also will indirectly bear its prorated share of expenses of the Underlying Funds.
(b) Ratio of operating expenses to average net assets includes expenses paid indirectly.
(c) Fiscal year end changed to October 31 from June 30.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------
RATIO OF OPERATING
EXPENSES TO AVERAGE
NET ASSETS
WITHOUT FEE
RATIO OF WAIVERS, EXPENSES
RATIO OF NET INVESTMENT REIMBURSED AND/OR
OPERATING INCOME/(LOSS) FEES REDUCED
NET NET ASSETS, EXPENSES TO TO PORTFOLIO BY CREDITS
ASSET VALUE, TOTAL END OF PERIOD AVERAGE NET AVERAGE NET TURNOVER ALLOWED BY
END OF PERIOD RETURN+ (IN 000'S) ASSETS(a)(b) ASSETS RATE THE CUSTODIAN(a)
------------ ---------- ----------- ----------- ----------- -------- ----------------
<S> <C> <C> <C> <C> <C> <C>
$17.32 22.33 % $120,484 1.07%** (0.14)%** 61% 1.07%**
14.61 39.55 % 74,678 1.07% (0.21)% 20% 1.09%
11.67 (7.82)% 19,690 0.95%** (0.53)%** 10% 1.13%**
12.66 20.11 % 18,330 0.94% 0.01 % 23% 1.08%
11.26 19.33 % 14,253 0.90%** (0.19)%** 33% 1.45%**
17.02 21.88 % 262,783 1.82%** (0.89)%** 61% 1.82%**
14.40 38.60 % 130,522 1.83% (0.97)% 20% 1.85%
11.52 (8.06)% 51,752 1.70%** (1.28)%** 10% 1.88%**
12.53 19.24 % 51,173 1.68% (0.74)% 23% 1.83%
11.19 18.48 % 35,802 1.65%** (0.94)%** 33% 2.20%**
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
FINANCIAL highlights
CONSERVATIVE GROWTH PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
----------------------------------------- -----------------------------------------------------------
NET REALIZED DISTRIBUTIONS
NET AND DIVIDENDS IN EXCESS DISTRIBUTIONS
ASSET VALUE, NET UNREALIZED TOTAL FROM FROM NET OF NET FROM
BEGINNING INVESTMENT GAIN/(LOSS) INVESTMENT INVESTMENT INVESTMENT NET REALIZED TOTAL
OF PERIOD INCOME/(LOSS) ON INVESTMENTS OPERATIONS INCOME INCOME CAPITAL GAINS DISTRIBUTIONS
----------- ------------ ------------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
04/30/00
(unaudited) $13.43 $ 0.06 $ 2.56 $ 2.62 $(0.07) $(0.36) $ -- $(0.43)
10/31/99 10.97 0.06++ 3.70 3.76 (0.20) (0.22) (0.88) (1.30)
10/31/98(c) 11.84 0.01 (0.88) (0.87) -- -- -- --
06/30/98 10.86 0.13++ 1.42 1.55 (0.09) (0.42) (0.06) (0.57)
06/30/97* 10.00 0.08++ 1.32 1.40 (0.08) (0.46) -- (0.54)
CLASS B
04/30/00
(unaudited) 13.21 0.00# 2.53 2.53 (0.05) (0.36) -- (0.41)
10/31/99 10.85 (0.03)++ 3.61 3.58 (0.13) (0.21) (0.88) (1.22)
10/31/98(c) 11.74 (0.03) (0.86) (0.89) -- -- -- --
06/30/98 10.80 0.04++ 1.43 1.47 (0.08) (0.39) (0.06) (0.53)
06/30/97* 10.00 0.01++ 1.31 1.32 (0.01) (0.51) -- (0.52)
----------------
* The Portfolio's Class A and Class B shares commenced operations on July 25, 1996.
** Annualized.
# Amount represents less than $0.01 per share.
+ Total return is not annualized for periods less than one year and does not reflect any applicable sales charges. The total
return would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor or if fees
had not been reduced by credits allowed by the custodian.
++ Per share numbers have been calculated using the average shares method.
(a) The Portfolio also will indirectly bear its prorated share of expenses of the Underlying Funds.
(b) Ratio of operating expenses to average net assets includes expenses paid indirectly.
(c) Fiscal year end changed to October 31 from June 30.
</TABLE>
See Notes to Financial Statements.
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------
RATIO OF OPERATING
EXPENSES TO AVERAGE
NET ASSETS
WITHOUT FEE
RATIO OF WAIVERS, EXPENSES
RATIO OF NET INVESTMENT REIMBURSED AND/OR
OPERATING INCOME/(LOSS) FEES REDUCED
NET NET ASSETS, EXPENSES TO TO PORTFOLIO BY CREDITS
ASSET VALUE, TOTAL END OF PERIOD AVERAGE NET AVERAGE NET TURNOVER ALLOWED BY
END OF PERIOD RETURN+ (IN 000'S) ASSETS(a)(b) ASSETS RATE THE CUSTODIAN(a)
------------ ---------- ----------- ----------- ----------- -------- ----------------
<S> <C> <C> <C> <C> <C> <C>
$15.62 19.66 % $324,494 1.03%** 0.76 %** 20% 1.03%**
13.43 36.54 % 249,650 1.02% 0.48 % 16% 1.03%
10.97 (7.35)% 100,024 0.95%** 0.05 %** 9% 1.03%**
11.84 15.18 % 114,946 0.95% 1.17 % 28% 1.00%
10.86 14.39 % 136,141 0.92%** 0.81 %** 20% 1.17%**
15.33 19.31 % 451,871 1.78%** 0.01 %** 20% 1.78%**
13.21 34.98 % 263,911 1.77% (0.27)% 16% 1.78%
10.85 (7.58)% 155,064 1.70%** (0.70)%** 9% 1.78%**
11.74 14.44 % 169,269 1.70% 0.40 % 28% 1.74%
10.80 13.59 % 158,697 1.67%** 0.06 %** 20% 1.92%**
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
FINANCIAL highlights
BALANCED PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------------------ ----------------------------------------------------------
NET REALIZED DISTRIBUTIONS
NET AND DIVIDENDS IN EXCESS DISTRIBUTIONS
ASSET VALUE, NET UNREALIZED TOTAL FROM FROM NET OF NET FROM
BEGINNING INVESTMENT GAIN/(LOSS) INVESTMENT INVESTMENT INVESTMENT NET REALIZED TOTAL
OF PERIOD INCOME ON INVESTMENTS OPERATIONS INCOME INCOME CAPITAL GAINS DISTRIBUTIONS
----------- ------------ ------------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
04/30/00
(unaudited) $12.22 $0.14++ $ 1.54 $ 1.68 $(0.13) $(0.22) $ -- $(0.35)
10/31/99 11.02 0.19++ 2.39 2.58 (0.35) (0.09) (0.94) (1.38)
10/31/98(c) 11.63 0.05 (0.61) (0.56) (0.05) -- -- (0.05)
06/30/98 10.95 0.22 1.25 1.47 (0.23) (0.45) (0.11) (0.79)
06/30/97* 10.00 0.20++ 1.27 1.47 (0.20) (0.32) (0.00)# (0.52)
CLASS B
04/30/00
(unaudited) 12.21 0.08++ 1.57 1.65 (0.11) (0.22) -- (0.33)
10/31/99 11.02 0.11++ 2.38 2.49 (0.27) (0.09) (0.94) (1.30)
10/31/98(c) 11.63 0.02 (0.61) (0.59) (0.02) -- -- (0.02)
06/30/98 10.95 0.17 1.22 1.39 (0.20) (0.40) (0.11) (0.71)
06/30/97* 10.00 0.14++ 1.25 1.39 (0.14) (0.30) (0.00)# (0.44)
----------------
* The Portfolio's Class A and Class B shares commenced operations on July 25, 1996.
** Annualized.
# Amount represents less than $0.01 per share.
+ Total return is not annualized for periods less than one year and does not reflect any applicable sales charges.
The total return would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor
or if fees had not been reduced by credits allowed by the custodian.
++ Per share numbers have been calculated using the average shares method.
(a) The Portfolio also will indirectly bear its prorated share of expenses of the Underlying Funds.
(b) Ratio of operating expenses to average net assets includes expenses paid indirectly.
(c) Fiscal year end changed to October 31 from June 30.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------
RATIO OF OPERATING
EXPENSES TO AVERAGE
NET ASSETS
WITHOUT FEE
RATIO OF WAIVERS, EXPENSES
RATIO OF NET INVESTMENT REIMBURSED AND/OR
OPERATING INCOME FEES REDUCED
NET NET ASSETS, EXPENSES TO TO PORTFOLIO BY CREDITS
ASSET VALUE, TOTAL END OF PERIOD AVERAGE NET AVERAGE NET TURNOVER ALLOWED BY
END OF PERIOD RETURN+ (IN 000'S) ASSETS(a)(b) ASSETS RATE THE CUSTODIAN(a)
------------ ---------- ----------- ----------- ------------- ---------- -----------------
<S> <C> <C> <C> <C> <C> <C>
$13.55 14.02 % $382,483 1.05%** 2.07%** 23% 1.05%**
12.22 25.16 % 333,639 1.03% 1.66% 39% 1.04%
11.02 (4.85)% 93,491 0.95%** 1.22%** 3% 1.02%**
11.63 14.32 % 101,726 0.95% 2.14% 29% 1.00%
10.95 15.02 % 109,421 0.92%** 2.48%** 46% 1.17%**
13.53 13.52 % 397,740 1.79%** 1.33%** 23% 1.79%**
12.21 24.22 % 237,438 1.77% 0.92% 39% 1.78%
11.02 (5.09)% 110,626 1.70%** 0.47%** 3% 1.77%**
11.63 13.47 % 114,944 1.70% 1.39% 29% 1.75%
10.95 14.23 % 99,821 1.67%** 1.73%** 46% 1.92%**
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
FINANCIAL highlights
FLEXIBLE INCOME PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
----------------------------------------- -----------------------------------------------------------
NET REALIZED DISTRIBUTIONS
NET AND DIVIDENDS IN EXCESS DISTRIBUTIONS
ASSET VALUE, NET UNREALIZED TOTAL FROM FROM NET OF NET FROM
BEGINNING INVESTMENT GAIN/(LOSS) INVESTMENT INVESTMENT INVESTMENT NET REALIZED TOTAL
OF PERIOD INCOME ON INVESTMENTS OPERATIONS INCOME INCOME CAPITAL GAINS DISTRIBUTIONS
----------- ------------ ------------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
04/30/00
(unaudited) $10.75 $ 0.21 $ 0.32 $ 0.53 $(0.23) $(0.08) $ (0.03) $(0.34)
10/31/99 10.63 0.40++ 0.57## 0.97 (0.48) (0.00)# (0.37) (0.85)
10/31/98(c) 10.79 0.12 (0.15) (0.03) (0.13) -- -- (0.13)
06/30/98 10.57 0.45 0.67 1.12 (0.45) (0.21) (0.24) (0.90)
06/30/97* 10.00 0.43++ 0.70 1.13 (0.43) (0.13) (0.00)# (0.56)
CLASS B
04/30/00
(unaudited) 10.75 0.20 0.29 0.49 (0.19) (0.08) (0.03) (0.30)
10/31/99 10.63 0.33++ 0.56## 0.89 (0.40) (0.00)# (0.37) (0.77)
10/31/98(c) 10.79 0.10 (0.16) (0.06) (0.10) -- -- (0.10)
06/30/98 10.57 0.31 0.73 1.04 (0.37) (0.21) (0.24) (0.82)
06/30/97* 10.00 0.38++ 0.68 1.06 (0.38) (0.11) (0.00)# (0.49)
----------------
* The Portfolio's Class A and Class B shares commenced operations on July 25, 1996.
** Annualized.
# Amount represents less than $0.01 per share.
## The amount shown may not accord with the change in the aggregate gains and losses of portfolio securities due to the timing of
sales and redemptions of Portfolio shares.
+ Total return is not annualized for periods less than one year and does not reflect any applicable sales charges. The total
return would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor or if fees
had not been reduced by credits allowed by the custodian.
++ Per share numbers have been calculated using the average shares method.
(a) The Portfolio also will indirectly bear its prorated share of expenses of the Underlying Funds.
(b) Ratio of operating expenses to average net assets includes expenses paid indirectly.
(c) Fiscal year end changed to October 31 from June 30.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------
RATIO OF OPERATING
EXPENSES TO AVERAGE
NET ASSETS
WITHOUT FEE
RATIO OF WAIVERS, EXPENSES
RATIO OF NET INVESTMENT REIMBURSED AND/OR
OPERATING INCOME FEES REDUCED
NET NET ASSETS, EXPENSES TO TO PORTFOLIO BY CREDITS
ASSET VALUE, TOTAL END OF PERIOD AVERAGE NET AVERAGE NET TURNOVER ALLOWED BY
END OF PERIOD RETURN+ (IN 000'S) ASSETS(a)(b) ASSETS RATE THE CUSTODIAN(a)
------------ ---------- ----------- ----------- ----------- -------- ----------------
<S> <C> <C> <C> <C> <C> <C>
$10.94 5.07 % $153,057 1.07%** 4.14%** 21% 1.08%**
10.75 9.39 % 194,404 1.00% 3.86% 31% 1.06%
10.63 (0.26)% 9,766 0.95%** 3.62%** 15% 1.37%**
10.79 11.07 % 8,808 0.95% 4.07% 24% 1.23%
10.57 11.58 % 12,613 0.92%** 4.95%** 54% 1.67%**
10.94 4.69 % 60,781 1.80%** 3.41%** 21% 1.81%**
10.75 8.60 % 46,821 1.75% 3.11% 31% 1.81%
10.63 (0.51)% 11,142 1.70%** 2.87%** 15% 2.12%**
10.79 10.24 % 7,684 1.70% 3.32% 24% 1.98%
10.57 10.80 % 7,385 1.67%** 4.20%** 54% 2.42%**
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
FINANCIAL highlights
INCOME PORTFOLIO
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD.
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
----------------------------------------- -----------------------------------------------------------
NET REALIZED DISTRIBUTIONS
NET AND DIVIDENDS IN EXCESS DISTRIBUTIONS
ASSET VALUE, NET UNREALIZED TOTAL FROM FROM NET OF NET FROM
BEGINNING INVESTMENT GAIN/(LOSS) INVESTMENT INVESTMENT INVESTMENT NET REALIZED TOTAL
OF PERIOD INCOME ON INVESTMENTS OPERATIONS INCOME INCOME CAPITAL GAINS DISTRIBUTIONS
----------- ------------ ------------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
04/30/00
(unaudited) $9.94 $ 0.29 $(0.12) $ 0.17 $(0.29) $ -- $ (0.01) $(0.30)
10/31/99 10.25 0.56 (0.27) 0.29 (0.57) (0.01) (0.02) (0.60)
10/31/98(c) 10.34 0.19 (0.09) 0.10 (0.19) -- -- (0.19)
06/30/98 10.13 0.64 0.22 0.86 (0.65) (0.00)# -- (0.65)
06/30/97* 10.00 0.58++ 0.14## 0.72 (0.58) (0.01) (0.00)# (0.59)
CLASS B
04/30/00
(unaudited) 9.94 0.25 (0.12) 0.13 (0.25) -- (0.01) (0.26)
10/31/99 10.25 0.50 (0.29) 0.21 (0.49) (0.01) (0.02) (0.52)
10/31/98(c) 10.34 0.16 (0.09) 0.07 (0.16) -- -- (0.16)
06/30/98 10.13 0.56 0.22 0.78 (0.57) (0.00)# -- (0.57)
06/30/97* 10.00 0.51++ 0.14## 0.65 (0.51) (0.01) (0.00)# (0.52)
----------------
* The Portfolio's Class A and Class B shares commenced operations on July 25, 1996.
** Annualized.
# Amount represents less than $0.01 per share.
## The amount shown may not accord with the change in the aggregate gains and losses of portfolio securities due to timing of
sales and redemptions of Portfolio shares.
+ Total return is not annualized for periods less than one year and does not reflect any applicable sales charges. The total
return would have been lower if certain fees had not been waived and expenses reimbursed by the investment advisor or if fees
had not been reduced by credits allowed by the custodian.
++ Per share numbers have been calculated using the average shares method.
(a) The Portfolio also will indirectly bear its prorated share of expenses of the Underlying Funds.
(b) Ratio of operating expenses to average net assets includes expenses paid indirectly.
(c) Fiscal year end changed to October 31 from June 30.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
----------------------------------------------------------------------------------------
RATIO OF OPERATING
EXPENSES TO AVERAGE
NET ASSETS
WITHOUT FEE
RATIO OF WAIVERS, EXPENSES
RATIO OF NET INVESTMENT REIMBURSED AND/OR
OPERATING INCOME FEES REDUCED
NET NET ASSETS, EXPENSES TO TO PORTFOLIO BY CREDITS
ASSET VALUE, TOTAL END OF PERIOD AVERAGE NET AVERAGE NET TURNOVER ALLOWED BY
END OF PERIOD RETURN+ (IN 000'S) ASSETS(a)(b) ASSETS RATE THE CUSTODIAN(a)
------------ ---------- ----------- ----------- ------------- ---------- ----------------
<S> <C> <C> <C> <C> <C> <C>
$ 9.81 1.72% $ 6,055 1.14%** 5.81%** 17% 1.31%**
9.94 2.89% 7,297 1.00% 5.57% 51% 1.24%
10.25 0.96% 7,611 0.95%** 5.40%** 22% 1.53%**
10.34 8.71% 7,793 0.95% 6.23% 14% 1.25%
10.13 7.38% 13,410 0.93%** 6.09%** 56% 1.65%**
9.81 1.36% 11,389 1.87%** 5.08%** 17% 2.04%**
9.94 2.05% 13,443 1.74% 4.83% 51% 1.98%
10.25 0.70% 5,698 1.70%** 4.65%** 22% 2.28%**
10.34 7.90% 4,084 1.70% 5.48% 14% 2.01%
10.13 6.63% 4,537 1.68%** 5.34%** 56% 2.40%**
</TABLE>
See Notes to Financial Statements.
<PAGE>
PORTFOLIO of INVESTMENTS
STRATEGIC GROWTH PORTFOLIO
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
------ -----
INVESTMENT COMPANY SECURITIES - 99.0%
3,199,942 WM Growth Fund .................................... $118,109,856
659,782 WM Growth Fund of the Northwest ................... 23,877,519
4,970,709 WM Growth & Income Fund ........................... 129,238,441
2,084,810 WM High Yield Fund ................................ 18,846,685
2,836,440 WM International Growth Fund ...................... 36,760,253
2,567,541 WM Mid Cap Stock Fund ............................. 28,936,182
179,464 WM Money Market Fund .............................. 179,464
918,785 WM Small Cap Stock Fund ........................... 23,576,026
------------
Total Investment Company Securities
(Cost $315,235,834) ............................. 379,524,426
------------
PRINCIPAL
AMOUNT
--------
REPURCHASE AGREEMENT - 0.7%
(Cost $2,756,000)
$ 2,756,000 Agreement with Boston Safe Deposit & Trust Company,
4.150% dated 04/28/2000, to be repurchased at
$2,756,953 on 05/01/2000 collateralized by
$3,292,810 Federal Home Loan Mortgage Corporation,
6.000% due 01/01/2019 (Market Value $2,980,074) 2,756,000
------------
TOTAL INVESTMENTS (COST $317,991,834*) .............. 99.7% 382,280,426
OTHER ASSETS AND LIABILITIES (NET) .................. 0.3 986,870
----- ------------
NET ASSETS .......................................... 100.0% $383,267,296
===== ============
----------------
* Aggregate cost for federal tax purposes.
See Notes to Financial Statements.
<PAGE>
PORTFOLIO of INVESTMENTS
CONSERVATIVE GROWTH PORTFOLIO
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
------ -----
INVESTMENT COMPANY SECURITIES - 99.2%
5,217,000 WM Growth Fund .................................... $192,559,469
1,070,265 WM Growth Fund of the Northwest ................... 38,732,897
9,591,561 WM Growth & Income Fund ........................... 249,380,581
4,157,859 WM High Yield Fund ................................ 37,587,049
7,593,732 WM Income Fund .................................... 67,280,468
5,242,544 WM International Growth Fund ...................... 67,943,366
4,561,052 WM Mid Cap Stock Fund ............................. 51,403,052
205,289 WM Money Market Fund .............................. 205,289
55,241 WM Short Term Income Fund ......................... 124,845
1,082,223 WM Small Cap Stock Fund ........................... 27,769,848
3,648,887 WM U.S. Government Securities Fund ................ 37,620,026
------------
Total Investment Company Securities
(Cost $629,558,523) ............................. 770,606,890
------------
PRINCIPAL
AMOUNT
--------
REPURCHASE AGREEMENT - 0.5%
(Cost $3,632,000)
$ 3,632,000 Agreement with Boston Safe Deposit & Trust Company,
4.150% dated 04/28/2000, to be repurchased at
$3,633,256, on 05/01/2000 collateralized by
$4,339,436 Federal Home Loan Mortgage Corporation,
6.000% due 01/01/2019 (Market Value $3,927,296) . 3,632,000
------------
TOTAL INVESTMENTS (COST $633,190,523*) .............. 99.7% 774,238,890
OTHER ASSETS AND LIABILITIES (NET) .................. 0.3 2,126,424
----- ------------
NET ASSETS .......................................... 100.0% $776,365,314
===== ============
-------------
* Aggregate cost for federal tax purposes.
See Notes to Financial Statements.
<PAGE>
PORTFOLIO of INVESTMENTS
BALANCED PORTFOLIO
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
------ -----
INVESTMENT COMPANY SECURITIES - 99.1%
3,111,603 WM Growth Fund .................................... $114,849,249
825,685 WM Growth Fund of the Northwest ................... 29,881,545
8,036,180 WM Growth & Income Fund ........................... 208,940,681
3,768,912 WM High Yield Fund ................................ 34,070,961
10,242,569 WM Income Fund .................................... 90,749,159
4,037,254 WM International Growth Fund ...................... 52,322,812
3,747,141 WM Mid Cap Stock Fund ............................. 42,230,284
179,008 WM Money Market Fund .............................. 179,008
27,518,851 WM Short Term Income Fund ......................... 62,192,604
884,314 WM Small Cap Stock Fund ........................... 22,691,510
11,160,007 WM U.S. Government Securities Fund ................ 115,059,672
------------
Total Investment Company Securities
(Cost $695,575,204) ............................. 773,167,485
------------
PRINCIPAL
AMOUNT
--------
REPURCHASE AGREEMENT - 0.4%
(Cost $3,449,000)
$ 3,449,000 Agreement with Boston Safe Deposit & Trust Company,
4.150% dated 04/30/2000, to be repurchased at
$3,450,193 on 05/01/2000 collateralized by
$4,120,791 Federal Home Loan Mortgage Corporation,
6.000% due 01/01/2019 (Market Value $3,729,417) . 3,449,000
------------
TOTAL INVESTMENTS (COST $699,024,204*) .............. 99.5% 776,616,485
OTHER ASSETS AND LIABILITIES (NET) .................. 0.5 3,607,268
----- ------------
NET ASSETS .......................................... 100.0% $780,223,753
===== ============
----------------
* Aggregate cost for federal tax purposes.
See Notes to Financial Statements.
<PAGE>
PORTFOLIO of INVESTMENTS
FLEXIBLE INCOME PORTFOLIO
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
------ -----
INVESTMENT COMPANY SECURITIES - 99.0%
260,723 WM Growth Fund .................................... $ 9,623,276
83,867 WM Growth Fund of the Northwest ................... 3,035,138
1,233,207 WM Growth & Income Fund ........................... 32,063,394
1,483,313 WM High Yield Fund ................................ 13,409,145
7,104,840 WM Income Fund .................................... 62,948,887
433,480 WM Mid Cap Stock Fund ............................. 4,885,320
104,330 WM Money Market Fund .............................. 104,330
13,531,045 WM Short Term Income Fund ......................... 30,580,161
99,020 WM Small Cap Stock Fund ........................... 2,540,854
5,101,544 WM U.S. Government Securities Fund ................ 52,596,920
------------
Total Investment Company Securities
(Cost $212,530,763) ............................. 211,787,425
------------
PRINCIPAL
AMOUNT
--------
REPURCHASE AGREEMENT - 0.9%
(Cost $1,762,000)
$ 1,762,000 Agreement with Boston Safe Deposit & Trust Company,
4.150% dated 04/28/2000, to be repurchased at
$1,762,609, on 05/01/2000 collateralized by
$2,105,200 Federal Home Loan Mortgage Corporation,
6.000% due 01/01/2019 (Market Value $1,905,257) . 1,762,000
------------
TOTAL INVESTMENTS (COST $214,292,763*) .............. 99.9% 213,549,425
OTHER ASSETS AND LIABILITIES (NET) .................. 0.1 288,089
----- ------------
NET ASSETS .......................................... 100.0% $213,837,514
===== ============
------------
* Aggregate cost for federal tax purposes.
See Notes to Financial Statements.
<PAGE>
PORTFOLIO of INVESTMENTS
INCOME PORTFOLIO
APRIL 30, 2000 (UNAUDITED)
SHARES VALUE
------ -----
INVESTMENT COMPANY SECURITIES - 98.0%
213,031 WM High Yield Fund ................................ $ 1,925,796
577,457 WM Income Fund .................................... 5,116,272
1,200,414 WM Money Market Fund .............................. 1,200,414
1,511,615 WM Short Term Income Fund ......................... 3,416,249
527,013 WM U.S. Government Securities Fund ................ 5,433,507
------------
Total Investment Company Securities
(Cost $17,453,762) .............................. 17,092,238
------------
PRINCIPAL
AMOUNT
--------
REPURCHASE AGREEMENT - 2.2%
(Cost $384,000)
$ 384,000 Agreement with Boston Safe Deposit & Trust Company,
4.150% dated 04/28/2000, to be repurchased at
$384,133 on 05/01/2000 collateralized by
$458,795 Federal Home Loan Mortgage Corporation,
6.000% due 01/01/2019 (Market Value $415,221) ... 384,000
------------
TOTAL INVESTMENTS (COST $17,837,762*) ............... 100.2% 17,476,238
OTHER ASSETS AND LIABILITIES (NET) .................. (0.2) (32,477)
----- ------------
NET ASSETS .......................................... 100.0% $ 17,443,761
===== ============
----------------
* Aggregate cost for federal tax purposes.
See Notes to Financial Statements.
<PAGE>
NOTES to FINANCIAL statements (unaudited)
WM STRATEGIC ASSETS MANAGEMENT PORTFOLIO
1. ORGANIZATION AND BUSINESS
WM Strategic Asset Management Portfolios, LLC (the "LLC") was organized under
the laws of the Commonwealth of Massachusetts on March 12, 1999 as a business
entity commonly known as a "Limited Liability Company." The LLC is registered
under the Investment Company Act of 1940, as amended (the "1940 Act"), as an
open-end management investment company. The LLC offers five portfolios; the
Strategic Growth and the Conservative Growth Portfolios (the "Equity
Portfolios"), and the Balanced, the Flexible Income and the Income Portfolios
(the "Fixed Income Portfolios") (each a "Portfolio" and collectively, the
"Portfolios"). Also, on July 16, 1999, the Griffin Portfolio Builder Accounts
(asset allocation accounts that were invested in certain Funds in the WM Group
of Funds) contributed all of their assets in kind to the LLC in a tax-free
exchange for shares of Portfolios with similar objectives. Each of the
Portfolios offers two classes of shares: Class A shares and Class B shares.
Class A shares are subject to an initial sales charge at the time of purchase.
Certain Class A shares purchased without an initial sales charge may be
subject to a contingent deferred sales charge ("CDSC") if redeemed within two
years of purchase. Class B shares are not subject to an initial sales charge.
Class B shares are subject to a CDSC if redeemed within five years from the
date of purchase.
Each of the Portfolios invests, within certain percentage ranges, in Class I
shares of certain funds in the WM Group of Funds (collectively, the
"Underlying Funds"). Each Portfolio typically allocates its assets, within
determined percentage ranges, among the Underlying Funds. The percentages
reflect the extent to which each Portfolio can invest in the particular market
segment represented by each Underlying Fund, and the varying degrees of
potential investment risk and reward represented by each Portfolio's
investments in those market segments and their corresponding Underlying Funds.
WM Advisors, Inc. (the "Advisor" or "WM Advisors"), a wholly-owned subsidiary
of Washington Mutual, Inc. ("Washington Mutual"), a publicly owned financial
services company, serves as investment advisor to the Portfolio. The Advisor
may alter these percentage ranges when it deems appropriate. The assets of
each Portfolio will be allocated among the Underlying Funds in accordance with
its investment objective based on the Advisor's outlook for the economy, the
financial markets and the relative market valuations of the Underlying Funds.
In addition, in order to meet liquidity needs or for temporary defensive
purposes, each Portfolio may invest its assets directly in cash, stock or bond
index futures, options, money market securities and certain short-term debt
instruments.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements.
Actual results could differ from those estimates. The following is a summary
of significant accounting policies consistently followed by the Portfolios in
the preparation of their financial statements.
PORTFOLIO VALUATION:
Investments in the Underlying Funds are valued at net asset value per Class I
share of the respective Underlying Funds determined as of the close of the New
York Stock Exchange on each valuation date. Short-term debt securities that
mature in 60 days or less at the time of purchase are valued at amortized
cost.
REPURCHASE AGREEMENTS:
Each Portfolio may engage in repurchase agreement transactions. A repurchase
agreement is a purchase of an underlying debt obligation subject to an
agreement by the seller to repurchase the obligation at an agreed upon price
and time. The value of the collateral is at all times at least equal to the
total amount of the repurchase obligation. In the event of counterparty
default, the Portfolio would seek to use the collateral to offset losses
incurred. There is potential loss in the event the Portfolio is delayed or
prevented from exercising its right to dispose of the collateral securities,
including the risk of a possible decline in the value of the underlying
securities during the period while the Portfolio seeks to assert its rights.
WM Advisors, acting under the supervision of the Board of Trustees, reviews
the value of the collateral and the creditworthiness of those banks and
dealers with whom each Portfolio enters into repurchase agreements.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME:
Securities transactions are recorded as of the trade date (the date the order
to buy or sell is executed). Realized gains and losses from securities sold
are recorded on the identified cost basis. Interest income is recorded on the
accrual basis and consists of interest accrued and, if applicable, discount
accreted less premiums amortized. Dividend income is recorded on the ex-
dividend date. Each Portfolio's investment income and realized and unrealized
gains and losses are allocated among the Portfolio's classes of shares based
upon the relative average net assets of each class.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income of the Balanced Portfolio, Flexible
Income Portfolio and Income Portfolio are declared daily and paid monthly.
Dividends from the net investment income of the Conservative Growth Portfolio
are declared and paid quarterly. Dividends from the net investment income of
the Strategic Growth Portfolio are declared and paid semi-annually.
Distributions of any net long-term capital gains earned by a Portfolio are
made annually. Distributions of any net short-term capital gains earned by a
Portfolio are distributed no less frequently than annually at the discretion
of the Board of Trustees. Additional distributions of net investment income
and capital gains for each Portfolio may be made at the discretion of the
Board of Trustees in order to avoid the application of a 4% non-deductible
excise tax on certain undistributed amounts of ordinary income and capital
gains. Income distributions and capital gain distributions are determined in
accordance with income tax regulations, which may differ from generally
accepted accounting principles. These differences are primarily due to
differing treatments of income and gains on various investment securities held
by the Portfolios, organizational costs, dividends payable, redesignated
distributions and differing characterization of distributions made by each
Portfolio as a whole.
FEDERAL INCOME TAXES:
It is each Portfolio's policy to qualify as a regulated investment company by
complying with the requirements of the Internal Revenue Code of 1986, as
amended, applicable to regulated investment companies and by, among other
things, distributing substantially all of its taxable and tax-exempt earnings
to its shareholders. Therefore, no Federal income tax provision is required.
EXPENSES:
General expenses of the LLC are allocated to all the Portfolios based upon the
relative net assets of each Portfolio except printing and postage expenses,
which are allocated to all the Portfolios based upon the relative number of
shareholder accounts of each Portfolio. In addition, the Portfolios will
indirectly bear their prorated share of expenses of the Underlying Funds.
Operating expenses directly attributable to a class of shares are charged to
the operations of that class of shares. Expenses of each Portfolio not
directly attributable to the operations of any class of shares are prorated
among the classes to which the expenses relate based on the relative average
net assets of each class of shares.
3. INVESTMENT ADVISORY AND OTHER TRANSACTIONS
WM Advisors serves as investment advisor to the LLC. As investment advisor to
the Portfolios, WM Advisors provides its proprietary asset allocation services
to the Portfolios, formulates the Portfolios' investment policies, analyzes
economic and market trends, exercises investment discretion over the assets of
the Portfolios and monitors the allocation of each Portfolio's assets and each
Portfolio's performance. For its investment advisory services to the
Portfolios, WM Advisors is entitled to a monthly fee, at an annual rate of
0.15% of each Portfolio's average daily net assets. WM Shareholder Services,
Inc., an indirect wholly-owned subsidiary of Washington Mutual, serves as
administrator to the Portfolios and is entitled to a monthly fee at an annual
rate of 0.50% of average daily net assets of each Portfolio.
The Advisor has agreed to waive a portion of its management fees and/or
reimburse expenses. Fees waived and/or expenses reimbursed by the Advisor for
the six months ended April 30, 2000 are as follows:
NAME OF PORTFOLIO FEES WAIVED EXPENSES REIMBURSED
----------------- ----------- -------------------
Flexible Income Portfolio ........... $11,453 $ --
Income Portfolio .................... 14,133 1,581
WM Shareholder Services, Inc. (the "Transfer Agent") serves as the transfer
and shareholder servicing agent of the Portfolios. Shareholder servicing fees
were paid to the Transfer Agent for services incidental to issuance and
transfer of shares, maintaining shareholder lists, and issuing and mailing
distributions and reports. The authorized monthly shareholder servicing fee is
$1.35 for both Class A and Class B shareholder accounts.
Custodian fees for certain Portfolios have been reduced by credits allowed by
the custodian for uninvested cash balances. These Portfolios could have
invested this cash in income producing investments. Fees reduced by credits
allowed by the custodian for the six months ended April 30, 2000 are shown
separately in the Statements of Operations.
4. TRUSTEES' FEES
No director, officer or employee of Washington Mutual or its subsidiaries
receives any compensation from the LLC for serving as an officer or Trustee of
the LLC. The LLC, together with other Trusts advised by WM Advisors, Inc.,
pays each Trustee who is not a director, officer or employee of Washington
Mutual or its subsidiaries, $18,000 per annum plus $3,000 per board meeting
attended in person and $1,000 per board meeting attended by telephone. The
Lead Trustee receives an additional $6,000 per annum. Trustees are also
reimbursed for travel and out-of-pocket expenses. The Chairman of each
committee receives an additional $500 per committee meeting attended.
Pursuant to an exemptive order granted by the Securities and Exchange
Commission, the LLC's eligible Trustees may participate in a deferred
compensation plan (the "Plan") which may be terminated at any time. Under the
Plan, Trustees may elect to defer receipt of all or a portion of their fees
which, in accordance with the Plan, are invested in mutual fund shares. Upon
termination of the Plan, Trustees who have deferred accounts under the Plan
will be paid benefits no later than the time the payments would otherwise have
been made without regard to such termination. All benefits provided under
these plans are funded and any payments to plan participants are paid solely
out of the LLC's assets.
5. DISTRIBUTION PLANS
WM Funds Distributor, Inc. (the "Distributor"), a registered broker-dealer and
indirect wholly-owned subsidiary of Washington Mutual, serves as distributor
for Class A and B shares of the Portfolios. For the six months ended April 30,
2000, the Distributor and WM Financial Services, Inc. ("WM Securities")
received $2,652,643 and $22,662, respectively, representing commissions (front
end sales charges) on Class A shares. In addition, the Distributor and WM
Securities received $249,546 and $10,448, respectively, representing CDSC Fees
from Class B shares.
Each of the Portfolios has adopted two distribution plans, pursuant to Rule
12b-1 under the 1940 Act, one for the Class A shares ("Class A Plan") and one
for the Class B shares ("Class B Plan"). Under the Class A and Class B Plans,
the Distributor is to be paid a shareholder service fee at an annual rate of
0.25% of the average daily net assets of each class of shares. In addition,
under the Class B Plan, the Distributor is to be paid an annual distribution
fee of up to 0.75% of the average daily net assets of the Class B shares of
each Portfolio for activities primarily intended to result in the sale of
Class B shares for the Portfolios.
6. PURCHASES AND SALES OF SECURITIES
The aggregate cost of purchases and proceeds from sales of securities,
excluding U.S. Government and short-term investments, for the six months ended
April 30, 2000 were as follows:
NAME OF PORTFOLIO PURCHASES SALES
----------------- --------- -----
Strategic Growth Portfolio .................. $179,449,831 $277,474,300
Conservative Growth Portfolio ............... 317,953,859 130,576,400
Balanced Portfolio .......................... 313,489,884 159,461,795
Flexible Income Portfolio ................... 47,887,997 80,739,531
Income Portfolio ............................ 3,222,525 6,053,761
At April 30, 2000, aggregate gross unrealized appreciation for all Underlying
Funds in which there was an excess of value over tax cost and aggregate gross
unrealized depreciation for all Underlying Funds in which there was an excess
of tax cost over value were as follows:
TAX BASIS TAX BASIS
UNREALIZED UNREALIZED
NAME OF PORTFOLIO APPRECIATION DEPRECIATION
----------------- ------------ ------------
Strategic Growth Portfolio ..................$ 67,046,335 $2,757,743
Conservative Growth Portfolio ............... 145,580,906 4,532,539
Balanced Portfolio .......................... 85,247,315 7,655,034
Flexible Income Portfolio ................... 3,245,454 3,988,792
Income Portfolio ............................ 7,576 369,100
7. SHARES OF BENEFICIAL INTEREST
The LLC may issue an unlimited number of shares of beneficial interest, each
without par value.
8. ORGANIZATION COSTS
Expenses incurred in connection with the organization of the Portfolios,
including the fees and expenses of registering and qualifying its shares for
distribution under federal and state securities regulations, are being
amortized on a straight-line basis over a period of five years from
commencement of operations of each Portfolio, respectively. In the event any
of the initial shares of a Portfolio are redeemed by any holder thereof during
the amortization period, the proceeds of such redemptions will be reduced by
an amount equal to the pro-rata portion of unamortized deferred organizational
expenses in the same proportion as the number of shares being redeemed bears
to the number of initial shares of such Portfolio outstanding at the time of
such redemption.
9. RISK FACTORS OF THE PORTFOLIOS
Investing in the Underlying Funds through the Portfolios involves certain
additional expenses and tax results that would not be present in a direct
investment in the Underlying Funds. For example, under certain circumstances,
an Underlying Fund may determine to make payment of a redemption request by a
Portfolio wholly or partly by a distribution in kind of securities from its
portfolio, instead of cash, in accordance with the rules of the Securities and
Exchange Commission. In such cases, the Portfolios may hold securities
distributed by an Underlying Fund until the Advisor determines that it is
appropriate to dispose of such securities.
Certain Underlying Funds may invest a portion of their assets in foreign
securities; enter into forward foreign currency transactions; lend their
portfolio securities; enter into stock index, interest rate and currency
futures contracts, and options on such contracts; enter into interest rate
swaps or purchase or sell interest rate caps or floors; engage in other types
of options transactions; make short sales; purchase zero coupon and payment-
in-kind bonds; engage in repurchase or reverse repurchase agreements; purchase
and sell "when-issued" securities and engage in "delayed-delivery"
transactions; and engage in various other investment practices each with
inherent risks.
The Strategic Growth Portfolio can invest as much as 50% of its total assets
in the WM Growth Fund, 50% of its total assets in the WM Small Cap Stock Fund
and 25% of its total assets in the WM High Yield Fund, each of which
Underlying Funds may invest as much as 35% (100% in the case of the High Yield
Fund) of its total assets in lower-rated bonds. Securities rated below
investment grade generally involve greater price volatility and risk of
principal and income and may be less liquid than higher rated securities.
Certain Portfolios may invest as much as 50% of their total assets in the WM
Growth or WM Small Cap Stock Funds, each of which may invest up to 25% of its
total assets in foreign equity securities and as much as 5% of its total
assets in securities in developing or emerging markets countries. Certain
Portfolios invest as much as 50% of their total assets in the WM International
Growth Fund, which invests primarily in the foreign equity securities, and may
invest as much as 30% of its total assets in securities in developing or
emerging market countries. These investments will subject such Portfolios to
risks associated with investing in foreign securities, including those
resulting from adverse political and economic developments and the possible
imposition of currency exchange restrictions or other foreign laws or
restrictions.
The officers and Trustees, the Advisor, the Distributor and Transfer Agent of
the Portfolios serve in the same capacity for the Underlying Funds. Conflicts
may arise as these persons and companies seek to fulfill their fiduciary
responsibilities to both the Portfolios and the Underlying Funds.
From time to time, one or more of the Underlying Funds used for investment by
a Portfolio may experience relatively large investments or redemptions due to
reallocations or rebalancings by the Portfolios. These transactions will
affect the Underlying Funds, since the Underlying Funds that experience
redemptions as a result of the reallocations or rebalancings may have to sell
portfolio securities and the Underlying Funds that receive additional cash
will have to invest such cash. While it is impossible to predict the overall
impact of these transactions over time, there could be adverse effects on
portfolio management to the extent that the Underlying Funds may be required
to sell securities or invest cash at times when they would not otherwise do
so. These transactions could also have tax consequences if sales of securities
resulted in gains and could also increase transaction costs. The Advisor is
committed to minimizing such impact on the underlying Funds to the extent it
is consistent with pursuing the investment objectives of the Portfolios. The
Advisor may nevertheless face conflicts in fulfilling its responsibilities.
The Advisor will, at all times, monitor the impact on the underlying Funds of
transactions by the Portfolios.
<PAGE>
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[graphic omitted]
This Semi-Annual Report is published for the general information of the
shareholders of the WM Group of Funds. It is authorized for distribution to
prospective investors only when preceded or accompanied by a current WM Group of
Funds prospectus. A mutual fund's share price and investment return will vary
with market conditions, and the principal value of an investment when you sell
your shares may be more or less than the original cost.
The WM Group of Funds are not insured by the FDIC. They are not deposits or
obligations of, nor are they guaranteed by, any bank. These securities are
subject to investment risk, including possible loss of principal amount
invested.
Distributed by WM Funds Distributor, Inc.
Member NASD
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GROUPofFUNDS U.S. Postage
P.O. Box 9757 P A I D
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WMSAMSAR (6/20/00)
