<PAGE> 1
SEMI-ANNUAL REPORT
AS OF JUNE 30, 1999
PACIFIC INNOVATIONS TRUST
Not FDIC Insured
<PAGE> 2
Dear Shareholders:
We are pleased to share with you the semi-annual report, dated June 30,
1999, for the Pacific Innovations Trust, which is the underlying fund for
Pacific Innovations Variable Annuity (both "Pacific Innovations"). Administered
by Pacific Life Insurance Company, Pacific Innovations is a flexible premium
deferred variable annuity contract for individuals as well as certain
tax-qualified retirement plans.
In addition to a Fixed Investment Option, seven Variable Investment Options
are currently available, each one investing in shares of a corresponding Fund of
the Pacific Innovations Trust. Five of the Funds are advised by Bank of America:
Money Market Fund, Capital Income Fund, Blue Chip Fund, Mid-Cap Equity Fund and
Aggressive Growth Fund. Two other funds, the Managed Bond Fund and the
International Fund, are sub-advised by Scudder Kemper Investments, Inc. and
Wellington Management Company, LLP, respectively.
Pacific Innovations finished the period with solid total returns in an
environment that continued to be favorable to stocks and reasonable to fixed
income securities. The broad U.S. stock market gained 12.38% and 22.76% for the
six and twelve months ended June 30, 1999, respectively. Intermediate-term U.S.
bonds delivered total returns of (1.38%) and 3.13% for the six and twelve
months, respectively. Overseas, where economic conditions are mixed, equity
securities advanced 3.97% and 7.60% during the six and twelve month periods,
respectively*.
The U.S. securities market continues to benefit from moderate inflation,
steady economic growth and wage increases that are offset by productivity gains.
These conditions are favorable to business earnings and the performance of
financial assets, especially equities. Year-over-year growth of corporate
earnings have accelerated giving investors reason to be optimistic about further
earnings.
Since January, the fixed income market has been uncertain as to whether
unemployment and strong domestic consumer demand would overheat the economy and
interest rates have risen steadily. After raising interest rates at the end of
June, the Federal Reserve Board adopted a neutral bias and is likely to await
further economic data to indicate its next course of action.
Thank you for your continued investment and support of Pacific Innovations.
We look forward to continued growth for the remainder of 1999 and beyond.
Sincerely,
/s/ Cornelius Pings
Dr. Cornelius J. Pings
* As measured by the Standard & Poor's 500 Composite Stock Price Index; the
Lehman Brothers Aggregate Bond Index; and the Morgan Stanley Capital
International (MSCI) Europe, Australia and Far East (EAFE) Index from 7/1/98
through 6/30/99. These indices are representative of the large capitalization
U.S. equity, U.S. bond and International markets, respectively. Each index
cannot be invested in directly.
<PAGE> 3
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
---- ----- -----
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 71.6%
FANNIEMAE -- 21.3%
FannieMae 5.48%............... 07/09/99 $ 50 $ 50,006
FannieMae 8.45%............... 07/12/99 300 300,280
FannieMae 5.52%............... 08/09/99 20 20,008
FannieMae 6.35%............... 08/10/99 410 410,544
FannieMae 8.55%............... 08/30/99 95 95,483
FannieMae 7.23%............... 09/15/99 15 15,066
FannieMae 6.02%............... 09/17/99 135 135,229
FannieMae 6.14%............... 11/01/99 125 125,360
FannieMae 8.35%............... 11/10/99 65 65,740
FannieMae 4.78%............... 11/30/99 35 34,953
FannieMae 5.74%............... 12/09/99 125 125,231
----------
TOTAL FANNIEMAE......................... 1,377,900
----------
FEDERAL FARM CREDIT BANK -- 17.7%
Federal Farm Credit Bank Bond
4.77%....................... 07/01/99 550 550,000
Federal Farm Credit Bank Bond
8.65%....................... 10/01/99 317 319,753
Federal Farm Credit Bank Bond
6.18%....................... 06/27/00 200 200,678
Federal Farm Credit Bank Note
5.50%....................... 08/03/99 75 75,003
----------
TOTAL FEDERAL FARM CREDIT BANK.......... 1,145,434
----------
FEDERAL HOME LOAN BANK -- 17.0%
Federal Home Loan Bank Note
8.45%....................... 07/26/99 50 50,106
Federal Home Loan Bank Note
6.26%....................... 08/09/99 195 195,230
Federal Home Loan Bank Note
5.545%...................... 08/17/99 335 335,124
Federal Home Loan Bank Note
8.60%....................... 08/25/99 35 35,172
Federal Home Loan Bank
Discount Note 6.15%......... 09/14/99 10 9,990
Federal Home Loan Bank Note
5.96%....................... 09/24/99 15 15,031
Federal Home Loan Bank Note
7.42%....................... 10/07/99 10 10,063
Federal Home Loan Bank Note
8.375%...................... 10/25/99 60 60,628
</TABLE>
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
---- ----- -----
<S> <C> <C> <C>
Federal Home Loan Bank Note
5.93%....................... 11/12/99 $ 35 $ 35,110
Federal Home Loan Bank Note
5.84%....................... 12/03/99 10 10,031
Federal Home Loan Bank Note
5.805%...................... 12/06/99 100 100,325
Federal Home Loan Bank Note
5.88%....................... 12/17/99 100 100,385
Federal Home Loan Bank Note
7.92%....................... 12/23/99 10 10,136
Federal Home Loan Bank Note
5.745%...................... 12/29/99 50 50,164
Federal Home Loan Bank Note
5.95%....................... 01/18/00 50 50,226
Federal Home Loan Bank Note
7.88%....................... 02/09/00 20 20,327
Federal Home Loan Bank Note
7.585%...................... 02/10/00 10 10,137
----------
TOTAL FEDERAL HOME LOAN BANK............ 1,098,185
----------
FEDERAL HOME LOAN MORTGAGE CORP. -- 13.4%
Federal Home Loan Mortgage
Corp. Discount Note 4.75%... 07/06/99 326 325,785
Federal Home Loan Mortgage
Corp. Discount Note 5.00%... 07/09/99 25 24,972
Federal Home Loan Mortgage
Corp. Note 7.125%........... 07/21/99 210 210,244
Federal Home Loan Mortgage
Corp. Discount Note 4.95%... 08/13/99 300 298,226
Federal Home Loan Mortgage
Corp. Note 6.13%............ 08/19/99 10 10,014
----------
TOTAL FEDERAL HOME LOAN MORTGAGE CORP....... 869,241
----------
STUDENT LOAN MARKETING ASSOCIATION -- 2.2%
Student Loan Marketing
Association VR Medium Term
Note 5.53%.................. 07/16/99 140 140,022
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $4,630,782)......................... 4,630,782
----------
</TABLE>
2
<PAGE> 4
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
---- ----- -----
<S> <C> <C> <C>
REPURCHASE AGREEMENTS -- 30.4%
HSBC Securities, Inc.
5.05% dated 6/30/99,
repurchase price $320,045
(collateralized by $474,000
FannieMae, 8.50%, 10/01/27,
market value $329,179)........ 07/01/99 $ 320 $ 320,000
Lehman Brothers, Inc.
5.02% dated 6/30/99,
repurchase price $320,045
(collateralized by $1,254,452
FannieMae, 8.50%, 10/01/27,
market value $330,231)........ 07/01/99 320 320,000
Morgan Stanley
5.25% dated 6/30/99,
repurchase price $1,328,194
(collateralized by $1,328,000
FannieMae, 8.50%, 10/01/27,
market value $1,356,168)...... 07/01/99 1,328 1,328,000
----------
TOTAL REPURCHASE AGREEMENTS
(COST $1,968,000)......................... 1,968,000
----------
TOTAL INVESTMENTS -- 102.0%
(COST $6,598,782)......................... 6,598,782
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (2.0%).......................... (133,134)
----------
NET ASSETS -- 100.0%........................ $6,465,648
==========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
3
<PAGE> 5
MANAGED BOND FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- ----- -----
<S> <C> <C> <C>
ASSET BACKED SECURITIES -- 13.7%
Advanta Series, Series
1997-1
7.10%..................... 04/25/20 $ 112 $ 112,550
Carco Auto Loan Master
Trust, Series 1997, Class
1
6.689%.................... 08/15/04 125 125,551
CIT RV Trust, Series 1998-A,
Class A4
6.09%..................... 02/15/12 180 178,625
Discover Card Master Trust
1, Series 1998-2, Class A
5.80%..................... 09/16/03 250 249,350
Discover Card Master Trust
I, Series 1999-4, Class A
5.65%..................... 11/15/04 180 176,681
Green Tree Financial Corp.,
Series 1995-8
7.30%..................... 12/15/26 250 240,435
Green Tree Financial Corp.,
Series 1996-2
7.90%..................... 04/15/27 250 197,732
MBNA Master Credit Card
Trust, Series 1997-F,
Class A
6.60%..................... 11/15/04 180 184,005
The Money Store Home Equity
Trust, Series 1994-C
7.80%..................... 10/15/21 220 225,835
The Money Store Home Equity
Trust, Series 1998-B,
Class AF3
6.04%..................... 08/15/17 267 266,744
UCFC Home Equity Loan,
Series 1997-A1
6.975%.................... 04/15/16 114 114,118
Union Acceptance Corp.,
Series 1997-B
6.37%..................... 04/08/01 16 16,232
Western Financial, Series
1997-A
6.50%..................... 09/20/01 37 36,650
WFS Financial Owner Trust,
Series 1999-A, Class A3
5.55%..................... 02/20/03 360 356,940
-----------
TOTAL ASSET BACKED SECURITIES
(COST $2,542,433)....................... 2,481,448
-----------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 3.3%
Countrywide Home Loan
6.85%..................... 06/15/04 110 108,763
Merrill Lynch Trust, Series
45
9.10%..................... 09/20/14 30 30,442
Nomura Asset Securities
Corp., Series 1994-1
6.625%.................... 01/25/09 127 127,371
Paine Webber Mortgage,
Series 1993-6
6.90%..................... 08/25/08 44 43,687
Residential Funding
Mortgage, Series 1996-S15
7.75%..................... 01/25/07 208 212,919
</TABLE>
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- ----- -----
<S> <C> <C> <C>
Residential Funding
Mortgage, Series 1997-S19
6.50%..................... 12/25/12 $ 70 $ 69,908
-----------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(COST $588,660)......................... 593,090
-----------
CORPORATE OBLIGATIONS -- 31.3%
AEROSPACE -- 1.8%
Raytheon Co. Notes
6.15%..................... 11/01/08 350 329,437
-----------
AIRLINES -- 1.3%
Continental Air
6.90%..................... 01/02/18 250 244,965
-----------
BEVERAGES & FOOD -- 1.4%
Coca-Cola Enterprises Notes
6.375%.................... 08/01/01 250 250,625
-----------
FINANCIAL -- BANK & TRUST -- 3.1%
Capital One Bank Notes
6.15%..................... 06/01/01 200 197,750
U.S. Bancorp Sub Notes
8.125%.................... 05/15/02 350 365,312
-----------
TOTAL FINANCIAL -- BANK & TRUST....... 563,062
-----------
FINANCIAL SERVICES -- 6.8%
Associates Corp. Sr. Notes
6.25%..................... 11/01/08 150 142,125
Countrywide Home Loan Co.
Notes 5.62%............... 10/16/00 300 298,224
Countrywide Home Loan Co.
6.25%..................... 04/15/09 40 37,150
FINOVA Capital Corp. Notes
5.875%.................... 10/15/01 200 197,500
International Lease Finance
Corp. Notes
6.375%.................... 08/01/01 250 250,312
Lehman Brothers Holdings
Notes
6.625%.................... 12/27/02 175 172,375
Merrill Lynch & Co. Notes
5.71%..................... 01/15/02 130 128,218
-----------
TOTAL FINANCIAL SERVICES.............. 1,225,904
-----------
MULTI-INDUSTRY -- 3.5%
Tyco International Group
Notes
6.375%.................... 06/15/05 350 337,750
USA Waste Services, Inc.
7.00%..................... 10/01/04 300 301,875
-----------
TOTAL MULTI-INDUSTRY.................. 639,625
-----------
MULTI-MEDIA -- 1.8%
Time Warner Entertainment
9.625%.................... 05/01/02 300 323,250
-----------
REAL ESTATE -- 4.3%
American Health Properties
Notes
7.05%..................... 01/15/02 200 200,500
Equity Residential
Properties Notes
6.55%..................... 11/15/01 300 297,375
Simon Debartolo Group Notes
6.875%.................... 11/15/06 300 285,000
-----------
TOTAL REAL ESTATE..................... 782,875
-----------
</TABLE>
4
<PAGE> 6
MANAGED BOND FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- ----- -----
<S> <C> <C> <C>
RESTAURANTS -- 1.7%
McDonald's Corp. Notes
5.90%..................... 05/11/01 $ 300 $ 299,286
-----------
RETAIL & MERCHANDISING -- 1.4%
Wal-Mart Stores, Inc. Notes
8.625%.................... 04/01/01 250 260,625
-----------
TELECOMMUNICATIONS -- 4.2%
AT&T Corp.
5.625%.................... 03/15/04 300 291,000
Clear Channel
Communications, Inc.
6.625%.................... 06/15/08 250 237,209
Comcast Cable Communications
Notes
6.20%..................... 11/15/08 250 233,750
-----------
TOTAL TELECOMMUNICATIONS.................. 761,959
-----------
TOTAL CORPORATE OBLIGATIONS
(COST $5,819,542)....................... 5,681,613
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 12.7%
FannieMae
5.75%..................... 04/15/03 1,300 1,287,698
Federal Home Loan Mortgage
Corp., Pool 200057
9.00%..................... 11/01/01 10 10,474
Federal Home Loan Mortgage
Corp., Pool 218960
9.00%..................... 10/01/02 24 25,177
Federal Home Loan Mortgage
Corp., Pool 380061
9.00%..................... 12/01/04 26 27,159
Government National Mortgage
Assoc. Pool 286324
9.00%..................... 02/15/20 203 216,316
Government National Mortgage
Assoc. Pool 286405
9.00%..................... 04/15/20 51 53,816
Government National Mortgage
Assoc. Pool 780011
10.00%.................... 07/15/22 205 223,555
Government National Mortgage
Assoc. Pool 780081
10.00%.................... 02/15/25 208 226,124
Government National Mortgage
Assoc. Pool 780657
8.00%..................... 12/15/23 231 237,299
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $2,323,614)....................... 2,307,618
-----------
</TABLE>
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
-------- ----- -----
U.S. TREASURY OBLIGATIONS -- 29.4%
U.S. TREASURY BONDS -- 3.2%
U.S. Treasury Bond
6.625%.................... 02/15/27 $ 50 $ 52,757
U.S. Treasury Bond
6.375%.................... 08/15/27 520 532,368
-----------
TOTAL U.S. TREASURY BONDS............. 585,125
-----------
U.S. TREASURY NOTES -- 26.2%
U.S. Treasury Note
5.375%.................... 06/30/00 350 350,385
U.S. Treasury Note
6.25%..................... 08/31/02 300 304,429
U.S. Treasury Note
5.75%..................... 10/31/02 1,035 1,035,526
U.S. Treasury Note
5.625%.................... 12/31/02 175 174,370
U.S. Treasury Note
6.50%..................... 05/15/05 750 771,149
U.S. Treasury Note
6.50%..................... 08/15/05 1,035 1,064,186
U.S. Treasury Note
5.625%.................... 02/15/06 450 442,012
U.S. Treasury Note
6.125%.................... 08/15/07 600 606,259
-----------
TOTAL U.S. TREASURY NOTES............. 4,748,316
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $5,445,313)....................... 5,333,441
-----------
SOVEREIGN ISSUES -- 1.8%
CANADA
Quebec Province
5.750%.................... 02/15/09 350 322,000
-----------
(COST $330,129)
SHARES
-------
<S> <C> <C> <C>
SHORT TERM INVESTMENTS -- 7.2%
Temporary Investment Cash Fund........ 653,040 653,040
Temporary Investment Fund............. 653,040 653,040
-----------
TOTAL SHORT TERM INVESTMENTS
(COST $1,306,080)....................... 1,306,080
-----------
TOTAL INVESTMENTS -- 99.4%
(COST $18,355,771)...................... 18,025,290
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.6%..................... 99,029
-----------
NET ASSETS -- 100.0%...................... $18,124,319
===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
5
<PAGE> 7
CAPITAL INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
---- ----- -----
<S> <C> <C> <C>
CONVERTIBLE BONDS -- 35.3%
BASICS -- 0.9%
Agnico Eagle Mines, Ltd.
3.50%..................... 01/27/04 $ 400 $ 244,000
-----------
CAPITAL GOODS -- 2.4%
Mark IV Industries
4.75%..................... 11/01/04 40 35,850
Mark IV Industries 144A
4.75%..................... 11/01/04 85 76,181
Waste Management, Inc.
4.00%..................... 02/01/02 200 267,250
WMX Technologies, Inc.
2.00%..................... 01/24/05 250 271,563
-----------
TOTAL CAPITAL GOODS................... 650,844
-----------
CONSUMER CYCLICALS -- 7.0%
Clear Channel
Communications, Inc.
2.63%..................... 04/01/03 260 329,550
Hilton Hotels Corp.
5.00%..................... 05/15/06 350 317,625
Home Depot, Inc.
3.25%..................... 10/01/01 115 320,275
Interpublic Group Co., Inc.
1.87%..................... 06/01/06 340 310,250
Magna International, Inc.
4.88%..................... 02/15/05 50 49,313
Magna International, Inc.
144A
4.88%..................... 02/15/05 230 226,838
Xerox Corp.
0.57%..................... 04/21/18 550 352,000
-----------
TOTAL CONSUMER CYCLICALS.............. 1,905,851
-----------
ENERGY -- 3.5%
Loews Corp.
3.13%..................... 09/15/07 400 323,500
Pennzoil Co.
4.95%..................... 08/15/08 300 309,375
Seacor Holdings, Inc.
5.38%..................... 11/15/06 255 255,000
Seacor Holdings, Inc. 144A
5.38%..................... 11/15/06 50 50,000
-----------
TOTAL ENERGY.......................... 937,875
-----------
FINANCIAL SERVICES -- 2.4%
Bank Atlantic Bancorp, Inc.
5.63%..................... 12/01/07 325 260,813
Penn Treaty American Corp.
6.25%..................... 12/01/03 360 373,500
Penn Treaty American Corp.
6.25%..................... 12/01/03 15 15,300
-----------
TOTAL FINANCIAL SERVICES.............. 649,613
-----------
HEALTH CARE -- 2.6%
Alza Corp.
5.00%..................... 05/01/06 180 247,275
Athena Neurosciences, Inc.
4.75%..................... 11/15/04 100 105,625
Total Renal Care Holdings
7.00%..................... 05/15/09 450 367,313
-----------
TOTAL HEALTH CARE..................... 720,213
-----------
</TABLE>
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
---- ----- -----
<S> <C> <C> <C>
TECHNOLOGY -- 10.5%
Affiliated Computer
4.00%..................... 03/15/05 $ 200 $ 262,000
Atmel Corp. 144A, 3.25%;
8.25%, beginning
06/01/00++................ 06/01/02 350 356,125
Doubleclick, Inc.
4.75%..................... 03/15/06 100 124,250
Hutchinson Technology, Inc.
6.00%..................... 03/15/05 150 175,500
ITC Deltacom 144A
4.50%..................... 05/15/06 225 275,625
LSI Logic 144A
4.25%..................... 03/15/04 200 328,750
Micron Technology, Inc.
7.00%..................... 07/01/04 350 354,813
Photronics, Inc.
6.00%..................... 06/01/04 300 329,625
Safeguard Scientific 144A
5.00%..................... 06/15/06 400 427,000
Sanmina Corp.
4.25%..................... 05/01/04 205 229,856
-----------
TOTAL TECHNOLOGY...................... 2,863,544
-----------
TELECOMMUNICATIONS -- 1.1%
Telefonos de Mexico SA
4.25%..................... 06/15/04 300 308,625
-----------
UTILITIES -- 4.9%
Aes Corp.
4.50%..................... 08/15/05 300 372,375
Bell Atlantic Financial
Services 144A
5.75%..................... 04/01/03 300 301,875
Bell Atlantic Financial
Services 144A
4.25%..................... 09/15/05 300 306,000
Nextel Communications
4.75%..................... 07/01/07 300 364,125
-----------
TOTAL UTILITIES....................... 1,344,375
-----------
TOTAL CONVERTIBLE BONDS
(COST $8,998,438)....................... 9,624,940
-----------
CONVERTIBLE ZERO COUPON BONDS -- 8.3%
HEALTH CARE -- 1.8%
Elan International Finance
144A
3.25%+.................... 12/14/18 600 309,000
Roche Holdings, Inc. 144A
5.71%+.................... 05/06/12 390 191,100
-----------
TOTAL HEALTH CARE..................... 500,100
-----------
TECHNOLOGY -- 5.0%
Citrix Systems
5.325%+................... 03/22/19 925 424,344
Hewlett-Packard Co.
3.184%+................... 10/14/17 500 313,125
Motorola, Inc.
1.67%+.................... 09/27/13 205 180,656
Solectron Corp. 144A
3.999%+................... 01/27/19 750 435,938
-----------
TOTAL TECHNOLOGY...................... 1,354,063
-----------
</TABLE>
6
<PAGE> 8
CAPITAL INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000) VALUE
---- ----- -----
<S> <C> <C> <C>
UTILITIES -- 1.5%
U.S. Cellular Corp. LYON
5.712%+................... 06/15/15 $ 800 $ 412,000
-----------
TOTAL CONVERTIBLE ZERO COUPON BONDS
(COST $1,947,886)................... 2,266,163
-----------
SHARES
-------
COMMON STOCK -- 17.3%
CAPITAL GOODS -- 0.4%
Mark IV Industries, Inc. ............. 5,000 $ 105,625
-----------
CONSUMER CYCLICALS -- 0.7%
Nordstrom, Inc. ...................... 6,000 201,000
-----------
CONSUMER STAPLES -- 1.3%
McDonald's Corp. ..................... 8,650 357,353
-----------
ELECTRICAL EQUIPMENT -- 0.3%
Sanmina Corp.*........................ 1,000 75,875
-----------
ENERGY -- 1.4%
BP Amoco PLC.......................... 3,400 368,900
-----------
FINANCIAL -- BANK & TRUST -- 0.9%
Frontier Insurance Group, Inc. ....... 5,000 76,875
Sovereign Bancorp, Inc. .............. 13,500 163,687
-----------
TOTAL FINANCIAL -- BANK & TRUST....... 240,562
-----------
HEALTH CARE -- 3.2%
American Home Products Corp. ......... 4,000 230,000
Lilly, (Eli) & Co. ................... 2,500 179,062
Pfizer, Inc. ......................... 2,000 219,500
Schering-Plough Corp. ................ 5,000 265,000
-----------
TOTAL HEALTH CARE..................... 893,562
-----------
MULTI-INDUSTRY -- 0.4%
Ingersoll Rand Co. ................... 1,500 96,937
-----------
PAPER & FOREST PRODUCTS -- 0.3%
Georgia Pacific Corp. ................ 2,000 94,750
-----------
REAL ESTATE -- 1.2%
Apartment Investment & Management Co.
REIT................................ 12,400 334,025
-----------
TECHNOLOGY -- 5.9%
Affiliated Computer Services, Inc. ... 2,000 101,250
Cisco Systems, Inc. .................. 6,000 387,000
Hutchinson Technology, Inc.*.......... 6,000 166,500
Intel Corp. .......................... 5,600 333,200
Motorola, Inc. ....................... 2,000 189,500
Xilinx, Inc. ......................... 7,500 429,375
-----------
TOTAL TECHNOLOGY...................... 1,606,825
-----------
UTILITIES -- 1.3%
AT&T Corp. ........................... 6,163 343,972
-----------
TOTAL COMMON STOCK (COST
$3,387,255)......................... 4,719,386
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C> <C>
CONVERTIBLE PREFERRED STOCK -- 36.4%
BASICS -- 1.7%
International Paper Co................ 8,000 $ 423,000
-----------
CONSUMER CYCLICALS -- 12.9%
Adelphia Communications............... 1,500 301,500
Chancellor Media...................... 2,000 307,750
Fleetwood Capital Trust............... 3,100 131,362
Fleetwood Capital Trust 144A.......... 4,800 203,400
Houston Industries, Inc. ............. 2,550 304,087
Media One Group, Inc. ................ 4,500 407,250
Media One Group, Inc., Series D....... 2,500 374,531
Owens-Illinois, Inc. ................. 9,000 393,750
Readers Digest Association............ 9,000 333,000
Sealed Air Corp., Series A............ 6,500 406,250
Wendy's Financing, Inc. .............. 6,000 363,000
-----------
TOTAL CONSUMER CYCLICALS.............. 3,525,880
-----------
CONSUMER STAPLES -- 2.0%
Newell Financial Trust I.............. 5,300 296,800
Ralston-Ralston Purina Co. ........... 5,500 255,750
-----------
TOTAL CONSUMER STAPLES................ 552,550
-----------
ENERGY -- 2.3%
El Paso Energy Capital Trust I........ 6,100 301,950
Unocal Corp. ......................... 5,460 305,760
-----------
TOTAL ENERGY.......................... 607,710
-----------
FINANCIAL SERVICES -- 7.5%
Amerus Life Holdings, Inc. ........... 14,000 381,500
CNB Capital Trust I................... 12,000 362,250
Frontier Insurance Group, Inc. ....... 10,000 461,250
Merrill Lynch & Co., Inc. ............ 12,000 245,250
Philadelphia Consolidated Holding
Corp. .............................. 30,000 313,125
Protective Life Corp. Capital Trust
II.................................. 5,000 290,000
-----------
TOTAL FINANCIAL SERVICES.............. 2,053,375
-----------
HEALTH CARE -- 1.0%
Monsanto Co. ......................... 7,000 280,875
-----------
TECHNOLOGY -- 1.1%
Microsoft Corp., Series A............. 3,000 299,812
-----------
TRANSPORTATION -- 2.4%
CNF Transportation, Inc. ............. 5,500 314,187
Union Pacific Capital Trust........... 1,100 58,437
Union Pacific Capital Trust 144A...... 5,500 292,188
-----------
TOTAL TRANSPORTATION.................. 664,812
-----------
UTILITIES -- 5.5%
Avista Corp. ......................... 15,000 255,000
CalEnergy Capital Trust II............ 4,700 234,413
CalEnergy Capital Trust II 144A....... 2,500 124,688
Citizens Utilities Trust.............. 6,600 320,925
Nisource, Inc. ....................... 6,000 296,250
Texas Utilities Co. .................. 5,000 275,000
-----------
TOTAL UTILITIES....................... 1,506,276
-----------
TOTAL CONVERTIBLE PREFERRED STOCK
(COST $9,356,062)....................... 9,914,290
-----------
</TABLE>
7
<PAGE> 9
CAPITAL INCOME FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS -- 2.8%
Temporary Investment Cash Fund........ 384,242 $ 384,242
Temporary Investment Fund............. 384,242 384,242
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $768,484)..................... 768,484
-----------
TOTAL INVESTMENTS -- 100.1%
(COST $24,458,125)...................... 27,293,263
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (0.1%)........................ (40,322)
-----------
NET ASSETS -- 100.0%...................... $27,252,941
===========
</TABLE>
- --------------------------------------------------------------------------------
* Non-income producing security.
+ Rate shown is effective yield at purchase date.
++ Step-up Bond.
144A -- Security was purchased pursuant to Rule 144A under the Securites Act of
1933 and may not be resold subject to that rule except to qualified
institutional buyers. At the end of the period, these securities
amounted to 14.3% of net assets.
LYON -- Liquid Yield Option Note: Callable, zero coupon securities priced at a
deep discount from par. They include a "put" feature that enables
holders to redeem them at a specific date, at a specific price. Put
prices reflect fixed interest rates and therefore increase over time.
REIT -- Real Estate Investment Trust.
See Notes to Financial Statements.
8
<PAGE> 10
BLUE CHIP FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCK -- 99.7%
AEROSPACE/DEFENSE -- 2.5%
Goodrich (B.F.) Co. .................. 3,900 $ 165,750
Rockwell International Corp. ......... 5,200 315,900
United Technologies Corp. ............ 7,200 516,150
-----------
TOTAL AEROSPACE....................... 997,800
-----------
AIRLINES -- 0.5%
Delta Air Lines, Inc. ................ 3,200 184,400
-----------
APPAREL/TEXTILE -- 0.3%
Tommy Hilfiger Corp.*................. 1,700 124,950
-----------
AUTOMOTIVE -- 1.4%
Delphi Automotive Systems Corp.*...... 2,306 42,805
Ford Motor Co. ....................... 5,600 316,050
General Motors Corp. ................. 3,300 217,800
-----------
TOTAL AUTOMOTIVE...................... 576,655
-----------
BANKS/SAVINGS & LOANS -- 5.8%
Chase Manhattan Corp. ................ 8,700 753,637
Fleet Financial Group, Inc. .......... 11,800 523,625
Mellon Bank Corp. .................... 10,000 363,750
National City Corp. .................. 3,300 216,150
Wells Fargo Co.*...................... 10,300 440,325
-----------
TOTAL BANKS/SAVINGS & LOANS........... 2,297,487
-----------
BEVERAGES -- 2.4%
Anheuser-Busch Cos., Inc. ............ 5,900 418,531
Coca-Cola Co. ........................ 5,900 368,750
Coca-Cola Enterprises, Inc. .......... 2,400 73,800
PepsiCo, Inc. ........................ 2,200 85,112
-----------
TOTAL BEVERAGES....................... 946,193
-----------
BUILDING RELATED/APPLIANCE -- 0.3%
Centex Corp. ......................... 3,400 127,712
-----------
CHEMICALS -- 2.9%
Dow Chemical Co. ..................... 2,800 355,250
Solutia, Inc.*........................ 3,600 76,725
Union Carbide Corp. .................. 2,900 141,375
-----------
TOTAL CHEMICALS....................... 573,350
-----------
COMMUNICATION SYSTEMS & SOFTWARE -- 5.1%
Cisco Systems, Inc.*.................. 12,950 835,275
Motorola, Inc. ....................... 2,900 274,775
Lucent Technologies, Inc. ............ 9,200 620,425
Tellabs, Inc.*........................ 4,500 304,031
-----------
TOTAL COMMUNICATIONS
SYSTEM & SOFTWARE................... 2,034,506
-----------
COMMERCIAL SERVICES -- 0.3%
Omnicom Group......................... 1,700 136,000
-----------
COMPUTER HARDWARE -- 6.1%
EMC Corp.*............................ 9,000 495,000
Hewlett-Packard Co. .................. 5,400 542,700
International Business Machines
Corp. .............................. 8,000 1,034,000
Seagate Technology, Inc.*............. 3,900 99,937
Solectron Corp.*...................... 3,600 240,075
-----------
TOTAL COMPUTER HARDWARE............... 2,411,712
-----------
COMPUTER SERVICES & SOFTWARE -- 7.1%
America Online, Inc.*................. 3,300 364,650
BMC Software, Inc.*................... 4,100 221,400
Compuware Corp.*...................... 4,200 133,612
Microsoft Corp.*...................... 21,400 1,930,012
Unisys Corp.*......................... 4,600 179,112
-----------
TOTAL COMPUTER SERVICES & SOFTWARE.... 2,828,786
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COSMETICS & TOILETRIES -- 2.8%
Avon Products, Inc. .................. 4,400 $ 244,200
Clorox Co. ........................... 2,400 256,350
Kimberly-Clark Corp. ................. 3,100 176,700
Procter & Gamble Co. ................. 4,900 437,325
-----------
TOTAL COSMETICS & TOILETRIES.......... 1,114,575
-----------
ELECTRONIC COMPONENTS & EQUIPMENT -- 3.5%
General Electric Co. ................. 10,200 1,152,600
Texas Instruments, Inc. .............. 1,700 246,500
-----------
TOTAL ELECTRONIC
COMPONENTS & EQUIPMENT.............. 1,399,100
-----------
ENERGY RELATED -- 1.2%
Reliant Energy, Inc. ................. 6,800 187,850
PECO Energy Co. ...................... 6,800 284,750
-----------
TOTAL ENERGY RELATED.................. 472,600
-----------
ENTERTAINMENT -- 2.9%
CBS Corp.*............................ 4,700 204,156
King World Productions, Inc. ......... 2,300 80,069
Time Warner, Inc. .................... 7,700 565,950
Viacom, Inc., Class B*................ 7,200 316,800
-----------
TOTAL ENTERTAINMENT................... 1,166,975
-----------
FINANCIAL SERVICES -- 6.4%
Citigroup, Inc. ...................... 17,775 844,312
Freddie Mac........................... 5,000 290,000
J.P. Morgan & Co., Inc. .............. 2,500 351,250
Lehman Brothers Holdings, Inc. ....... 1,900 118,275
Morgan Stanley Dean Witter............ 4,100 420,250
Providian Financial Corp. ............ 5,500 514,250
-----------
TOTAL FINANCIAL SERVICES.............. 2,538,337
-----------
FOODS -- 1.6%
ConAgra, Inc. ........................ 6,900 183,712
Heinz (H.J.) Co. ..................... 3,600 180,450
Quaker Oats Co. ...................... 4,100 272,137
-----------
TOTAL FOODS........................... 636,299
-----------
HOSPITAL MANAGEMENT -- 0.6%
United Healthcare Corp. .............. 4,100 256,762
-----------
HOSPITAL SUPPLY -- 2.0%
Boston Scientific Corp.*.............. 4,900 215,294
Johnson & Johnson Co. ................ 5,800 568,400
-----------
TOTAL HOSPITAL SUPPLY................. 783,694
-----------
INSURANCE -- 2.9%
Allstate Corp. ....................... 7,300 261,888
Conseco, Inc. ........................ 8,000 243,500
Equitable Cos., Inc. ................. 4,700 314,900
Hartford Financial Services Group,
Inc. ............................... 5,800 338,213
-----------
TOTAL INSURANCE....................... 1,158,501
-----------
MACHINERY -- 0.6%
Ingersoll Rand Co. ................... 3,400 219,725
-----------
METALS & MINING -- 0.6%
Alcoa, Inc. .......................... 2,100 129,938
USX-U.S. Steel Group, Inc. ........... 4,600 124,200
-----------
TOTAL METALS & MINING................. 254,138
-----------
MULTI-INDUSTRY -- 2.1%
Allied Signal, Inc. .................. 3,100 195,300
Tyco International Ltd. .............. 6,900 653,775
-----------
TOTAL MULTI-INDUSTRY.................. 849,075
-----------
</TABLE>
9
<PAGE> 11
BLUE CHIP FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
OFFICE SUPPLIES & FORMS -- 0.5%
Avery-Dennison Corp. ................. 3,100 $ 187,163
-----------
OIL -- FIELD SERVICES -- 0.3%
Transocean Offshore, Inc. ............ 4,300 112,875
-----------
OIL (DOMESTIC) -- 0.7%
Apache Corp. ......................... 3,800 148,200
USX-Marathon Group.................... 4,400 143,275
-----------
TOTAL OIL (DOMESTIC).................. 291,475
-----------
OIL (INTERNATIONAL) -- 4.7%
Chevron Corp. ........................ 5,500 523,531
Exxon Corp. .......................... 11,300 871,513
Mobil Corp. .......................... 5,000 495,000
-----------
TOTAL OIL (INTERNATIONAL)............. 1,890,044
-----------
PAPER & FOREST PRODUCTS -- 0.8%
Weyerhaeuser Co. ..................... 1,800 123,750
Georgia Pacific Corp. ................ 4,000 189,500
-----------
TOTAL PAPER & FOREST PRODUCTS......... 313,250
-----------
PHARMACEUTICALS -- 8.7%
Allergan, Inc. ....................... 2,700 299,700
Amgen, Inc.*.......................... 3,900 237,413
Bausch & Lomb, Inc. .................. 2,300 175,950
Biogen, Inc.*......................... 5,200 334,425
Bristol-Meyers Squibb Co. ............ 10,900 767,769
Cardinal Health, Inc. ................ 2,500 160,313
Merck & Co., Inc. .................... 3,400 251,600
Pfizer, Inc. ......................... 3,700 406,075
Schering-Plough Corp. ................ 10,000 530,000
Warner-Lambert Co. ................... 4,600 319,125
-----------
TOTAL PHARMACEUTICALS................. 3,482,370
-----------
PRINTING & PUBLISHING -- 0.8%
McGraw-Hill Cos., Inc. ............... 3,800 204,963
New York Times Co., Class A........... 3,000 110,438
-----------
TOTAL PRINTING & PUBLISHING........... 315,401
-----------
RESTAURANTS -- 0.5%
Tricon Global Restaurants, Inc. ...... 3,500 189,438
-----------
RETAIL -- 6.2%
Federated Department Stores, Inc.*.... 6,600 349,388
Gap, Inc. ............................ 9,675 487,378
Home Depot, Inc. ..................... 4,600 296,413
Mattel, Inc. ......................... 10,000 264,375
TJX Cos., Inc. ....................... 7,200 239,850
Wal-Mart Stores, Inc. ................ 17,000 820,250
-----------
TOTAL RETAIL.......................... 2,457,654
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
RETAIL FOOD/DRUG -- 0.8%
Albertson's, Inc. .................... 2,400 $ 123,750
Safeway, Inc.*........................ 4,300 212,850
-----------
TOTAL RETAIL FOOD/DRUG................ 336,600
-----------
SEMI CONDUCTORS/INSTRUMENTATION -- 2.1%
Applied Materials, Inc.*.............. 2,400 177,300
Intel Corp. .......................... 11,200 666,400
-----------
TOTAL SEMI
CONDUCTORS/INSTRUMENTATION.......... 843,700
-----------
TELECOMMUNICATIONS -- 0.4%
QUALCOMM, Inc. ....................... 1,000 143,500
-----------
TOBACCO -- 1.0%
Philip Morris Cos., Inc. ............. 10,200 409,913
-----------
TRANSPORTATION -- 0.4%
Union Pacific Corp. .................. 2,900 169,106
-----------
UTILITIES -- ELECTRIC -- 0.9%
Edison International.................. 6,300 168,525
FPL Group, Inc. ...................... 3,400 185,725
-----------
TOTAL UTILITIES -- ELECTRIC........... 354,250
-----------
UTILITIES -- GAS & PIPELINE -- 0.6%
Coastal Corp. ........................ 5,800 232,000
-----------
UTILITIES -- TELEPHONE -- 8.4%
Ameritech Corp. ...................... 6,400 470,400
AT&T Corp. ........................... 10,800 602,775
Bell Atlantic Corp. .................. 5,400 353,025
BellSouth Corp. ...................... 14,600 684,375
GTE Corp. ............................ 5,600 424,200
MCI Worldcom, Inc.*................... 9,600 828,000
-----------
TOTAL UTILITIES -- TELEPHONE.......... 3,362,775
-----------
TOTAL COMMON STOCK (COST $29,938,780)..... 39,180,846
-----------
SHORT-TERM INVESTMENTS -- 0.4%
Temporary Investment Cash Fund........ 82,756 82,756
Temporary Investment Fund............. 82,756 82,756
-----------
TOTAL SHORT-TERM INVESTMENTS (COST
$165,512)............................... 165,512
-----------
TOTAL INVESTMENTS -- 100.1% (COST
$30,104,292)............................ 39,346,358
LIABILITIES IN EXCESS OF OTHER ASSETS --
(0.1%)................................. . (41,991)
-----------
NET ASSETS -- 100.0%...................... $39,304,367
===========
</TABLE>
- --------------------------------------------------------------------------------
* Non-income producing security.
See Notes to Financial Statements.
10
<PAGE> 12
MID-CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCK -- 99.0%
AEROSPACE -- 0.9%
Cordant Technologies, Inc. .......... 3,600 $ 162,675
-----------
AIRLINES -- 0.4%
Alaska Air Group, Inc.*.............. 1,800 75,150
-----------
APPAREL/TEXTILE -- 3.5%
Cintas Corp. ........................ 3,100 208,281
Jones Apparel Group, Inc.*........... 6,100 209,306
Tommy Hilfiger Corp.*................ 2,300 169,050
-----------
TOTAL APPAREL/TEXTILE................ 586,637
-----------
AUTOMOTIVE -- 1.8%
Arvin Industries, Inc. .............. 3,300 124,987
Meritor Automotive, Inc. ............ 6,700 170,850
-----------
TOTAL AUTOMOTIVE..................... 295,837
-----------
BANKS/SAVINGS & LOANS -- 7.1%
Astoria Financial Corp. ............. 3,900 171,356
City National Corp. ................. 4,800 179,700
Dime Bancorp, Inc. .................. 10,000 201,250
North Fork Bancorporation, Inc.*..... 11,000 234,437
Old Kent Financial Corp. ............ 5,822 243,807
Pacific Century Financial Corp. ..... 7,800 168,187
-----------
TOTAL BANKS/SAVINGS & LOANS.......... 1,198,737
-----------
BEVERAGES -- 0.3%
Coors, (Adolph) Co., Class B......... 1,100 54,450
-----------
BUILDING RELATED/APPLIANCE -- 2.6%
Mohawk Industries, Inc.*............. 4,000 121,500
Shaw Industries, Inc.*............... 5,500 90,750
Southdown, Inc. ..................... 2,500 160,625
USG Corp. ........................... 1,300 72,800
-----------
TOTAL BUILDING RELATED/APPLIANCE..... 445,675
-----------
CHEMICALS -- 3.1%
Cytec Industries, Inc. .............. 4,900 156,187
Ecolab, Inc. ........................ 2,400 104,700
GenCorp, Inc. ....................... 5,100 128,775
Solutia, Inc. ....................... 6,500 138,531
-----------
TOTAL CHEMICALS...................... 528,193
-----------
COMMERCIAL SERVICES -- 2.0%
ACNielsen Corp.*..................... 6,200 187,550
Convergys Corp.*..................... 1,800 34,650
Galileo International, Inc. ......... 2,200 117,562
-----------
TOTAL COMMERCIAL SERVICES............ 339,762
-----------
COMMUNICATIONS SYSTEM & SOFTWARE -- 0.6%
Comverse Technology, Inc.*........... 1,350 101,925
-----------
COMPUTER HARDWARE -- 4.7%
Lexmark International Group, Inc.*... 5,200 343,525
NCR Corp.*........................... 3,500 170,844
SCI Systems, Inc.*................... 3,100 147,250
Symbol Technologies, Inc............. 3,300 121,687
-----------
TOTAL COMPUTER HARDWARE.............. 783,306
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMPUTER SERVICES & SOFTWARE -- 8.0%
Adobe Systems, Inc. ................. 2,500 $ 205,391
BMC Software, Inc.*.................. 1,600 86,400
Citrix Systems, Inc.*................ 4,400 248,600
Electronic Arts, Inc.*............... 1,700 92,225
Rational Software Corp.*............. 4,100 135,044
Siebel Systems, Inc.*................ 4,900 325,237
Sterling Software, Inc.*............. 4,400 117,425
SunGard Data Systems, Inc.*.......... 2,200 75,900
Symantec Corp.*...................... 2,700 68,850
-----------
TOTAL COMPUTER SERVICES & SOFTWARE... 1,355,072
-----------
CONSUMER PRODUCTS AND SERVICES -- 0.9%
Premark International, Inc. ......... 3,900 146,250
-----------
COSMETICS & TOILETRIES -- 1.1%
Dial Corp. .......................... 4,900 182,219
-----------
ENERGY RELATED -- 1.2%
Nisource, Inc.*...................... 4,400 113,575
Tidewater, Inc. ..................... 3,000 91,500
-----------
TOTAL ENERGY RELATED................. 205,075
-----------
ENTERTAINMENT -- 2.0%
Harrah's Entertainment, Inc.*........ 4,200 92,400
TCA Cable Television, Inc. .......... 1,400 77,700
Univision Communications, Inc. Class
A*................................. 2,600 171,600
-----------
TOTAL ENTERTAINMENT.................. 341,700
-----------
FINANCIAL SERVICES -- 2.9%
Countrywide Credit Industries,
Inc.*.............................. 3,100 132,525
E*Trade Group, Inc.*................. 4,200 167,737
Paine Webber Group, Inc. ............ 4,000 187,000
-----------
TOTAL FINANCIAL SERVICES............. 487,262
-----------
FOODS -- 2.8%
Hormel Foods Corp.*.................. 4,700 189,175
IBP, Inc. ........................... 7,200 171,000
Ralcorp Holdings, Inc.*.............. 7,000 112,437
Smithfield Foods, Inc. .............. 200 6,687
-----------
TOTAL FOODS.......................... 479,299
-----------
HOSPITAL MANAGEMENT -- 2.6%
Lincare Holdings, Inc.*.............. 6,200 155,000
Omnicare, Inc. ...................... 6,000 75,750
PacifiCare Health Systems, Inc.*..... 1,600 115,100
Wellpoint Health Networks, Inc. ..... 1,000 84,875
-----------
TOTAL HOSPITAL MANAGEMENT............ 430,725
-----------
HOSPITAL SUPPLY -- 2.3%
Bard (C.R.), Inc. ................... 3,300 157,781
Biomet, Inc. ........................ 2,800 111,300
DENTSPLY International, Inc. ........ 3,800 109,962
-----------
TOTAL HOSPITAL SUPPLY................ 379,043
-----------
INSURANCE -- 2.6%
AMBAC Financial Group, Inc. ......... 2,700 154,237
Everest Reinsurance Holdings, Inc.... 4,100 133,762
PMI Group, Inc.*..................... 2,300 144,469
-----------
TOTAL INSURANCE...................... 432,468
-----------
MACHINERY -- 1.5%
Briggs & Stratton Corp. ............. 3,100 179,025
McDermott International, Inc. ....... 2,700 76,275
-----------
TOTAL MACHINERY...................... 255,300
-----------
</TABLE>
11
<PAGE> 13
MID-CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
METALS & MINING -- 1.0%
Martin Marietta Materials, Inc. ..... 3,000 $ 177,000
-----------
MULTI-INDUSTRY -- 1.5%
Crane Co. ........................... 4,100 128,894
Pentair, Inc. ....................... 2,700 123,525
-----------
TOTAL MULTI-INDUSTRY................. 252,419
-----------
OFFICE SUPPLIES & FORMS -- 0.6%
Avery-Dennison Corp. ................ 1,700 102,638
-----------
OIL (DOMESTIC) -- 1.7%
Ashland, Inc. ....................... 3,100 124,388
Murphy Oil Corp. .................... 3,300 161,081
-----------
TOTAL OIL (DOMESTIC)................. 285,469
-----------
OIL (INTERNATIONAL) -- 0.8%
Ensco International, Inc. ........... 6,400 127,600
-----------
OIL -- FIELD SERVICES -- 1.0%
Transocean Offshore, Inc. ........... 6,300 165,375
-----------
PAPER & FOREST PRODUCTS -- 1.0%
Georgia Pacific Corp.*............... 6,400 161,600
-----------
PHARMACEUTICALS -- 4.5%
Bergen Brunswig Corp................. 6,800 117,300
Biogen, Inc.*........................ 5,400 347,288
Genzyme Corp. ....................... 1,200 58,200
Mylan Laboratories, Inc. ............ 4,200 111,300
Watson Pharmaceuticals Co.*.......... 3,400 119,213
-----------
TOTAL PHARMACEUTICALS................ 753,301
-----------
PRINTING & PUBLISHING -- 1.9%
Houghton Mifflin Co. ................ 3,000 141,188
Scholastic Corp.*.................... 2,200 111,375
Washington Post Co., Class B......... 120 64,530
-----------
TOTAL PRINTING & PUBLISHING.......... 317,093
-----------
RECREATION -- 1.0%
Harley-Davidson, Inc. ............... 3,000 163,125
-----------
RESTAURANT/LODGING -- 2.1%
Bob Evans Farms, Inc. ............... 4,500 89,438
Brinker International, Inc.*......... 5,500 149,531
Darden Restaurants, Inc. ............ 5,400 117,788
-----------
TOTAL RESTAURANT/LODGING............. 356,757
-----------
RETAIL -- 4.6%
Abercrombie & Fitch Co., Class A*.... 4,000 192,000
Hertz Corp........................... 2,400 148,800
OfficeMax, Inc....................... 4,300 51,600
Ross Stores, Inc. ................... 4,200 211,575
Tiffany & Co., Inc. ................. 900 86,850
TJX Cos., Inc. ...................... 2,600 86,613
-----------
TOTAL RETAIL......................... 777,438
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
RETAIL -- FOOD & DRUG -- 0.1%
Hannaford Brothers Co. .............. 300 $ 16,050
-----------
SEMI CONDUCTORS/INSTRUMENTATION -- 7.6%
Altera Corp.*........................ 6,200 228,238
Lattice Semiconductor Corp.*......... 1,900 118,275
Linear Technology Corp.*............. 5,700 383,325
PMC-Sierra, Inc.*.................... 1,900 111,981
Teradyne, Inc. ...................... 2,200 157,850
Xilinx, Inc.*........................ 4,800 274,800
-----------
TOTAL SEMI
CONDUCTORS/INSTRUMENTATION......... 1,274,469
-----------
TELECOMMUNICATIONS -- 4.2%
ADC Telecommunications, Inc.*........ 1,200 54,675
CenturyTel, Inc. .................... 3,250 129,188
QUALCOMM, Inc.*...................... 3,600 516,600
-----------
TOTAL TELECOMMUNICATIONS............. 700,463
-----------
TRANSPORTATION -- 1.2%
CNF Transportation, Inc. ............ 1,200 46,050
US Freightways Corp. ................ 3,300 152,831
-----------
TOTAL TRANSPORTATION................. 198,881
-----------
UTILITIES -- ELECTRIC -- 7.0%
Allegheny Energy, Inc. .............. 6,300 201,994
BEC Energy*.......................... 3,300 136,125
Conectiv, Inc. ...................... 7,300 178,394
DQE, Inc. ........................... 3,500 140,438
Energy East Corp. ................... 8,700 226,200
Northern States Power Co.*........... 6,200 149,963
Public Service Co. of New Mexico..... 7,500 149,063
-----------
TOTAL UTILITIES -- ELECTRIC.............. 1,182,177
-----------
UTILITIES -- GAS & PIPELINE -- 2.0%
El Paso Energy Corp. ................ 7,000 246,313
Keyspan Corp.*....................... 3,500 92,312
-----------
TOTAL UTILITIES -- GAS & PIPELINE.... 338,625
-----------
UTILITIES -- TELEPHONE -- 0.3%
Cincinnati Bell, Inc.*............... 2,000 49,875
-----------
TOTAL COMMON STOCK
(COST $14,140,312)..................... 16,667,115
-----------
TOTAL INVESTMENTS -- 99.0%
(COST $14,140,312)..................... 16,667,115
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 1.0%.................... 168,841
-----------
NET ASSETS -- 100.0%..................... $16,835,956
===========
</TABLE>
- --------------------------------------------------------------------------------
* Non-incoming producing security.
See Notes to Financial Statements.
12
<PAGE> 14
AGGRESSIVE GROWTH FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCK -- 100.3%
AEROSPACE -- 0.9%
Alliant Techsystems, Inc.*............ 1,100 $ 95,150
-----------
AIRLINES -- 0.4%
Comair Holdings, Inc.................. 2,350 48,909
-----------
APPAREL/TEXTILE -- 1.8%
Burlington Industries, Inc.*.......... 7,300 66,156
Kellwood Co........................... 2,600 70,525
Quicksilver, Inc...................... 2,300 59,944
-----------
TOTAL APPAREL/TEXTILE................. 196,625
-----------
AUTOMOTIVE -- 1.6%
Gentex Corp.*......................... 2,600 72,800
Tower Automotive, Inc................. 4,100 104,294
-----------
TOTAL AUTOMOTIVE...................... 177,094
-----------
BANKS/SAVINGS & LOANS -- 7.2%
Astoria Financial Corp................ 3,500 153,781
Cullen/Frost Bankers, Inc............. 6,200 170,887
FirstFed Financial Corp.*............. 6,900 132,825
Hudson United Bancorp................. 4,500 137,812
Queens County Bancorp................. 2,800 90,650
Trustmark Corp........................ 4,400 100,650
-----------
TOTAL BANKS/SAVINGS & LOANS........... 786,605
-----------
BEVERAGES -- 0.9%
Canandaigua Brands, Inc., Class A*.... 1,700 89,144
-----------
BUILDING RELATED/APPLIANCE -- 6.7%
AptarGroup, Inc....................... 4,700 141,000
Astec Industries, Inc................. 1,700 69,275
Centex Construction Products, Inc..... 2,000 68,250
Hughes Supply, Inc.................... 1,000 29,687
M.D.C. Holdings, Inc.................. 5,500 118,250
Mohawk Industries, Inc.*.............. 2,500 75,937
Ryland Group, Inc.*................... 4,800 142,500
Southdown, Inc........................ 1,400 89,950
-----------
TOTAL BUILDING RELATED/APPLIANCE...... 734,849
-----------
CHEMICALS -- 2.9%
Cytec Industries, Inc.*............... 3,100 98,812
GenCorp, Inc.......................... 2,300 58,075
Scotts Co. Class A*................... 3,300 157,162
-----------
TOTAL CHEMICALS....................... 314,049
-----------
COMMERCIAL SERVICES -- 8.6%
ADVO, Inc.*........................... 2,700 56,025
Central Parking Corp.................. 500 17,125
Interim Services, Inc.*............... 3,900 80,437
Lason Holdings, Inc.*................. 1,900 94,287
Macromedia, Inc.*..................... 3,100 109,275
MedQuist, Inc.*....................... 3,500 153,125
Mercury Interactive Corp.*............ 3,400 120,275
NCO Group, Inc.*...................... 1,700 64,600
Plexus Corp.*......................... 3,300 99,413
Valassis Communications, Inc.*........ 3,900 142,837
-----------
TOTAL COMMERCIAL SERVICES............. 937,399
-----------
COMPUTER SOFTWARE & SERVICES -- 7.4%
Affiliated Computer Services, Inc.*... 1,900 96,187
American Management Systems, Inc.*.... 4,000 128,250
CIBER, Inc.*.......................... 4,500 86,062
Electronics for Imaging, Inc.*........ 1,600 82,200
FactSet Research Systems, Inc......... 1,100 62,287
Micros Systems, Inc.*................. 2,200 74,800
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
National Data Corp.................... 1,400 $ 59,850
National Computer Systems, Inc........ 2,600 87,750
Rational Software Corp.*.............. 1,800 59,287
Sterling Software, Inc.*.............. 2,800 74,725
-----------
TOTAL COMPUTER SOFTWARE & SERVICES.... 811,398
-----------
ENERGY RELATED -- 1.5%
Newfield Exploration Co.*............. 3,400 96,687
Offshore Logistics, Inc.*............. 6,200 68,975
-----------
TOTAL ENERGY RELATED.................. 165,662
-----------
ENTERTAINMENT -- 1.3%
Metro Networks, Inc.*................. 1,300 69,388
Polaris Industries, Inc............... 1,700 73,950
-----------
TOTAL ENTERTAINMENT................... 143,338
-----------
FINANCIAL SERVICES -- 4.6%
AmeriCredit Corp.*.................... 6,300 100,800
Delphi Financial Group, Inc. Class
A*.................................. 2,084 74,764
Legg Mason, Inc....................... 3,700 142,450
Metris Companies, Inc................. 1,600 65,200
Radian Group Inc...................... 2,400 117,150
-----------
TOTAL FINANCIAL SERVICES.............. 500,364
-----------
FOODS -- 1.6%
Ralcorp Holdings, Inc.*............... 3,200 51,400
Smithfield Foods, Inc.*............... 3,800 127,063
-----------
TOTAL FOODS........................... 178,463
-----------
HOSPITAL MANAGEMENT -- 1.4%
Universal Health Services, Inc. Class
B*.................................. 3,100 148,025
-----------
HOSPITAL SUPPLY -- 4.1%
Bindley Western Industries, Inc.*..... 3,200 73,800
Owens & Minor, Inc.................... 5,700 62,700
Patterson Dental Co.*................. 2,500 86,875
VISIX, Inc.*.......................... 2,900 229,644
-----------
TOTAL HOSPITAL SUPPLY................. 453,019
-----------
INSURANCE -- 2.6%
Enhance Financial Services Group,
Inc................................. 2,500 49,375
Fidelity National Financial, Inc.*.... 2,670 56,070
Frontier Insurance Group, Inc......... 4,500 69,188
Gallagher (Arthur J.) & Co............ 1,200 59,400
Renaissancere Holdings Limited........ 1,500 55,500
-----------
TOTAL INSURANCE....................... 289,533
-----------
MACHINERY -- 4.2%
JLG Industries, Inc................... 5,900 120,213
Manitowoc Co., Inc.................... 3,900 162,338
Terex Corp.*.......................... 3,500 106,531
Toro Co............................... 1,800 70,875
-----------
TOTAL MACHINERY....................... 459,957
-----------
MANUFACTURING -- 1.6%
Clarcor, Inc.*........................ 3,000 57,562
Cognex Corp........................... 3,900 123,094
-----------
TOTAL MANUFACTURING................... 180,656
-----------
METAL PROCESSORS & FABRICATION -- 1.4%
Intermet Corp......................... 4,300 65,038
Quanex Corp........................... 3,200 91,200
-----------
TOTAL METAL PROCESSORS &
FABRICATION......................... 156,238
-----------
METALS & MINING -- 0.6%
Stillwater Mining Co.*................ 2,150 70,278
-----------
</TABLE>
13
<PAGE> 15
AGGRESSIVE GROWTH FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
MULTI-INDUSTRY -- 0.6%
Mascotech, Inc........................ 4,100 $ 69,444
-----------
OIL (DOMESTIC) -- 1.4%
Devon Energy Corp..................... 2,400 85,800
Stone Energy Corp.*................... 1,700 72,038
-----------
TOTAL OIL (DOMESTIC).................. 157,838
-----------
OIL -- FIELD SERVICES -- 0.4%
Oceaneering International, Inc.*...... 2,600 41,925
-----------
PHARMACEUTICALS -- 3.8%
Alpharma, Inc. Class A*............... 3,200 113,800
Medimmune, Inc.*...................... 1,800 121,950
Priority Healthcare Corp., Class B*... 1,477 50,957
Roberts Pharmaceutical Corp.*......... 3,600 87,300
Watson Pharmaceuticals, Inc.*......... 1,300 45,581
-----------
TOTAL PHARMACEUTICALS................. 419,588
-----------
PRINTING & PUBLISHING -- 1.5%
Consolidated Graphics, Inc.*.......... 1,800 90,000
World Color Press, Inc.*.............. 2,900 79,750
-----------
TOTAL PRINTING & PUBLISHING........... 169,750
-----------
RESTAURANT/LODGING -- 3.6%
CEC Entertainment, Inc.*.............. 3,400 143,650
Foodmaker, Inc.*...................... 4,000 113,500
MeriStar Hospitality Corp.*........... 2,700 60,581
Ruby Tuesday, Inc..................... 3,800 72,200
-----------
TOTAL RESTAURANT/LODGING.............. 389,931
-----------
RETAIL -- 7.4%
Ann Taylor Stores Corp.*.............. 2,900 130,500
Cato Corp. Class A.................... 3,800 44,175
Hollywood Entertainment Corp.*........ 4,400 86,075
Linens 'n Things, Inc.*............... 2,200 96,250
Musicland Stores Corp.*............... 6,100 54,137
Rent-A-Center Inc*.................... 2,600 62,400
Ross Stores, Inc...................... 3,500 176,313
ShopKo Stores, Inc.................... 1,200 43,500
Zale Corp.*........................... 3,000 120,000
-----------
TOTAL RETAIL.......................... 813,350
-----------
RETAIL FOOD/DRUG -- 1.0%
Casey's General Stores, Inc........... 2,500 37,500
Whole Foods Market, Inc............... 1,400 67,288
-----------
TOTAL RETAIL FOOD/DRUG................ 104,788
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
SEMI CONDUCTORS/INSTRUMENTATION -- 6.8%
Dallas Semiconductor Corp............. 1,300 $ 65,650
Electro Scientific Industries,
Inc.*............................... 2,300 96,097
Lattice Semiconductor Corp.*.......... 1,700 105,825
Novellus Systems, Inc.*............... 1,900 129,675
PMC-Sierra, Inc.*..................... 1,500 88,406
Powerwave Technologies, Inc........... 2,100 67,725
Unitrode Corp......................... 3,400 97,538
Vitesse Semiconductor Corp.*.......... 1,400 94,413
-----------
TOTAL SEMI
CONDUCTORS/INSTRUMENTATION.......... 745,329
-----------
TELECOMMUNICATIONS -- 3.4%
CommScope, Inc........................ 4,300 132,225
InterVoice, Inc.*..................... 5,200 75,075
TALK.com, Inc.*....................... 3,000 33,750
Xircom, Inc.*......................... 4,400 132,275
-----------
TOTAL TELECOMMUNICATIONS.............. 373,325
-----------
TRANSPORTATION -- 2.5%
M.S. Carriers, Inc.*.................. 3,800 112,694
Rollins Truck Leasing................. 500 5,563
USFreightways Corp.................... 3,300 152,831
-----------
TOTAL TRANSPORTATION.................. 271,088
-----------
UTILITIES -- ELECTRIC -- 2.6%
Calpine Corp.*........................ 1,700 91,800
TNP Enterprises, Inc.................. 3,300 119,625
United Illuminating Co................ 1,700 72,144
-----------
TOTAL UTILITIES -- ELECTRIC........... 283,569
-----------
UTILITIES -- GAS & PIPELINE -- 2.0%
Energen Corp.......................... 4,400 81,950
Piedmont Natural Gas Co., Inc......... 1,400 43,575
Southwest Gas Corp.................... 3,100 88,738
-----------
TOTAL UTILITIES -- GAS & PIPELINE..... 214,263
-----------
TOTAL INVESTMENTS -- 100.3% (COST
$9,662,453)............................. 10,990,943
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (0.3%)........................ (35,775)
-----------
NET ASSETS -- 100.0%...................... $10,955,168
===========
</TABLE>
- --------------------------------------------------------------------------------
* Non-income producing security.
See Notes to Financial Statements.
14
<PAGE> 16
INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
COMMON STOCK -- 92.4%
AUSTRALIA -- 2.9%
Australia & New Zealand Banking Group
Ltd. .............................. 12,907 $ 94,909
Broken Hill Proprietary Co. Ltd. .... 6,767 78,387
New Corp., Ltd. ..................... 8,700 74,230
Pasminco, Ltd. ...................... 50,454 55,706
Telstra Corp., Ltd. ................. 7,591 43,498
-----------
TOTAL AUSTRALIA...................... 346,730
-----------
BRAZIL -- 1.3%
Companhia Cervejaria Brahma.......... 51,700 28,461
Embartel Participacoes SA ADR........ 2,000 27,750
Petroleo Brasileiro SA............... 269,500 41,498
Telebras ADR......................... 400 25
Telecomunicacoes Brasileiras SA ADR
Pfd.*.............................. 400 36,075
Telesp Participacoes SA ADR.......... 1,000 22,875
-----------
TOTAL BRAZIL......................... 156,684
-----------
CANADA -- 2.7%
Alcan Aluminium Ltd. ................ 3,400 107,395
Canadian Imperial Bank............... 3,500 82,767
Canadian National Railway Co. ....... 1,300 87,100
Newbridge Networks Corp. ............ 1,400 40,674
-----------
TOTAL CANADA......................... 317,936
-----------
DENMARK -- 0.7%
Unidanmark A/S....................... 1,200 80,091
-----------
FINLAND -- 2.2%
Nokia AB Oyj......................... 2,321 203,454
UPM-Kymmene Oyj...................... 2,100 60,205
-----------
TOTAL FINLAND........................ 263,659
-----------
FRANCE -- 13.0%
Accor SA............................. 800 200,891
Alcatel Alsthom...................... 520 73,199
Alstom............................... 1,100 34,599
Axa-UAP.............................. 770 93,939
Banque Nationale de Paris............ 902 75,160
Compagnie de Saint Gobain............ 600 95,599
Compagnie Financiere de Paribas...... 1,520 170,390
Compagnie Generale des Etablissements
Michelin........................... 2,200 90,003
Elf Aquitaine........................ 800 117,400
Etablissements Economiques du Casino
Guichard-Perrachon SA.............. 360 31,557
Societe Generale..................... 600 105,746
Suez Lyonnaise des Eaux.............. 800 144,295
Total SA............................. 1,450 187,067
Vivendi SA........................... 1,650 133,660
-----------
TOTAL FRANCE......................... 1,553,505
-----------
GERMANY -- 9.2%
Allianz AG........................... 300 83,842
Bayer AG............................. 3,510 146,057
DaimlerChrysler AG................... 1,290 112,679
Deutsche Bank AG..................... 1,000 60,948
Hoechst AG........................... 3,040 137,002
Mannesmann AG........................ 1,250 186,917
Muenchener Rueckversicherungs-
Gesellschaft AG.................... 500 94,206
Siemens AG........................... 2,280 175,877
VEBA AG.............................. 1,761 103,879
-----------
TOTAL GERMANY........................ 1,101,407
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
HONG KONG -- 1.4%
Cheung Kong Holdings Ltd. ........... 8,000 $ 71,147
China Telecom (Hong Kong), Ltd. ..... 9,300 25,831
China Telecom (Hong Kong), Ltd. ADR.. 400 22,800
New World Development Co., Ltd. ..... 11,000 32,963
Sun Hung Kai Properties.............. 2,000 18,238
-----------
TOTAL HONG KONG...................... 170,979
-----------
HUNGARY -- 0.0%+
Magyar Tavkozlesi Rt ADR............. 200 5,500
-----------
IRELAND -- 0.9%
Allied Irish Banks PLC............... 8,462 111,244
-----------
ITALY -- 1.5%
Credito Italiano SPA................. 9,400 41,296
Telecom Italia SPA................... 13,800 143,454
-----------
TOTAL ITALY.......................... 184,750
-----------
JAPAN -- 16.2%
Bank of Tokyo -- Mitsubishi, Ltd. ... 6,000 85,412
Bridgestone Corp. ................... 1,000 30,239
Dai Nippon Printing Co., Ltd. ....... 4,000 63,948
Eisai Co., Ltd. ..................... 3,000 59,115
Fuji Machine Manufacturing Co. ...... 1,000 30,817
Fujisawa Pharmaceutical Co., Ltd. ... 5,000 81,381
Fujitsu Ltd. ........................ 3,000 60,354
Hitachi Ltd. ........................ 11,000 103,151
Kao Corp. ........................... 2,000 56,182
Mabuchi Motor........................ 400 37,179
Matsumotokiyoshi..................... 2,300 137,769
Matsushita Communication Industrial
Co., Ltd. ......................... 600 42,880
Matsushita Electric Industrial Co.,
Ltd. .............................. 2,000 38,831
Nikko Securities Co., Ltd. .......... 7,000 45,168
Nippon Telegraph & Telephone
Corp. ............................. 10,000 116,494
NTT DoCoMo........................... 5,000 67,748
Olympus Optical Co., Ltd. ........... 8,000 118,246
Sharp Corp. ......................... 6,000 70,888
Sony Corp. .......................... 1,900 204,856
Takeda Chemical Industries........... 2,000 92,700
Takefuji Corp. ...................... 1,900 196,379
Tokyo Style Co., Ltd. ............... 3,000 32,222
Toshiba Corp. ....................... 17,000 121,212
Yamanouchi Pharmaceutical Co.,
Ltd. .............................. 1,000 38,253
-----------
TOTAL JAPAN.......................... 1,931,424
-----------
KOREA -- 0.0%+
SK Telecom Co., Ltd. ADR............. 47 796
-----------
MEXICO -- 0.9%
Fomento Economico Mexicano SA de CV
ADR................................ 500 19,937
Grupo Televisa GDR................... 800 35,850
Panamerican Beverages, Inc. ADR...... 1,000 23,812
Telefonos de Mexico SA ADR........... 400 32,325
-----------
TOTAL MEXICO......................... 111,924
-----------
</TABLE>
15
<PAGE> 17
INTERNATIONAL FUND
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
NETHERLANDS -- 8.4%
Gucci Group NV....................... 2,100 $ 147,000
ING Groep NV......................... 2,838 153,654
Koninklijke Ahold NV................. 3,190 109,877
Koninklijke KPN NV................... 1,421 66,677
Philips Electronics NV............... 2,392 235,949
Royal Dutch Petroleum Co. ........... 1,300 76,149
Unilever NV.......................... 2,966 199,889
Unilever NV Cumulative Preferred..... 2,650 14,211
-----------
TOTAL NETHERLANDS.................... 1,003,406
-----------
NEW ZEALAND -- 0.3%
Telecom Corp., Ltd. ADR.............. 1,100 38,431
-----------
PHILIPPINES -- 0.2%
Metropolitan Bank & Trust Co. ....... 2,000 19,974
-----------
SINGAPORE -- 0.6%
Oversea-Chinese Banking Corp.,
Ltd. .............................. 5,000 41,704
Overseas Union Bank Ltd. ............ 6,000 28,899
-----------
TOTAL SINGAPORE...................... 70,603
-----------
SOUTH AFRICA -- 0.2%
South African Breweries Ltd. ........ 2,200 19,104
-----------
SPAIN -- 4.3%
Banco Popular........................ 1,400 100,703
Endesa SA............................ 5,500 117,296
Repsol SA............................ 3,600 73,509
Telefonica SA........................ 1,530 73,701
Telefonica SA ADR.................... 978 144,159
-----------
TOTAL SPAIN.......................... 509,368
-----------
SWEDEN -- 3.0%
Ericsson, (L.M.) Telephone Co.
Cl-B............................... 2,770 88,785
Hennes Mauritz AB.................... 2,080 51,378
Nordbanken Holding AB................ 11,750 68,689
Pharmacia & Upjohn, Inc. ............ 2,600 143,735
-----------
TOTAL SWEDEN......................... 352,587
-----------
SWITZERLAND -- 5.7%
Alusuisse Lonza Group AG............. 30 34,967
Credit Suisse Group.................. 770 133,238
Holderbank Financiere Glarus AG...... 60 70,823
Nestle SA............................ 116 209,004
Novartis AG.......................... 70 102,213
Roche Holdings AG.................... 4 41,117
Swisscom AG*......................... 220 82,787
-----------
TOTAL SWITZERLAND.................... 674,149
-----------
THAILAND -- 0.3%
Siam Commerical Bank -- Wts.......... 50,000 32,204
-----------
UNITED KINGDOM -- 16.1%
Barclays PLC......................... 3,300 96,025
BP Amoco PLC......................... 15,830 283,712
British Airways PLC.................. 4,500 31,051
British Telecommunications PLC....... 3,754 62,902
Cadbury Schweppes PLC................ 12,200 77,692
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ -----
<S> <C> <C>
Diageo PLC........................... 9,432 $ 98,498
Granada Group PLC.................... 3,009 55,826
HSBC Holdings PLC.................... 1,900 67,297
Imperial Chemical Industries PLC..... 8,000 79,067
National Westminster Bank PLC........ 6,900 146,288
Prudential Corp. PLC................. 5,700 83,919
Reckitt & Colman PLC................. 4,000 41,709
Reed International PLC............... 3,900 26,019
Scottish Power PLC................... 9,200 79,470
Siebe PLC............................ 21,200 100,336
Smith and Nephew PLC................. 13,292 40,385
Smithkline Beecham PLC............... 25,562 332,217
South African Breweries PLC.......... 600 5,136
Vodafone Group PLC................... 10,641 209,667
-----------
TOTAL UNITED KINGDOM................. 1,917,216
-----------
UNITED STATES -- 0.4%
Asia Pulp & Paper -- Wts*............ 880 2,310
Asia Pulp & Paper Co., Ltd. ADR*..... 4,400 42,350
-----------
TOTAL UNITED STATES.................. 44,660
-----------
TOTAL COMMON STOCK (COST
$9,762,625)........................ 11,018,331
-----------
</TABLE>
<TABLE>
<CAPTION>
MATURITY PAR
DATE (000)
-------- -----
<S> <C> <C> <C>
REPURCHASE AGREEMENTS -- 7.2%
Warburg Dillon Read
4.80% dated 06/30/99,
repurchase price $864,115
(collateralized by $651,000
U.S. Treasury Notes,
12.75%, 11/15/10, market
value $871,933) (Cost
$864,000)................... 07/01/99 $864 864,000
-----------
TOTAL INVESTMENTS -- 99.6% (COST
$10,626,625)............................ 11,882,331
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.4%..................... 45,278
-----------
NET ASSETS -- 100.0%...................... $11,927,609
===========
</TABLE>
Foreign currency exchange contracts outstanding at June 30, 1999:
<TABLE>
<CAPTION>
VALUE AT UNREALIZED
FORWARD FOREIGN SETTLEMENT SETTLEMENT CURRENT APPRECIATION/
CURRENCY CONTRACTS DATE DATE VALUE (DEPRECIATION)
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PURCHASE CONTRACTS:
UK Pounds 07/01/99 $ 8,535 $ 8,472 $ (63)
UK Pounds 07/02/99 35,271 34,971 (300)
UK Pounds 07/06/99 12,753 12,751 (2)
-------- -------- ------
$ 56,559 $ 56,194 $ (365)
======== ======== ======
SALE CONTRACTS:
UK Pounds 07/06/99 $ 4,542 $ 4,519 $ 23
Euro 07/02/99 51,187 51,029 158
Japanese Yen 07/15/99 273,407 265,665 7,742
-------- -------- ------
$329,136 $321,213 $7,923
======== ======== ======
</TABLE>
- --------------------------------------------------------------------------------
* Non-income producing security.
+ Amount represents less than 0.1% of net assets.
ADR -- American Depository Receipt.
See Notes to Financial Statements.
16
<PAGE> 18
PACIFIC INNOVATIONS TRUST
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET MANAGED
FUND BOND FUND
-----------------------------------
<S> <C> <C>
ASSETS
Investments in securities at value(a)..................... $4,630,782 $18,025,290
Repurchase agreements(b).................................. 1,968,000 --
Cash...................................................... 236 --
Receivable for:
Securities sold........................................ 77,096 --
Dividends and interest................................. -- 236,163
Prepaid expense........................................... 1,095 2,869
Unrealized appreciation on foreign currency exchange
contracts.............................................. -- --
---------- -----------
Total Assets...................................... 6,677,209 18,264,322
---------- -----------
LIABILITIES
Cash overdraft............................................ -- 14,328
Payable for:
Securities purchased................................... 200,850 --
Accrued investment advisory fees....................... 1,063 5,248
Accrued shareholder servicing and transfer agent
fees.................................................. 1,117 3,149
Accrued expenses....................................... 7,729 29,208
Accrued dividends...................................... 802 88,070
Fund shares redeemed................................... -- --
Unrealized depreciation on foreign currency exchange
contracts.............................................. -- --
---------- -----------
Total Liabilities................................. 211,561 140,003
---------- -----------
Net Assets.................................................. $6,465,648 $18,124,319
========== ===========
COMPONENTS OF NET ASSETS
Common stock (unlimited number of shares authorized, $.001
par value per share)...................................... $ 6,466 $ 1,827
Additional paid-in capital.................................. 6,459,182 18,460,510
Undistributed net investment income (loss).................. -- (1)
Accumulated net realized gain (loss) on investments,
futures, and foreign currency transactions................ -- (7,536)
Accumulated net unrealized appreciation (depreciation) on
investments, futures, foreign currency transactions, and
forward currency contracts................................ -- (330,481)
---------- -----------
Net Assets.................................................. $6,465,648 $18,124,319
========== ===========
Shares outstanding.......................................... 6,465,648 1,827,405
Net asset value, offering and redemption price per share.... $ 1.00 $ 9.92
========== ===========
(a) Cost:................................................... $4,630,782 $18,355,771
========== ===========
(b) Cost:................................................... $1,968,000 $ --
========== ===========
</TABLE>
See Notes to Financial Statements.
17
<PAGE> 19
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL
INCOME BLUE CHIP MID-CAP AGGRESSIVE INTERNATIONAL
FUND FUND EQUITY FUND GROWTH FUND FUND
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$27,293,263 $39,346,358 $16,667,115 $10,990,943 $11,018,331
-- -- -- -- 864,000
4,500 -- -- -- 521
-- -- 352,893 -- 202,935
111,289 38,407 7,041 3,648 42,947
-- 5,964 2,201 1,345 --
-- -- -- -- 7,923
----------- ----------- ----------- ----------- -----------
27,409,052 39,390,729 17,029,250 10,995,936 12,136,657
----------- ----------- ----------- ----------- -----------
-- -- 75,023 17,916 --
103,181 -- 81,819 -- 137,797
10,132 15,771 6,894 5,118 6,273
4,625 6,494 2,839 1,822 2,058
38,173 64,097 26,719 15,912 62,555
-- -- -- -- --
-- -- -- -- --
-- -- -- -- 365
----------- ----------- ----------- ----------- -----------
156,111 86,362 193,294 40,768 209,048
----------- ----------- ----------- ----------- -----------
$27,252,941 $39,304,367 $16,835,956 $10,955,168 $11,927,609
=========== =========== =========== =========== ===========
$ 2,149 $ 2,308 $ 1,097 $ 1,017 $ 989
23,528,676 27,409,934 12,306,238 10,760,124 10,196,035
409,679 73,108 17,097 (14,025) 73,728
477,299 2,576,951 1,984,721 (1,120,438) 403,554
2,835,138 9,242,066 2,526,803 1,328,490 1,253,303
----------- ----------- ----------- ----------- -----------
$27,252,941 $39,304,367 $16,835,956 $10,955,168 $11,927,609
=========== =========== =========== =========== ===========
2,148,073 2,307,900 1,097,342 1,017,199 988,540
$ 12.69 $ 17.03 $ 15.34 $ 10.77 $ 12.07
=========== =========== =========== =========== ===========
$24,458,125 $30,104,292 $14,140,312 $ 9,662,453 $ 9,762,625
=========== =========== =========== =========== ===========
$ -- $ -- $ -- $ -- $ 864,000
=========== =========== =========== =========== ===========
</TABLE>
18
<PAGE> 20
PACIFIC INNOVATIONS TRUST
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET MANAGED BOND
FUND FUND
------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest.................................................. $161,310 $ 549,219
Dividends................................................. -- --
Less foreign withholding taxes......................... -- --
-------- ---------
Total Investment Income........................... 161,310 549,219
-------- ---------
EXPENSES
Investment advisory fees.................................. 6,472 31,952
Shareholder servicing fees................................ 5,178 14,607
Accounting fees........................................... 2,427 6,847
Custodian fees............................................ 14,922 7,065
Professional fees......................................... 5,302 15,433
Reports to shareholders................................... 833 4,615
Trustees' fees and expenses............................... 2,333 6,026
Insurance fees............................................ 614 1,767
Miscellaneous expenses.................................... 3,827 10,420
-------- ---------
Total Expenses.................................... 41,908 98,732
Less: Advisory fee waivers and expense
reimbursements.................................. (22,492) (30,263)
-------- ---------
Net Expenses...................................... 19,416 68,469
-------- ---------
Net Investment Income (Loss)................................ 141,894 480,750
-------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on:
Investments, futures, and foreign currency transactions... -- (4,911)
Net change in unrealized appreciation (depreciation) on
investments, futures, foreign currency transactions, and
forward currency contracts................................ -- (619,770)
-------- ---------
Net Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency Transactions............................. -- (624,681)
-------- ---------
Net Increase (Decrease) in Net Assets from Operations....... $141,894 $(143,931)
======== =========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
19
<PAGE> 21
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL
INCOME BLUE CHIP MID-CAP AGGRESSIVE INTERNATIONAL
FUND FUND EQUITY FUND GROWTH FUND FUND
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 236,743 $ 13,529 $ 7,863 $ 3,876 $ 15,910
287,489 209,691 83,170 34,226 138,100
-- -- -- -- (3,652)
---------- ---------- ---------- --------- ----------
524,232 223,220 91,033 38,102 150,358
---------- ---------- ---------- --------- ----------
60,568 93,782 40,128 29,859 36,718
21,067 29,422 12,589 8,097 9,180
9,875 13,792 5,901 3,796 4,303
8,414 10,089 11,864 3,000 69,432
21,454 30,443 12,676 7,738 8,974
6,422 9,657 3,618 1,866 2,254
8,461 11,174 4,930 3,265 3,580
2,569 3,463 1,812 1,293 1,302
15,312 22,544 9,013 5,867 6,656
---------- ---------- ---------- --------- ----------
154,142 224,366 102,531 64,781 142,399
(39,589) (51,513) (28,570) (12,654) (71,257)
---------- ---------- ---------- --------- ----------
114,553 172,853 73,961 52,127 71,142
---------- ---------- ---------- --------- ----------
409,679 50,367 17,072 (14,025) 79,216
---------- ---------- ---------- --------- ----------
1,307,436 2,560,221 1,017,236 (661,678) 1,079,002
881,145 1,293,629 (319,138) 913,784 102,273
---------- ---------- ---------- --------- ----------
2,188,581 3,853,850 698,098 252,106 1,181,275
---------- ---------- ---------- --------- ----------
$2,598,260 $3,904,217 $ 715,170 $ 238,081 $1,260,491
========== ========== ========== ========= ==========
</TABLE>
- --------------------------------------------------------------------------------
20
<PAGE> 22
PACIFIC INNOVATIONS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET FUND MANAGED BOND FUND CAPITAL INCOME FUND
------------------------------ ------------------------------ ------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, 1999 DECEMBER 31, JUNE 30, 1999 DECEMBER 31, JUNE 30, 1999 DECEMBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998 (UNAUDITED) 1998
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income
(loss)..................... $ 141,894 $ 300,809 $ 480,750 $ 853,582 $ 409,679 $ 727,595
Net realized gain (loss) on
investments, futures, and
foreign currency
transactions............... -- -- (4,911) 43,500 1,307,436 (682,329)
Net change in unrealized
appreciation (depreciation)
on investments, futures,
foreign exchange
transactions, and forward
currency contracts......... -- -- (619,770) 130,906 881,145 1,472,926
---------- ----------- ----------- ----------- ----------- -----------
Net Increase
(Decrease) in Net
Assets from
Operations.......... 141,894 300,809 (143,931) 1,027,988 2,598,260 1,518,192
---------- ----------- ----------- ----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Distributions to shareholders
from net investment
income..................... (141,894) (300,809) (480,751) (853,607) -- (727,595)
Distributions to shareholders
from net capital gains..... -- -- -- (21,490) -- --
Distributions to shareholders
in excess of net capital
gains...................... -- -- -- -- -- --
---------- ----------- ----------- ----------- ----------- -----------
Total Dividends and
Distributions to
Shareholders........ (141,894) (300,809) (480,751) (875,097) -- (727,595)
---------- ----------- ----------- ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold.... 231,370 4,092,858 575,775 6,609,441 189,810 8,036,993
Net asset value of shares
issued in reinvestment of
dividends and
distributions.............. 141,944 300,975 392,681 875,097 -- 727,595
Cost of shares redeemed...... (687,908) (4,312,128) (683,006) (932,270) (1,572,606) (1,188,322)
---------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Net
Assets from Capital Share
Transactions............. (314,594) 81,705 285,450 6,552,268 (1,382,796) 7,576,266
---------- ----------- ----------- ----------- ----------- -----------
Total Increase
(Decrease) in Net
Assets.............. (314,594) 81,705 (339,232) 6,705,159 1,215,464 8,366,863
NET ASSETS
Beginning of Period.......... 6,780,242 6,698,537 18,463,551 11,758,392 26,037,477 17,670,614
---------- ----------- ----------- ----------- ----------- -----------
End of Period(1)............. $6,465,648 $ 6,780,242 $18,124,319 $18,463,551 $27,252,941 $26,037,477
========== =========== =========== =========== =========== ===========
SHARES ISSUED AND REDEEMED
Shares sold.................. 231,370 4,092,858 56,777 645,696 15,984 708,320
Shares issued in reinvestment
of dividends and
distributions.............. 141,944 300,975 38,840 85,546 -- 63,214
Shares redeemed.............. (687,908) (4,312,128) (67,609) (90,636) (130,102) (107,245)
---------- ----------- ----------- ----------- ----------- -----------
Net Increase
(Decrease) in Shares
Outstanding......... (314,594) 81,705 28,008 640,606 (114,118) 664,289
========== =========== =========== =========== =========== ===========
- ---------------------------------------------------------------------------------------------------------------------------------
(1) Includes undistributed net
investment income(loss) of: $ -- $ -- $ (1) $ -- $ 409,679 $ --
========== =========== =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements.
21
<PAGE> 23
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BLUE CHIP FUND MID-CAP EQUITY FUND AGGRESSIVE GROWTH FUND
------------------------------ ------------------------------ ------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, 1999 DECEMBER 31, JUNE 30, 1999 DECEMBER 31, JUNE 30, 1999 DECEMBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998 (UNAUDITED) 1998
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 50,367 $ 194,850 $ 17,072 $ 50,765 $ (14,025) $ (34,982)
2,560,221 463,907 1,017,236 1,067,593 (661,678) (354,218)
1,293,629 6,076,911 (319,138) 1,223,129 913,784 143,259
----------- ----------- ----------- ----------- ----------- -----------
3,904,217 6,735,668 715,170 2,341,487 238,081 (245,941)
----------- ----------- ----------- ----------- ----------- -----------
-- (194,641) -- (50,746) -- --
-- (308,104) -- (85,942) -- --
-- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
-- (502,745) -- (136,688) -- --
----------- ----------- ----------- ----------- ----------- -----------
1,237,203 10,719,035 187,408 3,642,086 137,102 2,377,397
-- 502,744 -- 136,687 -- --
(1,414,628) (1,787,588) (556,336) (642,239) (463,891) (492,913)
----------- ----------- ----------- ----------- ----------- -----------
(177,425) 9,434,191 (368,928) 3,136,534 (326,789) 1,884,484
----------- ----------- ----------- ----------- ----------- -----------
3,726,792 15,667,114 346,242 5,341,333 (88,708) 1,638,543
35,577,575 19,910,461 16,489,714 11,148,381 11,043,876 9,405,333
----------- ----------- ----------- ----------- ----------- -----------
$ 39,304,367 $35,577,575 $16,835,956 $16,489,714 $10,955,168 $11,043,876
=========== =========== =========== =========== =========== ===========
77,536 789,296 13,305 282,273 14,231 223,052
-- 34,295 -- 10,106 -- --
(88,957) (130,461) (38,409) (51,448) (46,924) (51,520)
----------- ----------- ----------- ----------- ----------- -----------
(11,421) 693,130 (25,104) 240,931 (32,693) 171,532
=========== =========== =========== =========== =========== ===========
- ----------------------------------------------------------------------------------------------------
$ 73,108 $ 22,741 $ 17,097 $ 25 $ (14,025) $ --
=========== =========== =========== =========== =========== ===========
<CAPTION>
INTERNATIONAL FUND
------------------------------
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JUNE 30, 1999 DECEMBER 31,
(UNAUDITED) 1998
------------------------------
<S> <C> <C>
$ 79,216 $ 98,514
1,079,002 (476,769)
102,273 1,392,491
----------- -----------
1,260,491 1,014,236
----------- -----------
-- (98,849)
-- --
-- --
----------- -----------
-- (98,849)
----------- -----------
74,803 1,650,092
-- 98,849
(480,704) (627,340)
----------- -----------
(405,901) 1,121,601
----------- -----------
854,590 2,036,988
11,073,019 9,036,031
----------- -----------
$11,927,609 $11,073,019
=========== ===========
6,680 153,771
-- 9,135
(41,595) (61,956)
----------- -----------
(34,915) 100,950
=========== ===========
- --------------------------------------------------
$ 73,728 $ (5,488)
=========== ===========
</TABLE>
22
<PAGE> 24
PACIFIC INNOVATIONS TRUST
MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR FOR THE PERIOD
MONTHS ENDED ENDED ENDED
JUNE 30, 1999 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997(1)
---------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, beginning of period.................... $ 1.00 $ 1.00 $ 1.00
------ ------ ------
Net investment income................................... 0.02 0.05 0.04
Net realized and unrealized gain on investments......... -- -- --
------ ------ ------
Total from investment operations........................ 0.02 0.05 0.04
------ ------ ------
Dividends from net investment income.................... (0.02) (0.05) (0.04)
------ ------ ------
Net Asset Value, end of period.......................... $ 1.00 $ 1.00 $ 1.00
====== ====== ======
Total return............................................ 2.20%** 5.07% 4.22%**
====== ====== ======
Net assets, end of period (in thousands)................ $6,466 $6,780 $6,699
====== ====== ======
Ratio of expenses to average net assets:
After fee waivers and reimbursements.................. 0.60%* 0.60% 0.60%*
====== ====== ======
Before fee waivers and reimbursements................. 1.30%* 1.37% 1.47%*
====== ====== ======
Ratio of net investment income to average net assets:
After fee waivers and reimbursements.................. 4.38%* 4.95% 5.00%*
====== ====== ======
Before fee waivers and reimbursements................. 3.68%* 4.18% 4.13%*
====== ====== ======
</TABLE>
- --------------------------------------------------------------------------------
(1) Commenced operations on March 1, 1997.
* Annualized.
** Not annualized.
See Notes to Financial Statements.
23
<PAGE> 25
PACIFIC INNOVATIONS TRUST
MANAGED BOND FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR FOR THE PERIOD
MONTHS ENDED ENDED ENDED
JUNE 30, 1999 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997(1)
---------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, beginning of period.................... $ 10.26 $ 10.15 $ 10.00
-------- ------- -------
Net investment income................................... 0.26 0.55 0.49
Net realized and unrealized gain (loss) on
investments........................................... (0.34) 0.12 0.15
-------- ------- -------
Total from investment operations........................ (0.08) 0.67 0.64
-------- ------- -------
Dividends from net investment income.................... (0.26) (0.55) (0.49)
Distributions from net capital gains.................... -- (0.01) --
-------- ------- -------
Total distributions..................................... (0.26) (0.56) (0.49)
-------- ------- -------
Net Asset Value, end of period.......................... $ 9.92 $ 10.26 $ 10.15
======== ======= =======
Total return............................................ (0.74)%** 6.89% 6.59%**
======== ======= =======
Net assets, end of period (in thousands)................ $ 18,124 $18,464 $11,758
======== ======= =======
Ratio of expenses to average net assets:
After fee waivers and reimbursements.................. 0.75%* 0.75% 0.75%*
======== ======= =======
Before fee waivers and reimbursements................. 1.08%* 1.20% 1.39%*
======== ======= =======
Ratio of net investment income to average net assets:
After fee waivers and reimbursements.................. 5.27%* 5.52% 6.12%*
======== ======= =======
Before fee waivers and reimbursements................. 4.94%* 5.07% 5.48%*
======== ======= =======
Portfolio turnover rate................................. 27.46% 43.71% 104.36%
======== ======= =======
</TABLE>
- --------------------------------------------------------------------------------
(1) Commenced operations on March 1, 1997.
* Annualized.
** Not annualized.
See Notes to Financial Statements.
24
<PAGE> 26
PACIFIC INNOVATIONS TRUST
CAPITAL INCOME FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR FOR THE PERIOD
MONTHS ENDED ENDED ENDED
JUNE 30, 1999 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997(1)
---------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, beginning of period............ $ 11.51 $ 11.06 $ 10.00
------- ------- -------
Net investment income........................... 0.19 0.33 0.17
Net realized and unrealized gain on
investments................................... 0.99 0.45 1.30
------- ------- -------
Total from investment operations................ 1.18 0.78 1.47
------- ------- -------
Dividends from net investment income............ -- (0.33) (0.17)
Distributions from net capital gains............ -- -- (0.14)
Distributions in excess of net capital gains.... -- -- (0.10)
------- ------- -------
Total distributions............................. -- (0.33) (0.41)
------- ------- -------
Net Asset Value, end of period.................. $ 12.69 $ 11.51 $ 11.06
======= ======= =======
Total return.................................... 10.25%** 7.06% 14.75%**
======= ======= =======
Net assets, end of period (in thousands)........ $27,253 $26,037 $17,671
======= ======= =======
Ratio of expenses to average net assets:
After fee waivers and reimbursements.......... 0.87%* 0.87% 0.87%*
======= ======= =======
Before fee waivers and reimbursements......... 1.17%* 1.30% 1.52%*
======= ======= =======
Ratio of net investment income to average net
assets:
After fee waivers and reimbursements.......... 3.11%* 3.33% 3.24%*
======= ======= =======
Before fee waivers and reimbursements......... 2.81%* 2.90% 2.59%*
======= ======= =======
Portfolio turnover rate......................... 28.80% 56.90% 44.98%
======= ======= =======
</TABLE>
- --------------------------------------------------------------------------------
(1) Commenced operations on March 1, 1997.
* Annualized.
** Not annualized.
See Notes to Financial Statements.
25
<PAGE> 27
PACIFIC INNOVATIONS TRUST
BLUE CHIP FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR FOR THE PERIOD
MONTHS ENDED ENDED ENDED
JUNE 30, 1999 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997(1)
---------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, beginning of period.................... $ 15.34 $ 12.24 $ 10.00
-------- ------- -------
Net investment income (loss)............................ (0.01) 0.08 0.06
Net realized and unrealized gain on investments......... 1.70 3.23 2.27
-------- ------- -------
Total from investment operations........................ 1.69 3.31 2.33
-------- ------- -------
Dividends from net investment income.................... -- (0.08) (0.06)
Distributions from net capital gains.................... -- (0.13) --
Distributions in excess of net capital gains............ -- -- (0.03)
-------- ------- -------
Total distributions..................................... -- (0.21) (0.09)
-------- ------- -------
Net Asset Value, end of period.......................... $ 17.03 $ 15.34 $ 12.24
======== ======= =======
Total return............................................ 11.02%** 27.20% 23.27%**
======== ======= =======
Net assets, end of period (in thousands)................ $ 39,304 $35,578 $19,910
======== ======= =======
Ratio of expenses to average net assets:
After fee waivers and reimbursements.................. 0.94%* 0.94% 0.94%*
======== ======= =======
Before fee waivers and reimbursements................. 1.22%* 1.40% 1.53%*
======== ======= =======
Ratio of net investment income to average net assets:
After fee waivers and reimbursements.................. 0.27%* 0.70% 1.00%*
======== ======= =======
Before fee waivers and reimbursements................. (0.01)%* 0.24% 0.41%*
======== ======= =======
Portfolio turnover rate................................. 29.84% 57.70% 44.93%
======== ======= =======
</TABLE>
- --------------------------------------------------------------------------------
(1) Commenced operations on March 1, 1997.
* Annualized.
** Not annualized.
See Notes to Financial Statements.
26
<PAGE> 28
PACIFIC INNOVATIONS TRUST
MID-CAP EQUITY FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR FOR THE PERIOD
MONTHS ENDED ENDED ENDED
JUNE 30, 1999 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997(1)
---------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, beginning of period.................... $ 14.69 $ 12.65 $ 10.00
-------- -------- --------
Net investment income................................... 0.02 0.05 0.05
Net realized and unrealized gain on investments......... 0.63 2.12 2.73
-------- -------- --------
Total from investment operations........................ 0.65 2.17 2.78
-------- -------- --------
Dividends from net investment income.................... -- (0.05) (0.05)
Distributions from net capital gains.................... -- (0.08) (0.06)
Distributions in excess of net capital gains............ -- -- (0.02)
-------- -------- --------
Total distributions..................................... -- (0.13) (0.13)
-------- -------- --------
Net Asset Value, end of period.......................... $ 15.34 $ 14.69 $ 12.65
======== ======== ========
Total return............................................ 4.42%** 17.18% 27.80%**
======== ======== ========
Net assets, end of period (in thousands)................ $ 16,836 $ 16,490 $ 11,148
======== ======== ========
Ratio of expenses to average net assets:
After fee waivers and reimbursements.................. 0.94%* 0.94% 0.94%*
======== ======== ========
Before fee waivers and reimbursements................. 1.30%* 1.43% 1.62%*
======== ======== ========
Ratio of net investment income to average net assets:
After fee waivers and reimbursements.................. 0.22%* 0.38% 0.66%*
======== ======== ========
Before fee waivers and reimbursements................. (0.14)%* (0.11)% (0.02)%*
======== ======== ========
Portfolio turnover rate................................. 46.94% 95.07% 55.74%
======== ======== ========
</TABLE>
- --------------------------------------------------------------------------------
(1) Commenced operations on March 1, 1997.
* Annualized.
** Not annualized.
See Notes to Financial Statements.
27
<PAGE> 29
PACIFIC INNOVATIONS TRUST
AGGRESSIVE GROWTH FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR FOR THE PERIOD
MONTHS ENDED ENDED ENDED
JUNE 30, 1999 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997(1)
-----------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, beginning of period................... $ 10.52 $ 10.71 $ 10.00
-------- -------- --------
Net investment income (loss)........................... (0.01) (0.03) (0.03)
Net realized and unrealized gain (loss) on
investments.......................................... 0.26 (0.16) 1.76
-------- -------- --------
Total from investment operations....................... 0.25 (0.19) 1.73
-------- -------- --------
Distributions from net capital gains................... -- -- (0.92)
Distributions in excess of net capital gains........... -- -- (0.10)
-------- -------- --------
Total distributions.................................... -- -- (1.02)
-------- -------- --------
Net Asset Value, end of period......................... $ 10.77 $ 10.52 $ 10.71
======== ======== ========
Total return........................................... 2.38%** (1.77)% 17.65%**
======== ======== ========
Net assets, end of period (in thousands)............... $ 10,955 $ 11,044 $ 9,405
======== ======== ========
Ratio of expenses to average net assets:
After fee waivers and reimbursements................. 1.03%* 1.02% 1.03%*
======== ======== ========
Before fee waivers and reimbursements................ 1.28%* 1.72% 1.73%*
======== ======== ========
Ratio of net investment income to average net assets:
After fee waivers and reimbursements................. (0.28)%* (0.34)% (0.53)%*
======== ======== ========
Before fee waivers and reimbursements................ (0.53)%* (1.04)% (1.20)%*
======== ======== ========
Portfolio turnover rate................................ 44.01% 262.74% 99.05%
======== ======== ========
</TABLE>
- --------------------------------------------------------------------------------
(1) Commenced operations on March 1, 1997.
* Annualized.
** Not annualized.
See Notes to Financial Statements.
28
<PAGE> 30
PACIFIC INNOVATIONS TRUST
INTERNATIONAL FUND
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR FOR THE PERIOD
MONTHS ENDED ENDED ENDED
JUNE 30, 1999 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997(1)
-----------------------------------------------------
<S> <C> <C> <C>
Net Asset Value, beginning of period................... $ 10.82 $ 9.80 $ 10.00
------- -------- --------
Net investment income.................................. 0.08 0.10 0.09
Net realized and unrealized gain (loss) on investments
and foreign currency transactions.................... 1.17 1.02 (0.01)
------- -------- --------
Total from investment operations....................... 1.25 1.12 0.08
------- -------- --------
Dividends from net investment income................... -- (0.10) (0.09)
Distributions from net capital gains................... -- -- --
Distributions in excess of net capital gains........... -- -- (0.19)
------- -------- --------
Total distributions.................................... -- (0.10) (0.28)
------- -------- --------
Net Asset Value, end of period......................... $ 12.07 $ 10.82 $ 9.80
======= ======== ========
Total return........................................... 11.55%** 11.63% 0.56%**
======= ======== ========
Net assets, end of period (in thousands)............... $11,928 $ 11,073 $ 9,036
======= ======== ========
Ratio of expenses to average net assets:
After fee waivers and reimbursements................. 1.24%* 1.24% 1.24%*
======= ======== ========
Before fee waivers and reimbursements................ 2.48%* 3.57% 3.19%*
======= ======== ========
Ratio of net investment income to average net assets:
After fee waivers and reimbursements................. 1.38%* 0.95% 1.39%*
======= ======== ========
Before fee waivers and reimbursements................ 0.14%* (1.38)% (0.56)%*
======= ======== ========
Portfolio turnover rate................................ 64.70% 151.18% 53.23%
======= ======== ========
</TABLE>
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(1) Commenced operations on March 1, 1997.
* Annualized.
** Not annualized.
See Notes to Financial Statements.
29
<PAGE> 31
PACIFIC INNOVATIONS TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (UNAUDITED)
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1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization
Pacific Innovations Trust (the "Trust"), was organized under the laws of the
State of Delaware on September 25, 1996, as a "Delaware Business Trust". The
Trust is registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The Trust commenced operations on March
1, 1997 and operates as a series company comprising seven funds: the Money
Market Fund, Managed Bond Fund, Capital Income Fund, Blue Chip Fund, Mid-Cap
Equity Fund, Aggressive Growth Fund and International Fund.
The Trust is the funding vehicle for variable annuity contracts administered by
Pacific Life Insurance Company. Bank of America National Trust and Savings
Association, a subsidiary of Bank of America Corporation, serves as the Funds'
investment advisor. Scudder Kemper Investments, Inc. and Wellington Management
Company, LLP serve as sub-advisors to the Managed Bond Fund and the
International Fund, respectively.
On October 1, 1998, BankAmerica Corp., the Adviser's and Administrator's parent
company, completed its merger with NationsBank Corporation. The combined company
operates under the name Bank of America. Bank of America continues to serve the
Trust on substantially identical terms as described in Note 2.
The following is a summary of the significant accounting policies followed by
the Funds in the preparation of their financial statements. The policies are in
conformity with generally accepted accounting principals.
Security Valuation
Portfolio securities listed on an exchange and over the counter securities
quoted on the NASDAQ system are valued at the close of regular trading on each
business day the New York Stock Exchange ("NYSE") is open. Securities are valued
at the last sale price on the securities exchange or securities market in which
such securities are primarily traded. Securities not listed on an exchange or
securities market, or securities for which there were no transactions, are
valued at the mean between the current bid and asked prices. Fixed income
securities are valued by using market quotations, or independent pricing
services, approved by the board of directors. Any securities or other assets for
which recent market quotations are not readily available are valued as
determined in good faith by or at the direction of the Board of Trustees.
Short Term obligations which mature in sixty days or less are valued at
amortized cost. Short Term obligations with more than sixty days to maturity are
valued at current market value until the sixtieth day prior to maturity, and
thereafter are valued on an amortized cost basis based on the value on such
date.
The Money Market Fund values investments utilizing the amortized cost valuation
technique permitted in accordance with Rule 2a-7 under the Investment Company
Act of 1940, which requires the Fund to comply with certain conditions. This
technique involves valuing a portfolio security initially at its cost and
thereafter assuming a constant amortization to maturity of any discount or
premium.
Investment Transactions and Investment Income
Security transactions are accounted for on the trade date. Realized gains and
losses from security transactions are recognized on the specific identification
basis. Interest income is recorded on the accrual basis. Dividend income is
recorded on the ex-dividend date. Corporate actions, including dividends, on
foreign securities are recorded as soon as reliable information is available
from the Trust's sources. All premium and discount amortization/accretions are
determined by the effective yield method.
Foreign Currency Translation and Foreign Currency Exchange Contracts
The books and records of the Funds are maintained in U.S. dollars. All assets
and liabilities of a Fund that are initially expressed in foreign currencies are
translated into U.S. dollars each business day using the current exchange rates
determined prior to the close of the NYSE. Purchases and sales of foreign
securities and income and expenses relating to the foreign securities are
converted into U.S. dollars based upon currency exchange rates prevailing on the
respective date of such transactions. Gains and losses attributable to changes
in foreign currency exchange rates are included for finan-
30
<PAGE> 32
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cial statement purposes in the net realized gains and losses on investments and
foreign currency transactions.
A forward foreign currency exchange contract ("forward contract") is a
commitment to purchase or sell a foreign currency at a future date, at a
negotiated rate. The International Fund generally enters into forward contracts
as a hedge in connection with the purchase or sale of a security denominated in
a foreign currency. Forward contracts are valued daily based on the effective
exchange rate and unrealized appreciation or depreciation is recorded. The Fund
will realize a gain or loss upon the closing or settlement of the forward
transaction. Risks of entering into forward contracts include the potential
inability of the counter party to meet the terms of the contract, and the Fund
giving up opportunity for profit.
There are certain additional risks involved when investing in foreign securities
that are not inherent in domestic securities. These risks involve foreign
currency exchange rate fluctuations, adverse political and economic
developments, and the imposition of unfavorable foreign governmental laws and
regulations.
Futures
A futures contract is an agreement to purchase or sell a specified quantity of
an underlying instrument at a specified future date, or to make or receive a
cash payment based on the value of a securities index. During the period the
futures contract is open, changes in the value of the contract are recognized as
unrealized gains or losses by "marking to market" such contract on a daily basis
to reflect the market value of the contract at the end of each day's trading.
Such unrealized gains and losses are included in the caption "Accumulated net
unrealized appreciation (depreciation) on investment futures, foreign currency
transactions, and forward currency contracts" in the Statement of Assets and
Liabilities. A fund agrees to receive from or pay to the broker an amount of
"variation margin" which is included as a payable or receivable in the Statement
of Assets and Liabilities. When the futures contract is closed, the fund records
a realized gain or loss equal to the difference between the proceeds from (or
cost of) the closing transaction and the Fund's basis in the contract. The
International Fund has entered into futures contracts to hedge a portion of its
portfolio.
The use of futures contracts involves, to varying degrees, elements of market
risk. Risks arise from the possible imperfect correlation in movements in the
price of futures contracts, interest rates and the underlying hedged assets, and
the possible inability of counterparties to meet the terms of their contracts.
However, the Fund's activities in futures contracts are conducted through
regulated exchanges which minimize counterparty credit risks.
Dividends and Distributions to Shareholders
The Funds record dividends and distributions to shareholders on the ex-date.
Each Fund, with the exception of the Money Market Fund and the Managed Bond Fund
declare and pay dividends arising from net investment income gains on an annual
basis. Dividends from net investment income are declared and paid daily by the
Money Market Fund, and declared and paid monthly by the Managed Bond Fund.
Distributions from net realized capital gains, if any, are declared and paid on
an annual basis, for each of the Funds.
The amount of distributions from net investment income and net realized capital
gains, if any, are determined in accordance with federal income tax regulations,
which may differ from generally accepted accounting principles. Key differences
include the treatment of short-term capital gains, the deferral of post october
losses, wash sales, and the treatment of foreign currencies. To the extent that
these differences are permanent in nature, such amounts are reclassified within
the capital accounts based on their federal tax-basis treatment. Distributions
which exceed net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as distributions in
excess of net investment income or net realized capital gains. To the extent
they exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of paid-in-capital.
Repurchase Agreements
Under a repurchase agreement a Fund may acquire securities from financial
institutions, subject to the sellers agreement to repurchase such securities at
a mutually agreed upon time and price. The resale price is in excess of the
purchase price and reflects an agreed upon interest rate for the period of time
the agreement is
31
<PAGE> 33
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outstanding. The Funds' custodian takes possession of the collateral pledged for
investments in repurchase agreements on behalf of the Funds. It is the policy of
the Funds to value the underlying collateral daily on a mark to market basis to
determine that the value, including accrued interest, is at least equal to the
repurchase price. If the counter party to the agreement defaults, a Fund might
incur a loss or delay in the realization of proceeds if the value of the
collateral securing the repurchase agreement declines or incur disposition costs
in liquidating the collateral.
Use of Estimates
Management of the Funds has made certain estimates and assumptions relating to
the reporting of assets and liabilities to prepare these financial statements in
conformity with generally accepted accounting principles. Actual results could
differ from these estimates.
2. INVESTMENT MANAGEMENT AGREEMENTS, INVESTMENT SUB-ADVISORY AGREEMENTS AND
TRANSACTIONS WITH AFFILIATES
The Trust has entered into a Management Agreement with Bank of America National
Trust and Savings Association ("Manager") which provides that the Manager will
furnish each Fund with investment advisory and administrative services. The
Manager receives a fee computed daily and paid monthly based on annual rates of
0.22%, 0.37%, 0.48%, 0.53%, 0.53%, 0.61%, and 0.66% of the average daily net
assets of the Money Market Fund, Managed Bond Fund, Capital Income Fund, Blue
Chip Fund, Mid-Cap Equity Fund, Aggressive Growth Fund, and International Fund,
respectively.
The Manager has engaged Scudder Kemper Investments, Inc. and Wellington
Management Company, LLP to serve as sub-advisors for the Managed Bond Fund and
International Fund, respectively. The sub-advisors receive a fee from the
Manager computed daily and paid monthly based on an annual rate of 0.20% and
0.40% of the average daily net assets of the Managed Bond Fund and International
Fund, respectively.
The Management Agreement provides that the Manager will reimburse each Fund to
prevent its expenses from exceeding a specific percentage limit. During the
period ended June 30, 1999, the Manager reimbursed all of the Funds for expenses
pursuant to those provisions.
The Manager and Pacific Life have jointly agreed to waive fees and reimburse
Fund expenses, excluding interest, taxes, brokerage, and other portfolio
transactions costs, so that the expenses will not exceed 0.60%, 0.75%, 0.87%,
0.94%, 0.94%, 1.03%, and 1.24% of the average net assets on annual basis of the
Money Market Fund, Managed Bond Fund, Capital Income Fund, Blue Chip Fund,
Mid-Cap Equity Fund, Aggressive Growth Fund, and International Fund,
respectively.
PNC Bank, N.A. ("PNC Bank") serves as custodian for the Funds. As custodian of
the Trust's assets, PNC Bank performs a variety of custodial services including
maintaining a separate account for each Fund, holding and disbursing portfolio
securities, receiving and disbursing money, and collecting income and other
payments and distributions on account of the portfolio securities.
PFPC, Inc. ("PFPC") serves as accounting agent for the Funds. Under the
Sub-Administration and Accounting Services Agreement, PFPC has agreed to provide
certain accounting, bookkeeping, pricing, dividend distribution calculation, and
disbursing services with respect to the Trust. PNC Bank and PFPC are affiliates
of PNC Bank Corp.
Pacific Life is the transfer agent for the Trust and also provides shareholder
support services.
Certain officers and/or Trustees of the Trust are also officers and/or directors
of the sub-administrator and accounting agent. During the period ended June 30,
1999, the Trust made no direct payments to its officers or Trustees, who were
affiliates of the Manager.
3. PURCHASES AND SALES OF SECURITIES
The cost of securities purchased and proceeds from securities sold, excluding
short-term obligations, during the period ended June 30, 1999 were: $5,846,079
and $4,698,785 for Managed Bond Fund; $7,488,237 and $9,139,659 for Capital
Income Fund; $11,546,360 and $10,924,918 for Blue Chip Fund; $7,572,073 and
$6,746,538 for Mid-Cap Equity Fund; $4,494,493 and $4,723,551 for Aggressive
Growth Fund; and $6,987,876 and $7,630,896 for International Fund, respectively.
32
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4. TAX MATTERS
It is the Trust's policy to comply with the requirements of the Internal Revenue
Code pertaining to regulated investment companies and to distribute all of its
taxable income, as well as any net realized gains, to its shareholders.
Therefore, no federal income or excise tax provision has been made. Foreign
taxes have been provided for on dividend and interest income earned on foreign
investments in accordance with the applicable country's tax rates and, to the
extent unrecoverable, are recorded as a reduction of investment income.
Tax Cost of Investments
At June 30, 1999, the net unrealized appreciation or depreciation based on the
cost of investments for federal income tax purposes was as follows:
<TABLE>
<CAPTION>
TAX GROSS GROSS NET UNREALIZED
COST OF UNREALIZED UNREALIZED APPRECIATION
INVESTMENTS APPRECIATION DEPRECIATION (DEPRECIATION)
----------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Money Market Fund...... $ 6,598,782 $ 0 $ 0 $ 0
Managed Bond Fund...... 18,355,771 12,768 (343,249) (330,481)
Capital Income Fund.... 24,458,125 3,575,769 (740,631) 2,835,138
Blue Chip Fund......... 30,104,292 9,892,289 (650,223) 9,242,066
Mid-Cap Equity Fund.... 14,140,312 3,122,176 (595,373) 2,526,803
Aggressive Growth
Fund.................. 9,662,453 1,835,775 (507,285) 1,328,490
International Fund..... 10,626,625 1,531,310 (275,604) 1,255,706
</TABLE>
33
<PAGE> 35
SEMI-ANNUAL REPORT
AS OF JUNE 30, 1999
PACIFIC INNOVATIONS TRUST
PRESORTED
STANDARD
U.S. POSTAGE
PAID
PACIFIC LIFE
Pacific Life Insurance Company
Variable Annuity Department
P.O. Box 7187
Pasadena, California 91109-7187
ADDRESS SERVICE REQUESTED
