CHAIRMAN AND PRESIDENT'S LETTER
==============================================================================
To Investors in the Dean Family of Mutual Funds:
It is our pleasure to report strong performance for all three Dean Mutual Funds
from their inception on May 28, 1997 through September 30, 1997. Each fund
essentially matched or slightly exceeded its benchmark index, despite the extra
demands placed on managers over the initial structuring of the funds. We are
delighted by both the early investment results and the substantial investor
interest in each of the funds.
Please note that our reports extend only through September 30, 1997, so they do
not reflect the effects of the market correction which began in October. We
believe our next set of reports -- through March 1998 -- will provide evidence
of the special advantages our strong, value-based investment management
disciplines provide in times of volatility and market corrections.
Without a doubt, the robust market environment of this past spring and summer
provided excellent conditions in which to inaugurate the Dean Family of Mutual
Funds. It was especially favorable to the value investing approach emphasized in
these three funds. Investors were beginning to be uncomfortable with the high
stock price multiples resulting from the market's long bull run. In July,
momentum clearly shifted from the high-flying growth stocks to those in the
"value" category.
We at Dean have always worked in this value arena. The stocks we choose are
those of companies with proven track records, solid balance sheets and strong
prospects for growth; yet, they have fallen from investor favor or never
achieved it. The search for value opportunities can be a complex one. At Dean,
the depth of analysis provided by our research team plays a defining role in
this search for value and in the minimization of risk.
Our forecasting models suggest a continuation of conditions which favor downward
volatility during the months ahead. The correction may well continue. While this
can be a drag on short-term performance, downward volatility also creates
opportunities for the kind of value stock selection which characterizes our
approach in all of our Funds.
Though the performance of financial investments in recent years is not likely to
be matched again soon, the longer-term economic outlook is quite encouraging.
The growth cycle in the U.S. is capital spending-driven and has emphasized
technology. That kind of investment contributes to further productivity gains,
which, in turn, helps hold down inflation even though employment and incomes
rise as they have in recent years. The stock market has always responded well to
the happy combination of rising incomes and low inflation.
We are excited about the future of the Dean Family of Mutual Funds, and we
appreciate very much your confidence in us.
Sincerely,
/s/ Chauncey H. Dean
Chauncey H. Dean
Chairman of the Board and Chief Executive Officer
C.H. Dean & Associates, Inc.
/s/ Robert D. Dean
Robert D. Dean
President and Chief Investment Officer
C.H. Dean & Associates, Inc.
<PAGE>
SMALL CAP VALUE FUND
==============================================================================
Off To a Roaring Start
"Extremely strong performance in a robust market"-- that fairly describes
the exciting history of the Dean Small Cap Value Fund from its inception on
May 28, 1997 through September 30, 1997.
The Fund's return during those four months totaled 21.0%1 (excludes the
impact of applicable sales charges), edging out the benchmark Russell 2000
Index of 20.45%, despite expenses which trimmed the Fund's performance.
The timing of the Small Cap Value Fund's launch could hardly have been more
fortunate. It coincided with the stock market's sudden discovery that most of
the best values were in companies unknown by the market. The large-cap S&P 500
Index lagged well behind, rising 12.5% during the period.
Recipe for Success in Small Caps
The recipe for value investing is fairly straightforward: buy a well-diversified
portfolio of financially strong stocks selling at rock-bottom valuations. These
are companies with few friends in the market. Most important, these companies
trade at price multiples well below those of the overall market. Dean examines
price multiples, not only with regard to earnings (P/E), but book value,
revenues and dividends.
By conventional standards of value -- price to earnings, book value and revenue
- -- the Dean Small Cap Value Fund is among the most value-oriented of all U.S.
equity funds operating today. Its aggregate, weighted price-to-book-value ratio
is 1.2. It's aggregate trailing P/E is 12.4 and its price-to-sales ratio is less
than 30%. By way of comparison, the companies in the S&P 500 Index have an
aggregate trailing price-to-book ratio above 5.0 and an aggregate P/E ratio of
23.
Diversification: Strength in Numbers
The Dean Small Cap Value Fund is highly diversified with approximately 160
stocks. Given that kind of diversification, the Fund's high return through
September 30, 1997 speak well for the research and value selection disciplines
Dean employs.
Dean utilizes both top-down and bottom-up research approaches. For example, the
housing industry, in which the Fund has a large stake, looks strong from both
vantage points. The strong economy, rising incomes, low mortgage rates and low
inventories of unsold homes all suggest positive fundamentals for the housing
industry. However, it was the Fund's bottom-up approach which first led us to
companies in the industry. Their low valuations, despite solid financial and
operating records, signaled investment opportunities.
Outlook: Values Remain in Small Cap Stocks
Despite the strength in the small cap sector over the last several months,
opportunities still exist. This Fund will continue to take advantage of these
opportunities by staying highly disciplined and focused on this investment
process.
1 Represents the period from inception of the Funds on May 28, 1997 through
September 30, 1997 for Class A shares.
<PAGE>
LARGE CAP VALUE FUND
==============================================================================
Proven Investment Discipline Succeeds
Dean's Large Cap Value Fund posted a 12.4%1 (excludes the impact of applicable
sales charges) gain in its first four months of operation, from inception on May
28, 1997 through September 30, 1997. While those are excellent results by any
measure, they are also largely in line with the performance of the markets in
general. The benchmark, the Russell 1000, gained 12.5% over the same time span.
The S&P 500 Index also was up 12.5%.
Long-term conclusions can't, of course, be based on the first four months of the
Fund's performance. However, these early results suggest that Dean's
disciplined, value approach to equity investing will be as successful in mutual
fund management, as it has been for privately managed accounts for over 25
years.
Strong Commitments Within a Diverse Portfolio
The Dean Large Cap Value Fund is well diversified, with approximately 60 equity
positions. However, we will make significant commitments to situations in which
we see compelling value. Currently, the largest concentration in the Fund is in
the broadly defined financial services sector. This includes insurance
companies, brokerage houses, banks and specialty finance companies. All told,
31% of the Fund's assets are represented by 17 companies in this sector.
Why Financial Services?
In two words: value and opportunity. There are many companies in this sector
whose valuations are well below average, in terms of price-to-earnings (P/E) and
price-to-book value ratios. Those the Fund has purchased also possess the
ability to grow at rates considered well above average during the next several
years.
A good example of such a stock is that of Countrywide Credit Industries. This is
the nation's leading mortgage origination and servicing company. Its earnings
growth has averaged 20% per year during the past ten years, and they should
continue to grow at double-digit rates for several years to come. Yet, despite
its excellent record and stellar prospects, Countrywide sells for only 13.4X
this year's earnings and only 11.8X next year's expected earnings.
Today's High Cost of Equities Require an Emphasis on Value
The Dean approach to value investing is designed to yield superior returns over
the long term in both up and down markets. While the outlook for the U.S.
economy remains bright, stocks are selling at near all-time highs. Further
increases in P/E or price-to-book value ratios are highly unlikely.
In addition, profit margins are already at historically high levels, which means
corporate profits have received a larger slice of the economic pie during this
decade. This has been tremendously positive for all sectors of the economy. In
coming years, however, it may be unrealistic to expect the profit "slice" to
grow faster than the whole "economic pie." More than ever, this underscores the
need for the research and value investing disciplines of the Dean Large Cap
Value Fund.
1 Represents the period from inception of the Funds on May 28, 1997 through
September 30, 1997 for Class A shares.
<PAGE>
BALANCED FUND
==============================================================================
A Solid Start-up
A strong stock market helped the Dean Balanced Fund achieve a 9.5%1 (excludes
the impact of applicable sales charges) return in its first four months of
operation. Those results were slightly ahead of the 9.4% return for the 60/40
benchmark (60% S&P 500 Index , 40% Lehman Brothers Government/Corporate Bond
Index), against which we measure the Fund's performance.
The Balanced Fund's start-up performance was achieved despite the initial
trading costs associated with structuring a new fund. And, while a balance of
60% stocks with 40% fixed-income securities is considered a neutral allocation,
the Fund was held to a slightly more conservative allocation to equities
(between 54% and 58%) during the period ending September 30.
The reasons for this caution are worth noting. First, the Dean Balanced Fund is
structured to appeal to investors who are interested in long-term growth while
emphasizing preservation of capital. Further, during the past few months, Dean's
asset allocation models have signaled conditions favoring a
neutral-to-slightly-bearish stock market outlook for the intermediate term.
While caution may have curbed the Fund's returns through September, it may prove
a blessing for Balanced Fund investors in the potentially volatile months ahead.
Managing in Volatile Markets
Aggregate measures of stock value (price to earnings, price to book value and
dividend yield) show that stocks in general are expensive. That makes them
vulnerable to bad economic news or external shocks.
However, over the longer term, prospects for stocks continue to be positive.
Most of all, this reflects strong potential for technology-driven economic
growth in the U.S. and abroad.
The Dean Balanced Fund will continue to rely on the tactical asset allocation
models which have served the firm's private clients so well for over 25 years.
As near-term prospects for stocks change, the allocation to stocks in the Fund
will be gradually raised or lowered as warranted. The value approach to stock
selection remains a constant.
Selecting Value Stocks
The Balanced Fund is diversified across a wide spectrum of industries. The more
sizable positions are taken with companies and sectors that offer the best
value. For example, equities in real estate trusts (REITs) and electric
utilities currently offer relatively high dividend yields and attractive
valuations. They provide a steady, more reliable return and serve as defensive
positions, should downside volatility occur. The Fund has meaningful positions
in both of these sectors.
Matching the performance benchmark in the Dean Balanced Fund's first four months
of operation was a significant milestone. However, the real goal is to
outperform the benchmark over the long term, providing the Fund's investors with
better returns and lower risk.
1 Represents the period from inception of the Funds on May 28, 1997 through
September 30, 1997 for Class A shares.
<PAGE>
FUND FACTS
==============================================================================
SMALL CAP VALUE FUND
- ------------------------------------------------------------------------------
Top Holdings
Baldwin Technology Co., Inc. - Class A Continental Can, Inc.
First American Financial Corp. (The) National Steel Corp. - Class B
Lawyers Title Corp. Advanced Marketing Services, Inc.
Bon-Ton Stores, Inc. Bel Fuse, Inc.
Duckwall-ALCO Stores, Inc. Del Webb Corp.
Number of Positions ...............................159
Median Price/Earnings Ratio ......................12.4
Portfolio Turnover (5/28/97 - 9/30/97) ............74%(A)
LARGE CAP VALUE FUND
- ------------------------------------------------------------------------------
Top Holdings
Potash Corp. of Saskatchewan, Inc. Loews Corp.
Clayton Homes, Inc. Chrysler Corp.
Chase Manhattan Corp. Green Tree Financial Corp.
Bear Stearns Cos., Inc. Phelps Dodge Corp.
Vulcan Materials Co. Edwards (A.G.), Inc.
Number of Positions .................................65
Median Price/Earnings Ratio .......................15.3
Portfolio Turnover (5/28/97 - 9/30/97) .............17%(A)
BALANCED FUND
- ------------------------------------------------------------------------------
Top Holdings
Philip Morris Cos., Inc. Green Tree Financial Corp.
CCA Prison Realtly Trust NCR Corp.
360 Communications Co. Cox Communications, Inc. - Class A
Seagate Technology, Inc. AGCO Corp.
PMI Group, Inc. (The) Alumax Inc.
Number of Positions .........................42 equity; 10 fixed income
Median Price/Earnings Ratio .......................................16.0
Portfolio Turnover (5/28/97 - 9/30/97) .............................74%(A)
(A)Annualized.
<PAGE>
<TABLE>
<CAPTION>
LARGE CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
September 30, 1997 (Unaudited)
===========================================================================================================
Shares COMMON STOCKS -- 99.0% Value
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
AIRLINES -- 1.1%
2,500 Southwest Airlines Co...................................................... $ 79,844
---------------
AUTOMOTIVE -- 3.9%
4,500 Chrysler Corp.............................................................. 165,656
2,500 Ford Motor Co.............................................................. 113,125
---------------
278,781
---------------
CAPITAL GOODS -- 3.2%
4,500 AGCO Corp.................................................................. 142,594
2,000 Foster Wheeler Corp........................................................ 87,875
---------------
230,469
---------------
CHEMICALS -- 6.1%
1,000 Dow Chemical Co., (The).................................................... 90,688
3,000 Great Lakes Chemical Corp.................................................. 147,938
2,500 Potash Corp. of Saskatchewan Inc........................................... 196,250
---------------
434,876
---------------
DATA STORAGE -- 2.0%
4,000 Seagate Technology, Inc.(a) ............................................... 144,500
---------------
ELECTRONICS -- 3.5%
1,200 Arrow Electronics, Inc.(a) ................................................ 69,600
1,500 Avnet, Inc................................................................. 95,344
1,400 Raytheon Co................................................................ 82,775
---------------
247,719
---------------
ENERGY -- 3.0%
1,000 Atlantic Richfield Co...................................................... 85,437
2,500 Phillips Petroleum Co...................................................... 129,062
---------------
214,499
---------------
FINANCIAL SERVICES -- 14.9%
3,400 Ambac Financial Group, Inc................................................. 138,337
4,000 Bear Stearns Cos., Inc..................................................... 176,000
1,700 Beneficial Corp............................................................ 129,519
1,500 Chase Manhattan Corp....................................................... 177,000
3,000 Edwards (A.G.), Inc........................................................ 154,125
3,500 Green Tree Financial Corp.................................................. 164,500
400 Merrill Lynch & Co., Inc................................................... 29,675
3,000 United Asset Management Corp............................................... 86,062
---------------
1,055,218
---------------
GOVERNMENT SPONSORED ENTERPRISES -- 1.7%
2,500 Federal National Mortgage Association...................................... 117,500
---------------
HOUSING -- 2.6%
10,000 Clayton Homes, Inc......................................................... 185,625
---------------
<PAGE>
<CAPTION>
LARGE CAP VALUE FUND (continued)
============================================================================================================
Shares COMMON STOCKS -- 99.0% Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INSURANCE -- 8.9%
2,000 AFLAC, Inc................................................................. $ 108,500
1,000 American National Insurance Co............................................. 101,000
600 General Re Corp............................................................ 119,100
1,000 Jefferson-Pilot Corp....................................................... 79,000
800 Transamerica Corp.......................................................... 79,600
2,000 Transatlantic Holdings, Inc................................................ 143,250
---------------
630,450
---------------
MEDIA -- 1.5%
6,000 News Corporation Ltd. (The) (ADR).......................................... 107,625
---------------
METALS -- 1.9%
1,500 Alumax Inc.(a) ............................................................ 61,313
900 Aluminum Co. of America.................................................... 73,800
---------------
135,113
---------------
MISCELLANEOUS -- 14.0%
1,800 CSX Corp................................................................... 105,300
2,500 Columbia/ HCA Healthcare Corp.............................................. 71,875
3,000 Hasbro, Inc................................................................ 84,375
500 Norfolk Southern Corp...................................................... 51,625
2,250 Parker-Hannifin Corp....................................................... 101,250
2,000 Phelps Dodge Corp.......................................................... 155,250
1,500 SAFECO Corp................................................................ 79,500
3,500 Union Texas Petroleum Holdings, Inc........................................ 82,250
2,000 Vulcan Materials Co........................................................ 174,000
2,000 York International Corp.................................................... 89,500
---------------
994,925
---------------
MORTGAGE SERVICES -- 5.0%
2,500 Countrywide Credit Industries, Inc......................................... 91,094
1,200 MBIA, Inc.................................................................. 150,525
2,000 PMI Group, Inc. (The)...................................................... 114,625
---------------
356,244
---------------
RETAIL -- 4.1%
2,500 Dillard's, Inc............................................................. 109,531
15,000 Food Lion, Inc............................................................. 125,156
1,000 J.C. Penney Company, Inc................................................... 58,250
---------------
292,937
---------------
SEMICONDUCTOR -- 1.0%
800 Intel Corp................................................................. 73,850
---------------
TECHNOLOGY -- 2.3%
5,000 Cabletron Systems, Inc.(a) ................................................ 160,000
---------------
<PAGE>
<CAPTION>
LARGE CAP VALUE FUND (continued)
=============================================================================================================
Shares COMMON STOCKS -- 99.0% Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS -- 6.6%
7,000 360 Communications Co.(a) ................................................. $ 146,125
1,400 AT&T Corp.................................................................. 62,038
2,000 Century Telephone Enterprises, Inc......................................... 88,000
3,000 Frontier Corp.............................................................. 69,000
2,000 Sprint Corp................................................................ 100,000
---------------
465,163
---------------
TOBACCO -- 4.2%
1,500 Loews Corp................................................................. 169,406
1,600 Phillip Morris Cos., Inc................................................... 66,500
2,000 UST, Inc................................................................... 61,125
---------------
297,031
---------------
UTILITIES -- 7.5%
2,000 Consolidated Edison Co. of New York, Inc................................... 68,000
4,000 DPL Inc.................................................................... 98,000
3,000 Houston Industries, Inc.................................................... 65,250
4,000 Illinova Corp.............................................................. 86,250
3,000 NIPSCO Industries, Inc..................................................... 126,375
4,000 Southern Co................................................................ 90,250
---------------
534,125
---------------
TOTAL COMMON STOCKS (COST $6,484,064) ..................................... $ 7,036,494
---------------
<CAPTION>
==============================================================================================================
Face
Value Money Market -- 0.6% Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 40,011 One Group Prime Money Market Fund.......................................... $ 40,011
---------------
TOTAL INVESTMENTS AT VALUE-- 99.6% (COST $6,524,075) ...................... $ 7,076,505
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.4% .............................. 33,571
---------------
NET ASSETS-- 100.0% ....................................................... $ 7,110,076
===============
<FN>
(a) Non-income producing securities.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
September 30, 1997 (Unaudited)
===========================================================================================================
Shares COMMON STOCKS -- 97.8% Value
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
AUTOMOTIVE -- 2.8%
8,000 Excel Industries, Inc...................................................... $ 159,500
7,000 Oshkosh Truck Corp......................................................... 116,375
7,000 Republic Automotive Parts, Inc.(a) ........................................ 119,000
9,000 TBC Corp.(a) .............................................................. 84,938
---------------
479,813
---------------
AUTOMOTIVE PARTS -- 1.3%
17,000 Durakon Industries, Inc.(a) ............................................... 148,750
9,000 Jason, Inc.(a) ............................................................ 74,250
---------------
223,000
---------------
BUILDING PRODUCTS -- 4.0%
8,000 Cameron Ashley Building Products(a) ....................................... 146,000
25,000 Martin Industries, Inc..................................................... 153,125
20,000 Morgan Products, Ltd.(a) .................................................. 133,750
8,000 Patrick Industries, Inc.................................................... 123,000
8,000 Shelter Components Corp.................................................... 116,000
---------------
671,875
---------------
BUILDING SUPPLIES -- 0.7%
9,000 Wolohan Lumber Co.......................................................... 119,250
---------------
CAPITAL GOODS -- 5.7%
4,000 Amcast Industrial Corp..................................................... 98,000
6,000 Atchison Casting Corp.(a) ................................................. 127,500
40,000 Baldwin Technology Co., Inc. - Class A(a) ................................. 212,500
11,000 Bridgeport Machines, Inc.(a) .............................................. 116,875
4,000 Central Sprinkler Corp.(a) ................................................ 76,000
11,000 Defiance, Inc.............................................................. 79,750
5,000 Global Industrial Technologies, Inc.(a) ................................... 103,438
3,000 Hardinge, Inc.............................................................. 103,125
7,000 Perini Corp.(a) ........................................................... 55,125
---------------
972,313
---------------
CHEMICALS -- 0.6%
6,000 Mississippi Chemical Corp.................................................. 117,000
---------------
ELECTRONICS -- 3.1%
9,000 Bel Fuse, Inc.(a) ......................................................... 171,000
9,760 Bell Industries, Inc.(a) .................................................. 164,700
2,000 Cherry Corp................................................................ 38,000
8,000 ESCO Electronics Corp.(a) ................................................. 141,000
---------------
514,700
---------------
<PAGE>
<CAPTION>
SMALL CAP VALUE FUND (continued)
=============================================================================================================
Shares COMMON STOCKS -- 97.8% Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY -- 4.7%
8,000 Aquila Gas Pipeline Corp................................................... $ 103,000
8,000 BP Prudhoe Bay Royalty Trust............................................... 144,000
15,000 Burlington Resources Coal Seam Gas Royalty Trust........................... 105,000
10,000 Castle Energy Corp.(a) .................................................... 142,500
4,000 Giant Industries, Inc...................................................... 78,750
5,000 NUI Corp................................................................... 117,500
11,000 Torch Energy Royalty Trust................................................. 97,625
---------------
788,375
---------------
FINANCIAL SERVICES -- 0.2%
2,700 Arcadia Financial Ltd.(a) ................................................. 30,712
---------------
FOOD -- 2.3%
6,000 Fleming Cos., Inc.......................................................... 109,875
10,000 Mauna Loa Macadamia Partners, L.P. - Class A............................... 41,250
7,000 Nash-Finch Co.............................................................. 166,250
10,000 ProSource, Inc............................................................. 65,000
---------------
382,375
---------------
FURNITURE -- 1.0%
10,000 Flexsteel Industries, Inc.................................................. 122,500
2,000 Pulaski Furniture Corp..................................................... 37,000
---------------
159,500
---------------
GAMING -- 1.6%
6,000 Grand Casinos, Inc.(a) .................................................... 91,875
7,000 Harveys Casino Resorts..................................................... 123,375
6,000 Station Casinos, Inc.(a) .................................................. 48,750
---------------
264,000
---------------
HEALTH CARE -- 0.9%
1,000 Mine Safety Appliances Co.(a) ............................................. 70,000
30,000 Staff Builders, Inc. - Class A(a) ......................................... 73,125
---------------
143,125
---------------
HOUSING -- 8.6%
6,000 Beazer Homes USA, Inc.(a) ................................................. 118,125
10,000 Cavalier Homes, Inc........................................................ 103,750
5,000 Continental Homes Holding Corp............................................. 146,562
8,000 Del Webb Corp.............................................................. 171,000
10,000 Engle Homes, Inc........................................................... 137,500
17,000 Hovnanian Enterprises Inc. - Class A(a) ................................... 132,812
14,000 M.D.C. Holdings, Inc....................................................... 139,125
9,000 M/I Schottenstein Homes, Inc.(a) .......................................... 138,937
3,200 NVR Inc.(a) ............................................................... 83,200
7,000 Pacific Greystone Corp.(a) ................................................ 139,125
1,100 Pulte Corp................................................................. 42,075
10,000 Zaring National Corp.(a) .................................................. 98,125
---------------
........................................................................ 1,450,336
---------------
<PAGE>
<CAPTION>
SMALL CAP VALUE FUND (continued)
=============================================================================================================
Shares COMMON STOCKS -- 97.8% Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INSURANCE -- 9.1%
2,000 ALLIED Life Financial Corp................................................. $ 47,000
2,500 Chartwell Re Corp.......................................................... 88,750
1,300 Citizens Corp.............................................................. 37,618
1,733 Donegal Group, Inc......................................................... 35,093
8,000 EMC Insurance Group, Inc................................................... 109,000
3,000 FBL Financial Group, Inc. - Class A........................................ 111,000
1,300 Farm Family Holdings, Inc.(a) ............................................. 41,762
3,500 First American Financial Corp. (The)....................................... 210,000
3,000 Harleysville Group, Inc.................................................... 126,000
6,000 Lawyers Title Corp......................................................... 184,500
600 Navigators Group, Inc. (The)(a) ........................................... 12,450
3,300 Omni Insurance Group, Inc.(a) ............................................. 58,575
4,000 PXRE Corp.................................................................. 126,250
1,000 Selective Insurance Group, Inc............................................. 51,500
4,900 Sphere Drake Holdings Ltd.................................................. 42,875
6,000 Stewart Information Services Corp.......................................... 158,250
3,000 Terra Nova (Bermuda) Holdings Ltd. - Class A............................... 81,375
---------------
1,521,998
---------------
METALS -- 7.0%
6,000 Ampco-Pittsburgh Corp...................................................... 112,500
8,000 A.P. Green Industries, Inc................................................. 112,000
4,000 Chaparral Steel Co......................................................... 61,250
3,000 Cleveland-Cliffs Inc....................................................... 130,875
4,000 Commercial Metals Co....................................................... 127,750
10,000 National Steel Corp. - Class B(a) ......................................... 178,750
1,700 Pitt-Des Moines, Inc....................................................... 63,112
6,000 Roanoke Electric Steel Co.................................................. 133,500
6,000 Rouge Industries, Inc. - Class A........................................... 93,750
4,000 Texas Industries, Inc...................................................... 169,750
---------------
1,183,237
---------------
MISCELLANEOUS -- 2.9%
2,000 Arvin Industries, Inc...................................................... 78,500
7,000 Building Materials Holding Corp............................................ 91,438
5,000 Burlington Industries, Inc.(a) ............................................ 70,000
4,000 Providence Energy Corp..................................................... 78,500
8,000 R & B, Inc.(a) ............................................................ 71,000
6,000 Superior Surgical Manufacturing Co......................................... 94,500
---------------
483,938
---------------
MORTGAGE SERVICES -- 1.8%
3,000 MMI Cos., Inc.............................................................. 79,125
2,200 North American Mortgage Co................................................. 63,250
5,000 SCPIE Holdings Inc......................................................... 153,750
---------------
296,125
---------------
<PAGE>
<CAPTION>
SMALL CAP VALUE FUND (continued)
=============================================================================================================
Shares COMMON STOCKS -- 97.8% Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
PAPER AND CONTAINERS -- 2.6%
7,000 Continental Can, Inc.(a) .................................................. $ 185,500
12,000 Mercer International, Inc.................................................. 138,000
6,000 Paragon Trade Brands, Inc.(a) ............................................. 111,375
---------------
434,875
---------------
PUBLISHING -- 0.6%
9,000 PrimeSource Corp........................................................... 93,375
---------------
REAL ESTATE -- 5.4%
1,000 Capstone Capital Corp...................................................... 24,000
9,000 Commercial Net Lease Realty................................................ 143,438
11,000 Dynex Capital, Inc......................................................... 158,125
5,000 Health Care REIT, Inc...................................................... 137,500
10,000 Horizon Group, Inc......................................................... 120,625
3,000 PMC Commerical Trust....................................................... 58,875
7,000 RFS Hotel Investors, Inc................................................... 136,500
6,000 Thornburg Mortgage Asset Corp.............................................. 126,000
---------------
905,063
---------------
RESTAURANTS -- 2.1%
11,000 Bertuccin's, Inc.(a) ...................................................... 69,437
3,000 Cooker Restaurant Corp..................................................... 31,313
5,000 El Chico Restaurants, Inc.(a) ............................................. 55,625
10,000 Morrison Restaurants Inc................................................... 35,000
7,000 Rare Hospitality International, Inc.(a) ................................... 67,375
10,000 Ryan's Family Steak Houses, Inc.(a) ....................................... 91,875
500 Uno Restaurant Corp........................................................ 3,563
---------------
354,188
---------------
RETAIL -- 17.4%
13,000 Advanced Marketing Services, Inc.(a) ...................................... 175,500
9,000 Blair Corp................................................................. 163,125
16,000 Bon-Ton Stores, Inc.(a) ................................................... 192,000
20,000 Books-A-Million, Inc.(a) .................................................. 125,000
9,000 Brookstone, Inc.(a) ....................................................... 106,875
6,000 Brown Group, Inc........................................................... 109,125
10,000 Delta Woodside Industries, Inc............................................. 60,625
1,200 Dixie Group, Inc. (The)(a) ................................................ 16,200
25,000 Donnkenny, Inc.(a) ........................................................ 107,812
12,000 Duckwall-ALCO Stores, Inc.(a) ............................................. 192,000
10,000 Dyersburg Corp............................................................. 120,000
12,000 GT Bicycles, Inc.(a) ...................................................... 98,250
9,000 Haverty Furniture Co., Inc................................................. 127,125
8,000 Ingles Markets, Inc. - Class A............................................. 105,000
45,000 Jan Bell Marketing, Inc.(a) ............................................... 120,937
10,000 Lifetime Hoan Corp......................................................... 88,750
10,000 Marisa Christina, Inc.(a) ................................................. 70,000
6,000 Marsh Supermarkets, Inc. - Class B......................................... 100,500
11,000 Mikasa, Inc................................................................ 152,625
35,000 Movie Gallery, Inc.(a) .................................................... 140,000
8,000 REX Stores Corp.(a) ....................................................... 90,000
<PAGE>
<CAPTION>
SMALL CAP VALUE FUND (continued)
=============================================================================================================
Shares COMMON STOCKS -- 97.8% Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
RETAIL -- 17.4% (CONTINUED)
3,000 Rival Co. (The)............................................................ $ 48,000
30,000 Service Merchandise Co., Inc.(a) .......................................... 123,750
3,000 Supreme International Corp.(a) ............................................ 42,375
22,000 Tultex Corp.(a) ........................................................... 132,000
15,000 Worldtex, Inc.(a) ......................................................... 105,938
---------------
2,913,512
---------------
TECHNOLOGY -- 1.7%
14,000 Microtest, Inc. (a)........................................................ 77,875
5,600 Software Spectrum, Inc.(a) ................................................ 100,100
10,000 SPACEHAB, Inc.(a) ......................................................... 106,250
---------------
284,225
---------------
TELECOMMUNICATIONS -- 1.3%
8,000 Atlantic Tele-Network, Inc.(a) ............................................ 104,000
12,000 Audiovox Corp. - Class A(a) ............................................... 122,250
---------------
226,250
---------------
TOBACCO -- 0.6%
6,000 Standard Commercial Corp................................................... 101,250
---------------
TRANSPORTATION -- 1.1%
5,000 International Shipholding Corp............................................. 89,063
2,100 Petroleum Helicopters, Inc................................................. 50,400
1,500 Sea Containers, LTD. - Class A............................................. 42,563
---------------
182,026
---------------
UTILITY -- 6.7%
8,000 Bangor Hydro-Electric Co.(a) .............................................. 42,500
4,000 Central Hudson Gas & Electric.............................................. 143,250
6,000 Central Maine Power Co..................................................... 78,375
9,000 Central Vermont Public Service............................................. 119,250
4,000 Commonwealth Energy System................................................. 108,000
5,000 Eastern Utilities Associates............................................... 99,688
3,000 Interstate Power Co........................................................ 94,875
2,000 Orange & Rockland Utilities, Inc........................................... 74,625
5,000 Rochester Gas & Electric Corp.............................................. 123,750
3,000 Southern California Water Co............................................... 67,125
3,000 TNP Enterprises, Inc....................................................... 75,375
2,500 United Illuminating Co..................................................... 91,094
---------------
1,117,907
---------------
TOTAL COMMON STOCKS (COST $14,583,661) .................................... $ 16,414,343
---------------
<PAGE>
<CAPTION>
SMALL CAP VALUE FUND (continued)
=============================================================================================================
Face
Value MONEY MARKET AND EQUIVALENTS-- 2.6% Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 48,049 One Group Prime Money Market Fund.......................................... $ 48,049
200,000 KZH Crescent Corp., CP 10/2/97............................................. 199,904
190,000 ReliaStar Financial Corp., CP 10/3/97...................................... 189,908
---------------
TOTAL MONEY MARKET AND EQUIVALENTS (COST $437,861) ........................ $ 437,861
---------------
TOTAL INVESTMENTS AT VALUE-- 100.4% (COST $15,021,522) .................... $ 16,852,204
LIABILITIES IN EXCESS OF OTHER ASSETS-- (0.4)% ............................ ( 67,824)
---------------
NET ASSETS-- 100.0% ....................................................... $ 16,784,380
===============
<FN>
(a) Non-income producing securities.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BALANCED FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1997 (Unaudited)
============================================================================================================
Shares COMMON STOCKS -- 56.5% Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AIRLINES -- 1.2%
3,500 Comair Holdings, Inc....................................................... $ 94,062
---------------
AUTOMOTIVE -- 2.6%
3,000 Chrysler Corp.............................................................. 110,437
2,000 Ford Motor Co.............................................................. 90,500
---------------
200,937
---------------
CAPITAL GOODS -- 3.0%
4,000 AGCO Corp.................................................................. 126,750
2,100 Briggs & Stratton Corp..................................................... 103,819
---------------
230,569
---------------
CHEMICALS -- 2.4%
700 Dow Chemical Co., (The).................................................... 63,481
1,550 Potash Corp. of Saskatchewan Inc........................................... 121,675
---------------
185,156
---------------
DATA STORAGE -- 1.9%
4,150 Seagate Technology, Inc.(a) ............................................... 149,919
---------------
ELECTRONICS -- 2.3%
1,050 Arrow Electronics, Inc.(a) ................................................ 60,900
2,050 Raytheon Co................................................................ 121,206
---------------
182,106
---------------
FINANCIAL SERVICES -- 3.0%
2,000 Ambac Financial Group, Inc................................................. 81,375
3,100 Green Tree Financial Corp.................................................. 145,700
---------------
227,075
---------------
GOVERNMENT SPONSORED ENTERPRISES -- 0.9%
1,500 Federal National Mortgage Association...................................... 70,500
---------------
HOUSING -- 1.5%
6,200 Clayton Homes, Inc......................................................... 115,087
---------------
INSURANCE -- 1.4%
2,000 AFLAC, Inc................................................................. 108,500
---------------
MEDIA -- 4.6%
4,000 Comcast Corp............................................................... 103,000
5,000 Cox Communications, Inc. - Class A(a) ..................................... 137,812
6,000 News Corporation Ltd. (The) (ADR).......................................... 107,625
---------------
348,437
---------------
METALS -- 3.2%
3,000 Alumax Inc.(a) ............................................................ 122,625
1,500 Aluminum Co. of America.................................................... 123,000
---------------
245,625
---------------
<PAGE>
<CAPTION>
BALANCED FUND (continued)
==============================================================================================================
Shares COMMON STOCKS -- 56.5% Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
MISCELLANEOUS -- 2.0%
4,000 CCA Prison Realty Trust(a) ................................................ $ 151,000
---------------
MORTGAGE SERVICES -- 3.4%
3,000 Countrywide Credit Industries, Inc......................................... 109,313
2,600 PMI Group, Inc. (The)...................................................... 149,013
---------------
258,326
---------------
RETAIL -- 3.4%
4,200 Fingerhut Cos., Inc........................................................ 94,500
1,000 Payless ShoeSource, Inc.(a) ............................................... 59,688
3,000 Toys "R" Us, Inc.(a) ...................................................... 106,500
---------------
260,688
---------------
REAL ESTATE -- 4.8%
1,500 Health Care Property Investors, Inc........................................ 58,125
4,000 Merry Land & Investment Co., Inc........................................... 88,250
2,000 Simon DeBartolo Group, Inc................................................. 66,000
3,000 TrizecHahn Corp............................................................ 77,438
5,000 United Dominion Realty Trust, Inc.......................................... 75,000
---------------
364,813
---------------
SEMICONDUCTOR -- 1.8%
800 Intel Corp................................................................. 73,850
2,000 MEMC Electronic Materials, Inc.(a) ........................................ 60,000
---------------
133,850
---------------
TECHNOLOGY -- 3.3%
3,550 Cabletron Systems, Inc.(a) ................................................ 113,600
4,000 NCR Corp.(a) .............................................................. 139,750
---------------
253,350
---------------
TELECOMMUNICATIONS -- 3.3%
7,200 360 Communications Co.(a) ................................................. 150,300
2,000 Sprint Corp................................................................ 100,000
---------------
250,300
---------------
TOBACCO -- 2.3%
4,150 Phillip Morris Cos., Inc................................................... 172,484
---------------
UTILITIES -- 4.2%
4,000 Houston Industries, Inc.................................................... 87,000
4,000 Illinova Corp.............................................................. 86,250
2,000 NIPSCO Industries, Inc..................................................... 84,250
3,000 Southern Co................................................................ 67,688
---------------
325,188
---------------
TOTAL COMMON STOCKS (COST $3,967,749) ..................................... $ 4,327,972
---------------
<PAGE>
<CAPTION>
BALANCED FUND (continued)
=============================================================================================================
Shares Fixed Income -- 34.7% Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
300,000 U.S. Treasury Note, 6.375%, 7/15/99....................................... $ 302,906
200,000 U.S. Treasury Note, 6.125%, 9/30/00........................................ 201,250
250,000 U.S. Treasury Note, 6.125%, 8/31/98........................................ 251,016
300,000 U.S. Treasury Note, 5.875%, 11/15/99....................................... 300,188
250,000 U.S. Treasury Note, 6.125%, 12/31/01....................................... 251,250
200,000 U.S. Treasury Note, 6.625%, 3/31/02........................................ 204,813
300,000 Countrywide Credit Industries, Inc., 6.280%, 1/12/03....................... 295,427
300,000 EI Dupont De Nemours, 6.500%, 9/01/02...................................... 301,423
250,000 Hilton Hotels Corp., 7.000%, 7/15/04....................................... 249,862
300,000 Potomac Capital Invt. Corp., 6.800%, 9/12/01............................... 301,817
---------------
TOTAL FIXED INCOME (COST $2,646,989) ...................................... $ 2,659,952
---------------
<CAPTION>
===============================================================================================================
Face
Value MONEY MARKET AND EQUIVALENTS-- 8.7% Value
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
250,000 Coop Trac "A" BE, CP 10/2/97.............................................. $ 249,960
194,737 One Group Prime Money Market Fund.......................................... 194,737
225,000 Western Medical, CP 10/1/97................................................ 225,000
---------------
TOTAL MONEY MARKET AND EQUIVALENTS (COST $669,697) ........................ $ 669,697
---------------
TOTAL INVESTMENTS AT VALUE-- 99.9% (COST $7,284,435) ...................... $ 7,657,621
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.1% .............................. 5,642
---------------
NET ASSETS-- 100.0% ....................................................... $ 7,663,263
===============
<FN>
(a) Non-income producing securities.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 1997 (Unaudited)
==============================================================================================================
Large Cap Small Cap
Value Value Balanced
Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments in securities:
At acquisition cost.................................. $ 6,524,075 $ 15,021,522 $ 7,284,435
============== ============== ===============
At value (Note 2).................................... $ 7,076,505 $ 16,852,204 $ 7,657,621
Dividends and interest receivable....................... 7,437 22,035 32,169
Receivable for capital shares sold...................... -- 40,004 --
Receivable from Adviser (Note 4)........................ 6,000 -- 4,700
Organization expenses, net (Note 2)..................... 14,458 14,458 14,458
Other assets............................................ 17,883 19,642 17,542
-------------- -------------- ---------------
TOTAL ASSETS ........................................ 7,122,283 16,948,343 7,726,490
-------------- -------------- ---------------
LIABILITIES
Dividends payable....................................... 688 -- 4,891
Payable for securities purchased........................ -- 120,318 44,245
Payable to affiliates (Note 4).......................... 6,400 14,862 6,400
Payable for capital shares redeemed..................... -- 22,058 1,800
Other liabilities....................................... 5,119 6,725 5,891
-------------- -------------- ---------------
TOTAL LIABILITIES ................................... 12,207 163,963 63,227
-------------- -------------- ---------------
NET ASSETS ............................................. $ 7,110,076 $ 16,784,380 $ 7,663,263
============== ============== ===============
Net assets consist of:
Paid-in capital......................................... $ 6,532,538 $ 14,482,485 $ 7,234,454
Undistributed net investment income..................... -- 20,842 --
Accumulated net realized gains from security transactions 25,108 450,371 55,623
Net unrealized appreciation on investments.............. 552,430 1,830,682 373,186
-------------- -------------- ---------------
Net assets.............................................. $ 7,110,076 $ 16,784,380 $ 7,663,263
============== ============== ===============
PRICING OF CLASS A SHARES
Net assets applicable to Class A shares................. $ 7,062,314 $ 16,333,896 $ 7,249,736
============== ============== ===============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value)........... 629,258 1,349,992 666,541
============== ============== ===============
Net asset value and redemption price per share (Note 2). $ 11.22 $ 12.10 $ 10.88
============== ============== ===============
Maximum offering price per share (Note 2)............... $ 11.84 $ 12.77 $ 11.48
============== ============== ===============
PRICING OF CLASS C SHARES
Net assets applicable to Class C shares................. $ 47,762 $ 450,484 $ 413,527
============== ============== ===============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value)........... 4,261 37,283 38,065
============== ============== ===============
Net asset value and offering price per share (Note 2)... $ 11.21 $ 12.08 $ 10.86
============== ============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended September 30, 1997 (Unaudited)
==============================================================================================================
Large Cap Small Cap
Value Value Balanced
Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends............................................ $ 33,428 $ 72,737 $ 19,413
Interest............................................. 7,298 16,203 52,568
-------------- -------------- ---------------
TOTAL INVESTMENT INCOME ........................... 40,726 88,940 71,981
-------------- -------------- ---------------
EXPENSES
Investment advisory fees (Note 4).................... 17,775 36,682 18,395
Registration fees - Common........................... 1,452 1,452 1,452
Registration fees - Class A.......................... 3,846 5,180 3,846
Registration fees - Class C.......................... 3,862 3,862 3,862
Accounting services fees (Note 4).................... 9,000 9,000 9,000
Custodian fees....................................... 5,320 6,470 5,320
Shareholder services and transfer agent
fees - Class A (Note 4)............................. 3,600 3,600 3,600
Shareholder services and transfer agent
fees - Class C (Note 4)............................. 2,400 2,400 2,400
Distribution expenses - Class A (Note 4)............. 6,185 5,884 5,681
Administration fees (Note 4)......................... 3,000 3,473 3,000
Trustees fees........................................ 3,000 3,000 3,000
Amortization of organization expenses (Note 2)....... 1,314 1,314 1,314
Other expenses....................................... 2,116 4,165 2,183
-------------- -------------- ---------------
TOTAL EXPENSES .................................... 62,870 86,482 63,053
Fees waived and common expenses
reimbursed by Adviser (Note 4)..................... ( 23,775) ( 12,500 ) ( 23,095 )
Class C expenses reimbursed by Adviser (Note 4)...... ( 6,185) ( 5,884 ) ( 5,681 )
-------------- -------------- ---------------
NET EXPENSES ...................................... 32,910 68,098 34,277
-------------- -------------- ---------------
NET INVESTMENT INCOME .................................. 7,816 20,842 37,704
-------------- -------------- ---------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions........ 25,108 450,371 55,623
Net change in unrealized
appreciation/depreciation on investments........... 552,430 1,830,682 373,186
-------------- -------------- ---------------
NET REALIZED AND UNREALIZED GAINS ON
INVESTMENTS ......................................... 577,538 2,281,053 428,809
-------------- -------------- ---------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ............. $ 585,354 $ 2,301,895 $ 466,513
============== ============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended September 30, 1997 (Unaudited)
=============================================================================================================
Large Cap Small Cap
Value Value Balanced
Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FROM OPERATIONS:
Net investment income................................ $ 7,816 $ 20,842 $ 37,704
Net realized gains from security transactions........ 25,108 450,371 55,623
Net change in unrealized appreciation/
depreciation on investments........................ 552,430 1,830,682 373,186
-------------- -------------- ---------------
Net increase in net assets from operations.............. 585,354 2,301,895 466,513
-------------- -------------- ---------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income, Class A........ ( 7,789) -- ( 36,201)
Dividends from net investment income, Class C........ ( 27) -- ( 1,503)
-------------- -------------- ---------------
Decrease in net assets from distributions to shareholders ( 7,816) -- ( 37,704)
-------------- -------------- ---------------
FROM CAPITAL SHARE TRANSACTIONS:
CLASS A
Proceeds from shares sold............................ 6,449,791 14,062,748 6,816,127
Net asset value of shares issued in
reinvestment of distributions to shareholders...... 6,817 -- 30,511
Payments for shares redeemed......................... ( 4,580) ( 42,804) ( 54,788)
-------------- -------------- ---------------
Net increase in net assets from Class A share transactions 6,452,028 14,019,944 6,791,850
-------------- -------------- ---------------
CLASS C
Proceeds from shares sold............................ 46,485 429,541 408,102
Net asset value of shares issued in
reinvestment of distributions to shareholders...... 25 -- 1,503
Payments for shares redeemed......................... -- -- --
-------------- -------------- ---------------
Net increase in net assets from Class C share transactions 46,510 429,541 409,605
-------------- -------------- ---------------
Net increase from capital share transactions............ 6,498,538 14,449,485 7,201,455
-------------- -------------- ---------------
TOTAL INCREASE IN NET ASSETS ........................... 7,076,076 16,751,380 7,630,264
NET ASSETS:
Beginning of period (Note 1)......................... 34,000 33,000 33,000
-------------- -------------- ---------------
End of period........................................ $ 7,110,076 $ 16,784,380 $ 7,663,264
============== ============== ===============
UNDISTRIBUTED NET INVESTMENT INCOME .................... $ -- $ 20,842 $ --
============== ============== ===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended September 30, 1997 (Unaudited)
(continued)
=============================================================================================================
Large Cap Small Cap
Value Value Balanced
Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CAPITAL SHARE ACTIVITY:
CLASS A
Shares sold.......................................... 625,650 1,350,333 665,451
Shares issued in reinvestment of distributions
to shareholders..................................... 637 -- 2,866
Shares redeemed...................................... ( 429) ( 3,641) ( 5,076)
-------------- -------------- ---------------
Net increase in shares outstanding................... 625,858 1,346,692 663,241
Shares outstanding, beginning of period.............. 3,400 3,300 3,300
-------------- -------------- ---------------
Shares outstanding, end of period.................... 629,258 1,349,992 666,541
============== ============== ===============
CLASS C
Shares sold.......................................... 4,259 37,283 37,927
Shares issued in reinvestment of distributions
to shareholders..................................... 2 -- 138
Shares redeemed...................................... -- -- --
-------------- -------------- ---------------
Net increase in shares outstanding................... 4,261 37,283 38,065
Shares outstanding, beginning of period.............. -- -- --
-------------- -------------- ---------------
Shares outstanding, end of period.................... 4,261 37,283 38,065
============== ============== ===============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Period
From Initial Public Offering of Shares(A) through September 30, 1997
==============================================================================================================
Large Cap Value Fund Small Cap Value Fund Balanced Fund
-------------------- -------------------- --------------
Class A Class C Class A Class C Class A Class C
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning
of period......................... $10.00 $ 10.76 $ 10.00 $ 10.95 $10.00 $ 10.71
---------- ----------- ----------- ------------ ----------- ------------
Income from investment operations:
Net investment income (loss)...... 0.02 ( 0.01) 0.02 -- 0.07 0.01
Net realized and unrealized gains
on investments................... 1.22 0.47 2.08 1.13 0.88 0.18
----------- ---------- ----------- ------------ ----------- ------------
Total from investment operations.... 1.24 0.46 2.10 1.13 0.95 0.19
----------- ---------- ----------- ------------ ----------- ------------
Less distributions:
Dividends from net investment income ( 0.02 ) ( 0.01 ) -- -- ( 0.07 ) ( 0.04 )
------------ --------- --------- ------------ ----------- ------------
Total distributions................. ( 0.02 ) ( 0.01) -- -- ( 0.07 ) ( 0.04 )
------------ --------- --------- ------------ ----------- ------------
Net asset value at end of period.... $ 11.22 $ 11.21 $ 12.10 $ 12.08 $ 10.88 $ 10.86
========== ========== =========== ============ =========== ============
Total return(B) .................... 12.38% 4.24% 21.00% 10.32% 9.48% 1.77%
========== ========== =========== ============ =========== ============
Net assets at end of period......... $7,062,314 $ 47,762 $16,333,896 $ 450,484 $7,249,736 $ 413,527
========== ========== =========== ============ =========== ============
Ratio of expenses to average net
assets:
Before waiver of fees by Adviser.. 3.14%(C) 172.89%(C) 2.15%(C) 20.75%(C) 3.07%(C) 20.54%(C)
After waiver of fees by Adviser... 1.85%(C) 2.60%(C) 1.85%(C) 2.60%(C) 1.85%(C) 2.60%(C)
Ratio of net investment income (loss)
to average net assets ............ 0.44%(C) (0.94)%(C) 0.56%(C) (0.27)%(C) 2.03%(C) 1.12%(C)
Portfolio turnover rate ............ 17%(C) 17%(C) 74%(C) 74%(C) 74%(C) 74%(C)
Average commission rate per share... $ 0.0600 $ 0.0600 $ 0.0600 $ 0.0600 $ 0.0600 $ 0.0600
(A) Initial public offering date.... 5-28-97 8-19-97 5-28-97 8-1-97 5-28-97 8-1-97
<FN>
(B) The total returns shown do not include the effect of applicable sales loads.
(C) Annualized.
</FN>
</TABLE>
<PAGE>
See accompanying notes to financial statements.
DEAN FAMILY OF FUNDS
NOTES TO FINANCIAL STATEMENTS
September 30, 1997 (Unaudited)
==============================================================================
1. Organization
The Dean Family of Funds (the Trust) is registered under the Investment Company
Act of 1940, as amended (the 1940 Act), as an open-end management investment
company. The Trust was organized as an Ohio business trust under a Declaration
of Trust dated December 18, 1996. The Trust has established four fund series to
date, the Large Cap Value Fund, the Small Cap Value Fund, the Balanced Fund, and
the International Value Fund (the Funds). The International Value Fund began
operations in October, 1997, and thus is not included in this report. The Trust
was capitalized on March 17, 1997, when the initial shares of each Fund were
purchased at $10.00 per share. The Trust had no operations prior to the public
offering of shares except for the initial issuance of shares.
The Large Cap Value Fund seeks to provide growth of capital over the long-term
by investing primarily in the common stocks of large companies.
The Small Cap Value Fund seeks to provide capital appreciation by investing
primarily in the common stocks of small companies.
The Balanced Fund seeks to preserve capital while producing a high total return
by allocating its assets among equity securities, fixed-income securities and
money market instruments.
The Funds each offer two classes of shares: Class A shares (sold subject to a
maximum front-end sales load of 5.25% and a distribution fee of up to 0.25% of
the average daily net assets) and Class C shares (sold subject to a maximum
contingent deferred sales load of 1% if redeemed within a one-year period from
purchase and a distribution fee of up to 1% of average daily net assets). Each
Class A and Class C share of a Fund represents identical interests in the Fund's
investment portfolio and has the same rights, except that (i) Class C shares
bear the expenses of higher distribution fees, which is expected to cause Class
C shares to have a higher expense ratio and to pay lower dividends than Class A
shares; (ii) certain other class specific expenses will be borne solely by the
class to which such expenses are attributable; and (iii) each class has
exclusive voting rights with respect to matters relating to its own distribution
arrangements.
2. Significant Accounting Policies
The following is a summary of the Trust's significant accounting policies:
Security valuation -- The Funds' portfolio securities are valued as of the close
of business of the regular session of trading on the New York Stock Exchange
(currently 4:00 p.m., Eastern time). Securities traded on a national stock
exchange or quoted by NASDAQ are valued based upon the closing price on the
principal exchange where the security is traded, or, if not traded on a
particular day, at the closing bid price. U.S. Government obligations are valued
at their most recent bid prices as obtained from one or more of the major market
makers for such securities.
Share valuation -- The net asset value per share of each class of shares of each
Fund is calculated daily by dividing the total value of a Fund's assets
attributable to that class, less liabilities attributable to that class, by the
number of shares of that class outstanding. The maximum offering price of Class
A shares of each Fund is equal to the net asset value per share plus a sales
load equal to 5.54% of the net asset value (or 5.25% of the offering price). The
offering price of Class C shares of each Fund is equal to the net asset value
per share.
The redemption price per share of Class A shares and Class C shares of each Fund
is equal to net asset value per share. However, Class C shares of each Fund are
subject to a contingent deferred sales load of 1% of the original purchase price
if redeemed within a one-year period from the date of purchase.
Investment income -- Dividend income is recorded on the ex-dividend date.
Interest income is accrued as earned. Discounts and premiums on securities
purchased are amortized in accordance with income tax regulations which
approximate generally accepted accounting principles.
<PAGE>
Distributions to shareholders -- The Large Cap Value Fund and the Balanced Fund
each expects to distribute substantially all of its net investment income, if
any, on a quarterly basis. The Small Cap Value Fund expects to distribute
substantially all of its net investment income, if any, on an annual basis. Each
Fund expects to distribute any net realized long-term capital gains at least
once each year. Management will determine the timing and frequency of the
distributions of any net realized short-term capital gains.
Organization expenses -- Expenses of organization have been capitalized and are
being amortized on a straight-line basis over five years. In the event any of
the initial shares of a Fund are redeemed during the amortization period, the
redemption proceeds will be reduced by a pro rata portion of any unamortized
organization expenses in the same proportion as the number of initial shares
being redeemed bears to the number of initial shares of the Fund outstanding at
the time of the redemption.
Security transactions -- Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is each Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Fund's intention to declare as dividends
in each calendar year at least 98% of its net investment income (earned during
the calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
The following information is based upon the federal income tax cost of portfolio
investments as of September 30, 1997:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Large Cap Small Cap
Value Value Balanced
Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Gross unrealized appreciation........................... $ 629,176 $ 2,072,865 $ 415,549
Gross unrealized depreciation........................... ( 76,746) ( 242,183) ( 42,363)
-------------- -------------- ---------------
Net unrealized appreciation............................. $ 552,430 $ 1,830,682 $ 373,186
============== ============== ===============
- --------------------------------------------------------------------------------------------------------------
</TABLE>
The Federal income tax cost of portfolio investments is equal to book cost as
shown on the statement of assets and liabilities.
3. Investment Transactions
During the six months ended September 30, 1997, purchases and proceeds from
sales of portfolio securities, other than short-term investments, amounted to
$6,651,874 and $192,958, respectively, for the Large Cap Value Fund, $15,897,163
and $1,763,919, respectively, for the Small Cap Value Fund, and $7,338,536 and
$779,331, respectively, for the Balanced Fund.
4. Transactions with Affiliates
Certain trustees and officers of the Trust are also officers of C.H. Dean &
Associates, Inc. (the Adviser) or of Countrywide Fund Services, Inc.
(CFS), the administrative services agent, shareholder servicing and transfer
agent, and accounting services agent for the Trust.
<PAGE>
INVESTMENT ADVISORY AGREEMENT
The Funds' investments are managed by the Adviser pursuant to the terms of an
Advisory Agreement. Each Fund pays the Adviser an investment management fee,
computed and accrued daily and paid monthly, at an annual rate of 1.00% of its
average daily net assets.
In order to voluntarily reduce operating expenses during the six months ended
September 30, 1997, the Adviser waived its entire advisory fee of $17,775 and
reimbursed $6,000 of common expenses and $6,185 of Class C expenses for the
Large Cap Value Fund; waived $12,500 of its advisory fees and reimbursed $5,884
of Class C expenses for the Small Cap Value Fund; and waived its entire advisory
fee of $18,395 and reimbursed $4,700 of common expenses and $5,681 of Class C
expenses for the Balanced Fund.
ADMINISTRATION AGREEMENT
Under the terms of an Administration Agreement, CFS supplies non-investment
related administrative and compliance services for the Funds. CFS supervises the
preparation of tax returns, reports to shareholders, reports to and filings with
the Securities and Exchange Commission and state securities commissions, and
materials for meetings of the Board of Trustees. For these services, CFS
receives a monthly fee from each Fund at an annual rate of 0.10% on its average
daily net assets up to $100 million; 0.075% on the next $100 million of such net
assets; and 0.05% on such net assets in excess of $200 million, subject to a
$1,000 minimum monthly fee.
TRANSFER AGENT AND SHAREHOLDER SERVICING AGREEMENT
Under the terms of a Transfer, Dividend, Shareholder Service and Plan Agency
Agreement, CFS maintains the records of each shareholder's account, answers
shareholders' inquiries concerning their accounts, processes purchases and
redemptions of the Funds shares, acts as dividend and distribution disbursing
agent and performs other shareholder service functions. For these services, CFS
receives a monthly fee based on the number of shareholder accounts in each class
of each Fund, subject to a $1,200 minimum monthly fee for each class of shares
of a Fund. In addition, each Fund pays out-of-pocket expenses, including but not
limited to, postage and supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of an Accounting Services Agreement, CFS calculates the daily
net asset value per share and maintains the financial books and records of the
Funds. For these services, CFS receives a monthly fee of $3,000 from each Fund.
In addition, each Fund pays certain out-of-pocket expenses incurred by CFS in
obtaining valuations of such Fund's portfolio securities.
UNDERWRITING AGREEMENT
2480 Securities LLC (Underwriter), an affiliate of the Adviser, serves as
principal underwriter for the Funds and, as such, is the exclusive agent for the
distribution of shares of the Funds. Under the terms of the Underwriting
Agreement between the Trust and the Underwriter, the Underwriter earned $80,
$5,357 and $1,317 from underwriting and broker commissions on the sale of shares
of the Large Cap Value Fund, Small Cap Value Fund and Balanced Fund,
respectively, during the six months ended September 30, 1997.
PLANS OF DISTRIBUTION
The Trust has a Plan of Distribution (Class A Plan) under which Class A shares
may directly incur or reimburse the Adviser for expenses related to the
distribution and promotion of shares. The annual limitation for payment of such
expenses under the Class A Plan is 0.25% of average daily net assets
attributable to such shares.
The Trust also has a Plan of Distribution (Class C Plan) which provides for
two categories of payments. First, the Class C Plan provides for the payment
to the Underwriter of an account maintenance fee, in an amount equal to an
annual rate of 0.25% of a Fund's average daily net assets allocable to Class C
shares. In addition, the Class C shares may directly incur or reimburse the
Underwriter in an amount not to exceed 0.75% per annum of a Fund's average
daily net assets allocable to Class C shares for certain distribution-related
expenses incurred in the distribution and promotion of the Fund's
Class C shares.
<PAGE>
DEAN FAMILY OF FUNDS
Large Cap Value Fund
Small Cap Value Fund
Balanced Fund
Semi-Annual Report
September 30, 1997
(Unaudited)
<PAGE>
DEAN FAMILY OF FUNDS
2480 Kettering Tower
Dayton, Ohio 45423
BOARD OF TRUSTEES
Victor S. Curtis
Chauncey H. Dean
Dr. Robert D. Dean
Frank J. Perez
Dr. David H. Ponitz
Frank H. Scott
Gilbert P. Williamson
INVESTMENT ADVISER
C.H. DEAN & ASSOCIATES, INC.
2480 Kettering Tower
Dayton, Ohio 45423
UNDERWRITER
2480 SECURITIES LLC
2480 Kettering Tower
Dayton, Ohio 45423
TRANSFER AGENT
COUNTRYWIDE FUND SERVICES, INC.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
SHAREHOLDER SERVICE
Nationwide: (Toll-Free) 888-899-8343 Cincinnati: 513-629-2285
TABLE OF CONTENTS
===================================================
Chairman and President's Letter..................1
Discussions of Performance:
Small Cap Value Fund........................2
Large Cap Value Fund........................3
Balanced Fund...............................4
Fund Facts.......................................5
Portfolios of Investments:
Large Cap Value Fund........................6
Small Cap Value Fund........................9
Balanced Fund..............................15
Financial Statements............................18
Notes to Financial Statements...................23
===================================================
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001027624
<NAME> DEAN FAMILY OF FUNDS
<SERIES>
<NUMBER> 11
<NAME> LARGE CAP VALUE FUND - CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<INVESTMENTS-AT-COST> 6,524,075
<INVESTMENTS-AT-VALUE> 7,076,505
<RECEIVABLES> 13,437
<ASSETS-OTHER> 32,341
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7,122,283
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 12,207
<TOTAL-LIABILITIES> 12,207
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6,532,538
<SHARES-COMMON-STOCK> 629,258
<SHARES-COMMON-PRIOR> 3,400
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 25,108
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 552,430
<NET-ASSETS> 7,028,314
<DIVIDEND-INCOME> 33,428
<INTEREST-INCOME> 7,298
<OTHER-INCOME> 0
<EXPENSES-NET> 32,910
<NET-INVESTMENT-INCOME> 7,816
<REALIZED-GAINS-CURRENT> 25,108
<APPREC-INCREASE-CURRENT> 552,430
<NET-CHANGE-FROM-OPS> 585,354
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 7,789
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 625,650
<NUMBER-OF-SHARES-REDEEMED> 429
<SHARES-REINVESTED> 637
<NET-CHANGE-IN-ASSETS> 7,028,314
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 17,775
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 62,870
<AVERAGE-NET-ASSETS> 6,938,820
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 1.22
<PER-SHARE-DIVIDEND> .02
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.22
<EXPENSE-RATIO> 1.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001027624
<NAME> DEAN FAMILY OF FUNDS
<SERIES>
<NUMBER> 13
<NAME> LARGE CAP VALUE FUND - CLASS C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<INVESTMENTS-AT-COST> 6,524,075
<INVESTMENTS-AT-VALUE> 7,076,505
<RECEIVABLES> 13,437
<ASSETS-OTHER> 32,341
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7,122,283
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 12,207
<TOTAL-LIABILITIES> 12,207
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6,532,538
<SHARES-COMMON-STOCK> 4,261
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 25,108
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 552,430
<NET-ASSETS> 47,762
<DIVIDEND-INCOME> 33,428
<INTEREST-INCOME> 7,298
<OTHER-INCOME> 0
<EXPENSES-NET> 32,910
<NET-INVESTMENT-INCOME> 7,816
<REALIZED-GAINS-CURRENT> 25,108
<APPREC-INCREASE-CURRENT> 552,430
<NET-CHANGE-FROM-OPS> 585,354
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 27
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,259
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 2
<NET-CHANGE-IN-ASSETS> 47,762
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 17,775
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 62,870
<AVERAGE-NET-ASSETS> 42,160
<PER-SHARE-NAV-BEGIN> 10.76
<PER-SHARE-NII> (.01)
<PER-SHARE-GAIN-APPREC> .47
<PER-SHARE-DIVIDEND> .01
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.21
<EXPENSE-RATIO> 2.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001027624
<NAME> DEAN FAMILY OF FUNDS
<SERIES>
<NUMBER> 21
<NAME> SMALL CAP VALUE FUND - CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<INVESTMENTS-AT-COST> 15,021,522
<INVESTMENTS-AT-VALUE> 16,852,204
<RECEIVABLES> 62,039
<ASSETS-OTHER> 34,100
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 16,948,343
<PAYABLE-FOR-SECURITIES> 120,318
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 43,645
<TOTAL-LIABILITIES> 163,963
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,482,485
<SHARES-COMMON-STOCK> 1,349,992
<SHARES-COMMON-PRIOR> 3,300
<ACCUMULATED-NII-CURRENT> 20,842
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 450,371
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,830,682
<NET-ASSETS> 16,333,896
<DIVIDEND-INCOME> 72,737
<INTEREST-INCOME> 16,203
<OTHER-INCOME> 0
<EXPENSES-NET> 68,098
<NET-INVESTMENT-INCOME> 20,842
<REALIZED-GAINS-CURRENT> 450,371
<APPREC-INCREASE-CURRENT> 1,830,682
<NET-CHANGE-FROM-OPS> 2,301,895
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,350,333
<NUMBER-OF-SHARES-REDEEMED> 3,641
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 16,300,896
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 36,682
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 86,482
<AVERAGE-NET-ASSETS> 9,150,946
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 2.08
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.10
<EXPENSE-RATIO> 1.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001027624
<NAME> DEAN FAMILY OF FUNDS
<SERIES>
<NUMBER> 23
<NAME> SMALL CAP VALUE FUND - CLASS C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<INVESTMENTS-AT-COST> 15,021,522
<INVESTMENTS-AT-VALUE> 16,852,204
<RECEIVABLES> 62,039
<ASSETS-OTHER> 34,100
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 16,948,343
<PAYABLE-FOR-SECURITIES> 120,318
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 43,645
<TOTAL-LIABILITIES> 163,963
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,482,485
<SHARES-COMMON-STOCK> 37,283
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 20,842
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 450,371
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,830,682
<NET-ASSETS> 450,484
<DIVIDEND-INCOME> 72,737
<INTEREST-INCOME> 16,203
<OTHER-INCOME> 0
<EXPENSES-NET> 68,098
<NET-INVESTMENT-INCOME> 20,842
<REALIZED-GAINS-CURRENT> 450,371
<APPREC-INCREASE-CURRENT> 1,830,682
<NET-CHANGE-FROM-OPS> 2,301,895
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 37,283
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 450,484
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 36,682
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 86,482
<AVERAGE-NET-ASSETS> 207,355
<PER-SHARE-NAV-BEGIN> 10.95
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 1.13
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.08
<EXPENSE-RATIO> 2.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001027624
<NAME> DEAN FAMILY OF FUNDS
<SERIES>
<NUMBER> 31
<NAME> BALANCED FUND - CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<INVESTMENTS-AT-COST> 7,284,435
<INVESTMENTS-AT-VALUE> 7,657,621
<RECEIVABLES> 36,869
<ASSETS-OTHER> 32,000
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7,726,490
<PAYABLE-FOR-SECURITIES> 44,245
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 18,982
<TOTAL-LIABILITIES> 63,227
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7,234,454
<SHARES-COMMON-STOCK> 666,541
<SHARES-COMMON-PRIOR> 3,300
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 55,623
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 373,186
<NET-ASSETS> 7,249,736
<DIVIDEND-INCOME> 19,413
<INTEREST-INCOME> 52,568
<OTHER-INCOME> 0
<EXPENSES-NET> 34,277
<NET-INVESTMENT-INCOME> 37,704
<REALIZED-GAINS-CURRENT> 55,623
<APPREC-INCREASE-CURRENT> 373,186
<NET-CHANGE-FROM-OPS> 466,513
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 36,201
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 665,451
<NUMBER-OF-SHARES-REDEEMED> 5,076
<SHARES-REINVESTED> 2,866
<NET-CHANGE-IN-ASSETS> 7,216,736
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 18,395
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 63,053
<AVERAGE-NET-ASSETS> 5,334,420
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .07
<PER-SHARE-GAIN-APPREC> .88
<PER-SHARE-DIVIDEND> .07
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.88
<EXPENSE-RATIO> 1.85
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001027624
<NAME> DEAN FAMILY OF FUNDS
<SERIES>
<NUMBER> 33
<NAME> BALANCED FUND - CLASS C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<INVESTMENTS-AT-COST> 7,284,435
<INVESTMENTS-AT-VALUE> 7,657,621
<RECEIVABLES> 36,869
<ASSETS-OTHER> 32,000
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7,726,490
<PAYABLE-FOR-SECURITIES> 44,245
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 18,982
<TOTAL-LIABILITIES> 63,227
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7,234,454
<SHARES-COMMON-STOCK> 38,065
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 55,623
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 373,186
<NET-ASSETS> 413,527
<DIVIDEND-INCOME> 19,413
<INTEREST-INCOME> 52,568
<OTHER-INCOME> 0
<EXPENSES-NET> 34,277
<NET-INVESTMENT-INCOME> 37,704
<REALIZED-GAINS-CURRENT> 55,623
<APPREC-INCREASE-CURRENT> 373,186
<NET-CHANGE-FROM-OPS> 466,513
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,503
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 37,927
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 138
<NET-CHANGE-IN-ASSETS> 413,527
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 18,395
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 63,053
<AVERAGE-NET-ASSETS> 213,751
<PER-SHARE-NAV-BEGIN> 10.71
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> .18
<PER-SHARE-DIVIDEND> .04
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.86
<EXPENSE-RATIO> 2.60
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
