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[LOGO] D E A N
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family of funds
Large Cap Value Fund
Small Cap Value Fund
Balanced Fund
International Value Fund
[LOGO]
Semi-Annual Report
September 30, 1998
(Unaudited)
<PAGE>
CHAIRMAN AND PRESIDENT'S LETTER
================================================================================
To Investors in the Dean Family of Funds:
The old "good news/bad news" line is overused, to be sure, but this was
definitely the scenario for value investors during the six months ended
September 30, 1998. Prices of value stocks were often hard hit, even when their
prospects were unaffected by the international financial woes which worried the
markets so. While that curbed our returns in the short run, the effect is to
turn a good many solid values into exceptional values.
Our Small Cap Value Fund and International Value Fund outperformed their
benchmarks during the six months. Our Large Cap Value Fund and Balanced Fund
fell short. Yet, the underlying fundamentals of the stocks we have researched
and selected provide strong reason to believe each of these Funds will excel
over the longer term.
All of the Dean Funds are young, and the costs of building their portfolios is
reflected in their early performance. Cumulative returns of the Small Cap Value,
Large Cap Value and Balanced Funds have been positive in each case. The
International Value Fund, while down 3.8%, has outperformed the benchmark Morgan
Stanley EAFE (Europe, Australia and Far East).
What has changed in the market environment during the past six months? Investors
have had to deal with the economic uncertainty in Asia, an economic "train
wreck" in Russia and the combination of currency woes and economic problems in
South America. Then, the near-collapse of a large hedge fund in the U.S.
reminded them that we are not insulated from developments on other shores.
Events abroad have had impact on the U.S. economic outlook, though they do not
necessarily dominate it. Competition from distressed Asian and South American
economies will curb the rate of profit growth in the U.S. Consumer confidence
fluctuates. At the same time, inflation and interest rates are at very low
levels, and investment-driven expansion continues.
Volatility in U.S. financial markets will remain relatively high. The economic
and financial problems of Asia will require considerable work and time to
correct. And reduced global economic growth has occurred since July 1997, when
the problems in Asia first surfaced. Hence, our exports to other parts of the
world will probably continue to be weak for some time.
Naturally, we prefer to avoid the effects of the stock market's volatility on
the near-term returns of the Dean Family of Funds. But we proceed in the
knowledge that as an investor in these Funds, your goals are long-term. As you
review the reports of the individual Funds, we believe you will see why we
believe that market corrections -- especially in a time when stocks are greatly
overvalued -- ultimately work to the benefit of long-term, value investors.
Certainly, value opportunities are present to a greater extent today than has
been the case for many years.
Sincerely,
/s/ Chauncey H. Dean /s/ Robert D. Dean
Chauncey H. Dean Robert D. Dean
Chairman of the Board and President and Chief
Chief Executive Officer Investment Officer
C.H. Dean & Associates, Inc. C.H. Dean & Associates, Inc.
1
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Small Cap Value Fund
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The Market's Own El Nino Effect
Investors -- particularly those in the small cap area -- experienced rugged seas
during the first half of our fiscal year (through September 30, 1998). Though
the Small Cap Value Fund outperformed its benchmark, the Russell 2000, by almost
400 basis points, it lost 20% during those six months.
Even the performance of the Russell 2000 somewhat understates the general
decline. For most stocks, the correction began in the third quarter of 1997.
(The Dow Jones and S&P 500 stock indices, buoyed by strong foreign demand for
the very largest of the mega-cap stocks, didn't begin to reflect its magnitude.)
Looking at the universe of stocks with market caps between $30 million and $750
million (where you will find the vast bulk of the Fund's holdings), the median
decline was 23.8% over the recent six-month period.
The Small Cap Value Fund has an average market capitalization of $213 million.
Its weighted average P/E, based on trailing earnings, is 8.2X. That is about
half the average P/E of the Russell 2000 index. The Fund's weighted
price-to-book ratio is only 0.9X vs. 1.6X for the Russell 2000 index. The
downside of those comparisons is that many of the Fund's stocks lost significant
value. The upside is that they represent the kind of extraordinary bargains
which are sure to be recognized.
Extraordinary Bargains in Small Cap Stocks
In the small cap area there are scores of companies that have fallen by more
than 80% from their highs of earlier this year. Many have seen no real change in
the fundamentals of their businesses.
Today's disparity in valuations between mega-cap and small cap stocks has rarely
been seen before. The current disparity is larger than was seen at the bottom of
the 1990 bear market for small caps. It is equivalent to that of 1974. After
1990, small cap stocks significantly outperformed the market for three years.
After 1974, small cap stocks significantly outperformed for almost seven
straight years. While there is no guarantee that history will repeat itself, we
continue to believe that small cap value stocks are a good place to invest
today.
2
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Large Cap Value Fund
================================================================================
Being Big Helped Only the Very Biggest
Value investors were especially tested during the six months ended September 30,
1998, and those in the Large Cap Value Fund were no exception. The Fund's value
fell 18.3%. Meanwhile, the Russell 1000 Index, which we use as a benchmark for
rating the Fund's performance, fell 8.1% during the same period.
In analyzing the difference, it is pertinent to note that the mega-cap sector of
the market is little represented in the Fund's portfolio. Stocks of these huge
companies have not been in the value stock category for a long time. Mega-cap
stocks include the 25 largest domestic firms based on market capitalization. All
are part of the Russell 1000 Index. The flight of overseas investors to the
largest, best-known stocks in the U.S. has driven up their prices this year,
despite already expensive valuations.
The performance of those 25 mega-cap stocks has a huge influence on the Russell
1000 or any other index which includes them. They comprise more than 35% of the
total capitalization of the S&P 500, and their prices rose by an average of more
than 10% during the last six-month period. Meanwhile, the overall S&P 500
(including the mega-caps) was down 7%.
Keeping Focused on Value
On average these top 25 stocks are selling for more than 26X trailing earnings,
5.6X sales and over 12X book value. The Large Cap Value Fund, on the other hand,
has an average P/E of 11.9X and sells for 1.0X sales and 1.8X book value. Only
two of these super size firms are currently in the portfolio -- Philip Morris
and AT&T. Both are significantly cheaper than the other 23 mega-caps.
We have shielded the Large Cap Value Fund by emphasizing firms which derive most
of their revenues and profits from domestic sources. Even so, the ripple effect
from international financial turbulence took its toll.
The strategy worked well in the case of electric utilities, which we
overweighted. These businesses are domestic and interest rate-sensitive, a great
advantage, since interest rates are the lowest they've been for 30 years.
The same logic fit insurance companies. But in this case, financial jitters over
events abroad affected the market's view of the whole category of financial
services companies, even though their earnings have held up very well. We
continue to hold these investments, based on their strong balance sheets, solid
and growing earnings and the fact they are trading at substantial discounts to
the overall market.
3
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Balanced Fund
================================================================================
The Balanced Fund is made up of solid value stocks and prime-quality,
medium-length bonds. The proportion of stocks varies from 40% to 75%, depending
on the overall market outlook as indicated by Dean's Tactical Asset Allocation
models.
Good performance by fixed income issues was offset by a decline in the equity
portion of the Fund's portfolio. The result was a decline of -7.46% in the
Fund's value during the six months ended September 30, 1998. The Fund has a
positive 6.4% total return since inception (May 28, 1997).
Caution was the Overall Approach
The Fund's investment posture has been relatively cautious all year. The
portfolio has been 52%-55% invested in stocks for much of the six-month period.
And, the mix of equities has emphasized defensive holdings, such as utilities
and REITs. Equity holdings have included a 4-5% position in relatively
conservative electric utilities, which performed quite well, and 3-4% in REITs,
which were down more than the indices, despite their solid fundamentals and good
yield.
Two sectors which disappointed during the period are financial services and
energy services. Financial services stocks, despite the fact that the Fund's
holdings emphasize domestic holdings, were hit by panic selling related to
monetary problems in Asia and Russia. Investments made in the energy services
industry were also hurt by negative investor psychology, stemming from
uncertainty about oil prices.
Solid Companies, Value Prices
In both cases, the stocks purchased represent excellent values. The companies
are financially sound, with good long-term earnings prospects. We took advantage
of the lower prices for several of these and other stocks to purchase additional
shares late in the third quarter.
The fixed income portion of the Fund's portfolio includes high-grade corporate
bonds and U.S. Treasuries. During the period, a somewhat higher than normal
portion was held in money market funds which could readily be used to purchase
equities at particularly attractive prices.
While overall stock market volatility is expected to continue into 1999, the
strengthening in the market should work to the advantage of the Balanced Fund.
Its equity investments are in strong companies and made at bargain valuations.
Meanwhile, the fixed income securities sector provides a stable base upon which
to build above average long-term returns.
4
<PAGE>
International Value Fund
================================================================================
Since its inception, just a year ago, the International Value Fund has
outperformed the benchmark Morgan Stanley EAFE Index (Europe, Australia and Far
East) in markets hammered by downward volatility. While the six months ended
September 30, 1998 were especially difficult, the Fund's -11.73% return for the
past year compares favorably with that of the EAFE Index which was down by
- -13.18%.
During the first half of 1998, strong rallies occurred in Western equity
markets, with Europe leading the way. The Fund's early focus on European markets
was well rewarded, though performance there has leveled off during the past
three months.
European Environment Positive for Investors
The long-term outlook for investment in Europe continues to be favorable,
despite concerns about some European economies. Many European companies are
undergoing the same kind of sometimes painful process of restructuring and
modernization that has served U.S. industry so well in recent years. These
companies are emphasizing value to the shareholder, a trend which certainly
proved beneficial in the U.S.
The Fund has had relatively less exposure to Asian and Latin American equity
markets. The financial, economic and monetary problems of both these emerging
areas have been well reported. Any negative news about currency rates, debt,
etc. is quickly reflected in these markets.
Asia and Latin America -- Sharing the Pain, Ready to Gain?
This has driven stock prices down to a level at which good values are to be
found. We believe many of these stocks may be near their lows, even in the face
of additional underperformance in their regions' economies. For selected stocks,
this presents compelling value for investors whose time horizon exceeds a year
or so. As a result, the Fund increased its holdings in companies in the Pacific
Basin and in Latin America during the latter part of the summer.
5
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FUND FACTS
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SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
Top Holdings
Castle Energy Corp. Audiovox Corp. - Class A
Advanced Marketing Services, Inc. Duckwall -- ALCO Stores, Inc.
M/I Schottenstein Homes, Inc. Engle Homes, Inc.
Beazer Homes USA, Inc. Patrick Industries, Inc.
Hovnanian Enterprises Inc. -- Class A Bell Industries, Inc.
Number of Positions .......................................... 168
Median Price/Earnings Ratio .................................. 8.2
Portfolio Turnover (4/1/98 - 9/30/98) ........................ 59%
LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------
Top Holdings
Philip Morris Cos., Inc. General Re Corp.
Houston Industries, Inc. Ambac Financial Group, Inc.
Loews Corp. Caterpillar Inc.
Vulcan Materials Co. Chrysler Corp.
Allstate Corp. (The) Potash Corp. of Saskatchewan Inc.
Number of Positions ........................................... 56
Median Price/Earnings Ratio ................................... 11.9
Portfolio Turnover (4/1/98 - 9/30/98) ......................... 32%
BALANCED FUND
- --------------------------------------------------------------------------------
Top Equity Holdings
Philip Morris Cos., Inc. Diamond Offshore Drilling
News Corporation Ltd. (The)(ADR) Trinity Industries, Inc.
AT&T Corp. Columbia/HCA Healthcare Corp.
Tricon Global Restaurants, Inc. DPL Inc.
Clayton Homes, Inc. Tidewater, Inc.
Number of Positions ........................................... 46
Median Price/Earnings Ratio ................................... 12.1
Portfolio Turnover (4/1/98 - 9/30/98) ......................... 58%
6
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FUND FACTS
================================================================================
INTERNATIONAL VALUE FUND
- --------------------------------------------------------------------------------
Top Holdings
Novartis British Telecommunications Plc
Sanofi SA BCE Mobile Communications Inc.
Telecom Italia SPA Mannesmann AG
Telefonica de Espana Glaxo Wellcome Plc
BCE, Inc. National Grid Group Plc
Number of Positions .......................................... 112
Median Price/Earnings Ratio .................................. 25.2
Portfolio Turnover (4/1/98 - 9/30/98) ........................ 96%
7
<PAGE>
LARGE CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30,1998 (Unaudited)
================================================================================
Shares COMMON STOCKS -- 97.5% Value
- --------------------------------------------------------------------------------
AEROSPACE -- 3.1%
4,000 General Dynamics Corp. ....................... $ 200,750
2,000 Rockwell International Corp. ................. 72,250
-----------
273,000
-----------
AUTOMOTIVE -- 7.0%
4,500 Chrysler Corp. ............................... 215,437
3,500 Ford Motor Co. ............................... 164,281
1,500 General Motors Corp. ......................... 82,031
4,000 PACCAR Inc. .................................. 164,750
-----------
626,499
-----------
AUTOMOTIVE PARTS -- 0.7%
2,000 Genuine Parts Co. ............................ 60,125
-----------
BANKING -- 1.1%
2,600 Republic New York Corp. ...................... 102,700
-----------
BUILDING PRODUCTS -- 3.4%
1,000 Armstrong World Industries, Inc. ............. 53,500
2,500 Vulcan Materials Co. ......................... 252,968
-----------
306,468
-----------
CAPITAL GOODS -- 6.4%
5,000 Caterpiller Inc. ............................. 222,812
6,000 Deere & Co. .................................. 181,500
2,000 Fluor Corp. .................................. 82,125
3,000 Parker-Hannifin Corp. ........................ 89,063
-----------
575,500
-----------
CHEMICALS -- 4.7%
1,500 Dow Chemical Co., (The) ...................... 128,156
4,000 Potash Corp. of Saskatchewan Inc. ............ 210,500
3,000 Rohm & Haas Co. .............................. 83,437
-----------
422,093
-----------
ELECTRONICS -- 1.5%
63 Raytheon Co. - Class A ....................... 3,264
2,500 Raytheon Co. - Class B ....................... 134,844
-----------
138,108
-----------
ENERGY -- 6.7%
5,000 Diamond Offshore Drilling, Inc. .............. 130,000
8,000 ENSCO International Inc. ..................... 86,500
10,000 Tidewater, Inc. .............................. 207,500
-----------
424,000
-----------
8
<PAGE>
LARGE CAP VALUE FUND (continued)
================================================================================
Shares COMMON STOCKS -- 97.5% Value
- --------------------------------------------------------------------------------
FINANCIAL SERVICES -- 7.6%
5,000 Ambac Financial Group, Inc. .................. $ 240,000
4,000 Bear Stearns Cos., Inc. ...................... 123,750
3,000 Chase Manhattan Corp. ........................ 129,750
6,000 Edwards (A.G.), Inc. ......................... 181,875
-----------
675,375
-----------
HOUSING -- 2.3%
12,000 Clayton Homes, Inc. .......................... 203,250
-----------
INSURANCE -- 17.5%
3,400 AFLAC, Inc. .................................. 97,113
6,000 Allstate Corp. (The) ......................... 250,125
2,000 American National Insurance Co. .............. 167,000
6,415 Conseco, Inc. ................................ 196,058
1,200 General Re Corp. ............................. 243,600
3,000 Jefferson-Pilot Corp. ........................ 181,500
500 SAFECO Corp. ................................. 20,844
1,800 Transamerica Corp. ........................... 190,800
2,500 Transatlantic Holdings, Inc. ................. 206,875
-----------
1,553,915
-----------
METALS -- 4.5%
9,000 British Steel plc (ADR) ...................... 163,688
2,800 Phelps Dodge Corp. ........................... 146,125
4,000 USX-U.S. Steel Group, Inc. ................... 95,500
-----------
405,313
-----------
MORTGAGE SERVICES -- 5.6%
2,500 Countrywide Credit Industries, Inc. .......... 104,062
2,000 EXEL Limited-Class A ......................... 126,000
2,400 MBIA, Inc. ................................... 128,850
3,000 PMI Group, Inc. (The) ........................ 137,250
-----------
496,162
-----------
RETAIL -- 3.7%
5,000 Dillard's, Inc. .............................. 141,563
18,000 Food Lion, Inc. - Class A .................... 191,250
-----------
332,813
-----------
TELECOMMUNICATIONS -- 4.1%
4,000 Alltel Corp. ................................. 189,500
3,000 AT&T Corp. ................................... 175,312
-----------
364,812
-----------
9
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LARGE CAP VALUE FUND (continued)
================================================================================
Shares COMMON STOCKS -- 97.5% Value
- --------------------------------------------------------------------------------
TOBACCO -- 7.1%
3,000 Loews Corp. .................................. $ 253,125
7,000 Philip Morris Cos., Inc. ..................... 322,438
2,000 UST, Inc. .................................... 59,125
-----------
634,688
-----------
TRANSPORTATION -- 4.6%
5,000 CSX Corp. .................................... 210,313
7,000 Norfolk Southern Corp. ....................... 203,438
-----------
413,751
-----------
UTILITIES -- 7.9%
2,000 Consolidated Edison Co. of New York, Inc. .... 104,250
6,000 DPL Inc. ..................................... 117,750
9,000 Houston Industries, Inc. ..................... 280,125
7,000 Southern Co. ................................. 206,063
-----------
708,188
-----------
TOTAL COMMON STOCKS (COST $9,456,343) $ 8,716,760
-----------
================================================================================
Shares MONEY MARKET -- 2.6% Value
- --------------------------------------------------------------------------------
233,494 Star Treasury Fund (Cost $233,494) ........... $ 233,494
-----------
Total Investments at Value -- 100.1%
(Cost $9,689,837) .......................... $ 8,950,254
Liabilities in Excess of Other Assets -- (0.1)% (5,917)
-----------
Net Assets -- 100.0% ......................... $ 8,944,337
===========
ADR - American Depository Receipt
See accompanying notes to financial statements.
10
<PAGE>
SMALL CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1998 (Unaudited)
================================================================================
Shares COMMON STOCKS -- 97.3% Value
- --------------------------------------------------------------------------------
AUTOMOTIVE -- 2.1%
8,000 Excel Industries, Inc. ....................... $ 100,000
7,000 Oshkosh Truck Corp. .......................... 175,000
20,000 TBC Corp.(a) ................................. 120,000
-----------
395,000
-----------
AUTOMOTIVE PARTS -- 0.6%
2,000 Arvin Industries, Inc. ....................... 74,500
5,000 R & B, Inc.(a) ............................... 34,062
-----------
108,562
-----------
BEVERAGE -- 0.2%
5,000 Todhunter International, Inc.(a) ............. 34,688
-----------
BUILDING PRODUCTS -- 4.0%
25,000 American Residential Services, Inc.(a) ....... 100,000
3,000 Ameron International Corp. ................... 105,750
8,000 Building Materials Holding Corp.(a) .......... 105,000
9,000 Cameron Ashley Building Products(a) .......... 100,687
22,200 Martin Industries, Inc. ...................... 67,988
14,000 Patrick Industries, Inc. ..................... 206,500
10,000 Trans Pro, Inc. .............................. 50,000
-----------
735,925
-----------
BUILDING SUPPLIES -- 0.9%
15,000 Wolohan Lumber Co. ........................... 170,625
-----------
CAPITAL GOODS -- 6.4%
28,000 AGCO Corp. ................................... 185,500
6,000 Amcast Industrial Corp. ...................... 88,125
5,000 Baldwin Technology Co., Inc. - Class A(a) .... 27,500
14,000 Bridgeport Machines, Inc.(a) ................. 120,750
10,000 Central Sprinkler Corp.(a) ................... 118,750
15,000 Defiance, Inc. ............................... 112,500
7,000 Foster Wheeler Corp. ......................... 96,250
8,000 Gehl Co.(a) .................................. 109,000
20,000 Global Industrial Technologies, Inc.(a) ...... 140,000
4,500 Hardinge, Inc. ............................... 99,000
14,000 Perini Corp.(a) .............................. 97,125
-----------
1,194,500
-----------
CHEMICALS -- 0.9%
7,000 Mississippi Chemical Corp. ................... 84,875
7,000 Wellman, Inc. ................................ 89,250
-----------
174,125
-----------
ELECTRONICS -- 2.5%
16,760 Bell Industries, Inc.(a) ..................... 200,073
8,000 Cherry Corp. - Class A(a) .................... 93,000
3,000 Cherry Corp. - Class B(a) .................... 34,500
3,500 ESCO Electronics Corp.(a) .................... 35,875
11
<PAGE>
SMALL CAP VALUE FUND (continued)
================================================================================
Shares COMMON STOCKS -- 97.3% Value
- --------------------------------------------------------------------------------
ELECTRONICS -- 2.5% (CONTINUED)
10,000 IEC Electronics Corp.(a) ..................... $ 50,000
2,000 Pioneer-Standard Electronics, Inc. ........... 12,625
9,000 SED International Holdings, Inc.(a) .......... 45,562
-----------
471,635
-----------
ENERGY -- 4.2%
7,300 BP Prudhoe Bay Royalty Trust ................. 67,981
3,000 CMS Energy Corp. - Class G ................... 73,125
16,000 Castle Energy Corp.(a) ....................... 281,000
3,000 Giant Industries, Inc. ....................... 36,188
5,000 NUI Corp. .................................... 115,000
5,000 Petroleum Development Corp.(a) ............... 26,250
25,000 Trico Marine Services, Inc.(a) ............... 173,437
-----------
772,981
-----------
FINANCIAL SERVICES -- 0.9%
20,000 EZCORP, Inc. - Class A(a) .................... 163,750
-----------
FOOD -- 2.5%
9,000 Fleming Cos., Inc. ........................... 110,250
20,000 M&F Worldwide Corp.(a) ....................... 198,750
10,000 Nash-Finch Co. ............................... 146,875
-----------
455,875
-----------
FURNITURE -- 0.7%
12,000 Flexsteel Industries, Inc. ................... 130,500
-----------
GAMING -- 1.1%
9,000 Grand Casinos, Inc.(a) ....................... 71,438
7,627 MeriStar Hospitality Corp. ................... 130,136
-----------
201,574
-----------
HEALTH CARE -- 1.0%
15,000 Safeguard Health Enterprises, Inc.(a) ........ 75,000
85,000 Staff Builders, Inc. - Class A(a) ............ 53,125
10,000 Sun Healthcare Group, Inc.(a) ................ 65,000
-----------
193,125
-----------
HOUSING -- 9.9%
14,000 ABT Building Products Corp.(a) ............... 147,000
11,000 Beazer Homes USA, Inc.(a) .................... 226,875
6,000 Cavalier Homes, Inc. ......................... 55,875
15,000 Engle Homes, Inc. ............................ 213,281
24,000 Hovnanian Enterprises Inc. - Class A(a) ...... 225,000
3,466 Lennar Corp. ................................. 77,335
10,000 M.D.C. Holdings, Inc. ........................ 184,375
14,000 M/I Schottenstein Homes, Inc.(a) ............. 259,000
2,200 Pulte Corp. .................................. 54,037
6,000 Ryland Group, Inc. (The) ..................... 146,250
8,000 Webb (Del) Corp. ............................. 168,500
11,000 Zaring National Corp.(a) ..................... 82,500
-----------
1,840,028
-----------
12
<PAGE>
SMALL CAP VALUE FUND (continued)
================================================================================
Shares COMMON STOCKS -- 97.3% Value
- --------------------------------------------------------------------------------
INSURANCE -- 4.9%
5,000 ALLIED Life Financial Corp. .................. $ 146,875
5,000 Chartwell Re Corp. ........................... 139,688
1,300 Citizens Corp. ............................... 35,019
2,310 Donegal Group, Inc. .......................... 35,228
4,000 EMC Insurance Group, Inc. .................... 50,000
4,000 PXRE Corp. ................................... 102,750
5,000 SCPIE Holdings Inc. .......................... 155,625
2,000 Selective Insurance Group, Inc. .............. 38,250
2,000 Stewart Information Services Corp. ........... 115,250
3,000 Trenwick Group Inc. .......................... 87,375
-----------
906,060
-----------
METALS -- 4.7%
9,000 Ampco-Pittsburgh Corp. ....................... 131,625
9,000 Atchison Casting Corp.(a) .................... 89,438
12,000 Bayou Steel Corp.(a) ......................... 46,500
3,500 Cleveland-Cliffs Inc. ........................ 136,500
4,000 Commercial Metals Co. ........................ 92,000
25,000 National Steel Corp. - Class B(a) ............ 175,000
2,800 Pitt-Des Moines, Inc. ........................ 61,600
11,000 Rouge Industries, Inc. - Class A ............. 82,500
11,000 Steel of West Virginia, Inc.(a) .............. 67,375
-----------
882,538
-----------
MISCELLANEOUS -- 4.8%
10,000 Arctic Cat, Inc. ............................. 89,375
25,000 CNS, Inc.(a) ................................. 95,312
4,000 CTG Resources, Inc. .......................... 96,750
15,000 Heilig - Meyers Co. .......................... 107,813
418 Horizon Group Properties, Inc.(a) ............ 992
23,000 Hvide Marine Inc.(a) ......................... 165,313
20,000 Pool Energy Services Co.(a) .................. 182,500
20,000 Pride International, Inc.(a) ................. 160,000
-----------
898,055
-----------
MORTGAGE SERVICES -- 0.6%
6,000 MMI Cos., Inc. ............................... 107,625
-----------
PAPER AND CONTAINERS -- 0.7%
19,000 Mercer International, Inc. ................... 124,688
-----------
POLLUTION -- 0.4%
35,000 American ECO Corp.(a) ........................ 79,843
-----------
REAL ESTATE -- 14.7%
12,000 Berkshire Realty Company, Inc. ............... 125,250
9,000 Brandywine Realty Trust ...................... 172,125
4,000 Capstone Capital Corp. ....................... 84,125
9,000 Commercial Net Lease Realty .................. 131,625
5,000 Criimi Mae, Inc. ............................. 44,062
8,000 Crown American Realty Trust .................. 68,500
13
<PAGE>
SMALL CAP VALUE FUND (continued)
================================================================================
Shares COMMON STOCKS -- 97.3% Value
- --------------------------------------------------------------------------------
REAL ESTATE -- 14.7% (CONTINUED)
17,000 Dynex Capital, Inc. .......................... $ 143,438
7,000 EastGroup Properties, Inc. ................... 132,125
5,000 First Washington Realty Trust, Inc. .......... 118,750
5,000 Health Care REIT, Inc. ....................... 133,125
15,000 Imperial Credit Commercial
Mortgage Investment Corp. .................. 146,250
18,000 Jameson Inns, Inc. ........................... 175,500
7,000 Kranzco Realty Trust ......................... 114,187
2,400 New Plan Excel Realty Trust .................. 55,950
5,000 Mid-America Apartment Communities, Inc. ...... 129,375
7,000 Pacific Gulf Properties, Inc. ................ 140,875
3,000 PMC Commercial Trust ......................... 55,305
5,970 Prime Retail, Inc. ........................... 58,581
14,000 RFS Hotel Investors, Inc. .................... 168,000
7,000 Ramco-Gershenson Properties Trust ............ 114,625
3,000 Sovran Self Storage, Inc. .................... 78,750
17,000 Thornburg Mortgage Asset Corp. ............... 153,000
22,000 Winston Hotels, Inc. ......................... 191,125
-----------
2,734,648
-----------
RESTAURANTS -- 1.9%
14,000 Cooker Restaurant Corp. ...................... 136,500
4,000 Rare Hospitality International, Inc.(a) ...... 43,000
15,000 Ryan's Family Steak Houses, Inc.(a) .......... 179,062
-----------
358,562
-----------
RETAIL -- 14.1%
15,000 Advanced Marketing Services, Inc.(a) ......... 261,562
15,000 Bon-Ton Stores, Inc. (The)(a) ................ 112,500
35,000 Books-A-Million, Inc.(a) ..................... 89,688
8,000 Burlington Industries, Inc.(a) ............... 76,000
17,000 Dixie Group, Inc. (The) ...................... 110,500
17,000 Duckwall-ALCO Stores, Inc.(a) ................ 216,750
20,000 Dyersburg Corp. .............................. 77,500
25,000 Friedman's Inc. - Class A(a) ................. 162,500
25,000 GT Bicycles, Inc.(a) ......................... 199,219
15,000 Ingles Markets, Inc. - Class A ............... 176,250
17,900 Jan Bell Marketing, Inc.(a) .................. 116,350
6,800 Lifetime Hoan Corp. .......................... 62,050
6,000 Marsh Supermarkets, Inc. - Class B ........... 76,500
11,000 Mikasa, Inc. ................................. 123,062
6,500 Movie Gallery, Inc.(a) ....................... 26,000
20,000 PharMerica, Inc.(a) .......................... 108,750
14,000 REX Stores Corp.(a) .......................... 148,750
10,000 Rival Co. (The) .............................. 80,000
5,700 Sportman's Guide, Inc. (The)(a) .............. 20,662
2,800 Superior Uniform Group Inc. .................. 34,650
3,000 Supreme International Corp.(a) ............... 34,500
14,000 Syms Corp.(a) ................................ 145,250
15,000 Tandycrafts, Inc.(a) ......................... 58,125
20,000 Worldtex, Inc.(a) ............................ 95,000
-----------
2,612,118
-----------
14
<PAGE>
SMALL CAP VALUE FUND (continued)
================================================================================
Shares COMMON STOCKS -- 97.3% Value
- --------------------------------------------------------------------------------
SEMICONDUCTOR -- 0.9%
8,000 Kulicke & Soffa Industries, Inc.(a) .......... $ 109,000
12,000 SEMX Corp.(a) ................................ 32,250
27,000 Xicor, Inc.(a) ............................... 33,750
-----------
175,000
-----------
TECHNOLOGY -- 2.2%
25,000 Kentek Information Systems, Inc. ............. 160,937
7,000 Miami Computer Supply Corp.(a) ............... 111,562
14,000 Nam Tai Electronics, Inc. .................... 145,250
-----------
417,749
-----------
TELECOMMUNICATIONS -- 1.6%
8,400 Atlantic Tele-Network, Inc.(a) ............... 69,300
39,500 Audiovox Corp. - Class A(a) .................. 222,188
-----------
291,488
-----------
TOBACCO -- 1.5%
15,000 DIMON, Inc. .................................. 158,438
17,000 Standard Commercial Corp. .................... 126,437
-----------
284,875
-----------
TRANSPORTATION -- 2.6%
5,000 Maritrans Inc. ............................... 35,000
12,000 Offshore Logistics, Inc.(a) .................. 151,500
12,000 Pittston BAX Group ........................... 89,250
6,000 RailTex, Inc.(a) ............................. 70,500
18,000 Rural/Metro Corp.(a) ......................... 144,000
-----------
490,250
-----------
TRUCKING -- 1.8%
12,000 Arkansas Best Corp.(a) ....................... 69,000
10,000 Consolidated Freightways Corp.(a) ............ 82,500
7,000 Roadway Express, Inc. ........................ 77,000
8,000 Yellow Corp.(a) .............................. 108,000
-----------
336,500
-----------
UTILITY -- 1.8%
1,000 Central Hudson Gas & Electric ................ 41,875
10,000 Central Vermont Public Service ............... 108,125
2,000 Eastern Utilities Associates ................. 52,250
4,000 TNP Enterprises, Inc. ........................ 139,750
-----------
342,000
-----------
TOTAL COMMON STOCKS (COST $21,634,883) ....... $18,082,213
-----------
15
<PAGE>
SMALL CAP VALUE FUND (continued)
================================================================================
Shares PREFERRED STOCK -- 0.7% Value
- --------------------------------------------------------------------------------
4,200 Bradley Real Estate, Inc., 8.400% ............ $ 97,650
2,000 Prime Retail, Inc., 8.500% ................... 34,000
-----------
TOTAL PREFERRED STOCKS (COST $147,511) $ 131,650
-----------
================================================================================
Shares MONEY MARKET -- 0.6% Value
- --------------------------------------------------------------------------------
115,829 Star Treasury Fund (Cost $115,829) $ 115,829
-----------
TOTAL INVESTMENTS AT VALUE -- 98.6%
(COST $21,898,223) ......................... $18,329,692
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.4% 258,301
-----------
NET ASSETS -- 100.0% ......................... $18,587,993
===========
(a) Non-income producing security.
See accompanying notes to financial statements.
16
<PAGE>
BALANCED FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1998 (Unaudited)
================================================================================
Shares COMMON STOCKS -- 55.5% Value
- --------------------------------------------------------------------------------
AIRLINES -- 0.8%
3,500 Comair Holdings, Inc. ........................ $ 100,625
-----------
AUTOMOTIVE -- 2.3%
3,000 Ford Motor Co. ............................... 144,156
3,500 PACCAR Inc. .................................. 140,812
-----------
284,968
-----------
BUILDING MATERIALS -- 0.7%
2,000 Martin Marietta Materials, Inc. .............. 86,375
-----------
Capital Goods -- 2.0%
7,500 AGCO Corp. ................................... 49,687
6,000 Trinity Industries, Inc. ..................... 194,625
-----------
244,312
-----------
CHEMICALS -- 0.9%
2,000 Potash Corp. of Saskatchewan Inc. ............ 105,250
-----------
ELECTRONICS -- 1.3%
3,050 Raytheon Co. - Class B ....................... 164,509
-----------
ENERGY -- 3.8%
8,000 Diamond Offshore Drilling, Inc. .............. 208,000
7,000 R&B Falcon Corp.(a) .......................... 84,000
8,500 Tidewater, Inc. .............................. 176,375
-----------
468,375
-----------
FINANCIAL SERVICES -- 1.9%
3,000 Ambac Financial Group, Inc. .................. 144,000
2,000 Chase Manhattan Corp. (The) .................. 86,500
-----------
230,500
-----------
GOVERNMENT SPONSORED ENTERPRISES -- 1.1%
2,000 Federal National Mortgage Association ........ 128,500
-----------
HEALTH CARE -- 1.5%
9,000 Columbia/HCA Healthcare Corp. ................ 180,563
-----------
HOUSING -- 1.7%
12,500 Clayton Homes, Inc. .......................... 211,719
-----------
INSURANCE -- 2.7%
4,000 AFLAC, Inc. .................................. 114,250
3,382 Conseco, Inc. ................................ 103,362
8,800 Frontier Insurance Group, Inc. ............... 116,600
-----------
334,212
-----------
17
<PAGE>
BALANCED FUND (continued)
================================================================================
Shares COMMON STOCKS -- 55.5% Value
- --------------------------------------------------------------------------------
MEDIA -- 4.1%
2,000 Cox Communications, Inc. - Class A(a) ........ $ 109,250
17,500 News Corporation Ltd. (The) (ADR) ............ 391,562
-----------
500,812
-----------
MORTGAGE SERVICES -- 3.2%
3,000 Countrywide Credit Industries, Inc. .......... 124,875
3,500 MGIC Investment Corp. ........................ 129,063
3,000 PMI Group, Inc. (The) ........................ 137,250
-----------
391,188
-----------
RESTAURANTS -- 3.3%
6,000 Cracker Barrel Old Country Store, Inc. ....... 136,500
7,000 Tricon Global Restaurants, Inc.(a) ........... 273,000
-----------
409,500
-----------
RETAIL -- 1.2%
3,500 Payless ShoeSource, Inc.(a) .................. 144,813
-----------
REAL ESTATE -- 4.8%
7,000 Duke Realty Investments, Inc. ................ 162,312
3,000 Health Care Property Investors, Inc. ......... 99,000
5,000 Simon Property Group, Inc. ................... 148,750
5,000 Storage USA, Inc. ............................ 173,125
-----------
583,187
-----------
SEMICONDUCTOR -- 0.8%
4,000 Applied Materials, Inc.(a) ................... 101,000
-----------
TECHNOLOGY -- 2.4%
4,000 ECI Telecommunications Ltd. .................. 98,000
3,500 NCR Corp.(a) ................................. 100,625
6,000 Wall Data, Inc.(a) ........................... 91,500
-----------
290,125
-----------
TELECOMMUNICATIONS -- 4.3%
2,220 ALLTEL Corp. ................................. 105,173
6,000 AT&T Corp. ................................... 350,625
900 Sprint Corp. ................................. 64,800
-----------
520,598
-----------
TOBACCO -- 3.8%
10,000 Phillip Morris Cos., Inc. .................... 460,625
-----------
TRANSPORTATION -- 2.3%
3,000 CSX Corp. .................................... 126,188
14,000 Halter Marine Group, Inc.(a) ................. 159,250
-----------
285,438
-----------
18
<PAGE>
BALANCED FUND (continued)
================================================================================
Shares COMMON STOCKS -- 55.5% Value
- --------------------------------------------------------------------------------
UTILITIES -- 4.6%
9,000 DPL Inc. ..................................... $ 176,625
3,000 Houston Industries, Inc. ..................... 93,375
3,000 Illinova Corp. ............................... 86,063
2,000 NIPSCO Industries, Inc. ...................... 65,750
5,000 Southern Co. ................................. 147,188
-----------
569,001
-----------
TOTAL COMMON STOCKS (COST $7,262,980) ........ $ 6,796,195
-----------
================================================================================
Par Value FIXED INCOME OBLIGATIONS -- 34.9% Value
- --------------------------------------------------------------------------------
$ 300,000 U.S. Treasury Note, 5.875%, 11/15/99 ......... $ 304,125
300,000 Federal Home Loan Bank, 5.500%, 7/14/00 ...... 304,058
250,000 Federal National Mortgage Association,
5.620%, 3/15/01 .............................. 255,528
250,000 Merrill Lynch & Co., 6.050%, 5/11/01 ......... 254,297
300,000 U.S. Treasury Note, 6.000%, 7/31/02 .......... 316,969
300,000 EI Dupont De Nemours, 6.500%, 9/01/02 ........ 317,921
300,000 Countrywide Credit Industries, Inc.,
6.280%, 1/15/03 .............................. 306,500
300,000 Federal National Mortgage Association,
5.250%, 1/15/03 .............................. 306,820
300,000 Commercial Credit Co., 6.500%, 8/01/04 ....... 318,280
300,000 U.S. Treasury Note, 7.250%, 8/15/04 .......... 344,250
300,000 U.S. Treasury Note, 6.500%, 8/15/05 .......... 338,063
300,000 U.S. Treasury Note, 6.500%, 10/15/06 ......... 340,781
250,000 Federal National Mortgage Association,
7.500%, 2/02/07 .............................. 256,939
300,000 Federal National Mortgage Association,
7.490%, 5/22/07 .............................. 311,774
-----------
TOTAL FIXED INCOME OBLIGATIONS
(COST $4,125,995) .......................... $ 4,276,305
-----------
================================================================================
Face Amount MONEY MARKET AND EQUIVALENTS -- 9.2% Value
- --------------------------------------------------------------------------------
$ 250,000 Firestone Retail Credit CP, 10/02/98 ......... $ 249,958
350,000 Banner Receivables Corp. CP, 10/05/98 ........ 349,765
300,000 Gotham Funding Corp. CP, 10/09/98 ............ 299,597
223,058 Star Treasury Fund ........................... 223,058
-----------
TOTAL MONEY MARKET AND EQUIVALENTS
(COST $1,122,379) .......................... $ 1,122,378
-----------
TOTAL INVESTMENTS AT VALUE -- 99.6%
(COST $12,511,354) ......................... $12,194,878
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.4% 51,985
-----------
NET ASSETS -- 100.0% ......................... $12,246,863
===========
(a) Non-income producing security.
ADR - American Depository Receipt CP - Commercial Paper
See accompanying notes to financial statements.
19
<PAGE>
INTERNATIONAL VALUE FUND
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1998 (Unaudited)
================================================================================
Shares COMMON STOCKS -- 92.1% Value
- --------------------------------------------------------------------------------
AUSTRALIA -- 1.1%
2,900 Brambles Industries Limited .................. $ 62,571
-----------
BELGIUM -- 0.9%
1,410 Quick Restaurants SA ......................... 51,102
-----------
BRAZIL -- 3.6%
1,500,000 Embratel Participacoes SA(a) ................. 12,530
1,105,000 Embratel Participacoes SA--Pfd(a) ............ 11,561
1,105,000 Telecomunicacoes Brazileiras SA .............. 354
1,500,000 Telecomunicacoes Brazileiras SA--Telebras .... 443
1,500,000 Tele Celular Sul Participacoes SA(a) ......... 1,139
1,105,000 Tele Celular Sul Participacoes SA--Pfd(a) .... 1,557
1,500,000 Tele Centro Oeste Celular Participacoes SA(a) 759
1,105,000 Tele Centro Oeste Celular Participacoes SA--Pfd(a) 783
1,500,000 Tele Centro Sul Participacoes SA(a) .......... 8,353
1,105,000 Tele Centro Sul Participacoes SA--Pfd(a) ..... 11,841
1,500,000 Tele Leste Celular Participacoes SA(a) ....... 443
1,105,000 Tele Leste Celular Participacoes SA--Pfd(a) .. 448
1,500,000 Telemig Celular Participacoes SA(a) .......... 1,266
1,105,000 Telemig Celular Participacoes SA--Pfd(a) ..... 923
1,500,000 Tele Nordeste Celular Participacoes SA(a) .... 759
1,105,000 Tele Nordeste Celular Participacoes SA--Pfd(a) 680
1,500,000 Tele Norte Celular Participacoes SA(a) ....... 364
1,105,000 Tele Norte Celular Participacoes SA--Pfd(a) .. 380
1,500,000 Tele Norte Leste Participacoes SA(a) ......... 7,594
1,105,000 Tele Norte Leste Participacoes SA--Pfd(a) .... 12,782
1,000,000 Telerj Celular SA(a) ......................... 21,937
1,380,000 Telesp Celular SA(a) ......................... 36,100
1,500,000 Telesp Celular Participacoes SA(a) ........... 7,594
1,105,000 Telesp Celular Participacoes SA--Pfd(a) ...... 7,459
1,500,000 Telesp Participacoes SA(a) ................... 23,540
1,105,000 Telesp Participacoes SA--Pfd(a) .............. 27,038
1,500,000 Tele Sudeste Celular Participacoes SA(a) ..... 3,037
1,105,000 Tele Sudeste Celular Participacoes SA--Pfd(a) 3,645
-----------
205,309
-----------
CANADA -- 5.8%
4,100 BCE, Inc. .................................... 114,709
3,740 BCE Mobile Communications Inc.(a) ............ 86,994
5,320 Hudson's Bay Company ......................... 73,724
1,600 Northern Telecom Limited ..................... 51,474
-----------
326,902
-----------
DENMARK -- 2.7%
1,220 ISS International Service System A/S(a) ...... 64,312
940 Unidanmark A/S ............................... 68,041
193 Columbus IT Partner A/S(a) ................... 22,777
-----------
155,130
-----------
20
<PAGE>
INTERNATIONAL VALUE FUND (continued)
================================================================================
Shares COMMON STOCKS -- 92.1% Value
- --------------------------------------------------------------------------------
FINLAND -- 2.2%
9,100 Merita Plc--Class A .......................... $ 46,317
1,925 Pohjola Insurance Group ...................... 76,038
-----------
122,355
-----------
FRANCE -- 11.4%
1,020 AGF (Assurances Generales de France) ......... 56,234
500 Axa .......................................... 45,764
92 Carrefour SA ................................. 58,288
504 Elf Aquitaine SA ............................. 62,137
900 Equant(a) .................................... 46,407
1,090 France Telecom SA ............................ 64,468
97 L'OREAL ...................................... 45,084
790 Leon de Bruxelles(a) ......................... 64,118
980 Sanofi SA .................................... 144,077
691 Transiciel SA(a) ............................. 57,945
-----------
644,522
-----------
GERMANY -- 7.9%
1,200 Allbecon AG(a) ............................... 48,821
480 Axa Colonia Konzern AG ....................... 53,991
980 Deutsche Bank AG ............................. 52,008
181 Fresenius AG ................................. 30,646
1,110 GEHE AG ...................................... 67,806
1,490 Hoechst AG ................................... 61,511
100 Karstadt AG .................................. 47,565
940 Mannesmann AG(a) ............................. 86,048
-----------
448,396
-----------
GREECE -- 1.3%
2,990 Goody's SA ................................... 72,569
-----------
HONG KONG -- 3.6%
25,000 Cheung Kong Infrastructure Holdings .......... 54,204
24,000 China Telecom (HK) Ltd.(a) ................... 37,788
14,000 Hutchison Whampoa Ltd. ....................... 73,717
58,000 Shangri-La Asia Ltd. ......................... 37,427
-----------
203,136
-----------
ITALY -- 3.9%
6,430 Istituto Bancario San Paolo di Torino ........ 80,742
20,100 Telecom Italia SPA ........................... 138,363
-----------
219,105
-----------
JAPAN -- 4.9%
2,000 Fuji Photo Film .............................. 69,057
3,000 JUSCO Co., Ltd. .............................. 41,985
3,000 Komori Corp. ................................. 53,445
6 Nippon Telegraph & Telephone Data Corp. ...... 43,858
1,000 Sony Corporation ............................. 69,718
-----------
278,063
-----------
MEXICO --1.0%
24,600 Telefonos De Mexico SA ....................... 54,439
-----------
21
<PAGE>
INTERNATIONAL VALUE FUND (continued)
================================================================================
Shares COMMON STOCKS -- 92.1% Value
- --------------------------------------------------------------------------------
NETHERLANDS -- 2.9%
2,700 AND International Publishers Plc(a) .......... $ 17,187
700 Fortis Amev NV ............................... 39,288
1,600 N.V. Holdingmaatschappij De Telegraaf ........ 36,836
2,220 Stet Hellas Telecommunications SA(a) ......... 11,837
-----------
165,148
-----------
NEW ZEALAND -- 0.9%
52,000 Auckland International Airport Ltd.(a) ....... 48,148
-----------
SINGAPORE -- 0.6%
13,000 Oversea-Chinese Banking Corporation Ltd. ..... 32,718
-----------
SPAIN -- 4.9%
840 Banco Popular Espanol SA ..................... 52,919
223 Grupo Acciona SA ............................. 55,803
2,500 Iberdrola SA ................................. 41,618
3,450 Telefonica de Espana ......................... 125,795
-----------
276,135
-----------
SWEDEN -- 4.6%
5,250 Investment AB Bure ........................... 69,692
5,300 Skandia Forsakrings AB ....................... 69,003
1,266 Svenska Handelsbanken ........................ 47,508
4,000 Telefonaktiebolaget LM Ericsson .............. 75,563
-----------
261,766
-----------
SWITZERLAND -- 5.1%
120 Novartis ..................................... 192,357
4 Roche Holding AG ............................. 43,054
290 UBS AG ....................................... 56,563
-----------
291,974
-----------
UNITED KINGDOM -- 21.8%
3,100 Bodycote International Plc ................... 37,536
10,180 British Aerospace Plc ........................ 61,371
7,200 British Telecommunications Plc ............... 96,172
2,760 CGU Plc ...................................... 42,658
7,300 Compass Group Plc ............................ 68,603
2,760 Energis Plc(a) ............................... 34,356
2,900 Glaxo Wellcome Plc ........................... 85,407
5,000 General Electric Co. Plc ..................... 36,771
3,400 J. Sainsbury Plc ............................. 32,617
11,300 National Grid Group Plc ...................... 83,246
4,400 National Westminster Bank Plc ................ 58,884
1,880 Railtrack Group Plc .......................... 53,642
11,700 Rentokil Initial Plc ......................... 71,231
4,390 Royal Bank of Scotland Group Plc ............. 50,731
11,700 Shell Transport & Trading Co. ................ 70,634
3,260 SmithKline Beecham Plc ....................... 35,983
2,500 Stagecoach Holding Plc ....................... 48,815
35,000 Taylor Nelson Sofres Plc ..................... 47,286
7,520 Unilever Plc ................................. 64,217
22
<PAGE>
INTERNATIONAL VALUE FUND (continued)
================================================================================
Shares COMMON STOCKS -- 92.1% Value
- --------------------------------------------------------------------------------
UNITED KINGDOM -- 21.8% (CONTINUED)
3,205 Vodafone Group Plc(a) ........................ $ 37,363
7,200 W.H. Smith Group Plc ......................... 59,771
1,540 Zeneca Group Plc ............................. 54,331
-----------
1,231,625
-----------
CLOSED-END FOREIGN FUNDS -- 1.0%
244 Societe Generale Baltic Republics Fund(a) .... 37,222
120 Ukraine Fund Ltd.(a) ......................... 8,400
130 Romania Investment Fund(a) ................... 9,230
-----------
54,852
-----------
TOTAL INVESTMENTS AT VALUE -- 92.1%
(COST $5,814,305) .......................... $ 5,205,966
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES -- 7.9% 443,950
-----------
NET ASSETS -- 100% ........................... $ 5,649,916
===========
(a) Non-income producing security.
See accompanying notes to financial statements.
23
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
September 30, 1998 (Unaudited)
==============================================================================================================================
Large Cap Small Cap Balanced International
Value Fund Value Fund Fund Value Fund
- ------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities:
<S> <C> <C> <C> <C>
At acquisition cost .................................... $ 9,689,837 $ 21,898,223 $ 12,511,354 $ 5,814,305
============ ============ ============ ============
At value (Note 2) ...................................... $ 8,950,254 $ 18,329,692 $ 12,194,878 $ 5,205,966
Cash ...................................................... -- 112,750 -- 228,829
Cash denominated in foreign currencies (at cost $78,898) .. -- -- -- 78,752
Dividends and interest receivable ......................... 17,065 38,203 71,647 11,399
Receivable for securities sold ............................ 31,439 206,083 87,692 224,721
Receivable for capital shares sold ........................ -- 15,750 6,537 300
Receivable from Adviser (Note 4) .......................... -- -- -- 1,934
Organization expenses, net (Note 2) ....................... 11,303 11,303 11,303 --
Other assets .............................................. 14,456 22,633 14,106 15,815
------------ ------------ ------------ ------------
TOTAL ASSETS ........................................... 9,024,517 18,736,414 12,386,163 5,767,716
------------ ------------ ------------ ------------
LIABILITIES
Dividends payable ......................................... 578 -- 2,896 --
Payable for securities purchased .......................... 70,121 123,435 115,256 94,247
Payable for capital shares redeemed ....................... -- 243 1,800 --
Payable to affiliates (Note 4) ............................ 8,468 21,211 13,507 6,400
Net unrealized depreciation on forward
foreign currency exchange contracts (Note 6) ........... -- -- -- 9,236
Other liabilities ......................................... 1,013 3,532 5,841 7,917
------------ ------------ ------------ ------------
TOTAL LIABILITIES ...................................... 80,180 148,421 139,300 117,800
------------ ------------ ------------ ------------
NET ASSETS ................................................ $ 8,944,337 $ 18,587,993 $ 12,246,863 $ 5,649,916
============ ============ ============ ============
Net assets consist of:
Paid-in capital ........................................... $ 9,618,014 $ 19,707,350 $ 12,312,072 $ 6,350,584
Accumulated net investment income (loss) .................. 75 75,415 27 (14,834)
Accumulated net realized gains (losses) from
security and foreign currency transactions ............. 65,831 2,373,759 251,240 (67,274)
Net unrealized depreciation on investments ................ (739,583) (3,568,531) (316,476) (608,339)
Net unrealized depreciation on translation of
assets and liabilities in foreign currencies ........... -- -- -- (10,221)
------------ ------------ ------------ ------------
Net assets ................................................ $ 8,944,337 $ 18,587,993 $ 12,246,863 $ 5,649,916
============ ============ ============ ============
</TABLE>
24
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (continued)
September 30, 1998 (Unaudited)
==============================================================================================================================
Large Cap Small Cap Balanced International
Value Fund Value Fund Fund Value Fund
- ------------------------------------------------------------------------------------------------------------------------------
PRICING OF CLASS A SHARES
<S> <C> <C> <C> <C>
Net assets applicable to Class A shares ................... $ 8,622,563 $ 16,593,691 $ 10,434,845 $ 4,773,707
============ ============ ============ ============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) ............. 866,798 1,616,544 984,161 459,731
============ ============ ============ ============
Net asset value and redemption price per share (Note 2) ... $ 9.95 $ 10.26 $ 10.60 $ 10.38
============ ============ ============ ============
Maximum offering price per share (Note 2) ................. $ 10.50 $ 10.83 $ 11.19 $ 10.96
============ ============ ============ ============
PRICING OF CLASS C SHARES
Net assets applicable to Class C shares ................... $ 321,774 $ 1,994,302 $ 1,812,018 $ 876,209
============ ============ ============ ============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) ............. 32,529 195,772 171,335 84,940
============ ============ ============ ============
Net asset value, offering price and redemption price
per share (Note 2) ..................................... $ 9.89 $ 10.19 $ 10.58 $ 10.32
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended September 30, 1998 (Unaudited)
===========================================================================================================================
Large Cap Small Cap Balanced International
Value Fund Value Fund Fund Value Fund
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
<S> <C> <C> <C> <C>
Dividends (net of foreign withholding taxes of $4,169
for the International Value Fund) .................... $ 102,713 $ 258,933 $ 58,273 $ 32,722
Interest ................................................ 2,918 3,906 132,770 --
----------- ----------- ----------- -----------
TOTAL INVESTMENT INCOME .............................. 105,631 262,839 191,043 32,722
----------- ----------- ----------- -----------
EXPENSES
Investment advisory fees (Note 4) ....................... 44,614 104,940 52,136 26,857
Registration fees - Common .............................. 1,319 1,738 1,293 13,180
Registration fees - Class A ............................. 3,098 3,742 3,284 1,580
Registration fees - Class C ............................. 3,164 3,161 3,220 1,473
Accounting services fees (Note 4) ....................... 18,000 18,000 18,000 18,000
Shareholder services and transfer agent fees -
Class A (Note 4) ..................................... 7,200 7,200 7,200 7,200
Class C (Note 4) ..................................... 7,200 7,200 7,200 7,200
Distribution expenses - Class A (Note 4) ................ -- 8,661 -- --
Administration fees (Note 4) ............................ 6,000 10,515 6,013 6,000
Custodian fees .......................................... 2,943 7,721 4,128 15,381
Postage and supplies .................................... 4,980 11,066 4,696 3,379
Insurance expense ....................................... 727 1,566 759 249
Reports to shareholders ................................. 3,644 8,485 3,765 3,617
Professional fees ....................................... 4,700 4,700 4,700 4,700
Amortization of organization expenses (Note 2) .......... 1,577 1,577 1,577 --
Other expenses .......................................... 883 2,316 1,520 6,001
----------- ----------- ----------- -----------
TOTAL EXPENSES ....................................... 110,049 202,588 119,491 114,817
Fees waived and/or common expenses
reimbursed by Adviser (Note 4) ....................... (17,459) -- (14,256) (62,860)
Class C expenses reimbursed by Adviser (Note 4) ......... (9,231) (1,256) (3,551) (4,401)
----------- ----------- ----------- -----------
NET EXPENSES ......................................... 83,359 201,332 101,684 47,556
----------- ----------- ----------- -----------
NET INVESTMENT INCOME (LOSS) ............................... 22,272 61,507 89,359 (14,834)
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES)
Net realized gains (losses) from:
Security transactions ................................ (39,826) 1,583,034 43,417 (10,942)
Foreign currency transactions (Note 5) ............... -- -- -- (71,819)
Net change in unrealized appreciation/depreciation on:
Investments .......................................... (1,818,434) (6,254,948) (1,002,788) (754,311)
Foreign currency translation (Note 5) ................ -- -- -- (16,797)
----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED LOSSES ON
INVESTMENTS AND FOREIGN CURRENCIES ...................... (1,858,260) (4,671,914) (959,371) (853,869)
----------- ----------- ----------- -----------
NET DECREASE IN NET ASSETS FROM
OPERATIONS .............................................. $(1,835,988) $(4,610,407) $ (870,012) $ (868,703)
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
===========================================================================================================================
Large Cap Value Fund Small Cap Value Fund
--------------------------- ---------------------------
Six Months Six Months
Ended Year Ended Year
September 30, Ended September 30, Ended
1998 March 31, 1998 March 31,
(Unaudited) 1998 (Unaudited) 1998
- ---------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income ................................... $ 22,272 $ 15,666 $ 61,507 $ 42,008
Net realized gains (losses) from security
transactions ......................................... (39,826) 199,457 1,583,034 1,496,720
Net change in unrealized appreciation/depreciation
on investments ....................................... (1,818,434) 1,078,851 (6,254,948) 2,686,417
----------- ----------- ----------- -----------
Net increase (decrease) in net assets from operations ...... (1,835,988) 1,293,974 (4,610,407) 4,225,145
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Class A ..................... (22,134) (15,639) -- (27,790)
From net investment income, Class C ..................... (63) (27) -- (310)
From net realized gains, Class A ........................ -- (93,134) -- (679,224)
From net realized gains, Class C ........................ -- (666) -- (26,771)
----------- ----------- ----------- -----------
Decrease in net assets from distributions
to shareholders ......................................... (22,197) (109,466) -- (734,095)
----------- ----------- ----------- -----------
FROM CAPITAL SHARE TRANSACTIONS:
Class A
Proceeds from shares sold .............................. 2,863,772 7,408,080 1,840,656 16,889,610
Net asset value of shares issued in
reinvestment of distributions to shareholders ........ 20,164 100,180 -- 609,751
Payments for shares redeemed ........................... (122,027) (1,043,356) (545,131) (1,485,185)
----------- ----------- ----------- -----------
Net increase in net assets from Class A
share transactions ...................................... 2,761,909 6,464,904 1,295,525 16,014,176
----------- ----------- ----------- -----------
Class C
Proceeds from shares sold ............................... 234,508 125,961 1,102,473 1,324,235
Net asset value of shares issued in
reinvestment of distributions to shareholders ........ 61 690 -- 26,186
Payments for shares redeemed ............................ -- (4,019) (29,188) (59,057)
----------- ----------- ----------- -----------
Net increase in net assets from Class C
share transactions ...................................... 234,569 122,632 1,073,285 1,291,364
----------- ----------- ----------- -----------
Net increase in net assets from capital share transactions . 2,996,478 6,587,536 2,368,810 17,305,540
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS .................... 1,138,293 7,772,044 (2,241,597) 20,796,590
NET ASSETS:
Beginning of period (Note 1) ............................ 7,806,044 34,000 20,829,590 33,000
----------- ----------- ----------- -----------
End of period ........................................... $ 8,944,337 $ 7,806,044 $18,587,993 $20,829,590
=========== =========== =========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME ........................ $ 75 $ -- $ 75,415 $ 13,908
=========== =========== =========== ===========
</TABLE>
27
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (continued)
===========================================================================================================================
Large Cap Value Fund Small Cap Value Fund
--------------------------- ---------------------------
Six Months Six Months
Ended Year Ended Year
September 30, Ended September 30, Ended
1998 March 31, 1998 March 31,
(Unaudited) 1998 (Unaudited) 1998
- ---------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE ACTIVITY:
Class A
<S> <C> <C> <C> <C>
Shares sold ............................................. 247,846 711,149 150,982 1,585,565
Shares issued in reinvestment of distributions
to shareholders ...................................... 1,805 9,315 -- 53,022
Shares redeemed ......................................... (11,141) (95,576) (48,782) (127,543)
----------- ----------- ----------- -----------
Net increase in shares outstanding ...................... 238,510 624,888 102,200 1,511,044
Shares outstanding, beginning of period ................. 628,288 3,400 1,514,344 3,300
----------- ----------- ----------- -----------
Shares outstanding, end of period ....................... 866,798 628,288 1,616,544 1,514,344
=========== =========== =========== ===========
Class C
Shares sold ............................................. 21,319 11,518 89,351 111,598
Shares issued in reinvestment of distributions
to shareholders ...................................... 5 64 -- 2,283
Shares redeemed ......................................... -- (377) (2,452) (5,008)
----------- ----------- ----------- -----------
Net increase in shares outstanding ...................... 21,324 11,205 86,899 108,873
Shares outstanding, beginning of period ................. 11,205 -- 108,873 --
----------- ----------- ----------- -----------
Shares outstanding, end of period ....................... 32,529 11,205 195,772 108,873
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
===========================================================================================================================
Balanced Fund International Value Fund
--------------------------- ---------------------------
Six Months Six Months
Ended Year Ended Period
September 30, Ended September 30, Ended
1998 March 31, 1998 March 31,
(Unaudited) 1998 (Unaudited) 1998(a)
- ---------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income (loss) ............................ $ 89,359 $ 103,458 $ (14,834) $ (4,849)
Net realized gains (losses) from security
transactions ......................................... 43,417 263,495 (10,942) 21,655
Net realized losses from foreign currency transactions .. -- -- (71,819) (1,319)
Net change in unrealized appreciation/depreciation
on investments ....................................... (1,002,788) 686,312 (754,311) 145,972
Net change in unrealized appreciation/depreciation
on translation of assets and liabilities in
foreign currencies ................................... -- -- (16,797) 6,576
----------- ----------- ----------- -----------
Net increase (decrease) in net assets from operations ...... (870,012) 1,053,265 (868,703) 168,035
----------- ----------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income, Class A ..................... (81,012) (96,636) -- --
From net investment income, Class C ..................... (8,320) (6,822) -- --
From net realized gains, Class A ........................ -- (50,850) -- --
From net realized gains, Class C ........................ -- (4,822) -- --
----------- ----------- ----------- -----------
Decrease in net assets from distributions
to shareholders ......................................... (89,332) (159,130) -- --
----------- ----------- ----------- -----------
FROM CAPITAL SHARE TRANSACTIONS:
Class A
Proceeds from shares sold ............................... 4,188,047 7,467,827 4,200,833 1,135,513
Net asset value of shares issued in
reinvestment of distributions to shareholders ........ 76,263 142,246 -- --
Payments for shares redeemed ............................ (258,859) (1,219,159) (3,279) (308)
----------- ----------- ----------- -----------
Net increase in net assets from Class A
share transactions ...................................... 4,005,451 6,390,914 4,197,554 1,135,205
----------- ----------- ----------- -----------
Class C
Proceeds from shares sold ............................... 870,162 1,017,191 937,920 79,905
Net asset value of shares issued in
reinvestment of distributions to shareholders ........ 7,504 11,331 -- --
Payments for shares redeemed ............................ (23,470) (11) -- --
----------- ----------- ----------- -----------
Net increase in net assets from Class C
share transactions ...................................... 854,196 1,028,511 937,920 79,905
----------- ----------- ----------- -----------
Net increase in net assets from capital share transactions . 4,859,647 7,419,425 5,135,474 1,215,110
----------- ----------- ----------- -----------
TOTAL INCREASE IN NET ASSETS ............................... 3,900,303 8,313,560 4,266,771 1,383,145
NET ASSETS:
Beginning of period (Note 1) ............................ 8,346,560 33,000 1,383,145 --
----------- ----------- ----------- -----------
End of period ........................................... $12,246,863 $ 8,346,560 $ 5,649,916 $ 1,383,145
=========== =========== =========== ===========
UNDISTRIBUTED NET INVESTMENT INCOME ........................ $ 27 $ -- $ -- $ --
=========== =========== =========== ===========
</TABLE>
(a) Represents the period from initial public offering of shares (October 13,
1997) to March 31, 1998.
29
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (continued)
===========================================================================================================================
Balanced Fund International Value Fund
--------------------------- ---------------------------
Six Months Six Months
Ended Year Ended Period
September 30, Ended September 30, Ended
1998 March 31, 1998 March 31,
(Unaudited) 1998 (Unaudited) 1998(a)
- ---------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE ACTIVITY:
Class A
<S> <C> <C> <C> <C>
Shares sold ............................................. 371,576 725,255 349,667 110,251
Shares issued in reinvestment of distributions
to shareholders ...................................... 6,992 13,140 -- --
Shares redeemed ......................................... (23,450) (112,652) (159) (28)
----------- ----------- ----------- -----------
Net increase in shares outstanding ...................... 355,118 625,743 349,508 110,223
Shares outstanding, beginning of period ................. 629,043 3,300 110,223 --
----------- ----------- ----------- -----------
Shares outstanding, end of period ....................... 984,161 629,043 459,731 110,223
=========== =========== =========== ===========
Class C
Shares sold ............................................. 78,642 93,039 77,497 7,443
Shares issued in reinvestment of distributions
to shareholders ...................................... 692 1,041 -- --
Shares redeemed ......................................... (2,078) (1) -- --
----------- ----------- ----------- -----------
Net increase in shares outstanding ...................... 77,256 94,079 77,497 7,443
Shares outstanding, beginning of period ................. 94,079 -- 7,443 --
----------- ----------- ----------- -----------
Shares outstanding, end of period ....................... 171,335 94,079 84,940 7,443
=========== =========== =========== ===========
</TABLE>
(a) Represents the period from intial public offering of shares (October 13,
1997) to March 31, 1998.
See accompanying notes to financial statements.
30
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
LARGE CAP VALUE FUND
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Period
===========================================================================================================================
Class A Class C
--------------------------- ---------------------------
Six Months From Six Months From
Ended Inception(A) Ended Inception(A)
Sept. 30, 1998 Through Sept. 30, 1998 Through
(Unaudited) March 31, 1998 (Unaudited) March 31, 1998
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period ..................... $ 12.21 $ 10.00 $ 12.16 $ 10.76
----------- ----------- ----------- -----------
Income (loss) from investment operations:
Net investment income (loss) ............................ 0.03 0.03 0.01 (0.01)
Net realized and unrealized gains (losses)
on investments ....................................... (2.26) 2.36 (2.28) 1.56
----------- ----------- ----------- -----------
Total from investment operations ........................... (2.23) 2.39 (2.27) 1.55
----------- ----------- ----------- -----------
Less distributions:
From net investment income .............................. (0.03) (0.03) -- --
From net realized gains ................................. -- (0.15) -- (0.15)
----------- ----------- ----------- -----------
Total distributions ........................................ (0.03) (0.18) -- (0.15)
----------- ----------- ----------- -----------
Net asset value at end of period ........................... $ 9.95 $ 12.21 $ 9.89 $ 12.16
=========== =========== =========== ===========
Total return(B) ............................................ (18.32)% 24.11% (18.65)% 14.63%
=========== =========== =========== ===========
Net assets at end of period ................................ $ 8,622,563 $ 7,669,807 $ 321,774 $ 136,237
=========== =========== =========== ===========
Ratio of expenses to average net assets:(C)
Before fee waivers and/or expense reimbursements
by Adviser ........................................... 2.24% 2.72% 11.00% 52.73%
After fee waivers and/or expense reimbursements
by Adviser ........................................... 1.85% 1.84% 2.60% 2.59%
Ratio of net investment income (loss)
to average net assets(C) ................................ 0.52% 0.30% (0.22)% (0.55)%
Portfolio turnover rate(C) ................................. 32% 54% 32% 54%
(A) Initial public offering date 5-28-97 8-19-97
</TABLE>
(B) Total returns shown exclude the effect of applicable sales loads and are
not annualized.
(C) Annualized.
See accompanying notes to financial statements.
31
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
SMALL CAP VALUE FUND
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Period
===========================================================================================================================
Class A Class C
--------------------------- ---------------------------
Six Months From Six Months From
Ended Inception(A) Ended Inception(A)
Sept. 30, 1998 Through Sept. 30, 1998 Through
(Unaudited) March 31, 1998 (Unaudited) March 31, 1998
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period ..................... $ 12.84 $ 10.00 $ 12.16 $ 10.95
----------- ----------- ----------- -----------
Income (loss) from investment operations:
Net investment income (loss) ............................ 0.04 0.03 0.01 (0.02)
Net realized and unrealized gains (losses)
on investments ....................................... (2.62) 3.30 (2.61) 2.33
----------- ----------- ----------- -----------
Total from investment operations ........................... (2.58) 3.33 (2.60) 2.31
----------- ----------- ----------- -----------
Less distributions:
From net investment income .............................. -- (0.02) -- --
From net realized gains ................................. -- (0.47) -- (0.47)
----------- ----------- ----------- -----------
Total distributions ........................................ -- (0.49) -- (0.47)
----------- ----------- ----------- -----------
Net asset value at end of period ........................... $ 10.26 $ 12.84 $ 10.19 $ 12.79
=========== =========== =========== ===========
Total return(B) ............................................ (20.09)% 33.86% (20.33)% 21.63%
=========== =========== =========== ===========
Net assets at end of period ................................ $16,593,691 $19,437,554 $ 1,994,302 $ 1,392,036
=========== =========== =========== ===========
Ratio of expenses to average net assets:(C)
Before fee waivers and/or expense reimbursements
by Adviser ........................................... 1.85% 1.98% 2.73% 6.41%
After fee waivers and/or expense reimbursements
by Adviser ........................................... 1.85% 1.84% 2.60% 2.59%
Ratio of net investment income (loss)
to average net assets(C) ................................ 0.65% 0.35% (0.04)% (0.42)%
Portfolio turnover rate(C) ................................. 59% 62% 59% 62%
(A) Initial public offering date 5-28-97 8-1-97
</TABLE>
(B) Total returns shown exclude the effect of applicable sales loads and are
not annualized.
(C) Annualized.
See accompanying notes to financial statements.
32
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
BALANCED FUND
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Period
===========================================================================================================================
Class A Class C
--------------------------- ---------------------------
Six Months From Six Months From
Ended Inception(A) Ended Inception(A)
Sept. 30, 1998 Through Sept. 30, 1998 Through
(Unaudited) March 31, 1998 (Unaudited) March 31, 1998
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period ..................... $ 11.55 $ 10.00 $ 11.52 $ 10.71
----------- ----------- ----------- -----------
Income (loss) from investment operations:
Net investment income ................................... 0.09 0.17 0.07 0.07
Net realized and unrealized gains (losses)
on investments ....................................... (0.95) 1.62 (0.95) 0.92
----------- ----------- ----------- -----------
Total from investment operations ........................... (0.86) 1.79 (0.88) 0.99
----------- ----------- ----------- -----------
Less distributions:
From net investment income .............................. (0.09) (0.16) (0.06) (0.10)
From net realized gains ................................. -- (0.08) -- (0.08)
----------- ----------- ----------- -----------
Total distributions ........................................ (0.09) (0.24) (0.06) (0.18)
----------- ----------- ----------- -----------
Net asset value at end of period ........................... $ 10.60 $ 11.55 $ 10.58 $ 11.52
=========== =========== =========== ===========
Total return(B) ............................................ (7.46)% 18.07% (7.69)% 9.37%
=========== =========== =========== ===========
Net assets at end of period ................................ $10,434,845 $ 7,262,670 $ 1,812,018 $ 1,083,890
=========== =========== =========== ===========
Ratio of expenses to average net assets:(C)
Before fee waivers and/or expense reimbursements
by Adviser ........................................... 2.12% 2.60% 3.37% 7.39%
After fee waivers and/or expense reimbursements
by Adviser ........................................... 1.85% 1.84% 2.60% 2.59%
Ratio of net investment income
to average net assets(C) ................................ 1.81% 1.85% 1.07% 0.99%
Portfolio turnover rate(C) ................................. 58% 64% 58% 64%
(A) Initial public offering date 5-28-97 8-1-97
</TABLE>
(B) Total returns shown exclude the effect of applicable sales loads and are
not annualized.
(C) Annualized.
See accompanying notes to financial statements.
33
<PAGE>
<TABLE>
<CAPTION>
DEAN FAMILY OF FUNDS
INTERNATIONAL VALUE FUND
FINANCIAL HIGHLIGHTS
Per Share Data for a Share Outstanding Throughout Each Period
===========================================================================================================================
Class A Class C
--------------------------- ---------------------------
Six Months From Six Months From
Ended Inception(A) Ended Inception(A)
Sept. 30, 199 Through Sept. 30, 1998 Through
(Unaudited) March 31, 1998 (Unaudited) March 31, 1998
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value at beginning of period ..................... $ 11.76 $ 10.00 $ 11.72 $ 9.89
----------- ----------- ----------- -----------
Income (loss) from investment operations:
Net investment loss ..................................... (0.03) (0.05) (0.04) (0.04)
Net realized and unrealized gains (losses)
on investments and foreign currency .................. (1.35) 1.81 (1.36) 1.87
----------- ----------- ----------- -----------
Total from investment operations ........................... (1.38) 1.76 (1.40) 1.83
----------- ----------- ----------- -----------
Less distributions:
From net investment income .............................. -- -- -- --
From net realized gains ................................. -- -- -- --
----------- ----------- ----------- -----------
Total distributions ........................................ -- -- -- --
----------- ----------- ----------- -----------
Net asset value at end of period ........................... $ 10.38 $ 11.76 $ 10.32 $ 11.72
=========== =========== =========== ===========
Total return(B) ............................................ (11.73)% 17.60% (11.95)% 18.50%
=========== =========== =========== ===========
Net assets at end of period ................................ $ 4,773,707 $ 1,295,896 $ 876,209 $ 87,249
=========== =========== =========== ===========
Ratio of expenses to average net assets:(C)
Before fee waivers and/or expense reimbursements
by Adviser ........................................... 5.00% 16.66% 7.09% 58.89%
After fee waivers and/or expense reimbursements
by Adviser ........................................... 2.10% 2.04% 2.85% 2.82%
Ratio of net investment loss
to average net assets(C) ................................ (0.65)% (1.30)% (0.91)% (1.94)%
Portfolio turnover rate(C) ................................. 96% 109% 96% 109%
(A) Initial public offering date 10-13-97 11-6-97
</TABLE>
(B) Total returns shown exclude the effect of applicable sales loads and are
not annualized.
(C) Annualized.
See accompanying notes to financial statements.
34
<PAGE>
DEAN FAMILY OF FUNDS
NOTES TO FINANCIAL STATEMENTS
September 30, 1998 (Unaudited)
================================================================================
1. ORGANIZATION
The Dean Family of Funds (the Trust) is registered under the Investment Company
Act of 1940, 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: the Large Cap Value Fund,
the Small Cap Value Fund, the Balanced Fund, and the International Value Fund
(the Funds). The Trust was capitalized on March 17, 1997, when the initial
shares of each Fund (except for the International Value Fund) were purchased at
$10.00 per share. The initial public offering of shares of the International
Value Fund commenced on October 13, 1997. 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 capital appreciation and dividend
income 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 International Value Fund seeks to provide long-term capital growth by
investing primarily in the common stocks of foreign companies.
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. With respect to the International Value Fund, the
U.S. dollar value of foreign securities and forward foreign currency exchange
contracts is determined using spot and forward currency exchange rates,
respectively, supplied by a quotation service.
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.
35
<PAGE>
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.
Distributions to shareholders -- The Large Cap Value Fund, the Balanced Fund and
the International Value 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.
Allocations between classes -- Investment income earned, realized capital gains
and losses, and unrealized appreciation and depreciation for the Funds are
allocated daily to each class of shares based upon its proportionate share of
total net assets of the Fund. Class specific expenses are charged directly to
the class incurring the expense. Common expenses which are not attributable to a
specific class are allocated daily to each class of shares based upon its
proportionate share of total net assets of the Fund.
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 income 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, 1998:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
Large Cap Small Cap Balanced International
Value Fund Value Fund Fund Equity Fund
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross unrealized appreciation .... $ 612,351 $ 1,122,305 $ 754,590 $ 174,652
Gross unrealized depreciation .... (1,351,934) (4,690,836) (1,071,066) (782,991)
----------- ----------- ----------- -----------
Net unrealized depreciation ...... $ (739,583) $(3,568,531) $ (316,476) $ (608,339)
=========== =========== =========== ===========
- -------------------------------------------------------------------------------------------------
</TABLE>
The federal income tax cost of portfolio investments is equal to book cost as
shown on the Statements of Assets and Liabilities.
3. INVESTMENT TRANSACTIONS
For the six months ended September 30, 1998, cost of purchases and proceeds from
sales and maturities of portfolio securities, other than short-term investments,
amounted to $4,136,583 and $1,359,231, respectively, for the Large Cap Value
Fund, $8,476,628 and $5,947,362, respectively, for the Small Cap Value Fund,
$6,843,069 and $2,651,430, respectively, for the Balanced Fund and $6,470,425
and $1,871,432, respectively, for the International Value Fund.
36
<PAGE>
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.
INVESTMENT ADVISORY AND SUB-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 the
average daily net assets for the Large Cap Value Fund, the Small Cap Value Fund
and the Balanced Fund and 1.25% of the average daily net assets for the
International Value Fund.
Newton Capital Management Ltd. (Newton Capital) has been retained by the Adviser
to manage the investments of the International Value Fund. The Adviser (not the
Fund) pays Newton Capital a fee for its services equal to the rate of 0.50% of
the Fund's average daily net assets.
In order to voluntarily reduce operating expenses during the six months ended
September 30, 1998, the Adviser waived $17,459 of its advisory fees and
reimbursed $9,231 of Class C expenses for the Large Cap Value Fund; reimbursed
$1,256 of Class C expenses for the Small Cap Value Fund; waived $14,256 of its
advisory fees and reimbursed $3,551 of Class C expenses for the Balanced Fund;
and waived its entire advisory fee of $26,857 and reimbursed $36,003 of common
expenses and $4,401 of Class C expenses for the International Value 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 $436,
$3,849, $2,471 and $3,880 from underwriting and broker commissions on the sale
of shares of the Large Cap Value Fund, the Small Cap Value Fund, the Balanced
Fund, and the International Value Fund, respectively, during the six months
ended September 30, 1998.
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.
37
<PAGE>
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 attributable 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
attributable to Class C shares for certain distribution-related expenses
incurred in the distribution and promotion of the Fund's Class C shares.
5. FOREIGN CURRENCY TRANSLATION
With respect to the International Value Fund, amounts denominated in or expected
to settle in foreign currencies are translated into U.S. dollars based on
exchange rates on the following basis:
A. The market values of investment securities and other assets and liabilities
are translated at the closing rate of exchange each day.
B. Purchases and sales of investment securities and income and expenses are
translated at the rate of exchange prevailing on the respective dates of
such transactions.
C. The Fund does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from those
resulting from changes in market prices of securities held. Such
fluctuations are included with the net realized and unrealized gains or
losses from investments. Reported net realized foreign exchange gains or
losses arise from 1) sales of foreign currencies, 2) currency gains or
losses realized between the trade and settlement dates on securities
transactions, and 3) the difference between the amounts of dividends,
interest, and foreign withholding taxes recorded on the Fund's books, and
the U.S. dollar equivalent of the amounts actually received or paid.
Reported net unrealized foreign exchange gains or losses arise from changes
in the value of assets and liabilities, other than investments, resulting
from changes in exchange rates.
6. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The International Value Fund enters into foreign currency exchange contracts as
a way of managing foreign exchange rate risk. The Fund may enter into these
contracts for the purchase or sale of a specific foreign currency at a fixed
price on a future date as a hedge or cross-hedge against either specific
transactions or portfolio positions. The objective of the Fund's foreign
currency hedging transactions is to reduce the risk that the U.S. dollar value
of the Fund's securities denominated in foreign currency will decline in value
due to changes in foreign currency exchange rates. All foreign currency exchange
contracts are "marked-to-market" daily at the applicable translation rates
resulting in unrealized gains or losses. Realized and unrealized gains or losses
are included in the Fund's Statement of Assets and Liabilities and Statement of
Operations. Risks may arise upon entering into these contracts from the
potential inability of counterparties to meet the terms of their contracts and
from unanticipated movements in the value of a foreign currency relative to the
U.S. dollar.
38
<PAGE>
As of September 30, 1998, the International Value Fund had forward foreign
currency exchange contracts outstanding as follows:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Net Unrealized
Settlement To Receive Initial Market Appreciation
Date (To Deliver) Value Value (Depreciation)
- -----------------------------------------------------------------------------------------------------
Contracts To Sell
<S> <C> <C> <C> <C>
10/15/98 ............. (84,300) AUD $ (54,592) $ (49,927) $ 4,665
11/16/98 ............. (266,000) FRF (45,405) (47,580) (2,175)
11/16/98 ............. (140,478) GBP (229,007) (238,037) (9,030)
12/15/98 ............. (98,000) CAD (66,850) (64,220) 2,630
12/15/98 ............. (229,691) DEM (132,458) (137,989) (5,531)
12/15/98 ............. (10,424,000) GRD (34,434) (35,694) (1,260)
12/15/98 ............. (40,630,000) JPY (291,787) (301,870) (10,083)
02/16/99 ............. (87,100) CAD (57,617) (57,075) 542
02/19/99 ............. (152,700) HKD (19,085) (19,448) (363)
03/15/99 ............. (185,300) HKD (23,329) (23,531) (202)
------------ ------------ ------------
Total sell contracts ......... (954,564) (975,371) (20,807)
------------ ------------ ------------
Contracts To Buy
10/05/98 ............. 85,325 HKD 11,013 11,009 (4)
10/07/98 ............. 44,975 HKD 5,809 5,802 (7)
11/16/98 ............. 266,000 FRF 45,211 47,580 2,369
11/16/98 ............. 27,644 GBP 45,405 46,841 1,436
12/15/98 ............. 98,000 CAD 64,155 64,220 65
12/15/98 ............. 117,904 DEM 66,850 70,832 3,982
12/15/98 ............. 62,915 GBP 102,737 106,467 3,730
------------ ------------ ------------
Total buy contracts .......... 341,180 352,751 11,571
------------ ------------ ------------
NET CONTRACTS ................ $ (613,384) $ (622,620) $ (9,236)
============ ============ ============
- -----------------------------------------------------------------------------------------------------
</TABLE>
AUD - Australian Dollar GBP - British Pound Sterling
CAD - Canadian Dollar GRD - Greek Drachma
DEM - German Mark HKD - Hong Kong Dollar
FRF - French Franc JPY - Japanese Yen
7. SPECIAL MEETING OF THE INTERNATIONAL VALUE FUND SHAREHOLDERS
On October 5, 1998, a Special Meeting of Shareholders of the International Value
Fund was held to approve or disapprove a new Sub-Advisory Agreement among the
Trust, the Adviser and Newton Capital Management Limited to become effective
upon the closing of the proposed acquisition of Newton Capital by Neptune LLC, a
wholly-owned subsidiary of Mellon Bank Corporation. The total number of shares
of the Fund present by proxy represented 66.4% of the shares entitled to vote at
the meeting. The matter submitted to shareholders was approved.
With respect to the approval or disapproval of the new Sub-Advisory Agreement,
335,684.580 shares voted for approval of the new Sub-Advisory Agreement and
1,953.125 shares abstained from voting.
39
<PAGE>
DEAN Family of Funds
2480 Kettering Tower
Dayton, Ohio 45423
BOARD OF TRUSTEES
Victor S. Curtis
Chauncey H. Dean
Dr. Robert D. Dean
Beth E. Mooney
Dr. Sam B. Gould
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
International Value Fund ................. 5
Fund Facts .................................. 6
Portfolios of Investments:
Large Cap Value Fund ..................... 8
Small Cap Value Fund ..................... 11
Balanced Fund ............................ 17
International Value Fund ................. 20
Financial Statements ........................ 24
Notes to Financial Statements ............... 35
- -------------------------------------------------
<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> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 9,689,837
<INVESTMENTS-AT-VALUE> 8,950,254
<RECEIVABLES> 48,504
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 25,759
<TOTAL-ASSETS> 9,024,517
<PAYABLE-FOR-SECURITIES> 70,121
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 10,059
<TOTAL-LIABILITIES> 80,180
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9,618,014
<SHARES-COMMON-STOCK> 866,798
<SHARES-COMMON-PRIOR> 628,288
<ACCUMULATED-NII-CURRENT> 75
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 65,831
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (739,583)
<NET-ASSETS> 8,622,563
<DIVIDEND-INCOME> 102,713
<INTEREST-INCOME> 2,918
<OTHER-INCOME> 0
<EXPENSES-NET> 83,359
<NET-INVESTMENT-INCOME> 22,272
<REALIZED-GAINS-CURRENT> (39,826)
<APPREC-INCREASE-CURRENT> (1,818,434)
<NET-CHANGE-FROM-OPS> (1,835,988)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 22,134
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 247,846
<NUMBER-OF-SHARES-REDEEMED> 11,141
<SHARES-REINVESTED> 1,805
<NET-CHANGE-IN-ASSETS> 952,756
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 105,657
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 44,614
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 110,049
<AVERAGE-NET-ASSETS> 8,675,215
<PER-SHARE-NAV-BEGIN> 12.21
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> (2.26)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> .03
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.95
<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> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 9,689,837
<INVESTMENTS-AT-VALUE> 8,950,254
<RECEIVABLES> 48,504
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 25,759
<TOTAL-ASSETS> 9,024,517
<PAYABLE-FOR-SECURITIES> 70,121
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 10,059
<TOTAL-LIABILITIES> 80,180
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9,618,014
<SHARES-COMMON-STOCK> 32,529
<SHARES-COMMON-PRIOR> 11,205
<ACCUMULATED-NII-CURRENT> 75
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 65,831
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (739,583)
<NET-ASSETS> 321,774
<DIVIDEND-INCOME> 102,713
<INTEREST-INCOME> 2,918
<OTHER-INCOME> 0
<EXPENSES-NET> 83,359
<NET-INVESTMENT-INCOME> 22,272
<REALIZED-GAINS-CURRENT> (39,826)
<APPREC-INCREASE-CURRENT> (1,818,434)
<NET-CHANGE-FROM-OPS> (1,835,988)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 63
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 21,319
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 5
<NET-CHANGE-IN-ASSETS> 185,537
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 105,657
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 44,614
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 110,049
<AVERAGE-NET-ASSETS> 229,450
<PER-SHARE-NAV-BEGIN> 12.16
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> (2.28)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.89
<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> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 21,898,223
<INVESTMENTS-AT-VALUE> 18,329,692
<RECEIVABLES> 260,036
<ASSETS-OTHER> 112,750
<OTHER-ITEMS-ASSETS> 33,936
<TOTAL-ASSETS> 18,736,414
<PAYABLE-FOR-SECURITIES> 123,435
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 24,986
<TOTAL-LIABILITIES> 148,421
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 19,707,350
<SHARES-COMMON-STOCK> 1,616,544
<SHARES-COMMON-PRIOR> 1,514,344
<ACCUMULATED-NII-CURRENT> 75,415
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,373,759
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (3,568,531)
<NET-ASSETS> 16,593,691
<DIVIDEND-INCOME> 258,933
<INTEREST-INCOME> 3,906
<OTHER-INCOME> 0
<EXPENSES-NET> 201,332
<NET-INVESTMENT-INCOME> 61,507
<REALIZED-GAINS-CURRENT> 1,583,034
<APPREC-INCREASE-CURRENT> (6,254,948)
<NET-CHANGE-FROM-OPS> (4,610,407)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 4
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 150,982
<NUMBER-OF-SHARES-REDEEMED> 48,782
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (2,843,863)
<ACCUMULATED-NII-PRIOR> 13,908
<ACCUMULATED-GAINS-PRIOR> 790,725
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 104,940
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 202,588
<AVERAGE-NET-ASSETS> 19,002,051
<PER-SHARE-NAV-BEGIN> 12.84
<PER-SHARE-NII> .04
<PER-SHARE-GAIN-APPREC> (2.62)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.26
<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> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 21,898,223
<INVESTMENTS-AT-VALUE> 18,329,692
<RECEIVABLES> 260,036
<ASSETS-OTHER> 112,750
<OTHER-ITEMS-ASSETS> 33,936
<TOTAL-ASSETS> 18,736,414
<PAYABLE-FOR-SECURITIES> 123,435
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 24,986
<TOTAL-LIABILITIES> 148,421
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 19,707,350
<SHARES-COMMON-STOCK> 195,772
<SHARES-COMMON-PRIOR> 108,873
<ACCUMULATED-NII-CURRENT> 75,415
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,373,759
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (3,568,531)
<NET-ASSETS> 1,994,302
<DIVIDEND-INCOME> 258,933
<INTEREST-INCOME> 3,906
<OTHER-INCOME> 0
<EXPENSES-NET> 201,332
<NET-INVESTMENT-INCOME> 61,507
<REALIZED-GAINS-CURRENT> 1,583,034
<APPREC-INCREASE-CURRENT> (6,254,948)
<NET-CHANGE-FROM-OPS> (4,610,407)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 4
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 89,351
<NUMBER-OF-SHARES-REDEEMED> 2,452
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 602,266
<ACCUMULATED-NII-PRIOR> 13,908
<ACCUMULATED-GAINS-PRIOR> 790,725
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 104,940
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 202,588
<AVERAGE-NET-ASSETS> 1,916,346
<PER-SHARE-NAV-BEGIN> 12.16
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> (2.61)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.19
<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> SEP-30-1998
<PERIOD-END> SEP-30-1998
<INVESTMENTS-AT-COST> 12,511,354
<INVESTMENTS-AT-VALUE> 12,194,878
<RECEIVABLES> 165,876
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 25,409
<TOTAL-ASSETS> 12,386,163
<PAYABLE-FOR-SECURITIES> 115,256
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 24,044
<TOTAL-LIABILITIES> 139,300
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 12,312,072
<SHARES-COMMON-STOCK> 984,161
<SHARES-COMMON-PRIOR> 629,043
<ACCUMULATED-NII-CURRENT> 27
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 251,240
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (316,476)
<NET-ASSETS> 10,434,845
<DIVIDEND-INCOME> 58,273
<INTEREST-INCOME> 132,770
<OTHER-INCOME> 0
<EXPENSES-NET> 101,684
<NET-INVESTMENT-INCOME> 89,359
<REALIZED-GAINS-CURRENT> 43,417
<APPREC-INCREASE-CURRENT> (1,002,788)
<NET-CHANGE-FROM-OPS> 870,012
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 81,012
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 371,576
<NUMBER-OF-SHARES-REDEEMED> 23,450
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<NAME> DEAN FAMILY OF FUNDS
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<NAME> BALANCED FUND - CLASS C
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<TABLE> <S> <C>
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<CIK> 0001027624
<NAME> DEAN FAMILY OF FUNDS
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<NAME> INTERNATIONAL VALUE FUND -CLASS A
<S> <C>
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<TABLE> <S> <C>
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<CIK> 0001027624
<NAME> DEAN FAMILY OF FUNDS
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<NUMBER> 43
<NAME> INTERNATIONAL VALUE FUND -CLASS C
<S> <C>
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