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JOHNSONFAMILY FUNDS, INC.
SEMI-ANNUAL REPORT (UNAUDITED)
APRIL 30, 1998
JOHNSONFAMILY INTERMEDIATE FIXED INCOME FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Principal
Amount Value
- --------- --------
CORPORATE BONDS 45.73%
$750,000 AirTouch Communications, Inc., 7.50%, 7/15/06 $798,750
500,000 American Home Products, 6.50%, 10/15/02 503,750
500,000 Anheuser-Busch Cos., Inc., 6.90%, 10/1/02 506,875
1,000,000 Applied Materials, Inc., 6.75%, 10/15/07 1,010,000
500,000 Associates Corp. N.A., 6.00%, 12/1/02 495,000
340,000 BP America Inc., 9.375%, 11/1/00 366,350
705,000 Bellsouth Telecom, Inc., 8.25%, 7/1/32 772,856
500,000 Bellsouth Telecom, Inc., 7.50%, 6/15/33 517,500
500,000 Borg-Warner Automotive, Inc., 7.00%, 11/1/06 516,250
200,000 Campbell Soup Co., 5.625%, 9/15/03 194,750
1,000,000 Commercial Credit Co., 6.25%, 1/1/08 988,750
500,000 Commonwealth Edison Co., 6.45%, 12/1/07 504,375
1,000,000 Donaldson, Lufkin & Jenrette, Inc., 6.50%, 4/01/08 996,250
500,000 Dow Chemical Co., 6.85%, 8/15/13 511,250
500,000 Dresdner Bank New York, 6.625%, 9/15/05 503,750
250,000 Fleet Financial Group, Inc., 7.19%, 10/2/12 254,063
750,000 Ford Motor Credit Co., 6.25%, 12/8/05 741,563
1,000,000 GTE Corp., 6.46%, 4/15/08 996,250
500,000 GTE North, Inc., 6.375%, 2/15/10 496,875
250,000 General Motors, 6.25%, 5/1/05 249,688
950,000 Gillette Co., 5.75%, 10/15/05 929,813
1,000,000 Hercules Inc., 6.60%, 8/1/27 1,013,750
250,000 Household Finance Corp., 7.25%, 7/15/03 259,688
500,000 Household Finance Corp., 7.30%, 7/30/12 515,625
750,000 Knight-Ridder, Inc., 6.625%, 11/1/07 757,500
1,000,000 Lehman Brothers Holdings, Inc., 6.25%, 4/01/03 996,250
1,000,000 Martin Marietta Corp., 7.75%, 4/15/23 1,051,250
200,000 McGraw-Hill Co., Inc., 9.43%, 9/1/00 214,250
250,000 Mead Corp., 8.125%, 2/1/23 272,187
350,000 Mellon Financial Co., 6.875%, 3/1/03 358,312
100,000 Merrill Lynch & Co., Inc., 7.05%, 4/15/03 100,000
1,000,000 Monsanto Co., 6.21%, 2/5/08 982,500
250,000 J.P. Morgan & Co., Inc., 7.625%, 9/15/04 266,250
500,000 J.P. Morgan & Co., Inc., 6.875%, 1/15/07 513,750
500,000 Nabisco, Inc., 6.00%, 2/15/01 495,625
1,000,000 National City Bank Cleveland, 7.10%, 9/25/12 1,028,750
250,000 Northern Illinois Gas, 6.45%, 8/1/01 252,812
500,000 Northern States Power Co., 5.75%, 10/01/03 489,375
1,000,000 PaineWebber Group., 6.55%, 4/15/08 993,750
1,000,000 J.C. Penney Co., Inc., 6.875%, 10/15/15 1,002,500
1,000,000 Province of Ontario, 6.00%, 2/21/06 991,250
JOHNSONFAMILY INTERMEDIATE FIXED INCOME FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Principal
Amount Value
- -------- ---------
CORPORATE BONDS (continued) 45.73%
$350,000 Rockwell International Corp., 8.375%, 2/15/01 $371,437
150,000 Security Pacific Corp., 9.75%, 5/15/99 155,250
300,000 SmithKline Beecham., 6.625%, 10/1/05 305,625
600,000 SunTrust Banks, Inc., 6.00%, 1/15/28 586,500
750,000 TRW Inc., 6.25%, 1/15/10 733,125
1,000,000 Wells Fargo & Co., 6.625%, 4/15/13 982,500
-----------
TOTAL CORPORATE BONDS
(cost $28,577,514) 28,544,519
----------
MUNICIPAL BONDS 3.39%
500,000 Chicago Illinois Public Building, 7.00%, 1/1/07 528,125
325,000 Cook County School District, 8.00%, 12/1/06 353,844
350,000 Massachusetts State Port Authority, 6.35%, 7/1/07 351,750
500,000 Oakland California Pension, 6.98%, 12/15/09 521,875
350,000 San Francisco CA., Series A, 6.95%, 6/15/03 360,937
-----------
TOTAL MUNICIPAL BONDS
(cost $2,115,249) 2,116,531
-----------
U. S. GOVERNMENT AGENCIES 28.94%
NOTES 21.38%
1,000,000 Federal Farm Credit Bureau Note, 6.51%, 1/7/08 1,002,430
250,000 Federal Home Loan Bank (FHLB), 6.375%, 6/22/00 250,050
500,000 FHLB, 6.04%, 12/19/00 499,950
250,000 FHLB, 6.29%, 1/2/01 250,035
500,000 FHLB, 6.375%, 10/22/02 502,175
400,000 FHLB, 6.40%, 12/4/03 400,612
500,000 FHLB, 6.229%, 4/20/05 498,615
500,000 FHLB, 6.85%, 12/4/06 500,070
250,000 Freddie Mac, 6.825%, 9/18/02 250,485
250,000 Freddie Mac, 7.13%, 9/15/05 250,305
1,000,000 Freddie Mac, 5.95%, 1/19/06 995,010
500,000 Freddie Mac, 6.37%, 1/23/06 497,230
1,000,000 Freddie Mac, 6.642%, 3/13/06 1,009,000
250,000 Freddie Mac, 7.245%, 4/24/06 257,277
500,000 Freddie Mac, 7.58%, 6/12/06 521,225
250,000 Freddie Mac, 8.00%, 8/14/06 251,712
JOHNSONFAMILY INTERMEDIATE FIXED INCOME FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Principal
Amount Value
- --------- --------
U. S. GOVERNMENT AGENCIES (continued) 28.94%
NOTES (continued) 21.38%
$300,000 Fannie Mae, 6.24%, 8/19/03 $297,171
250,000 Fannie Mae, 7.00%, 9/3/03 253,365
300,000 Fannie Mae, 7.25%, 6/1/05 306,690
750,000 Fannie Mae, 6.85%, 9/12/05 760,485
1,000,000 Fannie Mae, 5.875%, 2/2/06 990,400
800,000 Fannie Mae, 6.65%, 3/8/06 807,328
500,000 Fannie Mae, 6.29%,4/23/08 497,065
1,000,000 Fannie Mae, 7.00%, 4/12/13 1,000,120
500,000 Student Loan Marketing Association, 6.38%, 12/11/01 500,095
-----------
13,348,900
-----------
REMICS 5.90%
746,796 Freddie Mac, 37-K, 6.00%, 3/17/06 741,730
400,000 Freddie Mac, 1602, Class O, 6.00%, 10/15/23 389,003
800,000 Fannie Mae, 93-175, Class E, 6.25%, 9/25/08 776,356
500,000 Fannie Mae, 97-23PE, 6.00%, 9/25/08 481,029
400,000 Fannie Mae, 92-58, Class L, 6.00%, 9/25/19 383,763
942,303 Fannie Mae, 6.00%, 9/1/23 910,206
-----------
3,682,087
-----------
OTHER AGENCY ISSUES 1.66%
500,000 Private Export Funding, 6.49%, 7/15/07 519,375
500,000 Private Export Funding, 7.90%, 3/31/00 518,750
-----------
1,038,125
-----------
TOTAL U. S. GOVERNMENT AGENCIES
(cost $18,070,590) 18,069,112
-----------
U.S. TREASURY OBLIGATIONS 15.85%
100,000 U.S. Treasury Note, 4.75%, 9/30/98 99,780
1,250,000 U.S. Treasury Note, 7.00%, 4/15/99 1,267,175
1,500,000 U.S. Treasury Note, 6.25%, 4/30/01 1,525,725
800,000 U.S. Treasury Note, 6.375%, 9/30/01 817,728
2,750,000 U.S. Treasury Note, 5.875%, 11/30/01 2,769,635
1,000,000 U.S. Treasury Note, 6.25%, 2/15/03 1,024,340
410,000 U.S. Treasury Note, 5.75%, 8/15/03 411,623
1,500,000 U.S. Treasury Note, 6.125%, 8/15/07 1,539,885
2,000,000 U.S. Treasury Strips, 8/15/23 440,840
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(cost $9,899,273) 9,896,731
-----------
JOHNSONFAMILY INTERMEDIATE FIXED INCOME FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Number of
Shares Value
- --------- --------
SHORT-TERM INVESTMENT 5.30%
3,306,170 SSGA Money Market Fund $3,306,170
-----------
TOTAL SHORT-TERM INVESTMENT
(cost $3,306,170) 3,306,170
-----------
TOTAL INVESTMENTS 99.21%
(cost $61,968,796) 61,933,063
Cash and Other Assets, less Liabilities 0.79% 495,049
-----------
NET ASSETS 100.00% $62,428,112
===========
See notes to the financial statements.
JOHNSONFAMILY LARGE CAP EQUITY FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Number of
Shares Value
- --------- --------
COMMON STOCKS 98.03%
AEROSPACE 3.98%
18,000 General Dynamics Corp. $760,500
2,930 Lockheed Martin Corp. 326,329
4,800 Northrop Grumman Corp. 507,300
-----------
1,594,129
-----------
BANKING 8.72%
9,500 AmSouth Bancorporation 592,562
4,050 Comerica, Inc. 271,097
3,300 J.P. Morgan & Co., Inc. 433,125
15,000 KeyCorp 595,313
10,600 Mellon Bank Corp. 763,200
5,040 National City Corp. 349,020
9,800 Summit Bancorp 491,225
-----------
3,495,542
-----------
CHEMICALS 3.85%
2,600 PPG Industries, Inc. 183,787
3,000 Rohm & Haas Co. 323,438
13,300 The Lubrizol Corp. 490,437
11,200 Union Carbide Corp. 543,200
-----------
1,540,862
-----------
CONSUMER DURABLE 3.20%
10,800 Ford Motor Co. 494,775
21,600 ITT Industries, Inc. 787,050
-----------
1,281,825
-----------
CONSUMER STAPLES 12.21%
36,800 American Stores Co. 883,200
14,100 Brown-Forman Corp., Class B 798,413
26,000 Interstate Bakeries Corp 823,875
16,700 Lancaster Colony Corp. 645,037
21,400 Rite Aid Corporation 687,475
4,100 Sara Lee Corp. 244,206
18,500 Supervalu, Inc. 808,219
-----------
4,890,425
-----------
JOHNSONFAMILY LARGE CAP EQUITY FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Number of
Shares Value
- --------- --------
COMMON STOCKS (continued) 98.03%
ENERGY 8.92%
10,700 Amerada Hess Corp. $615,250
6,400 Atlantic Richfield Co. 499,200
400 Coastal Corp. 28,575
9,900 Murphy Oil Corp. 509,231
14,000 Phillips Petroleum Co. 693,875
33,200 Union Texas Petroleum Holdings, Inc. 670,225
9,400 Unocal Corp. 384,813
4,800 USX-Marathon Group 171,900
-----------
3,573,069
-----------
FINANCIAL SERVICES 0.42%
2,253 Associates First Capital Corp., Class A 168,412
-----------
HEALTH CARE 12.30%
2,700 American Home Products Corp. 251,437
2,600 Becton Dickinson & Co. 181,025
8,100 Bristol-Myers Squibb Co. 857,587
2,112 Fresenius Medical Care AG ADR<F1> 48,708
6,700 Merck & Co., Inc. 807,350
7,900 Schering-Plough Corp. 632,987
21,600 Tenet Healthcare Corp.<F1> 808,650
15,700 Watson Pharmaceuticals, Inc.<F1> 675,100
9,200 Wellpoint Health Networks, Inc.<F1> 663,550
-----------
4,926,394
-----------
INDUSTRIAL 9.73%
8,100 FMC Corp.<F1> 628,256
12,900 Harris Corp. 624,037
17,000 Harsco Corp. 782,000
8,300 National Service Industries, Inc. 449,238
13,500 Raytheon Co., Class B 765,281
11,600 Rockwell International Corp. 648,875
-----------
3,897,687
-----------
INSURANCE 5.52%
6,400 Ambac Financial Group, Inc. 362,800
9,600 Excel Limited 717,000
17,100 Old Republic International Corp. 773,775
JOHNSONFAMILY LARGE CAP EQUITY FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Number of
Shares Value
- --------- --------
COMMON STOCKS (continued) 98.03%
INSURANCE (continued) 5.52%
5,200 ReliaStar Financial Corp. $237,250
1,100 The Hartford Financial Services Group, Inc. 121,825
-----------
2,212,650
-----------
RETAIL 4.02%
3,500 Fruit of the Loom, Inc., Class A<F1> 130,812
13,900 Sears, Roebuck and Co. 824,444
12,600 VF Corp. 655,200
-----------
1,610,456
-----------
SERVICES 7.69%
17,800 Callaway Golf Co. 485,050
6,800 Carnival Corp., Class A 473,025
9,100 Dun & Bradstreet Corp. 323,050
21,700 King World Productions, Inc.<F1> 579,119
10,450 Snap-On, Inc. 442,166
400 The Washington Post Co.,Class B 209,700
5,000 Xerox Corp. 567,500
-----------
3,079,610
-----------
TECHNOLOGY 6.74%
20,800 Andrew Corp.<F1> 475,800
16,300 Compaq Computer Corp. 457,419
7,950 Computer Associates International, Inc. 465,572
3,400 Dell Computer Corp.<F1> 274,550
11,200 EMC Corp.<F1> 516,600
3,800 National Semiconductor Corp.<F1> 83,600
10,400 Sun Microsystems, Inc.<F1> 428,350
-----------
2,701,891
-----------
TELECOMMUNICATIONS 7.05%
7,459 Bell Atlantic Corp. 697,883
5,800 ComStat Corp. 234,175
18,200 Frontier Corp. 544,863
5,900 GTE Corp. 344,781
2,200 Southern New England Telecommunications Corp. 154,000
4,500 Sprint Corp. 307,406
10,300 U S WEST Communications Group 543,325
-----------
2,826,433
-----------
JOHNSONFAMILY LARGE CAP EQUITY FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Number of
Shares Value
- --------- --------
COMMON STOCKS (continued) 98.03%
UTILITIES 3.68%
1,000 CMS Energy Corp. $43,688
13,000 DTE Energy Co. 509,437
11,600 Pinnacle West Capital Corp. 513,300
12,200 Public Service Enterprise Group, Inc. 409,463
-----------
1,475,888
-----------
TOTAL COMMON STOCKS
(cost $33,625,062) 39,275,273
-----------
SHORT-TERM INVESTMENT 1.90%
762,866 SSGA Money Market Fund 762,866
-----------
TOTAL SHORT-TERM INVESTMENT
(cost $762,866) 762,866
-----------
TOTAL INVESTMENTS
(cost $34,387,928) 99.93% 40,038,139
Cash and Other Assets, less Liabilities 0.07% 26,294
-----------
NET ASSETS 100.00% $40,064,433
===========
<F1> Non-incoming producing.
See notes to the financial statements.
JOHNSONFAMILY SMALL CAP EQUITY FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Number of
Shares Value
- --------- --------
COMMON STOCKS 96.87%
AEROSPACE 3.18%
11,500 Alliant Techsystems, Inc.<F1> $332,475
6,800 Thiokol Corp. 366,350
-----------
698,825
-----------
BANKING 10.81%
6,100 Associated Banc-Corp. 320,250
7,300 Chittenden Corp. 273,750
8,900 Colonial BancGroup, Inc. 319,288
6,900 Commerce Bancshares, Inc. 338,100
10,600 Riggs National Corp. 305,412
4,700 SierraWest Bancorp 174,488
6,200 Trans Financial, Inc. 344,100
5,100 UMB Financial Corp. 300,900
-----------
2,376,288
-----------
BUILDING PRODUCTS 1.47%
5,000 Texas Industries, Inc. 322,187
-----------
CAPITAL GOODS 2.98%
5,500 Cincinnati Milacron, Inc. 170,844
7,500 Commercial Intertech Corp. 161,719
9,700 Robbins & Myers, Inc. 321,313
-----------
653,876
-----------
CHEMICALS 3.01%
11,500 Ferro Corp. 331,344
9,300 International Specialty Products, Inc.<F1> 185,419
5,100 LeaRonal, Inc. 145,350
-----------
662,113
-----------
CONSUMER DURABLES 4.35%
13,200 Excel Industries, Inc. 275,550
4,600 National Presto Industries, Inc. 182,850
5,500 Skyline Corp. 167,063
10,300 Standard Products Co. 329,600
-----------
955,063
-----------
JOHNSONFAMILY SMALL CAP EQUITY FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Number of
Shares Value
- --------- --------
COMMON STOCKS (continued) 96.87%
CONSUMER STAPLES 4.44%
2,100 Block Drug Co., Inc. $88,462
8,200 Coors (Adolph) Co., Class B 293,150
7,200 Lancaster Colony Corp. 278,100
10,900 Longs Drug Stores Corp. 315,419
-----------
975,131
-----------
ENERGY 4.71%
6,000 Questar Corp. 260,250
14,900 Seagull Energy Corp.<F1> 254,231
12,500 Union Texas Petroleum Holdings, Inc. 252,344
8,300 Valero Energy Corp. 268,712
-----------
1,035,537
-----------
HEALTH CARE 11.87%
13,700 ADAC Laboratories<F1> 297,975
8,800 Arrow International, Inc. 290,400
8,800 Bindley Western Industries, Inc. 342,100
22,700 Chronimed, Inc.<F1> 314,963
3,400 CorVel Corp.<F1> 121,125
7,400 Empi, Inc.<F1> 148,000
1,800 First Health Group Corp.<F1> 106,200
4,300 Lincare Holdings, Inc.<F1> 348,837
22,300 NovaCare, Inc.<F1> 310,806
10,200 Quorum Health Group, Inc.<F1> 327,675
-----------
2,608,081
-----------
INDUSTRIAL 10.46%
7,700 AMETEK, Inc. 234,369
5,600 Blount International, Inc., Class A 173,950
5,800 Kennametal, Inc. 309,212
7,500 Pentair, Inc. 324,375
8,900 Pittston Brink's Group 348,212
9,100 Premark International, Inc. 303,713
6,900 Teleflex, Inc. 293,250
6,100 Trinity Industries, Inc. 311,100
-----------
2,298,181
-----------
JOHNSONFAMILY SMALL CAP EQUITY FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Number of
Shares Value
- --------- --------
COMMON STOCKS (continued) 96.87%
INSURANCE 6.17%
1,600 American National Insurance Co. $172,800
5,200 Capital Re Corp. 383,825
5,916 Delphi Financial Group, Inc., Class A<F1> 337,212
4,400 Everest Reinsurance Holdings, Inc. 181,500
2,900 NAC Re Corp. 145,000
4,500 PXRE Corp. 135,562
-----------
1,355,899
-----------
RETAIL 7.56%
11,200 Guilford Mills, Inc. 316,400
8,700 Land's End, Inc.<F1> 320,812
12,700 Pier 1 Imports, Inc. 334,962
7,200 Ross Stores, Inc. 333,450
10,300 ShopKo Stores, Inc.<F1> 356,638
-----------
1,662,262
-----------
SERVICES 10.43%
15,100 Aaron Rents, Inc. 306,719
8,300 American Business Products, Inc. 191,938
34,200 Arctic Cat, Inc. 342,000
7,600 Bowne & Co., Inc. 313,975
7,900 Callaway Golf Co. 215,275
9,600 Franklin Covey Co.<F1> 240,000
11,300 Ogden Corp. 347,475
11,200 The McClatchy Co., Class A 335,300
-----------
2,292,682
-----------
TECHNOLOGY 9.43%
6,700 Andrew Corp.<F1> 153,262
8,600 BARRA, Inc.<F1> 206,400
9,900 Boole & Babbage, Inc.<F1> 237,600
7,600 Communications Systems, Inc. 139,650
6,900 Dallas Semiconductor Corp. 266,081
4,100 MICROS Systems, Inc.<F1> 241,388
6,800 National Instruments Corp.<F1> 241,400
6,100 Novellus Systems, Inc. 292,037
5,200 Systems & Computer Technology Corp.<F1> 293,800
-----------
2,071,618
-----------
JOHNSONFAMILY SMALL CAP EQUITY FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Number of
Shares Value
- --------- --------
COMMON STOCKS (continued) 96.87%
TELECOMMUNICATIONS 1.48%
5,200 Aliant Communications, Inc. $326,313
-----------
TRANSPORTATION 1.48%
12,100 Avondale Industries, Inc.<F1> 325,187
-----------
UTILITIES 3.04%
8,000 Boston Edison Co. 326,000
900 IES Industries, Inc. 28,406
14,900 MidAmerican Energy Holdings Co. 314,763
-----------
669,169
-----------
TOTAL COMMON STOCKS
(cost $21,260,986) 21,288,412
-----------
SHORT-TERM INVESTMENT 3.93%
864,600 SSGA Money Market Fund 864,600
-----------
TOTAL SHORT-TERM INVESTMENT
(cost $864,600) 864,600
-----------
TOTAL INVESTMENTS
(cost $22,125,586) 100.80% 22,153,012
Liabilities less Cash and Other Assets -0.80% (174,761)
-----------
NET ASSETS 100.00% $21,978,251
===========
<F1> Non-incoming producing.
See notes to the financial statements.
JOHNSONFAMILY INTERNATIONAL EQUITY FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Number of
Shares Value
- --------- --------
COMMON STOCKS 88.79%
AUSTRIA 0.93%
1,300 EVN Energie-Versorgung Niederoesterreich AG $191,993
-----------
AUSTRALIA 5.88%
38,100 Coles Myer Ltd. 184,316
55,000 CSR Ltd. 175,708
16,200 National Australia Bank 230,253
143,500 RGC Ltd. <F1> 196,474
29,100 Rothmans Holdings Ltd. 194,469
34,200 Westpac Banking Corporation Ltd. 229,666
-----------
1,210,886
-----------
BELGIUM 2.18%
800 Electrabel SA 212,351
600 PetroFina SA 236,546
-----------
448,897
-----------
CANADA 3.25%
2,800 Alberta Energy Company Ltd. 67,550
1,300 Alcan Aluminum Ltd. 42,250
1,500 BCE, Inc. 63,844
2,200 Canadian Imperial Bank of Commerce 77,962
1,300 Canadian Pacific Ltd. 38,269
1,000 Imasco Ltd. 37,647
1,400 Imperial Oil Ltd. 77,437
500 Magna International, Inc.- Class A 37,281
800 Northern Telecom Ltd. 48,700
1,900 Quebecor, Inc.- Class A 38,000
2,100 Telus Corp. 56,597
1,800 The Toronto-Dominion Bank 82,237
-----------
667,774
-----------
DENMARK 3.89%
1,200 A/S Forsikringsselskabet Codan 189,386
1,500 Den Danske Bank Group 181,933
2,700 Tele Danmark A.S. - Class B 226,868
2,400 Unidanmark A.S. - Class A 201,661
-----------
799,848
-----------
JOHNSONFAMILY INTERNATIONAL EQUITY FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Number of
Shares Value
- --------- --------
COMMON STOCKS (continued) 88.79%
FINLAND 4.07%
10,400 Enso Oyj $110,718
1,600 Huhtamaki 92,510
9,200 Kemira Oyj 99,631
1,600 Nokia Ayj - Class A 107,487
5,000 Orion-Yhtyma OY - Class B 155,100
6,300 Rauma Oyj 117,950
9,300 Valmet Oyj 154,144
-----------
837,540
-----------
FRANCE 6.94%
1,100 Cap Gemini SA 142,761
1,600 Elf Aquitaine SA 209,779
400 Eridania Beghin-Say SA 86,677
200 L'Oreal 95,384
1,800 Pernod Ricard 124,133
100 Sagem SA 64,808
3,300 Scor 203,338
700 Societe Generale 145,636
1,400 Union des Assurances Federales 218,919
9,100 Usinor SA 136,097
-----------
1,427,532
-----------
GERMANY 5.37%
3,000 BASF AG 133,742
9,300 Deutsche Telekom A. G. 237,359
300 Dyckerhoff AG 96,963
3,000 Gehe AG 156,311
3,600 Merck KGaA 139,426
200 SAP AG 94,511
1,500 Schering AG 161,076
100 Wella Aktiengesellschaft 86,375
-----------
1,105,763
-----------
GREECE 0.57%
4,100 Hellenic Telecommunication Organization SA 117,350
-----------
HONG KONG 2.17%
62,000 Hong Kong Telecommunications Ltd. 116,059
4,000 HSBC Holdings PLC 114,123
JOHNSONFAMILY INTERNATIONAL EQUITY FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Number of
Shares Value
- --------- --------
COMMON STOCKS (continued) 88.79%
HONG KONG (continued) 2.17%
32,000 Johnson Electric Holdings Ltd. $108,442
38,000 New World Development Company Ltd. 108,171
-----------
446,795
-----------
ITALY 0.89%
4,100 Benetton Group S.p.A. 91,628
22,900 Fiat SpA 90,788
-----------
182,416
-----------
JAPAN 5.01%
3,000 Canon, Inc. 71,066
4,000 Dai Nippon Printing Company Ltd. 68,115
5,100 Daito Trust Contruction Co. Ltd. 35,858
22,000 Mitsubishi Heavy Industries Ltd. 81,586
6,000 NEC Corporation 67,661
6,000 Nippon Express Co. Ltd. 34,284
17 Nippon Telegraph & Telephone Corp. 149,247
2,000 Sankyo Co. Ltd. 49,648
10,000 Suzuki Motor Corp. 86,127
16,000 Takara Standard Co. Ltd. 89,972
5,000 The Toho Bank Ltd. 19,867
700 Toho Co. Ltd. 73,587
10,000 Tonen Corp. 56,005
10,000 Wacoal Corp. 101,037
2,000 Yamanouchi Pharmaceutical Co. Ltd. 47,378
-----------
1,031,438
-----------
MALAYSIA 1.74%
96,000 Golden Hope Plantations Bhd 118,588
110,000 Highlands & Lowlands Bhd 122,941
50,000 Kuala Lumpur Kepong Bhd 115,641
-----------
357,170
-----------
MEXICO 1.75%
31,000 Carso Global Telecom 116,850
26,000 Cemexa SA de CV <F1> 123,269
31,000 Organizacion Soriana SA de CV 119,954
-----------
360,073
-----------
JOHNSONFAMILY INTERNATIONAL EQUITY FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Number of
Shares Value
- --------- --------
COMMON STOCKS (continued) 88.79%
NETHERLANDS 6.21%
6,500 ABN Amro Holding NV $158,277
1,200 DSM NV 120,266
3,600 Fortis Amev NV 210,600
2,600 ING Group NV 168,957
4,800 N.V. Holdingmaat-Schappij De Telegraaf 111,417
4,100 Royal Dutch Petroleum Co. 226,254
1,600 Royal Phillips Electronics N.V. 140,954
3,900 Stork N.V. 141,098
-----------
1,277,823
-----------
NEW ZEALAND 0.94%
40,800 Telecom Corporation of New Zealand Ltd. 193,832
NORWAY 2.21%
35,200 Christiania Bank Og Kreditkasse 161,886
35,400 Den Norske Bank ASA 186,064
3,000 Norske Skogindustrier ASA 106,596
-----------
454,546
-----------
PORTUGAL 0.51%
2,000 Portugal Telecom SA 104,952
-----------
SINGAPORE 2.46%
14,000 City Developments Ltd. 60,562
6,200 Creative Technology Ltd.<F1> 128,816
13,000 Development Bank of Singapore 86,202
23,000 Overseas Union Bank Ltd. 87,149
22,000 Singapore Airlines Ltd. 143,101
-----------
505,830
-----------
SPAIN 1.53%
9,500 Iberdrola S.A. 152,708
3,900 Telefonica de Espana 162,740
-----------
315,448
-----------
JOHNSONFAMILY INTERNATIONAL EQUITY FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Number of
Shares Value
- --------- --------
COMMON STOCKS (continued) 88.79%
SWEDEN 1.57%
4,100 Mo och Domsjo AB - Class B $127,151
8,000 Trelleborg AB - Class B 107,510
3,000 Volvo AB - Class B 87,610
-----------
322,271
-----------
SWITZERLAND 5.64%
100 Compagnie Financiere Richemont AG 143,339
200 Hilti AG 163,340
100 Nestle S.A. 194,008
100 Novartis A. G. 165,340
100 Schweizerische Rueckversicherungs-Gesellschaft 220,675
300 SGS Societe Generale de Surveillance Holding SA 105,604
600 SMH AG 90,004
300 Valora Holding AG 78,403
-----------
1,160,713
-----------
TURKEY 1.16%
183,000 Petkim Petrokimya Holdings A.S. 126,257
2,180,200 Tofas Turk Otomobil Fabrika A.S. 113,359
-----------
239,616
-----------
UNITED KINGDOM 21.92%
15,100 Allied Domecq PLC 155,523
10,700 B.A.T. Industries PLC 101,349
10,200 Barclays PLC 294,700
7,900 Boots Company PLC 122,644
3,600 British Aerospace PLC 120,384
7,600 British Airways PLC 79,547
46,500 British Steel PLC 124,008
17,000 British Telecommunications PLC 184,614
7,300 General Accident PLC 172,587
7,000 Great Universal Stores PLC 106,682
25,200 Guardian Royal Exchange PLC 170,223
6,500 Hays PLC 110,582
54,600 Hillsdown Holdings PLC 162,498
9,200 HSBC Holdings PLC 290,574
7,000 Johnson Matthey PLC 70,926
6,600 Kingfisher PLC 119,953
26,100 Ladbroke Group PLC 143,573
JOHNSONFAMILY INTERNATIONAL EQUITY FUND
Schedule of Investments
April 30, 1998
(Unaudited)
Number of
Shares Value
- --------- --------
COMMON STOCKS (continued) 88.79%
UNITED KINGDOM (continued) 21.92%
9,900 Lonrho PLC $71,425
21,400 LucasVarity PLC 95,893
11,800 PowerGen PLC 159,711
18,800 Racal Electronics PLC 104,988
16,800 Shell Transport & Trading Co. 125,139
36,100 Smith (David S.) Holdings 137,317
15,300 SmithKline Beecham PLC 182,525
17,400 Tate & Lyle PLC 141,827
10,700 Thames Water PLC 175,058
49,800 Woolwich PLC 286,226
20,600 WPP Group PLC 130,798
21,900 Yorkshire Water PLC 176,310
4,500 Zeneca Group PLC 194,119
-----------
4,511,703
-----------
TOTAL COMMON STOCKS
(cost $18,378,246) 18,272,209
-----------
Principal
Amount
- ---------
SHORT-TERM INVESTMENTS 18.51%
$1,000,000 Federal Home Loan Bank (FHLB), 5.43%, 5/1/98 1,000,000
2,000,000 FHLB, 5.35%, 5/6/98 1,998,514
Number of
Shares
- ---------
811,518 SSGA Money Market Fund 811,518
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $3,810,032) 3,810,032
-----------
TOTAL INVESTMENTS
(cost $22,188,278) 107.30% 22,082,241
Liabilities less Cash and Other Assets -7.30% (1,503,262)
-----------
NET ASSETS 100.00% $20,578,979
===========
<F1> Non-incoming producing.
JOHNSONFAMILY INTERNATIONAL EQUITY FUND
Schedule of Investments
April 30, 1998
(Unaudited)
At April 30, 1998, the International Equity
Fund's investment, excluding short-term
investments, were diversified as follows:
Industry Sector
----------------
Automotive 2.80%
Commercial Goods and Services 20.01
Consumer Goods and Services 11.79
Energy Sources/Utilities 9.39
Financial Services 24.51
Health Care Products 6.85
Paper Products 2.64
Real Estate 1.12
Retail 4.51
Technology 2.39
Telecommunications 10.32
Other 3.67
-------
100.00%
=======
See notes to the financial statements.
JOHNSONFAMILY FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
INTERMEDIATE
FIXED INCOME LARGE CAP SMALL CAP INTERNATIONAL
FUND EQUITY FUND EQUITY FUND EQUITY FUND
---- ----------- ----------- -----------
<C> <C> <C> <C>
ASSETS:
Investments, at value
(cost $61,968,796, $34,387,928, $22,125,586,
and $22,188,278, respectively) $61,933,063 $40,038,139 $22,153,012 $22,082,241
Receivable for foreign tax withheld - - - 1,839
Dividends and interest receivable 787,219 65,773 27,989 86,162
Receivable from adviser 21,357 7,627 7,242 8,639
Organizational expenses, net of accumulated amortization 31,120 31,120 31,120 31,120
Prepaids and other assets 13,711 11,539 10,014 10,333
---------- ---------- ---------- ----------
Total assets 62,786,470 40,154,198 22,229,377 22,220,334
---------- ---------- ---------- ----------
LIABILITIES:
Payable for investments purchased - - 182,187 1,564,653
Dividend payable 257,581 - - -
Accrued investment advisory fee 22,370 22,825 11,507 14,313
Payable to adviser-expenses 6,875 6,875 6,875 6,875
Accrued distribution fee 12,428 7,608 3,836 3,976
Other liabilities 59,104 52,457 46,721 51,538
---------- ---------- ---------- ----------
Total liabilities 358,358 89,765 251,126 1,641,355
---------- ---------- ---------- ----------
NET ASSETS $62,428,112 $40,064,433 $21,978,251 $20,578,979
========== ========== ========== ==========
NET ASSETS CONSIST OF:
Capital Stock $ 625 $ 403 $ 220 $ 206
Paid-in-capital 62,445,671 34,298,041 21,940,981 20,635,429
Undistributed net investment income 11,539 28,672 9,624 49,752
Accumulated net realized gain on investments
and foreign currency transactions 6,010 87,106 - -
Net unrealized appreciation (depreciation) on investments (35,733) 5,650,211 27,426 (106,037)
Net unrealized depreciation on translation of assets
and liabilities in foreign currencies - - - (371)
---------- ---------- ---------- ----------
Net Assets $62,428,112 $40,064,433 $21,978,251 $20,578,979
========== ========== ========== ==========
CAPITAL STOCK, $0.0001 PAR VALUE
Authorized 100,000,000 100,000,000 100,000,000 100,000,000
Issued and outstanding 6,247,569 4,030,054 2,201,379 2,062,162
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE $9.99 $9.94 $9.98 $9.98
===== ===== ===== =====
MAXIMUM OFFERING PRICE PER SHARE $10.27 $10.35 $10.40 $10.40
====== ====== ====== ======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
JOHNSONFAMILY FUNDS, INC.
STATEMENTS OF OPERATIONS
FOR THE PERIOD ENDED APRIL 30, 1998<F1>
(UNAUDITED)
INTERMEDIATE
FIXED INCOME LARGE CAP SMALL CAP INTERNATIONAL
FUND EQUITY FUND EQUITY FUND EQUITY FUND
---- ------------ ----------- ------------
<C> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of withholding taxes of $0, $0, $0,
and $7,849 respectively) $ - $ 54,087 $ 11,718 $ 45,574
Interest 309,254 16,592 18,799 45,901
---------- ----------- ---------- ----------
Total investment income 309,254 70,679 30,517 91,475
EXPENSES:
Investment advisory fees 22,370 22,825 11,507 14,313
Distribution fees 12,428 7,608 3,836 3,976
Administration and fund accounting fees 9,910 6,087 3,069 3,181
Printing and postage expenses 3,504 2,804 1,751 1,401
Federal and state registration fees 3,434 2,348 1,430 1,185
Professional fees 3,295 2,593 2,173 1,682
Amortization of organizational costs 2,755 2,755 2,755 2,755
Transfer agent fees and expenses 1,934 1,864 1,654 1,654
Custody fees 1,682 1,332 1,052 4,907
Directors' fees and expenses 1,332 1,051 701 561
Pricing expense 519 154 154 2,271
Insurance expense 379 278 147 147
Miscellaneous 70 56 27 27
---------- ----------- ---------- ----------
Total expenses before waiver 63,612 51,755 30,256 38,060
Waiver of expenses (21,357) (7,627) (7,242) (8,639)
---------- ----------- ---------- ----------
Net expenses 42,255 44,128 23,014 29,421
---------- ----------- ---------- ----------
NET INVESTMENT INCOME 266,999 26,551 7,503 62,054
---------- ----------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVEST-
MENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain on investments 6,010 87,106 - -
Net realized loss on foreign currency transactions - - - (14,423)
Net change in unrealized appreciation (depreciation) on
investments (134,829) (411,556) 27,426 (308,364)
Net change in unrealized appreciation on translation
of assets and liabilities in foreign currencies - - - 201,956
---------- ----------- ---------- ----------
Net gain (loss) on investments and foreign currency transactions (128,819) (324,450) 27,426 (120,831)
---------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 138,180 $(297,899) $ 34,929 $ (58,777)
========= =========== ========== ==========
<F1> Commenced operations on March 31, 1998.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
JOHNSONFAMILY FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED APRIL 30, 1998<F1>
(UNAUDITED)
INTERMEDIATE
FIXED INCOME LARGE CAP SMALL CAP INTERNATIONAL
FUND EQUITY FUND EQUITY FUND EQUITY FUND
---- ------------ ------------ ------------
<C> <C> <C> <C>
OPERATIONS:
Net investment income $ 266,999 $ 26,551 $ 7,503 $ 62,054
Net realized gain on investments 6,010 87,106 - -
Net realized loss on foreign currency transactions - - - (14,423)
Change in unrealized appreciation (depreciation)
on investments (134,829) (411,556) 27,426 (308,364)
Change in unrealized appreciation on translation
of assets and liabilities in foreign currencies - - - 201,956
Net increase (decrease) in net assets resulting
---------- ---------- ---------- ----------
from operations 138,180 (297,899) 34,929 (58,777)
---------- ---------- ---------- ----------
DISTRIBUTIONS PAID FROM:
Net investment income (257,581) - - -
---------- ---------- ---------- ----------
SHARE TRANSACTIONS:
Shares sold 22,952,128 16,696,841 21,972,487 20,882,639
Shares sold during common and commingled trust fund
conversions 40,058,886 23,721,464 - -
Shares redeemed (513,501) (103,973) (30,165) (245,883)
---------- ---------- ---------- ----------
Net increase from share transactions 62,497,513 40,314,332 21,942,322 20,636,756
---------- ---------- ---------- ----------
TOTAL INCREASE IN NET ASSETS 62,378,112 40,016,433 21,977,251 20,577,979
NET ASSETS:
Beginning of period 50,000 48,000 1,000 1,000
---------- ---------- ---------- ----------
End of period (includes undistributed net investment
income of $9,418, $26,551, $7,503 and
$62,054, respectively) $ 62,428,112 $ 40,064,433 $ 21,978,251 $ 20,578,979
============ ============ ============ =============
<F1> Commenced operations on March 31, 1998.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
JOHNSONFAMILY FUNDS, INC
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED APRIL 30, 1998<F1>
(UNAUDITED)
INTERMEDIATE
FIXED INCOME LARGE CAP SMALL CAP INTERNATIONAL
FUND EQUITY FUND EQUITY FUND EQUITY FUND
---- ------------ ------------ ------------
<C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00 $10.00 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.04 0.01 0.00 0.03
Net realized and unrealized losses on investments
and foreign currency transactions (0.01) (0.07) (0.02) (0.05)
------ ------ ------ ------
Total from investment operations 0.03 (0.06) (0.02) (0.02)
------ ------ ------ ------
LESS DISTRIBUTIONS PAID:
From net investment income (0.04) 0.00 0.00 0.00
------ ------ ------ ------
(0.04) 0.00 0.00 0.00
------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $9.99 $9.94 $9.98 $9.98
====== ====== ====== ======
TOTAL RETURN<F2> 0.31% (0.60)% (0.20)% (0.20)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $62,428 $40,064 $21,978 $20,579
Ratio of expenses to average net assets,
net of waivers<F3> 0.85% 1.45% 1.50% 1.85%
Ratio of net investment income to average net
assets, net of waivers<F3> 5.37% 0.87% 0.49% 3.90%
Ratio of expenses to average net assets,
before waivers<F3> 1.28% 1.70% 1.97% 2.39%
Ratio of net investment income to average net
assets, net of waivers<F3> 4.94% 0.62% 0.02% 3.36%
Portfolio turnover rate<F2> 1% 1% 0% 1%
<F1> Commenced operations on March 31, 1998.
<F2> Not annualized
<F3> Annualized
See notes to financial statements.
</TABLE>
JOHNSONFAMILY FUNDS, INC.
Notes to the Financial Statements
April 30, 1998
(Unaudited)
1. ORGANIZATION
JohnsonFamily Funds, Inc. (the "Company") was organized on January 27, 1998 as a
Maryland corporation and is registered under the Investment Company Act of 1940,
as amended (the "1940 Act"), as an open-end management investment company
issuing its shares in series, each series representing a distinct portfolio with
its own investment objectives and policies. At April 30, 1998 the only series
presently authorized are the JohnsonFamily Intermediate Fixed Income Fund, the
JohnsonFamily Large Cap Equity Fund, the JohnsonFamily Small Cap Equity Fund and
the JohnsonFamily International Equity Fund (individually referred to as a
"Fund" and collectively as the "Funds").
As of March 31, 1998, assets of the common and commingled trust funds of the
Johnson Heritage Equity Income Fund and Johnson Value Fund were transferred to
the JohnsonFamily Large Cap Equity Fund and assets of the common and commingled
trust funds of the Johnson Heritage Fund for Income and the Johnson Heritage
Income Fund were transferred to the JohnsonFamily Intermediate Fixed Income Fund
under Section 584(h) of the Internal Revenue Code. These transfers were treated
as a tax-free event. To qualify as a tax-exempt transaction, the securities
were transferred at market value with the original cost basis and purchase dates
being retained for book and tax purposes. Proceeds from commingled and common
trust fund conversions, as shown on the Statement of Changes in Net Assets,
represent the market value of the commingled and common trust funds at the date
of conversion. The net change in unrealized appreciation on investments on the
Statement of Operations does not reflect the $6,061,767 and $99,096 unrealized
appreciation for the Large Cap Equity Fund and Intermediate Fixed Income Fund,
respectively, that existed at the date of the common trust fund transfer.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles
("GAAP").
a. Investment Valuation
Equity securities listed on a recognized U.S. or foreign securities exchange are
valued at the last sale price on the securities exchange on which such
securities are primarily traded. Unlisted equity securities for which market
quotations are readily available will be valued at the most recent bid price.
Equity securities listed on a recognized U.S. or foreign securities exchange for
which there were no transactions are valued at the closing bid prices. Debt
securities (other then short-term instruments) are valued at bid prices
furnished by a pricing service. Debt instruments maturing within 60 days are
valued at amortized cost which approximates fair value. Any securities for
which market quotations are not readily available are valued at their fair value
as determined in good faith by Johnson Asset Management Inc. (the "Adviser")
pursuant to guidelines established by the Board of Directors.
b. Foreign Currency Translations
Values of investments denominated in foreign currencies are converted into U.S.
dollars using the spot market rate of exchange at the time of valuation.
Purchases and sales of investments and dividend income are translated into U.S.
dollars using the spot market rate of exchange prevailing on the respective
dates of such transactions. The Funds have elected to separately disclose the
results of operations due solely to the changes in foreign currency rates.
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
c. Foreign Currency Exchange Contracts
The Funds are authorized to enter into foreign currency contracts for the
purchase of a specific foreign currency at a fixed price on a future date as a
hedge against either specific transactions or portfolio positions. The
objective of a Fund's foreign currency hedging transactions is to reduce the
risk that the U.S. dollar value of a Fund's foreign currency denominated
securities will decline in value due to changes in foreign currency exchange
rates. At April 30, 1998, the International Equity Fund has such contracts
outstanding relating to unsettled security purchase transactions. It is the
Fund's intent to minimize any change in value that may occur between the dates
the transactions were entered into and the dates the transactions will settle. A
difference of $2,668 exists between the value of the transactions on trade date
and the value of the transactions on the date such contracts were entered into.
This difference has been recorded as a realized gain on foreign currency
transactions in the financial statements.
d. Organizational Costs
Costs incurred by the Funds in connection with their organization, registration
and the initial public offering of shares have been deferred and will be
amortized over the period of benefit, but not to exceed five years from the date
upon which the Funds commenced their investment activities. If any of the
original shares of the Funds purchased by the initial shareholder are redeemed
by any holder thereof prior to the end of the amortization period, the
redemption proceeds will be reduced by the pro rata share of the unamortized
costs as of the date of redemption. The pro rata share by which the proceeds
are reduced will be derived by dividing the number of original shares of the
Funds being redeemed by the total number of original shares outstanding at the
time of redemption.
e. Federal Income and Excise Taxes
Each Fund intends to comply with the requirements of the Internal Revenue Code
necessary to qualify as a regulated investment company and to make the requisite
distributions of taxable income to its shareholders.
f. Distributions to Shareholders
Dividends from net investment income, if any, will be declared and paid monthly
for the Intermediate Fixed Income Fund, quarterly for the Large Cap Equity Fund
and annually for both the Small Cap Equity and International Equity Funds.
Distributions of net realized gains, if any, will be declared at least annually.
Distributions to shareholders are recorded on the ex-dividend date. The Funds
may periodically make reclassifications among certain of their capital accounts
as a result of the recognition and characterization of certain income and
capital gain distributions determined annually in accordance with federal tax
regulations which may differ from generally accepted accounting principals.
Accordingly, at April 30, 1998, reclassifications were recorded to
increase/(decrease) undistributed net investment income by $2,121, $2,121,
$2,121 and $(12,302), increase accumulated net realized gain on investment and
foreign currency transactions by $0, $0, $0 and $14,423 and decrease paid-in-
capital by $2,121, $2,121, $2,121 and $2,121 for the Intermediate Fixed Income
Fund, Large Cap Equity Fund, Small Cap Equity Fund and International Equity
Fund, respectively.
g. Securities Transactions and Investment Income
For financial reporting purposes, investment transactions are accounted for on
the trade date. The Funds determine the gain or loss realized from investment
transactions by comparing the original cost of the security lot sold with the
net sale proceeds. Dividend income is recognized on the ex-dividend date and
interest income is recognized on an accrual basis. Acquisition and market
discounts will be amortized over the life of the security.
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
h. Expenses
The Funds are charged for those expenses that are directly attributable to each
portfolio, such as advisory and custodian fees. Expenses that are not directly
attributable to a portfolio are typically allocated among the portfolios in
proportion to their respective net assets.
i. Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported changes in net assets during the reporting
period. Actual results could differ from those estimates.
3. CAPITAL STOCK
Transactions in shares of capital stock were as follows:
FOR THE PERIOD MARCH 31, 1998<F1> TO APRIL 30, 1998
INTERMEDIATE LARGE CAP SMALL CAP INTERNATIONAL
FIXED INCOME EQUITY EQUITY EQUITY
FUND FUND FUND FUND
---- ---- ---- ----
Shares sold 2,087,855 1,663,418 2,204,298 2,086,718
Shares sold during
common and
commingled trust
fund conversions 4,205,889 2,372,146 - -
Shares redeemed (51,175) (10,310) (3,019) (24,656)
---------- ---------- ---------- ----------
Net increase 6,242,569 4,025,254 2,201,279 2,062,062
========== ========== ========== ==========
<F1> Commencement of operations.
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of investment securities, excluding U.S. government and
short-term securities, for the period March 31, 1998<F1> to April 30, 1998 are
as follows:
INTERMEDIATE LARGE CAP SMALL CAP INTERNATIONAL
FIXED INCOME EQUITY EQUITY EQUITY
FUND FUND FUND FUND
---- ---- ---- ----
Purchases $25,799,195 $16,581,472 $21,260,986 $18,378,246
Sales 13,246,530 385,460 - -
Purchases of U.S. government securities for the Intermediate Fixed Income Fund
for the period March 31, 1998<F1> to April 30, 1998 were $7,045,454. There
were no sales of U.S. government securities during the period.
4. PURCHASES AND SALES OF SECURITIES (continued)
At April 30, 1998 gross unrealized appreciation and depreciation of securities,
based on the cost of investments for federal income tax purposes were as
follows:
INTERMEDIATE LARGE CAP SMALL CAP INTERNATIONAL
FIXED INCOME EQUITY EQUITY EQUITY
FUND FUND FUND FUND
---- ---- ---- ----
Unrealized
appreciation $ 338,693 $6,302,341 $612,954 $ 425,255
Unrealized
depreciation (374,426) (652,130) (585,528) (531,292)
---------- ---------- ---------- ----------
Net unrealized
appreciation
(depreciation) $ (35,733) $5,650,211 $ 27,426 $(106,037)
========== ========== ========== ==========
<F1> Commencement of operations.
5. INVESTMENT ADVISER
The Funds have an agreement with the Adviser, with whom certain officers and
Directors of the Funds are affiliated, to furnish investment advisory services
to the Funds. Under the terms of this agreement, the Funds will pay the Adviser
a monthly fee based on the Fund's average daily net assets at the annual rate of
0.45% for the Intermediate Fixed Income Fund, 0.75% for the Large Cap Equity
Fund and the Small Cap Equity Fund and 0.90% for the International Equity Fund.
Under the investment advisory agreements, if the aggregate annual operating
expenses (including the investment advisory fee and the administration fee but
excluding interest, taxes, brokerage commissions and other costs incurred in
connection with the purchase or sale of portfolio securities, and extraordinary
items) exceed 1.50% of the average daily net assets of the Intermediate Fixed
Income Fund, or 2.50% of each of the Large Cap Equity Fund, Small Cap Equity
Fund and International Equity Fund, the Adviser will reimburse the Funds for the
amount of such excess. Additionally, for the fiscal period ended October 31,
1998, the Adviser has voluntarily agreed to reimburse the Funds to the extent
aggregate annual operating expenses exceed 0.85%, 1.45%, 1.50%, and 1.85% of the
average daily net assets of the Intermediate Fixed Income Fund, Large Cap Equity
Fund, Small Cap Equity Fund, and International Equity Fund, respectively. For
the period March 31, 1998 to April 30,1998, the Adviser reimbursed the
Intermediate Fixed Income Fund, Large Cap Equity Fund, Small Cap Equity Fund,
and International Equity Fund $21,357, $7,627, $7,242 and $8,639, respectively.
6. SERVICE AND DISTRIBUTION PLAN
The Company has entered into a distribution agreement with Sunstone Distribution
Services, LLC. Pursuant to Rule 12b-1 under the 1940 Act, the Company has
adopted a Service and Distribution Plan (the "Plan"). Under the Plan, each Fund
is authorized to pay expenses incurred for the purpose of financing activities,
including the employment of other dealers, intended to result in the sale of
shares of each Fund at an annual rate of up to 0.25% of the Fund's average daily
net assets.
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