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JOHNSONFAMILY
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FUNDS
APRIL 30, 1999 SEMI-ANNUAL REPORT
<PAGE>
TABLE OF CONTENTS
Schedules of Investments
JohnsonFamily Intermediate Fixed Income Fund ......................... 1
JohnsonFamily Large Cap Equity Fund .................................. 4
JohnsonFamily Small Cap Equity Fund .................................. 6
JohnsonFamily International Equity Fund .............................. 8
Statements of Assets and Liabilities ...................................... 12
Statements of Operations .................................................. 13
Statements of Changes in Net Assets ....................................... 14
Financial Highlights ...................................................... 16
Notes to the Financial Statements ......................................... 18
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NOT FDIC-INSURED
- ----------------------------------------------
May lose value No bank guarantee
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Shares of JohnsonFamily Funds are distributed
by an independent third party, Sunstone
Distribution Services, LLC.
<PAGE>
SCHEDULES OF INVESTMENTS April 30, 1999 (Unaudited)
Intermediate Fixed Income Fund
Principal
Amount Value
- --------------------------------------------------------------------------------
CORPORATE BONDS - 59.25%
$ 500,000 AT&T Corp., 6.00%, 3/15/09 $ 489,534
300,000 AT&T Corp., 8.125%, 1/15/22 310,266
750,000 AirTouch Communications, Inc.,
7.50%, 7/15/06 800,120
1,000,000 AMGEN Inc., 6.50%, 12/1/07 1,014,957
500,000 Anheuser-Busch Cos., Inc.,
6.90%, 10/1/02 502,359
1,000,000 Anheuser-Busch Cos., Inc.,
7.25%, 9/15/15 1,028,771
800,000 Associates Corp. N.A.,
6.00%, 12/1/02 802,190
300,000 Baltimore Gas & Electric,
7.25%, 7/1/02 311,324
1,000,000 Bank One Texas,
6.25%, 2/15/08 995,870
1,500,000 BellSouth Telecommunications,
Inc., 7.50%, 6/15/33 1,531,054
500,000 Borg-Warner Automotive, Inc.,
7.00%, 11/1/06 515,380
1,000,000 Carnival Corp., 6.15%, 4/15/08 981,510
500,000 Citigroup, Inc., 6.20%, 3/15/09 492,631
1,000,000 Commercial Credit Co.,
6.25%, 1/1/08 983,625
500,000 Computer Associates,
6.375%, 4/15/05 483,960
1,000,000 Computer Associates,
6.50%, 4/15/08 955,639
500,000 Consolidated Edison Co.,
6.45%, 12/1/07 511,594
500,000 Donaldson, Lufkin & Jenrette,
Inc., 6.875%, 11/1/05 509,069
500,000 Donaldson, Lufkin & Jenrette,
Inc., 6.50%, 4/1/08 493,649
500,000 Dow Chemical Co.,
6.85%, 8/15/13 499,944
1,000,000 Fleet National Bank,
5.75%, 1/15/09 945,079
750,000 Ford Motor Credit Co.,
6.25%, 12/8/05 743,753
1,000,000 GTE Corp., (MBIA Insured),
6.46%, 4/15/08 1,012,446
CORPORATE BONDS - 59.25% (CONTINUED)
$ 500,000 Household Finance Corp.,
7.30%, 7/30/12 $ 513,510
750,000 Knight-Ridder, Inc.,
6.625%, 11/1/07 756,530
500,000 Loews Corp., 6.75%, 12/15/06 496,055
1,375,000 Martin Marietta Corp.,
7.75%, 4/15/23 1,401,526
1,000,000 McDonald's Corp.,
7.375%, 7/15/33 1,030,945
250,000 Mead Corp., 8.125%, 2/1/23 264,095
350,000 Mellon Financial Co.,
6.875%, 3/1/03 360,785
500,000 Merrill Lynch & Co.,
6.00%, 2/17/09 481,626
1,000,000 Monsanto Co., 6.21%, 2/5/08 1,003,166
1,000,000 J.P. Morgan & Co., Inc.,
6.00%, 1/15/09 957,376
500,000 Nabisco, Inc., 6.00%, 2/15/01 499,396
1,425,000 National Fuel Gas Co.,
6.214%, 8/12/27 1,428,813
500,000 Nationwide Health,
7.90%, 11/20/06 485,172
700,000 Olsten Corp., 7.00%, 3/15/06 664,059
1,000,000 Pacific Bell, 7.50%, 2/1/33 990,466
1,000,000 PaineWebber Group,
6.55%, 4/15/08 979,927
1,000,000 ReliaStar Financial Corp.,
6.50%, 11/15/08 994,657
350,000 Rockwell International Corp.,
8.375%, 2/15/01 365,695
1,500,000 SBC Communications Capital
Corp., 7.25%, 7/15/25 1,502,202
150,000 Security Pacific Corp.,
9.75%, 5/15/99 150,178
300,000 SmithKline Beecham,
6.625%, 10/1/05 305,350
1,000,000 TRW Inc., 6.25%, 1/15/10 961,573
1,000,000 Tribune Co., 5.50%, 10/6/08 944,070
1,000,000 Wells Fargo & Co.,
6.625%, 4/15/13 985,654
-----------
TOTAL CORPORATE BONDS
(COST $36,093,893) 35,437,550
-----------
See Notes to the Financial Statements.
JOHNSONFAMILY FUNDS Semi-Annual Report 1
<PAGE>
SCHEDULES OF INVESTMENTS April 30, 1999 (Unaudited)
Intermediate Fixed Income Fund (continued)
Principal
Amount Value
- --------------------------------------------------------------------------------
CONVERTIBLE CORPORATE BONDS - 0.68%
$ 500,000 Thermo Instrument Systems,
4.00%, 1/15/05
(cost $409,100) $ 405,625
-----------
MUNICIPAL BONDS - 4.37%
500,000 Chicago, Illinois Public Building,
7.00%, 1/1/07 530,950
325,000 Cook County School District,
8.00%, 12/1/06 357,216
500,000 Harris County Sports,
6.75%, 11/15/17 500,000
350,000 Massachusetts State Port Authority,
6.35%, 7/1/07 347,764
500,000 Oakland, California Pension,
6.98%, 12/15/09 516,221
350,000 San Francisco, California,
Series A, 6.95%, 6/15/03 362,991
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TOTAL MUNICIPAL BONDS
(COST $2,604,982) 2,615,142
-----------
U.S. GOVERNMENT AGENCIES - 20.26%
NOTES - 16.05%
500,000 Federal Farm Credit Bureau Note,
5.05%, 11/6/03 484,531
500,000 Federal Home Loan Bank,
6.375%, 10/22/02 501,884
1,000,000 Federal Home Loan Bank,
5.50%, 1/21/03 996,018
500,000 Federal Home Loan Bank,
6.00%, 8/25/04 496,646
500,000 Federal Home Loan Bank,
6.229%, 4/20/05 500,024
500,000 Federal Home Loan Bank,
5.94%, 12/1/05 493,085
1,000,000 Federal Home Loan Bank,
6.15%, 3/3/08 986,924
1,000,000 Federal Home Loan Mortgage
Corp., 6.642%, 3/13/06 1,008,455
NOTES - 16.05% (CONTINUED)
$ 250,000 Federal Home Loan Mortgage
Corp., 7.245%, 4/24/06 $ 256,508
500,000 Federal Home Loan Mortgage
Corp., 7.09%, 11/24/06 502,931
1,000,000 Federal National Mortgage Assoc.,
6.14%, 3/24/03 1,001,157
300,000 Federal National Mortgage Assoc.,
7.25%, 6/1/05 306,651
750,000 Federal National Mortgage Assoc.,
6.85%, 9/12/05 758,280
800,000 Federal National Mortgage Assoc.,
6.65%, 3/8/06 806,609
500,000 Federal National Mortgage Assoc.,
6.29%, 4/23/08 496,818
-----------
9,596,521
-----------
REMICS - 3.35%
424,376 Federal Home Loan Mortgage
Corp., 2044 BD, 6.25%, 3/15/09 423,551
500,000 Federal Home Loan Mortgage
Corp., 2024 C, 6.50%, 11/15/10 501,908
500,000 Federal National Mortgage Assoc.,
97-23PE, 6.00%, 9/25/08 488,227
500,000 Federal National Mortgage Assoc.,
1993-194, 6.50%, 10/25/08 500,430
91,882 Federal National Mortgage Assoc.,
1994-4, 7.00%, 8/25/23 90,966
-----------
2,005,082
-----------
OTHER AGENCY ISSUES - 0.86%
500,000 PRIVATE EXPORT FUNDING CORP.,
6.49%, 7/15/07 516,689
-----------
TOTAL U.S. GOVERNMENT AGENCIES
(COST $12,157,960) 12,118,292
-----------
See Notes to the Financial Statements.
2 JOHNSONFAMILY FUNDS Semi-Annual Report
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SCHEDULES OF INVESTMENTS April 30, 1999 (Unaudited)
Intermediate Fixed Income Fund (continued)
Principal
Amount Value
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 5.81%
$ 3,000,000 U.S. Treasury Bond,
5.625%, 12/31/02 $ 3,035,625
2,000,000 U.S. Treasury Strips, 11/15/24 442,056
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $3,607,154) 3,477,681
-----------
TOTAL BONDS
(COST $54,873,089) 54,054,290
-----------
Number
of Shares Value
- --------------------------------------------------------------------------------
PREFERRED STOCKS - 4.18%
40,000 Great-West Life & Annuity
Capital, 7.25%, 6/30/48 1,000,000
40,000 Tennessee Valley Authority,
6.75%, 6/1/28 1,007,500
20,000 WEC Capital Trust,
6.85%, 3/31/39 490,000
-----------
TOTAL PREFERRED STOCKS
(COST $2,507,500) 2,497,500
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Number
of Shares Value
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 6.14%
2,259,649 SSGA Money Market Fund $ 2,259,649
1,411,038 SSGA U.S. Government Money
Market Fund 1,411,038
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TOTAL SHORT-TERM INVESTMENTS
(COST $3,670,687) 3,670,687
-----------
TOTAL INVESTMENTS - 100.69%
(COST $61,051,276) 60,222,477
Liabilities, less Cash and
Other Assets - (0.69)% (413,759)
-----------
NET ASSETS - 100.00% $59,808,718
===========
See Notes to the Financial Statements.
JOHNSONFAMILY FUNDS Semi-Annual Report 3
<PAGE>
SCHEDULES OF INVESTMENTS April 30, 1999 (Unaudited)
Large Cap Equity Fund
Number
of Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS - 97.81%
AEROSPACE - 1.18%
5,860 Lockheed Martin Corp. $ 252,346
4,800 Northrop Grumman Corp. 306,900
-----------
559,246
-----------
BANKING - 11.69%
12,300 AmSouth Bancorporation 585,019
6,000 Chase Manhattan Corp. 496,500
900 Comerica, Inc. 58,556
6,600 J.P. Morgan & Co., Inc. 889,350
13,800 Mellon Bank Corp. 1,025,512
18,200 PNC Bank Corp. 1,053,325
23,400 Summit Bancorp. 991,575
12,500 UnionBanCal Corporation 426,563
-----------
5,526,400
-----------
CHEMICALS - 2.53%
9,100 Dow Chemical Co. 1,193,806
-----------
CONSUMER DURABLES - 4.02%
17,300 Ford Motor Co. 1,106,119
22,100 ITT Industries, Inc. 795,600
-----------
1,901,719
-----------
CONSUMER STAPLES - 7.94%
20,600 American Stores Co. 650,187
9,100 Brown-Forman Corp., Class B 670,556
7,140 ConAgra, Inc. 177,608
13,144 Interstate Bakeries Corp. 292,454
21,400 Rite Aid Corporation 498,888
3,400 Sara Lee Corp. 75,650
44,300 Supervalu, Inc. 924,763
7,100 Unilever NV-NY Shares 461,056
-----------
3,751,162
-----------
ENERGY - 7.84%
13,900 Atlantic Richfield Co. 1,166,731
19,200 Phillips Petroleum Company 972,000
10,000 Sunoco, Inc. 357,500
ENERGY - 7.84% (CONTINUED)
14,000 Unocal Corporation $ 581,875
20,000 USX-Marathon Group 625,000
-----------
3,703,106
-----------
HEALTH CARE - 10.10%
20,200 AMGEN Inc. 1,241,037
18,200 Becton Dickinson & Co. 676,813
6,600 Bristol-Myers Squibb Co. 419,513
13,400 Merck & Co., Inc. 941,350
15,700 Watson Pharmaceuticals, Inc.* 635,850
12,200 Wellpoint Health
Networks, Inc.* 857,050
-----------
4,771,613
-----------
INDUSTRIALS - 9.24%
3,000 FMC Corp.* 195,000
17,700 Harris Corp. 611,756
25,400 Harsco Corp. 833,437
15,000 Johnson Controls, Inc. 1,092,188
11,600 Raytheon Co., Class B 814,900
15,900 Rockwell International Corp. 820,838
-----------
4,368,119
-----------
INSURANCE - 7.02%
25,000 Allstate Corporation (The) 909,375
13,700 Ambac Financial Group, Inc. 827,137
36,650 Old Republic International Corp. 716,966
23,500 ReliaStar Financial Corp. 863,625
-----------
3,317,103
-----------
INVESTMENT COMPANIES - 1.56%
21,000 A.G. Edwards, Inc. 735,000
-----------
RETAIL - 4.75%
22,900 Sears, Roebuck & Co. 1,053,400
23,100 VF Corp. 1,189,650
-----------
2,243,050
-----------
SERVICES - 8.49%
17,000 Deluxe Corporation 588,625
25,700 Dun & Bradstreet Corp. 944,475
See Notes to the Financial Statements.
4 JOHNSONFAMILY FUNDS Semi-Annual Report
<PAGE>
SCHEDULES OF INVESTMENTS April 30, 1999 (Unaudited)
Large Cap Equity Fund (continued)
Number
of Shares Value
- --------------------------------------------------------------------------------
SERVICES - 8.49% (CONTINUED)
21,700 King World Productions, Inc.* $ 764,925
19,000 R.R. Donnelley & Sons
Company 672,125
20,000 SABRE Group Holdings, Inc.
(The)* 1,042,500
-----------
4,012,650
-----------
TECHNOLOGY - 9.99%
16,300 Compaq Computer Corp. 363,694
14,950 Computer Associates
International, Inc. 638,178
13,600 Dell Computer Corp.* 560,150
11,200 EMC Corp.* 1,220,100
3,800 National Semiconductor Corp.* 47,500
24,000 Oracle Corporation* 649,500
20,800 Sun Microsystems, Inc.* 1,244,100
-----------
4,723,222
-----------
TELECOMMUNICATIONS - 8.75%
17,518 Bell Atlantic Corp. 1,009,475
5,800 ComSat Corp. 188,500
4,500 Frontier Corp. 248,343
10,100 GTE Corp. 676,069
175 SBC Communications Inc. 9,800
12,800 Sprint Corporation 1,312,800
13,200 US WEST, Inc. 690,525
-----------
4,135,512
-----------
UTILITIES - 2.71%
17,000 DTE Energy Co. 693,812
15,100 Pinnacle West Capital Corp. 586,069
-----------
1,279,881
TOTAL COMMON STOCKS
(cost $39,551,918) 46,221,589
-----------
Number
of Shares Value
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 3.71%
1,254,448 SSGA Money Market Fund $1,254,448
500,000 SSGA U.S. Government Money
Market Fund 500,000
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $1,754,448) 1,754,448
-----------
TOTAL INVESTMENTS - 101.52%
(cost $41,306,366) 47,976,037
Liabilities, less Cash and
Other Assets (1.52)% (717,698)
-----------
NET ASSETS - 100% $47,258,339
===========
* Non-income producing security
See Notes to the Financial Statements.
JOHNSONFAMILY FUNDS Semi-Annual Report 5
<PAGE>
SCHEDULES OF INVESTMENTS April 30, 1999 (Unaudited)
Small Cap Equity Fund
Number
of Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS - 99.12%
AEROSPACE - 2.00%
12,800 Cordant Technologies, Inc. $ 590,400
-----------
BANKING - 8.86%
8,375 Associated Banc-Corp 304,641
16,400 Chittenden Corporation 471,500
39,200 Colonial BancGroup, Inc. 485,100
7,350 Commerce Bancshares, Inc. 300,891
9,800 F.N.B. Corporation 241,325
13,700 Riggs National Corporation 231,187
5,000 SierraWest Bancorp 160,312
10,000 UMB Financial Corporation 415,625
-----------
2,610,581
-----------
BUILDING PRODUCTS - 2.48%
12,400 Centex Construction
Products, Inc. 438,650
9,500 Texas Industries, Inc. 293,313
-----------
731,963
-----------
CAPITAL GOODS - 4.67%
21,100 Commercial Intertech Corp. 270,344
24,900 Milacron Inc. 572,700
24,700 Regal-Beloit Corporation 534,137
-----------
1,377,181
-----------
CHEMICALS - 3.60%
12,400 Dexter Corporation (The) 509,175
19,900 Ferro Corporation 550,981
-----------
1,060,156
-----------
CONSUMER DURABLES - 6.79%
18,000 A.O. Smith Corporation 454,500
13,000 Arvin Industries, Inc. 476,125
8,341 Dura Automotive Systems, Inc.* 238,761
7,400 Mohawk Industries, Inc.* 238,650
8,000 Navistar International
Corporation* 418,500
6,000 Skyline Corp. 175,875
-----------
2,002,411
-----------
Number
of Shares Value
- --------------------------------------------------------------------------------
CONSUMER STAPLES - 4.12%
8,200 Adolph Coors Company,
Class B $ 438,700
2,266 Block Drug Co., Inc., Class A 79,593
11,800 Longs Drug Stores Corp. 405,625
15,800 Ralcorp Holdings, Inc.* 290,325
-----------
1,214,243
-----------
ENERGY - 5.91%
11,200 Murphy Oil Corporation 525,700
56,000 Ocean Energy Inc.* 521,500
18,800 Questar Corp. 341,925
15,800 Valero Energy Corp. 352,538
-----------
1,741,663
-----------
HEALTH CARE - 7.04%
25,000 ADAC Laboratories* 181,250
17,100 Arrow International, Inc. 384,750
3,400 CorVel Corp.* 119,850
15,700 Datascope Corp.* 446,469
16,000 DENTSPLY International Inc. 419,000
11,400 Empi, Inc.* 255,075
8,100 West Pharmaceutical
Services, Inc. 267,806
-----------
2,074,200
-----------
INDUSTRIALS - 10.71%
22,900 AMETEK, Inc. 522,406
16,600 Barnes Group Inc. 349,638
10,800 Blount International, Inc.,
Class A 301,050
15,000 CLARCOR Inc. 281,250
9,600 CTS Corporation 512,400
10,100 Pentair, Inc. 474,700
8,900 Pittston Brink's Group 234,738
13,800 Trinity Industries, Inc. 480,412
-----------
3,156,594
-----------
See Notes to the Financial Statements.
6 JOHNSONFAMILY FUNDS Semi-Annual Report
<PAGE>
SCHEDULES OF INVESTMENTS April 30, 1999 (Unaudited)
Small Cap Equity Fund (continued)
Number
of Shares Value
- --------------------------------------------------------------------------------
INSURANCE - 6.07%
1,600 American National
Insurance Co. $ 111,000
23,200 Capital Re Corp. 453,850
9,298 Delphi Financial Group, Inc.,
Class A* 289,400
7,000 Everest Reinsurance
Holdings, Inc. 212,188
8,300 NAC Re Corp. 452,350
14,300 PXRE Corp. 271,700
-----------
1,790,488
-----------
MANUFACTURING - 1.48%
10,000 SPS Technologies, Inc.* 436,250
-----------
RETAIL - 7.07%
18,400 Brown Group, Inc. 300,150
12,800 Guilford Mills, Inc. 121,600
10,900 Lands' End, Inc.* 416,925
50,400 Pier 1 Imports, Inc. 371,700
8,400 Ross Stores, Inc. 385,875
14,200 ShopKo Stores, Inc.* 487,237
-----------
2,083,487
-----------
SERVICES - 10.63%
25,700 Aaron Rents, Inc. 427,263
41,700 Arctic Cat, Inc. 359,662
44,200 Buffets, Inc.* 442,000
23,000 Computer Task Group,
Incorporated 428,375
27,600 Huffy Corp. 367,425
15,300 Ogden Corp. 394,931
18,500 Standard Motor Products, Inc. 430,125
16,200 UniFirst Corporation 282,488
-----------
3,132,269
-----------
TECHNOLOGY - 9.91%
6,700 Andrew Corp.* 93,381
15,200 BARRA, Inc.* 297,350
7,357 BMC Software, Inc.* 316,811
Number
of Shares Value
- --------------------------------------------------------------------------------
TECHNOLOGY - 9.91% (CONTINUED)
7,600 Communications Systems, Inc. $ 93,100
9,400 Dallas Semiconductor Corp. 399,500
22,300 DSP Group, Inc.* 404,187
8,000 National Instruments Corp.* 272,000
6,900 Novellus Systems, Inc.* 326,025
10,800 Progress Software Corporation* 245,700
21,100 Xircom, Inc.* 474,750
-----------
2,922,804
-----------
TELECOMMUNICATIONS - 2.18%
14,500 Aliant Communications, Inc. 641,625
-----------
TRANSPORTATION - 1.37%
13,100 Avondale Industries, Inc.* 403,644
-----------
UTILITIES - 4.23%
8,600 BEC Energy 365,500
11,700 Eastern Enterprises 420,469
14,800 TNP Enterprises, Inc. 462,500
-----------
1,248,469
-----------
TOTAL COMMON STOCKS
(cost $31,097,005) 29,218,428
-----------
SHORT-TERM INVESTMENTS - 0.83%
123,826 SSGA Money Market Fund 123,826
122,438 SSGA U.S. Government
Money Market Fund 122,438
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $246,264) 246,264
-----------
TOTAL INVESTMENTS - 99.95%
(COST $31,343,269) 29,464,692
Cash and Other Assets,
less Liabilities - 0.05% 14,019
-----------
NET ASSETS - 100.00% $29,478,711
===========
* Non-income producing security
See Notes to the Financial Statements.
JOHNSONFAMILY FUNDS Semi-Annual Report 7
<PAGE>
SCHEDULES OF INVESTMENTS April 30, 1999 (Unaudited)
International Equity Fund
Number
of Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS - 92.97%
Argentina - 0.46%
29,300 Telefonica de Argentina S.A. -
Class B $ 108,160
-----------
AUSTRALIA - 6.66%
38,100 Coles Myer Ltd. 202,734
55,000 CSR Ltd. 147,260
16,200 National Australia Bank 315,862
29,100 Rothmans Holdings Ltd. 268,069
40,000 Santos Limited 137,849
34,200 Westpac Banking Corporation
Ltd. 261,469
94,083 Westralian Sands Limited 210,750
-----------
1,543,993
-----------
AUSTRIA - 0.84%
1,300 EVN AG 194,312
-----------
BELGIUM - 3.03%
800 Electrabel SA 264,156
2,000 G.I.B. Group SA 76,682
600 PetroFina SA 363,098
-----------
703,936
-----------
BRAZIL - 1.08%
9,100,000 Companhia Brasileira de
Petroleo Ipiranga - Preferred 63,629
4,900 Companhia Vale do Rio Doce -
Preferred A 94,219
1,000,000 Telecomunicacoes Brasileiras
S.A.- Preferred Receipts* 92,821
-----------
250,669
-----------
CANADA - 3.32%
2,800 Alberta Energy Company Ltd. $ 82,675
1,300 Alcan Aluminum Ltd. 41,063
1,500 BCE, Inc. 68,496
408 BCT.Telus Communications
Inc. - Class A 10,058
1,224 BCT.Telus Communications Inc. 30,510
3,126 Boliden Limited* 5,947
Number
of Shares Value
- --------------------------------------------------------------------------------
CANADA - 3.32% (CONTINUED)
2,200 Canadian Imperial Bank
of Commerce $ 56,651
1,300 Canadian Pacific Ltd. 29,369
2,000 Imasco Ltd. 44,084
4,200 Imperial Oil Ltd. 87,242
500 Magna International,
Inc. - Class A 29,784
5,500 National Bank of Canada 88,752
800 Northern Telecom Ltd. 54,384
1,900 Quebecor, Inc. - Class A 45,207
1,800 The Toronto-Dominion Bank 96,223
-----------
770,445
-----------
DENMARK - 3.72%
2,000 A/S Forsikringsselskabet
Codan 198,900
1,900 Den Danske Bank Group 219,275
2,700 Tele Danmark A.S. - Class B 278,902
2,400 Unidanmark A.S. - Class A 165,161
-----------
862,238
-----------
FINLAND - 3.60%
10,400 Enso Oyj 121,583
1,600 Huhtamaki Oyj 57,554
13,800 Kemira Oyj 89,790
3,200 Nokia Oyj - Class A 246,974
6,000 Orion-Yhtymae OY - Class B 120,609
6,300 Rauma Oyj 84,649
9,300 Valmet Oyj 114,135
-----------
835,294
-----------
FRANCE - 6.09%
1,100 Cap Gemini SA 168,398
1,600 Elf Aquitaine 248,836
400 Eridania Beghin-Say SA 55,565
200 L'Oreal 128,227
1,800 Pernod Ricard 121,593
100 Sagem SA 56,073
3,300 Scor 164,791
700 Societe Generale - A 125,455
1,400 Union des Assurances Federales 156,115
12,100 Usinor SA 187,414
-----------
1,412,467
-----------
See Notes to the Financial Statements.
8 JOHNSONFAMILY FUNDS Semi-Annual Report
<PAGE>
SCHEDULES OF INVESTMENTS April 30, 1999 (Unaudited)
International Equity Fund (continued)
Number
of Shares Value
- --------------------------------------------------------------------------------
GERMANY - 5.44%
3,000 BASF AG $ 131,559
3,700 Commerzbank AG 119,784
9,300 Deutsche Telekom AG 367,002
300 Dyckerhoff AG 80,935
3,000 Gehe AG 138,066
3,600 Merck KGaA 121,879
200 SAP AG 64,113
1,500 Schering AG 173,376
100 Wella AG 64,537
-----------
1,261,251
-----------
GREECE - 0.46%
4,555 Hellenic Telecommunication
Organization SA 105,951
-----------
HONG KONG - 3.16%
62,000 Hong Kong Telecommunications
Ltd. 166,796
5,600 HSBC Holdings PLC 208,098
64,000 Johnson Electric Holdings Ltd. 191,169
67,000 New World Development
Company Ltd. 165,983
-----------
732,046
-----------
ITALY - 0.65%
41,000 Benetton Group SpA 73,741
22,900 Fiat SpA 76,802
-----------
150,543
-----------
JAPAN - 8.41%
5,000 Canon, Inc. 122,318
4,000 Dai Nippon Printing
Company Ltd. 63,404
5,100 Daito Trust Construction
Co. Ltd. 59,989
3,000 Fuji Photo Film 113,353
8,000 Fujisawa Pharmaceutical
Co. Ltd. 131,366
22,000 Mitsubishi Heavy Industries Ltd. 96,396
Number
of Shares Value
- --------------------------------------------------------------------------------
JAPAN - 8.41% (CONTINUED)
6,000 NEC Corporation $ 71,681
6,000 Nippon Express Co. Ltd. 39,209
17 Nippon Telegraph &
Telephone Corp. 185,152
4,000 Sankyo Co. Ltd. 83,947
5,000 Shiseido Company Ltd. 78,752
10,000 Suzuki Motor Corp. 142,425
16,000 Takara Standard Co. Ltd. 116,755
1,000 TDK Corp. 75,653
5,000 Toho Bank Ltd. 17,803
700 Toho Co. Ltd. 99,169
10,000 Tonen Corp. 60,070
12,000 Toyo Suisan Kaisha, Ltd. 99,530
10,000 Wacoal Corp. 108,075
13,000 Yakult Honsha Co. Ltd. 121,765
2,000 Yamanouchi Pharmaceutical
Co. Ltd. 63,337
-----------
1,950,149
-----------
MALAYSIA - 0.80%
96,000 Golden Hope Plantations Bhd 65,888
110,000 Highlands & Lowlands Bhd 63,222
50,000 Kuala Lumpur Kepong Bhd 55,791
-----------
184,901
-----------
MEXICO - 1.78%
31,000 Carso Global Telecom 150,140
26,000 Cemexa SA de CV * 120,999
780 Cemexa SA de CV - CPO * 3,630
31,000 Organizacion Soriana SA de CV 139,572
-----------
414,341
-----------
NETHERLANDS - 7.19%
9,400 ABN AMRO Holding NV 224,259
1,200 DSM NV 116,102
7,292 Fortis Amev NV 259,988
3,425 ING Group NV 211,254
5,200 KPN NV 217,309
1,600 Phillips Electronics NV 137,960
5,000 Royal Dutch Petroleum Co. 291,473
4,900 Stork NV 104,719
4,800 Telegraaf Holdings MIJ - CVA 104,613
-----------
1,667,677
-----------
See Notes to the Financial Statements.
JOHNSONFAMILY FUNDS Semi-Annual Report 9
<PAGE>
SCHEDULES OF INVESTMENTS April 30, 1999 (Unaudited)
International Equity Fund (continued)
Number
of Shares Value
- --------------------------------------------------------------------------------
NEW ZEALAND - 0.92%
40,800 Telecom Corporation of
New Zealand Ltd. $ 212,322
-----------
NORWAY - 2.08%
35,200 Christiania Bank Og Kreditkasse 135,623
53,400 Den Norske Bank ASA 193,401
4,300 Norske Skogindustrier ASA 154,078
-----------
483,102
-----------
PORTUGAL - 0.36%
2,000 Portugal Telecom SA 83,474
-----------
SINGAPORE - 3.01%
24,000 City Developments Ltd. 160,142
6,200 Creative Technology Ltd.* 77,980
13,000 Development Bank of
Singapore Ltd. 138,175
23,000 Overseas Union Bank Ltd. 118,158
22,000 Singapore Airlines Ltd. 202,657
-----------
697,112
-----------
SOUTH AFRICA - 0.66%
2,970 Anglo American Corporation
of South Africa Limited 152,969
-----------
SPAIN - 2.24%
9,500 Iberdrola SA 133,173
8,254 Telefonica SA 387,288
-----------
520,461
-----------
SWEDEN - 1.69%
4,100 Mo och Domsjo AB - Class B 105,781
21,000 Nordbanken Holding AB 132,330
8,000 Trelleborg AB - Class B 74,190
3,000 Volvo AB - Class B 79,362
-----------
391,663
-----------
Number
of Shares Value
- --------------------------------------------------------------------------------
SWITZERLAND - 5.34%
100 Compagnie Financiere
Richemont AG $ 170,378
200 Hilti AG 141,609
100 Nestle SA 185,419
200 Novartis AG 293,333
100 Schweizerische
Rueckversicherungs-Gesellschaft 219,245
300 SGS Societe Generale
de Surveillance Holding SA 67,192
600 The Swatch Group AG-REG 91,428
300 Valora Holding AG 70,148
-----------
1,238,752
-----------
TURKEY - 0.70%
7,137,000 Petkim Petrokimya
Holdings A.S. 123,942
3,052,280 Tofas Turk Otomobil
Fabrika A.S. 39,365
-----------
163,307
-----------
UNITED KINGDOM - 19.28%
15,100 Allied Domecq PLC 118,155
5,350 Allied Zurich PLC* 73,131
4,500 AstraZeneca Group PLC 176,276
10,200 Barclays PLC 324,180
7,900 Boots Company PLC 104,617
14,400 British Aerospace PLC 107,809
7,600 British Airways PLC 60,264
5,350 British American Tobacco PLC 44,921
46,500 British Steel PLC 110,616
17,000 British Telecommunications PLC 285,751
9,001 CGU PLC 142,238
7,000 Great Universal Stores PLC 80,414
24,000 Guardian Royal Exchange PLC 147,996
13,000 Hays PLC 144,631
9,200 HSBC Holdings PLC 350,906
7,000 Johnson Matthey PLC 65,931
13,200 Kingfisher PLC 197,649
26,100 Ladbroke Group PLC 127,222
9,900 Lonmin PLC 82,407
See Notes to the Financial Statements.
10 JOHNSONFAMILY FUNDS Semi-Annual Report
<PAGE>
SCHEDULES OF INVESTMENTS April 30, 1999 (Unaudited)
International Equity Fund (continued)
Number
of Shares Value
- --------------------------------------------------------------------------------
UNITED KINGDOM - 19.28% (CONTINUED)
9,900 Lonrho Africa PLC $ 7,890
11,800 PowerGen PLC 129,570
18,800 Racal Electronics PLC 129,853
16,800 Shell Transport & Trading Co. 125,912
36,100 Smith (David S.) Holdings 77,884
15,300 SmithKline Beecham PLC 202,489
17,400 Tate & Lyle PLC 119,833
9,808 Thames Water PLC 136,126
16,200 Unilever PLC 143,716
49,800 Woolwich PLC 318,516
20,600 WPP Group PLC 182,087
21,900 Yorkshire Water PLC 152,676
-----------
4,471,666
-----------
TOTAL COMMON STOCKS
(cost $21,285,397) 21,563,201
-----------
UNSECURED NOTES - 0.23%
AUSTRALIA
143,500 RGC Gold Unsecured Notes 53,396
-----------
TOTAL UNSECURED NOTES
(cost $51,073) 53,396
-----------
SHORT-TERM INVESTMENTS - 6.27%
366,059 SSGA Money Market Fund 366,059
1,089,245 SSGA U.S. Government
Money Market Fund 1,089,245
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $1,455,304) 1,455,304
-----------
TOTAL INVESTMENTS - 99.47%
(cost $22,791,774) 23,071,901
Cash and Other Assets,
less Liabilities - 0.53% 122,167
-----------
NET ASSETS - 100.00% $23,194,068
===========
* Non-income producing security
As of April 30, 1999, the International Equity Fund's investments, excluding
short-term investments, were diversified as follows:
INDUSTRY SECTOR
Consumer Durables 3.30%
Consumer Staples 9.50
Energy Sources 7.00
Financial Services 24.80
Health Care Products 6.40
Industrial 19.60
Retail 5.50
Services 4.30
Technology 4.20
Telecommunications 11.50
Utilities 3.90
-------
TOTAL INDUSTRY SECTOR 100.00%
=======
See Notes to the Financial Statements.
JOHNSONFAMILY FUNDS Semi-Annual Report 11
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
INTERMEDIATE LARGE CAP SMALL CAP INTERNATIONAL
FIXED INCOME FUND EQUITY FUND EQUITY FUND EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $61,051,276,
$41,306,366, $31,343,269 and
$22,791,774, respectively) $ 60,222,477 $ 47,976,037 $ 29,464,692 $ 23,071,901
Dividends, interest and tax withholding receivable 867,292 75,280 24,024 139,732
Organizational expenses, net
of accumulated amortization 22,880 22,880 22,880 22,880
Prepaids and other assets 10,658 12,781 10,821 9,665
------------- ------------- ------------- -------------
Total Assets 61,123,307 48,086,978 29,522,417 23,244,178
------------- ------------- ------------- -------------
LIABILITIES:
Payable for investments purchased 1,000,000 658,275 -- 4,485
Payable for fund shares redeemed -- 104,744 -- --
Dividend payable 259,348 -- -- --
Accrued investment advisory fees 11,859 28,943 17,558 17,811
Accrued distribution fees 18,987 16,389 10,577 7,460
Other liabilities 24,395 20,288 15,571 20,354
------------- ------------- ------------- -------------
Total Liabilities 1,314,589 828,639 43,706 50,110
------------- ------------- ------------- -------------
NET ASSETS $ 59,808,718 $ 47,258,339 $ 29,478,711 $ 23,194,068
============= ============= ============= =============
NET ASSETS CONSIST OF:
Capital stock $ 605 $ 450 $ 353 $ 228
Paid-in capital 60,339,034 39,069,424 33,163,830 22,758,984
Undistributed net investment income 9,930 38,567 28,755 129,987
Accumulated net realized gain (loss)
on investments 287,948 1,480,227 (1,835,650) 50,191
Accumulated net realized loss from foreign
currency transactions -- -- -- (24,690)
Net unrealized appreciation (depreciation)
on investments (828,799) 6,669,671 (1,878,577) 681,910
Net unrealized depreciation on translation of
assets and liabilities in foreign currencies -- -- -- (402,542)
------------- ------------- ------------- -------------
Net Assets $ 59,808,718 $ 47,258,339 $ 29,478,711 $ 23,194,068
============= ============= ============= =============
CAPITAL STOCK, $0.0001 PAR VALUE
Authorized 100,000,000 100,000,000 100,000,000 100,000,000
Issued and outstanding 6,046,386 4,504,524 3,527,349 2,278,157
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE $ 9.89 $ 10.49 $ 8.36 $ 10.18
============= ============= ============= =============
MAXIMUM OFFERING PRICE PER SHARE $ 10.17 $ 10.93 $ 8.71 $ 10.60
============= ============= ============= =============
</TABLE>
See Notes to the Financial Statements.
12 JOHNSONFAMILY FUNDS Semi-Annual Report
<PAGE>
STATEMENTS OF OPERATIONS for the six months ended April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
INTERMEDIATE LARGE CAP SMALL CAP INTERNATIONAL
FIXED INCOME FUND EQUITY FUND EQUITY FUND EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of withholding taxes of
$0, $0, $0 and $38,157, respectively) $ -- $ 393,437 $ 202,916 $ 291,845
Interest 1,919,904 32,157 31,426 29,094
----------- ----------- ----------- -----------
Total Investment Income 1,919,904 425,594 234,342 320,939
----------- ----------- ----------- -----------
EXPENSES:
Investment advisory fees 139,908 166,343 98,528 93,700
Distribution fees 64,422 47,601 28,778 21,992
Administration and fund accounting fees 62,181 44,358 26,274 20,822
Legal fees 16,022 9,046 6,937 6,754
Transfer agent fees and expenses 9,350 9,269 8,270 8,552
Miscellaneous 7,700 4,787 2,531 2,451
Custody fees 7,160 5,046 4,202 15,728
Pricing expenses 5,731 1,498 1,647 13,269
Directors' fees and expenses 4,758 4,758 4,777 4,730
Audit fees 2,922 2,210 1,685 1,628
Amortization of organizational costs 2,896 2,896 2,896 2,896
Federal and state registration fees 2,363 3,440 3,523 2,126
----------- ----------- ----------- -----------
Total Expenses Before Waivers 325,413 301,252 190,048 194,648
Waiver of expenses (61,143) -- -- (2,102)
----------- ----------- ----------- -----------
Net Expenses 264,270 301,252 190,048 192,546
----------- ----------- ----------- -----------
NET INVESTMENT INCOME 1,655,634 124,342 44,294 128,393
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments 287,951 1,480,230 (1,480,055) 50,191
Net realized loss on foreign currency transactions -- -- -- (22,004)
Net change in unrealized appreciation
(depreciation) on investments (2,568,650) 2,714,385 1,904,006 3,960,491
Net change in unrealized depreciation on
translation of assets and liabilities
in foreign currencies -- -- -- (1,222,281)
----------- ----------- ----------- -----------
Net gain (loss) on investments and
foreign currency transactions (2,280,699) 4,194,615 423,951 2,766,397
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ (625,065) $ 4,318,957 $ 468,245 $ 2,894,790
=========== =========== =========== ===========
</TABLE>
See Notes to the Financial Statements.
JOHNSONFAMILY FUNDS Semi-Annual Report 13
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE LARGE CAP
FIXED INCOME FUND EQUITY FUND
------------------------------------ -------------------------------------
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1999 OCTOBER 31, 1998(1) APRIL 30, 1999 OCTOBER 31, 1998(1)
(UNAUDITED) (UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 1,655,634 $ 2,046,256 $ 124,342 $ 127,415
Net realized gain (loss) on investments 287,951 38,624 1,480,230 295,452
Net realized loss on foreign
currency transactions -- -- -- --
Change in unrealized appreciation
(depreciation) on investments (2,568,650) 1,640,755 2,714,385 (2,106,481)
Change in unrealized appreciation on translation
of assets and liabilities in foreign currencies -- -- -- --
------------ ------------ ------------ ------------
Net Increase (Decrease) in Net Assets
Resulting from Operations (625,065) 3,725,635 4,318,957 (1,683,614)
------------ ------------ ------------ ------------
DISTRIBUTIONS PAID FROM: 1,668,617 (2,027,129) 119,424 (97,237)
Net investment income 1,668,617 (2,027,129) 119,424 (97,237)
Net realized gains 38,627 -- 295,455 --
------------ ------------ ------------ ------------
1,707,244 (2,027,129) 414,879 (97,237)
SHARE TRANSACTIONS:
Shares sold 7,135,465 29,847,907 8,623,214 21,512,846
Shares sold during common and
commingled trust fund conversions -- 40,058,886 -- 23,721,464
Proceeds from reinvestment of distributions 926,152 933,300 231,418 50,640
Shares redeemed (13,970,228) (4,538,961) (6,433,359) (2,619,111)
------------ ------------ ------------ ------------
Net Increase (Decrease) from Share Transactions (5,908,611) 66,301,132 2,421,273 42,665,839
------------ ------------ ------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (8,240,920) 67,999,638 6,325,351 40,884,988
NET ASSETS:
Beginning of period 68,049,638 50,000 40,932,988 48,000
------------ ------------ ------------ ------------
End of period $ 59,808,718 $ 68,049,638 $ 47,258,339 $ 40,932,988
============ ============ ============ ============
Undistributed net investment income
included in net assets at end of period $ 9,930 $ 21,661 $ 38,567 $ 32,397
============ ============ ============ ============
</TABLE>
(1)Commenced operations on March 31, 1998.
See Notes to the Financial Statements.
14 JOHNSONFAMILY FUNDS Semi-Annual Report
<PAGE>
SMALL CAP INTERNATIONAL
EQUITY FUND EQUITY FUND
- --------------------------------------- -------------------------------------
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1999 OCTOBER 31, 1998(1) APRIL 30, 1999 OCTOBER 31, 1998(1)
(UNAUDITED) (UNAUDITED)
- --------------------------------------------------------------------------------
$ 44,294 $ 4,365 $ 128,393 $ 217,156
(1,480,055) (355,595) 50,191 1,926
-- -- (22,004) (27,945)
1,904,006 (3,782,583) 3,960,491 (3,278,581)
-- -- (1,222,281) 819,739
- ------------ ------------ ------------ ------------
468,245 (4,133,813) 2,894,790 (2,267,705)
- ------------ ------------ ------------ ------------
23,144 -- 193,724 --
-- -- 1,640 --
- ------------ ------------ ------------ ------------
23,144 -- 195,364 --
8,343,869 28,599,992 3,411,868 23,895,804
- - - -
16,934 -- 124,825 --
(2,158,528) (1,635,844) (2,900,020) (1,771,130)
- ------------ ------------ ------------ ------------
6,202,275 26,964,148 636,673 22,124,674
- ------------ ------------ ------------ ------------
6,647,376 22,830,335 3,336,099 19,856,969
22,831,335 1,000 19,857,969 1,000
- ------------ ------------ ------------ ------------
$ 29,478,711 $ 22,831,335 $ 23,194,068 $ 19,857,969
============ ============ ============ ============
$ 28,755 $ 6,353 $ 129,987 $ 191,380
============ ============ ============ ============
JOHNSONFAMILY FUNDS Semi-Annual Report 15
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE LARGE CAP
FIXED INCOME FUND EQUITY FUND
------------------------------------- -------------------------------------
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1999 OCTOBER 31, 1998(1) APRIL 30, 1999 OCTOBER 31, 1998(1)
(UNAUDITED) (UNAUDITED)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.27 $ 10.00 $ 9.59 $ 10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.27 0.31 0.03 0.03
Net realized and unrealized gain (loss)
on investments and foreign currency transactions (0.37) 0.27 0.97 (0.42)
---------- ---------- ---------- ----------
Total from Investment Operations (0.10) 0.58 1.00 (0.39)
---------- ---------- ---------- ----------
LESS DISTRIBUTIONS PAID:
From net investment income (0.27) (0.31) (0.03) (0.02)
From capital gains (0.01) -- (0.07) --
---------- ---------- ---------- ----------
Total Distribution Paid (0.28) (0.31) (0.10) (0.02)
---------- ---------- ---------- ----------
NET ASSET VALUE, END OF PERIOD $ 9.89 $ 10.27 $ 10.49 $ 9.59
========== ========== ========== ==========
TOTAL RETURN(2) (1.03)% 5.89% 10.41% (3.87)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $ 59,809 $ 68,050 $ 47,258 $ 40,933
Ratio of expenses to average net assets,
net of waivers(3) 0.85% 0.85% 1.36% 1.45%
Ratio of net investment income to
average net assets, net of waivers(3) 5.33% 5.32% 0.56% 0.55%
Ratio of expenses to average net assets,
before waivers(3) 1.05% 1.11% 1.36% 1.45%
Ratio of net investment income to average net
assets, before waivers(3) 5.13% 5.06% 0.56% 0.55%
Portfolio turnover rate(2) 42% 47% 24% 27%
</TABLE>
(1)Commenced operations on March 31, 1998.
(2)Not annualized
(3)Annualized
See Notes to the Financial Statements.
16 JOHNSONFAMILY FUNDS Semi-Annual Report
<PAGE>
SMALL CAP INTERNATIONAL
EQUITY FUND EQUITY FUND
- -------------------------------------- ----------------------------------------
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1999 OCTOBER 31, 1998(1) APRIL 30, 1999 OCTOBER 31, 1998(1)
(UNAUDITED) (UNAUDITED)
- --------------------------------------------------------------------------------
$ 8.22 $ 10.00 $ 8.97 $ 10.00
0.02 -- 0.06 0.09
0.13 (1.78) 1.24 (1.12)
---------- ---------- ---------- ----------
0.15 (1.78) 1.30 (1.03)
---------- ---------- ---------- ----------
(0.01) -- (0.09) --
-- -- -- --
---------- ---------- ---------- ----------
(0.01) -- (0.09) --
$ 8.36 $ 8.22 $ 10.18 $ 8.97
========== ========== ========== ==========
1.79% (17.80)% 14.59% (10.30)%
$ 29,479 $ 22,831 $ 23,194 $ 19,858
1.45% 1.50% 1.85% 1.85%
0.34% 0.03% 1.23% 1.85%
1.45% 1.57% 1.87% 1.96%
0.34% (0.04)% 1.21% 1.74%
29% 3% 3% 6%
JOHNSONFAMILY FUNDS Semi-Annual Report 17
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS April 30, 1999 (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, 1999, 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 Fund for Income and the Johnson Heritage Income Fund were
transferred to the JohnsonFamily Intermediate Fixed Income Fund and 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 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 Changes in Net Assets for the period ended
October 31, 1998 does not reflect the $99,096 and $6,061,767 unrealized
appreciation for the Intermediate Fixed Income Fund and Large Cap Equity Fund,
respectively, that existed at the date of the common and commingled trust funds
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 than 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. 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.
18 JOHNSONFAMILY FUNDS Semi-Annual Report
<PAGE>
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,
1999, the International Equity Fund has no such contracts outstanding.
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 principles.
Accordingly, at April 30, 1999, reclassifications were recorded to increase
undistributed net investment income by $1,252 and decrease paid-in-capital by
$1,252 for each Fund.
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. Corporate actions for foreign
securities are recorded as soon as the information is available to the Funds.
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 principals 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.
JOHNSONFAMILY FUNDS Semi-Annual Report 19
<PAGE>
3. Capital Stock
<TABLE>
<CAPTION>
Transactions in shares of capital stock were as follows:
FOR THE PERIOD NOVEMBER 1, 1998 TO APRIL 30, 1999
INTERMEDIATE LARGE CAP SMALL CAP INTERNATIONAL
FIXED INCOME FUND EQUITY FUND EQUITY FUND EQUITY FUND---
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 705,622 849,785 1,008,121 356,205
Shares issued to holders in reinvestment
of dividends 91,462 22,591 1,990 13,057
Shares redeemed (1,375,825) (634,309) (261,326) (306,056)
----------- ----------- ----------- -----------
Net increase (decrease) (578,741) 238,067 748,785 63,206
=========== =========== =========== ===========
<CAPTION>
FOR THE PERIOD MARCH 31, 1998(1) TO OCTOBER 31, 1998
INTERMEDIATE LARGE CAP SMALL CAP INTERNATIONAL
FIXED INCOME FUND EQUITY FUND EQUITY FUND EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 2,768,369 2,159,747 2,966,300 2,409,981
Shares sold during common and commingled
trust fund conversions 4,205,889 2,372,146 -- --
Shares issued to holders in reinvestment
of dividends 92,087 5,366 -- --
Shares redeemed (446,218) (275,602) (187,836) (195,130)
----------- ----------- ----------- -----------
Net increase 6,620,127 4,261,657 2,778,464 2,214,851
=========== =========== =========== ===========
(1) Commencement of operations.
</TABLE>
4. Purchases and Sales of Securities
Purchases and sales of investment securities, excluding U.S. government and
short-term securities, for the period November 1, 1998 to April 30, 1999 are as
follows:
<TABLE>
<CAPTION>
INTERMEDIATE LARGE CAP SMALL CAP INTERNATIONAL
FIXED INCOME FUND EQUITY FUND EQUITY FUND EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Purchases $18,815,781 $12,562,307 $13,850,230 $ 1,340,928
Sales 24,236,852 10,115,574 7,424,021 524,069
</TABLE>
Purchases and sales of U.S. government securities for the Intermediate Fixed
Income Fund for the period November 1, 1998 to April 30, 1999, were $6,370,852
and $7,424,537, respectively.
At April 30, 1999, gross unrealized appreciation and depreciation of securities,
based on the cost of investments for federal income tax purposes of $61,051,276,
$41,312,418, $31,343,269 and $22,791,774 for the Intermediate Fixed Income,
Large Cap Equity, Small Cap Equity and International Equity Funds, respectively,
were as follows:
<TABLE>
<CAPTION>
INTERMEDIATE LARGE CAP SMALL CAP INTERNATIONAL
FIXED INCOME FUND EQUITY FUND EQUITY FUND EQUITY FUND
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Unrealized appreciation $ 189,720 $ 9,136,781 $ 2,291,180 $ 2,442,480
Unrealized depreciation (1,018,519) (2,473,162) (4,169,757) (2,162,353)
----------- ----------- ----------- -----------
Net unrealized appreciation (depreciation) $ (828,799) $ 6,663,619 $(1,878,577) $ 280,127
=========== =========== =========== ===========
</TABLE>
20 JOHNSONFAMILY FUNDS Semi-Annual Report
<PAGE>
At October 31, 1998, the Small Cap Equity Fund had a deferred post-October
capital loss of $355,595. To the extent the Small Cap Equity Fund realizes
future net capital gains, taxable distributions to shareholders will be offset
by any post-October loss deferral.
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 six months ended April 30, 1999,
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 November 1, 1998 to April 30, 1999, the Adviser reimbursed the
Intermediate Fixed Income Fund and International Equity Fund $61,143 and $2,102,
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.
JOHNSONFAMILY FUNDS Semi-Annual Report 21
<PAGE>
This report has been prepared for the general information of JohnsonFamily Funds
shareholders. It is not authorized for distribution to prospective investors
unless accompanied or preceded by a current JohnsonFamily Funds prospectus,
which contains more complete information about JohnsonFamily Funds investment
policies, management fees and expenses. Investors are reminded to read the
prospectus carefully before investing or sending money.
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JohnsonFamily Funds
P.O. Box 515
Racine, WI 53401-0515
