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JOHNSONFAMILY
FUNDS
OCTOBER 31, 2000 ANNUAL REPORT
<PAGE>
TABLE OF CONTENTS
Portfolio Commentaries ................................................ 1
Schedules of Investments
JohnsonFamily Intermediate Fixed Income Fund ..................... 11
JohnsonFamily Large Cap Equity Fund .............................. 14
JohnsonFamily Small Cap Equity Fund .............................. 16
JohnsonFamily International Equity Fund .......................... 18
Statements of Assets and Liabilities .................................. 22
Statements of Operations .............................................. 23
Statements of Changes in Net Assets ................................... 24
Financial Highlights .................................................. 26
Notes to the Financial Statements ..................................... 28
Report of Independent Public Accountants............................... 32
--------------------------------
NOT FDIC-INSURED
---------------------------------
May lose value No bank guarantee
---------------------------------
Shares of JohnsonFamily Funds are distributed by
an independent third party, SEI Investments
Distribution Co.
<PAGE>
PORTFOLIO COMMENTARIES OCTOBER 31, 2000
INTERMEDIATE FIXED INCOME FUND
Interest rates declined on balance during the Fund's fiscal year. The first
three months of the year saw a steep increase in rates as a result of concerns
that strong economic growth would lead to inflation. In particular, rising labor
costs due to tight labor market conditions were seen as an inflationary risk.
The Fed acted on these concerns by raising the discount rate five times until
May 2000. Since then interest rates have declined. Increasing evidence of
slowing economic growth had a positive influence on bond markets. Soaring oil
prices were considered less an inflationary concern than an additional damper on
growth. At present levels, oil and natural gas prices will continue to be a drag
on consumer spending well into 2001.
[GRAPHIC OMITTED]
TOTAL RETURN
<TABLE>
<CAPTION>
For the period ended October 31, 2000 For the period ended September 30, 2000
One Year Average Annual* One Year Average Annual*
--------------------------------------- --------------------------------------------
<S> <C> <C> <C>
5.60% 3.49% 5.10% 3.36%
</TABLE>
RETURN ON A $10,000 INVESTMENT (SINCE 3/31/98)
[PLOT POINTS FOLLOW]
JohnsonFamily Lipper Intermediate
Intermeditae Lipper Intermediate Investment Grade
Debt-Funds Government/Credit Debt-Funds
Fixed Income Fund Index Classification
3/31/98 10,000 10,000 10,000
10/31/98 10,590 10,634 10,542
10/31/99 10,351 10,740 10,547
10/31/00 10,930 11,431 11,162
*ANNUALIZED
PAST PERFORMANCE IS NOT PREDUCTIVE OF FUTURE RESULTS.
This chart assumes an initial investment of $10,000 made on 3/31/98
(commencement). Returns shown include the reinvestment of all dividends and
reflect fee waivers in effect; in the absence of fee waivers, performance would
be reduced. Past performance is not predictive of future results. Investment
return and principal value will fluctuate, so that your shares, when redeemed,
may be worth more or less than their original cost.
The Lehman Brothers Intermediate Government/Corporate Bond Index includes
all public obligations of the U.S. Treasury, excluding flower bonds and
foreign-targeted issues; all publicly issued debt of U.S. government agencies
and quasi-federal corporations and corporate debt guaranteed by the U.S.
government; all publicly issued, fixed rate, nonconvertible investment-grade
dollar-denominated, SEC-registered corporate debt. The Index sectors are
industrial, finance, utility and Yankee. Also included among Yankees is debt
issued or guaranteed by foreign sovereign governments, municipalities or
governmental or international agencies. It includes only those bonds with
maturities of up to 10 years.
The Lipper Intermediate Investment Grade Debt Index includes the 30 largest
funds which, by prospectus or portfolio practice, invest at least 65% of its
assets in investment grade debt issues (rated in the top four grades) with
dollar-weighted average maturities of one to five years. Unlike actual fund
performance, performance of an index does not reflect any expenses or
transaction costs. A direct investment in an unmanaged index is not possible.
JOHNSONFAMILY FUNDS ANNUAL REPORT 1
<PAGE>
PORTFOLIO COMMENTARIES OCTOBER 31, 2000
INTERMEDIATE FIXED INCOME FUND (CONTINUED)
Throughout the fiscal year, the Fund held corporate securities with an average
maturity slightly longer and on the higher side of the quality ratings than its
benchmarks, because of their attractive yield levels relative to treasury
issues. While this contributed to the interest income of the Fund, price
performance lagged that of Treasury bonds, which have a higher weighting in the
benchmark indices. The total return for the year was 5.60%. This figure is
composed of the change in the market value of the bonds plus the interest earned
on those bonds. The 30-day yield on the Fund as of October 31, 2000 was 6.40%.
We believe high-grade corporate bonds are more attractive than they have been in
recent years relative to other fixed income alternatives. For the time being we
will maintain our current weighting in corporates at 39% of Fund assets, in
order to take advantage of the higher yields. The Fund's 4% weighting in the
mortgage pass through obligations sector will also contribute to higher yields.
We expect rates to continue to decline modestly as US and foreign economies face
slower economic growth. The next action by the Fed is likely to be an easing.
Under this scenario, our current strategy of overweighting corporate and
government agency bonds, and underweighting treasury securities should be
rewarded longer term, while providing a competitive yield.
GEORGE A. BALISTRERI, CFA
Portfolio Manager
2 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
PORTFOLIO COMMENTARIES OCTOBER 31, 2000
LARGE CAP EQUITY FUND
The Fund's 2000 fiscal-year performance reflected the transitional nature of the
investing environment within the equity market. The first five months were an
extension of last year's market with strong economic growth and solid consumer
spending leading to above average earnings growth and unprecedented multiple
expansion for the perceived fastest growers. Money flow remained strong for
funds with high technology exposure and index funds (which were increasingly
emphasizing technology), and their performance through the end of March was
impressive. By the second quarter, the Fed's two-year policy of raising interest
rates, due to concerns of an overheating economy potentially triggering a
resurgence of inflation, was changing investor psychology. Even though the
economy continued to grow at a high rate, earnings and sales growth began to
slow, future growth rates were being questioned, and stocks with the loftiest
valuations corrected. The more conservative investing environment since March
has favored active managers with the rallies being broad based and the
corrections focused in the high risk sectors of the market. The technology
[GRAPHIC OMITTED]
TOTAL RETURN
<TABLE>
<CAPTION>
For the period ended October 31, 2000 For the period ended September 30, 2000
One Year Average Annual* One Year Average Annual*
--------------------------------------- --------------------------------------------
<S> <C> <C> <C>
2.34% 1.76% 1.56% 0.12%
</TABLE>
RETURN ON A $10,000 INVESTMENT (SINCE 3/31/98)
[PLOT POINTS FOLLOW]
JohnsonFamily Lipper Multi-Cap
Large Cap S&P 500 Value Funds
Equity Fund Index Classification
3/31/98 10,000 10,000 10,000
10/31/98 9,614 10,062 9,548
10/31199 10,223 12,645 10,617
10/31/00 10,462 13,415 11,775
*ANNUALIZED
PAST PERFORMANCE IS NOT PREDUCTIVE OF FUTURE RESULTS.
This chart assumes an initial investment of $10,000 made on 3/31/98
(commencement). Returns shown include the reinvestment of all dividends and
reflect fee waivers in effect; in the absence of fee waivers, performance would
be reduced. Past performance is not predictive of future results. Investment
return and principal value will fluctuate, so that your shares, when redeemed,
may be worth more or less than their original cost.
The S&P 500(R) Composite Stock Index is an unmanaged index of 500 selected
common stocks, most of which are listed on the New York Stock Exchange. The
Index is heavily weighted toward stocks with large market capitalizations and
represents approximately two-thirds of the total market value of all domestic
common stocks.
The Lipper Multi-Cap Value Fund Index includes the 30 largest funds which, by
prospectus or portfolio practice, invests in companies of various sizes,
normally those that are considered undervalued relative to major stock indexes
based on price-to-current earnings and price-to-book ratios.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
JOHNSONFAMILY FUNDS ANNUAL REPORT 3
<PAGE>
PORTFOLIO COMMENTARIES OCTOBER 31, 2000
LARGE CAP EQUITY FUND (CONTINUED)
heavy NASDAQ Index rose 54.3% through March 31 and lost 26.2% over the last 7
months, while the less volatile Dow Jones Industrial Average rose 2.5% and 1.3%
respectively. For the fiscal year, the NASDAQ was up 13.8%, the Lipper Multi-Cap
Value Index rose 9.9%, the S&P 500 Index and Dow Jones Industrial Average gained
6.1% and 3.5% respectively, and the Fund increased 2.3%.
The Large Cap Equity Fund's performance relative to the S&P 500 Index was
reflective of the shift from an aggressive but narrow market, to a more
conservative broad-based market environment. In the first five months of the
fiscal year, performance was isolated in the technology sector and select large
capitalization stocks in the remaining sectors, two areas in which the Fund was
underweighted. Levels of optimism and aggressiveness reached historic heights in
the first quarter, as investors poured money into stocks that were overvalued by
traditional methods but expected to grow at current rates for many years. The
second quarter correction, that mainly hit the technology sector, was as
unexpected as the previous six-month rally. Fundamentals continued strong for
stocks with the only negatives being a slowdown in the money flows from first
quarter levels, and the Fed draining excess money supply from the system that
had been built-up due to Y2K concerns. The summer rally was broad based,
particularly in August, and the Fund's holdings in Energy, Financials,
Utilities, and Health Care, mainly defensive sectors, generated the best
performance we have seen in two years. Over the last two months of the fiscal
year, uncertainty replaced the confidence investors had exhibited over the last
two years. A combination of slowing economic growth, concern over the level and
longevity of earnings growth, inflation worries, and political uncertainty have
many investors seeking safe havens in the equity market. This has provided the
Fund, over the past 7 months, with the best relative performance versus the S&P
500 Index seen in a couple of years.
Although the level of investor confidence, optimism, and aggressiveness has
declined over the past six months, the level of risk remains high in several
sectors of the equity market and the increasing volatility we have recently
experienced is likely to remain for several years. We believe the Fund is well
positioned for this volatile environment, continuing to generate a generous and
consistent return over time.
WENDELL L. PERKINS, CFA
MICHAEL A. PETERSEN, CFA
MARGARET MCKAY, CFA
Portfolio Managers
4 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
PORTFOLIO COMMENTARIES OCTOBER 31, 2000
SMALL CAP EQUITY FUND
For the one-year period ended October 31, 2000, the small-cap market finally
lived up to its expectations and outperformed the large-cap market, reversing a
five-year trend. The Federal Reserve continued to increase interest rates during
the Fund's fiscal year to slow the economy down to a more sustainable pace and
keep inflation under control. The year was characterized by extreme volatility
as investors ran from one speculative market to another. Value stocks had a
tough time keeping up with growth stocks during the fiscal year but were much
less volatile. The rising interest rate environment negatively affected the more
interest-rate-sensitive value indices, but this was more than offset by strength
in many other sectors. Growth index returns were driven by the speculative
buying in the internet/technology and biotech sectors.
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TOTAL RETURN
<TABLE>
<CAPTION>
For the period ended October 31, 2000 For the period ended September 30, 2000
One Year Average Annual* One Year Average Annual*
--------------------------------------- --------------------------------------------
<S> <C> <C> <C>
11.24% (2.78)% 11.66% (2.54)%
</TABLE>
RETURN ON A $10,000 INVESTMENT (SINCE 3/31/98)
[PLOT POINTS FOLLOW]
JohnsonFamily S&P 500 Lipper Small-Cap
Small Cap SmallCap Value Funds
Equity Fund 600 Index Classification
3/31/98 10,000 10,000 10,000
10/31/98 8,220 7,908 8,193
10/31/99 8,357 8,861 8,648
10/31/00 9,297 11,100 10,483
*ANNUALIZED
PAST PERFORMANCE IS NOT PREDUCTIVE OF FUTURE RESULTS.
This chart assumes an initial investment of $10,000 made on 3/31/98
(commencement). Returns shown include the reinvestment of all dividends and
reflect fee waivers in effect; in the absence of fee waivers, performance would
be reduced. Past performance is not predictive of future results. Investment
return and principal value will fluctuate, so that your shares, when redeemed,
may be worth more or less than their original cost.
The S&P SmallCap 600 Index is a capitalization-weighted index of 600 domestic
stocks that measures the performance of companies with a small market
capitalization. The S&P SmallCap 600 Index fluctuates due to changes in the
aggregate market value of these stocks.
The Lipper Small Cap Value Fund Index includes the 30 largest funds which, by
prospectus or portfolio practice, invests primarily in small companies that are
considered undervalued relative to major stock indexes based on price-to-current
earnings and price-to-book ratios.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
JOHNSONFAMILY FUNDS ANNUAL REPORT 5
<PAGE>
PORTFOLIO COMMENTARIES OCTOBER 31, 2000
SMALL CAP EQUITY FUND (CONTINUED)
Speculative buying continued in the internet/technology and biotech sectors
throughout the early part of the fiscal year as investors bet that rising
interest rates would not dim the growth outlook of these sectors. Four months
into the fiscal year, value stocks were significantly underperforming the growth
counterparts. During this period, the relatively low valuation for the value
sector attracted interest from larger companies and management-led leveraged
buy-outs ("LBOs"). Nine of the Fund's companies were acquired at premium prices
during the fiscal year. As is so often the case with market excesses, the bubble
burst and speculative investors could not sell fast enough. There were no
underlying fundamentals to support valuation levels for many of these internet
and biotech stocks. During the last eight months of the fiscal year, the markets
reverted to a more normal investment environment and many of the over-sold value
sectors began to come back.
For the fiscal year ended October 31, 2000, the JohnsonFamily Small Cap Equity
Fund lagged its benchmark due to its underweighting in technology and biotech,
which is part of the health care industry. The valuation of the technology
sector remained at relatively high levels the entire year. We were uncomfortable
holding such richly valued securities when we had the opportunities to buy
quality companies at steep discounts to their normal value. The Fund's average
weighting in technology was approximately 10-13% for the fiscal year. The S&P
SmallCap 600 Index had an average weighting for technology of over 20% during
most of the year, peaking at over 30%. The same holds true for the health care
sector, where biotech companies, at one time, accounted for almost half of the
industry weighting. The Fund was overweighted in the beaten-down sectors such as
consumer staples, insurance, banking and energy.
There were many industries where the Fund experienced strong relative
performance, energy was up 60%, insurance 52%, financials 46%, chemicals 41% and
industrial 22%. Below are the highlights in each sector:
ENERGY: Every stock in this sector performed well benefiting from the
increasing oil and natural gas prices. We purchased many of these
stocks when oil was under $20 a barrel. Mitchell Energy &
Development Corporation (up 110%) and Louis Dreyfus Natural Gas
Corporation (up 60%) are exploration and production companies in
both oil and natural gas.
INSURANCE: Everest Re Group, Ltd. (up 125% for the fiscal year) provides
reinsurance to property and casualty insurers in the US and
international markets. Everest Re has been consistently growing its
earnings around 15% a year. The insurance group was one of the worst
performing sectors last year. This year...one of the best.
FINANCIALS: Raymond James Financial (up 77% from 2/17/00, the date of purchase,
through 10/31/00) is an investment bank and broker/dealer serving
individuals, corporations and municipalities. Raymond James and its
industry continue to benefit from an increased level of
consolidation. We like Raymond James because of its' distribution
channel. It currently has the 5th largest distribution channel for
financial products and services. This channel is very valuable to
larger companies looking to cross-sell their products and services.
6 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
PORTFOLIO COMMENTARIES OCTOBER 31, 2000
SMALL CAP EQUITY FUND (CONTINUED)
CHEMICALS: Dexter Corporation (up 75% from the beginning of the fiscal year
until 9/6/00, the date of sale) is a specialty chemical company
focused in the aerospace, electronics, food packaging and medical
markets. The company also developed and manufactured biological
and biochemical products for the life science and research
industry. Under pressure from shareholders, the company split
itself up and sold off the pieces to realize the value of
the life science business.
INDUSTRIALS: Cordant Technologies (up 83% from the beginning of the year until
5/23/00, the date it was acquired) is an aerospace/defense company
specializing in rocket motors, precision fastening systems and
turbine engine components. Cordant was acquired by Alcoa for a 93%
premium. Prior to the offer, Cordant had a P/E of 7.0x and P/CF of
only 3.5x.
SPS Technologies (up 67% for the full fiscal year period) designs,
manufactures, and markets fasteners, specialty materials, magnetic
material, aerospace structures and precision tools. SPS is
benefiting from a rebound in the commercial aerospace industry.
Our process continues to focus on undervalued companies within their sector that
exhibit low leverage and strong cash flow. Low debt levels provide companies
with the financial flexibility needed during difficult economic environments.
Companies that generate strong cash flow are in a better position to increase
shareholder wealth over the long term. We feel more comfortable owning companies
that have strong fundamentals supporting their stock price than companies that
have little or no earnings and continue to require cash for investments in
anticipation of future profitability.
Last year was a very encouraging year for the small-cap market. Valuations and
growth prospects relative to the large-cap market are still very appealing. The
small-cap value market in particular is positioned extremely well for the coming
year. As growth in the technology sector begins to slow, as it does for all
cyclical sectors eventually, valuations are contracting. Growth managers and
growth indices are beginning to feel the pain. As the economy begins to slow,
the Fund's holdings in the stable sectors of the market, consumer staples,
utilities and real estate, continue to do well. The Fund is positioned well in
many other sectors, as the market has already priced a recession into many of
our "old economy" companies. The Fund should also benefit from a more normal
investment environment where investors focus on earnings, cash flow, sustainable
growth, dividends and most of all, valuation.
WENDELL L. PERKINS, CFA
MICHAEL A. PETERSEN, CFA
MARGARET MCKAY, CFA
Portfolio Managers
JOHNSONFAMILY FUNDS ANNUAL REPORT 7
<PAGE>
PORTFOLIO COMMENTARIES OCTOBER 31, 2000
INTERNATIONAL EQUITY FUND
For the one-year period ended October 31, 2000, the JohnsonFamily International
Equity Fund returned 7.2%. The benchmark MSCI All Country World ex-USA returned
-3.4% during the same period. The Fund's outperformance was primarily due to the
attention to valuation and relative risk, resulting in relatively low weights in
the telecommunications and technology sectors, an underweighting in Japanese
stocks, and an overweighting of defensive stocks. After strong growth in 1999,
central banks seeking to reduce inflationary pressures have been persistently
tightening monetary conditions, resulting in slower world growth and tighter
corporate margins. Share prices have moved downward correspondingly.
[GRAPHIC OMITTED]
TOTAL RETURN
<TABLE>
<CAPTION>
For the period ended October 31, 2000 For the period ended September 30, 2000
One Year Average Annual* One Year Average Annual*
--------------------------------------- --------------------------------------------
<S> <C> <C> <C>
7.15% 4.93% 9.99% 5.56%
</TABLE>
RETURN ON A $10,000 INVESTMENT (SINCE 3/31/98)
[PLOT POINTS FOLLOW]
Morgan Stanley
JohnsonFamily Capital International Lipper Small-Cap
International All Country World Value Funds
Equity Fund ex-USA Index Classification
3/31/98 10,000 10,000 10,000
10/31/98 8,969 9,214 9,549
10/31/99 10,570 11,608 12,023
10/31/00 11,326 11,380 12,350
*ANNUALIZED
PAST PERFORMANCE IS NOT PREDUCTIVE OF FUTURE RESULTS.
This chart assumes an initial investment of $10,000 made on 3/31/98
(commencement). Returns shown include the reinvestment of all dividends and
reflect fee waivers in effect; in the absence of fee waivers, performance would
be reduced. Past performance is not predictive of future results. Investment
return and principal value will fluctuate, so that your shares, when redeemed,
may be worth more or less than their original cost.
The Morgan Stanley Capital International All Country World ex-USA Index is
the aggregate of 47 of 51 individual country indices calculated by MSCI. The
Index excludes the USA. Each country index is calculated using the five
following steps: 1) define the local market by constructing a matrix of all
listed securities; 2) sort the matrix by industry; 3) capture 60% of the market
cap of each group by selecting the most investable stocks in each industry; 4)
avoid cross-ownership; and 5) apply full market cap weights to each stock in the
index.
The Lipper International Fund Index includes the 30 largest funds which, by
prospectus or portfolio practice, normally invest their assets in securities
whose primary trading markets are outside the United States. Each fund is
equally weighted in the Index and is adjusted for capital gains distributions
and income dividends.
Unlike actual fund performance, performance of an index does not reflect any
expenses or transaction costs. A direct investment in an unmanaged index is not
possible.
Investors are reminded that, while investing globally can be rewarding,
investments in foreign securities involve investment risks including currency,
liquidity, political, economic and market risks.
8 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
PORTFOLIO COMMENTARIES OCTOBER 31, 2000
INTERNATIONAL EQUITY FUND (CONTINUED)
REGIONAL DIVERSIFICATION
The Fund is structured with a focus on developed global markets, with a small
exposure to lesser-developed markets such as Mexico, Brazil and Malaysia. The
holdings in the Fund are diversified across 25 countries. The Fund is nearly
two-thirds invested in Europe and the United Kingdom. Relative to the benchmark
for the fiscal year ended October 31, 2000, the Fund was underweighted in Japan
and in the emerging Asian markets, which contributed positively to performance.
For the one year period ended October 31, 2000, Japan's Nikkei 225 Index fell
22% (in US dollar terms) and the MSCI All Country Asia Pacific Free ex-Japan
Index fell 18%. Strong export growth in Japan helped contribute to a 43%
year-over-year increase in corporate profits of listed companies, albeit from a
low base in 1999. However, EPS growth had already been factored into share
prices, and the lack of positive economic news, the drop-off in government
spending as public debt relative to GDP reached an unprecedented level, the
prospect of slower world economic growth, and an increasing number of
bankruptcies stemming from the excesses of the bubble years sent share prices
tumbling. The Nikkei 225 Index has returned to the levels of the early 1990s.
The Fund's overweighted position in Europe also contributed positively in terms
of price performance in local currency terms. However, the weakness of the Euro
relative to the US dollar wiped out gains in US dollar terms. US dollar strength
against all major currencies over the year has contributed negatively to
unhedged international equity returns.
INDUSTRY SECTOR DIVERSIFICATION AND PERFORMANCE
The holdings in the Fund are diversified across 20 economic sectors, which may
reduce volatility over the long term. The Fund is structured with a value
emphasis and our investment process focuses on companies we consider to be
strong with solid cash flows, conservative balance sheets and a competitive
market share. This approach has been amply rewarded over the past year,
particularly in Japan, where the Fund's holdings increased in value by 5% over
the fiscal year, versus a 22% decline in the Nikkei 225. Across countries, the
Fund was overweighted in health care, services, and industrials, and
significantly underweighted in telecommunications and technology companies.
Market returns across regions were driven by pharmaceutical companies as
competitive pressures eased and health care stocks were considered a safe haven
from the sell-off in technology and telecommunications. The latter sectors were
particularly hard-hit by concerns about slowing world growth, since valuations
among this group were dependent upon continuing strong demand. Utilities also
performed well as a defensive play. Energy stocks remained in favor as oil
prices continue to hover near all-time highs. Results in the financial sector
were mixed. Inflationary concerns led central banks in most regions to rein in
liquidity, while the proportion of non-performing loans is on the rise. However,
consolidation in the industry and higher fee-based revenues drove returns for
selected companies.
JOHNSONFAMILY FUNDS ANNUAL REPORT 9
<PAGE>
PORTFOLIO COMMENTARIES OCTOBER 31, 2000
INTERNATIONAL EQUITY FUND (CONTINUED)
VALUE EMPHASIS
The Fund owns international equity securities that we consider to be undervalued
relative to their respective country indices and industry peer groups. In
reviewing the basic valuation measures, the Fund's price/earnings ratio and
price/book ratio as of October 31, 2000 were 23.5x and 3.9x respectively versus
33.8x and 6.3x for the average Morningstar Foreign Stock Fund*. Significantly,
the median market capitalization of the Fund is about $9 billion, against the
Morningstar average of $24 billion. International mutual fund managers have
reduced their exposure to Japan since the beginning of the fiscal year, to the
detriment of large-cap technology and bank stocks. We remain cautious with
respect to the Japanese market, as concerns have mounted that Japan is
ill-positioned to weather a global slow-down, due to a reliance on exports and
weakness in both corporate and public balance sheets. The outlook for Europe
remains relatively favorable, as the switch to the common currency has improved
capital market liquidity, and structural changes have paved the way for greater
efficiency and productivity in the medium term.
WENDELL L. PERKINS, CFA
MICHAEL A. PETERSEN, CFA
MARGARET MCKAY, CFA
Portfolio Managers
* The Morningstar Foreign Stock Fund category is comprised of 613 international
funds having no more than 10% of their equity holdings in the United States.
10 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
SCHEDULES OF INVESTMENTS OCTOBER 31, 2000
INTERMEDIATE FIXED INCOME FUND
Principal
Amount Value
-------------------------------------------------------------------------------
CORPORATE BONDS - 39.80%
BANKS - 5.38%
$ 500,000 Bank One Corp.,
6.875%, 08/01/06 $ 489,161
1,000,000 Bank One Texas,
6.25%, 02/15/08 912,557
1,000,000 Fleet National Bank,
5.75%, 01/15/09 888,514
500,000 SunTrust Banks, Inc. (A),
6.84%, 04/22/02 499,682
350,000 Trans Financial Bancorp,
7.25%, 09/15/03 350,490
-----------
3,140,404
-----------
AUTOMOTIVE - 2.26%
500,000 Borg Warner, Inc.,
7.00%, 11/01/06 451,793
1,000,000 TRW, Inc., 6.25%, 01/15/10 866,220
-----------
1,318,013
-----------
COMPUTERS & SERVICES - 3.88%
1,500,000 Computer Associates
International, Series B,
6.375%, 04/15/05 1,385,750
1,000,000 Computer Associates
International, Series B,
6.50%, 04/15/08 877,022
-----------
2,262,772
-----------
CONSUMER SERVICES - 3.31%
2,000,000 Adecco, 7.00%, 03/15/06 1,931,744
-----------
ELECTRICAL SERVICES - 1.73%
1,000,000 Metropolitan Edison, MTN,
Series A, 9.10%, 09/18/03 1,008,597
-----------
FINANCIAL SERVICES - 5.74%
500,000 Bear Stearns Co., Inc.,
7.80%, 08/15/07 498,996
500,000 Donaldson, Lufkin &
Jenrette, 6.50%, 04/01/08 460,624
500,000 Household Finance Corp.,
6.00%, 05/01/04 480,783
500,000 Merrill Lynch & Co.,
6.00%, 02/17/09 455,088
Principal
Amount Value
-------------------------------------------------------------------------------
FINANCIAL SERVICES (CONTINUED)
$1,000,000 Paine Webber Group, Inc.,
6.55%, 04/15/08 $ 955,623
500,000 Private Export Funding,
Series B, 6.49%, 07/15/07 497,993
-----------
3,349,107
-----------
FOOD, BEVERAGE & TOBACCO - 0.85%
500,000 Nabisco, Inc. (A),
6.00%, 02/15/11 496,595
-----------
GAS/NATURAL GAS - 1.69%
1,000,000 National Fuel Gas Co. MTN,
Series D, 6.82%, 08/01/04 984,167
-----------
BUILDING & CONSTRUCTION - 1.65%
1,000,000 Masco Corp.,
6.125%, 09/15/03 962,693
-----------
INSURANCE - 2.70%
1,000,000 Lincoln National Corp.,
9.125%, 10/01/24 1,072,892
500,000 MBIA, Inc.,
8.20%, 10/01/22 501,899
-----------
1,574,791
-----------
PAPER & PAPER PRODUCTS - 0.41%
250,000 Mead Corp.,
8.125%, 02/01/23 239,342
-----------
PRINTING & PUBLISHING - 1.52%
1,000,000 Tribune Co. MTN,
Series E, 5.50%, 10/06/08 886,685
-----------
LEASING & RENTAL - 0.68%
400,000 Hertz Corp.,
6.30%, 11/15/06 394,917
-----------
MEDICAL PRODUCTS & SERVICES - 1.32%
775,000 Cardinal Health, Inc.,
7.00%, 10/15/26 767,597
-----------
RETAIL - 1.59%
1,000,000 McDonald's Corp.,
7.375%, 07/15/33 928,035
-----------
SEE NOTES TO THE FINANCIAL STATEMENTS.
JOHNSONFAMILY FUNDS ANNUAL REPORT 11
<PAGE>
SCHEDULES OF INVESTMENTS OCTOBER 31, 2000
INTERMEDIATE FIXED INCOME FUND (CONTINUED)
Principal
Amount Value
-------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS - 5.09%
$1,402,000 Ameritech Capital Funding,
5.95%, 01/15/38 $ 1,345,762
300,000 AT&T Corp.,
8.125%, 01/15/22 285,895
1,300,000 Worldcom, Inc.,
8.875%, 01/15/06 1,339,204
-----------
2,970,861
-----------
TOTAL CORPORATE BONDS
(cost $24,086,954) 23,216,320
-----------
U.S. GOVERNMENT AGENCY
OBLIGATIONS - 32.93%
500,000 Federal Farm Credit Bank,
MTN, 5.05%, 11/06/03 480,506
1,000,000 Federal Home Loan Bank,
Series 2502, 5.32%, 11/19/02 977,433
1,000,000 Federal Home Loan Bank,
Series BI08, 6.15%, 03/03/08 953,176
1,000,000 Federal Home Loan Bank,
Series CF13, 6.75%, 07/29/13 932,785
2,000,000 Federal Home Loan Bank,
Series D205, 6.875%, 08/15/052,026,149
500,000 Federal Home Loan Bank,
Series GD13, 6.375%, 11/12/13 454,795
500,000 Federal Home Loan Bank,
Series GU13, 6.53%, 11/18/13 459,234
500,000 Federal Home Loan Bank,
Series MK05, 6.229%, 04/20/05 487,586
1,000,000 Federal Home Loan Bank,
Series NY03, 6.875%, 08/15/031,010,648
500,000 Federal Home Loan Bank,
Series UV05, 5.94%, 12/01/05 481,040
900,000 Federal Home Loan Mortgage
Corporation, 7.528%, 09/25/06 898,354
250,000 Federal Home Loan Mortgage
Corporation, 7.245%, 04/24/06 247,981
500,000 Federal Home Loan Mortgage
Corporation, 7.09%, 11/24/06 493,070
500,000 Federal Home Loan Mortgage
Corporation, 7.00%, 05/12/14 470,551
Principal
Amount Value
------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS (continued)
$1,000,000 Federal Home Loan Mortgage
Corporation, 6.642%, 03/13/06$ 979,775
500,000 Federal Home Loan Mortgage
Corporation, 6.125%, 02/24/09 469,547
500,000 Federal Home Loan Mortgage
Corporation, 6.00%, 09/25/13 444,179
2,000,000 Federal Home Loan Mortgage
Corporation, 5.90%, 05/04/04 1,949,542
500,000 Federal National Mortgage
Association, MTN,
8.00%, 09/10/09 504,798
300,000 Federal National Mortgage
Association, MTN,
7.25%, 06/01/05 299,294
500,000 Federal National Mortgage
Association, MTN,
7.00%, 03/04/13 481,241
1,050,000 Federal National Mortgage
Association, MTN,
6.65%, 03/08/06 1,032,222
500,000 Federal National Mortgage
Association, MTN,
6.29%, 04/23/08 481,241
500,000 Federal National Mortgage
Association, MTN,
6.00%, 11/13/08 471,394
1,000,000 Federal National Mortgage
Association, Series 03-K,
6.14%, 03/24/03 987,864
750,000 Federal National Mortgage
Association, Series 05-D,
6.85%, 09/12/05 739,939
-----------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(cost $21,333,207) 19,214,344
-----------
SEE NOTES TO THE FINANCIAL STATEMENTS.
12 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
SCHEDULES OF INVESTMENTS OCTOBER 31, 2000
INTERMEDIATE FIXED INCOME FUND (CONTINUED)
Principal
Amount Value
-------------------------------------------------------------------------------
U.S. TREASURY OBLIGATION - 2.48%
$ 6,000,000 U.S. Treasury STRIPS (B),
5.393%, 11/15/24
(cost $1,533,176) $ 1,448,694
-----------
MORTGAGE PASS-THROUGH
OLIBATIONS - 4.24%
1,000,000 Federal Home Loan Mortgage
Corporation, 7.00%, 11/20/24 984,060
790,022 Federal Home Loan Mortgage
Corporation, 6.25%, 10/15/28 737,279
64,642 Federal National Mortgage
Association, 7.00%, 08/25/23 62,450
195,259 Federal National Mortgage
Association, 6.04%, 12/25/21 189,962
500,000 Residential Funding Mortgage
Securities II, 6.96%, 08/25/12
(cost $497,344) 496,890
-----------
2,470,641
-----------
MUNICIPAL BONDS - 5.54%
500,000 Harris County, Texas, Houston
Sports Center, Series C,
RB MBIA, 6.75%, 11/15/17 461,195
500,000 Oakland, California, Oakland
Pension Obligation,
Series A RB MBIA,
6.98%, 12/15/09 493,400
2,280,000 Portage, Indiana, Economic
Development Revenue,
Ameriplex, Series A RB,
6.70%, 03/01/20 2,280,000
-----------
TOTAL MUNICIPAL BONDS
(cost $3,302,430) 3,234,595
-----------
Number
of Shares Value
-------------------------------------------------------------------------------
PREFERRED STOCKS - 4.59%
40,000 Chase Capital VII, Series G
7.00%, 05/15/29 $ 880,000
60,000 Tennessee Valley Authority,
Series D, 6.75%, 06/01/28 1,372,500
20,000 WEC Capital Trust I
6.85%, 03/31/39 423,750
-----------
TOTAL PREFERRED STOCKS
(cost $2,940,000) 2,676,250
-----------
CASH EQUIVALENTS - 9.43%
2,820,423 SSGA Money Market Fund 2,820,423
2,683,090 SSGA U.S. Government
Money Market Fund 2,683,090
-----------
TOTAL CASH EQUIVALENTS
(cost $5,503,513) 5,503,513
-----------
TOTAL INVESTMENTS - 99.01%
(cost $59,196,624) 57,764,357
-----------
Cash and Other Assets,
less Liabilities - 0.99% 580,394
-----------
NET ASSETS - 100.00% $58,344,751
===========
(A) -- VARIABLE RATE SECURITY -- THE RATE REPORTED ON THE SCHEDULE
OF INVESTMENTS IS THE RATE IN EFFECT AS OF OCTOBER 31, 2000.
(B) -- RATE SHOWN IS EFFECTIVE YIELD AT TIME OF PURCHASE
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
MTN --- MEDIUM TERM NOTE
RB -- REVENUE BOND
STRIPS -- SEPARATE TRADING OF REGISTERED INTEREST AND PRINCIPAL OF SECURITIES
SEE NOTES TO THE FINANCIAL STATEMENTS.
JOHNSONFAMILY FUNDS ANNUAL REPORT 13
<PAGE>
SCHEDULES OF INVESTMENTS OCTOBER 31, 2000
LARGE CAP EQUITY FUND
Number
of Shares Value
-------------------------------------------------------------------------------
COMMON STOCKS - 94.95%
AEROSPACE & DEFENSE - 2.94%
13,000 Litton Industries, Inc.* $ 675,187
6,500 Northrop Grumman Corp. 546,000
-----------
1,221,187
-----------
AUTOMOTIVE - 1.68%
26,747 Ford Motor Co. 698,765
-----------
Banks - 10.23%
27,950 Amsouth Bancorporation 389,553
6,500 Bank of America Corp. 312,406
7,500 Chase Manhattan Corp. 341,250
6,500 First Union Corp. 197,031
18,400 FleetBoston Financial Corp. 699,200
13,400 PNC Financial Services Group 896,125
22,200 Summit Bancorp 832,500
3,400 Suntrust Banks, Inc. 165,962
20,000 UnionBanCal Corp. 420,000
-----------
4,254,027
-----------
BUILDING & CONSTRUCTION - 0.65%
15,900 USG Corp. 271,294
-----------
CHEMICALS - 1.50%
20,300 Dow Chemical Co. 621,687
-----------
COMPUTERS & SERVICES - 6.76%
10,000 Apple Computer, Inc.* 195,625
12,300 Compaq Computer Corp. 374,043
12,950 Computer Associates
International, Inc. 412,781
22,000 Deluxe Corp. 496,375
8,509 Intel Corp. 382,905
4,000 International Business
Machines Corp. 394,000
6,500 Microsoft Corp.* 447,688
12,000 Novell, Inc.* 108,000
-----------
2,811,417
-----------
CONSUMER SERVICES - 1.14%
24,000 Galileo International, Inc. 474,000
-----------
DIVERSIFIED MANUFACTURING - 1.84%
20,000 Cooper Industries, Inc. 765,000
-----------
Number
of Shares Value
-------------------------------------------------------------------------------
FINANCIAL SERVICES - 8.02%
10,000 A.G. Edwards, Inc. $ 507,500
18,700 Countrywide Credit
Industries, Inc. 700,081
6,850 Dun & Bradstreet Corp.* 148,131
8,500 Fannie Mae 654,500
3,400 JP Morgan & Co. 562,700
6,200 Lehman Brothers
Holdings, Inc. 399,900
13,700 Moody's Corp. 360,481
-----------
3,333,293
-----------
FOOD, BEVERAGE & TOBACCO - 6.80%
33,500 Conagra Foods, Inc. 716,063
32,500 Kroger Co.* 733,281
34,400 Sara Lee Corp. 741,750
41,300 Supervalu, Inc. 634,988
-----------
2,826,082
-----------
HOUSEHOLD PRODUCTS - 2.55%
12,000 Black & Decker Corp. 451,500
14,000 Whirlpool Corp. 609,000
-----------
1,060,500
-----------
INSURANCE - 5.07%
11,000 Allmerica Financial Corp. 693,688
8,000 AMBAC Financial Group, Inc. 638,500
56,400 Conseco, Inc. 391,275
5,000 XL Capital Limited, Class A 384,375
-----------
2,107,838
-----------
MACHINERY - 2.86%
13,000 Caterpillar, Inc. 455,813
10,000 Emerson Electric Co. 734,375
-----------
1,190,188
-----------
MEDICAL PRODUCTS & SERVICES - 9.48%
12,700 Abbott Laboratories 670,719
16,000 Bristol-Myers Squibb Co. 975,000
10,800 C.R. Bard, Inc. 452,250
8,300 Johnson & Johnson 764,638
12,000 Merck & Co., Inc. 1,079,250
-----------
3,941,857
-----------
SEE NOTES TO THE FINANCIAL STATEMENTS.
14 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
SCHEDULES OF INVESTMENTS OCTOBER 31, 2000
LARGE CAP EQUITY FUND (CONTINUED)
Number
of Shares Value
-------------------------------------------------------------------------------
PAPER & PAPER PRODUCTS - 1.67%
19,000 International Paper Co. $ 695,875
-----------
Petroleum & Fuel Products - 8.87%
13,000 Kerr-McGee Corp. 849,063
10,000 Occidental Petroleum Corp. 198,750
12,200 Phillips Petroleum Co. 753,350
11,000 Texaco, Inc. 649,688
14,000 Unocal Corp. 477,750
28,000 USX-Marathon Group, Inc. 761,250
-----------
3,689,851
-----------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES - 1.40%
13,000 Eastman Kodak Co. 583,375
-----------
PRINTING & PUBLISHING - 1.60%
9,000 Knight Ridder, Inc. 452,250
10,000 R.R. Donnelley & Sons Co. 215,000
-----------
667,250
-----------
RETAIL - 3.09%
10,000 Federated Department Stores* 325,625
10,000 Sears, Roebuck & Co. 297,300
22,000 Tricon Global Restaurants,
Inc.* 660,000
-----------
1,282,925
-----------
TELEPHONES & TELECOMMUNICATIONS - 13.86%
15,100 Alltel Corp. 973,006
28,500 AT&T Corp. 660,844
16,500 BellSouth Corp. 797,156
24,200 CenturyTel, Inc. 931,700
20,000 Motorola, Inc. 498,750
18,000 Sprint Corp. (FON Group) 459,000
17,018 Verizon Communications 983,853
19,300 WorldCom, Inc.* 458,375
-----------
5,762,684
-----------
Number
of Shares Value
-------------------------------------------------------------------------------
UTILITIES - 2.94%
20,000 Edison International $ 477,500
17,100 Pinnacle West Capital Corp. 742,781
-----------
1,220,281
-----------
TOTAL COMMON STOCKS
(cost $40,408,767) 39,479,376
-----------
SHORT-TERM INVESTMENTS - 1.28%
222,783 SSGA Money Market Fund 222,783
308,299 SSGA U.S. Government
Money Market Fund 308,299
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $531,082) 531,082
-----------
TOTAL INVESTMENTS - 96.23%
(cost $40,939,849) 40,010,458
-----------
Cash and Other Assets,
less Liabilities - 3.77% 1,569,215
-----------
NET ASSETS - 100.00% $41,579,673
===========
* NON-INCOME PRODUCING SECURITY
SEE NOTES TO THE FINANCIAL STATEMENTS.
JOHNSONFAMILY FUNDS ANNUAL REPORT 15
<PAGE>
SCHEDULES OF INVESTMENTS OCTOBER 31, 2000
SMALL CAP EQUITY FUND
Number
of Shares Value
--------------------------------------------------------------------------------
COMMON STOCKS - 92.02%
Apparel & Textiles - 0.76%
11,100 Springs Industries, Inc.,
Class A $ 261,544
-----------
AUTOMOTIVE - 2.20%
13,000 ArvinMeritor, Inc. 217,750
9,000 Borg Warner, Inc. 339,750
21,200 National RV Holdings, Inc.* 198,750
-----------
756,250
-----------
BANKS - 8.87%
21,112 Associated Banc-Corp 508,007
11,000 Centura Banks, Inc. 422,812
46,200 Colonial Bancgroup, Inc. 407,137
10,000 Commerce Bancshares, Inc. 359,375
19,700 Compass Bancshares, Inc. 358,294
6,000 First Republic Bank* 162,750
5,954 FNB Corp. 128,011
16,000 Sterling Bancshares 275,000
12,430 UMB Financial Corp. 421,066
-----------
3,042,452
-----------
BUILDING & CONSTRUCTION - 2.07%
12,400 Centex Construction Products 321,625
12,000 Ryland Group, Inc. 387,000
-----------
708,625
-----------
CHEMICALS - 3.07%
8,000 Cytec Industries, Inc.* 277,000
19,900 Ferro Corp. 407,950
17,000 Lubrizol Corp. 368,687
-----------
1,053,637
-----------
COMPUTER HARDWARE - 1.75%
6,500 InFocus Corp.* 287,219
6,600 Xircom, Inc.* 93,225
5,000 Zebra Technologies
Corp., Class A* 219,062
-----------
599,506
-----------
COMPUTERS & SERVICES - 4.09%
19,000 Ansys, Inc.* 220,875
15,000 Deluxe Corp. 338,438
12,000 Hyperion Solutions Corp.* 168,000
14,000 Phoenix Technologies Limited* 224,875
16,200 Progress Software Corp.* 256,163
5,000 Symantec Corp.* 195,313
-----------
1,403,664
-----------
Number
of Shares Value
--------------------------------------------------------------------------------
CONSUMER SERVICES - 2.96%
15,000 ACNielsen Corp.* $ 359,063
17,800 Pittston Brink's Group 282,575
21,000 Reynolds & Reynolds, Class A 375,375
-----------
1,017,013
-----------
CONTAINERS & PACKAGING - 1.33%
13,000 Ball Corp. 456,625
-----------
COSMETICS & TOILETRIES - 0.81%
10,000 Alberto-Culver Co., Class A 277,500
-----------
DIVERSIFIED MANUFACTURING - 5.84%
14,000 Aptargroup, Inc. 289,625
24,000 Clarcor, Inc. 459,000
21,600 Barnes Group, Inc. 415,800
36,160 Myers Industries, Inc. 479,120
7,000 SPS Technologies, Inc.* 361,375
-----------
2,004,920
-----------
FINANCIAL SERVICES - 1.53%
15,500 Raymond James Financial Corp. 524,094
-----------
FOOD, BEVERAGE & TOBACCO - 5.32%
21,000 Interstate Bakeries 294,000
15,000 J&J Snack Foods Corp.* 201,562
9,000 Michael Foods, Inc. 242,438
21,800 Ralcorp Holdings, Inc. 306,563
22,500 Sensient Technologies Corp. 444,375
12,000 Universal Corp. 336,000
-----------
1,824,938
-----------
GAS/NATURAL GAS - 2.91%
18,800 Questar Corp. 508,775
21,100 UGI Corp. 489,256
-----------
998,031
-----------
INSURANCE - 6.03%
9,000 AmerUs Group Co. 237,375
11,472 Delphi Financial
Group, Class A* 424,464
9,000 Everest Re Group Limited 527,625
9,000 FBL Financial Group, Inc.,
Class A 144,562
11,000 Harleysville Group, Inc. 253,687
3,000 Kansas City Life Insurance Co. 97,313
25,800 PXRE Group Limited 385,388
-----------
2,070,414
-----------
SEE NOTES TO THE FINANCIAL STATEMENTS.
16 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
SCHEDULES OF INVESTMENTS OCTOBER 31, 2000
SMALL CAP EQUITY FUND (CONTINUED)
Number
of Shares Value
--------------------------------------------------------------------------------
LEASING & RENTING - 1.21%
24,700 Aaron Rents, Inc. $ 413,725
-----------
LEISURE & RECREATIONAL PRODUCTS - 1.47%
25,900 Brunswick Corp. 503,431
-----------
MACHINERY - 2.66%
22,900 Ametek, Inc. 498,075
24,700 Regal Beloit, Inc. 413,725
-----------
911,800
-----------
MEDICAL PRODUCTS & SUPPLIES - 7.44%
17,100 Arrow International, Inc. 689,344
14,400 Dentsply International, Inc. 499,500
22,000 Henry Schein, Inc.* 536,250
13,000 ICN Pharmaceuticals, Inc. 494,812
9,500 Pacificare Health Systems* 99,156
50,000 Theragenics Corp.* 234,375
-----------
2,553,437
-----------
METALS - 1.56%
19,600 Commercial Metals Co. 534,100
-----------
PAPER & PAPER PRODUCTS - 1.79%
21,400 Boise Cascade Corp. 613,913
-----------
PETROLEUM & FUEL PRODUCTS - 3.69%
4,840 Devon Energy Corp. 243,936
12,000 Louis Dreyfus Natural Gas* 384,750
7,500 Mitchell Energy &
Development Corp., Class A 345,000
21,000 Ocean Energy, Inc.* 291,375
-----------
1,265,061
-----------
PRINTING & PUBLISHING - 2.34%
21,700 Banta Corp. 500,456
8,000 Media General, Inc., Class A 304,000
-----------
804,456
-----------
REAL ESTATE INVESTMENT TRUSTS - 3.08%
15,700 Arden Realty, Inc. 376,800
10,400 Camden Property Trust 297,700
14,100 Home Properties of
New York, Inc. 383,344
-----------
1,057,844
-----------
Number
of Shares Value
------------------------------------------------------------------------------
RETAIL - 5.41%
12,100 Applebees International,
Inc. $ 365,458
26,800 Barnes & Noble, Inc.* 505,850
23,400 Brown Shoe Co., Inc. 229,612
25,000 Burlington Coat Factory
Warehouse 393,750
53,000 OfficeMax, Inc.* 152,375
25,000 Ryan's Family Steak
Houses, Inc.* 209,375
-----------
1,856,420
-----------
SEMI-CONDUCTOR - 1.48%
6,500 Actel Corp.* 238,063
17,400 ESS Technology* 269,700
-----------
507,763
-----------
TELEPHONES & TELECOMMUNICATIONS - 1.61%
15,900 Belden, Inc. 412,406
12,000 Inter-Tel, Inc. 138,750
-----------
551,156
-----------
TRANSPORTATION - 3.23%
21,400 Alexander & Baldwin, Inc. 533,662
36,000 Arkansas Best Corp.* 576,000
-----------
1,109,662
-----------
UTILITIES - 4.06%
17,500 Madison Gas & Electric Co. 380,625
10,100 UIL Holdings Corp. 472,806
16,800 WPS Resources Corp. 540,750
-----------
1,394,181
-----------
WHOLESALE - 1.45%
16,600 United Stationers, Inc.* 499,038
-----------
TOTAL COMMON STOCKS
(cost $32,298,097) 31,575,200
-----------
SHORT-TERM INVESTMENTS - 2.79%
436,864 SSGA Money Market Fund 436,864
520,183 SSGA U.S. Government
Money Market Fund 520,183
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $957,047) 957,047
-----------
TOTAL INVESTMENTS - 94.81%
(cost $33,255,144) 32,532,247
-----------
Cash and Other Assets,
less Liabilities - 5.19% 1,782,566
-----------
NET ASSETS - 100.00% $34,314,813
===========
* NON-INCOME PRODUCING SECURITY
SEE NOTES TO THE FINANCIAL STATEMENTS.
JOHNSONFAMILY FUNDS ANNUAL REPORT 17
<PAGE>
SCHEDULES OF INVESTMENTS OCTOBER 31, 2000
INTERNATIONAL EQUITY FUND
Number
of Shares Value
-------------------------------------------------------------------------------
FOREIGN STOCKS - 92.96%
Australia - 3.35%
38,100 Coles Myer Limited $ 137,996
55,000 CSR Limited 112,599
12,200 National Australia Bank 169,418
120,000 Normany Mining Limited 57,827
6,000 Rio Tinto Limited 82,332
40,000 Santos Limited 127,261
30,000 Telstra Limited 97,870
26,200 Westpac Banking Limited 178,848
-----------
964,151
-----------
AUSTRIA - 0.66%
2,000 BA Holding AG 108,078
1,200 OMV AG 81,336
-----------
189,414
-----------
BELGIUM - 1.36%
2,300 Almanij NV 85,297
600 Electrabel SA 130,152
4,900 UCB SA 174,451
-----------
389,900
-----------
BRAZIL - 0.22%
5,000,000 Embratel Participacoes SA 63,666
-----------
CANADA - 4.44%
3,300 Alcan Aluminum Limited 103,827
3,500 BCE, Inc. 93,963
4,400 Canadian Imperial Bank
of Commerce 139,445
2,800 Canadian Pacific Limited 81,129
9,200 Husky Energy, Inc.* 72,590
5,500 National Bank of Canada 89,854
4,555 Nortel Networks Corporation 206,096
7,000 Petro-Canada Limited 146,674
5,700 Quebecor, Inc. 118,128
1,224 Telus Corp. 32,059
2,408 Telus Corp. (non voting) 61,103
4,800 The Toronto Dominion Bank 131,849
-----------
1,276,717
-----------
DENMARK - 1.68%
1,900 Den Danske Bank Group 274,807
4,400 Tele Danmark A.S. 207,956
-----------
482,763
-----------
Number
of Shares Value
--------------------------------------------------------------------------------
FINLAND - 2.93%
3,100 Huhtamaki Van Leer Oyj $ 74,839
125 Instrumentarium Corporation 2,893
13,800 Kemira Oyj 63,286
10,000 Metsa Serla OY 62,728
8,500 Nokia Oyj 349,381
10,700 Orion-Yhtymae OY 182,763
10,400 Stora Enso Oyj 106,671
-----------
842,561
-----------
FRANCE - 7.57%
2,800 Accor SA 113,215
900 Cap Gemini SA 143,426
1,300 Compagnie de Saint-Gobain 171,798
600 Legrand 96,635
2,000 L'Oreal 152,581
1,800 Pernod Ricard 82,394
500 PSA Peugeot Citroen 91,973
430 Sagem SA 78,732
2,800 Sociege Generale 158,786
3,500 Societe Assurances Generales
de France 191,362
3,500 STMicroelectronics 176,380
2,337 Total Fina Elf SA 333,999
800 Total Fina Elf SA Class B 113,724
2,700 Total Fina Elf SA Strip VVPR* 23
12,100 Usinor SA 131,801
3,200 Valeo SA 139,154
-----------
2,175,983
-----------
GERMANY - 5.93%
1,300 Altana AG 156,392
8,000 BankGesselschaft Berlin AG 104,772
3,500 Bayer AG 151,755
2,300 DaimlerChrysler AG 105,866
5,700 Deutsche Telekom 213,804
4,000 Dyckerhoff AG 81,377
1,400 Epcos AG* 106,000
3,000 Gehe AG 109,096
5,000 Merck Kgaa 189,879
600 SAP AG 98,618
4,500 Schering AG 251,759
3,600 Wella AG 136,713
-----------
1,706,031
-----------
SEE NOTES TO THE FINANCIAL STATEMENTS.
18 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
SCHEDULES OF INVESTMENTS OCTOBER 31, 2000
INTERNATIONAL EQUITY FUND (CONTINUED)
Number
of Shares Value
-------------------------------------------------------------------------------
GREECE - 0.28%
4,555 Hellenic Telecommunications
Organization SA $ 79,396
-----------
HONG KONG - 3.41%
45,000 Cheung Kong Infrastructure
Holdings 69,818
22,000 CLP Holdings 102,683
27,000 Hong Kong Electric Holdings 89,148
16,800 HSBC Holdings PLC 233,728
65,000 Hysan Development Company 82,096
80,000 Johnson Electric Holdings 158,999
39,500 Swire Pacific Ltd. 243,621
-----------
980,093
-----------
IRELAND - 1.24%
8,000 Allied Irish Bank 81,377
12,500 Bank of Ireland 94,357
18,000 Irish Life & Permanent PLC 180,198
-----------
355,932
-----------
ITALY - 1.43%
18,000 Banca Popolare di Milano 112,910
53,000 Benetton Group 96,143
6,700 Mediaset 96,834
9,200 Telecom Italia 106,451
-----------
412,338
-----------
JAPAN - 19.42%
5,000 Aisin Seiki Ltd. 71,346
19,000 Akita Bank Ltd. 75,523
17,000 Asahi Chemical Industry Ltd. 105,252
2,000 Bank of Iwate Ltd. 64,111
8,000 Bank of Tokyo-Mitsubishi Ltd. 95,910
3,000 Canon, Inc. 118,971
16,000 Casio Computer Co. Ltd. 161,193
9,000 Citizen Watch Co. 88,281
6,000 Dai Nippon Printing Co. Ltd. 93,968
8,000 Daiichi Pharmaceutical Limited 227,135
5,100 Daito Trust Construction Co. Ltd. 85,945
14,000 Fuji Heavy Industries Ltd. 97,448
3,000 Fuji Photo Film 111,278
4,000 Fukuda Denshi 81,329
18,000 Higo Bank Ltd. 64,294
4,000 Honda Motor Co. Ltd. 138,113
Number
of Shares Value
-------------------------------------------------------------------------------
JAPAN - (CONTINUED)
1,000 Hoya Corporation $ 82,611
5,000 Ibiden Co. Ltd. 64,523
20,000 Kamigumi Co. Ltd. 91,587
12,000 Kyushu Matsushita
Electric Co. Ltd. 120,565
10,000 Makita Corporation 72,812
8,000 Maruichi Steel Tube Ltd. 113,494
7,000 Matsushita Electric
Industrial Co. Ltd. 203,231
35,000 Mazda Motor Corp. 67,637
15,000 Minolta Co. Ltd. 66,492
9,000 Mitsubishi Logistics Corp. 76,658
37,000 Mitsubishi Rayon Co. 131,821
8,000 Mitsui Fudosan 96,862
1,000 Nintendo Co. Ltd. 165,314
7,000 Nippon Electric Glass Co. Ltd. 162,841
25 Nippon Telegraph &
Telephone Corp. 227,364
28,000 Nishi-Nippon Railroad Co. 70,265
16,000 Nisshin Flour Milling 154,159
22,000 Nisshinbo Industries 105,581
4,000 Ono Pharmaceutical Co. Ltd. 159,361
11,000 QP Corporation-Japan 92,686
7,000 Ricoh Company Ltd. 107,706
5,500 Rinnai 112,583
12,000 San-In Godo Bank Ltd. 55,062
23,000 Sanyo Electric Co. Ltd. 174,839
8,000 Sumitomo Bank Ltd. 97,082
18,000 Sumitomo Realty &
Development 103,200
1,000 TDK Corporation 100,746
27,000 Teikoku Oil Co. Ltd. 123,395
700 Toho Co. Ltd. 100,846
65,000 Toho Gas Co. Ltd. 119,658
6,000 Tokyo Electric Power Co. 145,623
8,000 Tokyo Style 65,869
10,000 Toppan Printing Co. Ltd. 88,290
12,000 Toyo Suisan Kaisha 97,265
10,000 Wacoal Corp. 85,267
-----------
5,583,392
-----------
SEE NOTES TO THE FINANCIAL STATEMENTS.
JOHNSONFAMILY FUNDS ANNUAL REPORT 19
<PAGE>
SCHEDULES OF INVESTMENTS OCTOBER 31, 2000
INTERNATIONAL EQUITY FUND (CONTINUED)
Number
of Shares Value
-------------------------------------------------------------------------------
MALAYSIA - 0.80%
96,000 Golden Hope Plantations
Berhad $ 91,960
110,000 Highlands & Lowlands Berhad 67,739
50,000 Kuala Lumpur Kepong Berhad 69,081
-----------
228,780
-----------
MEXICO - 1.17%
57,000 Carso Global Telecom SA* 127,756
26,780 Cemex SA 112,490
31,000 Organizacion Soriana 97,501
-----------
337,747
-----------
NETHERLANDS - 8.35%
9,400 ABN Amro Holding NV 217,530
3,100 ASR Verzekeringsgroep NV 289,057
6,300 Buhrmann NV 171,959
3,600 DSM NV 103,755
7,292 Fortis (NL) 222,524
4,000 Hagemeyer NV 94,431
6,000 Hunter Douglas NV 171,908
3,925 ING Groep NV 269,230
5,711 Koninklijke Philips
Electronics NV 224,190
5,000 Royal Dutch Petroleum 296,219
8,530 Royal KPN NV 172,596
4,000 TNT Post Group NV 84,632
6,500 Vendex KBB NV 81,436
-----------
2,399,467
-----------
NEW ZEALAND - 0.47%
60,800 Telecom Corporation of
New Zealand 134,639
-----------
NORWAY - 1.34%
53,400 DnB Holding ASA 231,395
4,300 Norske Skogindustrier A.S. 154,889
-----------
386,284
-----------
PORTUGAL - 0.56%
18,000 Portugal Telecom 160,210
-----------
SINGAPORE - 1.40%
12,000 City Developments Ltd. 55,369
4,200 Creative Technology Ltd. 68,186
45,000 Keppel TatLee Bank Ltd. 76,901
Number
of Shares Value
-------------------------------------------------------------------------------
SINGAPORE - (CONTINUED)
18,892 Overseas Union Bank $ 91,474
11,000 Singapore Airlines Ltd. 110,282
-----------
402,212
-----------
SPAIN - 3.21%
6,500 Aumar-Autopistas del Mare 98,627
3,800 Banco Popular Espanol 113,546
19,000 Compania Espanola de Petroleos 143,019
4,700 Endesa SA 76,494
4,400 Hidroelectrica Del Cantabrico 83,920
12,000 Iberdrola SA 146,580
13,762 Telefonica SA* 262,128
-----------
924,314
-----------
SWEDEN - 1.66%
5,000 Electrolux AB 62,876
4,100 Holmen AB 104,344
12,500 Skandinaviska Enskilda Banken 147,210
6,000 Telefonaktiebolaget LM Ericsson 79,643
15,000 Trelleborg AB 83,835
-----------
477,908
-----------
SWITZERLAND - 4.01%
50 Cie Financiere Richemont 139,036
200 Hilti AG 164,062
100 Nestle SA 207,163
200 Novartis 303,320
300 Swatch Group AG 81,586
100 Swiss Re 197,153
300 Valora Holding AG 60,981
-----------
1,153,301
-----------
UNITED KINGDOM - 16.07%
9,000 Abbey National PLC 124,278
15,000 Alliance & Leicester PLC 128,285
2,970 Anglo American PLC 161,496
16,000 Associated British Ports
Holdings PLC 71,323
3,000 AstraZeneca PLC 140,613
13,000 AWG PLC* 112,502
12,000 BAA PLC 99,840
14,400 BAE Systems PLC 81,859
10,200 Barclays PLC 292,063
7,900 Boots Co. PLC 63,090
22,000 British Telecommunications PLC 258,110
SEE NOTES TO THE FINANCIAL STATEMENTS.
20 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
SCHEDULES OF INVESTMENTS OCTOBER 31, 2000
INTERNATIONAL EQUITY FUND (CONTINUED)
Number
of Shares Value
--------------------------------------------------------------------------------
UNITED KINGDOM - (CONTINUED)
13,500 Cable & Wireless PLC $ 191,121
9,000 CGNU PLC 120,488
86,000 Elementis PLC* 91,782
8,000 Glaxo Wellcome PLC 230,463
18,000 HSBC Holdings PLC 256,658
21,900 Kelda Group PLC 117,498
60,000 Lasmo PLC 127,632
62,000 Legal & General Group PLC 154,392
9,900 Lonmin PLC 122,187
23,000 Northern Rock PLC 143,604
67,000 Pilkington PLC 95,582
11,800 Powergen PLC 91,494
34,000 Rolls-Royce PLC 88,369
13,000 Scottish & Newcastle PLC 89,095
27,800 Shell Transport & Trading PLC 223,829
17,300 Smithkline Beecham PLC 223,566
38,000 Tesco PLC 144,976
44,464 Unilever PLC 301,021
30,000 Vodafone Group PLC 124,909
11,000 WPP Group PLC 147,742
-----------
4,619,867
-----------
TOTAL FOREIGN STOCKS
(cost $25,670,795) 26,727,066
-----------
FOREIGN PREFERRED STOCKS - 0.93%
BRAZIL - 0.91%
9,100,000 Companhia Brasileiras de
Petroleo Ipiranga 86,308
4,900 Companhia Vale
do Rio Doce 112,974
117,093 Tele Norte Leste
Participacoes SA 2,552
1,000,000 Telecomunicacoes
Brasileiras SA 52
5,000,058 Telesp Celular
Participacoes SA 58,951
-----------
260,837
-----------
UNITED KINGDOM - 0.02%
4,030,000 AWG PLC 5,852
-----------
TOTAL FOREIGN PREFERRED STOCKS
(cost $287,636) 266,689
-----------
Number
of Shares Value
-------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 5.10%
241,633 SSGA Money Market Fund $ 241,633
1,224,662 SSGA U.S. Government
Money Market Fund 1,224,662
-----------
TOTAL SHORT-TERM INVESTMENTS
(cost $1,466,295) 1,466,295
-----------
TOTAL INVESTMENTS - 98.99%
(cost $27,424,726) 28,460,050
-----------
Cash and Other Assets,
less Liabilities - 1.01% 286,477
-----------
NET ASSETS - 100.00% $28,746,527
===========
*NON-INCOME PRODUCING SECURITY
PLC -- PUBLIC LIMITED COMPANY
As of October 31, 2000, the International Equity Fund's investments, excluding
short-term investments, were diversified as follows:
INDUSTRY SECTOR
Banking 16.1%
Basic -- Chemical 3.3%
Basic -- Metals 1.8%
Basic -- Paper 1.6%
Basic Goods 0.6%
Building 2.3%
Communications 9.2%
Consumer Staple 6.1%
Durables 2.6%
Energy 7.1%
Engineering 0.3%
Finance 1.0%
General Cyclical 1.1%
Health Care 8.8%
Industrial 5.6%
Insurance 6.1%
Retail 4.2%
Services 6.1%
Technology 9.2%
Transportation 1.3%
Utilities 5.6%
------
TOTAL INDUSTRY SECTOR 100.0%
======
SEE NOTES TO THE FINANCIAL STATEMENTS.
JOHNSONFAMILY FUNDS ANNUAL REPORT 21
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES OCTOBER 31, 2000
<TABLE>
<CAPTION>
INTERMEDIATE LARGE CAP SMALL CAP INTERNATIONAL
FIXED INCOME FUND EQUITY FUND EQUITY FUND EQUITY FUND
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value
(cost $59,196,624, $40,939,849, $33,255,144,
and $27,424,726, respectively) $ 57,764,357 $ 40,010,458 $ 32,532,247 $ 28,460,050
Receivable for capital shares sold 144,616 2,074 1,225 98,845
Receivable for investments sold - 1,514,730 1,771,432 363,571
Dividends, interest and tax withholding receivable 759,771 80,869 34,118 91,298
Organizational expenses, net of
accumulated amortization 14,080 14,080 14,080 14,080
Prepaids and other assets 12,866 8,924 8,271 11,622
------------- ------------- ------------- -------------
TOTAL ASSETS 58,695,690 41,631,135 34,361,373 29,039,466
------------- ------------- ------------- -------------
LIABILITIES:
Dividend payable 298,017 - - -
Payable to custodian - 768 385 1,367
Payable for capital shares redeemed 2,018 18 278 7,255
Payable for investments purchased - - - 233,975
Accrued investment advisory fees 22,235 25,294 21,315 21,879
Accrued distribution fees 4,780 3,246 2,688 2,299
Other liabilities 23,889 22,136 21,894 26,164
------------- ------------- ------------- -------------
TOTAL LIABILITIES 350,939 51,462 46,560 292,939
------------- ------------- ------------- -------------
NET ASSETS $ 58,344,751 $ 41,579,673 $ 34,314,813 $ 28,746,527
============= ============= ============= =============
NET ASSETS CONSIST OF:
Capital stock $ 618 $ 451 $ 371 $ 259
Paid-in capital 61,777,606 39,385,113 34,699,785 26,123,771
Undistributed net investment income 11,232 47,491 140,051 206,703
Accumulated net realized gain (loss) on
investments (2,012,438) 3,076,009 197,503 2,069,310
Accumulated net realized loss from foreign
currency transactions - - - (653,443)
Net unrealized appreciation (depreciation)
on investments (1,432,267) (929,391) (722,897) 3,632,115
Net unrealized depreciation on translation
of assets and liabilities in foreign currencies - - - (2,632,188)
------------- ------------- ------------- -------------
Net Assets $ 58,344,751 $ 41,579,673 $ 34,314,813 $ 28,746,527
============= ============= ============= =============
CAPITAL STOCK, $0.0001 PAR VALUE
Authorized 100,000,000 100,000,000 100,000,000 100,000,000
Issued and outstanding 6,183,824 4,506,981 3,706,160 2,590,822
NET ASSET VALUE, REDEMPTION PRICE PER SHARE AND
OFFERING PRICE PER SHARE $9.44 $9.23 $9.26 $11.10
===== ====== ===== ======
</TABLE>
SEE NOTES TO THE FINANCIAL STATEMENTS.
22 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
STATEMENTS OF OPERATIONS FOR THE FISCAL YEAR ENDED OCTOBER 31, 2000
<TABLE>
<CAPTION>
INTERMEDIATE LARGE CAP SMALL CAP INTERNATIONAL
FIXED INCOME FUND EQUITY FUND EQUITY FUND EQUITY FUND
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends (net of withholding taxes of $0, $0, $0,
and $86,980 respectively) $ 188,625 $ 862,565 $ 527,767 $ 631,305
Interest 3,915,839 80,132 111,858 111,537
------------- ------------- ----------- ------------
Total Investment Income 4,104,464 942,697 639,625 742,842
------------- ------------- ----------- ------------
EXPENSES:
Investment advisory fees 269,050 312,618 245,731 259,037
Distribution fees 149,472 104,206 81,910 71,955
Administration and fund accounting fees 119,578 83,365 65,528 57,564
Federal and state registration fees 17,343 14,961 14,369 13,089
Transfer agent fees and expenses 15,103 15,191 15,517 15,436
Directors' fees and expenses 11,639 10,870 10,205 9,976
Custody fees 14,524 11,863 10,100 45,143
Pricing expenses 9,810 2,942 3,671 35,858
Audit fees 11,150 11,150 11,150 11,150
Legal fees 7,023 5,707 3,849 3,641
Amortization of organizational costs 5,856 5,856 5,856 5,856
Miscellaneous 12,321 8,627 6,507 5,913
------------- ------------- ----------- ------------
Total Expenses Before Waivers 642,869 587,356 474,393 534,618
Waiver of expenses (134,663) - - (2,124)
------------- ------------- ----------- ------------
Net Expenses 508,206 587,356 474,393 532,494
------------- ------------- ----------- ------------
NET INVESTMENT INCOME 3,596,258 355,341 165,232 210,348
------------- ------------- ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
Net realized gain (loss) on investments (1,530,968) 3,080,958 1,417,363 2,138,269
Net realized loss on foreign currency transactions - - - (728,574)
Net change in unrealized appreciation
(depreciation) on investments 1,128,647 (2,653,456) 1,870,510 2,644,022
Net change in unrealized appreciation on
translation of assets and liabilities
in foreign currency - - - (2,465,796)
------------- ------------- ----------- ------------
Net gain (loss) on investments and foreign
currency transactions (402,321) 427,502 3,287,873 1,587,921
------------- ------------- ----------- ------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 3,193,937 $ 782,843 $ 3,453,105 $ 1,798,269
============= ============= =========== ============
SEE NOTES TO THE FINANCIAL STATEMENTS.
JOHNSONFAMILY FUNDS ANNUAL REPORT 23
<PAGE>
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INTERMEDIATE LARGE CAP
FIXED INCOME FUND EQUITY FUND
-------------------------------- ----------------------------------
FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, 2000 OCTOBER 31,1999 OCTOBER 31, 2000 OCTOBER 31, 1999
---------------------------------------------------------------------------------------------------------------------
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income $ 3,596,258 $ 3,372,553 $ 355,341 $ 302,965
Net realized gain (loss) on investments (1,530,968) (481,470) 3,080,958 4,420,822
Net realized gain (loss) on foreign
currency transactions - - - -
Net change in unrealized appreciation
(depreciation) on investments 1,128,647 (4,300,765) (2,653,456) (2,231,221)
Net change in unrealized appreciation
(depreciation) on translation of assets and
liabilities in foreign currency - - - -
------------ ------------ ------------- ------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 3,193,937 (1,409,682) 782,843 2,492,566
------------ ------------ ------------- ------------
DISTRIBUTIONS PAID FROM:
Net investment income (3,617,548) (3,366,744) (335,148) (313,114)
Net realized gains - (38,627) (4,425,774) (295,454)
------------ ------------ ------------- ------------
Total Distributions (3,617,548) (3,405,371) (4,760,922) (608,568)
------------ ------------ ------------- ------------
SHARE TRANSACTIONS:
Shares sold 12,260,063 16,417,262 14,473,384 16,303,716
Proceeds from reinvestment of distributions 1,806,860 1,927,071 2,538,232 334,576
Shares redeemed (16,922,234) (19,955,245) (17,876,269) (13,032,873)
------------ ------------ ------------- ------------
Net Increase (Decrease) from Share
Transactions (2,855,311) (1,610,912) (864,653) 3,605,419
------------ ------------ ------------- ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (3,278,922) (6,425,965) (4,842,732) 5,489,417
NET ASSETS:
Beginning of period 61,623,673 68,049,638 46,422,405 40,932,988
------------ ------------ ------------- ------------
End of period $ 58,344,751 $ 61,623,673 $ 41,579,673 $ 46,422,405
============ ============ ============ ============
Undistributed net investment income
included in net assets at end of period $ 11,232 $ 29,991 $ 47,491 $ 24,767
============= ============ ============ ============
</TABLE>
SEE NOTES TO THE FINANCIAL STATEMENTS.
24 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
SMALL CAP INTERNATIONAL
EQUITY FUND EQUITY FUND
------------------------------------ --------------------------------------
FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999 OCTOBER 31, 2000 OCTOBER 31, 1999
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 165,232 $ 86,829 $ 210,348 $ 245,499
1,417,363 (869,815) 2,138,269 9,456
- - (728,574) 44,127
1,870,510 1,189,176 2,644,022 4,266,674
- - (2,465,796) (986,131)
----------- ----------- ------------ -----------
3,453,105 406,190 1,798,269 3,579,625
----------- ----------- ------------ -----------
(94,724) (23,144) (220,851) (193,724)
- - (78,415) (1,640)
----------- ----------- ------------ -----------
(94,724) (23,144) (299,266) (195,364)
----------- ----------- ------------ -----------
11,903,897 12,902,203 9,205,934 7,469,503
61,492 16,934 163,875 124,825
(11,071,360) (6,071,115) (8,040,293) (4,918,550)
----------- ----------- ------------ -----------
894,029 6,848,022 1,329,516 2,675,778
----------- ----------- ------------ -----------
4,252,410 7,231,068 2,828,519 6,060,039
30,062,403 22,831,335 25,918,008 19,857,969
----------- ----------- ------------ -----------
$34,314,813 $30,062,403 $28,746,527 $25,918,008
=========== =========== =========== ===========
$ 140,051 $ 67,012 $ 206,703 $ 220,849
=========== =========== =========== ===========
JOHNSONFAMILY FUNDS ANNUAL REPORT 25
<PAGE>
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INTERMEDIATE LARGE CAP
FIXED INCOME FUND EQUITY FUND
-------------------------------------------------------------------------------------------------
FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR
ENDED ENDED PERIOD ENDED ENDED ENDED PERIOD ENDED
OCT. 31, 2000 OCT. 31, 1999 OCT. 31, 19981 OCT. 31, 2000 OCT. 31, 1999 OCT. 31, 19981
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.50 $10.27 $10.00 $10.06 $ 9.59 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.56 0.54 0.31 0.08 0.07 0.03
Net realized and unrealized gain (loss)
on investments and foreign
currency transactions (0.06) (0.77) 0.27 0.12 0.54 (0.42)
------ ------ ------ ------ ------ ------
Total from Investment Operations 0.50 (0.23) 0.58 0.20 0.61 (0.39)
------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS PAID:
From net investment income (0.56) (0.53) (0.31) (0.08) (0.07) (0.02)
From capital gains - (0.01) - (0.95) (0.07) -
------ ------ ------ ------ ------ ------
Total Distributions (0.56) (0.54) (0.31) (1.03) (0.14) (0.02)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 9.44 $ 9.50 $10.27 $ 9.23 $10.06 $ 9.59
====== ====== ====== ====== ====== ======
TOTAL RETURN2 5.60% (2.26)% 5.89% 2.34% 6.33% (3.87)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, end of period (000s) $58,345 $61,624 $68,050 $41,580 $46,422 $40,933
Ratio of expenses to average net assets,
net of waivers3 0.85% 0.85% 0.85% 1.41% 1.39% 1.45%
Ratio of net investment income to
average net assets, net of waivers3 6.01% 5.44% 5.32% 0.85% 0.66% 0.55%
Ratio of expenses to average net assets,
before waivers3 1.08% 1.07% 1.11% 1.41% 1.39% 1.45%
Ratio of net investment income to
average net assets, before waivers3 5.78% 5.22% 5.06% 0.85% 0.66% 0.55%
Portfolio turnover rate2 65% 91% 47% 60% 76% 27%
</TABLE>
1 COMMENCED OPERATIONS ON MARCH 31, 1998
2 NOT ANNUALIZED -- FOR THE PERIODS
LESS THAN A FULL YEAR
3 ANNUALIZED -- FOR THE PERIODS LESS THAN A FULL YEAR
SEE NOTES TO THE FINANCIAL STATEMENTS.
26 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
SMALL CAP INTERNATIONAL
EQUITY FUND EQUITY FUND
------------------------------------------ --------------------------------------------------
FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR
ENDED ENDED PERIOD ENDED ENDED ENDED PERIOD ENDED
OCT. 31, 2000 OCT. 31, 1999 OCT. 31, 19981 OCT. 31, 2000 OCT. 31, 1999 OCT. 31, 19981
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 8.35 $ 8.22 $10.00 $10.47 $ 8.97 $10.00
0.05 0.03 - 0.08 0.09 0.09
0.89 0.11 (1.78) 0.67 1.50 (1.12)
------ ------ ------ ------ ------ ------
0.94 0.14 (1.78) 0.75 1.59 (1.03)
------ ------ ------ ------ ------ ------
(0.03) (0.01) - (0.09) (0.09) -
- - - (0.03) - -
------ ------ ------ ------ ------ ------
(0.03) (0.01) - (0.12) (0.09) -
------ ------- ------- ------- ------ -------
$ 9.26 $ 8.35 $ 8.22 $11.10 $10.47 $ 8.97
====== ====== ====== ====== ====== =======
11.24% 1.67% (17.80)% 7.15% 17.85% (10.30)%
$34,315 $30,062 $22,831 $28,747 $25,918 $19,858
1.45% 1.47% 1.50% 1.85% 1.85% 1.85%
0.50% 0.30% 0.03% 0.71% 1.08% 1.85%
1.45% 1.47% 1.57% 1.85% 1.86% 1.96%
0.50% 0.30% (0.04)% 0.71% 1.07% 1.74%
75% 83% 3% 40% 13% 6%
</TABLE>
JOHNSONFAMILY FUNDS ANNUAL REPORT 27
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS OCTOBER 31, 2000
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 October 31, 2000, 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.
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 accounting principles generally accepted in the
United States.
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.
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 October
31, 2000, the International Equity Fund has no such contracts outstanding.
28 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
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. As of October 31, 2000, the
Intermediate Fixed Income Fund has capital loss carryforwards of $481,470 and
$1,530,968 expiring in 2007 and 2008, respectively.
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 October 31, 2000, reclassifications were recorded to increase
(decrease) undistributed net investment income by $2,531, $2,531, $2,531 and
$(3,643), increase accumulated net realized gain or decrease accumulated net
realized loss on investments and foreign currency transactions by $0, $0, $0 and
$6,174 and decrease paid-in-capital by $2,531, $2,531, $2,531 and $2,531 for the
Intermediate Fixed Income Fund, Large Cap Equity Fund, Small Cap Equity Fund and
International Equity Fund, respectively. The Funds hereby designated
approximately $2,741,800 and $1,219,750 for the Large Cap Equity Fund and the
International Equity Fund, respectively, as long-term capital gains for purposes
of the dividends paid deduction. For the year ended October 31, 2000, 5.24%,
100.00%, 100.00% and 0.00% of dividends from taxable income, and short-term
capital gains, for the Intermediate Fixed Income Fund, Large Cap Equity Fund,
Small Cap Equity Fund and International Equity Fund, respectively, qualify for
the dividends received deduction available to corporate shareholders.
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 accounting principles
generally accepted in the United States requires management to make certain
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 ANNUAL REPORT 29
<PAGE>
3. CAPITAL STOCK
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
FOR THE FISCAL YEAR ENDED OCTOBER 31, 2000
INTERMEDIATE LARGE CAP SMALL CAP INTERNATIONAL
FIXED INCOME FUND EQUITY FUND EQUITY FUND EQUITY FUND
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 1,307,665 1,632,309 1,369,525 813,375
Shares issued to holders in reinvestment
of dividends 193,460 284,198 7,101 14,287
Shares redeemed (1,805,880) (2,023,877) (1,270,120) (712,781)
---------- ---------- ---------- ----------
Net increase (decrease) (304,755) (107,370) 106,506 114,881
========== ========== ========== ==========
FOR THE FISCAL YEAR ENDED OCTOBER 31, 1999
INTERMEDIATE LARGE CAP SMALL CAP INTERNATIONAL
FIXED INCOME FUND EQUITY FUND EQUITY FUND EQUITY FUND
------------------------------------------------------------------------------------------------------------------------------------
Shares sold 1,669,046 1,592,118 1,531,197 750,220
Shares issued to holders in reinvestment
of dividends 195,667 32,605 1,990 13,057
Shares redeemed (2,001,261) (1,276,829) (712,097) (502,287)
---------- ---------- ---------- ----------
Net increase (decrease) (136,548) 347,894 821,090 260,990
========== ========== ========== ==========
</TABLE>
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of investment securities, excluding U.S. government and
short-term securities, for the year ended October 31, 2000 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 $18,774,729 $24,196,423 $23,003,759 $12,500,716
Sales 26,023,477 28,687,227 23,428,629 10,552,264
</TABLE>
Purchases and sales of U.S. government securities for the Intermediate Fixed
Income Fund for the year ended October 31, 2000, were $17,509,403 and
$14,904,796, respectively.
At October 31, 2000, gross unrealized appreciation and depreciation of
securities, based on the cost of investments for financial reporting and federal
income tax purposes of $59,196,624, $40,984,101, $33,338,887 and $27,424,726 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 $ 306,942 $ 4,387,481 $ 3,366,158 $3,616,659
Unrealized depreciation (1,739,209) (5,361,124) (4,172,798) (2,581,335)
----------- ----------- ----------- ----------
Net unrealized appreciation (depreciation) $(1,432,267) $ (973,643) $ (806,640) $1,035,324
=========== ============ ============ ==========
</TABLE>
30 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
5. INVESTMENT ADVISORY AND CUSTODIAN AGREEMENTS
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 year ended October 31, 2000, 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 year
ended October 31, 2000, the Adviser reimbursed the Intermediate Fixed Income
Fund and International Equity Fund $134,663 and $2,124, respectively.
State Street Bank and Trust acts as custodian (the "custodian") for the Funds.
Fees of the custodian are being paid on the basis of the net assets of the
Funds. The custodian plays no role in determining the investment policies of the
Funds or which securities are to be purchased or sold by the Funds.
6. ADMINISTRATION, SERVICE AND DISTRIBUTION PLAN
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.
Effective November 1, 2000, the JohnsonFamily Funds Board of Directors approved
a change in the Administrator from Sunstone Financial Group, Inc. to SEI
Investments Mutual Funds Services, a change in the Distributor from Sunstone
Distribution Services, LLC to SEI Investments Distribution Co. and a change in
the transfer agent from Sunstone Financial Group, Inc. to Forum Shareholder
Services, LLC.
JOHNSONFAMILY FUNDS ANNUAL REPORT 31
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF JOHNSONFAMILY FUNDS, INC.:
We have audited the accompanying statements of assets and liabilities of
JohnsonFamily Funds, Inc. (the "Funds" or the "Company," a Maryland corporation,
which includes the JohnsonFamily Intermediate Fixed Income Fund, JohnsonFamily
Large Cap Equity Fund, JohnsonFamily Small Cap Equity Fund and JohnsonFamily
International Equity Fund), including the schedules of investments, as of
October 31, 2000, and the related statements of operations for the year then
ended, statements of changes in net assets for each of the two years in the
periods then ended and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of October 31, 2000, by correspondence with
the custodians and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
JohnsonFamily Funds, Inc. as of October 31, 2000, and the results of its
operations for the year then ended, the changes in net assets for each of the
two years in the periods then ended and the financial highlights for each of the
periods indicated therein, in conformity with accounting principles generally
accepted in the United States.
ARTHUR ANDERSEN LLP
Milwaukee, Wisconsin
November 15, 2000
32 JOHNSONFAMILY FUNDS ANNUAL REPORT
<PAGE>
<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
JFS-F-002-01
