<PAGE>
Semi-Annual Report
April 30, 1999
American
General
Series
Portfolio
Company 2
---------------
<PAGE>
AMERICAN GENERAL SERIES PORTFOLIO COMPANY 2 - SEMI-ANNUAL REPORT APRIL 30, 1999
TABLE OF CONTENTS
<TABLE>
<S> <C>
Chairman's Letter........................................................... 1
Stock Index Fund............................................................ 4
Mid Cap Index Fund.......................................................... 11
Small Cap Index Fund........................................................ 18
International Growth Fund................................................... 32
Large Cap Growth Fund....................................................... 35
Mid Cap Growth Fund......................................................... 39
Small Cap Growth Fund....................................................... 42
International Value Fund.................................................... 47
Large Cap Value Fund........................................................ 51
Mid Cap Value Fund.......................................................... 55
Small Cap Value Fund........................................................ 58
Socially Responsible Fund................................................... 68
Balanced Fund............................................................... 74
High Yield Bond Fund........................................................ 78
Strategic Bond Fund......................................................... 81
Domestic Bond Fund.......................................................... 84
Core Bond Fund.............................................................. 86
Municipal Bond Fund......................................................... 90
Money Market Fund........................................................... 93
Municipal Money Market Fund................................................. 96
Growth Lifestyle Fund....................................................... 98
Moderate Growth Lifestyle Fund.............................................. 100
Conservative Growth Lifestyle Fund.......................................... 103
Notes to Financial Statements............................................... 105
Financial Highlights........................................................ 109
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
AGSPC2 CHAIRMAN'S LETTER 1
Dear Valued Customer,
In today's environment of rapidly changing markets, the commitment to your
financial security remains American General Series Portfolio Company's
("AGSPC") highest priority. This dedication is reflected in our management of
your funds, and it is my pleasure to introduce AGSPC Series 2's April 30, 1999
Semi-Annual Report for your review. This report also covers the entire history
of these funds since inception. In this report, you will find financial and
performance information for AGSPC Series 2's 23 funds for the six-month period
ending April 30, 1999.
MARKET CONDITIONS
Most U.S. securities markets produced positive returns for the six months
ended April 30, 1999, with equity markets outperforming all others. According
to Standard & Poor's 500 Index (S&P 500), the large capitalization sector of
the stock market provided a total return of 22.31%. The "growth" subset of
this sector of the U.S. equity market turned in a particularly impressive
performance, with the Russell 1000 Growth index returning 24.93%. Smaller
stocks and "value" stocks did not perform as well; for example, the Russell
2000 Value index only returned 4.39% for this period. In the bond markets, the
high-yield sector performed best, indicated by Salomon Bros. High Yield Market
Index return of 8.74%. Lehman Brothers Aggregate bond index, reflecting a
broad cross-section of the fixed income market, returned a modest 0.68%.
Several factors influenced equity and fixed income markets during this six-
month period:
. Following August 1998, one of the highest volatility months in recent
history, the U.S. Federal Reserve lowered short-term interest rates in three
steps to 4.75%, injecting liquidity into world markets. This positively
impacted bond and, especially, stock market returns in the fourth quarter of
1998.
. U.S. Gross Domestic Product staged a positive surprise for the fourth
quarter of 1998, registering 5.6% growth on an annual basis.
. While reported inflation remained modest during this period (less than 2.5%
annualized), the strong growth toward the end of 1998 raised expectations of
inflation and a Fed tightening, contributing to a significant downturn in
the bond and equity markets in February.
. In March and April, however, inflation expectations moderated and the bull
market resumed.
International markets continued to be volatile during this six-month period.
Significant emerging market problems occurred in Brazil and continued in
Russia and certain Asian markets. Developed markets, on the other hand, were
helped by strong showings in Europe during the runup to the launch of the Euro
currency in January. Salomon Brothers Primary Market global equity index
reflected this strength with a 20.27% return.
FUND RETURNS
Lifestyle and Balanced Funds
The three Lifestyle Funds--Conservative, Moderate and Growth--returned 10.60%,
12.47% and 13.92%, respectively. This reflected the progressively increasing
allocation to U.S. equities as one moves from Conservative to Growth. The
Balanced Fund returned 18.27%, outperforming its blended benchmark's return of
12.92%.
[FUND RETURNS TO INDEX-CLASS A CHART APPEARS HERE]
6 Months Ended 4/30/99
(1) Represents fund performance before subtracting expenses. See page two for
applicable fund expenses and fund level returns after expenses.
Equity Funds
For U.S. equities in general, "growth" outperformed "value" and "large
capitalization" outperformed "small capitalization" during this six-month
period. U.S. stocks on average also outperformed foreign stocks. Domestically,
three index funds are offered in this series--Stock Index (an S&P 500 index
fund), Mid Cap Index (an S&P 400 Mid Cap index fund), and Small Cap Index (a
Russell 2000 index fund). Reflecting the dominance of larger stocks, the three
funds returned 21.25%, 17.00% and 12.61%, respectively. Among other domestic
funds, the Large Cap Value fund trailed its Growth counterpart, 16.91% to
27.15%. The Midcap sector provided the only exception to the Growth vs. Value
trend, with the Mid Cap Value fund outperforming its Mid Cap Growth
counterpart, 24.73% to 11.43%. In the Smallcap sector, Small Cap Growth
strongly outperformed Small Cap Value, 20.20% to a negative 2.60%. In a
specialized category restricted from investing in tobacco, defense-oriented
companies, alcohol, gambling and significant polluters, the Socially
Responsible Fund turned in a strong performance of 20.34%.
Among AGSPC Series 2 international equity funds, the "growth vs. value" trend
was actually reversed. International Growth trailed its Value counterpart,
7.43% to 22.57%.
[FUND RETURNS TO INDEX-CLASS A CHART APPEARS HERE]
6 Months Ended 4/30/99
(1) Represents fund performance before subtracting expenses. See page two for
applicable fund expenses and fund level returns after expenses.
Bond Funds
In the fixed income markets, high-yield offered the best returns. The High
Yield Bond Fund returned 8.16%. The broader bond market trailed high yield.
The Strategic Bond Fund, with a broad mandate across many types of fixed
income securities, returned 4.09%, the Core Bond Fund returned 1.01%, and the
Domestic Bond Fund returned 0.94%. AGSPC Series 2 also offers a Municipal Bond
Fund, which returned 0.91%.
Two money market funds, one a standard offering and the other a municipal
money market offering, returned 2.55% and 1.51%, respectively.
[FUND RETURNS TO INDEX-CLASS A CHART APPEARS HERE]
6 Months Ended 4/30/99
(1) Represents fund performance before subtracting expenses. See page two for
applicable fund expenses and fund level returns after expenses.
- -------------------------------------------------------------------------------
<PAGE>
2 AGSPC2 CHAIRMAN'S LETTER CONTINUED
FUTURE OUTLOOK
The U.S. stock market rebounded strongly during this six-month period from the
market turmoil caused first by the Asian financial crises in 1997 and early
1998 and, later, by the global financial crisis sparked by Russia's default in
August 1998. Unexpectedly strong domestic demand in the U.S. continues to
support relatively high U.S. stock market valuations. The launch of the Euro
currency initially sparked rising valuations in European stocks, but this has
trailed off somewhat in 1999 due to a gradual decline in the value of the Euro
and deteriorating economic outlooks in some European countries.
Stock markets may prove to be volatile as 1999 unfolds. The approach of the
millennium will cause some concerns regarding the ability of computer and other
electronic systems to perform their functions in January 2000. The crisis in
the Balkans, rising oil prices and continued tight labor conditions in the U.S.
add to uncertainties. On the positive side, a reasonably stable interest rate
environment and ongoing investment in technology should enable many large
global companies to increase earnings in 1999. Additionally, Asia and
especially Japan may turn the corner this year after a prolonged period of sub-
par economic performance.
In fixed income markets, actions of the Fed, the European Central Bank, and
other monetary authorities will be paramount. As oil and other commodity prices
recover and Asia re-enters a growth phase, inflationary pressures may rise.
This could hurt major market bond returns. Alternatively, if growth in the
industrial nations is sub-par and inflation stays tame, central banks may prove
accommodative with monetary policy, which could spark a major bond market
rally.
We strive to provide a variety of quality investment options to meet your
investment needs. Thank you for your continued confidence in our ability to
invest your funds wisely.
Sincerely,
/s/ Thomas L. West, Jr.
Thomas L. West, Jr., Chairman
American General Series Portfolio Company 2
- --------------------------------------------------------------------------------
<PAGE>
AGSPC2 CHAIRMAN'S LETTER CONTINUED 3
FUND RETURNS AND TRACKING DIFFERENCES -- CLASS A
For six months ended April 30, 1999
<TABLE>
<CAPTION>
(3) (4)
Fund Total
Performance Index
Before Return
(1) (2) Subtracting Including Tracking
AGSPC 2 Fund/Relevant Fund Fund Expenses Reinvested Differences
Market Index Return(a) Expenses (1) + (2) Dividends (3) - (4)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Stock Index Fund / S&P
500 Index............... 20.84% 0.41% 21.25% 22.31% (1.06)
Mid Cap Index Fund /
S&P Mid Cap 400......... 16.58 0.42 17.00 18.84 (1.84)
Small Cap Index Fund /
Russell 2000 Index...... 12.19 0.42 12.61 15.16 (2.55)
International Growth
Fund / Salomon Brothers
Primary Market Index.... 6.73 0.70 7.43 20.27 (12.84)
Large Cap Growth Fund /
Russell 1000 Growth
Index................... 26.60 0.55 27.15 24.93 2.22
Mid Cap Growth Fund /
Russell MidCap Growth
Index................... 10.91 0.52 11.43 27.38 (15.95)
Small Cap Growth Fund /
Russell 2000 Growth
Index................... 19.50 0.70 20.20 25.74 (5.54)
International Value Fund
/ Salomon Brothers
Primary Market Index.... 21.92 0.65 22.57 20.27 2.30
Large Cap Value Fund /
Russell 1000 Value
Index................... 16.38 0.53 16.91 20.02 (3.11)
Mid Cap Value Fund /
Russell MidCap Value
Index................... 24.08 0.65 24.73 13.13 11.60
Small Cap Value Fund /
Russell 2000 Value
Index................... (3.22) 0.62 (2.60) 4.39 (6.99)
Socially Responsible
Fund / S&P 500 Index.... 19.94 0.40 20.34 22.31 (1.97)
Balanced Fund / Balanced
Blend(b)................ 17.73 0.54 18.27 12.92 5.35
High Yield Bond Fund /
Salomon Brothers High
Yield Market Index...... 7.53 0.63 8.16 8.74 (0.58)
Strategic Bond Fund /
Lehman Brothers
Aggregate............... 3.81 0.58 4.39 0.68 3.71
Domestic Bond Fund /
Lehman Brothers
Aggregate............... 0.64 0.52 1.16 0.68 0.48
Core Bond Fund / Lehman
Brothers Aggregate...... 0.48 0.53 1.01 0.68 0.33
Municipal Bond Fund /
Lehman Brothers Seven
Through Long Municipal
Bond Index.............. 0.38 0.53 0.91 1.69 (0.78)
Money Market Fund / 30
Day Certificate of
Deposit Primary Offering
Rate by New York City
Banks (NYC 30 Day CD
Rate)................... 2.15 0.40 2.55 2.13 0.42
Municipal Money Market
Fund.................... 0.98 0.53 1.51 N/A N/A
Growth Lifestyle Fund... 13.87 0.05 13.92 N/A N/A
Moderate Growth
Lifestyle Fund.......... 12.42 0.05 12.47 N/A N/A
Conservative Growth
Lifestyle Fund.......... 10.55 0.05 10.60 N/A N/A
</TABLE>
(a) Fund Level Returns are net of investment management fees and other fund
expenses.
(b) Balanced Blend consists of 40% Lehman Brothers Government and Corporate
Index and 60% S&P 500 Index.
- --------------------------------------------------------------------------------
<PAGE>
4 April 30, 1999 (Unaudited)
STOCK INDEX FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 69.84%
ADVERTISING - 0.15%
100 Interpublic Group Companies, Inc. ................... $ 7,755
100 Omnicom Group, Inc. ................................. 7,250
-----------
15,005
-----------
AEROSPACE/DEFENSE - 0.75%
600 Boeing Co. .......................................... 24,375
100 General Dynamics Corp. .............................. 7,025
100 Goodrich (B.F.) Co. ................................. 3,975
200 Lockheed Martin Corp. ............................... 8,613
200 Raytheon Co., Class B................................ 14,050
100 TRW, Inc. ........................................... 4,194
100 United Technologies Corp. ........................... 14,488
-----------
76,720
-----------
AIRLINES - 0.25%
100 * AMR Corp. ........................................... 6,981
100 Delta Air Lines, Inc. ............................... 6,343
200 Southwest Airlines Co. .............................. 6,513
100 * US Airways Group, Inc. .............................. 5,444
-----------
25,281
-----------
APPAREL & PRODUCTS - 0.04%
100 * Fruit of the Loom, Inc. ............................. 1,069
100 Liz Claiborne, Inc. ................................. 3,306
-----------
4,375
-----------
APPLIANCES/FURNISHINGS - 0.13%
100 Maytag Corp. ........................................ 6,838
100 Whirlpool Corp. ..................................... 6,637
-----------
13,475
-----------
AUTO - CARS - 0.78%
700 Ford Motor Co........................................ 44,756
400 General Motors Corp. ................................ 35,575
-----------
80,331
-----------
AUTO - ORIGINAL EQUIPMENT - 0.06%
100 Danaher Corp. ....................................... 6,644
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
AUTO - REPLACEMENT PARTS - 0.11%
100 * AutoZone, Inc. ...................................... $ 3,000
100 Genuine Parts Co. ................................... 3,000
100 Goodyear Tire & Rubber Co. .......................... 5,719
-----------
11,719
-----------
BANKS - NEW YORK CITY - 1.43%
500 Bank of New York Co., Inc. .......................... 20,000
1,500 Citigroup,Inc. ...................................... 112,875
100 J. P. Morgan & Co., Inc. ............................ 13,475
-----------
146,350
-----------
BANKS - OTHER - 2.48%
1,200 Bank of America Corp. ............................... 86,400
200 BankBoston Corp. .................................... 9,800
700 First Union Corp. ................................... 38,763
300 Fleet Financial Group, Inc. ......................... 12,919
200 Mellon Bank Corp. ................................... 14,863
200 National City Corp. ................................. 14,350
150 Providian Financial Corp. ........................... 19,359
100 Republic of New York Corp. .......................... 5,875
100 Union Planters Corp. ................................ 4,280
1,100 Wells Fargo Company.................................. 47,506
-----------
254,115
-----------
BANKS - REGIONAL - 2.23%
100 AmSouth Bancorporation............................... 4,756
800 BankOne Corp. ....................................... 47,200
500 Chase Manhattan Corp. ............................... 41,375
100 Comerica, Inc. ...................................... 6,506
200 Fifth Third Bancorp.................................. 14,338
300 Firstar Corp. ....................................... 9,019
100 Huntington Bancshares, Inc. ......................... 3,544
300 KeyCorp. ............................................ 9,281
100 Mercantile Bancorporation, Inc. ..................... 5,700
100 Northern Trust Corp. ................................ 9,313
300 PNC Bank Corp. ...................................... 17,363
100 Regions Financial Corp. ............................. 3,774
100 SouthTrust Corp. .................................... 3,984
100 State Street Corp. .................................. 8,750
100 Summit Bancorporation................................ 4,238
200 SunTrust Banks, Inc. ................................ 14,300
100 Synovus Financial Corp. ............................. 2,213
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BANKS - REGIONAL - Continued
400 U.S. Bancorp......................................... $ 14,825
100 Wachovia Corp. ...................................... 8,788
-----------
229,267
-----------
BEVERAGE -
BREWERS/DISTRIBUTORS - 0.38%
300 Anheuser-Busch Companies, Inc. ...................... 21,938
300 Seagram Co., Ltd. ................................... 17,213
-----------
39,151
-----------
BEVERAGE - SOFT DRINKS - 1.49%
1,600 Coca-Cola Co. ....................................... 108,800
300 Coca Cola Enterprises, Inc. ......................... 10,349
900 PepsiCo, Inc. ....................................... 33,244
-----------
152,393
-----------
BROADCASTING - 1.12%
400 * CBS Corp. ........................................... 18,225
200 * Clear Channel Communications......................... 13,900
200 Comcast Corp., Class A............................... 13,138
400 * Media One Group, Inc. ............................... 32,625
400 U S WEST, Inc. ...................................... 20,925
400 * Viacom, Inc., Class B................................ 16,350
-----------
115,163
-----------
BUILDING MATERIALS - 0.25%
200 Lowe's Companies, Inc. .............................. 10,550
300 Masco Corp. ......................................... 8,812
200 Sherwin-Williams Co. ................................ 6,225
-----------
25,587
-----------
CHEMICAL - MAJOR - 1.15%
200 Dow Chemical Co. .................................... 26,238
700 Du Pont (E.I.) de Nemours and Co. ................... 49,438
100 Hercules, Inc. ...................................... 3,781
400 Monsanto Co. ........................................ 18,100
100 Morton International, Inc. .......................... 4,038
100 PPG Industries, Inc. ................................ 6,494
100 Rohm and Haas Co. ................................... 4,481
100 Union Carbide Corp. ................................. 5,188
-----------
117,758
-----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 5
STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CHEMICAL - MISCELLANEOUS - 0.26%
200 Air Products and Chemicals, Inc. .................... $ 9,400
100 Ecolab, Inc. ........................................ 4,194
100 Great Lakes Chemical Corp. .......................... 4,781
100 Praxair, Inc. ....................................... 5,175
100 Sigma Aldrich Corp. ................................. 3,250
-----------
26,800
-----------
CONGLOMERATES - 0.90%
300 Allied Signal, Inc. ................................. 17,625
100 ITT Industries, Inc. ................................ 3,600
100 Loews Corp. ......................................... 7,319
200 RJR Nabisco Holdings Corp. .......................... 5,150
100 Tenneco, Inc. ....................................... 2,700
100 Textron, Inc. ....................................... 9,212
575 Tyco International, Ltd. ............................ 46,719
-----------
92,325
-----------
CONSUMER FINANCE - 0.14%
500 MBNA Corp. .......................................... 14,094
-----------
CONTAINERS - METAL/GLASS - 0.12%
100 Corning, Inc. ....................................... 5,725
100 Crown Cork & Seal Co., Inc. ......................... 3,250
100 * Owens-Illinois, Inc. ................................ 2,900
-----------
11,875
-----------
CONTAINERS - PAPER - 0.06%
100 * Sealed Air Corp. .................................... 6,081
-----------
COSMETICS/TOILETRIES - 0.50%
200 Avon Products, Inc. ................................. 10,863
700 Gillette Co. ........................................ 36,531
100 International Flavors & Fragrances, Inc. ............ 3,950
-----------
51,344
-----------
DRUGS - 5.12%
100 * ALZA Corp. .......................................... 3,356
900 American Home Products Corp. ........................ 54,900
400 * Amgen Inc. .......................................... 24,575
1,300 Bristol Myers Squibb Co. ............................ 82,630
700 Eli Lilly and Co. ................................... 51,538
1,600 Merck & Co., Inc. ................................... 112,400
800 Pfizer, Inc. ........................................ 92,050
400 Pharmacia & Upjohn, Inc. ............................ 22,400
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
DRUGS - Continued
900 Schering-Plough Corp. ............................... $ 43,481
500 Warner-Lambert Co. .................................. 33,968
100 * Watson Pharmaceuticals, Inc. ........................ 4,050
-----------
525,348
-----------
ELECTRICAL EQUIPMENT - 2.42%
200 * Cabletron Systems, Inc. ............................. 1,888
300 Emerson Electric Co. ................................ 19,350
2,100 General Electric Co. ................................ 221,550
100 W. W. Grainger, Inc. ................................ 5,019
-----------
247,807
-----------
ELECTRONIC INSTRUMENTS - 0.02%
100 * Thermo Electron Corp. ............................... 1,605
-----------
ENTERTAINMENT - 1.24%
400 Carnival Corp., Class A.............................. 16,500
150 Hasbro, Inc. ........................................ 5,119
200 Mattel, Inc. ........................................ 5,175
800 Time Warner, Inc. ................................... 56,000
1,400 Walt Disney Co. ..................................... 44,450
-----------
127,244
-----------
FINANCE COMPANIES - 0.36%
500 Associates First Capital Corp. ...................... 22,155
300 Household International, Inc. ....................... 15,093
-----------
37,248
-----------
FINANCIAL SERVICES - 0.42%
300 American Express Co. ................................ 39,206
100 Countrywide Credit Industries, Inc. ................. 4,530
-----------
43,736
-----------
FOODS - 1.08%
300 Archer Daniels Midland Co. .......................... 4,500
200 BestFoods............................................ 10,038
300 Campbell Soup Co. ................................... 12,300
300 ConAgra, Inc. ....................................... 7,463
100 General Mills, Inc. ................................. 7,313
300 H J Heinz Co. ....................................... 14,005
100 Hershey Foods Corp. ................................. 5,262
300 Kellogg Co. ......................................... 11,100
100 Pioneer Hi-Bred International, Inc. ................. 3,738
100 Quaker Oats Co. ..................................... 6,455
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
FOODS - Continued
200 Ralston Purina Co. .................................. $ 6,100
600 Sara Lee Corp. ...................................... 13,350
100 Wm. Wrigley Jr. Co. ................................. 8,868
-----------
110,492
-----------
FOOTWEAR - 0.12%
200 NIKE, Inc., Class B.................................. 12,438
-----------
FREIGHT - 0.11%
100 * FDX Corp. ........................................... 11,256
-----------
FUNERAL SERVICES - 0.04%
200 Service Corp. International.......................... 4,150
-----------
GOLD MINING - 0.11%
300 Barrick Gold Corp. .................................. 6,038
100 Homestake Mining Co. ................................ 956
300 Placer Dome, Inc. ................................... 4,237
-----------
11,231
-----------
GOVERNMENT SPONSORED - 0.77%
400 Federal Home Loan Mortgage Corp. .................... 25,100
700 Federal National Mortgage Association................ 49,656
100 SLM Holding Corp. ................................... 4,268
-----------
79,024
-----------
HARDWARE & TOOLS - 0.08%
100 Black & Decker Corp. ................................ 5,675
100 Stanley Works........................................ 3,043
-----------
8,718
-----------
HEALTHCARE - 0.34%
200 Cardinal Health, Inc. ............................... 11,963
300 * HealthSouth Corp. ................................... 4,031
200 IMS Health, Inc. .................................... 6,000
211 McKesson HBOC, Inc. ................................. 7,384
100 United HealthCare Corp. ............................. 5,612
-----------
34,990
-----------
HEAVY DUTY TRUCKS/PARTS - 0.19%
100 Cummins Engine Co., Inc. ............................ 5,350
100 Dana Corp. .......................................... 4,713
100 Eaton Corp. ......................................... 9,168
-----------
19,231
-----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
6 April 30, 1999 (Unaudited)
STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
HOSPITAL MANAGEMENT - 0.16%
500 Columbia/HCA Healthcare Corp. ....................... $ 12,344
200* Tenet Healthcare Corp. .............................. 4,725
-----------
17,069
-----------
HOSPITAL SUPPLIES - 1.91%
1,000 Abbott Laboratories.................................. 48,438
200 Baxter International, Inc. .......................... 12,600
200 Becton, Dickinson and Co. ........................... 7,438
100 Biomet, Inc. ........................................ 4,100
300* Boston Scientific Corp. ............................. 12,769
800 Johnson & Johnson.................................... 78,000
100 Mallinckrodt, Inc. .................................. 3,506
400 Medtronic, Inc. ..................................... 28,775
-----------
195,626
-----------
HOUSEHOLD PRODUCTS - 1.73%
100 Clorox Co. .......................................... 11,538
200 Colgate-Palmolive Co. ............................... 20,488
300 Minnesota Mining and Manufacturing Co. .............. 26,700
178 Newell Rubbermaid, Inc. ............................. 8,444
900 Procter & Gamble Co. ................................ 84,431
400 Unilever NV-ADR...................................... 25,975
-----------
177,576
-----------
INFORMATION PROCESSING - 0.03%
200* Parametric Technology Corp. ......................... 2,613
-----------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 2.98%
200* BMC Software, Inc. .................................. 8,613
3,300* Microsoft Corp. ..................................... 268,331
4* Momentum Business Applications....................... 30
950* Oracle Corp. ........................................ 25,709
200* Peoplesoft, Inc. .................................... 2,738
-----------
305,421
-----------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 3.12%
100* Apple Computer, Inc. ................................ 4,600
1,100 Compaq Computer Corp. ............................... 24,543
1,700* Dell Computer Corp. ................................. 70,019
100* Gateway 2000, Inc. .................................. 6,619
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - Continued
700 Hewlett Packard Co. ................................. $ 55,213
100 Honeywell Inc. ...................................... 9,475
600 International Business Machine....................... 125,513
400* Sun Microsystems, Inc. .............................. 23,925
-----------
319,907
-----------
INFORMATION PROCESSING -
COMPUTER SERVICES - 1.51%
700 America Online, Inc. ................................ 99,925
400 Automatic Data Processing, Inc. ..................... 17,800
100* Ceridian Corp. ...................................... 3,663
300 Electronic Data Systems Corp. ....................... 16,125
300 First Data Corp. .................................... 12,731
100 Paychex, Inc. ....................................... 5,106
-----------
155,350
-----------
INFORMATION PROCESSING -
DATA SERVICES - 1.34%
100* Adobe Systems, Inc. ................................. 6,338
500* Cendant Corp. ....................................... 9,000
300 Computer Associates International.................... 12,806
100* Computer Sciences Corp. ............................. 5,956
200* Compuware Corp. ..................................... 4,875
300* EMC Corp. ........................................... 32,681
300* Novell, Inc. ........................................ 6,675
200 Pitney Bowes, Inc. .................................. 13,988
200* Seagate Technology................................... 5,575
200* Solectron Corp. ..................................... 9,700
200* Unisys Corp. ........................................ 6,288
400 Xerox Corp. ......................................... 23,500
-----------
137,382
-----------
INFORMATION PROCESSING -
NETWORKING - 1.39%
200* Ascend Communications, Inc. ......................... 19,325
1,000* Cisco Systems, Inc. ................................. 114,063
100* General Instrument Corp. ............................ 3,650
200* 3Com Corp. .......................................... 5,225
-----------
142,263
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INSURANCE - CASUALTY - 0.12%
100 Chubb Corp. .......................................... $ 5,925
100 SAFECO Corp. ......................................... 3,974
100 St. Paul Companies, Inc. ............................. 2,869
-----------
12,768
-----------
INSURANCE - LIFE - 0.41%
100 Aetna, Inc. .......................................... 8,769
200 Conseco, Inc. ........................................ 6,312
100 Jefferson-Pilot Corp. ................................ 6,738
100 Lincoln National Corp. ............................... 9,606
100 Torchmark Corp. ...................................... 3,419
100 Transamerica Corp. ................................... 7,125
-----------
41,969
-----------
INSURANCE - MISCELLANEOUS - 0.17%
100 MBIA, Inc. ........................................... 6,725
100 MGIC Investment Corp. ................................ 4,855
100 UNUM Corp. ........................................... 5,463
-----------
17,043
-----------
INSURANCE - MULTILINE - 1.61%
600 Allstate Corp. ....................................... 21,825
785 American International Group, Inc. ................... 92,188
100 Aon Corp. ............................................ 6,850
100 CIGNA Corp. .......................................... 8,719
100 Cincinnati Financial Corp. ........................... 4,038
200 Marsh & McLennan Companies, Inc. ..................... 15,313
100 Provident Companies, Inc. ............................ 3,938
200 The Hartford Financial
Services Group, Inc................................... 11,788
-----------
164,659
-----------
LEISURE TIME - 0.07%
100 Brunswick Corp. ...................................... 2,400
200* Mirage Resorts, Inc. ................................. 4,488
-----------
6,888
-----------
LODGING - 0.11%
200 Hilton Hotels Corp. .................................. 3,125
200 Marriott International, Inc. ......................... 8,375
-----------
11,500
-----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 7
STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MACHINERY - AGRICULTURE - 0.12%
100 Case Corp. .......................................... $ 3,463
200 Deere & Co. ......................................... 8,600
-----------
12,063
-----------
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.16%
200 Caterpillar, Inc. ................................... 12,875
100 Fluor Corp. ......................................... 3,338
-----------
16,213
-----------
MACHINERY - INDUSTRIAL/SPECIALTY - 0.44%
100 Cooper Industries, Inc. ............................. 4,838
100 Dover Corp. ......................................... 3,694
200 Illinois Tool Works, Inc. ........................... 15,400
100 Ingersoll-Rand Co. .................................. 6,919
100 Johnson Controls, Inc. .............................. 7,280
100 Parker Hannifin Corp. ............................... 4,694
100 Timken Co. .......................................... 2,231
-----------
45,056
-----------
MEDICAL TECHNOLOGY - 0.10%
200 Guidant Corp. ....................................... 10,738
-----------
MERCHANDISE - DRUG - 0.29%
200 CVS Corp. ........................................... 9,525
200 Rite Aid Corp. ...................................... 4,663
600 Walgreen Co. ........................................ 16,125
-----------
30,313
-----------
MERCHANDISE - SPECIALTY - 1.58%
100 Circuit City Stores, Inc. ........................... 6,150
100 * Consolidated Stores Corp. ........................... 3,438
100 * CostCo Companies, Inc. .............................. 8,094
100 Dollar General Corp. ................................ 3,505
200 Fortune Brands, Inc. ................................ 7,900
400 Gap, Inc. ........................................... 26,625
1,000 Home Depot, Inc. .................................... 59,938
100 * Kohl's Corp. ........................................ 6,644
200 Limited, Inc. ....................................... 8,750
100 Nordstrom, Inc. ..................................... 3,519
300 * Staples, Inc. ....................................... 9,000
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MERCHANDISE - SPECIALTY - Continued
100 Tandy Corp. ......................................... $ 7,244
200 TJX Companies, Inc. ................................. 6,663
200 * Toys "R" Us, Inc. ................................... 4,350
-----------
161,820
-----------
MERCHANDISING - DEPARTMENT - 0.36%
300 Dayton Hudson Corp. ................................. 20,194
100 * Federated Department Stores, Inc. ................... 4,669
300 May Department Stores Co............................. 11,944
-----------
36,807
-----------
MERCHANDISING - FOOD - 0.55%
200 Albertsons, Inc. .................................... 10,300
200 American Stores Co. ................................. 6,313
200 * Kroger Co. .......................................... 10,863
300 * Safeway, Inc. ....................................... 16,181
300 SYSCO Corp. ......................................... 8,906
100 Winn-Dixie Stores, Inc. ............................. 3,581
-----------
56,144
-----------
MERCHANDISING - MASS - 1.67%
100 * Fred Meyer, Inc. .................................... 5,412
200 J.C. Penney Co., Inc. ............................... 9,125
300 * KMart Corp. ......................................... 4,463
300 Sears Roebuck and Co. ............................... 13,800
3,000 Wal-Mart Stores, Inc. ............................... 138,000
-----------
170,800
-----------
METALS - ALUMINUM - 0.21%
100 Alcan Aluminium, Ltd. ............................... 3,175
200 Alcoa, Inc. ......................................... 12,450
100 Reynolds Metals Co. ................................. 6,238
-----------
21,863
-----------
METALS - COPPER - 0.10%
100 ASARCO, Inc. ........................................ 1,838
100 Newmont Mining Corp. ................................ 2,406
100 Phelps Dodge Corp. .................................. 6,325
-----------
10,569
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
METALS - STEEL - 0.13%
100 Allegheny Teldyne, Inc. ............................. $ 2,238
200 * Bethlehem Steel Corp. ............................... 1,825
100 Nucor Corp. ......................................... 5,869
100 USX-US Steel Group, Inc. ............................ 3,025
-----------
12,957
-----------
MISCELLANEOUS - 0.11%
200 BB&T Corp. .......................................... 7,988
100 Equifax, Inc. ....................................... 3,594
-----------
11,582
-----------
NATURAL GAS - DIVERSIFIED - 0.04%
100 Coastal Corp. ....................................... 3,825
-----------
OIL - INTEGRATED DOMESTIC - 0.59%
100 Amerada Hess Corp. .................................. 5,700
100 Ashland Oil, Inc. ................................... 4,225
200 Atlantic Richfield Co. .............................. 16,788
100 Burlington Resources, Inc. .......................... 4,605
200 Occidental Petroleum Corp. .......................... 4,038
200 Phillips Petroleum Co. .............................. 10,125
200 Unocal Corp. ........................................ 8,313
200 USX-Marathon Group................................... 6,250
-----------
60,044
-----------
OIL - INTEGRATED INTERNATIONAL - 3.18%
400 * Chevron Corp. ....................................... 39,900
1,600 Exxon Corp. ......................................... 132,900
500 Mobil Corp. ......................................... 52,375
1,400 Royal Dutch Peteroleum
Company New York..................................... 82,163
300 Texaco, Inc. ........................................ 18,825
-----------
326,163
-----------
OIL - SERVICES - 0.45%
200 Baker Hughes, Inc. .................................. 5,975
300 Halliburton Co. ..................................... 12,788
100 * Rowan Companies, Inc. ............................... 1,600
400 Schlumberger, Ltd. .................................. 25,550
-----------
45,913
-----------
OIL/GAS PRODUCERS - 0.10%
100 Anadarko Petroleum Corp. ............................ 3,793
100 Sunoco, Inc. ........................................ 3,575
200 Union Pacific Resources Group, Inc. ................. 2,800
-----------
10,168
-----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
8 April 30, 1999 (Unaudited)
STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS - 0.82%
100 Avery Dennison Corp. ................................... $ 6,825
100 Champion International Corp. ........................... 5,468
200 Fort James Corp. ....................................... 7,600
100 Georgia-Pacific Corp. .................................. 9,250
200 International Paper Co. ................................ 10,663
300 Kimberly-Clark Corp. ................................... 18,394
100 Mead Corp. ............................................. 4,181
100 Union Camp Corp. ....................................... 7,938
200 Weyerhaeuser Co. ....................................... 13,425
----------
83,744
----------
PHOTOGRAPHY - 0.17%
200 Eastman Kodak Co. ...................................... 14,924
200 Polaroid Corp. ......................................... 2,063
----------
16,987
----------
POLLUTION CONTROL - 0.26%
100 Browning-Ferris Industries, Inc. ....................... 3,988
400 Waste Management, Inc. ................................. 22,600
----------
26,588
----------
PUBLISHING - NEWS - 0.31%
200 Gannett Co., Inc. ...................................... 14,163
100 Knight-Ridder, Inc. .................................... 5,381
100 New York Times Co., Class A............................. 3,450
100 Tribune Co. ............................................ 8,344
----------
31,338
----------
PUBLISHING/PRINTING - 0.18%
100 Dunn & Bradstreet Corp. ................................ 3,674
200 McGraw-Hill, Inc. ...................................... 11,050
100 R. R. Donnelley and Sons Co. ........................... 3,538
----------
18,262
----------
RAILROAD - 0.43%
300 Burlington Northern Santa Fe............................ 10,988
100 CSX Corp. .............................................. 4,925
100 Kansas City Southern Industries, Inc. .................. 5,956
300 Norfolk Southern Corp. ................................. 9,804
200 Union Pacific Corp. .................................... 12,000
----------
43,673
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
RESTAURANTS - 0.43%
900 McDonald's Corp. ...................................... $ 38,137
100 * Tricon Global Restaurants, Inc. ....................... 6,438
----------
44,575
----------
SAVINGS & LOAN - 0.16%
400 Washington Mutual, Inc. ............................... 16,450
----------
SECURITIES RELATED - 1.00%
105 Bear Stearns Co., Inc. ................................ 4,896
250 Charles Schwab Corp. .................................. 27,438
200 Franklin Resources, Inc. .............................. 8,000
100 Lehman Brothers Holdings, Inc. ........................ 5,556
200 Merrill Lynch & Co., Inc. ............................. 16,788
400 Morgan Stanley Dean Witter Discover.................... 39,674
----------
102,352
----------
SEMICONDUCTOR EQUIPMENT - 0.15%
200 * Applied Materials, Inc. ............................... 10,725
100 * KLA-Tencor Corp. ...................................... 4,963
----------
15,688
----------
SEMICONDUCTORS - 2.06%
2,200 Intel Corp. ........................................... 134,613
200 * Micron Technology, Inc. ............................... 7,425
400 Motorola, Inc. ........................................ 32,049
100 * National Semiconductor Corp. .......................... 1,250
100 Rockwell International Corp. .......................... 5,163
300 Texas Instruments, Inc. ............................... 30,638
----------
211,138
----------
TELECOMMUNICATIONS - 2.95%
400 * Airtouch Communications, Inc. ......................... 37,350
200 ALLTEL Corp. .......................................... 13,488
100 * Andrew Corp. .......................................... 1,394
100 Frontier Corp. ........................................ 5,519
100 Harris Corp. .......................................... 3,456
1,600 Lucent Technologies, Inc. ............................. 96,200
1,200 * MCI Worldcom, Inc. .................................... 98,625
200 * Nextel Communications, Inc., Class A................... 8,188
400 Nortel Networks Corp. ................................. 27,275
100 * Tellabs, Inc. ......................................... 10,955
----------
302,450
----------
TEXTILE - PRODUCTS - 0.05%
100 V. F. Corp. ........................................... 5,150
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
TOBACCO - 0.60%
1,600 Philip Morris Companies, Inc. ......................... $ 56,100
200 UST, Inc. ............................................. 5,575
----------
61,675
----------
UTILITIES - COMMUNICATION - 4.38%
2,148 AT&T - Liberty Media Group............................. 108,474
700 Ameritech Corp. ....................................... 47,906
1,100 Bell Atlantic Corp. ................................... 63,388
1,200 BellSouth Corp. ....................................... 53,700
300 Century Telephone Enterprises.......................... 12,075
700 GTE Corp. ............................................. 46,856
1,300 SBC Communications, Inc. .............................. 72,800
300 Sprint Corp., FON Group................................ 30,769
300 * Sprint Corp., PCS Group................................ 12,713
----------
448,681
----------
UTILITIES - ELECTRIC - 1.42%
100 Ameren Corp. .......................................... 3,869
100 American Electric Power, Inc. ......................... 4,144
100 Carolina Power & Light Co. ............................ 4,031
200 Central & South West Corp. ............................ 4,963
100 Cinergy Corp. ......................................... 2,981
100 Consolidated Edison, Inc. ............................. 4,544
100 CMS Energy Corp. ...................................... 4,400
200 Dominion Resources, Inc. .............................. 8,225
100 DTE Energy Co. ........................................ 4,081
200 Duke Energy Corp. ..................................... 11,200
200 Edison International................................... 4,900
200 Entergy Corp. ......................................... 6,249
100 FirstEnergy Corp. ..................................... 2,969
100 FPL Group, Inc. ....................................... 5,638
100 GPU, Inc. ............................................. 3,813
100 Northern States Power Co. ............................. 2,412
300 PacifiCorp............................................. 5,006
100 Peco Energy Co. ....................................... 4,744
300 PG&E Corp. ............................................ 9,319
100 PP&L Resources, Inc. .................................. 2,794
200 Public Service Enterprise Group, Inc. ................. 8,000
100 Reliant Energy, Inc. .................................. 2,831
500 Southern Co. .......................................... 13,530
200 Texas Utilities Co. ................................... 7,950
100 * The AES Corp. ......................................... 5,000
200 Unicom Corp. .......................................... 7,763
----------
145,356
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 9
STOCK INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
UTILITIES - GAS, PIPELINE - 0.43%
100 Columbia Energy Group.................................. $ 4,806
100 Consolidated Natural Gas Co. .......................... 5,950
200 Enron Corp. ........................................... 15,050
200 Sempra Energy.......................................... 4,150
300 Williams Companies, Inc. .............................. 14,170
----------
44,126
----------
TOTAL COMMON STOCK
(Cost $6,069,983)...................................... 7,159,676
----------
<CAPTION>
PAR
VALUE
----------
<C> <S> <C>
CORPORATE SHORT-TERM
COMMERCIAL PAPER - 3.90%
UTILITIES - COMMUNICATION - 3.90%
$ 400,000 Cincinnati Bell, Inc.,
4.93% due 05/03/99..................................... 399,890
----------
TOTAL CORPORATE BONDS -
SHORT TERM
(Cost $399,890)........................................ 399,890
----------
GOVERNMENT SPONSORED -
SHORT TERM - 24.31%
2,493,000 Federal Home Loan Bank,
4.80% due 05/03/99..................................... 2,492,335
----------
TOTAL GOVERNMENT SPONSORED -
SHORT TERM -
(Cost $2,492,335)...................................... 2,492,335
----------
UNITED STATES GOVERNMENT -
SHORT TERM - 1.46%
150,000 United States Treasury Bills,
4.165% - 4.40% due 06/10/99............................ 149,298
----------
TOTAL UNITED STATES GOVERNMENT -
SHORT TERM -
(Cost $149,301)........................................ 149,298
----------
TOTAL INVESTMENTS
(Cost $9,111,509) - 99.51%............................. 10,201,199
----------
Other assets less liabilities,
net - 0.49%............................................ 49,897
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
NET ASSETS (equivalent to $12.04 per share for 279,983
Class A shares and $12.00
per share for 573,098 Class B shares outstanding) -
100.00%................................................ $10,251,096
-----------
* Non-income producing
<CAPTION>
UNREALIZED
CONTRACTS APPRECIATION
<C> <S> <C>
- -------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED(1)
8(2) (Delivery month/Value at 04/30/99)
S&P 500 Index Futures
(June/$1,336.50)..................................... $ 21,487
-----------
</TABLE>
(1) U.S. Treasury Bills with a market value of approximately $150,000 were
maintained in a segregated account with a portion placed as collateral for
futures contracts.
(2) Per 250.
<TABLE>
- -----------------------------------------------------------------------------
<S> <C> <C>
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 853,081 shares outstanding......... $ 8,531
Additional paid in capital...................................... 9,109,367
Undistributed net realized gain on securities................... 22,334
Undistributed net investment income............................. (313)
Unrealized appreciation of:
Investments........................................ $ 1,089,690
Futures contracts.................................. 21,487 1,111,177
----------- -----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING........................................... $10,251,096
-----------
- -----------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A share
($3,371,419 divided by 279,983 shares).......................... $ 12.04
-----------
Offering price per Class A share
(100/94.25 of $12.04)*.......................................... $ 12.77
-----------
Net asset value and offering price per Class B
share ($6,879,677 divided by 573,098 shares)**.................. $ 12.00
-----------
* Offering price includes sales charge of 5.75%.
The sales charge is reduced for purchases
of $25,000 and over.
** Redemption price per share is equal to net asset value less
any applicable contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
10 STOCK INDEX FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends......................................................... $ 37,777
Interest.......................................................... 19,049
----------
Total investment income.......................................... 56,826
----------
EXPENSES:
Advisory fees..................................................... 8,733
Transfer agent fees............................................... 8,259
Custodian fees.................................................... 4,308
Distribution fees:
Class A.......................................................... 3,566
Class B.......................................................... 18,079
Registration and filing fees...................................... 16,610
Audit fees and tax services....................................... 2,233
Accounting services............................................... 974
Trustees' fees and expenses....................................... 849
Report to shareholders............................................ 237
Miscellaneous..................................................... 222
----------
Total expenses................................................... 64,070
Expense reimbursement (see Note 3)............................... (18,363)
----------
Net expenses..................................................... 45,707
----------
NET INVESTMENT INCOME............................................. 11,119
----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities:
Investments........................................... $ 7,804
Futures contracts..................................... 14,530 22,334
----------
Net unrealized appreciation of securities during the
period:
Investments........................................... 1,089,690
Futures contracts..................................... 21,487 1,111,177
---------- ----------
Net realized and unrealized gain on securities during the
period......................................................... 1,133,511
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $1,144,630
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income........................ $ 11,119 $ -
Net realized gain on securities.............. 22,334 -
Net unrealized appreciation of securities
during the period........................... 1,111,177 -
---------------------------------
Increase in net assets resulting from
operations................................. 1,144,630 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A..................................... (11,432) -
Class B..................................... - -
---------------------------------
Total distributions to shareholders from
net investment income..................... (11,432) -
---------------------------------
Net realized gain on securities
Class A..................................... - -
Class B..................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (11,432) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A..................................... 2,845,516 2,500
Class B..................................... 6,267,382 2,500
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 9,112,898 5,000
---------------------------------
TOTAL INCREASE IN NET ASSETS................. 10,246,096 5,000
NET ASSETS:
Beginning of year........................... 5,000 -
---------------------------------
End of period (including undistributed net
investment income of ($313) and $0)........ $10,251,096 $5,000
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ----------------------------------------- -----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------- -------------------- ------------------- --------------------
Shares sold............. 281,718 $2,868,491 250 $ 2,500 576,441 $6,306,955 250 $ 2,500
Shares issued for
distributions
reinvested.............. 975 11,409 - - - - - -
Shares repurchased...... (2,960) (34,384) - - (3,593) (39,573) - -
------------------- -------------------- ------------------- --------------------
Increase in shares
outstanding............. 279,733 2,845,516 250 2,500 572,848 6,267,382 250 2,500
Shares outstanding:
Beginning of period..... 250 2,500 - - 250 2,500 - -
------------------- -------------------- ------------------- --------------------
End of period........... 279,983 $2,848,016 250 $ 2,500 573,098 $6,269,882 250 $ 2,500
------------------- -------------------- ------------------- --------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 11
MID CAP INDEX FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 85.58%
ADVERTISING - 0.19%
400 * Snyder Communications, Inc. .......................... $ 11,750
----------
AEROSPACE/DEFENSE - 1.17%
200 Gencorp, Inc. ........................................ 4,624
400 * Gulfstream Aerospace Corp. ........................... 19,500
300 * SCI Systems, Inc. .................................... 11,419
400 Sunstrand Corp. ...................................... 28,700
200 Teleflex, Inc. ....................................... 8,712
----------
72,955
----------
AIRLINES - 0.35%
200 * Alaska Air Group, Inc. ............................... 8,812
600 Comair Holdings, Inc. ................................ 13,238
----------
22,050
----------
APPAREL & PRODUCTS - 1.79%
300 * Abercrombie and Fitch Co. ............................ 28,537
600 Cintas Corp. ......................................... 41,250
300 Claire's Stores, Inc. ................................ 9,938
200 * Land's End, Inc. ..................................... 7,650
300 Ross Stores, Inc. .................................... 13,781
400 Warnaco Group, Inc., Class A.......................... 10,675
----------
111,831
----------
APPLIANCES/FURNISHINGS - 0.97%
400 * Furniture Brands International........................ 10,025
300 Heilig-Meyers Co. .................................... 1,763
600 Herman Miller, Inc. .................................. 11,963
300 Lancaster Colony Corp. ............................... 8,850
1,200 Leggett & Platt, Inc. ................................ 27,674
----------
60,275
----------
AUTO - CARS - 0.14%
400 Meritor Automotive, Inc. ............................. 8,475
----------
AUTO - ORIGINAL EQUIPMENT - 1.27%
200 Arvin Industries, Inc. ............................... 7,325
100 Borg-Warner Automotive, Inc. ......................... 5,675
200 Carlisle Cos, Inc. ................................... 9,800
300 Donaldson Co., Inc. .................................. 6,713
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
AUTO - ORIGINAL EQUIPMENT - Continued
400 Federal-Mogul Corp. .................................. $ 17,550
400 * Lear Corp. ........................................... 18,350
300 Mark IV Industries, Inc. ............................. 5,363
200 Modine Manufacturing Co. ............................. 6,250
100 Superior Industries International, Inc................ 2,500
----------
79,526
----------
AUTO - REPLACEMENT PARTS - 0.32%
200 Kaydon Corp. ......................................... 6,750
200 * SPX Corp. ............................................ 13,063
----------
19,813
----------
BANKS - OTHER - 0.77%
800 First Tennessee National Corp. ....................... 34,500
1,000 Sovereign Bancorp, Inc. .............................. 13,624
----------
48,124
----------
BANKS - REGIONAL - 4.76%
400 Associated Banc-Corp. ................................ 14,550
200 CCB Financial Corp. .................................. 11,550
300 City National Corp. .................................. 11,588
1,100 First Security Corp. ................................. 20,900
300 First Virginia Banks, Inc. ........................... 14,981
600 GreenPoint Financial Corp. ........................... 21,000
900 Hibernia Corp., Class A............................... 11,981
600 Marshall & Ilsley Corp. .............................. 42,000
500 Mercantile Bankshares Corp. .......................... 18,500
900 North Fork Bancorporation, Inc. ...................... 20,250
600 Old Kent Financial Corp. ............................. 28,350
400 Pacific Century Financial Corp. ...................... 8,700
300 Provident Financial Group, Inc. ...................... 12,562
500 TCF Financial Corp. .................................. 14,500
200 Wilmington Trust Corp ................................ 12,288
500 Zions Bancorporation.................................. 33,344
----------
297,044
----------
BROADCASTING - 1.32%
800 A.H. Belo Corp. ...................................... 17,300
206 * Chris-Craft Industries, Inc. ......................... 9,682
300 TCA Cable TV, Inc. ................................... 14,944
700 * Univision Communications, Inc. ....................... 40,513
----------
82,439
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BUILDING MATERIALS - 1.77%
200 Fastenal Co. .......................................... $ 9,550
400 HON INDUSTRIES, Inc. .................................. 10,800
300 Martin Marietta Materials, Inc. ....................... 18,544
700 RPM, Inc. ............................................. 9,843
200 Southdown, Inc. ....................................... 12,813
350 USG Corp. ............................................. 20,431
600 Vulcan Materials Co. .................................. 28,650
----------
110,631
----------
CHEMICAL - MAJOR - 0.38%
200 Albemarle Corp. ....................................... 4,400
800 Solutia, Inc. ......................................... 19,500
----------
23,900
----------
CHEMICAL - MISCELLANEOUS - 1.44%
300 A. Schulman, Inc. ..................................... 5,250
400 * Airgas, Inc. .......................................... 4,700
500 Crompton & Knowles Corp. .............................. 10,125
300 * Cytec Industries, Inc. ................................ 8,531
200 Dexter Corp. .......................................... 8,213
400 Ethyl Corp. ........................................... 2,050
200 Ferro Corp. ........................................... 5,538
200 Georgia Gulf Corp. .................................... 3,188
100 H.B. Fuller Co. ....................................... 6,813
100 Lawter International, Inc. ............................ 1,200
300 Lubrizol Corp. ........................................ 8,306
400 Lyondell Chemical Co. ................................. 7,800
400 M. A. Hanna Co. ....................................... 6,475
100 Minerals Technologies, Inc. ........................... 5,400
300 Olin Corp. ............................................ 4,388
100 Rollins, Inc. ......................................... 1,688
----------
89,665
----------
CONGLOMERATES - 1.39%
300 Alexander & Baldwin, Inc. ............................. 6,525
700 Dial Corp. ............................................ 23,800
300 * Litton Industries, Inc. ............................... 18,788
300 Ogden Corp. ........................................... 7,744
600 Viad Corp. ............................................ 19,838
600 Whitman Corp. ......................................... 9,825
----------
86,520
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
12 April 30, 1999 (Unaudited)
MID CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CONTAINERS - PAPER - 0.34%
100 Chesapeake Corp. ...................................... $ 3,250
700 Sonoco Products Co. ................................... 18,069
----------
21,319
----------
DRUGS - 3.60%
200 * Agouron Pharmaceuticals, Inc. ......................... 11,812
600 Bergen Brunswig Corp., Class A......................... 11,400
400 * Biogen, Inc. .......................................... 38,025
200 Carter-Wallace, Inc. .................................. 3,513
400 * Centocor, Inc. ........................................ 17,750
1,100 * Chiron Corp. .......................................... 22,138
400 * Covance, Inc. ......................................... 8,775
500 * Forest Laboratories, Inc. ............................. 22,250
54 Genzyme Corp. ......................................... 171
500 * Genzyme-Molecular Oncology............................. 18,875
200 Gilead Sciences, Inc................................... 9,213
500 ICN Pharmaceuticals, Inc. ............................. 16,531
700 * IVAX Corp. ............................................ 9,188
800 Mylan Laboratories, Inc. .............................. 18,149
200 * Sepracor, Inc. ........................................ 16,900
----------
224,690
----------
ELECTRIC PRODUCTS -
MISCELLANEOUS - 0.03%
100 CMP Group, Inc. ....................................... 1,938
----------
ELECTRICAL EQUIPMENT - 1.99%
600 * American Power Conversion.............................. 19,800
200 AMETEK, Inc. .......................................... 4,563
700 * FORE Systems, Inc. .................................... 23,625
400 Hubbell, Inc., Class B................................. 19,125
900 Molex, Inc. ........................................... 29,025
500 * Teradyne, Inc. ........................................ 23,594
200 * UCAR International, Inc. .............................. 4,588
----------
124,320
----------
ELECTRONIC INSTRUMENTS - 1.34%
600 * Arrow Electronics, Inc. ............................... 10,913
800 * Concord EFS, Inc. ..................................... 26,700
300 * Imation Corp. ......................................... 5,306
500 * Integrated Device Technology, Inc. .................... 3,688
100 * MagnaTek, Inc. ........................................ 1,081
200 Pittston Brink's Group................................. 5,275
400 * Sensormatic Electronics Corp. ......................... 4,800
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
ELECTRONIC INSTRUMENTS - Continued
400 Symbol Technologies, Inc. ............................. $ 19,100
400 * Vishay Intertechnology, Inc. .......................... 6,975
----------
83,838
----------
ENTERTAINMENT - 0.08%
200 * GTECH Holdings Corp. .................................. 5,212
----------
FERTLIIZERS - 0.28%
700 IMC Global, Inc. ...................................... 17,500
----------
FINANCE COMPANIES - 0.46%
400 Finova Group, Inc. .................................... 19,325
300 Keystone Financial, Inc. .............................. 9,638
----------
28,963
----------
FINANCIAL SERVICES - 0.41%
1,000 * Convergys Corp. ....................................... 18,625
200 Investment Technology Group, Inc. ..................... 6,924
----------
25,549
----------
FOODS - 2.56%
200 Dean Foods Co. ........................................ 7,138
300 Dole Food Co., Inc. ................................... 9,525
100 Dreyer's Grand Ice Cream, Inc. ........................ 1,363
600 Flowers Industries, Inc. .............................. 12,750
500 Hormel Foods Corp. .................................... 18,375
500 IBP, Inc. ............................................. 10,125
100 International Multifoods Corp. ........................ 2,213
500 Interstate Bakeries Corp. ............................. 11,125
100 Lance, Inc. ........................................... 1,388
500 McCormick & Co., Inc. ................................. 15,156
100 Smucker, J.M. Co., Class A............................. 2,150
200 * Suiza Foods Corp. ..................................... 7,512
300 Trinity Industries, Inc. .............................. 10,444
1,400 Tyson Foods, Inc., Class A............................. 28,963
300 * U.S. Foodservice....................................... 12,619
300 Universal Foods Corp. ................................. 6,300
300 * Vlasic Foods International, Inc. ...................... 2,456
----------
159,602
----------
FOOTWEAR - 0.25%
200 * Nine West Group, Inc. ................................. 5,700
200 * Payless ShoeSource, Inc. .............................. 9,688
----------
15,388
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
FREIGHT - 0.26%
300 Airborne Freight Corp. ................................ $ 9,600
200 J.B. Hunt Transport Services, Inc. .................... 4,162
200 Overseas Shipholding Group, Inc. ...................... 2,500
----------
16,262
----------
FUNERAL SERVICES - 0.19%
600 Stewart Enterprises, Inc. ............................. 11,925
----------
HEALTHCARE - 2.79%
300 * Apria Healthcare Group, Inc. .......................... 4,688
400 * First Health Group Corp. .............................. 6,525
800 * Foundation Health Systems, Inc., Class A............... 11,050
1,600 * Health Management Associates, Inc. .................... 25,000
400 * Lincare Holdings, Inc. ................................ 11,850
600 Omnicare, Inc. ........................................ 14,438
500 * Oxford Health Plans, Inc. ............................. 9,969
300 * PacifiCare Health System, Inc., Class B................ 23,934
500 * Quintiles Transnational Corp. ......................... 20,281
500 * Quorum Health Group, Inc. ............................. 6,188
400 * Steris Corp. .......................................... 7,100
600 * Sybron International Corp. ............................ 16,612
500 * Total Renal Care Holdings, Inc. ....................... 6,938
300 * Trigon Healthcare, Inc. ............................... 9,525
----------
174,098
----------
HEAVY DUTY TRUCKS/PARTS - 0.18%
200 Bandag, Inc. .......................................... 6,375
200 Federal Signal Corp. .................................. 4,950
----------
11,325
----------
HOME BUILDERS - 0.15%
850 Clayton Homes, Inc. ................................... 9,456
----------
HOSPITAL MANAGEMENT - 0.05%
500 * Beverly Enterprises, Inc. ............................. 3,250
----------
HOSPITAL SUPPLIES - 1.31%
100 * Acuson Corp. .......................................... 1,525
200 Beckman Coulter, Inc. ................................. 9,638
400 DENTSPLY International, Inc. .......................... 10,474
400 Hillenbrand Industries, Inc. .......................... 18,775
500 * PSS World Medical, Inc. ............................... 4,875
600 Stryker Corp. ......................................... 36,713
----------
82,000
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 13
MID CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 0.76%
800 * Bed Bath & Beyond, Inc. ............................... $ 28,550
100 Church & Dwight Co., Inc. ............................. 4,280
400 Premark International, Inc. ........................... 14,725
----------
47,555
----------
HUMAN RESOURCES - 0.69%
200 Kelly Services, Inc., Class A.......................... 5,063
500 Manpower, Inc. ........................................ 11,312
700 * Modis Professional Services, Inc. ..................... 8,094
600 Olsten Corp. .......................................... 4,049
600 * Robert Half International, Inc. ....................... 14,325
----------
42,843
----------
INFORMATION PROCESSING - 0.46%
450 * Comverse Technology, Inc. ............................. 28,856
----------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 0.59%..............................
400 * Citrix Systems, Inc. .................................. 17,000
1,000 * Informix Corp. ........................................ 7,250
500 * PLATINUM technology International, Inc. ............... 12,750
----------
37,000
----------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 1.52%
600 * Jabil Circut, Inc. .................................... 27,938
400 * Lexmark International Group, Inc. ..................... 49,400
1,000 * Quantum Corp. ......................................... 17,874
----------
95,212
----------
INFORMATION PROCESSING -
COMPUTER SERVICES - 0.94%
400 * Cambridge Technology Partners, Inc. ................... 5,775
500 * Rationale Software Corp. .............................. 14,813
600 * Sterling Commerce, Inc. ............................... 18,787
600 * SunGard Data Systems, Inc. ............................ 19,163
----------
58,538
----------
INFORMATION PROCESSING -
CONSUMER SOFTWARE - 0.72%
400 * Intuit, Inc. .......................................... 34,450
800 * Networks Associates, Inc. ............................. 10,600
----------
45,050
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
DATA SERVICES - 3.87%
400 ACNielson Corp. ....................................... $ 11,150
900 Comdisco, Inc. ........................................ 23,681
400 Diebold, Inc. ......................................... 9,625
400 * Electronic Arts, Inc. ................................. 20,324
500 * Fiserv, Inc. .......................................... 29,281
500 * Keane, Inc. ........................................... 12,405
200 * Legato Systems, Inc. .................................. 8,088
400 * Mentor Graphics Corp. ................................. 4,850
600 * NCR Corp. ............................................. 24,600
500 * NOVA Corp. ............................................ 13,000
200 * Policy Management Systems.............................. 6,288
500 Reynolds and Reynolds Co., Class A..................... 11,406
300 * Sequent Computer Systems, Inc. ........................ 3,281
600 * Siebel Systems, Inc. .................................. 23,063
500 * Sterling Software, Inc. ............................... 10,344
600 * Storage Technology Corp. .............................. 11,587
200 * Structural Dynamics Research Corp. .................... 3,888
400 * Symantec Corp. ........................................ 7,950
300 * Tech Data Corp. ....................................... 7,013
----------
241,824
----------
INSURANCE - CASUALTY - 0.38%
400 American Financial Group, Inc. ........................ 14,525
300 Everest Reinsurance Holdings, Inc. .................... 9,094
----------
23,619
----------
INSURANCE - LIFE - 0.25%
400 Protective Life Corp. ................................. 15,675
----------
INSURANCE - MISCELLANEOUS - 0.69%
400 Ambac Financial Group, Inc. ........................... 24,150
200 HSB Group, Inc. ....................................... 7,574
200 The PMI Group, Inc. ................................... 11,163
----------
42,887
----------
INSURANCE - MULTILINE - 2.01%
1,600 AFLAC, Inc. ........................................... 86,800
200 Horace Mann Educators Corp. ........................... 4,550
800 Old Republic International Corp. ...................... 15,650
500 Reliastar Financial Corp. ............................. 18,374
----------
125,374
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
LEISURE TIME - 1.35%
500 Callaway Golf Co. ..................................... $ 7,531
500 * Circus Circus Enterprises, Inc. ....................... 10,531
900 Harley-Davidson, Inc. ................................. 53,663
700 International Game Technology.......................... 12,424
----------
84,149
----------
LODGING - 0.29%
500 * Promus Hotel Corp. .................................... 18,000
----------
MACHINERY - AGRICULTURE - 0.06%
400 AGCO Corp. ............................................ 3,950
----------
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.15%
200 Granite Construction, Inc. ............................ 5,713
100 * Jacobs Engineering Group, Inc. ........................ 3,944
----------
9,657
----------
MACHINERY - INDUSTRIAL/SPECIALTY - 1.02%
102 * Albany International Corp., Class A.................... 2,474
400 * American Standard Companies, Inc. ..................... 18,300
200 Cordant Technologies, Inc. ............................ 9,224
200 Flowserve Corp. ....................................... 3,725
200 Newport News Shipbuilding, Inc. ....................... 5,238
100 Nordson Corp. ......................................... 6,025
300 Stewart & Stevenson Services, Inc. .................... 3,075
100 Tecumseh Products Co., Class A......................... 6,113
300 Tidewater, Inc. ....................................... 7,950
100 Watts Industries, Inc., Class A........................ 1,538
----------
63,662
----------
MERCHANDISE - DRUG - 0.41%
400 * Medimmune, Inc. ....................................... 22,050
500 * Perrigo Co. ........................................... 3,813
----------
25,863
----------
MERCHANDISE - SPECIALTY - 3.02%
400 * Barnes & Noble, Inc. .................................. 13,900
1,200 * Best Buy Co., Inc. .................................... 57,300
500 * BJ's Wholesale Club, Inc. ............................. 13,281
600 * CompUSA, Inc. ......................................... 4,200
100 Enesco Group, Inc. .................................... 2,100
500 * General Nutrition Companies, Inc. ..................... 8,280
200 * Micro Warehouse, Inc. ................................. 3,388
2,250 * Office Depot, Inc. .................................... 49,500
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
14 April 30, 1999 (Unaudited)
MID CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MERCHANDISE - SPECIALTY - Continued
700 * OfficeMax, Inc. ....................................... $ 7,088
300 Sotheby's Holdings, Inc., Class A...................... 12,787
200 Tiffany & Co. ......................................... 16,800
----------
188,624
----------
MERCHANDISING - DEPARTMENT - 0.48%
500 * Borders Group, Inc. ................................... 7,219
800 * Saks, Inc. ............................................ 22,650
----------
29,869
----------
MERCHANDISING - FOOD - 0.20%
200 Hannaford Bros. Co. ................................... 8,724
200 Ruddick Corp. ......................................... 3,538
----------
12,262
----------
MERCHANDISING - MASS - 0.62%
400 * Dollar Tree Stores, Inc. .............................. 14,600
1,000 Family Dollar Stores, Inc. ............................ 24,125
----------
38,725
----------
METALS - MISCELLANEOUS - 0.15%
200 Kennametal, Inc. ...................................... 5,312
100 Precision Castparts Corp. ............................. 4,275
----------
9,587
----------
METALS - STEEL - 0.47%
400 AK Steel Holding Corp. ................................ 10,400
100 Carpenter Technology Corp. ............................ 3,131
100 Cleveland-Cliffs, Inc. ................................ 3,981
300 Harsco Corp. .......................................... 9,844
100 Ryerson Tull, Inc. .................................... 2,269
----------
29,625
----------
MISCELLANEOUS - 0.20%
500 * Apollo Group, Inc., Class A............................ 12,375
----------
MULTIMEDIA - 0.58%
1,300 * Cadence Design Systems, Inc. .......................... 17,631
400 * Synopsys, Inc. ........................................ 18,850
----------
36,481
----------
NATURAL GAS - DIVERSIFIED - 0.68%
700 El Paso Energy Corp. .................................. 25,725
450 K N Energy, Inc. ...................................... 9,281
400 Questar Corp. ......................................... 7,274
----------
42,280
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
OIL - INTEGRATED DOMESTIC - 0.11%
510 Pennzoil-Quaker State Co. ............................. $ 6,598
----------
OIL - INTEGRATED INTERNATIONAL - 0.23%
300 Murphy Oil Corp. ...................................... 14,081
----------
OIL - SERVICE - PRODUCTS - 1.00%
400 * BJ Services Co. ....................................... 10,700
800 * Noble Drilling Corp. .................................. 15,700
1,100 * Ocean Energy, Inc. .................................... 10,244
300 * Parker Drilling Co. ................................... 1,200
400 * Varco International, Inc. ............................. 4,525
600 Weatherford International, Inc. ....................... 20,325
----------
62,694
----------
OIL - SERVICES - 1.49%
800 ENSCO International, Inc. ............................. 14,850
1,100 * Global Marine, Inc. ................................... 16,363
600 * Nabors Industries, Inc. ............................... 12,338
300 * Smith International, Inc. ............................. 13,463
600 Transocean Offshore, Inc. ............................. 17,812
300 Witco Corp. ........................................... 5,719
300 York International Corp. .............................. 12,375
----------
92,920
----------
OIL/GAS PRODUCERS - 0.80%
400 Cabot Corp. ........................................... 10,800
300 Noble Affiliates, Inc. ................................ 9,618
700 Pioneer Natural Resources Corp. ....................... 8,180
600 * Ranger Oil, Limited.................................... 3,113
500 Ultramar Diamond Shamrock.............................. 11,531
300 Valero Energy Corp. ................................... 6,694
----------
49,936
----------
PAPER/FOREST PRODUCTS - 1.35%
300 Bowater, Inc. ......................................... 16,088
500 Consolidated Papers, Inc. ............................. 15,125
500 Georgia-Pacific Corp. (Timber Group)................... 12,875
300 Longview Fibre Co. .................................... 3,900
200 P. H. Glatfelter Co. .................................. 2,563
200 Pentair, Inc. ......................................... 9,400
200 Rayonier, Inc. ........................................ 9,124
200 Standard Register Co. ................................. 6,100
500 Unisource Worldwide, Inc. ............................. 4,063
300 Wausau-Mosinee Paper Corp. ............................ 4,950
----------
84,188
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
POLLUTION CONTROL - 0.31%
1,100 * Allied Waste Industries, Inc. ......................... $ 19,456
----------
PUBLISHING - NEWS - 0.26%
200 Lee Enterprises, Inc. ................................. 5,725
200 Media General, Inc., Class A........................... 10,400
----------
16,125
----------
PUBLISHING/PRINTING - 0.40%
200 Banta Corp. ........................................... 4,263
200 Houghton Mifflin Co. .................................. 8,924
100 * Scholastic Corp. ...................................... 4,728
300 Wallace Computer Services, Inc. ....................... 6,919
----------
24,834
----------
RAILROAD - 0.36%
500 GATX Corp. ............................................ 17,188
300 * Wisconsin Central Transportation Corp. ................ 5,540
----------
22,728
----------
RESTAURANTS - 1.50%
300 Bob Evans Farms, Inc. ................................. 5,493
400 * Brinker International, Inc. ........................... 11,050
200 * Buffets, Inc. ......................................... 2,000
400 CBRL Group, Inc. ...................................... 8,075
300 * Lone Star Steakhouse & Saloon.......................... 3,263
450 * Outback Steakhouse, Inc. .............................. 16,115
200 * Papa Johns International, Inc. ........................ 8,038
100 * Sbarro, Inc. .......................................... 2,619
1,000 * Starbucks Corp. ....................................... 36,938
----------
93,591
----------
SAVINGS & LOAN - 1.00%
300 Astoria Financial Corp. ............................... 15,037
1,000 Charter One Financial, Inc. ........................... 31,250
700 Dime Bancorp, Inc. .................................... 16,144
----------
62,431
----------
SECURITIES RELATED - 2.36%
700 A.G. Edwards, Inc. .................................... 24,500
700 * E*Trade Group, Inc. ................................... 80,850
900 Paine Webber Group, Inc. .............................. 42,243
----------
147,593
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 15
MID CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT - 0.17%
300 * Microchip Technology, Inc. ............................ $ 10,500
----------
SEMICONDUCTORS - 4.53%
600 * Altera Corp. .......................................... 43,350
1,000 * Analog Devices, Inc. .................................. 35,125
600 * Atmel Corp. ........................................... 10,950
200 Avnet, Inc. ........................................... 8,488
500 * Cirrus Logic, Inc. .................................... 3,531
600 * Cypress Semiconductor Corp. ........................... 6,150
900 Linear Technology Corp. ............................... 51,187
800 * Maxim Integrated Products, Inc. ....................... 44,800
300 Sanmina Corp........................................... 19,913
500 * Vitesse Semiconductor Corp. ........................... 23,156
800 * Xilinx, Inc. .......................................... 36,500
----------
283,150
----------
TELECOMMUNICATIONS - 2.23%
800 * ADC Telecommunications, Inc. .......................... 38,250
300 COMSAT Corp. .......................................... 9,750
400 * QUALCOMM, Inc. ........................................ 80,000
100 * Sanmina Corp. ......................................... 6,637
200 * Vanguard Cellular Systems, Class A..................... 4,563
----------
139,200
----------
TEXTILE - PRODUCTS - 1.12%
300 * Burlington Industries, Inc. ........................... 2,437
700 * Jones Apparel Group, Inc. ............................. 23,100
400 * Mohawk Industries, Inc. ............................... 12,900
800 * Shaw Industries, Inc. ................................. 14,500
400 * Unifi, Inc. ........................................... 5,600
100 Wellman, Inc. ......................................... 1,431
300 * WestPoint Stevens, Inc., Class A....................... 10,275
----------
70,243
----------
TOBACCO - 0.08%
200 Universal Corp. ....................................... 5,087
----------
TRUCKERS - 0.24%
100 Arnold Industries, Inc. ............................... 1,588
300 CNF Transportation, Inc. .............................. 13,105
----------
14,693
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
UTILITIES - COMMUNICATION - 0.81%
200 Aliant Communications, Inc. ........................... $ 8,850
800 Cincinnati Bell, Inc. ................................. 18,100
400 Telephone and Data Systems, Inc. ...................... 23,949
----------
50,899
----------
UTILITIES - ELECTRIC - 6.95%
700 Allegheny Energy, Inc. ................................ 23,844
100 Black Hills Corp. ..................................... 2,263
100 Cleco Corp. ........................................... 3,088
600 Conectiv, Inc. ........................................ 14,363
1,000 DPL, Inc. ............................................. 17,875
800 Energy East Corp. ..................................... 21,150
600 Florida Progress Corp. ................................ 23,100
200 Hawaiian Electric Industries, Inc. .................... 7,113
300 Idacorp, Inc. ......................................... 9,450
400 Illinova Corp. ........................................ 10,500
100 Indiana Energy, Inc. .................................. 2,138
400 Interstate Energy Corp. ............................... 11,525
600 IPALCO Enterprises, Inc. .............................. 13,838
400 Kansas City Power & Light Co. ......................... 10,700
800 LG&E Energy Corp. ..................................... 17,450
400 * Midamerican Energy Holdings Co. ....................... 12,875
400 Minnesota Power, Inc. ................................. 8,425
300 Montana Power Co. ..................................... 22,369
400 Nevada Power Co. ...................................... 10,325
400 New England Electric System............................ 19,800
700 Nisource, Inc. ........................................ 19,425
700 * Northeast Utilities.................................... 11,200
400 OGE Energy Corp. ...................................... 9,475
500 Pinnacle West Capital Corp. ........................... 19,406
700 Potomac Electric Power Co. ............................ 20,475
300 Public Service Co. of New Mexico....................... 5,362
500 Puget Sound Energy, Inc. .............................. 12,344
700 Scana Corp. ........................................... 16,450
800 TECO Energy, Inc. ..................................... 17,050
600 UtiliCorp United, Inc. ................................ 14,663
300 Washington Gas Light Co. .............................. 7,068
700 Wisconsin Energy Corp. ................................ 18,813
----------
433,922
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
UTILITIES - GAS, DISTRIBUTION - 1.19%
400 AGL Resources, Inc. .................................. $ 7,274
900 Keyspan Energy........................................ 24,075
500 MCN Energy Group, Inc. ............................... 9,968
200 National Fuel Gas Co. ................................ 8,750
900 Tosco Corp. .......................................... 24,144
----------
74,211
----------
WATER SERVICES - 0.23%
500 American Water Works Co., Inc. ....................... 14,220
----------
TOTAL COMMON STOCK
(Cost $4,872,763)..................................... 5,344,475
----------
<CAPTION>
PAR
VALUE
---------
<C> <S> <C>
GOVERNMENT SPONSORED -
SHORT TERM - 13.97%
$873,000 Federal Home Loan Bank,
4.80% due 05/03/99.................................... 872,767
----------
TOTAL GOVERNMENT SPONSORED -
SHORT TERM
(Cost $872,767)....................................... 872,767
----------
UNITED STATES GOVERNMENT -
SHORT TERM - 1.20%
UNITED STATES TREASURY BILLS - 1.20%
75,000 United States Treasury Bills,
4.17% due 06/10/99.................................... 74,983
----------
TOTAL UNITED STATES GOVERNMENT - SHORT TERM
(Cost $74,983)........................................ 74,983
----------
TOTAL INVESTMENTS
(Cost $5,820,513) - 100.75%........................... 6,292,225
Other assets less liabilities,
net - (0.75%)......................................... (46,815)
----------
NET ASSETS (equivalent to $11.64 per share for 255,193
Class A shares and $11.64 per share for 281,328 Class
B shares outstanding) - 100.00%....................... $6,245,410
----------
*Non-income producing
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
16 April 30, 1999 (Unaudited)
MID CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS APPRECIATION
<C> <S> <C>
- --------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED(1)
4(2) (Delivery month/Value at 04/30/99)
MidCap 400 Index Futures
(June/$396.10)..................................... $ 49,425
----------
</TABLE>
(1) U.S. Treasury Bills with a market value of approximately $75,000 were
maintained in a segregated account with a portion placed as collateral for
futures contracts.
(2) Per 500.
<TABLE>
<CAPTION>
<S> <C> <C>
- -----------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 536,521 shares outstanding.......... $ 5,365
Additional paid in capital....................................... 5,395,003
Undistributed net realized gain on securities.................... 324,324
Undistributed net investment income.............................. (419)
Unrealized appreciation of:
Investments......................................... $471,712
Futures contracts................................... 49,425 521,137
----------- ----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING............................................ $6,245,410
----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
- -------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($2,971,410 divided by 255,193 shares)...................... $ 11.64
-----------
Offering price per Class A share
(100/94.25 of $11.64)*............................................ $ 12.35
-----------
Net asset value and offering price per Class B
share ($3,274,000 divided by 281,328 shares)**.................... $ 11.64
-----------
* Offering price includes sales charge of 5.75%.
The sales charge is reduced for purchases of $25,000 and over.
** Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
17
MID CAP INDEX FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends............................................................ $ 31,776
Interest............................................................. 12,597
--------
Total investment income............................................. 44,373
--------
EXPENSES:
Advisory fees........................................................ 7,614
Transfer agent fees.................................................. 7,484
Custodian fees....................................................... 3,807
Distribution fees:
Class A............................................................. 3,349
Class B............................................................. 13,796
Registration and filing fees......................................... 16,180
Audit fees and tax services.......................................... 1,909
Accounting services.................................................. 834
Trustees' fees and expenses.......................................... 820
Report to shareholders............................................... 154
Miscellaneous........................................................ 201
--------
Total expenses...................................................... 56,148
Expense reimbursement (see Note 3).................................. (21,617)
--------
Net expenses........................................................ 34,531
--------
NET INVESTMENT INCOME................................................ 9,842
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain (loss) on securities:
Investments................................................ $333,460
Futures contracts.......................................... (9,136) 324,324
--------
Net unrealized appreciation of securities during the period:
Investments................................................ 471,712
Futures contracts.......................................... 49,425 521,137
-------- --------
Net realized and unrealized gain on securities during the period... 845,461
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $855,303
--------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income....................... $ 9,842 $ -
Net realized gain on securities............. 324,324 -
Net unrealized appreciation of securities
during the period........................... 521,137 -
---------------------------------
Increase in net assets resulting from
operations................................. 855,303 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (10,261) -
Class B.................................... - -
---------------------------------
Total distributions to shareholders from
net investment income..................... (10,261) -
---------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (10,261) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 2,556,332 2,500
Class B.................................... 2,839,036 2,500
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 5,395,368 5,000
---------------------------------
TOTAL INCREASE IN NET ASSETS................ 6,240,410 5,000
NET ASSETS:
Beginning of year.......................... 5,000 -
---------------------------------
End of period (including undistributed net
investment income of ($419) and $0)........ $6,245,410 $5,000
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ----------------------------------------- -----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------- -------------------- ------------------- --------------------
Shares sold............. 254,142 $2,546,937 250 $ 2,500 282,116 $2,850,432 250 $ 2,500
Shares issued for
distributions
reinvested.............. 884 10,261 - - - - - -
Shares repurchased...... (83) (866) - - (1,038) (11,396) - -
------------------- -------------------- ------------------- --------------------
Increase in shares
outstanding............. 254,943 2,556,332 250 2,500 281,078 2,839,036 250 2,500
Shares outstanding:
Beginning of period..... 250 2,500 - - 250 2,500 - -
------------------- -------------------- ------------------- --------------------
End of period........... 255,193 $2,558,832 250 $ 2,500 281,328 $2,841,536 250 $2,500
------------------- -------------------- ------------------- --------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
18 April 30, 1999 (Unaudited)
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 92.51%
ADVERTISING - 0.94%
100 * ADVO, Inc. ............................................ $ 1,974
100 * Catalina Marketing Corp. .............................. 8,543
200 * Doubleclick, Inc. ..................................... 27,962
200 * Getty Images, Inc. .................................... 5,200
150 * HA-LO Industries, Inc. ................................ 1,763
200 * NFO Worldwide, Inc. ................................... 2,263
200 * Westwood One, Inc. .................................... 6,850
----------
54,555
----------
AEROSPACE/DEFENSE - 0.51%
77 * Alliant Techsystems, Inc. ............................. 6,303
200 * Aviall, Inc. .......................................... 3,188
200 * Be Aerospace, Inc. .................................... 3,413
100 Cubic Corp. ........................................... 2,237
200 * Fairchild Corp., Class A............................... 2,688
300 Gencorp, Inc. ......................................... 6,938
100 * Remec, Inc. ........................................... 1,293
300 * Trimble Navigation, Ltd. .............................. 3,478
----------
29,538
----------
AIRLINES - 0.90%
600 * Airtran Holdings, Inc. ................................ 3,150
200 * Alaska Air Group, Inc. ................................ 8,812
300 * American West Holdings Corp., Class B.................. 6,263
100 * Atlantic Coast Airlines Holdings, Inc. ................ 3,087
150 * Atlas Air, Inc. ....................................... 4,350
200 Circle International Group, Inc. ...................... 3,400
200 Expeditors International of
Washington, Inc. ...................................... 12,124
100 * Midwest Express Holdings, Inc. ........................ 3,125
200 SkyWest, Inc. ......................................... 5,200
500 * Transport World Airls, Inc. ........................... 2,719
----------
52,230
----------
APPAREL & PRODUCTS - 1.36%
100 * Ann Taylor Stores Corp. ............................... 4,750
200 Authentic Fitness Corp. ............................... 3,449
100 * Children's Place, Inc. ................................ 3,625
300 Claire's Stores, Inc. ................................. 9,937
200 * Donna Karan International, Inc. ....................... 1,713
200 * Dress Barn, Inc. ...................................... 2,925
200 * Footstar, Inc. ........................................ 6,763
100 * Gadzooks, Inc. ........................................ 950
100 * Galey & Lord, Inc. .................................... 456
200 * Goodys Family Clothing, Inc. .......................... 1,800
100 * Guess?, Inc. .......................................... 763
200 * Jo-ann Stores, Inc. ................................... 3,225
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
APPAREL & PRODUCTS - Continued
200 Kellwood Co. .......................................... $ 5,150
100 * Land's End, Inc. ...................................... 3,825
300 * Nautica Enterprises, Inc. ............................. 4,069
300 * Oakley, Inc. .......................................... 2,063
100 * Pacific Sunwear of California, Inc. ................... 3,709
150 * Quicksilver, Inc. ..................................... 3,984
100 St. John Knits, Inc. .................................. 2,719
200 * Stage Stores, Inc. .................................... 1,288
100 Talbots, Inc. ......................................... 3,150
200 The Men's Wearhouse, Inc. ............................. 5,474
200 * Urban Outfitters, Inc. ................................ 3,875
----------
79,662
----------
APPLIANCES/FURNISHINGS - 0.71%
100 Bassett Furniture Industries, Inc. .................... 2,400
200 * CORT Business Services Corp. .......................... 4,612
300 * Griffon Corp. ......................................... 2,194
100 Haverty Furniture Companies, Inc. ..................... 2,363
300 Heilig-Meyers Co. ..................................... 1,763
300 Hussmann International, Inc. .......................... 4,763
200 Kimball International, Inc., Class B................... 3,200
300 La-Z-Boy Chair Co. .................................... 5,905
200 * Metromedia International Group, Inc. .................. 1,175
100 National Presto Industries, Inc. ...................... 3,494
200 Oneida, Ltd. .......................................... 4,824
100 * SLI, Inc. ............................................. 2,744
200 * Windmere Corp. ........................................ 2,300
----------
41,737
----------
AUTO - CARS - 0.21%
200 * Avis Rent A Car, Inc. ................................. 6,274
100 * Budget Group, Inc. .................................... 1,244
100 * Rent-A-Center, Inc. ................................... 3,100
200 * United Auto Group, Inc. ............................... 1,950
----------
12,568
----------
AUTO - ORIGINAL EQUIPMENT - 0.82%
300 * Allen Telecom, Inc. ................................... 2,811
200 Arvin Industries, Inc. ................................ 7,325
300 Donaldson Co., Inc. ................................... 6,713
200 * Hayes Lemmerz International, Inc. ..................... 5,750
300 Mark IV Industries, Inc. .............................. 5,363
400 * Miller Industries, Inc. ............................... 2,025
200 Modine Manufacturing Co. .............................. 6,250
200 Superior Industries International, Inc. ............... 5,000
300 * Tower Automotive, Inc. ................................ 6,900
----------
48,137
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
AUTO - REPLACEMENT PARTS - 0.87%
200 A.O. Smith Corp. ...................................... $ 5,050
500 * Collins & Aikman Corp. ................................ 2,374
100 * CSK Auto Corp. ........................................ 2,500
200 Furon Co. ............................................. 3,575
200 Kaydon Corp. .......................................... 6,750
100 Midas, Inc. ........................................... 3,500
200 Myers Industries, Inc. ................................ 4,525
100 * O'Reilly Automotive, Inc. ............................. 4,575
200 * SPX Corp. ............................................. 13,062
300 * Tyler Corp. ........................................... 1,763
200 Wynn's International, Inc. ............................ 3,350
----------
51,024
----------
BANKS - OTHER - 0.32%
100 First Bancorp.......................................... 2,580
100 Irwin Financial Corp. ................................. 2,388
200 Republic Security Financial Co. ....................... 1,738
220 Sky Financial Group, Inc. ............................. 6,188
100 Sterling Bancshares, Inc. ............................. 1,250
300 Westernbank Puerto Rico................................ 4,425
----------
18,569
----------
BANKS - REGIONAL - 6.08%
100 AMCORE Financial, Inc. ................................ 2,100
200 Anchor BanCorp Wisconsin, Inc. ........................ 3,674
100 BancFirst Ohio Corp. .................................. 2,638
200 BancorpSouth, Inc. .................................... 3,325
200 Bancwest Corporation................................... 7,963
400 Bank Atlantic Bancorp., Class B........................ 3,213
300 * Bank Plus Corp. ....................................... 1,388
100 Banknorth Group, Inc. ................................. 2,644
200 Brenton Banks, Inc. ................................... 3,175
100 BSB Bancorp, Inc. ..................................... 2,569
200 BT Financial Corp. .................................... 5,063
200 Carolina First Corp. .................................. 5,400
220 * Centennial Bancorp..................................... 2,819
125 Chemical Financial Corp. .............................. 4,125
200 Citizens Banking Corp. ................................ 6,513
211 City Holding Co. ...................................... 6,227
200 CNB Bancshares, Inc. .................................. 8,487
105 Commerce Bancorp, Inc. ................................ 4,633
500 Commercial Federal Corp. .............................. 12,124
200 Commonwealth Bancorp, Inc. ............................ 3,100
100 Community Bank System, Inc. ........................... 2,531
400 Community First Bankshares............................. 8,175
100 Cullen/Frost Bankers, Inc. ............................ 5,394
100 F & M Bancorporation, Inc. ............................ 3,950
100 F&M National Corp. .................................... 2,781
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 19
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BANKS - REGIONAL - Continued
300 First American Financial Corp., Class A................ $ 5,363
100 First Commerce Bancshares, Inc., Class B............... 2,525
200 First Commonwealth Financial Corp. .................... 4,375
110 First Financial Bancorp................................ 2,379
100 First Midwest Bancorp, Inc. ........................... 3,994
200 First United Bancshares................................ 3,025
100 First Western Bancorp, Inc. ........................... 3,388
132 FirstMerit Corp. ...................................... 3,671
100 FNB Corp. ............................................. 2,463
100 GBC Bancorp............................................ 1,769
110 Grand Premier Financial, Inc. ......................... 1,238
100 Greater Bay Bancorp.................................... 3,013
62 GreenPoint Financial Corp. ............................ 2,170
100 * Hamilton Bancorp, Inc. ................................ 2,575
300 Hudson United Bancorp.................................. 10,613
208 * Imperial Bancorp....................................... 4,004
400 Independence Community Bank Corp. ..................... 5,825
200 Independent Bank Corp. ................................ 2,688
100 International Bancshares Corp. ........................ 4,988
100 InterWest Bancorp, Inc. ............................... 2,325
100 JeffBanks, Inc. ....................................... 2,125
100 Merchants New York Bancorp............................. 3,475
210 NBT Bancorp, Inc. ..................................... 4,489
100 National Bancorp of Alaska............................. 2,675
105 National City Bancshares, Inc. ........................ 2,920
100 National Penn Bancshares, Inc. ........................ 2,300
200 Ocean Financial Corp. ................................. 3,150
210 Old National Bancorp Indiana........................... 10,684
100 Omega Financial Corp. ................................. 3,550
200 One Valley Bancorp, Inc. .............................. 7,700
200 Pacific Capital Bancorp................................ 5,338
300 Peoples Bancorp, Inc. ................................. 3,168
200 Premier Bancshares, Inc. .............................. 3,925
100 Prime Bancorp.......................................... 2,755
100 * Republic Bancshares, Inc. ............................. 2,200
100 Republic Banking Corp. of Florida...................... 1,863
200 Riggs National Corp. .................................. 3,375
405 Roslyn Bancorp, Inc. .................................. 7,391
100 S&T Bancorp, Inc. ..................................... 2,550
100 Sandy Spring Bancorp, Inc. ............................ 2,843
100 Shoreline Financial Corp. ............................. 2,675
200 * Silicon Valley Bancshares.............................. 3,512
200 * Southwest Bancorporation of Texas, Inc. ............... 3,375
200 St. Paul Bancorp, Inc. ................................ 4,850
100 Sterling Bancorp....................................... 2,075
200 Susquehanna Bancshares, Inc. .......................... 3,700
200 Texas Regional Bancshares, Class A..................... 5,731
200 Triangle Bancorp, Inc. ................................ 3,250
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BANKS - REGIONAL - Continued
100 Trust Co. of New Jersey................................ $ 2,287
100 TrustCo Bank Corp. NY.................................. 2,675
100 UMB Financial Corp. ................................... 4,155
300 United Bankshares, Inc. ............................... 8,100
200 USBANCORP, Inc. ....................................... 3,175
200 UST Corp. ............................................. 4,837
100 Vermont Financial Services Corp. ...................... 3,080
200 Webster Financial Corp. ............................... 6,150
100 West Coast Bancorp..................................... 1,725
300 Westamerica Bankcorporation............................ 10,013
200 Western Bancorp........................................ 7,187
200 Whitney Holding Corp. ................................. 8,100
----------
355,530
----------
BEVERAGE -
BREWERS/DISTRIBUTORS - 0.37%
200 Adolph Coors Co., Class B.............................. 10,700
100 * Beringer Wine Estates Holdings, Inc.,
Class B................................................ 3,936
200 * Boston Beer, Inc., Class A............................. 1,688
100 * Canandaigua Brands, Inc., Class A...................... 5,150
----------
21,474
----------
BROADCASTING - 1.15%
200 Ackerley Group, Inc. .................................. 3,437
100 * Adelphia Communications Corp., Class A................. 6,825
200 * ANTEC Corp. ........................................... 5,425
100 * CD Radio, Inc. ........................................ 2,450
200 * Century Communications Corp., Class A.................. 9,813
100 * Cox Radio, Inc., Class A............................... 4,874
100 * Emmis Communications Corp., Class A.................... 4,500
100 * Jones Intercable, Inc. ................................ 4,637
200 * Paxson Communications Corp. ........................... 2,138
300 * United International Holdings, Inc.,
Class A ............................................... 17,925
300 * US Satellite Broadcasting, Inc., Class A............... 5,363
----------
67,387
----------
BUILDING MATERIALS - 0.93%
300 Apogee Enterprises, Inc. .............................. 3,674
200 * Comfort Systems USA, Inc. ............................. 3,150
100 * Cooper Companies, Inc. ................................ 1,575
300 * Dal-Tile International, Inc. .......................... 3,375
100 Elcor Corp. ........................................... 3,863
400 Fedders USA, Inc. ..................................... 2,300
100 Florida Rock Industries, Inc. ......................... 3,437
100 * Giant Cement Holding, Inc. ............................ 2,213
400 Interface, Inc., Class A............................... 2,825
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BUILDING MATERIALS - Continued
100 Lone Star Industries, Inc. ............................ $ 3,568
128 Lowe's Companies, Inc. ................................ 6,752
200 * NCI Building Systems, Inc. ............................ 4,813
100 * Nortek, Inc. .......................................... 2,894
200 Texas Industries, Inc. ................................ 6,175
200 Watsco, Inc. .......................................... 3,925
----------
54,539
----------
CHEMICAL - MAJOR - 0.33%
200 Albemarle Corp. ....................................... 4,400
100 Borg-Warner Automotive, Inc. .......................... 5,674
100 * Synetic, Inc. ......................................... 9,444
----------
19,518
----------
CHEMICAL - MISCELLANEOUS - 1.72%
300 A. Schulman, Inc. ..................................... 5,250
300 * Agribiotech, Inc. ..................................... 2,306
300 * Airgas, Inc. .......................................... 3,525
100 Brady Corp. ........................................... 2,587
200 Cambrex Corp. ......................................... 5,125
200 ChemFirst, Inc. ....................................... 4,775
100 Dexter Corp. .......................................... 4,106
200 Ethyl Corp. ........................................... 1,025
200 Ferro Corp. ........................................... 5,537
300 * Fisher Scientific International., Inc. ................ 5,588
200 * Foamex International, Inc. ............................ 1,163
100 General Chemical Group, Inc. .......................... 1,831
200 Geon, Co. ............................................. 6,125
300 Georgia Gulf Corp. .................................... 4,781
100 H.B. Fuller Co. ....................................... 6,813
300 Lawter International, Inc. ............................ 3,600
200 M.A. Hanna Co. ........................................ 3,237
100 MacDermid, Inc. ....................................... 4,194
100 Minerals Technologies, Inc. ........................... 5,400
200 * Octel Corp. ........................................... 2,800
200 OM Group, Inc. ........................................ 7,275
300 Procurenet, Inc. ...................................... 45
200 Rollins, Inc. ......................................... 3,375
100 Stepan Co. ............................................ 2,525
100 * The Carbide/Graphite Group, Inc. ...................... 1,300
100 * Thermo Optek Corp. .................................... 875
100 * VWR Scientific Products Corp. ......................... 2,563
100 WD-40 Co. ............................................. 2,675
----------
100,401
----------
CONGLOMERATES - 0.07%
200 Alexander & Baldwin, Inc. ............................. 4,350
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
20 April 30, 1999 (Unaudited)
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CONSUMER FINANCE - 0.43%
300 * AmeriCredit Corp. ..................................... $ 4,968
200 Chittenden Corp. ...................................... 5,750
100 Eaton Vance Corp. ..................................... 2,281
400 * IMC Mortgage Co. ...................................... 63
100 Metris Companies, Inc. ................................ 6,113
200 WesBanco, Inc. ........................................ 5,725
----------
24,900
----------
CONTAINERS - METAL/GLASS - 0.50%
300 AptarGroup, Inc. ...................................... 8,400
200 Ball Corp. ............................................ 10,987
300 CLARCOR, Inc. ......................................... 5,625
100 Greif Brothers Corp., Class A.......................... 2,538
100 * Silgan Holdings, Inc. ................................. 1,725
----------
29,275
----------
CONTAINERS - PAPER - 0.23%
100 Chesapeake Corp. ...................................... 3,250
300 * Gaylord Container Corp., Class A....................... 2,513
200 * Ivex Packaging Corp. .................................. 3,937
200 * Shorewood Packaging Corp. ............................. 3,950
----------
13,650
----------
COSMETICS/TOILETRIES - 0.06%
200 * Playtex Products, Inc. ................................ 3,300
----------
DRUG - 2.89%
200 * Agouron Pharmaceuticals, Inc. ......................... 11,813
100 * Algos Pharmaceuticals Corp. ........................... 2,913
200 * Alkermes, Inc. ........................................ 5,350
200 ALPharma Inc., Class A................................. 5,900
80 * ALZA Corp. ............................................ 2,685
200 * AmeriSource Health Corp., Class A...................... 5,538
83 Bergen Brunswig Corp., Class A......................... 1,568
100 Bindley Western Industries, Inc. ...................... 3,088
100 Carter-Wallace, Inc. .................................. 1,756
100 * Chirex, Inc. .......................................... 2,600
300 * Columbia Laboratories, Inc. ........................... 2,344
100 * Coulter Pharmaceutical, Inc. .......................... 2,013
400 * Covance, Inc. ......................................... 8,775
400 * Dura Pharmaceuticals, Inc. ............................ 4,800
100 * GelTex Pharmaceuticals, Inc. .......................... 1,713
700 * Gensia, Inc. .......................................... 2,450
200 Herbalife International, Inc., Class A................. 2,075
100 * Human Genome Sciences, Inc. ........................... 3,700
200 * ICOS Corp. ............................................ 7,950
100 * IDEC Pharmaceuticals Corp. ............................ 5,075
100 * Incyte Pharmaceuticals, Inc. .......................... 1,806
100 * Inhale Therapeutic Systems, Inc. ...................... 2,875
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
DRUG - Continued
600 * IVAX Corp. ............................................ $ 7,874
100 Jones Pharma, Inc. .................................... 3,213
100 * K-V Pharmaceutical Co., Class B........................ 1,550
100 Life Technologies, Inc. ............................... 3,675
300 * Ligand Pharmaceuticals, Inc., Class B.................. 2,962
200 * MacroChem Corp. ....................................... 1,975
150 * Medicis Pharmaceutical, Class A........................ 3,647
200 * Millennium Pharmaceuticals, Inc. ...................... 7,437
200 Natures Sunshine Products, Inc. ....................... 2,137
100 * Neurogen Corp. ........................................ 1,075
300 * NeXstar Pharmaceuticals, Inc. ......................... 5,193
200 * Parexel International Corp. ........................... 4,812
100 * Pathogenesis Corp. .................................... 1,313
400 * P-Com, Inc. ........................................... 2,338
100 * Pharmacyclics, Inc. ................................... 1,425
100 * Roberts Pharmaceutical Corp. .......................... 1,700
100 * SangStat Medical Corp. ................................ 1,450
100 * Schein Pharmaceutical, Inc. ........................... 1,280
200 * Sepracor, Inc. ........................................ 16,900
100 * SuperGen, Inc. ........................................ 1,356
200 * Vertex Pharmaceuticals, Inc. .......................... 4,225
100 * ViroPharma, Inc. ...................................... 663
400 * Vivus, Inc. ........................................... 1,900
----------
168,887
----------
ELECTRIC PRODUCTS -
MISCELLANEOUS - 0.14%
300 CMP Group, Inc. ....................................... 5,813
100 Harmon Industries, Inc. ............................... 2,200
----------
8,013
----------
ELECTRICAL EQUIPMENT - 1.42%
300 * AMETEK, Inc. .......................................... 6,844
400 * Amkor Technology, Inc. ................................ 3,900
100 * Amphenol Corp., Class A................................ 3,456
300 Avista Corp. .......................................... 4,500
200 Belden, Inc. .......................................... 3,850
100 C&D Technologies, Inc. ................................ 2,581
200 * Cable Design Technologies Corp. ....................... 2,975
300 * Digital Microwave Corp. ............................... 3,825
100 DT Industries, Inc. ................................... 900
200 * Encore Wire Corp. ..................................... 2,200
200 * Esterline Technologies Corp. .......................... 2,825
200 General Cable Corp. ................................... 2,975
300 * General Semiconductor, Inc. ........................... 2,250
200 * GenRad, Inc. .......................................... 3,700
100 * Holophane Corp. ....................................... 2,581
200 * Hutchinson Technology, Inc. ........................... 4,413
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - Continued
400 * Intergraph Corp. ...................................... $ 2,675
100 Juno Lighting, Inc. ................................... 2,275
300 * Kemet Corp. ........................................... 4,630
200 * Kent Electronics Corp. ................................ 1,863
200 * Littelfuse, Inc. ...................................... 4,025
200 * Mail-Well, Inc. ....................................... 2,613
200 * NeoMagic Corp. ........................................ 2,338
100 * Plexus Corp. .......................................... 3,337
100 * Triumph Group, Inc. ................................... 2,713
200 * Vicor Corp. ........................................... 2,813
----------
83,057
----------
ELECTRONIC INSTRUMENTS - 2.60%
300 BMC Industries, Inc. .................................. 2,681
200 * C-Cube Microsystems, Inc. ............................. 4,525
300 * Checkpoint Systems, Inc. .............................. 2,944
200 * Cognex Corp. .......................................... 5,800
300 * Commscope, Inc. ....................................... 7,313
100 CTS Corp. ............................................. 5,337
200 Daniel Industries, Inc. ............................... 3,288
200 * Dionex Corp. .......................................... 8,200
400 * Gentex Corp. .......................................... 12,025
200 * Gerber Scientific, Inc. ............................... 3,763
100 Hadco Corp. ........................................... 2,625
100 Harman International Industries........................ 4,594
300 * Imation Corp. ......................................... 5,306
600 * Integrated Device Technology, Inc. .................... 4,425
400 * InterDigital Communication Corp. ...................... 1,825
100 * Lattice Semiconductor Corp. ........................... 4,088
200 * LoJack Corp. .......................................... 1,550
100 * MagnaTek, Inc. ........................................ 1,081
200 * Marshall Industries.................................... 3,225
200 Methode Electronics, Inc., Class A..................... 2,975
200 * Metromedia Fiber Network, Inc. ........................ 16,849
300 * Mettler-Toledo International, Inc. .................... 7,837
200 National Computer Systems, Inc. ....................... 5,600
100 * Performance Food Group Co. ............................ 2,650
300 Pioneer-Standard Electronics, Inc. .................... 2,513
300 * Read-Rite Corp. ....................................... 1,856
100 * Rogers Corp. .......................................... 2,963
100 * Sawtek, Inc. .......................................... 3,524
100 * Semtech Corp. ......................................... 3,263
500 * Sensormatic Electronics Corp. ......................... 6,000
200 * Spectra-Physics Lasers, Inc. .......................... 1,825
100 Technitrol, Inc. ...................................... 2,925
200 * Thermedics, Inc. ...................................... 1,500
300 * Vishay Intertechnology, Inc. .......................... 5,231
----------
152,106
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 21
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
ENTERTAINMENT - 0.85%
100 * Ascent Entertainment Group, Inc. ...................... $ 1,063
100 * Carmike Cinemas, Inc., Class A......................... 2,156
200 Dover Downs Entertainment, Inc. ....................... 3,337
200 * Florida Panthers Holdings, Inc. ....................... 1,775
100 Gaylord Entertainment Co. ............................. 3,100
300 * GTECH Holdings Corp. .................................. 7,818
200 * Hollywood Entertainment Corp. ......................... 4,937
100 International Speedway Corp. .......................... 5,150
200 * Marvel Enterprises, Inc. .............................. 1,875
200 * Midway Games, Inc. .................................... 1,713
200 * Playboy Enterprises, Inc. ............................. 6,438
100 * SFX Entertainment, Inc., Class A....................... 6,175
300 * Spelling Entertainment Group, Inc. .................... 2,663
100 * Trans World Entertainment Corp. ....................... 1,531
----------
49,731
----------
FERTLIIZERS - 0.02%
100 Mississippi Chemical Corp. ............................ 913
----------
FINANCE COMPANIES - 0.37%
400 * Aames Financial Corp. ................................. 700
200 Charter Municipal Mortgage
Acceptance Co. ........................................ 2,575
200 Doral Financial Corp. ................................. 3,525
100 * First Sierra Financial, Inc. .......................... 2,488
100 Freedom Securities Corp. .............................. 1,819
300 * Imperial Credit Industries, Inc. ...................... 2,418
100 Oriental Financial Group, Inc. ........................ 2,881
400 Phoenix Investment Partners, Ltd. ..................... 3,950
200 * UniCapital Corp. ...................................... 1,250
----------
21,606
----------
FINANCIAL SERVICES - 0.85%
100 Advest Group, Inc. .................................... 2,025
100 * Affiliated Managers Group, Inc. ....................... 2,906
100 * Ameritrade Holding Corp., Class A...................... 13,356
200 Conning Corp. ......................................... 3,300
100 EVEREN Capital Corp. .................................. 2,938
100 * HealthCare Financial Partners, Inc. ................... 3,375
100 * International Telecommunication
Data Systems, Inc. .................................... 1,131
100 Investment Technology Group, Inc. ..................... 3,463
100 Jefferies Group, Inc. ................................. 2,288
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
FINANCIAL SERVICES - Continued
200 Resource America, Inc. ................................ $ 2,475
200 Richmond Count Financial Corp. ........................ 3,287
100 Southwest Securities Group, Inc. ...................... 5,294
100 * The Profit Recovery Group
International, Inc. ................................... 3,650
----------
49,488
----------
FOODS - 0.98%
100 * Agribrands International, Inc. ........................ 3,500
100 * American Italian Pasta Co., Class A.................... 2,688
300 Chiquita Brands International, Inc. ................... 3,000
200 Corn Products International, Inc. ..................... 5,775
300 Earthgrains Co. ....................................... 6,355
200 Imperial Sugar Co. .................................... 1,425
100 International Multifoods Corp. ........................ 2,213
100 Lance, Inc. ........................................... 1,387
100 Michael Foods, Inc. ................................... 2,288
300 * NBTY, Inc. ............................................ 1,519
100 * Omega Protein Corp. ................................... 506
255 * Ralcorp Holdings, Inc. ................................ 4,686
400 Richfood Holdings, Inc. ............................... 5,000
300 Smucker, J.M. Co., Class A............................. 6,450
300 Universal Foods Corp. ................................. 6,300
200 * Vlasic Foods International, Inc. ...................... 1,637
100 * Wild Oats Markets, Inc. ............................... 2,769
----------
57,498
----------
FOOTWEAR - 0.39%
200 Brown Group, Inc. ..................................... 3,263
300 * Genesco, Inc. ......................................... 3,263
200 * Just For Feet, Inc. ................................... 2,525
200 * Nine West Group, Inc. ................................. 5,700
400 Stride Rite Corp. ..................................... 4,674
300 Wolverine World Wide, Inc. ............................ 3,600
----------
23,025
----------
FREIGHT - 0.44%
300 Air Express International Corp. ....................... 6,562
100 * Coach USA, Inc. ....................................... 2,375
200 J.B. Hunt Transport Services, Inc. .................... 4,163
200 * Kirby Corp. ........................................... 3,800
300 Overseas Shipholding Group, Inc. ...................... 3,750
100 * SEACOR SMIT, Inc. ..................................... 5,294
----------
25,944
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
FUNERAL SERVICES - 0.03%
100 * Carriage Services, Inc. ............................... $ 1,919
----------
GOLD MINING - 0.19%
1,500 Battle Mountain Gold Co. .............................. 4,219
200 * Getchell Gold Corp. ................................... 6,825
----------
11,044
----------
HARDWARE & TOOLS - 0.05%
100 Barnes Group, Inc. .................................... 2,106
100 * Barnett, Inc. ......................................... 963
----------
3,069
----------
HEALTHCARE - 2.18%
100 Alternative Living Services............................ 2,225
200 * American Oncology Resources, Inc. ..................... 1,787
100 * Ameripath, Inc. ....................................... 938
200 * Apria Healthcare Group, Inc. .......................... 3,125
103 Block Drug Co., Inc., Class A.......................... 3,618
100 * Brookdale Living Communities, Inc. .................... 1,513
100 * CareMatrix Corp. ...................................... 1,713
100 * Curative Technologies, Inc. ........................... 563
300 * Genesis Health Ventures, Inc. ......................... 2,081
100 * Hanger Orthopedic Group, Inc. ......................... 1,463
100 Henry Schein, Inc. .................................... 2,619
200 Hooper Holmes, Inc. ................................... 3,188
200 * ImClone Systems, Inc. ................................. 3,613
200 Invacare Corp. ........................................ 4,625
600 * Mariner Post-Acute Network, Inc. ...................... 2,063
100 * MAXIMUS, Inc. ......................................... 2,600
100 * Medquist, Inc. ........................................ 3,424
200 Mentor Corp. .......................................... 2,900
500 * NovaCare, Inc. ........................................ 843
100 * Ocular Sciences, Inc. ................................. 3,050
600 * Oxford Health Plans, Inc. ............................. 11,963
200 * Patterson Dental Co. .................................. 7,212
100 * Pharmaceutical Product
Development, Inc. ..................................... 2,913
600 * PhyCor, Inc. .......................................... 3,000
200 * Physician Reliance Network, Inc. ...................... 1,650
233 * Quintiles Transnational Corp. ......................... 9,458
200 * Renal Care Group, Inc. ................................ 4,175
200 * Respironics, Inc. ..................................... 2,824
200 * Sierra Health Services, Inc. .......................... 2,500
500 * Sun Healthcare Group, Inc. ............................ 750
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
22 April 30, 1999 (Unaudited)
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
HEALTHCARE - Continued
200 * Sunrise Medical, Inc. ................................. $ 1,450
100 * United Payors & Providers, Inc ........................ 1,763
600 * Vencor, Inc. .......................................... 525
200 * VISX, Inc. ............................................ 25,749
100 Vital Signs, Inc. ..................................... 2,100
400 * Zila, Inc. ............................................ 1,600
----------
127,583
----------
HEAVY DUTY TRUCKS/PARTS - 0.31%
100 Bandag, Inc. .......................................... 3,187
100 Detroit Diesel Corp. .................................. 2,288
200 Federal Signal Corp. .................................. 4,950
200 * Terex Corp. ........................................... 6,325
100 Wabash National Corp. ................................. 1,569
----------
18,319
----------
HOME BUILDERS - 0.67%
300 D.R. Horton, Inc. ..................................... 5,793
100 * Del Webb Corp. ........................................ 2,313
200 * Fairfield Communities, Inc. ........................... 2,575
300 Kaufman & Broad Home Corp. ............................ 7,293
100 * Palm Harbor Homes, Inc. ............................... 2,013
200 Pulte Corp. ........................................... 4,525
100 Ryland Group, Inc. .................................... 2,625
300 Standard Pacific Corp. ................................ 4,144
200 * Toll Brothers, Inc. ................................... 4,275
100 * U.S. Home Corp. ....................................... 3,425
----------
38,981
----------
HOSPITAL MANAGEMENT - 0.35%
200 * ABR Information Services, Inc. ........................ 3,500
500 * Coventry Health Care, Inc. ............................ 4,594
200 * DVI, Inc. ............................................. 2,837
700 * Medaphis Corp. ........................................ 2,450
300 * Orthodontic Centers of America, Inc. .................. 3,713
100 * Pediatrix Medical Group, Inc. ......................... 1,894
300 Ventas, Inc. .......................................... 1,350
----------
20,338
----------
HOSPITAL SUPPLIES - 0.75%
100 * Acuson Corp. .......................................... 1,525
100 Arrow International, Inc. ............................. 2,250
200 Ballard Medical Products............................... 4,775
200 * Bio-Technology General Corp. .......................... 1,419
100 * Coherent, Inc. ........................................ 1,488
100 * CONMED Corp. .......................................... 2,887
100 * Datascope Corp. ....................................... 2,844
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
HOSPITAL SUPPLIES - Continued
100 Diagnostic Products Corp. ............................. $ 2,300
100 * Isis Pharmaceuticals, Inc. ............................ 1,044
200 * MiniMed, Inc. ......................................... 12,500
200 Owens & Minor, Inc. ................................... 1,975
500 * PSS World Medical, Inc. ............................... 4,874
100 * Techne Corp. .......................................... 2,744
200 * Theragenics Corp. ..................................... 1,450
----------
44,075
----------
HOUSEHOLD PRODUCTS - 0.34%
100 Church & Dwight Co., Inc. ............................. 4,282
100 Libbey, Inc. .......................................... 3,006
200 * Linens 'N Things, Inc. ................................ 9,150
200 Mikasa, Inc. .......................................... 2,275
200 * The Coleman Company, Inc. ............................. 1,450
----------
20,163
----------
HUMAN RESOURCES - 0.50%
400 * Interim Services, Inc. ................................ 6,950
100 * Labor Ready, Inc. ..................................... 3,924
200 * Metamor Worldwide, Inc. ............................... 3,913
200 Norrell Corp. ......................................... 3,000
300 * Novacare Employee Services, Inc. ...................... 1,547
300 Olsten Corp. .......................................... 2,025
300 * Personnel Group of America, Inc. ...................... 2,738
100 * Probusiness Services, Inc. ............................ 3,587
200 * Westaff, Inc. ......................................... 1,475
----------
29,159
----------
INFORMATION PROCESSING - 1.83%
300 * Acxiom Corp. .......................................... 7,575
300 * American Management Systems, Inc. ..................... 10,313
100 * ChoicePoint, Inc. ..................................... 5,937
300 * CHS Electronics, Inc. ................................. 1,519
100 * Complete Business Solutions, Inc. ..................... 2,238
100 * F.Y.I., Inc. .......................................... 3,100
200 * Fritz Companies, Inc. ................................. 2,025
150 * International Network Services......................... 5,700
300 * Lycos, Inc. ........................................... 29,905
100 M.D.C. Holdings, Inc. ................................. 1,963
100 * Medical Manager Corp. ................................. 2,850
100 * Micrel, Inc. .......................................... 5,888
200 * Paymentech, Inc. ...................................... 4,775
200 * Safeguard Scientifics, Inc. ........................... 16,200
100 * Sipex Corp. ........................................... 1,400
700 * Sybase, Inc. .......................................... 5,425
----------
106,813
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 0.85%
200 * Alydaar Software Corp. ................................ $ 825
100 * Aspect Development, Inc. .............................. 1,094
200 * AXENT Technologies, Inc. .............................. 1,875
135 * BMC Software, Inc. .................................... 5,813
200 * Cerner Corp. .......................................... 3,400
100 * Clarify, Inc. ......................................... 2,350
157 * Epicor Software Corp. ................................. 1,120
300 * Harbinger Corp. ....................................... 3,281
200 * HNC Software, Inc. .................................... 4,300
1,000 * Informix Corp. ........................................ 7,250
100 * Micromuse, Inc. ....................................... 3,444
100 * New Era of Networks, Inc. ............................. 3,756
200 * Peregrine Systems, Inc. ............................... 4,500
200 * Quadramed Corp. ....................................... 1,937
100 Software AG Systems, Inc. ............................. 825
100 * SS&C Technologies, Inc. ............................... 1,438
100 * Visio Corp. ........................................... 2,700
----------
49,908
----------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 0.84%
300 * Artesyn Technologies, Inc ............................. 5,400
300 * Electronics for Imaging, Inc. ......................... 14,194
j300 * Jabil Circuit, Inc. ................................... 13,969
500 * Komag, Inc. ........................................... 1,875
200 * MEMC Electronic Materials, Inc. ....................... 1,200
800 * Merisel, Inc. ......................................... 1,275
300 * Micron Electronics, Inc. .............................. 3,055
200 OEA, Inc. ............................................. 1,963
100 * Rambus, Inc. .......................................... 6,013
----------
48,944
----------
INFORMATION PROCESSING -
COMPUTER SERVICES - 2.05%
45 Automatic Data Processing, Inc. ....................... 2,003
300 * Checkfree Holdings Corp. .............................. 14,400
200 * CMGI, Inc. ............................................ 50,912
200 * Computer Horizons Corp. ............................... 2,825
200 Computer Task Group, Inc. ............................. 3,725
100 * Cotelligent, Inc. ..................................... 1,168
200 * Datastream Systems, Inc. .............................. 1,687
100 Factset Research Systems, Inc. ........................ 4,663
200 * Mastech Corp. ......................................... 2,937
100 * META Group, Inc. ...................................... 913
200 National Data Corp. ................................... 9,225
100 * Nichols Research Corp. ................................ 2,113
100 * Pomeroy Computer Resources, Inc. ...................... 1,413
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 23
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
COMPUTER SERVICES - Continued
300 * Presstek, Inc. ........................................ $ 2,213
500 * Rationale Software Corp. .............................. 14,812
200 * Security Dynamics Technologies, Inc. .................. 4,350
100 * SPR, Inc. ............................................. 525
----------
119,884
----------
INFORMATION PROCESSING -
CONSUMER SOFTWARE - 0.73%
200 * 3DFX Interactive, Inc. ................................ 3,475
100 * BroadVision, Inc. ..................................... 5,806
100 * Imrglobal Corp. ....................................... 1,725
200 * Infoseek Corp. ........................................ 10,213
200 * Macromedia, Inc. ...................................... 8,288
100 * Mindspring Enterprises, Inc. .......................... 9,693
200 * Open Market, Inc. ..................................... 2,700
200 * QAD, Inc. ............................................. 775
----------
42,675
----------
INFORMATION PROCESSING -
DATA SERVICES - 3.91%
100 * ADAC Laboratories...................................... 725
200 Analysts International Corp. .......................... 2,600
200 * Anixter Internationall, Inc. .......................... 3,150
200 * Aspen Technology, Inc. ................................ 1,713
200 * Avant! Corp. .......................................... 2,700
100 * BARRA, Inc. ........................................... 1,956
300 * Bea Systems, Inc. ..................................... 4,538
200 * Bell & Howell Co. ..................................... 6,688
200 * Black Box Corp. ....................................... 6,850
100 * CCC Information Services Group, Inc. .................. 1,300
400 * CSG Systems International, Inc. ....................... 15,449
300 * Data General Corp. .................................... 3,506
100 * Data Transmission Network Corp. ....................... 2,113
200 * Davox Corp. ........................................... 1,700
300 * Diamond Multimedia Systems, Inc. ...................... 1,397
100 * Documentum, Inc. ...................................... 1,563
300 * FileNet Corp. ......................................... 2,569
300 * GT Interactive Software Corp. ......................... 1,050
300 * HMT Technology Corp. .................................. 863
200 * Hyperion Solutions Corp. .............................. 3,025
100 * IDX Systems Corp. ..................................... 1,625
300 * Information Resources, Inc. ........................... 2,325
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
DATA SERVICES - Continued
500 * Inprise Corp. ......................................... $ 2,016
100 * INSpire Insurance Solutions, Inc. ..................... 2,175
200 * Integrated Systems, Inc. .............................. 2,725
100 Jack Henry & Associates, Inc. ......................... 3,300
200 * JDA Software Group, Inc. .............................. 1,588
100 * Learning Tree International, Inc. ..................... 975
200 * Legato Systems, Inc. .................................. 8,087
200 * Mapics, Inc. .......................................... 1,119
300 * Mentor Graphics Corp. ................................. 3,638
200 * Mercury Interactive Corp. ............................. 5,637
200 * MICROS Systems, Inc. .................................. 5,900
100 * National Instruments Corp. ............................ 3,400
400 * Network Appliance, Inc. ............................... 20,124
500 * NOVA Corp. ............................................ 13,000
400 * Oak Technology, Inc. .................................. 1,188
100 * Paxar Corp. ........................................... 894
100 * Progress Software Corp. ............................... 2,275
300 * PsiNet, Inc. .......................................... 15,150
300 * S3, Inc. .............................................. 2,156
200 * Sandisk Corp. ......................................... 4,050
200 * Sequent Computer Systems, Inc. ........................ 2,188
200 * SMART Modular Technologies, Inc. ...................... 2,675
200 * Splash Technology Holdings, Inc. ...................... 1,875
300 * Structural Dynamics Research Corp. .................... 5,831
100 * Sykes Enterprises, Inc. ............................... 2,050
300 * Symantec Corp. ........................................ 5,962
300 * System Software Associates, Inc.. ..................... 563
300 * Systems & Computer Technology Corp. ................... 4,125
300 * Technology Solutions Co. .............................. 2,381
100 * The BISYS Group, Inc. ................................. 5,075
200 * Transaction Systems Architects, Inc., Class A.......... 6,487
200 * Viasoft, Inc. ......................................... 863
100 * Volt Information Sciences, Inc. ....................... 1,750
300 * Wang Laboratories, Inc. ............................... 7,518
200 * Wind River Systems, Inc. .............................. 3,000
200 * Xircom, Inc. .......................................... 4,500
100 * Zebra Technologies Corp., Class A...................... 3,324
----------
228,969
----------
INFORMATION PROCESSING -
NETWORKING - 1.21%
50 * Apex PC Solutions, Inc. ............................... 831
100 * Concentric Network Corp. .............................. 8,350
100 * Earthlink Network, Inc. ............................... 6,894
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
NETWORKING - Continued
100 * Excite, Inc. .......................................... $ 14,600
100 * Hypercom Corp. ........................................ 650
300 * Picturetel Corp. ...................................... 2,475
200 * PMC-Sierra, Inc. ...................................... 19,175
200 * Remedy Corp. .......................................... 3,500
400 * USWeb Corp. ........................................... 8,975
200 * Visual Networking, Inc. ............................... 5,613
----------
71,063
----------
INSURANCE - CASUALTY - 0.74%
200 * Acceptance Insurance Co., Inc. ........................ 2,813
100 Capitol Transamerica Corp. ............................ 1,513
200 Commerce Group, Inc. .................................. 4,550
100 E.W. Blanch Holdings, Inc. ............................ 5,887
100 * FPIC Insurance Group, Inc. ............................ 4,500
300 Frontier Insurance Group, Inc. ........................ 4,144
200 HCC Insurance Holdings, Inc. .......................... 4,225
200 * Highlands Insurance Group, Inc. ....................... 2,200
100 Philadelphia Cons. Holdings Co. ....................... 2,467
100 RLI Corp. ............................................. 3,181
100 Selective Insurance Group, Inc. ....................... 1,938
200 State Auto Financial Corp. ............................ 2,025
100 United Fire & Casualty Co. ............................ 2,650
200 Vesta Insurance Group, Inc. ........................... 1,013
----------
43,106
----------
INSURANCE - LIFE - 0.55%
200 American Heritage Life Investment Corp. ............... 4,638
100 Arm Financial Group, Inc., Class A..................... 1,388
200 Life USA Holding, Inc. ................................ 2,000
100 Presidential Life Corp. ............................... 1,794
300 Reinsurance Group of America, Inc. .................... 12,824
100 The Guarantee Life Companies, Inc. .................... 2,000
200 * UICI................................................... 4,900
400 * United Companies Financial Corp. ...................... 72
100 W. R. Berkley Corp. ................................... 2,750
----------
32,366
----------
INSURANCE - MISCELLANEOUS - 0.98%
200 * Amerin Corp. .......................................... 4,688
100 Arthur J. Gallaher & Co. .............................. 4,750
100 Brown & Brown, Inc. ................................... 3,268
200 Capital Re Corp. ...................................... 3,913
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
24 April 30, 1999 (Unaudited)
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INSURANCE - MISCELLANEOUS - Continued
100 Chicago Title Corp. ................................... $ 3,906
100 CMAC Investment Corp. ................................. 4,588
100 Crawford & Co., Class B................................ 1,169
110 Fidelity National Financial, Inc. ..................... 2,008
100 Foremost Corp. of America.............................. 2,080
100 Harleysville Group, Inc. .............................. 1,863
200 HSB Group, Inc. ....................................... 7,575
100 Liberty Corp. ......................................... 5,175
400 * Mid Atlantic Medical Services, Inc. ................... 3,650
100 MMI Companies, Inc. ................................... 1,550
100 SCPIE Holdings, Inc. .................................. 2,400
200 Zenith National Insurance Corp. ....................... 4,750
----------
57,333
----------
INSURANCE - MULTILINE - 0.48%
100 Alfa Corp. ............................................ 1,688
200 AmerUs Life Holdings, Inc. ............................ 4,475
200 Argonaut Group, Inc. .................................. 5,000
200 CNA Surety Corp. ...................................... 2,700
102 * Delphi Financial Group, Inc., Class A.................. 3,175
200 FBL Financial Group, Inc., Class A..................... 3,975
100 LandAmerica Financial Group, Inc. ..................... 2,800
100 Meadowbrook Insurance Group, Inc. ..................... 1,356
110 * Medical Assurance, Inc. ............................... 3,025
----------
28,194
----------
LEISURE TIME - 0.97%
400 * Acclaim Entertainment, Inc. ........................... 2,600
100 * Action Performance Co., Inc. .......................... 3,387
200 * American Skiing Co. ................................... 1,025
200 * Bally Total Fitness Holding Corp. ..................... 4,850
200 * Dollar Thrifty Automotive Group, Inc. ................. 3,725
200 * Family Golf Centers, Inc. ............................. 1,438
100 * Handleman Co. ......................................... 1,406
200 Polaris Industries, Inc. .............................. 7,538
400 * Premier Parks, Inc. ................................... 13,824
100 * Scotts Co. Class A..................................... 4,113
100 * Speedway Motorsports, Inc. ............................ 4,337
300 * Sunterra Corp. ........................................ 3,225
200 * Vail Resorts, Inc. .................................... 3,875
100 * Vistana, Inc. ......................................... 1,488
----------
56,831
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
LODGING - 0.49%
300 * Choice Hotels International, Inc. ..................... $ 4,688
500 * Extended Stay America, Inc. ........................... 5,250
300 * Host Marriott Services Corp. .......................... 2,137
100 Marcus Corp. .......................................... 1,244
300 Meristar Hospitality Corp. ............................ 6,900
400 * Prime Hospitality Corp. ............................... 4,875
200 * Red Roof Inns, Inc. ................................... 3,300
----------
28,394
----------
MACHINE - CONTRACT - 0.08%
200 * Rental Service Corp. .................................. 4,513
----------
MACHINE TOOLS - 0.51%
100 * Chase Industries, Inc. ................................ 931
200 * Gilead Sciences, Inc. ................................. 9,213
200 Milacron, Inc. ........................................ 4,600
100 OmniQuip International, Inc. .......................... 1,263
200 * PRI Automation, Inc. .................................. 4,963
200 Roper Industries, Inc. ................................ 5,700
100 The L.S. Starrett Co. ................................. 2,880
----------
29,550
----------
MACHINERY - AGRICULTURE - 0.08%
200 Allied Products Corp. ................................. 1,100
100 Toro Co. .............................................. 3,481
----------
4,581
----------
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.83%
100 * Astec Inds, Inc. ...................................... 3,875
100 Blount, Inc., Class A.................................. 2,788
100 * Calpine Corp. ......................................... 4,262
100 * CDI Corp. ............................................. 2,656
200 Columbus McKinnon Corp. ............................... 4,200
200 Foster Wheeler Corp. .................................. 2,700
100 Granite Construction, Inc. ............................ 2,855
200 * Insituform Technologies, Inc., Class A................. 3,813
200 * Jacobs Engineering Group, Inc. ........................ 7,888
200 Kaman Corp., Class A................................... 2,625
300 * Morrison Knudsen Corp. ................................ 3,263
200 Sauer, Inc. ........................................... 1,900
200 * United Rentals, Inc. .................................. 5,963
----------
48,788
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MACHINERY - INDUSTRIAL/SPECIALTY - 2.26%
200 AAR Corp. ............................................. $ 3,800
204 * Albany International Corp., Class A.................... 4,946
200 Applied Industrial Technologies, Inc. ................. 2,975
200 Applied Power, Inc., Class A........................... 6,313
300 Baldor Electric Co. ................................... 5,794
100 Briggs & Stratton Corp. ............................... 6,594
200 Burlington Coat Factory Warehouse Corp. ............... 3,088
200 Chart Industries, Inc. ................................ 1,987
300 Flowserve Corp. ....................................... 5,588
100 Graco, Inc. ........................................... 3,150
200 Helix Technology Corp. ................................ 3,531
100 Hughes Supply, Inc. ................................... 2,325
200 IDEX Corp. ............................................ 5,338
200 * Ionics, Inc. .......................................... 6,825
300 * ITEQ, Inc. ............................................ 506
300 JLG Industries, Inc. .................................. 4,819
100 * Kulicke & Soffa Industries, Inc. ...................... 2,288
200 Lilly Industries, Inc., Class A........................ 3,500
400 Lincoln Electric Holdings, Inc. ....................... 8,250
100 Lufkin Industries, Inc. ............................... 1,781
300 Newport News Shipbuilding, Inc. ....................... 7,855
100 * Oak Industries, Inc. .................................. 4,175
200 Regal-Beloit Corp. .................................... 4,325
100 * SPS Technologies, Inc. ................................ 4,362
200 Stewart & Stevenson Services, Inc. .................... 2,050
150 * Stillwater Mining Co. ................................. 4,247
100 Tecumseh Products Co., Class A......................... 6,113
200 * The DII Group, Inc. ................................... 6,200
150 The Manitowoc Co., Inc. ............................... 5,719
200 Watts Industries, Inc., Class A........................ 3,075
100 * Zoltek Companies, Inc. ................................ 694
----------
132,213
----------
MEDICAL TECHNOLOGY - 1.28%
100 * Affymetrix, Inc. ...................................... 4,088
100 * Aviron................................................. 1,888
200 * Biomatrix, Inc. ....................................... 6,588
300 * Cell Genesys, Inc. .................................... 1,500
200 * Dendrite International, Inc. .......................... 5,175
100 * Haemonetics Corp. ..................................... 1,569
200 * Idexx Laboratories, Inc. .............................. 4,525
300 * Liposome, Inc. ........................................ 3,750
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 25
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MEDICAL TECHNOLOGY - Continued
100 * Maxxim Medical, Inc. .................................. $ 1,593
100 * OEC Medical Systems, Inc. ............................. 2,368
100 * On Assignment, Inc. ................................... 3,031
200 * Organogenesis, Inc. ................................... 2,287
200 * Protein Design Labs, Inc. ............................. 3,087
300 * Quest Diagnostics, Inc. ............................... 6,863
100 * Res-Care, Inc. ........................................ 1,850
100 * ResMed, Inc. .......................................... 2,644
100 * Sabratek Corp. ........................................ 1,631
200 * Scios Nova, Inc. ...................................... 775
100 * Serologicals Corp. .................................... 750
200 * Thermo Cardiosystems, Inc. ............................ 1,463
100 * ThermoTrex Corp. ...................................... 838
100 * Transkaryotic Therapies, Inc. ......................... 3,100
100 * Trex Medical Corp. .................................... 494
300 * US Bioscience, Inc. ................................... 3,225
100 * Ventana Medical Systems, Inc. ......................... 2,437
100 * West Pharmaceutical Services, Inc. .................... 3,306
100 * Xomed Surgical Products, Inc. ......................... 4,163
----------
74,988
----------
MERCHANDISE - DRUG - 0.76%
100 * Duane Reade, Inc. ..................................... 2,681
200 * Express Scripts, Inc., Class A......................... 14,725
200 Longs Drug Stores Corp. ............................... 6,875
300 * Medimmune, Inc. ....................................... 16,537
500 * Perrigo Co. ........................................... 3,813
----------
44,631
----------
MERCHANDISE - SPECIALTY - 2.16%
100 * Ames Department Stores, Inc. .......................... 3,494
200 * APAC TeleServices, Inc. ............................... 650
200 * Avid Technology, Inc. ................................. 3,250
300 Caseys General Stores, Inc. ........................... 3,975
100 Cash America International, Inc. ...................... 1,275
200 * Central Garden & Pet Co. .............................. 2,800
400 * Charming Shoppes, Inc. ................................ 1,550
200 * Copart, Inc. .......................................... 3,624
800 * Corporate Express, Inc. ............................... 4,000
100 * Daisytek International Corp. .......................... 1,675
200 * Department 56, Inc. ................................... 5,413
200 * Franklin Covey Co. .................................... 1,938
200 * French Fragrances, Inc. ............................... 1,513
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MERCHANDISE - SPECIALTY - Continued
300 Hancock Fabrics, Inc. ................................. $ 1,893
100 Hancock Holding Co. ................................... 4,450
1,000 * Hanover Direct, Inc. .................................. 2,813
256 * Inacom Corp. .......................................... 2,480
200 Jostens, Inc. ......................................... 4,288
100 * Keystone Automotive Industries, Inc. .................. 1,500
100 * Knoll, Inc. ........................................... 2,400
200 * Michaels Stores, Inc. ................................. 4,525
200 * Micro Warehouse, Inc. ................................. 3,388
900 * Petsmart, Inc. ........................................ 8,380
300 Price Enterprises, Inc. ............................... 1,744
100 * Rent-Way, Inc. ........................................ 2,724
100 Russ Berrie and Co., Inc. ............................. 2,713
200 * Seitel, Inc. .......................................... 3,475
300 Sotheby's Holdings, Inc., Class A...................... 12,787
300 * Spiegel, Inc., Class A................................. 2,250
200 Sturm, Ruger & Co., Inc. .............................. 2,125
400 * Sunglass Hut International, Inc. ...................... 5,050
200 * The Finish Line, Inc. ................................. 3,013
200 * Twinlab Corp. ......................................... 1,700
200 * U.S.A. Floral Products, Inc. .......................... 1,363
300 * United Stationers, Inc. ............................... 5,118
200 * West Marine, Inc. ..................................... 1,950
100 * Wilmar Industries, Inc. ............................... 1,213
200 * Zale Corp. ............................................ 7,562
----------
126,061
----------
MERCHANDISING - DEPARTMENT - 0.07%
100 * Maxim Group, Inc. ..................................... 806
300 * Stein Mart, Inc. ...................................... 3,000
----------
3,806
----------
MERCHANDISING - FOOD - 0.41%
200 * CEC Entertainment, Inc. ............................... 7,500
400 Fleming Companies, Inc. ............................... 3,500
100 Great Atlantic & Pacific Tea Co., Inc. ................ 3,075
300 Ruddick Corp. ......................................... 5,306
200 * Smithfield Foods, Inc. ................................ 4,725
----------
24,106
----------
MERCHANDISING - MASS - 0.24%
200 Global Directmail Corp. ............................... 3,050
150 * Insight Enterprises, Inc. ............................. 4,050
200 * ShopKo Stores, Inc. ................................... 6,863
----------
13,963
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
METALS - ALUMINUM - 0.27%
200 * ACX Technologies, Inc. ................................ $ 2,288
200 Century Aluminum Co. .................................. 1,600
200 IMCO Recycling, Inc. .................................. 3,400
400 * Kaiser Aluminum Corp. ................................. 3,125
200 Tredegar Industries, Inc. ............................. 5,337
----------
15,750
----------
METALS - COPPER - 0.09%
300 ASARCO, Inc. .......................................... 5,513
----------
METALS - MISCELLANEOUS - 0.37%
100 A.M. Castle & Co. ..................................... 1,475
200 Brush Wellman, Inc. ................................... 3,013
100 Commercial Metals Co. ................................. 2,356
200 Precision Castparts Corp. ............................. 8,550
100 * RTI International Metals, Inc. ........................ 1,331
300 * Steel Dynamics, Inc. .................................. 5,063
----------
21,788
----------
METALS - STEEL - 0.98%
300 AK Steel Holding Corp. ................................ 7,800
800 * Armco, Inc. ........................................... 4,100
700 * Bethlehem Steel Corp. ................................. 6,388
100 Carpenter Technology Corp. ............................ 3,131
200 * Citation Corp. ........................................ 2,374
100 Cleveland-Cliffs, Inc. ................................ 3,981
200 Intermet Corp. ........................................ 2,950
500 LTV Corp. ............................................. 3,188
300 * Mueller Industries, Inc. .............................. 9,450
300 National Steel Corp., Class B.......................... 2,813
200 Ryerson Tull, Inc. .................................... 4,537
100 Schnitzer Steel Industries, Inc. ...................... 1,431
200 Valmont Industries, Inc. .............................. 3,350
200 * WHX Corp. ............................................. 1,688
----------
57,181
----------
MISCELLANEOUS - 2.56%
100 * Abacus Direct Corp. ................................... 7,400
100 Advance Paradigm, Inc. ................................ 5,250
300 AMCOL International Corp. ............................. 3,674
100 * AMERCO, Inc. .......................................... 2,250
200 Arch Coal, Inc. ....................................... 2,425
200 * Associated Group, Inc., Class A........................ 11,400
118 BB&T Corp. ............................................ 4,713
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
26 April 30, 1999 (Unaudited)
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MISCELLANEOUS - Continued
300 * Billing Concepts Corp. ................................ $ 3,713
300 * Brightpoint, Inc. ..................................... 1,846
200 * Building One Services Corp. ........................... 3,050
200 C. H. Robinson Worldwide, Inc. ........................ 5,988
200 Cabot Industrial Trust................................. 4,075
200 * Capital Senior Living Corp. ........................... 1,975
200 * Caribiner International, Inc. ......................... 1,313
300 * Catalytica, Inc. ...................................... 4,106
100 Central Parking Corp. ................................. 3,169
300 * Century Business Services, Inc. ....................... 3,600
100 * Championship Auto Racing Teams, Inc. .................. 3,081
200 * Coinmach Laundry Corp. ................................ 2,450
200 * Computer Learning Centers, Inc. ....................... 900
200 * Hvide Marine, Inc., Class A............................ 525
100 * Integrated Electrical Services, Inc. .................. 1,719
100 * Iron Mountain, Inc. ................................... 2,781
50 * Lakes Gaming, Inc. .................................... 481
100 * Lason, Inc. ........................................... 3,956
100 Matthews International Corp., Class A.................. 2,663
100 * MemberWorks, Inc. ..................................... 4,375
100 * Metzler Group, Inc. ................................... 2,788
300 * Musicland Stores Corp. ................................ 3,262
200 * Prepaid Legal Services, Inc. .......................... 5,700
100 * Preview Travel, Inc. .................................. 2,600
200 * Rayovac Corp. ......................................... 5,400
150 Regis Corp. ........................................... 3,844
200 * Romac International, Inc. ............................. 2,250
200 * Scott Technologies, Inc. .............................. 3,713
200 * Sola International, Inc. .............................. 2,975
200 * Veritas DGC, Inc. ..................................... 4,050
200 * Veterinary Centers of America, Inc. ................... 2,625
100 * Wesley Jessen VisionCare, Inc. ........................ 3,063
200 * West Teleservices Corp. ............................... 1,686
200 * Westell Technologies, Inc., Class A.................... 1,263
100 Westinghouse Air Brake Co. ............................ 2,231
200 * Whittman-Hart, Inc. ................................... 5,650
100 Woodward Governor Co. ................................. 2,475
100 * World Access, Inc. .................................... 1,200
----------
149,653
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MOBILE HOMES - 0.40%
300 * Champion Enterprises, Inc. ............................ $ 5,569
100 Coachmen Industries, Inc. ............................. 1,888
100 McGrath Rentcorp ...................................... 1,900
150 * Monaco Coach Corp. .................................... 4,162
300 Oakwood Homes Corp. ................................... 4,163
100 Skyline Corp. ......................................... 2,931
100 Thor Industries, Inc. ................................. 3,025
----------
23,638
----------
NATURAL GAS - DIVERSIFIED - 0.78%
300 Atmos Energy Corp. .................................... 7,575
100 Eastern Enterprises ................................... 3,594
200 * Hanover Compressor Co. ................................ 5,738
200 Laclede Gas Co. ....................................... 4,037
100 New Jersey Resources Corp. ............................ 3,688
105 * Southern Union Co. .................................... 2,336
300 Southwest Gas Corp. ................................... 8,569
300 UGI Corp. ............................................. 5,156
200 WICOR, Inc. ........................................... 4,725
----------
45,418
----------
OIL - INTEGRATED DOMESTIC - 0.20%
200 Belco Oil and Gas Corp. ............................... 1,525
200 Cross Timbers Oil Co. ................................. 2,187
500 * Santa Fe Energy Resources, Inc. ....................... 4,500
300 * Tesoro Petroleum Corp. ................................ 3,394
----------
11,606
----------
OIL - INTEGRATED INTERNATIONAL - 0.01%
4 Chevron Corp. ......................................... 399
----------
OIL - SERVICE - PRODUCTS - 0.47%
200 * Barrett Resources Corp. ............................... 6,075
100 * Drill Quip, Inc. ...................................... 2,438
200 * Lone Star Technologies, Inc. .......................... 3,437
200 * Maverick Tube Corp. ................................... 2,025
300 * Ocean Energy, Inc. .................................... 2,794
400 * Pride International, Inc. ............................. 4,675
200 SEMCO Energy, Inc. .................................... 3,000
200 * TransMontaigne, Inc. .................................. 2,850
----------
27,294
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
OIL - SERVICES - 0.50%
100 * Friede Goldman International, Inc. .................... $ 1,869
300 * Horizon Offshore, Inc. ................................ 2,138
200 * Key Energy Services, Inc. ............................. 688
300 * Marine Drilling Companies, Inc. ....................... 5,155
300 Mascotech, Inc. ....................................... 5,213
100 * Oceaneering International, Inc ........................ 1,650
200 * Offshore Logistics, Inc. .............................. 2,475
100 * OMNI Energy Services Corp. ............................ 450
300 * Superior Energy Services, Inc. ........................ 1,537
400 * Tuboscope, Inc. ....................................... 5,450
200 * Unova, Inc. ........................................... 2,713
----------
29,338
----------
OIL/GAS PRODUCERS - 1.40%
100 * Atwood Oceanics, Inc. ................................. 3,487
300 * Benton Oil and Gas Co. ................................ 1,256
200 Cabot Oil & Gas Corp., Class A......................... 3,500
200 Devon Energy Corp. .................................... 6,650
333 * EEX Corp. ............................................. 2,167
300 Equitable Resources, Inc. ............................. 7,950
200 * Forcenergy, Inc. ...................................... 244
300 * Forest Oil Corp. ...................................... 3,000
300 * Frontier Oil Corp. .................................... 1,613
700 * Harken Energy Corp. ................................... 1,575
300 Helmerich & Payne, Inc. ............................... 7,724
100 Holly Corp. ........................................... 1,406
200 * HS Resources, Inc. .................................... 2,125
300 * Input/Output, Inc. .................................... 2,175
300 KCS Energy, Inc. ...................................... 413
200 * Louis Dreyfus Natural Gas Corp. ....................... 3,825
300 * Newfield Exploration Co. .............................. 8,063
100 * Nuevo Energy Co. ...................................... 1,587
300 * Patterson Energy, Inc. ................................ 2,419
100 Penn Virginia Corp. ................................... 1,975
200 Pogo Producing Co. .................................... 3,837
200 Snyder Oil Corp. ...................................... 3,638
100 St. Mary Land & Exploration Co. ....................... 1,925
100 * Stone Energy Corp. .................................... 3,394
200 * Tom Brown, Inc. ....................................... 2,987
300 Vintage Petroleum, Inc. ............................... 3,225
----------
82,160
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 27
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS - 0.94%
200 * Boise Cascade Office Products Corp. ................... $ 2,475
100 * Buckeye Technologies, Inc. ............................ 1,450
200 Caraustar Industries, Inc. ............................ 5,100
100 * Day Runner, Inc. ...................................... 1,250
200 Longview Fibre Co. .................................... 2,600
200 P. H. Glatfelter Co. .................................. 2,563
200 Potlatch Corp. ........................................ 8,287
200 Rayonier, Inc. ........................................ 9,125
200 Schweitzer-Mauduit, Inc. .............................. 3,313
200 Standard Register Co. ................................. 6,100
200 * Thermo Fibertek, Inc. ................................. 1,425
600 Unisource Worldwide, Inc. ............................. 4,875
400 Wausau-Mosinee Paper Corp. ............................ 6,600
----------
55,163
----------
PHOTOGRAPHY - 0.09%
100 * Photronics, Inc. ...................................... 2,394
200 * Ultratech Stepper, Inc. ............................... 2,775
----------
5,169
----------
POLLUTION CONTROL - 0.43%
1,500 * Aqua Alliance, Inc. ................................... 3,188
400 Calgon Carbon Corp. ................................... 2,325
200 Dames & Moore, Inc. ................................... 2,350
500 * Newpark Resources, Inc. ............................... 4,594
125 * Safety-Kleen Corp. .................................... 1,984
200 * Superior Services, Inc. ............................... 3,675
300 * Tetra Tech, Inc. ...................................... 7,256
----------
25,372
----------
PUBLISHING - NEWS - 0.45%
400 Hollinger International, Inc. ......................... 5,625
300 Lee Enterprises, Inc. ................................. 8,587
200 Media General, Inc., Class A........................... 10,400
200 * Network Equipment Technologies, Inc. .................. 1,538
----------
26,150
----------
PUBLISHING/PRINTING - 1.30%
200 American Business Products, Inc. ...................... 3,062
100 Banta Corp. ........................................... 2,131
100 * Big Flower Holdings, Inc. ............................. 3,563
300 Bowne & Co., Inc. ..................................... 5,625
100 * Consolidated Graphics, Inc. ........................... 4,263
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
PUBLISHING/PRINTING - Continued
100 Houghton Mifflin Co. .................................. $ 4,463
300 John H. Harland Co. ................................... 4,969
200 John Wiley & Sons, Inc., Class A....................... 8,087
100 New England Business Service, Inc. .................... 2,731
100 * Scholastic Corp. ...................................... 4,727
100 * Scientific Games Holdings Corp. ....................... 1,600
200 The McClatchy Co., Class A............................. 7,175
200 * Valassis Communications, Inc. ......................... 11,200
200 Wallace Computer Services, Inc. ....................... 4,613
300 * World Color Press, Inc. ............................... 7,669
----------
75,878
----------
RAILROAD - 0.19%
100 Florida East Coast Industries, Inc. ................... 3,188
150 * Motivepower Industries, Inc. .......................... 2,559
300 * Wisconsin Central Transportation Corp. ................ 5,541
----------
11,288
----------
REAL ESTATE - 0.65%
300 Brandywine Realty Trust................................ 5,662
200 Cousins Properties, Inc. .............................. 6,950
200 Entertainment Properties Trust......................... 3,675
200 Forest City Enterprises, Inc., Class A................. 4,937
200 LNR Property Corp. .................................... 3,925
200 Republic Bancorp, Inc. ................................ 2,538
200 SL Green Realty Corp. ................................. 3,975
100 Tejon Ranch Co. ....................................... 2,263
200 Tower Realty Trust, Inc. .............................. 4,100
----------
38,025
----------
REAL ESTATE INVESTMENT TRUSTS - 6.36%
200 American Health Properties, Inc. ...................... 3,963
200 Amli Residential Properties Trust...................... 4,363
100 Bedford Property Investors, Inc. ...................... 1,719
100 Berkshire Reality Co., Inc. ........................... 1,150
200 Boykin Lodging Co. .................................... 3,063
100 Bradley Real Estate, Inc. ............................. 1,994
300 BRE Properties, Inc., Class A.......................... 7,463
100 Burnham Pacific Properties, Inc. ...................... 1,150
200 Camden Property Trust.................................. 5,400
600 * Capstead Mortgage Corp. ............................... 3,488
200 CBL & Associates Properties, Inc. ..................... 4,913
200 CenterPoint Properties Corp. .......................... 7,188
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - Continued
200 Charles E. Smith Residential Realty, Inc. ............. $ 6,500
100 Chateau Communities, Inc. ............................. 2,906
100 Chelsea GCA Realty, Inc. .............................. 3,294
300 Colonial Properties Trust.............................. 8,213
100 Commercial Net Lease Realty............................ 1,256
100 Cornerstone Realty Income Trust, Inc. ................. 994
300 Developers Diversified Realty Corp. ................... 4,744
500 * Dynex Capital, Inc. ................................... 1,469
200 EastGroup Properties, Inc. ............................ 3,613
400 Equity Inns, Inc. ..................................... 3,675
100 Essex Property Trust, Inc. ............................ 3,156
200 Federal Realty Investment Trust........................ 4,775
400 Felcor Lodging Trust, Inc. ............................ 9,575
200 First Industrial Realty Trust, Inc. ................... 5,375
400 * First Union Real Estate Investments.................... 1,650
300 Franchise Finance Corp. ............................... 6,956
200 Gables Residential Trust............................... 4,763
300 General Growth Properties, Inc. ....................... 11,044
300 Glenborough Realty Trust, Inc. ........................ 5,155
300 Glimcher Realty Trust.................................. 5,081
100 Golf Trust of America, Inc. ........................... 2,219
200 Great Lakes REIT, Inc. ................................ 3,088
200 Health Care Property Investors, Inc. .................. 6,150
300 Health Care REIT, Inc. ................................ 7,050
200 Healthcare Realty Trust, Inc. ......................... 4,363
100 Home Properties of New York, Inc. ..................... 2,588
200 Hospitality Properties Trust........................... 5,763
300 Impac Mortgage Holdings, Inc. ......................... 1,650
300 Imperial Credit Commercial
Mortgage Investment Corp. ............................. 2,944
100 Innkeepers USA Trust................................... 1,031
100 Irvine Apartment Communities, Inc. .................... 3,350
100 JDN Realty Corp. ...................................... 2,213
100 * Jones Lang Lasalle, Inc. .............................. 2,669
200 JP Reality, Inc. ...................................... 4,013
200 Kilroy Reality Corp. .................................. 4,713
300 Koger Equity, Inc. .................................... 4,406
300 LASER Mortgage Management, Inc. ....................... 1,631
300 Lexington Corporate Properties Trust................... 3,431
100 LTC Properties, Inc. .................................. 1,344
100 Macerich Co. .......................................... 2,556
200 Manufactured Home Communities, Inc. ................... 5,063
100 MGI Properties, Inc. .................................. 2,763
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
28 April 30, 1999 (Unaudited)
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - Continued
100 Mid-America Apartment Communities, Inc. ............... $ 2,381
100 National Health Investors, Inc. ....................... 2,513
300 Nationwide Health Properties, Inc. .................... 6,094
700 New Plan Excel Realty Trust............................ 12,994
100 Omega Healthcare Investors, Inc. ...................... 2,638
100 Parkway Properties, Inc. .............................. 2,900
100 Pennsylvania Real Estate Investment Trust.............. 2,063
200 Prentiss Properties Trust.............................. 4,325
500 Prime Retail, Inc. .................................... 4,312
600 Prison Realty Corp. ................................... 11,700
330 ProLogis Trust......................................... 6,929
200 PS Business Parks, Inc. ............................... 4,675
300 Realty Income Corp. ................................... 7,012
200 Reckson Associates Realty Corp. ....................... 4,500
100 Redwood Trust, Inc. ................................... 1,680
300 RFS Hotel Investors, Inc. ............................. 4,237
300 * Security Capital Group................................. 4,537
200 Shurgard Storage Centers, Inc., Class A................ 5,387
200 Storage USA, Inc. ..................................... 6,424
300 Summit Properties, Inc. ............................... 5,474
100 Sun Communities, Inc. ................................. 3,500
400 Sunstone Hotel Investors, Inc. ........................ 3,675
100 Taubman Centers, Inc. ................................. 1,355
200 * Trammell Crow Co. ..................................... 3,600
200 TriNet Corporate Realty Trust, Inc. ................... 5,487
200 U.S. Restaurant Properties, Inc. ...................... 4,012
800 United Dominion Realty Trust, Inc. .................... 8,700
100 Urban Shopping Centers, Inc. .......................... 3,200
200 Walden Residential Properties, Inc. ................... 3,825
100 Washington Real Estate Investment Trust................ 1,693
100 Weeks Corp. ........................................... 3,106
200 Weingarten Realty Investors............................ 8,287
200 Western Investment Real Estate Trust................... 2,288
100 Westfield America, Inc. ............................... 1,581
----------
372,130
----------
RESTAURANTS - 1.05%
200 Applebees International, Inc. ......................... 5,163
200 Bob Evans Farms, Inc. ................................. 3,662
200 * Buffets, Inc. ......................................... 2,000
200 * Cheesecake Factory..................................... 5,600
250 * Consolidated Products, Inc. ........................... 4,516
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
RESTAURANTS - Continued
200 * Foodmaker, Inc. ....................................... $ 4,825
400 * Lone Star Steakhouse & Saloon, Inc. ................... 4,350
300 Luby's, Inc. .......................................... 5,025
100 * Papa Johns International, Inc. ........................ 4,018
400 * Planet Hollywood International, Inc. .................. 375
300 * Rainforest Cafe, Inc. ................................. 1,650
300 Ruby Tuesday, Inc. .................................... 5,475
400 * Ryan's Family Steak Houses, Inc. ...................... 4,950
200 * Sbarro, Inc. .......................................... 5,237
100 * Sonic Corp. ........................................... 2,813
300 TCBY Enterprises, Inc. ................................ 2,044
----------
61,703
----------
SAVINGS & LOAN - 0.93%
100 Andover Bancorp........................................ 3,074
200 Bay View Capital Corp. ................................ 3,563
100 Dime Community Bancshares.............................. 2,250
200 Downey Financial Corp. ................................ 4,000
100 F&M Bancorp............................................ 3,250
300 First Sentinel Bancorp, Inc. .......................... 2,287
200 First Washington Bancorp, Inc. ........................ 4,025
200 * FirstFed Financial Corp. .............................. 3,463
200 Haven Bancorp, Inc. ................................... 2,687
300 MAF Bancorp, Inc. ..................................... 6,675
210 Provident Bankshares Corp. ............................ 5,224
200 Queens County Bancorp, Inc. ........................... 7,025
200 Staten Island Bancorp, Inc. ........................... 3,613
300 * Wilshire Financial Services Group, Inc. ............... 113
200 WSFS Financial Corp. .................................. 3,125
----------
54,374
----------
SCHOOLS - 0.38%
400 * DeVry, Inc. ........................................... 10,550
200 * Education Management Corp. ............................ 3,988
100 * ITT Educational Services, Inc. ........................ 2,456
200 * Sylvan Learning Systems, Inc. ......................... 5,025
----------
22,019
----------
SECURITIES RELATED - 1.65%
100 Dain Rauscher Corp. ................................... 4,287
700 * E*Trade Group, Inc. ................................... 80,850
200 Enhance Financial Services Group, Inc. ................ 4,138
100 * Hambrecht & Quist Group................................ 3,525
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SECURITIES RELATED - Continued
100 Morgan Keegan, Inc. ................................... $ 1,675
100 Pioneer Group, Inc. ................................... 1,863
----------
96,338
----------
SEMICONDUCTOR EQUIPMENT - 0.67%
500 * Aspec Technology, Inc. ................................ 438
100 * ATMI, Inc. ............................................ 2,300
300 * LAM Research Corp. .................................... 9,450
300 * Microchip Technology, Inc. ............................ 10,500
200 * Novellus Systems, Inc. ................................ 9,450
100 * QLogic Corp. .......................................... 6,993
----------
39,131
----------
SEMICONDUCTORS - 1.63%
100 * Applied Micro Circuits Corp. .......................... 5,330
200 * Burr Brown Corp. ...................................... 5,300
500 * Cirrus Logic, Inc. .................................... 3,531
100 Cohu, Inc. ............................................ 2,850
100 * Credence Systems Corp. ................................ 2,569
200 * Cymer, Inc. ........................................... 3,650
500 * Cypress Semiconductor Corp. ........................... 5,125
200 Dallas Semiconductor Corp. ............................ 8,500
200 * DSP Communications, Inc. .............................. 5,450
200 * Electroglas, Inc. ..................................... 2,738
100 * Etec Systems, Inc. .................................... 3,088
200 * FSI International, Inc. ............................... 1,388
300 * International Rectifier Corp. ......................... 2,925
100 * Kopin Corp. ........................................... 1,888
300 * Level One Communications, Inc. ........................ 15,412
200 * MRV Communications, Inc. .............................. 2,000
100 * SDL, Inc. ............................................. 10,924
200 * Silicon Valley Group, Inc. ............................ 2,650
100 * Siliconix, Inc. ....................................... 2,625
200 * Unitrode Corp. ........................................ 3,538
200 * VLSI Technology, Inc. ................................. 3,775
----------
95,256
----------
TELECOMMUNICATIONS - 3.82%
200 ABM Industries, Inc. .................................. 6,075
100 * Adtran, Inc. .......................................... 1,738
200 * Aerial Communications, Inc. ........................... 1,600
600 * American Tower Corp., Class A.......................... 12,713
200 * Anicom, Inc. .......................................... 1,775
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 29
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - Continued
400 * Aspect Telecommunications Co. ......................... $ 3,188
300 * CellNet Data Systems, Inc. ............................ 2,325
200 * CellStar Corp. ........................................ 1,475
100 * Cellular Communications of
Puerto Rico, Inc. ..................................... 2,375
200 * CommNet Cellular, Inc. ................................ 4,200
150 * Dycom Industries, Inc. ................................ 6,853
300 * E. Spire Communication, Inc. .......................... 3,750
200 * Electric Lightwave, Inc. .............................. 2,800
100 * Geotel Communications Corp. ........................... 5,624
300 * Glenayre Technologies, Inc. ........................... 994
300 * ICG Communications, Inc. .............................. 6,619
200 * IDT Corp. ............................................. 5,700
100 Inter-Tel, Inc. ....................................... 1,388
400 * ITC/\DeltaCom, Inc. ................................... 10,000
200 * IXC Communications, Inc. .............................. 7,925
200 * LCC International, Inc. ............................... 925
100 * MasTec, Inc. .......................................... 2,600
200 * MGC Communications, Inc. .............................. 6,800
300 * MMC Networks, Inc. .................................... 7,369
300 * NTL, Inc. ............................................. 22,874
200 * Omnipoint Corp. ....................................... 3,550
400 * PageMart Wireless, Inc., Class A....................... 1,825
500 * Pairgain Technologies, Inc. ........................... 6,406
100 * Plantronics, Inc. ..................................... 6,750
300 * Premier Technologies, Inc. ............................ 4,463
200 * Premisys Communications, Inc. ......................... 1,700
200 * Primus Telecommunications Group, Inc. ................. 3,338
200 * RCN Corp. ............................................. 9,725
400 * Skytel Communications, Inc. ........................... 6,850
200 * SmarTalk Teleservices, Inc. ........................... 15
200 * Talk.com, Inc. ........................................ 2,400
200 * Tekelec ............................................... 1,806
100 * Transaction Network Services, Inc. .................... 2,675
100 * US LEC Corp. .......................................... 2,313
200 * Vanguard Cellular Systems, Inc., Class A............... 4,562
500 * Western Wireless Corp., Class A........................ 20,531
300 * WinStar Communications, Inc. .......................... 14,587
----------
223,181
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
TEXTILE - PRODUCTS - 0.34%
300 * Burlington Industries, Inc. ........................... $ 2,438
200 * Dan River, Inc. ....................................... 1,950
100 G & K Services, Inc., Class A.......................... 4,675
100 Guilford Mills, Inc. .................................. 950
200 * Quaker Fabric Corp. ................................... 1,150
200 Russell Corp. ......................................... 4,425
300 Wellman, Inc. ......................................... 4,293
----------
19,881
----------
TOBACCO - 0.16%
400 DIMON, Inc. ........................................... 1,750
300 Universal Corp. ....................................... 7,631
----------
9,381
----------
TRUCKERS - 0.66%
200 * American Freightways Corp. ............................ 3,438
200 Arnold Industries, Inc. ............................... 3,174
100 * Dispatch Management Services Corp. .................... 309
200 * Heartland Express, Inc. ............................... 2,788
100 * Landstar System, Inc. ................................. 3,893
100 * M.S. Carriers, Inc. ................................... 3,188
400 Rollins Truck Leasing Corp. ........................... 4,150
150 * Swift Transportation Co., Inc. ........................ 2,756
100 USFreightways Corp. ................................... 3,750
125 Varlen Corp. .......................................... 3,500
100 Werner Enterprises, Inc. .............................. 1,925
100 * Xtra Corp. ............................................ 4,138
100 * Yellow Corp. .......................................... 1,775
----------
38,784
----------
UTILITIES - COMMUNICATION - 0.28%
300 Aliant Communications, Inc. ........................... 13,275
100 * Alpine Group, Inc. .................................... 1,388
100 PXRE Corp. ............................................ 1,900
----------
16,563
----------
UTILITIES - ELECTRIC - 1.75%
200 Black Hills Corp. ..................................... 4,525
200 Cleco Corp. ........................................... 6,175
200 Commonwealth Energy System Co. ........................ 8,112
100 Eastern Utilities Associates........................... 2,863
500 * El Paso Electric Co. .................................. 4,000
200 Empire District Electric Co. .......................... 4,388
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
UTILITIES - ELECTRIC - Continued
300 Hawaiian Electric Industries, Inc. .................... $ 10,668
200 Idacorp, Inc. ......................................... 6,300
100 Indiana Energy, Inc. .................................. 2,137
400 Minnesota Power, Inc. ................................. 8,425
300 Nevada Power Co. ...................................... 7,744
100 Northwestern Corp. .................................... 2,587
100 Otter Tail Power Co. .................................. 3,825
400 Public Service Co. of New Mexico....................... 7,150
300 Rochester Gas & Electric Corp. ........................ 7,650
100 SIGCORP, Inc. ......................................... 2,881
200 * UniSource Energy Corp. ................................ 2,163
100 United Illuminating Co. ............................... 3,938
300 Washington Gas Light Co. .............................. 7,069
----------
102,600
----------
UTILITIES - GAS, DISTRIBUTION - 0.59%
300 AGL Resources, Inc. ................................... 5,456
300 Energen Corp. ......................................... 5,175
200 Northwest Natural Gas Co. ............................. 4,513
200 NUI Corp. ............................................. 4,337
200 Piedmont Natural Gas Co., Inc. ........................ 6,375
200 Public Service Co. of North Carolina, Inc. ............ 5,663
100 Yankee Energy Systems, Inc. ........................... 2,769
----------
34,288
----------
UTILITIES - GAS, PIPELINE - 0.28%
100 North Carolina Natural Gas Corp. ...................... 3,125
200 ONEOK, Inc. ........................................... 5,588
200 Peoples Energy Corp. .................................. 7,475
----------
16,188
----------
UTILITIES - MISCELLANEOUS - 0.56%
200 Central Hudson Gas & Electric Corp. ................... 7,425
100 * Group Maintenance America Corp. ....................... 1,338
300 MDU Resources Group, Inc. ............................. 6,394
200 Sierra Pacific Resources............................... 7,124
400 * Walter Industries, Inc. ............................... 4,550
200 WPS Resources Corp. ................................... 5,988
----------
32,819
----------
WATER SERVICES - 0.18%
100 California Water Service Group......................... 2,294
100 Philadelphia Suburban Corp. ........................... 2,256
300 United Water Resources, Inc. .......................... 6,244
----------
10,794
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
30 April 30, 1999 (Unaudited)
SMALL CAP INDEX FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
COMMON STOCKS
(Cost $4,951,966)..................................... $5,411,155
----------
RIGHTS - 0.00%
160 First Union Real Estate Investments,
Rights expiring 05/12/99.............................. 20
----------
TOTAL RIGHTS
(Cost $0)............................................. 20
----------
<CAPTION>
PAR
VALUE
---------
<C> <S> <C>
UNITED STATES GOVERNMENT -
SHORT TERM - 7.84%
GOVERNMENT SPONSORED - 7.42%
$434,000 Federal Home Loan Bank
4.80% due 05/03/99.................................... 434,000
----------
U. S. TREASURY BILLS - 0.42%
25,000 United States Treasury Bills
4.17% due 06/10/99.................................... 24,768
----------
TOTAL UNITED STATES GOVERNMENT -
SHORT TERM
(Cost $458,768)....................................... 458,768
----------
TOTAL INVESTMENTS
(Cost $5,410,734) - 100.36%........................... 5,869,943
Other assets less liabilities,
net - (0.36%)......................................... (20,789)
----------
NET ASSETS (equivalent to $11.17 per share on 255,147
Class A shares and $11.16 per share on 268,727 Class B
shares outstanding) - 100.00%......................... $5,849,154
----------
* Non-income producing
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS APPRECIATION
<C> <S>
- --------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED(1)
1(2) (Delivery month/Value at 04/30/99)
Russell 2000 Index Futures
(June/$433.05)................................... $ 8,025
----------
</TABLE>
(1) U.S. Treasury Bills with a market value of approximately $25,000 were
maintained in a segregated account with a portion placed as collateral for
futures contracts.
(2) Per 500.
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited authorized shares, 523,874 shares outstanding............ $ 5,239
Additional paid in capital......................................... 5,249,809
Undistributed net realized gain on securities...................... 127,266
Undistributed net investment income................................ (394)
Unrealized appreciation of:
Investments.............................................. $459,209
Futures contracts........................................ 8,025 467,234
-------- ----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING.............................................. $5,849,154
----------
- -------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($2,849,841 divided by 255,147 shares)....................... $ 11.17
----------
Offering price per Class A share
(100/94.25 of $11.17)*............................................. $ 11.85
----------
Net asset value and offering price per Class B
share ($2,999,313 divided by 268,727 shares)**..................... $ 11.16
----------
* Offering price includes sales charge of 5.75%.
The sales charge is reduced for purchases of $25,000 and over.
** Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
31
SMALL CAP INDEX FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends........................................................ $ 38,594
Interest......................................................... 5,792
--------
Total investment income......................................... 44,386
--------
EXPENSES:
Advisory fees.................................................... 7,351
Transfer agent fees.............................................. 7,282
Custodian fees................................................... 3,689
Distribution fees:
Class A......................................................... 3,258
Class B......................................................... 13,223
Registration and filing fees..................................... 16,180
Audit fees and tax services...................................... 1,849
Accounting services.............................................. 792
Trustees' fees and expenses...................................... 823
Report to shareholders........................................... 145
Miscellaneous.................................................... 198
--------
Total expenses.................................................. 54,790
Expense reimbursement (see Note 3).............................. (23,009)
--------
Net expenses.................................................... 31,781
--------
NET INVESTMENT INCOME............................................ 12,605
--------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities:
Investments............................................ $111,156
Futures contracts...................................... 16,110 127,266
--------
Net unrealized appreciation of securities during the period:
Investments............................................ 459,209
Futures contracts...................................... 8,025 467,234
-------- --------
Net realized and unrealized gain on securities during the
period......................................................... 594,500
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. $607,105
--------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended October 7, 1998
April 30, 1999 to October 31, 1998
----------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income...................... $ 12,605 $ -
Net realized gain on securities............ 127,266 -
Net unrealized appreciation of securities
during the period.......................... 467,234 -
-------------------------------
Increase in net assets resulting from
operations................................ 607,105 -
-------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A................................... (12,184) -
Class B................................... (815) -
-------------------------------
Total distributions to shareholders from
net investment income.................... (12,999) -
-------------------------------
Net realized gain on securities
Class A................................... - -
Class B................................... - -
-------------------------------
Total distributions to shareholders
from net realized gain on securities..... - -
-------------------------------
Decrease in net assets resulting from
distributions to shareholders.............. (12,999) -
-------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A................................... 2,553,886 2,500
Class B................................... 2,696,162 2,500
-------------------------------
Total increase in net assets resulting from
share transactions......................... 5,250,048 5,000
-------------------------------
TOTAL INCREASE IN NET ASSETS............... 5,844,154 5,000
NET ASSETS:
Beginning of year......................... 5,000 -
-------------------------------
End of period (including undistributed net
investment income of ($394) and $0)....... $5,849,154 $5,000
</TABLE>
-------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ----------------------------------------- -----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
------------------- -------------------- ------------------- --------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold............. 253,881 $2,542,541 250 $2,500 269,029 $2,701,897 250 $ 2,500
Shares issued for
distributions
reinvested.............. 1,100 12,184 - - 74 815 - -
Shares repurchased...... (84) (839) - - (626) (6,550) - -
------------------- -------------------- ------------------- --------------------
Increase in shares
outstanding............. 254,897 2,553,886 250 2,500 268,477 2,696,162 250 2,500
Shares outstanding:
Beginning of period..... 250 2,500 - - 250 2,500 - -
------------------- -------------------- ------------------- --------------------
End of period........... 255,147 $2,556,386 250 $2,500 268,727 $2,698,662 250 $2,500
------------------- -------------------- ------------------- --------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
32 April 30, 1999 (Unaudited)
INTERNATIONAL GROWTH FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 93.45%
AEROSPACE/DEFENSE - 1.01%
3,800 Celesius AB, Class B.................................... $ 58,598
----------
AIRLINES - 1.79%
3,400 KLM-KONIN Luchtvaart MIJ NV............................. 103,230
----------
APPAREL & PRODUCTS - 1.35%
597 Christian Dior.......................................... 78,188
----------
AUTO - CARS - 2.12%
2,927 Renault, S.A. .......................................... 122,744
----------
BANKS - OTHER - 2.38%
1,700 Bank Austria AG......................................... 105,586
8,300 Christiania Bank OG Kreditk............................. 31,909
----------
137,495
----------
BANKS - REGIONAL - 3.62%
1,300 Banco Pastor, S.A. ..................................... 68,598
15,500 DAO Heng Bank Group, Ltd. .............................. 62,994
2,300 Sydbank A/S............................................. 77,584
----------
209,176
----------
BROADCASTING - 1.32%
1,620 Prosieben Media AG...................................... 76,264
----------
CHEMICAL - MISCELLANEOUS - 2.89%
3,700 Akzo Nobel.............................................. 167,333
----------
CONGLOMERATES - 7.50%
29,100 Fomento Economico Mexicano UBD.......................... 106,217
2,600 Huhtamaki I............................................. 93,518
3,057 Lagardere S.C.A. ....................................... 121,210
46,000 LI & Fung............................................... 112,763
----------
433,708
----------
CONSUMER FINANCE - 2.46%
1,900 Acom Co. ............................................... 142,536
----------
DRUGS - 3.00%
46 Novartis AG............................................. 67,409
9 Roche Holdings AG....................................... 105,958
----------
173,367
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 6.49%
55 Daetwyler Holding AG.................................... $ 88,430
1,200 Koninklijke Philips Electronic.......................... 103,463
11,700 Powergen 1998, Plc. .................................... 127,532
600 Sony Corp. ............................................. 56,076
----------
375,501
----------
FINANCIAL SERVICES - 4.35%
17,300 Amvescap, Plc. ......................................... 182,872
1,000 Unidanmark A/S, Class A................................. 68,745
----------
251,617
----------
FOODS - 4.71%
230 Barry Callebaut AG...................................... 37,282
864 Casino Guichard Perrach................................. 52,739
3,000 Companhia de Brasileira - ADR........................... 52,313
23,400 Somerfield, Plc. ....................................... 129,977
----------
272,311
----------
HOSPITAL SUPPLIES - 0.79%
3,100 Brocacef Holding, NV. .................................. 45,585
----------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 1.21%
10,200 Forsoft, Ltd. .......................................... 70,125
----------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 2.62%
2,000 TDK Corp. .............................................. 151,379
----------
INSURANCE - MISCELLANEOUS - 2.56%
8,700 ESG RE Ltd. ............................................ 147,900
----------
INSURANCE - MULTILINE - 1.76%
788 AXA..................................................... 101,869
----------
MACHINERY - CONSTRUCTION &
CONTRACTS - 1.47%
30,000 Industrias CH, S.A., Series B........................... 84,718
----------
MERCHANDISE - DRUG - 1.73%
2,001 Scor.................................................... 99,916
----------
MERCHANDISING - FOOD - 2.15%
84,000 Dairy Farm International................................ 124,320
----------
METALS - ALUMINUM - 1.50%
2,044 Pechiney S.A., Class A.................................. 86,494
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
METALS - STEEL - 2.17%
8,100 Usinor SA.............................................. $ 125,450
----------
OIL - SERVICE - PRODUCTS - 0.86%
3,500 Petroleo Brasileiro S.A. .............................. 49,875
----------
PAPER/FOREST PRODUCTS - 2.64%
17,800 Metsa Serla, Class B................................... 152,528
----------
PHOTOGRAPHY - 2.62%
4,000 Fuji Photo Film Co. ................................... 151,211
----------
PUBLISHING - NEWS - 3.15%
23,300 News Corp, Ltd. ....................................... 182,058
----------
REAL ESTATE - 0.06%
3,000 Wheelock & Company, Ltd. .............................. 3,484
----------
REAL ESTATE INVESTMENT TRUSTS - 2.36%
15,000 Cheung Kong............................................ 136,439
----------
TELECOMMUNICATIONS - 10.92%
3,700 ECI Telecommunications................................. 136,438
3,800 Ericsson LMTEL Co. - ADR, Series B..................... 102,600
4,800 Hellenic Telecommun.................................... 111,506
1,700 KPN NV (Koninklijke)................................... 71,038
12,400 * Telenorte Leste Partic - ADR........................... 210,025
----------
631,607
----------
UTILITIES - COMMUNICATION - 6.90%
16 DDI Corp. ............................................. 79,528
19,000 Telecom Italia, SpA.................................... 202,408
2,500 Telefonica S.A. ....................................... 117,295
----------
399,231
----------
UTILITIES - ELECTRIC - 0.99%
17,500 Hong Kong Electric Holdings............................ 57,148
----------
TOTAL COMMON STOCK
(Cost $5,173,972)...................................... 5,403,405
----------
RIGHTS - 0.03%
1,800 Telefonica, S.A., expiring 5/20/99..................... 1,676
----------
TOTAL RIGHTS
(Cost $0).............................................. 1,676
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 33
INTERNATIONAL GROWTH FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
UNITED STATES GOVERNMENT -
SHORT TERM - 8.30%
GOVERNMENT SPONSORED - 8.30%
$480,000 Federal Home Loan Bank,
4.80% due 05/03/99..................................... $ 479,872
----------
TOTAL UNITED STATES GOVERNMENT -
SHORT TERM
(Cost $479,872)........................................ 479,872
----------
TOTAL INVESTMENT
(Cost $5,653,844) - 101.78%............................ 5,884,953
Other assets less liabilities,
net - (1.78)%.......................................... (102,803)
----------
NET ASSETS (equivalent to $10.67 per share for 132,836
Class A shares; $10.61 per share for 159,452 Class B
shares; $10.67 per share for 125,210 Class I shares and
$10.69 per share for 125,000 Class II shares outstand-
ing) - 100.00%......................................... $5,782,150
----------
*Non-income producing
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
- -------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized; 542,498 shares outstanding....... $ 5,425
Additional paid in capital.................................... 5,425,011
Undistributed net realized gain on securities
and foreign currency transactions............................. 96,484
Undistributed net investment income........................... 24,198
Unrealized appreciation (depreciation) of:
Investments........................................ $ 231,109
Foreign currency translation....................... (77) 231,032
--------- -----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING......................................... $ 5,782,150
-----------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($1,417,753 divided by 132,836 shares)...................... $ 10.67
-----------
Offering price per Class A share
(100/94.25 of $10.67)*............................................ $ 11.32
-----------
Net asset value and offering price per Class B
share ($1,691,954 divided by 159,452 shares)**.................... $ 10.61
-----------
Net asset value, offering price and redemption
price per Class I share ($1,336,047 divided by
125,210 shares)................................................... $ 10.67
-----------
Net asset value, offering price and redemption
price per Class II share ($1,336,396 divided by
125,000 shares)................................................... $ 10.69
-----------
* Offering price includes sales charge of 5.75%.
The sales charge is reduced for purchases
of $25,000 and over.
** Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
34
INTERNATIONAL GROWTH FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding tax of $4,337)................ $ 50,327
Interest............................................................ 15,276
--------
Total investment income............................................ 65,603
--------
EXPENSES:
Advisory fees....................................................... 22,859
Transfer agent fees................................................. 7,017
Custodian fees...................................................... 3,576
Distribution fees:
Class A............................................................ 1,582
Class B............................................................ 6,647
Administrative service fee, Class I................................. 1,553
Registration and filing fees........................................ 26,115
Audit fees and tax services......................................... 1,788
Accounting services................................................. 766
Trustees' fees and expenses......................................... 796
Report to shareholders.............................................. 144
Miscellaneous....................................................... 194
--------
Total expenses..................................................... 73,037
Expense reimbursement (see Note 3)................................. (33,764)
--------
Net expenses....................................................... 39,273
--------
NET INVESTMENT INCOME............................................... 26,330
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES AND FOREIGN
CURRENCIES:
Net realized gain (loss) on securities:
Investments............................................... $155,825
Foreign currency transactions............................. (59,341) 96,484
--------
Net unrealized appreciation (depreciation) during the period:
Investments............................................... 231,109
Foreign currency translation.............................. (77) 231,032
-------- --------
Net realized and unrealized gain on securities and
foreign currencies during the period.............................. 327,516
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................... $353,846
--------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
----------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income....................... $ 26,330 $ -
Net realized gain on investments and foreign
currencies.................................. 96,484 -
Net unrealized appreciation of investments
and
foreign currencies during the period........ 231,032 -
-------------------------------
Increase in net assets resulting from
operations................................. 353,846 -
-------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (352) -
Class B.................................... - -
Class I.................................... (616) -
Class II................................... (1,164) -
-------------------------------
Total distributions to shareholders from
net investment income..................... (2,132) -
-------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
Class I.................................... - -
Class II................................... - -
-------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
-------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (2,132) -
-------------------------------
Net increase in net assets resulting from
share transactions
Class A.................................... 1,329,727 912
Class B.................................... 1,596,513 912
Class I.................................... 1,250,295 913
Class II................................... 1,250,251 913
-------------------------------
Total increase in net assets resulting from
share transactions.......................... 5,426,786 3,650
-------------------------------
TOTAL INCREASE IN NET ASSETS................ 5,778,500 3,650
NET ASSETS:
Beginning of year.......................... 3,650 -
-------------------------------
End of period (including undistributed net
investment income of $24,198 and $0)....... $5,782,150 $3,650
</TABLE>
-------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ----------------------------------------- -----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
------------------- -------------------- ------------------- --------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 135,504 $1,357,171 91 $ 912 159,831 $1,601,284 91 $ 912
Shares issued
for distributions
reinvested...... 35 352 - - 0 - - -
Shares
repurchased..... (2,794) (27,796) - - (470) (4,771) - -
------------------- -------------------- ------------------- --------------------
Increase in
shares
outstanding..... 132,745 1,329,727 91 912 159,361 1,596,513 91 912
Shares
outstanding:
Beginning of
period.......... 91 912 - - 91 912 - -
------------------- -------------------- ------------------- --------------------
End of period... 132,836 $1,330,639 91 $ 912 159,452 $1,597,425 91 $ 912
------------------- -------------------- ------------------- --------------------
Class I Class II
---------------------------------------- ----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------ --------------------- ------------------ ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
------------------ --------------------- ------------------ ---------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 125,059 $1,249,679 92 $ 913 124,908 $1,249,087 92 $ 913
Shares issued
for distributions
reinvested...... 60 616 - - 0 1,164 - -
Shares
repurchased..... - - - - - - - -
------------------ --------------------- ------------------ ---------------------
Increase in
shares
outstanding..... 125,119 1,250,295 92 913 124,908 1,250,251 92 913
Shares
outstanding:
Beginning of
period.......... 91 913 - - 92 913 - -
------------------ --------------------- ------------------ ---------------------
End of period... 125,210 $1,251,208 92 $ 913 125,000 $1,251,164 92 $ 913
------------------ --------------------- ------------------ ---------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 35
LARGE CAP GROWTH FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 97.75%
ADVERTISING - 0.17%
200 Omnicom Group, Inc. ................................. $ 14,500
-----------
AEROSPACE/DEFENSE - 0.50%
300 United Technologies Corp. ........................... 43,462
-----------
AIRLINES - 0.17%
200 * Continental Airlines, Inc., Class B.................. 8,636
100 Delta Air Lines, Inc. ............................... 6,344
-----------
14,980
-----------
APPAREL & PRODUCTS - 0.22%
400 * Ann Taylor Stores Corp. ............................. 19,000
-----------
AUTO - CARS - 1.36%
124 DaimlerChrysler AG................................... 12,174
400 Ford Motor Co. ...................................... 25,575
1,100 * General Motors Corp., Class H ....................... 60,913
300 Hertz Corp., Class A ................................ 17,906
-----------
116,568
-----------
BANKS - NEW YORK CITY - 0.17%
200 Citigroup, Inc. ..................................... 15,049
-----------
BANKS - OTHER - 2.06%
300 First Union Corp. ................................... 16,611
300 Fleet Financial Group, Inc. ......................... 12,919
400 Mellon Bank Corp. ................................... 29,725
750 Providian Financial Corp. ........................... 96,797
500 Wells Fargo Company ................................. 21,594
-----------
177,646
-----------
BANKS - REGIONAL - 0.68%
100 Chase Manhattan Corp. ............................... 8,274
200 Comerica, Inc. ...................................... 13,013
400 PNC Bank Corp. ...................................... 23,150
200 SunTrust Banks, Inc. ................................ 14,300
-----------
58,737
-----------
BEVERAGE -
BREWERS/DISTRIBUTORS - 0.81%
400 Anheuser-Busch Companies, Inc. ...................... 29,249
700 The Seagram Co., Ltd. ............................... 40,163
-----------
69,412
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BEVERAGE - SOFT DRINKS - 2.43%
2,100 Coca-Cola Co. ....................................... $ 142,800
1,800 PepsiCo, Inc. ....................................... 66,487
-----------
209,287
-----------
BROADCASTING - 1.56%
200 * Cablevision Systems Corp., Class A................... 15,474
300 * Clear Channel Communications, Inc. .................. 20,850
800 * Media One Group, Inc. ............................... 65,250
800 * Viacom, Inc., Class B ............................... 32,700
-----------
134,274
-----------
BUILDING MATERIALS - 0.61%
1,000 Lowe's Companies, Inc. .............................. 52,749
-----------
CHEMICAL - MAJOR - 1.22%
400 Dow Chemical Co. .................................... 52,475
1,000 Monsanto Co. ........................................ 45,250
300 Solutia, Inc. ....................................... 7,313
-----------
105,038
-----------
CONGLOMERATES - 2.02%
600 Loews Corp. ......................................... 43,913
3,800 RJR Nabisco Holdings Corp. .......................... 97,850
400 Tyco International, Ltd. ............................ 32,500
-----------
174,263
-----------
CONSUMER FINANCE - 0.40%
200 Capital One Financial Corp. ......................... 34,738
-----------
DRUGS - 10.78%
500 Allergan, Inc. ...................................... 44,937
300 American Home Products Corp. ........................ 18,300
2,600 * Amgen, Inc. ......................................... 159,738
400 Bergen Brunswig Corp., Class A ...................... 7,600
500 * Biogen, Inc. ........................................ 47,531
2,000 Bristol Myers Squibb Co. ............................ 127,125
500 Eli Lilly and Co. ................................... 36,813
200 * Immunex Corp. ....................................... 19,100
2,600 Merck & Co., Inc. ................................... 182,650
1,500 Pfizer, Inc. ........................................ 172,594
1,200 Schering-Plough Corp. ............................... 57,975
800 Warner-Lambert Co. .................................. 54,350
-----------
928,713
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 6.13%
500 Emerson Electric Co. ................................ $ 32,250
4,700 General Electric Co. ................................ 495,850
-----------
528,100
-----------
ENTERTAINMENT - 0.14%
300 Carnival Corp., Class A.............................. 12,375
-----------
FINANCE COMPANIES - 0.10%
200 Associates First Capital Corp. ...................... 8,863
-----------
FOODS - 1.23%
300 Hormel Foods Corp. .................................. 11,025
2,900 IBP, Inc. ........................................... 58,725
400 Nabisco Holdings Corp., Class A...................... 15,125
500 * U. S. Foodservice.................................... 21,031
-----------
105,906
-----------
GOLD MINING - 0.09%
400 Barrick Gold Corp. .................................. 8,050
-----------
GOVERNMENT SPONSORED - 0.53%
500 Federal Home Loan Mortgage Corp. .................... 31,375
200 Federal National Mortgage Association................ 14,188
-----------
45,563
-----------
HEALTHCARE - 3.36%
400 Cardinal Health, Inc. ............................... 23,925
700 * Lincare Holdings, Inc. .............................. 20,737
1,500 * PacifiCare Health System, Inc., Class B.............. 119,672
800 * Trigon Healthcare, Inc. ............................. 25,400
400 United HealthCare Corp. ............................. 22,450
1,100 * Wellpoint Health Networks, Inc. ..................... 77,275
-----------
289,459
-----------
HOSPITAL SUPPLIES - 3.75%
900 Abbott Laboratories.................................. 43,594
200 Becton, Dickinson and Co. ........................... 7,437
2,200 Johnson & Johnson.................................... 214,500
800 Medtronic, Inc. ..................................... 57,550
-----------
323,081
-----------
HOUSEHOLD PRODUCTS - 3.77%
600 Clorox Co. .......................................... 69,225
2,100 Procter & Gamble Co. ................................ 197,006
900 Unilever NV - ADR.................................... 58,444
-----------
324,675
-----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
36 April 30, 1999 (Unaudited)
LARGE CAP GROWTH FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 5.19%
100 * BMC Software, Inc. .................................. $ 4,306
5,100 * Microsoft Corp. ..................................... 414,694
1,050 * Oracle Corp. ........................................ 28,416
-----------
447,416
-----------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 6.06%
400 * Adaptec, Inc. ....................................... 9,625
3,100 * Dell Computer Corp. ................................. 127,681
100 * Gateway 2000, Inc. .................................. 6,619
1,300 Hewlett Packard Co. ................................. 102,538
500 International Business Machines, Corp. .............. 104,594
900 * Lexmark International Group, Inc. ................... 111,150
1,000 * Sun Microsystems, Inc. .............................. 59,813
-----------
522,020
-----------
INFORMATION PROCESSING -
COMPUTER SERVICES - 3.78%
1,400 * American Online, Inc. ............................... 199,850
1,000 Automatic Data Processing, Inc. ..................... 44,500
200 * Ceridian Corp. ...................................... 7,325
200 Electronic Data Systems Corp. ....................... 10,750
500 First Data Corp. .................................... 21,219
200 * Rationale Software Corp. ............................ 5,925
200 * Yahoo!, Inc. ........................................ 34,938
-----------
324,507
-----------
INFORMATION PROCESSING -
CONSUMER SOFTWARE - 0.20%
200 * Intuit, Inc. ........................................ 17,225
-----------
INFORMATION PROCESSING -
DATA SERVICES - 3.37%
200 * At Home Corp. ....................................... 28,787
600 * Computer Sciences Corp. ............................. 35,737
600 * Compuware Corp. ..................................... 14,625
700 * E M C Corp. ......................................... 76,256
1,500 * Novell, Inc. ........................................ 33,375
100 Pitney Bowes, Inc. .................................. 6,994
1,200 * Seagate Technology, Inc. ............................ 33,450
800 * Unisys Corp. ........................................ 25,150
600 Xerox Corp. ......................................... 35,250
-----------
289,624
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
NETWORKING - 3.92%
2,800 * Cisco Systems, Inc. ................................. $ 319,375
500 * General Instrument Corp. ............................ 18,250
-----------
337,625
-----------
INSURANCE - CASUALTY - 0.24%
600 Travelers Property Casualty Corp. ................... 20,700
-----------
INSURANCE - LIFE - 0.75%
1,100 Hartford Life Inc., Class A.......................... 57,544
100 The Equitable Companies, Inc. ....................... 6,731
-----------
64,275
-----------
INSURANCE - MULTILINE - 0.90%
400 American International Group, Inc. .................. 46,975
400 Marsh & McLennan Companies, Inc. .................... 30,625
-----------
77,600
-----------
LEISURE TIME - 0.40%
500 Royal Caribbean Cruises, Ltd. ....................... 18,469
300 * Sabre Group Holdings, Inc. .......................... 15,637
-----------
34,106
-----------
MACHINERY - INDUSTRIAL/SPECIALTY - 0.90%
600 Ingersoll-Rand Co. .................................. 41,513
500 Johnson Controls, Inc. .............................. 36,406
-----------
77,919
-----------
MEDICAL TECHNOLOGY - 0.37%
600 Guidant Corp. ....................................... 32,213
-----------
MERCHANDISE - DRUG - 1.16%
2,100 CVS Corp. ........................................... 100,013
-----------
MERCHANDISE - SPECIALTY - 4.84%
1,000 * Best Buy Co., Inc. .................................. 47,750
300 * CostCo Companies, Inc. .............................. 24,281
1,500 Fortune Brands, Inc. ................................ 59,250
3,300 Home Depot, Inc. .................................... 197,794
600 * Office Depot, Inc. .................................. 13,200
200 Sotheby's Holdings, Inc., Class A.................... 8,525
800 * Staples, Inc. ....................................... 24,000
500 Tiffany & Co. ....................................... 42,000
-----------
416,800
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MERCHANDISING - DEPARTMENT - 0.55%
700 Dayton Hudson Corp. ................................. $ 47,119
-----------
MERCHANDISING - FOOD - 0.38%
500 * Kroger Co. .......................................... 27,156
100 * Safeway, Inc. ....................................... 5,394
-----------
32,550
-----------
MERCHANDISING - MASS - 1.49%
2,800 Wal-Mart Stores, Inc. ............................... 128,800
-----------
MISCELLANEOUS - 1.49%
960 Standard & Poor's Depositary Receipts................ 128,100
-----------
NATURAL GAS - DIVERSIFIED - 0.09%
200 El Paso Energy Corp. ................................ 7,350
-----------
OIL - INTEGRATED INTERNATIONAL - 0.60%
200 Exxon Corp. ......................................... 16,612
600 Royal Dutch Petroleum Co. ........................... 35,213
-----------
51,825
-----------
OIL - SERVICES - 0.51%
600 Schlumberger, Ltd. .................................. 38,325
200 Transocean Offshore, Inc. ........................... 5,938
-----------
44,263
-----------
PAPER/FOREST PRODUCTS - 0.79%
900 Avery Dennison Corp. ................................ 61,425
100 Weyerhaeuser Co. .................................... 6,713
-----------
68,138
-----------
PHOTOGRAPHY - 2.51%
2,900 Eastman Kodak Co. ................................... 216,413
-----------
RESTAURANTS - 0.62%
800 McDonald's Corp. .................................... 33,900
300 * Tricon Global Restaurants, Inc. ..................... 19,313
-----------
53,213
-----------
SECURITIES RELATED - 1.22%
600 Charles Schwab Corp. ................................ 65,850
400 Morgan Stanley Dean Witter & Co. .................... 39,675
-----------
105,525
-----------
SEMICONDUCTOR EQUIPMENT - 0.68%
1,100 * Applied Materials, Inc. ............................. 58,988
-----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 37
LARGE CAP GROWTH FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SEMICONDUCTORS - 3.84%
4,800 Intel Corp. ......................................... $ 293,700
100 Motorola, Inc. ...................................... 8,013
200 Texas Instruments, Inc. ............................. 20,425
200 * Xilinx, Inc. ........................................ 9,125
-----------
331,263
-----------
TELECOMMUNICATIONS - 4.40%
600 * Airtouch Communications, Inc. ....................... 56,025
200 BCE, Inc. ........................................... 9,138
3,200 Lucent Technologies, Inc. ........................... 192,400
800 * MCI Worldcom, Inc. .................................. 65,750
500 * NEXTLINK Communications, Inc. ....................... 36,625
600 Scientific-Atlanta, Inc. ............................ 19,050
-----------
378,988
-----------
TOBACCO - 1.02%
2,500 Philip Morris Companies, Inc. ....................... 87,656
-----------
UTILITIES - COMMUNICATION - 1.22%
600 AT&T Corp. .......................................... 30,300
200 GTE Corp. ........................................... 13,387
200 Sprint Corp., FON Group.............................. 20,513
700 Telephone and Data Systems, Inc. .................... 41,913
-----------
106,113
-----------
TOTAL COMMON STOCK
(Cost $7,220,488).................................... 8,422,835
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
UNITED STATES GOVERNMENT-
SHORT TERM - 0.12%
U. S. TREASURY BILLS - 0.12%
$10,000 United States Treasury Bills,
4.30% due 06/10/99...................................... $ 9,952
-----------
TOTAL UNITED STATES GOVERNMENT -
SHORT TERM
(Cost $9,952)........................................... 9,952
-----------
TOTAL INVESTMENTS
(Cost $7,230,440) - 97.87% ............................. 8,432,787
Other assets less liabilities,
net - 2.13%............................................. 183,733
-----------
NET ASSETS (equivalent to $12.66 per share for 166,861
Class A shares; $12.61 per share for 264,265 Class B
shares; $12.68 per share for 125,066 Class I shares and
$12.69 per share for 125,082 Class II shares outstand-
ing) - 100.00%.......................................... $ 8,616,520
-----------
*Non-income producing
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS DEPRECIATION
<S> <C> <C>
- ----------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED(1)
2(2) (Delivery month/Value at 04/30/99)
Russell 2000 Index Futures
(June/$433.05)........................................ $ (2,250)
-----------
</TABLE>
(1) U.S. Treasury Bills with a market value of approximately $50,000 were
maintained in a segregated account with a portion placed as collateral for
futures contracts.
(2) Per 500.
<TABLE>
<CAPTION>
<S> <C> <C>
- ---------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 681,274 shares outstanding...... $ 6,813
Additional paid in capital................................... 7,229,674
Undistributed net realized gain on securities................ 198,036
Accumulated net investment loss.............................. (18,100)
Unrealized appreciation (depreciation) of:
Investments...................................... $1,202,347
Futures contracts................................ (2,250) 1,200,097
---------- -----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING........................................ $ 8,616,520
-----------
- ---------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($2,112,588 divided by 166,861 shares)................. $ 12.66
-----------
Offering price per Class A share
(100/94.25 of $12.66)*....................................... $ 13.43
-----------
Net asset value and offering price per Class B
share ($3,331,722 divided by 264,265 shares)**............... $ 12.61
-----------
Net asset value, offering price and redemption
price per Class I share ($1,585,329 divided by
125,066 shares).............................................. $ 12.68
-----------
Net asset value, offering price and redemption
price per Class II share ($1,586,881 divided by
125,082 shares).............................................. $ 12.69
-----------
* Offering price includes sales charge of 5.75%.
The sales charge is reduced for purchases
of $25,000 and over.
** Redemption price per share is equal to net asset value
less any applicable contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
38 LARGE CAP GROWTH FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends....................................................... $ 23,660
Interest........................................................ 5,365
----------
Total investment income........................................ 29,025
----------
EXPENSES:
Advisory fees................................................... 17,256
Transfer agent fees............................................. 8,177
Custodian fees.................................................. 4,220
Distribution fees:
Class A........................................................ 1,973
Class B........................................................ 9,107
Administrative service fee, Class I............................. 1,797
Registration and filing fees.................................... 26,235
Audit fees and tax services..................................... 2,177
Accounting services............................................. 945
Trustees' fees and expenses..................................... 850
Report to shareholders.......................................... 214
Miscellaneous................................................... 221
----------
Total expenses................................................. 73,172
Expense reimbursement (see Note 3)............................. (27,268)
----------
Net expenses................................................... 45,904
----------
NET INVESTMENT LOSS............................................. (16,879)
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain on securities:
Investments......................................... $ 169,938
Futures contracts................................... 28,098 198,036
----------
Net unrealized appreciation (depreciation) on securities during
the period:
Investments......................................... 1,202,347
Futures contracts................................... (2,250) 1,200,097
---------- ----------
Net realized and unrealized gain on securities during the
period....................................................... 1,398,133
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ $1,381,254
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment loss.......................... $ (16,879) $ -
Net realized gain on securities.............. 198,036 -
Net unrealized appreciation of securities
during the period........................... 1,200,097 -
---------------------------------
Increase in net assets resulting from
operations................................. 1,381,254 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A..................................... - -
Class B..................................... - -
Class I..................................... (256) -
Class II.................................... (965) -
---------------------------------
Total distributions to shareholders from
net investment income..................... (1,221) -
---------------------------------
Net realized gain on securities
Class A..................................... - -
Class B..................................... - -
Class I..................................... - -
Class II.................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (1,221) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A..................................... 1,762,899 712
Class B..................................... 2,970,368 712
Class I..................................... 1,250,117 713
Class II.................................... 1,250,253 713
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 7,233,636 2,850
---------------------------------
TOTAL INCREASE IN NET ASSETS................. 8,613,670 2,850
NET ASSETS:
Beginning of year........................... 2,850 -
---------------------------------
End of period (including accumulated net
investment loss of $18,100 and $0)......... $8,616,520 $2,850
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ----------------------------------------- ------------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
------------------- -------------------- ------------------- ---------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 168,364 $1,782,175 71 $ 712 264,373 $2,972,558 71 $ 712
Shares issued
for
distributions
reinvested...... - - - - - - - -
Shares
repurchased..... (1,574) (19,276) - - (179) (2,190) - -
------------------- -------------------- ------------------- ---------------------
Increase in
shares
outstanding..... 166,790 1,762,899 71 712 264,194 2,970,368 71 712
Shares
outstanding:
Beginning of
period.......... 71 712 - - 71 712 - -
------------------- -------------------- ------------------- ---------------------
End of period... 166,861 $1,763,611 71 $ 712 264,265 $2,971,080 71 $ 712
------------------- -------------------- ------------------- ---------------------
<CAPTION>
CHANGE IN SHARES Class I Class II
OUTSTANDING ---------------------------------------- ----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------ --------------------- ------------------ ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
------------------ --------------------- ------------------ ---------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 124,973 $1,249,861 71 $ 713 124,928 $1,249,288 72 $ 713
Shares issued
for
distributions
reinvested...... 22 256 - - 82 965 - -
Shares
repurchased..... - - - - - - - -
------------------ --------------------- ------------------ ---------------------
Increase in
shares
outstanding..... 124,995 1,250,117 71 713 125,010 1,250,253 72 713
Shares
outstanding:
Beginning of
period.......... 71 713 - - 72 713 - -
------------------ --------------------- ------------------ ---------------------
End of period... 125,066 $1,250,830 71 $ 713 125,082 $1,250,966 72 $ 713
------------------ --------------------- ------------------ ---------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 39
MID CAP GROWTH FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 96.50%
ADVERTISING - 2.71%
2,100 * Catalina Marketing Corp. .............................. $ 179,419
----------
APPAREL & PRODUCTS - 2.29%
2,200 Cintas Corp. .......................................... 151,250
----------
AUTO - ORIGINAL EQUIPMENT - 1.00%
1,000 Danaher Corp. ......................................... 66,438
----------
AUTO - REPLACEMENT PARTS - 1.31%
2,900 * AutoZone, Inc. ........................................ 87,000
----------
BUILDING MATERIALS - 2.31%
3,200 Fastenal Co. .......................................... 152,800
----------
DRUGS - 3.83%
3,500 * ALZA Corp. ............................................ 117,469
6,200 * Covance, Inc. ......................................... 136,012
----------
253,481
----------
ELECTRONIC INSTRUMENTS - 2.61%
1,600 Perkin-Elmer Corp. .................................... 173,000
----------
FINANCIAL SERVICES - 3.36%
5,900 Price (T Rowe) Assocaties ............................. 222,356
----------
GOVERNMENT SPONSORED - 2.77%
4,300 SLM Holding Corp. ..................................... 183,556
----------
HEALTHCARE - 12.59%
3,300 Cardinal Health, Inc. ................................. 197,381
6,500 * HCR Manor Care, Inc. .................................. 180,375
12,400 * Health Management Assoc. .............................. 193,750
5,800 Omnicare, Inc. ........................................ 139,562
3,000 * Quintiles Transnational Corp. ......................... 121,688
----------
832,756
----------
HOSPITAL SUPPLIES - 2.32%
3,600 * Boston Scientific Corp. ............................... 153,225
----------
HOUSEHOLD PRODUCTS - 3.08%
800 Newell Co. ............................................ 37,950
3,500 Newell Rubbermaid, Inc. ............................... 166,031
----------
203,981
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
HUMAN RESOURCES - 2.02%
4,400 * Interim Services, Inc. ................................ $ 76,450
2,400 * Robert Half International, Inc. ....................... 57,300
----------
133,750
----------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 6.09%
5,800 * BMC Software, Inc. .................................... 249,763
6,000 * Platinum Technology Intern, Inc. ...................... 153,000
----------
402,763
----------
INFORMATION PROCESSING -
COMPUTER SERVICES - 5.89%
4,200 Paychex, Inc. ......................................... 214,463
5,600 * Sterling Commerce, Inc. ............................... 175,350
----------
389,813
----------
INFORMATION PROCESSING -
CONSUMER SOFTWARE - 1.46%
7,300 * Networks Associates, Inc. ............................. 96,725
----------
INFORMATION PROCESSING -
DATA SERVICES - 15.12%
5,500 * Acxiom Corp. .......................................... 138,875
4,700 * Compuware Corp. ....................................... 114,562
700 * EMC Corp. ............................................. 76,256
3,000 * Fiserv, Inc. .......................................... 175,688
7,200 * Keane, Inc. ........................................... 178,650
10,100 * Parametric Technology Corp. ........................... 131,931
1,200 * Solectron Corp. ....................................... 58,200
6,100 * Sterling Software, Inc. ............................... 126,194
----------
1,000,356
----------
INSURANCE - MULTILINE - 2.62%
3,200 AFLAC , Inc. .......................................... 173,600
----------
LEISURE TIME - 2.52%
2,800 Harley-Davidson, Inc. ................................. 166,950
----------
MERCHANDISE - SPECIALTY - 3.71%
5,300 Dollar General Corp. .................................. 185,831
900 * Kohl's Corp. .......................................... 59,794
----------
245,625
----------
MERCHANDISING - MASS - 0.94%
1,700 * Dollar Tree Stores, Inc. .............................. 62,050
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
MISCELLANEOUS - 1.90%
3,500 Equifax, Inc. ....................................... $ 125,781
----------
OIL - SERVICES - 0.68%
1,000 * Smith International, Inc. ........................... 44,875
----------
RESTAURANTS - 1.34%
4,400 CBRL Group, Inc. .................................... 88,825
----------
SCHOOLS - 1.52%
4,000 * Sylvan Learning Systems, Inc. ....................... 100,500
----------
SECURITIES RELATED - 2.21%
4,200 Legg Mason, Inc. .................................... 146,475
----------
SEMICONDUCTORS - 2.62%
2,400 * Altera Corp. ........................................ 173,400
----------
TELECOMMUNICATIONS - 4.03%
3,500 * ADC Communications, Inc. ............................ 167,344
1,500 * Sanmina Corp. ....................................... 99,562
----------
266,906
----------
TEXTILE - PRODUCTS - 1.63%
2,300 G & K Services, Inc., Class A........................ 107,525
----------
TOTAL COMMON STOCK
(Cost $6,114,102).................................... 6,385,181
----------
PAR
VALUE
--------
UNITED STATES GOVERNMENT -
SHORT TERM - 2.76%
GOVERNMENT SPONSORED - 2.76%
$183,000 Federal Home Loan Bank,
4.80% due 05/03/99................................... 182,951
----------
TOTAL UNITED STATES GOVERNMENT -
SHORT TERM
(Cost $182,951)...................................... 182,951
----------
TOTAL INVESTMENTS
(Cost $6,297,053) - 99.26%........................... 6,568,132
Other assets less liabilities,
net - 0.74%.......................................... 48,710
----------
NET ASSETS (equivalent to $11.09 per share for
141,563 Class A shares; $11.02 per share for 206,163
Class B shares; $11.09 per share for 125,070 Class I
shares and $11.10 per share for 125,089 Class II
shares outstanding - 100.00%......................... $6,616,842
----------
*Non-income producing
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
40 April 30, 1999 (Unaudited)
MID CAP GROWTH FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
<S> <C>
- ------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 597,885 shares outstanding......... $ 5,979
Additional paid in capital....................................... 6,050,008
Undistributed net realized gain on securities.................... 305,473
Accumulated net investment loss.................................. (15,697)
Unrealized appreciation of securities............................ 271,079
-----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING........................................... $ 6,616,842
-----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
- -------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($1,569,715 divided by 141,563 shares)...................... $ 11.09
-----------
Offering price per Class A share
(100/94.25 of $11.09)*............................................ $ 11.77
-----------
Net asset value and offering price per Class B
share ($2,271,169 divided by 206,163 shares)**.................... $ 11.02
-----------
Net asset value, offering price and redemption
price per Class I share ($1,387,296 divided by
125,070 shares)................................................... $ 11.09
-----------
Net asset value, offering price and redemption
price per Class II share ($1,388,662 divided by
125,089 shares)................................................... $ 11.10
-----------
* Offering price includes sales charge of 5.75%.
The sales charge is reduced for purchases
of $25,000 and over.
** Redemption price per share is equal to net asset
value less any applicable contingent deferred sales
charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
41
MID CAP GROWTH FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Dividends............................................................. $ 8,971
Interest.............................................................. 11,641
--------
Total investment income.............................................. 20,612
--------
EXPENSES:
Advisory fees......................................................... 17,834
Transfer agent fees................................................... 7,472
Custodian fees........................................................ 3,812
Distribution fees:
Class A.............................................................. 1,688
Class B.............................................................. 7,547
Administrative service fee, Class I................................... 1,643
Registration and filing fees.......................................... 26,115
Audit fees and tax services........................................... 1,923
Accounting services................................................... 827
Trustees' fees and expenses........................................... 821
Report to shareholders................................................ 162
Miscellaneous......................................................... 202
--------
Total expenses....................................................... 70,046
Expense reimbursement (see Note 3)................................... (35,272)
--------
Net expenses......................................................... 34,774
--------
NET INVESTMENT LOSS................................................... (14,162)
--------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities....................................... 305,473
Net unrealized appreciation of securities during the period........... 271,079
--------
Net realized and unrealized gain on securities during the period.... 576,552
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................... $562,390
--------
</TABLE>
<TABLE>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
<S> <C> <C>
---------------------------------
OPERATIONS:
Net investment loss......................... $ (14,162) $ -
Net realized gain on securities............. 305,473 -
Net unrealized appreciation of securities
during the period........................... 271,079 -
---------------------------------
Increase in net assets resulting from
operations................................. 562,390 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (110) -
Class B.................................... - -
Class I.................................... (412) -
Class II................................... (1,013) -
---------------------------------
Total distributions to shareholders from
net investment income..................... (1,535) -
---------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
Class I.................................... - -
Class II................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (1,535) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 1,431,137 1,013
Class B.................................... 2,121,043 1,012
Class I.................................... 1,249,756 1,013
Class II................................... 1,250,001 1,012
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 6,051,937 4,050
---------------------------------
TOTAL INCREASE IN NET ASSETS................ 6,612,792 4,050
NET ASSETS:
Beginning of year.......................... 4,050 -
---------------------------------
End of period (including accumulated net
investment loss of $15,697 and $0)......... $6,616,842 $4,050
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ----------------------------------------- -----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------- -------------------- ------------------- --------------------
Shares sold..... 143,310 $1,451,278 101 $ 1,013 213,178 $2,198,748 101 $ 1,012
Shares issued
for
distributions
reinvested...... 10 110 - - - - - -
Shares
repurchased..... (1,858) (20,251) - - (7,116) (77,705) - -
------------------- -------------------- ------------------- --------------------
Increase in
shares
outstanding..... 141,462 1,431,137 101 1,013 206,062 2,121,043 101 1,012
Shares
outstanding:
Beginning of
period.......... 101 1,013 - - 101 1,012 - -
------------------- -------------------- ------------------- --------------------
End of period... 141,563 $1,432,150 101 $ 1,013 206,163 $2,122,055 101 $ 1,012
------------------- -------------------- ------------------- --------------------
<CAPTION>
CHANGE IN SHARES Class I Class II
OUTSTANDING --------------------------------------- ---------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------ -------------------- ------------------ --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------ -------------------- ------------------ --------------------
Shares sold..... 124,933 $1,249,344 101 $ 1,013 124,899 $1,248,988 102 $ 1,012
Shares issued
for
distributions
reinvested...... 36 412 - - 88 1,013 - -
Shares
repurchased..... - - - - - - - -
------------------ -------------------- ------------------ --------------------
Increase in
shares
outstanding..... 124,969 1,249,756 101 1,013 124,987 1,250,001 102 1,012
Shares
outstanding:
Beginning of
period.......... 101 1,013 - - 102 1,012 - -
------------------ -------------------- ------------------ --------------------
End of period... 125,070 $1,250,769 101 $ 1,013 125,089 $1,251,013 102 $ 1,102
------------------ -------------------- ------------------ --------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
42 April 30, 1999 (Unaudited)
SMALL CAP GROWTH FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 94.41%
ADVERTISING - 0.93%
900 * Getty Images, Inc. .................................... $ 23,400
600 * TMP Worldwide, Inc. ................................... 40,350
----------
63,750
----------
AEROSPACE/DEFENSE - 0.85%
300 * Alliant Techsystems, Inc. ............................. 24,563
1,600 * Orbital Sciences Corp. ................................ 33,701
----------
58,264
----------
AIRLINES - 0.26%
400 * Alaska Air Group, Inc. ................................ 17,625
----------
APPAREL & PRODUCTS - 1.68%
400 * Buckle, Inc. .......................................... 9,350
200 * Columbia Sportswear Company............................ 2,713
2,000 * Nautica Enterprises, Inc. ............................. 27,125
900 * Pacific Sunwear of California.......................... 33,384
300 * Quicksilver, Inc. ..................................... 7,968
1,100 Talbots, Inc. ......................................... 34,650
----------
115,190
----------
APPLIANCES/FURNISHINGS - 0.46%
800 * Furniture Brands International......................... 20,050
300 Herman Miller, Inc. ................................... 5,981
300 Steelcase, Inc. ....................................... 5,474
----------
31,505
----------
BANKS - OTHER - 0.29%
1,600 Sterling Bancshares, Inc. ............................. 20,000
----------
BANKS - REGIONAL - 3.51%
1,000 * Bank of Commerce....................................... 20,875
1,500 * Bank United Corp. ..................................... 60,563
400 Banknorth Group, Inc. ................................. 10,575
800 Commercial Federal Corp. .............................. 19,400
400 * FNB Financial Services Corp. .......................... 6,700
400 * Hamilton Bancorp, Inc. ................................ 10,300
3,400 National Commerce Bancorp. ............................ 85,000
400 Prime Bancshares, Inc. ................................ 6,350
700 Webster Financial Corp. ............................... 21,524
----------
241,287
----------
BEVERAGE -
BREWERS/DISTRIBUTORS - 0.90%
100 * Beringer Wine Estates, Class B......................... 3,938
1,600 * Robert Mondavi Corp., Class A.......................... 58,000
----------
61,938
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BROADCASTING - 3.77%
800 * Emmis Communications Corp., Class A.................... $ 36,000
900 * Entercom Communications Corp. ......................... 33,413
2,700 Nielson Media Research................................. 73,912
2,000 * Univision Communications, Inc. ........................ 115,750
----------
259,075
----------
BUILDING MATERIALS - 0.08%
200 HON INDUSTRIES, Inc. .................................. 5,400
----------
CHEMICAL - MAJOR - 0.93%
2,900 Albemarle Corp. ....................................... 63,800
----------
CHEMICAL - MISCELLANEOUS - 2.60%
3,000 * General Chemical Group, Inc. .......................... 54,938
1,800 * Geon, Co. ............................................. 55,125
2,300 Georgia Gulf Corp. .................................... 36,656
2,200 Olin Corp. ............................................ 32,175
----------
178,894
----------
CONSUMER FINANCE - 0.20%
600 * Creditrust Corp. ...................................... 13,500
----------
CONTAINERS - PAPER - 0.77%
2,700 * Ivex Packaging Corp. .................................. 53,156
----------
COSMETICS/TOILETRIES - 0.83%
1,800 * Steiner Leisure, Ltd. ................................. 57,150
----------
DRUGS - 7.96%
1,100 * Affymetrix, Inc. ...................................... 44,963
1,200 * Algos Pharmaceuticals Corp. ........................... 34,950
1,000 * Applied Analytical Industries.......................... 11,250
2,700 * Human Genome Sciences, Inc. ........................... 99,900
500 * IDEC Pharmaceuticals Corp. ............................ 25,374
2,600 Kendle International, Inc. ............................ 47,937
4,900 * Ligand Pharmaceuticals, Inc., Class B.................. 48,388
2,900 * Millennium Pharmaceuticals............................. 107,844
4,400 * SangStat Medical Corp. ................................ 63,800
5,800 US Bioscience, Inc. ................................... 62,350
----------
546,756
----------
ELECTRICAL EQUIPMENT - 0.50%
1,200 * ANTEC Corp. ........................................... 32,550
50 * Value America, Inc. ................................... 1,972
----------
34,522
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
ENTERTAINMENT - 1.46%
4,800 * Cinar Corp. ........................................... $ 100,200
----------
FERTLIIZERS - 0.25%
500 * Delta & Pine Land Co. ................................. 17,000
----------
FINANCE COMPANIES - 0.91%
3,000 * Financial Federal Corp. ............................... 62,625
----------
FINANCIAL SERVICES - 1.04%
700 * Compucredit Corp. ..................................... 11,200
1,000 * Gabelli Asset Management, Inc. ........................ 15,063
300 Heller Financial, Inc. ................................ 8,138
800 * Sun Bancorp, Inc. ..................................... 16,300
200 * TeleBanc Financial Corp. .............................. 20,725
----------
71,426
----------
FOODS - 0.67%
400 * American Italian Pasta Co., Class A.................... 10,750
1,100 * Keebler Foods Co. ..................................... 35,338
----------
46,088
----------
FOOTWEAR - 0.93%
1,100 * Kenneth Cole Productions, Inc., Class A................ 30,388
3,700 * Steven Madden, Ltd. ................................... 33,300
----------
63,688
----------
HEALTHCARE - 3.20%
100 * Accredo Health, Inc. .................................. 2,213
2,000 IDX Systems Corp. ..................................... 32,500
3,000 * Medquist, Inc. ........................................ 102,750
1,200 * Professional Detailing, Inc. .......................... 34,500
1,800 * Superior Consultant Holdings Corp. .................... 48,600
----------
220,563
----------
HOSPITAL SUPPLIES - 0.52%
1,100 * Closure Medical Corp. ................................. 35,475
----------
HUMAN RESOURCES - 3.08%
3,500 * Condor Technology Solutions............................ 35,438
2,900 * On Assignment, Inc. ................................... 87,906
3,900 * Provant, Inc. ......................................... 70,200
400 * Romac International, Inc. ............................. 4,500
1,800 * SM&A Corp. ............................................ 13,500
----------
211,544
----------
INFORMATION PROCESSING - 1.08%
50 * Launch Media, Inc. .................................... 1,263
900 * Safeguard Scientifics, Inc. ........................... 72,900
----------
74,163
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 43
SMALL CAP GROWTH FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 6.03%
50 Appliedtheory Corp., .................................. $ 1,025
2,600 * Aspen Technology, Inc. ................................ 22,263
1,000 * Bindview Development Corp. ............................ 21,500
700 * Concur Technologies.................................... 25,288
1,200 * Exchange Applications, Inc. ........................... 35,400
150 * Informatica Corp. ..................................... 4,238
4,100 * Mapics, Inc. .......................................... 22,934
3,200 * Microstrategy, Inc. ................................... 55,200
900 * Multex. Com, Inc....................................... 38,700
550 * Neon System............................................ 23,100
800 * New Era of Networks, Inc. ............................. 30,050
400 * pcOrder.Com, Inc. ..................................... 24,725
700 * Onyx Software Corp. ................................... 16,363
2,000 * TSI International Software, Ltd. ...................... 31,500
200 * Vignette Corp. ........................................ 19,000
1,600 * Visio Corp. ........................................... 43,200
----------
414,486
----------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 3.36%
1,300 * Avid Technology, Inc. ................................. 21,125
700 Creative Technology, Ltd. ............................. 8,746
4,600 * HMT Technology Corp. .................................. 13,225
800 * Hutchinson Technology, Inc. ........................... 17,650
3,000 * In Focus Systems, Inc. ................................ 31,125
5,000 * Maxtor Corp. .......................................... 28,281
1,800 * Polycom, Inc. ......................................... 43,987
3,800 * Radiant Systems, Inc. ................................. 43,224
200 * SCM Microsystems, Inc. ................................ 13,175
500 * Sandisk Corp. ......................................... 10,124
----------
230,662
----------
INFORMATION PROCESSING -
COMPUTER SERVICES - 3.41%
1,300 * Exodus Communications, Inc. ........................... 117,163
1,600 * Pegasus Systems, Inc. ................................. 74,800
900 * Prodigy Comm........................................... 24,188
350 * USinternetworking, Inc. ............................... 17,893
----------
234,044
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
CONSUMER SOFTWARE - 1.34%
1,300 * Macromedia, Inc. ...................................... $ 53,868
400 * Mpath Interactive, Inc. ............................... 15,750
200 * theglobe.com, inc. .................................... 12,025
150 * Xoom, Inc. ............................................ 10,500
----------
92,143
----------
INFORMATION PROCESSING -
DATA SERVICES - 1.29%
1,900 * Diamond Tech Partners, Inc. ........................... 40,374
800 * National Computer Systems, Inc. ....................... 22,400
700 * The Profit Recovery Group.............................. 25,550
----------
88,324
----------
INFORMATION PROCESSING -
NETWORKING - 1.78%
2,300 * ACT Networks, Inc. .................................... 41,400
1,000 * Concord Communications, Inc. .......................... 44,750
200 * Dialogic Corp. ........................................ 5,588
150 * Extreme Networks, Inc. ................................ 8,316
50 Marimba,............................................... 3,038
1,300 * Unify Corp. ........................................... 19,013
----------
122,105
----------
INSURANCE - CASUALTY - 0.41%
900 Renaissancere Holdings................................. 28,068
----------
INSURANCE - LIFE - 0.34%
1,700 Arm Financial Group, Inc., Class A..................... 23,588
----------
LEISURE TIME - 1.63%
750 American Classic Voyager Co. .......................... 13,405
200 * Anchor Gaming.......................................... 9,450
1,400 * Premier Parks, Inc. ................................... 48,388
2,100 * Vail Resorts, Inc. .................................... 40,688
----------
111,931
----------
LODGING - 1.71%
400 * MGM Grand, Inc. ....................................... 17,600
4,200 * ResortQuest International, Inc. ....................... 70,350
700 * Sun International Hotels, Ltd. ........................ 29,618
----------
117,568
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MACHINE TOOLS - 0.10%
300 Milacron, Inc. ........................................ $ 6,900
----------
MACHINERY - AGRICULTURE - 0.33%
700 AGCO Corp., ........................................... 6,913
1,100 New Holland N.V. ...................................... 15,950
----------
22,863
----------
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.16%
1,100 Harnischfeger Industries, Inc. ........................ 10,725
----------
MACHINERY - INDUSTRIAL/SPECIALTY - 0.38%
1,000 Newport News Shipbuilding.............................. 26,188
----------
MEDICAL TECHNOLOGY - 1.89%
4,300 * AXYS Pharmaceuticals, Inc. ............................ 17,066
2,600 * IDEXX Laboratories, Inc. .............................. 58,825
1,100 Novoste Corp. ......................................... 24,475
1,200 * Ventana Medical Systems, Inc. ......................... 29,250
----------
129,616
----------
MERCHANDISE - SPECIALTY - 0.94%
1,000 * Bush Boake Allen, Inc. ................................ 27,438
100 * General Nutrition Companies, Inc. ..................... 1,656
1,300 * Hibbett Sporting Goods, Inc. .......................... 35,506
----------
64,600
----------
METALS - MISCELLANEOUS - 0.12%
600 * RTI International Metals............................... 7,988
----------
METALS - STEEL - 0.60%
1,300 * Mueller Industries, Inc. .............................. 40,950
----------
MISCELLANEOUS - 0.09%
200 * Ducati Motor Holding, SpA - ADR........................ 5,913
----------
OIL - INTEGRATED DOMESTIC - 0.15%
900 * Tesoro Petroleum Corp. ................................ 10,181
----------
OIL - SERVICE - PRODUCTS - 0.62%
1,100 * Cooper Cameron Corp. .................................. 42,488
----------
OIL - SERVICES - 0.59%
900 * Smith International, Inc. ............................. 40,388
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
44 April 30, 1999 (Unaudited)
SMALL CAP GROWTH FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
OIL/GAS PRODUCERS - 1.45%
2,400 Devon Energy Corp. .................................... $ 79,800
900 Valero Energy Corp. ................................... 20,081
----------
99,881
----------
PAPER/FOREST PRODUCTS - 0.90%
3,100 Universal Forest Products.............................. 61,708
----------
REAL ESTATE INVESTMENT TRUSTS - 0.71%
2,000 Allied Capital Corp. .................................. 36,000
500 Arden Reality, Inc., .................................. 12,500
----------
48,500
----------
RESTAURANTS - 0.38%
100 * Buca, Inc. ............................................ 1,813
1,000 * Foodmaker, Inc. ....................................... 24,124
----------
25,937
----------
SCHOOLS - 4.75%
1,200 * Advantage Learning Sys, Inc. .......................... 31,650
700 * Argosy Education Group, Inc. .......................... 6,256
4,200 * Bright Horizons Family Solutions, Inc. ................ 90,300
4,400 * Education Management Corp. ............................ 87,727
1,500 * ITT Educational Services, Inc. ........................ 36,844
2,300 * School Specialty, Inc. ................................ 43,413
1,200 * Sylvan Learning Systems, Inc. ......................... 30,150
----------
326,340
----------
SEMICONDUCTOR EQUIPMENT - 4.94%
4,800 * ATMI, Inc. ............................................ 110,400
500 Brooks Automation, Inc. ............................... 10,750
1,900 * Cognex Corp. .......................................... 55,100
1,900 * GaSonics International Corp. .......................... 22,800
4,000 * Intevac, Inc. ......................................... 18,750
1,600 * LAM Research Corp. .................................... 50,400
2,700 * MKS Instruments, Inc. ................................. 36,788
900 * Veeco Instruments, Inc. ............................... 34,650
----------
339,638
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SEMICONDUCTORS - 3.69%
1,200 * Applied Micro Circuits Corp. .......................... $ 63,975
3,600 * Cypress Semiconductor Corp. ........................... 36,900
1,100 * Exar Corp. ............................................ 22,138
400 * Galileo Technology, Ltd. .............................. 9,200
700 * hi/fn, Inc. ........................................... 37,800
5,300 * Integrated Device Technology........................... 39,088
600 * Microchip Technology, Inc. ............................ 21,000
1,200 * PLX Technology, Inc. .................................. 23,249
----------
253,350
----------
TELECOMMUNICATIONS - 9.55%
2,500 * Allegiance Telecom, Inc. .............................. 115,000
1,600 American Mobile Satellite Corp. ....................... 27,600
1,000 * Concentric Network Corp. .............................. 83,500
100 * Convad Communications Group, Inc. ..................... 9,600
1,200 * Intermedia Communications, Inc. ....................... 38,625
1,900 * L-3 Communications Holdings............................ 92,744
600 * Metro One Telecommunications........................... 9,788
700 * MMC Networks, Inc. .................................... 17,194
1,700 * NEXTLINK Communications, Inc. ......................... 124,525
1,500 * Pairgain Technologies, Inc. ........................... 19,219
100 * Razorfish, Inc. ....................................... 4,350
200 * Rhythms Netconnections, Inc. .......................... 16,500
1,300 * Tekelec................................................ 11,741
1,400 * Teligent, Inc. ........................................ 76,125
200 * WinStar Communications, Inc. .......................... 9,725
----------
656,236
----------
TEXTILE - PRODUCTS - 0.79%
3,800 Wellman, Inc. ......................................... 54,412
----------
UTILITIES - GAS, DISTRIBUTION - 0.32%
1,700 * National-Oilwell, Inc. ................................ 22,100
----------
TOTAL COMMON STOCK
(Cost $5,865,243)...................................... 6,484,405
----------
PREFERRED STOCK - 0.16%
900 Tesoro Petroleum Corp. ................................ 11,138
----------
TOTAL PREFERRED STOCK
(Cost $13,915)......................................... 11,138
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
GOVERNMENT SPONSORED SHORT TERM - 4.41%
Federal Home Loan Bank
$303,000 4.80% due 05/03/99...................................... $ 302,919
----------
TOTAL GOVERNMENT SPONSORED -
SHORT TERM
(Cost $302,919)......................................... 302,919
----------
TOTAL INVESTMENT
(Cost $6,182,077) - 98.98%.............................. 6,798,462
Other assets less liabilities,
net - 1.02%............................................. 70,333
----------
NET ASSETS (equivalent to $11.95 per share for 139,827
Class A shares; $11.88 per share for 185,427 Class B
shares; $11.97 per share for 125,035 Class I shares and
$11.98 per share for 125,000 Class II shares
outstanding) - 100.00%.................................. $6,868,795
----------
*Non-income producing
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 45
SMALL CAP GROWTH FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
<S> <C>
- ------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 575,289 shares outstanding.......... $ 5,753
Additional paid in capital....................................... 5,861,768
Undistributed net realized gain on securities.................... 414,154
Accumulated net investment loss.................................. (29,265)
Unrealized appreciation of securities............................ 616,385
-----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING............................................ $ 6,868,795
-----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
- -------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($1,671,656 divided by 139,827 shares)...................... $ 11.95
-----------
Offering price per Class A share
(100/94.25 of $11.95)*............................................ $ 12.68
-----------
Net asset value and offering price per Class B
share ($2,203,235 divided by 185,427 shares)**.................... $ 11.88
-----------
Net asset value, offering price and redemption
price per Class I share ($1,496,227 divided by
125,035 shares)................................................... $ 11.97
-----------
Net asset value, offering price and redemption
price per Class II share ($1,497,677 divided by
125,000 shares)................................................... $ 11.98
-----------
* Offering price includes sales charge of 5.75%.
The sales charge is reduced for purchases of $25,000 and over.
** Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
46 SMALL CAP GROWTH FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends........................................................... $ 6,733
Interest............................................................ 10,613
----------
Total investment income............................................ 17,346
----------
EXPENSES:
Advisory fees....................................................... 24,447
Transfer agent fees................................................. 7,821
Custodian fees...................................................... 3,965
Distribution fees:
Class A............................................................ 1,794
Class B............................................................ 7,725
Administrative service fee, Class I................................. 1,732
Registration and filing fees........................................ 26,115
Audit fees and tax services......................................... 2,017
Accounting services................................................. 867
Trustees' fees and expenses......................................... 847
Report to shareholders.............................................. 168
Miscellaneous....................................................... 236
----------
Total expenses..................................................... 77,734
Expense reimbursement (see Note 3)................................. (31,123)
----------
Net expenses....................................................... 46,611
----------
NET INVESTMENT LOSS................................................. (29,265)
----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities..................................... 414,154
Net unrealized appreciation of securities during the period......... 616,385
----------
Net realized and unrealized gain on securities during the period.. 1,030,539
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................... $1,001,274
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended October 7, 1998
April 30, 1999 to October 31, 1998
<S> <C> <C>
----------------------------------
OPERATIONS:
Net investment loss......................... $ (29,265) $ -
Net realized gain on securities............. 414,154 -
Net unrealized appreciation of securities
during the period.......................... 616,385 -
----------------------------------
Increase in net assets resulting from
operations................................ 1,001,274 -
----------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... - -
Class B.................................... - -
Class I.................................... - -
Class II................................... - -
----------------------------------
Total distributions to shareholders from
net investment income.................... - -
----------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
Class I.................................... - -
Class II................................... - -
----------------------------------
Total distributions to shareholders
from net realized gain on securities..... - -
----------------------------------
Decrease in net assets resulting from
distributions to shareholders.............. - -
----------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 1,422,354 975
Class B.................................... 1,942,813 975
Class I.................................... 1,249,429 975
Class II................................... 1,249,025 975
----------------------------------
Total increase in net assets resulting from
share transactions......................... 5,863,621 3,900
----------------------------------
TOTAL INCREASE IN NET ASSETS................ 6,864,895 3,900
NET ASSETS:
Beginning of year.......................... 3,900 -
----------------------------------
End of period (including accumulated net
investment loss of $29,265 and $0)........ $6,868,795 $3,900
----------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ----------------------------------------- -----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------- -------------------- ------------------- --------------------
Shares sold..... 144,891 $1,480,202 98 $ 975 185,388 $1,943,495 98 $ 975
Shares issued
for
distributions
reinvested...... - - - - - - - -
Shares
repurchased..... (5,162) (57,848) - - (59) (682) - -
------------------- -------------------- ------------------- --------------------
Increase in
shares
outstanding..... 139,729 1,422,354 98 975 185,329 1,942,813 98 975
Shares
outstanding:
Beginning of
period.......... 98 975 - - 98 975 - -
------------------- -------------------- ------------------- --------------------
End of period... 139,827 $1,423,329 98 $ 975 185,427 $1,943,788 98 $ 975
------------------- -------------------- ------------------- --------------------
<CAPTION>
CHANGE IN SHARES Class I Class II
OUTSTANDING ---------------------------------------- ----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------ --------------------- ------------------ ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------ --------------------- ------------------ ---------------------
Shares sold..... 124,938 $1,249,429 97 $ 975 124,903 $1,249,025 97 $ 975
Shares issued
for
distributions
reinvested...... - - - - - - - -
Shares
repurchased..... - - - - - - - -
------------------ --------------------- ------------------ ---------------------
Increase in
shares
outstanding..... 124,938 1,249,429 97 975 124,903 1,249,025 97 975
Shares
outstanding:
Beginning of
period.......... 97 975 - - 97 975 - -
------------------ --------------------- ------------------ ---------------------
End of period... 125,035 $1,250,404 97 $ 975 125,000 $1,250,000 97 $ 975
------------------ --------------------- ------------------ ---------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 47
INTERNATIONAL VALUE FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCKS - 98.17%
AUTO - CARS - 2.93%
19,600 Fiat SpA, Private....................................... $ 33,798
13,000 Nissan Motor Co......................................... 49,906
325 Peugeot, S.A............................................ 53,979
4,000 Suzuki Motor Corporation................................ 56,998
----------
194,681
----------
BANKS - OTHER - 7.37%
7,900 Aust & NZ Banking Group, Ltd............................ 62,553
300 Banque Paribas.......................................... 32,021
610 Banque Nationale De Paris............................... 50,625
1,500 Foreningssparbanken AB.................................. 32,917
1,700 Royal Bank of Canada.................................... 83,224
6,000 Standard Charter, Plc................................... 108,230
3,000 Sumitomo Bank........................................... 40,636
73 UBS AG.................................................. 24,815
7,100 Westpac Banking Corp.................................... 54,181
----------
489,202
----------
BANKS - REGIONAL - 1.14%
2,400 Barclays, Plc........................................... 75,858
----------
BEVERAGE -
BREWERS/ DISTRIBUTORS - 3.38%
5,000 Asahi Breweries......................................... 65,212
18,500 Fraser & Neave, Ltd..................................... 81,892
900 Heineken, Holding A..................................... 45,225
3,920 South African Breweries, Ltd............................ 32,437
----------
224,766
----------
BEVERAGE - SOFT DRINKS - 0.44%
6,349 Coca-Cola Amatil, Ltd................................... 30,330
----------
BROADCASTING - 0.87%
190 Canal Plus.............................................. 52,903
600 News Corp, Ltd.......................................... 5,026
----------
57,929
----------
BUILDING MATERIALS - 3.47%
6,300 Cemex CPO SPON - ADR.................................... 60,145
330 Compagnie De Saint - Gobain............................. 56,730
3,300 CRH, Plc................................................ 65,108
40 Holderbank Bearer Glarus AG, Class B.................... 48,274
----------
230,257
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CHEMICAL - MAJOR - 0.74%
2,500 BOC Group, Plc.......................................... $ 39,549
100 DSM, NV................................................. 9,675
----------
49,224
----------
CHEMICAL - MISCELLANEOUS - 0.75%
1,050 Hoechst AG.............................................. 49,819
----------
CONGLOMERATES - 3.22%
5,300 Broken Hill Proprietary Co.............................. 59,896
5,000 Hutchison Whampoa....................................... 44,834
1,150 Preussag AG............................................. 60,586
45,000 Singapore Technology.................................... 48,870
----------
214,186
----------
CONSUMER FINANCE - 0.78%
600 Nichiei Co., Ltd........................................ 52,052
----------
COSMETICS/TOILETRIES - 1.47%
2,900 Reckitt & Colman, Plc................................... 34,641
4,000 Shiseido Co., Ltd....................................... 63,033
----------
97,674
----------
DRUGS - 4.71%
2,000 Astrazeneca, Plc........................................ 77,877
2,320 Astrazeneca (SEK)....................................... 90,540
26 Novartis AG............................................. 38,101
3,000 Sankyo Co............................................... 62,991
1,000 Takeda Chemical Industries.............................. 43,503
----------
313,012
----------
ELECTRIC PRODUCTS -
MISCELLANEOUS - 2.17%
1,900 ASM Lithography Holdings, N.V........................... 80,199
860 Siemens Ag.............................................. 63,686
----------
143,885
----------
ELECTRICAL EQUIPMENT - 6.71%
700 Hirose Electric Co., Ltd................................ 65,128
700 Mabuchi Motor Co. Ltd................................... 53,976
2,000 Murata Manufacturing Co., Ltd........................... 114,498
6,000 NEC Corporation......................................... 71,716
1,500 Sony Corp............................................... 140,118
----------
445,436
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
ELECTRONIC INSTRUMENTS - 1.83%
1,000 Advantest Corp......................................... $ 76,528
300 Keyence Corp........................................... 44,768
----------
121,296
----------
ENTERTAINMENT - 0.92%
500 Nintendo Co., Ltd...................................... 46,646
200 Sony Music Entertainment, Inc.......................... 14,585
----------
61,231
----------
FINANCE COMPANIES - 2.76%
4,600 3I Group............................................... 50,215
3,400 Lend Lease Corp., Ltd.................................. 45,821
1,100 Newcourt Credit Group, Inc............................. 30,901
700 Orix Corp.............................................. 56,386
----------
183,323
----------
FINANCIAL SERVICES - 1.47%
666 Deutsche Bank AG....................................... 38,751
100 Shohkoh Fund & Co., Ltd................................ 58,674
----------
97,425
----------
FOODS - 2.45%
3,800 Cadbury Schweppes, Plc................................. 50,951
200 Groupe Damone.......................................... 53,220
10 Nestle, S.A............................................ 18,526
13,500 Tesco, Plc............................................. 39,990
----------
162,687
----------
HEAVY DUTY TRUCKS/PARTS - 0.95%
4,100 Bombardier, Inc........................................ 62,785
----------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 2.08%
4,600 * Asustek Computer, Inc.................................. 62,192
1,000 TDK Corp............................................... 75,689
----------
137,881
----------
INFORMATION PROCESSING -
NETWORKING - 0.55%
1,000 New Bridge Networks Corp............................... 36,622
----------
INSURANCE - CASUALTY - 0.25%
3,000 Mitsui Marine & Fire................................... 16,647
----------
INSURANCE - MISCELLANEOUS - 0.30%
9 Schweizerische Rueckversicherungs -
Gesellschaft........................................... 19,715
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
48 April 30, 1999 (Unaudited)
INTERNATIONAL VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- ------------------------------------------------------------------------------
INSURANCE - MULTILINE - 2.45%
550 AEGON, N.V........................................... $ 52,802
1,800 Assicurazioni Generali ORD........................... 70,171
4,700 Royal & Sun Alliance Insurance Group................. 40,010
----------
162,983
----------
LEISURE TIME - 0.71%
5,600 EMI Group, Plc....................................... 47,289
----------
LODGING - 0.76%
190 Accor, S.A........................................... 50,150
----------
MACHINE TOOLS - 0.52%
2,000 THK Co., Ltd......................................... 34,701
----------
MACHINERY - INDUSTRIAL/ SPECIALTY - 5.72%
16,900 Invensys, Plc........................................ 86,809
1,800 Mannesmann AG........................................ 237,266
6,700 TI Group, Plc........................................ 55,743
----------
379,818
----------
MEDICAL TECHNOLOGY - 1.84%
1,100 Degussa Ag........................................... 48,060
1,000 Hoya Corp............................................ 52,388
1,000 Terumo Corp.......................................... 21,793
----------
122,241
----------
MERCHANDISING - DEPARTMENT - 0.56%
6,000 Mycal Corp........................................... 37,216
----------
MERCHANDISING - FOOD - 0.56%
1,000 Koninklijke Ahold, N.V............................... 37,185
----------
MERCHANDISING - MASS - 1.38%
2,200 * Cifra SA de CV - ADR................................. 43,175
9,100 Coles Myer, Ltd...................................... 48,332
----------
91,507
----------
MISCELLANEOUS - 1.67%
2,900 De Beers Cons Mines - ADR............................ 71,050
2,100 Metallgesellschaft AG................................ 40,122
----------
111,172
----------
OIL - INTEGRATED INTERNATIONAL - 2.27%
9,600 Eni, Spa............................................. 63,271
850 Norsk Hydro ASA...................................... 38,070
6,600 Shell Transport & Trading Co......................... 49,393
----------
150,734
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- ------------------------------------------------------------------------------
OIL/GAS PRODUCERS - 1.38%
270 Total SA, Class B..................................... $ 37,018
8,000 Woodside Petroleum, Ltd............................... 54,508
----------
91,526
----------
PAPER/FOREST PRODUCTS - 1.05%
2,300 UPM-Kymmene Oyj....................................... 69,740
----------
PHOTOGRAPHY - 0.21%
1,000 Nikon Corp............................................ 13,746
----------
PUBLISHING - NEWS - 2.58%
850 News Corp., Ltd. - ADR................................ 25,978
5,800 Reuters Group, Plc.................................... 78,420
2,300 Thomson Corp.......................................... 66,975
----------
171,373
----------
REAL ESTATE INVESTMENT TRUSTS - 0.66%
5,000 Sun Hung Kai Properties, Ltd.......................... 43,867
----------
SECURITIES RELATED - 0.81%
5,000 Nomura Securities..................................... 53,980
----------
SEMICONDUCTOR EQUIPMENT - 1.72%
2,000 Tokyo Electron, Limited............................... 113,995
----------
SEMICONDUCTORS - 2.03%
720 STMicroelectronics, N.V............................... 75,102
2,500 * Taiwan Semiconductor - ADR............................ 60,000
----------
135,102
----------
TELECOMMUNICATIONS - 6.49%
5,100 Colt TelecomGroup..................................... 94,538
100 Ericsson LMTEL Co. - ADR, Series B.................... 2,700
1,300 Ericsson LMTEL Co., Series B.......................... 34,157
2,300 Nokia Oyj, Class A.................................... 177,500
1 NTT Mobile Communications............................. 58,674
2,500 Orange, Plc........................................... 33,882
1,000 Teleglobe............................................. 29,291
----------
430,742
----------
TOBACCO - 0.72%
28 CIE Financ Richemont - UTS, Class A................... 47,665
----------
UTILITIES - COMMUNICATION - 7.50%
2,300 Deutsche Telekom AG................................... 90,757
4 NTT Corp. ............................................ 43,586
155 Swisscom AG........................................... 56,963
6,000 Telecom Italia, SpA................................... 63,918
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
UTILITIES - COMMUNICATION - Continued
15,300 Telecom Italia, SpA - RNC........................... $ 82,386
1,336 Telefonica, S.A. ................................... 62,682
900 Telefonos De Mexico - ADR........................... 68,175
5,000 TIM, SpA............................................ 29,833
----------
498,300
----------
UTILITIES - MISCELLANEOUS - 0.46%
180 Suez Lyonnaise Des Eaux............................. 30,659
----------
WATER SERVICES - 0.41%
2,400 United Utilities, Plc. ............................. 27,165
----------
TOTAL COMMON STOCK
(Cost $5,485,500)................................... 6,520,779
----------
RIGHTS - 0.04%
1,150 Preussag AG, expiring 05/03/99...................... 1,198
1,336 Telefonica, S.A., expiring 5/20/99.................. 1,244
----------
2,442
----------
TOTAL RIGHTS
(Cost $0)........................................... 2,442
----------
<CAPTION>
PAR
VALUE
---------
<C> <S> <C>
UNITED STATES GOVERNMENT SHORT TERM - 6.58%
GOVERNMENT SPONSORED - 6.58%
$437,000 Federal Home Loan Bank,
4.80% due 05/03/99.................................. 437,000
----------
TOTAL UNITED STATES GOVERNMENT - SHORT TERM
(Cost $437,000)..................................... 437,000
----------
TOTAL INVESTMENT
(Cost $5,922,500) - 104.79%......................... 6,960,221
Other assets less liabilities,
net - (4.79)%....................................... (318,217)
----------
NET ASSETS (equivalent to $12.19 per share for
133,776 Class A shares; $12.12 per share for 160,324
Class B shares; $12.19 per share for 126,523 Class I
shares and $12.20 per share for 125,092 Class II
shares outstanding) - 100.00%....................... $6,642,004
----------
*Non-income producing
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 49
INTERNATIONAL VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
FORWARD CURRENCY CONTRACTS
<TABLE>
- -------------------------------------------------------------------------
<CAPTION>
Unrealized
Settlement Face Market Appreciation
Long/Short Date(s) Value Value (Depreciation)
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C>
26,499 EUR / 30,000 USD 05/10/1999 $ 30,000 $ 28,049 $(1,951)
40,000 USD / 4,526,800 JPY 05/17/1999 40,000 41,977 1,977
19,357 EUR / 2,492,070 JPY 07/06/1999 20,876 20,364 (512)
39,000 USD / 4,431,570 JPY 08/02/1999 39,000 40,377 1,377
21,000 USD / 2,305,170 JPY 08/04/1999 21,000 22,424 1,424
7,503 EUR / 4,973 GPB 08/04/1999 7,943 7,941 (2)
153,000 USD / 17,870,400 JPY 08/27/1999 153,000 153,759 759
-------------------------------------------------------------
$311,819 $314,891 $ 3,072
-------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C> <C>
- -------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share, unlimited
shares authorized; 545,715 shares outstanding...................... $ 5,457
Additional paid in capital......................................... 5,513,210
Undistributed net realized gain on securities
and foreign currency transactions.................................. 73,969
Undistributed net investment income................................ 8,603
Unrealized appreciation (depreciation) of:
Investments............................................ $1,037,721
Foreign currency translation........................... (28)
Forward currency contracts............................. 3,072 1,040,765
---------- ----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING.............................................. $6,642,004
----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
- -------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($1,630,295 divided by 133,776 shares)........................ $ 12.19
----------
Offering price per Class A share
(100/94.25 of $12.19)*.............................................. $ 12.93
----------
Net asset value and offering price per Class B
share ($1,943,346 divided by 160,324 shares)**...................... $ 12.12
----------
Net asset value, offering price and redemption
price per Class I share ($1,542,225 divided by
126,523 shares)..................................................... $ 12.19
----------
Net asset value, offering price and redemption
price per Class II share ($1,526,138 divided by
125,092 shares)..................................................... $ 12.20
----------
* Offering price includes sales charge of 5.75%.
The sales charge is reduced for purchases
of $25,000 and over.
** Redemption price per share is equal to net asset
value less any applicable contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
50 INTERNATIONAL VALUE FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $4,655)........ $ 32,507
Interest...................................................... 11,347
----------
Total investment income...................................... 43,854
----------
EXPENSES:
Advisory fees................................................. 27,580
Transfer agent fees........................................... 7,446
Custodian fees................................................ 3,806
Distribution fees:
Class A...................................................... 1,714
Class B...................................................... 7,276
Administrative service fee, Class I........................... 1,682
Registration and filing fees.................................. 26,116
Audit fees and tax services................................... 1,930
Accounting services........................................... 831
Trustees' fees and expenses................................... 808
Report to shareholders........................................ 126
Miscellaneous................................................. 203
----------
Total expenses............................................... 79,518
Expense reimbursement (see Note 3)........................... (45,856)
----------
Net Expenses................................................. 33,662
----------
NET INVESTMENT INCOME......................................... 10,192
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES AND FOREIGN
CURRENCIES:
Net realized gain on securities:
Investments........................................ $ 70,174
Foreign currency transactions...................... 3,462
Forward currency contracts......................... 333 73,969
---------
Net unrealized appreciation (depreciation) during the period
on:
Investments........................................ 1,037,721
Foreign currency translation....................... (28)
Forward currency contracts......................... 3,072 1,040,765
--------- ----------
Net realized and unrealized gain on securities and
foreign currencies during the period....................... 1,114,734
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. $1,124,926
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income........................ $ 10,192 $ -
Net realized gain on investments and foreign
currencies.................................. 73,969 -
Net unrealized appreciation of investments
and
foreign currencies during the period........ 1,040,765 -
---------------------------------
Increase in net assets resulting from
operations................................. 1,124,926 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A..................................... (170) -
Class B..................................... - -
Class I..................................... (440) -
Class II.................................... (979) -
---------------------------------
Total distributions to shareholders from
net investment income..................... (1,589) -
---------------------------------
Net realized gain on securities
Class A..................................... - -
Class B..................................... - -
Class I..................................... - -
Class II.................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (1,589) -
---------------------------------
Net increase in net assets resulting from
share transactions
Class A..................................... 1,349,420 900
Class B..................................... 1,648,238 900
Class I..................................... 1,267,330 900
Class II.................................... 1,250,079 900
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 5,515,067 3,600
---------------------------------
TOTAL INCREASE IN NET ASSETS................. 6,638,404 3,600
NET ASSETS:
Beginning of year........................... 3,600 -
---------------------------------
End of period (including undistributed net
investment income of $8,603 and $0)........ $6,642,004 $3,600
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ---------------------------------------- -----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------- -------------------- ------------------- --------------------
Shares sold..... 133,927 $1,352,286 90 $ 900 160,340 $1,649,499 90 $ 900
Shares issued
for
distributions
reinvested...... 16 170 - - - - - -
Shares
repurchased..... (257) (3,036) - - (106) (1,261) - -
------------------- -------------------- ------------------- --------------------
Increase in
shares
outstanding..... 133,686 1,349,420 90 900 160,234 1,648,238 90 900
Shares
outstanding:
Beginning of
period.......... 90 900 - - 90 900 - -
------------------- --------------------- ------------------- --------------------
End of period... 133,776 $1,350,320 90 $ 900 160,324 $1,649,138 90 $ 900
------------------- --------------------- ------------------- ---------------------
<CAPTION>
CHANGE IN SHARES Class I Class II
OUTSTANDING ---------------------------------------- ----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------ --------------------- ------------------ ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------ --------------------- ------------------ ---------------------
Shares sold..... 126,392 $1,266,890 90 $ 900 124,910 $1,249,100 90 $ 900
Shares issued
for
distributions
reinvested...... 41 440 - - 92 979 - -
Shares
repurchased..... - - - - - - - -
------------------ --------------------- ------------------ ---------------------
Increase in
shares
outstanding..... 126,433 1,267,330 90 900 125,002 1,250,079 90 900
Shares
outstanding:
Beginning of
period.......... 90 900 - - 90 900 - -
------------------ --------------------- ------------------ ---------------------
End of period... 126,523 $1,268,230 90 $ 900 125,092 $1,250,979 90 $ 900
------------------ --------------------- ------------------ ---------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 51
LARGE CAP VALUE FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 99.19%
AEROSPACE/DEFENSE - 1.69%
900 The B.F. Goodrich Co. ................................ $ 35,774
600 United Technologies Corp. ............................ 86,925
-----------
122,699
-----------
AUTO - CARS - 2.76%
2,200 Ford Motor Co. ....................................... 140,662
500 General Motors Corp. ................................. 44,469
700 Meritor Automotive, Inc. ............................. 14,831
-----------
199,962
-----------
BANKS - NEW YORK CITY - 5.04%
3,600 Citigroup, Inc. ...................................... 270,899
700 J.P. Morgan & Co., Inc. .............................. 94,325
-----------
365,224
-----------
BANKS - OTHER - 6.84%
3,000 Bank of America Corp. ................................ 216,000
600 First Union Corp. .................................... 33,224
2,100 Fleet Financial Group, Inc. .......................... 90,431
1,900 * Unionbancal Corp. .................................... 64,838
2,100 Wells Fargo Company................................... 90,694
-----------
495,187
-----------
BANKS - REGIONAL - 5.06%
2,200 Bank One Corp. ....................................... 129,800
1,900 Chase Manhattan Corp. ................................ 157,225
600 KeyCorp. ............................................. 18,563
2,800 Pacific Century Financial Corp. ...................... 60,900
-----------
366,488
-----------
BEVERAGE -
BREWERS/DISTRIBUTORS - 0.91%
900 Anheuser-Busch Companies, Inc. ....................... 65,812
-----------
BROADCASTING - 0.94%
1,300 U S WEST, Inc. ....................................... 68,005
-----------
BUILDING MATERIALS - 1.93%
1,200 Sherwin-Williams Co. ................................. 37,348
600 Southdown, Inc. ...................................... 38,438
1,100 USG Corp. ............................................ 64,213
-----------
139,999
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CHEMICAL - MAJOR - 1.16%
500 Du Pont (E.I.) de Nemours & Co. ...................... $ 35,312
2,000 Solutia, Inc. ........................................ 48,750
-----------
84,062
-----------
CHEMICAL - MISCELLANEOUS - 0.91%
600 * FMC Corp. ............................................ 39,000
1,700 * W.R. Grace & Co. ..................................... 27,093
-----------
66,093
-----------
CONGLOMERATES - 0.50%
1,400 Ogden Corp. .......................................... 36,137
-----------
CONTAINERS - METAL/GLASS - 0.46%
600 Ball Corp. ........................................... 32,962
-----------
DRUGS - 2.05%
900 Allergan, Inc. ....................................... 80,887
1,800 Bergen Brunswig Corp., Class A........................ 34,200
600 Pharmacia & Upjohn, Inc. ............................. 33,600
-----------
148,687
-----------
ENTERTAINMENT - 0.68%
700 Time Warner, Inc. .................................... 49,000
-----------
FINANCIAL SERVICES - 1.66%
1,400 Countrywide Credit Industries, Inc. .................. 63,437
2,100 Heller Financial, Inc. ............................... 56,963
-----------
120,400
-----------
FOODS - 1.98%
800 Dean Foods Co. ....................................... 28,550
2,800 IBP, Inc. ............................................ 56,700
900 Quaker Oats Co. ...................................... 58,106
-----------
143,356
-----------
GOVERNMENT SPONSORED - 1.37%
1,400 Federal National Mortgage Association................. 99,313
-----------
HEALTHCARE - 1.44%
600 * PacifiCare Health System, Inc., Class B .............. 47,869
800 * Wellpoint Health Networks, Inc. ...................... 56,200
-----------
104,069
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C> <C>
- -------------------------------------------------------------------------------
HEAVY DUTY TRUCKS/PARTS - 1.27%
800 * Navistar International Corp. .................... $ 41,850
900 PACCAR, Inc. .................................... 50,400
-----------
92,250
-----------
HOUSEHOLD PRODUCTS - 0.86%
1,700 Premark International, Inc. ..................... 62,581
-----------
INFORMATION PROCESSING - COMPUTER HARDWARE
SYSTEMS - 1.21%
1,900 * Apple Computer, Inc. ............................ 87,400
-----------
INFORMATION PROCESSING -
DATA SERVICES - 6.64%
1,300 International Business Machine Corp. ............ 271,944
3,200 Reynolds and Reynolds Co., Class A............... 73,000
2,300 * Seagate Technology, Inc. ........................ 64,113
2,300 * Unisys Corp. .................................... 72,306
-----------
481,363
-----------
INSURANCE - CASUALTY - 0.84%
2,000 Everest Reinsurance Holdings..................... 60,625
-----------
INSURANCE - LIFE - 0.61%
1,400 Conseco, Inc. ................................... 44,188
-----------
INSURANCE - MISCELLANEOUS - 0.80%
500 Ambac Financial Group, Inc. ..................... 30,188
500 PMI Group, Inc. ................................. 27,906
-----------
58,094
-----------
INSURANCE - MULTILINE - 4.78%
2,400 Allstate Corp. .................................. 87,300
1,300 American International Group, Inc. .............. 152,669
800 Marsh & McLennan Companies, Inc.................. 61,250
2,300 Old Republic International Corp. ................ 44,994
-----------
346,213
-----------
LEISURE TIME - 0.94%
1,300 * Sabre Group Holdings, Inc. ...................... 67,763
-----------
MACHINERY - INDUSTRIAL/SPECIALTY - 1.15%
1,200 Ingersoll-Rand Co. .............................. 83,025
-----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
52 April 30, 1999 (Unaudited)
LARGE CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MERCHANDISE - SPECIALTY - 0.90%
600 * Best Buy Co., Inc. .................................... $ 28,650
600 Circuit City Stores, Inc. ............................. 36,900
----------
65,550
----------
MERCHANDISING - DEPARTMENT - 1.62%
900 * Federated Department Stores, Inc. ..................... 42,019
1,900 May Department Stores Co. ............................. 75,644
----------
117,663
----------
MERCHANDISING - FOOD - 0.85%
1,200 Albertsons, Inc. ...................................... 61,800
----------
MERCHANDISING - MASS - 0.82%
4,000 * KMart Corp. ........................................... 59,500
----------
METALS - ALUMINUM - 0.77%
900 Alcoa, Inc. ........................................... 56,025
----------
METALS - MISCELLANEOUS - 0.37%
1,400 Engelhard Corp. ....................................... 26,863
----------
OIL - INTEGRATED DOMESTIC - 1.71%
700 Amerada Hess Corp. .................................... 39,900
900 Burlington Resources, Inc. ............................ 41,456
1,000 Kerr-McGee Corp. ...................................... 42,375
----------
123,731
----------
OIL - INTEGRATED INTERNATIONAL - 5.85%
500 Chevron Corp. ......................................... 49,875
3,000 Exxon Corp. ........................................... 249,188
700 Mobil Corp. ........................................... 73,325
700 Murphy Oil Corp. ...................................... 32,856
300 Texaco, Inc. .......................................... 18,825
----------
424,069
----------
OIL/GAS PRODUCERS - 1.20%
1,400 Apache Corp. .......................................... 42,963
1,900 Ultramar Diamond Shamrock.............................. 43,819
----------
86,782
----------
PAPER/FOREST PRODUCTS - 1.89%
1,100 Boise Cascade Corp. ................................... 44,274
600 Georgia-Pacific Corp. ................................. 55,500
600 Kimberly-Clark Corp. .................................. 36,788
----------
136,562
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
PUBLISHING - NEWS - 0.52%
700 Knight-Ridder, Inc. ................................... $ 37,669
----------
RAILROAD - 0.66%
1,300 Burlington Northern Santa Fe........................... 47,613
----------
RESTAURANTS - 1.07%
1,200 * Tricon Global Restaurants, Inc. ....................... 77,250
----------
SAVINGS & LOAN - 2.08%
2,600 Charter One Financial, Inc. ........................... 81,250
1,700 Dime Bancorp, Inc. .................................... 39,206
300 Golden West Financial Corp. ........................... 30,038
----------
150,494
----------
SECURITIES RELATED - 2.70%
800 Lehman Brothers Holdings, Inc. ........................ 44,450
500 Merrill Lynch & Co., Inc. ............................. 41,969
1,100 Morgan Stanley Dean Witter Discover.................... 109,106
----------
195,525
----------
TELECOMMUNICATIONS - 1.25%
1,100 * MCI Worldcom, Inc. .................................... 90,406
----------
UTILITIES - COMMUNICATION - 11.71%
2,000 Ameritech Corp. ....................................... 136,875
3,798 AT&T - Liberty Media Group............................. 191,799
2,500 Bell Atlantic Corp. ................................... 144,063
3,300 BellSouth Corp. ....................................... 147,675
1,400 GTE Corp. ............................................. 93,713
2,400 SBC Communications, Inc. .............................. 134,400
----------
848,525
----------
UTILITIES - ELECTRIC - 6.27%
900 Allegheny Energy, Inc. ................................ 30,656
800 Ameren Corp. .......................................... 30,950
1,400 Central & South West Corp. ............................ 34,738
1,200 Cinergy Corp. ......................................... 35,775
1,300 Conectiv, Inc. ........................................ 31,119
900 Constellation Energy Group, Inc. ...................... 25,313
1,000 DTE Energy Co. ........................................ 40,813
1,300 FirstEnergy Corp. ..................................... 38,594
900 GPU, Inc. ............................................. 34,313
1,300 Kansas City Power & Light Co. ......................... 34,775
1,200 New Century Energies, Inc. ............................ 42,000
700 PP&L Resources, Inc. .................................. 19,556
500 Peco Energy Co. ....................................... 23,719
800 Public Service Enterprise Group, Inc. ................. 32,000
----------
454,321
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
UTILITIES - GAS, DISTRIBUTION - 0.47%
1,700 MCN Energy Group, Inc. ............................... $ 33,894
----------
TOTAL COMMON STOCK
(Cost $6,338,282)..................................... 7,185,199
----------
<CAPTION>
PAR
VALUE
---------
<C> <S> <C>
UNITED STATES GOVERNMENT -
SHORT TERM - 1.52%
GOVERNMENT SPONSORED - 1.52%
$110,000 Federal Home Loan Bank,
4.80% due 05/03/99.................................... 109,971
----------
TOTAL UNITED STATES GOVERNMENT -
SHORT TERM
(Cost $109,971)....................................... 109,971
----------
TOTAL INVESTMENTS
(Cost $6,448,253) - 100.71%........................... 7,295,170
Other assets less liabilities,
net - (0.71%)......................................... (51,227)
----------
NET ASSETS (equivalent to $11.60 per share for 156,123
Class A shares; $11.55 per share for 217,976 Class B
shares; $11.59 per share for 125,714 Class I shares
and $11.59 per share for 125,737 Class II shares
outstanding) - 100.00%................................ $7,243,943
----------
*Non-income producing
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 53
LARGE CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
<S> <C>
- ------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 625,550 shares outstanding.......... $ 6,253
Additional paid in capital....................................... 6,345,915
Undistributed net realized gain on securities.................... 46,138
Undistributed net investment income.............................. (1,280)
Unrealized appreciation of securities............................ 846,917
-----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING............................................ $ 7,243,943
-----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
- -------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($1,810,633 divided by 156,123 shares)....................... $ 11.60
-----------
Offering price per Class A share
(100/94.25 of $11.60)*............................................. $ 12.31
-----------
Net asset value and offering price per Class B
share ($2,517,855 divided by 217,976 shares)**..................... $ 11.55
-----------
Net asset value, offering price and redemption
price per Class I share ($1,457,538 divided by
125,714 shares).................................................... $ 11.59
-----------
Net asset value, offering price and redemption
price per Class II share ($1,457,917 divided by
125,737 shares).................................................... $ 11.59
-----------
* Offering price includes sales charge of 5.75%.
The sales charge is reduced for purchases
of $25,000 and over.
** Redemption price per share is equal to net asset
value less any applicable contingent deferred sales
charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
54 LARGE CAP VALUE FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Dividends............................................................. $ 53,003
Interest.............................................................. 3,987
--------
Total investment income.............................................. 56,990
--------
EXPENSES:
Advisory fees......................................................... 14,115
Transfer agent fees................................................... 7,578
Custodian fees........................................................ 3,896
Distribution fees:
Class A.............................................................. 1,763
Class B.............................................................. 8,070
Administrative service fee, Class I................................... 1,638
Registration and filing fees.......................................... 26,115
Audit fees and tax services........................................... 1,972
Accounting services................................................... 851
Trustees' fees and expenses........................................... 823
Report to shareholders................................................ 177
Miscellaneous......................................................... 204
--------
Total expenses....................................................... 67,202
Expense reimbursement (see Note 3)................................... (29,618)
--------
Net expenses......................................................... 37,584
--------
NET INVESTMENT INCOME................................................. 19,406
--------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities....................................... 46,138
Net unrealized appreciation of securities during the period........... 846,917
--------
Net realized and unrealized gain on securities during the period.... 893,055
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................... $912,461
--------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income....................... $ 19,406 $ -
Net realized gain on securities............. 46,138 -
Net unrealized appreciation of securities
during the period........................... 846,917 -
---------------------------------
Increase in net assets resulting from
operations................................. 912,461 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (5,211) -
Class B.................................... (565) -
Class I.................................... (6,632) -
Class II................................... (8,278) -
---------------------------------
Total distributions to shareholders from
net investment income..................... (20,686) -
---------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
Class I.................................... - -
Class II................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (20,686) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 1,583,523 725
Class B.................................... 2,250,916 725
Class I.................................... 1,257,275 725
Class II................................... 1,257,554 725
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 6,349,268 2,900
---------------------------------
TOTAL INCREASE IN NET ASSETS................ 7,241,043 2,900
NET ASSETS:
Beginning of year.......................... 2,900 -
---------------------------------
End of period (including undistributed net
investment income of ($1,280) and $0)...... $7,243,943 $2,900
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ----------------------------------------- -----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------- -------------------- ------------------- --------------------
Shares sold..... 157,104 $1,594,817 72 $ 725 218,195 $2,254,324 72 $ 725
Shares issued
for
distributions
reinvested...... 462 5,211 - - 52 565 - -
Shares
repurchased..... (1,515) (16,505) - - (343) (3,973) - -
------------------- -------------------- -------------------- --------------------
Increase in
shares
outstanding..... 156,051 1,583,523 72 725 217,904 2,250,916 72 725
Shares
outstanding:
Beginning of
period.......... 72 725 - - 72 725 - -
------------------- -------------------- -------------------- --------------------
End of period... 156,123 $1,584,248 72 $ 725 217,976 $2,251,641 72 $ 725
------------------- -------------------- -------------------- --------------------
<CAPTION>
CHANGE IN SHARES Class I Class II
OUTSTANDING ---------------------------------------- ----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------ --------------------- ------------------ ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------ --------------------- ------------------ ---------------------
Shares sold..... 125,051 $1,250,643 73 $ 725 124,927 $1,249,276 73 $ 725
Shares issued
for
distributions
reinvested...... 590 6,632 - - 737 8,278 - -
Shares
repurchased..... - - - - - - - -
------------------ --------------------- ------------------ ---------------------
Increase in
shares
outstanding..... 125,641 1,257,275 73 725 125,664 1,257,554 73 725
Shares
outstanding:
Beginning of
period.......... 73 725 - - 73 725 - -
------------------ --------------------- ------------------ ---------------------
End of period... 125,714 $1,258,000 73 $ 725 125,737 $1,258,279 73 $ 725
------------------ --------------------- ------------------ ---------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 55
MID CAP VALUE FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 97.96%
AEROSPACE/DEFENSE - 1.50%
700 Gulfstream............................................. $ 34,125
1,000 Raytheon Co., Class A.................................. 69,187
----------
103,312
----------
AIRLINES - 1.37%
2,200 * Continental Airlines, Inc., Class B.................... 95,012
----------
AUTO - CARS - 1.84%
2,300 * General Motors Corp., Class H.......................... 127,362
----------
AUTO - ORIGINAL EQUIPMENT - 2.32%
3,500 * Lear Corp. ............................................ 160,562
----------
AUTO - REPLACEMENT PARTS - 1.61%
3,700 * AutoZone, Inc. ........................................ 111,000
----------
BANKS - OTHER - 1.21%
1,700 BankBoston Corp. ...................................... 83,300
----------
BANKS - REGIONAL - 4.97%
2,000 Bank One Corp. ........................................ 118,000
1,200 Chase Manhattan Corp. ................................. 99,300
2,400 North Fork Bancorporation, Inc. ....................... 54,000
2,500 Valley National Bancorp................................ 72,030
----------
343,330
----------
BROADCASTING - 2.88%
4,300 A.H. Belo Corp. ....................................... 92,987
1,300 * Media One Group, Inc. ................................. 106,031
----------
199,018
----------
CHEMICAL - MAJOR - 1.04%
1,900 Hercules, Inc. ........................................ 71,843
----------
CHEMICAL - MISCELLANEOUS - 2.97%
4,400 Lyondell Chemical Co. ................................. 85,800
2,300 Praxair, Inc. ......................................... 119,024
----------
204,824
----------
CONTAINERS - METAL/GLASS - 1.01%
2,400 * Owens-Illinois, Inc. .................................. 69,600
----------
DRUGS - 3.06%
3,000 * ALZA Corp. ............................................ 100,687
2,500 * Centocor, Inc. ........................................ 110,938
----------
211,625
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.55%
800 * Teradyne, Inc. ........................................ $ 37,750
----------
FINANCE COMPANIES - 1.19%
1,700 Finova Group, Inc. .................................... 82,130
----------
FINANCIAL SERVICES - 1.84%
2,800 Countrywide Credit Industries, Inc. ................... 126,874
----------
FOODS - 1.51%
1,900 ConAgra, Inc. ......................................... 47,263
1,500 Nabisco Holdings Corp., Class A........................ 56,719
----------
103,982
----------
GOVERNMENT SPONSORED - 1.98%
3,200 SLM Holding Corp. ..................................... 136,600
----------
HEALTHCARE - 0.46%
900 McKesson HBOC, Inc. ................................... 31,500
----------
HEAVY DUTY TRUCKS/PARTS - 2.04%
2,700 * Navistar International Corp. .......................... 141,244
----------
HOSPITAL MANAGEMENT - 1.54%
4,500 * Tenet Healthcare Corp. ................................ 106,313
----------
HOSPITAL SUPPLIES - 2.65%
900 Baxter International, Inc. ............................ 56,700
3,400 Becton, Dickinson and Co. ............................. 126,438
----------
183,138
----------
INFORMATION PROCESSING - 1.12%
5,900 * Parametric Technology Corp. ........................... 77,069
----------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 4.15%
1,400 Hewlett Packard Co. ................................... 110,425
475 International Business Machine......................... 99,364
4,300 * Quantum Corp. ......................................... 76,863
----------
286,652
----------
INFORMATION PROCESSING -
DATA SERVICES - 3.54%
2,500 Computer Associates International...................... 106,719
3,500 * Storage Technology Corp. .............................. 67,594
1,200 Xerox Corp. ........................................... 70,500
----------
244,813
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INSURANCE - MISCELLANEOUS - 3.45%
4,700 Ace Limited............................................ $ 142,175
700 Ambac Financial Group, Inc. ........................... 42,263
800 MBIA, Inc. ............................................ 53,800
----------
238,238
----------
INSURANCE - MULTILINE - 4.06%
2,200 CIGNA Corp. ........................................... 191,813
2,200 Cincinnati Financial Corp. ............................ 88,825
----------
280,638
----------
LEISURE TIME - 0.97%
3,000 * Mirage Resorts, Inc. .................................. 67,313
----------
LODGING - 0.79%
4,100 Host Marriott Corp. ................................... 54,581
----------
MERCHANDISE - DRUG - 1.86%
5,500 Rite Aid Corp. ........................................ 128,219
----------
MERCHANDISE - SPECIALTY - 2.06%
1,600 * Consolidated Stores Corp. ............................. 55,000
1,200 Tandy Corp. ........................................... 87,034
----------
142,034
----------
METALS - STEEL - 0.60%
1,600 AK Steel Holding Corp. ................................ 41,600
----------
MULTIMEDIA - 0.41%
700 Shaw Communications Inc., Class B...................... 28,350
----------
NATURAL GAS - DIVERSIFIED - 2.17%
2,300 Coastal Corp. ......................................... 87,975
3,600 UGI Corp. ............................................. 61,875
----------
149,850
----------
OIL - INTEGRATED DOMESTIC - 0.27%
600 USX-Marathon Group..................................... 18,750
----------
OIL - SERVICES - 1.34%
3,200 McDermott International, Inc. ......................... 92,800
----------
OIL/GAS PRODUCERS - 0.49%
1,100 Apache Corp. .......................................... 33,757
----------
PAPER/FOREST PRODUCTS - 2.48%
4,500 Fort James Corp. ...................................... 171,000
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
56 April 30, 1999 (Unaudited)
MID CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
POLLUTION CONTROL - 1.89%
7,400 * Allied Waste Industries, Inc. ......................... $ 130,888
----------
PUBLISHING - NEWS - 1.45%
2,000 Scripps Co. ........................................... 100,000
----------
PUBLISHING/PRINTING - 4.18%
5,400 Dunn & Bradstreet Corp. ............................... 198,450
1,900 Harcourt General, Inc. ................................ 90,606
----------
289,056
----------
RAILROAD - 1.01%
1,900 Burlington Northern Santa Fe........................... 69,588
----------
REAL ESTATE INVESTMENT TRUSTS - 0.88%
3,700 Indymac Mortgage Holdings.............................. 61,050
----------
SECURITIES RELATED - 1.28%
1,900 Bear Stearns Co., Inc. ................................ 88,588
----------
SEMICONDUCTORS - 1.18%
800 Texas Instruments, Inc. ............................... 81,700
----------
TELECOMMUNICATIONS - 4.03%
3,700 * Loral Space & Communications, Ltd. .................... 72,150
1,100 * MCI Worldcom, Inc. .................................... 90,406
1,700 Nortel Networks Corp. ................................. 115,919
----------
278,475
----------
UTILITIES - COMMUNICATION - 2.31%
1,050 * AT&T - Liberty Media Group............................. 67,069
1,600 * Bell Atlantic Corp. ................................... 92,200
----------
159,269
----------
UTILITIES - ELECTRIC - 5.77%
1,200 GPU, Inc. ............................................. 45,750
1,800 Illinova Corp. ........................................ 47,250
1,400 New Century Energies, Inc. ............................ 49,000
3,900 * Niagara Mohawk Holdings, Inc. ......................... 52,163
2,400 Texas Utilities Co. ................................... 95,400
2,800 Unicom Corp. .......................................... 108,675
----------
398,238
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
UTILITIES - GAS, DISTRIBUTION - 2.49%
1,500 NICOR, Inc. .......................................... $ 54,563
4,400 Tosco Corp. .......................................... 117,700
----------
172,263
----------
UTILITIES - GAS, PIPELINE - 2.19%
3,200 Williams Companies, Inc. ............................. 151,200
----------
TOTAL COMMON STOCK
(Cost $6,171,970)..................................... 6,766,298
----------
PREFERRED STOCK - 1.59%
3,600 News Corp., Ltd. - ADR................................ 110,025
----------
TOTAL PREFERRED STOCK
(Cost $95,649)........................................ 110,025
----------
<CAPTION>
PAR
VALUE
---------
<C> <S> <C>
UNITED STATES GOVERNMENT -
SHORT TERM - 1.59%
GOVERNMENT SPONSORED - 1.59%
$110,000 Federal Home Loan Bank,
4.80% due 05/03/99.................................... 110,000
----------
TOTAL UNITED STATES GOVERNMENT - SHORT TERM
(Cost $110,000)....................................... 110,000
----------
TOTAL INVESTMENT
(Cost $6,377,619) - 101.14% .......................... 6,986,323
Other assets less liabilities,
net - (1.14%)......................................... (78,757)
----------
NET ASSETS - (equivalent to $12.37 per share for
133,675 Class A shares; $12.32 per share for 174,310
Class B shares; $12.37 per share for 125,526 Class I
shares and $12.37 per share for 125,642 Class II
shares outstanding) - 100.00%......................... $6,907,566
----------
*Non-income producing
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
- ------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 559,153 shares outstanding.......... $ 5,592
Additional paid in capital....................................... 5,664,016
Undistributed net realized gain on securities.................... 633,808
Undistributed net investment income.............................. (4,554)
Unrealized appreciation of securities............................ 608,704
-----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING............................................ $ 6,907,566
-----------
- ------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($1,653,672 divided by 133,675 shares)..................... $ 12.37
-----------
Offering price per Class A share
(100/94.25 of $12.37)*........................................... $ 13.12
-----------
Net asset value and offering price per Class B
share ($2,146,669 divided by 174,310 shares)**................... $ 12.32
-----------
Net asset value, offering price and redemption
price per Class I share ($1,552,809 divided by
125,526 shares).................................................. $ 12.37
-----------
Net asset value, offering price and redemption
price per Class II share ($1,554,416 divided by
125,642 shares).................................................. $ 12.37
-----------
* Offering price includes sales charge of 5.75%.
The sales charge is reduced for purchases
of $25,000 and over.
** Redemption price per share is equal to net asset
value less any applicable contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
57
MID CAP VALUE FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<S> <C>
INVESTMENT
INCOME:
Dividends..................................................... $ 51,635
Interest...................................................... 6,034
----------
Total
investment income............................................ 57,669
----------
EXPENSES:
Advisory fees................................................. 20,689
Transfer agent fees........................................... 7,457
Custodian fees................................................ 3,834
Distribution fees:
Class A...................................................... 1,712
Class B...................................................... 7,335
Administrative service fee, Class I........................... 1,675
Registration and filing fees.................................. 26,115
Audit fees and tax services................................... 1,930
Accounting services........................................... 832
Trustees' fees and expenses................................... 821
Report to shareholders........................................ 169
Miscellaneous................................................. 197
----------
Total expenses............................................... 72,766
Expense reimbursement (see Note 3)........................... (29,874)
----------
Net expenses................................................. 42,892
----------
NET INVESTMENT INCOME......................................... 14,777
----------
REALIZED AND UNREALIZED
GAIN ON SECURITIES:
Net realized gain on securities............................... 633,808
Net unrealized appreciation of
securities during the period.................................. 608,704
----------
Net realized and unrealized gain
on securities during the period............................. 1,242,512
----------
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS..................................... $1,257,289
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income....................... $ 14,777 $ -
Net realized gain on securities............. 633,808 -
Net unrealized appreciation of securities
during the period........................... 608,704 -
---------------------------------
Increase in net assets resulting from
operations................................. 1,257,289 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (4,350) -
Class B.................................... (2,384) -
Class I.................................... (5,419) -
Class II................................... (7,178) -
---------------------------------
Total distributions to shareholders from
net investment income..................... (19,331) -
---------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
Class I.................................... - -
Class II................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (19,331) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 1,346,382 988
Class B.................................... 1,808,156 987
Class I.................................... 1,254,872 988
Class II................................... 1,256,248 987
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 5,665,658 3,950
---------------------------------
TOTAL INCREASE IN NET ASSETS................ 6,903,616 3,950
NET ASSETS:
Beginning of year.......................... 3,950 -
---------------------------------
End of period (including undistributed net
investment income of ($4,554) and $0)...... $6,907,566 $3,950
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ----------------------------------------- -----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------- -------------------- ------------------- --------------------
Shares sold..... 133,994 $1,351,620 99 $ 988 174,200 $1,808,182 99 $ 987
Shares issued
for
distributions
reinvested...... 403 4,350 - - 222 2,384 - -
Shares
repurchased..... (821) (9,588) - - (211) (2,410) - -
------------------- -------------------- ------------------- --------------------
Increase in
shares
outstanding..... 133,576 1,346,382 99 988 174,211 1,808,156 99 987
Shares
outstanding:
Beginning of
period.......... 99 988 - - 99 987 - -
------------------- -------------------- ------------------- --------------------
End of period... 133,675 $1,347,370 99 $ 988 174,310 $1,809,143 99 $ 987
------------------- -------------------- ------------------- --------------------
<CAPTION>
CHANGE IN SHARES Class I Class II
OUTSTANDING ---------------------------------------- ----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------ --------------------- ------------------ ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------ --------------------- ------------------ ---------------------
Shares sold..... 124,934 $1,249,453 99 $ 988 124,902 $1,249,070 98 $ 987
Shares issued
for
distributions
reinvested...... 493 5,419 - - 642 7,178 - -
Shares
repurchased..... - - - - - - - -
------------------ --------------------- ------------------ ---------------------
Increase in
shares
outstanding..... 125,427 1,254,872 99 988 125,544 1,256,248 98 987
Shares
outstanding:
Beginning of
period.......... 99 988 - - 98 987 - -
------------------ --------------------- ------------------ ---------------------
End of period... 125,526 $1,255,860 99 $ 988 125,642 $1,257,235 98 987
------------------ --------------------- ------------------ ---------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
58 April 30, 1999 (Unaudited)
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 88.03%
AEROSPACE/DEFENSE - 0.27%
200 * Aviall, Inc. ........................................ $ 3,187
100 * Fairchild Corp., Class A ............................ 1,343
200 Gencorp, Inc......................................... 4,625
100 * Moog, Inc............................................ 3,113
200 * Remec, Inc........................................... 2,588
-----------
14,856
-----------
AIRLINES - 1.03%
100 * Alaska Air Group, Inc................................ 4,405
300 * American West Holdings Corp., Class B................ 6,263
1,100 * Atlantic Coast Airlines Holdings..................... 33,963
100 Circle International Group, Inc...................... 1,700
100 * Midwest Express Holdings, Inc........................ 3,125
100 SkyWest, Inc......................................... 2,600
400 * Transport World Airlines, Inc........................ 2,175
-----------
54,231
-----------
APPAREL & PRODUCTS - 1.71%
200 * Ann Taylor Stores Corp. ............................. 9,499
100 Authentic Fitness Corp. ............................. 1,724
100 Cato Corp., Class A.................................. 1,125
1,600 Claire's Stores, Inc. ............................... 53,000
100 * Dress Barn, Inc...................................... 1,463
100 * Footstar, Inc........................................ 3,381
100 * Galey & Lord, Inc. .................................. 456
100 * Gymboree Corp........................................ 1,038
100 Jo-Ann Stores, Inc. ................................. 1,613
200 Kellwood Co.......................................... 5,150
100 Oxford Industries, Inc............................... 2,644
100 Phillips-Van Heusen Corp. ........................... 875
100 * Syms Corp. .......................................... 806
100 Talbots, Inc......................................... 3,150
100 UniFirst Corp........................................ 1,744
100 * Urban Outfitters, Inc................................ 1,938
-----------
89,606
-----------
APPLIANCES/FURNISHINGS - 0.43%
100 Bassett Furniture Industries......................... 2,399
100 * CORT Business Services Corp. ........................ 2,306
300 * Griffon Corp......................................... 2,194
100 Haverty Furniture Cos., Inc.......................... 2,363
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
APPLIANCES/FURNISHINGS - Continued
400 Heilig-Meyers Co. ................................... $ 2,350
200 Kimball International, Inc., Class B................. 3,200
300 La-Z-Boy Chair Co.................................... 5,906
300 * Metromedia International Group....................... 1,763
-----------
22,481
-----------
AUTO - CARS - 0.17%
100 * Avis Rent A Car, Inc................................. 3,137
100 * Budget Group, Inc.................................... 1,244
200 Dollar Thrifty Automotive Group, Inc. ............... 3,724
100 * United Auto Group, Inc. ............................. 975
-----------
9,080
-----------
AUTO - ORIGINAL EQUIPMENT - 1.80%
200 * Allen Telecom, Inc................................... 1,875
100 Arvin Industries, Inc................................ 3,663
1,100 Borg-Warner Automotive, Inc.......................... 62,425
200 * Breed Technologies, Inc.............................. 1,088
100 * Delco Remy International, Inc........................ 981
200 Donaldson Co., Inc................................... 4,475
400 Mark IV Industries, Inc.............................. 7,150
100 * Miller Industries, Inc............................... 506
100 Modine Manufacturing Co. ............................ 3,125
100 Superior Industries International, Inc............... 2,500
300 * Tower Automotive, Inc................................ 6,900
-----------
94,688
-----------
AUTO - REPLACEMENT PARTS - 0.55%
200 * Aftermarket Technology Corp.......................... 1,837
200 Collins & Aikman Corp................................ 950
100 Kaydon Corp.......................................... 3,375
100 Myers Industries, Inc. .............................. 2,263
100 Simpson Industries, Inc.............................. 1,025
100 Smith A. O. Corp. ................................... 2,525
200 * SPX Corp. ........................................... 13,063
100 Standard Motor Products, Inc. ....................... 2,325
100 Standard Products Co., Class A....................... 1,800
-----------
29,163
-----------
BANKS - OTHER - 0.09%
100 First Merchants Corp................................. 2,150
100 Irwin Financial Corp................................. 2,388
-----------
4,538
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BANKS - REGIONAL - 9.79%
200 AMCORE Financial, Inc................................. $ 4,199
100 BancFirst Corp........................................ 3,549
200 BancorpSouth, Inc. ................................... 3,324
200 BancWest Corp. ....................................... 7,962
300 Bank Atlantic Bancorp, Class B........................ 2,408
190 Banknorth Group, Inc. ................................ 5,023
100 BSB Bancorp, Inc. .................................... 2,569
100 BT Financial Corp. ................................... 2,531
200 Carolina First Corp. ................................. 5,400
1,100 Century South Banks, Inc. ............................ 28,600
125 Chemical Financial Corp. ............................. 4,125
200 Citizens Banking Corp. ............................... 6,513
100 CNB Bancshares, Inc. ................................. 4,244
105 Commerce Bancorp, Inc. ............................... 4,633
400 Commercial Federal Corp. ............................. 9,700
200 Commonwealth Bancorp, Inc. ........................... 3,100
1,700 Community First Bankshares............................ 34,744
100 Cullen/Frost Bankers, Inc. ........................... 5,394
200 F&M National Corp. ................................... 5,563
2,700 Fidelity National Corp. .............................. 24,300
100 First Commerce Bancshares, Inc., Class B.............. 2,525
200 First Commonwealth Financial.......................... 4,375
100 First Federal Capital Corp. .......................... 1,425
110 First Financial Bankshares............................ 3,548
100 First Midwest Bancorp, Inc. .......................... 3,994
100 * First Republic Bank................................... 2,575
200 First United Bancshares............................... 3,025
100 First Western Bancorp, Inc. .......................... 3,388
132 FirstMerit Corp. ..................................... 3,671
200 FNB Corp. ............................................ 4,925
110 Grand Premier Financial, Inc. ........................ 1,238
100 Harleysville National Corp. .......................... 3,500
100 HUBCO, Inc. .......................................... 3,538
400 Independence Community Bank........................... 5,825
100 Independent Bank Corp................................. 1,344
2,000 InterWest Bancorp, Inc................................ 46,500
100 JeffBanks, Inc........................................ 2,125
100 National Bancorp of Alaska............................ 2,675
105 NBT Bancorp, Inc...................................... 2,244
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 59
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BANKS - REGIONAL - Continued
100 Omega Financial Corp. ................................. $ 3,550
200 One Valley Bancorp, Inc................................ 7,700
200 Peoples Bancorp, Inc................................... 2,113
100 * PFF Bancorp, Inc....................................... 1,872
2,400 Premier Bancshares, Inc................................ 47,100
200 Riggs National Corp.................................... 3,375
300 Roslyn Bancorp, Inc. .................................. 5,475
200 St. Paul Bancorp, Inc. ................................ 4,850
100 Sterling Bancorp....................................... 2,075
200 Susquehanna Bancshares, Inc. .......................... 3,700
100 UMB Financial Corp..................................... 4,156
3,200 United Bankshares, Inc................................. 86,400
100 USBANCORP, Inc......................................... 1,588
200 UST Corp............................................... 4,838
100 Vermont Financial Services............................. 3,081
1,700 Webster Financial Corp. ............................... 52,275
200 Westamerica Bankcorporation............................ 6,675
100 Whitney Holding Corp. ................................. 4,050
----------
515,194
----------
BEVERAGE -
BREWERS/DISTRIBUTORS - 0.99%
200 Adolph Coors Co., Class B.............................. 10,700
800 * Canandaigua Brands, Inc., Class A...................... 41,200
----------
51,900
----------
BROADCASTING - 1.30%
100 * Adelphia Communications Corp., Class A................. 6,824
400 * ANTEC Corp............................................. 10,850
900 * Cox Radio, Inc., Class A............................... 43,875
100 * Jones Intercable, Inc.................................. 4,638
100 * On Command Corp........................................ 1,319
100 * Paxson Communications Corp. ........................... 1,069
----------
68,575
----------
BUILDING MATERIALS - 2.35%
200 Apogee Enterprises, Inc................................ 2,449
100 Butler Manufacturing Co................................ 2,969
300 Fedders USA, Inc....................................... 1,725
100 Florida Rock Industries, Inc........................... 3,438
100 * Giant Cement Holding, Inc. ............................ 2,213
100 Interface, Inc., Class A............................... 706
1,600 Lone Star Industries, Inc. ............................ 57,100
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BUILDING MATERIALS - Continued
64 Lowe's Companies, Inc. ................................ $ 3,376
1,500 * Nortek, Inc. .......................................... 43,406
100 Puerto Rican Cement Co., Inc. ......................... 3,331
100 Texas Industries, Inc. ................................ 3,088
----------
123,801
----------
CHEMICAL - MAJOR - 0.06%
100 Albemarle Corp......................................... 2,200
100 * Polymer Group, Inc..................................... 1,038
----------
3,238
----------
CHEMICAL - MISCELLANEOUS - 1.12%
300 A. Schulman, Inc. ..................................... 5,250
100 * Airgas, Inc. .......................................... 1,175
200 Cambrex Corp........................................... 5,125
200 ChemFirst, Inc......................................... 4,775
100 Dexter Corp............................................ 4,106
400 Ethyl Corp............................................. 2,050
100 Ferro Corp............................................. 2,769
100 * Foamex International, Inc.............................. 581
100 General Chemical Group, Inc. .......................... 1,831
200 Geon Co................................................ 6,125
100 H.B. Fuller Co......................................... 6,813
100 Lawter International, Inc.............................. 1,200
200 M.A. Hanna Co.......................................... 3,238
100 Minerals Technologies, Inc. ........................... 5,400
100 NL Industries, Inc..................................... 1,181
100 * Octel Corp. ........................................... 1,400
100 OM Group, Inc. ........................................ 3,638
100 Penford Corp........................................... 1,306
100 * Thermo Optek Corp...................................... 875
----------
58,838
----------
CONGLOMERATES - 0.19%
200 Alexander & Baldwin, Inc............................... 4,350
100 * MAXXAM, Inc............................................ 5,731
----------
10,081
----------
CONSUMER FINANCE - 0.20%
300 * Arcadia Financial Ltd.................................. 2,044
100 Chittenden Corp........................................ 2,875
300 * IMC Mortgage Co. ...................................... 47
200 WesBanco, Inc. ........................................ 5,725
----------
10,691
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CONTAINERS - METAL/GLASS - 0.38%
100 AptarGroup, Inc. ...................................... $ 2,799
200 Ball Corp. ............................................ 10,988
100 CLARCOR, Inc. ......................................... 1,875
100 Greif Brothers Corp., Class A.......................... 2,538
100 * Silgan Holdings, Inc. ................................. 1,725
----------
19,925
----------
CONTAINERS - PAPER - 0.73%
1,000 Chesapeake Corp. ...................................... 32,500
100 * Ivex Packaging Corp. .................................. 1,969
200 * Shorewood Packaging Corp. ............................. 3,950
----------
38,419
----------
COSMETICS/TOILETRIES - 0.06%
200 * Playtex Products, Inc. ................................ 3,300
----------
DRUGS - 0.51%
100 ALPharma Inc., Class A................................. 2,949
55 Bergen Brunswig Corp., Class A......................... 1,044
100 Bindley Western Industries............................. 3,088
100 Carter-Wallace, Inc. .................................. 1,756
100 * Cephalon, Inc. ........................................ 1,213
500 * Gensia, Inc. .......................................... 1,750
100 * Guilford Pharmaceuticals, Inc.......................... 1,075
500 * IVAX Corp. ............................................ 6,563
100 * Neurogen Corp. ........................................ 1,075
100 * Regeneron Pharmaceuticals, Inc. ....................... 663
200 * Roberts Pharmaceutical Corp. .......................... 3,400
100 * Vertex Pharmaceuticals, Inc. .......................... 2,113
----------
26,689
----------
ELECTRIC PRODUCTS -
MISCELLANEOUS - 0.11%
300 CMP Group, Inc. ....................................... 5,813
----------
ELECTRICAL EQUIPMENT - 0.62%
100 * AFC Cable Systems...................................... 3,300
200 * AMKOR Technologies, Inc. .............................. 1,950
300 Avista Corp. .......................................... 4,500
100 * BancTec, Inc. ......................................... 1,625
100 Belden, Inc. .......................................... 1,925
100 DT Industries, Inc. ................................... 900
200 * Esterline Technologies Corp. .......................... 2,825
100 General Cable Corp. ................................... 1,488
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
60 April 30, 1999 (Unaudited)
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - Continued
100 * General Semiconductor, Inc. ........................... $ 750
100 * Hutchinson Technology, Inc. ........................... 2,206
200 * Intergraph Corp. ...................................... 1,338
100 Juno Lighting, Inc. ................................... 2,275
300 * Kemet Corp. ........................................... 4,631
100 * Kent Electronics Corp. ................................ 931
100 Thomas Industries, Inc. ............................... 1,988
----------
32,632
----------
ELECTRONIC INSTRUMENTS - 1.97%
200 BMC Industries......................................... 1,787
100 * Evans & Sutherland Computer............................ 1,750
200 Gerber Scientific, Inc. ............................... 3,763
100 * Hadco Corp. ........................................... 2,625
100 Harman International Industries........................ 4,594
300 * Imation Corp. ......................................... 5,306
600 * Integrated Device Technology........................... 4,425
100 * Marshall Industries.................................... 1,613
200 Methode Electronics, Inc., Class A..................... 2,975
1,300 National Computer Systems, Inc. ....................... 36,400
200 Pioneer-Standard Electronics........................... 1,675
300 * Read-Rite Corp. ....................................... 1,856
500 * Sensormatic Electronics Corp. ......................... 6,000
100 * Thermedics, Inc. ...................................... 750
1,600 * Vishay Intertechnology, Inc. .......................... 27,900
----------
103,419
----------
ENTERTAINMENT - 0.45%
300 * Ascent Entertainment Group............................. 3,187
200 * Aztar Corp. ........................................... 1,388
100 * Carmike Cinemas, Inc., Class A......................... 2,156
200 * Florida Panthers Holdings, Inc. ....................... 1,775
100 Gaylord Entertainment Co. ............................. 3,100
100 * GTECH Holdings Corp. .................................. 2,606
100 * Hollywood Entertainment Corp. ......................... 2,469
100 * Marvel Enterprises Inc. ............................... 938
100 * SFX Entertainment, Inc., Class A....................... 6,175
----------
23,794
----------
FERTILIZERS - 0.06%
200 Mississippi Chemical Corp. ............................ 1,825
300 Terra Industries, Inc. ................................ 1,388
----------
3,213
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
FINANCE COMPANIES - 1.31%
100 Charter Municipal Mortgage
Acceptance Co. ........................................ $ 1,287
200 * Credit Acceptance Corp. ............................... 1,400
100 * Delta Financial Corp. ................................. 788
400 Phoenix Investment Partners, Ltd. ..................... 3,950
100 Resource Bancshares Mortgage
Group, Inc. ........................................... 1,225
100 Student Loan Corp. .................................... 4,063
600 U.S. Trust Corp. ...................................... 54,825
200 * UniCapital Corp. ...................................... 1,250
----------
68,788
----------
FINANCIAL SERVICES - 0.61%
100 Advanta Corp. ......................................... 1,350
700 * HealthCare Financial Partners.......................... 23,625
100 Richmond Count Financial Corp. ........................ 1,644
100 Southwest Securities Group, Inc. ...................... 5,294
----------
31,913
----------
FOODS - 2.78%
3,000 * Aurora Foods, Inc. .................................... 44,624
300 Chiquita Brands International.......................... 3,000
200 Corn Products International, Inc. ..................... 5,775
2,500 Earthgrains Co. ....................................... 52,969
100 International Multifoods Corp. ........................ 2,213
100 Interpool, Inc. ....................................... 1,469
100 * Omega Protein Corp. ................................... 506
170 * Ralcorp Holdings, Inc. ................................ 3,124
200 Smucker, J.M. Co., Class A............................. 4,300
1,200 Smucker, J.M. Co., Class B............................. 21,000
300 Universal Foods Corp. ................................. 6,300
100 * Vlasic Foods International, Inc. ...................... 819
----------
146,099
----------
FOOTWEAR - 0.20%
200 Brown Group, Inc. ..................................... 3,263
100 Justin Industries, Inc. ............................... 1,350
200 * Nine West Group, Inc. ................................. 5,700
----------
10,313
----------
FREIGHT - 0.28%
100 Air Express International Corp. ....................... 2,187
200 * Kirby Corp. ........................................... 3,800
100 * Kitty Hawk, Inc. ...................................... 825
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
FREIGHT - Continued
200 Overseas Shipholding Group............................. $ 2,500
100 * SEACOR SMIT, Inc. ..................................... 5,294
----------
14,606
----------
GOLD MINING - 0.06%
100 * Getchell Gold Corp. ................................... 3,413
----------
HEALTHCARE - 2.14%
100 * American Oncology Resources ........................... 893
100 * American Retirement Corp. ............................. 1,662
400 * Apria Healthcare Group, Inc. .......................... 6,250
103 Block Drug Co., Inc., Class A.......................... 3,618
300 * Genesis Health Ventures, Inc. ......................... 2,081
100 HealthPlan Services Corp. ............................. 650
300 * Mariner Post-Acute Network, Inc. ...................... 1,031
1,800 * NCS HealthCare, Inc., Clas A........................... 23,400
400 * NovaCare, Inc. ........................................ 675
200 * PhyCor, Inc. .......................................... 1,000
44 * Priority Healthcare Corp. ............................. 2,230
100 * Respironics, Inc. ..................................... 1,413
100 * Rural/Metro Corp. ..................................... 813
200 * Sierra Health Services, Inc. .......................... 2,500
400 * Sun Healthcare Group, Inc. ............................ 600
200 * Sunrise Medical, Inc. ................................. 1,450
1,200 * Universal Health Services.............................. 62,175
500 * Vencor, Inc............................................ 438
----------
112,879
----------
HEAVY DUTY TRUCKS/PARTS - 1.42%
100 Bandag, Inc. .......................................... 3,187
200 Federal Signal Corp. .................................. 4,950
2,000 * Terex Corp. ........................................... 63,250
200 Titan International, Inc. ............................. 1,988
100 Wabash National Corp. ................................. 1,569
----------
74,944
----------
HOMEBUILDERS - 0.55%
200 Cavalier Homes, Inc. .................................. 1,887
200 D R Horton, Inc. ...................................... 3,862
100 Del Webb Corp. ........................................ 2,313
200 Kaufman & Broad Home Corp. ............................ 4,863
200 Pulte Corp. ........................................... 4,525
100 Ryland Group, Inc. .................................... 2,625
100 Standard Pacific Corp. ................................ 1,381
200 * Toll Brothers, Inc. ................................... 4,275
100 * U.S. Home Corp. ....................................... 3,425
----------
29,156
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 61
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
HOSPITAL MANAGEMENT - 0.07%
100 * DVI, Inc. ............................................. $ 1,419
300 * Medaphas Corp. ........................................ 1,050
300 Ventas, Inc. .......................................... 1,350
----------
3,819
----------
HOSPITAL SUPPLIES - 0.81%
100 * Acuson Corp. .......................................... 1,524
100 * Coherent, Inc. ........................................ 1,488
100 * CONMED Corp. .......................................... 2,888
3,600 Owens & Minor, Inc. ................................... 35,550
100 * PSS World Medical Inc. ................................ 975
----------
42,425
----------
HOUSEHOLD PRODUCTS - 0.21%
100 Bush Industries Inc. .................................. 1,519
100 Church & Dwight Co., Inc. ............................. 4,281
100 Libbey, Inc. .......................................... 3,006
100 Mikasa, Inc. .......................................... 1,138
100 * Samsonite Corp. ....................................... 600
100 * The Coleman Company, Inc. ............................. 725
----------
11,269
----------
HUMAN RESOURCES - 0.05%
400 Olsten Corp. .......................................... 2,700
----------
INFORMATION PROCESSING - 0.04%
100 M.D.C. Holdings, Inc. ................................. 1,963
----------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 0.07%
100 * Fritz Companies, Inc. ................................. 1,012
400 * Informix Corp. ........................................ 2,900
----------
3,912
----------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 0.08%
200 Compucom Systems, Inc. ................................ 605
100 * Decisionone Holdings Corp. ............................ 194
400 * Komag, Inc. ........................................... 1,500
200 * MEMC Electronic Materials, Inc. ....................... 1,200
600 * Merisel, Inc. ......................................... 956
----------
4,455
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
COMPUTER SERVICES - 0.04%
100 * Nichols Research Corp. ................................ $ 2,113
----------
INFORMATION PROCESSING -
DATA SERVICES - 1.91%
100 * ADAC Laboratories ..................................... 724
200 * Anixter International, Inc. ........................... 3,149
500 * CSG Systems International, Inc. ....................... 19,313
400 * Data General Corp. .................................... 4,675
200 * Diamond Multimedia Systems............................. 931
200 * Information Resources, Inc. ........................... 1,550
400 * Mentor Graphics Corp. ................................. 4,850
300 * Oak Technology, Inc. .................................. 891
100 * Paymentech, Inc. ...................................... 2,388
700 * Progress Software Corp. ............................... 15,925
1,100 * Radisys Corp. ......................................... 34,513
400 * S3, Inc. .............................................. 2,875
200 * Sequent Computer Systems, Inc. ........................ 2,188
600 * Sybase, Inc. .......................................... 4,650
100 * Volt Information Sciences, Inc. ....................... 1,750
----------
100,372
----------
INFORMATION PROCESSING -
NETWORKING - 0.06%
100 * CHS Electronics, Inc. ................................. 506
300 * Picturetel Corp. ...................................... 2,475
----------
2,981
----------
INSURANCE - CASUALTY - 1.26%
100 * Acceptance Insurance Co., Inc. ........................ 1,405
100 Capitol Transamerica Corp. ............................ 1,513
100 Chartwell Re Corp. .................................... 1,850
200 Commerce Group, Inc. .................................. 4,550
300 Frontier Insurance Group, Inc. ........................ 4,144
1,600 HCC Insurance Holdings, Inc............................ 33,800
100 NAC Re Corp. .......................................... 5,450
100 Pma Capital Corp. ..................................... 2,025
100 RLI Corp. ............................................. 3,181
200 Selective Insurance Group.............................. 3,875
100 State Auto Financial Corp. ............................ 1,013
100 Trenwick Group, Inc.................................... 2,800
100 Vesta Insurance Group, Inc. ........................... 506
----------
66,112
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INSURANCE - LIFE - 0.62%
100 American Heritage Life Investment Corp. .............. $ 2,319
200 ARM Financial Group, Inc., Class A.................... 2,775
100 Life USA Holding, Inc. ............................... 1,000
100 Presidential Life Corp. .............................. 1,794
300 Reinsurance Group of America ......................... 12,825
100 The Guarantee Life Companies, Inc. ................... 2,000
300 * UICI.................................................. 7,350
100 W.R. Berkley.......................................... 2,750
----------
32,813
----------
INSURANCE - MISCELLANEOUS - 0.88%
200 Capital Re Corp. ..................................... 3,912
100 Chicago Title Corp. .................................. 3,906
100 CMAC Investment Corp. ................................ 4,588
100 Executive Risk, Inc. ................................. 7,175
100 Foremost Corporation of America....................... 2,081
100 Harleysville Group.................................... 1,863
100 Hilb, Rogal & Hamilton Co. ........................... 1,863
200 HSB Group, Inc. ...................................... 7,575
100 Liberty Corp. ........................................ 5,175
200 * Mid Atlantic Med Services, Inc. ...................... 1,825
100 MMI Companies, Inc. .................................. 1,550
100 SCPIE Holdings, Inc. ................................. 2,400
100 Zenith National Insurance Corp. ...................... 2,375
----------
46,288
----------
INSURANCE - MULTILINE - 0.52%
200 Alfa Corp. ........................................... 3,375
200 AmerUs Life Holdings, Inc. ........................... 4,475
200 Argonaut Group, Inc................................... 5,000
100 CNA Surety Corp. ..................................... 1,350
102 * Delphi Financial Group, Inc., Class A................. 3,175
200 FBL Financial Group, Inc., Class A.................... 3,975
100 LandAmerica Financial Group........................... 2,800
110 * Medical Assurance, Inc. .............................. 3,025
----------
27,175
----------
LEISURE TIME - 0.39%
100 * Handleman Co. ........................................ 1,406
100 * Hollywood Park, Inc. ................................. 1,288
100 * Penske Motorsports, Inc. ............................. 3,625
100 Polaris Industries, Inc. ............................. 3,769
100 * Scotts Co., Class A................................... 4,113
100 * Station Casinos, Inc. ................................ 1,644
100 * Sunterra Corp. ....................................... 1,075
100 * Vail Resorts, Inc. ................................... 1,938
100 Winnebago Industries, Inc. ........................... 1,431
----------
20,289
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
62 April 30, 1999 (Unaudited)
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
LODGING - 0.37%
300 * Extended Stay America, Inc. .......................... $ 3,150
100 * Homestead Village, Inc. .............................. 400
100 Marcus Corp. ......................................... 1,244
300 Meristar Hospitality Corp. ........................... 6,900
300 * Prime Hospitality Corp. .............................. 3,656
200 * Red Roof Inns, Inc. .................................. 3,300
100 * Suburban Lodges of America. .......................... 688
----------
19,338
----------
MACHINE CONTRACT - 0.04%
100 * Rental Service Corp. ................................. 2,256
----------
MACHINE TOOLS - 0.09%
200 Milacron, Inc. ....................................... 4,600
----------
MACHINERY - AGRICULTURE - 0.08%
100 Allied Products Corp. ................................ 550
100 Toro Co. ............................................. 3,481
----------
4,031
----------
MACHINERY - CONSTRUCTION &
CONTRACTS - 1.66%
200 Blount, Inc., Class A................................. 5,575
100 * Calpine Corp. ........................................ 4,263
300 Foster Wheeler Corp. ................................. 4,050
2,100 Granite Construction, Inc. ........................... 59,981
100 * Insituform Technologies, Inc., Class A................ 1,906
100 * Jacobs Engineering Group, Inc. ....................... 3,944
200 Kaman Corp., Class A ................................. 2,625
200 * Morrison Knudsen Corp. ............................... 2,175
100 T.J. International, Inc. ............................. 2,775
----------
87,294
----------
MACHINERY - INDUSTRIAL/SPECIALTY - 2.20%
200 AAR Corp. ............................................ 3,799
102 * Albany International Corp., Class A................... 2,473
200 Applied Industrial Tech., Inc. ....................... 2,974
1,400 Applied Power, Inc., Class A.......................... 44,187
200 Baldor Electric Co. .................................. 3,862
200 Burlington Coat Factory Warehouse..................... 3,087
200 Exide Corp. .......................................... 2,487
300 Flowserve Corp. ...................................... 5,588
100 Graco, Inc. .......................................... 3,150
100 Hughes Supply, Inc. .................................. 2,325
100 IDEX Corp. ........................................... 2,669
100 * Ionics, Inc. ......................................... 3,413
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MACHINERY - INDUSTRIAL/SPECIALTY - Continued
100 JLG Industries, Inc. .................................. $ 1,606
100 * Kulicke & Soffa Industries............................. 2,288
100 Lilly Industries, Inc., Class A........................ 1,750
300 Lincoln Electric Holdings.............................. 6,188
100 Lufkin Industries, Inc. ............................... 1,781
200 Newport New Shipbuilding............................... 5,238
100 Regal-Beloit Corp. .................................... 2,163
100 Robbins & Myers, Inc. ................................. 2,156
100 Scotsman Industries, Inc. ............................. 2,019
71 * Speedfam-IPEC, Inc. ................................... 817
200 Stewart & Stevenson Services........................... 2,050
100 Tecumseh Products Co., Class A......................... 6,113
100 Watts Industries, Inc., Class A........................ 1,538
----------
115,721
----------
MEDICAL TECHNOLOGY - 1.06%
100 * AXYS Pharmaceuticals, Inc.............................. 396
100 * Haemonetics Corp....................................... 1,569
100 * Hologic, Inc........................................... 681
1,900 * Idexx Laboratories, Inc................................ 42,988
100 * Maxxim Med, Inc........................................ 1,594
200 * Quest Diagnostics, Inc. ............................... 4,575
100 * ThermoTrex Corp........................................ 838
100 West Pharmaceutical Services........................... 3,306
----------
55,947
----------
MERCHANDISE - DRUG - 0.24%
100 * Duane Reade, Inc....................................... 2,681
200 Longs Drug Stores Corp................................. 6,875
400 * Perrigo Co............................................. 3,050
----------
12,606
----------
MERCHANDISE - SPECIALTY - 1.18%
100 * Ames Department Stores, Inc............................ 3,493
100 Arctic Cat, Inc........................................ 862
200 Cash America International............................. 2,549
600 * Charming Shoppes, Inc.................................. 2,324
200 * Copart, Inc............................................ 3,625
500 * Corporate Express, Inc................................. 2,500
100 * Department 56, Inc..................................... 2,706
100 * Earthshell Corp........................................ 975
100 Enesco Group, Inc...................................... 2,100
200 * Franklin Covey Co...................................... 1,938
100 Friedman's, Inc., Class A.............................. 1,050
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MERCHANDISE - SPECIALTY - Continued
100 * Gibson Greetings, Inc................................ $ 631
200 Hancock Fabrics, Inc................................. 1,263
100 Hancock Holding Co................................... 4,450
200 * Homebase, Inc. ...................................... 1,000
100 * Inacom Corp.......................................... 969
100 K2, Inc. ............................................ 1,019
100 * Michaels Stores, Inc................................. 2,263
200 * Micro Warehouse, Inc................................. 3,388
100 * MicroAge, Inc........................................ 525
100 * O'Sullivan Industries Holdings, Inc.................. 1,575
100 * Petco Animal Supplies, Inc........................... 1,313
58 * Rent-Way, Inc........................................ 1,581
100 Russ Berrie and Co., Inc. ........................... 2,713
200 * Seitel, Inc.......................................... 3,475
200 * Sports Authority, Inc................................ 1,388
100 * Sunglass Hut International........................... 1,263
100 * United Stationers, Inc............................... 1,706
200 * Zale Corp............................................ 7,563
-----------
62,207
-----------
MERCHANDISING - DEPARTMENT - 0.04%
200 * Stein Mart, Inc...................................... 2,000
-----------
MERCHANDISING - FOOD - 2.14%
300 Fleming Companies, Inc............................... 2,624
1,700 Great Atlantic & Pacific Tea......................... 52,275
100 * IHOP Corp............................................ 4,575
1,800 * Performance Food Group Co............................ 47,700
200 Ruddick Corp. ....................................... 3,538
200 * Zapata Corp.......................................... 1,763
-----------
112,475
-----------
MERCHANDISING - MASS - 1.24%
1,900 * ShopKo Stores, Inc................................... 65,194
-----------
METALS - ALUMINUM - 0.12%
100 * ACX Technologies, Inc................................ 1,144
100 Commonwealth Industries, Inc......................... 963
200 IMCO Recycling, Inc.................................. 3,400
100 * Kaiser Aluminum Corp................................. 781
-----------
6,288
-----------
METALS - COPPER - 0.18%
300 ASARCO, Inc.......................................... 5,513
100 Southern Peru Copper Corp. .......................... 1,425
100 * Wolverine Tube, Inc.................................. 2,525
-----------
9,463
-----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 63
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
METALS - MISCELLANEOUS - 0.28%
100 Brush Wellman, Inc................................... $ 1,507
100 Castle A. M. & Co.................................... 1,475
100 Commercial Metals Co................................. 2,356
500 * Hecla Mining Co. .................................... 1,500
100 Precision Castparts Corp............................. 4,275
100 * RTI International Metals............................. 1,331
100 * Special Metals Corp. ................................ 556
200 Titanium Metals Corp................................. 1,475
-----------
14,475
-----------
METALS - STEEL - 1.79%
1,400 AK Steel Holding Corp................................ 36,399
700 * Armco, Inc........................................... 3,588
800 * Bethlehem Steel Corp................................. 7,300
100 Carpenter Technology Corp............................ 3,131
100 Cleveland-Cliffs, Inc. .............................. 3,981
100 Gibraltar Steel Corp................................. 2,344
200 Intermet Corp. ...................................... 2,950
600 LTV Corp............................................. 3,825
200 * Mueller Industries, Inc. ............................ 6,300
200 National Steel Corp., Class B........................ 1,875
100 Oregon Steel Mills, Inc.............................. 1,638
100 Quanex Corp.......................................... 2,556
100 Roanoke Electric Steel Corp. ........................ 1,344
461 Ryerson Tull, Inc. .................................. 10,459
100 Schnitzer Steel Industries........................... 1,431
100 * Shiloh Industries, Inc. ............................. 1,375
100 Valmont Industries, Inc. ............................ 1,675
100 * WHX Corp. ........................................... 844
100 * Wyman-Gordon Co. .................................... 1,400
-----------
94,415
-----------
MISCELLANEOUS - 1.16%
400 * 7-Eleven, Inc. ...................................... 999
200 AMCOL International Corp. ........................... 2,449
100 * AMERCO, Inc. ........................................ 2,250
100 Arch Coal, Inc. ..................................... 1,213
100 * Assisted Living Concepts, Inc. ...................... 281
200 * Associated Group, Inc., Class A...................... 11,400
500 * Aviation Sales Company............................... 20,000
100 * Avondale Industries, Inc. ........................... 3,081
100 * Borg-Warner Security Corp. .......................... 1,763
100 * Building One Services Corp. ......................... 1,525
100 C. H. Robinson Worldwide, Inc. ...................... 2,994
100 Cabot Industrial Trust............................... 2,038
100 * Crescent Operating, Inc. ............................ 394
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MISCELLANEOUS - Continued
100 * Integrated Electrical Services....................... $ 1,719
50 * Lakes Gaming, Inc. .................................. 481
200 * Phymatrix Corp. ..................................... 319
100 * Scott Technologies, Inc. ............................ 1,856
100 * Sola International, Inc. ............................ 1,488
100 Westinghouse Air Brake Co. .......................... 2,231
100 Woodward Governor Co. ............................... 2,475
-----------
60,956
-----------
MOBILE HOMES - 0.09%
100 Coachmen Industries, Inc. ........................... 1,888
200 Oakwood Homes Corp. ................................. 2,775
-----------
4,663
-----------
MULTIMEDIA - 0.21%
300 Meredith Corp. ...................................... 11,006
-----------
NATURAL GAS - DIVERSIFIED - 0.71%
200 Atmos Energy Corp. .................................. 5,049
100 Eastern Enterprises.................................. 3,593
200 Laclede Gas Co. ..................................... 4,038
100 New Jersey Resources Corp. .......................... 3,688
105 * Southern Union Co. .................................. 2,336
200 Southwest Gas Corp. ................................. 5,713
300 UGI Corp. ........................................... 5,156
100 Western Gas Resources, Inc. ......................... 875
300 WICOR, Inc. ......................................... 7,088
-----------
37,536
-----------
OIL - INTEGRATED DOMESTIC - 1.21%
100 Belco Oil and Gas Corp. ............................. 762
100 Cross Timbers Oil Co. ............................... 1,094
300 * Meridian Resource Corp. ............................. 1,744
6,300 * Santa Fe Energy Resources, Inc. ..................... 56,700
300 * Tesoro Petroleum Corp. .............................. 3,394
-----------
63,694
-----------
OIL - SERVICE - PRODUCTS - 0.68%
700 * BJ Services Co. ..................................... 18,724
200 * Global Industrial Technologies....................... 2,638
400 * Ocean Energy, Inc. .................................. 3,725
500 * Parker Drilling Co. ................................. 2,000
300 * Pride International, Inc. ........................... 3,506
100 RPC, Inc. ........................................... 825
100 SEMCO Energy, Inc. .................................. 1,500
100 * TransMontaigne, Inc. ................................ 1,425
200 * Trico Marine Services, Inc. ......................... 1,588
-----------
35,931
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
OIL - SERVICES - 0.53%
600 ENSCO International, Inc. ............................ $ 11,137
100 * Horizon Offshore, Inc. ............................... 712
100 * Key Energy Services................................... 344
200 Mascotech, Inc. ...................................... 3,475
100 * Oceaneering International, Inc. ...................... 1,650
200 * Offshore Logistics, Inc. ............................. 2,475
100 Pennsylvania Enterprises, Inc. ....................... 2,550
100 * Pool Energy Services Co. ............................. 1,794
200 Range Resources Corp. ................................ 1,025
200 * Unova, Inc. .......................................... 2,713
----------
27,875
----------
OIL/GAS PRODUCERS - 0.91%
300 * Benton Oil and Gas Co. ............................... 1,255
100 Cabot Oil & Gas Corp., Class A........................ 1,750
100 * Comstock Resources, Inc. ............................. 469
100 Devon Energy Corp. ................................... 3,325
200 Equitable Resources, Inc. ............................ 5,300
200 * Forcenergy, Inc. ..................................... 244
200 * Forest Oil Corp. ..................................... 2,000
300 Helmerich & Payne, Inc. .............................. 7,725
100 Holly Corp. .......................................... 1,406
100 * HS Resources, Inc. ................................... 1,063
100 * Input/Output, Inc. ................................... 725
200 * Louis Dreyfus Natural Gas Corp. ...................... 3,825
100 Mitchell Energy & Development Corp., Class A.......... 1,506
200 * Newfield Exploration Co. ............................. 5,375
100 * Nuevo Energy Co. ..................................... 1,588
100 Penn Virginia Corp. .................................. 1,975
100 Pogo Producing Co. ................................... 1,919
100 Snyder Oil Corp. ..................................... 1,819
200 * Titan Exploration, Inc. .............................. 1,125
100 * Tom Brown, Inc. ...................................... 1,494
200 Vintage Petroleum, Inc. .............................. 2,150
----------
48,038
----------
PAPER/FOREST PRODUCTS - 1.36%
300 Longview Fibre Co. ................................... 3,899
200 P. H. Glatfelter Co. ................................. 2,562
200 Potlatch Corp. ....................................... 8,288
900 Rayonier, Inc. ....................................... 41,063
100 Schweitzer-Mauduit, Inc. ............................. 1,656
100 Standard Register Co. ................................ 3,050
500 Unisource Worldwide, Inc. ............................ 4,063
100 Universal Forest Products............................. 1,991
300 Wausau-Mosinee Paper Corp. ........................... 4,950
----------
71,522
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
64 April 30, 1999 (Unaudited)
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
PHOTOGRAPHY - 0.08%
100 CPI Corp. ............................................. $ 2,656
100 * Ultratech Stepper, Inc. ............................... 1,388
----------
4,044
----------
POLLUTION CONTROL - 0.11%
300 * Aqua Alliance, Inc. ................................... 638
300 Calgon Carbon Corp. ................................... 1,744
100 Dames & Moore, Inc. ................................... 1,175
150 * Safety Kleen........................................... 2,381
----------
5,938
----------
PUBLISHING - NEWS - 0.06%
100 Hollinger International, Inc. ......................... 1,406
200 * Network Equipment Technologies......................... 1,538
----------
2,944
----------
PUBLISHING/PRINTING - 1.08%
100 American Business Products............................. 1,531
100 Banta Corp. ........................................... 2,131
300 Bowne & Co., Inc. ..................................... 5,625
200 John H. Harland Co. ................................... 3,313
100 * Journal Register Co. .................................. 1,456
300 McClatchy Company, Class A............................. 10,762
100 * Scholastic Corp. ...................................... 4,728
100 * Scientific Games Holdings.............................. 1,600
200 * Valassis Communications, Inc. ......................... 11,200
300 * Wallace Computer Services, Inc. ....................... 6,919
300 * World Color Press, Inc. ............................... 7,669
----------
56,934
----------
RAILROAD - 0.10%
100 Florida East Coast Industries.......................... 3,187
100 * Wisconsin Central Transport............................ 1,847
----------
5,034
----------
REAL ESTATE - 0.40%
100 * Avatar Holdings, Inc. ................................. 1,937
200 Brandywine Realty Trust................................ 3,774
200 Capital Automotive REIT................................ 2,600
100 * Castle & Cooke, Inc. .................................. 1,475
100 Entertainment Properties............................... 1,838
100 LNR Property Corp. .................................... 1,963
100 Republic Bancorp, Inc. ................................ 1,269
200 SL Green Realty Corp. ................................. 3,975
100 Tower Realty Trust, Inc. .............................. 2,050
----------
20,881
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 7.06%
200 American Health Properties, Inc. ....................... $ 3,962
100 Amli Residential Properties............................. 2,180
100 Bedford Property Investors, Inc. ....................... 1,718
300 Berkshire Reality Co., Inc. ............................ 3,449
200 Boykin Lodging Company.................................. 3,062
100 Bradley Real Estate, Inc. .............................. 1,993
300 BRE Properties, Inc., Class A........................... 7,462
200 Burnham Pacific Properties.............................. 2,299
200 Camden Property Trust................................... 5,399
300 * Capstead Mortgage Corp. ................................ 1,743
1,100 CBL & Associates Properties............................. 27,018
200 Center Trust Retail Properties.......................... 2,199
100 CenterPoint Properties Corp. ........................... 3,593
100 Chateau Communities, Inc. .............................. 2,905
100 Chelsea GCA Properties.................................. 3,294
200 Colonial Properties Trust............................... 5,475
100 Commercial Net Lease Realty............................. 1,256
200 Cornerstone Reality Income.............................. 1,988
200 Crown American Realty Trust............................. 1,450
300 Developers Diversified Reality.......................... 4,744
200 * Dynex Capital, Inc. .................................... 588
100 EastGroup Properties, Inc. ............................. 1,806
300 Equity Inns, Inc. ...................................... 2,756
100 Essex Property Trust, Inc. ............................. 3,156
200 Federal Reality Investment Trust........................ 4,775
300 Felcor Lodging Trust, Inc. ............................. 7,181
200 First Industrial Reality Trust.......................... 5,375
300 * First Union Real Estate Investments..................... 1,238
300 Franchise Finance Corp. ................................ 6,956
100 Gables Residential Trust................................ 2,381
100 General Growth Properties............................... 3,681
200 Glenborough Reality Trust, Inc. ........................ 3,438
200 Glimcher Reality Trust.................................. 3,388
100 Golf Trust of America, Inc. ............................ 2,219
200 Great Lakes REIT, Inc. ................................. 3,088
100 Health Care Property Investors.......................... 3,075
200 Health Care REIT, Inc. ................................. 4,700
100 Healthcare Realty Trust, Inc. .......................... 2,181
200 Hospitality Properties Trust............................ 5,763
300 Impac Mortgage Holdings, Inc. .......................... 1,650
200 Imperial Credit Commercal Mortgage...................... 1,963
200 Innkeepers USA Trust.................................... 2,063
100 IRT Property Co. ....................................... 944
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - Continued
200 JDN Reality Corp. ..................................... $ 4,425
100 JP Reality, Inc. ...................................... 2,006
200 Kilroy Reality Corp. .................................. 4,713
200 Koger Equity, Inc. .................................... 2,938
100 LaSalle Hotel Properties............................... 1,369
200 LASER Mortgage Management, Inc. ....................... 1,088
200 Lexington Corporate Properties Trust................... 2,288
200 LTC Properties, Inc. .................................. 2,688
200 Manufactured Home Communities.......................... 5,063
100 MGI Properties......................................... 2,763
100 Mid-America Apartment
Communities, Inc. ..................................... 2,381
100 National Golf Properties, Inc. ........................ 2,513
100 National Health Investors, Inc ........................ 2,513
2,700 Nationwide Health Properties........................... 54,844
600 New Plan Excel Realty Trust............................ 11,138
100 Omega Healthcare Investors............................. 2,638
200 Pacific Gulf Properties, Inc. ......................... 4,163
100 Parkway Properties, Inc. .............................. 2,900
200 Prentiss Properties Trust.............................. 4,325
400 Prime Retail, Inc. .................................... 3,450
100 Prison Realty Corp. ................................... 1,950
220 Prologis Trust......................................... 4,620
100 PS Business Parks, Inc. ............................... 2,338
86 Public Storage, Inc. .................................. 2,397
200 Realty Income Corp. ................................... 4,675
300 Reckson Associates Realty Corp. ....................... 6,750
100 * Redwood Trust, Inc. ................................... 1,681
200 RFS Hotel Investors, Inc. ............................. 2,825
200 * Security Capital Group................................. 3,025
200 Shurgard Storage Centers, Inc., Class A................ 5,388
200 Storage USA, Inc. ..................................... 6,425
200 Summit Properties, Inc. ............................... 3,650
100 Sun Communities, Inc. ................................. 3,500
300 Sunstone Hotel Investors, Inc. ........................ 2,756
200 Taubman Centers, Inc. ................................. 2,713
100 Thornburg Mortgage Asset Corp. ........................ 875
200 TriNet Corporate Realty Trust.......................... 5,488
100 U.S. Restaurant Properties, Inc. ...................... 2,006
700 United Dominion Realty Trust........................... 7,613
100 Urban Shopping Centers, Inc. .......................... 3,200
200 Walden Residential Properties.......................... 3,825
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 65
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - Continued
100 Washington Real Estate
Investments Trust...................................... $ 1,694
100 Weeks Corp. ........................................... 3,106
200 * Wellsford Real Properties, Inc. ....................... 2,000
200 Western Investment Real Estate......................... 2,288
200 Westfield America, Inc. ............................... 3,163
----------
371,711
----------
RESTAURANTS - 2.74%
1,500 Applebees International, Inc. ......................... 38,718
2,500 Bob Evans Farms, Inc. ................................. 45,781
1,400 * Brinker International, Inc. ........................... 38,675
200 * Buffets, Inc. ......................................... 2,000
300 * Lone Star Steakhouse & Saloon.......................... 3,263
200 Luby's, Inc. .......................................... 3,350
100 * NPC International, Inc. ............................... 1,800
100 * Planet Hollywood International......................... 94
100 * Rainforest Cafe, Inc. ................................. 550
200 Ruby Tuesday, Inc. .................................... 3,650
300 * Ryan's Family Steak Houses............................. 3,713
100 * Sbarro, Inc. .......................................... 2,619
----------
144,213
----------
SAVINGS & LOAN - 1.21%
100 Andover Bancorp........................................ 3,074
200 Bay View Capital Corp. ................................ 3,562
100 Brookline Bancorp, Inc. ............................... 1,124
100 Dime Community Bancshares.............................. 2,250
200 Downey Financial Corp. ................................ 4,000
100 F & M Bancorp/Frederick................................ 3,250
1,200 First Financial Holdings, Inc. ........................ 23,850
100 First Washington Bancorp, Inc. ........................ 2,013
200 * FirstFed Financial Corp. .............................. 3,463
200 MAF Bancorp, Inc. ..................................... 4,450
210 Provident Bankshares Corp. ............................ 5,224
100 Queens County Bancorp, Inc. ........................... 3,513
200 Staten Island Bancorp, Inc. ........................... 3,613
100 * Wilshire Financial Services Group...................... 38
----------
63,424
----------
SECURITIES RELATED - 2.26%
100 Dain Rauscher Corp. ................................... 4,287
200 Enhanced Financial Services............................ 4,137
100 * Hambrecht & Quist Group................................ 3,525
1,700 Investors Financial Services........................... 61,838
1,300 Legg Mason, Inc. ...................................... 45,338
----------
119,125
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT - 0.18%
200 * Aspec Technology, Inc. ................................ $ 175
300 * LAM Research Corp. .................................... 9,449
----------
9,624
----------
SEMICONDUCTORS - 0.58%
500 * Cirrus Logic, Inc. .................................... 3,530
100 Cohu, Inc. ............................................ 2,850
500 * Cypress Semiconductor Corp. ........................... 5,125
200 * Electroglas, Inc. ..................................... 2,738
100 * FSI International, Inc. ............................... 694
300 * International Rectifier Corp. ......................... 2,925
200 * Silicon Valley Group, Inc. ............................ 2,650
100 * Siliconix, Inc. ....................................... 2,625
100 * Unitrode Corp. ........................................ 1,769
300 * VLSI Technology, Inc. ................................. 5,662
----------
30,568
----------
TELECOMMUNICATIONS - 0.53%
100 * Adaptive Broadband Corp. .............................. 1,512
100 * Aerial Communications, Inc. ........................... 799
100 * American Tower Corp., Class A.......................... 2,119
100 * Anicom, Inc. .......................................... 888
100 * Cellular Communications of Puerto Rico................. 2,375
100 * EchoStar Communications Corp., Class A................. 10,031
400 * Glenayre Technologies, Inc. ........................... 1,325
100 * Itron, Inc. ........................................... 825
300 * Metrocall, Inc. ....................................... 938
100 * Powertel, Inc. ........................................ 2,175
100 * WinStar Communications, Inc. .......................... 4,862
----------
27,849
----------
TEXTILE - PRODUCTS - 0.31%
400 * Burlington Industries, Inc. ........................... 3,249
100 Guilford Mills, Inc. .................................. 950
100 * Lydall, Inc. .......................................... 900
200 Russell Corp. ......................................... 4,425
100 Springs Industries, Inc., Class A...................... 3,738
200 Wellman, Inc. ......................................... 2,862
----------
16,124
----------
TOBACCO - 0.07%
300 DIMON, Inc. ........................................... 1,312
100 Universal Corp. ....................................... 2,543
----------
3,855
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
TRUCKERS - 1.44%
200 * American Freightways Corp. ............................ $ 3,437
200 Arnold Industries, Inc. ............................... 3,175
200 * Consolidated Freightways Corp. ........................ 2,250
100 * Covenant Transport, Inc., Class A...................... 1,375
100 * Landstar System, Inc. ................................. 3,894
100 Roadway Express, Inc. ................................. 1,800
400 Rollins Truck Leasing Corp. ........................... 4,150
100 USFreightways Corp. ................................... 3,750
125 Varlen Corp. .......................................... 3,500
2,200 Werner Enterprises, Inc. .............................. 42,350
100 * Xtra Corp. ............................................ 4,138
100 * Yellow Corp. .......................................... 1,774
----------
75,593
----------
UTILITIES - COMMUNICATION - 0.20%
200 Aliant Communications, Inc. ........................... 8,850
100 PXRE Corp. ............................................ 1,899
----------
10,749
----------
UTILITIES - ELECTRIC - 3.88%
100 Black Hills Corp. ..................................... 2,262
900 CILCORP, Inc. ......................................... 54,449
200 Cleco Corp. ........................................... 6,175
200 Commonwealth Energy System Co. ........................ 8,112
100 Eastern Utilities Associates........................... 2,862
400 * El Paso Electric Co. .................................. 3,199
200 Empire District Electric Co. .......................... 4,388
200 Hawaiian Electric Industries........................... 7,113
200 Idacorp, Inc. ......................................... 6,300
200 Indiana Energy, Inc. .................................. 4,275
100 Madison Gas & Electric Co. ............................ 1,863
400 Minnesota Power, Inc. ................................. 8,425
300 Nevada Power Co. ...................................... 7,744
2,100 Northwestern Corp. .................................... 54,338
100 Otter Tail Power Co. .................................. 3,825
300 Public Service Co. of NM............................... 5,363
300 Rochester Gas & Electric Corp. ........................ 7,650
100 SIG Corp, Inc. ........................................ 2,881
200 * Unisource Energy Corp. ................................ 2,163
100 United Illuminating Co. ............................... 3,938
300 Washington Gas Light Co. .............................. 7,068
----------
204,393
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
66 April 30, 1999 (Unaudited)
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
UTILITIES - GAS, DISTRIBUTION - 0.69%
300 AGL Resources, Inc. ................................... $ 5,455
100 Colonial Gas Co. ...................................... 3,500
100 Connecticut Energy Corp. .............................. 3,738
200 Energen Corp. ......................................... 3,450
200 Northwest Natural Gas Co. ............................. 4,513
100 NUI Corp. ............................................. 2,169
200 Piedmont Natural Gas Co., Inc. ........................ 6,375
200 Public Service Co. of NC............................... 5,663
200 Southwestern Energy Co. ............................... 1,574
----------
36,437
----------
UTILITIES - GAS, PIPELINE - 0.31%
100 North Carolina Natural Gas............................. 3,125
200 ONEOK, Inc. ........................................... 5,588
200 Peoples Energy Corp. .................................. 7,474
----------
16,187
----------
UTILITIES - MISCELLANEOUS - 1.63%
100 Central Hudson Gas & Electric.......................... 3,712
100 * Group Maintenance America Corp. ....................... 1,337
2,800 MDU Resources Group, Inc. ............................. 59,675
100 Orange and Rockland Utilities.......................... 5,819
200 Sierra Pacific Resources............................... 7,125
200 * Walter Industries, Inc. ............................... 2,275
200 WPS Resources Corp. ................................... 5,987
----------
85,930
----------
WATER SERVICES - 0.24%
100 California Water Service Group......................... 2,293
100 E'Town Corp. .......................................... 3,994
100 Philadelphia Suburban Corp. ........................... 2,256
200 United Water Resources................................. 4,162
----------
12,705
----------
TOTAL COMMON STOCK
(Cost $4,677,442)...................................... 4,632,755
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
RIGHTS - 0.00%
120 First Union Real Estate Investments,
expiring 05/12/99...................................... $ 15
200 Homestead Village, Inc. ............................... 75
----------
90
----------
TOTAL RIGHTS
(Cost $0).............................................. 90
----------
<CAPTION>
PAR
VALUE
---------
<C> <S> <C>
UNITED STATES GOVERNMENT -
SHORT TERM - 11.97%
GOVERNMENT SPONSORED - 11.02%
$580,000 Federal Home Loan Bank,
4.80% due 05/03/99..................................... 579,845
----------
UNITED STATES TREASURY BILLS - 0.95%
50,000 United States Treasury Bills,
4.17% due 06/10/99..................................... 49,764
----------
TOTAL UNITED STATES GOVERNMENT - SHORT TERM
(Cost $629,609)........................................ 629,609
----------
TOTAL INVESTMENTS
(Cost $5,307,051) - 100.00%............................ 5,262,454
Other assets less liabilities,
net - 0.00%............................................ 138
----------
NET ASSETS (equivalent to $9.63 per share for 134,162
Class A shares; $9.62 per share for 161,058 Class B
shares; $9.63 per share for 125,788 Class I shares and
$9.63 per share for 125,846 Class II shares
outstanding) - 100.00%................................. $5,262,592
----------
</TABLE>
*Non-income producing
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS DEPRECIATION
<C> <S> <C>
- -------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED(1)
4(2) (Delivery month/Value at 04/30/99)
Russell 2000 Index Futures
(June/$433.05)....................................... $ (1,767)
-----------
</TABLE>
(1) U.S. Treasury Bills with a market value of approximately $50,000 were
maintained in a segregated account with a portion placed as collateral
for futures contracts.
(2) Per 500.
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized; 546,854 shares outstanding..... $ 5,469
Additional paid in capital.................................. 5,434,149
Accumulated net realized loss on securities................. (131,443)
Undistributed net investment income......................... 781
Unrealized depreciation of:
Investments....................................... $(44,597)
Futures contracts................................. (1,767) (46,364)
-------- ----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING....................................... $5,262,592
----------
- -------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($1,291,602 divided by 134,162 shares)................ $ 9.63
----------
Offering price per Class A share
(100/94.25 of $9.63)*....................................... $ 10.22
----------
Net asset value and offering price per Class B
share ($1,548,789 divided by 161,058 shares)**.............. $ 9.62
----------
Net asset value, offering price and redemption
price per Class I share ($1,210,810 divided by 125,788
shares)..................................................... $ 9.63
----------
Net asset value, offering price and redemption
price per Class II share ($1,211,391 divided by
125,846 shares)............................................. $ 9.63
----------
* Offering price includes sales charge of 5.75%.
The sales charge is reduced for purchases
of $25,000 and over.
** Redemption price per share is equal to the net asset
value less any applicable contingent deferred sales
charges.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- -------------------------------------------------------------------------------
<PAGE>
67
SMALL CAP VALUE FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends...................................................... $ 42,903
Interest....................................................... 12,344
---------
Total investment income....................................... 55,247
---------
EXPENSES:
Advisory fees.................................................. 18,207
Transfer agent fees............................................ 6,817
Custodian fees................................................. 3,452
Distribution fees:
Class A....................................................... 1,514
Class B....................................................... 6,339
Administrative service fee, Class I............................ 1,485
Registration and filing fees................................... 26,117
Audit fees and tax services.................................... 1,713
Accounting services............................................ 732
Trustees' fees and expenses.................................... 793
Report to shareholders......................................... 129
Miscellaneous.................................................. 189
---------
Total expenses................................................ 67,487
Expense reimbursement (see Note 3)............................ (36,223)
---------
Net expenses.................................................. 31,264
---------
NET INVESTMENT INCOME.......................................... 23,983
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain (loss) on securities:
Investments......................................... $(141,084)
Futures contracts................................... 9,641 (131,443)
---------
Net unrealized depreciation of securities during the period:
Investments......................................... (44,597)
Futures contracts................................... (1,767) (46,364)
--------- ---------
Net realized and unrealized loss on securities during the
period....................................................... (177,807)
---------
DECREASE IN NET ASSETS RESULTING FROM OPERATIONS............... $(153,824)
---------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended October 7, 1998
April 30, 1999 to October 31, 1998
----------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income...................... $ 23,983 $ -
Net realized loss on securities............ (131,443) -
Net unrealized depreciation of securities
during the period.......................... (46,364) -
----------------------------------
Decrease in net assets resulting from
operations................................ (153,824) -
----------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A................................... (6,375) -
Class B................................... (1,324) -
Class I................................... (7,058) -
Class II.................................. (8,445) -
----------------------------------
Total distributions to shareholders from
net investment income.................... (23,202) -
----------------------------------
Net realized gain on securities
Class A................................... - -
Class B................................... - -
Class I................................... - -
Class II.................................. - -
----------------------------------
Total distributions to shareholders
from net realized gain on securities..... - -
----------------------------------
Decrease in net assets resulting from
distributions to shareholders.............. (23,202) -
----------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A................................... 1,336,797 963
Class B................................... 1,584,680 963
Class I................................... 1,256,808 962
Class II.................................. 1,257,483 962
----------------------------------
Total increase in net assets resulting from
share transactions......................... 5,435,768 3,850
----------------------------------
TOTAL INCREASE IN NET ASSETS............... 5,258,742 3,850
NET ASSETS:
Beginning of year......................... 3,850 -
----------------------------------
End of period (including undistributed net
investment income of $781 and $0)......... $5,262,592 $3,850
----------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ----------------------------------------- -----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------- -------------------- ------------------- --------------------
Shares sold..... 136,242 $1,355,401 97 $ 963 161,047 $1,585,327 96 $ 963
Shares issued
for
distributions
reinvested...... 640 6,375 - - 128 1,324 - -
Shares
repurchased..... (2,817) (24,979) - - (213) (1,971) - -
------------------- -------------------- ------------------- --------------------
Increase in
shares
outstanding..... 134,065 1,336,797 97 963 160,962 1,584,680 96 963
Shares
outstanding:
Beginning of
period.......... 97 963 - - 96 963 - -
------------------- -------------------- ------------------- -------------------
End of period... 134,162 $1,337,760 97 $ 963 161,058 $1,585,643 96 $ 963
------------------- -------------------- ------------------- --------------------
<CAPTION>
CHANGE IN SHARES Class I Class II
OUTSTANDING ---------------------------------------- ----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------ --------------------- ------------------ ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------ --------------------- ------------------ ---------------------
Shares sold..... 124,983 $1,249,750 96 $ 962 124,904 $1,249,038 96 $ 962
Shares issued
for
distributions
reinvested...... 709 7,058 - - 846 8,445 - -
Shares
repurchased..... - - - - - - - -
------------------ --------------------- ------------------ ---------------------
Increase in
shares
outstanding..... 125,692 1,256,808 96 962 125,750 1,257,483 96 962
Shares
outstanding:
Beginning of
period.......... 96 962 - - 96 962 - -
------------------ --------------------- ------------------ ---------------------
End of period... 125,788 $1,257,770 96 $ 962 125,846 $1,258,445 96 $ 962
------------------ --------------------- ------------------ ---------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
68 April 30, 1999 (Unaudited)
SOCIALLY RESPONSIBLE FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCKS - 96.47%
ADVERTISING - 0.24%
100 Interpublic Group Companies, Inc. ..................... $ 7,755
100 Omnicom Group, Inc. ................................... 7,250
----------
15,005
----------
AEROSPACE/DEFENSE - 0.08%
100 * Gulfstream Aerospace Corp. ............................ 4,874
----------
AIRLINES - 0.31%
100 * AMR Corp. ............................................. 6,980
100 Delta Air Lines, Inc. ................................. 6,344
200 Southwest Airlines Co. ................................ 6,513
----------
19,837
----------
AUTO - REPLACEMENT PARTS - 0.35%
100 Cooper Tire & Rubber Co. .............................. 2,192
300 Genuine Parts Co. ..................................... 9,000
200 Goodyear Tire & Rubber Co. ............................ 11,438
----------
22,630
----------
BANKS - NEW YORK CITY - 2.45%
600 Bank of New York Co., Inc. ............................ 24,000
1,400 Citigroup, Inc. ....................................... 105,350
200 J. P. Morgan & Co., Inc. .............................. 26,950
----------
156,300
----------
BANKS - OTHER - 4.11%
1,200 Bank of America Corp. ................................. 86,400
100 BankBoston Corp. ...................................... 4,900
100 Bankers Trust Corp .................................... 9,006
800 First Union Corp. ..................................... 44,300
400 Fleet Financial Group, Inc. ........................... 17,225
200 Mellon Bank Corp. ..................................... 14,863
200 National City Corp. ................................... 14,350
150 Providian Financial Corp. ............................. 19,359
1,200 Wells Fargo Company.................................... 51,825
----------
262,228
----------
BANKS - REGIONAL - 3.20%
900 BankOne Corp. ......................................... 53,100
600 Chase Manhattan Corp. ................................. 49,650
100 Fifth Third Bancorp.................................... 7,169
600 Firstar Corp. ......................................... 18,038
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BANKS - REGIONAL - Continued
300 KeyCorp................................................ $ 9,281
200 PNC Bank Corp. ........................................ 11,575
100 State Street Corp. .................................... 8,750
200 SunTrust Banks, Inc. .................................. 14,300
400 U.S. Bancorp........................................... 14,825
200 Wachovia Corp. ........................................ 17,575
----------
204,263
----------
BEVERAGE - SOFT DRINKS - 2.83%
1,900 Coca-Cola Co. ......................................... 129,200
200 Coca Cola Enterprises, Inc. ........................... 6,900
1,200 PepsiCo, Inc. ......................................... 44,325
----------
180,425
----------
BROADCASTING - 1.66%
100 * Clear Channel Communications, Inc. .................... 6,950
300 Comcast Corp., Class A................................. 19,706
400 * Media One Group, Inc. ................................. 32,625
500 U S WEST, Inc. ........................................ 26,156
500 * Viacom, Inc., Class B.................................. 20,438
----------
105,875
----------
BUILDING MATERIALS - 0.62%
200 Lowe's Companies, Inc. ................................ 10,550
300 Masco Corp. ........................................... 8,813
200 Sherwin-Williams Co. .................................. 6,225
300 Vulcan Materials Co. .................................. 14,325
----------
39,913
----------
CHEMICAL - MAJOR - 0.51%
100 Morton International, Inc. ............................ 4,037
300 PPG Industries, Inc. .................................. 19,481
200 Rohm and Haas Co. ..................................... 8,962
----------
32,480
----------
CHEMICAL - MISCELLANEOUS - 0.34%
200 Ecolab, Inc. .......................................... 8,387
100 Nalco Chemical Co. .................................... 3,656
300 Olin Corp. ............................................ 4,388
100 Praxair, Inc. ......................................... 5,174
----------
21,605
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CONGLOMERATES - 0.89%
300 Tenneco, Inc. ......................................... $ 8,100
600 Tyco International, Ltd. .............................. 48,750
----------
56,850
----------
CONSUMER FINANCE - 0.54%
100 Capital One Financial Corp. ........................... 17,368
600 MBNA Corp. ............................................ 16,912
----------
34,280
----------
CONTAINERS - METAL/GLASS - 0.28%
200 Corning, Inc. ......................................... 11,450
100 Crown Cork & Seal Co., Inc. ........................... 3,250
100 * Owens-Illinois, Inc. .................................. 2,900
----------
17,600
----------
CONTAINERS - PAPER - 0.20%
100 * Sealed Air Corp. ...................................... 6,080
100 Temple-Inland, Inc. ................................... 6,900
----------
12,980
----------
COSMETICS/TOILETRIES - 0.89%
200 Avon Products, Inc. ................................... 10,863
800 Gillette Co. .......................................... 41,750
100 International Flavors & Fragrances, Inc. .............. 3,950
----------
56,563
----------
DRUGS - 7.20%
1,000 American Home Products Corp. .......................... 61,000
400 * Amgen, Inc. ........................................... 24,575
1,600 Bristol Myers Squibb Co. .............................. 101,700
800 Eli Lilly and Co. ..................................... 58,900
1,700 Merck & Co., Inc. ..................................... 119,425
1,100 Schering-Plough Corp. ................................. 53,144
600 Warner-Lambert Co. .................................... 40,762
----------
459,506
----------
ELECTRICAL EQUIPMENT - 0.74%
600 Emerson Electric Co. .................................. 38,700
100 W. W. Grainger, Inc. .................................. 5,019
100 Molex, Inc. ........................................... 3,225
----------
46,944
----------
ELECTRONIC INSTRUMENTS - 0.17%
100 Perkin-Elmer Corp. .................................... 10,813
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 69
SOCIALLY RESPONSIBLE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
ENTERTAINMENT - 2.15%
400 Carnival Corp., Class A................................ $ 16,500
150 Hasbro, Inc. .......................................... 5,119
200 Mattel, Inc. .......................................... 5,175
900 Time Warner, Inc. ..................................... 63,000
1,500 Walt Disney Co. ....................................... 47,625
----------
137,419
----------
FINANCE COMPANIES - 0.88%
700 Associates First Capital Corp. ........................ 31,019
500 Household International, Inc. ......................... 25,156
----------
56,175
----------
FINANCIAL SERVICES - 0.97%
400 American Express Co. .................................. 52,275
100 Countrywide Credit Industries, Inc. ................... 4,531
100 H & R Block, Inc. ..................................... 4,813
----------
61,619
----------
FOODS - 2.06%
200 Bestfoods.............................................. 10,038
400 Campbell Soup Co. ..................................... 16,400
500 ConAgra, Inc. ......................................... 12,437
200 General Mills, Inc. ................................... 14,625
400 H J Heinz Co. ......................................... 18,675
100 Hershey Foods Corp. ................................... 5,263
300 Kellogg Co. ........................................... 11,100
100 Pioneer Hi-Bred International, Inc. ................... 3,738
100 Quaker Oats Co. ....................................... 6,455
200 Ralston Purina Co. .................................... 6,100
800 Sara Lee Corp. ........................................ 17,800
100 Wm. Wrigley Jr. Co. ................................... 8,869
----------
131,500
----------
FOOTWEAR - 0.19%
200 NIKE, Inc., Class B.................................... 12,438
----------
FREIGHT - 0.18%
100 * FDX Corp. ............................................. 11,256
----------
FUNERAL SERVICES - 0.10%
300 Service Corp. International............................ 6,225
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
GOLD MINING - 0.23%
300 Barrick Gold Corp. .................................... $ 6,037
100 Battle Mountain Gold Co. .............................. 281
400 Homestake Mining Co. .................................. 3,825
300 Placer Dome, Inc. ..................................... 4,238
----------
14,381
----------
GOVERNMENT SPONSORED - 1.77%
600 Federal Home Loan Mortgage Corp. ...................... 37,650
1,000 Federal National Mortgage Association.................. 70,938
100 SLM Holding Corp. ..................................... 4,268
----------
112,856
----------
HEALTHCARE - 0.51%
200 Cardinal Health, Inc. ................................. 11,963
200 * HealthSouth Corp. ..................................... 2,688
200 IMS Health, Inc. ...................................... 6,000
174 McKesson HBOC, Inc. ................................... 6,090
100 United HealthCare Corp. ............................... 5,612
----------
32,353
----------
HEAVY DUTY TRUCKS/PARTS - 0.09%
100 PACCAR, Inc. .......................................... 5,600
----------
HOSPITAL MANAGEMENT - 0.23%
500 Columbia/HCA Healthcare Corp. ......................... 12,344
100 * Tenet Healthcare Corp. ................................ 2,362
----------
14,706
----------
HOSPITAL SUPPLIES - 3.78%
1,300 Abbott Laboratories.................................... 62,969
300 Baxter International, Inc. ............................ 18,900
200 Becton, Dickinson and Co. ............................. 7,438
200 * Boston Scientific Corp. ............................... 8,513
1,100 Johnson & Johnson...................................... 107,250
500 Medtronic, Inc. ....................................... 35,968
----------
241,038
----------
HOUSEHOLD PRODUCTS - 2.86%
100 Clorox Co. ............................................ 11,538
200 Colgate-Palmolive Co. ................................. 20,488
178 Newell Rubbermaid, Inc. ............................... 8,444
1,100 Procter & Gamble Co. .................................. 103,194
600 Unilever NV - ADR...................................... 38,962
----------
182,626
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 4.27%
100 * BMC Software, Inc. .................................... $ 4,306
3,000 * Microsoft Corp. ....................................... 243,938
900 * Oracle Corp. .......................................... 24,356
----------
272,600
----------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 4.70%
100 * Apple Computer, Inc. .................................. 4,600
1,000 Compaq Computer Corp. ................................. 22,313
1,500 * Dell Computer Corp. ................................... 61,781
100 * Gateway 2000, Inc. .................................... 6,619
700 Hewlett Packard Co. ................................... 55,213
600 International Business Machines Corp. ................. 125,513
400 * Sun Microsystems, Inc. ................................ 23,925
----------
299,964
----------
INFORMATION PROCESSING -
COMPUTER SERVICES - 2.24%
600 * America Online, Inc. .................................. 85,650
500 Automatic Data Processing, Inc. ....................... 22,250
400 Electronic Data Systems Corp. ......................... 21,500
200 First Data Corp. ...................................... 8,488
100 Paychex, Inc. ......................................... 5,106
----------
142,994
----------
INFORMATION PROCESSING -
DATA SERVICES - 1.91%
400 * Cendant Corp. ......................................... 7,200
300 Computer Associates International, Inc. ............... 12,806
100 * Computer Sciences Corp. ............................... 5,956
200 * Compuware Corp. ....................................... 4,875
300 * EMC Corp. ............................................. 32,681
100 * Novell, Inc . ......................................... 2,225
200 Pitney Bowes, Inc. .................................... 13,988
100 * Seagate Technology, Inc. .............................. 2,788
200 * Solectron Corp. ....................................... 9,700
500 Xerox Corp. ........................................... 29,374
----------
121,593
----------
INFORMATION PROCESSING -
NETWORKING - 2.08%
200 * 3Com Corp. ............................................ 5,224
100 * Ascend Communications, Inc. ........................... 9,663
1,000 * Cisco Systems, Inc. ................................... 114,063
100 * General Instrument Corp. .............................. 3,650
----------
132,600
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
70 April 30, 1999 (Unaudited)
SOCIALLY RESPONSIBLE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INSURANCE - CASUALTY - 0.14%
100 Chubb Corp. ........................................... $ 5,925
100 St. Paul Companies, Inc. .............................. 2,869
----------
8,794
----------
INSURANCE - LIFE - 0.55%
100 Aetna, Inc. ........................................... 8,769
100 Conseco, Inc. ......................................... 3,156
100 Jefferson-Pilot Corp. ................................. 6,738
100 Lincoln National Corp. ................................ 9,606
100 Transamerica Corp. .................................... 7,125
----------
35,394
----------
INSURANCE - MISCELLANEOUS - 0.47%
10 * Berkshire Hathaway, Inc. .............................. 24,700
100 UNUM Corp. ............................................ 5,463
----------
30,163
----------
INSURANCE - MULTILINE - 3.00%
600 Allstate Corp. ........................................ 21,825
885 American International Group, Inc. .................... 103,932
200 Aon Corp. ............................................. 13,700
200 CIGNA Corp. ........................................... 17,438
200 Hartford Financial Services Group...................... 11,788
300 Marsh & McLennan Companies, Inc. ...................... 22,968
----------
191,651
----------
LODGING - 0.07%
100 Marriott International, Inc. .......................... 4,188
----------
MACHINERY - AGRICULTURE - 0.13%
200 Deere & Co. ........................................... 8,600
----------
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.40%
400 Caterpillar, Inc. ..................................... 25,750
----------
MACHINERY - INDUSTRIAL/SPECIALTY - 0.92%
200 Cooper Industries, Inc. ............................... 9,675
200 Dover Corp. ........................................... 7,388
300 Illinois Tool Works, Inc. ............................. 23,100
100 Ingersoll-Rand Co. .................................... 6,919
100 Johnson Controls, Inc. ................................ 7,281
100 Newport News Shipbuilding, Inc. ....................... 2,619
100 Pall Corp. ............................................ 1,843
----------
58,825
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MEDICAL TECHNOLOGY - 0.17%
200 Guidant Corp. ......................................... $ 10,738
----------
MERCHANDISE - DRUG - 0.48%
200 CVS Corp. ............................................. 9,525
100 Rite Aid Corp. ........................................ 2,331
700 Walgreen Co. .......................................... 18,813
----------
30,669
----------
MERCHANDISE - SPECIALTY - 1.67%
100 * Costco Companies, Inc. ................................ 8,094
200 Fortune Brands, Inc. .................................. 7,900
300 Gap, Inc. ............................................. 19,969
1,000 Home Depot, Inc. ...................................... 59,938
250 * Staples, Inc. ......................................... 7,500
100 TJX Companies, Inc. ................................... 3,330
----------
106,731
----------
MERCHANDISING - DEPARTMENT - 0.41%
300 Dayton Hudson Corp. ................................... 20,194
150 May Department Stores Co. ............................. 5,972
----------
26,166
----------
MERCHANDISING - FOOD - 0.83%
200 Albertsons, Inc. ...................................... 10,300
200 American Stores Co. ................................... 6,313
200 * Kroger Co. ............................................ 10,863
300 * Safeway, Inc. ......................................... 16,181
200 SYSCO Corp. ........................................... 5,938
100 Winn-Dixie Stores, Inc. ............................... 3,580
----------
53,175
----------
MERCHANDISING - MASS - 2.26%
100 * KMart Corp. ........................................... 1,488
100 J.C. Penney Co., Inc. ................................. 4,562
200 Sears Roebuck and Co. ................................. 9,200
2,800 Wal-Mart Stores, Inc. ................................. 128,800
----------
144,050
----------
METALS - ALUMINUM - 0.20%
400 Alcan Aluminium, Ltd. ................................. 12,700
----------
METALS - COPPER - 0.04%
100 Newmont Mining Corp. .................................. 2,406
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
METALS - MISCELLANEOUS - 0.16%
100 Engelhard Corp. ....................................... $ 1,919
200 Inco, Limited.......................................... 3,838
100 Precision Castparts Corp. ............................. 4,274
----------
10,031
----------
METALS - STEEL - 0.02%
100 Worthington Industries, Inc. .......................... 1,381
----------
MISCELLANEOUS - 0.06%
100 Equifax, Inc. ......................................... 3,594
----------
NATURAL GAS - DIVERSIFIED - 0.03%
100 Questar Corp. ......................................... 1,819
----------
OIL - INTEGRATED DOMESTIC - 1.56%
300 Amerada Hess Corp. .................................... 17,100
100 Ashland Oil, Inc. ..................................... 4,225
400 Burlington Resources, Inc. ............................ 18,425
173 Kerr-McGee Corp. ...................................... 7,331
100 Pennzoil-Quaker State Co. ............................. 1,294
700 Phillips Petroleum Co. ................................ 35,438
500 USX-Marathon Group..................................... 15,624
----------
99,437
----------
OIL - INTEGRATED INTERNATIONAL - 1.23%
200 Murphy Oil Corp. ...................................... 9,388
1,100 Texaco, Inc. .......................................... 69,025
----------
78,413
----------
OIL - SERVICES - 1.08%
300 Baker Hughes, Inc. .................................... 8,963
500 Halliburton Co. ....................................... 21,313
600 Schlumberger, Ltd. .................................... 38,324
----------
68,600
----------
OIL/GAS PRODUCERS - 0.77%
200 Anadarko Petroleum Corp. .............................. 7,588
200 Apache Corp. .......................................... 6,138
100 Noble Affiliates, Inc. ................................ 3,206
300 Pennzenergy Co. ....................................... 3,881
100 * Pioneer Natural Resources Corp. ....................... 1,169
300 * Ranger Oil, Ltd. ...................................... 1,556
300 Sonat, Inc. ........................................... 10,725
200 Sunoco, Inc. .......................................... 7,150
100 Ultramar Diamond Shamrock Corp. ....................... 2,306
400 Union Pacific Resources Group, Inc. ................... 5,600
----------
49,319
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 71
SOCIALLY RESPONSIBLE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<S> <C> <C>
- --------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS - 1.04%
100 Avery Dennison Corp. ..................................... $ 6,825
200 Fort James Corp. ......................................... 7,600
600 Kimberly-Clark Corp. ..................................... 36,788
100 Louisiana Pacific Corp. .................................. 2,081
100 Mead Corp. ............................................... 4,181
100 Potlatch Corp. ........................................... 4,144
100 Willamette Industries, Inc. .............................. 4,675
----------
66,294
----------
POLLUTION CONTROL - 0.33%
100 Browning-Ferris Industries, Inc. ......................... 3,988
300 Waste Management, Inc. ................................... 16,950
----------
20,938
----------
PUBLISHING - NEWS - 0.60%
100 Dow Jones & Co., Inc. .................................... 5,450
300 Gannett Co., Inc. ........................................ 21,244
100 New York Times Co., Class A............................... 3,450
100 Tribune Co. .............................................. 8,344
----------
38,488
----------
PUBLISHING/PRINTING - 0.34%
100 Deluxe Corp. ............................................. 3,463
200 Dunn & Bradstreet Corp. .................................. 7,350
200 McGraw-Hill, Inc. ........................................ 11,050
----------
21,863
----------
RAILROAD - 0.92%
400 Burlington Northern Santa Fe Corp. ....................... 14,650
200 CSX Corp. ................................................ 9,850
500 Norfolk Southern Corp. ................................... 16,344
300 Union Pacific Corp. ...................................... 18,000
----------
58,844
----------
RESTAURANTS - 0.90%
1,200 McDonald's Corp. ......................................... 50,850
100 * Tricon Global Restaurants, Inc. .......................... 6,438
----------
57,288
----------
SAVINGS & LOAN - 0.26%
400 Washington Mutual, Inc. .................................. 16,450
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SECURITIES RELATED - 1.29%
200 Charles Schwab Corp. .................................. $ 21,950
100 Franklin Resources, Inc. .............................. 4,000
200 Merrill Lynch & Co., Inc. ............................. 16,788
400 Morgan Stanley Dean Witter & Co. ...................... 39,675
----------
82,413
----------
SEMICONDUCTOR EQUIPMENT - 0.17%
200 * Applied Materials, Inc. ............................... 10,725
----------
SEMICONDUCTORS - 2.73%
100 * Advanced Micro Devices, Inc............................ 1,644
2,000 Intel Corp............................................. 122,375
100 * Micron Technology, Inc................................. 3,713
300 Rockwell International Corp............................ 15,487
300 Texas Instruments, Inc................................. 30,637
----------
173,856
----------
TELECOMMUNICATIONS - 3.07%
400 * Airtouch Communications, Inc........................... 37,350
200 ALLTEL Corp............................................ 13,488
100 Frontier Corp.......................................... 5,519
1,100 * MCI Worldcom, Inc...................................... 90,406
100 * Nextel Communications, Inc., Class A................... 4,094
500 Nortel Networks Corp................................... 34,094
100 * Tellabs, Inc........................................... 10,955
----------
195,906
----------
TEXTILE - PRODUCTS - 0.08%
100 V. F. Corp............................................. 5,150
----------
UTILITIES - COMMUNICATION - 5.32%
900 Ameritech Corp......................................... 61,594
1,300 Bell Atlantic Corp..................................... 74,913
1,500 BellSouth Corp......................................... 67,125
1,500 SBC Communications, Inc................................ 84,000
400 Sprint Corp., FON Group................................ 41,025
250 * Sprint Corp., PCS Group................................ 10,593
----------
339,250
----------
UTILITIES - ELECTRIC - 2.02%
100 * AES Corp............................................... 5,000
300 Allegheny Energy, Inc.................................. 10,219
400 Cinergy Corp........................................... 11,925
400 DPL, Inc............................................... 7,150
100 Idacorp, Inc........................................... 3,150
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
UTILITIES - ELECTRIC - Continued
200 IPALCO Enterprises, Inc................................. $ 4,613
200 Kansas City Power & Light Co............................ 5,350
200 Minnesota Power, Inc.................................... 4,213
100 Montana Power Co........................................ 7,456
100 Nevada Power Co......................................... 2,581
300 New Century Energies, Inc............................... 10,500
200 Nisource, Inc........................................... 5,550
200 OGE Energy Corp......................................... 4,738
700 PacifiCorp.............................................. 11,681
500 Potomac Electric Power Co............................... 14,625
300 Puget Sound Energy, Inc................................. 7,406
200 TECO Energy, Inc........................................ 4,263
250 UtiliCorp United, Inc................................... 6,109
100 Washington Gas Light Co................................. 2,355
----------
128,884
----------
UTILITIES - GAS, DISTRIBUTION - 0.42%
100 AGL Resources, Inc...................................... 1,819
400 Keyspan Energy Corp..................................... 10,700
100 MCN Energy Group, Inc................................... 1,994
200 National Fuel Gas Co.................................... 8,750
100 NICOR, Inc.............................................. 3,637
----------
26,900
----------
UTILITIES - GAS, PIPELINE - 1.48%
200 Columbia Energy Group................................... 9,612
300 Consolidated Natural Gas Co. ........................... 17,850
500 Enron Corp.............................................. 37,625
100 ONEOK, Inc.............................................. 2,794
200 Peoples Energy Corp..................................... 7,474
400 Williams Companies, Inc................................. 18,900
----------
94,255
----------
WATER SERVICES - 0.04%
100 American Water Works Co., Inc........................... 2,844
----------
TOTAL COMMON STOCKS
(Cost $5,439,131)....................................... 6,153,856
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
72 April 30, 1999 (Unaudited)
SOCIALLY RESPONSIBLE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
GOVERNMENT SPONSORED -
SHORT TERM - 3.12%
$199,000 Federal Home Loan Bank,
4.80% due 05/03/99...................................... $ 199,000
----------
TOTAL GOVERNMENT SPONSORED -
SHORT TERM
(Cost $199,000)......................................... 199,000
----------
TOTAL INVESTMENTS
(Cost $5,638,131) - 99.59%.............................. 6,352,856
Other assets less liabilities,
net - 0.41%............................................. 26,100
----------
NET ASSETS (equivalent to $11.94 per share for 130,291
Class A shares; $11.92 per share for 152,725 Class B
shares; $11.94 per share for 125,654 Class I shares and
$11.94 per share for 125,816 Class II
shares outstanding) - 100.00%........................... $6,378,956
----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
- ------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 534,486 shares outstanding.......... $ 5,345
Additional paid in capital....................................... 5,395,699
Undistributed net realized gain on securities.................... 264,285
Undistributed net investment income.............................. (1,098)
Unrealized appreciation of securities............................ 714,725
-----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING............................................ $ 6,378,956
-----------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($1,555,679 divided by 130,291 shares)....................... $ 11.94
-----------
Offering price per Class A share
(100/94.25 of $11.94)*............................................. $ 12.67
-----------
Net asset value and offering price per Class B
share ($1,820,749 divided by 152,725 shares)**..................... $ 11.92
-----------
Net asset value, offering price and redemption
price per Class I share ($1,500,267 divided by
125,654 shares).................................................... $ 11.94
-----------
Net asset value, offering price and redemption
price per Class II share ($1,502,261 divided by
125,816 shares).................................................... $ 11.94
-----------
* Offering price includes sales charge of 5.75%.
The sales charge is reduced for purchases
of $25,000 and over.
** Redemption price per share is equal to net asset
value less any applicable contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
73
SOCIALLY RESPONSIBLE FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Dividends........................................................... $ 31,438
Interest............................................................ 20,078
----------
Total investment income............................................ 51,516
----------
EXPENSES:
Advisory fees....................................................... 6,923
Transfer agent fees................................................. 7,552
Custodian fees...................................................... 3,864
Distribution fees:
Class A............................................................ 1,714
Class B............................................................ 7,175
Administrative service fee, Class I................................. 1,707
Registration and filing fees........................................ 26,115
Audit fees and tax services......................................... 1,941
Accounting services................................................. 835
Trustees' fees and expenses......................................... 828
Report to shareholders.............................................. 162
Miscellaneous....................................................... 203
----------
Total expenses..................................................... 59,019
Expense reimbursement (see Note 3)................................. (31,740)
----------
Net expenses....................................................... 27,279
----------
NET INVESTMENT INCOME............................................... 24,237
----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities..................................... 264,285
Net unrealized appreciation of securities during the period......... 714,725
----------
Realized and unrealized gain on securities during the period...... 979,010
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATION..................... $1,003,247
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income....................... $ 24,237 $ -
Net realized gain on securities............. 264,285 -
Net unrealized appreciation of securities
during the period........................... 714,725 -
---------------------------------
Increase in net assets resulting from
operations................................. 1,003,247 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (6,409) -
Class B.................................... (2,271) -
Class I.................................... (7,393) -
Class II................................... (9,262) -
---------------------------------
Total distributions to shareholders from
net investment income..................... (25,335) -
---------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
Class I.................................... - -
Class II................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (25,335) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 1,311,127 1,250
Class B.................................... 1,570,761 1,250
Class I.................................... 1,256,144 1,250
Class II................................... 1,258,012 1,250
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 5,396,044 5,000
---------------------------------
TOTAL INCREASE IN NET ASSETS................ 6,373,956 5,000
NET ASSETS:
Beginning of year.......................... 5,000 -
---------------------------------
End of period (including undistributed net
investment income of ($1,098) and $0)...... $6,378,956 $5,000
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING --------------------------------------- -----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------ -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------ -------------------- ------------------- --------------------
Shares sold..... 129,597 $1,304,718 125 $ 1,250 153,081 $1,576,150 125 $ 1,250
Shares issued
for
distributions
reinvested...... 569 6,409 - - 206 2,270 - -
Shares
repurchased..... - - - - (687) (7,659) - -
------------------ -------------------- ------------------- --------------------
Increase in
shares
outstanding..... 130,166 1,311,127 125 1,250 152,600 1,570,761 125 1,250
Shares
outstanding:
Beginning of
period.......... 125 1,250 - - 125 1,250 - -
------------------ -------------------- ------------------- --------------------
End of period... 130,291 $1,312,377 125 $ 1,250 152,725 $1,572,011 125 $1,250
------------------ -------------------- ------------------- --------------------
<CAPTION>
CHANGE IN SHARES Class I Class II
OUTSTANDING --------------------------------------- ---------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------ -------------------- ------------------ --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------ -------------------- ------------------ --------------------
Shares sold..... 124,875 $1,248,750 125 $ 1,250 124,875 $1,248,750 125 $ 1,250
Shares issued
for
distributions
reinvested...... 654 7,394 - - 816 9,262 - -
Shares
repurchased..... - - - - - - - -
------------------ -------------------- ------------------ --------------------
Increase in
shares
outstanding..... 125,529 1,256,144 125 1,250 125,691 1,258,012 125 1,250
Shares
outstanding:
Beginning of
period.......... 125 1,250 - - 125 1,250 - -
------------------ -------------------- ------------------ --------------------
End of period... 125,654 $1,257,394 125 $ 1,250 125,816 $1,259,262 125 $ 1,250
------------------ -------------------- ------------------ --------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
74 April 30, 1999 (Unaudited)
BALANCED FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 63.14%
AEROSPACE/DEFENSE - 1.67%
1,300 Boeing Co. ............................................ $ 52,811
500 United Technologies Corp. ............................. 72,438
----------
125,249
----------
AUTO - CARS - 0.55%
2,500 * Autonation, Inc. ...................................... 35,781
300 * Delphi Automotive Systems Corp. ....................... 5,831
----------
41,612
----------
AUTO - ORIGINAL EQUIPMENT - 0.64%
1,100 Federal-Mogul Corp. ................................... 48,262
----------
BANKS - NEW YORK CITY - 1.70%
1,700 Citigroup, Inc. ....................................... 127,924
----------
BANKS - OTHER - 3.43%
1,600 Bank of America Corp. ................................. 115,199
3,300 Wells Fargo Company.................................... 142,519
----------
257,718
----------
BEVERAGE - SOFT DRINKS - 0.60%
500 Coca-Cola Co. ......................................... 34,000
300 PepsiCo, Inc. ......................................... 11,081
----------
45,081
----------
BROADCASTING - 2.68%
500 * Adelphia Communications Corp., Class A................. 34,125
1,000 * Cablevision Systems Corp., Class A..................... 77,375
2,200 * Viacom, Inc., Class B.................................. 89,925
----------
201,425
----------
BUILDING MATERIALS - 0.63%
900 Lowe's Companies, Inc. ................................ 47,475
----------
CHEMICAL - MISCELLANEOUS - 0.73%
1,300 Ecolab, Inc. .......................................... 54,519
----------
CONGLOMERATES - 1.14%
400 Textron, Inc. ......................................... 36,850
600 Tyco International Ltd. ............................... 48,750
----------
85,600
----------
CONTAINERS - PAPER - 0.73%
900 * Sealed Air Corp. ...................................... 54,731
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
DRUGS - 2.83%
1,656 Astrazeneca AB - ADR................................... $ 64,998
1,500 * Forest Laboratories, Inc. ............................. 66,750
700 Pfizer, Inc. .......................................... 80,544
----------
212,292
----------
ELECTRICAL EQUIPMENT - 0.12%
100 Sony Corp. - ADR ...................................... 9,250
----------
ELECTRONIC INSTRUMENTS - 0.72%
500 Perkin-Elmer Corp. .................................... 54,063
----------
ENTERTAINMENT - 1.76%
1,000 * Fox Entertainment Group................................ 25,625
2,100 Hasbro, Inc. .......................................... 71,663
500 Time Warner, Inc. ..................................... 35,000
----------
132,288
----------
FINANCE COMPANIES - 1.34%
2,000 Household International, Inc. ......................... 100,625
----------
FOODS - 0.99%
1,400 Kellogg Co. ........................................... 51,800
600 Nabisco Holdings Corp., Class A........................ 22,688
----------
74,488
----------
FOOTWEAR - 0.17%
200 NIKE, Inc., Class B.................................... 12,438
----------
GOVERNMENT SPONSORED - 1.36%
2,400 SLM Holding Corp. ..................................... 102,450
----------
HEALTHCARE - 2.22%
400 * PacifiCare Health System, Inc., Class A................ 29,325
2,000 * Quintiles Transnational Corp. ......................... 81,125
1,000 United HealthCare Corp. ............................... 56,125
----------
166,575
----------
HOSPITAL SUPPLIES - 0.77%
800 Medtronic, Inc. ....................................... 57,550
----------
HOUSEHOLD PRODUCTS - 0.41%
300 Colgate-Palmolive Co. ................................. 30,731
----------
INFORMATION PROCESSING - BUSINESS SOFTWARE - 0.64%
3,500 * Peoplesoft, Inc. ...................................... 47,906
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 1.54%
800 * Gateway 2000, Inc. .................................... $ 52,950
300 International Business Machine......................... 62,756
----------
115,706
----------
INFORMATION PROCESSING -
DATA SERVICES - 1.69%
1,900 Autodesk, Inc. ........................................ 56,525
1,200 Xerox Corp. ........................................... 70,500
----------
127,025
----------
INFORMATION PROCESSING -
NETWORKING - 0.93%
300 * Ascend Communications, Inc. ........................... 28,988
1,100 * Newbridge Networks Corp. .............................. 40,975
----------
69,963
----------
INSURANCE - LIFE - 0.26%
200 Lincoln National Corp. ................................ 19,213
----------
INSURANCE - MISCELLANEOUS - 1.86%
12 * Berkshire Hathaway, Inc., Class B ..................... 29,640
1 * Berkshire Hathaway, Inc., Class A...................... 76,400
600 The PMI Group, Inc. ................................... 33,488
----------
139,528
----------
INSURANCE - MULTILINE - 1.54%
1,200 Cincinnati Financial Corp. ............................ 48,450
1,100 XL Capital Limited..................................... 66,756
----------
115,206
----------
MACHINERY - INDUSTRIAL/SPECIALTY - 1.40%
1,600 Dover Corp. ........................................... 59,100
600 Illinois Tool Works, Inc. ............................. 46,200
----------
105,300
----------
MEDICAL TECHNOLOGY - 1.14%
1,600 Guidant Corp. ......................................... 85,900
----------
MERCHANDISE - SPECIALTY - 0.64%
900 American Greetings Corp., Class A...................... 23,569
400 Circuit City Stores, Inc. ............................. 24,600
----------
48,169
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 75
BALANCED FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MERCHANDISING - MASS - 0.61%
1,000 Wal-Mart Stores, Inc. ................................ $ 46,000
-----------
MULTIMEDIA - 0.58%
3,200 * Cadence Design Systems, Inc. ......................... 43,400
-----------
NATURAL GAS - DIVERSIFIED - 0.58%
2,100 K N Energy, Inc. ..................................... 43,313
-----------
OIL - INTEGRATED DOMESTIC - 1.01%
1,300 Burlington Resources, Inc. ........................... 59,881
500 USX-Marathon Group.................................... 15,625
-----------
75,506
-----------
OIL - INTEGRATED INTERNATIONAL - 1.30%
800 Exxon Corp. .......................................... 66,450
300 Mobil Corp. .......................................... 31,425
-----------
97,875
-----------
OIL - SERVICE - PRODUCTS - 2.28%
500 Bp Amoco, Plc. - ADR.................................. 56,594
2,000 Shell Transport & Trading - ADR....................... 90,874
700 * Weatherford International, Inc. ...................... 23,713
-----------
171,181
-----------
OIL - SERVICES - 0.76%
1,900 Baker Hughes, Inc. ................................... 56,763
-----------
PAPER/FOREST PRODUCTS - 1.84%
1,100 Bowater, Inc. ........................................ 58,987
1,600 Fort James Corp. ..................................... 60,800
300 Kimberly-Clark Corp. ................................. 18,394
-----------
138,181
-----------
PUBLISHING - NEWS - 0.41%
900 New York Times Co., Class A........................... 31,050
-----------
REAL ESTATE INVESTMENT TRUSTS - 0.55%
2,500 Indymac Mortgage Holdings............................. 41,250
-----------
SAVINGS & LOAN - 1.04%
1,900 Washington Mutual, Inc. .............................. 78,138
-----------
SECURITIES RELATED - 0.65%
700 Donaldson, Lufkin & Jenrette.......................... 48,956
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT - 1.23%
800 * Applied Materials, Inc. .............................. $ 42,900
1,000 * KLA-Tencor Corp. ..................................... 49,625
-----------
92,525
-----------
SEMICONDUCTORS - 1.40%
800 Intel Corp. .......................................... 48,950
1,000 * Maxim Integrated Products, Inc........................ 56,000
-----------
104,950
-----------
TELECOMMUNICATIONS - 3.16%
600 * Airtouch Communications, Inc. ........................ 56,025
2,800 * Loral Space & Communications Ltd. .................... 54,600
1,000 * MCI Worldcom, Inc. ................................... 82,188
600 Nokia Corp ADR - Series A............................. 44,512
-----------
237,325
-----------
TEXTILE - PRODUCTS - 0.53%
1,200 * Jones Apparel Group, Inc. ............................ 39,600
-----------
TOBACCO - 0.70%
1,500 Philip Morris Companies, Inc. ........................ 52,594
-----------
UTILITIES - COMMUNICATION - 3.08%
600 Ameritech Corp. ...................................... 41,063
750 * AT&T Corp. ........................................... 37,874
1,900 AT&T - Liberty Media Group............................ 121,363
300 Sprint Corp. FON Group................................ 30,769
-----------
231,069
-----------
UTILITIES - ELECTRIC - 1.72%
1,500 * AES Corp. ............................................ 75,000
3,400 * Northeast Utilities................................... 54,400
-----------
129,400
-----------
UTILITIES - GAS, PIPELINE - 0.88%
1,400 Williams Companies, Inc. ............................. 66,150
-----------
TOTAL COMMON STOCK
(Cost $4,007,789)..................................... 4,741,488
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CORPORATE BONDS - LONG TERM - 17.60%
AIRLINES - 1.37%
$100,000 Continental Airlines,
7.08% due 11/01/04.................................... $ 102,690
-----------
BROADCASTING - 1.10%
100,000 Fox/Liberty Networks,
9.75% due 08/15/07.................................... 82,750
-----------
DRUGS - 1.32%
100,000 McKesson Corp.,
6.30% due 03/01/05.................................... 99,423
-----------
FINANCE COMPANIES - 3.98%
100,000 Discover Card Master Trust I,
5.60% due 05/15/06.................................... 99,313
97,857 DLJ Commercial Mortgage Corp.,
5.88% due 11/12/31.................................... 97,092
100,000 Green Tree Financial Corp.,
7.14% due 01/15/29.................................... 102,750
-----------
299,155
-----------
FINANCIAL SERVICES - 1.36%
100,000 Charter Communications Holding,
8.25% due 04/01/07.................................... 102,250
-----------
FOODS - 1.37%
100,000 Nabisco, Inc.,
7.55% due 06/15/15.................................... 102,547
-----------
HEALTHCARE - 0.91%
100,000 Integrated Health Services,
9.25% due 01/15/08.................................... 68,000
-----------
PAPER/FOREST PRODUCTS - 1.38%
100,000 Pacifica Papers Inc.,
10.00% due 03/15/09................................... 104,000
-----------
SAVINGS & LOAN - 1.32%
100,000 Household Finance Co.,
6.40% due 06/17/08.................................... 98,941
-----------
SECURITIES RELATED - 1.29%
97,191 Morgan Stanley Capital CMO,
6.01% due 11/15/30.................................... 97,054
-----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
76 April 30, 1999 (Unaudited)
BALANCED FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - 2.20%
$100,000 Spectrasite Holdings, Inc.,
12.00% due 07/15/08...................................... $ 64,250
100,000 US West Cap Funding, Inc.,
6.25% due 07/15/05....................................... 100,622
----------
164,872
----------
TOTAL CORPORATE BONDS
(Cost $1,342,146)........................................ 1,321,682
----------
UNITED STATES GOVERNMENT -
LONG TERM - 18.81%
FEDERAL AGENCIES - 3.02%
222,675 Government National Mortgage Association,
7.00% due 12/15/22....................................... 226,503
----------
GOVERNMENT SPONSORED - 6.39%
Federal Home Loan Bank:
100,000 5.13% due 09/15/03....................................... 98,203
382,000 4.80% due 05/03/99....................................... 382,000
----------
480,203
----------
UNITED STATES NOTES - 9.40%
650,000 United States Treasury Notes,
6.88% due 05/15/06....................................... 705,958
----------
TOTAL UNITED STATES GOVERNMENT -
LONG TERM
(Cost $1,417,930)........................................ 1,412,664
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
TOTAL INVESTMENT
(Cost $6,767,865) - 99.55%............................... $7,475,834
Other assets less liabilities,
net - 0.45%.............................................. 33,882
----------
NET ASSETS (equivalent to $11.68 per share for 142,347
Class A shares; $11.67 per share for 248,463 Class B
shares; $11.68 per share for 126,142 Class I shares and
$11.68 per share for 126,303 Class II shares outstanding)
- 100.00%................................................ $7,509,716
----------
* Non-income producing
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
- ------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share, unlimited
shares authorized, 643,255 shares outstanding...................... $ 6,432
Additional paid in capital......................................... 6,610,806
Undistributed net realized gain on securities...................... 182,330
Undistributed net investment income................................ 2,179
Unrealized appreciation of securities.............................. 707,969
----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING.............................................. $7,509,716
----------
- ------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($1,662,587 divided by 142,347 shares)....................... $ 11.68
----------
Offering price per Class A share
(100/94.25 of $11.68)*............................................. $ 12.39
----------
Net asset value and offering price per Class B
share ($2,898,920 divided by 248,463 shares)**..................... $ 11.67
----------
Net asset value, offering price and redemption
price per Class I share ($1,473,119 divided by
126,142 shares).................................................... $ 11.68
----------
Net asset value, offering price and redemption
price per Class II share ($1,475,090 divided by
126,303 shares).................................................... $ 11.68
----------
* Offering price includes sales charge of 5.75%.
The sales charge is reduced for purchases of $25,000 and over.
** Redemption price per share is equal to net asset
value less any applicable contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
77
BALANCED FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Dividends............................................................. $ 22,522
Interest.............................................................. 65,364
--------
Total investment income.............................................. 87,886
--------
EXPENSES:
Advisory fees......................................................... 22,823
Transfer agent fees................................................... 7,598
Custodian fees........................................................ 3,909
Distribution fees:
Class A.............................................................. 1,762
Class B.............................................................. 8,078
Administrative service fee, Class I................................... 1,675
Registration and filing fees.......................................... 26,320
Audit fees and tax services........................................... 1,991
Accounting services................................................... 860
Trustees' fees and expenses........................................... 820
Report to shareholders................................................ 184
Miscellaneous......................................................... 205
--------
Total expenses....................................................... 76,225
Expense reimbursement (see Note 3)................................... (33,761)
--------
Net expenses......................................................... 42,464
--------
NET INVESTMENT INCOME................................................. 45,422
--------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities....................................... 182,330
Net unrealized appreciation of securities during the period........... 707,969
--------
Net realized and unrealized gain on securities during the period.... 890,299
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................... $935,721
--------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment gain......................... $ 45,422 $ -
Net realized gain on securities............. 182,330 -
Net unrealized appreciation of securities
during the period........................... 707,969 -
---------------------------------
Increase in net assets resulting from
operations................................. 935,721 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (12,146) -
Class B.................................... (3,403) -
Class I.................................... (12,936) -
Class II................................... (14,758) -
---------------------------------
Total distributions to shareholders from
net investment income..................... (43,243) -
---------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
Class I.................................... - -
Class II................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (43,243) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 1,441,108 1,250
Class B.................................... 2,645,937 1,250
Class I.................................... 1,261,686 1,250
Class II................................... 1,263,507 1,250
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 6,612,238 5,000
---------------------------------
TOTAL INCREASE IN NET ASSETS................ 7,504,716 5,000
NET ASSETS:
Beginning of year.......................... 5,000 -
---------------------------------
End of period (including undistributed net
investment income of $2,179 and $0)........ $7,509,716 $5,000
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ----------------------------------------- -----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------- -------------------- ------------------- --------------------
Shares sold..... 141,331 $1,430,975 125 $ 1,250 248,348 $2,646,262 125 $ 1,250
Shares issued
for
distributions
reinvested...... 1,070 12,133 - - 308 3,403 - -
Shares
repurchased..... (179) (2,000) - - (318) (3,728) - -
------------------- -------------------- ------------------- --------------------
Increase in
shares
outstanding..... 142,222 1,441,108 125 1,250 248,338 2,645,937 125 1,250
Shares
outstanding:
Beginning of
period.......... 125 1,250 - - 125 1,250 - -
------------------- -------------------- ------------------- --------------------
End of period... 142,347 $1,442,358 125 $ 1,250 248,463 $2,647,187 125 $1,250
------------------- -------------------- ------------------- --------------------
<CAPTION>
CHANGE IN SHARES Class I Class II
OUTSTANDING --------------------------------------- ---------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------ -------------------- ------------------ --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------ -------------------- ------------------ --------------------
Shares sold..... 124,875 $1,248,750 125 $ 1,250 124,875 $1,248,750 125 $ 1,250
Shares issued
for
distributions
reinvested...... 1,142 12,936 - - 1,303 14,757 - -
Shares
repurchased..... - - - - - - - -
------------------ -------------------- ------------------ --------------------
Increase in
shares
outstanding..... 126,017 1,261,686 125 1,250 126,178 1,263,507 125 1,250
Shares
outstanding:
Beginning of
period.......... 125 1,250 - - 125 1,250 - -
------------------ -------------------- ------------------ --------------------
End of period... 126,142 $1,262,936 125 $ 1,250 126,303 $1,264,757 125 $ 1,250
------------------ -------------------- ------------------ --------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
78 April 30, 1999 (Unaudited)
HIGH YIELD BOND FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
CORPORATE BONDS - LONG TERM - 93.75%
AIRLINES - 1.74%
$1,050,000 Aircraft Service International Group,
11.00% due 08/15/05............................... $1,149,015
----------
APPAREL & PRODUCTS - 3.34%
500,000(1) Bell Sports, Inc.,
11.00% due 08/15/08............................... 506,250
1,000,000 Galey & Lord, Inc.,
9.13% due 03/01/08................................ 770,000
1,000,000 GFSI,
9.63% due 03/01/07................................ 928,750
----------
2,205,000
----------
AUTO - CARS - 2.90%
900,000 Diamond Triumph,
9.25% due 04/01/08................................ 906,750
1,000,000(1) Prestolite Electric, Inc.,
9.63% due 02/01/08................................ 1,010,000
----------
1,916,750
----------
BROADCASTING - 5.40%
900,000 Cumulus Media,
10.38% due 07/01/08............................... 974,250
2,500,000 Echostar DBS Corp.,
9.38% due 02/01/09................................ 2,593,750
----------
3,568,000
----------
CHEMICAL - MAJOR - 3.08%
1,500,000 Koppers Industry, Inc.,
9.88% due 12/01/07................................ 1,522,500
500,000(1) Royster-Clark, Inc.,
10.25% due 04/01/09............................... 507,500
----------
2,030,000
----------
CHEMICAL - MISCELLANEOUS - 2.28%
1,500,000 GEO Specialty,
10.13% due 08/01/08............................... 1,505,625
----------
CONSUMER FINANCE - 2.27%
1,500,000 AmeriCredit Corp.,
9.25% due 02/01/04................................ 1,500,000
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
DRUGS - 2.30%
$1,500,000 ICN Pharmaceuticals, Inc.,
8.75% due 11/15/08.............................. $ 1,520,625
-----------
ELECTRONIC INSTRUMENTS - 1.18%
750,000 Flextronics International,
8.75% due 10/15/07.............................. 776,250
-----------
ENTERTAINMENT - 8.13%
1,000,000(1) Carmike Cinemas, Inc.,
9.38% due 02/01/09.............................. 1,005,000
1,500,000 Cinemark USA, Inc.,
9.63% due 08/01/08.............................. 1,552,500
900,000 Harveys Casino Resorts,
10.63% due 06/01/06............................. 954,000
1,600,000 Hollywood Entertainment Corp.,
10.63% due 08/15/04............................. 1,608,000
250,000(1) Isle Of Capri Casinos,
8.75% due 04/15/09.............................. 249,375
-----------
5,368,875
-----------
FINANCE COMPANIES - 0.56%
350,000(1) R&B Finance Co.,
11.38% due 03/15/09............................. 369,250
-----------
FOODS - 3.70%
1,500,000 Agrilink Foods, Inc.,
11.88% due 11/01/08............................. 1,620,000
1,000,000 Ameriserve Food Distribution,
10.13% due 07/15/07............................. 820,000
-----------
2,440,000
-----------
HEALTHCARE - 7.51%
1,000,000 Genesis Health Ventures, Inc.,
9.75% due 06/15/05.............................. 905,000
1,900,000 National Vision Association, Vista Eyecare, Inc.
12.75% due 10/15/05............................. 2,237,742
900,000 Unilab Corp.,
11.00% due 04/01/06............................. 918,000
1,000,000(1) Universal Hospital Services,
10.25% due 03/01/08............................. 900,000
-----------
4,960,742
-----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
PAR VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
HOME BUILDERS - 1.99%
$ 800,000 Beazer Homes USA,
9.00% due 03/01/04............................... $ 800,000
500,000 Del Webb Corp.,
10.25% due 02/15/10.............................. 515,000
----------
1,315,000
----------
HOUSEHOLD PRODUCTS - 1.52%
1,500,000 Sealy Mattress Co.,
10.88% due 12/15/07.............................. 1,005,000
----------
INFORMATION PROCESSING - NETWORKING - 0.38%
250,000(1) Condor Systems Inc.,
11.88% due 05/01/09.............................. 247,500
----------
LEISURE TIME - 1.60%
510,000 Boyd Gaming Corp.,
9.25% due 10/01/03............................... 536,775
500,000(1) Hollywood Park, Inc.,
9.25% due 02/15/07............................... 516,250
----------
1,053,025
----------
LODGING - 3.13%
2,000,000 Prime Hospitality Corp.,
9.75% due 04/01/07............................... 2,065,000
----------
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.30%
200,000 Calpine Corp.,
7.75% due 04/15/09............................... 200,500
----------
MERCHANDISING - DEPARTMENT - 2.12%
1,500,000(1) True Temper Sports, Inc.,
10.88% due 12/01/08.............................. 1,402,500
----------
MERCHANDISING - FOOD - 2.30%
1,675,000 Disco S.A.,
9.88% due 05/15/08............................... 1,515,875
----------
MERCHANDISE - SPECIALTY - 2.35%
1,500,000 BIG 5 Corp.,
10.88% due 11/15/07.............................. 1,548,750
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 79
HIGH YIELD BOND FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
METALS - STEEL - 2.88%
$ 600,000(1) National Steel Corp.,
9.88% due 03/01/09............................... $ 633,000
250,000 Renco Steel Holdings,
10.88% due 02/01/05.............................. 223,125
1,000,000 WCI Steel, Inc.,
10.00% due 12/01/04.............................. 1,047,500
-----------
1,903,625
-----------
MISCELLANEOUS - 2.29%
1,500,000 Anthony Crane Rentals,
10.38% due 08/01/08.............................. 1,515,000
-----------
OIL - SERVICE - PRODUCTS - 2.21%
1,500,000 Triton Energy,
8.75 04/15/2002.................................. 1,456,860
-----------
OIL/GAS PRODUCERS - 2.30%
1,500,000 HS Resources, Inc.,
9.25% due 11/15/06............................... 1,518,750
-----------
RESTAURANTS - 5.97%
1,400,000 Apple South, Inc.,
9.75% due 06/01/06............................... 1,330,000
1,000,000(1) Dominos, Inc.,
10.38% due 01/15/09.............................. 1,030,000
1,500,000 Southern Foods,
9.88% due 09/01/07............................... 1,582,500
-----------
3,942,500
-----------
SCHOOLS - 2.41%
1,500,000 Kindercare Learning Centers,
9.50% due 02/15/09............................... 1,590,000
-----------
TELECOMMUNICATIONS - 15.61%
135,000 CCPR Services, Inc.,
10.00% due 02/01/07.............................. 138,881
1,500,000 E. Spire Communication, Inc.,
10.63% due 07/01/08.............................. 705,000
1,000,000 Global Crossing,
9.63% due 05/15/08............................... 1,112,500
1,500,000 Level 3 Communications, Inc.,
9.13% due 05/01/08............................... 1,533,750
500,000(1) NEXTLINK Communications, Inc.,
10.75% due 11/15/08.............................. 535,000
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - Continued
$1,500,000(1) NTL Inc.,
11.50% due 10/01/08............................. $ 1,687,500
1,000,000 Orbcomm Global,
14.00% due 08/15/04............................. 1,040,000
5,500,000 Triton Communications,
11.00% due 05/01/08............................. 3,465,000
100,000 USA Mobile Communication,
9.50% due 02/01/04.............................. 86,000
-----------
10,303,631
-----------
TOTAL CORPORATE LONG TERM
(Cost $59,582,357).............................. 61,893,648
-----------
<CAPTION>
NUMBER
OF SHARES
- ------
<C> <S> <C>
PREFERRED STOCK - 1.48%
5,000 Global Crossing Holdings, Ltd................... 580,000
400(1) R&B Falcon Corp................................. 400,000
-----------
980,000
-----------
TOTAL PREFERRED STOCK
(Cost $900,000)................................. 980,000
-----------
<CAPTION>
PAR
VALUE
----------
<C> <S> <C>
CORPORATE SHORT TERM
COMMERCIAL PAPER - 2.83%
UTILITIES - ELECTRIC - 2.83%
$1,870,000 Conectiv, Inc.,
5.10% due 05/03/99.............................. 1,870,000
-----------
TOTAL CORPORATE SHORT TERM
(Cost $1,870,000)............................... 1,870,000
-----------
TOTAL INVESTMENTS - 98.06%
(Cost $62,352,357).............................. 64,743,648
Other assets less liabilities,
net - 1.94%..................................... 1,281,441
-----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
- --------------------------------------------------------------------------------
NET ASSETS (equivalent to $10.34 per share for 1,936 Class A
shares; $10.32 per share for 18,967 Class B shares; $10.34 per
share for 1,411 Class I shares and $10.37 per share for 6,341,947
Class II shares outstanding) - 100.00%............................ $66,025,089
-----------
(1) Securities exempt from registration under rule 144A of the
Securities Act of 1933. These securities may be sold in
transactions exempt from registration, normally to qualified
institutional buyers. At April 30, 1999 the aggregate value of
these securities was $10,999,125, representing 16.66% of net
assets.
- --------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share, unlimited
shares authorized, 6,364,261 shares outstanding................... $ 63,642
Additional paid in capital........................................ 63,562,711
Undistributed net realized gain on securities..................... 10,495
Undistributed net investment income............................... (3,050)
Unrealized appreciation of securities............................. 2,391,291
-----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING............................................. $66,025,089
-----------
- --------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($20,016 divided by 1,936 shares)........................... $ 10.34
-----------
Offering price per Class A share
(100/95.25 of $10.34)*............................................ $ 10.86
-----------
Net asset value and offering price per Class B
share ($195,666 divided by 18,967 shares)**....................... $ 10.32
-----------
Net asset value, offering price and redemption
price per Class I share ($14,586 divided by
1,411 shares)..................................................... $ 10.34
-----------
Net asset value, offering price and redemption
price per Class II share ($65,794,821 divided by
6,341,947 shares)................................................. $ 10.37
-----------
* Offering price includes sales charge of 4.75%.
The sales charge is reduced for purchases of $25,000 and over.
** Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
80 HIGH YIELD BOND FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Interest........................................................ $2,795,299
----------
Total investment income........................................ 2,795,299
----------
EXPENSES:
Advisory fees................................................... 199,615
Transfer agent fees............................................. 73,361
Custodian fees.................................................. 36,298
Distribution fees:
Class A........................................................ 200
Class B........................................................ 1,015
Administrative service fee, Class I............................. 195
Registration and filing fees.................................... 26,505
Audit fees and tax services..................................... 19,460
Accounting services............................................. 8,581
Trustees' fees and expenses..................................... 6,276
Report to shareholders.......................................... 1,690
Miscellaneous................................................... 2,153
----------
Total expenses................................................. 375,349
Expense reimbursement (see Note 3)............................. (95,147)
----------
Net expenses................................................... 280,202
----------
NET INVESTMENT INCOME........................................... 2,515,097
----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities................................. 10,495
Net unrealized appreciation of
securities during the period.................................... 2,391,291
----------
Net realized and unrealized gain on
securities during the period.................................. 2,401,786
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ $4,916,883
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
<S> <C> <C>
---------------------------------
OPERATIONS:
Net investment income....................... $ 2,515,097 $ -
Net realized gain on securities............. 10,495 -
Net unrealized appreciation of securities
during the period........................... 2,391,291 -
---------------------------------
Increase in net assets resulting from
operations................................. 4,916,883 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (4,357) -
Class B.................................... (5,641) -
Class I.................................... (4,305) -
Class II................................... (2,503,844) -
---------------------------------
Total distributions to shareholders from
net investment income..................... (2,518,147) -
---------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
Class I.................................... - -
Class II................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (2,518,147) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 16,565 1,250
Class B.................................... 189,726 1,250
Class I.................................... 11,333 1,250
Class II................................... 63,403,729 1,250
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 63,621,353 5,000
---------------------------------
TOTAL INCREASE IN NET ASSETS................ 66,020,089 5,000
NET ASSETS:
Beginning of year.......................... 5,000 -
---------------------------------
End of period (including undistributed net
investment income of ($3,050) and $0)...... $66,025,089 $5,000
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ------------------------------------------ -------------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
-------------------- -------------------- --------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
-------------------- -------------------- --------------------- --------------------
Shares sold..... 126,339 $1,263,017 125 $ 1,250 142,386 $ 1,426,375 125 $ 1,250
Shares issued
for
distributions
reinvested...... 415 4,179 - - 456 4,591 - -
Shares
repurchased..... (124,943) (1,250,631) - - (124,000) (1,241,240) - -
-------------------- -------------------- --------------------- --------------------
Increase in
shares
outstanding..... 1,811 16,565 125 1,250 18,842 189,726 125 1,250
Shares
outstanding:
Beginning of
period.......... 125 1,250 - - 125 1,250 - -
-------------------- -------------------- --------------------- --------------------
End of period... 1,936 $ 17,815 125 $ 1,250 18,967 $ 190,976 125 $ 1,250
-------------------- -------------------- --------------------- --------------------
<CAPTION>
CHANGE IN SHARES Class I Class II
OUTSTANDING ------------------------------------------ --------------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
--------------------- -------------------- ----------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
--------------------- -------------------- ----------------------- --------------------
Shares sold..... 124,875 $1,248,440 125 $ 1,250 6,217,233 $62,127,399 125 $ 1,250
Shares issued
for
distributions
reinvested...... 411 4,133 - - 249,589 2,527,580 - -
Shares
repurchased..... (124,000) (1,241,240) - - (125,000) (1,251,250) - -
--------------------- -------------------- ----------------------- --------------------
Increase in
shares
outstanding..... 1,286 11,333 125 1,250 6,341,822 63,403,729 125 1,250
Shares
outstanding:
Beginning of
period.......... 125 1,250 - - 125 1,250 - -
--------------------- -------------------- ----------------------- --------------------
End of period... 1,411 $ 12,583 125 $ 1,250 6,341,947 $63,404,979 125 $ 1,250
--------------------- -------------------- ----------------------- --------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 81
STRATEGIC BOND FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
CORPORATE BONDS - 41.70%
APPAREL & PRODUCTS - 3.15%
$100,000(1) Galey & Lord, Inc.,
9.13% due 03/01/08................................. $ 77,000
100,000 GFSI,
9.63% due 03/01/07................................. 92,875
----------
169,875
----------
AUTO - CARS - 1.87%
100,000 Diamond Triumph,
9.25% due 04/01/08................................. 100,750
----------
BROADCASTING - 3.93%
100,000 Cumulus Media,
10.38% due 07/01/08................................ 108,250
100,000 Echostar DBS Corp.,
9.38% due 02/01/09................................. 103,750
----------
212,000
----------
CONTAINERS - METAL/GLASS - 1.99%
100,000 BWAY Corporation,
10.25% due 04/15/07................................ 107,250
----------
DRUGS - 1.88%
100,000 ICN Pharmaceuticals, Inc.,
8.75% due 11/15/08................................. 101,375
----------
ENTERTAINMENT - 3.83%
100,000 Harveys Casino Resorts,
10.63% due 06/01/06................................ 106,000
100,000 Hollywood Entertainment Corp.,
10.63% due 08/15/04................................ 100,500
----------
206,500
----------
FINANCIAL SERVICES - 1.86%
100,000(1) Ono Finance, Plc.,
13.00% due 05/01/09................................ 100,000
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
FOODS - 2.00%
$100,000 Agrilink Foods, Inc.,
11.88% due 11/01/08................................ $ 108,000
----------
HEALTHCARE - 1.89%
100,000 Unilab Corp.,
11.00% due 04/01/06................................ 102,000
----------
HOME BUILDERS - 1.86%
100,000 Beazer Homes USA,
9.00% due 03/01/04................................. 100,000
----------
MERCHANDISING - DEPARTMENT - 3.47%
200,000(1) True Temper Sports, Inc.,
10.88% due 12/01/08................................ 187,000
----------
MERCHANDISING - FOOD - 1.68%
100,000 Disco S.A.,
9.88% due 05/15/08................................. 90,500
----------
METALS - STEEL - 4.55%
50,000 National Steel Corp.,
9.88% due 03/01/09................................. 52,750
155,000 Pohang Iron & Steel,
7.13% due 11/01/06................................. 147,673
50,000 Renco Steel Holdings,
10.88% due 02/01/05................................ 44,625
----------
245,048
----------
RESTAURANTS - 3.67%
100,000 Apple South, Inc.,
9.75% due 06/01/06................................. 95,000
100,000 Dominos, Inc.,
10.38% due 01/15/09................................ 103,000
----------
198,000
----------
TELECOMMUNICATIONS - 4.07%
100,000 NEXTLINK Communications, Inc.,
10.75% due 11/15/08................................ 107,000
100,000 NTL, Inc.,
11.50% due 10/01/08................................ 112,500
----------
219,500
----------
TOTAL CORPORATE BONDS
(Cost $2,225,256).................................. 2,247,798
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
PAR VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
UNITED STATES GOVERNMENT -
LONG TERM - 28.81%
GOVERNMENT SPONSORED - 16.85%
$ 200,000 Federal Home Loan Mortgage Corporation,
7.00% 05/01/29..................................... $ 202,876
750,000 Federal National Mortgage Association,
5.50% due 05/01/29................................. 705,703
----------
908,579
----------
UNITED STATES NOTES - 11.96%
United States Treasury Notes:
100,000 5.25% due 02/15/29................................. 94,000
315,000 4.75% due 11/15/08................................. 300,872
250,000 3.88% due 01/15/09................................. 249,688
----------
644,560
----------
TOTAL UNITED STATES GOVERNMENT
(Cost $1,572,887).................................. 1,553,139
----------
GOVERNMENT BONDS -
FOREIGN - 22.17%
186,000 Republic of Argentina,
5.94% due 03/31/05................................. 165,642
298,820 Brazil C Bond,
8.00% due 04/15/14................................. 207,680
350,000 Canada,
5.25% due 09/01/03................................. 242,232
GRD 50,000,000 Hellenic Republic,
8.80% due 06/19/07................................. 190,944
United States of Mexico, W-B:
150,000 11.50% due 05/15/26................................ 179,025
250,000 6.25% due 12/31/19................................. 209,401
----------
1,194,924
----------
TOTAL GOVERNMENT BONDS - FOREIGN
(Cost $1,145,384).................................. 1,194,924
----------
<CAPTION>
NUMBER
OF SHARES
<C> <S> <C>
------
PREFERRED STOCK - 2.15%
1,000 Global Crossing Holdings, Ltd...................... 116,000
----------
TOTAL PREFERRED STOCK
(Cost $100,000).................................... 116,000
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
82 April 30, 1999 (Unaudited)
STRATEGIC BOND FUND - STATEMENT OF ASSETS AND LIABILITIES CONTINUED
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 28.11%
$1,515,000 Federal Home Loan Bank,
4.80% due 05/03/99.................................. $ 1,515,000
-----------
TOTAL CORPORATE SHORT TERM
(Cost $1,515,000)................................... 1,515,000
-----------
TOTAL INVESTMENTS
(Cost $6,558,527) - 122.94%......................... 6,626,861
Other assets less liabilities,
net - (22.94%)...................................... (1,236,445)
-----------
NET ASSETS (equivalent to $10.06 per share for
129,180 Class A shares; $10.06 per share for 148,219
Class B shares; $10.06 per share for 129,182 Class I
shares and $10.06 per share for 129,235 Class II
shares outstanding) - 100.00%....................... $ 5,390,416
-----------
(1) Securities exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. At April 30,
1999 the aggregate value of
these securities was $364,000 representing 6.75% of net assets.
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($1,299,580 divided by 129,180 shares)....................... $ 10.06
-----------
Offering price per Class A share
(100/95.25 of $10.06)*............................................. $ 10.56
-----------
Net asset value and offering price per Class B
share ($1,490,936 divided by 148,219 shares)**..................... $ 10.06
-----------
Net asset value, offering price and redemption
price per Class I share ($1,299,665 divided by
129,182 shares).................................................... $ 10.06
-----------
Net asset value, offering price and redemption
price per Class II share ($1,300,235 divided by
129,235 shares).................................................... $ 10.06
-----------
* Offering price includes sales charge of 4.75%.
The sales charge is reduced for purchases of $25,000 and over.
** Redemption price per share is equal to net asset
value less any applicable contingent deferred sales
charge.
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
ASSETS:
Investments, at market (cost $6,558,527)......................... $6,626,861
Receivable for investments sold.................................. 637,545
Interest receivable.............................................. 104,080
Expenses reimbursement receivable................................ 19,482
Cash............................................................. 803
----------
TOTAL ASSETS..................................................... 7,388,771
----------
LIABILITIES:
Payable for investments purchased................................ 1,950,945
Accrued expenses................................................. 22,688
Payable for advisory fees........................................ 15,125
Distribution fee payable, Class B................................ 6,475
Distribution fee payable, Class A................................ 1,561
Administrative service fee payable, Class I...................... 1,561
----------
TOTAL LIABILITIES................................................ 1,998,355
----------
NET ASSETS....................................................... $5,390,416
----------
- ------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 535,816 shares
outstanding...................................................... $ 5,358
Additional paid in capital....................................... 5,351,222
Accumulated net realized loss on securities...................... (32,351)
Undistributed net investment income.............................. (1,025)
Unrealized appreciation (depreciation) of:
Investments............................................. $68,334
Foreign currency translation............................ (1,122) 67,212
------- ----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING............................................ $5,390,416
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
83
STRATEGIC BOND FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Interest............................................................ $180,991
--------
Total investment income............................................ 180,991
--------
EXPENSES:
Advisory fees....................................................... 14,949
Transfer agent fees................................................. 6,928
Custodian fees...................................................... 3,540
Distribution fees:
Class A............................................................ 1,543
Class B............................................................ 6,393
Administrative service fee, Class I................................. 1,544
Registration and filing fees........................................ 26,115
Audit fees and tax services......................................... 1,757
Accounting services................................................. 751
Trustees' fees and expenses......................................... 784
Report to shareholders.............................................. 138
Miscellaneous....................................................... 576
--------
Total expenses..................................................... 65,018
Expense reimbursement (see Note 3)................................. (36,699)
--------
Net expenses....................................................... 28,319
--------
NET INVESTMENT INCOME............................................... 152,672
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES AND FOREIGN
CURRENCIES:
Net realized gain (loss) on securities:
Investments............................................... $(35,949)
Foreign currency transactions............................. 3,598 (32,351)
--------
Net unrealized appreciation (depreciation) during the period:
Investments............................................... 68,334
Foreign currency translation.............................. (1,122) 67,212
-------- --------
Net realized and unrealized gain on securities and
foreign currencies during the period.............................. 34,861
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................... $187,533
--------
</TABLE>
<TABLE>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income....................... $ 152,672 $ -
Net realized loss on investments and foreign
currencies.................................. (32,351) -
Net unrealized appreciation of investments
and
foreign currencies during the period........ 67,212 -
---------------------------------
Increase in net assets resulting from
operations................................. 187,533 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (38,679) -
Class B.................................... (34,611) -
Class I.................................... (39,430) -
Class II................................... (40,977) -
---------------------------------
Total distributions to shareholders from
net investment income..................... (153,697) -
---------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
Class I.................................... - -
Class II................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (153,697) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 1,290,266 1,250
Class B.................................... 1,480,086 1,250
Class I.................................... 1,290,348 1,250
Class II................................... 1,290,880 1,250
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 5,351,580 5,000
---------------------------------
TOTAL INCREASE IN NET ASSETS................ 5,385,416 5,000
NET ASSETS:
Beginning of year.......................... 5,000 -
---------------------------------
End of period (including undistributed net
investment income of ($1,025) and $0)...... $5,390,416 $5,000
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ----------------------------------------- ---------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------ --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------- -------------------- ------------------ --------------------
Shares sold..... 124,966 $1,249,648 125 $ 1,250 144,411 $1,443,451 125 $ 1,250
Shares issued
for
distributions
reinvested...... 4,094 40,669 - - 3,683 36,635 - -
Shares
repurchased..... (5) (51) - - - - - -
------------------- -------------------- ------------------ --------------------
Increase in
shares
outstanding..... 129,055 1,290,266 125 1,250 148,094 1,480,086 125 1,250
Shares
outstanding:
Beginning of
period.......... 125 1,250 - - 125 1,250 - -
------------------- -------------------- ------------------ --------------------
End of period... 129,180 $1,291,516 125 $ 1,250 148,219 $1,481,336 125 $1,250
------------------- -------------------- ------------------ --------------------
<CAPTION>
CHANGE IN SHARES Class I Class II
OUTSTANDING --------------------------------------- ---------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------ -------------------- ------------------ --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------ -------------------- ------------------ --------------------
Shares sold..... 124,875 $1,248,750 125 $ 1,250 124,875 $1,248,750 125 $ 1,250
Shares issued
for
distributions
reinvested...... 4,182 41,598 - - 4,235 42,130 - -
Shares
repurchased..... - - - - - - - -
------------------ -------------------- ------------------ --------------------
Increase in
shares
outstanding..... 129,057 1,290,348 125 1,250 129,110 1,290,880 125 1,250
Shares
outstanding:
Beginning of
period.......... 125 1,250 - - 125 1,250 - -
------------------ -------------------- ------------------ --------------------
End of period... 129,182 $1,291,598 125 $ 1,250 129,235 $1,292,130 125 $ 1,250
------------------ -------------------- ------------------ --------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
84 April 30, 1999 (Unaudited)
DOMESTIC BOND FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
CORPORATE BONDS - 36.64%
AIRLINES - 2.34%
$150,000 Continental Airlines,
7.08% due 11/01/04...................................... $ 154,035
----------
BROADCASTING - 1.88%
150,000 Fox/Liberty Networks, LLC.,
9.75% due 08/15/07...................................... 124,125
----------
CONSUMER FINANCE - 2.26%
150,000 Associates Corp. NA,
5.75% due 11/01/03...................................... 148,691
----------
DRUGS - 2.26%
150,000 McKesson Corp.,
6.30% due 03/01/05...................................... 149,135
----------
FINANCE COMPANIES - 8.93%
150,000 Discover Card Master Trust I,
5.60% due 05/15/06...................................... 148,969
DLJ Commercial Mortgage Corp.:
138,743 6.14% due 10/15/06...................................... 139,350
146,785 5.88% due 11/12/31...................................... 145,638
150,000 Green Tree Financial Corp.,
7.14% due 01/15/29...................................... 154,125
----------
588,082
----------
FINANCIAL SERVICES - 4.50%
150,000 Charter Communications Holdings, LLC., 8.25% due
04/01/07................................................ 153,375
150,000 Ford Motor Credit Corp., Senior Note
5.80% due 01/12/09...................................... 143,106
----------
296,481
----------
FOODS - 2.34%
150,000 Nabisco, Inc.,
7.55% due 06/15/15...................................... 153,821
----------
HEALTHCARE - 1.55%
150,000 Integrated Health Services,
9.25% due 01/15/08...................................... 102,000
----------
PAPER/FOREST PRODUCTS - 2.37%
150,000 Pacifica Papers, Inc., Senior Note,
10.00% due 03/15/09..................................... 156,000
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
SAVINGS & LOAN - 2.25%
$ 150,000 Household Finance Co.,
6.40% due 06/17/08..................................... $ 148,412
----------
SECURITIES RELATED - 2.21%
145,786 Morgan Stanley Capital,
6.01% due 11/15/30..................................... 145,581
----------
TELECOMMUNICATIONS - 3.75%
150,000 Spectrasite Holdings, Inc.,
12.00% due 07/15/08.................................... 96,375
150,000 US West Capital Funding, Inc.,
6.25% due 07/15/05..................................... 150,933
----------
247,308
----------
TOTAL CORPORATE BONDS
(Cost $2,452,606)...................................... 2,413,671
----------
UNITED STATES GOVERNMENT -
LONG TERM - 61.35%
FEDERAL AGENCIES - 10.32%
668,026 Government National Mortgage Association, 7.00% due
12/15/22............................................... 679,509
----------
GOVERNMENT SPONSORED - 21.16%
504,000 Federal Home Loan Bank,
4.80% due 05/03/99..................................... 504,000
400,000 Federal Home Loan Bank,
5.13% due 09/15/03..................................... 392,812
499,950 Federal National Mortgage Association, 6.50% due
04/01/29............................................... 496,665
----------
1,393,477
----------
UNITED STATES NOTES - 29.87%
150,000 United States Treasury Notes,
7.50% due 11/15/16..................................... 175,688
1,650,000 United States Treasury Notes,
6.88% due 05/15/06..................................... 1,792,050
----------
1,967,738
----------
TOTAL UNITED STATES GOVERNMENT
(Cost $4,113,149)...................................... 4,040,724
----------
TOTAL INVESTMENTS
(Cost $6,565,755) - 97.99% ............................ 6,454,395
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
Other assets less liabilities,
net - 2.01%............................................. $ 132,700
----------
NET ASSETS (equivalent to $9.82 per share for 161,231
Class A shares; $9.82 per share for 251,759 Class B
shares; $9.82 per share for 129,505 Class I shares and
$9.82 per share for 128,361 Class II shares outstanding)
- 100.00%............................................... $6,587,095
----------
- -------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 670,856 shares outstanding.......... $ 6,709
Additional paid in capital....................................... 6,682,091
Undistributed net realized gain on securities.................... 9,872
Undistributed net investment income.............................. (217)
Unrealized depreciation of securities............................ (111,360)
----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING............................................ $6,587,095
----------
- -------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($1,582,516 divided by 161,231 shares)..................... $ 9.82
----------
Offering price per Class A share
(100/95.25 of $9.82)*............................................ $ 10.31
----------
Net asset value and offering price per Class B
share ($2,472,219 divided by 251,759 shares)**................... $ 9.82
----------
Net asset value, offering price and redemption
price per Class I share ($1,271,793 divided by
129,505 shares).................................................. $ 9.82
----------
Net asset value, offering price and redemption
price per Class II share ($1,260,567 divided by
128,361 shares).................................................. $ 9.82
----------
* Offering price includes sales charge of 4.75%.
The sales charge is reduced for purchases
of $25,000 and over.
** Redemption price per share is equal to net asset
value less any applicable contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
85
DOMESTIC BOND FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Interest.............................................................. $161,740
--------
Total investment income.............................................. 161,740
--------
EXPENSES:
Advisory fees......................................................... 16,137
Transfer agent fees................................................... 7,271
Custodian fees........................................................ 3,742
Distribution fees:
Class A.............................................................. 1,668
Class B.............................................................. 7,904
Administrative service fee, Class I................................... 1,541
Registration and filing fees.......................................... 26,115
Audit fees and tax services........................................... 1,884
Accounting services................................................... 811
Trustees' fees and expenses........................................... 793
Report to shareholders................................................ 164
Miscellaneous......................................................... 195
--------
Total expenses....................................................... 68,225
Expense reimbursement (see Note 3)................................... (42,883)
--------
Net expenses......................................................... 25,342
--------
NET INVESTMENT INCOME................................................. 136,398
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain on securities....................................... 9,872
Net unrealized depreciation of securities during the period........... (111,360)
--------
Net realized and unrealized loss on securities during the period..... (101,488)
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................... $ 34,910
--------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment loss......................... $ 136,398 $ -
Net realized gain on securities............. 9,872 -
Net unrealized depreciation of securities
during the period........................... (111,360) -
---------------------------------
Increase in net assets resulting from
operations................................. 34,910 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (34,491) -
Class B.................................... (36,649) -
Class I.................................... (32,104) -
Class II................................... (33,371) -
---------------------------------
Total distributions to shareholders from
net investment income..................... (136,615) -
---------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
Class I.................................... - -
Class II................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (136,615) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 1,605,858 312
Class B.................................... 2,504,358 312
Class I.................................... 1,294,284 313
Class II................................... 1,283,050 313
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 6,687,550 1,250
---------------------------------
TOTAL INCREASE IN NET ASSETS................ 6,585,845 1,250
NET ASSETS:
Beginning of year.......................... 1,250 -
---------------------------------
End of period (including undistributed net
investment income of ($217) and $0)........ $6,587,095 $1,250
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ----------------------------------------- -----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------- -------------------- ------------------- --------------------
Shares sold..... 159,794 $1,591,897 31 $ 312 248,354 $2,470,978 31 $ 312
Shares issued
for
distributions
reinvested...... 3,411 33,792 - - 3,663 36,243 - -
Shares
repurchased..... (2,005) (19,831) - - (289) (2,863) - -
------------------- -------------------- ------------------- --------------------
Increase in
shares
outstanding..... 161,200 1,605,858 31 312 251,728 2,504,358 31 312
Shares
outstanding:
Beginning of
period.......... 31 312 - - 31 312 - -
------------------- -------------------- ------------------- --------------------
End of period... 161,231 $1,606,170 31 $ 312 251,759 $2,504,670 31 $ 312
------------------- -------------------- ------------------- --------------------
<CAPTION>
CHANGE IN SHARES Class I Class II
OUTSTANDING ---------------------------------------- ----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------ --------------------- ------------------ ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------ --------------------- ------------------ ---------------------
Shares sold..... 126,240 $1,262,182 31 $ 313 124,968 $1,249,688 32 $ 313
Shares issued
for
distributions
reinvested...... 3,234 32,102 - - 3,361 33,362 - -
Shares
repurchased..... - - - - - - - -
------------------ --------------------- ------------------ ---------------------
Increase in
shares
outstanding..... 129,474 1,294,284 31 313 128,329 1,283,050 32 313
Shares
outstanding:
Beginning of
period.......... 31 313 - - 32 313 - -
------------------ --------------------- ------------------ ---------------------
End of period... 129,505 $1,294,597 31 $ 313 128,361 $1,283,363 32 $ 313
------------------ --------------------- ------------------ ---------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
86 April 30, 1999 (Unaudited)
CORE BOND FUND--STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CORPORATE BONDS - 29.79%
BANKS - OTHER - 1.12%
$4,000,000 BankAmerica Corp.,
5.88% due 02/15/09..................................... $3,838,920
----------
BEVERAGE -
BREWERS/DISTRIBUTORS - 0.47%
1,575,000 Anheuser-Busch Companies, Inc.,
7.25% due 09/15/15..................................... 1,631,054
----------
BEVERAGE - SOFT DRINKS - 1.03%
3,675,000 Coca Cola Enterprises, Inc.,
5.75% due 11/01/08..................................... 3,536,232
----------
CHEMICAL - MAJOR - 0.92%
3,200,000 Monsanto Co.,
5.38% due 12/01/01..................................... 3,168,608
----------
ELECTRICAL EQUIPMENT - 1.77%
6,400,000 National Service Industries, Inc.,
6.00% due 02/01/09..................................... 6,100,403
----------
FINANCE COMPANIES - 0.47%
1,600,000 Capital One Bank,
7.15% due 09/15/06..................................... 1,630,368
----------
FINANCIAL SERVICES - 1.04%
3,675,000 Countrywide Home,
6.25% due 04/15/09..................................... 3,568,682
----------
HEAVY DUTY TRUCKS/PARTS - 3.29%
Dana Corp.:
6,115,000 7.00% due 03/01/29..................................... 5,885,688
5,515,000 6.50% due 03/01/09..................................... 5,428,966
----------
11,314,654
----------
MERCHANDISE - DRUG - 1.10%
4,000,000 Rite Aid Corp.,
6.00% due 12/15/05..................................... 3,800,200
----------
NATURAL GAS - DIVERSIFIED - 1.49%
9,070,000 Valero Energy Corp.,
7.38% due 03/15/06..................................... 5,121,385
----------
OIL - INTEGRATED DOMESTIC - 0.57%
2,000,000 USX - Marathon Group,
6.65% due 02/01/06..................................... 1,977,440
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
OIL - SERVICES - 1.17%
$4,000,000 Canadian Occidental Petroleum,
7.13% due 02/04/04.................................... $ 4,025,000
-----------
PAPER/FOREST PRODUCTS - 1.15%
4,000,000 Temple-Inland, Inc.,
6.75% due 03/01/09.................................... 3,972,440
-----------
SECURITIES RELATED - 1.58%
3,930,000 Merrill Lynch & Co., Inc.,
6.00% due 02/17/09.................................... 3,789,620
1,600,000 Merrill Lynch MTNB,
7.20% due 10/15/12.................................... 1,636,656
-----------
5,426,276
-----------
TELECOMMUNICATIONS - 2.97%
10,290,000 Sprint Capital Corp.,
6.38% due 05/01/09.................................... 10,210,767
-----------
UTILITIES - COMMUNICATION - 3.88%
6,245,000 AT&T - Liberty Media Group,
5.50% due 01/15/09.................................... 7,383,514
7,825,000 GTE California, Inc.,
6.50% due 03/15/29.................................... 5,965,911
-----------
13,349,425
-----------
UTILITIES - ELECTRIC - 4.68%
4,000,000 Arizona Public Service,
5.88% due 02/15/04.................................... 3,978,480
2,940,000 Cinergy Corp.,
6.13% due 04/15/04.................................... 2,937,648
National Rural Utilities:
3,675,000 6.20% due 02/01/08.................................... 3,678,381
2,000,000 5.70% due 01/15/10.................................... 1,910,020
3,675,000 Pennslyvania Electric Co.,
6.63% due 04/01/19.................................... 3,600,692
-----------
16,105,221
-----------
UTILITIES - GAS, PIPELINE - 1.09%
3,780,000 Peco Energy Transition Trust,
6.13% due 03/01/09.................................... 3,732,750
-----------
TOTAL CORPORATE BONDS
(Cost $104,341,147)................................... 102,509,825
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
UNITED STATES GOVERNMENT
LONG TERM - 59.03%
FEDERAL AGENCIES - 10.62%
Federal Home Loan Bank:
$4,815,000 6.00% due 05/17/06..................................... $4,743,545
3,780,000 5.81% due 03/23/09..................................... 3,730,973
4,000,000 5.32% due 12/23/08..................................... 3,806,880
Government National Mortgage Association:
27,411 6.50% due 10/15/24..................................... 27,317
77,697 6.50% due 03/15/26..................................... 77,333
43,532 6.50% due 07/15/26..................................... 43,328
437,608 6.50% due 04/15/28..................................... 434,733
646,717 6.50% due 09/15/28..................................... 642,469
585,169 6.50% due 10/15/28..................................... 581,324
55,507 6.50% due 11/15/28..................................... 55,143
3,645,052 6.50% due 12/15/28..................................... 3,621,103
1,538,000 6.50% due 12/15/28..................................... 1,527,896
2,380,737 6.50% due 01/15/29..................................... 2,365,095
3,290,000 6.50% due 05/01/29..................................... 3,268,911
12,000,000 6.00% due 05/24/29..................................... 11,623,080
----------
36,549,130
----------
GOVERNMENT SPONSORED - 43.01%
Federal Home Loan Mortgage Corporation:
39,705 8.50% due 08/01/10..................................... 41,344
16,880 8.50% due 07/01/14..................................... 17,739
27,141 8.50% due 06/01/18..................................... 28,440
25,534 8.50% due 06/01/20..................................... 26,970
251,002 8.50% due 11/01/20..................................... 265,015
73,394 8.50% due 01/02/22..................................... 77,522
15,471 8.50% due 09/01/22..................................... 16,321
44,511 8.50% due 07/01/24..................................... 46,840
673,134 8.50% due 11/01/26..................................... 707,224
93,502 8.50% due 01/01/27..................................... 98,235
149,985 7.00% due 03/01/12..................................... 153,266
46,605 7.00% due 07/01/12..................................... 47,625
953,295 7.00% due 09/01/12..................................... 974,143
1,999,800 7.00% due 04/01/14..................................... 2,043,536
3,500,000 7.00% due 05/01/29..................................... 3,550,330
3,150,000 6.50% due 05/01/29..................................... 3,132,770
5,600,000 6.22% due 03/18/08..................................... 5,566,736
617,000 6.00% due 05/01/29..................................... 598,490
3,780,000 5.75% due 03/15/09..................................... 3,737,475
Federal National Mortgage Association:
214,414 8.50% due 08/01/14..................................... 226,132
439,730 8.50% due 09/01/14..................................... 463,666
57,987 8.50% due 10/01/14..................................... 61,143
164,431 8.50% due 11/01/14..................................... 173,381
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 87
CORE BOND FUND - STATEMENT OF INVESTMENTS CONTINUED
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
GOVERNMENT SPONSORED - Continued
Federal National Mortgage Association:
$ 16,808 8.50% due 12/01/14...................................... $ 17,723
277,113 8.50% due 01/01/15...................................... 291,891
76,591 8.50% due 06/01/15...................................... 80,755
797,378 8.50% due 07/01/17...................................... 839,735
89,342 8.50% due 11/01/17...................................... 93,251
65,450 8.50% due 07/01/24...................................... 68,763
51,012 8.50% due 11/01/24...................................... 53,595
814,109 8.50% due 01/01/25...................................... 855,319
948,004 8.50% due 07/01/25...................................... 996,286
779,498 8.50% due 12/01/25...................................... 818,956
8,735 8.50% due 04/01/26...................................... 9,177
1,683,311 8.50% due 06/01/26...................................... 1,773,789
89,170 8.50% due 10/01/26...................................... 93,684
2,095,938 8.50% due 11/01/26...................................... 2,203,487
80,735 8.50% due 12/01/26...................................... 84,822
129,822 8.50% due 01/01/27...................................... 136,393
246,090 8.50% due 02/01/27...................................... 258,548
848,875 8.50% due 03/01/27...................................... 891,845
1,231,086 8.50% due 05/01/27...................................... 1,293,404
2,492,429 8.50% due 06/01/27...................................... 2,618,594
3,368,154 8.50% due 07/01/27...................................... 3,538,649
3,445,353 8.50% due 08/01/27...................................... 3,602,858
492,583 8.50% due 10/01/27...................................... 517,517
1,417,868 8.50% due 11/01/27...................................... 1,489,640
1,534,564 8.50% due 12/01/27...................................... 1,612,244
128,413 8.50% due 04/01/28...................................... 135,476
870,671 8.50% due 05/01/28...................................... 914,745
2,351,746 8.50% due 07/01/28...................................... 2,470,792
656,078 8.50% due 08/01/28...................................... 689,289
2,500,000 8.50% due 05/01/29...................................... 2,626,575
18,401 7.50% due 04/01/09...................................... 18,796
40,949 7.50% due 10/01/09...................................... 41,826
14,245 7.50% due 02/01/17...................................... 14,509
42,090 7.50% due 12/01/22...................................... 43,313
32,131 7.50% due 06/01/25...................................... 33,044
28,864 7.50% due 07/01/25...................................... 29,667
582,264 7.50% due 10/01/25...................................... 598,456
411,118 7.50% due 12/01/25...................................... 422,555
22,550 7.50% due 05/01/26...................................... 23,178
606,906 7.50% due 07/01/26...................................... 623,784
498,586 7.50% due 01/01/27...................................... 512,451
15,545 7.50% due 06/01/27...................................... 15,977
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
GOVERNMENT SPONSORED - Continued
Federal National Mortgage Association:
$ 94,664 7.50% due 07/01/27................................... $ 97,297
1,490,767 7.50% due 09/01/27................................... 755,059
931,777 7.50% due 10/01/27................................... 67,810
711,626 7.50% due 11/01/27................................... 731,416
1,257,322 7.50% due 12/01/27................................... 19,637
34,502 7.50% due 01/01/28................................... 35,461
17,805 7.50% due 01/02/28................................... 18,301
27,820 7.50% due 04/01/28................................... 28,594
51,219 7.50% due 05/01/28................................... 52,644
848,794 7.50% due 06/01/28................................... 25,503
770,616 7.50% due 07/01/28................................... 792,046
35,807 7.00% due 07/01/09................................... 36,579
964,953 7.00% due 09/01/10................................... 985,757
631,770 7.00% due 05/01/11................................... 645,391
187,009 7.00% due 07/01/11................................... 191,041
16,371 7.00% due 11/01/11................................... 16,724
22,111 7.00% due 02/01/12................................... 22,587
343,139 7.00% due 04/01/12................................... 350,537
329,183 7.00% due 05/01/12................................... 336,281
22,878 7.00% due 06/01/12................................... 23,372
772,550 7.00% due 07/01/12................................... 789,206
20,839 7.00% due 09/01/12................................... 21,289
5,738,104 7.00% due 10/01/12................................... 5,861,819
1,217,620 7.00% due 11/01/12................................... 1,243,872
291,363 7.00% due 05/01/13................................... 297,645
91,346 7.00% due 06/01/13................................... 93,315
26,501 7.00% due 07/01/13................................... 27,073
162,486 7.00% due 11/01/13................................... 165,989
365,152 7.00% due 12/01/13................................... 373,024
164,406 7.00% due 01/01/14................................... 167,951
3,780,000 6.76% due 07/16/07................................... 3,850,270
4,000,000 6.65% due 11/07/07................................... 4,016,880
10,000,000 6.50% due 05/17/29................................... 9,935,900
7,850,000 6.37% due 01/30/08................................... 7,816,873
3,780,000 6.28% due 02/12/08................................... 3,749,873
1,195,809 6.00% due 12/01/28................................... 1,158,811
24,045,796 6.00% due 01/01/29................................... 23,301,819
3,000,000 6.00% due 05/17/29................................... 2,907,660
2,940,000 5.86% due 03/30/04................................... 2,919,773
4,000,000 5.78% due 02/12/03................................... 3,984,360
14,016,276 5.50% due 12/01/13................................... 13,595,787
1,001,941 5.50% due 01/01/14................................... 971,883
-----------
147,992,810
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
UNITED STATES NOTES - 5.40%
United States Treasury Notes:
$ 1,105,000 5.90% due 04/15/04.................................. $ 1,116,824
3,675,000 5.625% due 02/15/06................................. 3,651,480
6,615,000 4.75% due 02/15/04.................................. 6,484,023
7,350,000 3.88% due 01/15/09.................................. 7,340,813
------------
18,593,140
------------
TOTAL UNITED STATES GOVERNMENT
(Cost $204,658,725)................................. 203,135,080
------------
FOREIGN BONDS - 1.66%
INSURANCE - MULTILINE - 1.66%
Fairfax Financial Holdings Ltd.:
3,780,000 7.38% due 03/15/06.................................. 3,799,278
1,890,000 8.25% due 10/01/15.................................. 1,908,484
------------
5,707,762
------------
TOTAL FOREIGN BONDS
(Cost $5,704,985)................................... 5,707,762
------------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 21.50%
AEROSPACE/DEFENSE - 4.36%
15,000,000 TRW, Inc.,
4.95% due 05/03/99.................................. 14,998,899
------------
CONGLOMERATES - 2.08%
7,169,000 CSW Credit Corp.,
4.95% due 05/17/99.................................. 7,155,188
------------
METALS - ALUMINUM - 4.07%
14,000,000 Reynolds Metals Co.,
4.94% due 05/06/99.................................. 13,990,376
------------
NATURAL GAS - DIVERSIFIED - 2.03%
7,000,000 Dynegy, Inc.,
5.03% due 05/03/99.................................. 7,000,000
------------
OIL/GAS PRODUCERS - 4.69%
5,248,000 Anadarko Petroleum Corp.,
4.95% due 05/07/99.................................. 5,245,112
10,911,000 Ultramar Diamond Shamrock,
4.88% due 05/05/99.................................. 10,903,838
------------
16,148,950
------------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
88 April 30, 1999 (Unaudited)
CORE BOND FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
PAR
VALUE MARKET VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
UTILITIES - ELECTRIC - 4.27%
$10,518,000 Conagra,
4.93% due 05/17/99................................ $ 10,497,822
4,184,000 Conectiv, Inc.,
5.00% due 05/03/99................................ 4,184,000
------------
14,681,822
------------
TOTAL CORPORATE SHORT TERM
(Cost $73,975,235)................................ 73,975,235
------------
TOTAL INVESTMENTS
(Cost $388,680,092) - 111.98%..................... 385,327,902
Other assets less liabilities,
net - (11.98%).................................... (41,203,792)
------------
NET ASSETS (equivalent to $9.81 per share for
5,417 Class A shares; $9.81 per share for 11,569
Class B shares; $9.81 per share for 1,280 Class I
shares and $9.82 per share for 35,031,443 Class II
shares outstanding) - 100.00%..................... $344,124,110
------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($53,124 divided by 5,417 shares)........................... $ 9.81
-----------
Offering price per Class A share
(100/95.25 of $9.81)*............................................. $ 10.30
-----------
Net asset value and offering price per Class B
share ($113,459 divided by 11,569 shares)**....................... $ 9.81
-----------
Net asset value, offering price and redemption
price per Class I share ($12,550 divided by
1,280 shares)..................................................... $ 9.81
-----------
Net asset value, offering price and redemption
price per Class II share ($343,944,977 divided by
35,031,443 shares)................................................ $ 9.82
-----------
* Offering price includes sales charge of 4.75%.
The sales charge is reduced for purchases of $25,000 and over.
** Redemption price per share is equal to net asset value less any
applicable contingent deferred sales charge.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
ASSETS:
Investments, at market (cost $388,680,092)....................... $385,327,902
Receivable for investments sold.................................. 33,862,695
Interest receivable.............................................. 2,985,292
Expense reimbursement receivable................................. 1,108,736
Cash............................................................. 43,283
------------
TOTAL ASSETS..................................................... 423,327,908
------------
LIABILITIES:
Payable for investments purchased................................ 77,185,536
Accrued expenses................................................. 1,253,519
Payable for advisory fees........................................ 750,685
Dividend payable................................................. 12,843
Distribution fee payable, Class B................................ 817
Distribution fee payable, Class A................................ 206
Administrative services fee payable, Class I..................... 192
------------
TOTAL LIABILITIES................................................ 79,203,798
------------
NET ASSETS....................................................... $344,124,110
------------
- -------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 35,049,709 shares outstanding....... $ 350,497
Additional paid in capital....................................... 346,331,754
Undistributed net realized gain on securities.................... 929,189
Undistributed net investment income.............................. (135,140)
Unrealized depreciation of securities............................ (3,352,190)
------------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING............................................ $344,124,110
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
89
CORE BOND FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Interest............................................................ $9,043,154
----------
Total investment income............................................ 9,043,154
----------
EXPENSES:
Advisory fees....................................................... 743,966
Transfer agent fees................................................. 394,738
Custodian fees...................................................... 193,089
Distribution fees:
Class A............................................................ 206
Class B............................................................ 810
Administrative service fee, Class I................................. 191
Registration and filing fees........................................ 26,115
Audit fees and tax services......................................... 104,901
Accounting services................................................. 46,565
Trustees' fees and expenses......................................... 31,488
Report to shareholders.............................................. 8,944
Miscellaneous....................................................... 11,871
----------
Total expenses..................................................... 1,562,884
Expense reimbursement (see Note 3)................................. (666,201)
----------
Net expenses....................................................... 896,683
----------
NET INVESTMENT INCOME............................................... 8,146,471
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain on securities..................................... 929,189
Net unrealized depreciation of securities during the period......... (3,352,190)
----------
Net realized and unrealized loss on securities during the period... (2,423,001)
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................... $5,723,470
----------
</TABLE>
<TABLE>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income....................... $ 8,146,471 $ -
Net realized gain on securities............. 929,189 -
Net unrealized depreciation of securities
during the period........................... (3,352,190) -
---------------------------------
Increase in net assets resulting from
operations................................. 5,723,470 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (3,283) -
Class B.................................... (2,674) -
Class I.................................... (3,033) -
Class II................................... (8,272,621) -
---------------------------------
Total distributions to shareholders from
net investment income..................... (8,281,611) -
---------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
Class I.................................... - -
Class II................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (8,281,611) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 67,272 1,250
Class B.................................... 127,811 1,250
Class I.................................... 26,401 1,250
Class II................................... 346,455,767 1,250
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 346,677,251 5,000
---------------------------------
TOTAL INCREASE IN NET ASSETS................ 344,119,110 5,000
NET ASSETS:
Beginning of year.......................... 5,000 -
---------------------------------
End of period (including undistributed net
investment income of ($135,140) and $0).... $344,124,110 $5,000
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ------------------------------------------ ------------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
-------------------- -------------------- -------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
-------------------- -------------------- -------------------- --------------------
Shares sold..... 128,979 $1,289,292 125 $ 1,250 135,193 $1,350,451 125 $ 1,250
Shares issued
for
distributions
reinvested...... 313 3,100 - - 251 2,480 - -
Shares
repurchased..... (124,000) (1,225,120) - - (124,000) (1,225,120) - -
-------------------- -------------------- -------------------- --------------------
Increase in
shares
outstanding..... 5,292 67,272 125 1,250 11,444 127,811 125 1,250
Shares
outstanding:
Beginning of
period.......... 125 1,250 - - 125 1,250 - -
-------------------- -------------------- -------------------- --------------------
End of period... 5,417 $ 68,522 125 $ 1,250 11,569 $ 129,061 125 $1,250
-------------------- -------------------- -------------------- --------------------
<CAPTION>
CHANGE IN SHARES Class I Class II
OUTSTANDING ------------------------------------------ ----------------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
--------------------- -------------------- ------------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
--------------------- -------------------- ------------------------- --------------------
Shares sold..... 124,875 $1,248,749 125 $ 1,250 34,878,993 $344,948,749 125 $ 1,250
Shares issued
for
distributions
reinvested...... 280 2,772 - - 835,975 8,260,417 - -
Shares
repurchased..... (124,000) (1,225,120) - - (683,650) (6,753,399) - -
--------------------- -------------------- ------------------------- --------------------
Increase in
shares
outstanding..... 1,155 26,401 125 1,250 35,031,318 346,455,767 125 1,250
Shares
outstanding:
Beginning of
period.......... 125 1,250 - - 125 1,250 - -
--------------------- -------------------- ------------------------- --------------------
End of period... 1,280 $ 27,651 125 $ 1,250 35,031,443 $346,457,017 125 $ 1,250
--------------------- -------------------- ------------------------- --------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
90 April 30, 1999 (Unaudited)
MUNICIPAL BOND FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
MUNICIPAL BONDS -
LONG TERM - 87.34%
ESCROWED - 3.40%
$200,000 Lower Colorado River Authority
Texas Revenue,
5.25% due 01/01/15...................................... $ 209,820
----------
GENERAL OBLIGATION - 19.89%
500,000 Argyle Texas Independent School,
Zero Coupon due 08/15/14................................ 234,260
250,000 Garland, Texas,
4.50% due 02/15/19...................................... 229,673
225,000 Harris County, Texas,
4.50% due 10/01/09...................................... 226,247
225,000 Honolulu Hawaii City & County,
5.25% due 07/01/15...................................... 230,721
100,000 Philadelphia, Pennsylvania,
5.00% due 03/15/28...................................... 97,167
500,000 Pine Richland School District Pennsylvania,
Zero Coupon due 09/01/23................................ 139,760
200,000 Victor California Elementary School District,
Zero Coupon due 06/01/20................................ 67,892
----------
1,225,720
----------
HEALTHCARE - 20.80%
250,000 Colorado Health Facilities Authority,
5.25% due 09/01/18...................................... 238,025
250,000 Elkhart County Ind Hospital Authority,
5.25% due 08/15/28...................................... 240,583
225,000 Massachusetts State Health & Educational
Facilities Authority,
5.25% due 07/01/14...................................... 232,121
200,000 Massachusetts State Health & Educational
Facilities Partners Healthcare System, Series B,
5.13% due 07/01/19...................................... 197,350
200,000 Kansas State Development Finance Authority Hospital
Revenue,
5.20% due 12/15/18...................................... 195,088
175,000 Washington County Ohio Hospital Revenue, 5.38% due
09/01/18................................................ 179,092
----------
1,282,259
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
HOUSING - 5.15%
$500,000 Missouri State Housing Development
Community Mortgage,
Zero Coupon due 03/01/29................................ $ 94,295
225,000 New York State Mortgage Agency,
Series 77-A,
4.70% due 10/01/11...................................... 222,698
----------
316,993
----------
INDUSTRIAL REVENUE - 4.04%
250,000 Nekoosa Wisconsin Pollution Control Nekoosa Papers,
Inc., Proj-A,
5.35% due 07/01/15...................................... 249,178
----------
LEASE APPROPRIATION - 3.82%
225,000 New York State Urban Development Corp.
Revenue,
Zero Coupon due 04/01/09................................ 235,197
----------
POWER - 3.79%
225,000 Long Island Power Authority
New York Electric,
5.00% due 04/01/12...................................... 233,516
----------
TRANSPORTATION - 19.09%
225,000 Central Puget Sound Washington Regional, 5.25% due
02/01/13................................................ 237,647
225,000 E-470 Public Highway Authority Colorado
Sr. Series A,
5.25% due 09/01/18...................................... 228,573
225,000 Illinois State Toll Highway Authority Toll,
5.50% due 01/01/15...................................... 241,305
225,000 Port Portland Oregon Airport Revenue,
5.25% due 07/01/11...................................... 237,402
225,000 St Louis Missouri Airport Revenue,
5.13% due 07/01/13...................................... 231,908
----------
1,176,835
----------
UTILITIES - 3.33%
225,000 Wyandotte County Kansas University Government U,
4.50% due 09/01/28...................................... 205,513
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
WATER - 4.03%
$250,000 Green River-Sweetwater-County Wyoming, Series B,
4.50% due 03/01/14...................................... $ 248,647
----------
TOTAL MUNICIPAL BONDS - LONG TERM
(Cost $5,448,845)....................................... 5,383,678
----------
SHORT TERM SECURITIES
VARIABLE RATE DEMAND NOTES - 10.54%
INDUSTRIAL DEVELOPMENT - 1.62%
100,000 Philadelphia Pennsylvania Authority, Variable Rate
Demand Note 4.10% due 12/01/08.......................... 100,000
----------
STUDENT LOAN - 8.92%
250,000 Indiana Secondary Market
Educational Loans, Variable Rate
Demand Notes 4.10% due 12/01/14......................... 250,000
100,000 Kentucky Higher Education Student Loan, Variable Rate
Demand Notes 4.05% due 07/15/18......................... 100,000
200,000 Missouri Higher Education Loan
Authority, Student, Variable Rate
Demand Note 4.10% due 12/01/05.......................... 200,000
----------
550,000
----------
TOTAL SHORT TERM SECURITIES
VARIABLE RATE DEMAND NOTES
(Cost $650,000)......................................... 650,000
----------
TOTAL INVESTMENT
(Cost $6,098,845) - 97.88%.............................. 6,033,678
Other assets less liabilities,
net - 2.12%............................................. 130,588
----------
NET ASSETS (equivalent to $9.87 per share for 275,897
Class A shares and $9.87 per share for 348,811 Class B
shares outstanding) - 100.00%........................... $6,164,266
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 91
MUNICIPAL BOND FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
<S> <C>
- ----------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01
par value per share, unlimited shares
authorized, 624,708 shares outstanding........................ $ 6,247
Additional paid in capital.................................... 6,232,369
Undistributed net investment income........................... (9,183)
Unrealized depreciation of securities......................... (65,167)
-----------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING................... $ 6,164,266
-----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
- ----------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption
price per Class A share ($2,723,061
divided by 275,897 shares).................................... $ 9.87
-----------
Offering price per Class A share
(100/95.25 of $9.87)*......................................... $ 10.36
-----------
Net asset value and offering
price per Class B share ($3,441,205
divided by 348,811 shares)**.................................. $ 9.87
-----------
- -----------------
* Offering price includes sales charge of 4.75%. The sales charge is reduced
for purchases of $25,000 and over.
** Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
92 MUNICIPAL BOND FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Tax-exempt interest............................................... $117,740
--------
Total investment income.......................................... 117,740
--------
EXPENSES:
Advisory fees..................................................... 13,028
Transfer agent fees............................................... 7,110
Custodian fees.................................................... 3,663
Distribution fees:
Class A.......................................................... 3,110
Class B.......................................................... 13,616
Registration and filing fees...................................... 16,180
Audit fees and tax services....................................... 1,637
Accounting services............................................... 786
Trustees' fees and expenses....................................... 788
Report to shareholders............................................ 155
Miscellaneous..................................................... 183
--------
Total expenses................................................... 60,256
Expense reimbursement (see Note 3)............................... (18,637)
--------
Net expenses..................................................... 41,619
--------
NET INVESTMENT INCOME............................................. 76,121
--------
REALIZED AND UNREALIZED LOSS ON SECURITIES:
Net realized gain on securities................................... -
Net unrealized depreciation of
securities during the period...................................... (65,167)
--------
Net realized and unrealized loss on
securities during the period..................................... (65,167)
--------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS................................................... $ 10,954
--------
</TABLE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income....................... $ 76,121 $ -
Net realized gain on securities............. - -
Net unrealized depreciation of securities
during the period........................... (65,167) -
---------------------------------
Increase in net assets resulting from
operations................................. 10,954 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (46,503) -
Class B.................................... (38,801) -
---------------------------------
Total distributions to shareholders from
net investment income..................... (85,304) -
---------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities........ - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (85,304) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 2,754,115 2,500
Class B.................................... 3,479,501 2,500
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 6,233,616 5,000
---------------------------------
TOTAL INCREASE IN NET ASSETS................ 6,159,266 5,000
NET ASSETS:
Beginning of year.......................... 5,000 -
---------------------------------
End of period (including undistributed net
investment income of ($9,183) and $0)...... $6,164,266 $5,000
---------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
CHANGE IN SHARES Class A Class B
OUTSTANDING: ----------------------------------------- -----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
------------------- -------------------- ------------------- --------------------
Shares sold............. 271,304 $2,710,903 250 $ 2,500 352,225 $3,515,576 250 $ 2,500
Shares issued for
distributions
reinvested.............. 4,378 43,566 - - 3,468 34,503 - -
Shares repurchased...... (35) (354) - - (7,132) (70,578) - -
------------------- -------------------- ------------------- --------------------
Increase in shares
outstanding........... 275,647 2,754,115 250 2,500 348,561 3,479,501 250 2,500
Shares outstanding:
Beginning of period.... 250 2,500 - - 250 2,500 - -
------------------- -------------------- ------------------- --------------------
End of period.......... 275,897 $2,756,615 250 $ 2,500 348,811 $3,482,001 250 $ 2,500
------------------- -------------------- ------------------- --------------------
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
April 30, 1999 (Unaudited) 93
MONEY MARKET FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMERCIAL PAPER - 93.29%
AEROSPACE/DEFENSE - 1.92%
$250,000 Lockheed Martin Corp.,
4.99% due 06/14/99....................................... $ 248,533
----------
BEVERAGE - SOFT DRINKS - 3.98%
518,000 Coca Cola Co.,
4.80% due 06/04/99....................................... 514,090
----------
CHEMICAL - MAJOR - 4.33%
399,000 DuPont (E.I.) de Nemours & Co.,
4.76% due 06/02/99....................................... 397,400
163,000 PPG Industries, Inc.,
4.82% due 05/06/99....................................... 162,934
----------
560,334
----------
CONGLOMERATES - 4.32%
565,000 Fortune Brands,
4.80% due 07/06/99....................................... 559,246
----------
CONSUMER FINANCE - 12.10%
Associates Corp. NA:
116,000 4.80% due 06/21/99....................................... 115,238
380,000 4.80% due 07/06/99....................................... 376,746
565,000 Countrywide Home Loans,
4.88% due 05/28/99....................................... 563,103
512,000 Sears Roebuck Acceptance Corp.,
4.75% due 05/10/99....................................... 509,924
----------
1,565,011
----------
ENTERTAINMENT - 7.49%
420,000 Mattel, Inc.,
4.88% due 05/21/99....................................... 418,968
558,000 Walt Disney Co.,
4.74% due 07/27/99....................................... 549,034
----------
968,002
----------
FINANCE COMPANIES - 19.18%
400,000 Caterpillar Financial Services,
4.77% due 08/04/99....................................... 395,066
334,000 CIT Group Holdings, Inc.,
4.81% due 06/07/99....................................... 331,788
400,000 Ford Motor Credit Co.,
4.83% due 06/03/99....................................... 398,329
400,000 General Electric Capital Services, Inc.,
4.86% due 05/24/99....................................... 398,856
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
FINANCE COMPANIES - Continued
$390,000 General Motors Acceptance Corp.,
4.77% due 05/03/99................................... $ 389,223
570,000 International Lease Finance Corp.,
4.82% due 05/26/99................................... 566,069
----------
2,479,331
----------
FOODS - 3.17%
411,000 Archer Daniels Midland Co.,
4.79% due 06/15/99................................... 409,707
----------
HOSPITAL SUPPLIES - 3.40%
440,000 Abbott Laboratories,
4.79% due 05/06/99................................... 439,824
----------
INSURANCE - MULTILINE - 6.94%
500,000 Aon Corp.,
4.86% due 05/13/99................................... 499,323
398,000 Marsh & McLennan Companies, Inc.,
4.78% due 05/12/99................................... 397,524
----------
896,847
----------
MACHINERY - INDUSTRIAL/SPECIALTY - 3.13%
405,000 Cooper Industries, Inc.,
5.10% due 05/03/99................................... 405,000
----------
OIL - SERVICE - PRODUCTS - 1.54%
200,000 Shell Oil Co.,
4.85% due 06/25/99................................... 198,568
----------
PUBLISHING/PRINTING - 3.31%
429,000 R.R. Donnelley and Sons,
4.78% due 05/17/99................................... 428,201
----------
SECURITIES RELATED - 8.21%
521,000 Merrill Lynch & Co.,
4.78% due 07/16/99................................... 515,868
550,000 Morgan Stanley, Dean Witter, Discover,
4.83% due 06/11/99................................... 545,451
----------
1,061,319
----------
UTILITIES - COMMUNICATION - 7.18%
426,000 Bellsouth Telecom., Inc.,
4.80% due 05/13/99................................... 425,428
505,000 GTE Corp.,
4.81% due 06/11/99................................... 502,366
----------
927,794
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
UTILITIES - ELECTRIC - 3.09%
$400,000 Southern California Edison Co.,
4.82% due 05/14/99..................................... $ 399,408
-----------
TOTAL COMMERCIAL PAPER
(Cost $12,061,215)..................................... 12,061,215
-----------
UNITED STATES GOVERNMENT - 3.09%
GOVERNMENT SPONSORED - 3.09%
400,000 Federal National Mortgage Association,
4.69% due 05/07/99..................................... 399,789
-----------
TOTAL UNITED STATES GOVERNMENT
(Cost $399,789)........................................ 399,789
-----------
FOREIGN BONDS - 2.93%
384,000 Province of British Columbia,
4.75% due 08/04/99..................................... 379,276
-----------
TOTAL FOREIGN BONDS
(Cost $379,276)........................................ 379,276
-----------
TOTAL INVESTMENTS
(Cost $12,840,280) - 99.31%............................ 12,840,280
Other assets less liabilities,
net - 0.69%............................................ 89,208
-----------
NET ASSETS (equivalent to $1.00 per share for 2,797,911
Class A shares; $1.00 per share for 4,294,910 Class B
shares; $1.00 per share for 1,277,717 Class I shares
and $1.00 per share for 4,558,950 Class II shares
outstanding) - 100.00%................................. $12,929,488
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
94 April 30, 1999 (Unaudited)
MONEY MARKET FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
<C> <S> <C>
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01
par value per share, unlimited shares
authorized, 12,929,488 shares outstanding....................... $ 129,295
Additional paid in capital...................................... 12,800,193
-----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING........................................... $12,929,488
-----------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
<C> <S> <C>
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value, offering
price and redemption price per
Class A share ($2,797,911
divided by 2,797,911 shares).................................... $ 1.00
-----------
Net asset value and offering
price per Class B share ($4,294,910
divided by 4,294,910 shares)*................................... $ 1.00
-----------
Net asset value, offering price and
redemption price per Class I share
($1,277,717 divided by 1,277,717 shares)........................ $ 1.00
-----------
Net asset value, offering price and
redemption price per Class II share
($4,558,950 divided by 4,558,950 shares)........................ $ 1.00
-----------
* Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
95
MONEY MARKET FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Interest.............................................................. $239,859
--------
Total investment income.............................................. 239,859
--------
EXPENSES:
Advisory fees......................................................... 11,633
Transfer agent fees................................................... 11,906
Custodian fees........................................................ 6,033
Distribution fees:
Class A.............................................................. 2,056
Class B.............................................................. 8,656
Administrative service fee, Class I................................... 1,549
Registration and filing fees.......................................... 27,985
Audit fees and tax services........................................... 2,847
Accounting services................................................... 1,401
Trustees' fees and expenses........................................... 1,167
Report to shareholders................................................ 307
Miscellaneous......................................................... 322
--------
Total expenses....................................................... 75,862
Expense reimbursement (see Note 3)................................... (43,360)
--------
Net expenses......................................................... 32,502
--------
NET INVESTMENT INCOME................................................. 207,357
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................... $207,357
--------
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------
<S> <C> <C>
OPERATIONS:
Net investment income....................... $ 207,357 $ -
--------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (36,379) -
Class B.................................... (34,311) -
Class I.................................... (27,717) -
Class II................................... (108,950) -
--------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (207,357) -
--------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 2,796,661 1,250
Class B.................................... 4,293,660 1,250
Class I.................................... 1,276,467 1,250
Class II................................... 4,557,700 1,250
--------------------------------
Total increase in net assets resulting from
share transactions.......................... 12,924,488 5,000
--------------------------------
TOTAL INCREASE IN NET ASSETS................ 12,924,488 5,000
NET ASSETS:
Beginning of year.......................... 5,000 -
--------------------------------
End of period.............................. $12,929,488 $5,000
--------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ------------------------------------------ ------------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
--------------------- ------------------- --------------------- -------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
--------------------- ------------------- --------------------- -------------------
Shares sold..... 2,897,543 $2,897,543 1,250 $ 1,250 4,328,727 $4,328,727 1,250 $ 1,250
Shares issued
for
distributions
reinvested...... 36,380 36,380 - - 34,169 34,169 - -
Shares
repurchased..... (137,262) (137,262) - - (69,236) (69,236) - -
--------------------- ------------------- --------------------- -------------------
Increase in
shares
outstanding..... 2,796,661 2,796,661 1,250 1,250 4,293,660 4,293,660 1,250 1,250
Shares
outstanding:
Beginning of
period.......... 1,250 1,250 - - 1,250 1,250 - -
--------------------- ------------------- --------------------- -------------------
End of period... 2,797,911 $2,797,911 1,250 $ 1,250 4,294,910 $4,294,910 1,250 $ 1,250
--------------------- ------------------- --------------------- -------------------
<CAPTION>
CHANGE IN SHARES Class I Class II
OUTSTANDING ---------------------------------------- -------------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
-------------------- ------------------- ----------------------- -------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
-------------------- ------------------- ----------------------- -------------------
Shares sold..... 1,248,750 $1,248,750 1,250 $ 1,250 9,248,750 $9,248,750 1,250 $ 1,250
Shares issued
for
distributions
reinvested...... 27,717 27,717 - - 108,950 108,950 - -
Shares
repurchased..... - - - - (4,800,000) (4,800,000) - -
-------------------- ------------------- ----------------------- -------------------
Increase in
shares
outstanding..... 1,276,467 1,276,467 1,250 1,250 4,557,700 4,557,700 1,250 1,250
Shares
outstanding:
Beginning of
period.......... 1,250 1,250 - - 1,250 1,250 - -
-------------------- ------------------- ----------------------- -------------------
End of period... 1,277,717 $1,277,717 1,250 $ 1,250 4,558,950 $4,558,950 1,250 $ 1,250
-------------------- ------------------- ----------------------- -------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
96 April 30, 1999 (Unaudited)
MUNICIPAL MONEY MARKET FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SHORT TERM SECURITIES
VARIABLE RATE DEMAND NOTES -
MUNICIPALITIES - 99.70%
EDUCATION - 7.39%
$200,000 Illinois Educational Facilities Authority,
4.05% due 05/01/19................................... $ 200,000
100,000 Illinois Educational Facilities
Authority Revenues,
4.05% due 05/01/22................................... 100,000
100,000 Michigan State University,
3.95% due 08/15/22................................... 100,000
----------
400,000
----------
GENERAL OBLIGATION - 7.39%
200,000 Chicago, Illinois,
4.00% due 01/01/12................................... 200,000
200,000 Massachusetts State,
3.95% due 09/01/16................................... 200,000
----------
400,000
----------
HEALTHCARE - 14.76%
200,000 Florence County South Carolina
Hospital Revenue,
4.05% due 11/01/15................................... 200,000
200,000 Louisiana Public Facilities
Authority Hospital,
4.05% due 09/01/27................................... 200,000
200,000 North Carolina Medical Care
Community Hospital,
4.00% due 09/01/02................................... 200,000
200,000 Polk County Iowa Revenue,
4.00% due 12/01/15................................... 200,000
----------
800,000
----------
HOUSING - 12.01%
200,000 Illinois Developing Finance Authority,
4.05% 04/01/24....................................... 200,000
250,000 Massachusetts State Housing Finance,
3.95% due 12/01/25................................... 250,000
200,000 New York, New York City
Housing Development,
3.95% due 11/15/19................................... 200,000
----------
650,000
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
INDUSTRIAL REVENUE - 19.38%
$200,000 Clark County Nevada Industrial Development Revenue,
4.35% due 11/01/20.................................. $ 200,000
100,000 Cuyahoga County Ohio,
3.95% due 12/01/15.................................. 100,000
200,000 De Soto Parish - Louisiana Electric,
3.95% due 07/01/18.................................. 200,000
250,000 Duluth Minnesota Tax Increment Revenue,
4.00% 09/01/10...................................... 250,000
100,000 Illinois Development BIMBA
Manufacturing Co.,
4.15% due 05/01/16.................................. 100,000
200,000 Philadelphia Pennsylvania Authority,
4.10% due 12/01/08.................................. 200,000
----------
1,050,000
----------
POWER - 9.23%
250,000 Municipal Electric Authority Georgia,
4.00% due 01/01/20.................................. 250,000
250,000 Piedmont Municipal Power Agency South Carolina
Electric, Series B,
4.00% due 12/01/15.................................. 250,000
----------
500,000
----------
STUDENT LOAN - 19.38%
150,000 Indiana Secondary Market
Educational Loans,
4.10% due 12/01/14.................................. 150,000
250,000 Kentucky Higher Education Student Loan,
4.05% due 07/15/18.................................. 250,000
200,000 Missouri Higher Education Loan Authority Student
Loan, Series A,
4.10% due 12/01/05.................................. 200,000
200,000 North Texas Higher Educational Authority,
4.10% due 04/01/20.................................. 200,000
250,000 Utah State Board Regents Student Loan,
4.10% due 11/01/25.................................. 250,000
----------
1,050,000
----------
TRANSPORTATION - 4.62%
250,000 Orlando Florida - Republic Interchange,
3.95% due 10/01/21.................................. 250,000
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
WATER AND SEWER - 5.54%
$100,000 Detroit, Michigan Sewer Disposal Revenue, 4.00% due
07/01/23............................................ $ 100,000
100,000 Grand Rapids, Michigan Water Supply, 4.00% due
01/01/20............................................ 100,000
100,000 Massachusetts State Water Reservoir Authority,
Series A,
4.00% due 04/01/28.................................. 100,000
----------
300,000
----------
TOTAL MUNICIPALITIES - SHORT TERM
(Cost $5,400,000)................................... 5,400,000
----------
TOTAL INVESTMENT - 99.70%
(Cost $5,400,000)................................... 5,400,000
Other assets less liabilities,
net - 0.30%......................................... 16,214
----------
NET ASSETS (equivalent $1.00 per share on 2,812,546
Class A shares and $1.00 per share on 2,603,668
Class B shares outstanding) - (100.00%)............. $5,416,214
----------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value
per share, unlimited shares authorized,
5,416,214 shares outstanding.................................. $ 54,162
Additional paid in capital.................................... 5,362,052
----------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING................... $5,416,214
----------
- --------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption
price per Class A share ($2,812,546
divided by 2,812,546 shares).................................. $ 1.00
----------
Net asset value and offering
price per Class B share ($2,603,668
divided by 2,603,668 shares)*................................. $ 1.00
----------
* Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
97
MUNICIPAL MONEY MARKET FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Tax-exempt interest.............................................. $78,174
-------
Total investment income......................................... 78,174
-------
EXPENSES:
Advisory fees.................................................... 12,631
Transfer agent fees.............................................. 7,016
Custodian fees................................................... 3,586
Distribution fees:
Class A......................................................... 3,175
Class B......................................................... 12,561
Registration and filing fees..................................... 16,180
Audit fees and tax services...................................... 1,591
Accounting services.............................................. 762
Trustees' fees and expenses...................................... 786
Report to shareholders........................................... 139
Miscellaneous.................................................... 187
-------
Total expenses.................................................. 58,614
Expense reimbursement (see Note 3).............................. (22,044)
-------
Net expenses.................................................... 36,570
-------
NET INVESTMENT INCOME............................................ 41,604
-------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................. $41,604
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income....................... $ 41,604 $ -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (25,856) -
Class B.................................... (15,748) -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (41,604) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 2,810,046 2,500
Class B.................................... 2,601,168 2,500
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 5,411,214 5,000
---------------------------------
TOTAL INCREASE IN NET ASSETS................ 5,411,214 5,000
NET ASSETS:
Beginning of year.......................... 5,000 -
---------------------------------
End of period.............................. $5,416,214 $5,000
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ---------------------------------------- ----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
-------------------- ------------------ -------------------- ------------------
Shares Amount Shares Amount Shares Amount Shares Amount
------- ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold............. 2,810,046 $2,810,046 2,500 $ 2,500 2,601,168 $2,601,168 2,500 $ 2,500
Shares issued for
distributions
reinvested.............. - - - - - - - -
Shares repurchased...... - - - - - - - -
-------------------- ---------------- -------------------- ----------------
Increase in shares
outstanding........... 2,810,046 2,810,046 2,500 2,500 2,601,168 2,601,168 2,500 2,500
Shares outstanding:
Beginning of period... 2,500 2,500 - - 2,500 2,500 - -
-------------------- ---------------- -------------------- ----------------
End of period......... 2,812,546 $2,812,546 2,500 $ 2,500 2,603,668 $2,603,668 2,500 $ 2,500
-------------------- ---------------- -------------------- ----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
98 April 30, 1999 (Unaudited)
GROWTH LIFESTYLE FUND - STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- ------------------------------------------------------------------------------
INVESTMENT COMPANIES - AFFILIATED - 99.06%
BOND FUNDS - 8.95%
AGSPC 2 Domestic Bond Fund:
14,070 Class A........................................... $ 138,834
23,139 Class B........................................... 228,338
12,779 Class I........................................... 126,129
12,768 Class II.......................................... 126,038
----------
619,339
----------
INTERNATIONAL EQUITY FUNDS - 29.83%
AGSPC 2 International Growth Fund:
20,657 Class A........................................... 220,411
33,854 Class B........................................... 359,724
18,798 Class I........................................... 200,767
18,767 Class II.......................................... 200,621
AGSPC 2 International Value Fund:
20,169 Class A........................................... 245,861
31,219 Class B........................................... 378,552
18,785 Class I........................................... 228,986
18,764 Class II.......................................... 228,919
----------
2,063,841
----------
LARGE CAP EQUITY FUNDS - 25.97%
AGSPC 2 Large Cap Growth Fund:
17,233 Class A........................................... 218,170
25,982 Class B........................................... 327,785
16,274 Class I........................................... 206,348
16,260 Class II.......................................... 206,348
AGSPC 2 Large Cap Value Fund:
16,351 Class A........................................... 189,958
25,911 Class B........................................... 299,418
15,065 Class I........................................... 174,604
15,046 Class II.......................................... 174,378
----------
1,797,009
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
MID CAP EQUITY FUNDS - 15.28%
AGSPC 2 Mid Cap Growth Fund:
9,526 Class A............................................ $ 105,642
15,160 Class B............................................ 167,149
8,769 Class I............................................ 97,253
8,756 Class II........................................... 97,194
AGSPC 2 Mid Cap Value Fund:
10,815 Class A............................................ 133,803
16,842 Class B............................................ 207,589
10,050 Class I............................................ 124,394
10,037 Class II........................................... 124,335
----------
1,057,359
----------
SMALL CAP EQUITY FUNDS - 19.03%
AGSPC 2 Small Cap Growth Fund:
13,473 Class A............................................ 161,000
20,761 Class B............................................ 246,762
12,521 Class I............................................ 149,875
12,500 Class II........................................... 149,750
AGSPC 2 Small Cap Value Fund:
14,201 Class A............................................ 137,116
23,881 Class B............................................ 229,871
12,581 Class I............................................ 121,530
12,547 Class II........................................... 121,202
----------
1,317,106
----------
TOTAL INVESTMENT COMPANIES - AFFILIATED
(Cost $6,123,237).................................. 6,854,654
----------
TOTAL INVESTMENTS - 99.06%
(Cost $6,123,237).................................. 6,854,654
----------
Other assets less liabilities,
net - 0.94%........................................ 65,304
----------
NET ASSETS (equivalent to $11.36 per share for
136,003 Class A shares; $11.36 per share for
222,334 Class B shares; $11.36 per share for
125,550 Class I shares and $11.36 per share for
125,312 Class II shares outstanding) - 100.00%..... $6,919,958
----------
</TABLE>
<TABLE>
<CAPTION>
<C> <S> <C>
- -------------------------------------------------------------------------------
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption
price per Class A share ($1,545,660
divided by 136,003 shares)..................................... $ 11.36
----------
Offering price per Class A share
(100/94.25 of $11.36)*......................................... $ 12.05
----------
Net asset value and offering
price per Class B share ($2,524,695
divided by 222,334 shares)**................................... $ 11.36
----------
Net asset value, offering price and
redemption price per Class I share
($1,426,154 divided by 125,550 shares)......................... $ 11.36
----------
Net asset value, offering price and
redemption price per Class II share
($1,423,449 divided by 125,312 shares)......................... $ 11.36
----------
* Offering price includes sales charge of 5.75%. The sales charge is reduced
for purchases of $25,000 and over.
** Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES ASSETS:
Investments, at market (cost $6,123,237)....................... $6,854,654
Cash........................................................... 66,330
Receivable for fund shares sold................................ 7,555
Dividends receivable........................................... 4,631
----------
TOTAL ASSETS................................................... 6,933,170
----------
LIABILITIES:
Payable for investments purchased.............................. 5,894
Payable for fund shares redeemed............................... 4,503
Advisory fee payable........................................... 2,805
Dividend payable............................................... 10
----------
TOTAL LIABILITIES.............................................. 13,212
----------
NET ASSETS..................................................... $6,919,958
----------
- -----------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01
par value per share, unlimited shares
authorized, 609,199 shares outstanding......................... $ 6,092
Additional paid in capital..................................... 6,178,385
Undistributed net realized gain on securities.................. 2,040
Undistributed net investment income............................ 2,024
Unrealized appreciation of securities.......................... 731,417
----------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING.................... $6,919,958
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
99
GROWTH LIFESTYLE FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends.......................................................... $ 19,263
--------
Total investment income........................................... 19,263
EXPENSES:
Advisory fees...................................................... 2,805
--------
NET INVESTMENT INCOME.............................................. 16,458
--------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities.................................... 2,040
Net unrealized appreciation of securities
during the period.................................................. 731,417
--------
Net realized and unrealized gain on securities
during the period................................................. 733,457
--------
INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS......................................................... $749,915
--------
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income....................... $ 16,458 $ -
Net realized gain on securities............. 2,040 -
Net unrealized appreciation of securities
during the period........................... 731,417 -
---------------------------------
Increase in net assets resulting from
operations................................. 749,915 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (3,414) -
Class B.................................... (4,136) -
Class I.................................... (3,430) -
Class II................................... (3,454) -
---------------------------------
Total distributions to shareholders from
net investment income..................... (14,434) -
---------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
Class I.................................... - -
Class II................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (14,434) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 1,371,106 1,250
Class B.................................... 2,301,336 1,250
Class I.................................... 1,254,831 1,250
Class II................................... 1,252,204 1,250
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 6,179,477 5,000
--------
TOTAL INCREASE IN NET ASSETS................ 6,914,958 5,000
NET ASSETS:
Beginning of year.......................... 5,000 -
---------------------------------
End of period (including undistributed net
investment income of $2,024 and $0)........ $6,919,958 $5,000
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ----------------------------------------- --------------------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
------------------- -------------------- ------------------- --------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 137,045 $1,383,767 125 $ 1,250 222,706 $2,306,749 125 $ 1,250
Shares issued
for
distributions
reinvested...... 307 3,400 - - 373 4,140 - -
Shares
repurchased..... (1,474) (16,061) - - (870) (9,553) - -
--------------------- ------------------- ------------------- ----------------------
Increase in
shares
outstanding..... 135,878 1,371,106 125 1,250 222,209 2,301,336 125 1,250
Shares outstanding:
Beginning of
period.......... 125 1,250 - - 125 1,250 - -
--------------------- ------------------- ------------------- ----------------------
End of period... 136,003 $1,372,356 125 $ 1,250 222,334 $2,302,586 125 $ 1,250
--------------------- ------------------- ------------------- ----------------------
CHANGE IN SHARES Class I Class II
OUTSTANDING -------------------------------------------- ---------------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
--------------------- ------------------- ------------------- ----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
--------------------- ------------------- ------------------- ----------------------
Shares sold..... 125,115 $1,251,401 125 $ 1,250 124,875 $1,248,750 125 $ 1,250
Shares issued
for distributions
reinvested...... 310 3,430 - - 312 3,454 - -
Shares
repurchased..... - - - - - - - -
--------------------- ------------------- ------------------- ----------------------
Increase in
shares
outstanding... 125,425 1,254,831 125 1,250 125,187 1,252,204 125 1,250
Shares outstanding:
Beginning of
period........ 125 1,250 - - 125 1,250 - -
--------------------- ------------------- ------------------- ----------------------
End of period.. 125,550 $1,256,081 125 $ 1,250 125,312 $1,253,454 125 $ 1,250
--------------------- ------------------- ------------------- ----------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
100 April 30, 1999 (Unaudited)
MODERATE GROWTH LIFESTYLE FUND - STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- ------------------------------------------------------------------------------
INVESTMENT COMPANIES - AFFILIATED - 99.79%
BOND FUNDS - 22.95%
AGSPC 2 Domestic Bond Fund:
36,927 Class A........................................... $ 362,618
70,261 Class B........................................... 689,960
32,142 Class I........................................... 315,634
32,073 Class II.......................................... 314,957
----------
1,683,169
----------
INTERNATIONAL EQUITY FUNDS - 15.20%
AGSPC 2 International Growth Fund:
9,977 Class A........................................... 106,460
19,079 Class B........................................... 202,622
8,772 Class I........................................... 93,690
8,758 Class II.......................................... 93,623
AGSPC 2 International Value Fund:
11,078 Class A........................................... 135,037
19,755 Class B........................................... 239,441
10,018 Class I........................................... 122,124
10,007 Class II.......................................... 122,090
----------
1,115,087
----------
LARGE CAP EQUITY FUNDS - 31.62%
AGSPC 2 Large Cap Growth Fund:
20,550 Class A........................................... 260,165
36,016 Class B........................................... 454,164
18,777 Class I........................................... 238,091
18,762 Class II.......................................... 238,095
AGSPC 2 Large Cap Value Fund:
21,097 Class A........................................... 244,733
38,768 Class B........................................... 447,774
18,831 Class I........................................... 218,251
18,807 Class II.......................................... 217,973
----------
2,319,246
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MID CAP EQUITY FUNDS - 15.50%
AGSPC 2 Mid Cap Growth Fund:
9,858 Class A............................................. $ 109,329
18,194 Class B............................................. 200,497
8,769 Class I............................................. 97,251
8,756 Class II............................................ 97,194
AGSPC 2 Mid Cap Value Fund:
11,172 Class A............................................. 138,207
19,958 Class B............................................. 245,887
10,056 Class I............................................. 124,392
10,051 Class II............................................ 124,336
----------
1,137,093
----------
SMALL CAP EQUITY FUNDS - 14.52%
AGSPC 2 Small Cap Growth Fund:
9,711 Class A............................................. 116,045
17,339 Class B............................................. 205,992
8,764 Class I............................................. 104,911
8,750 Class II............................................ 104,825
AGSPC 2 Small Cap Value Fund:
11,684 Class A............................................. 112,519
23,539 Class B............................................. 226,444
10,087 Class I............................................. 97,132
10,068 Class II............................................ 96,968
----------
1,064,836
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
TOTAL INVESTMENT COMPANIES - AFFILIATED.................. $7,319,431
----------
TOTAL INVESTMENTS - 99.79%
(Cost $6,664,758)........................................ 7,319,431
Other assets less liabilities,
net - 0.21%.............................................. 15,591
----------
NET ASSETS (equivalent to $11.18 per share for 141,702
Class A shares; $11.20 per share for 262,169 Class B
shares; $11.18 per share for 126,090 Class I shares and
$11.18 per share for 125,616 Class II shares outstanding)
- 100.00%................................................ $7,335,022
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 101
MODERATE GROWTH LIFESTYLE FUND - STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
<S> <C>
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($1,584,094 divided by 141,702 shares)....................... $ 11.18
-----------
Offering price per Class A share
(100/94.25 of $11.18)*............................................. $ 11.86
-----------
Net asset value and offering price per Class B
share ($2,937,315 divided by 262,169 shares) **.................... $ 11.20
-----------
Net asset value, offering price and redemption price
per Class I share ($1,409,512 divided by
126,090 shares).................................................... $ 11.18
-----------
Net asset value, offering price and redemption price
per Class II share ($1,404,101 divided by
125,616 shares).................................................... $ 11.18
-----------
</TABLE>
* Offering price includes sales charge of 5.75%. The sales charge is reduced
for purchases of $25,000 and over.
** Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
STATEMENT OF ASSETS AND LIABILITIES ASSETS:
Investments, at market (cost $6,664,758)........................... $7,319,431
Cash............................................................... 19,207
Receivable for investments sold.................................... 18,538
Dividends receivable............................................... 9,526
----------
TOTAL ASSETS....................................................... 7,366,702
----------
LIABILITIES:
Payable for investments purchased.................................. 24,477
Payable for fund shares redeemed................................... 4,288
Advisory fee payable............................................... 2,832
Dividend payable................................................... 83
----------
TOTAL LIABILITIES.................................................. 31,680
----------
NET ASSETS......................................................... $7,335,022
----------
- -------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share, unlimited
shares authorized, 655,577 shares
outstanding........................................................ $ 6,556
Additional paid in capital......................................... 6,671,306
Accumulated net realized loss on securities........................ (38)
Undistributed net investment income................................ 2,525
Unrealized appreciation of securities.............................. 654,673
----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING.............................................. $7,335,022
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
102 MODERATE GROWTH LIFESTYLE FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Dividends............................................................ $ 39,329
--------
Total investment income............................................. 39,329
EXPENSES:
Advisory fees........................................................ 2,832
--------
NET INVESTMENT INCOME................................................ 36,497
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized loss on securities...................................... (38)
Net unrealized appreciation of securities during the period.......... 654,673
--------
Net realized and unrealized gain on securities during the period..... 654,635
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $691,132
--------
</TABLE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income....................... $ 36,497 $ -
Net realized loss on securities............. (38) -
Net unrealized appreciation of securities
during the period........................... 654,673 -
---------------------------------
Increase in net assets resulting from
operations................................. 691,132 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (8,052) -
Class B.................................... (10,054) -
Class I.................................... (9,084) -
Class II................................... (6,782) -
---------------------------------
Total distributions to shareholders from
net investment income..................... (33,972) -
---------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
Class I.................................... - -
Class II................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities...... - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (33,972) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 1,431,238 1,250
Class B.................................... 2,725,412 1,250
Class I.................................... 1,260,680 1,250
Class II................................... 1,255,532 1,250
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 6,672,862 5,000
---------------------------------
TOTAL INCREASE IN NET ASSETS................ 7,330,022 5,000
NET ASSETS:
Beginning of year.......................... 5,000 -
---------------------------------
End of period (including undistributed net
investment income of $2,525 and $0)........ $7,335,022 $5,000
</TABLE>
---------------------------------
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ----------------------------------------- -----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------- -------------------- ------------------- --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
------------------- -------------------- ------------------- --------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 142,349 $1,439,244 125 $ 1,250 261,843 $2,722,828 125 $ 1,250
Shares issued
for
distributions
reinvested...... 733 8,052 - - 904 9,972 - -
Shares
repurchased..... (1,505) (16,058) - - (703) (7,388) - -
------------------ -------------------- ------------------- --------------------
Increase in
shares
outstanding..... 141,577 1,431,238 125 1,250 262,044 2,725,412 125 1,250
Shares
outstanding:
Beginning of
period.......... 125 1,250 - - 125 1,250 - -
------------------ -------------------- ------------------- --------------------
End of period... 141,702 $1,432,488 125 $ 1,250 262,169 $2,726,662 125 $1,250
------------------ -------------------- ------------------- --------------------
<CAPTION>
CHANGE IN SHARES Class I Class II
OUTSTANDING ---------------------------------------- ----------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
------------------ -------------------- ------------------ ---------------------
Shares Amount Shares Amount Shares Amount Shares Amount
------------------- -------------------- ------------------ ---------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 125,135 $1,251,596 125 $ 1,250 124,875 $1,248,750 125 $ 1,250
Shares issued
for
distributions
reinvested...... 830 9,084 - - 616 6,782 - -
Shares
repurchased..... - - - - - - - -
------------------ -------------------- ------------------ --------------------
Increase in
shares
outstanding..... 125,965 1,260,680 125 1,250 125,491 1,255,532 125 1,250
Shares
outstanding:
Beginning of
period.......... 125 1,250 - - 125 1,250 - -
------------------ -------------------- ------------------ --------------------
End of period... 126,090 $1,261,930 125 $ 1,250 125,616 $1,256,782 125 $ 1,250
------------------ -------------------- ------------------ --------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
April 30, 1999 (Unaudited) 103
CONSERVATIVE GROWTH LIFESTYLE FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- ------------------------------------------------------------------------------
INVESTMENT COMPANIES - AFFILIATED - 99.93%
BOND FUNDS - 36.78%
AGSPC 2 Domestic Bond Fund:
59,775 Class A........................................... $ 586,993
81,244 Class B........................................... 797,817
51,290 Class I........................................... 503,671
51,317 Class II.......................................... 503,932
----------
2,392,413
----------
INTERNATIONAL EQUITY FUNDS - 10.50%
AGSPC 2 International Growth Fund:
7,255 Class A........................................... 77,408
10,706 Class B........................................... 113,700
6,253 Class I........................................... 66,782
6,256 Class II.......................................... 66,874
AGSPC 2 International Value Fund:
7,060 Class A........................................... 86,064
9,872 Class B........................................... 119,654
6,252 Class I........................................... 76,213
6,255 Class II.......................................... 76,306
----------
683,001
----------
LARGE CAP EQUITY FUNDS - 32.21%
AGSPC 2 Large Cap Growth Fund:
20,818 Class A........................................... 263,558
26,767 Class B........................................... 337,536
18,753 Class I........................................... 237,792
18,762 Class II.......................................... 238,094
AGSPC 2 Large Cap Value Fund:
21,501 Class A........................................... 249,413
28,858 Class B........................................... 333,309
18,796 Class I........................................... 217,849
18,807 Class II.......................................... 217,973
----------
2,095,524
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
MID CAP EQUITY FUNDS - 10.54%
AGSPC 2 Mid Cap Growth Fund:
7,122 Class A................................................ $ 78,987
9,792 Class B................................................ 107,906
6,252 Class I................................................ 69,332
6,254 Class II............................................... 69,424
AGSPC 2 Mid Cap Value Fund:
7,115 Class A................................................ 88,022
9,500 Class B................................................ 117,042
6,275 Class I................................................ 77,617
6,282 Class II............................................... 77,710
----------
686,040
----------
SMALL CAP EQUITY FUNDS - 9.90%
AGSPC 2 Small Cap Growth Fund:
6,983 Class A................................................ 83,450
9,526 Class B................................................ 113,174
6,250 Class I................................................ 74,813
6,250 Class II............................................... 74,875
AGSPC 2 Small Cap Value Fund:
7,402 Class A................................................ 71,277
10,947 Class B................................................ 105,312
6,285 Class I................................................ 60,529
6,292 Class II............................................... 60,597
----------
644,027
----------
TOTAL INVESTMENT COMPANIES - AFFILIATED................ 6,501,005
----------
TOTAL INVESTMENTS - 99.93%
(Cost $5,998,996)...................................... 6,501,005
Other assets less liabilities,
net - 0.07%............................................ 4,428
----------
NET ASSETS (equivalent to $10.96 per share for 144,441
Class A shares; $10.97 per share for 196,736 Class B
shares; $10.96 per share for 126,144 Class I shares and
$10.96 per share for 126,131 Class II shares
outstanding) - 100.00%................................. $6,505,433
----------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
COMPUTATION OF NET ASSET VALUE
AND OFFERING PRICE:
Net asset value and redemption price per Class A
share ($1,583,079 divided by 144,441 shares).................... $ 10.96
----------
Offering price per Class A share
(100/94.25 of $10.96)*.......................................... $ 11.63
----------
Net asset value and offering price per Class B
share ($2,157,849 divided by 196,736 shares)**.................. $ 10.97
----------
Net asset value, offering price and redemption
price per Class I share ($1,382,327 divided by
126,144 shares)................................................. $ 10.96
----------
Net asset value, offering price and redemption
price per Class II share ($1,382,178 divided by 126,131
shares)......................................................... $ 10.96
----------
* Offering price includes sales charge of 5.75%.
The sales charge is reduced for purchases
of $25,000 and over.
** Redemption price per share is equal to net asset value
less any applicable contingent deferred sales charge.
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
ASSETS:
Investments at market (cost $5,998,996)......................... $6,501,005
Dividends receivable............................................ 12,657
Receivable for fund shares sold................................. 5,000
Cash............................................................ 2,325
----------
TOTAL ASSETS.................................................... 6,520,987
----------
LIABILITIES:
Payable for investments purchased............................... 12,657
Advisory fee payable............................................ 2,716
Dividend payable................................................ 181
----------
TOTAL LIABILITIES............................................... 15,554
----------
NET ASSETS...................................................... $6,505,433
----------
- -------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 593,452 shares
outstanding..................................................... $ 5,935
Additional paid in capital...................................... 5,994,780
Undistributed net realized gain on securities................... 159
Undistributed net investment income............................. 2,550
Unrealized appreciation of securities........................... 502,009
----------
NET ASSETS APPLICABLE
TO SHARES OUTSTANDING........................................... $6,505,433
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- -------------------------------------------------------------------------------
<PAGE>
104 CONSERVATIVE GROWTH LIFESTYLE FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Dividends............................................................. $ 55,828
--------
Total investment income.............................................. 55,828
EXPENSES:
Advisory fees......................................................... 2,716
--------
NET INVESTMENT INCOME................................................. 53,112
--------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities....................................... 159
Net unrealized appreciation of securities during the period........... 502,009
--------
Net realized and unrealized gain on securities during the period...... 502,168
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................... $555,280
--------
</TABLE>
<TABLE>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION>
For the six For the period
months ended October 7, 1998 to
April 30, 1999 October 31, 1998
---------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income....................... $ 53,112 $ -
Net realized gain on securities............. 159 -
Net unrealized appreciation of securities
during the period........................... 502,009 -
---------------------------------
Decrease in net assets resulting from
operations................................. 555,280 -
---------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A.................................... (12,611) -
Class B.................................... (13,558) -
Class I.................................... (12,147) -
Class II................................... (12,246) -
---------------------------------
Total distributions to shareholders from net
investment income........................... (50,562) -
---------------------------------
Net realized gain on securities
Class A.................................... - -
Class B.................................... - -
Class I.................................... - -
Class II................................... - -
---------------------------------
Total distributions to shareholders
from net realized gain on securities........ - -
---------------------------------
Decrease in net assets resulting from
distributions to shareholders............... (50,562) -
---------------------------------
SHARE TRANSACTIONS:
Net increase in net assets resulting from
share transactions
Class A.................................... 1,456,535 1,250
Class B.................................... 2,017,031 1,250
Class I.................................... 1,261,152 1,250
Class II................................... 1,260,997 1,250
---------------------------------
Total increase in net assets resulting from
share transactions.......................... 5,995,715 5,000
---------------------------------
TOTAL INCREASE IN NET ASSETS................ 6,500,433 5,000
NET ASSETS:
Beginning of year.......................... 5,000 -
---------------------------------
End of period (including undistributed
net investment income of $2,550 and $0).... $6,505,433 $ 5,000
---------------------------------
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHANGE IN SHARES Class A Class B
OUTSTANDING ------------------------------------------- --------------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
---------------------- ------------------ -------------------- -----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 147,527 $1,489,991 125 $ 1,250 195,476 $2,004,673 125 $ 1,250
Shares issued
for
distributions
reinvested...... 1,163 12,608 - - 1,232 13,379 - -
Shares
repurchased..... (4,374) (46,064) - - (97) (1,021) - -
---------------------- ------------------ -------------------- -----------------------
Increase in
shares
outstanding..... 144,316 1,456,535 125 1,250 196,611 2,017,031 125 1,250
Shares
outstanding:
Beginning of
period.......... 125 1,250 - - 125 1,250 - -
---------------------- ------------------ -------------------- -----------------------
End of period... 144,441 $ 1,457,785 125 $ 1,250 196,736 $2,018,281 125 $ 1,250
---------------------- ------------------ -------------------- -----------------------
CHANGE IN SHARES Class I Class II
OUTSTANDING ------------------------------------------- --------------------------------------------
For the six For the period For the six For the period
months ended October 7, 1998 to months ended October 7, 1998 to
April 30, 1999 October 31, 1998 April 30, 1999 October 31, 1998
---------------------- ------------------ -------------------- -----------------------
Shares Amount Shares Amount Shares Amount Shares Amount
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold..... 124,898 $1,249,005 125 $ 1,250 124,875 $1,248,750 125 $ 1,250
Shares issued
for
distributions
reinvested...... 1,121 12,147 - - 1,131 12,247 - -
Shares
repurchased..... - - - - - - - -
---------------------- ------------------ -------------------- -----------------------
Increase in
shares
outstanding..... 126,019 1,261,152 125 1,250 126,006 1,260,997 125 1,250
Shares
outstanding:
Beginning of
period.......... 125 1,250 - - 125 1,250 - -
---------------------- ------------------ -------------------- -----------------------
End of period... 126,144 $ 1,262,402 125 $ 1,250 126,131 $1,262,247 125 $ 1,250
---------------------- ------------------ -------------------- -----------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
105
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Note 1 -- Organization
American General Series Portfolio Company 2 (the "Series" or "AGSPC 2") was
organized as a Delaware business trust on March 16, 1998 by The Variable
Annuity Life Insurance Company hereafter referred to as ("VALIC" or the
"Adviser") is registered under the Investment Company Act of 1940, as amended,
(the "1940 Act") as an open-end, management investment company. On October 7,
1998 VALIC contributed $100,000 to the Series as its initial funding. On
November 2, 1998 VALIC contributed an additional $99,900,000 and the Series
commenced operations. The Series consists of the following 23 separate
investment portfolios or "funds", each of which is, in effect, a separate
mutual fund issuing its own separate classes of shares of beneficial interest.
Stock Index Fund Balanced Fund
Mid Cap Index High Yield Bond Fund
Small Cap Index Strategic Bond Fund
International Growth Fund Domestic Bond Fund
Large Cap Growth Fund Core Bond Fund
Mid Cap Growth Fund Municipal Bond Fund
Small Cap Growth Fund Money Market Fund
International Value Fund Municipal Money Market Fund
Large Cap Value Fund Growth Lifestyle Fund*
Mid Cap Value Fund Moderate Growth Lifestyle Fund*
Small Cap Value Fund Conservative Growth Lifestyle Fund*
Socially Responsible Fund
* The lifestyle funds represent "funds of funds" which invest in up to nine
underlying AGSPC 2 funds.
The Stock Index Fund, Mid Cap Index Fund, and Small Cap Index Fund, Municipal
Bond Fund, and Municipal Money Market offer only Class A and Class B shares of
beneficial interest. The remaining 18 AGSPC 2 funds offer Class A, Class B,
Class I, and Class II shares. Class A shares are sold with a front-end sales
charge and Class B shares are subject to a contingent deferred sales charge.
Class B Shares automatically convert to Class A shares six years after
purchase.
Note 2 -- Significant Accounting Policies
The financial statements have been prepared in accordance with generally
accepted accounting principles ("GAAP"). GAAP requires accruals which
occasionally are based upon management estimates. The following is a summary of
significant accounting policies consistently followed by each Fund in the
preparation of its financial statements.
A. Investment Valuation
Securities listed or traded on a national exchange are valued daily at their
last reported sale price. In the absence of any exchange sales on that day and
for unlisted issues, securities are valued at the last sale price on the NASDAQ
National Market System. In the absence of any National Market System sales on
that day, securities are valued at the last reported bid price. However,
options written for which other over-the-counter market quotations are readily
available are valued at the last reported asked price, in the absence of any
National Market System sales on that day. Futures contracts, options thereon,
and options on stock indexes are valued at the amount which would be received
upon a current disposition of such investments (i.e., their fair market value),
in the absence of any sales on that day. Short term debt securities for which
market quotations are readily available are valued at the last reported bid
price. However, any short term security with a remaining maturity of 60 days or
less and all investments of the Money Market Fund and the Municipal Money
Market Fund are valued by the amortized cost method which approximates fair
market value. Investments for which market quotations are not readily available
are valued at fair value as determined in good faith by, or under authority
delegated by, the Series' Board of Trustees. Lifestyle fund securities are
valued at the net asset value (market value) of the underlying AGSPC 2 fund.
B. Options, Futures, and Forward Currency Contracts
Call and Put Options. When a Fund writes a call or a put option, an amount
equal to the premium received is recorded as a liability. The liability is
"marked to market" daily to reflect the current market value of the option
written. When a written option expires, the Fund realizes a gain in the amount
of the premium originally received. If the Fund enters into a closing purchase
transaction, the Fund realizes a gain or loss in the amount of the original
premium less the cost of the closing transaction. If a written call option is
exercised, the Fund realizes a gain or loss from the sale of the underlying
security, and the proceeds from such sale are increased by the premium
originally received. If a written put option is exercised, the amount of the
premium originally received reduces the cost of the security which the Fund
purchases upon exercise of the option.
Purchased options are recorded as investments. If a purchased option expires,
the Fund realizes a loss in the amount of the cost of the option. If the Fund
enters into a closing transaction, it realizes a gain (or loss), to the extent
that the proceeds from the sale are greater (or less) than the cost of the
option. If the Fund exercises a put option, it realizes a gain or loss from the
sale of the underlying security by adjusting the proceeds from such sale by the
amount of the premium originally paid. If the Fund exercises a call option, the
cost of the security purchased upon exercise is increased by the premium
originally paid.
Futures Contracts. The initial margin deposit made upon entering into a
futures contract is held by the custodian bank, in a segregated account, in the
name of the broker (the Fund's agent in acquiring the futures position). During
the period the futures contract is open, changes in the value of the contract
are recognized as unrealized gains or losses by "marking to market" on a daily
basis to reflect the market value of the contract at the end of each day's
trading. Variation margin payments are received or made daily, as unrealized
gains or losses are incurred. When the contract is closed, the Fund realizes a
gain or loss in the amount of the cost of or proceeds from the closing
transaction less the Fund's basis in the contract.
Forward Currency Contracts. A Fund may engage in forward currency contracts,
which are agreements between two parties to buy and sell currencies at a set
price on a future date. The U.S. dollar value of forward currency contracts is
determined using current forward currency exchange rates supplied by a
quotation service. The market value of the contract will fluctuate with changes
in currency exchange rates. During the period the forward currency contract is
open, the contract is "marked to market" daily and the change in market value
is recorded as an unrealized gain or loss. When the contract is closed, the
fund records a realized gain or loss equal to the difference between the value
of the contract at the time it was opened and the value at the time it was
closed. The fund could be exposed to risk if the value of the currency changes
unfavorably, if the counterparties to the contracts are unable to meet the
terms of their contracts, or if the fund is unable to enter into a closing
position.
C. Repurchase Agreements
The seller of a repurchase agreement collateralizes the agreement with
securities delivered to the Fund's custodian bank. The Adviser determines, on a
daily basis, that the seller maintains collateral of at least 100% of the
repurchase proceeds due to the Fund at maturity.
D. Foreign Currency Translation
The accounting records of each Fund are maintained in U.S. dollars.
Transactions denominated in foreign currencies ("local currencies") are
translated into U.S. dollars at prevailing exchange rates on transaction date.
Net realized gains or losses on foreign currency transactions include exchange
rate gains and losses from disposition of foreign currencies, currency gains
and losses realized between trade and settlement dates of security
transactions, and currency gains and losses realized on settlement of other
assets and liabilities settled in local currencies.
- --------------------------------------------------------------------------------
<PAGE>
106
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONTINUED
In determining realized and unrealized gains or losses on foreign securities
for the period, the Funds do not isolate exchange rate fluctuations from local
security price fluctuations. Foreign currencies and other assets and
liabilities denominated in local currencies are marked-to-market daily to
reflect fluctuations in foreign exchange rates.
E. Federal Income Taxes
Each Fund intends to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code and to distribute all of its taxable
net investment income and taxable net realized capital gains, in excess of any
available capital loss carryovers. Therefore, no federal income tax provision
is required.
F. Investment Transactions and Related Investment Income
Investment transactions are accounted for on the trade date. Realized gains
and losses on securities sold are determined on the basis of identified cost.
Dividend income and capital gain distributions received are recorded on the ex-
dividend date. Dividend income on certain foreign securities is recorded when
the Fund becomes aware of the dividend. Interest income on investments is
accrued daily.
G. Distributions to Shareholders
Distributions to shareholders are recorded on the record date. The Funds
declare distributions from net investment income quarterly, except for the
Money Market Fund and Municipal Money Market Fund which declare daily. The High
Yield Bond Fund, Strategic Bond Fund, the Domestic Bond Fund, the Core Bond
Fund, and the Municipal Bond Fund declare dividends daily and distribute such
dividends monthly. The International Growth Fund and International Value Fund
pay dividends semi-annually. Capital gains distributions are declared annually.
Investment income and capital gains and losses are recognized in accordance
with generally accepted accounting principles ("book"). Distributions from net
investment income and realized capital gains are based on earnings as
determined in accordance with federal tax regulations ("tax") which may differ
from book basis earnings. At the end of the year, offsetting adjustments to
undistributed net investment income and undistributed net realized gains
(losses) are made to eliminate permanent book/tax differences arising in the
current year.
Note 3 -- Advisory Fees and Other Transactions with Affiliates
VALIC (the "Adviser") serves as investment adviser to the Series. VALIC is an
indirect wholly-owned subsidiary of American General Corporation, Houston,
Texas. On October 7, 1998, the Adviser entered into sub-advisory agreements
with the following:
American General Investment Management, L.P. -- sub-adviser for the High
Yield Bond Fund, the Strategic Bond Fund, the Core Bond Fund, the
Municipal Bond Fund, and the Muncipal Money Market Fund.
Bankers Trust New York Company -- sub-adviser for the Stock Index Fund, the
Mid Cap Index Fund, the Small Cap Index Fund, and is one of two sub-
advisers for the Small Cap Value Fund.
Brown Capital Management, Inc. -- sub-adviser for the Mid Cap Growth Fund.
Capital Guardian Trust Company -- sub-adviser for the International Value
Fund, the Balanced Fund, and the Domestic Bond Fund.
Fiduciary Management Associates, Inc. -- one of two sub-advisers for the
Small Cap Value Fund.
Goldman Sachs Asset Management -- sub-adviser for the Large Cap Growth
Fund.
J.P. Morgan Investment Management Inc. -- sub-adviser for the Small Cap
Growth Fund.
Jacobs Asset Management -- sub-adviser for the International Growth Fund.
Neuberger Berman Management, Inc. -- sub-adviser for the Mid Cap Value
Fund.
State Street Global Advisors -- sub-adviser for the Large Cap Value Fund.
Sub-advisers are compensated for such services by the Adviser.
The Adviser receives from the Series a monthly fee based on each Fund's
average daily net asset value at the following annual rates:
<TABLE>
<C> <S>
Stock Index Fund 0.27% on the first $500 million
0.26% on assets over $500 million
---------------------------------------------------------------
Mid Cap Index Fund 0.28% on the first $500 million
0.27% on assets over $500 million
---------------------------------------------------------------
Small Cap Index Fund 0.28% on the first $500 million
0.27% on assets over $500 million
---------------------------------------------------------------
International Growth 0.90% on the first $100 million
Fund 0.80% on assets more than $100 million
---------------------------------------------------------------
Large Cap Growth Fund 0.55%
---------------------------------------------------------------
Mid Cap Growth Fund 0.65% on the first $25 million
0.55% on the next $25 million
0.45% on assets more than $50 million
---------------------------------------------------------------
Small Cap Growth Fund 0.85%
---------------------------------------------------------------
International Value 1.00% on the first $25 million
Fund 0.85% on the next $25 million
0.675% on the next $200 million
0.625% on assets more than $250 million
---------------------------------------------------------------
Large Cap Value Fund 0.50%
---------------------------------------------------------------
Mid Cap Value Fund 0.75% on the first $100 million
0.725% on the next $150 million
0.70% on the next $250 million
0.675% on the next $250 million
0.65% on assets more than $750 million
---------------------------------------------------------------
Small Cap Value Fund 0.75% on the first $50 million
0.65% on assets more than $50 million
---------------------------------------------------------------
Socially Responsible 0.25%
Fund
---------------------------------------------------------------
Balanced Fund 0.80% on the first $25 million
0.65% on the next $25 million
0.45% on assets more than $50 million
---------------------------------------------------------------
High Yield Bond Fund 0.70% on the first $200 million
0.60% on the next $300 million
0.55% on assets more than $500 million
---------------------------------------------------------------
Strategic Bond Fund 0.60% on the first $200 million
0.50% on the next $300 million
0.45% on assets more than $500 million
---------------------------------------------------------------
Domestic Bond Fund 0.60% on the first $50 million
0.45% on the next $50 million
0.43% on the next $200 million
0.40% on assets more than $300 million
---------------------------------------------------------------
Core Bond Fund and 0.50% on the first $200 million
Municipal Bond Fund 0.45% on the next $300 million
0.40% on assets over $500 million
---------------------------------------------------------------
Money Market Fund 0.25%
---------------------------------------------------------------
Municipal Money 0.50% on the first $200 million
Market Fund 0.45% on the next $300 million
0.40% on assets over $500 million
---------------------------------------------------------------
Growth Lifestyle 0.10%
Fund,
Moderate Growth
Lifestyle Fund and,
Conservative Growth
Lifestyle Fund
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
107
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONTINUED
The Adviser has voluntarily agreed to waive a portion of its management fee
or to reimburse certain expenses of each Fund, other than the Lifestyle Funds,
during the first fiscal year. The Adviser may withdraw this voluntary
undertaking at any time. The table below reflects total annual operating
expenses by Fund, as voluntarily limited by the Adviser, shown as a percentage
of average net assets:
<TABLE>
<CAPTION>
Class A Class B Class I Class II
--------------------------------------------------
<S> <C> <C> <C> <C>
Stock Index Fund 0.82% 1.57% N/A N/A
Mid Cap Index
Fund 0.83% 1.58% N/A N/A
Small Cap Index
Fund 0.83% 1.58% N/A N/A
International
Growth Fund 1.40% 2.15% 1.28% 1.03%
Large Cap Growth
Fund 1.10% 1.85% 0.98% 0.73%
Mid Cap Growth
Fund 1.04% 1.79% 0.92% 0.67%
Small Cap Growth
Fund 1.40% 2.15% 1.28% 1.03%
International
Value Fund 1.29% 2.04% 1.17% 0.92%
Large Cap Value
Fund 1.05% 1.80% 0.93% 0.68%
Mid Cap Value
Fund 1.29% 2.04% 1.17% 0.92%
Small Cap Value
Fund 1.23% 1.98% 1.11% 0.86%
Socially
Responsible Fund 0.80% 1.55% 0.68% 0.43%
Balanced Fund 1.07% 1.82% 0.95% 0.70%
High Yield Bond
Fund 1.25% 2.00% 1.13% 0.88%
Strategic Bond
Fund 1.15% 1.90% 1.03% 0.78%
Domestic Bond
Fund 1.03% 1.78% 0.91% 0.66%
Core Bond Fund 1.05% 1.80% 0.93% 0.68%
Municipal Bond
Fund 1.05% 1.80% N/A N/A
Money Market
Fund 0.80% 1.55% 0.68% 0.43%
Municipal Money
Market Fund 1.05% 1.80% N/A N/A
</TABLE>
On October 7, 1998, the Series entered into an Accounting Services Agreement
with VALIC which appointed VALIC as accounting services agent. Under the
agreement VALIC will provide certain accounting and administrative services to
the Series. During the period ended April 30, 1999, the Series paid VALIC
$70,603 for such services.
VALIC Investment Services Company ("VISCO"), the Distributor for the Series
is a wholly owned subsidiary of the Adviser. VISCO received $168,630 in net
commissions for the six months ended April 30, 1999.
The Series has adopted a Distribution and Service Plan ("Plan") pursuant to
Rule 12b-1 of the Investment Company Act of 1940. The Plan provides for
payment of a distribution and service fee to the Distributor at an annual rate
of 0.25% and 1.00% of average net assets on Class A and Class B shares,
respectively, other than the lifestyle funds. Under the plan, the Distributor
receives a fee for providing investor services and activities related to the
distribution of shares of the Series. For the six months ended April 30, 1999,
the Distributor received fees under the Plan of $39,347 and $171,352 for Class
A and Class B, respectively.
The Series has entered into an Administrative Service Agreement ("Service
Agreement") with VALIC Retirement Services Company ("VRSCO") and VISCO for the
provision of recordkeeping and shareholder services to retirement and employee
benefit plans purchasing Class I shares. Under the terms of the Service
Agreement, the Series pays either VRSCO or VISCO, a fee on Class I shares
equal to 0.25% of average net assets of each fund's Class I shares, other than
the lifestyle funds. For the six months ended April 30, 1999, the Series paid
VRSCO $21,607 pursuant to the Service Agreement.
At April 30, 1999 the American General Retirement Plan, a Defined Benefit
Pension Plan sponsored by American General Corporation, owned directly or
indirectly, over 5 percent of the outstanding shares of the AGSPC2 Money
Market Fund, High Yield Bond Fund, and Core Bond Fund.
At April 30, 1999 VALIC, as sponsor of the Series, owned over 5% of the
outstanding shares of each fund, except High Yield Bond Fund and Core Bond
Fund.
Note 4 -- Investment Activity
The information in the following table is presented on the basis of cost for
federal income tax purposes at April 30, 1999.
<TABLE>
<CAPTION>
Gross Gross
Identified Unrealized Unrealized Net
Cost Appreciation Depreciation Unrealized
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Stock Index Fund........ $ 9,111,509 $1,228,436 $ 138,746 $1,089,690
Mid Cap Index........... 5,820,513 832,384 360,672 471,712
Small Cap Index......... 5,410,734 923,870 464,661 459,209
International Growth
Fund.................... 5,653,844 518,165 287,056 231,109
Large Cap Growth Fund... 7,230,440 1,346,052 143,705 1,202,347
Mid Cap Growth Fund..... 6,297,053 776,394 505,315 271,079
Small Cap Growth Fund... 6,182,077 1,081,596 465,211 616,385
International Value
Fund.................... 5,922,500 1,123,491 85,770 1,037,721
Large Cap Value Fund.... 6,448,253 950,639 103,722 846,917
Mid Cap Value Fund...... 6,377,619 767,867 159,163 608,704
Small Cap Value Fund.... 5,307,051 321,549 366,146 (44,597)
Socially Responsible
Fund.................... 5,638,131 890,880 176,155 714,725
Balanced Fund........... 6,767,865 865,947 157,978 707,969
High Yield Bond Fund.... 62,352,357 2,892,360 501,069 2,391,291
Strategic Bond Fund..... 6,558,527 134,116 65,782 68,334
Domestic Bond Fund...... 6,565,755 27,849 139,209 (111,360)
Core Bond Fund.......... 388,680,092 348,837 3,701,027 (3,352,190)
Municipal Bond Fund..... 6,098,845 3,411 68,578 (65,167)
Money Market Fund....... 12,840,280 - - -
Municipal Money Market
Fund.................... 5,400,000 - - -
Growth Lifestyle Fund... 6,123,237 756,877 25,460 731,417
Moderate Lifestyle
Fund.................... 6,664,758 689,864 35,191 654,673
Conservative Lifestyle
Fund.................... 5,998,996 548,276 46,267 502,009
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
108
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONTINUED
During the six months ended April 30, 1999, the cost of purchases and proceeds
from sales of securities, excluding short term securities were:
<TABLE>
<CAPTION>
Proceeds from
Cost of Securities
Securities Sold or
Fund Purchased Matured
- --------------------------------------------------------------------------------
<S> <C> <C>
Stock Index Fund.................................... $ 6,133,356 $ 85,706
Mid Cap Index Fund.................................. 5,768,362 1,219,593
Small Cap Index Fund................................ 5,328,195 491,640
International Growth Fund........................... 7,314,013 2,245,284
Large Cap Growth Fund............................... 9,703,004 2,652,454
Mid Cap Growth Fund................................. 6,913,724 1,105,096
Small Cap Growth Fund............................... 8,906,531 3,441,527
International Value Fund............................ 6,194,000 778,981
Large Cap Value Fund................................ 8,221,264 1,929,123
Mid Cap Value Fund.................................. 11,562,379 5,928,677
Small Cap Value Fund................................ 5,694,040 876,475
Socially Responsible Fund........................... 6,133,911 752,168
Balanced Fund....................................... 8,821,885 2,619,345
High Yield Bond Fund................................ 83,436,186 23,132,212
Strategic Bond Fund................................. 10,608,725 5,533,654
Domestic Bond Fund.................................. 8,646,708 2,585,484
Core Bond Fund...................................... 1,154,389,845 839,989,606
Municipal Bond Fund................................. 5,438,506 -
Growth Lifestyle Fund............................... 6,139,261 17,866
Moderate Growth Lifestyle Fund...................... 6,684,867 20,071
Conservative Growth Lifestyle Fund.................. 6,001,912 3,075
</TABLE>
Note 5 -- Year 2000
VALIC serves as investment adviser to the Series. VALIC initiated its Year
2000 readiness plan in 1995. Since that time, VALIC management along with a
team of skilled information technology and business professionals have been
dedicated to achieving the objectives of the plan. This plan calls for the
renovation, upgrade and/or replacement of our mission critical computer
systems, whether developed internally or otherwise. It includes the five steps
that we believe are essential to Year 2000 readiness: inventory and discovery;
analysis; construction; testing; and implementation. As of April 30, 1999, we
have substantially completed all steps with respect to our critical systems.
VALIC's plan also includes an evaluation of the status of our key third party
relationships and their efforts in addressing Year 2000 issues. Throughout 1999
we will continue to work with critical third party dependencies and to develop
contingency plans for any identified risks or shortcomings. If significant
third parties fail to achieve Year 2000 readiness on a timely basis, then the
Year 2000 issue could have a material adverse impact on the operations of VALIC
and the Series. However, the third party contingency plans we develop are meant
to identify those risks and provide alternative actions should a third party
not achieve readiness. While we believe no one can predict with certainty
outcomes as to all the issues that may arise, VALIC is confident that its
comprehensive plan and resource commitment will allow it to meet its Year 2000
objectives.
Through April, 1999, VALIC has incurred and expensed $28 million (pretax)
related to Year 2000 readiness,including $1.3 million incurred during 1999.
VALIC currently anticipates that it will incur future costs of $.8 million for
additional internal staff, third party vendors, and other expenses to maintain
readiness and complete third party contingency plans.
- --------------------------------------------------------------------------------
<PAGE>
FINANCIAL HIGHLIGHTS (Unaudited) 109
Per share data is for a share of beneficial interest outstanding throughout
the period. Total return includes reinvestment of distributions on the
reinvestment date. Total returns and ratios for periods of less than one year
are not annualized.
CLASS A SHARES
<TABLE>
<CAPTION>
For the Six
Months Ended Stock Mid Cap Small Cap International Large Cap Mid Cap Small Cap International Large Cap
April 30, 1999 Index Fund Index Fund Index Fund Growth Fund Growth Fund Growth Fund Growth Fund Value Fund Value Fund
- -------------- ---------- ---------- ---------- ------------- ----------- ----------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value
at beginning of
year............. $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
-----------------------------------------------------------------------------------------------------------
Income from
investment
operations:
Net investment
income (loss)... 0.05 0.04 0.04 0.06 (0.03) (0.02) (0.05) 0.03 0.04
Net realized and
unrealized gain
(loss) on
securities...... 2.03 1.64 1.18 0.61 2.69 1.11 2.00 2.16 1.60
-----------------------------------------------------------------------------------------------------------
Total income
from investment
operations...... 2.08 1.68 1.22 0.67 2.66 1.09 1.95 2.19 1.64
-----------------------------------------------------------------------------------------------------------
Distributions:
Distributions
from net
investment
income.......... (0.04) (0.04) (0.05) - - - - - (0.04)
Distributions
from net
realized gain on
securities...... - - - - - - - - -
-----------------------------------------------------------------------------------------------------------
Total
distributions... (0.04) (0.04) (0.05) - - - - - (0.04)
-----------------------------------------------------------------------------------------------------------
Net asset value
at end of
period........... $12.04 $11.64 $11.17 $10.67 $12.66 $11.09 $11.95 $12.19 $11.60
-----------------------------------------------------------------------------------------------------------
TOTAL RETURN..... 21.25% 17.00% 12.61% 7.43% 27.15% 11.43% 20.20% 22.57% 16.91%
-----------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA
Ratio of expenses
to average net
assets........... 0.41% 0.42% 0.42% 0.70% 0.55% 0.52% 0.70% 0.65% 0.53%
Ratio of expenses
to average net
assets before
expense
reductions....... 0.81% 0.84% 0.85% 1.35% 1.06% 1.19% 1.26% 1.35% 1.09%
Ratio of net
investment income
to average net
assets........... 0.41% 0.39% 0.42% 0.57% (0.22)% (0.17)% (0.43)% 0.23% 0.40%
Portfolio
turnover rate.... 1% 23% 9% 45% 40% 20% 60% 14% 33%
Number of shares
outstanding at
end of period
(000's).......... 280 255 255 133 167 142 140 134 156
Net assets at the
end of period
(000's).......... $3,371 $2,971 $2,850 $1,418 $2,113 $1,570 $1,672 $1,630 $1,811
<CAPTION>
For the Six Socially
Months Ended Mid Cap Small Cap Responsible
April 30, 1999 Value Fund Value Fund Fund
- -------------- ---------- ---------- -----------
<S> <C> <C> <C>
PER SHARE DATA
Net asset value
at beginning of
year............. $10.00 $10.00 $10.00
---------------------------------
Income from
investment
operations:
Net investment
income (loss)... 0.04 0.05 0.05
Net realized and
unrealized gain
(loss) on
securities...... 2.36 (0.37) 1.94
---------------------------------
Total income
from investment
operations...... 2.40 (0.32) 1.99
---------------------------------
Distributions:
Distributions
from net
investment
income.......... (0.03) (0.05) (0.05)
Distributions
from net
realized gain on
securities...... - - -
---------------------------------
Total
distributions... (0.03) (0.05) (0.05)
---------------------------------
Net asset value
at end of
period........... $12.37 $9.63 $11.94
---------------------------------
TOTAL RETURN..... 24.73% (2.60)% 20.34%
---------------------------------
RATIOS/SUPPLEMENTAL
DATA
Ratio of expenses
to average net
assets........... 0.65% 0.62% 0.40%
Ratio of expenses
to average net
assets before
expense
reductions....... 1.23% 1.30% 0.99%
Ratio of net
investment income
to average net
assets........... 0.34% 0.54% 0.48%
Portfolio
turnover rate.... 104% 19% 14%
Number of shares
outstanding at
end of period
(000's).......... 134 134 130
Net assets at the
end of period
(000's).......... $1,654 $1,292 $1,556
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
110 FINANCIAL HIGHLIGHTS (Unaudited) CONTINUED
Per share data is for a share of beneficial interest outstanding throughout
the period. Total return includes reinvestment of distributions on the
reinvestment date. Total returns and ratios for periods of less than one year
are not annualized.
CLASS A SHARES CONTINUED
<TABLE>
<CAPTION>
For the Six Municipal Growth
Months Ended Balanced High Yield Strategic Domestic Core Municipal Money Market Money Market Lifestyle
April 30, 1999 Fund Bond Fund Bond Fund Bond Fund Bond Fund Bond Fund Fund Fund Fund
- -------------- -------- ---------- --------- --------- --------- --------- ------------ ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value
at beginning of
year............. $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $1.00 $1.00 $10.00
-----------------------------------------------------------------------------------------------
Income from
investment
operations:
Net investment
income (loss)... 0.10 0.50 0.34 0.24 0.26 0.22 0.03 0.01 0.03
Net realized and
unrealized gain
(loss) on
securities...... 1.67 0.34 0.06 (0.18) (0.19) (0.12) - - 1.36
-----------------------------------------------------------------------------------------------
Total income
from investment
operations...... 1.77 0.84 0.40 0.06 0.07 0.10 0.03 0.01 1.39
-----------------------------------------------------------------------------------------------
Distributions:
Distributions
from net
investment
income.......... (0.09) (0.50) (0.34) (0.24) (0.26) (0.23) (0.03) (0.01) (0.03)
Distributions
from net
realized gain on
securities...... - - - - - - - - -
-----------------------------------------------------------------------------------------------
Total
distributions... (0.09) (0.50) (0.34) (0.24) (0.26) (0.23) (0.03) (0.01) (0.03)
-----------------------------------------------------------------------------------------------
Net asset value
at end of
period........... $11.68 $10.34 $10.06 $9.82 $9.81 $9.87 $1.00 $1.00 $11.36
-----------------------------------------------------------------------------------------------
TOTAL RETURN..... 18.27% 8.16% 4.39% 1.16% 1.01% 0.91% 2.55% 1.51% 13.92%
-----------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA
Ratio of expenses
to average net
assets........... 0.54% 0.63% 0.58% 0.52% 0.53% 0.53% 0.40% 0.53% 0.05%
Ratio of expenses
to average net
assets before
expense
reductions....... 1.24% 4.88% 1.16% 1.17% 4.65% 0.97% 0.89% 0.96% 0.05%
Ratio of net
investment income
to average net
assets........... 0.89% 2.59% 3.07% 2.55% 1.99% 1.69% 2.18% 1.00% 0.29%
Portfolio
turnover rate.... 45% 39% 32% 49% 257% 0% N/A N/A 0%
Number of shares
outstanding at
end of period
(000's).......... 142 2 129 161 5 276 2,798 2,813 136
Net assets at the
end of period
(000's).......... $1,663 $20 $1,300 $1,583 $53 $2,723 $2,798 $2,813 $1,546
<CAPTION>
For the Six Moderate Conservative
Months Ended Growth Growth
April 30, 1999 Lifestyle Fund Lifestyle Fund
- -------------- -------------- --------------
<S> <C> <C>
PER SHARE DATA
Net asset value
at beginning of
year............. $10.00 $10.00
-----------------------------
Income from
investment
operations:
Net investment
income (loss)... 0.07 0.10
Net realized and
unrealized gain
(loss) on
securities...... 1.17 0.95
-----------------------------
Total income
from investment
operations...... 1.24 1.05
-----------------------------
Distributions:
Distributions
from net
investment
income.......... (0.06) (0.09)
Distributions
from net
realized gain on
securities...... - -
-----------------------------
Total
distributions... (0.06) (0.09)
-----------------------------
Net asset value
at end of
period........... $11.18 $10.96
-----------------------------
TOTAL RETURN..... 12.47% 10.60%
-----------------------------
RATIOS/SUPPLEMENTAL
DATA
Ratio of expenses
to average net
assets........... 0.05% 0.05%
Ratio of expenses
to average net
assets before
expense
reductions....... 0.05% 0.05%
Ratio of net
investment income
to average net
assets........... 0.63% 0.96%
Portfolio
turnover rate.... 0% 0%
Number of shares
outstanding at
end of period
(000's).......... 142 144
Net assets at the
end of period
(000's).......... $1,584 $1,583
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
FINANCIAL HIGHLIGHTS (Unaudited) CONTINUED 111
Per share data is for a share of beneficial interest outstanding throughout
the period. Total return includes reinvestment of distributions on the
reinvestment date. Total returns and ratios for periods of less than one year
are not annualized.
CLASS B SHARES
<TABLE>
<CAPTION>
For the Six
Months Ended Stock Mid Cap Small Cap International Large Cap Mid Cap Small Cap International Large Cap
April 30, 1999 Index Fund Index Fund Index Fund Growth Fund Growth Fund Growth Fund Growth Fund Value Fund Value Fund
- -------------- ---------- ---------- ---------- ------------- ----------- ----------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value
at beginning of
year............. $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
---------------------------------------------------------------------------------------------------------
Income from
investment
operations:
Net investment
income (loss)... - - 0.01 0.02 (0.08) (0.07) (0.10) (0.02) (0.01)
Net realized and
unrealized gain
(loss) on
securities...... 2.00 1.64 1.15 0.59 2.69 1.09 1.98 2.14 1.56
---------------------------------------------------------------------------------------------------------
Total income
from investment
operations...... 2.00 1.64 1.16 0.61 2.61 1.02 1.88 2.12 1.55
---------------------------------------------------------------------------------------------------------
Distributions:
Distributions
from net
investment
income.......... - - - - - - - - -
Distributions
from net
realized gain on
securities...... - - - - - - - - -
---------------------------------------------------------------------------------------------------------
Total
distributions... - - - - - - - - -
---------------------------------------------------------------------------------------------------------
Net asset value
at end of
period........... $12.00 $11.64 $11.16 $10.61 $12.61 $11.02 $11.88 $12.12 $11.55
---------------------------------------------------------------------------------------------------------
TOTAL RETURN..... 20.79% 17.19% 12.42% 7.28% 27.03% 11.10% 19.88% 22.22% 16.45%
---------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA
Ratio of expenses
to average net
assets........... 0.79% 0.79% 0.79% 1.08% 0.93% 0.90% 1.08% 1.02% 0.90%
Ratio of expenses
to average net
assets before
expense
reductions....... 1.11% 1.20% 1.21% 1.69% 1.37% 1.50% 1.59% 1.69% 1.40%
Ratio of net
investment income
to average net
assets........... (0.02)% (0.03)% 0.05% 0.16% (0.73)% (0.73)% (0.96)% (0.14)% (0.14)%
Portfolio
turnover rate.... 1% 23% 9% 45% 40% 20% 60% 14% 33%
Number of shares
outstanding at
end of period
(000's).......... 573 281 269 159 264 206 185 160 218
Net assets at the
end of period
(000's).......... $6,880 $3,274 $2,999 $1,692 $3,332 $2,271 $2,203 $1,943 $2,518
<CAPTION>
For the Six Socially
Months Ended Mid Cap Small Cap Responsible
April 30, 1999 Value Fund Value Fund Fund
- -------------- ---------- ---------- -----------
<S> <C> <C> <C>
PER SHARE DATA
Net asset value
at beginning of
year............. $10.00 $10.00 $10.00
---------------------------------
Income from
investment
operations:
Net investment
income (loss)... (0.02) 0.01 -
Net realized and
unrealized gain
(loss) on
securities...... 2.36 (0.38) 1.94
---------------------------------
Total income
from investment
operations...... 2.34 (0.37) 1.94
---------------------------------
Distributions:
Distributions
from net
investment
income.......... (0.02) (0.01) (0.02)
Distributions
from net
realized gain on
securities...... - -
---------------------------------
Total
distributions... (0.02) (0.01) (0.02)
---------------------------------
Net asset value
at end of
period........... $12.32 $9.62 $11.92
---------------------------------
TOTAL RETURN..... 24.44% (2.71)% 20.18%
---------------------------------
RATIOS/SUPPLEMENTAL
DATA
Ratio of expenses
to average net
assets........... 1.02% 0.99% 0.78%
Ratio of expenses
to average net
assets before
expense
reductions....... 1.57% 1.64% 1.33%
Ratio of net
investment income
to average net
assets........... (0.22)% 0.11% 0.02%
Portfolio
turnover rate.... 104% 19% 14%
Number of shares
outstanding at
end of period
(000's).......... 174 161 153
Net assets at the
end of period
(000's).......... $2,147 $1,549 $1,82156
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
112 FINANCIAL HIGHLIGHTS (Unaudited) CONTINUED
Per share data is for a share of beneficial interest outstanding throughout
the period. Total return includes reinvestment of distributions on the
reinvestment date. Total returns and ratios for periods of less than one year
are not annualized.
CLASS B SHARES CONTINUED
<TABLE>
<CAPTION>
For the Six Municipal Growth
Months Ended Balanced High Yield Strategic Domestic Core Municipal Money Market Money Market Lifestyle
April 30, 1999 Fund Bond Fund Bond Fund Bond Fund Bond Fund Bond Fund Fund Fund Fund
- -------------- -------- ---------- --------- --------- --------- --------- ------------ ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value
at beginning of
year............. $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $1.00 $1.00 $10.00
-----------------------------------------------------------------------------------------------
Income from
investment
operations:
Net investment
income (loss)... 0.02 0.46 0.29 0.20 0.20 0.15 0.02 0.01 0.03
Net realized and
unrealized gain
(loss) on
securities...... 1.67 0.32 0.06 (0.18) (0.19) (0.12) -- - 1.35
-----------------------------------------------------------------------------------------------
Total income
from investment
operations...... 1.69 0.78 0.35 0.02 0.01 0.03 0.02 0.01 1.38
-----------------------------------------------------------------------------------------------
Distributions:
Distributions
from net
investment
income.......... (0.02) (0.46) (0.29) (0.20) (0.20) (0.16) (0.02) (0.01) (0.02)
Distributions
from net
realized gain on
securities...... - - - - - - - - -
-----------------------------------------------------------------------------------------------
Total
distributions... (0.02) (0.46) (0.29) (0.20) (0.20) (0.16) (0.02) (0.01) (0.02)
-----------------------------------------------------------------------------------------------
Net asset value
at end of
period........... $11.67 $10.32 $10.06 $9.82 $9.81 $9.87 $1.00 $1.00 $11.36
-----------------------------------------------------------------------------------------------
TOTAL RETURN..... 17.86% 7.99% 4.33% 1.21% 1.06% 0.87% 2.63% 1.50% 13.89%
-----------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA
Ratio of expenses
to average net
assets........... 0.91% 1.00% 0.95% 0.89% 0.90% 0.90% 0.78% 0.90% 0.05%
Ratio of expenses
to average net
assets before
expense
reductions....... 1.55% 4.36% 1.59% 1.45% 5.07% 1.30% 1.32% 1.33% 0.05%
Ratio of net
investment income
to average net
assets........... 0.23% 2.64% 2.65% 2.28% 1.66% 1.21% 1.96% 0.62% 0.29%
Portfolio
turnover rate.... 45% 39% 32% 49% 257% 0% N/A N/A 0%
Number of shares
outstanding at
end of period
(000's).......... 248 19 148 252 12 349 4,293 2,604 222
Net assets at the
end of period
(000's).......... $2,899 $196 $1,491 $2,472 $113 $3,441 $4,295 $2,604 $2,525
<CAPTION>
For the Six Moderate Conservative
Months Ended Growth Growth
April 30, 1999 Lifestyle Fund Lifestyle Fund
- -------------- -------------- --------------
<S> <C> <C>
PER SHARE DATA
Net asset value
at beginning of
year............. $10.00 $10.00
-----------------------------
Income from
investment
operations:
Net investment
income (loss)... 0.06 0.10
Net realized and
unrealized gain
(loss) on
securities...... 1.19 0.95
-----------------------------
Total income
from investment
operations...... 1.25 1.05
-----------------------------
Distributions:
Distributions
from net
investment
income.......... (0.05) (0.08)
Distributions
from net
realized gain on
securities...... - -
-----------------------------
Total
distributions... (0.05) (0.08)
-----------------------------
Net asset value
at end of
period........... $11.20 10.97
-----------------------------
TOTAL RETURN..... 12.59% 10.61%
-----------------------------
RATIOS/SUPPLEMENTAL
DATA
Ratio of expenses
to average net
assets........... 0.05% 0.05%
Ratio of expenses
to average net
assets before
expense
reductions....... 0.05% 0.05%
Ratio of net
investment income
to average net
assets........... 0.64% 0.96%
Portfolio
turnover rate.... 0% 0%
Number of shares
outstanding at
end of period
(000's).......... 262 197
Net assets at the
end of period
(000's).......... $2,937 $2,158
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
113
FINANCIAL HIGHLIGHTS (Unaudited) CONTINUED
Per share data is for a share of beneficial interest outstanding throughout
the period. Total return includes reinvestment of distributions on the
reinvestment date. Total returns and ratios for periods of less than one year
are not annualized.
CLASS I SHARES
<TABLE>
<CAPTION>
For the Six Socially
Months Ended International Large Cap Mid Cap Small Cap International Large Cap Mid Cap Small Cap Responsible
April 30, 1999 Growth Fund Growth Fund Growth Fund Growth Fund Value Fund Value Fund Value Fund Value Fund Fund
- -------------- ------------- ----------- ----------- ----------- ------------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value
at beginning of
year............ $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
------------------------------------------------------------------------------------------------------------
Income from
investment
operations:
Net investment
income (loss).. 0.06 (0.01) (0.01) (0.04) 0.03 0.06 0.05 0.06 0.06
Net realized
and unrealized
gain (loss) on
securities..... 0.61 2.69 1.10 2.01 2.16 1.58 2.36 (0.37) 1.94
------------------------------------------------------------------------------------------------------------
Total income
from investment
operations..... 0.67 2.68 1.09 1.97 2.19 1.64 2.41 (0.31) 2.00
------------------------------------------------------------------------------------------------------------
Distributions:
Distributions
from net
investment
income......... - - - - - (0.05) (0.04) (0.06) (0.06)
Distributions
from net
realized gain
on securities.. - - - - - - - - -
------------------------------------------------------------------------------------------------------------
Total
distributions.. - - - - - (0.05) (0.04) (0.06) (0.06)
------------------------------------------------------------------------------------------------------------
Net asset value
at end of
period.......... $10.67 $12.68 $11.09 $11.97 $12.19 $11.59 $12.37 $9.63 $11.94
------------------------------------------------------------------------------------------------------------
TOTAL RETURN.... 7.49% 27.31% 11.39% 20.34% 22.53% 16.92% 24.78% (2.59)% 20.36%
------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA
Ratio of
expenses to
average net
assets.......... 0.64% 0.49% 0.46% 0.64% 0.59% 0.47% 0.59% 0.56% 0.34%
Ratio of
expenses to
average net
assets before
expense
reductions...... 1.37% 1.12% 1.22% 1.29% 1.37% 1.14% 1.26% 1.32% 1.10%
Ratio of net
investment
income to
average net
assets.......... 0.64% (0.07)% (0.09)% (0.35)% 0.27% 0.53% 0.43% 0.61% 0.56%
Portfolio
turnover rate... 45% 40% 20% 60% 14% 33% 104% 19% 14%
Number of shares
outstanding at
end of period
(000's)......... 125 125 125 126 127 126 126 126 126
Net assets at
end of period
(000's)......... $1,336 $1,585 $1,387 $1,496 $1,542 $1,458 $1,553 $1,211 $1,500
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
114
FINANCIAL HIGHLIGHTS (Unaudited) CONTINUED
Per share data is for a share of beneficial interest outstanding throughout
the period. Total return includes reinvestment of distributions on the
reinvestment date. Total returns and ratios for periods of less than one year
are not annualized.
CLASS I SHARES CONTINUED
<TABLE>
<CAPTION>
For the Six Growth Moderate Conservative
Months Ended Balanced High Yield Strategic Domestic Core Money Market Lifestyle Growth Growth
April 30, 1999 Fund Bond Fund Bond Fund Bond Fund Bond Fund Fund Fund Lifestyle Fund Lifestyle Fund
- -------------- -------- ---------- --------- --------- --------- ------------ --------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value
at beginning of
year............ $10.00 $10.00 $10.00 $10.00 $10.00 $1.00 $10.00 $10.00 $10.00
-------------------------------------------------------------------------------------------------------
Income from
investment
operations:
Net investment
income (loss).. 0.11 0.43 0.34 0.24 0.24 0.03 0.03 0.08 0.10
Net realized
and unrealized
gain (loss) on
securities..... 1.67 0.34 0.06 (0.18) (0.19) - 1.36 1.17 0.96
-------------------------------------------------------------------------------------------------------
Total income
from investment
operations..... 1.78 0.77 0.40 0.06 0.05 0.03 1.39 1.25 1.06
-------------------------------------------------------------------------------------------------------
Distributions:
Distributions
from net
investment
income......... (0.10) (0.43) (0.34) (0.24) (0.24) (0.03) (0.03) (0.07) (0.10)
Distributions
from net
realized gain
on securities.. - - - - - - - - -
-------------------------------------------------------------------------------------------------------
Total
distributions.. (0.10) (0.43) (0.34) (0.24) (0.24) (0.03) (0.03) (0.07) (0.10)
-------------------------------------------------------------------------------------------------------
Net asset value
at end of
period.......... $11.68 $10.34 $10.06 $9.82 $9.81 $1.00 $11.36 $11.18 $10.96
-------------------------------------------------------------------------------------------------------
TOTAL RETURN.... 18.35% 8.33% 4.48% 1.14% 0.94% 2.53% 13.93% 12.59% 10.64%
-------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA
Ratio of
expenses to
average net
assets.......... 0.48% 0.57% 0.52% 0.46% 0.47% 0.34% 0.05% 0.05% 0.05%
Ratio of
expenses to
average net
assets before
expense
reductions...... 1.28% 5.04% 1.25% 1.23% 5.01% 1.05% 0.05% 0.05% 0.05%
Ratio of net
investment
income to
average net
assets.......... 0.99% 2.62% 3.13% 2.57% 1.98% 2.21% 0.29% 0.72% 0.97%
Portfolio
turnover rate... 45% 39% 32% 49% 257% N/A 0% 0% 0%
Number of shares
outstanding at
end of period
(000's)......... 126 1 129 130 1 1,278 126 126 126
Net assets at
the end of
period (000's).. $1,473 $15 $1,300 $1,272 $13 $1,278 $1,426 $1,410 $1,382
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
115
FINANCIAL HIGHLIGHTS (Unaudited) CONTINUED
Per share data is for a share of beneficial interest outstanding throughout
the period. Total return includes reinvestment of distributions on the
reinvestment date. Total returns and ratios for periods of less than one year
are not annualized.
CLASS II SHARES
<TABLE>
<CAPTION>
For the Six Socially
Months Ended International Large Cap Mid Cap Small Cap International Large Cap Mid Cap Small Cap Responsible
April 30, 1999 Growth Fund Growth Fund Growth Fund Growth Fund Value Fund Value Fund Value Fund Value Fund Fund
- -------------- ------------- ----------- ----------- ----------- ------------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value
at beginning of
year............ $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
------------------------------------------------------------------------------------------------------------
Income from
investment
operations:
Net investment
income (loss).. 0.07 0.01 - (0.02) 0.04 0.07 0.06 0.07 0.08
Net realized
and unrealized
gain (loss) on
securities..... 0.63 2.69 1.11 2.00 2.17 1.59 2.37 (0.37) 1.93
------------------------------------------------------------------------------------------------------------
Total income
from investment
operations..... 0.70 2.70 1.11 1.98 2.21 1.66 2.43 (0.30) 2.01
------------------------------------------------------------------------------------------------------------
Distributions:
Distributions
from net
investment
income......... (0.01) (0.01) (0.01) - (0.01) (0.07) (0.06) (0.07) (0.07)
Distributions
from net
realized gain
on securities.. - - - - - - - - -
------------------------------------------------------------------------------------------------------------
Total
distributions.. (0.01) (0.01) (0.01) - (0.01) (0.07) (0.06) (0.07) (0.07)
------------------------------------------------------------------------------------------------------------
Net asset value
at end of
period.......... $10.69 $12.69 $11.10 $11.98 $12.20 $11.59 $12.37 $9.63 $11.94
------------------------------------------------------------------------------------------------------------
TOTAL RETURN.... 7.52% 27.35% 11.42% 20.32% 22.55% 16.92% 24.80% (2.61)% 20.40%
------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA
Ratio of
expenses to
average net
assets.......... 0.52% 0.37% 0.34% 0.52% 0.46% 0.34% 0.46% 0.43% 0.22%
Ratio of
expenses to
average net
assets before
expense
reductions...... 1.25% 1.10% 1.09% 1.16% 1.25% 1.02% 1.13% 1.20% 0.87%
Ratio of net
investment
income to
average net
assets.......... 0.70% 0.07% 0.04% (0.22)% 0.40% 0.66% 0.56% 0.72% 0.69%
Portfolio
turnover rate... 45% 40% 20% 60% 14% 33% 104% 19% 14%
Number of shares
outstanding at
end of period
(000's)......... 125 125 125 125 125 126 126 126 126
Net assets at
end of period
(000's)......... $1,336 $1,587 $1,389 $1,498 $1,526 $1,458 $1,554 $1,211 $1,502
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
116 FINANCIAL HIGHLIGHTS (Unaudited) CONTINUED
Per share data is for a share of beneficial interest outstanding throughout
the period. Total return includes reinvestment of distributions on the
reinvestment date. Total returns and ratios for periods of less than one year
are not annualized.
CLASS II SHARES CONTINUED
<TABLE>
<CAPTION>
For the Six Growth Moderate Conservative
Months Ended Balanced High Yield Strategic Domestic Core Money Market Lifestyle Growth Growth
April 30, 1999 Fund Bond Fund Bond Fund Bond Fund Bond Fund Fund Fund Lifestyle Fund Lifestyle Fund
- -------------- -------- ---------- --------- --------- --------- ------------ --------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value
at beginning of
year............ $10.00 $10.00 $10.00 $10.00 $10.00 $1.00 $10.00 $10.00 $10.00
-------------------------------------------------------------------------------------------------------
Income from
investment
operations:
Net investment
income (loss).. 0.12 0.42 0.35 0.25 0.24 0.03 0.03 0.06 0.10
Net realized
and unrealized
gain (loss) on
securities..... 1.68 0.37 0.06 (0.18) (0.17) - 1.36 1.17 0.96
-------------------------------------------------------------------------------------------------------
Total income
from investment
operations..... 1.80 0.79 0.41 0.07 0.07 0.03 1.39 1.23 1.06
-------------------------------------------------------------------------------------------------------
Distributions:
Distributions
from net
investment
income......... (0.12) (0.42) (0.35) (0.25) (0.25) (0.03) (0.03) (0.05) (0.10)
Distributions
from net
realized gain
on securities.. - - - - - - - - -
-------------------------------------------------------------------------------------------------------
Total
distributions.. (0.12) (0.42) (0.35) (0.25) (0.25) (0.03) (0.03) (0.05) (0.10)
-------------------------------------------------------------------------------------------------------
Net asset value
at end of
period.......... $11.68 $10.37 $10.06 $9.82 $9.82 $1.00 $11.36 $11.18 $10.96
-------------------------------------------------------------------------------------------------------
TOTAL RETURN.... 18.22% 8.45% 4.39% 1.11% 1.03% 2.51% 13.93% 12.28% 10.63%
-------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA
Ratio of
expenses to
average net
assets.......... 0.35% 0.44% 0.39% 0.33% 0.34% 0.22% 0.05% 0.05% 0.05%
Ratio of
expenses to
average net
assets before
expense
reductions...... 1.16% 0.61% 1.13% 1.10% 0.49% 0.52% 0.05% 0.05% 0.05%
Ratio of net
investment
income to
average net
assets.......... 1.13% 4.38% 3.26% 2.67% 2.61% 2.30% 0.29% 0.55% 0.97%
Portfolio
turnover rate... 45% 39% 32% 49% 257% N/A 0% 0% 0%
Number of shares
outstanding at
end of period
(000's)......... 126 6,342 129 128 35,031 4,559 125 126 126
Net assets at
the end of
period (000's).. $1,475 $65,795 $1,300 $1,261 $343,945 $4,559 $1,423 $1,404 $1,382
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
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AMERICAN GENERAL SERIES PORTFOLIO COMPANY 2
BOARD OF TRUSTEES Jacobs Asset Management
Judith L. Craven 200 East Broward Boulevard
Timothy J. Ebner Suite 1920
Gustavo E. Gonzales, Jr. Fort Lauderdale, Florida 33301
John A. Graf
Norman Hackerman Neuberger Berman Management Inc.
John W. Lancaster 605 Third Avenue, Second Floor
Ben H. Love New York, New York 10158-0180
John E. Maupin, Jr.
F. Robert Paulsen State Street Global Advisors
R. Miller Upton 2 International Place
Thomas L. West, Jr. Boston, Massachusetts 02110
DISTRIBUTOR INDEPENDENT AUDITORS
VALIC Investment Services Ernst & Young LLP
Company (VISCO) 1221 McKinney
2929 Allen Parkway Houston, Texas 77010
Houston, Texas 77019
SHAREHOLDER SERVICE AGENT
CUSTODIAN National Financial Data Services, Inc.
State Street Bank and Trust Company 330 West 9th Street
225 Franklin Street Kansas City, Missouri 64105
Boston, Massachusetts 02110
INVESTMENT ADVISER
The Variable Annuity Life OFFICERS
Insurance Company (VALIC) Thomas L. West, Jr.,
2929 Allen Parkway Chairman
Houston, Texas 77019 John A. Graf,
President
INVESTMENT SUB-ADVISERS Joe C. Osborne,
American General Investment Executive Vice President
Management, L.P. John E. Arant,
2929 Allen Parkway Executive Vice President
Houston, Texas 77019 Peter V. Tuters,
Senior Investment Officer
Bankers Trust Company Brent C. Nelson,
130 Liberty Street Vice President
New York, New York 10006 Teresa S. Moro,
Vice President and Investment Officer
Brown Capital Management, Inc. Maruti D. More
809 Cathedral Vice President - Investments
Baltimore, Maryland 21201 William Trimbur, Jr.,
Vice President and Investment Officer
Capital Guardian Trust Company Cynthia A. Toles,
333 South Hope Street Vice President and Secretary
Los Angeles, California 90071 Nori L. Gabert,
Vice President and Assistant Secretary
Fiduciary Management Associates, Inc. Cynthia A. Gibbons
55 West Monroe Street Suite 2550 Assistant Vice President
Chicago, Illinois 60603 Gregory R. Seward,
Treasurer
Goldman Sachs Asset Management Jaime M. Sepulveda
One New York Plaza Assistant Treasurer
New York, New York 10004 Earl E. Allen, Jr.,
Assistant Treasurer
J. P. Morgan Investment Management Inc. Kathyrn A. Pearce,
522 Fifth Avenue Controller
New York, New York 10036 Donna L. Hathaway
Assistant Controller
Heriberto R. Valdez,
Assistant Controller
This report is for the information of the shareholders of American General
Series Portfolio Company 2. It is authorized for distribution to other persons
only when preceded or accompanied by an effective prospectus which contains
information on how to purchase shares and other pertinent information.
If you would like further information about this material or products issued
by American General, please contact your account representative.
"Standard & Poor's(R)", "Standard & Poor's Mid Cap 400 Index" and "S&P 500(R)"
are trademarks of Standard & Poor's Corporation. The Stock Index Fund and Mid
Cap Index Fund are not sponsored, endorsed, sold or promoted by S&P and S&P
makes no representation regarding the advisability of investing in the funds.
The Russell 2000(R) Index is a trademark/service mark of the Frank Russell
Company. Russell(TM) is a trademark of the Frank Russell Company.
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AMERICAN GENERAL SERIES PORTFOLIO COMPANY 2 Bulk Rate
P.O. Box 3206 U.S. Postage
Houston, Texas 77253-3206 PAID
Permit No. 6748
Houston, Texas
American
General
Financial Group
