<PAGE>
Semi-Annual Report
February 28, 1999
American
General
Series
Portfolio
Company 3
----------------
<PAGE>
AMERICAN GENERAL SERIES PORTFOLIO COMPANY 3 - SEMI-ANNUAL REPORT FEBRUARY 28,
1999
TABLE OF CONTENTS
<TABLE>
<S> <C>
Chairman's Letter........................................................... 1
International Growth Fund................................................... 4
Large Cap Growth Fund....................................................... 7
Mid Cap Growth Fund......................................................... 11
Small Cap Growth Fund....................................................... 13
International Value Fund.................................................... 17
Large Cap Value Fund........................................................ 20
Mid Cap Value Fund.......................................................... 23
Small Cap Value Fund........................................................ 26
Socially Responsible Fund................................................... 36
Balanced Fund............................................................... 42
High Yield Bond Fund........................................................ 46
Strategic Bond Fund......................................................... 49
Domestic Bond Fund.......................................................... 52
Core Bond Fund.............................................................. 54
Money Market Fund........................................................... 57
Growth Lifestyle Fund....................................................... 59
Moderate Growth Lifestyle Fund.............................................. 61
Conservative Growth Lifestyle Fund.......................................... 63
Notes to Financial Statements............................................... 65
Financial Highlights........................................................ 69
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
AGSPC3 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 3's (AGSPC3) February 28, 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 3's 18 funds for the six-month period
ending February 28, 1999.
Through your variable annuity contract, you are permitted to invest in one or
more of the funds described in this report. Please refer to the chart on page 3
to determine which funds are available under your contract.
MARKET CONDITIONS
Most U.S. securities markets produced positive returns for the six months ended
February 28, 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 30.27%. 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 37.89%. Smaller
stocks and "value" stocks did not perform as well; for example, the Russell
2000 Value index only returned 4.93% for this period. In the bond markets, the
high-yield sector performed best, indicated by Salomon Brothers High Yield
Index return of 5.45%. Lehman Brothers Aggregate bond index returned a modest
1.60%.
Several factors influenced equity and fixed income markets:
. 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.
. 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.
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. Morgan Stanley's EAFE equity index reflected this strength with a
13.84% return. Global fixed income markets were not as strong, as shown by
Salomon Brothers. Non-U.S. Government bond index return of 6.48% in dollar
terms.
FUND RETURNS
Lifestyle and Balanced Funds
The three Lifestyle Funds - Conservative, Moderate and Growth - returned
13.01%, 15.45% and 16.88%, respectively. This reflected the progressively
increasing allocation to U.S. equities as one moves from Conservative to
Growth. The Balanced Fund returned 20.85%, outperforming its blended
benchmark's return of 17.99%.
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, although
interestingly, the International Value Fund outperformed its Growth counterpart
(19.81% to 2.79%). Domestically, the Large Cap Value fund trailed its Growth
counterpart, 22.45% to 26.82%, while both trailed the S&P 500 return of 30.27%.
The mid cap sector provided the only exception to the Growth vs. Value trend,
with the Value fund narrowly outperforming its Growth counterpart, 27.52% to
26.01%. In the small cap sector, Growth strongly outperformed Value, 30.84% to
3.95%. In a specialized category restricted from investing in tobacco, defense-
oriented companies and significant polluters, the Socially Responsible Fund
turned in a strong performance of 29.38%, only marginally below the S&P 500's
return of 30.27%.
Bond Funds
In the fixed income markets, high-yield offered the best returns. The High
Yield Bond Fund's 7.68% return positively outperformed its Salomon Brothers
benchmark by 2.23. The broader bond market trailed high yield. The Strategic
Bond Fund, with a broad mandate across many types of fixed income securities,
returned 5.96% while the Core Bond Fund returned 2.84%. The Core Bond Fund's
modest return exceeded the Lehman Brothers Aggregate benchmark by 1.24 and
reflected a focus on higher quality regions of the bond market, which did not
perform as well during this period.
FUTURE OUTLOOK
The U.S. stock market has rebounded strongly 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. Additionally,
war in the Balkans, rising oil prices and continued tight labor conditions in
the U.S. add to uncertainties. On the positive side, a 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 Federal Reserve, 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 3
[Graph Appears Here]
(1)Represents fund performance before subtracting expenses. See page two for
applicable fund expenses and fund level returns after expenses.
- --------------------------------------------------------------------------------
<PAGE>
2 AGSPC3 CHAIRMAN'S LETTER CONTINUED
FUND RETURNS AND TRACKING DIFFERENCES
For six months ended February 28, 1999
<TABLE>
<CAPTION>
(3) (4)
Fund Total
Performance Index
Before Return
(1) (2) Subtracting Including Tracking
AGSPC 3 Fund/Relevant Fund Fund Expenses Reinvested Differences
Market Index Return(a) Expenses (1) + (2) Dividends (3) - (4)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
International Growth
Fund / Salomon Brothers
Primary Market Index.... 2.20% 0.59% 2.79% 23.05% (20.26)
Large Cap Growth
Fund / Russell 1000
Growth Index............ 26.28 0.44 26.82 37.89 (11.07)
Mid Cap Growth
Fund / Russell MidCap
Growth Index............ 25.60 0.41 26.01 33.27 (7.26)
Small Cap Growth
Fund / Russell 2000
Growth Index............ 30.25 0.59 30.84 29.28 1.56
International Value
Fund / Salomon Brothers
Primary Market Index.... 19.27 0.54 19.81 23.05 (3.24)
Large Cap Value
Fund / Russell 1000
Value Index............. 22.03 0.42 22.45 22.53 (0.08)
Mid Cap Value
Fund / Russell MidCap
Value Index............. 26.98 0.54 27.52 14.81 12.71
Small Cap Value
Fund / Russell 2000
Value Index............. 3.44 0.51 3.95 4.93 (0.98)
Socially Responsible
Fund / S&P 500 Index.... 29.09 0.29 29.38 30.27 (0.89)
Balanced Fund / Balanced
Blend(b)................ 20.42 0.43 20.85 17.99 2.86
High Yield Bond
Fund / Salomon Brothers
High Yield Market....... 7.16 0.52 7.68 5.45 2.23
Strategic Bond
Fund / Lehman Brothers
Aggregate............... 5.49 0.47 5.96 1.60 4.36
Domestic Bond
Fund / Lehman Brothers
Aggregate............... 2.70 0.41 3.11 1.60 1.51
Core Bond Fund / Lehman
Brothers Aggregate...... 2.42 0.42 2.84 1.60 1.24
Money Market Fund / 30
Day Certificate of
Deposit Primary Offering
Rate by New York City
Banks (NYC 30 Day CD
Rate)................... 2.34 0.29 2.63 2.19 0.44
Growth Lifestyle Fund... 16.83 0.05 16.88 N/A N/A
Moderate Growth
Lifestyle Fund.......... 15.40 0.05 15.45 N/A N/A
Conservative Growth
Lifestyle Fund.......... 12.96 0.05 13.01 N/A N/A
</TABLE>
(a) Fund Level Returns are net of investment management fees and other fund
expenses, but do not reflect charges specified in annuity contracts for
mortality and expense guarantees, administrative fees, or surrender
charges.
(b) Balanced Blend consists of 40% Lehman Brothers Government and Corporate
and 60% S&P 500 Index.
SUMMARY OF NET ASSET VALUES PER SHARE
AND PER SHARE DISTRIBUTIONS
<TABLE>
<CAPTION>
Distributions
from Net
Investment
Income and
Net Realized
Gains on
Net Asset Values Securities
----------------------- -------------
Unaudited Audited
February 28, August 31, 8/31/98 to
Fund 1999 1998 2/28/99
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
International Growth Fund................ $10.22 $10.00 $ -
Large Cap Growth Fund.................... 12.63 10.00 0.01
Mid Cap Growth Fund...................... 12.56 10.00 -
Small Cap Growth Fund.................... 12.98 10.00 0.05
International Value Fund................. 11.91 10.00 0.02
Large Cap Value Fund..................... 12.14 10.00 0.06
Mid Cap Value Fund....................... 12.37 10.00 0.35
Small Cap Value Fund..................... 10.17 10.00 0.19
Socially Responsible Fund................ 12.26 10.00 0.64
Balanced Fund............................ 11.86 10.00 0.18
High Yield Bond Fund..................... 10.32 10.00 0.39
Strategic Bond Fund...................... 10.25 10.00 0.30
Domestic Bond Fund....................... 9.90 10.00 0.38
Core Bond Fund........................... 9.99 10.00 0.25
Money Market Fund........................ 1.00 1.00 -
Growth Lifestyle Fund.................... 11.66 10.00 0.02
Moderate Growth Lifestyle Fund........... 11.50 10.00 0.04
Conservative Growth Lifestyle Fund....... 11.24 10.00 0.06
</TABLE>
The change in net asset value of the funds will not be the same as the change
in the accumulation unit value of your annuity contract because (1) the change
in net asset value does not reflect the reinvestment of income and capital
gain distributions and (2) the mortality and expense charges described in your
annuity contract are not included.
- -------------------------------------------------------------------------------
<PAGE>
AGSPC3 CHAIRMAN'S LETTER CONTINUED 3
FUNDS AVAILABLE UNDER VALIC SEPARATE ACCOUNT A VARIABLE ANNUITY CONTRACTS
<TABLE>
<CAPTION>
Portfolio
Director
Fund Plus
- ---------------------------------------------------------------------------
<S> <C>
American General International Growth Fund.......................... Yes
American General Large Cap Growth Fund.............................. Yes
American General Mid Cap Growth Fund................................ Yes
American General Small Cap Growth Fund.............................. Yes
American General International Value Fund........................... Yes
American General Large Cap Value Fund............................... Yes
American General Mid Cap Value Fund................................. Yes
American General Small Cap Value Fund............................... Yes
American General Socially Responsible Fund.......................... Yes
American General Balanced Fund...................................... Yes
American General High Yield Bond Fund............................... Yes
American General Strategic Bond Fund................................ Yes
American General Domestic Bond Fund................................. Yes
American General Core Bond Fund..................................... Yes
American General Money Market Fund.................................. Yes
American General Growth Lifestyle Fund.............................. Yes
American General Moderate Growth Lifestyle Fund..................... Yes
American General Conservative Growth Lifestyle Fund................. Yes
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
4 February 28, 1999 (Unaudited)
INTERNATIONAL GROWTH FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 91.09%
AEROSPACE/DEFENSE - 2.19%
3,900 Celesius AB, Class B.................................... $ 60,967
1,858 Thomson CSF............................................. 55,153
----------
116,120
----------
AIRLINES - 1.06%
7,600 British Airways Plc..................................... 55,856
----------
APPAREL & PRODUCTS - 2.86%
721 Christian Dior.......................................... 82,992
600 Groupe Andre, S.A. ..................................... 68,603
----------
151,595
----------
BANKS - OTHER - 2.14%
2,100 Bank Austria AG......................................... 113,128
----------
BANKS - REGIONAL - 3.83%
2,900 Banco Pastor, S.A. ..................................... 157,660
16,500 DAO Heng Bank Group, Ltd. .............................. 44,937
----------
202,597
----------
CHEMICAL - MISCELLANEOUS - 5.42%
3,700 Akzo Nobel.............................................. 140,542
3,100 Hoechst AG.............................................. 146,380
----------
286,922
----------
CONGLOMERATES - 6.65%
30,400 Fomento Economico Mexicano UBD.......................... 80,951
2,700 Huhtamaki I............................................. 90,209
2,823 Lagardere S.C.A. ....................................... 108,626
40,000 LI & Fung............................................... 72,281
----------
352,067
----------
DRUGS - 6.07%
4,516 Astra AB-A.............................................. 89,625
67 Novartis AG............................................. 117,563
9 Roche Holdings AG....................................... 113,999
----------
321,187
----------
ELECTRICAL EQUIPMENT - 7.96%
55 Daetwyler Holding AG.................................... 89,218
1,300 Koninklijke Philips Electronic.......................... 90,755
11,700 Powergen 1998 Plc....................................... 143,659
1,000 Rohm Company, Ltd. ..................................... 97,800
----------
421,432
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
FINANCIAL SERVICES - 6.18%
15,800 Amvescap Plc............................................ $ 153,859
1,200 Jyske Bank.............................................. 101,735
1,000 Unidanmark A/S, Class A................................. 71,274
----------
326,868
----------
FOODS - 8.15%
720 Barry Callebaut AG...................................... 144,129
1,954 Casino Guichard Perrach................................. 113,534
3,000 Companhia de Brasileira - ADR........................... 33,563
23,400 Somerfield Plc.......................................... 140,471
----------
431,697
----------
HOSPITAL SUPPLIES - 1.87%
6,300 Brocacef Holding, NV. .................................. 99,045
----------
INFORMATION PROCESSING -
BUSINESS SOFTWARE -
1.45%
8,000 Forsoft, Ltd. .......................................... 76,500
----------
INFORMATION PROCESSING -
COMPUTER SERVICES - 1.59%
8,100 Merkantildata ASA ...................................... 83,943
----------
INSURANCE - MISCELLANEOUS - 4.80%
8,700 ESG RE Ltd. ............................................ 147,356
550 Topdanmark AS........................................... 107,355
----------
254,711
----------
INSURANCE - MULTILINE - 2.03%
821 AXA..................................................... 107,230
----------
MACHINERY - CONSTRUCTION &
CONTRACTS - 1.23%
32,100 Industrias CH, S.A., Series B........................... 64,957
----------
MERCHANDISE - DRUG - 1.25%
1,281 Scor.................................................... 65,980
----------
MERCHANDISING - FOOD - 1.01%
50,000 Dairy Farm International................................ 53,500
----------
PAPER/FOREST PRODUCTS - 2.03%
15,500 Metsa Serla, Class B.................................... 107,527
----------
PHOTOGRAPHY - 2.78%
4,000 Fuji Photo Film Co...................................... 147,037
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
PUBLISHING - NEWS - 2.88%
23,300 News Corp Ltd........................................... $ 152,506
----------
TELECOMMUNICATIONS - 11.88%
4,500 ECI Telecommunications.................................. 165,375
3,900 Ericsson LMTEL Co. - ADR, Series B...................... 101,400
4,500 Hellenic Telecommun..................................... 118,637
5,000 Tadiran Telecommunisations.............................. 100,937
12,100* Telekomunikacja Polska - ADR............................ 65,811
7,700* Telenorte Leste Partic - ADR............................ 77,000
----------
629,160
----------
UTILITIES - COMMUNICATION - 3.78%
19,000 Telecom Italia Spa...................................... 200,322
----------
TOTAL COMMON STOCK
(Cost $4,719,354)....................................... 4,821,887
----------
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CORPORATE BONDS - 9.07%
CHEMICAL - MAJOR - 4.53%
$240,000 Eastman Chemical Co.,
5.00% due 03/01/99...................................... 240,000
----------
OIL/GAS PRODUCERS - 4.54%
240,000 Sonat, Inc.,
4.98% due 03/01/99...................................... 240,000
----------
TOTAL CORPORATE BONDS
(Cost $480,000)......................................... 480,000
----------
TOTAL INVESTMENTS
(Cost $5,199,354) - 100.16%............................. 5,301,887
Other assets less liabilities,
net - (0.16%)........................................... (8,644)
----------
NET ASSETS (equivalent to $10.22 per share on
517,869 shares outstanding) - 100.00%................... $5,293,243
----------
</TABLE>
*Non-income producing
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
INTERNATIONAL GROWTH FUND - FINANCIAL STATEMENTS (Unaudited) 5
<TABLE>
<CAPTION>
<S> <C>
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 517,869 shares outstanding............. $ 5,179
Additional paid in capital.......................................... 5,184,038
Accumulated net realized loss on securities ........................ (12,503)
Undistributed net investment income................................. 13,996
Unrealized appreciation of securities............................... 102,533
----------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING......................... $5,293,243
----------
</TABLE>
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $2,655)............... $ 21,925
Interest............................................................. 20,208
--------
Total investment income............................................. 42,133
--------
EXPENSES:
Advisory fees........................................................ 22,672
Custodian fees....................................................... 9,354
Administrative service fee........................................... 6,299
Audit fees and tax services.......................................... 6,012
Trustees' fees and expenses.......................................... 1,637
Pricing services..................................................... 509
Accounting services.................................................. 756
Report to shareholders............................................... 500
Miscellaneous........................................................ 235
--------
Total expenses...................................................... 47,974
Expense reimbursement (see Note 3).................................. (19,837)
--------
Net expenses........................................................ 28,137
--------
NET INVESTMENT INCOME................................................ 13,996
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain (loss) on:
Investments................................................ $ 31,329
Foreign currency transactions.............................. (43,832) (12,503)
--------
Net unrealized appreciation of securities during the period.......... 102,533
--------
Net realized and unrealized gain on securities during the period... 90,030
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $104,026
--------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
6 INTERNATIONAL GROWTH FUND - FINANCIAL STATEMENTS (Unaudited) CONTINUED
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the period
six months ended August 26, 1998
February 28, 1999 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................... $ 13,996 $ -
Net realized loss on securities.......... (12,503) -
Net unrealized appreciation of securities
during the period........................ 102,533 -
------------------------------------
Increase in net assets resulting from
operations.............................. 104,026 -
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................... - -
Net realized gain on securities.......... - -
------------------------------------
Decrease in net assets resulting from
distributions
to shareholders......................... - -
------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................ 5,184,456 4,867
Proceeds from shares issued for
distributions reinvested................. - -
------------------------------------
5,184,456 4,867
Cost of shares repurchased............... (106) -
------------------------------------
Increase in net assets resulting from
share transactions...................... 5,184,350 4,867
------------------------------------
TOTAL INCREASE IN NET ASSETS............. 5,288,376 4,867
NET ASSETS:
Beginning of period...................... 4,867 -
------------------------------------
End of period (including undistributed
net investment income of $13,996 and $0). $5,293,243 $4,867
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold.............................. 517,392 487
Shares issued for distributions
reinvested............................... - -
Shares repurchased....................... (10) -
------------------------------------
Increase in shares outstanding.......... 517,382 487
Shares outstanding:
Beginning of period..................... 487 -
------------------------------------
End of period........................... 517,869 487
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 7
LARGE CAP GROWTH FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 95.31%
AEROSPACE/DEFENSE - 0.75%
300 General Dynamics Corp. .............................. $ 18,131
200 Raytheon Co., Class B................................ 10,688
400 United Technologies Corp. ........................... 49,550
-----------
78,369
-----------
AIRLINES - 0.23%
400 Delta Air Lines, Inc. ............................... 24,325
-----------
APPAREL & PRODUCTS - 0.58%
1,600 * Ann Taylor Stores Corp. ............................. 60,500
-----------
APPLIANCES/FURNISHINGS - 0.05%
100 Maytag Corp. ........................................ 5,606
-----------
AUTO - CARS - 1.87%
200 Ford Motor Co. ...................................... 11,863
3,100 * General Motors Corp., Class H........................ 146,281
1,000 Hertz Corp., Class A................................. 39,812
-----------
197,956
-----------
BANKS - OTHER - 0.72%
750 Providian Financial Corp. ........................... 76,594
-----------
BANKS - REGIONAL - 1.52%
900 Chase Manhattan Corp. ............................... 71,662
500 Firstar Corp. ....................................... 41,875
700 SunTrust Banks, Inc. ................................ 47,556
-----------
161,093
-----------
BEVERAGE - BREWERS/DISTRIBUTORS - 0.20%
100 Anheuser-Busch Companies, Inc. ...................... 7,669
200 Brown-Forman Corp., Class B.......................... 13,187
-----------
20,856
-----------
BEVERAGE - SOFT DRINKS - 2.30%
2,400 Coca-Cola Co. ....................................... 153,450
2,400 PepsiCo, Inc. ....................................... 90,300
-----------
243,750
-----------
BROADCASTING - 1.02%
300 * Cablevision Systems Corp., Class A................... 19,500
300 * Clear Channel Communications......................... 18,000
800 * Viacom, Inc., Class B................................ 70,700
-----------
108,200
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BUILDING MATERIALS - 0.80%
1,400 Lowe's Companies, Inc. ............................... $ 83,037
-----------
CHEMICAL - MAJOR - 1.37%
700 Dow Chemical Co. ..................................... 68,863
800 Monsanto Co. ......................................... 36,450
2,100 Solutia, Inc. ........................................ 37,406
-----------
142,719
-----------
CONGLOMERATES - 2.46%
2,000 Loews Corp. .......................................... 156,375
1,400 Tyco International, Ltd. ............................. 104,213
-----------
260,588
-----------
CONSUMER FINANCE - 0.49%
400 Capital One Financial Corp. .......................... 51,050
-----------
CONTAINERS - METAL/GLASS - 0.15%
300 Corning, Inc. ........................................ 16,050
-----------
COSMETICS/TOILETRIES - 0.08%
100 Estee Lauder Companies................................ 8,681
-----------
DRUGS - 13.05%
300 Allergan, Inc. ....................................... 24,450
1,500 American Home Products Corp. ......................... 89,250
2,100* Amgen, Inc. .......................................... 262,237
400 Bergen Brunswig Corp., Class A........................ 9,775
300* Biogen, Inc. ......................................... 28,838
1,200 Bristol Myers Squibb Co............................... 151,125
1,200 Eli Lilly and Co. .................................... 113,625
3,200 Merck & Co., Inc. .................................... 261,600
1,800 Pfizer, Inc. ......................................... 237,488
2,000 Schering-Plough Corp. ................................ 111,875
1,300 Warner-Lambert Co. ................................... 89,781
-----------
1,380,044
-----------
ELECTRICAL EQUIPMENT - 5.16%
100* American Power Conversion............................. 3,587
700 Emerson Electric Co. ................................. 40,206
5,000 General Electric Co. ................................. 501,563
-----------
545,356
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
ENTERTAINMENT - 0.33%
100 Hasbro, Inc. ........................................ $ 3,700
900 Walt Disney Co. ..................................... 31,669
-----------
35,369
-----------
FOODS - 1.70%
900 BestFoods............................................ 42,244
2,300 IBP, Inc. ........................................... 51,750
1,000 Nabisco Holdings Corp. Class A....................... 44,375
900* U.S. Foodservice..................................... 41,794
-----------
180,163
-----------
GOLD MINING - 0.12%
700 Barrick Gold Corp. .................................. 12,381
-----------
GOVERNMENT SPONSORED - 0.17%
300 Federal Home Loan Mortgage Corp. .................... 17,662
-----------
HEALTHCARE - 1.30%
550 Cardinal Health, Inc. ............................... 39,703
300 Mckesson HBOC Inc. .................................. 20,400
300* PacifiCare Health System, Inc., Class B.............. 21,675
200 United HealthCare Corp. ............................. 9,863
600* Wellpoint Health Networks, Inc. ..................... 47,325
-----------
138,966
-----------
HOSPITAL SUPPLIES - 4.66%
3,300 Abbott Laboratories.................................. 153,244
100 Becton, Dickinson and Co. ........................... 3,350
2,700 Johnson & Johnson.................................... 230,512
1,500 Medtronic, Inc. ..................................... 105,938
-----------
493,044
-----------
HOUSEHOLD PRODUCTS - 3.72%
800 Clorox Co. .......................................... 94,650
300 Colgate-Palmolive Co. ............................... 25,463
2,400 Procter & Gamble Co. ................................ 214,800
800 Unilever N V - ADR................................... 57,950
-----------
392,863
-----------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 4.10%
300 * BMC Software, Inc. .................................. 12,262
2,100 * Microsoft Corp. ..................................... 315,263
1,900 * Oracle Corp. ........................................ 106,163
-----------
433,688
-----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
8 February 28, 1999 (Unaudited)
LARGE CAP GROWTH FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 3.72%
700 Compaq Computer Corp. ............................... $ 24,675
1,600 * Dell Computer Corp. ................................. 128,200
200 Hewlett Packard Co. ................................. 13,287
100 Honeywell, Inc. ..................................... 6,994
400 International Business Machine....................... 68,000
1,000 * Lexmark International Group, Inc. ................... 103,187
500 * Sun Microsystems, Inc. .............................. 48,656
-----------
392,999
-----------
INFORMATION PROCESSING -
COMPUTER SERVICES - 4.45%
200 * Amazon.com, Inc. .................................... 25,625
3,600 * America Online, Inc. ................................ 320,175
400 Automatic Data Processing, Inc. ..................... 15,900
700 Electronic Data Systems Corp. ....................... 32,550
500 * Rationale Software Corp. ............................ 14,844
400 * Yahoo!, Inc. ........................................ 61,400
-----------
470,494
-----------
INFORMATION PROCESSING -
DATA SERVICES - 4.90%
400 At Home Corp. ....................................... 42,450
600 * Computer Sciences Corp. ............................. 39,975
400 * Compuware Corp. ..................................... 22,375
1,400 * E M C Corp. ......................................... 143,325
2,400 * Novell, Inc. ........................................ 46,500
2,600 * Seagate Technology................................... 75,237
400 * Solectron Corp. ..................................... 17,875
1,400 * Unisys Corp. ........................................ 41,738
1,600 Xerox Corp. ......................................... 88,300
-----------
517,775
-----------
INFORMATION PROCESSING -
NETWORKING - 4.01%
3,550 * Cisco Systems, Inc. ................................. 347,234
2,200 * General Instrument Corp. ............................ 64,350
400 * 3Com Corp. .......................................... 12,575
-----------
424,159
-----------
INSURANCE - LIFE - 0.86%
1,100 Hartford Life, Inc. Class A.......................... 63,800
600 Nationwide Financial Services, Inc.
Class A.............................................. 27,263
-----------
91,063
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INSURANCE - MULTILINE - 0.97%
600 Allstate Corp. ....................................... $ 22,500
400 American International Group, Inc. ................... 45,575
500 Marsh & McLennan Companies, Inc. ..................... 35,406
-----------
103,481
-----------
LEISURE TIME - 0.34%
900 * Sabre Group Holdings, Inc. ........................... 35,325
-----------
MACHINERY - INDUSTRIAL/SPECIALTY - 0.49%
300 Ingersoll-Rand Co. ................................... 14,250
600 Johnson Controls, Inc. ............................... 36,900
-----------
51,150
-----------
MEDICAL TECHNOLOGY - 0.44%
800 Guidant Corp. ........................................ 45,600
-----------
MERCHANDISE - DRUG - 0.98%
800 CVS Corp. ............................................ 42,400
1,500 Rite Aid Corp. ....................................... 62,063
-----------
104,463
-----------
MERCHANDISE - SPECIALTY - 2.64%
100 American Greetings Corp. Class A...................... 2,369
700* Best Buy Co., Inc. ................................... 64,925
200 Fortune Brands, Inc. ................................. 6,025
2,600 Home Depot, Inc. ..................................... 155,187
400* Staples, Inc. ........................................ 11,762
200 Tandy Corp. .......................................... 11,125
1,000 TJX Companies, Inc. .................................. 28,563
-----------
279,956
-----------
MERCHANDISING - DEPARTMENT - 0.60%
1,000 Dayton Hudson Corp. .................................. 62,562
-----------
MERCHANDISING - FOOD - 1.40%
800 Albertsons, Inc. ..................................... 45,600
600* Kroger Co. ........................................... 38,813
1,100* Safeway, Inc. ........................................ 63,525
-----------
147,938
-----------
MERCHANDISING - MASS - 2.40%
500* Dollar Tree Stores, Inc. ............................. 20,000
2,700 Wal-Mart Stores, Inc. ................................ 233,213
-----------
253,213
-----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
METALS - STEEL - 0.22%
1,700* Bethlehem Steel Corp. ................................ $ 14,981
200 Nucor Corp. .......................................... 8,913
-----------
23,894
-----------
OIL - INTEGRATED INTERNATIONAL - 0.50%
800 Exxon Corp. .......................................... 53,250
-----------
OIL - SERVICES - 0.08%
300 Halliburton Co. ...................................... 8,475
-----------
PHOTOGRAPHY - 2.56%
4,100 Eastman Kodak Co. .................................... 271,369
-----------
PUBLISHING/PRINTING - 0.20%
200 McGraw-Hill, Inc. .................................... 21,887
-----------
RESTAURANTS - 1.09%
1,000 McDonald's Corp. ..................................... 85,000
500* Tricon Global Restaurants, Inc. ...................... 31,000
-----------
116,000
-----------
SECURITIES RELATED - 1.25%
300 Charles Schwab Corp. ................................. 22,369
200 Donaldson, Lufkin & Jenrette.......................... 10,800
200 Lehman Brothers Holdings, Inc. ....................... 10,600
100 Merrill Lynch & Co., Inc. ............................ 7,675
900 Morgan Stanley Dean Witter Discover................... 81,450
-----------
132,894
-----------
SEMICONDUCTOR EQUIPMENT - 0.42%
800* Applied Materials, Inc. .............................. 44,500
-----------
SEMICONDUCTORS - 3.60%
3,100 Intel Corp. .......................................... 371,806
100 Texas Instruments, Inc. .............................. 8,919
-----------
380,725
-----------
TELECOMMUNICATIONS - 5.00%
1,000* Airtouch Communications, Inc. ........................ 91,063
400 BCE, Inc. ............................................ 16,175
2,900 Lucent Technologies, Inc. ............................ 294,531
700* MCI Worldcom, Inc. ................................... 57,750
1,000* NEXTLINK Communications, Inc.......................... 45,750
300* Tellabs, Inc. ........................................ 24,019
-----------
529,288
-----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 9
LARGE CAP GROWTH FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
TOBACCO - 2.03%
5,500 Philip Morris Companies, Inc. ........................ $ 215,187
-----------
UTILITIES - COMMUNICATION - 1.23%
800 AT&T - Liberty Media Group............................ 65,700
200 BellSouth Corp. ...................................... 9,250
200 SBC Communications, Inc. ............................. 10,575
500 Sprint Corp. FON Group................................ 42,906
50 * Sprint Corp. PCS Group................................ 1,600
-----------
130,031
-----------
UTILITIES - ELECTRIC - 0.03%
100 Entergy Corp. ....................................... 2,825
-----------
TOTAL COMMON STOCK
(Cost $8,776,179).................................... 10,079,413
-----------
<CAPTION>
PAR
VALUE
---------
<C> <S> <C>
- --------------------------------------------------------------------------------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 11.66%
CHEMICAL - MAJOR - 2.83%
$299,000 Eastman Chemical Co.,
5.00% due 03/01/99................................... 299,000
-----------
SEMICONDUCTORS - 4.44%
470,000 Avnet, Inc.,
4.85% due 03/01/99................................... 470,000
-----------
UTILITIES - ELECTRIC - 4.39%
464,000 Penn Power & Light Energy Trust.,
4.98% due 03/01/99................................... 464,000
-----------
TOTAL CORPORATE SHORT TERM
(Cost $1,233,000).................................... 1,233,000
-----------
UNITED STATES GOVERNMENT
SHORT TERM - 8.33%
GOVERNMENT SPONSORED - 7.39%
782,000 Federal Home Loan Mortgage Corp.,
4.75% due 03/02/99................................... 781,897
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
U.S. TREASURY BILLS - 0.94%
$100,000 United States Treasury Bills,
4.45% due 04/22/99...................................... $ 99,356
-----------
TOTAL UNITED STATES GOVERNMENT- SHORT TERM
(Cost $881,253)......................................... 881,253
-----------
TOTAL INVESTMENTS - 115.30%
(Cost $10,890,432)...................................... 12,193,666
Other assets less liabilities,
net - (15.30%).......................................... (1,619,156)
-----------
NET ASSETS (equivalent to $12.63 per share on
836,982 shares outstanding) - 100.00%................... $10,574,510
-----------
*Non-income producing
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS DEPRECIATION
<C> <S> <C>
- -------------------------------------------------------------------------------
FUTURES CONTRACTS PURCHASED(1)
1(2) (Delivery month/Value at 02/28/99)
S&P 500 Index Future (March/$1,318.90)............... $ (1,886)
-----------
</TABLE>
(1) U.S. Treasury Bills with a market value of approximately $100,000 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, 836,982 shares outstanding....... $ 8,370
Additional paid in capital.................................... 9,276,967
Accumulated net realized loss on securities................... (13,515)
Undistributed net investment income........................... 1,340
Unrealized appreciation (depreciation) of:
Investments....................................... $1,303,234
Futures contracts................................. (1,886) 1,301,348
---------- -----------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING................... $10,574,510
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- -------------------------------------------------------------------------------
<PAGE>
10 LARGE CAP GROWTH FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends......................................................... $ 22,382
Interest.......................................................... 8,883
----------
Total investment income.......................................... 31,265
----------
EXPENSES:
Advisory fees..................................................... 16,408
Custodian fees.................................................... 10,326
Administrative service fee........................................ 7,459
Audit fees and tax services....................................... 7,129
Trustees' fees and expenses....................................... 1,798
Report to shareholders............................................ 1,106
Accounting services............................................... 895
Pricing services.................................................. 590
Miscellaneous..................................................... 278
----------
Total expenses................................................... 45,989
Expense reimbursement (see Note 3)............................... (19,736)
----------
Net expenses..................................................... 26,253
----------
NET INVESTMENT INCOME............................................. 5,012
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized loss on securities................................... (13,515)
Net unrealized appreciation (depreciation) during the period:
Investments........................................... $1,303,234
Futures contracts..................................... (1,886) 1,301,348
---------- ----------
Net realized and unrealized gain on securities during the
period.......................................................... 1,287,833
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $1,292,845
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended August 26, 1998
February 28, 1999 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................... $ 5,012 $ -
Net realized loss on securities.......... (13,515) -
Net unrealized appreciation of securities
during the period........................ 1,301,348 -
------------------------------------
Increase in net assets resulting from
operations.............................. 1,292,845 -
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................... (3,672) -
Net realized gain on securities.......... - -
------------------------------------
Decrease in net assets resulting from
distributions
to shareholders......................... (3,672) -
------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................ 9,419,061 3,800
Proceeds from shares issued for
distributions reinvested................. 3,672 -
------------------------------------
9,422,733 3,800
Cost of shares repurchased............... (141,196) -
------------------------------------
Increase in net assets resulting from
share transactions...................... 9,281,537 3,800
------------------------------------
TOTAL INCREASE IN NET ASSETS............. 10,570,710 3,800
NET ASSETS:
Beginning of period...................... 3,800 -
------------------------------------
End of period (including undistributed
net investment income of $1,340 and $0).. $10,574,510 $3,800
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold.............................. 847,292 380
Shares issued for distributions
reinvested............................... 315 -
Shares repurchased....................... (11,005) -
------------------------------------
Increase in shares outstanding.......... 836,602 380
Shares outstanding:
Beginning of period..................... 380 -
------------------------------------
End of period........................... 836,982 380
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 11
MID CAP GROWTH FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 97.44%
ADVERTISING - 1.54%
1,500 * Catalina Marketing Corp. .............................. $ 96,562
----------
APPAREL & PRODUCTS - 2.94%
2,600 Cintas Corp. .......................................... 183,950
----------
AUTO - ORIGINAL EQUIPMENT - 1.78%
2,300 Danaher Corp. ......................................... 110,975
----------
AUTO - REPLACEMENT PARTS - 2.52%
4,500 * AutoZone, Inc. ........................................ 157,500
----------
BUILDING MATERIALS - 2.31%
3,800 Fastenal Co. .......................................... 144,400
----------
DRUGS - 3.44%
4,100 * ALZA Corp. ............................................ 214,994
----------
ELECTRONIC INSTRUMENTS - 2.88%
1,900 Perkin-Elmer Corp. .................................... 180,025
----------
FINANCIAL SERVICES - 2.56%
5,200 Price (T Rowe) Associates.............................. 160,225
----------
GOVERNMENT SPONSORED - 2.88%
4,200 SLM Holding Corp. ..................................... 180,075
----------
HEALTHCARE - 10.46%
3,900 Cardinal Health, Inc. ................................. 281,531
3,700 * HCR Manor Care, Inc. .................................. 82,788
8,800 * Health Management Assoc. .............................. 113,850
4,100 Omnicare, Inc. ........................................ 98,144
1,800 * Quintiles Transnational Corp. ......................... 77,625
----------
653,938
----------
HOSPITAL SUPPLIES - 1.78%
4,200 * Boston Scientific Corp. ............................... 111,300
----------
HOUSEHOLD PRODUCTS - 2.24%
3,300 Newell Co. ............................................ 140,250
----------
HUMAN RESOURCES - 3.13%
5,000 * Interim Services, Inc. ................................ 95,000
2,800 * Robert Half International, Inc......................... 100,800
----------
195,800
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING - BUSINESS
SOFTWARE - 8.53%
4,000 * BMC Software, Inc. .................................... $ 163,500
1,200 * Oracle Corp. .......................................... 67,050
10,800 * Parametric Technology Corp. ........................... 166,050
10,300 * Platinum Technology Intern, Inc. ...................... 136,475
----------
533,075
----------
INFORMATION PROCESSING - COMPUTER
SERVICES - 4.97%
3,900 Paychex, Inc. ......................................... 165,263
5,600 * Sterling Commerce, Inc. ............................... 145,600
----------
310,863
----------
INFORMATION PROCESSING -
CONSUMER
SOFTWARE - 3.46%
4,600 * Networks Associates, Inc. ............................. 216,200
----------
INFORMATION PROCESSING -
DATA SERVICES - 12.61%
6,500 * Acxiom Corp. .......................................... 155,594
1,500 * EMC Corp. ............................................. 153,563
1,500 * Fiserv, Inc. .......................................... 70,500
1,000 * Keane, Inc. ........................................... 30,938
4,400 * Solectron Corp. ....................................... 196,625
7,100 * Sterling Software, Inc. ............................... 181,050
----------
788,270
----------
INSURANCE - MULTILINE - 2.68%
3,800 AFLAC Inc. ............................................ 167,675
----------
LEISURE TIME - 3.05%
3,300 Harley-Davidson, Inc. ................................. 190,781
----------
MERCHANDISE - SPECIALTY - 5.56%
5,150 Dollar General Corp. .................................. 154,178
2,800 * Kohl's Corp. .......................................... 193,200
----------
347,378
----------
MISCELLANEOUS - 2.48%
4,100 Equifax Inc. .......................................... 154,775
----------
OIL - SERVICES - 0.97%
2,500 * Smith International, Inc. ............................. 60,781
----------
REAL ESTATE INVESTMENT TRUSTS - 0.49%
1,300 Rouse Company.......................................... 30,387
----------
RESTAURANTS - 1.53%
5,100 CBRL Group, Inc. ...................................... 95,625
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SCHOOLS - 2.07%
3,900 * Sylvan Learning Systems, Inc. ........................ $ 129,675
----------
SECURITIES RELATED - 1.90%
4,200 Legg Mason, Inc. ..................................... 118,912
----------
SEMICONDUCTORS - 1.87%
2,400 * Altera Corp. ......................................... 116,700
----------
TELECOMMUNICATIONS - 2.66%
4,100 * ADC Communications, Inc. ............................. 166,050
----------
TEXTILE-PRODUCTS - 2.15%
2,700 G & K Services, Inc., Class A......................... 134,662
----------
TOTAL COMMON STOCK
(Cost $5,198,446) .................................... 6,091,803
----------
PAR
VALUE
---------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 2.51%
OIL/GAS PRODUCERS - 2.51%
$157,000 Sonat, Inc.,
4.98% due 03/01/99.................................... 157,000
----------
TOTAL CORPORATE SHORT TERM
(Cost $157,000)....................................... 157,000
----------
TOTAL INVESTMENTS
(Cost $5,355,446) - 99.95%............................ 6,248,803
Other assets less liabilities,
net - 0.05%........................................... 3,190
----------
NET ASSETS (equivalent
to $12.56 per share on
497,667 shares
outstanding) - 100.00%................................ $6,251,993
----------
*Non-income producing
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited authorized shares, 497,667 shares outstanding............. $ 4,977
Additional paid in capital.......................................... 4,961,189
Undistributed net realized gain on securities....................... 397,570
Accumulated net investment loss..................................... (5,100)
Unrealized appreciation of securities............................... 893,357
----------
NET ASSETS APPLICABLE TO
SHARES OUTSTANDING.................................................. $6,251,993
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
12 MID CAP GROWTH FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Dividends...................................................... $ 11,778
Interest....................................................... 7,027
----------
Total investment
income........................................................ 18,805
----------
EXPENSES:
Advisory fees.................................................. 18,951
Custodian fees................................................. 10,752
Administrative service fee..................................... 7,289
Audit fees and tax services.................................... 6,945
Trustees' fees and expenses.................................... 1,918
Report to shareholders......................................... 600
Accounting services............................................ 874
Pricing services............................................... 589
Miscellaneous.................................................. 285
----------
Total expenses................................................ 48,203
Expense reimbursement (see Note 3)............................ (24,298)
----------
Net expenses.................................................. 23,905
----------
NET INVESTMENT LOSS............................................ (5,100)
----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities................................ 397,570
Net unrealized appreciation of securities during the period.... 893,357
----------
Net realized and unrealized gain on securities during the
period........................................................ 1,290,927
----------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS................................................ $1,285,827
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended August 26, 1998
February 28, 1999 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment loss...................... $ (5,100) $ -
Net realized gain on securities.......... 397,570 -
Net unrealized appreciation of securities
during the period........................ 893,357 -
------------------------------------
Increase in net assets resulting from
operations.............................. 1,285,827 -
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................... - -
Net realized gain on securities.......... - -
------------------------------------
Decrease in net assets resulting from
distributions to shareholders........... - -
------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................ 5,048,304 5,400
Proceeds from shares issued for
distributions reinvested................. - -
------------------------------------
5,048,304 5,400
Cost of shares repurchased............... (87,538) -
------------------------------------
Increase in net assets resulting from
share transactions...................... 4,960,766 5,400
------------------------------------
TOTAL INCREASE IN NET ASSETS............. 6,246,593 5,400
NET ASSETS:
Beginning of period...................... 5,400 -
------------------------------------
End of period (including accumulated net
investment loss of $(5,100) and $0)....... $6,251,993 $5,400
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold.............................. 503,684 540
Shares issued for distributions
reinvested............................... - -
Shares repurchased....................... (6,557) -
------------------------------------
Increase in shares outstanding.......... 497,127 540
Shares outstanding:
Beginning of period..................... 540 -
------------------------------------
End of period........................... 497,667 540
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 13
SMALL CAP GROWTH FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 91.75%
ADVERTISING - 0.55%
2,200 * Getty Images, Inc. ................................ $ 42,075
----------
AEROSPACE/DEFENSE - 1.54%
500 * Alliant Techsystems, Inc. ......................... 39,594
2,800 * Orbital Sciences Corp. ............................ 77,350
----------
116,944
----------
APPAREL & PRODUCTS - 0.92%
600 * Buckle, Inc. ...................................... 14,663
600 * Gymboree Corp...................................... 6,300
2,100 * Nautica Enterprises, Inc. ......................... 31,500
600 * Pacific Sunwear of California...................... 17,100
----------
69,563
----------
APPLIANCES/FURNISHINGS - 0.81%
500 * Furniture Brands International..................... 10,688
2,300 * School Specialty, Inc. ............................ 50,744
----------
61,432
----------
BANKS - REGIONAL - 3.33%
1,200 * Bank of Commerce................................... 22,650
1,900 * Bank United Corp. ................................. 75,050
500 * FNB Financial Services Corp. ...................... 8,875
4,700 National Commerce Bancorp. ........................ 97,525
1,900 * Ocwen Financial Corp. ............................. 15,200
1,100 Webster Financial Corp. ........................... 33,619
----------
252,919
----------
BEVERAGE - BREWERS/DISTRIBUTORS - 0.91%
100 * Beringer Wine Estates, Class B..................... 4,031
1,900 * Robert Mondavi Corp., Class A...................... 65,313
----------
69,344
----------
BROADCASTING - 2.58%
1,400 * ANTEC Corp. ....................................... 39,025
900 * Emmis Communications Corp., Class A................ 41,681
800 * Entercom Communications Corp. ..................... 25,100
2,200 * Univision Communications, Inc. .................... 89,650
----------
195,456
----------
CHEMICAL - MAJOR - 1.03%
3,300 Albemarle Corp. ................................... 77,963
----------
CHEMICAL - MISCELLANEOUS - 0.93%
2,200 * General Chemical Group, Inc. ...................... 33,825
1,600 * Geon, Co. ......................................... 36,500
----------
70,325
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CONTAINERS - PAPER - 0.66%
3,300 * Ivex Packaging Corp. .................................. $ 49,913
----------
COSMETICS/TOILETRIES - 0.58%
1,500 * Steiner Leisure, Ltd. ................................. 44,250
----------
DRUGS - 6.99%
2,000 * Algos Pharmaceuticals Corp. ........................... 60,000
1,300 * Applied Analytical Industries.......................... 33,800
900 * Covance, Inc. ......................................... 24,806
3,000 * Human Genome Sciences, Inc. ........................... 89,625
600 * IDEC Pharmaceuticals Corp. ............................ 25,987
4,900 * Ligand Pharmaceuticals, Inc., Class B.................. 48,081
500 * Martek Biosciences Corp. .............................. 3,188
3,900 * Millennium Pharmaceuticals............................. 121,143
600 * Pathogenesis Corp. .................................... 27,488
4,475 * SangStat Medical Corp. ................................ 96,213
----------
530,331
----------
ELECTRICAL EQUIPMENT - 0.62%
1,500 * Hutchinson Technology, Inc. ........................... 46,688
----------
ELECTRONIC INSTRUMENTS - 1.39%
1,500 * Cognex Corp. .......................................... 37,500
5,300 * Integrated Device Technology........................... 34,119
400 National Computer Systems, Inc. ....................... 12,813
2,500 * Read-Rite Corp. ....................................... 21,250
----------
105,682
----------
ENTERTAINMENT - 1.54%
5,300 * Cinar Corporation...................................... 109,975
400 * Imax Corp. ............................................ 7,150
----------
117,125
----------
FERTILIZERS - 0.43%
1,000 * Delta & Pine Land Co. ................................. 32,375
----------
FINANCE COMPANIES - 0.91%
3,500 * Financial Federal Corp. ............................... 68,906
----------
FINANCIAL SERVICES - 1.16%
200 * Corp Exec Board Co. ................................... 4,788
400 * Gabelli Asset Management, Inc. ........................ 5,875
1,200 * Professional Detailing, Inc. .......................... 37,350
1,100 * The Profit Recovery Group.............................. 36,300
200 * Sun Bancorp, Inc. ..................................... 3,700
----------
88,013
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
FOODS - 0.77%
600 * American Italian Pasta Co. ............................ $ 15,300
1,100 * Keebler Foods Co. ..................................... 42,900
----------
58,200
----------
FOOTWEAR - 1.07%
2,000 * Kenneth Cole Productions, Inc. Class A................. 45,500
4,000 * Steven Madden, Ltd. ................................... 36,000
----------
81,500
----------
HEALTHCARE - 2.18%
3,000 * Medquist, Inc. ........................................ 102,563
1,900 * Superior Consultant Holdings Corp...................... 62,700
----------
165,263
----------
HOSPITAL MANAGEMENT - 0.20%
500 * Eclipsys Corp. ........................................ 15,406
----------
HOSPITAL SUPPLIES - 1.04%
2,700 * Closure Medical Corp. ................................. 78,638
----------
HUMAN RESOURCES - 1.91%
4,000 * Condor Technology Solutions............................ 44,000
5,200 * Provant, Inc. ......................................... 100,750
----------
144,750
----------
INFORMATION PROCESSING - BUSINESS SOFTWARE - 4.78%
1,000 * Exchange Applications, Inc. ........................... 16,500
2,800 * HNC Software, Inc. .................................... 75,250
3,700 * Informix Corp. ........................................ 32,375
2,300 * Microstrategy Inc. .................................... 57,213
1,000 * New Era of Networks, Inc. ............................. 62,375
100 * Onyx Software Corp. ................................... 1,856
200 * SCM Microsystems, Inc. ................................ 16,600
1,100 * TSI International Software Ltd......................... 55,206
100 * Vignette Corp.......................................... 4,675
1,400 * Visio Corp. ........................................... 40,250
----------
362,300
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
14 February 28, 1999 (Unaudited)
SMALL CAP GROWTH FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING - COMPUTER
HARDWARE SYSTEMS - 1.68%
4,700 * Intevac, Inc. ......................................... $ 39,950
5,800 * Maxtor Corp............................................ 47,850
4,300 * Radiant Systems, Inc. ................................. 39,506
----------
127,306
----------
INFORMATION PROCESSING - COMPUTER
SERVICES - 2.82%
700 * Concord Communications, Inc. .......................... 39,638
500 * Concur Technologies.................................... 15,500
2,500 * Pegasus Systems, Inc. ................................. 93,750
700 * Prodigy Comm........................................... 27,213
1,800 * Security Dynamics Technologies......................... 33,300
100 * Verticalnet, Inc. ..................................... 4,125
----------
213,526
----------
INFORMATION PROCESSING - CONSUMER
SOFTWARE - 1.75%
500 * Advantage Learning Systems, Inc. ...................... 37,625
1,000 * Bindview Development Corp. ............................ 22,500
200 * Covad Communications Group, Inc. ...................... 8,100
2,100 * Macromedia, Inc. ...................................... 64,181
----------
132,406
----------
INFORMATION PROCESSING -
DATA SERVICES - 3.74%
2,200 * ACT Networks, Inc. .................................... 25,575
2,700 * Aspen Technology, Inc. ................................ 34,594
900 * Dialogic Corp. ........................................ 24,919
6,300 * HMT Technology Corp. .................................. 43,509
1,900 IDX Systems Corp. ..................................... 45,125
2,200 In Focus Systems, Inc. ................................ 18,150
700 * Legato Systems, Inc. .................................. 34,475
3,900 * Mapics, Inc. .......................................... 42,169
1,600 Schawk, Inc. .......................................... 15,200
----------
283,716
----------
INFORMATION PROCESSING -
NETWORKING - 3.63%
2,800 * Concentric Network Corp. .............................. 122,850
1,000 * Exodus Communications, Inc. ........................... 73,375
3,000 * Sipex Corp. ........................................... 34,313
600 * Unify Corp. ........................................... 7,613
1,100 * USWeb Corp............................................. 37,056
----------
275,207
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INSURANCE - CASUALTY - 0.49%
1,100 Renaissancere Holdings............................. $ 37,400
----------
INSURANCE - LIFE - 0.67%
2,100 Arm Financial Group, Inc........................... 32,681
400 Nationwide Financial Services, Inc.,
Class A............................................ 18,175
----------
50,856
----------
LEISURE TIME - 1.30%
2,200 * Premier Parks, Inc. ............................... 64,075
2,000 * Vail Resorts, Inc. ................................ 34,500
----------
98,575
----------
LODGING - 1.74%
500 * MGM Grand Inc...................................... 18,875
4,400 * Resortquest Intl, Inc. ............................ 77,275
1,000 * Sun International Hotels, Ltd. .................... 35,563
----------
131,713
----------
MACHINERY - INDUSTRIAL/SPECIALTY - 1.08%
600 * GaSonics International Corp. ...................... 6,225
600 Newport News Shipbuilding.......................... 17,363
3,500 * SM&A Corp.......................................... 58,625
----------
82,213
----------
MEDICAL TECHNOLOGY - 5.40%
1,200 * Affymetrix, Inc. .................................. 46,500
100 * Albany Molecular .................................. 2,000
1,400 * Arqule, Inc. ...................................... 8,138
6,100 * AXYS Pharmaceuticals, Inc. ........................ 28,213
3,300 IDEXX Laboratories, Inc. .......................... 73,838
2,800 Kendle International, Inc. ........................ 67,550
1,900 * On Assignment, Inc. ............................... 67,450
1,900 * Synaptic Pharmaceutical Corp. ..................... 29,688
5,800 * US Bioscience, Inc. ............................... 58,363
1,600 * Ventana Medical Systems, Inc. ..................... 27,800
----------
409,540
----------
MERCHANDISE - DRUG - 0.54%
600 * Andrx Corp......................................... 40,725
----------
MERCHANDISE - SPECIALTY - 2.41%
1,600 * Avid Technology, Inc. ............................. 46,900
1,000 * Bush Boake Allen, Inc. ............................ 31,938
1,600 Fingerhut Companies, Inc. ......................... 39,300
100 * General Nutrition Companies, Inc. ................. 1,338
1,500 * Hibbett Sporting Goods, Inc. ...................... 30,938
4,100 * Petsmart, Inc...................................... 32,288
----------
182,702
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
METALS - STEEL - 0.50%
1,800 Mueller Industries, Inc. .............................. $ 38,025
----------
MISCELLANEOUS - 0.32%
1,200 * Polycom, Inc. ......................................... 24,300
----------
OIL - INTEGRATED DOMESTIC - 0.09%
900 * Tesoro Petroleum Corp. ................................ 7,200
----------
OIL - SERVICES - 0.51%
1,600 * Smith International, Inc. ............................. 38,900
----------
OIL/GAS PRODUCERS - 0.85%
2,000 Devon Energy Corp. .................................... 46,875
1,000 Valero Energy Corp. ................................... 17,563
----------
64,438
----------
PAPER/FOREST PRODUCTS - 0.77%
2,900 Universal Forest Products.............................. 58,181
----------
PUBLISHING/PRINTING - 0.40%
2,300 * Journal Register Co. .................................. 30,188
----------
REAL ESTATE INVESTMENT TRUSTS - 0.44%
1,900 Allied Capital Corporation............................. 33,488
----------
RESTAURANTS - 1.00%
2,680 * CKE Restaurants, Inc................................... 71,188
200 * P. F. Changs China Bistro, Inc......................... 4,800
----------
75,988
----------
SAVINGS & LOAN - 0.38%
700 * TeleBanc Financial Corp. .............................. 29,050
----------
SCHOOLS - 6.41%
1,200 * Bright Horizons Family Solutions, Inc.................. 25,350
3,200 * CorporateFamily Solutions.............................. 67,600
2,100 * DeVry, Inc. ........................................... 52,763
5,600 * Education Management Corp. ............................ 150,500
4,300 * ITT Educational Services, Inc. ........................ 156,681
1,000 * Sylvan Learning Systems, Inc. ......................... 33,250
----------
486,144
----------
SEMICONDUCTOR EQUIPMENT - 1.67%
4,800 * ATMI, Inc. ............................................ 109,200
600 LAM Research Corp. .................................... 17,738
----------
126,938
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 15
SMALL CAP GROWTH FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SEMICONDUCTORS - 1.76%
1,000 * Applied Micro Circuits Corp. .......................... $ 39,250
3,700 * Cypress Semiconductor Corp. ........................... 35,381
1,200 * Exar Corp.............................................. 18,225
600 * FSI International, Inc. ............................... 5,850
900 * Veeco Instruments, Inc. ............................... 34,425
----------
133,131
----------
TELECOMMUNICATIONS - 9.93%
1,300 * Allegiance Telecom, Inc. .............................. 31,119
2,400 * Diamond Tech Partners, Inc. ........................... 59,550
500 * Excel Switching Corp. ................................. 11,813
900 * Global Crossing, Ltd. ................................. 53,100
1,300 * Intermedia Communications, Inc ........................ 23,563
2,200 * L-3 Communications Holdings............................ 94,325
2,000 * Metro One Telecommunications........................... 27,500
3,700 * MetroNet Communications Corp. ......................... 162,569
2,500 * NEXTLINK Communications, Inc........................... 114,375
7,000 * Paging Network, Inc. .................................. 28,000
2,200 * Pairgain Technologies, Inc. ........................... 18,975
3,100 * Skytel Communications, Inc. ........................... 55,800
1,400 * Tekelec................................................ 16,975
1,200 * Tel-Save.com, Inc. .................................... 11,925
1,100 * Teligent, Inc. ........................................ 43,244
----------
752,833
----------
TEXTILE - PRODUCTS - 0.27%
2,200 Wellman, Inc. ......................................... 20,488
----------
UTILITIES - GAS, DISTRIBUTION - 0.22%
1,900 * National-Oilwell, Inc. ................................ 16,863
----------
UTILITIES - MISCELLANEOUS - 0.15%
900 * Stericycle, Inc. ...................................... 11,419
----------
TOTAL COMMON STOCK
(Cost $5,969,096)...................................... 6,958,820
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
PREFERRED STOCK - 0.17%
100 Metromedia International Group......................... $ 2,975
1,000* Tesoro Petroleum Corp.................................. 9,875
----------
12,850
----------
TOTAL PREFERRED STOCK
(Cost $16,754)......................................... 12,850
----------
PAR
VALUE
---------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 7.07%
CHEMICAL MAJOR - 2.57%
$195,000 Eastman Chemical Co.,
5.00% due 03/01/1999................................... 195,000
----------
OIL/GAS PRODUCERS - 4.50%
341,000 Sonat Inc,
4.98% due 03/01/1999................................... 341,000
----------
TOTAL CORPORATE SHORT TERM
(Cost $536,000)........................................ 536,000
----------
TOTAL INVESTMENTS
(Cost $6,521,850) - 98.99%............................. 7,507,670
Other assets less liabilities,
net - 1.01%............................................ 76,871
----------
NET ASSETS - (equivalent
to $12.98 per share on
584,386 shares
outstanding) 100.00%................................... $7,584,541
----------
*Non-income producing
</TABLE>
- --------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par
value per share, unlimited authorized shares,
584,386 shares outstanding......................................... $ 5,844
Additional paid in capital......................................... 6,143,760
Undistributed net realized gain on securities...................... 463,027
Accumulated net investment loss.................................... (13,910)
Unrealized appreciation of securities.............................. 985,820
----------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING........................ $7,584,541
----------
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
16 SMALL CAP GROWTH FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Interest........................................................... $ 13,201
Dividends.......................................................... 8,737
----------
Total investment income........................................... 21,938
----------
EXPENSES:
Advisory fees...................................................... 25,823
Custodian fees..................................................... 10,985
Administrative fee................................................. 7,595
Audit fees and tax services........................................ 7,245
Trustees' fees and expenses........................................ 1,947
Report to shareholders............................................. 720
Accounting services................................................ 911
Pricing services................................................... 610
Miscellaneous...................................................... 303
----------
Total expenses.................................................... 56,139
Expense reimbursement (see Note 3)................................ (20,291)
----------
Net expenses...................................................... 35,848
----------
NET INVESTMENT LOSS................................................ (13,910)
----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities.................................... 486,587
Net unrealized appreciation of securities during the period........ 985,820
----------
Net realized and unrealized gain on securities during the period.. 1,472,407
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... $1,458,497
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the period
six months ended August 26, 1998
February 28, 1999 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment loss...................... $ (13,910) $ -
Net realized gain on securities.......... 486,587 -
Net unrealized appreciation of securities
during the period........................ 985,820 -
------------------------------------
Increase in net assets resulting from
operations.............................. 1,458,497 -
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................... - -
Net realized gain on securities.......... (23,560) -
------------------------------------
Decrease in net assets resulting from
distributions to shareholders........... (23,560) -
------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................ 6,226,103 5,200
Proceeds from shares issued for
distributions reinvested................. 23,560 -
------------------------------------
6,249,663 5,200
Cost of shares repurchased............... (105,259) -
------------------------------------
Increase in net assets resulting from
share transactions...................... 6,144,404 5,200
------------------------------------
TOTAL INCREASE IN NET ASSETS............. 7,579,341 5,200
NET ASSETS:
Beginning of period...................... 5,200 -
------------------------------------
End of period (including accumulated net
investment loss of $(13,910) and $0)..... $7,584,541 $5,200
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold.............................. 589,807 520
Shares issued for distributions
reinvested............................... 1,746 -
Shares repurchased....................... (7,687) -
------------------------------------
Increase in shares outstanding.......... 583,866 520
Shares outstanding:
Beginning of period..................... 520 -
------------------------------------
End of period........................... 584,386 520
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 17
INTERNATIONAL VALUE FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
<CAPTION>
COMMON STOCK - 97.14%
AUTO - CARS - 3.19%
4,000 Fiat, SpA........................................... $ 12,049
19,500 Fiat, SpA. Private.................................. 30,121
13,000 Nissan Motor Co. ................................... 50,746
450 Peugeot, S.A. ...................................... 60,110
4,000 Suzuki Motor Corporation ........................... 44,179
----------
197,205
----------
AUTO - ORIGINAL EQUIPMENT - 0.69%
9,133 Lucasvarity, Plc.................................... 41,540
----------
BANKS - OTHER - 6.83%
8,310 Aust & NZ Banking Group, Ltd. ...................... 53,669
600 Bank of Montreal.................................... 24,906
580 Banque Nationale de Paris........................... 46,357
1,700 Foreningssparbanken AB.............................. 38,929
1,000 Royal Bank of Canada................................ 48,770
6,600 Standard Charter, Plc. ............................. 86,223
5,000 Sumitomo Bank....................................... 60,324
7,500 Westpac Banking Corp................................ 49,588
----------
408,766
----------
BANKS - REGIONAL - 1.12%
2,500 Barclays, Plc. ..................................... 67,123
----------
BEVERAGE - BREWERS/
DISTRIBUTORS - 3.82%
5,000 Asahi Breweries .................................... 66,268
30,000 Fraser & Neave, Ltd. - Ord ......................... 101,875
600 Heineken, N.V. ..................................... 31,399
2,000 South African Breweries, Ltd. ...................... 29,066
----------
228,608
----------
BEVERAGE - SOFT DRINKS - 0.34%
5,200 Coca-Cola Amatil, Ltd. ............................. 20,480
----------
BROADCASTING - 1.16%
200 Canal Plus ......................................... 62,578
1,000 News Corp, Ltd. .................................... 7,017
----------
69,595
----------
BUILDING MATERIALS - 3.06%
2,900 Cemex SA de CV - ADR................................ 16,811
350 Compagnie de Saint - Gobain ........................ 54,486
3,500 CRH, Plc. .......................................... 65,029
45 Holdrbank Finan Glarus, Class B..................... 46,842
----------
183,168
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CHEMICAL - MAJOR - 0.63%
2,800 BOC Group, Plc. ........................................ $ 37,926
----------
CHEMICAL - MISCELLANEOUS - 0.87%
1,100 Hoechst AG.............................................. 51,941
----------
CONGLOMERATES - 2.27%
5,707 Broken Hill Proprietary Co. ............................ 42,848
5,000 Hutchison Whampoa....................................... 34,689
120 Preussag Ag............................................. 58,179
----------
135,716
----------
CONSUMER FINANCE - 0.70%
600 Nichiei Co, Ltd. ....................................... 41,936
----------
COSMETICS/TOILETRIES - 1.50%
3,100 Reckitt & Colman, Plc................................... 41,492
4,000 Shiseido Co, Ltd. ...................................... 48,563
----------
90,055
----------
DRUGS - 5.15%
5,500 Astra AB, Class A....................................... 109,154
30 Novartis AG............................................. 52,640
1,000 Takeda Chemical Industries.............................. 34,398
2,700 Zenea Group, Plc. ...................................... 112,484
----------
308,676
----------
ELECTRIC PRODUCTS -
MISCELLANEOUS - 2.60%
2,400 ASM Lithography Holdings, N.V. ......................... 98,814
900 Siemens Ag.............................................. 56,894
----------
155,708
----------
ELECTRICAL EQUIPMENT - 4.40%
700 Hirose Electric Co, Ltd. ............................... 47,509
2,000 Murata Mfg Co. ......................................... 90,043
5,000 NEC Corporation......................................... 50,502
1,000 Sony Corp............................................... 75,710
----------
263,764
----------
ELECTRONIC INSTRUMENTS - 1.27%
1,000 Advantest Corp. ........................................ 75,963
----------
ENTERTAINMENT - 0.70%
500 Nintendo Co, Ltd. ...................................... 42,155
----------
FINANCE COMPANIES - 2.74%
5,000 3I Group................................................ 49,571
3,600 Lend Lease Corp, Ltd. .................................. 44,712
1,100 Newcourt Credit Group, Inc. ............................ 25,893
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
FINANCE COMPANIES - Continued
700 Orix Corp......................................... $ 43,791
----------
163,967
----------
FINANCIAL SERVICES - 1.36%
750 Deutsche Bank AG.................................. 39,208
100 Shohkoh Fund & Co, Ltd. .......................... 41,986
----------
81,194
----------
FOODS - 1.32%
19 Nestle, S.A....................................... 35,870
15,213 Tesco, Plc. ...................................... 43,225
----------
79,095
----------
HEAVY DUTY TRUCKS/PARTS - 1.08%
4,400 Bombardier Inc.................................... 64,916
----------
INFORMATION PROCESSING - COMPUTER
HARDWARE SYSTEMS - 1.91%
5,110 * Asustek Computer, Inc............................. 42,924
1,000 TDK Corp. ........................................ 71,748
----------
114,672
----------
INSURANCE - CASUALTY - 1.02%
3,300 Guardian Royal Exchange, Plc. .................... 18,765
9,000 Mitsui Marine & Fire.............................. 42,568
----------
61,333
----------
INSURANCE - MISCELLANEOUS - 0.37%
10 Schweizerische Rueckversicherungs - Gesellschaft.. 22,399
----------
INSURANCE - MULTILINE - 2.27%
600 AEGON, N.V. ...................................... 62,732
1,900 Assicurazioni Generali............................ 73,528
----------
136,260
----------
LEISURE TIME - 0.74%
6,100 EMI Group, Plc. .................................. 44,172
----------
LODGING - 0.78%
200 Accor, S.A. ...................................... 46,615
----------
MACHINERY - INDUSTRIAL/SPECIALTY - 5.28%
2,000 Mannesmann AG..................................... 268,913
7,400 TI Group, Plc..................................... 46,558
----------
315,471
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
18 February 28, 1999 (Unaudited)
INTERNATIONAL VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
MEDICAL TECHNOLOGY - 1.82%
2,400 Gambro AB, Class A.................................... $ 19,199
1,000 Hoya Corp. ........................................... 48,900
2,000 Terumo Corp. ......................................... 40,806
----------
108,905
----------
MERCHANDISING - DEPARTMENT - 0.56%
6,000 Mycal Corp. .......................................... 33,640
----------
MERCHANDISING - FOOD - 0.97%
1,515 Koninklijke Ahold, N.V. .............................. 58,296
----------
MERCHANDISING - MASS - 1.33%
2,300 * Cifra SA de CV - ADR.................................. 28,462
9,600 Coles Myer, Ltd. ..................................... 51,270
----------
79,732
----------
MISCELLANEOUS - 1.91%
3,000 De Beers Cons Mines - ADR............................. 51,375
2,200 Metallgesellschaft AG................................. 40,634
30 SGS Societe Generale de Surveillance
Holding SA, Class B................................... 22,572
----------
114,581
----------
OIL - INTEGRATED INTERNATIONAL - 2.56%
10,000 Eni, Spa. ............................................ 57,718
1,700 Norsk Hydro ASA....................................... 57,687
6,800 Shell Transport & Trading Co. ........................ 38,014
----------
153,419
----------
OIL/GAS PRODUCERS - 2.37%
3,000 British Petroleum Co., Plc. .......................... 42,871
550 Total SA, Class B..................................... 57,443
8,500 Woodside Petroleum, Ltd. ............................. 41,542
----------
141,856
----------
PAPER/FOREST PRODUCTS - 0.87%
2,000 Upm - Kymmene Oyj..................................... 52,002
----------
PHOTOGRAPHY - 0.23%
1,000 Nikon Corp. .......................................... 13,995
----------
PUBLISHING - NEWS - 2.93%
900 News Corp., Ltd. - ADR................................ 23,681
6,400 Reuters Group, Plc. .................................. 88,175
2,500 Thomson Corp. ........................................ 63,408
----------
175,264
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
PUBLISHING/PRINTING - 0.60%
3,700 Reed International..................................... $ 35,941
----------
REAL ESTATE INVESTMENT TRUSTS - 0.68%
6,000 Sun Hung Kai Properties Ltd. .......................... 40,852
----------
SECURITIES RELATED - 0.69%
5,000 Nomura Securities...................................... 41,143
----------
SEMICONDUCTOR EQUIPMENT - 1.52%
2,000 Tokyo Electron Limited. ............................... 91,055
----------
SEMICONDUCTORS - 2.10%
800 STMicroelectronics, N.V. .............................. 71,373
2,800 * Taiwan Semiconductor - ADR............................. 54,425
----------
125,798
----------
TELECOMMUNICATIONS - 7.61%
5,600 Colt TelecomGroup...................................... 104,487
1,800 Ericsson (LM) - ADR, Class B........................... 47,704
1,400 Nokia Oyj, Class A..................................... 191,779
1 NTT Mobile Communications.............................. 40,637
2,500 Orange, Plc. .......................................... 36,407
1,100 Teleglobe.............................................. 34,574
----------
455,588
----------
UTILITIES - COMMUNICATION - 8.26%
4,200 Deutsche Telekom AG.................................... 193,011
5 NTT Corp. ............................................. 41,227
138 Swisscom AG............................................ 54,583
16,000 Telecom Italia, SpA.................................... 108,181
1,340 Telefonica, S.A........................................ 61,285
9,000 TIM SpA................................................ 36,412
----------
494,699
----------
UTILITIES - MISCELLANEOUS - 0.33%
100 Suez Lyonnaise Des Eaux................................ 20,020
----------
WATER SERVICES - 0.55%
2,600 United Utilities, Plc. ................................ 32,925
----------
TOTAL COMMON STOCK
(Cost $4,877,987)...................................... 5,820,130
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 2.08%
OIL/GAS PRODUCERS - 2.08%
$125,000 Sonat, Inc.
4.98% due 03/01/99...................................... $ 125,000
-----------
TOTAL CORPORATE SHORT TERM
(Cost $125,000)......................................... 125,000
-----------
TOTAL INVESTMENTS
(Cost $5,002,987) - 99.23%.............................. 5,945,130
Other assets less liabilities,
net - 0.77%............................................. 46,290
-----------
NET ASSETS (equivalent
to $11.91 per share on
502,998 shares
outstanding) - 100%..................................... $ 5,991,420
-----------
*Non-income producing
</TABLE>
FORWARD CURRENCY CONTRACTS
<TABLE>
- -------------------------------------------------------------------------------
<CAPTION>
Unrealized
Settlement Face Market Appreciation
Long/Short Date(s) Value Value (Depreciation)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
298,000 USD / 40,017,606 JPY 3/10/99-10/13/99 $298,000 $303,735 $5,735
44,406 EUR / 5,899,846 JPY 4/6/99-5/6/99 44,406 43,424 (982)
13,452 EUR / 9,530 GBP 3/15/99 15,951 15,493 (458)
10,099 EUR / 18,324 CAD 4/06/99 11,936 10,946 (990)
32,000 USD / 28,266 EUR 5/10/99 32,000 31,266 (734)
-------- -------- ------
$402,293 $404,864 $2,571
-------- -------- ------
</TABLE>
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share
unlimited shares authorized; 502,998 shares outstanding............. $ 5,030
Additional paid in capital.......................................... 5,030,059
Undistributed net realized gain on securities....................... 19,848
Accumulated net investment loss..................................... (8,231)
Unrealized appreciation of:
Investments........................................................ 942,143
Forward currency contracts......................................... 2,571
----------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING......................... $5,991,420
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
19
INTERNATIONAL VALUE FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $2,718)............ $ 18,894
Interest.......................................................... 9,322
---------
Total investment income.......................................... 28,216
---------
EXPENSES:
Advisory fees..................................................... 26,984
Custodian fees.................................................... 9,969
Administrative service fee........................................ 6,704
Audit fees and tax services....................................... 6,392
Trustees' fees and expenses....................................... 1,746
Report to shareholders............................................ 574
Accounting services............................................... 804
Pricing services.................................................. 543
Miscellaneous..................................................... 264
---------
Total expenses.................................................. 53,980
Expense reimbursement (see Note 3).............................. (25,533)
---------
Net expenses.................................................... 28,447
---------
NET INVESTMENT LOSS............................................... (231)
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES AND FORWARD
CURRENCY CONTRACTS:
Net realized gain (loss) on:
Investments............................................. $ 59,459
Foreign currency transactions........................... (39,611) 19,848
-------- ---------
Net unrealized appreciation during the period:
Investments............................................. 942,143
Forward currency contracts.............................. 2,571 944,714
-------- ---------
Net realized and unrealized gain on securities and
foreign currencies during the period............................ 964,562
---------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. $ 964,331
---------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the period
six months ended August 26, 1998
February 28, 1999 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment loss....................... $ (231) $ -
Net realized gain on securities and
foreign exchange loss..................... 19,848 -
Net unrealized appreciation of securities
and forward currency contracts during the
period.................................... 944,714 -
------------------------------------
Increase in net assets resulting from
operations............................... 964,331 -
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income..................... (8,000) -
Net realized gain on securities........... - -
------------------------------------
Decrease in net assets resulting from
distributions to shareholders............ (8,000) -
------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................. 5,038,308 4,800
Proceeds from shares issued for
distributions reinvested.................. 8,000 -
------------------------------------
5,046,308 4,800
Cost of shares repurchased................ (16,019) -
------------------------------------
Increase in net assets resulting from
share transactions....................... 5,030,289 4,800
------------------------------------
TOTAL INCREASE IN NET ASSETS............. 5,986,620 4,800
NET ASSETS:
Beginning of period...................... 4,800 -
------------------------------------
End of period (including accumulated net
investment loss of $(8,231) and $0)...... $5,991,420 $4,800
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold............................... 503,121 480
Shares issued for distributions
reinvested................................ 704 -
Shares repurchased........................ (1,307) -
------------------------------------
Increase in shares outstanding........... 502,518 480
Shares outstanding:
Beginning of period...................... 480 -
------------------------------------
End of period............................ 502,998 480
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
20 February 28, 1999 (Unaudited)
LARGE CAP VALUE FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 97.63%
AEROSPACE/DEFENSE - 2.12%
800 Sunstrand Corp. ....................................... $ 54,150
600 United Technologies Corp. ............................. 74,325
----------
128,475
----------
APPLIANCES/FURNISHINGS - 0.43%
600 Whirlpool Corp. ....................................... 26,100
----------
AUTO - CARS - 3.77%
2,000 Ford Motor Co. ........................................ 118,625
1,200 General Motors Corp. .................................. 99,075
700 Meritor Automotive, Inc. .............................. 11,113
----------
228,813
----------
BANKS - NEW YORK CITY - 5.05%
3,700 Citigroup Inc. ........................................ 217,375
800 J. P. Morgan & Co. Inc. ............................... 89,150
----------
306,525
----------
BANKS - OTHER - 5.40%
1,800 BankAmerica Corp. ..................................... 117,562
600 First Union Corp. ..................................... 31,987
2,000 Fleet Financial Group, Inc. ........................... 85,875
1,900 * Unionbancal Corp. ..................................... 59,731
900 Wells Fargo Company.................................... 33,075
----------
328,230
----------
BANKS - REGIONAL - 7.00%
2,644 Bank One Corp. ........................................ 142,115
2,000 Chase Manhattan Corp................................... 159,250
3,700 Hibernia Corp., Class A................................ 59,894
2,900 Pacific Century Financial Corp. ....................... 63,618
----------
424,877
----------
BEVERAGE - BREWERS/DISTRIBUTORS - 1.26%
1,000 Anheuser-Busch Companies, Inc. ........................ 76,688
----------
BROADCASTING - 1.28%
300 * Tele-Comm Liberty Media Group, Class A................. 18,844
1,100 U S WEST, Inc. ........................................ 58,644
----------
77,488
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BUILDING MATERIALS - 2.44%
1,300 Sherwin-Williams Co. .................................. $ 31,281
1,200 Southdown, Inc. ....................................... 56,625
1,200 USG Corp. ............................................. 60,150
----------
148,056
----------
CHEMICAL - MAJOR - 1.10%
500 E.I. Du Pont de Nemours and Co. ....................... 25,656
2,300 Solutia, Inc. ......................................... 40,969
----------
66,625
----------
CHEMICAL MISCELLANEOUS - 0.80%
500 * FMC Corp. ............................................. 25,594
1,700 * W.R. Grace & Co. ...................................... 22,844
----------
48,438
----------
CONTAINERS - METAL/GLASS - 0.41%
600 Ball Corp. ............................................ 25,125
----------
DRUGS - 2.02%
900 Allergan, Inc. ........................................ 73,350
2,000 Bergen Brunswig Corp., Class A ........................ 48,875
----------
122,225
----------
ENTERTAINMENT - 0.74%
700 Time Warner, Inc. ..................................... 45,150
----------
FINANCIAL SERVICES - 2.28%
1,000 CIT Group, Inc. ....................................... 29,500
1,400 Countrywide Credit Industries, Inc. ................... 53,025
2,300 Heller Financial, Inc. ................................ 55,630
----------
138,155
----------
FOODS - 1.75%
800 Dean Foods Co. ........................................ 29,150
1,000 IBP, Inc. ............................................. 22,500
1,000 Quaker Oats Co. ....................................... 54,625
----------
106,275
----------
GOVERNMENT SPONSORED - 1.73%
1,500 Federal National Mortgage Association.................. 105,000
----------
HEALTHCARE - 1.04%
800 * Wellpoint Health Networks, Inc. ....................... 63,100
----------
HEAVY DUTY TRUCKS/PARTS - 0.64%
900 * Navistar International Corp. .......................... 38,700
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 1.00%
1,900 Premark International, Inc. ........................... $ 60,681
----------
INFORMATION PROCESSING -
DATA SERVICES - 7.89%
700 Adobe Systems, Inc. ................................... 28,175
1,900 Diebold, Inc. ......................................... 55,456
1,300 International Business Machine......................... 221,000
1,800 * Seagate Technology..................................... 52,088
1,100 * Sterling Software, Inc. ............................... 28,050
1,300 * Tech Data Corp. ....................................... 22,100
2,400 Unisys Corp. .......................................... 71,550
----------
478,419
----------
INSURANCE - CASUALTY - 0.98%
1,800 Everest Reinsurance Holdings........................... 59,738
----------
INSURANCE - MISCELLANEOUS - 1.18%
500 Ambac Financial Group, Inc. ........................... 28,000
1,100 Fremont General Corp. ................................. 21,725
500 PMI Group, Inc. ....................................... 21,563
----------
71,288
----------
INSURANCE - MULTILINE - 4.58%
2,500 Allstate Corp. ........................................ 93,750
1,200 American International Group, Inc. .................... 136,725
2,500 Old Republic International Corp. ...................... 47,031
----------
277,506
----------
LEISURE TIME - 0.91%
1,400 * Sabre Group Holdings, Inc. ............................ 54,950
----------
MACHINERY - INDUSTRIAL/SPECIALTY - 1.02%
1,300 Ingersoll-Rand Co. .................................... 61,750
----------
MERCHANDISE - SPECIALTY - 1.00%
300 * Best Buy Co., Inc. .................................... 27,825
600 Circuit City Stores, Inc. ............................. 32,550
----------
60,375
----------
MERCHANDISING - DEPARTMENT - 1.03%
2,500 Dillards, Inc. Class A................................. 62,188
----------
MERCHANDISING - FOOD - 1.13%
1,200 Albertsons, Inc. ...................................... 68,400
----------
MERCHANDISING - MASS - 1.21%
4,200 * KMart Corp. ........................................... 73,500
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 21
LARGE CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<S> <C> <C>
- --------------------------------------------------------------------------------
METALS - MISCELLANEOUS - 0.47%
1,600 Engelhard Corp......................................... $ 28,500
----------
MISCELLANEOUS - 0.62%
1,000 BB&T Corp.............................................. 37,875
----------
NATURAL GAS - DIVERSIFIED - 0.52%
1,500 K N Energy, Inc........................................ 31,406
----------
OIL - INTEGRATED DOMESTIC - 1.43%
700 Amerada Hess Corp. .................................... 31,763
1,000 Burlington Resources, Inc.............................. 32,375
800 Kerr-McGee Corp. ...................................... 22,850
----------
86,988
----------
OIL - INTEGRATED INTERNATIONAL - 5.21%
500 Chevron Corp........................................... 38,438
2,800 Exxon Corp............................................. 186,374
600 Mobil Corp............................................. 49,912
800 Murphy Oil Corp.. ..................................... 27,350
300 Texaco, Inc............................................ 13,969
----------
316,043
----------
OIL/GAS PRODUCERS - 0.98%
1,300 Apache Corp............................................ 25,919
1,700 Ultramar Diamond Shamrock.............................. 33,575
----------
59,494
----------
PAPER/FOREST PRODUCTS - 0.45%
1,500 Louisiana Pacific Corp................................ 27,563
----------
POLLUTION CONTROL - 0.81%
1,000 Waste Management, Inc................................. 48,875
----------
PUBLISHING/PRINTING - 1.01%
1,800 Deluxe Corp........................................... 60,975
----------
RAILROAD - 0.82%
1,500 Burlington Northern Santa Fe.......................... 49,688
----------
RESTAURANTS - 1.23%
1,200 * Tricon Global Restaurants, Inc........................ 74,400
----------
SECURITIES RELATED - 2.53%
800 Lehman Brothers Holdings, Inc......................... 42,400
500 Merrill Lynch & Co., Inc.............................. 38,375
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SECURITIES RELATED - Continued
800 Morgan Stanley Dean Witter Discover.................... $ 72,400
----------
153,175
----------
TELECOMMUNICATIONS - 1.36%
1,000 * MCI Worldcom, Inc. .................................... 82,500
----------
UTILITIES - COMMUNICATION - 12.67%
2,400 AT&T - Liberty Media Group............................. 197,100
1,000 Ameritech Corp. ....................................... 65,375
2,500 Bell Atlantic Corp. ................................... 143,594
3,000 BellSouth Corp. ....................................... 138,750
1,500 GTE Corp. ............................................. 97,312
2,400 SBC Communications, Inc. .............................. 126,900
----------
769,031
----------
UTILITIES - ELECTRIC - 5.59%
1,000 Allegheny Energy, Inc. ................................ 29,687
900 Ameren Corp. .......................................... 33,580
1,000 Baltimore Gas and Electric Co. ........................ 25,625
1,000 * Calenergy, Inc. ....................................... 28,063
1,300 Central & South West Corp. ............................ 32,256
1,100 Cinergy Corp. ......................................... 32,106
1,300 Conectiv, Inc. ........................................ 27,544
800 DTE Energy Co. ........................................ 31,600
1,100 FirstEnergy Corp. ..................................... 32,175
900 GPU, Inc. ............................................. 35,888
800 Public Service Enterprise Group, Inc................... 30,400
----------
338,924
----------
UTILITIES - GAS DISTRIBUTION - 0.47%
1,600 MCN Energy Group, Inc. ................................ 28,500
----------
TOTAL COMMON STOCK
(Cost $5,214,453)...................................... 6,026,777
----------
TOTAL INVESTMENT
(Cost $5,214,453) - 99.36%............................. 6,026,777
Other assets less liabilities,
net - 0.64%............................................ 38,580
----------
NET ASSETS (equivalent
to $12.14 per share on
499,500 shares
outstanding) - 100.00%................................. $6,065,357
----------
*Non-income producing
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited authorized shares, 499,500 shares outstanding............. $ 4,995
Additional paid in capital.......................................... 4,983,466
Undistributed net realized gain on securities....................... 264,507
Undistributed net investment income................................. 65
Unrealized appreciation of securities............................... 812,324
----------
NET ASSETS APPLICABLE TO
SHARES OUTSTANDING.................................................. $6,065,357
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
22 LARGE CAP VALUE FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Dividends.......................................................... $ 53,149
Interest........................................................... 2,341
----------
Total investment income........................................... 55,490
----------
EXPENSES:
Advisory fees...................................................... 14,323
Custodian fees..................................................... 10,671
Administrative service fee......................................... 7,162
Audit fees and tax services........................................ 6,827
Trustees' fees and expenses........................................ 1,883
Report to shareholders............................................. 595
Accounting services................................................ 859
Pricing services................................................... 580
Miscellaneous...................................................... 272
----------
Total expenses.................................................... 43,172
Expense reimbursement (see Note 3)................................ (19,395)
----------
Net expenses...................................................... 23,777
----------
NET INVESTMENT INCOME.............................................. 31,713
----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities.................................... 264,507
Net unrealized appreciation of securities during the period........ 812,324
----------
Net realized and unrealized gain on securities during the period.. 1,076,831
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... $1,108,544
----------
</TABLE>
STATEMENT OF CHANGE IN NET ASSETS
<TABLE>
<CAPTION>
For the For the period
six months ended August 26, 1998
February 28, 1999 to August 31, 1998
-------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income..................... $ 31,713 $ -
Net realized gain on securities........... 264,507 -
Net unrealized appreciation of securities
during the period........................ 812,324 -
-------------------------------------
Increase in net assets resulting from
operations.............................. 1,108,544 -
-------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income..................... (31,648) -
Net realized gain on securities........... - -
-------------------------------------
Decrease in net assets resulting from
distributions
to shareholders......................... (31,648) -
-------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................. 5,083,555 3,867
Proceeds from shares issued for
distributions reinvested................. 31,648 -
-------------------------------------
5,115,203 3,867
Cost of shares repurchased................ (130,609) -
-------------------------------------
Increase in net assets resulting from
share transactions...................... 4,984,594 3,867
-------------------------------------
TOTAL INCREASE IN NET ASSETS.............. 6,061,490 3,867
NET ASSETS:
Beginning of period....................... 3,867 -
-------------------------------------
End of period (including undistributed net
investment income of $65 and $0)......... $6,065,357 $3,867
-------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold............................... 506,957 387
Shares issued for distributions
reinvested............................... 2,597 -
Shares repurchased........................ (10,441) -
-------------------------------------
Increase in shares outstanding........... 499,113 387
Shares outstanding:
Beginning of period...................... 387 -
-------------------------------------
End of period............................ 499,500 387
-------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 23
MID CAP VALUE FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 93.83%
AEROSPACE/DEFENSE - 1.44%
1,800 Raytheon Co., Class A.................................. $ 95,175
----------
AIRLINES - 1.36%
2,600 * Continental Airlines, Inc., Class B.................... 90,025
----------
AUTO - CARS - 3.83%
1,700 * Delphi Automotive Systems Corp......................... 31,344
1,200 General Motors Corp. .................................. 99,075
2,600 * General Motors Corp., Class H.......................... 122,688
----------
253,107
----------
AUTO - ORIGINAL EQUIPMENT - 0.91%
1,700 * Lear Corp. ............................................ 60,031
----------
AUTO - REPLACEMENT PARTS - 1.11%
2,100 AutoZone, Inc. ........................................ 73,500
----------
BANKS - OTHER - 1.48%
1,500 BankAmerica Corp. ..................................... 97,969
----------
BANKS - REGIONAL - 5.30%
3,700 Bank One Corp. ........................................ 198,875
1,900 Chase Manhattan Corp. ................................. 151,287
----------
350,162
----------
BEVERAGE - BREWERS/DISTRIBUTORS - 1.63%
1,400 Anheuser-Busch Companies, Inc. ........................ 107,362
----------
BROADCASTING - 2.56%
3,100 * Media One Group, Inc. ................................. 168,950
----------
CHEMICAL - MAJOR - 0.54%
700 E.I. du Pont de Nemours and Co. ....................... 35,919
----------
CHEMICAL - MISCELLANEOUS - 1.43%
2,700 Praxair, Inc. ......................................... 94,331
----------
CONTAINERS - METAL/GLASS - 0.69%
1,900 * Owens-Illinois, Inc. .................................. 45,481
----------
DRUGS - 5.31%
2,500 * ALZA Corp. ............................................ 131,094
2,500 American Home Products Corp. .......................... 148,750
1,700 * Centocor, Inc. ........................................ 70,656
----------
350,500
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 0.72%
1,000 * Teradyne, Inc. ........................................ $ 47,625
----------
FINANCE COMPANIES - 1.23%
2,000 Household International, Inc. ......................... 81,250
----------
FINANCIAL SERVICES - 1.82%
3,200 Countrywide Credit Industries, Inc. ................... 121,200
----------
FOODS - 5.12%
3,200 ConAgra, Inc. ......................................... 96,400
400 Diageo Plc ............................................ 18,100
3,200 Nabisco Holdings Corp Class A.......................... 142,000
3,000 Sara Lee Corp. ........................................ 81,562
----------
338,062
----------
GOVERNMENT SPONSORED - 2.40%
3,700 SLM Holding Corp. ..................................... 158,637
----------
HEALTHCARE - 1.03%
1,000 Mckesson HBOC, Inc. ................................... 68,000
----------
HOSPITAL MANAGEMENT - 1.25%
4,200 * Tenet Healthcare Corp. ................................ 82,688
----------
HOSPITAL SUPPLIES - 4.32%
2,200 Baxter International, Inc. ............................ 154,825
2,400 Becton, Dickinson and Co. ............................. 80,400
1,900 * Boston Scientific Corp. ............................... 50,350
----------
285,575
----------
INFORMATION PROCESSING - 0.86%
3,700 Parametric Technology Corp. ........................... 56,887
----------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 6.60%
1,600 Hewlett Packard Co. ................................... 106,300
800 International Business Machine......................... 136,000
2,400 * Quantum Corp. ......................................... 39,450
2,800 Xerox Corp. ........................................... 154,525
----------
436,275
----------
INFORMATION PROCESSING -
DATA SERVICES - 1.85%
2,900 Computer Associates International...................... 121,800
----------
INSURANCE - CASUALTY - 0.33%
400 NAC Re Corp. .......................................... 21,625
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INSURANCE - LIFE - 1.23%
1,100 Aetna, Inc. ........................................... $ 81,469
----------
INSURANCE - MISCELLANEOUS - 1.20%
2,900 Ace Limited............................................ 79,025
----------
INSURANCE - MULTILINE - 4.14%
800 Allstate Corp. ........................................ 30,000
2,400 CIGNA Corp. ........................................... 188,400
900 XL Capital Limited..................................... 55,125
----------
273,525
----------
LEISURE TIME - 1.06%
3,600 * Mirage Resorts, Inc. .................................. 70,200
----------
LODGING - 0.79%
4,800 Host Marriott Corp. ................................... 51,900
----------
MERCHANDISE - SPECIALTY - 2.29%
1,800 * Consolidated Stores Corp. ............................. 45,338
1,900 Tandy Corp. ........................................... 105,688
----------
151,026
----------
METALS - STEEL - 0.76%
2,300 AK Steel Holding Corp. ................................ 50,169
----------
OIL - INTEGRATED INTERNATIONAL - 2.51%
700 Chevron Corp. ......................................... 53,813
2,400 Texaco Inc. ........................................... 111,750
----------
165,563
----------
OIL - SERVICES - 1.26%
2,700 McDermott International, Inc. ......................... 53,831
600 Schlumberger, Ltd. .................................... 29,138
----------
82,969
----------
PUBLISHING - NEWS - 2.04%
2,800 News Corp., Ltd. - ADR................................. 73,500
1,500 Scripps Co. ........................................... 61,500
----------
135,000
----------
PUBLISHING/PRINTING - 1.25%
1,800 Harcourt General, Inc. ................................ 82,462
----------
REAL ESTATE INVESTMENT TRUSTS - 0.71%
4,400 Indymac Mortgage Holdings.............................. 46,750
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
24 February 28, 1999 (Unaudited)
MID CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SECURITIES RELATED - 0.89%
650 Morgan Stanley Dean Witter Discover................... $ 58,825
----------
SEMICONDUCTORS - 1.22%
900 Texas Instruments, Inc. .............................. 80,269
----------
TELECOMMUNICATIONS - 6.25%
3,000 * Loral Space & Communications Ltd...................... 54,000
2,100 * MCI Worldcom Inc...................................... 173,250
3,200 Northern Telecom Ltd.................................. 185,800
----------
413,050
----------
TOBACCO - 0.71%
1,200 Philip Morris Companies, Inc. ........................ 46,950
----------
UTILITIES - COMMUNICATION - 3.52%
500 AT&T - Liberty Media Group ........................... 41,062
1,300 Bell Atlantic Corp. .................................. 74,669
1,800 GTE Corp. ............................................ 116,775
----------
232,506
----------
UTILITIES - ELECTRIC - 3.83%
1,000 PG&E Corp. ........................................... 31,500
2,800 Texas Utilities Co. .................................. 118,825
2,900 Unicom Corp. ......................................... 103,131
----------
253,456
----------
UTILITIES - GAS, DISTRIBUTION - 1.04%
3,300 Tosco Corp. .......................................... 68,269
----------
UTILITIES - GAS, PIPELINE - 2.02%
3,600 Williams Companies, Inc. ............................. 133,200
----------
TOTAL COMMON STOCK
(Cost $5,691,373)..................................... 6,198,719
----------
PAR
VALUE
---------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 7.16%
CHEMICAL - MAJOR - 2.66%
$176,000 Eastman Chemical Co., 5.00% due
03/01/99.............................................. 176,000
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
OIL/GAS PRODUCERS - 4.50%
$297,000 Sonat, Inc., 4.98% due
03/01/99................................................ $ 297,000
----------
TOTAL CORPORATE SHORT TERM
(Cost $473,000) - 7.16%................................. 473,000
----------
TOTAL INVESTMENTS
(Cost $6,164,373) - 101.00%............................. 6,671,719
Other assets less liabilities,
net - (1.00%)........................................... (30,853)
----------
NET ASSETS - (equivalent
$12.37 per share on
536,869 shares
outstanding) - 100.00%.................................. $6,640,866
----------
*Non-income producing
</TABLE>
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share, unlimited
shares authorized, 536,869 shares outstanding.................... $ 5,369
Additional paid in capital......................................... 5,446,209
Undistributed net realized gain on securities...................... 682,018
Accumulated net investment loss.................................... (76)
Unrealized appreciation of securities.............................. 507,346
----------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING........................ $6,640,866
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
MID CAP VALUE FUND - FINANCIAL STATEMENTS (Unaudited) 25
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Dividends........................................................... $ 59,177
Interest............................................................ 6,007
----------
Total investment income............................................ 65,184
----------
EXPENSES:
Advisory fees....................................................... 21,805
Custodian fees...................................................... 10,680
Administrative service fee.......................................... 7,268
Audit fees and tax services......................................... 6,928
Trustees' fees and expenses......................................... 1,911
Report to shareholders.............................................. 647
Accounting services................................................. 872
Pricing services.................................................... 586
Miscellaneous....................................................... 277
----------
Total expenses..................................................... 50,974
Expense Reimbursement (see Note 3)................................. (19,865)
----------
Net expenses....................................................... 31,109
----------
NET INVESTMENT INCOME............................................... 34,075
----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities..................................... 821,822
Net unrealized appreciation of securities during the period......... 507,346
----------
Net realized and unrealized gain on securities during the period... 1,329,168
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................... $1,363,243
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the period
six months ended August 26, 1998
February 28, 1998 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................... $ 34,075 $ -
Net realized gain on securities.......... 821,822 -
Net unrealized appreciation of securities
during the period........................ 507,346 -
------------------------------------
Increase in net assets resulting from
operations.............................. 1,363,243 -
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................... (34,151) -
Net realized gain on securities ......... (139,804) -
------------------------------------
Decrease in net assets resulting from
distributions to shareholders........... (173,955) -
-------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................ 5,352,737 5,267
Proceeds from shares issued for
distributions reinvested................. 173,955 -
------------------------------------
5,526,692 5,267
Cost of shares repurchased............... (80,381) -
------------------------------------
Increase in net assets resulting from
share transactions...................... 5,446,311 5,267
------------------------------------
TOTAL INCREASE IN NET ASSETS............. 6,635,599 5,267
NET ASSETS:
Beginning of period...................... 5,267 -
------------------------------------
End of period (including undistributed
net investment income of $(76) and $0)... $6,640,866 $5,267
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold.............................. 528,596 527
Shares issued for distributions
reinvested............................... 14,159 -
Shares repurchased....................... (6,413) -
------------------------------------
Increase in shares outstanding ......... 536,342 527
Shares outstanding:
Beginning of period..................... 527 -
------------------------------------
End of period........................... 536,869 527
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
26 February 28, 1999 (Unaudited)
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 96.62%
AEROSPACE/DEFENSE - 0.45%
200 * Aviall, Inc. .......................................... $ 2,763
100 * Fairchild Corp. Class A................................ 1,206
200 Gencorp, Inc. ......................................... 4,013
100 * Moog, Inc. ............................................ 3,188
100 Primex Technologies, Inc. ............................. 4,156
200 * Remec, Inc. ........................................... 3,438
100 * Sequa Corp. Class A.................................... 4,705
----------
23,469
----------
AIRLINES - 0.75%
200 * Airtran Holdings, Inc. ................................ 675
200 * Alaska Air Group, Inc. ................................ 10,138
300 * American West Holdings Corp. Class B................... 5,100
400 Atlantic Coast Airlines Holdings....................... 12,850
100 Circle International Group, Inc. ...................... 1,713
100 * Mesa Airlines, Inc. ................................... 681
100 * Midwest Express Holdings, Inc. ........................ 2,688
100 SkyWest, Inc. ......................................... 3,144
400 * Transport World Airls, Inc ............................ 2,374
----------
39,363
----------
APPAREL & PRODUCTS - 1.39%
100 * Ann Taylor Stores Corp. ............................... 3,781
100 Blair Corp. ........................................... 1,919
200 Cato Corp. Class A..................................... 1,900
100 * Donna Karan International, Inc. ....................... 625
100 * Dress Barn, Inc. ...................................... 1,300
200 * Footstar, Inc. ........................................ 5,100
100 * Galey & Lord, Inc...................................... 469
100 * Gymboree Corp. ........................................ 1,050
8,200 * Hartmarx Corp. ........................................ 35,363
200 Kellwood Co. .......................................... 5,113
100 Land's End, Inc. ...................................... 3,031
100 * Oakley, Inc. .......................................... 831
200 Phillips-Van Heusen Corp. ............................. 1,213
100 Talbots, Inc. ......................................... 2,418
100 Tanger Factory Outlet Centers, Inc..................... 1,993
100 UniFirst Corp. ........................................ 2,250
100 * Urban Outfitters, Inc. ................................ 1,225
----------
69,581
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
APPLIANCES/FURNISHINGS - 0.52%
100 Bassett Furniture Industries........................... $ 2,150
300 * Griffon Corp. ......................................... 2,700
100 Haverty Furniture Cos, Inc............................. 2,250
400 Heilig-Meyers Co. ..................................... 2,600
100 Hussmann International, Inc. .......................... 1,412
300 Kimball International, Inc. Class B.................... 4,875
300 La-Z-Boy Chair Co. .................................... 5,588
300 * Metromedia International Group......................... 1,744
100 National Presto Industries............................. 3,700
----------
27,019
----------
AUTO - CARS - 0.17%
200 * Avis Rent A Car,Inc. .................................. 4,587
100 * Budget Group, Inc. .................................... 1,169
200 * Dollar Thirty Automotive .............................. 2,375
100 * United Auto Group, Inc. ............................... 738
----------
8,869
----------
AUTO - ORIGINAL EQUIPMENT - 0.56%
200 * Allen Telecom, Inc. ................................... 962
100 Arvin Industries, Inc. ................................ 3,625
200 * Breed Technologies, Inc. .............................. 812
200 * Delco Remy International, Inc. ........................ 1,975
100 Donaldson Co., Inc. ................................... 1,806
400 Mark IV Industries, Inc. .............................. 6,025
100 * Miller Industries, Inc. ............................... 538
100 Modine Manufacturing Co. .............................. 2,800
200 Superior Industries International, Inc. ............... 4,950
300 * Tower Automotive, Inc. ................................ 5,588
----------
29,081
----------
AUTO - REPLACEMENT PARTS - 1.64%
200 * Aftermarket Technology Corp. .......................... 1,056
1,450 Borg-Warner Automotive, Inc............................ 63,166
400 * Collins & Aikman Corp. ................................ 2,025
100 * Discount Auto Parts, Inc. ............................. 2,144
100 Kaydon Corp. .......................................... 3,050
100 Myers Industries, Inc. ................................ 1,950
100 Simpson Industries, Inc. .............................. 931
100 Smith A. O. Corp. ..................................... 2,131
100 * SPX Corp. ............................................. 5,713
100 Standard Motor Products, Inc. ......................... 2,144
100 Standard Products Co. Class A.......................... 1,500
----------
85,810
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BANKS - OTHER - 0.11%
150 First Merchants Corp................................... $ 3,319
100 Irwin Financial Corp. ................................. 2,269
----------
5,588
----------
BANKS - REGIONAL - 12.97%
200 AMCORE Financial, Inc. ................................ 4,668
100 Area Bancshares Corporation ........................... 2,663
100 Bsb Bancorp, Inc....................................... 2,688
100 BT Financial Corp. .................................... 2,838
300 BancorpSouth, Inc. .................................... 5,044
100 BancWest Corp. ........................................ 3,918
200 * Bank Plus Corp. ....................................... 875
200 Bank Atlantic Bancorp Class B.......................... 1,575
100 Banknorth Group, Inc. ................................. 2,675
100 CNB Bancshares, Inc. .................................. 4,019
200 Carolina First Corp. .................................. 4,125
125 Chemical Financial Corp. .............................. 3,859
200 Citizens Banking Corp. ................................ 6,600
105 Commerce Bancorp, Inc. ................................ 4,673
400 Commercial Federal Corp. .............................. 8,725
100 Commonwealth Bancorp, Inc. ............................ 1,500
100 Community Bank System, Inc. ........................... 2,618
2,000 Community First Bankshares............................. 39,000
100 Community Trust Bancorp................................ 2,341
100 Corus Bankshares, Inc. ................................ 3,288
200 Cullen/Frost Bankers, Inc. ............................ 9,463
100 F&M Bancorporation, Inc. .............................. 3,313
200 F&M National Corp. .................................... 5,563
100 FNB Corp. ............................................. 2,293
5,700 Fidelity National Corp................................. 44,887
100 First American Financial Corp. Class A................. 2,344
100 First Commerce Bancshares, Inc. Class B................ 2,625
200 First Commonwealth Financial........................... 4,313
200 First Federal Capital Corp ............................ 2,750
110 First Financial Bankshares............................. 3,548
1,150 First Midwest Bancorp, Inc. ........................... 42,047
100 * First Republic Bank.................................... 2,413
100 First United Bancshares................................ 1,638
100 First Western Bancorp, Inc. ........................... 3,100
100 GBC Bancorp............................................ 2,125
110 Grand Premier Financial, Inc. ......................... 1,238
100 HUBCO, Inc. ........................................... 3,281
400 Independence Community Bank............................ 6,100
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 27
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BANKS - REGIONAL - Continued
100 Independent Bank Corp. ................................ $ 1,505
4,100 InterWest Bancorp, Inc. ............................... 94,043
100 JeffBanks, Inc. ....................................... 2,075
105 NBT Bancorp, Inc. ..................................... 2,348
100 National Bancorp of Alaska............................. 2,925
200 Ocean Financial Corp. ................................. 2,975
105 Old National Bancorp Indiana........................... 4,869
200 One Valley Bancorp of West Va. ........................ 6,500
100 * PFF Bancorp, Inc. ..................................... 1,750
200 Peoples Bancorp, Inc. ................................. 1,950
3,150 Premier Bancshares, Inc. .............................. 63,000
100 Riggs National Corp. .................................. 1,850
300 Roslyn Bancorp, Inc. .................................. 4,892
300 St. Paul Bancorp, Inc. ................................ 6,563
100 Sterling Bancorp....................................... 2,074
200 Susquehanna Bancshares, Inc. .......................... 3,613
2,000 UMB Financial Corp. ................................... 87,750
200 UST Corp. ............................................. 4,187
2,200 United Bankshares, Inc., WV............................ 53,075
110 United National Bancorp................................ 2,516
100 U.S. Bancorp, Inc. .................................... 1,763
100 Vermont Financial Services............................. 2,819
1,900 Webster Financial Corp. ............................... 58,069
110 West Coast Bancorp..................................... 2,173
200 Westamerica Bankcorporation............................ 6,700
100 Westcorp............................................... 825
100 Western Bancorp........................................ 3,080
100 Whitney Holding Corp. ................................. 3,275
----------
679,896
----------
BEVERAGE - BREWERS/DISTRIBUTORS - 1.74%
1,300 * Canandaigua Brands, Inc. Class A....................... 69,388
300 Coors Adolph, Class B.................................. 17,868
100 * Robert Mondavi Corp. Class A........................... 3,438
----------
90,694
----------
BROADCASTING - 1.10%
100 * Adelphia Communications Corp., Class A................. 5,638
200 * ANTEC Corp. ........................................... 5,574
900 * Cox Radio, Inc. Class A................................ 39,713
100 * Jones Intercable, Inc. ................................ 4,050
100 * On Command Corp. ...................................... 1,000
200 * Paxson Communications Corp. ........................... 1,650
----------
57,625
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BUILDING MATERIALS - 3.74%
200 Apogee Enterprises, Inc. .............................. $ 1,750
800 Centex Construction Production ........................ 28,550
100 * Dal-Tile International, Inc. .......................... 919
200 Fedders USA, Inc. ..................................... 1,100
100 Florida Rock Industries, Inc. ......................... 2,800
100 * Giant Cement Holding, Inc. ............................ 1,963
200 Interface, Inc. Class A ............................... 1,906
2,600 Lone Star Industries, Inc. ............................ 85,800
2,650 * Nortek, Inc. .......................................... 68,900
100 Texas Industries, Inc. ................................ 2,462
----------
196,150
----------
CHEMICAL - MAJOR - 0.17%
160 Albemarle Corp. ....................................... 3,780
100 Chemed Corp. .......................................... 2,955
200 * Polymer Group, Inc. ................................... 2,013
----------
8,748
----------
CHEMICAL - MISCELLANEOUS - 1.01%
100 * Airgas, Inc. .......................................... 900
100 Cambrex Corp. ......................................... 2,393
200 ChemFirst, Inc. ....................................... 3,800
200 Dexter Corp. .......................................... 5,550
400 Ethyl Corp. ........................................... 1,950
200 Ferro Corp. ........................................... 4,275
100 * Foamex International, Inc. ............................ 962
100 H.B. Fuller Co. ....................................... 4,238
100 General Chemical Group, Inc. .......................... 1,537
200 Geon, Co. ............................................. 4,563
100 Georgia Gulf Corp. .................................... 1,513
100 Lawter International, Inc. ............................ 713
300 M.A. Hanna Co. ........................................ 3,300
200 Minerals Technologies Inc. ............................ 8,588
100 NL Industries, Inc. ................................... 968
100 * Octel Corp. ........................................... 1,344
100 OM Group, Inc. ........................................ 2,906
200 A. Schulman, Inc. ..................................... 3,300
----------
52,800
----------
CONGLOMERATES - 0.28%
300 Alexander & Baldwin, Inc. ............................. 5,925
100 * MAXXAM, Inc. .......................................... 5,850
100 * PEC Israel Economic Corp. ............................. 2,931
----------
14,706
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CONSUMER FINANCE - 0.18%
300 * Arcadia Financial Ltd. ................................ $ 1,144
100 Chittenden Corp. ...................................... 2,750
200 * IMC Mortgage Co. ...................................... 81
200 WesBanco, Inc. ........................................ 5,725
----------
9,700
----------
CONTAINERS - METAL/GLASS - 0.39%
100 AptarGroup, Inc. ...................................... 2,738
200 Ball Corp. ............................................ 8,374
100 CLARCOR, Inc. ......................................... 1,825
100 * CSS Industries, Inc. .................................. 2,550
100 Greif Brothers Corp., Class A.......................... 2,813
100 * Silgan Holdings, Inc. ................................. 2,219
----------
20,519
----------
CONTAINERS - PAPER - 0.82%
1,200 Chesapeake Corp. ...................................... 37,800
100 Rock-Tenn Co., Class A................................. 1,725
200 * Shorewood Packaging Corp. ............................. 3,638
----------
43,163
----------
COSMETICS/TOILETRIES - 0.05%
200 * Playtex Products, Inc. ................................ 2,825
----------
DRUGS - 0.59%
100 ALPharma Inc., Class A................................. 3,788
100 Bindley Western Industries ............................ 2,631
200 Carter-Wallace, Inc. .................................. 3,275
300 * Gensia, Inc. .......................................... 1,388
100 * Guilford Pharmaceuticals, Inc. ........................ 1,268
100 Herbalife International, Inc., Class A................. 1,338
500 * IVAX Corp. ............................................ 7,375
100 * Neurogen Corp. ........................................ 1,187
200 * Regeneron Pharmaceuticals, Inc. ....................... 1,550
200 * Roberts Pharmaceutical Corp. .......................... 4,525
100 * Vertex Pharmaceuticals, Inc. .......................... 2,350
----------
30,675
----------
ELECTRICAL EQUIPMENT - 0.61%
400 Avista Corp ........................................... 6,550
200 * BancTec, Inc. ......................................... 2,813
100 Belden, Inc. .......................................... 1,806
100 * Benchmark Electronics, Inc ............................ 3,000
100 DT Industries, Inc. ................................... 1,100
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
28 February 28, 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 * Esterline Technologies Corp. ...................... $ 1,713
100 General Cable Corp. ............................... 1,881
100 * Hutchinson Technology, Inc. ....................... 3,113
300 * Intergraph Corp. .................................. 1,659
100 Juno Lighting, Inc. ............................... 2,056
300 * Kemet Corp. ....................................... 3,300
100 * Kent Electronics Corp. ............................ 1,138
100 Thomas Industries Inc. ............................ 1,706
----------
31,835
----------
ELECTRONIC INSTRUMENTS - 3.21%
100 Analogic Corp. .................................... 3,774
100 BMC Industries..................................... 488
100 * Checkpoint Systems, Inc. .......................... 875
100 * Evans & Sutherland Computer........................ 1,600
100 Gerber Scientific, Inc. ........................... 1,863
100 * Hadco Corp. ....................................... 3,188
100 Harman International Industries.................... 3,825
300 * Imation Corp. ..................................... 4,650
500 * Integrated Device Technology....................... 3,219
100 * Marshall Industries................................ 1,425
300 Methode Electronics, Inc., Class A................. 3,150
1,800 National Computer Systems, Inc. ................... 57,656
100 Park Electrochemical Corp.......................... 2,712
2,500 * Performance Food Group Co.......................... 65,000
200 Pioneer-Standard Electronics....................... 1,550
200 Pittston Bax Group................................. 1,438
300 * Read-Rite Corp. ................................... 2,550
400 * Sensormatic Electronics Corp. ..................... 4,200
400 * Vishay Intertechnology, Inc. ...................... 5,175
----------
168,338
----------
ENTERTAINMENT - 0.34%
300 * Ascent Entertainment Group......................... 3,263
200 * Aztar Corp. ....................................... 974
200 * Florida Panthers Holdings, Inc. ................... 2,038
100 Gaylord Entertainment Co. ......................... 2,493
100 * GTECH Holdings Corp. .............................. 2,263
100 * Marvel Enterprises Inc............................. 556
100 * SFX Entertainment, Inc., Class A................... 6,113
----------
17,700
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
FERTILIZERS - 0.06%
200 Mississippi Chemical Corp. ........................ $ 2,050
200 Terra Industries, Inc. ............................ 988
----------
3,038
----------
FINANCE COMPANIES - 0.22%
200 * Aames Financial Corp. ............................. 413
200 * Credit Acceptance Corp. ........................... 1,200
100 Freedom Securities Corp. .......................... 1,525
100 * Headlands Mortgage Company......................... 1,888
200 * Imperial Credit Industries, Inc.................... 1,725
300 Phoenix Investment Partners, Ltd................... 2,231
100 Resource Bancshares Mortgage
Group, Inc......................................... 1,400
200 * UniCapital Corp.................................... 1,163
----------
11,545
----------
FINANCIAL SERVICES - 0.64%
200 Advanta Corp. ..................................... 2,338
100 D & N Financial Corp. ............................. 2,450
100 EVEREN Capital Corp................................ 2,150
800 * HealthCare Financial Partners ..................... 20,900
200 Richmond Count Financial Corp. .................... 3,088
100 Southwest Securities Group, Inc. .................. 2,880
----------
33,806
----------
FOODS - 4.53%
100 * Agribrands International, Inc. .................... 3,100
3,900 * Aurora Foods, Inc. ................................ 63,131
200 Imperial Sugar Co. ................................ 1,438
300 Chiquita Brands International...................... 2,588
200 Corn Products International, Inc. ................. 4,700
1,000 Earthgrains Co. ................................... 24,563
200 International Multifoods Corp. .................... 4,325
100 Interpool, Inc. ................................... 1,425
3,500 Lance, Inc. ....................................... 57,750
100 Michael Foods, Inc. ............................... 1,850
170 * Ralcorp Holdings, Inc. ............................ 3,028
200 Smucker, J.M. Co., Class A......................... 4,750
2,800 Smucker, J.M. Co., Class B......................... 57,050
300 Universal Foods Corp. ............................. 6,806
100 * Vlasic Foods International, Inc. .................. 1,219
----------
237,723
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
FOOTWEAR - 0.13%
100 Brown Group, Inc. ................................. $ 1,562
100 Justin Industries, Inc. ........................... 1,068
200 * Nine West Group, Inc. ............................. 4,488
----------
7,118
----------
FREIGHT - 0.22%
100 Air Express International Corp. ................... 1,756
100 * Kirby Corp. ....................................... 1,700
200 * Kitty Hawk, Inc. .................................. 1,681
200 Overseas Shipholding Group. ....................... 2,438
100 * SEACOR SMIT........................................ 3,938
----------
11,513
----------
GOLD MINING - 0.05%
100 * Getchell Gold Corp. ............................... 2,594
----------
HARDWARE & TOOLS - 0.04%
100 Barnes Group, Inc. ................................ 1,906
----------
HEALTHCARE - 2.54%
100 * American Oncology Resources ....................... 1,000
100 * American Retirement Corp........................... 1,594
300 * Apria Healthcare Group, Inc. ...................... 2,681
103 Block Drug Co., Inc., Class A ..................... 4,017
300 * Genesis Health Ventures, Inc. ..................... 1,650
20 * LTC Healtcare, Inc. ............................... 51
100 * Mariner Post-Acute Network, Inc. .................. 219
2,400 * NCS HealthCare, Inc., Class A ..................... 34,050
400 * NovaCare, Inc. .................................... 850
200 * PhyCor, Inc. ...................................... 1,088
100 * Physician Reliance Network, Inc.................... 906
45 * Priority Healthcare Corp. ......................... 1,743
100 * Respironics, Inc. ................................. 1,281
100 * Rural/Metro Corp. ................................. 894
1,800 * Sierra Health Services, Inc. ...................... 25,875
300 * Sun Healthcare Group, Inc. ........................ 413
200 * Sunrise Medical, Inc. ............................. 1,450
1,300 * Universal Health Services ......................... 52,813
500 * Vencor, Inc. ...................................... 938
----------
133,513
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 29
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
HEAVY DUTY TRUCKS/PARTS - 1.27%
200 Bandag, Inc. ...................................... $ 6,338
100 Detroit Diesel Corp. .............................. 2,156
200 Federal Signal Corp. .............................. 4,688
2,000 * Terex Corp. ....................................... 51,250
100 Titan International, Inc. ......................... 743
100 Wabash National Corp. ............................. 1,231
----------
66,406
----------
HOME BUILDERS - 0.51%
100 Cavalier Homes, Inc. .............................. 1,000
200 D R Horton, Inc. .................................. 3,188
100 * Del Webb Corp. .................................... 2,250
300 Kaufman & Broad Home Corp. ........................ 6,750
100 Pulte Corp. ....................................... 2,406
100 Ryland Group, Inc. ................................ 2,550
100 Standard Pacific Corp. ............................ 1,237
200 * Toll Brothers, Inc. ............................... 3,925
100 * U.S. Home Corp. ................................... 3,450
----------
26,756
----------
HOSPITAL MANAGEMENT - 0.12%
100 * American HomePatient, Inc. ........................ 244
100 * DVI, Inc .......................................... 1,394
400 * Medaphis Corp. .................................... 1,300
400 Ventas, Inc. ...................................... 3,225
----------
6,163
----------
HOSPITAL SUPPLIES - 1.94%
100 Arrow International, Inc. ......................... 2,455
200 * Coherent, Inc. .................................... 2,988
100 * CONMED Corp. ...................................... 3,088
100 * Datascope Corp. ................................... 2,612
100 Diagnostic Products Corp. ......................... 2,650
6,800 Owens & Minor, Inc. ............................... 86,700
100 * PSS World Medical, Inc. ........................... 1,138
----------
101,631
----------
HOUSEHOLD PRODUCTS - 0.14%
100 Church & Dwight Co., Inc. ......................... 4,175
100 Libbey, Inc. ...................................... 2,981
----------
7,156
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
HUMAN RESOURCES - 0.09%
100 * Interim Services, Inc. ................................ $ 1,900
500 Olsten Corp. .......................................... 3,094
----------
4,994
----------
INFORMATION PROCESSING - BUSINESS SOFTWARE - 0.11%
100 * Fritz Companies, Inc................................... 744
400 * Informix Corp. ........................................ 3,500
100 * Mobius Management Systems, Inc ........................ 1,456
----------
5,700
----------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 0.08%
100 * Decisionone Holdings Corp. ............................ 244
400 * Komag, Inc. ........................................... 2,800
100 * MEMC Electronic Materials, Inc......................... 725
400 * Merisel, Inc., Com .................................... 675
----------
4,444
----------
INFORMATION PROCESSING -
COMPUTER SERVICES -0.03%
100 * Nichols Research Corp. ................................ 1,763
----------
INFORMATION PROCESSING - DATA SERVICES - 1.75%
200 * Anixter Internationall, Inc. .......................... 2,513
400 * Data General Corp. .................................... 5,525
300 * Diamond Multimedia Systems ............................ 2,100
200 * Information Resources, Inc. ........................... 1,675
2,900 * Mapics, Inc. .......................................... 31,356
500 * Mentor Graphics Corp. ................................. 7,000
300 * Oak Technology, Inc. .................................. 984
100 * Paxar Corp. ........................................... 850
100 * Paymentech, Inc. ...................................... 1,913
900 * Radisys Corp. ......................................... 23,063
300 * S3, Inc. .............................................. 2,644
100 * Sandisk Corp. ......................................... 2,800
300 * Sequent Computer Systems, Inc. ........................ 2,859
600 * Sybase, Inc............................................ 4,875
100 * Volt Information Sciences, Inc ........................ 1,869
----------
92,026
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
NETWORKING - 0.05%
100 * CHS Electronics, Inc. ................................. $ 700
200 * Picturetel Corp. ...................................... 1,634
100 * Shiva Corp. ........................................... 597
----------
2,931
----------
INSURANCE - CASUALTY - 0.75%
100 Acceptance Insurance Co., Inc. ........................ 1,712
100 Baldwin & Lyons, Inc. Class B ......................... 2,094
100 Capitol Transamerica Corp.............................. 1,550
100 Chartwell Re Corp...................................... 2,162
200 Commerce Group, Inc. .................................. 5,350
200 Frontier Insurance Group, Inc. ........................ 2,625
300 HCC Insurance Holdings, Inc. .......................... 5,213
100 * Highlands Insurance Group. ............................ 1,356
100 NAC Re Corp. .......................................... 5,406
100 Pma Capital Corp. ..................................... 1,994
100 * Risk Capital Holdings, Inc. ........................... 1,900
200 Selective Insurance Group ............................. 3,644
100 State Auto Financial Corp. ............................ 1,169
100 Trenwick Group, Inc. .................................. 2,900
100 Vesta Insurance Group, Inc. ........................... 531
----------
39,606
----------
INSURANCE - LIFE - 0.62%
200 ARM Financial Group, Inc., Class A..................... 3,113
100 American Heritage Life Invest. ........................ 2,200
100 American Medical Security Group. ...................... 1,450
100 The Guarantee Life Companies, Inc...................... 1,769
100 Life USA Holding, Inc. ................................ 1,144
200 Presidential Life Corp. ............................... 3,562
100 Reinsurance Group of America .......................... 6,444
300 * UICI .................................................. 6,900
200 * United Companies Financial ............................ 87
200 W.R. Berkley .......................................... 5,725
----------
32,394
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
30 February 28, 1999 (Unaudited)
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INSURANCE - MISCELLANEOUS - 0.92%
100 CMAC Investment Corp. ................................. $ 4,131
100 Capital Re Corp. ...................................... 1,675
100 Chicago Title Corporation. ............................ 3,506
100 Executive Risk, Inc. .................................. 7,025
100 Foremost Corporation of America ....................... 1,925
200 HSB Group, Inc. ....................................... 7,400
100 Harleysville Group .................................... 2,050
100 Hilb, Rogal & Hamilton Co. ............................ 1,731
100 Liberty Corp. ......................................... 5,044
100 MMI Companies, Inc. ................................... 1,488
300 * Mid Atlantic Med Services, Inc. ....................... 2,344
100 SCPIE Holdings, Inc. .................................. 2,975
300 Tig Holdings, Inc. .................................... 4,800
100 Zenith National Insurance Corp. ....................... 2,306
----------
48,400
----------
INSURANCE - MULTILINE - 0.50%
200 Alfa Corp. ............................................ 3,350
200 AmerUs Life Holdings, Inc. ............................ 4,200
100 Argonaut Group, Inc. .................................. 2,481
102 * Delphi Financial Group, Inc., Class A.................. 4,890
200 FBL Financial Group, Inc., Class A..................... 4,012
100 LandAmerica Financial Group............................ 3,594
110 * Medical Assurance, Inc. ............................... 3,259
300 * PennCorp Financial Group, Inc. ........................ 206
----------
25,992
----------
LEISURE TIME - 0.26%
300 * Handleman Co. ......................................... 3,881
200 * Hollywood Park, Inc. .................................. 1,775
100 * Scotts Co., Class A.................................... 3,238
100 * Silverleaf Resorts, Inc. .............................. 775
100 * Station Casinos, Inc. ................................. 1,000
100 * Vail Resorts, Inc. .................................... 1,725
100 Winnebago Industries, Inc. ............................ 1,375
----------
13,769
----------
LODGING - 0.33%
100 Deltic Timber Corp. ................................... 2,387
300 * Extended Stay America, Inc. ........................... 2,625
100 * Homestead Village Incorporated......................... 344
200 * Lodgian, Inc. ......................................... 812
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
LODGING - Continued
100 Marcus Corp. .......................................... $ 1,300
200 Meristar Hospitality Corp. ............................ 3,563
100 * NS Group, Inc. ........................................ 394
300 * Prime Hospitality Corp. ............................... 3,075
200 * Red Roof Inns, Inc. ................................... 2,713
----------
17,213
----------
MACHINE CONTRACT - 0.04%
100 * Rental Service Corp. .................................. 2,225
----------
MACHINE TOOLS - 0.24%
100 Gleason Corp. ......................................... 1,644
100 Hardinge, Inc. ........................................ 1,444
300 Milacron, Inc. ........................................ 5,344
100 OmniQuip International, Inc. .......................... 1,087
100 The L.S. Starrett Company.............................. 2,981
----------
12,500
----------
MACHINERY - AGRICULTURE - 0.06%
100 Toro Co. .............................................. 2,988
----------
MACHINERY - CONSTRUCTION &
CONTRACTS - 1.56%
100 Blount, Inc., Class A.................................. 2,581
100 * Calpine Corp. ......................................... 3,275
300 Foster Wheeler Corp. .................................. 3,750
2,450 Granite Construction, Inc. ............................ 60,178
100 * Insituform Technologies, Inc., Class A................. 1,487
100 * Jacobs Engineering Group, Inc. ........................ 3,956
200 Kaman Corp., Class A................................... 2,700
200 * Morrison Knudsen Corp. ................................ 1,938
100 T.J. International, Inc. .............................. 2,163
----------
82,028
----------
MACHINERY - INDUSTRIAL/SPECIALTY - 2.15%
200 AAR Corp. ............................................. 3,025
102 * Albany International Corp., Class A.................... 2,002
200 Applied Industrial Tech., Inc. ........................ 2,550
2,000 Applied Power, Inc., Class A........................... 48,250
100 Baldor Electric Co. ................................... 1,911
100 Burlington Coat Factory Warehouse...................... 1,288
200 Exide Corp. ........................................... 3,000
300 Flowserve Corp. ....................................... 4,969
200 Hughes Supply, Inc. ................................... 4,037
100 * Integrated Process Equipment........................... 1,124
100 * Ionics, Inc. .......................................... 2,787
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MACHINERY - INDUSTRIAL/SPECIALTY - Continued
100 JLG Industries, Inc. .................................. $ 1,405
200 * Kulicke & Soffa Industries............................. 5,075
200 Lilly Industries, Inc., Class A........................ 3,413
300 Lincoln Electric Holdings.............................. 6,150
100 Newport News Shipbuilding.............................. 2,893
100 Nordson Corp. ......................................... 5,950
100 Regal-Beloit Corp. .................................... 1,950
100 Robbins & Myers, Inc. ................................. 1,650
100 Scotsman Industries, Inc. ............................. 1,900
200 Stewart & Stevenson Services........................... 1,675
100 Tecumseh Products Co., Class A......................... 4,925
100 Watts Industries, Inc., Class A........................ 1,393
----------
113,322
----------
MEDICAL TECHNOLOGY - 2.38%
100 * AXYS Pharmaceuticals, Inc. ............................ 463
100 * Bio-Rad Laboratories, Inc. Class A..................... 2,000
100 * Haemonetics Corp. ..................................... 1,669
100 * Hologic, Inc. ......................................... 1,006
3,550 * Idexx Laboratories, Inc. .............................. 79,431
1,100 * Maxxim Med, Inc. ...................................... 25,025
200 * Pharmerica, Inc. ...................................... 1,125
200 * Quest Diagnostics, Inc. ............................... 4,275
100 * Scios Nova, Inc. ...................................... 925
100 * ThermoTrex Corp........................................ 600
89 West Pharmaceutical Services........................... 2,943
150 * Xomed Surgical Producsts, Inc. ........................ 5,456
----------
124,918
----------
MERCHANDISE - DRUG - 0.28%
100 * Duane Reade, Inc. ..................................... 3,025
200 Longs Drug Stores Corp. ............................... 7,237
500 * Perrigo Co. ........................................... 4,188
----------
14,450
----------
MERCHANDISE - SPECIALTY - 1.46%
100 Ames Department Stores, Inc. .......................... 3,000
200 Arctic Cat, Inc. ...................................... 1,550
200 Cash America International............................. 2,525
600 * Charming Shoppes, Inc. ................................ 2,025
200 * Copart, Inc. .......................................... 3,500
500 * Corporate Express, Inc. ............................... 2,687
100 * Department 56, Inc. ................................... 3,319
200 * Eagle Hardware & Garden, Inc. ......................... 7,512
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 31
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- ------------------------------------------------------------------------------
MERCHANDISE - SPECIALTY - Continued
100 * Earthshell Corp. .................................... $ 931
100 Enesco Group, Inc. .................................. 1,656
300 Fingerhut Companies, Inc. ........................... 7,369
100 * Franklin Covey Co. .................................. 1,194
100 * Gibson Greetings, Inc. .............................. 828
200 Hancock Fabrics, Inc. ............................... 1,388
100 Hancock Holding Co. ................................. 4,550
300 * Homebase, Inc. ...................................... 1,556
100 * Inacom Corp. ........................................ 1,550
100 K2, Inc. ............................................ 881
100 * Michaels Stores, Inc. ............................... 1,713
200 * MicroAge, Inc. ...................................... 1,694
200 * Micro Warehouse, Inc. ............................... 3,950
200 O'Sullivan Industries Holdings, Inc.................. 2,100
100 * Petco Animal Supplies, Inc. ......................... 806
100 Russ Berrie and Co., Inc. ........................... 2,475
200 * Seitel, Inc. ........................................ 1,913
100 South Jersey Industries, Inc. ....................... 2,431
300 * Spiegel, Inc., Class A............................... 2,138
300 * Sports Authority, Inc. .............................. 1,931
100 * West Marine, Inc. ................................... 944
200 * Zale Corp. .......................................... 6,625
----------
76,741
----------
MERCHANDISING - DEPARTMENT - 0.05%
100 * Maxim Group, Inc. ................................... 1,812
100 * Stein Mart, Inc. .................................... 913
----------
2,725
----------
MERCHANDISING - FOOD - 1.21%
300 Fleming Companies, Inc. ............................. 2,212
1,600 Great Atlantic & Pacific Tea......................... 50,500
100 * IHOP Corp. .......................................... 4,087
100 Ingles Markets, Inc., Class A........................ 1,194
200 Ruddick Corp. ....................................... 3,688
100 Smart & Final Inc. .................................. 881
100 * Zapata Corp.......................................... 963
----------
63,525
----------
MERCHANDISING - MASS - 1.08%
1,800 * ShopKo Stores, Inc. ................................. 56,700
----------
METALS - ALUMINUM - 0.13%
100 * ACX Technologies, Inc. .............................. 1,244
100 Century Aluminum Co. ................................ 550
200 Commonwealth Industries, Inc. ....................... 2,163
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
METALS - ALUMINUM - Continued
100 IMCO Recycling, Inc. .................................. $ 1,256
300 * Kaiser Aluminum Corp. ................................. 1,500
----------
6,713
----------
METALS - COPPER - 0.15%
200 ASARCO, Inc. .......................................... 2,825
35 * Essex International, Inc. ............................. 1,024
200 Southern Peru Copper Corp. ............................ 1,975
100 * Wolverine Tube, Inc. .................................. 1,987
----------
7,811
----------
METALS - MISCELLANEOUS - 0.27%
100 Brush Wellman, Inc. ................................... 1,437
100 Castle A. M. & Co. .................................... 1,362
100 Commercial Metals Co. ................................. 2,281
500 * Hecla Mining Co. ...................................... 1,813
100 Precision Castparts Corp. ............................. 3,713
100 * RTI International Metals............................... 1,063
100 * Steel Dynamics, Inc. .................................. 1,575
100 Titanium Metals Corp. ................................. 706
----------
13,950
----------
METALS - STEEL - 1.06%
300 AK Steel Holding Corp. ................................ 6,544
700 * Armco, Inc. ........................................... 3,500
900 * Bethlehem Steel Corp. ................................. 7,931
200 Birmingham Steel Corp. ................................ 825
100 Carpenter Technology Corp. ............................ 2,594
100 * Citation Corp. ........................................ 1,019
100 Cleveland-Cliffs, Inc. ................................ 3,706
100 Commercial Intertech Corp. ............................ 1,225
300 Inland Steel Industries, Inc. ......................... 5,475
100 Intermet Corp. ........................................ 1,250
700 LTV Corp. ............................................. 3,850
100 * Metals USA, Inc. ...................................... 913
200 * Mueller Industries, Inc. .............................. 4,225
200 National Steel Corp., Class B.......................... 1,650
200 Oregon Steel Mills, Inc. .............................. 1,912
100 Quanex Corp. .......................................... 1,750
100 Reliance Steel & Aluminium Co. ........................ 2,556
100 Roanoke Electric Steel Corp. .......................... 1,356
100 Rouge Industries Inc., Class A......................... 994
100 Valmont Industries, Inc. .............................. 1,178
100 * WHX Corp. ............................................. 869
----------
55,322
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MOBILE HOMES - 0.24%
100 Coachmen Industries, Inc. ............................. $ 2,025
150 * Monaco Coach Corp. .................................... 4,669
200 Oakwood Homes Corp. ................................... 3,225
100 Skyline Corp. ......................................... 2,925
----------
12,844
----------
MISCELLANEOUS - 2.80%
200 AMCOL International Corp. ............................. 1,900
100 * AMERCO, Inc. .......................................... 2,225
100 Amplicon, Inc. ........................................ 1,250
300 Arch Coal, Inc. ....................................... 3,281
200 * Associated Group, Inc., Class A........................ 9,963
1,500 * Aviation Sales Company................................. 67,969
100 * Avondale Industries, Inc. ............................. 3,088
2,500 * Brightpoint, Inc. ..................................... 37,188
100 * Building One Services Corp. ........................... 1,650
100 * CDNow, Inc. ........................................... 1,612
100 C. H. Robinson Worldwide, Inc. ........................ 2,625
100 Cabot Industrial Trust................................. 1,900
75 * Lakes Gaming, Inc. .................................... 684
200 M D C Holdings, Inc.................................... 3,562
100 * Integrated Electrical Services......................... 1,375
100 * Scott Technologies Inc ................................ 1,619
400 * Southland Corporation. ................................ 662
100 Westinghouse Air Brake Co. ............................ 1,981
100 Woodward Governor Co. ................................. 2,162
----------
146,696
----------
MULTIMEDIA - 0.97%
1,500 Meredith Corp. ........................................ 50,625
----------
NATURAL GAS - DIVERSIFIED - 0.82%
200 Atmos Energy Corp. .................................... 4,800
100 Bay State Gas Co. ..................................... 4,000
100 Eastern Enterprises.................................... 3,844
200 Laclede Gas Co. ....................................... 4,600
200 New Jersey Resources Corp. ............................ 6,987
400 * Seagull Energy Corp. .................................. 1,900
105 * Southern Union Co. .................................... 1,995
200 Southwest Gas Corp. ................................... 5,750
200 UGI Corp. ............................................. 4,062
200 WICOR, Inc. ........................................... 4,225
200 Western Gas Resources, Inc. ........................... 988
----------
43,151
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
32 February 28, 1999 (Unaudited)
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
OIL - INTEGRATED DOMESTIC - 0.70%
300 * Meridian Resource Corp. ............................... $ 619
6,400 * Santa Fe Energy Resources, Inc ........................ 33,600
300 * Tesoro Petroleum Corp. ................................ 2,400
----------
36,619
----------
OIL - SERVICE - PRODUCTS - 0.14%
200 * Global Industrial Technologies......................... 1,788
500 * Parker Drilling Co. ................................... 1,250
300 * Pride International, Inc. ............................. 1,500
100 SEMCO Energy, Inc. .................................... 1,575
100 * Trico Marine Services, Inc. ........................... 450
----------
6,563
----------
OIL - SERVICES - 0.25%
100 * Key Energy Services.................................... 369
200 Mascotech, Inc. ....................................... 3,025
100 * Oceaneering International, Inc ........................ 1,000
100 * Offshore Logistics, Inc. .............................. 872
100 Pennsylvania Enterprises, Inc. ........................ 2,250
200 * Pool Energy Services Co. .............................. 2,031
100 Range Resources Corp................................... 194
100 * UTI Energy Corp. ...................................... 581
200 * Unova, Inc. ........................................... 2,900
----------
13,222
----------
OIL/GAS PRODUCERS - 0.75%
300 * Benton Oil and Gas Co. ................................ 919
200 Cabot Oil & Gas Corp., Class A......................... 2,187
200 Devon Energy Corp. .................................... 4,687
300 Equitable Resources, Inc. ............................. 7,761
100 * Forcenergy, Inc. ...................................... 88
200 * Forest Oil Corp. ...................................... 1,275
100 * HS Resources, Inc...................................... 580
300 Helmerich & Payne, Inc. ............................... 4,894
200 * Louis Dreyfus Natural Gas Corp. ....................... 2,387
200 * Newfield Exploration Co. .............................. 3,250
200 * Nuevo Energy Co. ...................................... 1,400
100 * Plains Resources, Inc. ................................ 925
100 Pogo Producing Co. .................................... 924
200 Snyder Oil Corp. ...................................... 2,088
100 St. Mary Land & Exploration............................ 1,563
300 * Titan Exploration, Inc. ............................... 1,396
200 * Tom Brown, Inc. ....................................... 1,938
300 Vintage Petroleum, Inc. ............................... 1,331
----------
39,593
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
PAPER/FOREST PRODUCTS - 1.24%
100 * Boise Cascade Office Products Corp..................... $ 1,200
100 Caraustar Industries, Inc. ............................ 2,563
200 P. H. Glatfelter Co. .................................. 2,138
400 Longview Fibre Co. .................................... 4,525
200 Potlatch Corp. ........................................ 6,938
800 Rayonier Inc. ......................................... 32,750
100 Standard Register Co. ................................. 2,893
500 Unisource Worldwide, Inc. ............................. 3,500
100 Universal Forest Products.............................. 2,006
400 Wausau-Mosinee Paper Corp. ............................ 6,350
----------
64,863
----------
PHOTOGRAPHY - 0.07%
100 CPI Corp. ............................................. 2,188
100 * Ultratech Stepper, Inc. ............................... 1,578
----------
3,766
----------
POLLUTION CONTROL - 0.17%
300 Calgon Carbon Corp. ................................... 1,781
200 Dames & Moore, Inc. ................................... 1,975
225 * Safety Kleen........................................... 3,136
100 * URS Corp............................................... 1,963
----------
8,855
----------
PUBLISHING - NEWS - 0.06%
100 Hollinger International, Inc. ......................... 1,237
200 * Network Equipment Technologies......................... 1,788
----------
3,025
----------
PUBLISHING/PRINTING - 1.09%
100 American Business Products............................. 1,806
200 Banta Corp. ........................................... 4,263
300 Bowne & Co., Inc. ..................................... 4,180
100 Houghton Mifflin Co. .................................. 4,300
200 John H. Harland Co. ................................... 2,688
100 * Journal Register Co. .................................. 1,312
100 McClatchy Company, Class A............................. 3,200
100 * Scholastic Corp. ...................................... 4,925
100 * Scientific Games Holdings.............................. 1,744
300 * Valassis Communications, Inc. ......................... 14,400
300 Wallace Computer Svcs, Inc ............................ 6,788
300 * World Color Press, Inc. ............................... 7,444
----------
57,050
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
RAILROAD - 0.08%
100 Florida East Coast Industries.......................... $ 2,712
100 * Wisconsin Central Transport............................ 1,374
----------
4,086
----------
REAL ESTATE - 0.37%
200 Brandywine Realty Trust................................ 3,288
100 Capital Automotive REIT................................ 1,188
100 * Castle & Cooke, Inc. .................................. 1,550
100 Entertainment Properties............................... 1,713
100 Forest City Enterprises, Inc., Class A................. 2,150
200 LNR Property Corp. .................................... 3,675
125 Republic Bancorp Inc. ................................. 1,719
100 SL Green Realty Corp. ................................. 1,930
100 Tower Realty Trust, Inc. .............................. 1,950
----------
19,163
----------
REAL ESTATE INVESTMENT TRUSTS - 7.49%
100 Alexandria Real Estate Equitie......................... 2,925
100 Amli Residential Properties............................ 1,994
200 American Health Properties, Inc........................ 3,812
100 Associated Estates Reality............................. 1,044
200 Bedford Prpty Investors, Inc. ......................... 3,175
200 Berkshire Reality Co., Inc. ........................... 1,900
100 Boykin Lodging Company................................. 1,318
100 Bradley Real Estate, Inc. ............................. 1,913
300 BRE Properties, Inc., Class A.......................... 7,275
300 Burnham Pacific Properties............................. 3,019
500 CBL & Associates Properties............................ 12,469
300 Camden Poperty Trust................................... 7,350
500 * Capstead Mortgage Corp. ............................... 2,469
100 CenterPoint Properties Corp. .......................... 3,206
200 Center Trust Retail Properties......................... 1,988
200 Chateau Communities, Inc. ............................. 5,638
100 Chelsea GCA Properties................................. 3,056
200 Colonial Properties Trust.............................. 4,913
300 Commercial Net Lease Realty............................ 3,713
300 Cornerstone Reality Income............................. 2,869
400 * Criimi Mae, Inc. ...................................... 1,175
100 Crown American Realty Trust............................ 744
400 Developers Diversified Reality......................... 6,350
300 * Dynex Capital, Inc. ................................... 938
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 33
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - Continued
200 EastGroup Properties, Inc. ............................ $ 3,500
300 Equity Inns, Inc. ..................................... 2,831
100 Essex Property Trust, Inc. ............................ 2,825
300 Federal Reality Investment Trust....................... 6,619
400 Felcor Lodging Trust, Inc. ............................ 9,450
200 First Industrial Reality Trust......................... 5,175
300 First Union Real Estate................................ 1,238
300 Franchise Finance Corp. ............................... 6,600
200 Gables Residential Trust............................... 4,625
200 General Growth Properties.............................. 6,750
200 Glenborough Reality Trust, Inc ........................ 3,613
100 Glimcher Reality Trust................................. 1,480
100 Golf Trust of America, Inc. ........................... 2,412
100 Great Lakes REIT, Inc.................................. 1,512
100 Health Care Property Investors......................... 2,938
200 Health Care REIT, Inc.................................. 4,638
270 Healthcare Realty Trust, Inc. ......................... 5,230
100 Home Properties of NY, Inc. ........................... 2,456
200 Hospitality Properties Trust........................... 5,150
100 Impac Mortgage Holdings, Inc. ......................... 574
300 Imperial Credit Commercial Mortgage.................... 2,719
300 Innkeepers USA Trust................................... 3,113
100 IRT Property Co. ...................................... 905
100 Irvine Apartment Communities........................... 3,287
300 JDN Reality Corp. ..................................... 6,300
100 JP Reality, Inc. ...................................... 1,850
200 Kilroy Reality Corp. .................................. 4,312
200 Koger Equity, Inc. .................................... 2,738
100 LaSalle Hotel Properties............................... 1,194
100 Lexington Corporate Properties Trust................... 1,175
200 LTC Properties, Inc. .................................. 2,500
200 Manufactured Home Communities.......................... 4,650
200 Meridian Indust. Trust, Inc. .......................... 4,800
15 * Merry Land Properties Inc.............................. 83
100 MGI Properties......................................... 2,806
100 Mid-America Apartment Communities, Inc................. 2,224
100 National Golf Properties, Inc. ........................ 2,512
200 National Health Investors, Inc ........................ 5,100
3,650 Nationwide Health Properties........................... 65,700
640 New Plan Excel Realty Trust............................ 13,280
100 * Ocwen Asset Investment Corp. .......................... 519
200 Omega Healthcare Investors............................. 4,625
200 Prison Realty Corp..................................... 3,988
100 PS Business Parks, Inc. ............................... 2,313
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - Continued
100 Pacific Gulf Properties, Inc. ..................... $ 2,013
100 Parkway Properties, Inc. .......................... 2,638
200 Prentiss Properties Trust.......................... 4,000
400 Prime Retail, Inc. ................................ 3,200
200 Realty Income Corp. ............................... 4,363
300 Reckson Associates Realty Corp..................... 6,375
100 * Redwood Trust, Inc. ............................... 1,413
100 Regency Realty Corp. .............................. 2,025
100 RFS Hotel Investors, Inc. ......................... 1,169
100 * Security Capital Group............................. 1,225
200 Shurgard Storage Centers, Inc., Class A............ 4,950
100 Sovran Self Storage, Inc. ......................... 2,338
100 Storage Trust Realty............................... 2,150
200 Storage USA, Inc. ................................. 5,662
200 Summit Properties, Inc. ........................... 3,313
100 Sun Communities, Inc. ............................. 3,144
200 Sunstone Hotel Investors, Inc. .................... 1,600
300 Taubman Centers, Inc. ............................. 3,730
200 Thornburg Mortgage Asset Corp. .................... 1,888
100 TriNet Corporate Realty Trust...................... 2,519
100 U.S. Restaurant Properties, Inc. .................. 2,025
700 United Dominion Realty Trust....................... 6,913
100 Walden Residential Properties...................... 1,669
300 Washington Real Estate Investments Trust........... 4,931
100 Weeks Corp. ....................................... 2,700
200 * Wellsford Real Properties, Inc. ................... 1,900
200 Western Investment Real Estate..................... 2,213
200 Westfield America, Inc. ........................... 3,525
----------
393,153
----------
RESTAURANTS - 2.75%
200 * Advantica Restaurant Corp. ........................ 1,000
300 Applebees International, Inc. ..................... 7,781
2,750 Bob Evans Farms, Inc. ............................. 59,297
2,000 * Brinker International, Inc. ....................... 57,875
200 * Buffets, Inc. ..................................... 2,012
200 * Lone Star Steakhouse & Saloon...................... 1,813
200 Luby's Inc. ....................................... 2,837
200 Ruby Tuesday, Inc. ................................ 3,725
300 * Ryan's Family Steak Houses......................... 3,412
100 * Sbarro, Inc. ...................................... 2,525
100 * Sonic Corp. ....................................... 2,400
----------
144,677
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SAVINGS & LOAN - 1.23%
100 * Bankunited Financial Corp, Class A................. $ 706
100 Bay View Capital Corp. ............................ 1,994
100 Brookline Bancorp, Inc. ........................... 1,163
100 Dime Community Bancshares.......................... 2,206
100 Downey Financial Corp. ............................ 2,030
1,500 First Financial Holdings, Inc. .................... 27,844
100 First Washington Bancorp, Inc. .................... 2,131
200 * FirstFed Financial Corp. .......................... 3,388
100 JSB Financial, Inc. ............................... 5,588
200 MAF Bancorp, Inc. ................................. 4,706
100 * PBOC Holdings, Inc. ............................... 962
200 Provident Bankshares Corp. ........................ 5,150
100 Reliance Bancorp, Inc. ............................ 3,063
200 Staten Island Bancorp, Inc. ....................... 3,575
----------
64,506
----------
SECURITIES RELATED - 1.31%
100 Dain Rauscher Corp. ............................... 3,163
200 Enhanced Financial Services ....................... 4,738
100 * Hambrecht & Quist Group ........................... 2,662
1,000 Investors Financial Services ...................... 58,000
----------
68,563
----------
SEMICONDUCTOR EQUIPMENT - 0.11%
200 * LAM Research Corp.................................. 5,913
----------
SEMICONDUCTORS - 0.50%
500 * Cirrus Logic, Inc. ................................ 4,062
100 Cohu, Inc. ........................................ 2,362
600 * Cypress Semiconductor Corp. ....................... 5,738
100 * Electroglas, Inc. ................................. 1,290
300 * International Rectifier Corp. ..................... 2,063
200 * Silicon Valley Group Inc. ......................... 2,663
100 * Siliconix, Inc. ................................... 2,162
100 * Unitrode Corp. .................................... 1,363
300 * VLSI Technology, Inc. ............................. 4,650
----------
26,353
----------
TELECOMMUNICATIONS - 1.12%
200 * Aerial Communications, Inc......................... 1,400
100 * American Tower Corp., Class A...................... 2,681
100 * Cellular Communications of Puerto Rico............. 2,463
100 * CoreComm Limited................................... 3,738
100 * EchoStar Communications Corp., Class A............. 4,900
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
34 February 28, 1999 (Unaudited)
SMALL CAP VALUE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - Continued
400 * General Communication, Inc. ....................... $ 1,950
400 * Glenayre Technologies, Inc. ....................... 1,413
100 * ICG Communications, Inc. .......................... 1,881
100 * Metrocall, Inc. ................................... 400
100 * NTL, Inc. ......................................... 7,768
100 * Powertel, Inc. .................................... 1,300
2,200 * STAR Telecommunications, Inc. ..................... 28,600
----------
58,494
----------
TEXTILE - PRODUCTS - 0.31%
400 * Burlington Industries, Inc. ....................... 2,475
200 * Cone Mills Corp. .................................. 975
100 * Dan River Inc Class A.............................. 656
100 Guilford Mills, Inc. .............................. 1,237
100 * Lydall, Inc. ...................................... 950
100 * Quaker Fabric Corp. ............................... 400
200 Russell Corp. ..................................... 3,900
100 Springs Industries, Inc., Class A.................. 3,325
200 Wellman, Inc. ..................................... 1,863
----------
15,781
----------
TOBACCO - 0.14%
300 DIMON, Inc. ....................................... 1,313
100 * General Cigar Holdings, Inc. ...................... 730
200 Universal Corp. ................................... 5,438
----------
7,481
----------
TRUCKERS - 1.86%
200 * American Freightways Corp. ........................ 3,119
200 Arnold Industries, Inc. ........................... 3,050
200 * Consolidated Freightways Corp. .................... 2,900
100 * Landstar System, Inc. ............................. 3,771
100 * M.S. Carriers, Inc. ............................... 2,700
100 Roadway Express, Inc. ............................. 1,538
400 Rollins Truck Leasing Corp. ....................... 4,250
100 USFreightways Corp. ............................... 3,188
125 Varlen Corp Com.................................... 2,624
3,500 Werner Enterprises, Inc. .......................... 62,563
100 * Xtra Corp. ........................................ 3,988
200 * Yellow Corp. ...................................... 3,575
----------
97,266
----------
UTILITIES - COMMUNICATION - 0.19%
200 Aliant Communications, Inc. ....................... 7,975
100 PXRE Corp. ........................................ 2,188
----------
10,163
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
UTILITIES - ELECTRIC - 4.04%
200 Black Hills Corp. ................................. $ 4,500
100 Cleco Corp. ....................................... 2,937
200 Cmp Group Inc. .................................... 3,375
1,000 CILCORP, Inc. ..................................... 59,438
100 Commonwealth Energy System Co. .................... 3,613
100 Eastern Utilities Associates....................... 2,844
400 * El Paso Electric Co. .............................. 2,875
100 Empire District Electric Co. ...................... 2,318
200 Hawaiian Electric Industries....................... 6,975
300 Idacorp Inc. ...................................... 9,319
133 Indiana Energy, Inc. .............................. 2,660
100 Madison Gas & Electric Co. ........................ 2,012
200 Minnesota Power Inc. .............................. 8,038
300 Nevada Power Co. .................................. 7,181
2,300 Northwestern Corp. ................................ 55,344
100 Otter Tail Power Co. .............................. 3,706
300 Public Service Co. of NM........................... 4,613
300 Rochester Gas & Electric Corp. .................... 7,838
200 SIG Corp, Inc. .................................... 5,750
100 TNP Enterprises, Inc. ............................. 2,924
200 * Unisource Energy Corp. ............................ 2,313
100 United Illuminating Co. ........................... 4,438
300 Washington Gas Light Co. .......................... 7,180
----------
212,191
----------
UTILITIES - GAS, DISTRIBUTION - 0.72%
400 AGL Resources, Inc. ............................... 7,625
100 Colonial Gas Co. .................................. 3,431
100 Connecticut Energy Corp. .......................... 2,606
200 Energen Corp. ..................................... 2,800
100 NUI Corp. ......................................... 2,293
100 Northwest Natural Gas Co. ......................... 2,447
200 Piedmont Natural Gas Co., Inc. .................... 6,825
200 Public Service Co. of NC........................... 5,900
200 Southwestern Energy Co. ........................... 1,113
100 Yankee Energy Systems, Inc. ....................... 2,444
----------
37,484
----------
UTILITIES - GAS, PIPELINE - 0.29%
100 North Carolina Natural Gas......................... 3,200
200 ONEOK Inc. ........................................ 5,387
200 Peoples Energy Corp. .............................. 6,788
----------
15,375
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
UTILITIES - MISCELLANEOUS - 1.77%
100 Central Hudson Gas & Electric..................... $ 3,624
1,600 MDU Resources Group, Inc. ........................ 37,600
100 Orange and Rockland Utilities..................... 5,613
200 Sierra Pacific Resources.......................... 6,863
200 WPS Resources Corp. .............................. 5,950
2,700 * Walter Industries, Inc. .......................... 33,075
----------
92,725
----------
WATER SERVICES - 0.29%
100 California Water Service Group.................... 2,450
100 E'Town Corp. ..................................... 4,294
200 Philadelphia Suburban Corp. ...................... 4,350
200 United Water Resources............................ 3,850
----------
14,944
----------
TOTAL COMMON STOCK (Cost $5,093,609).............. 5,065,362
----------
PAR VALUE
---------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 2.69%
SEMICONDUCTORS - 2.69%
$141,000 Avnet, Inc., 4.85% due 03/01/99...... 141,000
----------
TOTAL CORPORATE SHORT TERM (Cost $141,000)........ 141,000
----------
TOTAL INVESTMENTS (Cost $5,234,609) - 99.31%...... 5,206,362
Other assets less liabilities, net - 0.69%........ 36,139
----------
NET ASSETS (equivalent to $10.17 per share on
515,453 shares outstanding) - 100.00%............. $5,242,501
----------
*Non-income producing
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 515,453 shares outstanding............. $ 5,155
Additional paid in capital.......................................... 5,165,383
Undistributed net realized gain on securities....................... 99,412
Undistributed net investment income................................. 798
Unrealized depreciation of securities............................... (28,247)
----------
NET ASSETS APPLICABLE TO
SHARES OUTSTANDING.................................................. $5,242,501
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
SMALL CAP VALUE FUND - FINANCIAL STATEMENTS (Unaudited) 35
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends............................................................ $ 52,928
Interest............................................................. 3,610
--------
Total investment income............................................. 56,538
--------
EXPENSES:
Advisory fees........................................................ 20,066
Custodian fees....................................................... 10,003
Administrative service fee........................................... 6,689
Audit fees and tax services.......................................... 6,377
Trustees' fees and expenses.......................................... 1,787
Pricing services..................................................... 542
Accounting services.................................................. 803
Report to shareholders............................................... 488
Miscellaneous........................................................ 252
--------
Total expenses...................................................... 47,007
Expense reimbursement (see Note 3).................................. (20,831)
--------
Net expenses........................................................ 26,176
--------
NET INVESTMENT INCOME................................................ 30,362
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain on securities...................................... 166,499
Net unrealized depreciation of securities during the period.......... (28,247)
--------
Net realized and unrealized gain on securities during the period..... 138,252
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $168,614
--------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the period
six months ended August 26, 1998
February 28, 1999 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................... $ 30,362 $ -
Net realized gain on securities.......... 166,499 -
Net unrealized depreciation of securities
during the period........................ (28,247) -
------------------------------------
Increase in net assets resulting from
operations.............................. 168,614 -
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: -
Net investment income.................... (29,564) -
Net realized gain on securities.......... (67,087) -
------------------------------------
Decrease in net assets resulting from
distributions to shareholders........... (96,651) -
------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................ 5,068,754 5,133
Proceeds from shares issued for
distributions reinvested................. 96,651 -
------------------------------------
5,165,405 5,133
Cost of shares repurchased............... - -
------------------------------------
Increase in net assets resulting from
share transactions...................... 5,165,405 5,133
------------------------------------
TOTAL INCREASE IN NET ASSETS............. 5,237,368 5,133
NET ASSETS:
Beginning of period...................... 5,133 -
------------------------------------
End of period (including undistributed
net investment income of $798 and $0).... $5,242,501 $5,133
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold.............................. 506,385 513
Shares issued for distributions
reinvested............................... 8,555 -
Shares repurchased....................... - -
------------------------------------
Increase in shares outstanding.......... 514,940 513
Shares outstanding:
Beginning of period..................... 513 -
------------------------------------
End of period .......................... 515,453 513
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
36 February 28, 1999 (Unaudited)
SOCIALLY RESPONSIBLE FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 98.66%
ADVERTISING - 0.37%
200 Interpublic Group Companies, Inc. ..................... $ 14,963
200 Omnicom Group, Inc. ................................... 13,250
----------
28,213
----------
AEROSPACE/DEFENSE - 0.06%
100 * Gulfstream Aerospace Corp. ............................ 4,475
----------
AIRLINES - 0.31%
200 AMR Corp. ............................................. 11,088
100 Delta Air Lines, Inc. ................................. 6,081
200 Southwest Airlines Co. ................................ 6,025
----------
23,194
----------
APPAREL & PRODUCTS - 0.09%
100 Cintas Corp. .......................................... 7,075
----------
AUTO - REPLACEMENT PARTS - 0.35%
100 Cooper Tire & Rubber Co................................ 1,975
350 Genuine Parts Co. ..................................... 10,478
300 Goodyear Tire & Rubber Co. ............................ 13,875
----------
26,328
----------
BANKS - NEW YORK CITY - 2.24%
700 Bank of New York Co., Inc. ............................ 24,456
1,900 Citigroup, Inc. ....................................... 111,625
300 J. P. Morgan & Co., Inc. .............................. 33,432
----------
169,513
----------
BANKS - OTHER - 3.85%
1,622 BankAmerica Corp. ..................................... 105,937
100 BankBoston Corp. ...................................... 4,044
100 Bankers Trust Corp .................................... 8,700
950 First Union Corp. ..................................... 50,647
400 Fleet Financial Group, Inc. ........................... 17,175
200 Mellon Bank Corp. ..................................... 13,525
350 National City Corp. ................................... 24,456
150 Providian Financial Corp. ............................. 15,319
1,400 Wells Fargo Company.................................... 51,450
----------
291,253
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
BANKS - REGIONAL - 3.44%
1,205 BankOne Corp. ......................................... $ 64,769
700 Chase Manhattan Corp. ................................. 55,737
100 Comerica Inc. ......................................... 6,625
250 Fifth Third Bancorp. .................................. 16,516
200 Firstar Corp. ......................................... 16,750
350 KeyCorp. .............................................. 11,287
100 Northern Trust Corp. .................................. 8,937
200 PNC Bank Corp. ........................................ 10,413
100 State Street Corp. .................................... 7,669
300 SunTrust Banks, Inc. .................................. 20,381
500 U.S. Bancorp, Inc. .................................... 16,156
300 Wachovia Corp. ........................................ 25,519
----------
260,759
----------
BEVERAGE - BREWERS/DISTRIBUTORS - 1.04%
700 Anheuser-Busch Companies, Inc. ........................ 53,681
100 Brown-Forman Corp., Class B............................ 6,594
400 Seagram Co., Ltd. ..................................... 18,550
----------
78,825
----------
BEVERAGE - SOFT DRINKS - 2.76%
2,300 Coca-Cola Co. ......................................... 147,056
300 Coca Cola Enterprises, Inc. ........................... 9,300
1,400 PepsiCo, Inc. ......................................... 52,675
----------
209,031
----------
BROADCASTING - 2.00%
150 * Clear Channel Communications........................... 9,000
350 Comcast Corp., Class A Special......................... 24,828
450 * Media One Group, Inc. ................................. 24,525
500 * Tele-Communications.................................... 31,406
650 U S WEST, Inc. ........................................ 34,653
300 * Viacom, Inc. Class B................................... 26,513
----------
150,925
----------
BUILDING MATERIALS - 0.62%
300 Lowe's Companies, Inc. ................................ 17,794
400 Masco Corp. ........................................... 10,500
200 Sherwin-Williams Co. .................................. 4,812
100 Vulcan Materials Co. .................................. 13,475
----------
46,581
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CHEMICAL - MAJOR - 0.37%
100 Morton International, Inc. ............................ $ 3,612
350 PPG Industries, Inc. .................................. 18,222
200 Rohm and Haas Co. ..................................... 6,250
----------
28,084
----------
CHEMICAL - MISCELLANEOUS - 0.19%
200 Ecolab, Inc. .......................................... 7,975
100 Nalco Chemical Co. .................................... 2,812
100 Praxair, Inc. ......................................... 3,494
----------
14,281
----------
CONGLOMERATES - 0.66%
300 Tenneco, Inc. ......................................... 8,981
550 Tyco International, Ltd. .............................. 40,941
----------
49,922
----------
CONSUMER FINANCE - 0.39%
100 Capital One Financial Corp. ........................... 12,762
675 MBNA Corp. ............................................ 16,369
----------
29,131
----------
CONTAINERS - METAL/GLASS - 0.28%
300 Corning, Inc. ......................................... 16,050
100 Crown Cork & Seal Co., Inc. ........................... 2,775
100 Owens-Illinois, Inc.................................... 2,394
----------
21,219
----------
CONTAINERS - PAPER - 0.18%
100 * Sealed Air Corp. ...................................... 5,075
100 Sonoco Products Co. ................................... 2,450
100 Temple-Inland, Inc. ................................... 5,994
----------
13,519
----------
COSMETICS/TOILETRIES - 0.94%
200 Avon Products, Inc. ................................... 8,325
1,100 Gillette Co. .......................................... 58,987
100 International Flavors & Fragrances..................... 4,119
----------
71,431
----------
DRUGS - 8.52%
100 Allergan, Inc. ........................................ 8,150
1,300 American Home Products Corp. .......................... 77,350
200 Amgen, Inc. ........................................... 24,975
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 37
SOCIALLY RESPONSIBLE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
DRUGS - Continued
1,000 Bristol Myers Squibb Co. ............................... $ 125,937
1,000 Eli Lilly and Co. ...................................... 94,688
2,200 Merck & Co., Inc. ...................................... 179,850
1,400 Schering-Plough Corp. .................................. 78,313
800 Warner-Lambert Co. ..................................... 55,250
----------
644,513
----------
ELECTRICAL EQUIPMENT - 0.59%
650 Emerson Electric Co. ................................... 37,334
100 W. W. Grainger, Inc. ................................... 4,450
100 Molex, Inc. ............................................ 2,675
----------
44,459
----------
ELECTRONIC INSTRUMENTS - 0.13%
100 Perkin-Elmer Corp. ..................................... 9,475
----------
ENTERTAINMENT - 2.14%
500 Carnival Corp. Class A.................................. 22,250
100 Hasbro, Inc. ........................................... 3,700
200 Mattel, Inc. ........................................... 5,275
1,100 Time Warner, Inc. ...................................... 70,950
1,700 Walt Disney Co. ........................................ 59,819
----------
161,994
----------
FINANCE COMPANIES - 0.75%
800 Associates First Capital Corp. ......................... 32,500
600 Household International, Inc. .......................... 24,375
----------
56,875
----------
FINANCIAL SERVICES - 0.97%
600 American Express Co. ................................... 65,100
100 Countrywide Credit Industries, Inc. .................... 3,787
100 H & R Block, Inc. ...................................... 4,538
----------
73,425
----------
FOODS - 2.37%
300 Best Foods.............................................. 14,080
500 Campbell Soup Co. ...................................... 20,094
500 ConAgra, Inc. .......................................... 15,062
300 General Mills, Inc. .................................... 24,206
450 H J Heinz Co. .......................................... 24,495
100 Hershey Foods Corp. .................................... 6,225
500 Kellogg Co. ............................................ 18,500
100 Pioneer Hi-Bred International, Inc. .................... 2,344
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
FOODS - Continued
100 Quaker Oats Co. ............................... $ 5,462
200 Ralston Purina Co. ............................ 5,388
900 Sara Lee Corp. ................................ 24,465
200 Wm. Wrigley Jr. Co. ........................... 18,600
----------
178,921
----------
FOOTWEAR - 0.21%
300 NIKE, Inc., Class B............................ 16,088
----------
FREIGHT - 0.25%
200 * FDX Corp. ..................................... 19,100
----------
FUNERAL SERVICES - 0.04%
200 Service Corp. International.................... 3,075
----------
GOLD MINING - 0.18%
400 Barrick Gold Corp. ............................ 7,075
100 Battle Mountain Gold Co. ...................... 338
300 Homestake Mining Co. .......................... 2,756
300 Placer Dome, Inc. ............................. 3,281
----------
13,450
----------
GOVERNMENT SPONSORED - 1.76%
750 Federal Home Loan Mortagage Corp. ............. 44,156
1,150 Federal National Mortgage Association.......... 80,500
200 SLM Holding Corp. ............................. 8,575
----------
133,231
----------
HARDWARE & TOOLS - 0.06%
100 Black & Decker Corp. .......................... 4,875
----------
HEALTHCARE - 0.64%
200 Cardinal Health, Inc. ......................... 14,437
200 * HealthSouth Corp. ............................. 2,325
200 IMS Health, Inc. .............................. 7,100
211 Mckesson HBOC, Inc. ........................... 14,348
200 United HealthCare Corp. ....................... 9,863
----------
48,073
----------
HEAVY DUTY TRUCKS/PARTS - 0.06%
100 PACCAR, Inc. .................................. 4,188
----------
HOSPITAL MANAGEMENT - 0.17%
600 Columbia/HCA Healthcare Corp. ................. 10,725
100 * Tenet Healthcare Corp. ........................ 1,969
----------
12,694
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
HOSPITAL SUPPLIES - 3.64%
1,500 Abbott Laboratories.................................... $ 69,656
400 Baxter International, Inc. ............................ 28,150
200 Becton, Dickinson and Co. ............................. 6,700
200 * Boston Scientific Corp. ............................... 5,300
1,400 Johnson & Johnson ..................................... 119,525
650 Medtronic, Inc. ....................................... 45,907
----------
275,238
----------
HOUSEHOLD PRODUCTS - 3.13%
200 Clorox Co. ............................................ 23,663
350 Colgate-Palmolive Co. ................................. 29,706
100 Newell Co. ............................................ 4,250
1,400 Procter & Gamble Co. .................................. 125,300
100 Rubbermaid, Inc. ...................................... 3,306
700 Unilever N V........................................... 50,706
----------
236,931
----------
INFORMATION PROCESSING -
BUSINESS SOFTWARE - 4.58%
100 * BMC Software, Inc. .................................... 4,088
2,000 * Microsoft Corp. ....................................... 300,250
750 * Oracle Corp. .......................................... 41,906
----------
346,244
----------
INFORMATION PROCESSING -
COMPUTER HARDWARE SYSTEMS - 3.88%
100 * Apple Computer, Inc. .................................. 3,481
1,300 Compaq Computer Corp. ................................. 45,825
1,000 * Dell Computer Corp. ................................... 80,125
100 * Gateway 2000, Inc. .................................... 7,269
750 International Business Machine......................... 127,500
300 * Sun Microsystems, Inc. ................................ 29,194
----------
293,394
----------
INFORMATION PROCESSING -
COMPUTER SERVICES - 1.65%
700 * America Online, Inc. .................................. 62,256
600 Automatic Data Processing, Inc ........................ 23,850
500 Electronic Data Systems Corp. New...................... 23,250
300 First Data Corp. ...................................... 11,475
100 Paychex, Inc. ......................................... 4,238
----------
125,069
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
38 February 28, 1999 (Unaudited)
SOCIALLY RESPONSIBLE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
DATA SERVICES - 2.86%
400 * Cendant Corp. ......................................... $ 6,625
400 Computer Associates Int'l.............................. 16,800
100 * Computer Sciences Corp. ............................... 6,662
100 * Compuware Corp. ....................................... 5,594
400 * EMC Corp. ............................................. 40,950
950 Hewlett Packard Co. ................................... 63,116
100 Novell, Inc . ......................................... 1,937
300 Pitney Bowes, Inc. .................................... 18,956
100 * Seagate Technology..................................... 2,894
200 * Solectron Corp. ....................................... 8,938
800 Xerox Corp. ........................................... 44,150
----------
216,622
----------
INFORMATION PROCESSING -
NETWORKING - 1.84%
100 * Ascend Communications, Inc. ........................... 7,694
1,250 * Cisco Systems, Inc. ................................... 122,266
100 * General Instrument Corp. .............................. 2,925
200 * 3Com Corp. ............................................ 6,287
----------
139,172
----------
INSURANCE - CASUALTY - 0.35%
150 Chubb Corp. ........................................... 8,963
100 Progressive Corp. ..................................... 12,850
150 St. Paul Companies, Inc. .............................. 4,856
----------
26,669
----------
INSURANCE - LIFE - 0.67%
200 Aetna, Inc. ........................................... 14,812
100 Conseco, Inc. ......................................... 2,994
100 Jefferson-Pilot Corp. ................................. 6,781
200 Lincoln National Corp. ................................ 18,938
100 Transamerica Corp. .................................... 7,256
----------
50,781
----------
INSURANCE - MISCELLANEOUS - 0.07%
1 Berkshire Hathaway, Inc. .............................. 1,190
100 UNUM Corp. ............................................ 4,475
----------
5,665
----------
INSURANCE - MULTILINE - 3.18%
700 Allstate Corp. ........................................ 26,250
1,171 American International Group. Inc ..................... 133,421
250 Aon Corp. ............................................. 14,734
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INSURANCE - MULTILINE - Continued
300 CIGNA Corp. ........................................... $ 23,550
100 Cincinnati Financial Corp. ............................ 3,506
200 Hartford Financial Svcs Group.......................... 10,813
400 Marsh & McLennan Companies, Inc. ...................... 28,325
----------
240,599
----------
LODGING - 0.05%
100 Marriott International, Inc. .......................... 3,600
----------
MACHINERY - AGRICULTURE - 0.06%
150 Deere & Co. ........................................... 4,903
----------
MACHINERY - CONSTRUCTION &
CONTRACTS - 0.24%
400 Caterpillar, Inc. ..................................... 18,225
----------
MACHINERY - INDUSTRIAL/SPECIALTY - 0.82%
200 Cooper Industries, Inc. ............................... 8,750
250 Dover Corp. ........................................... 8,500
350 * Illinois Tool Works, Inc. ............................. 24,062
200 Ingersoll-Rand Co. .................................... 9,500
100 Johnson Controls, Inc. ................................ 6,150
100 Newport News Shipbuilding.............................. 2,894
100 Pall Corp. ............................................ 2,119
----------
61,975
----------
MEDICAL TECHNOLOGY - 0.23%
300 Guidant Corp. ......................................... 17,100
----------
MERCHANDISE - DRUG - 0.56%
300 CVS Corp. ............................................. 15,900
100 Rite Aid Corp. ........................................ 4,138
700 Walgreen Co. .......................................... 22,400
----------
42,438
----------
MERCHANDISE - SPECIALTY - 1.89%
200 * Costco Companies, Inc. ................................ 16,062
200 Fortune Brands, Inc. .................................. 6,025
475 Gap, Inc. ............................................. 30,727
1,200 Home Depot, Inc. ...................................... 71,625
100 * Kohl's Corp. .......................................... 6,900
300 * Staples, Inc. ......................................... 8,822
100 TJX Companies, Inc. ................................... 2,856
----------
143,017
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
MERCHANDISING--DEPARTMENT - 0.37%
300 Dayton Hudson Corp. ................................... $ 18,769
150 May Department Stores Co. ............................. 8,887
----------
27,656
----------
MERCHANDISING - FOOD - 0.87%
200 Albertsons, Inc. ...................................... 11,400
200 American Stores Co. ................................... 6,750
200 * Kroger Co. ............................................ 12,937
400 * Safeway, Inc. ......................................... 23,100
250 SYSCO Corp. ........................................... 7,063
100 Winn-Dixie Stores, Inc. ............................... 4,381
----------
65,631
----------
MERCHANDISING - MASS - 2.42%
100 * KMart Corp. ........................................... 1,750
200 J.C. Penney Co., Inc. ................................. 7,225
250 Sears Roebuck and Co. ................................. 10,156
1,900 Wal-Mart Stores, Inc. ................................. 164,113
----------
183,244
----------
METALS - ALUMINUM - 0.14%
450 Alcan Aluminium, Ltd. ................................. 10,941
----------
METALS - COPPER - 0.02%
100 Newmont Mining Corp. .................................. 1,725
----------
METALS - MISCELLANEOUS - 0.13%
200 Engelhard Corp. ....................................... 3,562
200 Inco Limited........................................... 2,525
100 Precision Castparts Corp. ............................. 3,713
----------
9,800
----------
METALS - STEEL - 0.03%
200 Worthington Industries, Inc. .......................... 2,538
----------
MISCELLANEOUS - 0.05%
100 Equifax, Inc. ......................................... 3,775
----------
NATURAL GAS - DIVERSIFIED - 0.03%
100 Questar Corp. ......................................... 1,788
100 * Seagull Energy Corp. .................................. 475
----------
2,263
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 39
SOCIALLY RESPONSIBLE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<S> <C> <C>
- ------------------------------------------------------------
OIL - INTEGRATED DOMESTIC - 1.25%
350 Amerada Hess Corp. ................... $ 15,881
200 Ashland Oil, Inc. .................... 8,900
500 Burlington Resources, Inc. ........... 16,188
100 Pennzoil-Quaker State Co.............. 1,244
200 Kerr-McGee Corp. ..................... 5,713
200 * Oryx Energy Co. ...................... 2,075
850 Phillips Petroleum Co. ............... 32,884
550 USX-Marathon Group.................... 11,378
----------
94,263
----------
OIL - INTEGRATED INTERNATIONAL - 1.10%
400 Murphy Oil Corp. ..................... 13,675
1,500 Texaco, Inc. ......................... 69,844
----------
83,519
----------
OIL - SERVICES - 0.90%
400 Baker Hughes, Inc. ................... 7,200
700 Halliburton Co. ...................... 19,775
850 Schlumberger, Ltd. ................... 41,278
----------
68,253
----------
OIL/GAS PRODUCERS - 0.54%
300 Anadarko Petroleum Corp. ............. 8,250
300 * Apache Corp. ......................... 5,981
300 Pennzenergy Co........................ 2,812
100 Noble Affiliates, Inc. ............... 2,262
100 * Pioneer Natural Resources Corp. ...... 519
400 * Ranger Oil Ltd. ...................... 1,125
300 Sonat, Inc. .......................... 7,594
200 Sunoco, Inc. ......................... 6,088
100 Ultramar Diamond Shamrock............. 1,975
500 Union Pacific Resources Group, Inc. .. 4,469
----------
41,075
----------
PAPER/FOREST PRODUCTS - 1.04%
200 Avery Dennison Corp. ................. 10,737
200 Fort James Corp. ..................... 5,975
400 International Paper Co. .............. 16,800
700 Kimberly-Clark Corp. ................. 33,075
100 Louisiana Pacific Corp. .............. 1,837
100 Mead Corp. ........................... 3,044
100 Potlatch Corp. ....................... 3,469
100 Willamette Industries, Inc. .......... 3,644
----------
78,581
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
POLLUTION CONTROL - 0.33%
100 Browning-Ferris Industries Inc. ....................... $ 3,150
450 Waste Management, Inc. ................................ 21,994
----------
25,144
----------
PUBLISHING - NEWS - 1.23%
100 Dow Jones & Co., Inc. ................................. 4,700
350 Gannett Co., Inc. ..................................... 22,225
150 New York Times Co., Class A ........................... 4,650
100 Tribune Co. ........................................... 6,631
100 Washington Post Co., Class B........................... 54,988
----------
93,194
----------
PUBLISHING/PRINTING - 0.42%
100 Deluxe Corp. .......................................... 3,387
200 Dun & Bradstreet Corp.................................. 6,850
200 McGraw-Hill, Inc. ..................................... 21,888
----------
32,125
----------
RAILROAD - 0.81%
500 Burlington Northern Santa Fe........................... 16,563
300 CSX Corp. ............................................. 11,775
500 Norfolk Southern Corp. ................................ 14,031
400 Union Pacific Corp. ................................... 18,750
----------
61,119
----------
RESTAURANTS - 0.98%
800 McDonald's Corp. ...................................... 68,000
100 * Tricon Global Restaurants, Inc. ....................... 6,200
----------
74,200
----------
SAVINGS & LOAN - 0.34%
100 Golden West Financial Corp. ........................... 9,394
400 Washington Mutual, Inc. ............................... 16,000
----------
25,394
----------
SECURITIES RELATED - 1.35%
100 Franklin Resources, Inc. .............................. 3,181
350 Merrill Lynch & Co., Inc. ............................. 26,863
550 Morgan Stanley Dean Witter Discover.................... 49,775
300 Charles Schwab Corp. .................................. 22,369
----------
102,188
----------
SEMICONDUCTOR EQUIPMENT - 0.29%
300 * Applied Materials, Inc. ............................... 16,688
100 * KLA-Tencor Corp. ...................................... 5,181
----------
21,869
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
SEMICONDUCTORS - 3.10%
100 * Advanced Micro Devices, Inc. .......................... $ 1,787
1,400 Intel Corp. ........................................... 167,913
200 Micron Technology, Inc. ............................... 11,525
400 Rockwell International Corp. .......................... 17,775
400 Texas Instruments, Inc. ............................... 35,675
----------
234,675
----------
TELECOMMUNICATIONS - 3.24%
350 ALLTEL Corp. .......................................... 20,956
100 Frontier Corp. ........................................ 3,594
1,500 * MCI Worldcom, Inc. .................................... 123,750
100 * Nextel Communications, Inc., Class A................... 3,006
600 Northern Telecom Ltd................................... 34,838
150 * Tellabs, Inc. ......................................... 12,009
----------
243,684
----------
TEXTILE - PRODUCTS - 0.06%
100 V.F. Corp. ............................................ 4,813
----------
UTILITIES - COMMUNICATION - 5.37%
1,150 * Ameritech Corp. ....................................... 75,181
1,500 Bell Atlantic Corp. ................................... 86,156
1,800 BellSouth Corp. ....................................... 83,250
1,900 SBC Communications, Inc. .............................. 100,463
600 Sprint Corp. FON Group................................. 51,488
250 * Sprint Corp. PCS Group................................. 8,000
----------
404,538
----------
UTILITIES - ELECTRIC - 1.90%
100 * AES Corp. ............................................. 3,719
350 Allegheny Energy, Inc. ................................ 10,391
100 Cleco Corp. ........................................... 2,937
450 Cinergy Corp. ......................................... 13,134
400 DPL, Inc. ............................................. 7,125
100 Hawaiian Electric Industries........................... 3,487
200 Idacorp, Inc. ......................................... 6,212
100 IPALCO Enterprises, Inc. .............................. 4,794
100 Kansas City Power & Light Co. ......................... 2,550
100 Minnesota Power, Inc. ................................. 4,019
100 Montana Power Co. ..................................... 6,088
200 NIPSCO Industries, Inc. ............................... 5,188
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
40 February 28, 1999 (Unaudited)
SOCIALLY RESPONSIBLE FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
UTILITIES - ELECTRIC - Continued
100 Nevada Power Co. ....................................... $ 2,394
450 New Century Energies, Inc. ............................. 18,253
200 OGE Energy Corp. ....................................... 4,775
400 PP&L Resources, Inc. ................................... 10,200
700 PacifiCorp.............................................. 12,556
350 Potomac Electric Power Co. ............................. 8,531
250 Puget Sound Energy, Inc. ............................... 6,031
200 TECO Energy, Inc. ...................................... 4,325
200 UtiliCorp United, Inc. ................................. 6,875
----------
143,584
----------
UTILITIES - GAS, DISTRIBUTION - 0.31%
100 AGL Resources, Inc. .................................... 1,906
300 KeySpan Energy.......................................... 7,950
100 MCN Energy Group, Inc. ................................. 1,781
200 National Fuel Gas Co. .................................. 8,063
100 NICOR, Inc. ............................................ 3,819
----------
23,519
----------
UTILITIES - GAS, PIPELINE - 1.31%
200 Columbia Energy Group................................... 10,100
400 Consolidated Natural Gas Co. ........................... 21,975
600 Enron Corp. ............................................ 39,000
100 ONEOK, Inc. ............................................ 2,694
200 Peoples Energy Corp. ................................... 6,787
500 Williams Companies, Inc. ............................... 18,500
----------
99,056
----------
WATER SERVICES - 0.04%
100 American Water Works Co., Inc. ......................... 3,025
----------
TOTAL COMMON STOCK
(Cost $6,556,560)....................................... 7,461,228
----------
PAR
VALUE
---------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 7.10%
MERCHANDISE - FOOD - 2.72%
$206,000 American Stores Company,
5.02% due 03/01/99...................................... 206,000
----------
OIL/GAS PRODUCERS - 4.38%
331,000 Sonat, Inc.,
4.98% due 03/01/99...................................... 331,000
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- ------------------------------------------------------------------------------
TOTAL CORPORATE SHORT TERM
(Cost $537,000)........................................ $ 537,000
----------
UNITED STATES GOVERNMENT SHORT TERM
U.S. TREASURY BILLS - 0.66%
$50,000 United States Treasury Bills,
4.18% due 04/01/99..................................... 49,820
----------
TOTAL UNITED STATES GOVERNMENT SHORT TERM
(Cost $49,820)......................................... 49,820
----------
TOTAL INVESTMENTS
(Cost $7,143,380) - 106.42%............................ 8,048,048
Other assets less liabilities,
net - (6.42%).......................................... (485,811)
----------
NET ASSETS (equivalent
to $12.26 per share on
616,663 shares
outstanding) - 100.00%................................. $7,562,237
----------
</TABLE>
* Non-income producing
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C>
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 616,663 shares outstanding......... $ 6,167
Additional paid in capital...................................... 6,425,629
Undistributed net realized gain on securities................... 224,810
Undistributed net investment income............................. 963
Unrealized appreciation of securities........................... 904,668
----------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING..................... $7,562,237
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
SOCIALLY RESPONSIBLE FUND - FINANCIAL STATEMENTS (Unaudited) 41
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<S> <C> <C>
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends.......................................................... $ 35,822
Interest........................................................... 22,595
----------
Total investment income............................................ 58,417
----------
EXPENSES:
Custodian fees..................................................... 10,817
Advisory fees...................................................... 7,497
Administrative service fee......................................... 7,496
Audit fees......................................................... 7,152
Trustees' fees and expenses........................................ 1,915
Report to shareholders............................................. 726
Accounting services................................................ 900
Pricing services................................................... 602
Miscellaneous...................................................... 286
----------
Total expenses.................................................... 37,391
Expense reimbursement (see Note 3)................................ (19,999)
----------
Net expenses...................................................... 17,392
----------
NET INVESTMENT INCOME.............................................. 41,025
----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities.................................... 510,543
Net unrealized appreciation of securities during the period........ 904,668
----------
Net realized and unrealized gain on securities during the period.. 1,415,211
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... $1,456,236
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the period
six months ended August 26, 1998
February 28, 1998 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................... $ 41,025 $ -
Net realized gain on securities.......... 510,543 -
Net unrealized appreciation of securities
during the period........................ 904,668 -
------------------------------------
Increase in net assets resulting from
operations.............................. 1,456,236 -
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................... (40,062) -
Net realized gain on securities.......... (285,733) -
------------------------------------
Decrease in net assets resulting from
distributions
to shareholders......................... (325,795) -
------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................ 6,103,987 6,667
Proceeds from shares issued for
distributions reinvested................. 325,795 -
------------------------------------
6,429,782 6,667
Cost of shares repurchased............... (4,653) -
------------------------------------
Increase in net assets resulting from
share transactions...................... 6,425,129 6,667
------------------------------------
TOTAL INCREASE IN NET ASSETS............. 7,555,570 6,667
NET ASSETS:
Beginning of period...................... 6,667 -
------------------------------------
End of period (including undistributed
net investment income
of $963 and $0).......................... $7,562,237 $6,667
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold.............................. 589,702 667
Shares issued for distributions
reinvested............................... 26,664 -
Shares repurchased....................... (370) -
------------------------------------
Increase in shares outstanding.......... 615,996 667
Shares outstanding:
Beginning of period..................... 667 -
------------------------------------
End of period .......................... 616,663 667
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
42 February 28, 1999 (Unaudited)
BALANCED FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMON STOCK - 65.28%
AEROSPACE/DEFENSE - 1.59%
900 Boeing Co.............................................. $ 32,006
600 United Technologies Corp............................... 74,325
----------
106,331
----------
AUTO - CARS - 0.08%
300 * Delphi Automotive Systems Corp......................... 5,531
----------
AUTO - ORIGINAL EQUIPMENT - 0.59%
800 Federal-Mogul Corp..................................... 39,350
----------
BANKS - NEW YORK CITY - 1.98%
2,250 Citigroup Inc.......................................... 132,187
----------
BANKS - OTHER - 3.30%
1,178 BankAmerica Corp....................................... 76,949
3,900 Wells Fargo Company.................................... 143,325
----------
220,274
----------
BEVERAGE - SOFT DRINKS - 1.32%
500 Coca-Cola Co........................................... 31,969
1,500 PepsiCo, Inc........................................... 56,437
----------
88,406
----------
BROADCASTING - 4.35%
1,100 * Cablevision Systems Corp., Class A..................... 71,500
2,100 * Tele-Comm Liberty Media Group., Class A................ 113,138
1,200 * Viacom, Inc. Class B................................... 106,050
----------
290,688
----------
BUILDING MATERIALS - 1.15%
1,300 Lowe's Companies, Inc.................................. 77,106
----------
CHEMICAL - MISCELLANEOUS - 0.49%
1,000 Air Products and Chemicals, Inc........................ 32,125
----------
CONGLOMERATES - 0.58%
500 Textron, Inc........................................... 39,000
----------
CONTAINERS - PAPER - 0.53%
700 * Sealed Air Corp........................................ 35,525
----------
DRUGS - 3.27%
2,300 Astra AB - ADR, Class A................................ 45,425
800 * Forest Laboratories, Inc............................... 39,550
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
DRUGS - Continued
700 Pfizer, Inc............................................ $ 92,356
1,000 Zeneca Group Plc - ADR................................. 41,063
----------
218,394
----------
ELECTRONIC INSTRUMENTS - 0.82%
5,200 * Sensormatic Electronics Corp........................... 54,600
----------
ENTERTAINMENT - 1.96%
1,300 * Fox Entertainment Group................................ 33,800
1,400 Hasbro, Inc............................................ 51,800
700 Time Warner, Inc....................................... 45,150
----------
130,750
----------
FINANCE COMPANIES - 1.34%
2,200 Household International, Inc........................... 89,375
----------
FOODS - 1.42%
1,600 Kellogg Co............................................. 59,200
800 Nabisco Holdings Corp., Class A........................ 35,500
----------
94,700
----------
FOOTWEAR - 0.96%
1,200 NIKE, Inc., Class B.................................... 64,350
----------
GOVERNMENT SPONSORED - 1.60%
2,500 SLM Holding Corp. ..................................... 107,188
----------
HEALTHCARE - 1.11%
800 * Quintiles Transnational Corp........................... 34,500
800 United HealthCare Corp. ............................... 39,450
----------
73,950
----------
HOSPITAL SUPPLIES - 0.85%
800 Medtronic, Inc......................................... 56,500
----------
HOUSEHOLD PRODUCTS - 0.51%
400 Colgate-Palmolive Co................................... 33,950
----------
INFORMATION PROCESSING - BUSINESS
SOFTWARE - 0.93%
3,300 * Peoplesoft, Inc........................................ 62,287
----------
INFORMATION PROCESSING - COMPUTER
HARDWARE SYSTEMS - 1.27%
800 * Gateway 2000, Inc...................................... 58,150
2,800 * Western Digitial Corp.................................. 26,950
----------
85,100
----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING -
DATA SERVICES - 1.82%
1,100 Autodesk, Inc...................................... $ 44,137
1,400 Xerox Corp......................................... 77,263
----------
121,400
----------
INFORMATION PROCESSING -
NETWORKING - 0.46%
400 * Ascend Communications, Inc......................... 30,775
----------
INSURANCE - LIFE - 0.71%
500 Lincoln National Corp.............................. 47,344
----------
INSURANCE - MISCELLANEOUS - 2.26%
21 * Berkshire Hathaway, Inc............................ 49,959
1 * Berkshire Hathaway, Inc., Class A.................. 71,100
700 PMI Group Inc...................................... 30,188
----------
151,247
----------
INSURANCE - MULTILINE - 1.47%
700 Cincinnati Financial Corp.......................... 24,544
1,200 XL Capital Limited................................. 73,500
----------
98,044
----------
MACHINERY - INDUSTRY/SPECIALTY - 1.64%
1,800 Dover Corp......................................... 61,200
700 Illinois Tool Works Inc............................ 48,125
----------
109,325
----------
MEDICAL TECHNOLOGY - 1.28%
1,500 Guidant Corp....................................... 85,500
----------
MERCHANDISE - SPECIALTY - 0.57%
700 Circuit City Stores, Inc........................... 37,975
----------
MERCHANDISING - MASS - 0.65%
500 Wal-Mart Stores, Inc............................... 43,188
----------
NATURAL GAS-DIVERSIFIED - 0.60%
1,900 K N Energy, Inc.................................... 39,781
----------
OIL - INTEGRATED DOMESTIC - 0.53%
1,000 Burlington Resources, Inc.......................... 32,375
300 * Oryx Energy Co..................................... 3,112
----------
35,487
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 43
BALANCED FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
OIL - INTEGRATED INTERNATIONAL - 1.35%
600 Exxon Corp........................................... $ 39,937
600 Mobil Corp........................................... 49,913
-----------
89,850
-----------
OIL - SERVICE - PRODUCTS - 1.47%
500 Bp Amoco Plc - ADR................................... 42,500
900 Shell Transport & Trading - ADR...................... 30,206
1,500 * Weatherford International Inc. ...................... 25,500
-----------
98,206
-----------
OIL - SERVICES - 0.46%
1,700 Baker Hughes Inc. ................................... 30,600
-----------
PAPER/FOREST PRODUCTS - 1.44%
1,800 Fort James Corp. .................................... 53,775
900 Kimberly-Clark Corp. ................................ 42,525
-----------
96,300
-----------
POLLUTION CONTROL - 0.97%
2,900 * Republic Industries, Inc. ........................... 35,525
600 Waste Management, Inc. .............................. 29,325
-----------
64,850
-----------
REAL ESTATE INVESTMENT TRUSTS - 0.87%
3,200 Indymac Mortgage Holdings............................ 34,000
700 Vornado Realty Trust................................. 24,063
-----------
58,063
-----------
SAVINGS & LOAN - 1.02%
1,708 Washington Mutual, Inc. ............................. 68,320
-----------
SEMICONDUCTOR EQUIPMENT - 1.68%
900 * Applied Materials, Inc. ............................. 50,063
1,200 * KLA-Tencor Corp. .................................... 62,175
-----------
112,238
-----------
SEMICONDUCTORS - 1.16%
400 Intel Corp........................................... 47,975
700 * Maxim Integrated Products ........................... 29,181
-----------
77,156
-----------
TELECOMMUNICATIONS - 5.43%
800 * Airtouch Communications, Inc. ....................... 72,850
3,100 * Loral Space & Communications Ltd..................... 55,800
</TABLE>
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- ------------------------------------------------------------------------------
TELECOMMUNICATIONS - Continued
1,195 * MCI Worldcom Inc............................ $ 98,587
1,000 Nokia Corp ADR - Series A................... 135,625
-----------
362,862
-----------
TEXTILE - PRODUCTS - 0.84%
2,000 * Jones Apparel Group, Inc. .................. 55,875
-----------
TOBACCO - 0.53%
900 Philip Morris Companies Inc. ............... 35,213
-----------
UTILITIES - COMMUNICATION - 1.47%
300 AT&T - Liberty Media Group.................. 24,637
600 Ameritech Corp. ............................ 39,225
400 Sprint Corp. FON Group...................... 34,325
-----------
98,187
-----------
UTILITIES - ELECTRIC - 1.80%
1,600 * AES Corp. .................................. 59,500
1,000 Cinergy Corp. .............................. 29,187
2,100 * Northeast Utilities......................... 31,369
-----------
120,056
-----------
UTILITIES - GAS, PIPELINE - 0.82%
1,500 Williams Companies, Inc. ................... 55,500
-----------
TOTAL COMMON STOCK
(Cost $3,571,661)........................... 4,361,009
-----------
PAR
VALUE
---------
CORPORATE BONDS - LONG TERM - 18.12%
BEVERAGE - BREWERS/DISTRIBUTORS - 1.53%
$100,000 J. Seagram & Sons,
7.50% due 12/15/18.......................... 102,025
-----------
BROADCASTING - 1.10%
100,000(1) Fox/Liberty Networks,
9.75% due 08/15/07.......................... 73,500
-----------
ELECTRICAL EQUIPMENT - 1.51%
100,000 Philips Electronics, N.V.,
7.20% due 06/01/26.......................... 101,142
-----------
ENTERTAINMENT - 1.55%
100,000 Time Warner, Inc.,
7.25% due 10/15/17.......................... 103,276
-----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
FINANCE COMPANIES - 2.89%
$ 97,608 Commercial Mortgage Acceptance,
5.80% due 03/15/06................................ $ 95,290
99,075 DLJ Commercial Mortgage Corp.,
5.88% due 11/12/31................................ 97,419
-----------
192,709
-----------
FINANCIAL SERVICES - 1.43%
100,000 Ford Motor Credit Co.,
5.80% due 01/12/09................................ 96,158
-----------
HEALTHCARE - 1.11%
100,000 Integrated Health Services,
9.25% at 01/15/08................................. 74,000
-----------
POLLUTION CONTROL - 1.49%
100,000 Browning-Ferris Industries, Inc.,
6.08% due 01/18/00................................ 99,766
-----------
SAVINGS & LOAN - 1.50%
100,000 Household Finance Co.,
6.40% due 06/17/08................................ 99,933
-----------
TELECOMMUNICATIONS - 2.40%
100,000(1) Spectrasite Holdings, Inc.,
12.0% due 07/15/08................................ 59,000
100,000 US West Cap Funding, Inc.,
6.25% due 07/15/05................................ 101,021
-----------
160,021
-----------
UTILITIES - COMMUNICATION - 1.61%
100,000 GTE Corp.,
7.90% due 02/01/27................................ 107,482
-----------
TOTAL CORPORATE BONDS
(Cost $1,257,252)................................. 1,210,012
-----------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 6.90%
CHEMICAL - MAJOR - 2.42%
162,000 Eastman Chemical Co.,
5.00% due 03/01/99................................ 162,000
-----------
SEMICONDUCTORS - 4.48%
299,000 Avnet, Inc.,
4.85% due 03/01/99................................ 299,000
-----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
44 February 28, 1999 (Unaudited)
BALANCED FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
TOTAL CORPORATE SHORT TERM
(Cost $461,000)...................................... $ 461,000
----------
UNITED STATES GOVERNMENT
LONG TERM - 9.49%
FEDERAL AGENCIES - 3.39%
$223,284 Government National Mortgage Association,
7.00% due 09/15/28................................... 226,423
----------
GOVERNMENT SPONSORED - 1.46%
100,000 Federal Home Loan Bank.,
5.13% due 09/15/03................................... 97,766
----------
UNITED STATES NOTES - 4.64%
300,000 United States Treasury Notes,
6.25% due 02/15/03................................... 309,937
----------
TOTAL UNITED STATES GOVERNMENT -
LONG TERM
(Cost $646,282)...................................... 634,126
----------
TOTAL INVESTMENT
(Cost $5,936,195) - 99.79%........................... 6,666,147
Other assets less liabilities,
net - 0.21%.......................................... 13,542
----------
NET ASSETS (equivalent
to $11.86 per share on
563,434 shares outstanding) - 100%................... $6,679,689
----------
</TABLE>
* Non-income producing
(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 February
28, 1999 the aggregate value of these securities was $132,500,
representing 1.98% of net assets.
<TABLE>
<CAPTION>
<S> <C>
- --------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 563,434 shares outstanding....... $ 5,634
Additional paid in capital.................................... 5,751,365
Undistributed net realized gain on securities................ 190,635
Undistributed net investment income........................... 2,103
Unrealized appreciation of securities......................... 729,952
----------
NET ASSETS APPLICABLE TO
SHARES OUTSTANDING........................................... $6,679,689
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
BALANCED FUND - FINANCIAL STATEMENTS (Unaudited) 45
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends.......................................................... $ 23,281
Interest........................................................... 60,606
----------
Total investment income........................................... 83,887
----------
EXPENSES:
Advisory fees...................................................... 22,311
Custodian fees..................................................... 10,180
Administration service fee......................................... 6,972
Audit fees and tax services........................................ 6,654
Trustees' fees and expenses........................................ 1,788
Report to shareholders............................................. 637
Accounting services................................................ 837
Pricing services................................................... 561
Miscellaneous...................................................... 265
----------
Total expenses.................................................... 50,205
Expense reimbursement (see Note 3)................................ (26,500)
----------
Net expenses...................................................... 23,705
----------
NET INVESTMENT INCOME.............................................. 60,182
----------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities.................................... 224,686
Net unrealized appreciation of securities during the period........ 729,952
----------
Net realized and unrealized gain on securities during the period... 954,638
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... $1,014,820
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the period
six months ended August 26, 1998
February 28, 1999 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................... $ 60,182 $ -
Net realized gain on securities.......... 224,686 -
Net unrealized appreciation of securities
during the period........................ 729,952 -
------------------------------------
Increase in net assets resulting from
operations.............................. 1,014,820 -
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................... (58,079) -
Net realized gain on securities.......... (34,051) -
------------------------------------
Decrease in net assets resulting from
distributions to shareholders........... (92,130) -
------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................ 5,658,436 6,667
Proceeds from shares issued for
distributions reinvested................. 92,130 -
------------------------------------
5,750,566 6,667
Cost of shares repurchased............... (234) -
------------------------------------
Increase in net assets resulting from
share transactions...................... 5,750,332 6,667
------------------------------------
TOTAL INCREASE IN NET ASSETS............. 6,673,022 6,667
NET ASSETS:
Beginning of period...................... 6,667 -
------------------------------------
End of period (including undistributed
net investment income of $2,103 and $0).. $6,679,689 $6,667
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold.............................. 554,865 667
Shares issued for distributions
reinvested............................... 7,921 -
Shares repurchased....................... (19) -
------------------------------------
Increase in shares outstanding.......... 562,767 667
Shares outstanding:
Beginning of period..................... 667 -
------------------------------------
End of period .......................... 563,434 667
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
46 February 28, 1999 (Unaudited)
HIGH YIELD BOND FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
CORPORATE BONDS - 96.61%
APPAREL & PRODUCTS - 3.30%
$100,000 Bell Sports, Inc.,
11.00% due 08/15/08................................ $ 101,500
100,000(1) Galey & Lord, Inc.,
9.13% due 03/01/08................................. 75,500
----------
177,000
----------
AUTO - REPLACEMENT PARTS - 4.14%
200,000 Hayes Wheels International, Inc.,
11.00% due 07/15/06................................ 222,000
----------
BROADCASTING - 5.91%
50,000 Cumulus Media,
10.38% due 07/01/08................................ 54,000
100,000(1) Echostar DBS Corp.,
9.38% due 02/01/09................................. 100,500
150,000 Jacor Communications Co.,
8.75% due 06/15/07................................. 162,000
----------
316,500
----------
CHEMICAL - MAJOR - 3.76%
100,000 Koppers, Ind.,
9.88% due 12/01/07................................. 99,500
100,000 Polymer Group, Inc.,
9.00% due 07/01/07................................. 101,750
----------
201,250
----------
CONSUMER FINANCE - 1.83%
100,000 AmeriCredit Corp.,
9.25% due 02/01/04................................. 98,125
----------
ELECTRONIC INSTRUMENTS - 1.94%
100,000(1) Flextronics International,
8.75% due 10/15/07................................. 103,750
----------
ENTERTAINMENT - 4.76%
200,000(1) Cinemark USA, Inc.,
9.63% due 08/01/08................................. 206,000
50,000 MTS, Inc.,
9.38% due 05/01/05................................. 48,750
----------
254,750
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
FINANCIAL SERVICES - 3.90%
$200,000 Tembec Finance,
9.88% due 09/30/05................................. $ 209,000
----------
FOODS - 2.00%
100,000 Agrilink Foods,
11.88% due 11/01/08................................ 107,000
----------
FREIGHT - 2.87%
150,000 Coach USA, Inc.,
9.38% due 07/01/07................................. 153,563
----------
HEALTHCARE - 5.04%
200,000 Integrated Health Services,
10.25% due 04/30/06................................ 164,000
100,000(1) National Vision Assoc.,
12.75% due 10/15/05................................ 106,000
----------
270,000
----------
HOME BUILDERS - 1.87%
100,000 Del Webb Corp.,
10.25% due 02/15/10................................ 100,180
----------
HOUSEHOLD PRODUCTS - 4.03%
200,000 Lifestyle Furnishings,
10.88% due 08/01/06................................ 216,000
----------
LEISURE TIME - 4.77%
200,000 Boyd Gaming Corp.,
9.50% due 07/15/07................................. 205,000
50,000(1) Hollywood Park, Inc.,
9.25% due 02/15/07................................. 50,375
----------
255,375
----------
LODGING - 3.85%
200,000 Prime Hospitality Corp.,
9.75% due 04/01/07................................. 206,000
----------
MACHINERY - INDUSTRIAL/SPECIALTY - 7.77%
200,000 General Binding Corp.,
9.38% due 06/01/08................................. 208,000
200,000 Synthetic Industries,
9.25% due 02/15/07................................. 208,000
----------
416,000
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
MERCHANDISE - SPECIALTY - 2.66%
$150,000 Finlay Fine Jewelry,
8.38% due 05/01/08................................. $ 142,500
----------
METALS - STEEL - 1.74%
100,000 Metals USA, Inc.,
8.63% due 02/15/08................................. 93,375
----------
MISCELLANEOUS - 3.75%
200,000 Pierce Leahy,
8.13% due 05/15/08................................. 201,000
----------
OIL - SERVICE - PRODUCTS - 1.70%
100,000 Triton Energy,
8.75% due 04/15/02................................. 90,822
----------
RESTAURANTS - 1.97%
50,000 Perkins Family Restaurants,
10.13% due 12/15/07................................ 53,125
50,000 Southern Foods,
9.88% due 09/01/07................................. 52,500
----------
105,625
----------
SCHOOLS - 1.88%
100,000 Kindercare Learning Centers,
9.50% due 02/15/09................................. 100,750
----------
TELECOMMUNICATIONS - 17.60%
150,000 Amphenol Corp.,
9.88% due 05/15/07................................. 156,000
100,000 Global Crossing,
9.63% due 05/15/08................................. 105,000
50,000 Intermedia Communications, Inc.,
8.50% due 01/15/08................................. 46,750
200,000 Level 3 Communications, Inc.,
9.13% due 05/01/08................................. 194,750
200,000(1) NTL Inc.,
11.50% due 10/01/08................................ 226,000
200,000 Telewest Plc.,
9.63% due 10/01/06................................. 215,000
----------
943,500
----------
TOBACCO - 3.57%
200,000 Standard Commercial Corp.,
8.88% due 08/01/05................................. 191,000
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 47
HIGH YIELD BOND FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
MARKET
VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CORPORATE BONDS
(Cost $5,037,468)........................................ $5,175,065
----------
TOTAL INVESTMENTS - 96.61%
(Cost $5,037,468)........................................ 5,175,065
Other assets less liabilities,
net - 3.39%.............................................. 181,728
----------
NET ASSETS (equivalent
to $10.32 per share on
519,195 shares
outstanding) - 100%...................................... $5,356,793
----------
</TABLE>
(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 February
28, 1999 the aggregate value of these securities was $868,125,
representing 16.20% of net assets.
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized, 519,195 shares outstanding............. $ 6,151
Additional paid in capital.......................................... 5,192,353
Undistributed net realized gain on securities....................... 12,686
Undistributed net investment income................................. 8,006
Unrealized appreciation of securities............................... 137,597
----------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING......................... $5,356,793
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
48 HIGH YIELD BOND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Interest............................................................. $232,487
--------
Total investment income............................................. 232,487
--------
EXPENSES:
Advisory fees........................................................ 17,885
Custodian fees....................................................... 9,496
Administrative service fee........................................... 6,388
Audit fees and tax services.......................................... 6,098
Trustees' fees and expenses.......................................... 1,642
Pricing services..................................................... 517
Accounting services.................................................. 767
Report to shareholders............................................... 487
Miscellaneous........................................................ 234
--------
Total expenses...................................................... 43,514
Expense reimbursement (see Note 3).................................. (17,537)
--------
Net expenses........................................................ 25,977
--------
NET INVESTMENT INCOME................................................ 206,510
--------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities..................................... 12,686
Net unrealized appreciation of securities during the period......... 137,597
--------
Net realized and unrealized gain on securities during the period... 150,283
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $356,793
--------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the period
six months ended August 26, 1998
February 28, 1999 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................... $ 206,510 $ -
Net realized gain on securities.......... 12,686 -
Net unrealized appreciation of securities
during the period........................ 137,597 -
------------------------------------
Increase in net assets resulting from
operations.............................. 356,793 -
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................... (198,504) -
Net realized gain on securities.......... - -
------------------------------------
Decrease in net assets resulting from
distributions to shareholders........... (198,504) -
------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................ 4,993,333 6,667
Proceeds from shares issued for
distributions reinvested................. 198,504 -
------------------------------------
5,191,837 6,667
Cost of shares repurchased............... - -
------------------------------------
Increase in net assets resulting from
share transactions...................... 5,191,837 6,667
------------------------------------
TOTAL INCREASE IN NET ASSETS............. 5,350,126 6,667
NET ASSETS:
Beginning of period...................... 6,667 -
------------------------------------
End of period (including undistributed
net investment income of $8,006 and $0).. $5,356,793 $6,667
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold.............................. 499,333 667
Shares issued for distributions
reinvested............................... 19,195 -
Shares repurchased....................... - -
------------------------------------
Increase in shares outstanding.......... 518,528 667
Shares outstanding:
Beginning of period..................... 667 -
------------------------------------
End of period........................... 519,195 667
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 49
STRATEGIC BOND FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
CORPORATE BONDS - 46.66%
BROADCASTING - 4.02%
$ 50,000(1) Echostar DBS Corp.,
9.38% due 02/01/09................................. $ 50,250
50,000 Cumulus Media,
10.38% due 07/01/08................................ 54,000
100,000 Jacor Communications Co.,
8.75% due 06/15/07................................. 108,000
----------
212,250
----------
CHEMICAL - MAJOR - 2.87%
50,000 Koppers, Ind.,
9.88% due 12/01/07................................. 49,750
100,000 Polymer Group, Inc.,
9.00% due 07/01/07................................. 101,750
----------
151,500
----------
CONSUMER FINANCE - 1.86%
100,000 AmeriCredit Corp.,
9.25% due 02/01/04................................. 98,125
----------
DRUGS - 1.91%
100,000 ICN Pharmaceuticals, Inc.,
8.75% due 11/15/08................................. 101,000
----------
ELECTRONIC INSTRUMENTS - 1.97%
100,000(1) Flextronics Intl.,
8.75% due 10/15/07................................. 103,750
----------
ENTERTAINMENT - 1.89%
50,000 Hollywood Entertainment Corp.,
10.63% due 08/15/04................................ 50,750
50,000 MTS, Inc.,
9.38% due 05/01/05................................. 48,750
----------
99,500
----------
FOODS - 1.01%
50,000 Agrilink Foods,
11.88% due 11/01/08................................ 53,500
----------
FREIGHT - 1.94%
100,000 Coach USA, Inc.,
9.38% due 07/01/07................................. 102,375
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
HEALTHCARE - 1.55%
$100,000 Integrated Health Services,
10.25% due 04/30/06................................ $ 82,000
----------
HOME BUILDERS - 1.88%
100,000 Beazer Homes USA,
9.00% due 03/01/04................................. 99,000
----------
LEISURE TIME - 1.94%
100,000 Boyd Gaming Corp.,
9.50% due 07/15/07................................. 102,500
----------
LODGING - 1.95%
100,000 Prime Hospitality Corp.,
9.75% due 04/01/07................................. 103,000
----------
MACHINERY - INDUSTRIAL/SPECIALTY -1.97%
100,000 Synthetic Industries,
9.25% due 02/15/07................................. 104,000
----------
MERCHANDISE - SPECIALTY - 0.90%
50,000 Finlay Fine Jewelry,
8.38% due 05/01/08................................. 47,500
----------
MERCHANDISING - DEPARTMENT - 3.64%
200,000(1) True Temper Sports Inc.,
10.88% due 12/01/08................................ 192,000
----------
MERCHANDISING - FOOD - 0.77%
50,000 Disco, S.A.,
9.88% due 05/15/08................................. 40,875
----------
METALS - STEEL - 1.77%
100,000 Metals USA, Inc.,
8.63% due 02/15/08................................. 93,375
----------
RESTAURANTS - 2.00%
50,000 Perkins Family Restaurants,
10.13% due 12/15/07................................ 53,125
50,000 Southern Foods,
9.88% due 09/01/07................................. 52,500
----------
105,625
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C> <C>
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - 6.87%
$ 50,000 Amphenol Corp.,
9.88% due 05/15/07.............................. $ 52,000
50,000 Global Crossing,
9.63% due 05/15/08.............................. 52,500
50,000 Intermedia Communications, Inc.,
8.50% due 01/15/08.............................. 46,750
100,000(1) NTL, Inc.,
11.50% due 10/01/08............................. 113,000
100,000(1) Intermedia Communications, Inc.,
9.50% due 03/01/09.............................. 98,300
----------
362,550
----------
UTILITIES - COMMUNICATION - 3.95%
200,000 Southwestern Bell Telephone Co.,
6.55% due 10/07/08.............................. 208,288
----------
TOTAL CORPORATE BONDS
(Cost $2,406,539)............................... 2,462,713
----------
UNITED STATES GOVERNMENT -
LONG TERM - 23.71%
UNITED STATES NOTES - 23.71%
United States Treasury Bonds,
100,000 5.50% due 08/15/28.............................. 96,500
United States Treasury Notes:
650,000 5.63% due 05/15/01.............................. 655,993
500,000 5.25% due 08/15/03.............................. 498,830
----------
1,251,323
----------
TOTAL UNITED STATES GOVERNMENT -
LONG TERM
(Cost $1,273,828)............................... 1,251,323
----------
FOREIGN BONDS - 24.44%
BANKS - OTHER - 1.99%
128,000 Export/Import Bank of Korea,
6.38% due 02/15/06.............................. 104,800
----------
FINANCIAL SERVICES - 0.99%
50,000 Tembec Finance,
9.88% due 09/30/05.............................. 52,250
----------
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
50 February 28, 1999 (Unaudited)
STRATEGIC BOND FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
GOVERNMENT BOND - FOREIGN - 17.66%
$ 188,000 Republic of Argentina,
6.19% due 03/31/05................................. $ 154,837
117,762 Brazil C Bond,
8.00% due 04/15/14................................. 69,049
350,000 Canada,
5.25% due 09/01/03................................. 231,056
50,000,000 Hellenic Republic,
8.80% due 06/19/07................................. 197,868
100,000 Poland,
4.00% due 10/27/14................................. 92,125
250,000 United States of Mexico, W-B
6.25% due 12/31/19................................. 186,725
----------
TOTAL GOVERNMENT BONDS - FOREIGN 931,660
----------
TELECOMMUNICATIONS -
UNITED KINGDOM - 3.80%
200,000 Cable & Wireless Communication,
6.38% due 03/06/03................................. 200,478
----------
TOTAL FOREIGN BONDS
(Cost $1,237,069)................................... 1,289,188
----------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 2.65%
SEMICONDUCTORS - 2.65%
Avnet, Inc.,
140,000 4.85% due 03/01/99................................. 140,000
----------
TOTAL CORPORATE SHORT TERM
(Cost $140,000)..................................... $ 140,000
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
PREFERRED STOCK - 0.94%
$ 500 Global Crossing........................................... $ 49,375
----------
TOTAL PREFERRED STOCK
(Costs $50,000)............................................ 49,375
----------
TOTAL INVESTMENTS
(Cost $5,107,436) - 98.40%................................. 5,192,599
Other assets less liabilities,
net - 1.60%............................................... 85,189
----------
NET ASSETS (equivalent
to $10.25 per share on
514,705 shares
outstanding) - 100% ...................................... $5,277,788
----------
</TABLE>
(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 February
28, 1999 the aggregate value of these securities was $557,300,
representing 10.56% of net assets.
<TABLE>
<CAPTION>
<S> <C>
- --------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized; 514,705 shares outstanding............ $ 5,779
Additional paid in capital.......................................... 5,145,369
Undistributed net realized gain on securities....................... 17,903
Undistributed net investment income................................. 23,574
Unrealized appreciation of securities............................... 85,163
----------
$5,277,788
NET ASSETS APPLICABLE TO SHARES OUTSTANDING.........................
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
STRATEGIC BOND FUND - FINANCIAL STATEMENTS (Unaudited) 51
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest............................................................. $184,637
--------
Total investment income............................................. 184,637
--------
EXPENSES:
Advisory fees........................................................ 15,356
Custodian fees....................................................... 9,526
Administrative service fee........................................... 6,398
Audit fees and tax services.......................................... 6,108
Trustees' fees and expenses.......................................... 1,639
Accounting services.................................................. 768
Pricing services..................................................... 518
Report to shareholders............................................... 480
Miscellaneous........................................................ 232
--------
Total expenses...................................................... 41,025
Expense reimbursement (see Note 3)................................. (18,962)
--------
Net expenses........................................................ 22,063
--------
NET INVESTMENT INCOME................................................ 162,574
--------
REALIZED AND UNREALIZED GAIN ON SECURITIES:
Net realized gain on securities...................................... 28,967
Net unrealized appreciation of securities during the period.......... 85,163
--------
Net realized and unrealized gain on securities during the period.... 114,130
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS .................... $276,704
--------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the period
six months ended August 26, 1998
February 28, 1999 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income..................... $ 162,574 $ -
Net realized gain on securities........... 28,967 -
Net unrealized appreciation of
securities................................ 85,163 -
-------------------------------------
Increase in net assets resulting from
operations............................... 276,704 -
-------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income..................... (139,000) -
Net realized gain on securities........... (11,064) -
-------------------------------------
Decrease in net assets resulting from
distributions to shareholders............ (150,064) -
-------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................. 4,994,417 6,667
Proceeds from shares issued for
distributions reinvested.................. 150,064 -
-------------------------------------
5,144,481 6,667
Cost of shares repurchased................ - -
Increase in net assets resulting from
share transactions....................... 5,144,481 6,667
-------------------------------------
TOTAL INCREASE IN NET ASSETS.............. 5,271,121 6,667
-------------------------------------
NET ASSETS:
Beginning of period....................... 6,667 -
-------------------------------------
End of period (including undistributed net
investment income of $23,574 and $0)...... $5,277,788 $6,667
-------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold............................... 499,437 667
Shares issued for distributions
reinvested................................ 14,601 -
Shares repurchased........................ - -
-------------------------------------
Increase in shares outstanding........... 514,038 667
Shares outstanding:
Beginning of period...................... 667 -
-------------------------------------
End of period............................ 514,705 667
-------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
52 February 28, 1999 (Unaudited)
DOMESTIC BOND FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CORPORATE BONDS - 44.45%
AIRLINES - 2.70%
$150,000 Continental Airlines,
7.08% due 11/01/04.............................. $ 153,690
----------
BEVERAGE -
BREWERS/DISTRIBUTORS - 4.47%
250,000 J Seagram & Sons, Inc.,
7.50% due 12/15/18.............................. 255,062
----------
BROADCASTING - 1.93%
150,000(1) Fox/Liberty Networks, LLC.,
0.00% due 08/15/07.............................. 110,250
----------
DRUGS - 2.60%
150,000 McKesson Corp.,
6.40% due 03/01/08.............................. 148,008
----------
ELECTRICAL EQUIPMENT - 2.65%
150,000 Philips Electronics, NV.,
7.20% due 06/01/26.............................. 151,713
----------
ENTERTAINMENT - 2.72%
150,000 Time Warner, Inc.,
7.25% due 10/15/17.............................. 154,914
----------
FOODS - 2.57%
150,000 ConAgra, Inc.,
5.50% due 10/15/02.............................. 146,726
----------
HEALTHCARE - 1.95%
150,000 Integrated Health Services,
9.25% due 01/15/08.............................. 111,000
----------
POLLUTION CONTROL - 2.63%
150,000 Browning-Ferris Industries, Inc.,
6.08% due 01/18/00.............................. 149,650
----------
SAVINGS & LOAN - 2.63%
150,000 Household Finance, Co.,
6.40% due 06/17/08.............................. 149,900
----------
TELECOMMUNICATIONS - 7.17%
150,000 Nextel Communications, Inc.
12.00% due 11/01/08............................. 168,750
150,000 US West Cap Funding, Inc.,
6.25% due 07/15/05.............................. 151,531
150,000(1) Spectrasite Holdings, Inc.,
12.0% due 07/15/08.............................. 88,500
----------
408,781
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
UTILITIES - COMMUNICATION - 2.82%
$ 150,000 GTE Corp.,
7.90% due 02/01/27...................................... $ 161,223
----------
FINANCE COMPANIES - 7.61%
146,412 Commercial Mortgage Acceptance,
5.80% due 03/15/06...................................... 142,935
148,612 DLJ Commercial Mortgage Corp.,
5.88% due 11/12/31...................................... 146,128
150,000 Sears Credit Account Master Trust,
5.25% due 10/16/08...................................... 145,452
----------
434,515
----------
TOTAL CORPORATE BONDS
(Cost $2,587,941)....................................... 2,535,432
----------
CORPORATE SHORT TERM
COMMERCIAL PAPER - 1.86%
106,000 Sonat, Inc.,
4.98% due 03/01/99...................................... 106,000
----------
TOTAL CORPORATE SHORT TERM
(Cost $106,000)......................................... 106,000
----------
UNITED STATES GOVERNMENT
LONG TERM - 51.07%
FEDERAL AGENCIES - 11.90%
669,852 National Mortgage Association,
7.00% due 09/15/28...................................... 679,270
----------
GOVERNMENT SPONSORED - 6.85%
400,000 Federal Home Loan Bank,
5.13% due 09/15/03...................................... 391,064
----------
UNITED STATES NOTES - 32.32%
1,700,000 United States Treasury Notes,
6.88% due 05/15/06...................................... 1,844,500
----------
UNITED STATES GOVERNMENT LONG TERM
(Cost $2,981,624)....................................... 2,914,834
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS
(Cost $5,675,565) - 97.38%................................ 5,556,266
Other assets less liabilities
net - 2.62%............................................... 150,783
----------
NET ASSETS
(equivalent
to $9.90 per share on
576,616 shares
outstanding) - 100%....................................... $5,707,049
----------
</TABLE>
(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 February 28,
1999 the aggregate value of these securities was $198,750, representing
3.48% of net assets.
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized 576,616 shares outstanding.............. $ 5,766
Additional paid in capital.......................................... 5,775,500
Undistributed net realized gain on securities....................... 40,220
Undistributed net investment income................................. 4,862
Unrealized depreciation of securities............................... (119,299)
----------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING ........................ $5,707,049
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
DOMESTIC BOND FUND - FINANCIAL STATEMENTS (Unaudited) 53
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Interest............................................................. $158,844
--------
Total investment
income.............................................................. 158,844
--------
EXPENSES:
Advisory fees........................................................ 15,700
Custodian fees....................................................... 9,705
Administrative service fee........................................... 6,541
Audit fees and tax services.......................................... 6,249
Trustees' fees and expenses.......................................... 1,648
Accounting services.................................................. 786
Report to shareholders............................................... 576
Pricing services..................................................... 530
Miscellaneous........................................................ 245
--------
Total expenses...................................................... 41,980
Expense reimbursement (see Note 3).................................. (20,782)
--------
Net expenses........................................................ (21,198)
--------
NET INVESTMENT INCOME................................................ 137,646
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain on investments..................................... 103,855
Net unrealized depreciation of investments during the period......... (119,299)
--------
Net realized and unrealized gain on securities during the period.... (15,444)
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $122,202
--------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the six For the period
months ended August 26, 1998
February 28, 1999 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................... $ 137,646 $ -
Net realized gain on securities.......... 103,855 -
Net unrealized depreciation of securities
during the period........................ (119,299) -
------------------------------------
Increase in net assets resulting from
operations.............................. 122,202 -
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................... (132,784) -
Net realized gain on securities.......... (63,635) -
------------------------------------
Decrease in net assets resulting from
distributions to shareholders........... (196,419) -
------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................ 5,578,189 6,667
Proceeds from shares issued for
distributions reinvested................. 196,419 -
------------------------------------
5,774,608 6,667
Cost of shares repurchased............... (9) -
------------------------------------
Increase in net assets resulting from
share transactions...................... 5,774,599 6,667
------------------------------------
TOTAL INCREASE IN NET ASSETS............. 5,700,382 6,667
NET ASSETS:
Beginning of year........................ 6,667 -
------------------------------------
End of period (including undistributed
net investment income
of $4,862 and $0)........................ $5,707,049 $6,667
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold.............................. 557,021 167
Shares issued for distributions
reinvested............................... 19,429 -
Shares repurchased....................... (1) -
------------------------------------
Increase in shares outstanding.......... 576,449 167
Shares outstanding:
Beginning of period..................... 167 -
------------------------------------
End of period........................... 576,616 167
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
54 February 28, 1999 (Unaudited)
CORE BOND FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
CORPORATE BONDS - 35.22%
BANKS OTHER - 1.13%
BankAmerica Corp.,
$ 60,000 5.88% due 02/15/09....................................... $ 57,785
----------
BEVERAGE - BREWERS/DISTRIBUTORS - 0.51%
Anheuser-Busch Companies, Inc.,
25,000 7.25% due 09/15/15....................................... 26,064
----------
BEVERAGE - SOFT DRINKS - 0.53%
Coca Cola Enterprises, Inc.,
25,000 7.88% due 02/01/02....................................... 26,399
----------
CHEMICAL - MAJOR - 2.96%
Borg-Warner Automotive, Inc.,
35,000 6.50% due 02/15/09....................................... 34,173
Monsanto Co.,
60,000 5.38% due 12/01/01....................................... 59,144
Monsanto Co.,
60,000 5.88% due 12/01/08....................................... 58,318
----------
151,635
----------
ELECTRICAL EQUIPMENT - 1.68%
National Service Industry, Inc.,
90,000 6.00% due 02/01/09....................................... 86,107
----------
FINANCE COMPANIES - 3.23%
AT&T Financial Corp.,
60,000 6.75% due 02/04/02....................................... 59,999
Capital One Bank,
25,000 7.15% due 09/15/06....................................... 25,123
Grand Metro Inv.,
110,000 6.55% due 01/06/04....................................... 80,488
----------
165,610
----------
FINANCIAL SERVICES - 1.94%
Bear Stearns Companies Inc.,
25,000 6.15% due 03/02/04....................................... 24,833
Merrill Lynch & Co.,
75,000 5.71% due 01/15/02....................................... 74,579
----------
99,412
----------
HEAVY DUTY TRUCKS/PARTS - 3.01%
Dana Corp.,
60,000 6.25% due 03/01/04....................................... 59,942
60,000 6.50% due 03/01/09....................................... 59,657
35,000 7.00% due 03/01/29....................................... 34,611
----------
154,210
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INFORMATION PROCESSING - DATA SERVICES - 1.00%
$ 50,000 Cendant Corp.,
7.75% due 12/01/03...................................... $ 51,219
-----------
LEISURE TIME - 0.49%
25,000 Harrahs Operating Co. Inc.,
7.50% due 01/15/09...................................... 24,851
-----------
MERCHANDISE - DRUG - 1.43%
75,000 Rite Aid Corp.,
6.00% due 12/15/05...................................... 73,037
-----------
OIL - INTEGRATED DOMESTIC - 1.80%
60,000 Occidental Petroleum Corp.,
8.45% due 02/15/29...................................... 63,004
30,000 USX-Marathon Group.,
6.65% due 02/01/06...................................... 29,202
-----------
92,206
-----------
OIL - SERVICE PRODUCTS - 2.33%
125,000 Halliburton Co.,
5.63% due 12/01/08...................................... 119,541
-----------
OIL SERVICES - 3.29%
75,000 Baker Hughes, Inc.,
6.88% due 01/15/29...................................... 74,303
60,000 Canadian Occidental Petroleum,
7.13% due 02/04/04...................................... 58,126
35,000 Union Oil of California,
7.67% due 04/19/02...................................... 35,951
-----------
168,380
-----------
OIL/GAS PRODUCERS - 1.65%
90,000 Enron Oil and Gas,
6.00% due 12/15/08...................................... 84,606
-----------
PAPER/FOREST PRODUCTS - 1.18%
60,000 Temple-Inland, Inc., Series F
6.75% due 03/01/09...................................... 60,390
-----------
SECURITIES RELATED - 4.21%
120,000 Merrill Lynch & Co., Inc.,
6.00% due 02/17/09...................................... 115,813
25,000 Merrill Lynch MTNB,
7.20% due 10/15/12...................................... 25,553
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- ------------------------------------------------------------------------------
SECURITIES RELATED - Continued
$ 75,000 Paine Webber Group, Inc.,
6.45% due 12/01/03.................................... $ 73,942
-----------
215,308
-----------
UTILITIES - COMMUNICATION - 1.12%
60,000 GTE California, Inc.,
5.50% due 01/15/09.................................... 57,491
-----------
UTILITIES - ELECTRIC - 1.73%
40,000 Arizona Public Service,
5.88% due 02/15/04.................................... 39,581
25,000 Duke Energy Corp.,
5.88% due 03/01/03.................................... 25,076
25,000 National Rual Utilities,
5.70% due 01/15/10.................................... 24,044
-----------
88,701
-----------
TOTAL CORPORATE BONDS
(Cost $1,835,803)..................................... 1,802,952
-----------
CORPORATE SHORT TERM COMMERCIAL PAPER - 17.72%
CHEMICAL MAJOR - 4.43%
227,000 Eastman Chemical Co.,
5.00% due 03/01/99.................................... 227,000
-----------
METALS ALUMINUM - 4.43%
227,000 Reynolds Metals Co.,
5.00% due 03/01/99.................................... 227,000
-----------
SEMICONDUCTORS - 4.43%
227,000 Avnet, Inc.,
4.85% due 03/01/1999.................................. 227,000
-----------
UTILITIES ELECTRIC - 4.43%
227,000 Penn Power & Light Energy Trust,
4.98% due 03/01/99.................................... 227,000
-----------
TOTAL CORPORATE SHORT TERM
(Cost $908,000)....................................... 908,000
-----------
UNITED STATES GOVERNMENT - LONG TERM - 58.00%
FEDERAL AGENCIES - 11.68%
Government National Mortgage Association,
399,226 6.50% due 12/15/28.................................... 396,855
33,290 6.50% due 01/15/29.................................... 33,092
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 55
CORE BOND FUND - STATEMENT OF NET ASSETS CONTINUED
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
FEDERAL AGENCIES - Continued
Federal Home Loan Bank:
$ 75,000 5.45% due 01/12/09...................................... $ 72,117
25,000 5.40% due 11/20/03...................................... 24,567
75,000 5.32% due 12/23/08...................................... 71,390
----------
598,021
----------
GOVERNMENT SPONSORED - 46.32%
Federal Home Loan Mortgage Corporation:
45,000 7.00% due 03/18/14...................................... 46,125
45,000 6.50% due 03/15/29...................................... 45,260
115,000 6.22% due 03/18/08...................................... 114,353
29,401 8.50% 11/01/26.......................................... 30,945
Federal National Mortgage Association:
60,000 7.50% due 03/15/29...................................... 62,363
136,000 7.50% due 03/15/29...................................... 139,612
75,000 6.65% due 11/07/07...................................... 75,410
166,000 6.50% due 03/15/29...................................... 164,833
125,000 6.37% due 01/30/08...................................... 124,590
75,000 5.78% due 02/12/03...................................... 74,402
60,000 5.50% due 12/01/03...................................... 58,997
Federal National Mortgage Association:
441,602 7.50% due 12/01/28...................................... 453,331
32,038 7.00% due 04/01/12...................................... 32,658
99,589 7.00% due 05/01/13...................................... 101,518
33,017 7.00% due 06/01/12...................................... 33,657
30,607 7.00% due 07/01/12...................................... 31,200
65,885 6.00% due 09/01/28...................................... 63,847
741,556 6.00% due 01/01/29...................................... 718,612
----------
2,371,713
----------
TOTAL UNITED STATES GOVERNMENT
(Cost $3,004,854)....................................... 2,969,734
----------
TOTAL INVESTMENT
(Cost $5,748,657) - 110.94% ............................ 5,680,686
Other assets less liabilities,
net - 10.94%............................................ (560,531)
----------
NET ASSETS - (equivalent
to $9.99 per share on
512,637 shares
outstanding) - 100.00%.................................. $5,120,155
----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
- --------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized; 512,637 shares outstanding............ $ 5,126
Additional paid in capital......................................... 5,121,855
Undistributed net realized gain on securities...................... 56,529
Undistributed net investment income................................ 4,616
Unrealized depreciation of securities.............................. (67,971)
----------
NET ASSETS APPLICABLE TO
SHARES OUTSTANDING ................................................ $5,120,155
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
56 CORE BOND FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.............................................................. $136,073
--------
Total investment income.............................................. 136,073
--------
EXPENSES:
Advisory fees......................................................... 12,618
Custodian fees........................................................ 9,449
Administrative service fee............................................ 6,310
Audit fees and tax services........................................... 6,025
Trustees' fees and expenses........................................... 1,609
Accounting services................................................... 757
Pricing services...................................................... 512
Report to shareholders................................................ 465
Miscellaneous......................................................... 227
--------
Total expenses....................................................... 37,972
Expense reimbursement (see Note 3)................................... (17,206)
--------
Net expenses......................................................... 20,766
--------
NET INVESTMENT INCOME................................................. 115,307
--------
REALIZED AND UNREALIZED GAIN (LOSS) ON SECURITIES:
Net realized gain on securities....................................... 72,820
Net unrealized depreciation of securities during the period........... (67,971)
--------
Net realized and unrealized gain on securities during the period..... 4,849
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................... $120,156
--------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the period
six months ended August 26, 1998
February 28, 1999 to August 31, 1998
<S> <C> <C>
------------------------------------
OPERATIONS:
Net investment income.................... $ 115,307 $ -
Net realized gain on securities.......... 72,820 -
Net unrealized depreciation of securities
during the period........................ (67,971) -
------------------------------------
Increase in net assets resulting from
operations.............................. 120,156 -
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: -
Net investment income.................... (110,691) -
Net realized gain on securities.......... (16,291) -
------------------------------------
Decrease in net assets resulting from
distributions to shareholders........... (126,982) -
------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................ 4,993,332 6,667
Proceeds from shares issued for
distributions reinvested................. 126,982 -
------------------------------------
5,120,314 6,667
Cost of shares repurchased............... - -
------------------------------------
Increase in net assets resulting from
share transactions...................... 5,120,314 6,667
------------------------------------
TOTAL INCREASE IN NET ASSETS ............ 5,113,488 6,667
NET ASSETS:
Beginning of period...................... 6,667 -
------------------------------------
End of period (including undistributed
net investment income of $4,616 and $0).. $5,120,155 $6,667
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold.............................. 499,333 667
Shares issued for distributions
reinvested............................... 12,637 -
Shares repurchased....................... - -
------------------------------------
Increase in shares outstanding.......... 511,970 667
Shares outstanding:
Beginning of period..................... 667 -
------------------------------------
End of period........................... 512,637 667
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 57
MONEY MARKET FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
COMMERCIAL PAPER - 79.14%
AEROSPACE/DEFENSE - 4.84%
$250,000 Lockheed Martin Corp.,
4.97% due 05/10/99....................................... $ 247,580
----------
BEVERAGE - SOFT DRINKS - 4.43%
229,000 Coca Cola Enterprises, Inc.,
4.73% due 05/12/99....................................... 226,826
----------
CHEMICAL - MAJOR - 4.43%
229,000 DuPont (E.I.) de Nemours & Co.,
4.73% due 05/14/99....................................... 226,764
----------
CONSUMER FINANCE - 8.84%
228,000 Associates Corp. N. A.,
4.82% due 05/03/99....................................... 226,063
229,000 Sears Roebuck Acceptance Corp.,
4.83% due 06/01/99....................................... 226,166
----------
452,229
----------
DRUGS - 4.36%
225,000 Schering Corporation,
4.83% due 06/01/99....................................... 223,249
----------
ENTERTAINMENT - 4.40%
230,000 Walt Disney Co.,
4.81% due 08/11/99....................................... 224,989
----------
FINANCE COMPANIES - 21.03%
200,000 Caterpillar Financial Services,
4.77% due 04/22/99....................................... 198,616
227,000 Ford Motor Credit Co.,
5.09% due 03/04/99....................................... 226,903
225,000 General Electric Cap Svcs, Inc.,
5.12% due 03/01/99....................................... 225,000
228,000 General Motors Acceptance Corp.,
4.78% due 05/04/99....................................... 226,049
200,000 International Lease Finance Corp.,
4.77% due 03/10/99....................................... 199,760
----------
1,076,328
----------
FINANCIAL SERVICES - 3.89%
200,000 British Province of Columbia,
4.72% due 04/06/99....................................... 199,056
----------
</TABLE>
<TABLE>
<CAPTION>
PAR MARKET
VALUE VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
FOODS - 4.41%
$229,000 Archer Daniels Midland Co.,
4.79% due 06/15/99........................ $225,763
----------
INSURANCE - MULTILINE - 4.85%
250,000(1) Marsh & McLennan Companies, Inc., 5.08%
due 04/27/99.............................. 247,958
----------
MISCELLANEOUS - 4.81%
250,000 Student Loan Marketing Association, 4.70%
due 06/30/99.............................. 246,041
----------
SECURITIES RELATED - 8.85%
227,000 Merrill Lynch & Co.,
5.16% due 03/19/99........................ 226,405
228,000 Morgan Stanley, Dean Witter, Discover,
4.80% due 04/15/99........................ 226,623
----------
453,028
----------
TOTAL COMMERCIAL PAPER
(Cost $4,049,811).......................... 4,049,811
----------
UNITED STATES GOVERNMENT - 21.02%
GOVERNMENT SPONSORED - 21.02%
630,000 Federal Home Loan Mortgage Corporation,
4.96% due 03/05/99........................ 628,755
450,000 Federal National Mortgage Association,
4.91% due 04/02/99........................ 447,394
----------
TOTAL UNITED STATES GOVERNMENT
(Cost $1,076,149).......................... 1,076,149
----------
TOTAL INVESTMENT
(Cost $5,125,960) - 100.16%................ 5,125,960
Other assets less liabilities,
net - (0.16)%............................. (8,380)
----------
NET ASSETS (equivalent to $1.00 per
share on 5,117,580 shares
outstanding) - 100.00% ................... $5,117,580
----------
(1) Securities exempt from registration under Rule 144A of the Securities
Act 1933. These securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. At February
28, 1999 the aggregate value of these securities was $247,958,
representing 4.85% of net assets.
<S> <C>
- -------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized; 5,117,580 shares outstanding........... $ 51,176
Additional paid in capital.......................................... 5,066,404
----------
NET ASSETS APPLICABLE TO
SHARES OUTSTANDING.................................................. $5,117,580
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
58 MONEY MARKET FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest.............................................................. $131,873
--------
Total investment income.............................................. 131,873
--------
EXPENSES:
Custodian fees........................................................ 9,361
Administrative service fee............................................ 6,237
Advisory fees......................................................... 6,237
Audit fees............................................................ 5,957
Trustees' fees and expenses........................................... 1,597
Report to shareholders................................................ 606
Accounting services................................................... 748
Pricing services...................................................... 506
Miscellaneous......................................................... 224
--------
Total expenses....................................................... 31,473
Expense reimbursement................................................ (17,003)
--------
Net expense.......................................................... 14,470
--------
NET INVESTMENT INCOME................................................. 117,403
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................... $117,403
--------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the period
six months ended August 26, 1998
February 28, 1999 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................... $ 117,403 $ -
------------------------------------
Increase in net assets resulting from
operations.............................. 117,403 -
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income.................... (117,403) -
------------------------------------
Decrease in net assets resulting from
distributions to shareholders........... (117,403) -
------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................ 4,993,510 6,667
Proceeds from shares issued for
distributions reinvested................. 117,403 -
------------------------------------
5,110,913 6,667
------------------------------------
Cost of shares repurchased............... - -
------------------------------------
Increase in net assets resulting from
share transactions...................... 5,110,913 6,667
------------------------------------
TOTAL INCREASE IN NET ASSETS............. 5,110,913 6,667
NET ASSETS:
Beginning of period...................... 6,667 -
------------------------------------
End of period............................ $5,117,580 $6,667
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold.............................. 4,999,510 6,667
Shares issued for distributions
reinvested............................... 111,403 -
Shares repurchased....................... - -
------------------------------------
Increase in shares outstanding.......... 5,110,913 6,667
Shares outstanding:
Beginning of period..................... 6,667 -
------------------------------------
End of period........................... 5,117,580 6,667
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 59
GROWTH LIFESTYLE FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
INVESTMENT COMPANIES - AFFILIATED - 100.04%
BOND FUNDS - 8.83%
53,020 AGSPC 3 Domestic Bond Fund........................ $ 524,899
----------
INTERNATIONAL FUNDS - 28.50%
76,852 AGSPC 3 International Growth Fund................. 785,426
76,366 AGSPC 3 International Value Fund.................. 909,520
----------
1,694,946
----------
LARGE CAP FUNDS - 26.54%
66,036 AGSPC 3 Large Cap Growth Fund..................... 834,027
61,295 AGSPC 3 Large Cap Value Fund...................... 744,118
----------
1,578,145
----------
MID CAP FUNDS - 16.19%
35,544 AGSPC 3 Mid Cap Growth Fund....................... 446,432
41,778 AGSPC 3 Mid Cap Value Fund........................ 515,953
----------
962,385
----------
SMALL CAP FUNDS - 19.98%
50,855 AGSPC 3 Small Cap Growth Fund..................... 660,101
51,891 AGSPC 3 Small Cap Value Fund...................... 527,736
----------
1,187,837
----------
TOTAL INVESTMENT COMPANIES - AFFILIATED
(Cost $5,156,041)................................. 5,948,212
----------
TOTAL INVESTMENTS
(Cost $5,156,041) - 100.04%....................... $5,948,212
Other assets less liabilities,
net - (0.04%)..................................... (2,653)
----------
NET ASSETS (equivalent
to $11.66 per share on
509,901 shares outstanding) - 100.00%............. $5,945,559
----------
</TABLE>
<TABLE>
<CAPTION>
OF SHARES VALUE
<C> <S> <C>
- -------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par
value per share, unlimited shares
authorized; 509,901 shares outstanding....................... $ 5,099
Additional paid in capital................................... 5,111,747
Undistributed net realized gain on securities................ 26,657
Undistributed net investment income.......................... 9,885
Unrealized appreciation of securities........................ 792,171
----------
NET ASSETS APPLICABLE TO
SHARES OUTSTANDING........................................... $5,945,559
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
60 GROWTH LIFESTYLE FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Dividends.......................................................... $ 11,102
--------
Total investment
income............................................................ 11,102
--------
EXPENSES:
Advisory fees...................................................... 2,754
--------
Total expenses.................................................... 2,754
--------
NET INVESTMENT INCOME.............................................. 8,348
--------
REALIZED AND UNREALIZED GAIN ON SECURITIES AND CAPITAL
GAIN DISTRIBUTIONS:
Net realized gain on securities.................................... 26,657
Capital gain distributions......................................... 12,763
Net unrealized appreciation of securities during the period........ 792,171
--------
Net realized and unrealized gain on securities and capital gain
distributions during the period................................... 831,591
--------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS.................................................... $839,939
--------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the period
six months ended August 26, 1998
February 28, 1999 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income.................... $ 8,348 $ -
Net realized gain on securities.......... 26,657 -
Capital gain distributions............... 12,763 -
Net unrealized appreciation of securities
during the period........................ 792,171 -
------------------------------------
Increase in net assets resulting from
operations.............................. 839,939 -
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................... (11,226) -
Net realized gain on securities.......... - -
------------------------------------
Decrease in net assets resulting from
distributions to shareholders........... (11,226) -
------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................ 5,098,959 6,667
Proceeds from shares issued for
distributions reinvested................. 11,226 -
------------------------------------
5,110,185 6,667
Cost of shares repurchased............... (6) -
------------------------------------
Increase in net assets resulting from
share transactions...................... 5,110,179 6,667
------------------------------------
TOTAL INCREASE IN NET ASSETS............. 5,938,892 6,667
NET ASSETS:
Beginning of period...................... 6,667 -
------------------------------------
End of period (including undistributed
net investment income of $9,885 and $0).. $5,945,559 $6,667
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold.............................. 508,263 667
Shares issued for distributions
reinvested............................... 972 -
Shares repurchased....................... (1) -
------------------------------------
Increase in shares outstanding.......... 509,234 667
Shares outstanding:
Beginning of period..................... 667 -
------------------------------------
End of period........................... 509,901 667
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 61
MODERATE GROWTH LIFESTYLE FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- ------------------------------------------------------------------------------
INVESTMENT COMPANIES - AFFILIATED - 100.05%
BOND FUNDS - 25.16%
153,803 AGSPC 3 Domestic Bond Fund......................... $1,522,646
----------
INTERNATIONAL FUNDS - 15.06%
40,766 AGSPC 3 International Growth Fund.................. 416,635
41,537 AGSPC 3 International Value Fund................... 494,712
----------
911,347
----------
LARGE CAP FUNDS - 30.36%
73,769 AGSPC 3 Large Cap Growth Fund...................... 931,701
74,634 AGSPC 3 Large Cap Value Fund....................... 906,061
----------
1,837,762
----------
MID CAP FUNDS - 15.07%
33,084 AGSPC 3 Mid Cap Growth Fund........................ 415,536
40,191 AGSPC 3 Mid Cap Value Fund......................... 496,360
----------
911,896
----------
SMALL CAP FUNDS - 14.40%
32,549 AGSPC 3 Small Cap Growth Fund...................... 422,482
44,146 AGSPC 3 Small Cap Value Fund....................... 448,967
----------
871,449
----------
TOTAL INVESTMENT COMPANIES - AFFILIATED
(Cost $5,428,690).................................. 6,055,100
----------
TOTAL INVESTMENTS
(Cost $5,428,690) - 100.05%........................ 6,055,100
Other assets less liabilities,
net - (0.05%)...................................... (2,846)
----------
NET ASSETS (equivalent
to $11.50 per share on
526,430 shares outstanding) - 100.00%.............. $6,052,254
----------
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
<S> <C>
- -------------------------------------------------------------------------------
NET ASSETS REPRESENTED
BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized; 526,430 shares outstanding........... $ 5,264
Additional paid in capital........................................ 5,303,892
Undistributed net realized gain on securities..................... 93,956
Undistributed net investment income............................... 22,732
Unrealized appreciation of securities............................. 626,410
----------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING....................... $6,052,254
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
62 MODERATE GROWTH LIFESTYLE FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME:
Dividends....................................................... $ 11,302
--------
Total investment income........................................ 11,302
--------
EXPENSES:
Advisory fees................................................... 2,753
--------
Total expenses................................................. 2,753
--------
NET INVESTMENT INCOME........................................... 8,549
--------
REALIZED AND UNREALIZED GAIN ON
SECURITIES AND CAPITAL GAIN DISTRIBUTIONS:
Net realized gain on securities................................. 93,956
Capital gain distributions...................................... 34,095
Net unrealized appreciation of investments during the period ... 626,410
--------
Net realized and unrealized gain on securities and capital gain
distributions during the period................................ 754,461
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ $763,010
--------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the period
six months ended August 26, 1998
February 28, 1999 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income..................... $ 8,549 -
Net realized gain on securities........... 93,956 -
Capital gain distributions................ 34,095 -
Net unrealized appreciation of securities
during the period......................... 626,410 -
------------------------------------
Increase in net assets resulting from
operations............................... 763,010 -
-------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income..................... (19,912) -
Net realized gain on securities........... - -
------------------------------------
Decrease in net assets resulting from
distributions to shareholders............ (19,912) -
------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................. 5,282,959 6,667
Proceeds from shares issued for
distributions reinvested.................. 19,912 -
------------------------------------
5,302,489 6,667
Cost of shares repurchased................ (382) -
------------------------------------
Increase in net assets resulting from
share transactions....................... 5,302,489 6,667
------------------------------------
TOTAL INCREASE IN NET ASSETS.............. 6,045,587 6,667
NET ASSETS:
Beginning of period....................... 6,667 -
------------------------------------
End of period (including undistributed net
investment income of $22,732 and $0)...... $6,052,254 $6,667
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold............................... 524,056 667
Shares issued for distributions
reinvested................................ 1,739 -
Shares repurchased........................ (32) -
------------------------------------
Increase in shares outstanding........... 525,763 667
Shares outstanding:
Beginning of period...................... 667 -
------------------------------------
End of period............................ 526,430 667
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
February 28, 1999 (Unaudited) 63
CONSERVATIVE GROWTH LIFESTYLE FUND - STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
NUMBER MARKET
OF SHARES VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
INVESTMENT COMPANIES - AFFILIATED - 100.05%
BOND FUNDS - 40.24%
232,233 AGSPC 3 Domestic Bond Fund......................... $2,299,101
----------
INTERNATIONAL FUNDS - 9.98%
27,348 AGSPC 3 International Growth Fund.................. 279,492
24,410 AGSPC 3 International Value Fund................... 290,718
----------
570,210
----------
LARGE CAP FUNDS - 30.24%
69,370 AGSPC 3 Large Cap Growth Fund ..................... 876,151
70,114 AGSPC 3 Large Cap Value Fund....................... 851,188
----------
1,727,339
----------
MID CAP FUNDS - 9.98%
22,180 AGSPC 3 Mid Cap Growth Fund........................ 278,569
23,596 AGSPC 3 Mid Cap Value Fund......................... 291,419
----------
569,988
----------
SMALL CAP FUNDS - 9.61%
21,894 AGSPC 3 Small Cap Growth Fund ..................... 284,187
26,026 AGSPC 3 Small Cap Value Fund ...................... 264,685
----------
548,872
----------
TOTAL INVESTMENT COMPANIES - AFFILIATED
(Cost $5,229,019).................................. 5,715,510
----------
TOTAL INVESTMENTS
(Cost $5,229,019) - 100.05%........................ 5,715,510
Other assets less liabilities,
net - (0.04%)...................................... (2,704)
----------
NET ASSETS (equivalent
to $11.24 per share on
508,137 shares outstanding) - 100.00%.............. $5,712,806
----------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
- -------------------------------------------------------------------------------
NET ASSETS REPRESENTED BY:
Shares of beneficial interest, $.01 par value per share,
unlimited shares authorized; 508,137 shares outstanding............. $ 5,081
Additional paid in capital.......................................... 5,087,380
Undistributed net realized gain on securities....................... 102,331
Undistributed net investment income................................. 31,523
Unrealized appreciation of securities............................... 486,491
----------
NET ASSETS APPLICABLE TO
SHARES OUTSTANDING ................................................. $5,712,806
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
64 CONSERVATIVE GROWTH LIFESTYLE FUND - FINANCIAL STATEMENTS (Unaudited)
STATEMENT OF OPERATIONS
For the six months ended February 28, 1999
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividends....................................................... $ 25,041
--------
Total investment
income......................................................... 25,041
--------
EXPENSES:
Advisory fees................................................... 2,703
--------
Total expenses................................................. 2,703
--------
NET INVESTMENT
INCOME.......................................................... 22,338
--------
REALIZED AND UNREALIZED GAIN ON
SECURITIES AND CAPITAL GAIN DISTRIBUTIONS:
Net realized gain on securities................................. 102,331
Capital gain distributions...................................... 36,957
Net unrealized appreciation of investments during the period ... 486,491
--------
Net realized and unrealized gain on securities and capital gain
distributions during the period................................ 625,779
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ $648,117
--------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the For the period
six months ended August 26, 1998
February 28, 1999 to August 31, 1998
------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income..................... $ 22,338 $ -
Net realized gain on securities........... 102,331 -
Capital gain distributions................ 36,957 -
Net unrealized appreciation of securities
during the period......................... 486,491 -
------------------------------------
Increase in net assets resulting from
operations............................... 648,117 -
------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income..................... (27,772) -
Net realized gain on securities........... - -
------------------------------------
Decrease in net assets resulting from
distributions to shareholders............ (27,772) -
------------------------------------
SHARE TRANSACTIONS:
Proceeds from shares sold................. 5,058,126 6,667
Proceeds from shares issued for
distributions reinvested.................. 27,772 -
------------------------------------
5,085,898 -
Cost of shares repurchased................ (104) -
------------------------------------
Increase in net assets resulting from
share transactions....................... 5,085,794 6,667
------------------------------------
TOTAL INCREASE IN NET ASSETS.............. 5,706,139 6,667
NET ASSETS:
Beginning of period....................... 6,667 -
------------------------------------
End of period (including undistributed net
investment income of $31,523 and $0)...... $5,712,806 $6,667
------------------------------------
CHANGE IN SHARES OUTSTANDING:
Shares sold............................... 505,004 667
Shares issued for distributions
reinvested................................ 2,475 -
Shares repurchased........................ (9) -
------------------------------------
Increase in shares outstanding........... 507,470 667
Shares outstanding:
Beginning of period...................... 667 -
------------------------------------
End of period............................ 508,137 667
------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) 65
Note 1 -- Organization
American General Series Portfolio Company 3 (the "Series" or "AGSPC 3") was
organized as a Delaware business trust on May 6, 1998 by The Variable Annuity
Life Insurance Company ("VALIC") and is registered under the Investment Company
Act of 1940, as amended, (the "1940 Act") as an open-end, management investment
company. On August 26, 1998 VALIC contributed $100,000 to the Series as its
initial funding. On September 1, 1998 VALIC contributed an additional
$74,900,000 and the Series commenced operations. The Series consists of the
following 18 separate investment portfolios or "funds", each of which is, in
effect, a separate mutual fund issuing its own separate class of shares of
beneficial interest.
International Growth Fund
Large Cap Growth Fund
Mid Cap Growth Fund
Small Cap Growth Fund
International Value Fund
Large Cap Value Fund
Mid Cap Value Fund
Small Cap Value Fund
Socially Responsible Fund
Balanced Fund
High Yield Bond Fund
Strategic Bond Fund
Domestic Bond Fund
Core Bond Fund
Money Market Fund
Growth Lifestyle Fund*
Moderate Growth Lifestyle Fund*
Conservative Growth Lifestyle Fund*
* The lifestyle funds represent "funds of funds" which invest in up to nine
underlying AGSPC 3 funds.
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 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 Directors.
Lifestyle fund securities are valued at the net asset value (market value) of
the underlying AGSPC3 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, 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. The 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>
66 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.
F. 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.
G. 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.
H. 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, which declares daily. 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 August 26, 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, and the Core Bond Fund.
Bankers Trust New York Company -- 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>
International Growth Fund 0.90% on the first $100 million
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 Fund 1% on the first $25 million
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 the assets more than $750
million
Small Cap Value Fund 0.75% on the first $50 million
0.65% on the assets more than $50
million
Socially Responsible Fund 0.25%
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 0.50% on the first $200 million
0.45% on the next $300 million
0.40% on assets more than $500 million
Money Market Fund 0.25%
Growth Lifestyle Fund 0.10%
Moderate Growth Lifestyle Fund 0.10%
Conservative Growth Lifestyle Fund 0.10%
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONTINUED 67
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 net assets:
<TABLE>
<CAPTION>
Total Fund
Expense After
Fund Name Reimbursement
------------------------------------------
<S> <C>
International Growth Fund 1.15%
Large Cap Growth Fund .86%
Mid Cap Growth Fund .79%
Small Cap Growth Fund 1.16%
International Value Fund 1.04%
Large Cap Value Fund .81%
Mid Cap Value Fund 1.05%
Small Cap Value Fund .98%
Socially Responsible Fund .56%
Balanced Fund .82%
High Yield Bond Fund .99%
Strategic Bond Fund .89%
Domestic Bond Fund .78%
Core Bond Fund .80%
Money Market Fund .56%
</TABLE>
On August 26, 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 February 28, 1999, the Series paid VALIC
$12,337 for such services.
On August 26, 1998, the Series entered into an Administrative Services
Agreement with VALIC for the provision of recordkeeping and shareholder
services. During the period ended February 28, 1999, the Series paid VALIC
$102,806, for such services.
At February 28, 1999, VALIC Separate Account A (a registered separate account
of VALIC) owned, directly or indirectly, over five percent of the outstanding
shares of the following Funds:
<TABLE>
<CAPTION>
VALIC Separate
Account A
Fund %
----------------------------------------------
<S> <C>
International Growth Fund 100.00
Large Cap Growth Fund 100.00
Mid Cap Growth Fund 100.00
Small Cap Growth Fund 100.00
International Value Fund 100.00
Large Cap Value Fund 100.00
Mid Cap Value Fund 100.00
Small Cap Value Fund 100.00
Socially Responsible Fund 100.00
Balanced Fund 100.00
High Yield Bond Fund 100.00
Strategic Bond Fund 100.00
Domestic Bond Fund 100.00
Core Bond Fund 100.00
Money Market Fund 100.00
Growth Lifestyle Fund 100.00
Moderate Growth Lifestyle Fund 100.00
Conservative Growth Lifestyle Fund 100.00
</TABLE>
Certain officers and trustees of the Series are officers and directors of
VALIC or American General Corporation.
Note 4 -- Investment Activity
The information in the following table is presented on the basis of cost for
federal income tax purposes at February 28, 1999.
<TABLE>
<CAPTION>
Identified
Cost of Gross Gross Net Unrealized
Investments Unrealized Unrealized Appreciation
Owned Appreciation Depreciation (Depreciation)
----------------------------------------------------
<S> <C> <C> <C> <C>
International Growth Fund $ 5,199,354 $ 367,312 $264,779 $ 102,533
Large Cap Growth Fund.... 10,892,318 1,439,629 138,281 1,301,348
Mid Cap Growth Fund...... 5,355,446 1,117,255 223,898 893,357
Small Cap Growth Fund.... 6,521,850 1,315,242 329,422 985,820
International Value Fund. 5,002,987 1,068,518 126,375 942,143
Large Cap Value Fund..... 5,214,454 985,843 173,520 812,323
Mid Cap Value Fund....... 6,164,373 741,457 234,111 507,346
Small Cap Value Fund..... 5,234,609 393,094 421,341 (28,247)
Socially Responsible Fund 7,143,380 1,067,447 162,779 904,668
Balanced Fund............ 5,936,195 869,227 139,275 729,952
High Yield Bond Fund..... 5,037,468 204,926 67,329 137,597
Strategic Bond Fund...... 5,107,436 143,291 58,128 85,163
Domestic Bond Fund....... 5,675,565 30,035 149,334 (119,299)
Core Bond Fund........... 5,748,657 4,430 72,401 (67,971)
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
68 NOTES TO FINANCIAL STATEMENTS (Unaudited) CONTINUED
During the six months ended February 28, 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>
International Growth Fund............................. $ 8,313,936 $ 3,597,929
Large Cap Growth Fund................................. 11,612,638 2,017,605
Mid Cap Growth Fund................................... 6,176,862 1,259,380
Small Cap Growth Fund................................. 8,251,861 2,962,041
International Value Fund.............................. 7,171,989 2,316,295
Large Cap Value Fund.................................. 7,559,172 1,992,651
Mid Cap Value Fund.................................... 12,614,757 6,382,885
Small Cap Value Fund.................................. 7,129,622 1,852,138
Socially Responsible Fund............................. 7,810,762 1,408,218
Balanced Fund......................................... 8,811,609 3,557,582
High Yield Bond Fund.................................. 5,858,571 974,478
Strategic Bond Fund................................... 8,566,588 3,547,331
Domestic Bond Fund.................................... 9,521,283 3,839,681
Core Bond Fund........................................ 12,182,213 11,506,664
Growth Lifestyle Fund................................. 5,136,104 -
Moderate Growth Lifestyle Fund........................ 5,587,120 256,808
Conservative Growth Lifestyle Fund.................... 5,416,510 285,413
</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 February 28, 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 February, 1999, VALIC has incurred and expensed $27.4 million (pretax)
related to Year 2000 readiness,including $732,000 incurred during 1999. VALIC
currently anticipates that it will incur future costs of $1.4 million for
additional internal staff, third party vendors, and other expenses to maintain
readiness and complete third party contingency plans.
- --------------------------------------------------------------------------------
<PAGE>
FINANCIAL HIGHLIGHTS (Unaudited) 69
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. The average commission rate paid on investment equity
securities (on a per share basis) is presented for the periods beginning
September 1, 1998.
<TABLE>
<CAPTION>
International Large Cap Mid Cap Small Cap International Large Cap Mid Cap
Growth Fund Growth Fund Growth Fund Growth Fund Value Fund Value Fund Value Fund
------------- ----------- ----------- ----------- ------------- ---------- ----------
Six Months Six Months Six Months Six Months Six Months Six Months Six Months
ended 2/28/99 ended 2/28/99 ended 2/28/99 ended 2/28/99 ended 2/28/99 ended 2/28/99 ended 2/28/99
----------------------------------------------------------------------------------------------
<S> <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
----------------------------------------------------------------------------------------------
Income from
investment
operations:
Net investment
income (loss)... 0.03 0.01 (0.01) (0.02) - 0.06 0.07
Net realized gain
on securities... 0.19 2.63 2.57 3.05 1.93 2.14 2.65
----------------------------------------------------------------------------------------------
Total income
from investment
operations...... 0.22 2.64 2.56 3.03 1.93 2.20 2.72
----------------------------------------------------------------------------------------------
Distributions:
Distributions
from net
investment
income.......... - (0.01) - - (0.02) (0.06) (0.07)
Distributions
from net realized
gain on securities - - - (0.05) - - (0.28)
----------------------------------------------------------------------------------------------
Total
distributions... - (0.01) - (0.05) (0.02) (0.06) (0.35)
----------------------------------------------------------------------------------------------
Net asset value
at end of period. $10.22 $12.63 $12.56 $12.98 $11.91 $12.14 $12.37
----------------------------------------------------------------------------------------------
TOTAL RETURN..... 2.79% 26.82% 26.01% 30.84% 19.81% 22.45% 27.52%
----------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA
Ratio of expenses
to average net
assets........... 0.55% 0.43% 0.41% 0.58% 0.53% 0.41% 0.53%
Ratio of expenses
to average net
assets before
expense reductions 0.94% 0.76% 0.82% 0.91% 1.00% 0.75% 0.87%
Ratio of net
investment income
to average net
assets........... 0.27% 0.07% (0.08)% (0.21)% - 0.54% 0.56%
Portfolio
turnover rate.... 75.87% 29.54% 21.13% 49.31% 42.45% 33.90% 108.20%
Number of shares
outstanding at
end of period.... 517,869 836,982 497,667 584,386 502,998 499,500 536,869
Net Assets at the
end of period
(000's).......... $5,293 $10,575 $6,252 $7,585 $5,991 $6,065 $6,641
Average commission
rate paid........ $0.0460 $0.0500 $0.0500 $0.0294 $0.0880 $0.0251 $0.0550
<CAPTION>
Socially
Small Cap Responsible
Value Fund Fund
---------- -----------
Six Months Six Months
ended 2/28/99 ended 2/28/99
--------------------------
<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 0.08
Net realized gain
on securities... 0.30 2.82
--------------------------
Total income
from investment
operations...... 0.36 2.90
--------------------------
Distributions:
Distributions
from net
investment
income.......... (0.06) (0.07)
Distributions
from net realized
gain on securities (0.13) (0.57)
--------------------------
Total
distributions... (0.19) (0.64)
--------------------------
Net asset value
at end of period $10.17 $12.26
--------------------------
TOTAL RETURN..... 3.95% 29.38%
--------------------------
RATIOS/SUPPLEMENTAL
DATA
Ratio of expenses
to average net
assets........... 0.49% 0.29%
Ratio of expenses
to average net
assets before
expense reductions 0.87% 0.62%
Ratio of net
investment income
to average net
assets........... 0.55% 0.65%
Portfolio
turnover rate.... 34.35% 24.76%
Number of shares
outstanding at
end of period.... 515,453 616,663
Net Assets at the
end of period
(000's).......... $5,243 $7,562
Average commission
rate paid......... $0.0200 $0.0354
- ------------------------------------------------
</TABLE>
<PAGE>
70 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. The average commission rate paid on investment equity
securities (on a per share basis) is presented for the periods beginning
September 1, 1998.
<TABLE>
<CAPTION>
Growth
High Yield Strategic Domestic Bond Core Bond Money Market Lifestyle
Balanced Fund Bond Fund Bond Fund Fund Fund Fund Fund
------------- ---------- --------- ------------- --------- ------------ ---------
Six Months Six Months Six Months Six Months Six Months Six Months Six Months
ended 2/28/99 ended 2/28/99 ended 2/28/99 ended 2/28/99 ended 2/28/99 ended 2/28/99 ended 2/28/99
----------------------------------------------------------------------------------------------
<S> <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
----------------------------------------------------------------------------------------------
Income from
investment
operations:
Net investment
income.......... 0.13 0.41 0.32 0.26 0.23 0.02 0.04
Net realized
gain on
securities...... 1.91 0.30 0.23 0.02 0.01 - 1.64
----------------------------------------------------------------------------------------------
Total income
from investment
operations...... 2.04 0.71 0.55 0.28 0.24 - 1.68
----------------------------------------------------------------------------------------------
Distributions:
Distributions
from net
investment
income.......... (0.11) (0.39) (0.28) (0.25) (0.22) (0.02) (0.02)
Distributions
from net
realized gain on
securities...... (0.07) (0.02) (0.13) (0.03) -
----------------------------------------------------------------------------------------------
Total
distributions... (0.18) (0.39) (0.30) (0.38) (0.25) - (0.02)
----------------------------------------------------------------------------------------------
Net asset value
at end of
period........... $11.86 $10.32 $10.25 $9.90 $9.99 $1.00 $11.66
----------------------------------------------------------------------------------------------
TOTAL RETURN..... 20.85% 7.68% 5.96% 3.11% 2.84% 2.63% 16.88%
----------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL
DATA
Ratio of expenses
to average net
assets........... 0.42% 0.50% 0.43% 0.40% 0.41% 0.29% 0.05%
Ratio of expenses
to average net
assets before
expense
reductions....... 0.89% 0.84% 0.79% 0.79% 0.75% 0.63% 0.05%
Ratio of net
investment income
to average net
assets........... 1.03% 3.95% 3.11% 2.56% 2.24% 2.32% 0.37%
Portfolio
turnover rate.... 64.25% 20.39% 69.60% 75.88% 241.44% N/A 0.00%
Number of shares
outstanding at
end of period.... 563,434 519,195 514,705 576,616 512,637 5,117,580 509,901
Net Assets at the
end of period
(000's).......... $6,680 $5,357 $5,278 $5,707 $5,120 $5,118 $5,946
Average
commission rate
paid............. $0.0500 N/A N/A N/A N/A N/A N/A
<CAPTION>
Moderate
Growth Conservative
Lifestyle Growth
Fund Lifestyle
--------- ------------
Six Months Six Months
ended 2/28/99 ended 2/28/99
----------------------------
<S> <C> <C>
PER SHARE DATA
Net asset value
at beginning of
year............. $10.00 $10.00
----------------------------
Income from
investment
operations:
Net investment
income.......... 0.08 0.12
Net realized
gain on
securities...... 1.46 1.18
---------------------------
Total income
from investment
operations...... 1.54 1.30
---------------------------
Distributions:
Distributions
from net
investment
income.......... (0.04) (0.06)
Distributions
from net
realized gain on
securities......
---------------------------
Total
distributions... (0.04) (0.06)
---------------------------
Net asset value
at end of
period........... $11.50 $11.24
---------------------------
TOTAL RETURN..... 15.45% 13.01%
---------------------------
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........... 0.74% 1.06%
Portfolio
turnover rate.... 4.49% 5.12%
Number of shares
outstanding at
end of period.... 526,430 508,137
Net Assets at the
end of period
(000's).......... $6,052 $5,713
Average
commission rate
paid............. N/A N/A
- -------------------------------------------------
</TABLE>
<PAGE>
AMERICAN GENERAL SERIES PORTFOLIO COMPANY 3 71
<TABLE>
<CAPTION>
<S> <C> <C>
Jacobs Asset Management Donna L. Hathaway
BOARD OF TRUSTEES 200 East Broward Boulevard Assistant Controller
Judity L. Craven Suite 1920 Heriberto R. Valdez,
Timothy J. Ebner Fort Lauderdale, Florida 33301 Assistant Controller
Gustavo E. Gonzales, Jr.
John A. Graf Neuberger Berman Management Inc.
Norman Hackerman 605 Third Avenue,
John W. Lancaster Second Floor
Ben H. Love New York, New York 10158-0180
John E. Maupin, Jr.
F. Robert Paulsen State Street Global Advisors
Craig R. Rodby 2 International Place
R. Miller Upton Boston, Massachusetts 02110
Thomas L. West, Jr.
INDEPENDENT AUDITORS
DISTRIBUTOR Ernst & Young LLP
The Variable Annuity Marketing 1221 McKinney
Company (VAMCO) Houston, Texas 77010
2929 Allen Parkway
Houston, Texas 77019 SHAREHOLDER SERVICE AGENT
The Variable Annuity LIfe
CUSTODIAN Insurance Company (VALIC)
State Street Bank and Trust Company 2929 Allen Parkway
225 Franklin Street Houston, Texas 77019
Boston, Massachusetts 02110
OFFICERS
INVESTMENT ADVISER Thomas L. West, Jr.,
The Variable Annuity Life Chairman
Insurance Company (VALIC) John A. Graf,
2929 Allen Parkway President
Houston, Texas 77019 Joe C. Osborne,
Executive Vice President
INVESTMENT SUB-ADVISERS John E. Arant,
American General Executive Vice President
Investment Management, L.P. Peter V. Tuters,
2929 Allen Parkway Senior Investment Officer
Houston, Texas 77019 Brent C. Nelson,
Vice President
Bankers Trust Company Teresa S. Moro,
130 Liberty Street Vice President and Investment Officer
New York, New York 10006 Maruti D. More
Vice President Investments
Brown Capital Management William Trimbur, Jr.,
809 Cathedral Vice President and Investment Officer
Baltimore, Maryland 21201 Cynthia A. Toles,
Vice President and Secretary
Capital Guardian Trust Company Nori L. Gabert,
333 South Hope Street Vice President and Assistant Secretary
Los Angeles, California 90071 Cynthia A. Gibbons
Assistant Vice President
Fiduciary Management Gregory R. Seward,
Associates, Inc. Treasurer
55 West Monroe Street Suite 2550 Jaime M. Sepulveda
Chicago, Illinois 60603 Assistant Treasurer
Earl E. Allen, Jr.,
Goldman Sachs Asset Management Assistant Treasurer
One New York Plaza Kathyrn A. Pearce,
New York, New York 10004 Controller
J. P. Morgan Investment Management Inc.
522 Fifth Avenue
New York, New York 10036
</TABLE>
This report is for the information of the shareholders and variable contract
owners participating in the American General Series Portfolio Company 3. 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 VALIC or American General Life Insurance Company, please contact your
account representative.
"Standard & Poor's(R)", "Standard & Poor's MidCap 400 Index" and "S&P 500(R)"
are trademarks of Standard & Poor's Corporation. The Stock Index Fund and
MidCap 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.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
AMERICAN GENERAL SERIES PORTFOLIO COMPANY 3 Presorted Standard
P.O. Box 3206 U.S. Postage
Houston, Texas 77253-3206 PAID
Permit No. 6748
Houston, Texas
VALIC
| An American
| General Company
VA-11288 VER 02/99 Recycled Paper [Logo appears here]
</TABLE>
