(LOGO)
THE CATHOLIC FUNDS
---------------------------------------
INVESTING WITH FAITH IN THE FUTURE
ANNUAL REPORT
SEPTEMBER 30, 2000
The Catholic Funds
---------------------
- The Catholic
Equity Income Fund
- The Catholic
Large-Cap
Growth Fund
- The Catholic
Disciplined Capital
Appreciation Fund
- The Catholic
Money Market Fund
<PAGE>
----------------------------------------------------------------
The Catholic Funds
1-877-222-2402
----------------------------------------------------------------
Thank you for calling The Catholic Funds.
For your protection, all calls are recorded.
To continue, please Press 1 now.
Thank you for calling The Catholic Funds.
-------
- To place a financial transaction--------------------PRESS 1
-------
-------
- For mutual fund prices------------------------------PRESS 2
-------
- For your account balance -------
and last two transactions---------------------------PRESS 3
Please enter your 16-digit account number -------
- For a current prospectus, application -------
or other Fund materials-----------------------------PRESS 4
-------
-------
- For personal service at any time--------------------PRESS 0
-------
-------
- If you are calling for a specific extension---------PRESS *
-------
<PAGE>
2 PRESIDENT'S LETTER
4 FRATERNALISM UP CLOSE
FUND SPOTLIGHTS
6 The Catholic Equity Income Fund
8 The Catholic Large-Cap Growth Fund
10 The Catholic Disciplined Capital Appreciation Fund
12 The Catholic Money Market Fund
SCHEDULES OF INVESTMENTS
13 The Catholic Equity Income Fund
19 The Catholic Large-Cap Growth Fund
23 The Catholic Disciplined Capital Appreciation Fund
35 The Catholic Money Market Fund
37 STATEMENTS OF ASSETS AND LIABILITIES
38 STATEMENTS OF OPERATIONS
40 STATEMENTS OF CHANGES IN NET ASSETS
42 NOTES TO FINANCIAL STATEMENTS
47 FINANCIAL HIGHLIGHTS
51 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
53 A NOTE ON FORWARD-LOOKING STATEMENTS
<PAGE>
-------------------------------------------------------------------------------
PRESIDENT'S LETTER
-------------------------------------------------------------------------------
(PHOTO)
NOVEMBER 6, 2000
-------------------------------------------------------------------------------
Dear Fellow Shareholder:
I am delighted to share with you our annual report to shareholders. The end of
this fiscal period, September 30, 2000, marked the 17-month anniversary of The
Catholic Funds. I am proud of the acceptance our Funds have received and
continue to believe that Catholic values can be implemented into our investment
decisions as well as our daily lives.
The Economy
The U.S. economy continues to do quite well. Inflation remains under control and
unemployment continues to be low. The government is running a surplus and is
projected to remain in surplus for the next few years. There are some sore
spots, however. While the United States has managed to cope with the spike in
energy prices, the rest of the world, Europe in particular, has witnessed scenes
from out of the 1970s, with long lines at gas pumps and consumers protesting
high prices. Because so many U.S. companies conduct at least some of their
business overseas, $30 per barrel oil prices, a sagging Euro and the strong
dollar have affected corporate earnings here.
The Markets
The key word remains volatility. The predicted "dot com" bubble bursting came to
pass. The hardest hit were the business-to-consumer websites. While many of
these companies employed talented people and may well have had valid concepts,
they often went public before they had earnings and profits. When retail
investors, having a shorter time horizon than venture
The Catholic Funds
<PAGE>
877/222-2402
capitalists, began to ask about results and the initial hype surrounding public
offerings wore off, these companies found it difficult to raise the funds
necessary to continue operations. Thus, their stock prices declined
dramatically. Many established traditional companies also confronted investor
impatience when earnings and profits did not meet often overly optimistic
expectations. An example of how this environment can affect the market: an
earnings report that may have only met expectations could cost a company 10% or
more in stock price. Under these conditions, it is entirely possible that some
market indexes will see their first annual losses in many years.
The Funds
Please be aware that it is not reasonable to expect year-after-year performance
gains of over 20%, as most of us enjoyed in the late 1990s. Lowering our
expectations may require that we invest more in IRAs, 401(k) plans or college
savings accounts in order to reach our goals. I strongly recommend that you
review your portfolio with your professional adviser to analyze your goals and
assumptions so you can ensure you are utilizing the best strategy for
achievement.
You will find detailed performance information on each of our Funds on the
following pages. I am certain you will benefit from the time spent reading this
document. All of us at The Catholic Funds thank you for your trust and
confidence.
Best regards,
/s/Allan G. Lorge
Allan G. Lorge
President
The Catholic Funds
<PAGE>
-------------------------------------------------------------------------------
JOIN HANDS DAY
A Fraternal Idea Whose Time Has Also Come
-------------------------------------------------------------------------------
(PHOTO)
Youth and adult members of Catholic
Knights Branch 132-Shawano,
Wisconsin, participate in a Habitat for
Humanity build to mark Join Hands Day
2000.
(PHOTO)
Catholic Order of Foresters
Cardinal Stritch Court 1993 members
donate books and bikes to the Perfect
Attendance and Kids to Read programs
sponsored by Chicago Fire Department
Engine 16 and Ambulance 35 firefighters.
In our 100+ years of existence, fraternal benefit societies in America have done
many great things to touch the lives of our members and the communities in which
they live. One example is our involvement with Habitat for Humanity. We have
contributed over $14 million in cash to purchase materials and thousands of
volunteer labor hours to construct 3,161 homes. Although we had been proud of
our past endeavors, the desire was there to do more.
At the annual convention of the National Fraternal Congress held in September
1999 in Washington DC, fraternal benefit societies agreed to launch a special
nationwide day of caring. Our overall goal was to do something a little
different by mobilizing America's youth to partner with adults in very special
undertakings.
And on June 17, 2000, the first Join Hands Day was born. This program enabled
and mobilized youth and adults to join hands to touch lives in communities
across America. Under the sponsorship of fraternal benefit societies and the
Points of Light Foundation, this first day of service attracted more than 50,000
volunteers. Not only did we carry out great projects, the efforts resulted in a
tremendous cohesion of youth and adults partnering, sharing and learning about
each other. In fact, Join Hands Day is the only day on the national calendar
specifically targeted toward developing youth and adult relationships through
neighborhood volunteering.
Catholic Knights had 36 branches participate in this great event. Of important
significance is that 422 youth partnered with 271 adults; almost a 2 to 1 ratio!
The Points of Light Foundation recognized the top 10 fraternals for their Join
Hands Day initiative. Catholic Knights Branch 720 of New Ulm, Minnesota was one
of the 10 fraternal lodges to receive national honors. They received a plaque
and $1,000.
The Catholic Funds
<PAGE>
877/222-2402
Catholic Order of Foresters linked its Join Hands Day efforts with two
innovative programs sponsored by the Chicago firemen. One, Perfect Attendance,
monitors students for attendance, grades and conduct. At the end of the school
year, students from Hartigan School were eligible for recognition and a bicycle.
The other program, Kids to Read, encourages adults to donate books to the school
library. The overall result has meant an increase in attendance at the school in
addition to an assurance that these students have the necessary school supplies
to make the most of their educational opportunities.
Catholic Knights of America took this special day as an opportunity to bring
youth together with their local nursing home residents. Since Join Hands Day
fell on the same weekend as their National Triennial Convention, the society was
able to get their attending members, delegates, officers and trustees involved
in the effort by visiting three facilities there. They were able to facilitate
bingo games, serve refreshments and help put the youth at ease in visiting with
the residents. The scene was similar nationwide. Not only were nursing home
residents grateful for the visits, youth across the country were able to tap a
spring of information and memories from seniors.
The future of Join Hands Day looks bright. It truly is a fraternal idea whose
time has also come! -
The three fraternals whose activities are described, own Catholic Financial
Services Corporation, the adviser and distributor for The Catholic Funds.
-------------------------------------------------------------------------------
WHAT'S IN IT FOR YOU?
--------------------------------------------------------------------------------
BENEFITS FOR YOUNG PEOPLE BENEFITS FOR ADULTS
- Make important decisions about - Learn how to work effectively
problems affecting your community. with young people.
- Do something good for others. - Gain satisfaction by solving
- Develop leadership, communication problems and helping others.
and organization skills. - Grow through a new and important
- Be respected for what you know and experience.
how it can improve your neighborhood. - Stand with friends for what is
right for people where you live.
BENEFITS FOR CLUBS & ORGANIZATIONS BENEFITS FOR COMMUNITIES
- Increase member commitment. - Solve neighborhood problems.
- Meet and educate potential members. - Develop youth and adult
- Build a stronger program. leadership.
- Show you care and make a difference. - Connect diverse groups of people.
- Decrease citizen isolation and
fear.
-------------------------------------------------------------------------------
<PAGE>
-------------------------------------------------------------------------------
The Catholic Equity
Income Fund
-------------------------------------------------------------------------------
(PHOTO)
Curtiss M.
Scott, Jr., CFA,
Portfolio
Manager
---------------------------------------------------------------------
NAV PER SHARE....$9.78....TOTAL NET ASSETS....$3,900,945....NUMBER OF
HOLDINGS....59....
---------------------------------------------------------------------
MANAGEMENT
----------
Todd Investment Advisors, Inc. of Louisville, Kentucky is the sub-adviser for
The Catholic Equity Income Fund. Todd was founded in 1967 and manages about $3
billion in public and private accounts. It combines bottom-up and top-down
techniques and the focus of its work is valuation. It compares price to
intrinsic value in seeking to identify companies with the greatest potential for
price appreciation. It also pays close attention to discovering early changes in
earnings momentum as well as other factors that could lead to the unlocking of
shareholder value. The portfolio manager is Curtiss M. Scott, Jr. Curt is a
Chartered Financial Analyst and a 22-year veteran of the investment business.
? 1. The Fund just finished its first full fiscal year. What factors were
responsible for the performance of the Fund and how did this performance
compare to the market generally?
The Fund returned 3.4% on net asset value for this fiscal year, versus 13.3% for
the S&P 500R Index, an unmanaged index comprised of 500 common stocks
representative of the stock market as a whole. All of the underperformance
occurred in the final quarter of 1999 when the S&P 500 rose 14.9% and the Fund
increased 5.9%.
The lagging performance may be traced to two factors: (1) the underweighting of
the portfolio in technology stocks and (2) our relative value-oriented
investment style. The dramatic outperformance of technology persisted through
the first few months of this year, but, starting in April, a significant
correction began in the technology sector and the value investment style
rebounded.
2. Over the past 12 months you have had both individual success stories and some
that were less than successful. Could you discuss examples?
A stock that was quite successful over the past fiscal year came from the
unlikely real estate sector. Spieker Properties, based in California, is one of
the largest owners and operators of office and industrial properties in the
Western United States. Supply constraints in the market were the main engine
driving superior earnings growth and the price of the stock increased 50% over
the past fiscal year. Spieker generated some of the highest rental rate
increases within the office group, due in large part to the heavy concentration
in the Silicon Valley and San Francisco Bay markets.
A stock that did not work out well was Lucent Technologies. Lucent, a telecom
equipment supplier, and its competitors all came under pressure during the past
six months, reacting to concerns regarding optical spending by carriers. Lucent
not only felt the pressure of this slowdown, but also experienced execution
problems with its own product lines. The company has been jettisoning portions
of its business that it does not want to be in over the long term. But, to date,
Wall Street remains unimpressed, believing the company has fallen behind the
technology curve relative to firms like Nortel Networks and JDS Uniphase. This
position was sold shortly after the end of the fiscal year.
The Catholic Funds
<PAGE>
877/222-2402
3. It seems that dividend payments have taken a backseat to stock buybacks at
many companies. What effect has this had on equity income funds and will
emphasis revert to dividends in the future?
In general, dividends are always forgotten during a market mania. However,
market history tells us that fully half of the market's 10.5% total return since
1920 has come from dividends. At present, tax laws encourage corporations to
take actions that enhance capital gains, which are taxed at a lower rate than
dividends for which ordinary income tax rates apply. The differential between
the capital gains rate and the ordinary income tax rate is at its highest ratio
ever. Consequently, barring some legislative change in tax law favoring
dividends, it is unlikely that corporations will change their policy. Our
cynical side also suggests to us that buybacks allow companies to "fuzz up" the
dilutive effects of stock options. Accordingly, this is another reason to
continue the practice of buying back shares.
---------------------------------------------------------------
VALUE OF A $10,000 INVESTMENT - INCLUDES 4% SALES CHARGE
---------------------------------------------------------------
THE CATHOLIC EQUITY INCOME FUND S&P 500<F1>
3-MAY-99 $9,600 $10,000
30-SEP-99 9,210 9,660
30-SEP-00 9,522 10,943
<F1> An unmanaged index comprised of 500 common stocks representative of the
stock market as a whole.
---------------------------------------------------------------
TOTAL RETURN - ANNUALIZED SEPTEMBER 30, 2000
---------------------------------------------------------------
On Net Asset Value On Offering Price<F1>
One Year: 3.38% -0.78%
Since Inception 5/3/99: -0.58% -3.42%
NOTES TO PERFORMANCE INFORMATION: Share values and total returns are subject to
fluctuation. Shares, when redeemed, may be worth more or less than their
original cost. Past performance is not an indication of future results.
<F1> Total return calculation reflects a maximum sales load of 4.00%.
(PIE CHART)
----------------
SECTOR BREAKDOWN
----------------
Technology.................17%
Financials..................17
Consumer Non-Cyclicals.......9
Utility......................9
Consumer Cyclicals...........7
Commercial Services..........6
Corporate Bonds..............6
Energy.......................5
Industrials..................5
Health Care..................5
Cash & Cash Equivalents......4
Telecommunications...........4
Consumer Services............3
Basic Materials..............2
Transportation...............1
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
TOP 5 COMMON STOCK HOLDINGS - SUBJECT TO CHANGE WITHOUT NOTICE SEPTEMBER 30, 2000
-------------------------------------------------------------------------------------------------------------------------
% of Total Net Assets
<S> <C>
KIMBERLY-CLARK CORPORATION 3.4%
World's top maker of personal paper products, including Kleenex and Scott
-------------------------------------------------------------------------------------------------------------------------
DUKE ENERGY CORPORATION 3.3
Provides electricity to two million people; also moves natural gas through 11,500
miles of pipeline that stretch from the Gulf Coast to the northeastern United States
-------------------------------------------------------------------------------------------------------------------------
GENERAL ELECTRIC COMPANY 3.1
Produces aircraft engines, transportation equipment, appliances, lighting,
electric distribution and control equipment
-------------------------------------------------------------------------------------------------------------------------
ABBOTT LABORATORIES 3.0
One of the top U.S. health care and pharmaceutical producers
-------------------------------------------------------------------------------------------------------------------------
MICROSOFT CORPORATION 2.9
Dominant developer of computer operating systems and applications software
</TABLE>
<PAGE>
-------------------------------------------------------------------------------
THE CATHOLIC LARGE-CAP GROWTH FUND
-------------------------------------------------------------------------------
(PHOTO)
John S. Dale,
CFA, Portfolio
Manager
(PHOTO)
Gary E.
Nussbaum,
CFA, Portfolio
Manager
-----------------------------------------------------------------------
NAV PER SHARE....$13.12....TOTAL NET ASSETS....$6,374,327....NUMBER OF
HOLDINGS....36....
-----------------------------------------------------------------------
MANAGEMENT
----------
Peregrine Capital Management, Inc. of Minneapolis is the sub-adviser to the
Fund. Peregrine was founded in 1984 and is an independently operated subsidiary
of Wells Fargo. It is organized on the premise that small teams of experienced
professionals can deliver superior investment results. It currently manages over
$6 billion in public funds and private accounts. It manages The Catholic Large-
Cap Growth Fund by concentrating on companies with sustainable earnings growth.
It confirms its research by visits to over 150 companies per year. The result is
a portfolio with between 30 to 50 companies.<F1> The portfolio managers are John
S. Dale and Gary E. Nussbaum. They are both senior vice presidents and have been
portfolio managers with Peregrine for 13 and 10 years, respectively. They are
also Chartered Financial Analysts.
<F1> This small number may result in more
day-to-day volatility than other funds.
? 1. The Fund just finished its first full fiscal year. What factors were
responsible for the performance of the Fund and how did this performance
compare to the market generally?
The Fund performed quite well versus the market. Performance was driven
predominantly by the portfolio's strong underlying fundamentals. The companies
in the portfolio produced average earnings gains in excess of 30% over the past
12 months-well in excess of the style's 22% long-term average. The S&P 500R
Index, an unmanaged index comprised of 500 common stocks representative of the
stock market as a whole, also produced earnings gains well above average (20%
eps growth versus the 6%-8% long-term average), but this was pale in comparison
to our portfolio. Importantly, a vast majority of the portfolio holdings
exhibited outstanding fundamentals and performed better than the market
averages. As a result, portfolio turnover was lower than average (11% versus our
20% long-term average) and much lower than the typical mutual fund. Returns were
spread across a wide variety of holdings including EMC Corporation, Paychex,
Nokia and Goldman Sachs.
2. The Fund returned 34.15% on net asset value for this fiscal year. Should
investors be looking to lower their expectations for the next 2 to 3 years?
Investors should reduce their expectations over the next several years. After a
dismal period of stock market returns during the 1970s, investors have enjoyed
above-average "catch-up" returns over the 1980s and 1990s. Outstanding equity
returns were driven both by solid earnings growth and rising price-to-earnings
ratios. As interest rate and inflation expectations continued to fall over the
past two decades, investors were willing and able to pay higher valuations per
unit of earnings.
This "catch-up" period is over and we do not expect further price-to-earnings
ratio expansion for the general equity market or for growth stocks. We also do
not expect a significant reduction in price-to-earnings ratios. Capital
appreciation will once again be driven predominantly by underlying earnings
gains. Earnings gains will also correlate more closely with underlying sales
growth. S&P 500 earnings gains will likely average 6%-8%, producing comparable
long-term S&P 500 investment returns (plus 1%-2% in dividend yield). In order to
receive superior investment returns, investors will need to identify companies
that can sustain higher than average sales and earnings gains for a long time,
selling at attractive valuations. These are exactly the types of companies we
seek to identify.
The Catholic Funds
<PAGE>
877/222-2402
3. The Securities and Exchange Commission recently enacted Fair Disclosure rules
regarding dissemination of information by company executives. How will this
affect both your own analysis process as well as the manner in which other
investment professionals gather information?
The truth is that most companies have been operating under these fair disclosure
rules for quite some time. A few instances of "unfair" disclosure have resulted
in the formal enactment of the SEC rules. It is too early to tell if there will
be any significant changes in the way most companies disseminate information.
However, we suspect the changes will be relatively minor, other than heightened
awareness. Our own analysis is based more on the very long-term, strategic
issues facing growth company managements. We talk with managements in order to
formulate our very long-term growth and profitability expectations-not to gain
an information edge on the state of current operations. Some investors looking
to gain this short-term information advantage may find it more difficult under
these enacted rules.
-----------------------------------------------------------------
VALUE OF A $10,000 INVESTMENT - INCLUDES 4% SALES CHARGE
-----------------------------------------------------------------
THE CATHOLIC LARGE-CAP GROWTH FUND S&P 500<F1>
3-MAY-99 $ 9,600 $10,000
30-SEP-99 9,389 9,660
30-SEP-00 12,595 10,943
<F1> An unmanaged index comprised of 500 common stocks representative of the
stock market as a whole.
------------------------------------------------------------------
TOTAL RETURN - ANNUALIZED SEPTEMBER 30, 2000
------------------------------------------------------------------
On Net Asset Value On Offering Price<F1>
-------------------------------------------------------------------
One Year: 34.15% 28.75%
From Inception 5/3/99: 21.24% 17.66%
NOTES TO PERFORMANCE INFORMATION: Share values and total returns are subject to
fluctuation. Shares, when redeemed, may be worth more or less than their
original cost. Past performance is not an indication of future results.
<F1> Total return calculation reflects a maximum sales load of 4.00%.
(PIE CHART)
----------------
SECTOR BREAKDOWN
----------------
Technology.................24%
Financials..................19
Commercial Services.........16
Health Care.................16
Consumer Cyclicals...........9
Industrials..................6
Telecommunications...........6
Consumer Non-Cyclicals.......2
Energy.......................1
Cash & Cash Equivalents......1
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
TOP 5 HOLDINGS - SUBJECT TO CHANGE WITHOUT NOTICE SEPTEMBER 30, 2000
------------------------------------------------------------------------------------------------------
% of Total Net Assets
<S> <C>
CISCO SYSTEMS, INC...............................................................................7.4%
Controls more than three-quarters of the global market for products that link
networks and power the internet
------------------------------------------------------------------------------------------------------
AMERICAN INTERNATIONAL GROUP, INC.................................................................5.5
One of the world's largest insurance firms with operations in 130 countries
------------------------------------------------------------------------------------------------------
SOLECTRON CORPORATION.............................................................................5.4
Provides integrated manufacturing services to an array of technology companies
------------------------------------------------------------------------------------------------------
THE GOLDMAN SACHS GROUP, INC......................................................................5.4
A leader in global investment banking; one of the top U.S. IPO underwriters
------------------------------------------------------------------------------------------------------
THE CHARLES SCHWAB CORPORATION....................................................................5.3
Provides financial services; its eSchwab is a leading online trader
</TABLE>
<PAGE>
-------------------------------------------------------------------------------
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
-------------------------------------------------------------------------------
(PHOTO)
Timothy
Connors,
Certified
Financial
Analyst
-----------------------------------------------------------------------
NAV PER SHARE....$10.95....TOTAL NET ASSETS....$4,671,129....NUMBER OF
HOLDINGS....134....
-----------------------------------------------------------------------
MANAGEMENT
-----------
Vantage Investment Advisors, Inc., the sub-adviser to The Catholic Disciplined
Capital Appreciation Fund is a U.S. domestic equity manager with over $9 billion
in assets under management for a diverse client base, including pension plans,
endowments, foundations, insurance companies, religious organizations and
individuals. It believes consistent, long-term performance is produced by a
bottom-up, quantitative style of investing that systematically identifies
undervalued stocks with above-average earnings potential. It selects securities
based upon objective information and utilizes both growth and value criteria
such as the price/earnings (P/E) ratio, dividend yield and earnings momentum.
This analysis is facilitated by a proprietary computer system. The portfolio is
managed by a committee of professionals comprised of Vantage Investment
personnel. The questions were answered by Timothy Connors, CFA, a member of the
committee.
? 1. The Fund just finished its first full fiscal year. What factors were
responsible for the performance of the Fund and how did this performance
compare to the market generally?
The Fund performed well over the last year compared to the market. Performance
was consistent with the investment philosophy of the Fund, which is to seek to
consistently generate moderate amounts of excess return to the benchmark in a
risk-controlled fashion. When implemented successfully, the philosophy produces
excess return from good stock selection, while risk is controlled by limiting
the size of the over or underweight positions taken at both the sector and
individual stock level. The sectors that contributed positively to performance
were the energy and defense sectors, where the Fund was slightly overweighted
versus the S&P 500R Index, an unmanaged index comprised of 500 common stocks
representative of the stock market as a whole. The Fund also benefited from
being slightly underweighted in the basic materials sector as this sector
underperformed the broad market.
2. During the past year you had your investment successes as well as a few you
may wish you could do over. Could you take one or two examples of each and
relate how your quantitative portfolio model was involved and what it did and
did not do?
Corning (GLW) and SBC Communications (SBC) are two stocks that performed well
for the Fund this year. Both are examples of stocks that were identified as
attractive by our quantitative model owing to the ongoing momentum in their
businesses and their relatively cheap valuation compared to other alternatives
in their respective sectors. GLW performed well as new products in its optical
fiber business achieved rapid acceptance in the market and as investors accorded
a higher multiple to the company as its growth accelerated. SBC was the only one
of the regional operating telecommunications companies that saw strong stock
price performance during the year. SBC's rapidly growing wireless and DSL
businesses were principally responsible for the company's ability to report good
earnings progress that, in turn, led to good upside in the stock.
Microsoft is a stock that did not perform well for the Fund despite attractive
valuation. Our model correctly saw the stock as being cheap from a statistical
perspective. What our model did not anticipate, however, was the adverse ruling
that the company received in its anti-trust dispute with the Department of
Justice and the decline in the company's stock price as a result of the
unfavorable ruling.
The Catholic Funds
<PAGE>
877/222-2402
3. Vantage recently moved its operations to Philadelphia. How will this affect
the Fund?
We believe this move offers us the ability to leverage significant additional
resources. In each of the primary areas where we provide value--quantitative
skills, fundamental research, client service and administrative support-the move
to Philadelphia will enable us to continue to perform these important functions
in a significantly enhanced way. With a six-person investment team dedicated to
the Fund, we are able to continue the important work of improving the
quantitative model used to generate excess return opportunities. The research
capability of our investment manager is particularly important for the Fund.
With 12 investment professionals organized to do fundamental research on a
sectoral basis, our investment managers will be able to significantly improve
the depth and breadth of the fundamental inputs to the process. Administrative
and back office capabilities are also significantly enhanced by the move to
Philadelphia.
---------------------------------------------------------------
VALUE OF A $10,000 INVESTMENT - INCLUDES 4% SALES CHARGE
---------------------------------------------------------------
THE CATHOLIC DISCIPLINED CAPITAL
APPRECIATION FUND S&P 500<F1>
3-MAY-99 $ 9,660 $10,000
30-SEP-99 9,302 9,660
30-SEP-00 10,527 10,943
<F1> An unmanaged index comprised of 500 common stocks representative of the
stock market as a whole.
---------------------------------------------------------------
TOTAL RETURN - ANNUALIZED SEPTEMBER 30, 2000
---------------------------------------------------------------
On Net Asset Value On Offering Price<F1>
---------------------------------------------------------------
One Year: 13.16% 8.67%
From Inception 5/3/99: 6.75% 3.66%
NOTES TO PERFORMANCE INFORMATION: Share values and total returns are subject to
fluctuation. Shares, when redeemed, may be worth more or less than their
original cost. Past performance is not an indication of future results.
<F1> Total return calculation reflects a maximum sales load of 4.00%.
(PIE CHART)
----------------
SECTOR BREAKDOWN
----------------
Technology..................... 27%
Financials.......................15
Consumer Non-Cyclicals...........13
Health Care......................10
Industrials.......................9
Consumer Cyclicals................7
Energy............................7
Telecommunications................7
Utility...........................2
Basic Materials...................1
Cash & Cash Equivalents...........1
Transportation....................1
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
TOP 5 HOLDINGS - SUBJECT TO CHANGE WITHOUT NOTICE SEPTEMBER 30, 2000
--------------------------------------------------------------------------------------------------------------------------------
% of Total Net Assets
<S> <C>
GENERAL ELECTRIC COMPANY...................................................................................................3.3%
Produces aircraft engines, transportation equipment, appliances, lighting,
electric distribution and control equipment and related products and is a major presence in financial services
--------------------------------------------------------------------------------------------------------------------------------
CISCO SYSTEMS, INC...........................................................................................................3.2
Controls more than three-quarters of the global market for products that link
networks and power the internet
--------------------------------------------------------------------------------------------------------------------------------
EMC CORPORATION..............................................................................................................2.5
#1 maker of mainframe computer disk memory hardware and software
--------------------------------------------------------------------------------------------------------------------------------
MICROSOFT CORPORATION........................................................................................................2.1
Dominant developer of computer operating systems and applications software
--------------------------------------------------------------------------------------------------------------------------------
CORNING, INC.................................................................................................................1.9
One of the world's top makers of fiber-optic cable, which it invented more than 20 years ago
</TABLE>
<PAGE>
-------------------------------------------------------------------------------
THE CATHOLIC
MONEY MARKET FUND
-------------------------------------------------------------------------------
(PHOTO)
Jay N. Mueller,
CFA, Portfolio
Manager
-----------------------------------------------------------------------
NAV PER SHARE....$1.00....TOTAL NET ASSETS....$11,020,977....NUMBER OF
HOLDINGS....28....
-----------------------------------------------------------------------
MANAGEMENT
-----------
Strong Capital Management, Inc. is an active international and domestic equity
and fixed-income manager located in Menomonee Falls, Wisconsin. It advises a
mutual fund family, Strong Funds, and provides other investment services with
over $38 billion in individual and institutional assets. The portfolio manager,
Jay N. Mueller, CFA, joined Strong in September 1991 as a securities analyst and
portfolio manager. He also serves as Strong's chief economist. Jay received his
B.A. in Economics in 1982 from the University of Chicago and is a Chartered
Financial Analyst. In addition to The Catholic Money Market Fund, he manages
several other money market funds for Strong. He emphasizes the top-down analysis
of the economy, interest rates, and the supply of and demand for credit.
From the Adviser
The Fed made the last (at least as of this writing) of its monetary tightening
moves by boosting the Fed Funds rate by 50 basis points to 6 1/2% on May 16.
Since that date, they have left rates unchanged. That move had an immediate
effect on rates for other short-term instruments, such as commercial paper,
demand notes and negotiable bank CDs. Rates on 45-day prime commercial paper
moved from an average of 6% at the end of March to 6.5% by mid-May, mirroring
the Fed's move. The Catholic Money Market Fund moved from a 7-day current yield
of 5.15% and a 7-day effective yield of 5.25% on March 30 to 5.81% and 5.98%,
respectively at the end of June. Since the end of June, "flat-lined" is the best
way to describe the behavior of short-term interest rates. The Fed has taken no
action since May when it last raised the Fed Funds rate to 6.50%. It felt
confident that the economy was moving toward a soft landing - a non-inflationary
slowing of economic growth - without any further credit tightening or easing
actions necessary.
An investment in the Fund is neither insured nor guaranteed by the Federal
Deposit Insurance Corporation (FDIC) or any other governmental agency. Although
the Fund seeks to preserve the value of your investment at $1.00 per share, it
is possible to lose money by investing in the Fund.
------------------------------------
MONEY RATES<F2> SEPTEMBER 30, 2000
------------------------------------
The Catholic Money Market Fund
30-Day Yield..............................5.72%
National Average Six-Month
Certificate of Deposit Rate<F1>...........5.17%
National Average
Bank Money Market<F1>.....................2.09%
National Average Interest Checking<F1>....0.81%
<F1> Barron's
<F2> The yield on The Catholic Money Market Fund may go up or down on a daily
basis. Certificates of deposit and other bank accounts and certificates are
insured by the FDIC and may have rates of return that are guaranteed for a
fixed period of time.
The Catholic Funds
<PAGE>
877/222-2402
-------------------------------------------------------------------------------
Schedule of Investments
AS OF SEPTEMBER 30, 2000
-------------------------------------------------------------------------------
THE CATHOLIC EQUITY INCOME FUND
-------------------------------------------------------------------------------
Common Stocks (90.8%) Shares Market Value
-------------------------------------------------------------------------------
AEROSPACE (1.6%)
----------------
Honeywell International, Inc. 1,750 $ 62,344
Formerly Allied Signal, Inc.; produces a wide
variety of automated controls for the
aerospace, automotive, pharmaceutical,
fibers and plastics industries; may be
purchased by GE.
-------------------------------
TOTAL 62,344
-------------------------------
AIR TRANSPORTATION (0.9%)
-------------------------
Delta Air Lines, Inc. 800 35,500
Provides air transportation in the U.S. and
more than 30 other countries
-------------------------------
TOTAL 35,500
-------------------------------
AUTOS & TRUCKS (1.0%)
---------------------
Ford Motor Company 1,600 40,500
World's largest truck maker; #2 manufacturer
of cars and trucks combined
-------------------------------
TOTAL 40,500
-------------------------------
BANKING (6.7%)
--------------
Bank of America Corporation 1,700 89,037
First coast-to-coast bank with about
11,500 branches globally
Bank One Corporation 1,300 50,212
Super-regional bank with some 2,000
branches in 14 states
The Chase Manhattan Corporation 1,350 62,353
Offers commercial, consumer and investment
banking services globally
Wachovia Corporation 1,050 59,522
Southeastern interstate bank holding
company offering consumer and corporate
banking services
-------------------------------
TOTAL 261,124
-------------------------------
COMPUTER PRODUCTS & SERVICES (9.4%)
----------------------------------
Computer Associates International, Inc. 1,300 32,744
Offers software products including data access
and network management tools
Computer Sciences Corporation<F1> 1,400 103,950
Among the world's leaders in information
technology consulting, systems integration and
outsourcing to global industries and
government agencies
Hewlett-Packard Company 600 58,200
#3 computer company; provides computers,
imaging and printing peripherals,
software and related services
Microsoft Corporation<F1> 1,900 114,594
Dominant developer of computer operating
systems and applications software
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC EQUITY INCOME FUND
Common Stocks (90.8%) Shares Market Value
------------------------------------------------------------------------------
SunGard Data Systems, Inc.<F1> 1,300 $ 55,656
Computer services and software company
-------------------------------
TOTAL 365,144
-------------------------------
COSMETICS & TOILETRIES (3.4%)
----------------------------
Kimberly-Clark Corporation 2,350 131,159
World's top maker of personal paper
products, including Kleenex and Scott
-------------------------------
TOTAL 131,159
-------------------------------
DRUGS & MEDICAL SUPPLIES (7.9%)
-------------------------------
Abbott Laboratories 2,500 118,906
One of the top U.S. health care and
pharmaceutical producers
Cardinal Health, Inc. 1,100 97,006
Large U.S. wholesaler of pharmaceuticals,
and surgical and hospital supplies
Merck & Company, Inc. 1,250 93,047
#1 drug maker in the U.S.; one of the world's
largest prescription drug companies
-------------------------------
TOTAL 308,959
-------------------------------
ELECTRICAL EQUIPMENT (5.2%)
---------------------------
Emerson Electric Company 1,200 80,400
Offers appliances, tools, electronics,
telecommunications products, industrial
automation and HVAC components for the
commercial and industrial sectors
General Electric Company 2,100 121,144
Produces aircraft engines, transportation
equipment, appliances, lighting, electric
distribution and control equipment
-------------------------------
Total 201,544
-------------------------------
ELECTRONICS (5.4%)
------------------
Agilent Technologies, Inc.<F1> 750 36,703
Formerly part of Hewlett Packard; manufactures
test and measurement instruments and chemical
analysis, semiconductor and health care
products
Applied Materials, Inc.<F1> 400 23,725
World's top maker of the complex manufacturing
equipment used in semiconductor factories
Flextronics International Ltd.<F1> 800 65,700
One of the world's leading providers of
contract electronics manufacturing services
Intel Corporation 2,000 83,125
Worldwide dominant microprocessor developer
and manufacturer
-------------------------------
TOTAL 209,253
-------------------------------
<PAGE>
The accompanying Notes to Financial Statements are an integral part of this
schedule.
The Catholic Funds
877/222-2402
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC EQUITY INCOME FUND
Common Stocks (90.8%) Shares Market Value
------------------------------------------------------------------------------
ENERGY SERVICES (6.4%)
-----------------------
Duke Energy Corporation 1,500 $ 128,625
Provides electricity to two million people;
also moves natural gas through 11,500 miles
of pipeline that stretch from the Gulf Coast
to the northeastern U.S.
KeySpan Corporation 1,100 44,138
Brings natural gas to 1.6 million customers
in New York; manages electricity service for
about 1.1 million customers; involved in gas
exploration, production, engineering and
construction
TECO Energy, Inc. 2,700 77,625
Holding company for Tampa Electric; has
subsidiaries in unregulated businesses
-------------------------------
TOTAL 250,388
-------------------------------
FINANCIAL SERVICES (11.0%)
--------------------------
Fannie Mae 1,200 85,800
A public company whose existence is mandated by
the U.S. government; its purpose is to provide
liquidity in the mortgage market
H & R Block, Inc. 700 25,944
In addition to its tax operations in the U.S.,
Canada, Australia and the UK, it provides
mortgage services, financial planning,
investment advice and accounting
Household International, Inc. 1,000 56,625
Through its subsidiaries, provides co-branded
and private-label credit cards, and other
financing
MBIA, Inc. 800 56,900
Holding company for Municipal Bond Investors
Assurance Corp., the U.S.' s leading financial
guarantor for state and local governments,
nonmunicipal issuers and financial institutions
MBNA Corporation 2,200 84,700
World's third-largest issuer of credit and the
leading issuer of affinity cards
MGIC Investment Corporation 1,300 79,463
Parent company of Mortgage Guaranty Insurance,
the leading provider of private mortgage
insurance to lenders
PNC Financial Services Group 600 39,000
Its banking subsidiaries offer consumer and
corporate banking through more than 700 branches
-------------------------------
TOTAL 428,432
-------------------------------
FOOD & BEVERAGE (5.1%)
----------------------
Anheuser-Busch Companies, Inc. 2,700 114,244
World's largest brewer; also operates theme
parks and water parks
Safeway Inc.<F1> 1,800 84,037
Food retailer with over 1,500 stores located
throughout the U.S. and Canada
-------------------------------
TOTAL 198,281
-------------------------------
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC EQUITY INCOME FUND
Common Stocks (90.8%) Shares Market Value
------------------------------------------------------------------------------
INSURANCE (2.7%)
----------------
CIGNA Corporation 1,000 $ 104,400
A multiline insurance and financial
services company
-------------------------------
TOTAL 104,400
-------------------------------
OIL (8.2%)
----------
BP Amoco Plc, ADR 1,148 60,844
World's #3 integrated oil company; largest U.S.
oil and gas producer
Burlington Resources, Inc. 1,000 36,813
Largest independent oil and gas company in the
U. S. (in terms of proved reserves); #4
producer of natural gas in North America
Coastal Corporation 1,500 111,187
Diversified energy company involved in natural
gas, petroleum, chemicals, power plants and
trucking
Conoco, Inc., Class A 1,300 33,963
Integrated oil and gas company, exploring for
petroleum in 15 countries
Texaco, Inc. 1,500 78,750
Markets fuel and lubricants worldwide; operates
transportation, trading and distribution
facilities
-------------------------------
TOTAL 321,557
-------------------------------
PAPER PRODUCTS (1.6%)
---------------------
Willamette Industries, Inc. 2,300 64,400
Owns more than 100 pulp, paper and other wood-
product manufacturing plants
----------------------------
TOTAL 64,400
----------------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) (5.6%)
--------------------------------------------
Archstone Communities Trust 2,000 49,125
Second-largest apartment real estate investment
trust in the United States
First Industrial Realty Trust, Inc. 1,800 55,350
Real estate investment trust that acquires,
develops and manages industrial real estate
Mack-Cali Realty Corporation 1,500 42,281
Real estate investment trust that owns, leases
and manages office buildings
Simon Property Group, Inc. 800 18,750
U.S.'s largest owner of malls; owns, develops or
manages more than 240 properties and gained
paired-share status after buying Corporate
Property Investors in 1998
Spieker Properties, Inc. 950 54,684
Real estate investment trust that owns about
40 million sq. ft. of industrial, office and
retail space
-------------------------------
TOTAL 220,190
-------------------------------
The accompanying Notes to Financial Statements are an integral part of this
schedule.
The Catholic Funds
<PAGE>
877/222-2402
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC EQUITY INCOME FUND
Common Stocks (90.8%) Shares Market Value
------------------------------------------------------------------------------
RETAIL (3.5%)
-------------
Dollar General Corporation 3,281 $ 54,957
Chain of about 4,000 discount stores in 24
midwestern and southeastern states
Target Corporation 3,200 82,000
Formerly Dayton Hudson; operates 1,200-plus
stores in three formats: Target, a discount
chain; Mervyn's California, mid-range
department stores; Dayton's, Hudson's and
Marshall Field's, upscale department stores
-------------------------------
TOTAL 136,957
-------------------------------
TELECOMMUNICATIONS (5.2%)
-------------------------
Lucent Technologies, Inc. 1,100 33,619
Leading maker of telecom equipment and software,
including business communications systems,
switching and transmission equipment, and wire-
less networks
SBC Communications, Inc. 1,100 55,000
#2 local phone company in the United States
Sprint Corporation 2,200 64,487
#1 non-Baby Bell local-service phone company,
with more than 8 million lines in 18 states;
Sprint's FON Group handles these businesses
and Sprint's PCS Group provides digital
wireless PCS service throughout the
United States
Verizon Communications 1,037 50,230
Serves more than 23 million local phone
customers; offers long-distance cellular
and PCS phone service, consumer Internet
access and related services
-------------------------------
TOTAL 203,336
-------------------------------
-------------------------------------------------------------
TOTAL COMMON STOCKS (COST $3,599,680) 3,543,468
-------------------------------------------------------------
Principal
Fixed-Income Investments (3.7%) Amount Market Value
------------------------------------------------------------------------------
CORPORATE INVESTMENTS (3.7%)
----------------------------
Atlantic Richfield Company, 5.90%, 4/15/09 $ 25,000 $ 23,256
Bank of America Corporation, 7.75%, 7/15/02 50,000 50,666
Jones Apparel Group, 7.875%, 6/15/06 25,000 23,593
Lexmark International Group, Inc.,
6.75%, 5/15/08 25,000 23,088
Nielsen Media Research, 7.60%, 6/15/09 25,000 24,416
-------------------------------------------------------------
TOTAL FIXED-INCOME INVESTMENTS (COST $148,027) 145,019
-------------------------------------------------------------
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC EQUITY INCOME FUND
Principal
Short-Term Investments (5.8%) Amount Market Value
------------------------------------------------------------------------------
VARIABLE-RATE DEMAND NOTES (5.8%)
---------------------------------
Sara Lee Corporation, 6.22% $ 93,958 $ 93,958
Wisconsin Corporate Central Credit
Union, 6.29% 132,334 132,334
-------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $226,292) 226,292
-------------------------------------------------------------
-------------------------------------------------------------
TOTAL INVESTMENTS (100.3%) (COST $3,973,999) 3,914,779
-------------------------------------------------------------
-------------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS (-0.3%) (13,834)
-------------------------------------------------------------
-------------------------------------------------------------
TOTAL NET ASSETS (100.0%) $3,900,945
-------------------------------------------------------------
<F1> Non-income producing
ADR - American Depository Receipt
Plc - Public Limited Company
The accompanying Notes to Financial Statements are an integral part of this
schedule.
The Catholic Funds
<PAGE>
877/222-2402
------------------------------------------------------------------------------
Schedule of Investments
AS OF SEPTEMBER 30, 2000
------------------------------------------------------------------------------
THE CATHOLIC LARGE-CAP GROWTH FUND
------------------------------------------------------------------------------
Common Stocks (98.8%) Shares Market Value
------------------------------------------------------------------------------
BANKING (1.4%)
--------------
State Street Corporation 700 $ 91,000
Institutional investor services and investment
management firm
-------------------------------
TOTAL 91,000
-------------------------------
BUSINESS SERVICES (6.1%)
------------------------
Cintas Corporation 2,500 108,906
Designs, makes, rents and sells uniforms in
the U.S. and Canada
Paychex, Inc. 5,225 274,312
Processes the payrolls of some 300,000
clients
-------------------------------
TOTAL 383,218
-------------------------------
COMPUTER PRODUCTS & SERVICES (23.1%)
------------------------------------
America Online, Inc.<F1> 2,000 107,500
World's #1 provider of online services; its
pending agreement to buy entertainment giant
Time Warner will make the company #1 in most
things media
Cisco Systems, Inc.<F1> 8,500 469,625
Leading provider of high-performance
products used to build wide area networks
DST Systems, Inc.<F1> 800 94,000
Provides information processing services
and computer software products and services
to mutual funds, insurance companies and banks
EMC Corporation<F1> 3,100 307,288
#1 maker of mainframe computer disk memory
hardware and software
Microsoft Corporation<F1> 4,900 295,531
Dominant developer of computer operating
systems and applications software
Oracle Corporation<F1> 2,100 165,375
Leading developer of database management
systems software; its flagship database
software runs on everything from notebooks
to mainframes
SunGard Data Systems, Inc.<F1> 800 34,250
Computer services and software company
-------------------------------
TOTAL 1,473,569
-------------------------------
DATA PROCESSING (6.5%)
----------------------
Automatic Data Processing, Inc. 2,100 140,438
The largest payroll and tax filing
processor in the world
First Data Corporation 3,800 148,438
The U.S.' s largest third-party processor
of credit card transactions
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC LARGE-CAP GROWTH FUND
Common Stocks (98.8%) Shares Market Value
------------------------------------------------------------------------------
Fiserv, Inc.<F1> 2,100 $ 125,737
Provides check clearing, funds transfer,
credit card administration and data processing
outsourcing services to about 7,000 financial
institutions
-------------------------------
TOTAL 414,613
-------------------------------
DRUGS & MEDICAL SUPPLIES (13.3%)
--------------------------------
Cardinal Health, Inc. 800 70,550
Large U.S. wholesaler of pharmaceuticals and
surgical and hospital supplies
Medtronic, Inc. 6,150 318,647
World's #1 maker of implantable biomedical
devices
Merck & Company, Inc. 1,800 133,988
#1 drug maker in the U.S.; one of the world's
largest prescription drug companies
Pfizer Inc. 7,200 323,550
Makes drugs and consumer health products
-------------------------------
TOTAL 846,735
-------------------------------
ELECTRONICS (10.7%)
-------------------
Intel Corporation 6,500 270,156
Worldwide dominant microprocessor developer
and manufacturer
JDS Uniphase Corporation<F1> 700 66,281
Products include laser subsystems and
equipment for fiber-optic telecommunications,
signal processing and semiconductor wafer
inspection
Solectron Corporation<F1> 7,500 345,937
Provides integrated manufacturing services to
an array of technology companies
-------------------------------
TOTAL 682,374
-------------------------------
ENERGY SERVICES (0.6%)
----------------------
Schlumberger Limited 500 41,156
One of the world's largest and most
diversified oil services firms
-------------------------------
TOTAL 41,156
-------------------------------
FINANCIAL SERVICES (13.3%)
--------------------------
The Charles Schwab Corporation 9,450 335,475
Provides financial services; its eSchwab is a
leading online trader
The Goldman Sachs Group, Inc. 3,000 341,813
A leader in global investment banking; one of
the top U.S. IPO underwriters
T. Rowe Price Associates, Inc. 3,600 168,975
Manages the proprietary T. Rowe Price Mutual
Funds; provides other asset management
services for individuals and institutions
-------------------------------
TOTAL 846,263
-------------------------------
The accompanying Notes to Financial Statements are an integral part of this
schedule.
The Catholic Funds
<PAGE>
-------------------------------------------------------------------------------
Schedule of Investments (continued)
-------------------------------------------------------------------------------
THE CATHOLIC LARGE-CAP GROWTH FUND
Common Stocks (98.8%) Shares Market Value
------------------------------------------------------------------------------
FOOD & BEVERAGE (1.5%)
----------------------
The Coca-Cola Company 1,700 $ 93,713
World's top soft-drink company
-------------------------------
TOTAL 93,713
-------------------------------
HEALTH CARE SERVICES (2.4%)
---------------------------
IMS Health, Inc. 7,500 155,625
Leading worldwide provider of information
and decision-support services to the
pharmaceutical and health care industries
-------------------------------
TOTAL 155,625
-------------------------------
INSURANCE (5.5%)
----------------
American International Group, Inc. 3,637 348,015
One of the world's largest insurance firms
with operations in 130 countries
-------------------------------
TOTAL 348,015
-------------------------------
RETAIL (8.4%)
-------------
Costco Wholesale Corporation<F1> 2,900 101,319
Largest wholesale club operator in the U.S.;
also operates internationally
Fastenal Company 700 40,338
Sells industrial and construction supplies in
600 stores
Home Depot, Inc. 5,600 297,150
Do-it-yourselfers and contractors alike look
to this home center leader for its prices,
selection and service
Staples, Inc.<F1> 7,000 99,312
Sells office products, furniture, computers,
and printing and photocopying services at more
than 1,000 stores in the U.S., Canada, Germany
and the UK
-------------------------------
TOTAL 538,119
-------------------------------
TELECOMMUNICATIONS (6.0%)
-------------------------
Nokia Oyj, ADR 5,200 207,025
World's #1 mobile phone maker; headquartered
in Finland
Telefonaktiebolaget LM Ericsson, ADR 11,900 176,269
Swedish telecommunications equipment maker; a
leader in mobile phone sales
-------------------------------
TOTAL 383,294
-------------------------------
-------------------------------------------------------------
TOTAL COMMON STOCKS (COST $4,989,742) 6,297,694
-------------------------------------------------------------
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
-------------------------------------------------------------------------------
Schedule of Investments (continued)
-------------------------------------------------------------------------------
THE CATHOLIC LARGE-CAP GROWTH FUND
Principal
Short-Term Investments (1.5%) Amount Market Value
-------------------------------------------------------------------------------
VARIABLE-RATE DEMAND NOTES (1.5%)
---------------------------------
American Family Financial Services, Inc., 6.24% $ 2,682 $ 2,682
Sara Lee Corporation, 6.22% 13,642 13,642
Wisconsin Corporate Central Credit Union, 6.29% 82,099 82,099
-------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $98,423) 98,423
-------------------------------------------------------------
-------------------------------------------------------------
TOTAL INVESTMENTS (100.3%) (COST $5,088,165) 6,396,117
-------------------------------------------------------------
-------------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS (-0.3%) (21,790)
-------------------------------------------------------------
-------------------------------------------------------------
TOTAL NET ASSETS (100.0%) $6,374,327
-------------------------------------------------------------
<F1> Non-income producing
ADR - American Depository Receipt
The accompanying Notes to Financial Statements are an integral part of this
schedule.
The Catholic Funds
<PAGE>
877/222-2402
------------------------------------------------------------------------------
Schedule of Investments
AS OF SEPTEMBER 30, 2000
------------------------------------------------------------------------------
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
------------------------------------------------------------------------------
Common Stocks (99.8%) Shares Market Value
------------------------------------------------------------------------------
AEROSPACE (0.4%)
----------------
The B.F. Goodrich Company 500 $ 19,594
Leader in aerospace systems and services,
and in specialty chemicals; it no
longer makes tires
-------------------------------
TOTAL 19,594
-------------------------------
AIR TRANSPORTATION (0.7%)
-------------------------
Delta Air Lines, Inc. 400 17,750
Provides air transportation in the U.S.
and more than 30 other countries
UAL Corporation 400 16,800
Holding company for United Air Lines, the #1
air carrier in the world
-------------------------------
TOTAL 34,550
-------------------------------
AUTOS & TRUCKS (0.4%)
---------------------
Ford Motor Company 798 20,199
World's largest truck maker; #2 manufacturer
of cars and trucks combined
-------------------------------
TOTAL 20,199
-------------------------------
BANKING (3.2%)
--------------
Charter One Financial, Inc. 1,512 36,855
Holding company for Charter One Bank (among
the top five U.S. thrifts)
The Chase Manhattan Corporation 900 41,569
Offers commercial, consumer and investment
banking services globally
Dime Bancorp, Inc. 1,000 21,563
Holding company for Dime Savings Bank of
New York
Fleet Boston Corporation 800 31,200
The U.S.' s #8 bank; operates about 1,250
branches in the Northeast
UnionBanCal Corporation 800 18,650
Holding company for Union Bank of California,
which operates globally
-------------------------------
TOTAL 149,837
-------------------------------
CABLE TV (0.5%)
--------------
Comcast Corporation<F1> 300 12,281
Operates cable communication systems; serves
about 5.7 million subscribers in the U.S.
USA Networks, Inc.<F1> 500 10,969
Operates USA Network, the Sci-Fi Channel and the
Home Shopping Network; produces TV shows; owns
TV stations and Ticketmaster
-------------------------------
TOTAL 23,250
-------------------------------
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
Common Stocks (99.8%) Shares Market Value
------------------------------------------------------------------------------
CASINOS & HOTELS (0.5%)
-----------------------
Mandalay Resort Group<F1> 1,000 $ 25,625
Owns 10 casino/hotels in Nevada, including
Mandalay Bay, Circus Circus, Excalibur
and Luxor in Las Vegas
-------------------------------
TOTAL 25,625
-------------------------------
CHEMICALS (1.0%)
----------------
Dow Chemical Company 900 22,444
World leader in the production of plastics,
chemicals, hydrocarbons, herbicides and
pesticides
The Lubrizol Corporation 800 15,750
Makes fuel additives designed to control
deposits and improve combustion; has
1,100 products marketed worldwide
W.R. Grace & Company<F1> 1,400 9,625
Focuses on catalysts, construction materials,
and coatings and sealants
-------------------------------
TOTAL 47,819
-------------------------------
COMMUNICATIONS (2.3%)
---------------------
AT&T Corporation - Liberty Media
Corporation<F1> Operates cable, 600 10,800
broadcast-television and satellite
networks worldwide
Broadwing Inc.<F1> 1,200 30,675
Formerly Cincinnati Bell; provides
telecommunications services and offers long-
distance, Internet and data services
Clear Channel Communications, Inc.<F1> 200 11,300
#1 radio station owner in the U.S.; owns,
programs or sells airtime worldwide
McLeodUSA Inc.<F1> 900 12,881
Provides telecommunications services,
including local and long-distance phone
service, Internet access and other data
services; operates more than 800,000 local
access lines in 21 states
Motorola, Inc. 1,500 42,375
Makes cellular products, semiconductors,
two-way radios, pagers, computers and
networking peripherals
-----------------------------
TOTAL 108,031
-----------------------------
COMPUTER PRODUCTS & SERVICES (11.5%)
------------------------------------
Cisco Systems, Inc.<F1> 2,700 149,175
Controls more than three-quarters of
the global market for products that link
networks and power the Internet
Diebold, Inc. 600 15,937
U.S.' s leading producer of automated
teller machines (ATMs)
EMC Corporation<F1> 1,200 118,950
#1 maker of mainframe computer disk memory
hardware and software
The accompanying Notes to Financial Statements are an integral part of this
schedule.
The Catholic Funds
<PAGE>
877/222-2402
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
Common Stocks (99.8%) Shares Market Value
------------------------------------------------------------------------------
Hewlett-Packard Company 500 $ 48,500
#3 computer company; provides computers,
imaging and printing peripherals, software
and related services
Microsoft Corporation<F1> 1,650 99,516
Dominant developer of computer operating
systems and applications software
Oracle Corporation<F1> 900 70,875
Leading developer of database management
systems software, which lets multiple users
and applications access the same data
simultaneously
Quantum Corporation - Hard Disk Drive<F1> 1,200 11,925
A top U.S. maker of disk drives
VeriSign, Inc.<F1> 100 20,256
Its software provides digital certificates of
authentication used to encrypt data and
protect access to data and transactions
sent over the Internet and large networks
-----------------------------
TOTAL 535,134
-----------------------------
COMPUTERS & SOFTWARE (4.8%)
---------------------------
Adobe Systems, Inc. 400 62,100
Leader in desktop publishing software,
including Photoshop, Illustrator and PageMaker
Apple Computer, Inc.<F1> 800 20,600
Makes such products as the Macintosh computer,
the fruit-colored iMac, the Mac OS, servers,
peripherals and software
Compaq Computer Corporation 400 11,032
#1 PC maker in the world; second-largest
computer seller in the world
Gateway, Inc.<F1> 600 28,050
#2 direct marketer of personal computers in
the U.S. International Business Machines
International Business Machines Corporation 700 78,750
World's top provider of computer hardware;
#2 provider of software
Macromedia, Inc.<F1> 300 24,244
Offers a host of Web design software,
and multimedia playback and graphics
development tools
-----------------------------
TOTAL 224,776
-----------------------------
CONSUMER PRODUCTS (0.8%)
------------------------
Tupperware Corporation 2,000 36,000
Makes a variety of household products
-----------------------------
TOTAL 36,000
-----------------------------
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
-----------------------------------------------------------------------------
Schedule of Investments (continued)
-----------------------------------------------------------------------------
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
Common Stocks (99.8%) Shares Market Value
-----------------------------------------------------------------------------
COSMETICS & TOILETRIES (1.6%)
----------------------------
Avon Products, Inc. 1,100 $ 44,962
World's largest direct seller of cosmetics
and beauty-related items
Kimberly-Clark Corporation 500 27,906
World's top maker of personal paper products,
including Kleenex and Scott
-----------------------------
TOTAL 72,868
------------------ -----------
DATA PROCESSING (0.2%)
----------------------
First Data Corporation 300 11,719
Provides information processing and related
services to the transaction-card, payment,
teleservices and information-management
industries
-----------------------------
TOTAL 11,719
-----------------------------
DISTRIBUTION (0.6%)
-------------------
Tech Data Corporation<F1> 700 29,925
World's #2 distributor of microcomputer
products
-----------------------------
TOTAL 29,925
-----------------------------
DIVERSIFIED SERVICES & MANUFACTURING (4.8%)
-------------------------------------------
General Electric Company 2,700 155,756
Produces aircraft engines, transportation
equipment, appliances, lighting, electric
distribution and control equipment and
related products and is a major presence
in financial services
Illinois Tool Works Inc. 484 27,043
Makes a range of products used in the
automotive, construction, and food and
beverage industries
Tyco International Ltd. 800 41,500
World leader in security and fire protection
-----------------------------
TOTAL 224,299
-----------------------------
DRUGS & MEDICAL SUPPLIES (6.2%)
-------------------------------
AmeriSource Health Corporation<F1> 800 37,600
Distributes wholesale pharmaceuticals and
health care products
Bergen Brunswig Corporation, Class A 2,100 24,544
Distributes drugs and medical-surgical
supplies; provides over-the-counter
medications, beauty products and sundries
Forest Laboratories, Inc.<F1> 500 57,344
Develops and manufactures name-brand and
generic prescription and nonprescription
pharmaceutical products
Merck & Company, Inc. 1,000 74,438
A leading drug maker; its prescription benefits
management subsidiary Merck-Medco accounts for
almost half of its sales
The accompanying Notes to Financial Statements are an integral part of this
schedule.
The Catholic Funds
<PAGE>
877/222-2402
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
Common Stocks (99.8%) Shares Market Value
------------------------------------------------------------------------------
Pfizer Inc. 600 $ 26,963
#2 drugmaker in the world; products include
impotence treatment Viagra, cardiovascular
drug Norvasc and cholesterol-lowering Lipitor
as well as such consumer brands as Visine,
BenGay, Listerine, Certs, Dentyne, Efferdent
and Zantac
Schering-Plough Corporation 1,500 69,750
Develops and markets prescription drugs,
animal health products, over-the-counter
drugs, and foot care and sun care products
-----------------------------
TOTAL 290,639
-----------------------------
ELECTRONICS (6.4%)
------------------
Avnet, Inc. 800 22,700
U.S.' s second-largest distributor of
electronic components and computer products
AVX Corporation 600 15,637
Makes passive electronic components for cell
phones, space rockets, photocopiers, automotive
braking systems, hearing aids and locomotives
Intel Corporation 1,100 45,719
Makes microprocessors, including the powerful
Pentium and the low-end Celeron, that have
provided the brains for IBM-compatible PCs
since 1981
Johnson Controls, Inc. 700 37,231
Makes automobile seats, interior systems and
batteries, as well as environmental control
systems for commercial buildings
L-3 Communications Holdings, Inc.<F1> 300 16,950
Makes sophisticated secure communications
products
Sanmina Corporation<F1> 600 56,175
Contract manufacturer of high-end
electronic components
SCI Systems, Inc.<F1> 900 36,900
World's #2 contract manufacturer of
electronic components
Symbol Technologies, Inc. 500 17,969
A world leader in portable data terminals
and bar code scanners
Texas Instruments, Inc. 1,100 51,906
Makes semiconductors, analog chips, logic
chips and microprocessors
-----------------------------
TOTAL 301,187
-----------------------------
FINANCIAL SERVICES (9.5%)
------------------------
Ambac Financial Group, Inc. 500 36,625
Financial holding company whose subsidiaries
sell financial guaranty insurance
Citigroup Inc. 1,400 75,687
The largest financial services company
(formed from the merger of Citicorp and
Travelers Group)
Donaldson, Lufkin & Jenrette, Inc. 700 62,606
Does investment and merchant banking and
provides funding for companies via direct
investment as well as managing and
underwriting securities
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
Common Stocks (99.8%) Shares Market Value
------------------------------------------------------------------------------
Freddie Mac 500 $ 27,031
Buys conventional residential mortgages from
banks and mortgage bankers
The Goldman Sachs Group, Inc. 350 39,878
A leader in global investment banking; one of
the top U.S. IPO underwriters
Household International, Inc. 600 33,975
Through its subsidiaries, provides co-branded
and private-label credit cards, as well as
financing for purchases
J.P. Morgan & Company 300 49,013
Offers a wide variety of commercial banking
and investment services
Merrill Lynch & Company, Inc. 800 52,800
Retail/wholesale financial supermarket
Morgan Stanley Dean Witter & Company 400 36,575
Investment banking and retail brokerage
company; leading credit card issuer
Washington Mutual, Inc. 700 27,869
Largest U.S. thrift, with more than 2,000
facilities
-----------------------------
TOTAL 442,059
-----------------------------
FOOD & BEVERAGE (4.5%)
----------------------
General Mills, Inc. 600 21,300
Makes and markets a variety of food products
including Cheerios, Gold Medal, Betty Crocker,
Bisquick, Hamburger Helper and Fruit Roll-Ups
Keebler Foods Company 900 37,800
#2 cookie and cracker maker in the U.S.; #1
supplier of Girl Scout cookies
McCormick & Company, Inc. 1,100 32,725
World's #1 spice maker; also makes specialty
food products
The Quaker Oats Company 500 39,563
Produces a diverse line of food products
Ralston-Ralston Purina Group 1,200 28,425
World's largest dry dog and cat food producer
Safeway Inc.<F1> 700 32,681
Food retailer with over 1,500 stores located
throughout the U.S. and Canada
SUPERVALU, Inc. 1,100 16,569
Supplies about 4,800 grocery stores nationwide
with brand-name and private-label merchandise;
operates nearly 350 company-owned stores
-----------------------------
TOTAL 209,063
-----------------------------
HEALTH CARE SERVICES & SUPPLIES (5.5%)
--------------------------------------
Allergan, Inc. 700 59,106
A leading maker of eye care and skin care
products with worldwide distribution
Amgen, Inc.<F1> 900 62,845
Makes and markets therapeutic products for
hematopoiesis (blood cell production),
inflammation, autoimmunity, neurobiology and
soft-tissue repair
The accompanying Notes to Financial Statements are an integral part of this
schedule.
The Catholic Funds
<PAGE>
877/222-2402
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
Common Stocks (99.8%) Shares Market Value
------------------------------------------------------------------------------
Bausch & Lomb, Inc. 300 $ 11,681
#1 maker of contact lenses, lens care products
and eyedrops
Baxter International, Inc. 450 35,916
Produces blood transfusion systems, hemophilia
treatments, home dialysis systems and intravenous
products
Bristol-Myers Squibb Company 1,000 57,125
Sells products including Clairol and Excederin;
70% of sales from pharmaceuticals
Johnson & Johnson 300 28,181
One of the world's largest and most
diversified health care product makers
-----------------------------
TOTAL 254,854
-----------------------------
INSTRUMENTS (1.5%)
------------------
Waters Corporation<F1> 800 71,200
Makes high-performance liquid chromatography
instruments that researchers, scientists and
engineers use to separate and identify
chemicals and materials
----------------------------
TOTAL 71,200
----------------------------
INSURANCE (2.1%)
----------------
American General Corporation 400 31,200
Provides retirement products, individual
life insurance and consumer finance
American International Group, Inc. 300 28,706
One of the world's largest insurance firms
The Hartford Financial Services Group, Inc. 500 36,469
Offers life insurance, annuities, employee
benefits administration, asset management
and mutual funds
-----------------------------
TOTAL 96,375
-----------------------------
INTERNET (1.3%)
--------------
America Online, Inc.<F1> 600 32,250
World's #1 provider of online services; its
pending agreement to buy entertainment giant
Time Warner will make the company #1
in all things media
Yahoo! Inc.<F1> 300 27,300
The top Internet portals bringing in its
revenue from banner ads and sponsorships
-----------------------------
TOTAL 59,550
-----------------------------
MACHINERY-DIVERSIFIED (0.3%)
----------------------------
Ingersoll-Rand Company 400 13,550
Makes mining equipment, air compressors,
production equipment, bearings, components,
power-generation pumps and architectural
hardware
-----------------------------
TOTAL 13,550
-----------------------------
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
Common Stocks (99.8%) Shares Market Value
------------------------------------------------------------------------------
MANUFACTURING (2.3%)
-------------------
Corning, Inc. 300 $ 89,100
One of the world's top makers of fiber-optic
cable, which it invented more than 20 years
ago
Energizer Holdings, Inc.<F1> 800 19,600
#2 U.S. battery maker; known for pink bunny
marketing icon
----------------------------
TOTAL 108,700
----------------------------
MEDIA (0.5%)
------------
Gannett Co., Inc. 400 21,200
Largest newspaper publisher in the U.S. (its
flagship being USA TODAY); also active in
TV broadcasting
-----------------------------
TOTAL 21,200
-----------------------------
MULTIMEDIA (2.5%)
-----------------
Time Warner Inc. 600 46,950
World's largest media company; being
purchased by AOL
Viacom Inc.<F1> 400 23,400
World's #2 media company; owns CBS,
Paramount Pictures, UPN, MTV Networks,
Showtime Networks and 50% of Comedy Central
The Walt Disney Company 1,200 45,900
Operates Walt Disney World resort in Florida,
Disneyland theme park and two hotels in
California; earns royalties from Disneyland
Tokyo and Paris; makes and distributes movies
-----------------------------
TOTAL 116,250
-----------------------------
OIL (6.8%)
----------
Chevron Corporation 700 59,675
#3 U.S. integrated oil company
Conoco, Inc., Class A 1,450 37,881
Integrated oil and gas company, exploring for
petroleum in 15 countries
Exxon Mobil Corporation 700 62,387
World's #1 integrated oil company
Murphy Oil Corporation 600 38,888
Explores for and produces oil and gas
Royal Dutch Petroleum Company 400 23,975
World's #2 oil and gas conglomerate
Texaco, Inc. 600 31,500
Markets fuel and lubricants worldwide;
operates transportation, trading and
distribution facilities
The accompanying Notes to Financial Statements are an integral part of this
schedule.
The Catholic Funds
<PAGE>
877/222-2402
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
Common Stocks (99.8%) Shares Market Value
------------------------------------------------------------------------------
Ultramar Diamond Shamrock Corporation 1,300 $ 32,988
#2 independent oil refining and marketing
company in the U.S.
USX-Marathon Group 1,100 31,213
Major revenue generator of USX's two business
units (USX-U.S. Steel is the other); explores
for and produces oil and gas in several
countries
-----------------------------
TOTAL 318,507
-----------------------------
PAINTING PRODUCTS (0.8%)
-----------------------
The Sherwin-Williams Company 1,700 36,338
U.S.'s largest paint company
-----------------------------
TOTAL 36,338
-----------------------------
PIPELINES (0.3%)
----------------
The Williams Companies, Inc. 300 12,675
Produces and transports natural gas and
petroleum products; provides telephone
service
-----------------------------
TOTAL 12,675
-----------------------------
PRINTING & PUBLISHING (1.8%)
----------------------------
Dow Jones & Company, Inc. 600 36,300
Publishes the Wall Street Journal, Barron's
and SmartMoney (jointly owned with Hearst);
supplies information electronically to more
than 1.1 million subscribers through the Dow
Jones Newswires
Knight-Ridder, Inc. 675 34,298
Publishes newspapers including the Detroit Free
Press, The Philadelphia Inquirer and The
Miami Herald
Lexmark International Group, Inc.,
Class A<F1> 300 11,250
A leading maker of computer printers and
related products
-----------------------------
TOTAL 81,848
-----------------------------
RETAIL (3.1%)
-------------
Best Buy Company, Inc.<F1> 500 31,812
Sells home office products, consumer
electronics, entertainment software and
appliances throughout the U.S.
Federated Department Stores, Inc.<F1> 800 20,900
Largest upscale department store retailer
in the U.S., with over 400 stores in 33 states,
including the prestigious Bloomingdale's
and Macy's chains
Kohl's Corporation<F1> 300 17,306
Operates more than 230 family-oriented
department stores
Lowe's Companies, Inc. 400 17,950
#2 U.S. home improvement retail chain
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
--------------------------------------------------------------------------------
Schedule of Investments (continued)
--------------------------------------------------------------------------------
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
COMMON STOCKS (99.8%) Shares Market Value
--------------------------------------------------------------------------------
Ross Stores, Inc. 1,400 $ 20,125
Operates a discount clothing chain; sells a
variety of consumer products
Wal-Mart Stores, Inc. 800 38,500
World's #1 retailer with about 4,000 stores
-----------------------------
TOTAL 146,593
-----------------------------
SEMICONDUCTORS (0.9%)
--------------------
PMC-Sierra, Inc.<F1> 50 10,763
Provides broadband communications chips used
in a wide range of networking devices
Teradyne, Inc.<F1> 200 7,000
One of the world's top makers of automated
test equipment
Xilinx, Inc.<F1> 300 25,687
Leads in field-programmable gate arrays and
complex programmable logic devices
-----------------------------
TOTAL 43,450
-----------------------------
TELECOMMUNICATIONS (8.5%)
-------------------------
ALLTEL Corporation 450 23,484
Provides local phone service; has gained
approval to provide competitive local
access service
CenturyTel, Inc. 800 21,800
Sells mainstream telecommunications services
Crown Castle International Corporation<F1> 400 12,425
Owns and operates wireless-communications
towers and broadcast-transmission
infrastructure
EchoStar Communications Corporation<F1> 200 10,550
Second-largest U.S. direct broadcast
satellite TV provider, operating the
DISH Network
Lucent Technologies, Inc. 1,100 33,619
Leading U.S. maker of telecom equipment and
software
Nextel Communications, Inc. Class A<F1> 600 28,050
Major digital mobile phone operator in the U.S.;
has wireless Internet access and international
roaming
Nortel Networks Corporation 500 29,781
North America's #2 maker of telecom products
including switching, wireless and broadband
network systems; a leader in fiber-optic
systems
Qwest Communications International Inc.<F1> 864 41,526
Provides Internet access, data, multimedia and
voice services over its 25,500-mile broadband
fiber-optic network
SBC Communications, Inc. 1,700 85,000
Operates more than 37 million access lines in
eight states and has agreed to buy Ameritech in
a deal that would create the nation's top local
telephone company
The accompanying Notes to Financial Statements are an integral part of this
schedule.
The Catholic Funds
<PAGE>
877/222-2402
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
Common Stocks (99.8%) Shares Market Value
------------------------------------------------------------------------------
Sprint Corporation 700 $ 20,519
Provides local telephone service; distributes
telecom equipment; publishes directories
Sprint Corporation (PCS Group)<F1> 600 21,038
Runs an all-digital wireless network that
serves about 7.4 million subscribers
Tellabs, Inc.<F1> 400 19,100
Produces equipment used to transmit data, video
and voice signals and develops related access
and transport network systems
Verizon Communications 1,000 48,437
#1 local phone company in the U.S.; #2
telecom services provider, behind AT&T
-----------------------------
TOTAL 395,329
-----------------------------
TRAVEL (0.3%)
-------------
Galileo International, Inc. 800 12,400
Second-largest CRS for the travel industry;
its Galileo and Apollo booking
systems allow travel agents to book plane,
hotel and car rental reservations
-----------------------------
TOTAL 12,400
-----------------------------
UTILITIES (1.4%)
----------------
Ameren Corporation 600 25,125
Serves about 1.5 million electricity customers
and 300,000 natural gas customers in Missouri
and Illinois
Public Service Enterprise Group Inc. 900 40,219
Through a subsidiary, provides electricity
and natural gas in New Jersey
-----------------------------
TOTAL 65,344
-----------------------------
--------------------------------------------------------------
TOTAL COMMON STOCKS (COST $4,314,352) 4,660,737
--------------------------------------------------------------
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
Principal
Short-Term Investments (3.6%) Amount Market Value
------------------------------------------------------------------------------
VARIABLE-RATE DEMAND NOTES (3.6%)
---------------------------------
Sara Lee Corporation, 6.22% $ 84,889 $ 84,889
Wisconsin Corporate Central Credit
Union, 6.29% 79,591 79,591
Wisconsin Electric Power Company, 6.235% 5,447 5,447
--------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS (COST $169,927) 169,927
--------------------------------------------------------------
--------------------------------------------------------------
TOTAL INVESTMENTS (103.4%) (COST $4,484,279) 4,830,664
--------------------------------------------------------------
--------------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS (-3.4%) (159,535)
--------------------------------------------------------------
--------------------------------------------------------------
TOTAL NET ASSETS (100.0%) $4,671,129
--------------------------------------------------------------
<F1> Non-income producing
The accompanying Notes to Financial Statements are an integral part of this
schedule.
The Catholic Funds
<PAGE>
877/222-2402
------------------------------------------------------------------------------
Schedule of Investments
AS OF SEPTEMBER 30, 2000
------------------------------------------------------------------------------
THE CATHOLIC MONEY MARKET FUND
------------------------------------------------------------------------------
Principal Amortized
Commercial Paper (100.0%) Amount Cost
------------------------------------------------------------------------------
American Honda Finance Corporation, 6.48%, 11/6/00 $ 350,000 $ 347,732
Bell Atlantic Financial Services, Inc., 6.53%, 10/5/00 500,000 499,637
British Telecommunications PLC, 6.55%, 10/19/00 280,000 279,083
CBA Finance, Inc., 6.55%, 10/5/00 500,000 499,636
Compass Securitization LLC, 6.50%, 12/15/00 355,000 350,193
Credit Suisse First Boston, Inc., 6.23%, 10/5/00 460,000 459,682
DaimlerChrysler North America Holding Corporation,
6.50%, 11/29/00 450,000 445,206
Den Norske Bank, 6.49%, 11/14/00 500,000 496,034
E.W. Scripps Company, 6.52%, 10/27/00 500,000 497,646
Fidex PLC, 6.53%, 11/15/00 250,000 247,959
Forrestal Funding Master Trust, 6.58%, 10/6/00 500,000 499,543
Fountain Square Commercial Corporation, 6.55%, 11/13/00 260,000 257,966
Galaxy Funding, Inc., 6.59%, 1/23/01 400,000 391,653
Goldman Sachs Group LP, 6.67%, 10/2/00 130,000 129,976
IPALCO Enterprises, 6.55%, 10/11/00 300,000 299,454
K2 Corporation, 6.25%, 10/10/00 380,000 379,406
Knight Ridder, Inc., 6.52%, 1/12/01 370,000 363,098
KZH-KMS Corporation, 6.52%, 10/16/00 500,000 498,642
Marshall & Ilsley Corporation, 6.55%, 12/19/00 500,000 492,813
PACCAR Financial Corporation, 6.50%, 10/3/00 235,000 234,915
Peacock Funding Corporation, 6.52%, 1/16/01 500,000 490,311
Pemex Capital, Inc., 6.23%, 10/10/00 500,000 499,221
Sigma Finance, Inc., 6.40%, 10/20/00 500,000 498,311
Stellar Funding Group, Inc., 6.52%, 10/17/00 500,000 498,551
Triple-A One Funding Corporation, 6.52%, 10/6/00 500,000 499,547
Unifunding, Inc., 6.54%, 10/17/00 450,000 448,692
Wood Street Funding Corporation, 6.51%, 11/14/00 420,000 416,658
----------------------------------------------------------------
TOTAL COMMERCIAL PAPER 11,021,565
----------------------------------------------------------------
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
------------------------------------------------------------------------------
Schedule of Investments (continued)
------------------------------------------------------------------------------
THE CATHOLIC MONEY MARKET FUND
Principal Amortized
Short-Term Investment (0.1%) Amount Cost
------------------------------------------------------------------------------
VARIABLE-RATE DEMAND NOTE (0.1%)
--------------------------------
Firstar Bank, N.A., 6.37% $ 14,199 $ 14,199
---------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT 14,199
---------------------------------------------------------------
---------------------------------------------------------------
TOTAL INVESTMENTS (100.1%) 11,035,764
---------------------------------------------------------------
---------------------------------------------------------------
LIABILITIES, LESS OTHER ASSETS (-0.1%) (14,787)
---------------------------------------------------------------
---------------------------------------------------------------
TOTAL NET ASSETS (100.0%) $11,020,977
---------------------------------------------------------------
The accompanying Notes to Financial Statements are an integral part of this
schedule.
The Catholic Funds
<PAGE>
877/222-2402
------------------------------------------------------------------------------
Statements of Assets & Liabilities
------------------------------------------------------------------------------
AS OF SEPTEMBER 30, 2000
------------------------------------------------------------------------------
The The The Catholic The
Catholic Catholic Disciplined Catholic
Equity Large-Cap Capital Money
Income Growth Appreciation Market
Fund Fund Fund Fund
------------------------------------------------------------------------------
ASSETS
------
Invsestments, at cost $3,973,999 $5,088,165 $4,484,279 $11,035,764
Investments, at value $3,914,779 $6,396,117 $4,830,664 $11,035,764
Income receivable 9,253 2,836 5,104 59
Receivable for investments
sold - - 229,594 -
Other assets 4,243 4,829 4,491 8,400
----------------------------------------------------------------------
TOTAL ASSETS 3,928,275 6,403,782 5,069,853 11,044,223
----------------------------------------------------------------------
LIABILITIES
----------
Payable for investments purchased - - 370,496 -
Dividends payable - - - 167
Payable to affiliates 5,418 8,995 6,579 872
Accrued expenses and
other liabilities 21,912 20,460 21,649 22,207
----------------------------------------------------------------------
TOTAL LIABILITIES 27,330 29,455 398,724 23,246
----------------------------------------------------------------------
------------------------------------------------------------------------------
NET ASSETS $3,900,945 $6,374,327 $4,671,129 $11,020,977
------------------------------------------------------------------------------
NET ASSETS CONSIST OF
---------------------
Paid in capital $3,959,326 $5,077,291 $4,312,685 $11,020,977
Accumulated undistributed
net investment income (loss) 624 - - -
Accumulated undistributed
net realized gain (loss) 215 (10,916) 12,059 -
Net unrealized appreciation
(depreciation) on investments (59,220) 1,307,952 346,385 -
------------------------------------------------------------------------------
NET ASSETS $3,900,945 $6,374,327 $4,671,129 $11,020,977
------------------------------------------------------------------------------
CAPITAL STOCK, $.001 PAR VALUE
------------------------------
Authorized 50,000,000 50,000,000 50,000,000 400,000,000
Issued and outstanding 398,715 485,865 426,420 11,020,977
Net asset value, redemption
price and minimum offering
price per share $9.78 $13.12 $10.95 $1.00
Maximum offering price per
share $10.19 $13.67 $11.41 $1.00
The accompanying Notes to Financial Statements are an integral part of these
statements.
<PAGE>
------------------------------------------------------------------------------
Statements of Operations
------------------------------------------------------------------------------
FOR THE PERIOD ENDED SEPTEMBER 30, 2000
------------------------------------------------------------------------------
The The The Catholic The
Catholic Catholic Disciplined Catholic
Equity Large-Cap Capital Money
Income Growth Appreciation Market
Fund Fund Fund Fund<F1>
------------------------------------------------------------------------------
INVESTMENT INCOME
-----------------
Dividend income<F2> $67,259 $16,884 $50,927 $ -
Interest income 24,804 10,294 8,483 475,887
----------------------------------------------------------------------
TOTAL INCOME 92,063 27,178 59,410 475,887
----------------------------------------------------------------------
EXPENSES
--------
Investment advisory fees 29,415 48,168 37,741 22,822
Portfolio accounting fees 26,750 23,451 26,888 19,507
Transfer agent fees
and expenses 19,005 19,317 18,745 12,431
Federal and state
registration fees 12,225 12,256 12,213 11,946
Audit fees 10,095 9,646 9,545 4,732
Distribution fees 9,192 13,380 10,484 3,804
Legal fees 5,281 5,381 6,066 4,011
Custody fees 4,683 6,833 6,113 4,135
Printing and postage expenses 4,666 5,606 5,764 3,845
Directors' fees and expenses 3,009 2,959 2,959 1,509
Other 2,007 2,382 2,117 2,316
----------------------------------------------------------------------
TOTAL EXPENSES 126,328 149,379 138,635 91,058
----------------------------------------------------------------------
Less waivers and
reimbursements by adviser (65,660) (55,719) (65,251) (21,497)
----------------------------------------------------------------------
NET EXPENSES 60,668 93,660 73,384 69,561
----------------------------------------------------------------------
------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) $31,395 ($66,482) ($13,974) $406,326
------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
--------------------------------------------------
Net realized gain (loss)
on investments 15,747 23,740 26,037 -
Net change in unrealized
appreciation (depreciation)
on investments 72,954 1,347,058 460,099 -
----------------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN (LOSS)
ON INVESTMENTS 88,701 1,370,798 486,136 -
----------------------------------------------------------------------
------------------------------------------------------------------------------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $120,096 $1,304,316 $472,162 $406,326
------------------------------------------------------------------------------
<F1> Reflects operations for the period from January 7, 2000 (date of initial
public investment), to September 30, 2000.
<F2> Net of $76, $242 and $37 in foreign withholding taxes, respectively.
The accompanying Notes to Financial Statements are an integral part of these
statements.
The Catholic Funds
<PAGE>
This page intentionally left blank.
<PAGE>
------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
------------------------------------------------------------------------------
<TABLE>
<CAPTION
The Catholic
The Catholic Disciplined The Catholic
The Catholic Equity Large-Cap Capital Appreciation Money Market
Income Fund Growth Fund Fund Fund
-------------------- --------------------- ------------------- -----------
For the For the For the For the For the For the For the
Year Period Year Period Year Period Period
Ended Ended Ended Ended Ended Ended Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30
2000 1999<F1> 2000 1999<F1> 2000 1999<F1> 2000<F1>
----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net investment income (loss) $31,395 $16,121 ($66,482) ($10,627) ($13,974) ($301) $406,326
Net realized gain (loss) on investments 15,747 (14,885) 23,740 (34,656) 26,037 5,606 _
Net change in unrealized appreciation
(depreciation) on investments 72,954 (132,174) 1,347,058 (39,106) 460,099 (113,714) _
---------------------------------------------------------------------------------------------------------------------------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS 120,096 (130,938) 1,304,316 (84,389) 472,162 (108,409) 406,326
---------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
-----------------------------
Distributions from net investment income (31,418) (16,160) - - - - (406,326)
Distributions from net realized gains - - - - (5,309) - _
---------------------------------------------------------------------------------------------------------------------------
CHANGE IN NET ASSETS
FROM DISTRIBUTIONS
TO SHAREHOLDERS (31,418) (16,160) - - (5,309) - (406,326)
---------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
--------------------------
Proceeds from shareholder purchases 495,665 3,342,590 1,515,599 3,654,497 874,712 3,474,001 11,464,572
Net asset value of shares issued to shareholders
in payment of distributions declared 30,538 16,110 - - 5,305 - 413,565
Cost of shares redeemed (25,538) - (15,696) - (41,333) - (857,160)
---------------------------------------------------------------------------------------------------------------------------
CHANGE IN NET ASSETS
FROM CAPITAL
SHARE TRANSACTIONS 500,665 3,358,700 1,499,903 3,654,497 838,684 3,474,001 11,020,977
---------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
CHANGE IN NET ASSETS 589,343 3,211,602 2,804,219 3,570,108 1,305,537 3,365,592 11,020,977
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, BEGINNING OF PERIOD 3,311,602 100,000 3,570,108 - 3,365,592 - -
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD $3,900,945 $3,311,602 $6,374,327 $3,570,108 $4,671,129 $3,365,592 $11,020,977
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME $624 - - - - - -
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F1> Reflects operations for the period from May 3, 1999 (date of initial
public investment), to September 30, 1999.
<F2> Reflects operations for the period from January 7, 2000 (date of initial
public investment), to September 30, 2000.
The accompanying Notes to Financial Statements are an integral part of these
statements.
The Catholic Funds
<PAGE>
------------------------------------------------------------------------------
Notes to Financial Statements
------------------------------------------------------------------------------
AS OF SEPTEMBER 30, 2000
------------------------------------------------------------------------------
1. Organization
---------------
The Catholic Funds, Inc. was incorporated on December 16, 1998, as a Maryland
Corporation and is registered as a diversified open-end management investment
company under the Investment Company Act of 1940. The Catholic Equity Income,
Large-Cap Growth, Disciplined Capital Appreciation and Money Market Funds (the
"Funds") are separate, diversified portfolios of The Catholic Funds, Inc. The
Funds, other than The Catholic Money Market Fund, are managed by Catholic
Financial Services Corporation (the "adviser"), became effective on April 30,
1999, and commenced operations on May 3, 1999. The Catholic Money Market Fund
became effective on November 8, 1999, and commenced operations on January 7,
2000. Costs incurred with the organization, initial registration and public
offering of shares for each portfolio of the Funds have been paid by the
adviser.
2. Significant Accounting Policies
----------------------------------
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. These
policies are in conformity with generally accepted accounting principles "GAAP".
The presentation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates and assumptions.
A) INVESTMENT VALUATION
Securities traded over-the-counter or on a national securities exchange are
valued on the basis of market value in their principal and most representative
market. Securities where the principal and most representative market is a
national securities exchange are valued at the latest reported sale price on
such exchange. Exchange-traded securities for which there were no transactions
are valued at the latest reported bid price. Securities traded on only over-the-
counter markets are valued at the latest bid prices. Debt securities (other than
short-term obligations) are valued at prices furnished by a pricing service,
subject to review by the Funds' adviser. Short-term obligations (maturing within
60 days) are valued on an amortized cost basis, which approximates market value.
Securities for which quotations are not readily available and other assets are
valued at fair value as determined in good faith by the adviser under the
supervision of the board of directors.
B) DELAYED DELIVERY TRANSACTIONS
The Funds may purchase or sell securities on a when-issued or forward commitment
basis. Payment and delivery may take place a month or more after the date of the
transaction. The price of the underlying securities and the date when the
securities will be delivered and paid for are fixed at the time the transaction
is negotiated. Losses may arise due to changes in the market value of the
underlying securities or if the counterparty does not perform under
the contract.
C) FEDERAL INCOME TAXES
No provision for federal income taxes has been made since the Funds have
complied to date with the provisions of the Internal Revenue Code available to
regulated investment companies and intend to continue to so comply in future
years. As of September 30, 2000, The Catholic Large-Cap Growth Fund had a
federal income tax capital loss carryover of $9,803, expiring in the
tax year ending September 30, 2008.
The Catholic Funds
<PAGE>
877/222-2402
------------------------------------------------------------------------------
Notes to Financial Statements (continued)
------------------------------------------------------------------------------
D) DISTRIBUTIONS TO SHAREHOLDERS
All of the equity Funds except The Catholic Equity Income Fund pay dividends of
net investment income annually. The Catholic Equity Income Fund pays dividends
of net investment income quarterly. The Catholic Money Market Fund pays
dividends monthly. Distributions of net realized capital gains, if any, will be
declared at least annually. Distributions to shareholders are recorded on the
ex-dividend date.
The character of distributions made during the year from net investment income
or net realized gains may differ from the characterization for federal income
tax purposes due to differences in the recognition of income, expense or gain
items for financial statement and tax purposes. Where appropriate,
reclassifications between net asset accounts are made for such differences that
are permanent in nature. Accordingly, at September 30, 2000, reclassifications
were recorded to increase undistributed net investment income by $647, $66,482
and $13,974, decrease paid-in-capital by $0, $66,482 and $0 and decrease
accumulated undistributed net realized gains by $647, $0 and $13,974 for The
Catholic Equity Income, Large-Cap Growth and Disciplined Capital Appreciation
Funds, respectively.
E) EXPENSES
Each Fund is charged for those expenses that are directly attributable to it,
such as investment advisory and custody fees. Expenses that are not directly
attributable to a Fund are either allocated equally among the Funds or in
proportion to their respective net assets
when appropriate.
F) OTHER
For financial reporting purposes, investment transactions are accounted for on
the trade date. The Funds determine the gain or loss realized from investment
transactions by comparing the original cost of the security lot sold with the
net sale proceeds. Dividend income is recognized on an accrual basis. Premiums
and discounts on securities purchased are amortized using the level yield to
maturity method.
3. Investment Advisory and Other Agreements with Related Parties
----------------------------------------------------------------
Each of the Funds has entered into an agreement with the adviser, with whom
certain officers and directors of the Funds are affiliated, to furnish
investment advisory services to the Funds. Under the terms of this agreement,
the Funds will pay the adviser a fee, computed daily and payable monthly, at the
annual rate of the following percentages of average daily net assets: 0.80% for
The Catholic Equity Income Fund; 0.90% for The Catholic Large-Cap Growth and
Disciplined Capital Appreciation Funds; and 0.30% for The Catholic Money Market
Fund. The Funds and the adviser have entered into sub-advisory agreements for
each of the Funds. The sub-advisers are Todd Investment Advisors, Inc. "Todd"
for The Catholic Equity Income Fund, Peregrine Capital Management, Inc.
"Peregrine" for The Catholic Large-Cap Growth Fund, Vantage Investment Advisors,
Inc. "Vantage" for The Catholic Disciplined Capital Appreciation Fund and Strong
Capital Management Corporation, Inc. "Strong" for The Catholic Money Market
Fund. The annual rates of their fees, payable from fees paid to the adviser, as
a percent of average daily net assets under the sub-advisory agreements were as
follows:
- Todd: 0.38 of 1% on the first $10 million; 0.35 of 1% on the next $40 million;
and 0.30 of 1% on average daily net assets over $50 million.
- Peregrine: 0.50 of 1% on the first $25 million; 0.45 of 1% on the next $25
million; and 0.40 of 1% on average daily net assets over
$50 million.
- Vantage: 0.50 of 1% on the first $50 million; 0.45 of 1% on the next $50
million; and 0.40 of 1% of the Fund's average daily net assets over $100
million. Vantage has agreed to waive 10 basis points from the fee schedule for
the first two years of the Fund's operations or until its total assets reach
$35 million, whichever occurs first.
<PAGE>
------------------------------------------------------------------------------
Notes to Financial Statements (continued)
------------------------------------------------------------------------------
- Strong: If the portfolio is $50 million or less: 0.20 of 1%; if the portfolio
is over $50 million and less than $100 million: 0.15 of 1%; if the portfolio
is over $100 million and less than $200 million: 0.10 of 1%; if the
portfolio is $200 million or more: 0.075 of 1%. However, neither the adviser
nor sub-adviser shall receive any fees until The Catholic Money Market Fund
has $25 million in assets or for the first six months, whichever comes
earlier, and once either has occurred, the adviser shall charge at an annual
rate of 0.10 of 1% and pay the sub-adviser at an annual rate of 0.05 of 1%
for the next six months or until The Catholic Money Market Fund has $50
million in assets, whichever comes first. The adviser waived their portion
of the advisory fees, 0.05 of 1% for the period ending September 30, 2000.
The adviser voluntarily agreed to reimburse its management fee to the extent
that total annual operating expenses (exclusive of interest, taxes, brokerage
commissions and other costs incurred in connection with the purchase or sale of
portfolio securities, and extraordinary items) exceed 1.65% of the average daily
net assets of The Catholic Equity Income Fund and 1.75% of the average daily net
assets of The Catholic Large-Cap Growth and Disciplined Capital Appreciation
Funds, respectively, and some advisory fees for The Catholic Money Market Fund
as described above, computed on a daily basis.
For the period ended September 30, 2000, expenses of $65,660, $55,719, $65,251
and $21,497 were waived by the adviser in The Catholic Equity Income, Large-Cap
Growth, Disciplined Capital Appreciation and Money Market Funds, respectively.
The adviser may terminate these waivers at any time. The Funds have adopted a
Distribution Plan ("the Plan") pursuant to Rule 12b-1 under the Investment
Company Act of 1940. The Plan authorizes the Trust to use annually 0.25% of its
net assets (0.05% for The Catholic Money Market Fund), computed on a daily basis
to finance certain activities relating to the distribution of its shares to
investors. For the period ended September 30, 2000, 12b-1 distribution expenses
of $9,192, $13,880, $10,484 and $3,804 were paid from The Catholic Equity
Income, Large-Cap Growth, Disciplined Capital Appreciation and Money Market
Funds, respectively. These expenses were remitted to the adviser, who also acts
as distributor for the shares of each Fund. No remuneration has been paid by the
Funds to any of the officers or affiliated Funds' directors. In addition to $500
per year and $250 per meeting, the Funds reimbursed unaffiliated directors for
reasonable expenses incurred in relation to attendance at the meetings.
4. Capital Share Transactions
-----------------------------
Transactions in shares of the Funds for the period ended September 30, 2000,
were as follows:
The Catholic Equity Income Fund
For the For the
Year Ended Period Ended
September 30, 2000 September 30, 1999<F1>
------------------------------------------------------------------------------
Shares sold 51,233 345,341
Shares issued to holders in
reinvestment of distributions 3,098 1,670
Shares redeemed (2,627) -
------------------------------------------------------------------------------
NET INCREASE 51,704 347,011
------------------------------------------------------------------------------
The Catholic Funds
<PAGE>
877/222-2402
------------------------------------------------------------------------------
Notes to Financial Statements (continued)
------------------------------------------------------------------------------
The Catholic Large-Cap Growth Fund
For the For the
Year Ended Period Ended
September 30, 2000 September 30, 1999<F1>
------------------------------------------------------------------------------
Shares sold 122,145 364,985
Shares redeemed (1,265) -
------------------------------------------------------------------------------
NET INCREASE 120,880 364,985
------------------------------------------------------------------------------
The Catholic Disciplined Capital Appreciation Fund
For the For the
Year Ended Period Ended
September 30, 2000 September 30, 1999<F1>
------------------------------------------------------------------------------
Shares sold 82,548 347,236
Shares issued to holders in
reinvestment of
distributions 493 -
Shares redeemed (3,857) -
------------------------------------------------------------------------------
NET INCREASE 79,184 347,236
------------------------------------------------------------------------------
The Catholic Money Market Fund
For the
Period Ended
September 30, 2000<F2>
------------------------------------------------------------------------------
Shares sold 11,464,572
Shares issued to holders
in reinvestment of
distributions 413,565
Shares redeemed (857,160)
------------------------------------------------------------------------------
NET INCREASE 11,020,977
------------------------------------------------------------------------------
<F1> Reflects operations for the period from May 3, 1999 (date of initial
public investment), to September 30, 1999.
<F2> Reflects operations for the period from January 7, 2000 (date of initial
public investment), to September 30, 2000.
<PAGE>
------------------------------------------------------------------------------
Notes to Financial Statements (continued)
------------------------------------------------------------------------------
5. Investment Transactions
--------------------------
The aggregate purchases and sales of securities, excluding short-term
investments, for the Funds for the year ended September 30, 2000, were as
follows:
The Catholic
Disciplined
The Catholic The Catholic Capital
Equity Income Large-Cap Appreciation
Fund Growth Fund Fund
------------------------------------------------------------------------------
PURCHASES
---------
U.S. government $75,656 $ - $ -
Other 1,776,853 2,002,701 2,089,685
SALES
-----
U.S. government 372,736 - -
Other 1,124,308 568,503 1,166,075
At September 30, 2000, gross unrealized appreciation and depreciation on
investments, based on cost for federal income tax purposes of $3,974,561,
$5,089,278 and $4,484,279 were as follows:
The Catholic
Disciplined
The Catholic The Catholic Capital
Equity Income Large-Cap Appreciation
Fund Growth Fund Fund
------------------------------------------------------------------------------
Appreciation $455,600 $1,673,692 $801,792
(Depreciation) (515,382) (366,853) (455,407)
------------------------------------------------------------------------------
NET APPRECIATION
(DEPRECIATION)
ON INVESTMENTS ($59,782) $1,306,839 $346,385
------------------------------------------------------------------------------
The Catholic Funds
<PAGE>
877/222-2402
------------------------------------------------------------------------------
Financial Highlights
------------------------------------------------------------------------------
The Catholic Equity Income Fund
For the For the
Year Ended Period Ended
September 30, 2000 September 30, 1999(<F1>
------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $9.54 $10.00
Net investment income (loss) 0.08 0.05
Net realized and unrealized
gain (loss) on investments 0.24 (0.46)
----------------------------------------------------------------------
TOTAL FROM INVESTMENT
OPERATIONS 0.32 (0.41)
----------------------------------------------------------------------
Distributions from net investment
income (0.08) (0.05)
----------------------------------------------------------------------
TOTAL DISTRIBUTIONS (0.08) (0.05)
----------------------------------------------------------------------
------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $9.78 $9.54
------------------------------------------------------------------------------
Total return<F2> 3.38% (4.06%)<F3>
RATIOS TO AVERAGE NET ASSETS
----------------------------
Expenses<F4><F5> 1.65% 1.65%
Net investment income (loss) <F4><F5> 0.85% 1.47%
Expenses <F4><F6> 3.44% 4.78%
Net investment income (loss) <F4><F6> (0.93%) (1.66%)
Net assets, end of period $3,900,945 $3,311,602
Portfolio turnover rate 42.37% 18.29%<F3>
<F1> Reflects operations for the period from May 3, 1999 (date of initial
public investment), to September 30, 1999.
<F2> Based on net asset value, which does not reflect the sales charge.
<F3> Not annualized.
<F4> Computed on an annualized basis.
<F5> Net of waivers and reimbursements by adviser.
<F6> Gross of waivers and reimbursements by adviser.
The accompanying Notes to Financial Statements are an integral part of these
statements.
<PAGE>
------------------------------------------------------------------------------
Financial Highlights (continued)
------------------------------------------------------------------------------
THE CATHOLIC LARGE-CAP GROWTH FUND
For the For the
Year Ended Period Ended
September 30, 2000 September 30, 1999<F1>
------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $9.78 $10.00
------------------------------------------------------------------------------
Net investment income (loss) (0.14)<F7> (0.03)
Net realized and unrealized gain
(loss) on investments 3.48 (0.19)
---------------------------------------------------------------------
TOTAL FROM INVESTMENT
OPERATIONS 3.34 (0.22)
---------------------------------------------------------------------
-----------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.12 $9.78
-----------------------------------------------------------------------------
Total return <F2> 34.15% (2.20%)<F3>
RATIOS TO AVERAGE NET ASSETS
----------------------------
Expenses <F4><F5> 1.75% 1.75%
Net investment income (loss) <F4><F5> (1.24%) (0.92%)
Expenses <F4><F6> 2.79% 4.70%
Net investment income (loss) <F4><F6> (2.28%) (3.87%)
Net assets, end of period $6,374,327 $3,570,108
Portfolio turnover rate 10.96% 7.31%<F3>
<F1> Reflects operations for the period from May 3, 1999 (date of initial public
investment), to September 30, 1999.
<F2> Based on net asset value, which does not reflect the sales charge.
<F3> Not annualized.
<F4> Computed on an annualized basis.
<F5> Net of waivers and reimbursements by adviser.
<F6> Gross of waivers and reimbursements by adviser.
<F7> Per share net investment loss has been calculated prior to tax adjustments.
The accompanying Notes to Financial Statements are an integral part of these
statements.
The Catholic Funds
<PAGE>
877/222-2402
------------------------------------------------------------------------------
Financial Highlights (continued)
------------------------------------------------------------------------------
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
For the For the
Year Ended Period Ended
September 30, 2000 September 30, 1999<F1>
------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $9.69 $10.00
------------------------------------------------------------------------------
Net investment income (loss) 0.03<F8> 0.00<F8>
Net realized and unrealized gain
(loss) on investments 1.31 (0.31)
----------------------------------------------------------------------
TOTAL FROM INVESTMENT
OPERATIONS 1.28 (0.31)
----------------------------------------------------------------------
Distributions from net realized gain (0.02) 0.00
----------------------------------------------------------------------
TOTAL DISTRIBUTIONS (0.02) 0.00
----------------------------------------------------------------------
Net Asset Value, End of Period $10.95 $9.69
------------------------------------------------------------------------------
Total return<F2> 13.16% (3.10%)<F3>
RATIOS TO AVERAGE NET ASSETS
----------------------------
Expenses <F4><F5> 1.75% 1.75%
Net investment income (loss) <F4><F5> (0.33%) (0.03%)
Expenses <F4><F6> 3.31% 4.83%
Net investment income (loss) <F4><F6> (1.89%) (3.11%)
Net assets, end of period $4,671,129 $3,365,592
Portfolio turnover rate 28.78% 2.44%<F3>
<F1> Reflects operations for the period from May 3, 1999 (date of initial
public investment), to September 30, 1999.
<F2> Based on net asset value, which does not reflect the sales charge.
<F3> Not annualized.
<F4> Computed on an annualized basis.
<F5> Net of waivers and reimbursements by adviser.
<F6> Gross of waivers and reimbursements by adviser.
<F7> Less than one cent per share.
<F8> Per share net investment loss has been calculated prior to tax adjustments.
The accompanying Notes to Financial Statements are an integral part of these
statements.
<PAGE>
------------------------------------------------------------------------------
Financial Highlights (continued)
------------------------------------------------------------------------------
THE CATHOLIC MONEY MARKET FUND
For the
Period Ended
September 30, 2000<F1>
------------------------------------------------------------------------------
Net Asset Value, Beginning of Period $1.00
------------------------------------------------------------------------------
Net investment income (loss) 0.04
----------------------------------------------------------------------
TOTAL FROM INVESTMENT
OPERATIONS 0.04
----------------------------------------------------------------------
Distributions from net investment income (0.04)
----------------------------------------------------------------------
TOTAL DISTRIBUTIONS (0.04)
----------------------------------------------------------------------
------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00
------------------------------------------------------------------------------
Total return <F2> 4.08%<F3>
Ratios to Average Net Assets
----------------------------
Expenses <F4><F5> 0.91%
Net investment income (loss) <F4><F5> 5.34%
Expenses <F4><F6> 1.19%
Net investment income (loss) <F4><F6> 5.06%
Net assets, end of period $11,020,977
<F1> Reflects operations for the period from January 7, 2000 (date of initial
public investment), to September 30, 2000.
<F2> Based on net asset value, which does not reflect the sales charge.
<F3> Not annualized.
<F4> Computed on an annualized basis.
<F5> Net of waivers and reimbursements by adviser.
<F6> Gross of waivers and reimbursements by adviser.
The accompanying Notes to Financial Statements are an integral part of these
statements.
The Catholic Funds
<PAGE>
877/222-2402
------------------------------------------------------------------------------
Report of Independent Public Accountants
------------------------------------------------------------------------------
THE CATHOLIC FUNDS, INC.
------------------------------------------------------------------------------
To the Shareholders and Board of Directors of The Catholic Funds, Inc.:
We have audited the accompanying statements of assets and liabilities including
the schedules of investments, of The Catholic Funds, Inc. (a Maryland
corporation, comprising The Catholic Equity Income, Large-Cap Growth,
Disciplined Capital Appreciation and Money Market Funds [the "Funds"]), as of
September 30, 2000, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, except for The Catholic Money Market Fund, for which is for
the period from inception on January 7, 2000 through the period ended September
30, 2000, and the financial highlights for each of the periods presented. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of September 30, 2000, by correspondence with the custodian. As to
securities purchased but not received, we requested confirmation from brokers
and, when replies were not received, we carried out other alternative auditing
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Catholic Funds, Inc. as of September 30, 2000, the results of its operations for
the year then ended, the changes in its net assets for each of the two years in
the period then ended, except for The Catholic Money Market Fund, for which is
for the period from inception on January 7, 2000 through the period ended
September 30, 2000, and the financial highlights for each of the periods
presented, in conformity with accounting principles generally accepted in the
United States.
/s/ ARTHUR ANDERSEN LLP
ARTHUR ANDERSEN LLP
Milwaukee, Wisconsin
November 2, 2000
<PAGE>
This page intentionally left blank.
<PAGE>
A Note on Forward-Looking Statements
Except for historical information contained in this
annual report for The Catholic Funds, Inc., the matters discussed in these
reports may constitute forward-looking statements made pursuant to the safe
harbor provisions of the Securities Litigation Reform Act of 1995. These include
any adviser, sub-adviser and/or portfolio manager prediction, assessment,
analysis or outlook for individual securities, industries, market
sectors and/or markets. These statements involve risks and uncertainties. In
addition to general risks described for each Fund in the current prospectuses,
other factors bearing on these reports include the accuracy of the adviser's,
and any sub-adviser's or portfolio manager's forecasts and predictions, the
appropriateness of the investment strategies designed by the adviser, any sub-
adviser or portfolio manager to implement their strategies efficiently and
effectively. Any one or more of these factors, as well as other risks affecting
the securities markets and investment instruments generally could cause the
actual results of any Fund to differ materially as compared to benchmarks
associated with the particular Fund.
<PAGE>
BOARD OF DIRECTORS
------------------
- Daniel Steininger - Chairman of the Board
- Thomas Bausch
- J. Michael Borden
- Daniel Doucette
- Allan Lorge
- Thomas Munninghoff
- Conrad Sobczak
- David Vollmar
OFFICERS
--------
- Allan Lorge - President
- Theodore Zimmer - Vice President
- Russell Kafka - Treasurer
- Joseph Wreschnig - Secretary
- Joann Hull - Assistant Secretary
- Cheri Nagan - Assistant Secretary
SUB-ADVISERS
------------
The Catholic Equity Income Fund
- Todd Investment Advisors, Inc.
101 S. 5th Street, Suite 3160
Louisville, KY 40202
The Catholic Large-Cap Growth Fund
- Peregrine Capital Management, Inc.
800 LaSalle Avenue, Suite 1850
Minneapolis, MN 55402
The Catholic Disciplined Capital Appreciation Fund
- Vantage Investment Advisors, Inc.
2005 Market Street
Commerce Square, 38th Floor
Philadelphia, PA 19103
The Catholic Money Market Fund
- Menomonee Falls, WI53051
INVESTMENT ADVISER
------------------
- Catholic Financial Services Corporation
1100 West Wells Street
Milwaukee, WI 53233
TRANSFER AGENT
& CUSTODIAN
-----------
- Firstar Mutual Fund Services, LLC
INDEPENDENT ACCOUNTANTS
-----------------------
- Arthur Andersen LLP
LEGAL COUNSEL
-------------
- Quarles & Brady LLP
THE CATHOLIC
FRATERNAL ALLIANCE
------------------
- Catholic Knights
Daniel Steininger, President
1100 West Wells Street
Milwaukee, WI 53233
- Catholic Order of Foresters
Robert Ciesla, High Chief Ranger
355 Shuman Boulevard
PO Box 3012
Naperville, IL 60566-7012
- Catholic Knights of America
John Kenawell, President
3525 Hampton Avenue
St. Louis, MO 63139-1980
This report is intended for shareholders of The Catholic Funds. It is not
authorized for distribution to prospective investors unless preceded or
accompanied by current prospectuses.
-----------------------------------------------------------------------------
(LOGO)
CATHOLIC FINANCIAL SERVICES CORPORATION
---------------------------------------
INVESTING WITH FAITH IN THE FUTURE
1100 West Wells Street - Milwaukee, WI 53233
1-414-278-6550
Member NASD
The Catholic Funds are not available in all states.
<PAGE>
