[LOGO]
CATHOLIC FINANICAL SERVICES CORPORATION
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INVESTING WITH FAITH IN THE FUTURE
Semi-Annual Report
March 31, 2000
[PHOTO] 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
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<PAGE>
Semi-Annual Report
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
34 The Catholic Money Market Fund
35 Statements of Assets and Liabilities
36 Statements of Operations
37 Statements of Changes in Net Assets
38 Notes to Financial Statements
42 Financial Highlights
45 A Note on Forward-Looking Statements
<PAGE>
President's Letter
April 28, 2000
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[PHOTO APPEARS HERE]
Dear Fellow Shareholder,
I am pleased to provide you with our semi-annual report to shareholders.
For the six months ended March 31, we have experienced quite a volatile market
environment. In fact we saw some of the largest point drops in Dow history. This
has not been a good ride for the faint of heart! But, as I mentioned in previous
letters to you, short-term swings in the market should not deter the long-term
investor. Please keep this performance in perspective. There will always be
volatility in the stock market.
In fact, given the record returns of the past several years and the market
volatility of the last year or so, the Investment Company Institute (ICI) has
launched an investor awareness campaign. In a letter1 recently published in some
national newspapers, the ICI outlines some of the basic guidelines of investing
that will continue to determine the success of a long-term investment program:
- Diversify your investments.
- Understand the relationship between risk and reward.
- Maintain realistic expectations about investment performance.
- Keep short-term market movements in perspective.
Performance/2/
As far as our Funds go, I am pleased with the overall performance for the
period. The Catholic Equity Income Fund had a six-month return of 4.82%, based
on net asset value. Considering value investing has been out of favor over the
period, it may signal a return to more traditional views of market valuation.
This is a perfect example of one of the benefits of long-term investing: growth
and value stocks alternate taking the top seat in the market. Therefore, a
diversified, long-term investor strives to own some of both in order to reduce
volatility.
The Catholic Funds 2
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3 877/222/2402
[PHOTO APPEARS OF A SUNFLOWER]
The Catholic Disciplined Capital Appreciation Fund had a six-month return of
15.12%, based on net asset value. And, The Catholic Large-Cap Growth Fund,
returned 38.96%, based on net asset value. While this was an outstanding result,
you should be aware that the Fund's performance during this period is higher
than most other historical periods and may not be sustained for longer periods.
Outlook
John S. Dale, CFA and Gary E. Nussbaum, CFA, our portfolio managers for The
Catholic Large-Cap Growth Fund, remain positive. They believe the speculative
element of the market need not necessarily have a long-term impact on the vast
majority of stocks. For the most part, stock market valuations remain
reasonable. While U.S. corporate profit growth prospects remain healthy, driving
stock prices forward, they don't expect an earnings acceleration. Companies
continue to find it tough to raise prices, margins are at already high levels
and profit comparisons are becoming more difficult. While inflation may go up
some, it is likely to stay low-especially with a very vigilant Federal Reserve.
I encourage you to read further into this report to see the detailed reporting
on each of our Funds. You'll learn a little more about how our portfolio
managers think and what they do. I believe it is important for you to be an
informed investor. Thank you for your confidence in our Funds.
Best regards
/s/ Allan g. Lorge
Allan G. Lorge
President
The Catholic Funds
/1/ For more information write to: ICI Investor Awareness Campaign,
P.O. Box 27850, Washington, DC 20038-7850 or visit the Investor Awareness
section of their website at www.ici.org/about funds/investor_awareness.html.
/2/ Securities and Exchange Commission standardized yields are contained in the
Fund Spotlights on the following pages.
<PAGE>
Fraternalism Up Close
[PHOTO OF CATHOLIC ORDER OF FORESTERS]
[PHOTO OF CATHOLIC KNIGHTS OF AMERICA]
CATHOLIC ORDER OF FORESTERS
---------------------------
Just two years ago, the youth court of North Star Court 588 in Red Lake Falls,
Minnesota, did not exist. Today, the court boasts a vital, active youth program
that has attracted 58 young new Catholic Order of Foresters (COF) members. Much
of the credit for this phenomenal growth belongs to Tammy Conn, the court's
enthusiastic and dedicated youth director.
Tammy can't imagine why everyone wouldn't want to be a Forester. "We've got it
all-great insurance, fraternal benefits and the chance for the kids to volunteer
and participate in a lot of fun supervised activities. And COF makes it all
possible."
The youth court's latest activity was a fall party for residents at Sunview, an
assisted living facility in Red Lake Falls. They planned games, purchased food
and craft supplies, and prepared decorated bags. The day of the party, residents
opened their doors to the young trick-or-treaters who presented them with bags
filled with stickers, greeting cards, candy and decorative ceramic figures. The
costumed youth then led residents into the community room where they played Pin
the Stem on the Pumpkin and worked side-by-side creating sucker ghosts and
spider crackers.
Their efforts made such an impression it warranted coverage in the local
newspaper and a published letter of appreciation from the Red Lake Falls Housing
Authority Director. But for the youth group, knowing they brightened the
residents' day proved recognition enough.
CATHOLIC KNIGHTS OF AMERICA
---------------------------
On December 18, 1998, an historic event took place for the Catholic Knights of
America. By a leap of faith, the National Board of Trustees voted to purchase a
495-acre piece of property-one of the largest investments the society has ever
made.
In 1999, less than a year after acquiring the property, The Catholic Knights of
America Residential Board and Care Facility was opened. The first resident was
admitted to the center in October 1999, and residency applications are now being
accepted. The facility is licensed to hold more than 40 residents in both semi-
private and private rooms. Cost for the residents varies depending on the
individual circumstances. Residents receive a variety of services including:
room, board, laundry services, security, housekeeping, activities,
transportation assistance and other services.
Its registered nurse and additional nursing staff are available to provide basic
medical assistance and monitor medication. The staff is trained
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5 877/222-2402
to not only provide assistance to residents and their families, but to do so in
a professional and friendly manner. The dining facilities, visitors center and
offices are located on the first floor for easy accessibility by residents.
Rooms have windows and monitored access to the grounds. Each common lounge area
is available with cable television, board games and tables for individual or
group use.
Residents have the opportunity to use the C. K. of A. Chapel for private
reflection. They can also take advantage of the Special Intention Vigil Light
Program.
As a further extension of its fraternal work, they have opened the John F.
Kenawell Retreat House and Lodge Building on the property. Both buildings are
open to members and non-members to host fraternal or religious events.
CATHOLIC KNIGHTS
----------------
Catholic Knights has a Match Fund Program that has been very successful and has
grown dramatically since its beginning in the early 1980s.
Almost all of Catholic Knights' 129 branches get involved in raising funds for
their local parishes, schools, families and communities. Last year, Catholic
schools and parishes received almost $600,000 as a result of the Match Fund
Program.
Catholic Knights families and individuals also benefit from the Match Fund
Program. Fundraisers are held to aid individuals with medical expenses. Money
raised has helped members and non-members with leukemia, cancer and kidney
disease, as well as accident victims. Last year, over $225,000 was donated for
the benefit of individuals and branch communities.
Local branch communities raised funds for local fire departments, playgrounds,
rescue squad service, libraries, Habitat for Humanity, youth groups and Special
Olympics. And recently, 11 Catholic Knights branches joined together to raise
funds for the development of a Catholic radio program in the Diocese of La
Crosse.
[PHOTO OF CATHOLIC KNIGHTS]
THE CATHOLIC FRATERNAL ALLIANCE
1999 SUMMARY
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COMMUNITY SERVICE
Number of Events......................... 15,562
Number of Hours.......................... 232,333
Contributions ($)........................ $ 974,985
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FRATERNAL SUPPORT
Number of event.......................... 17,004
Number of Hours.......................... 413,637
Contributions ($)........................ $ 1,974,985
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NUMBER OF MEMBERS
Insured.................................. 225,680
<PAGE>
[PHOTO APPEARS HERE]
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. For the six months ended March 31, 2000, how did the Fund perform
relative to the market and why?
The Catholic Equity Income Fund increased 4.82% versus 17.54% for the S&P 500,
an unmanaged index comprised of 500 common stocks representative of the market
as a whole. As presented in the table below, this period was an extraordinary
time for growth momentum stocks. Regardless of size, growth stocks dramatically
outperformed value by a record 2,800 basis points for large-cap stocks, 6,400
basis points for mid-cap stocks and 3,700 basis points for small-cap stocks. As
a large-cap value fund, the portfolio performed in line with the value index.
Large Medium Small
Growth 34.0 68.9 46.3
Value 5.9 4.8 9.0
---------------------------------------------------------
Difference 28.1 64.1 37.3
The outperformance of growth stocks primarily came from the strong performance
in technology companies, which has moved their company valuation levels to
historically unattractive levels. The portfolio's underweighting in this group
was responsible for the constrained performance in the recent six-month period.
2. What factors do you see having the most influence on the markets over the
next six months?
The two factors we see having the most negative influence on the market over the
next six months are 1) a Federal Reserve that is moving aggressively to cool the
economy and 2) the record-high valuations for the largest stocks. This is being
positively offset by a solid economy that is experiencing strong productivity
and earnings growth. Coupled with a strong IPO supply and mutual fund cash flow
demand, 2000 promises to be the most volatile year ever.
3. Until the last two weeks in March, value investing got about as much respect
as Rodney Dangerfield. Is there really a new paradigm this time or will value
come back?
>From mid-1998, large-cap growth stocks have dominated performance. Prior to
that, the market experienced three years of trendless oscillating between value
and growth. Going forward, we expect value to improve its relative performance
as investors pull back from overvalued growth stocks, in particular, technology
issues.
The Catholic Funds 6
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4. Mr. Greenspan seems committed to raising interest rates to keep inflation in
check. How is this affecting the types of companies you look at as potential
investments?
Through the end of the first quarter, higher interest rates have suppressed
valuations of financials and the so-called "old economy" and have benefited
high-growth companies. As we approach the end of the cyclical interest rate
hikes, our expectation is for financials to improve their relative performance,
similar to what the market experienced in 1994. Also, we look for the overvalued
technology sector to be adversely affected by the higher interest rate
environment. As valuations improve in the technology sector, we expect to
increase portfolio exposure.
PORTFOLIO CHARACTERISTICS MARCH 31, 2000
NAV per Share....................................... $9.95
Total Net Assets.................................... $3,615,438
Number of Holdings.................................. 54
Largest Market Cap.................................. $550.0 Billion
Median Market Cap................................... $21.4 Billion
Smallest Market Cap................................. $1.0 Billion
Price/Earnings Ratio................................ 22.0x
Price/Book Ratio.................................... 4.8x
STANDARDIZED RETURNS - CUMULATIVE MARCH 31, 2000
(UNAUDITED)
On Net Asset Value On Offering Price*
--------------------------------------------------------------------
6 Months: 4.82% 0.61%
Since Inception 5/3/99: 0.57% (3.48)%
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.
* Total return calculation reflects a maximum sales load of 4.00%.
[PIE CHART APPEARS HERE]
SECTOR BREAKDOWN
Technology..................... 22.1%
Financial...................... 14.8
Consumer Cyclicals............. 10.0
Telecommunications............. 7.6
Consumer Non-Cyclicals......... 6.8
Utility........................ 6.4
Health Care.................... 5.8
Energy......................... 5.6
Industrials.................... 5.3
Commercial Services............ 5.0
Corporate Bonds................ 3.9
Consumer Services.............. 2.8
Basic Materials................ 1.8
Transport...................... 1.2
Cash Equivalents............... 0.9
TOP 5 HOLDINGS - SUBJECT TO CHANGE WITHOUT NOTICE MARCH 31, 2000
<TABLE>
<CAPTION>
% of Total Portfolio
<S> <C>
MICROSOFT CORPORATION...................................................................... 4.5%
Dominant developer of computer operating systems and applications software
-----------------------------------------------------------------------------------------------------------------
MCI WORLDCOM, INC.......................................................................... 3.6
Second only to AT&T in the U.S. long-distance market
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INTEL CORPORATION.......................................................................... 3.5
Worldwide dominant microprocessor developer and manufacturer
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KIMBERLY-CLARK CORPORATION................................................................. 3.2
World's top maker of personal paper products, including Kleenex and Scott
-----------------------------------------------------------------------------------------------------------------
COMPUTER SCIENCES CORPORATION.............................................................. 2.9
Among the world's leaders in information technology consulting, systems integration
and outsourcing to global industries and government agencies
</TABLE>
<PAGE>
The Catholic Large-Cap Growth Fund
[PICTURE OF JOHN S. DALE APPEARS HERE]
John S. Dale, CFA, Portfolio Manager
[PICTURE OF GARY E. NUSSBAUM APPEARS HERE]
Gary E. Nussbaum, CFA, Portfolio Manager
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 Norwest Bank Minnesota N.A. 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.
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 both Chartered Financial Analysts.
?1. For the six months ended March 31, 2000, how did the Fund perform relative
to the market and why?
The Catholic Large-Cap Growth Fund performed particularly well relative to the
market and growth stock benchmarks. Growth stocks outperformed value stocks by a
wide margin over this period. Stronger relative earnings growth, combined with a
low inflationary environment, were the key drivers of strong growth stock
outperformance. Fund investors benefited from our focus on pure, high-quality
growth companies. These companies have been producing average earnings growth of
29% over the past twelve months, compared to 15% for the S&P Industrials.
2. What do you see having the most influence on the markets over the next six
months?
The Federal Reserve will continue its tight vigilance over inflation. This
vigilance, along with other positive factors, should serve to maintain the low
and stable pricing environment. U.S. profit growth should remain healthy over
the next six months, providing a solid base for stock prices.
We are somewhat concerned with the rise in margin debt. Margin debt jumped
considerably just in the past few months. Speculation has clearly spilled onto
Main Street. This could have a short-term negative impact, as investors find
that leverage can work on the downside. It bears watching.
3. What makes you decide to drop a company from the portfolio? Will you ever
sell a good company, such as Cisco Systems, if its stock price gets too high?
We sell stocks for three reasons. One is valuation. We sell a stock before it
reaches the bottom, unattractive quartile of our valuation work. Yes, we will
sell a company if the stock price gets too high. But our valuation work is based
on secular value drivers, versus short-term price movements. Another reason is
we avoid a rationalization process that can negatively impact portfolio returns.
When we purchase holdings we spell out up-front the most important long-term
drivers of growth and profitability for a company. Rather than rationalize, we
sell a stock if the company falls off the expected long-term path. The final
reason is we remain fully invested, so we must reduce or eliminate a position to
add a new position.
The Catholic Funds 8
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4. We have to ask, do you see any potential market sector "Bubbles" out there
that could pop?
The Internet frenzy continues, with the addition of a downside dynamic. Many
market participants do not understand the current valuations being placed on
Internet companies. However, we believe this sector needs to be viewed much more
akin to venture capital. In fact, this venture capital world has moved into the
realms of both Wall Street and Main Street. Like venture capital, the return
potential is quite high, but so is the risk. Like venture capital, a few
companies will produce astronomical long-term returns--even from these levels.
But many companies will drop to earth and even blow away. This phenomenon of
"venture capital public companies" has accentuated the upside moves. Now it will
be interesting to see investor reactions to the myriad of venture failures.
PORTFOLIO CHARACTERISTICS MARCH 31, 2000
NAV per Share............................................ $13.59
Total Net Assets......................................... $5,827,674
Number of Holdings....................................... 33
Largest Market Cap....................................... $550.0 Billion
Median Market Cap........................................ $46.5 Billion
Smallest Market Cap...................................... $2.0 Billion
Price/Book Ratio......................................... 10.6x
STANDARDIZED RETURNS - CUMULATIVE MARCH 31, 2000
(UNAUDITED)
On Net Asset Value On Offering Price*
-------------------------------------------------------------------------
6 Months: 38.96% 33.37%
Since Inception 5/3/99: 35.90% 30.42%
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.
* Total return calculation reflects a maximum sales load of 4.00%.
[PIE CHART APPEARS HERE]
SECTOR BREAKDOWN
Technology..................... 38.1%
Financial...................... 17.3
Health Care.................... 13.6
Commercial Services............ 12.0
Consumer Cyclicals............. 9.7
Industrials.................... 4.9
Consumer Non-Cyclicals......... 1.1
Energy......................... 0.7
Cash........................... 2.6
TOP 5 HOLDINGS - SUBJECT TO CHANGE WITHOUT NOTICE MARCH 31, 2000
<TABLE>
<CAPTION>
% of Total Portfolio
<S> <C>
CISCO SYSTEMS, INC................................................................................ 9.8%
The leading provider of high-performance products used to build local and wide area networks
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MICROSOFT CORPORATION............................................................................. 6.9
Dominant developer of computer operating systems and applications software
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INTEL CORPORATION................................................................................. 6.1
Worldwide dominant microprocessor developer and manufacturer
------------------------------------------------------------------------------------------------------------------------
THE CHARLES SCHWAB CORPORATION.................................................................... 5.9
Provides financial services; it's eSchwab is the #1 online trader
------------------------------------------------------------------------------------------------------------------------
THE GOLDMAN SACHS GROUP, INC...................................................................... 5.0
A leader in global investment banking; one of the top U.S. IPO underwriters
</TABLE>
<PAGE>
The Catholic Disciplined Capital Appreciation Fund
MANAGEMENT
Vantage Investment Advisors, Inc. of New York City, is the sub-adviser for The
Catholic Disciplined Capital Appreciation Fund. Vantage 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 personnel overseen by its office of the chief
executive officer.
? 1. For the six months ended March 31, 2000, how did the Fund perform relative
to the market and why?
The Fund gained 15.12%, while the S&P 500(R), an unmanaged index comprised of
500 common stocks representative of the market as a whole, gained 17.54%.
Positive contributions to performance relative to the market came from good
individual stock picking and holding some smaller names with higher than
expected earnings growth. Performance was dominated and negatively impacted by
the narrow market of the fourth quarter of 1999, the Fund's low P/E orientation
and the fact that smaller companies were not rewarded as the largest growth
stocks significantly outperformed smaller companies and value stocks.
The market's volatility became quite evident over this period--the narrow and
tech-dominated market of the fourth quarter of 1999 broadened in the last three
months. Equity markets began 2000 very much like 1999, with growth stocks
dominating value stocks substantially. By the end of period, value stocks made
some headway but in the end, growth still won out. The reversal in March may be
a temporary hiccup in growth's irrational exuberance, or it may be the beginning
of a period in which investors come to their senses and realize that
fundamentals such as actual earnings do indeed matter.
2. What do you see having the most influence on the markets over the next six
months?
As always, the key drivers related to the performance of the stock market are
earnings growth expectations, inflation and interest rates. The earnings growth
of companies continues to outpace expectations and this will probably be true
for the next six months. This is due to companies performing very well and to
the market having a somewhat pessimistic attitude towards the market. Recent
inflation numbers are beginning to show some signs of potential higher inflation
for the future and this will have a negative impact as far as interest rates are
concerned. The combination of all these forces will likely mean continued higher
volatility for the foreseen future. This bodes well for a disciplined investment
process that minimizes the emotional dimension of investing.
3. Does your computer model factor in general economic data such as oil prices,
inflation and interest rates?
Our stock selection process, or computer models, takes into account general
economic data such as oil prices, inflation and interest rates. It does so in an
implicit way by going directly to the earnings expectations that analysts on
Wall Street have about the stocks they follow. Ultimately, it is the growth, or
lack thereof, in the earnings of companies that drives stock performance, along
with interest rates.
The Catholic Funds 10
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11 877/222-2402
4. It is an article of faith with some investors that there is a greater
potential risk as well as a greater potential for reward associated with
investing in small and mid-cap companies. Is this true?
The last fifty years of investing have taught us that generally for a security
to have a higher expected return than another security, it also has a higher
expected level of risk. Two securities, where one has a lower risk and higher
expected return than the other could not co-exist for very long--the mispriced
relationship would be arbitraged away. This illustration highlights what active
management is all about--finding the cheaper securities with the lower or equal
risk levels and selling the expensive securities with higher or equal risk. At
an asset class level, smaller companies tend to be riskier than the larger
companies, but tend also to have higher growth rates. The higher risk brings
with it higher expected earnings growth rates. If the growth rates were not
higher, the prices of smaller companies would have to fall in relation to the
bigger companies. In a nutshell, it is true that higher expected returns are
generally accompanied with higher expected risk and vice versa.
PORTFOLIO CHARACTERISTICS MARCH 31, 2000
NAV per Share............................................ $11.14
Total Net Assets......................................... $4,417,449
Number of Holdings....................................... 124
Largest Market Cap....................................... $550.0 Billion
Median Market Cap........................................ $7.8 Billion
Smallest Market Cap...................................... $0.8 Billion
Price/Book Ratio......................................... 3.8x
STANDARDIZED RETURNS - CUMULATIVE MARCH 31, 2000
(UNAUDITED)
On Net Asset Value On Offering Price*
--------------------------------------------------------------------------
6 Months: 15.12% 10.56%
Since Inception 5/3/99: 11.55% 7.05%
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.
* Total return calculation reflects a maximum sales load of 4.00%.
[PIE CHART APPEARS HERE]
SECTOR BREAKDOWN
Technology................... 29.2%
Financial.................... 19.2
Health Care.................. 9.3
Consumer Cyclicals........... 8.6
Telecommunications........... 8.1
Consumer Services............ 5.0
Consumer Non-Cyclicals....... 4.8
Energy....................... 3.9
Commercial Services.......... 3.5
Basic Materials.............. 2.8
Industrials.................. 1.7
Utility...................... 1.3
Transport.................... 1.0
Cash......................... 1.6
TOP 5 HOLDINGS - SUBJECT TO CHANGE WITHOUT NOTICE MARCH 31, 2000
<TABLE>
<CAPTION>
% of Total Portfolio
<S> <C>
MICROSOFT CORPORATION........................................................................ 4.0%
Dominant developer of computer operating systems and applications software
-----------------------------------------------------------------------------------------------------------------
TEXAS INSTRUMENTS, INC....................................................................... 2.2
Makes semiconductors, analog chips, logic chips and microprocessors
-----------------------------------------------------------------------------------------------------------------
EMC CORPORATION.............................................................................. 2.0
#1 maker of mainframe computer disk memory hardware and software
-----------------------------------------------------------------------------------------------------------------
MORGAN STANLEY DEAN WITTER & COMPANY......................................................... 1.9
#2 retail broker in the United States; top online broker; leading asset management company
-----------------------------------------------------------------------------------------------------------------
IBM CORPORATION.............................................................................. 1.9
World's top provider of computer hardware, #2 provider of software
</TABLE>
<PAGE>
The Catholic Money Market Fund
[PICTURE OF JAY N. MUELLER APPEARS HERE]
Jay N. Mueller, Portfolio Manager
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. For four years prior to that, he was a securities analyst and
portfolio manager with R. Meeder & Associates of Dublin, Ohio. Jay received his
B.A. in Economics in 1982 from the University of Chicago. Jay is also 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 Catholic Money Market Fund began taking investments on January 7, 2000. Its
objective is to provide attractive yields and a stable share price of $1.00 by
investing in a portfolio of high quality short-term debt securities issued by
entities that meet the core Catholic value screening process for all The
Catholic Funds.
On March 23, 2000, the Fund received an Aaa money market fund rating from
Moody's Investor Services, a nationally recognized securities rating
organization or NRSRO. This rating reflects the quality of the Fund's permitted
investments and the experience of the Fund's sub-adviser. This rating also
incorporates average weighted maturity guidelines and expected liquidity
management. This rating relates to portfolio quality rather than to any expected
investment return and it is not a comparison to any other fund.
An investment in the Fund is neither insured nor guaranteed by the Federal
Deposit Insurance Corporation (FDIC) or any other government 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.
PORTFOLIO CHARACTERISTICS MARCH 31, 2000
NAV per Share....................................... $1.00
Total Net Assets.................................... $10,452,880
Number of Holdings.................................. 24
MONEY RATES** MARCH 31, 2000
[GRAPH APPEARS HERE]
The Catholic Money Market Fund
30-Day Yield................................. 5.22%
National Average Six-Month
Certificate of Deposit Rate*................. 4.78%
National Average
Bank Money Market*........................... 2.01%
National Average Interest Checking*.......... 0.83%
*Barron's
**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 12
<PAGE>
13 877/222-2402
Schedule of Investments
AS OF MARCH 31, 2000 (UNAUDITED)
THE CATHOLIC EQUITY INCOME FUND
<TABLE>
<CAPTION>
Common Stocks (95.3%) Shares Market Value
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE (2.4%)
---------------
Honeywell International, Inc. 1,750 $ 92,203
Formerly AlliedSignal; produces a wide variety of automated controls for the
aerospace, automotive, pharmaceutical, fibers and plastics industries
---------------------------
Total 92,203
---------------------------
AIR TRANSPORTATION (1.1%)
-------------------------
Delta Air Lines, Inc. 800 42,600
Provides air transportation in the U.S. and more than 30 other countries
---------------------------
Total 42,600
---------------------------
AUTOS & TRUCKS (2.0%)
---------------------
Ford Motor Company 1,600 73,500
World's largest truck maker; #2 manufacturer of cars and trucks combined
---------------------------
Total 73,500
---------------------------
BANKING (8.0%)
--------------
Bank of America Corporation 1,700 89,144
The first coast-to-coast bank with about 11,500 branches globally
Bank One Corporation 1,300 44,687
A superregional bank with some 2,000 branches in 14 states
Regions Financial Corporation 700 15,969
Provides consumer banking and financial services out of more than 700 offices
The Chase Manhattan Corporation 900 78,469
Offers commercial, consumer and investment banking services globally
Wachovia Corporation 1,050 70,941
A southeastern interstate bank holding company offering consumer and
corporate banking services
---------------------------
Total 299,210
---------------------------
COMPUTER PRODUCTS & SERVICES (14.1%)
------------------------------------
Computer Associates International, Inc. 1,300 76,944
Offers software products including data access and network management tools
Computer Sciences Corporation* 1,400 110,775
Among the world's leaders in information technology consulting, systems
integration and outsourcing to global industries and government agencies
Compuware Corporation* 2,400 50,550
Products include testing, development and management software, stand-alone
mainframes and corporate computer networks
</TABLE>
<TABLE>
<S> <C>
The accompanying Notes to Financial Statements are an integral part of this schedule.
</TABLE>
<PAGE>
Schedule of Investments (continued)
THE CATHOLIC EQUITY INCOME FUND
<TABLE>
<CAPTION>
Common Stocks (95.3%) Shares Market Value
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
International Business Machines Corporation 600 $ 70,800
World's top provider of computer hardware; #2 provider of software
Microsoft Corporation* 1,600 170,000
Dominant developer of computer operating systems and applications software
SunGard Data Systems, Inc.* 1,300 49,075
A computer services and software company
-------------------------------
Total 528,144
-------------------------------
COSMETICS & TOILETRIES (3.2%)
-----------------------------
Kimberly-Clark Corporation 2,150 120,400
World's top maker of personal paper products, including Kleenex and Scott
-------------------------------
Total 120,400
-------------------------------
DRUGS & MEDICAL SUPPLIES (7.2%)
-------------------------------
Abbott Laboratories 2,500 87,969
One of the top U.S. health care and pharmaceutical producers
Bristol-Myers Squibb Company 950 54,863
Sells pharmaceuticals and personal care products, including Clairol and Excedrin
Cardinal Health, Inc. 1,100 50,462
A large U.S. wholesaler of pharmaceuticals and surgical and hospital supplies
Merck & Company, Inc. 1,250 77,656
#1 drug maker in the U.S.; one of the world's largest prescription drug companies
-------------------------------
Total 270,950
-------------------------------
ELECTRICAL EQUIPMENT (3.7%)
---------------------------
Emerson Electric Co. 600 31,725
Offers appliances and tools; electronics; telecommunications products and
industrial automation products, HVAC components; and process-control products
for the commercial and industrial sectors
General Electric Company 700 108,631
Produces aircraft engines, transportation equipment, appliances, lighting,
electric distribution and control equipment and related products
-------------------------------
Total 140,356
-------------------------------
ELECTRONICS (3.5%)
------------------
Intel Corporation 1,000 131,937
Worldwide dominant microprocessor developer and manufacturer
-------------------------------
Total 131,937
-------------------------------
</TABLE>
<TABLE>
<S> <C>
The Catholic Funds 14 The accompanying Notes to Financial Statements are an integral part of this schedule.
</TABLE>
<PAGE>
15 877/222-2402
Schedule of Investments (continued)
THE CATHOLIC EQUITY INCOME FUND
<TABLE>
<CAPTION>
Common Stock (95.3%) Shares Market Value
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ENERGY SERVICES (4.5%)
----------------------
Duke Energy Corporation 1,500 $ 78,750
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.
TECO Energy, Inc. 2,700 52,481
Holding company for Tampa Electric; has subsidiaries in unregulated businesses
Texas Utilities Company 1,350 40,078
Supplies energy to more than nine million customers in Australia, Europe,
Mexico and Texas; involved in U.S. deregulated businesses
------------------------------
Total 171,309
------------------------------
FINANCIAL SERVICES (7.7%)
-------------------------
Fannie Mae 1,200 67,725
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 31,325
In addition to its tax operations in the U.S., Canada, Australia and the UK, it also
provides mortgage services, financial planning, investment advice and accounting
Household International, Inc. 1,000 37,312
Through its subsidiaries, provides co-branded and private-label credit cards, as
well as financing for purchases
MBIA, Inc. 800 41,650
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 56,100
World's third-largest issuer of credit and the leading issuer of affinity cards
MGIC Investment Corporation 1,300 56,712
The parent company of Mortgage Guaranty Insurance, the leading provider of
private mortgage insurance to lenders
------------------------------
Total 290,824
------------------------------
FOOD & BEVERAGE (4.4%)
----------------------
Anheuser-Busch Companies, Inc. 1,350 84,038
World's largest brewer; also operates theme parks and water parks
Safeway, Inc.* 1,800 81,450
A food retailer with over 1,500 stores located throughout the U.S. and Canada
------------------------------
Total 165,488
------------------------------
INSURANCE (2.0%)
----------------
CIGNA Corporation 1,000 75,750
A multiline insurance and financial services company
------------------------------
Total 75,750
------------------------------
</TABLE>
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
Schedule of Investments (continued)
THE CATHOLIC EQUITY INCOME FUND
<TABLE>
<CAPTION>
Common stocks (95.3%) Shares Market Value
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OIL (7.4%)
----------
Atlantic Richfield Company 700 $ 59,500
An integrated oil company engaging in the exploration, production, refining and
marketing of crude oil, natural gas and natural gas liquids
Burlington Resources, Inc. 1,000 37,000
The largest independent oil and gas company in the United States (in terms of
proved reserves) and the #4 producer of natural gas in North America
Coastal Corporation 1,500 69,000
A diversified energy company involved in natural gas, petroleum, chemicals,
power plants and trucking
Conoco, Inc., Class A 1,300 32,013
An integrated oil and gas company, exploring for petroleum in 15 countries
Texaco, Inc. 1,500 80,438
Markets fuel and lubricants worldwide; operates transportation, trading and
distribution facilities
--------------------------------
Total 277,951
--------------------------------
PAPER PRODUCTS (1.8%)
---------------------
Willamette Industries, Inc. 1,700 68,212
Owns more than 100 pulp, paper and other wood-product manufacturing plants
--------------------------------
Total 68,212
--------------------------------
REAL ESTATE INVESTMENT TRUSTS (REITs) (5.0%)
--------------------------------------------
Archstone Communities Trust 2,000 39,875
The second-largest apartment real estate investment trust in the United States
First Industrial Realty Trust, Inc. 1,800 49,050
A real estate investment trust that acquires, develops and manages industrial
real estate in about 25 states
Mack-Cali Realty Corporation 1,500 38,250
A real estate investment trust that owns, leases and manages office buildings
Simon Property Group, Inc. 800 19,200
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 42,275
A real estate investment trust that owns about 40 million sq. ft. of industrial,
office and retail space
--------------------------------
Total 188,650
--------------------------------
RETAIL (5.9%)
-------------
Dollar General Corporation 2,625 70,547
A chain of about 4,000 discount stores in 24 midwestern and southeastern states
</TABLE>
<TABLE>
<S> <C>
The Catholic Funds 16 The accompanying Notes to Financial Statements are an integral part of this schedule.
</TABLE>
<PAGE>
17 877/222-2402
Schedule of Investments (continued)
THE CATHOLIC EQUITY INCOME FUND
<TABLE>
<CAPTION>
Common Stocks (95.3%) Shares Market Value
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Federated Department Stores, Inc.* 800 $ 33,400
The largest upscale department store retailer in the United States, with over
400 stores in 33 states including the prestigious Bloomingdale's and Macy's chains
Target Corporation 1,600 119,600
Formerly Dayton Hudson; operates 1,200-plus stores in three formats: Target, a
discount chain with more than 900 stores; Mervyn's California, mid-range department
stores; Dayton's, Hudson's and Marshall Field's, upscale department stores
---------------------------
Total 223,547
---------------------------
TELECOMMUNICATIONS (11.4%)
--------------------------
GTE Corporation 850 60,350
Serves more than 23 million local phone customers; offers long-distance cellular
and PCS phone service, consumer Internet access and related services
Lucent Technologies, Inc. 1,100 66,825
Leading U.S. maker of telecom equipment and software
MCI WORLDCOM, Inc.* 3,000 135,937
Second only to AT&T in the U.S. long-distance market; its UUNET unit offers
Internet access to businesses over a massive Internet backbone; plans to offer
high-speed Internet access via wireless cable
SBC Communications, Inc. 1,100 46,200
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
Tellabs, Inc.* 1,200 75,581
Produces equipment used to transmit data, video and voice signals and develops
related access and transport network systems
U S WEST, Inc. 600 43,575
Provides local phone and related services
---------------------------
Total 428,468
---------------------------
-------------------------------------------------------
Total Common Stocks (Cost $3,668,098) 3,589,499
-------------------------------------------------------
</TABLE>
*Nondividend-paying stock
<TABLE>
<CAPTION>
Principal
Fixed-Income Investments (3.9%) Amount Market Value
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE INVESTMENTS (3.9%)
----------------------------
Atlantic Richfield Company, 5.90%, 4/15/2009 $ 25,000 $ 22,743
Bank of America Corporation, 7.75%, 7/15/2002 50,000 50,323
Jones Apparel Group, 7.875%, 6/15/2006 25,000 24,349
Lexmark International Group, Inc., 6.75%, 5/15/2008 25,000 23,121
Nielsen Media Research, 7.60%, 6/15/2009 25,000 24,577
----------------------------
Total 145,113
----------------------------
-----------------------------------------------------------------
Total Fixed-Income Investments (Cost $148,219) 145,113
-----------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
The accompanying Notes to Financial Statements are an integral part of this schedule.
</TABLE>
<PAGE>
Schedule of Investments (continued)
THE CATHOLIC EQUITY INCOME FUND
Principal
Short-Term Investment (0.9%) Amount Market Value
------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTE (0.9%)
-------------------------------
Wisconsin Corporate Central Credit Union $34,534 $34,534
-------------------------------------------------------------------
Total Short-Term Investment (Cost $34,534) 34,534
-------------------------------------------------------------------
-------------------------------------------------------------------
Total Investments (100.1%) (Cost $3,850,851) 3,769,147
-------------------------------------------------------------------
-------------------------------------------------------------------
Liabilities, less Other Assets (-0.1%) (1,946)
-------------------------------------------------------------------
-------------------------------------------------------------------
TOTAL NET ASSETS (100.0%) $3,767,201
-------------------------------------------------------------------
<TABLE>
<S> <C>
The Catholic Funds 18 The accompanying Notes to Financial Statements are an integral part of this schedule.
</TABLE>
<PAGE>
19 877/222-2402
Schedule of Investments
AS OF MARCH 31, 2000 (UNAUDITED)
THE CATHOLIC LARGE-CAP GROWTH FUND
<TABLE>
<CAPTION>
Common Stocks (97.6%) Shares Market Value
-----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BANKING (1.2%)
--------------
State Street Corporation 700 $ 67,813
An institutional investor services and investment management firm
---------------------------
Total 67,813
---------------------------
BUSINESS SERVICES (4.3%)
------------------------
Cintas Corporation 2,200 86,213
Designs, makes, rents and sells uniforms in the U.S. and Canada
Paychex, Inc. 3,150 164,981
Processes the payrolls of some 300,000 clients
---------------------------
Total 251,194
---------------------------
COMPUTER PRODUCTS & SERVICES (20.9%)
------------------------------------
Cisco Systems, Inc.* 7,400 572,112
The leading provider of high-performance products used to build wide area
networks
DST Systems, Inc.* 800 51,950
Provides information processing services and computer software products and
services to mutual funds, insurance companies and banks
EMC Corporation* 1,300 162,500
#1 maker of mainframe computer disk memory hardware and software
Microsoft Corporation* 3,800 403,749
Dominant developer of computer operating systems and applications software
SunGard Data Systems, Inc.* 800 30,200
A computer services and software company
---------------------------
Total 1,220,511
---------------------------
DATA PROCESSING (5.2%)
----------------------
Automatic Data Processing, Inc. 1,800 86,850
The largest payroll and tax filing processor in the world
First Data Corporation 3,400 150,450
The U.S.'s largest third-party processor of credit card transactions
Fiserv, Inc.* 1,800 66,938
Provides check clearing, funds transfer, credit card administration and data
processing outsourcing services to about 7,000 financial institutions ---------------------------
Total 304,238
---------------------------
DRUGS & MEDICAL SUPPLIES (11.7%)
--------------------------------
Cardinal Health, Inc. 800 36,700
A large U.S. wholesaler of pharmaceuticals and surgical and hospital supplies
</TABLE>
<TABLE>
<S> <C>
The accompanying Notes to Financial Statements are an integral part of this schedule.
</TABLE>
<PAGE>
Schedule of Investments (continued)
THE CATHOLIC LARGE-CAP GROWTH FUND
<TABLE>
<CAPTION>
Common Stocks (97.6%) Shares Market Value
------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Medtronic, Inc. 5,150 $ 264,903
World's #1 maker of implantable biomedical devices
Merck & Company, Inc. 1,800 111,825
#1 drug maker in the U.S.; one of the world's largest prescription drug companies
Pfizer, Inc. 5,200 190,125
Makes drugs and consumer health products
Warner-Lambert Company 800 78,000
Makes pharmaceuticals and consumer products such as Listerine, Clorets and Certs
---------------------------
Total 681,553
---------------------------
ELECTRONICS (10.5%)
------------------
Intel Corporation 2,700 356,231
Worldwide dominant microprocessor developer and manufacturer
Solectron Corporation* 6,400 256,400
Provides integrated manufacturing services to an array of technology companies
---------------------------
Total 612,631
---------------------------
ENERGY SERVICES (0.7%)
---------------------
Schlumberger Limited 500 38,250
One of the world's largest and most diversified oil services firms
---------------------------
Total 38,250
---------------------------
ENTERTAINMENT (0.7%)
-------------------
The Walt Disney Company 1,000 41,375
A media company with interests in TV and movies; well known for its theme parks
---------------------------
Total 41,375
---------------------------
FINANCIAL SERVICES (13.3%)
-------------------------
The Charles Schwab Corporation 6,100 346,556
Provides financial services; its eSchwab is the #1 online trader
The Goldman Sachs Group, Inc. 2,800 294,350
A leader in global investment banking; one of the top U.S. IPO underwriters
T. Rowe Price Associates, Inc. 3,500 138,250
Manages the proprietary T. Rowe Price Mutual Funds; provides other asset
management services for individuals and institutions
---------------------------
Total 779,156
---------------------------
</TABLE>
<TABLE>
<S> <C>
The Catholic Funds 20 The accompanying Notes to Financial Statements are an integral part of this schedule
</TABLE>
<PAGE>
21 877/222-2402
Schedule of Investments (continued)
THE CATHOLIC LARGE-CAP GROWTH FUND
<TABLE>
<CAPTION>
Common Stocks (97.6%) Shares Market Value
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
FOOD & BEVERAGE (1.1%)
----------------------
The Coca-Cola Company 1,400 $ 65,713
World's top soft-drink company
------------------------
Total 65,713
------------------------
HEALTH CARE SERVICES (1.9%)
---------------------------
IMS Health, Inc. 6,700 113,481
A leading worldwide provider of information and decision-support services to
the pharmaceutical and health care industries
------------------------
Total 113,481
------------------------
INSURANCE (4.1%)
----------------
American International Group, Inc. 2,175 238,163
One of the world's largest insurance firms with operations in 130 countries
------------------------
Total 238,163
------------------------
RETAIL (9.5%)
-------------
Costco Wholesale Corporation* 2,600 136,663
The largest wholesale club operator in the United States; also operates
internationally
Fastenal Company 500 23,938
Sells industrial and construction supplies in 600 stores
Home Depot, Inc. 4,200 270,900
Do-it-yourselfers and contractors alike look to this home center leader for its
prices, selection and unmatched service
Staples, Inc.* 6,300 126,000
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 557,501
------------------------
TELECOMMUNICATIONS (12.5%)
-------------------------
Lucent Technologies, Inc. 3,300 200,475
Leading U.S. maker of telecom equipment and software
Nokia Oyj, ADR 1,200 260,700
World's #1 mobile phone maker; headquartered in Finland
Telefonaktiebolaget LM Ericsson, ADR 2,900 272,056
A Swedish telecommunications equipment maker; a leader in mobile phone sales
------------------------
Total 733,231
------------------------
-----------------------------------------------------
Total Common Stocks (Cost $4,230,851) 5,704,810
-----------------------------------------------------
</TABLE>
*Nondividend-paying stock
<TABLE>
<S> <C>
The accompanying Notes to Financial Statements are an integral part of this schedule.
</TABLE>
<PAGE>
Schedule of Investments (continued)
THE CATHOLIC LARGE-CAP GROWTH FUND
<TABLE>
<CAPTION>
Principal
Short-Term Investments (3.8%) Amount Market Value
--------------------------------------------------------------------------------------------
<S> <C> <C>
VARIABLE RATE DEMAND NOTES (3.8%)
---------------------------------
Warner-Lambert Company $ 16,524 $ 16,524
Wisconsin Corporate Central Credit Union 158,077 158,077
Wisconsin Electric Company 46,419 46,419
---------------------------------------------------------------
Total Short-Term Investments (Cost $221,020) 221,020
---------------------------------------------------------------
---------------------------------------------------------------
Total Investments (101.4%) (Cost $4,451,871) 5,925,830
---------------------------------------------------------------
---------------------------------------------------------------
Liabilities, less Other Assets (-1.4%) (81,632)
---------------------------------------------------------------
---------------------------------------------------------------
TOTAL NET ASSETS (100.0%) $5,844,198
---------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
The Catholic Funds 22 The accompanying Notes to Financial Statements are an integral part of this schedule.
</TABLE>
<PAGE>
23 877/222-2402
Schedule of Investments
AS OF MARCH 31, 2000 (UNAUDITED)
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
<TABLE>
<CAPTION>
Common Stocks (97.2%) Shares Market Value
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE (0.8%)
----------------
Cordant Technologies, Inc. 400 $ 22,625
Global leader in solid rocket-propulsion systems and the sole maker of solid
rocket boosters for NASA's space shuttle program
The B.F. Goodrich Company 500 14,344
A leader in aerospace systems and services and in specialty chemicals; it no
longer makes tires
-------------------------------------
Total 36,969
-------------------------------------
AIR TRANSPORTATION (1.0%)
-------------------------
Delta Air Lines, Inc. 400 21,300
Provides air transportation in the U.S. and more than 30 other countries
UAL Corporation* 400 23,950
Holding company for United Air Lines, the #1 air carrier in the world
-------------------------------------
Total 45,250
-------------------------------------
AUTOS & TRUCKS (1.5%)
---------------------
Delphi Automotive Systems Corporation 209 3,344
World's largest maker of auto parts; a spinoff from GM
Ford Motor Company 800 36,750
World's largest truck maker; #2 manufacturer of cars and trucks combined
General Motors Corporation 300 24,844
World's #1 maker of cars and trucks; GMAC unit provides financing services
-------------------------------------
Total 64,938
-------------------------------------
BANKING (3.3%)
--------------
Charter One Financial, Inc. 1,400 30,240
Holding company for Charter One Bank (among the top five U.S. thrifts)
Dime Bancorp, Inc. 1,000 18,500
The parent of Dime Savings Bank of New York, The fifth-largest U.S. thrift
Fleet Boston Corporation 600 21,900
Searves customers in the Northeast Through about 1,200 branches, providing
banking, asset management and data processing
The Chase Manhattan Corporation 600 52,312
Holding company for Union Bank of California, which operates globally
UnionBanCal Corporation 800 22,050
Holding company for Union Bank of California, which operates globally
-------------------------------------
Total 145,002
-------------------------------------
</TABLE>
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
Schedule of Investments (continued)
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
<TABLE>
<CAPTION>
Common Stocks (97.2%) Shares Market Value
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CASINOS & HOTELS (0.8%)
-----------------------
Harrah's Entertainment, Inc.* 1,100 $ 20,419
World's second-largest gaming company
Mandalay Resort Group* 1,000 16,875
Owns 10 casino/hotels in Nevada, including Mandalay Bay, Circus Circus,
Excalibur and Luxor in Las Vegas
--------------------------------
Total 37,294
--------------------------------
CHEMICALS (1.7%)
----------------
Dow Chemical Company 300 34,200
World leader in the production of plastics, chemicals, hydrocarbons, herbicides
and pesticides
The Lubrizol Corporation 800 23,050
Makes fuel additives designed to control deposits and improve combustion,
with 1,100 products marketed worldwide
W.R. Grace & Company* 1,400 17,762
Focuses on catalysts, construction materials, and coatings and sealants
--------------------------------
Total 75,012
--------------------------------
COMPUTER PRODUCTS & SERVICES (7.6%)
-----------------------------------
Adaptec, Inc.* 900 34,762
Makes hardware and software that speed data transfer between computers,
peripherals and networks, dominating the market for SCSI technology
EMC Corporation* 700 87,500
#1 maker of mainframe computer disk memory hardware and software
Microsoft Corporation* 1,650 175,313
Dominant developer of computer operating systems and applications software
Opus360 Corporation, Rights 10 0
A business-to-business online employment firm
Safeguard Scientifics, Inc.* 600 42,188
Invests in young, primarily high-tech ventures, providing entrepreneurial and
managerial assistance to make the companies' stock desirable
--------------------------------
Total 339,763
--------------------------------
COMPUTERS & SOFTWARE (8.6%)
---------------------------
Adobe Systems, Inc. 500 55,656
Leader in desktop publishing software, including Photoshop, Illustrator and
PageMaker
Apple Computer, Inc.* 400 54,325
Makes such products as the Macintosh computer, the fruit-colored iMac, the
Mac OS, servers, peripherals and software
</TABLE>
<TABLE>
<S> <C>
The Catholic Funds 24 The accompanying Notes to Financial Statements are itegral part of this schedule.
</TABLE>
<PAGE>
25 877/222-2402
Schedule of Investments (continued)
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
<TABLE>
<CAPTION>
Common Stocks (97.2%) Shares Market Value
----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BMC Software, Inc.* 550 $ 27,156
Provides more than 200 software tools for corporate networked computers
Computer Associates International, Inc. 600 35,512
Offers software products including data access and network management tools
Compuware Corporation* 1,000 21,062
Makes testing, development and management software for programs running on
stand-alone mainframe computer systems and in corporate networks
Gateway, Inc.* 600 31,800
#2 direct marketer of personal computers in the U.S.
International Business Machines Corporation 700 82,600
World's top provider of computer hardware; #2 provider of software
Oracle Corporation* 900 70,256
The leading developer of database management systems software, which lets
multiple users and applications access the same data simultaneously
-------------------------
Total 378,367
-------------------------
COMMUNICATIONS (2.6%)
---------------------
Broadwing, Inc. 1,200 44,625
Formerly Cincinnati Bell; provides telecommunications services and offers long-
distance, Internet and data services to resellers and business customers over a
nearly completed network that will extend 18,000 miles
Motorola, Inc. 500 71,188
Makes cellular products, semiconductors, two-way radios, pagers, computers
and networking peripherals
-------------------------
Total 115,813
-------------------------
CONSUMER PRODUCTS (0.8%)
------------------------
Tupperware Corporation 2,100 33,206
Makes a variety of household products
-------------------------
Total 33,206
-------------------------
COSMETICS & TOILETRIES (1.6%)
-----------------------------
Avon Products, Inc. 1,400 40,687
World's largest direct seller of cosmetics and beauty-related items
Kimberly-Clark Corporation 500 28,000
World's top maker of personal paper products, including Kleenex and Scott
-------------------------
Total 68,687
-------------------------
DISTRIBUTION (0.8%)
-------------------
Tech Data Corporation* 1,100 36,163
World's #2 distributor of microcomputer products
-------------------------
Total 36,163
-------------------------
</TABLE>
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
Schedule of Investments (continued)
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
<TABLE>
<CAPTION>
Common Stocks (97.2%) Shares Market Value
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DIVERSIFIED SERVICES & MANUFACTURING (1.3%)
-------------------------------------------
Tyco International Ltd. 1,000 $ 49,875
World leader in security and fire protection
Viad Corporation 350 8,006
A leading provider of convention services; offers exhibit design and production
services
--------------------------------
Total 57,881
--------------------------------
DRUGS & MEDICAL SUPPLIES (3.6%)
-------------------------------
AmeriSource Health Corporation* 800 12,000
Distributes wholesale pharmaceuticals and health care products
Bergen Brunswig Corporation, Class A 1,200 8,100
Distributes drugs and medical-surgical supplies; provides over-the-counter
medications, beauty products and sundries
Forest Laboratories, Inc.* 600 50,700
Develops and manufactures name-brand and generic prescription and
nonprescription pharmaceutical products
MedImmune, Inc.* 200 34,825
Develops drugs for transplants and infectious diseases
Schering-Plough Corporation 1,500 55,125
Develops and markets prescription drugs, animal health products, over-the-
counter drugs, and foot care and sun care products
--------------------------------
Total 160,750
--------------------------------
ELECTRONICS (5.5%)
------------------
eMerge Interactive, Inc.* 20 602
Offers live cattle sales and auctions, as well as news and information (weather
updates, commodities reports) on the cattle industry; provides thermal infrared
imaging systems for use by veterinarians
Johnson Controls, Inc. 700 37,844
Makes automobile seats, interior systems and batteries, as well as
environmental control systems for commercial buildings
L-3 Communications Holdings, Inc.* 300 15,600
Makes sophisticated secure communications products
Sanmina Corporation* 600 40,538
A contract manufacturer of high-end electronic components
SCI Systems, Inc.* 1,000 53,813
World's #2 contract manufacturer of electronic components
Texas Instruments, Inc. 600 96,000
Makes semiconductors, analog chips, logic chips, microprocessors
--------------------------------
Total 244,397
--------------------------------
</TABLE>
<TABLE>
<S> <C>
The Catholic Funds 26 The accompanying Notes to Financial Statements are an integral part of this schedule.
</TABLE>
<PAGE>
27 877/222-2402
Schedule of Investments (continued)
THE CATHOIC DISCIPLINED CAPITAL APPRECIATION FUND
<TABLE>
<CAPTION>
Common Stocks (97.2%) Shares Market Value
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL SERVICES (10.7%)
--------------------------
Ambac Financial Group, Inc. 500 $ 25,187
A financial holding company whose subsidiaries sell financial guaranty insurance
Citigroup, Inc. 1,050 62,278
The largest financial services company (formed from the merger of Citicorp and
Travelers Group)
Deluxe Corporation 600 15,900
#1 check printer in the U.S.; a leading provider of electronic payment systems
Donaldson, Lufkin & Jenrette, Inc. 700 36,225
Does investment and merchant banking and provides funding for companies via
direct investment as well as managing and underwriting securities
Freddie Mac 500 22,094
Buys conventional residential mortgages from banks and mortgage bankers
Household International, Inc. 600 22,387
Through its subsidiaries, provides co-branded and private-label credit cards,
as well as financing for purchases
J.P. Morgan & Company 300 39,525
Offers a wide variety of commercial banking and investment services
Merrill Lynch & Company, Inc. 400 42,000
A retail/wholesale financial supermarket
Morgan Stanley Dean Witter & Company 1,000 81,563
Investment banking and retail brokerage company; leading credit card issuer
Paine Webber Group, Inc. 700 30,800
Provides retail brokerage, investment banking, municipal securities
underwriting, real estate, institutional stock and bond trading, asset
management and transaction services with about 300 offices worldwide
The Bear Stearns Companies, Inc. 840 38,325
A top U.S. securities trading, investment banking and brokerage firm
The Goldman Sachs Group, Inc. 350 36,794
A leader in global investment banking; one of the top U.S. IPO underwriters
Washington Mutual, Inc. 700 18,550
The largest U.S. thrift with more than 2,000 facilities
-----------------------------
Total 471,628
-----------------------------
FOOD & BEVERAGE (4.5%)
----------------------
General Mills, Inc. 600 21,712
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 25,819
#2 cookie and cracker maker in the U.S.; #1 supplier of Girl Scout cookies
McCormick & Company, Inc. 1,100 35,475
World's #1 spice maker; also makes specialty food products
Ralston-Ralston Purina Group 1,200 32,850
World's largest dry dog and cat food producer
</TABLE>
<TABLE>
<S> <C>
The accompanying Notes to Financial Statements are an integral part of this schedule
</TABLE>
<PAGE>
Schedule of Investments (continued)
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
<TABLE>
<CAPTION>
Common Stocks (97.2%) Shares Market Value
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Safeway, Inc.* 700 $ 31,675
A food retailer with over 1,500 stores located throughout the U.S. and Canada
SUPERVALU, Inc. 1,100 20,831
Supplies about 4,800 grocery stores nationwide with brand-name and private-
label merchandise; operates nearly 350 company-owned stores
The Quaker Oats Company 500 30,313
Produces a diverse line of food products
---------------------------
Total 198,675
---------------------------
HEALTH CARE SERVICES & SUPPLIES (4.5%)
--------------------------------------
Allergan, Inc. 700 35,000
A leading maker of eye care and skin care products with worldwide distribution
Amgen, Inc.* 1,000 61,375
Makes and markets therapeutic products for hematopoiesis (blood cell
production), inflammation, autoimmunity, neurobiology and soft-tissue repair
Bausch & Lomb, Inc. 300 15,656
#1 maker of contact lenses, lens care and eyedrops
Baxter International, Inc. 450 28,209
Produces blood transfusion systems, hemophilia treatments, home dialysis
systems and intravenous products
Genzyme Corporation* 300 15,037
Researches gene therapy treatments for diseases and medical conditions
Mallinckrodt, Inc. 1,100 31,625
Manufactures and distributes health care products, including imaging agents for
radiological, cardiological, urological and nuclear medicine applications
Wellpoint Health Networks, Inc.* 200 13,975
Serves about 32 million individuals nationally through HMOs, PPOs and specialty
networks such as pharmacy benefits, dental and mental health plans
---------------------------
Total 200,877
---------------------------
INSTRUMENTS (1.1%)
------------------
Waters Corporation* 500 47,625
Makes high-performance liquid chromatography instruments that researchers,
scientists and engineers use to separate and identify chemicals and materials
---------------------------
Total 47,625
---------------------------
INSURANCE (1.5%)
----------------
Aetna, Inc. 175 9,745
A leader in managed health care
American General Corporation 400 22,450
Provides retirement products, individual life insurance and consumer finance
</TABLE>
<TABLE>
<S> <C>
The Catholic Funds 28 The accompanying Notes to Financial Statements are an integral part of this schedule.
</TABLE>
<PAGE>
29 877/222-2402
Schedule of Investments (continued)
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
<TABLE>
<CAPTION>
Common Stocks (97.2%) Shares Market Value
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Conseco, Inc. 500 $ 5,719
Insurance holding company that owns over 30 insurance-related subsidiaries
The Hartford Financial Services Group, Inc. 500 26,375
Offers life insurance, annuities, employee benefits administration, asset
management and mutual funds
--------------------------
Total 64,289
--------------------------
MACHINERY-DIVERSIFIED (0.4%)
----------------------------
Ingersoll-Rand Company 400 17,700
Makes mining equipment, air compressors, production equipment, bearings, components,
power-generation pumps and architectural hardware
--------------------------
Total 17,700
--------------------------
MANUFACTURING (2.5%)
--------------------
American Standard Companies, Inc.* 700 25,900
A leading maker of air-conditioning systems, plumbing products and automotive
braking systems, with about 120 plants in 35 countries
Corning, Inc. 300 58,200
One of the world's top makers of fiber-optic cable, which it invented more than
20 years ago
Illinois Tool Works, Inc. 484 26,741
Makes a wide range of products used by manufacturers in the automotive,
construction, and food and beverage industries; operates in about 35 countries
--------------------------
Total 110,841
--------------------------
MEDIA (0.6%)
------------
Gannett Co., Inc. 400 28,150
The largest newspaper publisher in the U.S. (its flagship being USA TODAY); also
active in TV broadcasting
--------------------------
Total 28,150
--------------------------
OFFICE EQUIPMENT (0.9%)
-----------------------
Pitney Bowes, Inc. 900 40,219
The world's largest producer of postage meters; also makes other mailing
equipment, copiers and fax machines
--------------------------
Total 40,219
--------------------------
OIL (5.3%)
----------
Chevron Corporation 750 69,328
Runs some 8,000 gas stations and has proved reserves of 4.7 billion barrels of oil
and related products and 9.3 trillion cu. ft. of natural gas
</TABLE>
<TABLE>
<S> <C>
The accompanying Notes to Financial Statements are an integral part of this schedule.
</TABLE>
<PAGE>
Schedule of Investments (continued)
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
<TABLE>
<CAPTION>
Common Stocks (97.2%) Shares Market Value
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Conoco, Inc., Class A 1,450 $ 35,706
An integrated oil and gas company, exploring for petroleum in 15 countries
Murphy Oil Corporation 600 34,575
Explores for and produces oil and gas
Texaco, Inc. 600 32,175
Markets fuel and lubricants worldwide; operates transportation, trading and
distribution facilities
Ultramar Diamond Shamrock Corporation 1,300 32,988
#2 independent oil refining and marketing company in the U.S.
USX-Marathon Group 1,100 28,669
The 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 233,441
------------------------------------
Painting Products (0.9%)
------------------------
The Sherwin-Williams Company 1,800 39,488
The U.S.'s largest paint company
------------------------------------
Total 39,488
------------------------------------
Paper Products (0.4%)
---------------------
Georgia-Pacific Group 500 19,781
One of the leading manufacturers, distributors and wholesalers of building
products as well as forest and paper products
------------------------------------
Total 19,781
------------------------------------
Photo Equipment & Supplies (1.0%)
---------------------------------
Eastman Kodak Company 775 42,092
Makes cameras, film, and other photographic products
------------------------------------
Total 42,092
------------------------------------
Pipelines (1.4%)
----------------
Enron Corporation 800 59,900
#1 buyer and seller of natural gas in the U.S.; builds and manages worldwide
natural gas transportation, power generation, liquids and clean fuels facilities
------------------------------------
Total 59,900
------------------------------------
Printing & Publishing (4.7%)
----------------------------
Dow Jones & Company, Inc. 700 50,269
Publishes the Wall Street Journal, Barron's and SmartMoney (jointly owned with
Hearst) and supplies information electronically to more than 1.1 million
subscribers through the Dow Jones Newswires
</TABLE>
<TABLE>
<S> <C>
The Catholic Funds 30 The accompanying Notes to Financial Statements are an integral part of this schedule.
</TABLE>
<PAGE>
31 877/222-2402
Schedule of Investments (continued)
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
<TABLE>
<CAPTION>
Common Stocks (97.2%) Shares Market Value
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Electronics for Imaging, Inc.* 500 $ 30,000
Makes hardware-and-software systems that link computer networks to color
copiers and desktop laser printers, enabling users to create high-quality color
documents in their offices
Knight-Ridder, Inc. 675 34,383
Publishes newspapers including the Detroit Free Press, The Philadelphia Inquirer
and The Miami Herald
Lexmark International Group, Inc., Class A* 400 42,300
A leading maker of computer printers and related products
R.R. Donnelley & Sons Company 1,500 31,406
A large commercial printer with about 50 printing plants globally
Valassis Communications, Inc.* 600 19,988
Publishes cents-off coupons and other promotional materials printed
in freestanding, four-color inserts.
--------------------------------
Total 208,346
--------------------------------
Rental Autos & Equipment (0.3%)
-------------------------------
The Hertz Corporation, Class A 400 13,625
One of the world's top car rental businesses (Ford Motor owns 81% of Hertz)
--------------------------------
Total 13,625
--------------------------------
Retail (5.9%)
-------------
Best Buy Company, Inc.* 600 51,600
Sells home office products, consumer electronics, entertainment software and
appliances throughout the U.S.
Dollar Tree Stores, Inc.* 400 20,850
Operates more than 1,200 discount stores in 32 states
Federated Department Stores, Inc.* 800 33,400
The largest upscale department store retailer in the United States, with over 400
stores in 33 states including the prestigious Bloomingdale's and Macy's chains
Kmart Corporation* 2,100 20,344
Sells name-brand and private-label general merchandise
Kohl's Corporation* 300 30,750
Operates more than 230 family-oriented department stores
Lowe's Companies, Inc. 400 23,350
#2 U.S. home improvement retail chain
Ross Stores, Inc. 1,600 38,500
Operates a discount clothing chain; sells a variety of consumer products
The Gap, Inc. 750 37,359
Operates nearly 2,600 casual clothing stores throughout the world
--------------------------------
Total 256,153
--------------------------------
</TABLE>
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
Schedule of Investments (continued)
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
<TABLE>
<CAPTION>
Common Stock (97.2%) Shares Market Value
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS (7.6%)
-------------------------
ALLTEL Corporation 450 $ 28,378
Provides local phone service; has gained approval to provide competitive local
access service
Bell Atlantic Corporation 1,000 61,125
#2 local phone company in the U.S.; it will soon approach old Ma Bell's size
after its planned purchase of GTE
CenturyTel, Inc. 800 29,700
Sells mainstream telecommunications services
Lucent Technologies, Inc. 1,100 66,825
Leading U.S. maker of telecom equipment and software
SBC Communications, Inc. 1,100 46,200
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
Sprint Corporation 700 44,100
Provides local telephone service; distributes telecom equipment; publishes
directories
Tellabs, Inc.* 400 25,194
Produces equipment used to transmit data, video and voice signals and develops
related access and transport network systems
U S WEST, Inc. 500 36,313
Provides local phone and related services
-----------------------------
Total 337,835
-----------------------------
TRAVEL (0.2%)
-------------
Galileo International, Inc. 400 9,625
The 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 9,625
-----------------------------
UTILITIES (1.3%)
----------------
Ameren Corporation 600 18,562
Serves about 1.5 million electricity customers and 300,000 natural gas
customers in Missouri and Illinois
Public Service Enterprise Group Inc. 900 26,663
Through a subsidiary, provides electricity and natural gas in New Jersey
Unicom Corporation 300 10,950
In the energy business with a well-known subsidiary, Commonwealth Edison,
serving 3.5 million customers in Chicago and Illinois
-----------------------------
Total 56,175
-----------------------------
-----------------------------------------------------------
Total Common Stocks (Cost $3,916,665) 4,295,957
-----------------------------------------------------------
</TABLE>
*Nondividend-paying stock
<TABLE>
<S> <C>
The Catholic Funds 32 The accompanying Notes to Financial Statements are an integral part of this schedule.
</TABLE>
<PAGE>
33 877/222-2402
Schedule of Investments (continued)
THE CATHOLIC DISCIPLINED CAPITAL APPRECIATION FUND
<TABLE>
<CAPTION>
Principal
Short-Term Investments (3.4%) Amount Market Value
------------------------------------------------------------------------------------------------
<S> <C> <C>
VARIABLE RATE DEMAND NOTES (3.4%)
---------------------------------
Wisconsin Corporate Central Credit Union $ 94,304 $ 94,304
Wisconsin Electric Company 55,032 55,032
----------------------------------------------------------------
Total Short-Term Investments (Cost $149,336) 149,336
----------------------------------------------------------------
----------------------------------------------------------------
Total Investments (100.6%) (Cost $4,066,001) 4,445,293
----------------------------------------------------------------
----------------------------------------------------------------
Liabilities, less Other Assets (-0.6%) (27,844)
----------------------------------------------------------------
----------------------------------------------------------------
TOTAL NET ASSETS (100.0%) $4,417,449
----------------------------------------------------------------
</TABLE>
The accompanying Notes to Financial Statements are an integral part of this
schedule.
<PAGE>
Schedule of Investments
AS OF MARCH 31, 2000 (UNAUDITED)
THE CATHOlIC MONEY MARKET FUND
<TABLE>
<CAPTION>
Principal Amortized
Commercial Paper (100.2%) Amount Cost
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
AES Hawaii, 6.03%, 4/27/00 $ 450,000 $ 448,040
Alliance & Leicester PLC, 5.85%, 4/11/00 450,000 449,269
Barton Capital Corporation, 5.87%, 4/6/00 450,000 449,633
CBA Delaware Finance, Inc., 5.86%, 4/3/00 490,000 489,840
Computer Sciences Corporation, 5.83%, 4/11/00 475,000 474,231
Equilon Enterprises LLC, 5.83%, 4/6/00 460,000 459,628
Fidex PLC, 6.10%, 5/12/00 440,000 436,943
GTE Corporation, 6.00%, 4/6/00 415,000 414,654
Halifax PLC, 5.92%, 5/22/00 395,000 391,687
ING America Insurance Holdings, Inc., 5.89%, 5/1/00 500,000 497,546
Kittyhawk Funding Corporation, 5.87%, 4/19/00 460,000 458,650
Liberty Street Funding Corp., 5.90%, 4/10/00 450,000 449,336
Motorola Credit Corporation, 6.04%, 4/20/00 470,000 468,502
Nationwide Building Society, 5.83%, 4/5/00 450,000 449,709
Omnicom Finance Inc., 6.05%, 4/18/00 450,000 448,714
Peacock Funding Corporation, 5.86%, 4/4/00 500,000 499,756
Sigma Finance, Inc., 5.90%, 4/25/00 450,000 448,230
Stellar Funding Group, Inc., 5.95%, 4/7/00 350,000 349,653
Swiss Re Financial Products Corporation, 5.98%, 4/13/00 515,000 513,973
Total Fina SA, 6.04%, 4/12/00 450,000 449,170
USAA Capital Corporation, 5.82%, 4/17/00 500,000 498,707
Victory Receivables Corporation, 6.09%, 4/24/00 480,000 478,132
ZCM Matched Funding Corporation, 5.88%, 4/20/00 450,000 448,604
------------------------------------------------------------------------------------------------
Total Commercial Paper 10,472,607
------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Short-Term Investment (0.0%)
---------------------------------------------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTE (0.0%)
--------------------------------
<S> <C> <C>
Warner-Lambert Company 1,877 1,877
------------------------------------------------------------------------------------------------
Total Short-Term Investment 1,877
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Total Investments (100.2%) 10,474,484
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Liabilities, less Other Assets (-0.2%) (21,604)
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
TOTAL NET ASSETS (100.0%) $10,452,880
------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
The Catholic Funds 34 The accompanying Notes to Financial Statements are an integral part of this schedule.
</TABLE>
<PAGE>
35 877/222-2402
Statements of Assets & Liabilities
AS OF MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
The Catholic
The Catholic The Catholic Disciplined The Catholic
Equity Large-Cap Capital Money
Income Growth Appreciation Market
Fund Fund Fund Fund
---------------------------------------------------------------------------------------------------------------------
ASSETS
------
<S> <C> <C> <C> <C>
Investments, at cost $ 3,850,851 $ 4,451,871 $ 4,066,001 $ 10,474,484
Investments, at value $ 3,769,147 $ 5,925,830 $ 4,445,293 $ 10,474,484
Income receivable 9,714 3,346 3,946 45
Receivable for investments sold 5,351 - - -
Receivable from adviser 4,187 1,363 3,050 -
Other assets 10,301 10,362 10,257 10,916
---------------------------------------------------------------------------------------
Total Assets 3,798,700 5,940,901 4,462,546 10,485,445
---------------------------------------------------------------------------------------
LIABILITIES
-----------
Payable for investments purchased - 69,503 - -
Payable to affiliates 754 1,174 893 441
Accrued expenses and other liabilities 30,745 26,026 44,204 32,124
---------------------------------------------------------------------------------------
Total Liabilities 31,499 96,703 45,097 32,565
---------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
Net Assets $ 3,767,201 $ 5,844,198 $ 4,417,449 $ 10,452,880
--------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF
--------------------
Paid in capital $ 3,760,823 $ 4,381,609 $ 3,981,986 $ 10,452,880
Accumulated undistributed
net realized gains (losses) 88,082 (11,370) 56,171 -
Net unrealized appreciation
(depreciation) on investments (81,704) 1,473,959 379,292 -
--------------------------------------------------------------------------------------------------------------------
Net Assets $ 3,767,201 $ 5,844,198 $ 4,417,449 $ 10,452,880
--------------------------------------------------------------------------------------------------------------------
CAPITAL STOCK, $.001 PAR VALUE
------------------------------
Authorized 50,000,000 50,000,000 50,000,000 400,000,000
Issued and outstanding 378,486 429,911 396,425 10,452,880
Net asset value, redemption price and
minimum offering price per share $ 9.95 $ 13.59 $ 11.14 $ 1.00
Maximum offering price per share $ 10.36 $ 14.16 $ 11.60 $ 1.00
</TABLE>
The accompanying Notes to Financial Statements are an integral part of this
statement.
<PAGE>
Statements Of Operations
FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
The Catholic
The Catholic The Catholic Disciplined The Catholic
Equity Large-Cap Capital Money
Income Growth Appreciation Market
Fund Fund Fund Fund(a)
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
-----------------
Interest income $14,581 $4,854 $3,751 $138,297
Dividend income 33,188 8,248 23,155 -
-------------------------------------------------------------------------------------
Total Income 47,769 13,102 26,906 138,297
-------------------------------------------------------------------------------------
EXPENSES
--------
Investment advisory fees 14,202 20,798 17,131 6,995
Portfolio accounting fees 11,782 11,782 11,781 6,520
Transfer agent fees and expenses 10,028 10,029 10,028 3,086
Federal and state registration fees 8,520 8,520 8,520 3,905
Audit fees 4,848 4,848 4,848 1,283
Custody fees 4,513 4,513 4,513 978
Distribution fees 4,438 5,777 4,759 1,166
Legal fees 4,178 4,178 4,178 1,688
Printing and postage expenses 1,755 1,755 1,755 1,630
Directors' fees and expenses 1,504 1,504 1,504 524
Other 2,507 2,507 2,507 873
-------------------------------------------------------------------------------------
Total Expenses 68,275 76,211 71,524 28,648
-------------------------------------------------------------------------------------
Less waivers and reimbursements
by adviser (38,984) (35,770) (38,214) (6,995)
-------------------------------------------------------------------------------------
Net Expenses 29,291 40,441 33,310 21,653
-------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) $18,478 ($27,339) ($6,404) $116,644
-----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
-------------------------------------------
Net realized gain on investments 103,233 23,286 62,579 -
Net change in unrealized appreciation
on investments 50,470 1,513,065 493,006 -
-------------------------------------------------------------------------------------
Net Realized and Unrealized
Gain on
Investments 153,703 1,536,351 555,585 -
-------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
Change in Net Assets Resulting
from Operations $172,181 $1,509,012 $549,181 $116,644
-----------------------------------------------------------------------------------------------------------------------------
(a) Reflects operations for the period from January 7, 2000 (date of initial public investment), to March 31, 2000.
</TABLE>
<TABLE>
<S> <C>
The Catholic Funds 36 The accompanying Notes to Financial Statements are an integral part of this statement.
</TABLE>
<PAGE>
37 877/222-2402
Statements of Changes in Net Assets
FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
The Catholic
The Catholic The Catholic Disciplined The Catholic
Equity Large-Cap Capital Money
Income Growth Appreciation Market
Fund Fund Fund Fund(a)
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
----------
Net investment income (loss) $ 18,478 ($27,339) ($6,404) $ 116,644
Net realized gain on investments 103,233 23,286 62,579 -
Net change in unrealized appreciation
on investments 50,470 1,513,065 493,006 -
-------------------------------------------------------------------------------
Change in Net Assets
Resulting from
Operations 172,181 1,509,012 549,181 116,644
-------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
-----------------------------
Distributions from net
investment income (18,744) - - (116,644)
Distributions from net realized gains - - (5,309) -
-------------------------------------------------------------------------------
Change in Net Assets from
Distributions to
Shareholders (18,744) - (5,309) (116,644)
-------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
--------------------------
Proceeds from shareholder purchases 291,609 767,132 514,421 10,425,661
Net asset value of shares issued to
shareholders in payment of
distributions declared 18,213 - 5,305 116,635
Cost of shares redeemed (7,660) (2,054) (11,741) (89,416)
-------------------------------------------------------------------------------
Change in Net Assets from
Capital Share
Transactions 302,162 765,078 507,985 10,452,880
-------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Change in Net Assets 455,599 2,274,090 1,051,857 10,452,880
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Net Assets, Beginning of Period 3,311,602 3,570,108 3,365,592 -
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Net Assets, End of Period $ 3,767,201 $5,844,198 $4,417,449 $ 10,452,880
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Accumulated Undistributed
Net Investment Income - - - -
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
(a) Reflects operations for the period from January 7, 2000 (date of initial public investment), to March 31, 2000.
The accompanying Notes to Financial Statements are an integral part of this statement.
</TABLE>
<PAGE>
Notes to Financial Statements
AS OF MARCH 31, 2000 (UNAUDITED)
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 and Disciplined Capital Appreciation Funds (the "Funds") are
separate, diversified portfolios of The Catholic Funds, Inc. The Funds, 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, 1999, The Catholic Large-Cap Growth and Equity Income
Funds had federal income tax capital loss carry-forwards of $31,362 and $13,699,
respectively, expiring in the tax year ending September 30, 2007.
The Catholic Funds 38
<PAGE>
39 877/222-2402
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.
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 "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.
. 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
<PAGE>
Notes to Financial Statements (continued)
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 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 March 31, 2000, expenses of $38,984, $35,770, $38,214 and
$6,995 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. 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 March 31, 2000, were as
follows:
<TABLE>
<CAPTION>
The Catholic
Disciplined
The Catholic The Catholic Capital The Catholic
Equity Income Large-Cap Appreciation Money Market
Fund Growth Fund Fund Fund
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Shares sold 30,439 65,129 49,860 10,425,661
Shares issued to holders in
reinvestment of distributions 1,830 - 493 116,635
Shares redeemed (794) (203) (1,164) (89,416)
--------------------------------------------------------------------------------------------------
Net Increase 31,475 64,926 49,189 10,452,880
--------------------------------------------------------------------------------------------------
</TABLE>
The Catholic Funds 40
<PAGE>
41 877/222-2402
Notes to Financial Statements (continued)
5. Investment Transactions
--------------------------
The aggregate purchases and sales of securities, excluding short-term
investments, for the Funds for the period ended March 31, 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 1,260,788 935,944 656,670
SALES
-----
U.S. government 372,736 - -
Other 658,826 260,183 167,289
At March 31, 2000, gross unrealized appreciation and depreciation on
investments, based on cost for federal income tax purposes of $3,852,037,
$4,452,769 and $4,066,001, were as follows:
The Catholic
Disciplined
The Catholic The Catholic Capital
Equity Income Large-Cap Appreciation
Fund Growth Fund Fund
---------------------------------------------------------------------
Appreciation $ 262,431 $1,650,929 $ 778,959
(Depreciation) (345,321) (177,868) (399,667)
---------------------------------------------------------------------
Net Appreciation
(Depreciation)
on Investments $ (82,890) $1,473,061 $ 379,292
---------------------------------------------------------------------
<PAGE>
Financial Highlights
FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
The Catholic
Equity Income
Fund
--------------------------------------------------------------------------------------------------------
1999 (a) 2000
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 10.00 $ 9.54
--------------------------------------------------------------------------------------------------------
Net investment income (loss) 0.05 0.05
Net realized and a gain (loss) on investments (0.46) 0.41
--------------------------------------------------------------------------------
Total from Investment
Operations (0.41) 0.46
--------------------------------------------------------------------------------
Distributions from net realized gains - -
Distributions from net investment income (0.05) (0.05)
--------------------------------------------------------------------------------------------------------
Total Distributions (0.05) (0.05)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 9.54 $ 9.95
--------------------------------------------------------------------------------------------------------
Total return (b)(c) (4.06%) 4.82%
RATIOS TO AVERAGE NET ASSETS
----------------------------
Expenses (d)(e) 1.65% 1.65%
Net investment income (loss) (d)(e) 1.47% 1.04%
Expenses (d)(f) 4.78% 3.85%
Net investment income (loss) (d)(f) (1.66%) (1.16%)
Net assets, end of period $3,311,602 $3,767,201
Portfolio turnover rate (c) 18.29% 29.84%
</TABLE>
(a) Reflects operations for the period from May 3, 1999, (date of initial
public investment) to September 30, 1999.
(b) Based on net asset value, which does not reflect the sales charge.
(c) Not annualized.
(d) Computed on an annualized basis.
(e) Net of waivers and reimbursements by adviser.
(f) Gross of waivers and reimbursements by adviser.
(g) Less than one cent per share.
(h) Reflects operations for the period from January 7, 2000 (date of initial
public investment), to March 31, 2000.
<TABLE>
<S> <C>
The Catholic Funds 42 The accompanying Notes to Financial Statements are an integral part of this statement.
</TABLE>
<PAGE>
43 877/222-2402
Financial Highlights (continued)
<TABLE>
<CAPTION>
The Catholic The Catholic The Catholic
Large-Cap Disciplined Capital Money Market
Growth Fund Appreciation Fund Fund
-------------------------------------------------------------------------------------------------------
1999(a) 2000 1999(a) 2000 2000(h)
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 10.00 $ 9.78 $ 10.00 $ 9.69 $ 1.00
-------------------------------------------------------------------------------------------------------
(0.03) (0.06) 0.00(g) (0.02) 0.01
(0.19) 3.87 (0.31) 1.48 0.00
-------------------------------------------------------------------------------------------------------
(0.22) 3.81 (0.31) 1.46 0.01
-------------------------------------------------------------------------------------------------------
- - - (0.01) -
0.00 0.00 0.00 0.00 (0.01)
-------------------------------------------------------------------------------------------------------
0.00 0.00 0.00 (0.01) (0.01)
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
$9.78 $ 13.59 $ 9.69 $ 11.14 $ 1.00
-------------------------------------------------------------------------------------------------------
(2.20%) 38.96% (3.10%) 15.12% 1.20%
1.75% 1.75% 1.75% 1.75% 0.93%
(0.92%) (1.18%) (0.03%) (0.34%) 5.00%
4.70% 3.30% 4.83% 3.76% 1.23%
(3.87%) (2.73%) (3.11%) (2.35%) 4.70%
$3,570,108 $5,844,198 $3,365,592 $4,417,449 $10,452,880
7.31% 5.80% 2.44% 4.53% NA
</TABLE>
The accompanying Notes to Financial Statements are an integral part of this
statement.
<PAGE>
[Intentionally left blank]
The Catholic Funds 44
<PAGE>
A Note on Forward-Looking Statements
Except for historical information contained in this
semi-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.
[PHOTO]
<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.
405 Lexington Avenue
New York, NY 10174
The Catholic Money Market Fund
. Strong Capital Management, Inc.
100 Heritage Reserve
Menomonee Falls, WI 53051
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 Insurance Society
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 the current prospectuses.
[LOGO]
CATHOLIC FINANICAL 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.
