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<PAGE>
Growth Fund
Fixed Income Fund
Diversified Assets Fund
Money Market Fund
Global Opportunities Fund
[PHOTO]
USAllianz Funds
Semi-Annual Report
March 31, 2000
[LOGO]
<PAGE>
Table of Contents
Schedules of Portfolio Investments
Page 1
Statements of Assets and Liabilities
Page 22
Statements of Operations
Page 23
Statements of Changes in Net Assets
Page 24
Notes to Financial Statements
Page 25
Financial Highlights
Page 28
<PAGE>
USALLIANZ FUNDS
Growth Fund
Schedule of Portfolio Investments
March 31, 2000 (Unaudited)
Market
Shares Value
- ------- -----
Common Stocks (97.8%)
Aerospace/Defense (2.3%)
1,710 Cordant Technologies, Inc. $ 96,722
2,000 Honeywell International, Inc. 105,374
1,000 United Technologies Corp. 63,188
----------
265,284
----------
Banking/Financial Services (12.3%)
650 American Express Co. 96,809
2,000 Bank of America Corp. 104,875
4,500 Citigroup, Inc. 266,906
1,700 Fannie Mae 95,944
2,700 Fleet Boston Financial Corp. 98,550
2,025 Legg Mason, Inc. 87,581
810 Lehman Brothers Holdings, Inc. 78,570
2,700 Mellon Financial Corp. 79,650
1,125 Merrill Lynch & Co. 118,125
700 Providian Financial Corp. 60,638
1,800 State Street Corp. 174,375
4,050 Wells Fargo Co. 165,797
----------
1,427,820
----------
Beverages (0.9%)
990 Coca-Cola Co. 46,468
1,700 PepsiCo, Inc. 58,756
----------
105,224
----------
Biotechnology (3.9%)
2,025 Amgen, Inc.* 124,284
1,350 Chiron Corp.* 67,331
900 IDEC Pharmaceuticals Corp.* 88,425
2,700 Immunex Corp.* 171,282
----------
451,322
----------
Chemicals (0.5%)
1,305 Praxair, Inc. 54,321
----------
Computers (15.6%)
1,000 America Online, Inc.* 67,250
4,950 Cisco Systems, Inc.* 382,697
675 Computer Sciences Corp.* 53,409
1,000 FirstWorld Communications, Inc., Class B* 20,375
150 Inktomi Corp.* 29,250
2,025 International Business Machines Corp. 238,950
540 InterWorld Corp.* 30,510
4,000 Microsoft Corp.* 425,000
See accompanying notes to financial statements.
1
<PAGE>
USALLIANZ FUNDS
Growth Fund
Schedule of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
Market
Shares Value
- ------ ------
Common Stocks, continued
Computers, continued
300 Scient Corp.* $ 27,206
4,000 Sun Microsystems, Inc.* 374,813
2,250 Via Net.Works, Inc.* 59,766
600 Yahoo!, Inc.* 102,825
----------
1,812,051
----------
Electric Utilities (1.8%)
2,700 AES Corp.* 212,625
----------
Electrical Equipment (4.0%)
2,000 Applied Power, Inc. 57,000
2,625 General Electric Co. 407,367
----------
464,367
----------
Electronics (13.0%)
1,125 Altera Corp.* 100,406
3,400 Applied Materials, Inc.* 320,450
200 Broadcom Corp., Class A* 48,575
3,600 Intel Corp. 474,975
2,160 Lam Research Corp.* 97,335
900 Micron Technology, Inc.* 113,400
2,160 Novellus Systems, Inc.* 121,230
1,530 Texas Instruments, Inc. 244,800
----------
1,521,171
----------
Health Care (2.1%)
4,700 Medtronic, Inc. 241,756
----------
Household (2.7%)
1,800 Clorox Co. 58,500
1,170 Estee Lauder Companies, Inc., Class A 58,573
1,755 Gillette Co. 66,142
1,000 Johnson & Johnson 70,062
1,125 Procter & Gamble Co. 63,281
----------
316,558
----------
Insurance (0.4%)
400 American International Group, Inc. 43,800
----------
Manufacturing (0.6%)
1,350 Illinois Tool Works, Inc. 74,588
----------
Media (2.2%)
1,000 Gannett Co., Inc. 70,375
2,000 Omnicom Group 186,875
----------
257,250
----------
See accompanying notes to financial statements.
2
<PAGE>
USALLIANZ FUNDS
Growth Fund
Schedule of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
Market
Shares Value
- ------ -----
Common Stocks, continued
Oil/Gas (7.1%)
1,800 BP Amoco plc, ADR $ 95,513
2,700 Burlington Resources, Inc. 99,900
4,050 Exxon Mobil Corp. 315,140
2,300 Petroleum Geo-Services A/S, ADR* 39,819
2,025 R & B Falcon Corp.* 39,867
1,305 Royal Dutch Petroleum Co., ADR 75,119
1,700 Schlumberger Ltd. 130,050
2,000 Stolt Comex Seaway SA, ADR* 28,000
---------
823,408
---------
Paper/Forest Products (0.6%)
2,025 Mead Corp. 70,748
---------
Pharmaceuticals (4.7%)
1,800 Biochem Pharma, Inc.* 39,825
1,800 Bristol-Myers Squibb Co. 103,950
1,250 Merck & Co., Inc. 77,656
5,130 Pfizer, Inc. 187,566
1,500 Schering-Plough Corp. 55,125
900 Warner-Lambert Co. 87,750
---------
551,872
---------
Retail/Wholesale (7.4%)
3,150 Costco Wholesale Corp.* 165,572
1,800 CVS Corp. 67,613
4,500 Home Depot, Inc. 290,249
2,700 McDonald's Corp. 101,419
700 Target Corp. 52,325
3,375 Wal-Mart Stores, Inc. 187,313
---------
864,491
---------
Services (1.8%)
3,700 Automatic Data Processing, Inc. 178,525
1,000 DeVry, Inc.* 30,500
---------
209,025
---------
Telecommunications (13.4%)
3,600 ADC Telecommunications, Inc.* 193,950
4,000 AT&T Corp. 224,999
2,700 Bell Atlantic Corp. 165,038
2,700 Lucent Technologies, Inc. 164,025
700 Nextel Communications, Inc., Class A* 103,775
750 Nortel Networks Corp., ADR 94,500
See accompanying notes to financial statements.
3
<PAGE>
USALLIANZ FUNDS
Growth Fund
Schedule of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
Market
Shares Value
- ------ -----
Common Stocks, continued
Telecommunications, continued
300 Qualcomm, Inc.* $ 44,794
1,700 SBC Communications, Inc. 71,400
3,375 Sprint Corp. 212,625
1,035 US West, Inc. 75,167
3,450 Winstar Communications, Inc.* 207,000
------------
1,557,273
Tobacco (0.2%)
1,350 Philip Morris Cos., Inc. 28,519
------------
Travel/Entertainment (0.3%)
1,260 Carnival Corp. 31,264
------------
Total Common Stocks (Cost $9,794,245) -- 97.8% 11,384,737
------------
Money Market Mutual Funds (2.7%)
320,897 Valiant Sweep Account 320,897
------------
Total Money Market Mutual Funds 320,897
------------
Total Investments (Cost $10,115,142) (a) -- 100.5% 11,705,634
Liabilities in excess of other assets -- (0.5%) (64,011)
------------
Total Net Assets -- 100.0% $ 11,641,623
============
- ------------
* Non-income producing security.
ADR--American Depository Receipt.
(a) Represents cost for federal income tax purposes and differs from value
by net unrealized appreciation as follows:
Unrealized appreciation $ 2,145,484
Unrealized depreciation (554,992)
-----------
Net unrealized appreciation $ 1,590,492
===========
See accompanying notes to financial statements.
4
<PAGE>
USALLIANZ FUNDS
Fixed Income Fund
<TABLE>
<CAPTION>
Schedule of Portfolio Investments
March 31, 2000 (Unaudited)
Principal Market
Amount Value
------ -----
<S> <C>
Corporate Bonds (51.2%)
Aerospace/Defense (3.3%)
$400,000 Raytheon Co., 6.40%, 12/15/18 $ 332,024
---------
Autos (5.9%)
200,000 Delphi Automotive Systems Corp., 6.125%, 05/01/04 187,136
400,000 Ford Motor Co., 9.00%, 09/15/01 408,894
---------
596,030
---------
Banking/Financial Services (18.0%)
400,000 Associates Corp., 6.75%, 07/15/01 397,109
250,000 Bank of America Corp., 6.625%, 06/15/04 242,857
400,000 Household Finance Corp., 6.50%, 11/15/08 368,240
200,000 Inter-American Development Bank, 6.75%, 07/15/27 194,182
250,000 KFW International Finance, 7.125%, 02/15/05 249,647
400,000 Merrill Lynch & Co., 6.50%, 07/15/18 346,263
---------
1,798,298
---------
Beverages (2.4%)
250,000 Diageo Capital plc, 6.625%, 06/24/04 243,665
---------
Electric Utilities (2.2%)
250,000 Virginia Electric & Power Co., 5.73%, 11/25/08 225,246
---------
Oil/Gas (2.3%)
250,000 Conoco, Inc., 6.35%, 04/15/09 232,933
---------
Paper/Forest Products (3.6%)
400,000 Weyerhaeuser Co., 6.95%, 10/01/27 358,764
---------
Retail/Wholesale (2.5%)
250,000 Wal-Mart Stores, Inc., 7.50%, 05/15/04 253,917
---------
Telecommunications (4.6%)
250,000 AT&T Corp., 5.625%, 03/15/04 235,426
250,000 US West Capital Funding, Inc., 6.875%, 07/15/28 220,203
---------
455,629
---------
Transportation (2.5%)
250,000 CSX Corp., 7.00%, 09/15/02 246,025
---------
Travel/Entertainment (3.9%)
400,000 Walt Disney Co., 6.75%, 03/30/06 389,931
---------
Total Corporate Bonds 5,132,462
---------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
USALLIANZ FUNDS
Fixed Income Fund
<TABLE>
<CAPTION>
Schedule of Portfolio Investments
March 31, 2000 (Unaudited)
Principal Market
Amount Value
------ -----
<S> <C>
Asset Backed Securities (4.6%)
$250,000 Chemical Master Credit Card Trust I, 5.98%,
09/15/08 $ 236,218
240,000 Discover Card Master Trust I, 6.05%, 08/18/08 226,399
---------
Total Asset Backed Securities 462,617
---------
Commercial Paper (1.5%)
Health Care (1.5%)
50,000 Becton, Dickinson & Co., 6.08%,
04/11/00 149,731
---------
Total Commercial Paper 149,731
---------
Money Market Mutual Funds (4.0%)
397,726 Valiant Sweep Account 397,726
---------
Total Money Market Mutual Funds 397,726
---------
Foreign Government Bonds (2.5%)
250,000 Ontario (Province of), 7.625%, 06/22/04 253,258
---------
Total Foreign Government Bonds 253,258
---------
U.S. Government Agency Mortgages (18.0%)
Federal Home Loan Bank
425,000 5.90%, 04/12/00 424,363
---------
Federal National Mortgage Association
79,572 Pool #323866, 6.50%, 08/01/29 74,634
46,880 Pool #503050, 6.50%, 07/01/29 43,971
904,478 Pool #509681, 6.50%, 08/01/29 848,349
196,797 Pool #497829, 6.50%, 07/01/29 184,585
246,365 Pool #520069, 6.50%, 11/01/29 231,076
---------
1,382,615
---------
Total U.S. Government Agency Mortgages 1,806,978
---------
U.S. Government Agency Debt (2.3%)
Federal Home Loan Mortgage Corporation
250,000 5.00%, 01/15/04 232,741
---------
Total U.S. Government Agency Debt 232,741
---------
U.S. Treasury Bonds (10.5%)
125,000 U.S. Treasury Bond, 7.50%, 11/15/16 141,641
150,000 U.S. Treasury Bond, 6.25%, 05/15/30 158,672
575,000 U.S. Treasury Bond, 9.25%, 02/15/16 748,218
---------
Total U.S. Treasury Bonds 1,048,531
---------
U.S. Treasury Notes (4.4%)
425,000 U.S. Treasury Note, 6.50%, 02/15/10 439,875
---------
Total U.S. Treasury Notes 439,875
---------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
USALLIANZ FUNDS
Fixed Income Fund
Schedule of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Market
Value
-----
<S> <C>
Total Investments (Cost $10,032,518) (a) -- 99.0% $ 9,923,919
Other assets in excess of liabilities -- 1.0% 96,343
Total Net Assets -- 100.0% ------------
$ 10,020,262
============
</TABLE>
- ------------
(a) Represents cost for federal tax purposes and differs from
value by net unrealized depreciation as follows:
Unrealized appreciation $ 42,275
Unrealized depreciation (150,874)
----------
Net unrealized depreciation $ (108,599)
==========
7
<PAGE>
USALLIANZ FUNDS
Diversified Assets Fund
Schedule of Portfolio Investments
March 31, 2000 (Unaudited)
Market
Shares Value
- ------ -----
Common Stocks (34.4%)
Aerospace/Defense (0.8%)
532 Cordant Technologies, Inc. $ 30,091
600 Honeywell International, Inc. 31,613
300 United Technologies Corp. 18,956
----------
80,660
----------
Banking/Financial Services (4.4%)
200 American Express Co. 29,788
600 Bank of America Corp. 31,463
1,400 Citigroup, Inc. 83,037
500 Fannie Mae 28,219
980 Fleet Boston Financial Corp. 35,770
630 Legg Mason, Inc. 27,248
252 Lehman Brothers Holdings, Inc. 24,444
1,040 Mellon Financial Corp. 30,680
350 Merrill Lynch & Co. 36,750
300 Providian Financial Corp. 25,988
560 State Street Corp. 54,249
1,260 Wells Fargo Co. 51,581
----------
459,217
----------
Beverages (0.3%)
308 Coca-Cola Co. 14,457
600 PepsiCo, Inc. 20,737
----------
35,194
----------
Biotechnology (1.6%)
1,000 Amgen, Inc.* 61,374
420 Chiron Corp.* 20,948
280 IDEC Pharmaceuticals Corp.* 27,510
840 Immunex Corp.* 53,288
42 PE Corp. - Celera Genomics Group* 3,846
----------
166,966
----------
Chemicals (0.2%)
406 Praxair, Inc. 16,900
----------
Computers (5.1%)
280 America Online, Inc.* 18,830
1,540 Cisco Systems, Inc.* 119,061
210 Computer Sciences Corp.* 16,616
42 Inktomi Corp.* 8,190
630 International Business Machines Corp. 74,340
168 InterWorld Corp.* 9,492
1,200 Microsoft Corp.* 127,499
See accompanying notes to financial statements.
8
<PAGE>
USALLIANZ FUNDS
Diversified Assets Fund
Schedule of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
Market
Shares Value
- ------ -----
Common Stocks, continued
Computers, continued
1,120 Sun Microsystems, Inc.* $ 104,948
700 Via Net.Works, Inc.* 18,594
200 Yahoo!, Inc.* 34,275
-------------
531,845
-------------
Electric Utilities (0.6%)
800 AES Corp.* 63,000
-------------
Electrical Equipment (1.5%)
600 Applied Power, Inc. 17,100
910 General Electric Co. 141,221
-------------
158,321
Electronics (4.4%) -------------
350 Altera Corp.* 31,238
1,000 Applied Materials, Inc.* 94,250
56 Broadcom Corp., Class A* 13,601
1,120 Intel Corp. 147,769
672 Lam Research Corp.* 30,282
252 Micron Technology, Inc.* 31,752
672 Novellus Systems, Inc.* 37,716
476 Texas Instruments, Inc. 76,160
-------------
462,768
-------------
Health Care (0.7%)
1,400 Medtronic, Inc. 72,013
-------------
Household (1.0%)
560 Clorox Co. 18,200
400 Estee Lauder Companies, Inc., Class A 20,025
546 Gillette Co. 20,577
308 Johnson & Johnson 21,579
350 Procter & Gamble Co. 19,688
-------------
100,069
-------------
Insurance (0.2%)
210 American International Group, Inc. 22,995
-------------
Manufacturing (0.2%)
420 Illinois Tool Works, Inc. 23,205
-------------
Media (0.8%)
300 Gannett Co., Inc. 21,113
600 Omnicom Group 56,062
-------------
77,175
-------------
See accompanying notes to financial statements.
9
<PAGE>
USALLIANZ FUNDS
Diversified Assets Fund
Schedule of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
Market
Shares Value
- ------ -----
Common Stocks, continued
Oil/Gas (2.5%)
560 BP Amoco plc, ADR $ 29,715
800 Burlington Resources, Inc. 29,600
1,260 Exxon Mobil Corp. 98,044
700 Petroleum Geo-Services A/S, ADR* 12,119
630 R & B Falcon Corp.* 12,403
406 Royal Dutch Petroleum Co., ADR 23,370
560 Schlumberger Ltd. 42,840
700 Stolt Comex Seaway SA, ADR* 9,800
-------------
257,891
-------------
Paper/Forest Products (0.2%)
630 Mead Corp. 22,011
-------------
Pharmaceuticals (1.9%)
2,500 Allos Therapeutics, Inc.* 35,781
490 Biochem Pharma, Inc.* 10,841
560 Bristol-Myers Squibb Co. 32,340
350 Merck & Co., Inc. 21,744
1,596 Pfizer, Inc. 58,354
420 Schering-Plough Corp. 15,435
280 Warner-Lambert Co. 27,300
-------------
201,795
-------------
Retail/Wholesale (2.6%)
980 Costco Wholesale Corp.* 51,511
560 CVS Corp. 21,035
1,486 Home Depot, Inc. 95,847
840 McDonald's Corp. 31,553
200 Target Corp. 14,950
1,050 Wal-Mart Stores, Inc. 58,275
-------------
273,171
-------------
Services (0.6%)
1,148 Automatic Data Processing, Inc. 55,391
300 DeVry, Inc.* 9,150
-------------
64,541
-------------
Telecommunications (4.6%)
1,120 ADC Telecommunications, Inc.* 60,340
1,120 AT&T Corp. 63,000
840 Bell Atlantic Corp. 51,345
250 Intermedia Communications, Inc.* 12,078
900 Lucent Technologies, Inc. 54,675
210 Nextel Communications, Inc., Class A* 31,133
See accompanying notes to financial statements.
10
<PAGE>
USALLIANZ FUNDS
Diversified Assets Fund
Schedule of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
Shares
or
Principal Market
Amount Value
- ---------- -----
Common Stocks, continued
Telecommunications, continued
210 Nortel Networks Corp., ADR $ 26,460
600 SBC Communications, Inc. 25,200
1,050 Sprint Corp. 66,149
322 US West, Inc. 23,385
1,050 Winstar Communications, Inc.* 63,000
------------
476,765
------------
Tobacco (0.1%)
420 Philip Morris Cos., Inc. 8,873
------------
Travel/Entertainment (0.1%)
308 Carnival Corp. 7,642
------------
Total Common Stocks 3,583,017
------------
Corporate Bonds (31.6%)
Autos (4.2%)
$200,000 Delphi Automotive Systems Corp., 6.125%, 05/01/04 187,136
250,000 Ford Motor Co., 9.00%, 09/15/01 255,558
------------
442,694
------------
Banking/Financial Services (11.1%)
250,000 Associates Corp., 6.75%, 07/15/01 248,194
250,000 Bank of America Corp., 6.625%, 06/15/04 242,857
200,000 Chase Manhattan Corp., 6.375%, 04/01/08 186,179
250,000 Household Finance Corp., 6.50%, 11/15/08 230,150
250,000 KFW International Finance, 7.125%, 02/15/05 249,646
------------
1,157,026
------------
Beverages (2.3%)
250,000 Diageo Capital plc, 6.625%, 06/24/04 243,665
------------
Electric Utilities (2.2%)
250,000 Virginia Electric & Power Co., 5.73%, 11/25/08 225,246
------------
Insurance (2.3%)
250,000 Hartford Life, Inc., 6.90%, 06/15/04 243,859
------------
Oil/Gas (2.4%)
250,000 Enron Corp., 6.45%, 11/15/01 245,275
------------
Retail/Wholesale (2.4%)
250,000 Wal-Mart Stores, Inc., 7.50%, 05/15/04 253,916
------------
See accompanying notes to financial statements.
11
<PAGE>
USALLIANZ FUNDS
Diversified Assets Fund
Schedule of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
Principal Market
Amount Value
- ---------- ------
Corporate Bonds, continued
Telecommunications (2.3%)
$250,000 AT&T Corp., 5.625%, 03/15/04 $ 235,426
------------
Transportation (2.4%)
250,000 CSX Corp., 7.00%, 09/15/02 246,025
------------
Total Corporate Bonds 3,293,132
------------
Asset Backed Securities (4.0%)
250,000 Discover Card Master Trust, 6.20%, 05/16/06 242,475
180,000 Fleet Credit Card Master Trust, 6.00%, 11/15/05 174,854
------------
Total Asset Backed Securities 417,329
------------
Money Market Mutual Funds (3.7%)
390,558 Valiant Sweep Account 390,558
------------
Total Money Market Mutual Funds 390,558
------------
Foreign Government Bonds (2.4%)
250,000 Ontario (Province of), 7.625%, 06/22/04 253,258
------------
Total Foreign Government Bonds 253,258
------------
U.S. Treasury Notes (10.4%)
500,000 U.S. Treasury Note, 5.875%, 11/15/04 490,937
200,000 U.S. Treasury Note, 6.50%, 08/15/05 201,250
100,000 U.S. Treasury Note, 6.375%, 01/31/02 99,750
200,000 U.S. Treasury Note, 5.875%, 10/31/01 197,938
100,000 U.S. Treasury Note, 6.25% 02/28/02 99,469
------------
Total U.S. Treasury Notes 1,089,344
------------
U.S. Government Agency Mortgages (8.3%)
Federal Home Loan Bank
400,000 6.05%, 04/03/00 400,000
------------
Federal National Mortgage Association
497,818 Pool #447135, 6.50%, 11/01/29 466,926
------------
Total U.S. Government Agency Mortgages 866,926
------------
U.S. Government Agency Debt (5.1%)
Federal Home Loan Mortgage Corporation
300,000 5.73%, 04/11/00 299,513
250,000 5.00%, 01/15/04 232,741
------------
Total U.S. Government Agency Debt 532,254
------------
See accompanying notes to financial statements.
12
<PAGE>
USALLIANZ FUNDS
Diversified Assets Fund
Schedule of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
Market
Value
------
Total Investments (Cost $10,020,905) (a) -- 99.9% $10,425,818
Other assets in excess of liabilities -- 0.1% 7,512
-----------
Total Net Assets -- 100.0% $10,433,330
===========
- ------------
* Non-income producing security.
ADR--American Depository Receipt.
(a) Represents cost for federal income tax purposes and differs from value
by net unrealized appreciation as follows:
Unrealized appreciation $ 669,478
Unrealized depreciation (264,565)
---------
Net unrealized appreciation $ 404,913
=========
See accompanying notes to financial statements.
13
<PAGE>
USALLIANZ FUNDS
Money Market Fund
Schedule of portfolio Investments
March 31, 2000 (unaudited)
Principal Market
Amount Value
- --------- ------
Commercial Paper (92.5%)
Banking/Financial Services (22.1%)
$400,000 Henkel, Inc., 6.08%, 05/30/00 $ 396,014
400,000 Preferred Receivables Funding, 5.96%, 04/20/00 398,742
250,000 SLM Holding Corp., 5.87%, 04/20/00 249,225
400,000 Union Bank of Switzerland, 5.82%, 04/06/00 399,677
400,000 USAA Capital Corp., 5.76%, 04/20/00 398,784
400,000 Westpac Capital Corp., 5.85%, 04/06/00 399,675
-----------
2,242,117
Beverages (7.8%)
400,000 Brown-Forman Corp., 5.81%, 04/10/00 399,419
400,000 Diageo Capital plc, 5.79%, 04/17/00 398,971
-----------
798,390
-----------
Building (3.9%)
400,000 Ciesco LP, 5.83%, 04/11/00 399,352
-----------
Energy (3.9%)
400,000 Equitable Resources, Inc., 5.95%, 04/18/00 398,876
-----------
Food (3.9%)
400,000 H.J. Heinz Co., 6.03%, 05/16/00 396,985
-----------
Health Care (3.9%)
400,000 Becton, Dickinson & Co., 6.05%, 05/11/00 397,311
-----------
Household (11.8%)
400,000 Colgate-Palmolive Co., 6.00%, 04/28/00 398,200
400,000 Gillette Co., 6.01%, 04/27/00 398,264
400,000 Procter & Gamble Co., 5.80%, 04/20/00 398,775
-----------
1,195,239
-----------
Insurance (3.9%)
400,000 St. Paul Companies, Inc., 6.02%, 05/01/00 397,993
-----------
Manufacturing (3.9%)
400,000 Snap-on, Inc., 6.06%, 04/17/00 398,923
-----------
Media (7.8%)
400,000 McGraw-Hill Cos., Inc., 6.00%, 04/28/00 398,200
400,000 Washington Post Co., 5.82%, 04/12/00 399,289
-----------
797,489
-----------
Retail/Wholesale (7.9%)
400,000 Gap, Inc., 5.83%, 04/18/00 398,899
See accompanying notes to financial statements.
14
<PAGE>
USALLIANZ FUNDS
Money Market Fund
Schedule Of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
Principal Market
Amount Value
- ------- -----
Commercial Paper, continued
Retail, continued
$400,000 NIKE, Inc., 5.87%, 04/03/00 $ 399,869
-----------
798,768
-----------
Services (7.8%)
400,000 Shell Deer Park Cogeneration, 5.85%, 04/04/00 399,805
400,000 United Postal Service, 6.10%, 06/01/00 395,866
-----------
795,671
-----------
Telecommunications (3.9%)
400,000 Bell Atlantic Corp., 5.84%, 04/11/00 399,351
-----------
Total Commercial Paper 9,416,465
-----------
Corporate Bonds (3.9%)
Banking/Financial Services (3.9%)
400,000 Associates Credit Corp., 5.60%, 01/15/01 397,249
-----------
Total Corporate Bonds 397,249
-----------
Money Market Mutual Funds (4.0%)
412,084 Valiant Sweep Account 412,084
-----------
Total Money Market Mutual Funds 412,084
-----------
Total Investments (Cost $10,225,798) (a) -- 100.4% 10,225,798
Liabilities in excess of other assets -- (0.4%) (42,478)
-----------
Total Net Assets -- 100.0% $10,183,320
===========
- ------------
(a) Also represents cost for federal tax purposes.
See accompanying notes to financial statements.
15
<PAGE>
USALLIANZ FUNDS
Global Opportunities Fund
Schedule of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
Market
Shares Value
- ------ -----
Common Stocks (97.7%)
Canada (1.4%)
Telecommunications (1.4%)
1,320 Nortel Networks Corp. $ 165,565
-------
Finland (3.8%)
Telecommunications (3.8%)
1,430 Nokia Oyj 302,401
2,200 Sonera Oyj 150,095
-------
452,496
-------
France (7.8%)
Banking/Financial Services (1.2%)
1,760 Banque Nationale de Paris 138,938
-------
Building (0.4%)
550 Lafarge SA 46,892
------
Electronics (1.9%)
1,210 STMicroelectronics NV 222,301
-------
Insurance (0.9%)
770 Axa 109,119
-------
Oil/Gas (2.3%)
1,870 Total Fina Elf SA 280,034
-------
Services (1.1%)
1,100 Vivendi 126,834
-------
924,118
-------
Germany (2.1%)
Computers (1.0%)
220 SAP AG 123,360
-------
Electronics (1.1%)
2,200 Infineon Technologies AG, ADR* 126,363
-------
249,723
-------
Hong Kong (1.6%)
Building (0.8%)
88,000 New World Infrastructure, Ltd.* 94,934
------
Real Estate Assets (0.8%)
6,600 Cheung Kong (Holdings), Ltd. 98,747
------
193,681
-------
See accompanying notes to financial statements.
16
<PAGE>
USALLIANZ FUNDS
Global Opportunities Fund
Schedule of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
Market
Shares Value
- ------ -----
Common Stocks, continued
Japan (9.0%)
Banking/Financial Services (1.4%)
11,000 The Asahi Bank, Ltd. $ 61,668
7,500 The Bank of Tokyo-Mitsubishi, Ltd. 107,274
-------
168,942
-------
Chemicals (1.6%)
3,200 Shin-Etsu Chemical Co. 194,374
-------
Computers (0.8%)
3,000 Fujitsu, Ltd. 92,137
-------
Electronics (3.5%)
8,400 Minebea Co., Ltd. 111,792
1,560 Sony Corp. 220,542
500 Tokyo Electron, Ltd. 75,562
-------
407,896
-------
Telecommunications (1.7%)
5 NTT Mobile Communications, Inc. 205,236
-------
1,068,585
---------
Netherlands (3.8%)
Banking/Financial Services (1.4%)
2,970 Fortis (NL) NV 76,021
1,650 ING Groep NV 89,363
------
165,384
-------
Computers (1.0%)
1,430 Equant NV* 118,634
-------
Food (0.5%)
1,100 Unilever NV 54,260
------
Telecommunications (0.9%)
660 Koninklijke (Royal) Philips Electronics NV 110,898
-------
449,176
-------
Singapore (0.6%)
Media (0.6%)
4,510 Singapore Press Holdings 71,980
------
South Korea (1.7%)
Electronics (1.7%)
1,100 Samsung Electronics 196,295
-------
See accompanying notes to financial statements.
17
<PAGE>
USALLIANZ FUNDS
Global Opportunities Fund
Schedule of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
Market
Shares Value
- ------ -----
Common Stocks, continued
Spain (1.8%)
Telecommunications (1.8%)
8,424 Telefonica SA* $ 212,803
-------
Switzerland (1.2%)
Pharmaceuticals (1.2%)
13 Roche Holding AG 141,204
-------
United Kingdom (11.3%)
Aerospace/Defense (0.8%)
16,500 British Aerospace plc 92,655
------
Banking/Financial Services (0.8%)
8,800 Lloyds TSB Group plc 93,146
------
Electric Utilities (0.6%)
9,460 Scottish Power plc 76,741
------
Food (0.8%)
27,500 Tesco plc 92,129
------
Insurance (0.6%)
6,380 Allied Zurich plc 69,770
------
Manufacturing (0.9%)
23,100 Invensys plc 103,000
-------
Pharmaceuticals (0.8%)
3,190 Glaxo Wellcome plc 91,348
------
Retail/Wholesale (0.4%)
11,168 New Dixons Group plc 51,398
------
Services (0.6%)
11,000 Hays plc 71,860
------
Telecommunications (5.0%)
6,600 British Telecom plc 123,505
2,200 Colt Telecom Group plc* 106,694
64,861 Vodafone AirTouch plc 360,603
-------
590,802
-------
1,332,849
---------
See accompanying notes to financial statements.
18
<PAGE>
USALLIANZ FUNDS
Global Opportunities Fund
Schedule of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
Market
Shares Value
- ------ -----
Common Stocks, continued
United States (51.6%)
Aerospace/Defense (1.8%)
1,650 Cordant Technologies, Inc. $ 93,328
2,200 Honeywell International, Inc. 115,913
-------
209,241
-------
Banking/Financial Services (4.0%)
3,630 Citigroup, Inc. 215,305
990 Merrill Lynch & Co. 103,950
3,850 Wells Fargo Co. 157,609
-------
476,864
-------
Beverages (0.5%)
1,650 PepsiCo, Inc. 57,028
------
Biotechnology (1.1%)
2,200 Amgen, Inc.* 135,025
-------
Computers (10.7%)
4,400 Cisco Systems, Inc.* 340,175
1,320 International Business Machines Corp. 155,760
2,420 Microsoft Corp.* 257,125
3,300 Sun Microsystems, Inc.* 309,220
880 TDK Corp., ADR 115,720
550 Yahoo!, Inc.* 94,256
------
1,272,256
---------
Electric Utilities (1.5%)
2,200 AES Corp.* 173,250
-------
Electrical Equipment (2.2%)
1,650 General Electric Co. 256,059
-------
Electronics (7.0%)
1,540 Applied Materials, Inc.* 145,145
1,540 Intel Corp. 203,184
2,200 Novellus Systems, Inc.* 123,475
2,200 Texas Instruments, Inc. 352,000
-------
823,804
-------
Health Care (1.2%)
2,750 Medtronic, Inc. 141,453
-------
See accompanying notes to financial statements.
19
<PAGE>
USALLIANZ FUNDS
Global Opportunities Fund
Schedule of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
Market
Shares Value
- ------ -----
Common Stocks, continued
United States, continued
Media (1.3%)
1,650 Omnicom Group $ 154,172
---------
Oil/Gas (2.4%)
2,200 Burlington Resources, Inc. 81,400
1,430 Exxon Mobil Corp. 111,272
1,650 Royal Dutch Petroleum Co., ADR 94,978
------
287,650
-------
Pharmaceuticals (2.4%)
2,860 Schering-Plough Corp. 105,105
1,870 Warner-Lambert Co. 182,325
-------
287,430
-------
Retail/Wholesale (5.5%)
3,850 Costco Wholesale Corp.* 202,366
3,850 Home Depot, Inc. 248,324
2,090 McDonald's Corp. 78,506
2,200 Wal-Mart Stores, Inc. 122,100
-------
651,296
-------
Services (1.6%)
3,850 Automatic Data Processing, Inc. 185,763
-------
Telecommunications (8.4%)
3,300 ADC Telecommunications, Inc.* 177,787
2,640 AT&T Corp. 148,500
2,090 Bell Atlantic Corp. 127,751
1,650 Ericsson (LM), ADR 154,791
1,650 MCI Worldcom, Inc.* 74,766
2,640 Sprint Corp. 166,320
2,475 Winstar Communications, Inc.* 148,500
-------
998,415
-------
6,109,706
---------
Total Common Stocks (Cost $10,001,153) -- 97.7% 11,568,181
----------
Money Market Mutual Funds (1.6%)
195,017 Valiant Sweep Account 195,017
-------
Total Money Market Mutual Funds 195,017
-------
Total Investments (Cost $10,196,170) (a) -- 99.3% 11,763,198
Other assets in excess of liabilities -- 0.7% 79,134
------
Total Net Assets -- 100.0% $11,842,332
===========
See accompanying notes to financial statements.
20
<PAGE>
USALLIANZ FUNDS
Global Opportunities Fund
Schedule of Portfolio Investments, Continued
March 31, 2000 (Unaudited)
- ------------
* Non-income producing security.
ADR-American Depository Receipt.
(a) Represents cost for federal tax purposes and differs from value by net
unrealized appreciation as follows:
Unrealized appreciation $1,967,584
Unrealized depreciation (400,556)
---------
Net unrealized appreciation $1,567,028
==========
See accompanying notes to financial statements.
21
<PAGE>
USALLIANZ FUNDS
Statements of Assets and Liabilities
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Fixed Diversified Money Global
Growth Income Assets Market Opportunities
Fund Fund Fund Fund Fund
------------ ----------- ----------- ----------- -------------
ASSETS
<S> <C> <C> <C> <C> <C>
Investments, at value (cost $10,115,142, $10,032,518,
$10,020,905, $10,225,798, $10,196,170) $ 11,705,634 $ 9,923,919 $10,425,818 $10,225,798 $11,763,198
Cash - - - - 56,224
Dividends and interest receivable 7,802 123,899 96,569 6,396 12,222
Receivable for investments sold 9,813 - 7,851 - 76
Receivable from Investment Adviser 29,582 31,365 29,780 22,836 23,909
Other assets 11,969 14,240 13,315 5,289 14,925
------------ ----------- ----------- ----------- -----------
Total Assets 11,764,800 10,093,423 10,573,333 10,260,319 11,870,554
------------ ----------- ----------- ----------- -----------
LIABILITIES
Income payable - 49,737 94,931 45,717 -
Securities purchased payable 97,736 - 20,025 - -
Administration fees payable 21,766 17,639 21,029 27,615 24,387
Custody fees payable 3,584 3,316 3,561 3,561 3,808
Distribution fees payable 27 23 25 10 27
Other accrued liabilities 64 2,446 432 96 -
------------ ----------- ----------- ----------- -----------
Total Liabilities 123,177 73,161 140,003 76,999 28,222
------------ ----------- ----------- ----------- -----------
NET ASSETS $ 11,641,623 $10,020,262 $10,433,330 $10,183,320 $11,842,332
============ =========== =========== =========== ===========
NET ASSETS CONSIST OF
Capital $ 10,020,200 $10,201,001 $10,073,097 $10,183,360 $10,020,000
Accumulated undistributed net investment income/(loss) (5,800) - 111 - (28,691)
Accumulated net realized gain/(loss) 36,731 (72,140) (44,791) (40) 283,946
Net unrealized appreciation/(depreciation) on investments 1,590,492 (108,599) 404,913 - 1,567,077
------------ ----------- ----------- ----------- -----------
TOTAL NET ASSETS $ 11,641,623 $10,020,262 $10,433,330 $10,183,320 $11,842,332
============ =========== =========== =========== ===========
Shares of beneficial interest outstanding
(unlimited shares authorized)
A Shares 500 509 502 10,153 500
B Shares 500 507 502 - 500
Y Shares 1,001,018 1,019,594 1,006,222 10,169,029 1,001,000
Net Asset Value
A Shares - redemption price per share $ 11.61 $ 9.82 $ 10.36 $ 1.00 $ 11.81
B Shares - offering price per share* 11.57 9.82 10.36 - 11.77
Y Shares 11.62 9.82 10.36 1.00 11.82
Maximum Sales Charge - A Shares 5.75% 4.75% 5.75% - 5.75%
Maximum Offering Price
(100%/(100% - Maximum sales charge)
of net asset value adjusted to nearest cent)
per share (A Shares) $ 12.31 $ 10.31 $ 10.99 $ 1.00 $ 12.53
</TABLE>
- ---------
* Redemption price per share varies by length of time shares are held.
22 See accompanying notes to financial statements.
<PAGE>
USALLIANZ FUNDS
Statements of Operations
For the Period Ended March 31, 2000 (Unaudited) (a)
<TABLE>
<CAPTION>
Fixed Diversified Money Global
Growth Income Assets Market Opportunities
Fund Fund Fund Fund Fund
---------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends (Net of foreign withholding $ 37,567 $ 8,515 $ 15,977 $ 6,420 $ 29,225
tax of $0, $0, $0, $0, $1,830)
Interest 565 253,317 170,347 227,731 11,221
---------- ---------- ---------- ---------- -----------
Total Investment Income 38,132 261,832 186,324 234,151 40,446
---------- ---------- ---------- ---------- -----------
Expenses:
Investment Advisory fees 31,592 19,312 21,956 13,923 40,942
Administration fees 70,829 66,702 70,092 62,525 73,450
Distribution fees
Class A 6 4 5 10 6
Class B 21 19 20 - 21
Custodian fees 3,584 3,316 3,561 3,561 3,808
Fund Accounting fees 1,334 3,961 2,950 1,365 1,760
State Registration fees 20,905 20,403 20,712 17,054 19,915
Legal fees 6,032 4,959 5,331 5,657 5,770
Offering fees 5,224 4,611 4,847 5,259 5,050
Audit fees 2,124 2,075 2,106 2,327 2,024
Printing fees 845 694 746 792 808
Other expenses 8,931 8,158 8,571 9,121 8,516
---------- ---------- ---------- ---------- -----------
Total expenses before waivers/reimbursements 151,427 134,214 140,897 121,594 162,070
Less expenses waived/reimbursed (107,756) (103,107) (102,722) (96,522) (92,933)
---------- ---------- ---------- ---------- -----------
Total Net Expenses 43,671 31,107 38,175 25,072 69,137
---------- ---------- ---------- ---------- -----------
Net Investment Income (5,539) 230,725 148,149 209,079 (28,691)
--------- ---------- ---------- ---------- -----------
Net realized gain/(loss) on investments 36,731 (72,140) (44,791) (40) 283,946
Net change in unrealized appreciation/(depreciation)
on investments 1,590,492 (108,599) 404,913 - 1,567,077
---------- ---------- ---------- ---------- -----------
Net realized and unrealized gain/(loss) on investments 1,627,223 (180,739) 360,122 (40) 1,851,023
---------- ---------- ---------- ---------- -----------
Net increase/(decrease) in net assets resulting
from operations $1,621,684 $ 49,986 $ 508,271 $ 209,039 $ 1,822,332
========== ========== ========== ========== ===========
</TABLE>
- -----------
(a) From commencement of operations on November 9, 1999 to March 31, 2000.
See accompanying notes to financial statements. 23
<PAGE>
USALLIANZ FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Fixed Diversified
Growth Income Assets
Fund Fund Fund
------------------ ----------------- ------------------
Period Ended Period Ended Period Ended
March 31, 2000 (a) March 31, 2000 (a) March 31, 2000 (a)
(Unaudited) (Unaudited) (Unaudited)
------------------ ----------------- ------------------
<S> <C> <C> <C>
Operations:
Net investment income $ (5,539) $ 230,725 $ 148,149
Net realized gain/(loss) on investments 36,731 (72,140) (44,791)
Net change in unrealized
appreciation/(depreciation) on
investments 1,590,492 (108,599) 404,913
------------ ------------- ---------------
Net increase/(decrease) in net assets
resulting from operations 1,621,684 49,986 508,271
------------ ------------- ---------------
Distributions to Shareholders From:
Net investment income
Class A - (111) (69)
Class B - (95) (54)
Class Y (261) (230,519) (147,915)
------------ ------------- ---------------
Net decrease in net assets resulting
from distributions (261) (230,725) (148,038)
------------ ------------- ---------------
Shares of Beneficial Interest:
Proceeds from shares issued
Class A 5,000 5,000 5,000
Class B 5,000 5,000 5,000
Class Y 10,010,000 10,010,000 10,010,000
------------ ------------- ---------------
10,020,000 10,020,000 10,020,000
------------ ------------- ---------------
Proceeds from dividends reinvested
Class A - 87 25
Class B - 75 19
Class Y 200 180,839 53,053
------------ ------------- ---------------
200 181,001 53,097
------------ ------------- ---------------
Net increase in net assets from shares
of beneficial interest 10,020,200 10,201,001 10,073,097
------------ ------------- ---------------
Total increase in net assets 11,641,623 10,020,262 10,433,330
Net Assets
Beginning of period - - -
------------ ------------- ---------------
End of period $ 11,641,623 $ 10,020,262 $ 10,433,330
============ ============= ===============
<CAPTION>
Money Global
Market Opportunities
Fund Fund
------------------ -------------------
Period Ended Period Ended
March 31, 2000 (a) March 31, 2000 (a)
(Unaudited) (Unaudited)
------------------ -------------------
<S> <C> <C>
Operations:
Net investment income $ 209,079 $ (28,691)
Net realized gain/(loss) on investments (40) 283,946
Net change in unrealized
appreciation/(depreciation) on
investments - 1,567,077
------------ --------------
Net increase/(decrease) in net assets
resulting from operations 209,039 1,822,332
------------ --------------
Distributions to Shareholders From:
Net investment income
Class A (199) -
Class B - -
Class Y (208,880) -
------------ --------------
Net decrease in net assets resulting
from distributions (209,079) -
------------ ---------------
Shares of Beneficial Interest:
Proceeds from shares issued
Class A 10,000 5,000
Class B - 5,000
Class Y 10,010,000 10,010,000
------------ --------------
10,020,000 10,020,000
------------ --------------
Proceeds from dividends reinvested
Class A 156 -
Class B - -
Class Y 163,204 -
----------- --------------
163,360 -
------------ --------------
Net increase in net assets from shares
of beneficial interest 10,183,360 10,020,000
------------ --------------
Total increase in net assets 10,183,320 11,842,332
Net Assets
Beginning of period - -
------------ ---------------
End of period $ 10,183,320 $ 11,842,332
============ ===============
</TABLE>
- -----------
(a) From commencement of operations on November 9, 1999 to March 31, 2000.
24 See accompanying notes to financial statements.
<PAGE>
USALLIANZ FUNDS
Notes to Financial Statements
March 31, 2000 (Unaudited)
1. Organization. The USAllianz Funds (the "Trust") was organized as a Delaware
business trust on July 13, 1999. The Trust is a diversified open-end management
investment company registered under the Investment Company Act of 1940, as
amended, (the "1940 Act"). The Trust consists of five series, the Growth Fund,
the Fixed Income Fund, the Diversified Assets Fund, the Money Market Fund and
the Global Opportunities Fund (collectively the "Funds" and individually a
"Fund"). The Trust is authorized to issue an unlimited number of shares.
Currently, the Funds are authorized to issue three classes of shares, Class Y
Shares, Class A Shares, and Class B shares (except for the Money Market Fund
which currently does not offer Class B Shares).
2. Significant Accounting Policies. The preparation of financial statements in
conformity with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual amounts could differ from those estimates.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements.
Security Valuation
Portfolio securities listed on a national exchange or exchanges for which market
quotations are available are valued at their last quoted sale price on each
business day. If there is no such reported sale, the most recently quoted bid
price is used for long securities and the ask price is used for securities sold
short. Debt obligations with sixty days or less remaining until maturity are
valued at their amortized cost. Unlisted securities for which market quotations
are readily available are valued at the most recent quoted bid price for long
securities and the ask price is used for securities sold short. Other assets and
securities for which no quotation is readily available are valued at fair value
as determined in good faith by the Trustees or persons acting on the behalf of
the Trustees. These persons may use available market quotations, employ
electronic data processing techniques and/or a matrix system to determine
valuations.
Security Transactions and Related Investment Income
Security transactions are accounted for on the trade date, with realized gain or
loss on the sale of investments determined by using the identified cost method.
Corporate actions (including cash dividends) are recorded on the ex-date or
after the ex-date as the Fund becomes aware of such action, net of any non-
refundable tax withholdings. Interest income (including amortization of premium
and accretion of discount) is recorded as earned.
Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend
date. Distributions are made on a tax basis which may differ from generally
accepted accounting principles. These differences are primarily due to differing
treatments for redemptions-in-kind and wash sales for book and tax purposes.
Permanent book and tax basis differences will result in reclassifications to
capital accounts.
Dividends and distributions to shareholders which exceed net investment income
and net realized capital gains for financial reporting purposes but not for tax
purposes are reported as dividends in excess of net investment income or
distributions in excess of net realized gains. To the extent they exceed net
investment income and net realized gains for tax purposes, they are reported as
distributions of capital.
Organizational Expenses
All costs incurred by the Trust in connection with the organization of the Fund
and the initial public offering of shares of the Funds, principally professional
fees and printing, were paid on behalf of the Trust by Allianz of America, Inc.
25
<PAGE>
USALLIANZ FUNDS
Notes to Financial Statements, Continued
March 31, 2000 (Unaudited)
3. Management, Administration, Fund Accounting Agreements. Allianz of America,
Inc., (the "Investment Adviser") provides advisory and management services to
the Funds under separate management contracts. The Investment Adviser is
entitled to a fee, computed daily and paid monthly, at the annual rate of 0.75%
for the Growth Fund, 0.50% for the Fixed Income Fund, 0.55% for the Diversified
Assets Fund, 0.35% for the Money Market Fund and 0.95% for the Global
Opportunities Fund of each Fund's average net assets. The Investment Adviser has
voluntarily agreed to waive fees and reimburse the Funds to limit the annual
expenses to 1.03% for the Growth Fund, 0.80% for the Fixed Income Fund, 0.95%
for the Diversified Assets Fund, 0.63% for the Money Market Fund and 1.60% for
the Global Opportunities Fund of each Fund's average net assets. This includes
the management fee but excludes the Distribution fees. For the period ended
March 31, 2000, the amount of such waivers totaled $31,592, $19,312, $21,956,
$13,923 and $40,942 for the Growth Fund, the Fixed Income Fund, the Diversified
Assets Fund, the Money Market Fund and the Global Opportunities Fund,
respectively. For the period ended March 31, 2000, the amount of such
reimbursements totaled $76,164, $83,795, $80,766, $82,599 and $51,991 for the
Growth Fund, the Fixed Income Fund, the Diversified Assets Fund, the Money
Market Fund and the Global Opportunities Fund, respectively.
BISYS Fund Services Ohio, Inc. ("BISYS" or the "Administrator"), a wholly-owned
subsidiary of The BISYS Group, Inc., serves as the Trust's administrator,
transfer agent, fund accountant and assists the Trust in all aspects of its
administration and operation. The Administrator is entitled to a fee, computed
daily and paid monthly, and is reimbursed for certain out-of pocket expenses
incurred. The amount of such payments totaled $70,829, $66,702, $70,092, $62,525
and $73,450 for the Growth Fund, the Fixed Income Fund, the Diversified Assets
Fund, the Money Market Fund and the Global Opportunities Fund, respectively.
The Trust has adopted a distribution and service plan in conformance with Rule
12b-1. Pursuant to this plan, the Fund is authorized to pay certain fees for the
sale and distribution of its shares and services provided to its shareholders.
Class A shares are subject to an annual distribution and servicing rate not to
exceed 0.25% of the Fund's average daily net assets. Class B shares are subject
to an annual distribution and servicing rate not to exceed 1.00% of the Fund's
average daily net assets. For the period ending March 31, 2000, the amount of
such payments totaled $27, $23, $25, $10 and $27 for the Growth Fund, the Fixed
Income Fund, the Diversified Assets Fund, the Money Market Fund and the Global
Opportunities Fund, respectively.
5. Security Purchases and Sales. For the period ended March 31, 2000, purchases
and sales of securities (excluding short-term securities) were as follows:
Purchases Sales
------------------ ----------------
Growth Fund $11,311,653 $1,554,139
Fixed Income Fund 1,324,061 1,750,384
Diversified Assets Fund 2,098,708 1,963,894
Global Opportunities Fund 5,765,247 5,937,274
6. Trustee Fees. The unaffiliated Trustees of the Trust each receive a $2,000
meeting fee for each meeting of the Trustees of the Trust attended and receive
reimbursement of out-of-pocket expenses incurred in connection with attendance
at such meetings.
26
<PAGE>
USALLIANZ FUNDS
Notes to Financial Statements, Continued
March 31, 2000 (Unaudited)
7. Sales and Redemptions of Shares. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
Period Ended March 31, 2000 (a)
--------------------------------------------------------------
Fixed Diversified Money Global
Growth Income Assets Market Opportunities
Fund Fund Fund Fund Fund
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Shares Sold
Class A 500 500 500 10,000 500
Class B 500 500 500 - 500
Class Y 1,001,000 1,001,000 1,001,000 10,010,000 1,001,000
--------------------------------------------------------------
1,002,000 1,002,000 1,002,000 10,020,000 10,002,000
--------------------------------------------------------------
Issued upon reinvestment of distributions
Class A - 9 2 153 -
Class B - 7 2 - -
Class Y 18 18,594 5,222 159,029 -
--------------------------------------------------------------
18 18,610 5,226 159,182 -
--------------------------------------------------------------
Net increase
Class A 500 509 502 10,153 500
Class B 500 507 502 - 500
Class Y 1,001,018 1,019,594 1,006,222 10,169,029 1,001,000
--------------------------------------------------------------
1,002,018 1,020,610 1,007,226 10,179,182 1,002,000
==============================================================
</TABLE>
(a) From commencement of operations on November 9, 1999 to March 31, 2000.
27
<PAGE>
USALLIANZ FUNDS
<TABLE>
<CAPTION>
Financial Highlights
Growth Fund Growth Fund Growth Fund
Class A Class B Class Y
--------------------- --------------------- ---------------------
Period Ended Period Ended Period Ended
March 31, 2000 (a) March 31, 2000 (a) March 31, 2000 (a)
(Unaudited) (Unaudited) (Unaudited)
--------------------- --------------------- ---------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.00 $ 10.00 $ 10.00
------------ ------------- --------------
Income from Investment Operations:
Net investment loss (0.01) (0.01) (0.01)
Net realized and unrealized gain on investments 1.62 1.58 1.63
------------ ------------- --------------
Total from Investment Operations 1.61 1.57 1.62
------------ ------------- --------------
Distributions to shareholders from:
Net investment income - - - *
Net realized gain on investments - - -
------------ ------------- --------------
Total Distributions to Shareholders - - -
------------ ------------- --------------
Net Asset Value, End of Period $ 11.61 $ 11.57 $ 11.62
============ ============= ==============
Total Return (excludes sales charge) 16.10% ** 15.70% ** 16.20% **
Ratios to Average Net Assets/Supplemental Data:
Net Assets, end of period (000) $ 6 $ 6 $ 11,630
Net investment loss before waivers/reimbursements (2.89%)*** (3.65%)*** (2.67%)***
Net investment loss net of waivers/reimbursements (0.38%)*** (1.14%)*** (0.13%)***
Expenses before waivers/reimbursements 3.79% *** 4.50% *** 3.57% ***
Expenses net of waivers/reimbursements 1.28% *** 2.03% *** 1.03% ***
Portfolio turnover rate 14.88% 14.88% 14.88%
</TABLE>
<TABLE>
<CAPTION>
Fixed Income Fixed Income Fixed Income
Fund Fund Fund
Class A Class B Class Y
------------------- -------------------- -------------------
Period Ended Period Ended Period Ended
March 31, 2000 (a) March 31, 2000 (a) March 31, 2000 (a)
(Unaudited) (Unaudited) (Unaudited)
------------------- -------------------- -------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.00 $ 10.00 $ 10.00
-------------- -------------- --------------
Income from Investment Operations:
Net investment income 0.22 0.19 0.23
Net realized and unrealized loss on investments (0.18) (0.18) (0.18)
-------------- -------------- --------------
Total from Investment Operations 0.04 0.01 0.05
-------------- -------------- --------------
Distributions to shareholders from:
Net investment income (0.22) (0.19) (0.23)
-------------- -------------- --------------
Total Distributions to Shareholders (0.22) (0.19) (0.23)
-------------- -------------- --------------
Net Asset Value, End of Period $ 9.82 $ 9.82 $ 9.82
============== ============== ==============
Total Return (excludes sales charge) 0.44% ** 0.12% ** 0.52% **
Ratios to Average Net Assets/Supplemental Data:
Net Assets, end of period (000) $ 5 $ 5 $ 10,010
Net investment income before waivers/reimbursements 3.10% *** 2.27% *** 3.29% ***
Net investment income net of waivers/reimbursements 5.73% *** 4.90% *** 5.94% ***
Expenses before waivers/reimbursements 3.66% *** 4.44% *** 3.45% ***
Expenses net of waivers/reimbursements 1.05% *** 1.80% *** 0.80% ***
Portfolio turnover rate 14.98% 14.98% 14.98%
</TABLE>
_______________
(a) From commencement of operations on November 9, 1999 to March 31, 2000.
* Distributions from net investment income were less than one cent per share.
** Total return for periods less than one year is not annualized.
*** Annualized.
See accompanying notes to financial statements.
28
<PAGE>
USALLIANZ FUNDS
<TABLE>
<CAPTION>
Financial Highlights
Diversified Assets Diversified Assets Diversified Assets
Fund Fund Fund
Class A Class B Class Y
--------------------- ----------------------- --------------------
Period Ended Period Ended Period Ended
March 31, 2000 (a) March 31, 2000 (a) March 31, 2000 (a)
(Unaudited) (Unaudited) (Unaudited)
--------------------- ----------------------- --------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 10.00 $ 10.00 $ 10.00
------------ ------------- --------------
Income from Investment Operations:
Net investment income 0.14 0.11 0.15
Net realized and unrealized gain on investments 0.36 0.36 0.36
------------ ------------- --------------
Total from Investment Operations 0.50 0.47 0.51
------------ ------------- --------------
Distributions to shareholders from:
Net investment income (0.14) (0.11) (0.15)
------------ ------------- --------------
Total Distributions to Shareholders (0.14) (0.11) (0.15)
------------ ------------- --------------
Net Asset Value, End of Period $ 10.36 $ 10.36 $ 10.36
============ ============= ==============
Total Return (excludes sales charge) 5.00% * 4.69% * 5.09%*
Ratios to Average Net Assets/Supplemental Data:
Net Assets, end of period (000) $ 5 $ 5 $ 10,423
Net investment income before waivers/reimbursements 1.15% ** 0.30% ** 1.13% **
Net investment income net of waivers/reimbursements 3.49% ** 2.70% ** 3.69% **
Expenses before waivers/reimbursements 3.54% ** 4.35% ** 3.51% **
Expenses net of waivers/reimbursements 1.20% ** 1.95% ** 0.95% **
Portfolio turnover rate 21.67% 21.67% 21.67%
</TABLE>
<TABLE>
<CAPTION>
Money Market Money Market
Fund Fund
Class A Class Y
--------------------- ---------------------
Period Ended Period Ended
March 31, 2000 (a) March 31, 2000 (a)
(Unaudited) (Unaudited)
--------------------- ---------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $ 1.000 $ 1.000
------------- ----------------
Income from Investment Operations:
Net investment income 0.020 0.021
------------- ----------------
Total from Investment Operations 0.020 0.021
------------- ----------------
Distributions to shareholders from:
Net investment income (0.020) (0.021)
Total Distributions to Shareholders (0.020) (0.021)
------------- ----------------
Net Asset Value, End of Period $ 1.000 $ 1.000
============= ================
Total Return (excludes sales charge) 1.98% * 2.09% *
Ratios to Average Net Assets/Supplemental Data:
Net Assets, end of period (000) $ 10 $ 10,173
Net investment income before waivers/reimbursements 2.50% ** 2.83% **
Net investment income net of waivers/reimbursements 5.02% ** 5.26% **
Expenses before waivers/reimbursements 3.40% ** 3.06% **
Expenses net of waivers/reimbursements 0.88% ** 0.63% **
Portfolio turnover rate - -
</TABLE>
_________________
(a) From commencement of operations on November 9, 1999 to March 31, 2000.
* Total return for periods less than one year is not annualized.
** Annualized.
See accompanying notes to financial statements.
29
<PAGE>
USALLIANZ FUNDS
<TABLE>
<CAPTION>
Financial Highlights
Global Global Global
Opportunities Fund Opportunities Fund Opportunities Fund
Class A Class B Class Y
---------------------- ------------------------ ---------------------
Period Ended Period Ended Period Ended
March 31, 2000 (a) March 31, 2000 (a) March 31, 2000 (a)
(Unaudited) (Unaudited) (Unaudited)
---------------------- ------------------------ ---------------------
<S> <C> <C> <C>
Class A
Net Asset Value, Beginning of Period $ 10.00 $ 10.00 $ 10.00
------------- --------------- --------------
Income from Investment Operations:
Net investment loss (0.07) (0.07) (0.07)
Net realized and unrealized gain on investments 1.88 1.84 1.89
------------- --------------- --------------
Total from Investment Operations 1.81 1.77 1.82
------------- --------------- --------------
Net Asset Value, End of Period $ 11.81 $ 11.77 $ 11.82
------------- --------------- --------------
Total Return (excludes sales charge) 18.10% * 17.70% * 18.20% *
Ratios to Average Net Assets/Supplemental Data:
Net Assets, end of period (000) $ 6 $ 6 $11,830
Net investment loss before waivers/reimbursements (3.11%)** (3.76%)** (2.82%) **
Net investment loss net of waivers/reimbursements (0.93%)** (1.67%)** (0.66%) **
Expenses before waivers/reimbursements 4.04% ** 4.74% ** 3.75% **
Expenses net of waivers/reimbursements 1.85% ** 2.60% ** 1.60% **
Portfolio turnover rate 58.05% 58.05% 58.05%
</TABLE>
________________
(a) From commencement of operations on November 9, 1999 to March 31, 2000.
* Total return for periods less than one year is not annualized.
** Annualized.
See accompanying notes to financial statements.
30
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<PAGE>
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The USAllianz funds are distributed by BISYS
Funds Services. These funds are not FDIC insured. SANRPTO300 5/00
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