[GRAPHIC OMITTED]
The world is full of forward thinking companies. Success comes from having the
ability to identify them.
[LOGO] CITIZENS
FUNDS
December 31, 1999 Semi-Annual Report
<PAGE>
[GRAPHIC OMITTED]
<PAGE>
[PHOTO]
Dear Shareholder -- What a way to enter the new millennium! 1999 was a
remarkable year for Citizens Funds. As a shareholder myself, I was personally
very pleased with our funds' performance. As Citizens Funds' president, I was
extremely gratified by the funds' growth because it signifies that more and more
investors are realizing what we have always believed - that forward-thinking
companies offer the world's best investment opportunities.
The performance of our equity funds is satisfying, to say the least. For
example, the Citizens Global Equity Fund - Standard shares returned a stunning
74.09% for the twelve-months ended December 31, 1999. The Citizens Emerging
Growth Fund - Standard shares wasn't far behind, returning 68.09% in 1999. Our
flagship Citizens Index Fund - Standard shares gained 27.49% for the year,
easily outpacing the S&P 500 Index which returned 21.01%. No wonder then that
Citizens Funds' assets increased 75% to over $1.4 billion in 1999.
Performance over the longer term is also noteworthy. On an average annual basis,
the Citizens Global Equity Fund - Standard shares returned 28.84% for the
five-year period ended December 31, 1999 and 23.42% since inception (2/8/94).
The Citizens Emerging Growth Fund - Standard shares increased 35.23% on average
for the same five-year period and 30.70% since inception (2/8/94). The Citizens
Index Fund -Standard shares returned 34.92% on average for the three-year period
ended December 31, 1999 with a 31.45% average annual return since inception
(3/3/95).
As proud as I am of these results, I do want to sound a cautionary note.
Outsized market gains will not and cannot continue indefinitely. Indeed, the
financial markets were quite volatile in 1999, and much of our funds'
outperformance occurred during a brief period at the end of the year. With this
in mind, I want to take the opportunity to remind you that taking a long-term
view, managing your risk through diversification and following a systematic
investment plan (sometimes called "dollar cost averaging") are time-tested
strategies for investment success. I suggest you consider each of them.
Let me talk briefly about some of our other accomplishments during the past six
months.
Perhaps the most significant was the debut of the Citizens Small Cap Index Fund.
The Citizens Funds research team, under the direction of Sophia Collier, spent
months evaluating equities in the small-cap sector - companies with market
capitalizations
<PAGE>
between $50 million and $3.5 billion. Their goal was to create the Citizens
Small Cap Index(TM), an index of 300 small-cap companies with certain shared
characteristics such as financial promise, demonstrated product innovation or
leadership, respect for their employees and community, and favorable records of
environmental responsibility.
The fund became available for investment in late December, and personally, I
think it is a strategically valuable addition to our line-up of equity funds.
We continue to strengthen our capabilities in other ways as well. For example, a
new Director of Research joined us in December. His contribution is vital as we
seek to enhance our ability to evaluate companies on the basis of qualifications
and achievements beyond their financial performance. At the same time, our new
Director will lead stepped-up activities in the area of shareholder activism. As
an example of the kind of impact we had as shareholder activists during 1999,
along with a coalition of concerned investors, Citizens Funds was successful in
convincing Home Depot to phase out its use of wood logged from old growth
forests. Expect us to pursue a heightened level of activity of this kind in the
future.
Looking forward, we are expanding our customer service capabilities through our
Internet presence. We recently began offering our shareholders private, secure
access to their account information. In the coming months, we expect to be able
to offer online transaction capabilities and more.
It's clear to me, as I'm sure it is to you, that an economy characterized by
great business and technological changes is making its presence felt in all
parts of the world. At Citizens Funds, our goal is to recognize those companies
that contribute most to economic growth and development. I hope to be able to
report to you six months from now that we have once again been successful in
this endeavor.
My best regards:
/s/ John L. Shields
John L. Shields
President
Past performance does not guarantee future results. The value of an investment
in Citizens Funds will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
Please call for a prospectus, which contains complete details of fees and
expenses and should be read carefully before investing.
Investments in the Citizens Emerging Growth Fund and Citizens Small Cap Index
Fund involve unique risks, as small- and medium-sized companies may have
inexperienced management, limited product lines, a difficult time obtaining
financing or market share, and their shares may be more volatile and not traded
as frequently or in as large a volume as larger companies.
Investments in the Citizens Global Equity Fund involve risks of investing in
foreign markets, including political instability and currency risks, excessive
taxation, different financial and auditing standards, increased market
volatility and other factors.
The S&P 500 Index is an unmanaged index of the common stock of 500 of the
largest companies in the U.S. stock market. Direct investment cannot be made in
this index.
Distributed by Citizens Securities, Inc., Portsmouth, NH 03801
<PAGE>
Table of Contents
President's Letter 1
Managers' Comments 4
Statement of Investments 14
Statement of Assets and Liabilities 38
Statement of Operations 40
Statement of Changes in Net Assets 42
Financial Highlights 44
Notes to Financial Statements 51
<PAGE>
[PHOTO]
Sophia Collier
Lead manager of
the Citizens Index
Fund team since
its inception,
March, 1995.
Managers' Comments -- Citizens Index Fund
Objective: Long-term capital appreciation. The Ground Rules: Invests primarily
in the securities comprising the Citizens Index(TM), a market-weighted index of
300 companies. The Results: Total return for the six- and twelve-month periods
ended December 31, 1999 for the Standard shares was 13.79% and 27.49%,
respectively. The Institutional Class shares returned 14.18% and 28.40% for the
same periods. The S&P 500 Index ended the year with a six-month return of 7.79%
and a twelve-month total return of 21.01%.
For the six-month period ended December 31, 1999, the Citizens Index Fund -
Standard shares posted a gain of 13.79%, outperforming the S&P 500 Index by
6.00%. For the twelve-month period, the fund returned 27.49%, outperforming the
S&P 500 Index by 6.48%.
A June 30th interest rate increase by the Federal Open Market Committee (Fed)
set the stage for the third quarter. Despite strong second quarter earnings
reports, concern over further Fed increases dampened market performance. In the
third quarter, the market, as measured by the S&P 500 Index, experienced only
its second quarterly decline in 19 quarters.
In the fourth quarter the market rebounded sharply. With three 25 basis point
interest rate increases for the year, the market rallied on the correct
perception that ahead of Y2K, the Fed would remain out of the picture for the
rest of the year. For the past six months, as well as for the last year,
technology was the leading industry sector. On the downside, with the increase
in interest rates and oil prices, the worst performing sectors were the
financial and transportation sectors.
The Citizens Index Fund's larger weighting in technology companies, as compared
to the S&P 500 Index, was almost entirely responsible for the fund's
outperformance. Not surprisingly, seven of the top ten performing stocks in the
portfolio were technology companies. The best performing stock of the Citizens
Index Fund for the past six months was Qualcomm, Inc. (+391%), a developer and
manufacturer of communication technologies and products, continuing its strong
performance from the first half of the year. The stock has risen sharply over
the past year (+2619%) with the success of its wireless technologies. Veritas
Software Co. was also up strongly (+352%). With the increase in electronic data,
the company benefited from
4
<PAGE>
Managers' Comments -- Citizens Index Fund
mounting demand for its software storage solutions. Other strong performers in
the last six months include: Human Genome Science (+286%), Siebel Systems
(+153%), Gateway (+144%) and Sun Microsystems Inc. (+125%).
Among the companies with the largest negative impact on performance for the six
months ended December 31, 1999 were Xerox Corporation (-61%), which suffered
from decreased earnings as a result of weak U.S. and European sales and Bank One
Corporation (-45%), which was down due to difficulties with its credit card
business. Other poor performers in the fund include Federal Mogul Corporation
(-61%) and JC Penney Inc. (-58%).
As we move into 2000, market attention will likely again focus on the activities
of the Fed. Despite the economy's continued high productivity and low inflation,
the Fed appears determined to raise interest rates to ease pressure in the tight
labor markets. Once the Fed signals the completion of its task, the market's
attention will likely return to the overall positive economic environment and
the continued favorable climate for equity securities.
5
<PAGE>
[PHOTO]
Richard Little
Lead manager of the
Citizens Emerging
Growth Fund team
since its inception,
February 1994.
Managers' Comments -- Citizens Emerging Growth Fund
Objective: Aggressive growth. The Ground Rules: During normal market conditions,
invests primarily in the common stock of medium-sized companies whose market
capitalizations, at the time of acquisition, are in the capitalization range of
the S&P MidCap 400 Index. The Results: Total return for the six- and
twelve-month periods ended December 31, 1999 for the Standard shares was 47.62%
and 68.09%, respectively. The Institutional Class shares returned 25.27% since
inception (11/01/99) versus the benchmark return of 11.48% for the same period.
The S&P MidCap 400, the fund's benchmark, ended the year with a six-month return
of 7.34% and a twelve-month total return of 14.77%.
Equity markets in 1999 were mixed and somewhat volatile until the fourth quarter
when it became clearer that economic growth was being sustained with inflation
in check. Also, Y2K fears abated in late 1999 as the Federal Reserve Board
engineered a large liquidity boost to ensure a smooth Y2K transition.
Not surprisingly, given this environment, most of the fund's strong performance
was earned in the year's final quarter when the Citizens Emerging Growth Fund -
Standard shares returned 42.46%. The technology sector was the primary driver
and our particular technology holdings served the portfolio well. Veritas
Software, a designer and developer of enterprise storage management products,
was our top performer for the six-month period and was up 182% from the date of
purchase. SDL Inc., a designer and manufacturer of semi-conductor laser and
fiber optic products, was purchased in the fourth quarter of 1999 and was also a
strong contributor, up 179% for the fourth quarter. In the communication
services sector, we prospered with American Tower and Crown Castle
International, both operators of wireless and broadcast transmission
infrastructure.
Fund performance benefited as much from what we avoided as what we bought. The
healthcare sector, with the exception of biotech, continued to be difficult due
to increased threat of government regulation. The fund was underweighted in the
healthcare sector relative to its benchmark. Retail stocks were also poor
performers in the final quarter of 1999 as investors came to believe that the
robust level of consumer spending in 1999 could not reasonably be expected to
improve in 2000. In retail, also, the fund was underweighted relative to the
market. Our exposure was limited to a few names in healthcare and retail. These
areas were extremely difficult, and by year end, we sold retailer TJX and
Wellpoint Health Systems, an HMO.
6
<PAGE>
Managers' Comments -- Citizens Emerging Growth Fund
We expect the strong economy, improving productivity, muted inflation and
favorable earnings forecasts to bode well for the equity market. We enter 2000
with optimism for the stocks we own and will continue to search out companies
with above average growth characteristics that can outperform in a fast changing
environment.
7
<PAGE>
[PHOTO]
Lilia Clemente
Lead manager
of the Citizens Global Equity Fund
management team
since its inception,
February 1994.
Managers' Comments -- Citizens Global Equity Fund
Objective: Capital appreciation. The Ground Rules: Invests primarily in common
stocks of both domestic and foreign companies with a plan to allocate more than
half the assets to foreign markets, in most circumstances in a minimum of three
countries. To reduce risk, the fund cannot invest more than 25% in emerging
markets. The Results: Total return for the six- and twelve-month periods ended
December 31, 1999 for the Standard shares was 57.56% and 74.09%, respectively.
The Institutional Class shares returned 35.90% since inception (11/01/99) versus
the benchmark return of 10.24% for the same period. The Financial Times World
Index, the fund's benchmark, ended the year with a six-month return of 15.11%
and a twelve-month total return of 26.00%.
For the last six months of 1999, the Citizens Global Equity Fund - Standard
shares returned 57.56% versus 15.11% for the benchmark. For the twelve-month
period ended December 31,1999, the fund soundly outperformed its benchmark, the
Financial Times World Index, posting a gain of 74.09% compared to 26.00% for the
Index.
Despite a volatile global economic environment, world equity markets managed
once more to show strong gains in 1999. In the U.S., for example, the S&P 500
Index rose 21% for the year, reflecting optimism that the economy was on a
positive track with inflation well under control. In Europe, after struggling
much of the year, most equity markets finished on a high note with renewed
confidence that the European economic recovery is still intact. Particularly
noteworthy were gains in Sweden and Finland which benefited from their leading
positions in key technology areas.
In Asia, Japan continued to do well. Over the past twelve months, Japanese
equities returned 77%, assisted by the fact that the Bank of Japan is the only
major central bank not tightening monetary policy. Other Asian markets also
fared well, with Hong Kong and Singapore showing gains of 74% and 82%,
respectively.
In emerging markets, Latin America was one of the strongest performers,
especially in the fourth quarter. The equity markets of the region's two largest
economies, Brazil and Mexico, returned 72% and 90%, respectively, in 1999. In
fact, most of the economies in the region are rebounding. Mexico, in particular,
should continue to benefit from the close connection to the U.S. economy.
Within this environment, we continued to use bottom-up stock selection to find
companies with strong underlying fundamentals
8
<PAGE>
Managers' Comments -- Citizens Global Equity Fund
[PHOTO]
Sevgi Ipek
Portfolio manager
of the Citizens
Global Equity Fund
since 1995.
and solid or improving earnings prospects. Over the course of the year two key
investment themes emerged, driving the fund's strong performance: Asia and
technology. One of our favorite stocks was Softbank, a leading Tokyo-based
internet holding company with stakes in U.S. companies E*TRADE and Yahoo.
Softbank returned 371% in the last six months of 1999. Another winner was NTT
DoCoMo, Japan's largest mobile phone operator, which has established a service
that allows users to send e-mail and access the Internet with their mobile
phones. This stock rose 183% in the second half of the year.
Other stocks contributing to the fund's excellent return for the six- months
ended December 31,1999 were HIQ in Sweden (+370%), Nokia in Finland (+109%) and
Nextel Communications in the U.S. (+105%).
We were very pleased with the overall performance of the fund and few holdings
fell short of expectations. However, we did divest our position in Tyco
International in the U.S. after the company announced that it is the subject of
an SEC investigation of its accounting practices for acquisitions.
Looking forward, we believe that the current economic and financial environment
is sustainable and favorable for most world financial markets. We expect the
U.S. economy to continue to grow strongly in 2000 with low core inflation and
continued productivity. The European economy should grow faster in 2000 than in
1999, though still below the U.S. rate. We anticipate some weakness in domestic
demand in Japan yet expect the country will continue making gradual,
constructive changes in monetary policy, entrepreneurism and corporate
restructuring. Finally, we expect that technology and productivity enhancement
will remain the driving forces of the global expansion in 2000 and will remain
our favorite investment themes for this year.
9
<PAGE>
[PHOTO]
Gail Seneca
Lead manager of
the Citizens Income
Fund team since
November 1993.
Managers' Comments -- Citizens Income Fund
Objective: Generate current income and pay a dividend each month. The Ground
Rules: Invests at least 65% of fund assets in taxable bonds rated at least
"investment grade." Up to 35% of fund assets may be invested in non-investment
grade securities. The Results: Total return for the six- and twelve-month
periods ended December 31, 1999 was 0.47% and -0.82%, respectively. The Lehman
U.S. Aggregate Index ended the year with a six-month return of 0.56% and a
twelve-month total return of -0.82%.
The Citizens Income Fund - Standard shares returned 0.47% for the six-month
period ended December 31, 1999 and -0.82% for the full calendar year. The fund
performed reasonably in line with its benchmark, the Lehman U.S. Aggregate
Index, which returned 0.56% for the last six months and -0.82% for the year
ended December 31, 1999.
In the fixed income market, the last six months of 1999 were difficult, with
short and intermediate bond yields rising 60-70 basis points and longer yields
rising 50 basis points. The rise in bond yields and the corresponding fall in
bond prices was a reaction to a 75 basis point increase in the Federal Funds
rate to 5.50%. The Federal Open Market Committee (Fed) tightened monetary policy
via three separate quarter point increases commencing on June 30th, as economic
growth accelerated and the unemployment rate edged lower. The increase in the
Federal Funds rate was a full reversal of the 75 basis point easing that was
implemented in the fall of 1998. The Fed had cut rates in 1998 to aid the global
financial system in the aftermath of a default by Russia on its debt. A
much-improved global economy in 1999 allowed the Federal Reserve to completely
undo these rate reductions by year-end 1999.
As the economy improved in 1999, investor confidence also improved. Bond
investors increasingly embraced corporate bonds, high yield securities,
mortgages and emerging market debt at the expense of U.S. Treasuries and
Agencies. For the year, all these "spread" sectors outperformed Treasuries and
Agencies. The Citizens Income Fund maintained a heavy exposure to spread sectors
and, in particular, corporate bonds.
The Citizens Income Fund - Standard shares slightly underperformed the Lehman
U.S. Aggregate Index in the second half of 1999 due to
10
<PAGE>
Managers' Comments -- Citizens Income Fund
the fund's lower weighting in the mortgage sector relative to the Index. The
fund had a higher weighting in corporates than in mortgages to take advantage of
the higher and more stable income stream offered by corporate bonds.
For the full year, the fund's return matched the return of the Lehman U.S.
Aggregate Index. The fund benefited from maintaining nearly the maximum allowed
35% weighting in the high-yield sector throughout the year. Sector allocations
were fairly constant with approximately 60% invested in investment grade and
high-yield corporate bonds, 15% in Agency bonds, 20% in mortgage bonds and 5% in
cash. The duration of the fund has been neutral to slightly short to the
benchmark index over the last six months. This means that the fund is assuming a
conservative posture with regard to interest rate risk, because we believed that
interest rates might trend higher.
The fund benefited from increasing its exposure to the telecommunications sector
through its holdings in Cencall Communications, Global Crossing and Qwest
Communications during the second half of the year. This was beneficial to
performance as investors reevaluated the future growth potential of these
companies.
The fund continues to benefit from our emphasis on intensive bottom-up research
and security selection. The outlook for corporate bonds remains favorable in the
coming year as corporate earnings continue to surprise on the upside.
We believe that the interest rate environment will be mildly negative in the
first half of 2000 as the Fed is expected to make further increases in the
Federal Funds rate. This tightening in monetary policy should lead to a
deceleration in the rate of economic growth and a reduction in future
inflationary pressure, enabling bond yields to fall and bond prices to rise
later in the year. We expect bonds to be an attractive asset class over the next
year, offering high real and nominal yields in a low inflation environment.
11
<PAGE>
[PHOTO]
Laura Provost
Lead manager of
the Working Assets
Money Market
Fund team since
October 1997.
Managers' Comments -- Working Assets Money Market Fund
Objective: Current income consistent with safety and liquidity. The Ground
Rules: Invests in liquid short-term money market instruments, while maintaining
an average maturity of 90 days or less. The Results: Total return for the six-
and twelve- month periods ended December 31, 1999 for the Standard shares was
2.14% and 4.05%, respectively. The Institutional Class shares returned 2.34% and
4.53% for the same periods. The fund has a weighted average maturity of 46 days.
The U.S. economy continued on its favorable path in the last six months of 1999.
Strong growth, low inflation, accelerating productivity and a tight labor market
were again fitting descriptions. Ever vigilant and out of concern that potential
economic imbalances could lead to inflation, the Federal Open Market Committee
(Fed) instituted three 25 basis point rate increases - in June, August and
November - that fully unwound the 75 basis point reductions made in 1998 in
response to global economic events. Although the Fed left interest rates
unchanged at its final meeting of the year in December, further rate increases
are anticipated, especially now that Y2K has passed largely uneventfully.
Of concern to the Fed is that high equity prices coupled with low unemployment
and higher wages have continued to fuel seemingly endless consumer spending. On
the demand side, without a slowdown in spending, demand could potentially
outstrip supply which could lead to inflation. On the supply side, the concern
is that the pool of available workers will be depleted resulting in wage and
price increases. Despite recognition of a new economic era marked by rapid
technological expansion and increased productivity, the Fed has proven by its
most recent moves that it refuses to speculate on the impact of this new era and
instead prefers to stay ahead of the curve in fighting inflation.
Reflecting the higher rate environment, the return of the Working Assets Money
Market Fund - Standard shares moved up in the second half of 1999. For the
six-month period ended December 31, 1999, the fund returned 2.14%, compared to
1.88% for the first six months of the year. For the twelve-month period ended
December 31, 1999, the fund returned 4.05%. The fund had a weighted-average
maturity of
12
<PAGE>
Managers' Comments -- Working Assets Money Market Fund
46 days, down from 60 days at mid-year. Shortening the portfolio's maturity
allowed us to build some liquidity in advance of Y2K and in anticipation of
further rate increases. We have also increased the amount of variable rate
securities in the fund which now represent 13% of assets, another move to better
position the portfolio for future rate hikes.
Looking ahead, the market, as measured by the Fed Funds futures contracts, is
currently pricing in a high probability of another 25-50 basis point increase in
early 2000. Despite few recent changes in the economy, we believe that the Fed's
concern for potential inflation will likely force it to ratify the market's
expectations of high rates. Another preemptive move by the Fed to head off
future inflation may bode well for the economy, as it will likely prevent a more
drastic reactionary response in the future. On a positive note, the President's
reappointment of Alan Greenspan to another four-year term as Chairman of the
Federal Reserve was well received. At the very least, the reappointment removes
an element of uncertainty.
We will continue to monitor the economy and adjust the portfolio accordingly.
Our goal, as always, is to provide safety, liquidity and yield to our
shareholders.
13
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Index Fund
Number of Shares Value
(% of net assets) Security Description (Note 1)
- --------------------------------------------------------------------------------
Equities 99.35%
Apparel & Textiles 0.10%
8,200 Liz Claiborne Incorporated $ 308,525
8,000 Reebok International Limited 65,500 (b)
4,900 Russell Corporation 82,075
12,400 Tommy Hilfiger Corporation 289,075 (b)
7,400 The Warnaco Group Incorporated 91,113
------------
836,288
Auto Parts & Equipment 0.06%
3,000 Bandag Incorporated 75,000
10,400 Cooper Tire & Rubber Company 161,850
10,500 Federal-Mogul Corporation 211,313
------------
448,163
Chemicals 0.35%
31,500 Air Products & Chemicals Incorporated 1,057,219
17,550 Engelhard Corporation 331,256
21,400 Praxair Incorporated 1,076,687
13,500 Sigma-Aldrich Corporation 405,844
------------
2,871,006
Commercial Services & Equipment 1.07%
8,033 ACNielsen Corporation 197,813 (b)
96,543 Cendant Corporation 2,564,422 (b)
10,200 Deluxe Corporation 279,863
9,700 DeVry Incorporated 180,663 (b)
21,600 Dun & Bradstreet Corporation 637,200
12,900 H&R Block Incorporated 564,375
11,200 Herman Miller Incorporated 257,600
8,200 HON Industries Incorporated 179,888
6,900 Interface Flooring Incorporated 39,675
13,300 Modis Professional Services Incorporated 189,525 (b)
33,050 Paychex Incorporated 1,322,000
36,000 Pitney Bowes Incorporated 1,739,250
7,400 Sylvan Learning Systems Incorporated 96,200 (b)
12,600 Viad Corporation 351,225
90,700 Xerox Corporation 133,000
------------
8,732,699
Computers & Technology 33.34%
46,850 3Com Corporation 2,201,950 (b)
13,800 Adaptec Incorporated 688,275 (b)
16,600 Adobe Systems Incorporated 1,116,350
303,300 America Online Incorporated 22,880,194 (b)
22,100 Apple Computer Incorporated 2,272,156 (b)
8,600 Autodesk Incorporated 290,250
See Accompanying Notes to Financial Statements
14
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
- --------------------------------------------------------------------------------
Computers & Technology (cont'd)
84,700 Automatic Data Processing $ 4,563,213
32,700 BMC Software Incorporated 2,613,956 (b)
33,300 Cadence Design Systems Incorporated 799,200 (b)
8,100 Cambridge Technology Partners Incorporated 212,625 (b)
443,950 Cisco Systems Incorporated 47,558,143 (b)
230,885 Compaq Computer Corporation 6,248,325
73,212 Computer Associates International
Incorporated 5,120,264
345,100 Dell Computer Corporation 17,600,100 (b)
137,700 EMC Corporation 15,043,725 (b)
63,900 Electronic Data Systems Corporation 4,277,306
56,900 First Data Corporation 2,805,881
43,200 Gateway 2000 Incorporated 3,113,100 (b)
138,500 Hewlett-Packard Company 15,780,344
3,900 IDX Systems Corporation 121,875 (b)
41,800 IMS Health Incorporated 1,136,438
9,000 Ingram Micro Incorporated 118,125 (b)
26,600 Intuit Incorporated 1,594,338 (b)
15,000 J.D. Edwards & Company 448,125 (b)
17,300 Lexmark International Group Incorporated 1,565,650 (b)
38,684 McKesson HBOC Incorporated 872,808
700,800 Microsoft Corporation 81,818,399 (b)
19,274 Network Associates Incorporated 514,375 (b)
45,400 Novell Incorporated 1,813,163 (b)
37,000 Parametric Technology Corporation 1,001,313 (b)
33,200 Peoplesoft Incorporated 707,575 (b)
3,900 Shared Medical Systems Corporation 198,656
26,400 Siebel Systems Incorporated 2,217,600 (b)
24,800 Silicon Graphics Incorporated 243,350 (b)
212,000 Sun Microsystems Incorporated 16,416,750 (b)
9,400 Synopsys Incorporated 627,450 (b)
35,350 Veritas Software Corporation 5,059,469 (b)
------------
271,660,816
Construction & Housing 0.28%
5,100 Armstrong World Industries Incorporated 170,213
8,100 Centex Corporation 199,968
19,000 Clayton Homes Incorporated 174,563
4,500 Fleetwood Enterprises Incorporated 92,813
60,400 Masco Corporation 1,532,649
6,300 Pulte Corporation 141,750
------------
2,311,956
Consumer Durables 0.19%
5,500 Ethan Allen Interiors Incorporated 176,344
2,755 Harman International Industries Incorporated 154,624
11,900 Maytag Corporation 571,200
10,100 Whirlpool Corporation 657,131
------------
1,559,299
See Accompanying Notes to Financial Statements
15
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
- --------------------------------------------------------------------------------
Consumer Products - Miscellaneous 0.34%
8,800 American Greetings Corporation $ 207,900
15,600 Avery Dennison Corporation 1,136,850
4,800 Jostens Incorporated 116,700
12,100 Moore Corporation Limited 73,356
38,056 Newell Rubbermaid Incorporated 1,103,624
8,300 Tupperware Corporation 140,581
------------
2,779,011
Electronics 8.42%
19,900 Advanced Micro Devices Incorporated 575,856 (b)
27,200 Altera Corporation 1,348,100 (b)
25,700 American Power Conversion 677,838 (b)
6,100 Avnet Incorporated 369,050
6,700 Broadcom Corporation 1,824,913 (b)
5,400 C-Cube Microsystems Incorporated 336,150 (b)
454,100 Intel Corporation 37,378,105
12,200 KLA-Tencor Corporation 1,358,775 (b)
19,800 LSI Logic Corporation 1,336,500 (b)
36,600 Micron Technology Incorporated 2,845,650
5,700 Millipore Corporation 220,163
20,960 Molex Incorporated 1,188,170
13,700 PE Corporation - PE Biosystems
Incorporated 1,648,281
39,300 Solectron Corporation 3,738,412 (b)
12,250 Symbol Technologies Incorporated 778,641
6,250 Tektronix Incorporated 242,969
108,900 Texas Instruments Incorporated 10,549,687
7,700 Thomas & Betts Corporation 245,438
43,400 Xilinx Incorporated 1,973,344 (b)
------------
68,636,042
Energy & Utilities 1.01%
28,200 AES Corporation 2,107,949 (b)
13,400 American Water Works Incorporated 284,750
12,900 Consolidated Natural Gas Company 837,694
20,600 Dynegy Incorporated 500,838
30,600 El Paso Energy Corporation 1,187,662
71,429 Energia Global International Limited,
Series A, Conv. Pfd. 330,716 (b)(c)
5,500 Idacorp Incorporated 147,469
11,800 MCN Energy Group Incorporated 280,250
6,200 Nicor Incorporated 201,500
4,100 ONEOK Incorporated 103,013
4,800 Peoples Energy Corporation 160,800
5,200 Philadelphia Suburban Corporation 107,575
59,400 The Williams Companies Incorporated 1,815,412
5,000 United Water Resources Incorporated 170,938
40,000 Vulcan Power Company, Class A 0 (b)(c)
------------
8,236,566
See Accompanying Notes to Financial Statements
16
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
- --------------------------------------------------------------------------------
Finance & Insurance 11.24%
12,950 A.G. Edwards Incorporated $ 415,209
60,400 American Express Company 10,041,499
33,486 American General Corporation 2,540,750
34,400 AON Corporation 1,376,000
44,900 BB&T Corporation 1,229,138
99,800 Bank Of New York Company Incorporated 3,992,000
155,750 Bank One Corporation 4,993,733
110,950 Charles Schwab Corporation 4,257,706
29,270 Charter One Financial Incorporated 559,789
23,900 Chubb Corporation 1,345,869
21,050 Comerica Incorporated 982,772
15,100 Countrywide Credit Industries Incorporated 381,275
33,400 E*Trade Group Incorporated 872,575 (b)
139,200 Fannie Mae 8,691,299
41,500 Fifth Third Bancorp 3,045,063
133,138 Firstar Corporation 2,812,540
94,000 Freddie Mac 4,423,874
22,200 Golden West Financial Corporation 743,700
30,100 Hartford Financial Services 1,425,988
63,800 Household International 2,376,550
30,722 Huntington Bancshares Incorporated 733,488
4,191 Investment Technology Group Incorporated 120,491
14,150 Jefferson-Pilot Corporation 965,738
60,300 Keycorp 1,334,138
14,200 Marshall & Ilsley Corporation 891,938
13,600 MBIA Incorporated 718,250
109,312 MBNA Corporation 2,978,752
69,000 Mellon Bank Corporation 2,350,313
14,600 MGIC Investment Corporation 878,738
83,700 National City Corporation 1,982,644
30,000 Northern Trust Corporation 1,590,000
39,900 PNC Bank Corporation 1,775,550
9,800 Progressive Corporation 716,625
19,100 Providian Financial Corporation 1,739,294
29,300 Regions Financial Corporation 736,163
12,000 ReliaStar Financial Corporation 470,250
22,000 SLM Holding Corporation 929,500
17,200 Safeco Corporation 427,850
31,144 St. Paul Companies 1,049,164
22,100 State Street Corporation 1,614,681
43,300 SunTrust Banks Incorporated 2,979,581
38,000 Synovus Financial Corporation 755,250
98,800 U.S. Bancorp 2,352,675
32,100 UNUMProvident Corporation 1,029,206
27,700 Wachovia Corporation 1,883,600
78,434 Washington Mutual Incorporated 2,039,284
------------
91,550,492
See Accompanying Notes to Financial Statements
17
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
- --------------------------------------------------------------------------------
Food & Beverages 5.54%
37,500 Bestfoods $ 1,971,094
58,100 Campbell Soup Company 2,247,743
335,400 The Coca-Cola Company 19,537,049
5,800 Earthgrains Company 93,525
41,100 General Mills Incorporated 1,469,325
5,600 Great Atlantic & Pacific Tea Company,
Incorporated 156,100
5,500 Hannaford Brothers Company 381,219
48,300 H. J. Heinz Company 1,922,944
18,700 Hershey Foods Corporation 888,250
55,200 Kellogg Company 1,700,850
112,500 Kroger Company 2,123,438 (b)
9,550 McCormick & Company Incorporated 284,113
6,600 Nabisco Holdings Corporation 208,725
197,700 Pepsico Incorporated 6,968,924
18,400 Quaker Oats Company 1,207,500
19,300 SUPERVALU Incorporated 386,000
44,600 Sysco Corporation 1,764,488
4,260 Tootsie Roll Industries Incorporated 140,314
18,700 Whitman Corporation 251,281
3,300 Whole Foods Market Incorporated 153,038 (b)
15,600 Wm. Wrigley Jr Company 1,293,825
------------
45,149,745
Forest Products & Paper 0.05%
12,600 Consolidated Papers Incorporated 400,838
------------
400,838
Health Care & Personal Care 2.36%
32,900 Avon Products Incorporated 1,085,700
34,200 Becton, Dickinson & Company 914,850
15,100 Biomet Incorporated 604,000
56,700 Boston Scientific Corporation 1,240,313 (b)
145,700 Gillette Company 6,001,018
41,300 Guidant Corporation 1,941,100
4,800 Idexx Laboratories Incorporated 77,400 (b)
4,100 Invacare Corporation 82,256
162,338 Medtronic Incorporated 5,915,191
11,000 Oxford Health Plans Incorporated 139,563 (b)
11,500 St. Jude Medical Incorporated 352,906 (b)
5,500 Trigon Healthcare Incorporated 162,250 (b)
4,000 Universal Health Services Incorporated 144,000 (b)
8,900 Wellpoint Health Networks Incorporated 586,844 (b)
------------
19,247,391
See Accompanying Notes to Financial Statements
18
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
- --------------------------------------------------------------------------------
Machines & Tools 0.33%
31,800 Deere & Company $ 1,379,324
4,800 Milacron Incorporated 73,800
2,500 Nordson Corporation 120,625
7,700 Snap-On Incorporated 204,531
4,397 SPX Corporation 355,333
12,400 The Stanley Works 373,550
3,000 Tecumseh Products Company 141,563
------------
2,648,726
Media 5.83%
28,700 AMFM Incorporated 2,245,775 (b)
46,100 Clear Channel Communications Incorporated 4,114,425 (b)
101,700 Comcast Corporation 5,142,206
77,900 Cox Communications Incorporated 4,011,850 (b)
12,400 Dow Jones & Company Incorporated 843,200
10,900 E.W. Scripps Company 488,456
27,000 McGraw-Hill Companies Incorporated 1,663,875
83,000 MediaOne Group Incorporated 6,375,438 (b)
7,000 Meredith Corporation 291,813
23,400 The New York Times Company 1,149,525
174,700 Time Warner Incorporated 12,654,830
8,000 Times Mirror Company 536,000
14,100 Univision Communications 1,440,844 (b)
94,600 Viacom Incorporated 5,717,388 (b)
1,400 Washington Post Company 778,225
------------
47,453,850
Metal Fabricate/Hardware 0.05%
1,700 Commercial Metals Company 57,694
8,800 Timken Company 179,850
12,200 Worthington Industries Incorporated 202,062
------------
439,606
Miscellaneous Manufacturing 0.37%
41,000 Illinois Tool Works Incorporated 2,770,062
5,200 National Service Industries Incorporated 153,400
5,800 Polaroid Corporation 109,113
------------
3,032,575
See Accompanying Notes to Financial Statements
19
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
- --------------------------------------------------------------------------------
Pharmaceuticals 2.67%
13,800 ALZA Corporation $ 477,825 (b)
138,700 Amgen Incorporated 8,330,668 (b)
17,950 Bergen Brunswig Corporation 149,209
20,700 Biogen Incorporated 1,749,150 (b)
24,300 Chiron Corporation 1,029,713 (b)
3,000 Human Genome Sciences Incorporated 457,875 (b)
17,200 Mylan Laboratories Incorporated 433,225
5,000 Patterson Dental Company 213,125 (b)
199,500 Schering-Plough Corporation 8,416,405
13,100 Watson Pharmaceuticals Incorporated 469,144 (b)
------------
21,726,339
Producer Goods 0.11%
11,500 Sealed Air Corporation 595,844 (b)
14,001 Sonoco Products Company 318,523
------------
914,367
Real Estate Investment & Management 0.05%
7,200 Choice Hotels International Incorporated 123,300 (b)
13,100 Extended Stay America Incorporated 99,888 (b)
9,800 Rouse Company 208,250
------------
431,438
Recreation & Entertainment 0.36%
10,800 Callaway Golf Company 191,025
20,900 Harley-Davidson Incorporated 1,338,906
26,150 Hasbro Incorporated 498,484
56,775 Mattel Incorporated 745,172
3,400 Sabre Group Holdings Incorporated 174,250 (b)
------------
2,947,837
Retail 6.83%
9,300 Barnes & Noble Incorporated 191,813 (b)
28,300 Best Buy & Company Incorporated 1,420,306 (b)
10,500 BJ's Wholesale Club Incorporated 383,250 (b)
30,200 Costco Companies Incorporated 2,755,750 (b)
53,600 CVS Corporation 2,140,650
18,200 Darden Restaurants Incorporated 329,875
36,077 Dollar General Corporation 820,752
29,000 Federated Department Stores Incorporated 1,466,313 (b)
116,237 The Gap Incorporated 5,346,901
9,600 Harcourt General Incorporated 386,400
312,600 Home Depot Incorporated 21,432,637
20,500 IKON Office Solutions Incorporated 139,656
See Accompanying Notes to Financial Statements
20
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Index Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
- --------------------------------------------------------------------------------
Retail (cont'd)
35,700 J.C. Penney Company Incorporated $ 711,769
22,400 Kohls Corporation 1,617,000 (b)
28,800 The Limited Incorporated 1,247,400
5,600 Longs Drug Stores Corporation 144,550
51,400 Lowe's Companies 3,071,150
45,050 May Department Stores Company 1,452,863
19,000 Nordstrom Incorporated 497,563
63,500 Staples Incorporated 1,317,625 (b)
24,400 Starbucks Corporation 591,700 (b)
26,400 Tandy Corporation 1,298,550
42,100 The TJX Companies Incorporated 860,419
19,000 Venator Group Incorporated 2,057,756 (b)
135,900 Walgreen Company 3,975,075
------------
55,657,723
Telecommunications Equipment & Services 17.99%
19,900 ADC Telecommunications Incorporated 1,443,994 (b)
43,000 Alltel Corporation 3,555,563
19,300 American Tower Corporation 589,856 (b)
210,900 Bell Atlantic Corporation 12,983,531
255,600 BellSouth Corporation 11,965,275
19,450 Crown Castle International Corporation 624,831 (b)
425,513 Lucent Technologies Incorporated 31,833,690
385,878 MCI Worldcom Incorporated 20,475,651 (b)
49,500 Nextel Communications Incorporated 5,104,688 (b)
89,600 Qualcomm Incorporated 15,780,800 (b)
100,900 Qwest Communications International 4,338,700 (b)
10,600 RF Micro Devices Incorporated 725,438 (b)
463,264 SBC Communications Incorporated 22,584,120
58,500 Sprint PCS Group 5,996,250 (b)
1,300 Teligent Incorporated 80,275 (b)
54,600 Tellabs Incorporated 3,504,638 (b)
68,837 US West Incorporated 4,956,264
------------
146,543,564
Transportation 0.41%
40,060 FDX Corporation 1,639,956 (b)
68,537 Southwest Airlines Company 1,109,443
7,100 UAL Corporation 550,694 (b)
------------
3,300,093
------------
Total Equities (Cost $464,009,411) $809,516,430
See Accompanying Notes to Financial Statements
21
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Index Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Short term Investments 0.61%
$ 4,974,000 Repurchase Agreement with
State Street Bank & Trust Co.
Dated 12/31/99 due 01/03/00
with a maturity value of $4,975,036
collateralized by $5,115,000
Fannie Mae Discount Note,
due 08/17/00 and Federal
Home Loan Bank Discount
Note, due 04/07/00 (Market
Value of collateral is $5,078,788)
(Cost $4,974,000) 2.500% 01/03/00 $ 4,974,000
------------
Total Investments (Cost $468,983,411) 99.96% (a) $814,490,430
Other assets, less liabilities 0.04% 352,951
------------
Net Assets 100% $814,843,381
============
</TABLE>
(a) Book cost and tax cost are equal.
(b) Non-income producing security.
(c) On December 31, 1999, the fund owned the following restricted securities
constituting 0.04% of net assets which may not be publicly sold without
registration under the Securities Act of 1933. These securities are valued
at fair value as determined in good faith under the general supervision of
the Board of Trustees. Additional information on the securities is as
follows:
<TABLE>
<CAPTION>
Description Acquisition Date Cost Value
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Energia Global Int'l. Limited, Series A Conv. Pfd. March 3, 1995 $ 250,000 $ 330,716
Vulcan Power Company, Class A March 3, 1995 300,000 0
</TABLE>
See Accompanying Notes to Financial Statements
22
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Emerging Growth Fund
Number of Shares Value
(% of net assets) Security Description (Note 1)
- --------------------------------------------------------------------------------
Equities 97.17%
Commercial Services 2.22%
201,500 Concord EFS Incorporated $ 5,188,625 (b)
------------
5,188,625
Computers & Software 17.99%
72,540 Applied Micro Circuits Corporation 9,230,715 (b)
102,000 Extreme Networks Incorporated 8,517,000 (b)
111,000 Legato Systems Incorporated 7,638,188 (b)
88,300 Mercury Interactive Corporation 9,530,881 (b)
49,090 Veritas Software Corporation 7,026,006 (b)
------------
41,942,790
Consumer Products - Miscellaneous 6.16%
83,300 Avery Dennison Corporation 6,070,488
258,300 Ethan Allen Interiors Incorporated 8,281,744
------------
14,352,232
Electronics 23.30%
105,800 Altera Corporation 5,243,713 (b)
83,500 KLA-Tencor Corporation 9,299,812 (b)
124,310 LSI Logic Corporation 8,390,925 (b)
207,500 Millipore Corporation 8,014,688
60,880 PMC - Sierra Incorporated 9,759,824 (b)
31,300 SDL Incorporated 6,823,400 (b)
149,800 Xilinx Incorporated 6,811,219 (b)
------------
54,343,581
Finance & Insurance 5.24%
117,225 Comerica Incorporated 5,472,942
112,000 MGIC Investment Corporation 6,741,000
------------
12,213,942
Forest Products & Paper 3.46%
254,000 Consolidated Papers Incorporated 8,080,375
------------
8,080,375
Machines & Tools 3.40%
98,000 SPX Corporation 7,919,625 (b)
------------
7,919,625
See Accompanying Notes to Financial Statements
23
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Emerging Growth Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
- --------------------------------------------------------------------------------
Media 9.34%
123,600 Adelphia Communications Corporation $ 8,111,250 (b)
99,680 AMFM Incorporated 7,799,960 (b)
82,500 Gemstar International Group Limited 5,878,125 (b)
------------
21,789,335
Pharmaceuticals 4.04%
56,800 Medimmune Incorporated 9,421,700 (b)
------------
9,421,700
Retail 6.71%
187,400 The Limited Incorporated 8,116,763
254,600 Linens 'n Things Incorporated 7,542,525 (b)
------------
15,659,288
Telecommunications Equipment & Services 15.31%
218,410 American Tower Corporation 6,675,155 (b)
56,000 Comverse Technology Incorporated 8,106,000 (b)
153,500 Copper Mountain Networks Incorporated 7,483,125 (b)
218,030 Crown Castle International Corporation 7,004,214 (b)
115,400 Scientific-Atlanta Incorporation 6,419,125
------------
35,687,619
------------
Total Equities (Cost $167,460,697) $226,599,112
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Short-Term Investments 8.98%
$ 20,948,000 Repurchase Agreement with
State Street Bank & Trust Co.
Dated 12/31/99 due 01/03/00
with a maturity value of $20,952,364
collateralized by $22,200,000
Fannie Mae Discount Note, due
08/17/00 (Market Value of
collateral is $21,367,500)
(Cost $20,948,000) 2.500% 01/03/00 $ 20,948,000
------------
Total Investments (Cost $188,408,697) 106.15% (a) $247,547,112
Liabilities in excess of other assets (6.15%) (14,339,076)
------------
Net Assets 100% $233,208,036
============
</TABLE>
(a) Book cost and tax cost are equal.
(b) Non-income producing security.
See Accompanying Notes to Financial Statements
24
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Global Equity Fund
Number of Shares Value
(% of net assets) Security Description (Note 1)
- --------------------------------------------------------------------------------
Equities 92.72%
Brazil 0.74%
40,000 Telesp Celular Participacoes S.A. (ADR)
(Telecommunication Equipment & Services) $ 1,695,000
------------
1,695,000
Canada 1.91%
43,000 Nortel Networks Corporation
(Telecommunication Equipment & Services) 4,343,000
------------
4,343,000
Denmark 1.59%
50,000 Navision Software A.S.
(Computers & Software) 3,620,295 (b)
------------
3,620,295
Finland 5.75%
52,000 Comptel Oyj (Computers & Software) 3,658,371 (b)
400,000 Jot Automation Group Oyj (Machines & Tools) 3,727,194
30,000 Nokia Corporation (ADR)
(Telecommunication Equipment & Services) 5,700,000
------------
13,085,565
France 4.96%
28,000 Canal Plus (Media) 4,075,736
7,900 Havas Advertising (Advertising) 3,366,260
25,000 ST Microelectronics NV (Electronics) 3,848,076
------------
11,290,072
Germany 2.91%
33,800 Epcos AG (ADR) (Electronics) 2,524,438 (b)
67,300 Software AG (Computers & Software) 4,101,575 (b)
------------
6,626,013
Hong Kong 2.74%
850,000 Bank of East Asia (Finance & Insurance) 2,367,338
800,000 Smartone Telecommunications
(Telecommunication Equipment & Services) 3,859,265
------------
6,226,603
Ireland 1.04%
94,686 Bank of Ireland (Finance & Insurance) 753,514
55,000 Elan Corporation PLC (ADR) (Pharmaceuticals) 1,622,500(b)
------------
2,376,014
See Accompanying Notes to Financial Statements
25
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Global Equity Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Value
(% of net assets) Security Description (Note 1)
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Italy 2.86%
960,000 Seat-Pagine Gialle SPA (Media) $ 3,152,601
300,000 Tim SpA (Telecommunication Equipment & Services) 3,351,453
------------
6,504,054
Japan 13.49%
60,000 Asatsu-DK Incorporated (Advertising) 4,052,070
7,000 Benesse Corporation (Commercial Services) 1,685,426
31,000 Canon Incorporated (Office/Business Equipment) 1,231,868
15,000 Murata Manufacturing Company Limited (Electronics) 3,523,539
29,800 Nippon Telegraph & Telephone Corporation
(Telecommunication Equipment & Services) 2,566,525
53 NTT Mobile Communications
(Telecommunication Equipment & Services) 2,038,661
120,000 Sailor Pen Company Limited (Office/Business Equipment) 2,466,477
26,000 Seven - Eleven Japan (Retail) 4,122,542
6,800 Softbank Corporation (Computers & Software) 6,509,153
20,000 Takefuji Corporation (Finance & Insurance) 2,503,670
------------
30,699,931
Mexico 2.77%
43,000 Grupo Televisa S.A. (GDR) (Media) 2,934,750 (b)
30,000 Telefonos De Mexico (ADR)
(Telecommunication Equipment & Services) 3,375,000
------------
6,309,750
Netherlands 1.72%
8,065 Aegon NV (Finance & Insurance) 779,118
92,500 Wolters Kluwer CVA (Media) 3,130,843
------------
3,909,961
Phillipines 1.09%
2,000,000 ABS-CBN Broadcasting Corporation (Media) 2,481,389 (b)
------------
2,481,389
Singapore 1.69%
375,000 Natsteel Electronics Limited (Electronics) 1,981,387
86,000 Singapore Press Holdings (Media) 1,864,065
------------
3,845,452
South Korea 1.71%
52,000 Korea Telecom Corporation (ADR)
(Telecommunication Equipment & Services) 3,887,000
------------
3,887,000
</TABLE>
See Accompanying Notes to Financial Statements
26
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Global Equity Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Value
(% of net assets) Security Description (Note 1)
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
Spain 1.12%
101,936 Telefonica S.A. (Telecommunication Equipment & Services) $ 2,546,593 (b)
------------
2,546,593
Sweden 7.14%
65,000 Ericsson LM (Telecommunication Equipment & Services) 4,178,517
40,000 HIQ International AB (Computers & Technology) 2,561,993 (b)
130,000 Icon Medialab International AB (Computers & Technology) 4,522,271 (b)
30,000 Information Highway AB (Computers & Technology) 4,971,207
------------
16,233,988
Switzerland 0.30%
1,200 Zurich Allied AG (Finance & Insurance) 684,293
------------
684,293
Taiwan 1.19%
60,000 Taiwan Semiconductor (ADR) (Electronics) 2,700,000 (b)
------------
2,700,000
United Kingdom 7.49%
90,000 COLT Telecom Group PLC
(Telecommunication Equipment & Services) 4,646,248 (b)
61,000 Pearson PLC (Media) 1,985,446
215,000 Reuters Group PLC (Media) 2,986,690
57,047 Royal Bank Of Scotland Group (Finance & Insurance) 1,009,942
381,817 Telewest Communications PLC (Media) 2,026,021 (b)
382,025 Vodafone Airtouch PLC (ADR)
(Telecommunication Equipment & Services) 1,904,263
50,000 Vodafone Airtouch PLC (ADR)
(Telecommunication Equipment & Services) 2,475,001
------------
17,033,611
United States 28.51%
26,000 America Online Incorporated (Computers & Software) 1,961,375 (b)
35,000 Automatic Data Processing (Computers & Software) 1,885,625
57,000 Bank Of New York Company Incorporated (Finance & Insurance) 2,280,000
46,350 Cisco Systems Incorporated (Computers & Technology) 4,965,243 (b)
44,000 Clear Channel Communications (Media) 3,927,000 (b)
100,000 CVS Corporation (Retail) 3,993,750
18,000 Dell Computer Corporation (Computers & Technology) 918,000 (b)
30,000 EMC Corp (Computers & Technology) 3,277,500 (b)
60,000 Gillette Company (Health Care & Personal Care) 2,471,250
47,250 Home Depot Incorporated (Retail) 3,239,578
20,000 Illinois Tool Works (Miscellaneous Manufacturing) 1,351,250
39,000 Intel Corporation (Electronics) 3,210,188
</TABLE>
See Accompanying Notes to Financial Statements
27
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Global Equity Fund (cont'd)
<TABLE>
<CAPTION>
Number of Shares Value
(% of net assets) Security Description (Note 1)
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
United States (cont'd)
22,000 JDS Uniphase Corporation
(Telecommunication Equipment & Services) $ 3,548,875 (b)
38,000 Linens 'n Things Incorporated (Retail) 1,125,750 (b)
30,000 Lucent Technologies Incorporated
(Telecommunication Equipment & Services) 2,244,375
75,000 MCI Worldcom Incorporated
(Telecommunication Equipment & Services) 3,979,687 (b)
56,000 McLeodusa Incorporated
(Telecommunication Equipment & Services) 3,297,000 (b)
42,000 Medtronic Incorporated (Health Care & Personal Care) 1,530,375
34,000 Nextel Communications Incorporated
(Telecommunication Equipment & Services) 3,506,250 (b)
59,200 Sun Microsystems Incorporated (Computers & Technology) 4,584,300 (b)
50,000 Tellabs Incorporated (Telecommunication Equipment &
Services) 3,209,375 (b)
60,000 Time Warner Incorporated (Media) 4,346,250
------------
64,852,996
------------
Total Equities (Cost $128,037,450) $210,951,580
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Short-Term Investments 5.82%
$13,248,000 Repurchase Agreement with
State Street Bank & Trust Co.
Dated 12/31/99 due 01/03/00
with a maturity value of $13,250,760
collateralized by $14,040,000
Fannie Mae Discount Note, due
08/17/00 (Market Value of
collateral is $13,513,500)
(Cost $13,248,000) 2.500% 01/03/00 $ 13,248,000
------------
Total Investments (Cost $141,285,450) 98.54% (a) $224,199,580
Other assets, less liabilities 1.46% 3,319,286
------------
Net Assets 100% $227,518,866
============
</TABLE>
(a) Book cost and tax cost are equal.
(b) Non-income producing security.
Abbreviations:
ADR - American Depository Receipt
GDR - Global Depository Receipt
See Accompanying Notes to Financial Statements
28
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Global Equity Fund (cont'd)
The fund's Statement of Investments as of December 31, 1999, was concentrated in
the following industries:
Percentage of Net Assets*
-----------------------------------
Short-Term
Equity & Other Total
-------- ------------- ----------
Advertising 3.26% 3.26%
Commercial Services 0.74% 0.74%
Computers & Software 20.89% 20.89%
Electronics 7.82% 7.82%
Finance & Insurance 4.56% 4.56%
Health Care & Personal Care 1.76% 1.76%
Machines & Tools 1.64% 1.64%
Media 14.47% 14.47%
Miscellaneous Manufacturing 0.59% 0.59%
Office/Business Equipment 1.63% 1.63%
Pharmaceuticals 0.71% 0.71%
Retail 5.49% 5.49%
Telecommunication Equipment & Services 29.16% 29.16%
Cash & Other 7.28% 7.28%
-------- ------------- ----------
92.72% 7.28% 100.00%
*Percentages are based on net assets of $227,518,866.
See Accompanying Notes to Financial Statements
29
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Income Fund
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Corporate Bonds 62.79%
Commercial Services 3.82%
$ 1,000,000 Primark Corporation 9.250 12/15/08 $ 933,750
900,000 United Rentals Incorporated 9.500 06/01/08 875,250
600,000 United Rentals Incorporated 9.250 01/15/09 577,500
------------
2,386,500
Computers & Software 1.49%
1,000,000 Apple Computer Incorporated 6.500 02/15/04 933,750
------------
933,750
Construction & Housing 3.93%
1,000,000 Toll Corporation 8.750 11/15/06 980,000
1,500,000 US Home Corporation 7.950 03/01/01 1,473,750
------------
2,453,750
Finance & Insurance 19.52%
680,000 Abbey National PLC 6.700 06/29/49 618,350
1,320,000 Abbey National PLC 7.350 10/29/49 1,261,034
100,000 Bank One Corporation 7.250 08/15/04 98,779
250,000 Countrywide Capital 8.000 12/15/26 222,791
500,000 Credit Suisse First Boston - 144A 7.900 05/01/07 466,166
2,496,247 DLJ Commercial Mortgage Corporation 6.110 12/10/07 2,360,796
680,754 DLJ Mortgage Acceptance Corporation 6.614 05/25/09 649,482
1,250,000 First Republic Bank 7.750 09/15/12 1,106,530
750,000 First Union Lehman Brothers Mortgage Trust 6.650 12/18/07 715,665
500,000 Keycorp Institutional Capital 7.826 12/01/26 466,748
700,000 Lehman Brothers Holdings 8.050 01/15/19 663,721
650,000 Lehman Brothers Holdings 7.730 10/15/23 571,835
800,000 Lehman Brothers Incorporated 7.360 12/15/03 795,912
50,000 MBIA Incorporated 9.000 02/15/01 51,184
1,500,000 Morgan Stanley Capital Incorporated 6.550 12/15/07 1,423,695
750,000 Williams Scotsman Incorporated 9.875 06/01/07 725,625
------------
12,198,313
Food & Beverages 2.81%
1,000,000 Kroger Company - 144A 6.340 06/01/01 989,831
750,000 Smiths Food And Drug Centers Incorporated 8.640 07/02/12 768,833
------------
1,758,664
Health Care 2.52%
50,000 Kaiser Foundation Health Plan 9.000 11/01/01 51,778
1,500,000 Universal Health Services Incorporated 8.750 08/15/05 1,526,250
------------
1,578,028
</TABLE>
See Accompanying Notes to Financial Statements
30
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Income Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hotels 2.24%
$ 1,550,000 John Q Hammons Hotels Incorporated 8.875 02/15/04 $ 1,400,813
------------
1,400,813
Media 9.55%
170,901 Adelphia Communications Corporation 9.500 02/15/04 167,910
1,000,000 Chancellor Media Corporation 8.750 06/15/07 1,008,750
500,000 Chancellor Media Corporation 8.000 11/01/08 501,250
250,000 Imax Corporation 7.875 12/01/05 234,375
500,000 Jones Intercable Incorporated 9.625 03/15/02 525,625
750,000 Jones Intercable Incorporated 7.625 04/15/08 744,375
500,000 Rogers Communications Incorporated 9.125 01/15/06 501,250
1,400,000 Time Warner Incorporated 9.125 01/15/13 1,533,205
750,000 Turner Broadcasting Systems Incorporated 8.400 02/01/24 755,024
------------
5,971,764
Real Estate 4.14%
1,000,000 Property Trust of America 6.875 02/15/08 951,765
500,000 Security Capital Pacific Trust 7.900 02/15/16 444,608
1,300,000 Weingarten Realty Investors 6.880 06/25/27 1,193,388
------------
2,589,761
Retail 1.24%
750,000 Buhrmann US Incorporated 12.250 11/01/09 778,125
------------
778,125
Telecommunications Equipment & Services 8.59%
1,000,000 Cencall Communications Corporation 10.125 01/15/04 1,031,250
1,000,000 Global Crossing Holdings Limited - 144A 9.125 11/15/06 988,750
1,000,000 IXC Communications Incorporated 9.000 04/15/08 1,010,000
1,000,000 Nextel Communications Incorporated 1.000 10/31/07 716,250
2,000,000 Qwest Communications International
Incorporated 1.000 10/15/07 1,622,500
------------
5,368,750
Transportation 2.94%
897,752 Federal Express Corporation 6.720 01/15/22 828,397
1,000,000 Railworks Corporation 11.500 04/15/09 1,012,500
------------
1,840,897
------------
Total Corporate Bonds Cost ($40,491,550) $ 39,259,115
</TABLE>
See Accompanying Notes to Financial Statements
31
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Income Fund (cont'd)
Number of Shares Value
(% of net assets) Security Description (Note 1)
- -------------------------------------------------------------------------------
Convertible Preferred Stock 3.20%
Commercial Services 0.38%
7,200 United Rentals Incorporated - 144A $ 234,900
------------
234,900
Finance & Insurance 0.74%
500 First Republic Preferred Capital
Corporation - 144A
Manadatory exchange into preferred
shares under certain circumstances 460,000
------------
460,000
Real Estate 2.08%
10,000 Equity Office Properties Trust --
Callable into common stock 385,000
59,200 Felcor Lodging Trust Incorporated --
Callable into common stock 917,600
------------
1,302,600
------------
Total Convertible Preferred Stock ($2,505,850) $ 1,997,500
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Government Agencies 24.72%
Fannie Mae 16.65%
$ 1,000,000 Fannie Mae 6.330 10/02/02 $ 983,867
2,000,000 Fannie Mae 6.140 03/24/03 1,944,131
1,725,000 Fannie Mae 6.500 08/15/04 1,701,148
2,000,000 Fannie Mae 6.000 05/15/08 1,872,351
5,450,000 Fannie Mae 0.000 10/09/19 1,359,307
1,898,505 Fannie Mae 6.500 12/01/28 1,792,461
296,280 Fannie Mae - REMIC 8.000 07/05/06 300,592
446,847 Fannie Mae - REMIC 7.000 04/25/21 446,726
------------
10,400,583
Freddie Mac 6.65%
4,800,000 Freddie Mac 5.550 11/15/27 4,156,799
------------
4,156,799
</TABLE>
See Accompanying Notes to Financial Statements
32
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Citizens Income Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Government National Mortgage Association 1.42%
$ 67,336 Government National Mortgage Association 7.000 04/15/07 $ 66,914
101,787 Government National Mortgage Association 6.000 08/15/08 98,565
77,325 Government National Mortgage Association 9.000 05/15/09 80,602
12,567 Government National Mortgage Association 9.000 11/15/16 13,101
28,648 Government National Mortgage Association 9.000 02/15/17 29,864
31,967 Government National Mortgage Association 9.500 03/15/17 33,868
14,272 Government National Mortgage Association 9.500 09/15/17 15,115
5,078 Government National Mortgage Association 9.000 04/15/21 5,291
9,794 Government National Mortgage Association 8.500 06/15/21 10,047
32,319 Government National Mortgage Association 8.000 12/15/21 32,617
1,575 Government National Mortgage Association 9.000 10/15/20 1,642
9,426 Government National Mortgage Association 9.000 11/15/20 9,824
14,887 Government National Mortgage Association 7.000 03/15/22 14,666
75,498 Government National Mortgage Association 8.000 05/15/22 76,200
33,992 Government National Mortgage Association 8.000 09/15/22 34,308
76,123 Government National Mortgage Association 7.000 10/15/22 74,366
151,200 Government National Mortgage Association 7.000 10/15/22 148,157
147,845 Government National Mortgage Association 7.000 06/15/23 144,147
------------
889,294
------------
Total U.S. Government Agencies ($16,630,449) $ 15,446,676
Short-Term Investments 8.06%
650,000 Fannie Mae Discount Note 5.800 01/13/00 648,743
3,550,000 Freddie Mac Discount Note 5.600 01/10/00 3,545,030
850,000 FDX Corporation Discount Note 6.500 01/19/00 847,238
------------
Total Short-Term Investments (Cost $5,041,011) 5,041,011
------------
Total Investments (Cost $64,668,859) 98.77% (a) $ 61,744,302
Other assets, less liabilities 1.23% 769,166
------------
Net Assets 100% $ 62,513,468
============
</TABLE>
(a) Book cost and tax cost are equal.
See Accompanying Notes to Financial Statements
33
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Working Assets Money Market Fund
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Certificates of Deposit 8.02%
$ 100,000 City National Bank of New Jersey 4.590% 03/18/00 $ 100,000 (c)
1,000,000 Deutsche Bank AG New York 5.900% 01/18/00 1,000,004
1,000,000 Deutsche Bank AG New York 6.200% 10/18/00 999,547
100,000 Independence Federal Savings Bank 5.000% 03/31/00 100,000 (c)
2,000,000 Rabobank Nederland 5.300% 03/06/00 2,000,203
1,500,000 Rabobank Nederland 5.180% 03/28/00 1,499,932
1,323,000 Rabobank Nederland 5.600% 06/14/00 1,322,752
100,000 Self Help Credit Union 5.520% 12/16/00 100,000 (c)
100,000 South Shore Bank Of Chicago 5.750% 12/18/00 100,000 (c)
2,000,000 UBS AG Stamford 5.250% 03/10/00 1,996,990
1,000,000 UBS AG Stamford 5.280% 05/19/00 997,218
------------
Total Certificates of Deposit (Cost $10,216,646) $ 10,216,646
Commercial Paper 64.56%
1,504,000 Abbey National North America 5.980% 01/14/00 1,500,751
1,100,000 Abbey National North America 5.900% 03/06/00 1,088,282
1,000,000 American Express Credit Corporation 6.450% 01/05/00 999,283
1,500,000 American Express Credit Corporation 5.900% 01/12/00 1,497,295
915,000 American General Finance Corporation 5.900% 02/23/00 907,052
1,000,000 American General Corporation 6.080% 02/11/00 993,076
1,000,000 AON Corporation 5.900% 01/19/00 997,050
1,000,000 AON Corporation 5.950% 01/27/00 995,703
1,500,000 AON Corporation 5.950% 02/02/00 1,492,066
1,000,000 Bank Of New York 5.750% 02/03/00 994,730
1,000,000 Bellsouth Capital Funding Corporation 5.600% 01/27/00 995,956
263,000 Bellsouth Telecomm Incorporated 5.300% 01/18/00 262,341
500,000 Bellsouth Telecomm Incorporated 5.300% 01/26/00 498,160
1,100,000 Bellsouth Telecomm Incorporated 5.830% 02/22/00 1,090,737
1,177,000 Bellsouth Telecomm Incorporated 5.830% 02/24/00 1,166,707
1,789,000 Bellsouth Telecomm Incorporated 5.850% 02/25/00 1,773,010
1,196,000 Campbell Soup Company 5.870% 01/21/00 1,192,100
2,000,000 Campbell Soup Company 5.900% 03/03/00 1,979,677
1,934,000 Canadian Wheat Board 5.580% 02/09/00 1,922,308
1,500,000 The Coca Cola Company 5.800% 01/11/00 1,497,582
980,000 The Coca Cola Company 5.600% 01/21/00 976,951
1,000,000 The Coca Cola Company 5.250% 01/26/00 996,354
909,000 The Coca Cola Company 5.250% 01/31/00 905,023
1,000,000 The Coca Cola Company 5.860% 02/15/00 992,675
366,000 The Coca Cola Company 5.830% 03/21/00 361,258
357,000 Consolidated Natural Gas Company 6.300% 01/14/00 356,188
1,000,000 Consolidated Natural Gas Company 6.100% 01/27/00 995,595
1,000,000 Countrywide Home Loans Incorporated 6.570% 01/04/00 999,453
1,000,000 Deutsche Bank Financial 6.060% 01/19/00 996,970
</TABLE>
See Accompanying Notes to Financial Statements
34
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Working Assets Money Market Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Commercial Paper (cont'd)
$ 1,312,000 Deutsche Bank Financial 5.900% 02/01/00 $ 1,305,334
1,200,000 First Data Corporation 6.000% 01/25/00 1,195,200
211,000 First Data Corporation 6.050% 01/25/00 210,149
1,500,000 General Mills Incorporated 5.870% 01/05/00 1,499,021
500,000 General Mills Incorporated 6.100% 01/10/00 499,238
2,619,000 General Mills Incorporated 5.650% 01/24/00 2,609,545
1,000,000 Goldman Sachs Group 6.000% 01/28/00 995,500
1,500,000 Goldman Sachs Group 5.980% 02/11/00 1,489,783
1,500,000 Goldman Sachs Group 5.920% 03/10/00 1,482,980
1,000,000 Goldman Sachs Group 5.910% 03/22/00 986,703
500,000 Hasbro Incorporated 5.930% 01/03/00 499,835
1,000,000 Hershey Foods Corporation 5.760% 02/04/00 994,560
1,000,000 Hershey Foods Corporation 5.730% 02/10/00 993,633
1,000,000 Hershey Foods Corporation 5.790% 02/11/00 993,406
2,000,000 Household Financial Corporation 5.920% 01/18/00 1,994,408
1,000,000 Household Financial Corporation 5.930% 01/18/00 997,200
2,000,000 John Deere Capital Corporation 5.940% 01/10/00 1,997,030
2,000,000 John Hancock Capital Corp 5.930% 01/14/00 1,995,716
1,799,000 Kellogg Company 5.870% 03/28/00 1,773,489
2,000,000 Lucent Technology Incorporated 5.750% 02/16/00 1,985,305
1,000,000 Lucent Technology Incorporated 5.750% 02/18/00 992,333
1,000,000 Lucent Technology Incorporated 5.820% 03/08/00 989,168
1,000,000 Lucent Technology Incorporated 5.860% 03/24/00 986,489
754,000 Lucent Technology Incorporated 5.950% 03/31/00 742,784
2,000,000 Mid States Corporation
Federal Credit Union 6.150% 01/13/00 1,995,900
1,000,000 Nationwide Anglia Building Society 5.850% 02/07/00 993,988
2,500,000 Nationwide Anglia Building Society 5.900% 02/07/00 2,484,840
750,000 Nationwide Anglia Building Society 5.920% 03/07/00 741,860
1,500,000 Nationwide Anglia Building Society 5.750% 05/04/00 1,470,291
1,200,000 St. Paul Companies Incorporated 5.900% 02/24/00 1,189,380
1,500,000 Santander Finance 6.025% 01/28/00 1,493,221
1,463,000 Santander Finance 6.050% 01/28/00 1,456,362
350,000 Times Mirror Company 5.900% 01/21/00 348,853
1,549,000 UBS Finance Delaware Incorporated 4.500% 01/04/00 1,548,420
1,000,000 UBS Finance Delaware Incorporated 5.730% 01/21/00 996,817
1,000,000 Xerox Capital 5.950% 01/20/00 996,860
1,200,000 Xerox Capital 5.950% 01/31/00 1,194,050
1,200,000 Xerox Capital 5.900% 02/14/00 1,191,347
1,000,000 Teachers Insurance & Annuity Association 5.850% 02/28/00 990,575
1,500,000 Teachers Insurance & Annuity Association 5.850% 02/29/00 1,485,619
------------
Total Commercial Paper (Cost $82,211,525) $ 82,211,525
</TABLE>
See Accompanying Notes to Financial Statements
35
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Working Assets Money Market Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Corporate Notes 8.07%
$ 1,000,000 Abbey National Treasury Services PLC 5.710% 07/28/00 $ 999,781
2,500,000 American General Finance Corporation 8.000% 02/15/00 2,507,081
1,240,000 Bank One Corporation 6.250% 09/01/00 1,240,449
1,600,000 First Chicago Corporation 6.250% 07/21/00 1,600,683
1,000,000 First Chicago Corporation 9.875% 08/15/00 1,021,888
1,510,000 Household Financial Corporation 6.375% 06/30/00 1,511,909
1,400,000 Norwest Corporation 6.000% 03/15/00 1,402,084
------------
Total Corporate Notes (Cost $10,283,875) $ 10,283,875
Variable Rate Demand Notes 12.72%
555,000 City of Bardstown Kentucky, LOC:
Comerical Bank 6.550% 06/01/24 555,000
4,820,000 Illinois Health Facilities Authority, INSUR:
MBIA, SBPA: Credit Suisse First Boston 6.500% 07/01/27 4,820,000
2,500,000 Johnson City Medical Center Hospital
Incorporated, INSUR: MBIA, SBPA:
Credit Suisse First Boston 6.500% 07/01/02 2,500,000
300,000 The Community Redevelopment Agency
of the City of LA, CA, INSUR: FSA, SBPA:
Credit Suisse First Boston 6.600% 12/01/18 300,000
680,000 Pelican Capital, LOC: Huntington Bank 6.600% 04/01/28 680,000
3,000,000 Redding Life Care LLC, LOC:
Paribas, New York 6.500% 10/01/05 3,000,000
4,345,000 County of Riverside, CA, Certificates of
Participation, LOC: Commerzbank AG 6.500% 11/01/27 4,345,000
------------
Total Variable Rate Demand Notes (Cost $16,200,000) $ 16,200,000
</TABLE>
See Accompanying Notes to Financial Statements
36
<PAGE>
Statement of Investments -- December 31, 1999 (unaudited)
Working Assets Money Market Fund (cont'd)
<TABLE>
<CAPTION>
Par Amount Maturity Value
($ Denominated) Security Description Coupon Date (Note 1)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Repurchase Agreements 4.92%
$ 6,271,000 Repurchase Agreement with
State Street Bank & Trust Co.
Dated 12/31/99 due 01/03/00
with a maturity value of $6,272,306
collaterallized by $6,580,000 Federal
Home Loan Bank Discount Note,
due 04/07/00 (Market value of
collateral is $6,399,050)
(Cost $6,271,000) 2.500% 01/03/00 $ 6,271,000
------------
Total Investments (Cost $125,183,046) 98.29% (a)(b) $125,183,046
Other Assets, less liabilities 1.71% 2,184,274
------------
Net Assets 100% $127,367,320
============
</TABLE>
(a) Investments are valued using the amortized cost method.
(b) Book cost and tax cost are equal.
(c) These securities are appraised at their fair value as determined in good
faith under the general supervision of the Trust's Board of Trustees.
See Accompanying Notes to Financial Statements
37
<PAGE>
Statement of Assets and Liabilities -- December 31, 1999 (unaudited)
<TABLE>
<CAPTION>
Citizens Citizens
Index Emerging Growth
Fund Fund
-------------- ----------------
<S> <C> <C>
ASSETS
Investments (see accompanying schedule):
Investments at cost $ 464,009,411 $ 167,460,697
Repurchase Agreements 4,974,000 20,948,000
Net unrealized appreciation/(depreciation) 345,507,019 59,138,415
------------- -------------
Total investments at value 814,490,430 247,547,112
Cash 880 925
Foreign currencies (cost $0, $0, $449,682, $0, $0) -- --
Receivable for:
Interest 345 1,455
Dividends and withholding tax reclaims 374,775 48,311
Fund shares sold 2,017,487 1,074,497
Investment securities sold 477,000 6,747,006
Due from Investment Adviser 92,300 572
Unamortized organizational costs 16,954 --
Other assets 32,913 9,271
------------- -------------
Total Assets 817,503,084 255,429,149
------------- -------------
LIABILITIES
Payable for investment securities purchased -- 21,105,094
Payable for fund shares repurchased 795,031 495,277
Distributions payable -- --
Unrealized depreciation on foreign
currency contracts purchased -- --
Payable for investment management fees 918,451 449,408
Payable for administrative and shareholder
service fees 296,695 35,396
Payable for distribution expenses 138,552 42,523
Payable for Trustees' fees and expenses 1,759 1,006
Other accrued expenses 509,215 92,409
------------- -------------
Total Liabilities 2,659,703 22,221,113
------------- -------------
NET ASSETS $ 814,843,381 $ 233,208,036
============= =============
Standard shares
Net assets $ 681,949,323 $ 221,903,109
Shares outstanding 20,748,185 8,176,547
Net asset value, offering and redemption
price per share $ 32.87 $ 27.14
------------- -------------
Institutional Class shares
Net assets $ 132,894,058 $ 11,304,927
Shares outstanding 4,974,664 416,226
Net asset value, offering and redemption
price per share $ 26.71 $ 27.16
------------- -------------
Net assets consist of:
Paid-in capital $ 466,030,411 $ 148,357,168
Accumulated net investment income/(loss) (2,131,244) (960,343)
Accumulated net realized gain/(loss) on
investments and foreign currency transactions 5,437,195 26,672,796
Net unrealized appreciation/(depreciation) on
investments and foreign currencies 345,507,019 59,138,415
------------- -------------
$ 814,843,381 $ 233,208,036
============= =============
</TABLE>
See Accompanying Notes to Financial Statements
38
<PAGE>
Statement of Assets and Liabilities -- December 31, 1999 (unaudited)
Citizens Citizens Working Assets
Global Equity Income Money Market
Fund Fund Fund
-------------- --------------- ---------------
$ 128,037,450 $ 64,668,859 $ 118,912,046
13,248,000 -- 6,271,000
82,914,130 (2,924,557) --
------------- -------------- -------------
224,199,580 61,744,302 125,183,046
1,798 46,938 1,783,877
450,265 -- --
920 920,582 665,885
89,448 28,860 --
1,851,996 35,452 364,755
2,705,698 -- --
1,548 8,125 25,113
-- -- 3,073
7,003 3,191 13,380
------------- -------------- -------------
229,308,256 62,787,450 128,039,129
------------- -------------- -------------
543,307 -- --
715,479 48,755 381,265
-- 54,297 497
7,203 -- --
397,237 103,105 113,189
30,358 13,184 30,639
40,961 13,320 17,817
1,136 1,899 1,448
53,709 39,422 126,954
------------- -------------- -------------
1,789,390 273,982 671,809
------------- -------------- -------------
$ 227,518,866 $ 62,513,468 $ 127,367,320
============= ============== =============
$ 222,553,078 $ 62,513,468 $ 104,715,106
7,219,689 6,103,060 104,838,329
$ 30.83 $ 10.24 $ 1.00
------------- -------------- -------------
$ 4,965,788 $ 22,652,214
160,993 22,652,214
$ 30.84 $ 1.00
------------- -------------- -------------
$ 138,796,845 $ 65,174,116 $ 127,367,320
(1,382,773) -- --
7,199,107 263,909 --
82,905,687 (2,924,557) --
------------- -------------- -------------
$ 227,518,866 $ 62,513,468 $ 127,367,320
============= ============== =============
See Accompanying Notes to Financial Statements
39
<PAGE>
Statement of Operations -- Six Months Ending December 31, 1999 (unaudited)
<TABLE>
<CAPTION>
Citizens Citizens
Index Emerging Growth
Fund Fund
-------------- ----------------
<S> <C> <C>
Investment Income
Interest $ 47,543 $ 297,293
Dividends (net of withholding taxes) 2,695,818 161,030
------------- -------------
Total investment income 2,743,361 458,323
------------- -------------
Expenses
Investment management fees 1,774,368 831,065
Transfer agent fees 580,805 169,923
Custody and accounting fees 124,299 41,763
Distribution expenses 749,529 203,705
Administrative and shareholder service fees 1,639,688 139,460
Legal and audit fees 73,557 17,859
Registration fees 33,259 14,717
Trustees' fees and expenses 9,430 8,677
Printing and postage 49,697 16,195
Dues and insurance 64,998 3,838
Other expenses 9,443 4,869
Amortization of organization costs 7,832 --
------------- -------------
Total expenses 5,116,905 1,452,071
------------- -------------
Reimbursement/Waiver by Adviser (242,300) (33,405)
------------- -------------
Net expenses 4,874,605 1,418,666
------------- -------------
Net investment income/(loss) $ (2,131,244) $ (960,343)
------------- -------------
Realized and Unrealized Gain/(Loss) on Investments
Realized gain/(loss) on investments 14,005,551 39,087,521
Realized gain/(loss) on foreign currency transactions -- --
Increase/(decrease) in unrealized appreciation/
(depreciation) on investments 87,144,714 33,571,743
Increase/(decrease) in unrealized appreciation/
(depreciation) on foreign currencies -- --
------------- -------------
Net realized and unrealized gain/(loss)
on investments and foreign currencies 101,150,265 72,659,264
------------- -------------
Net increase in net assets resulting from operations $ 99,019,021 $ 71,698,921
============= =============
</TABLE>
See Accompanying Notes to Financial Statements
40
<PAGE>
Statement of Operations -- Six Months Ending December 31, 1999 (unaudited)
Citizens Citizens Working Assets
Global Equity Income Money Market
Fund Fund Fund
-------------- --------------- ---------------
$ 306,714 $ 2,185,009 $ 3,516,120
230,466 118,546 --
------------- -------------- -------------
537,180 2,303,555 3,516,120
------------- -------------- -------------
636,100 205,434 227,863
132,779 58,680 178,994
71,651 26,392 41,290
157,265 79,013 107,328
98,520 53,595 121,155
17,090 13,482 17,181
15,881 10,239 23,635
8,806 9,569 9,119
10,123 6,799 16,534
2,889 2,297 1,596
7,878 901 2,502
-- -- 5,413
------------- -------------- -------------
1,158,982 466,401 752,610
------------- -------------- -------------
(1,548) (8,125) (25,113)
------------- -------------- -------------
1,157,434 458,276 727,497
------------- -------------- -------------
$ (620,254) $ 1,845,279 $ 2,788,623
------------- -------------- -------------
11,965,862 316,715 --
(202,538) -- --
59,556,519 (1,831,627) --
2,396 -- --
------------- -------------- -------------
71,322,239 (1,514,912) --
------------- -------------- -------------
$ 70,701,985 $ 330,367 $ 2,788,623
============= ============== =============
See Accompanying Notes to Financial Statements
41
<PAGE>
Statement of Changes in Net Assets -- December 31, 1999
<TABLE>
<CAPTION>
Citizens Citizens
Index Fund Emerging Growth Fund
------------------------------------- -------------------------------------
For the For the For the For the
six months ended year ended six months ended year ended
December 31, 1999 June 30, 1999 December 31, 1999 June 30, 1999
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Operations
Net investment
income/(loss) $ (2,131,244) $ (2,900,743) $ (960,343) $ (1,189,405)
Realized gain/(loss)
on investments and
foreign currencies 14,005,551 37,531,851 39,087,521 23,103,745
Net change in unrealized
appreciation/(depreciation)
on investments and
foreign currencies 87,144,714 102,701,896 33,571,743 11,531,672
------------- ------------- ------------- -------------
Net increase in net assets
resulting from operations 99,019,021 137,333,004 71,698,921 33,446,012
Distributions to shareholders:
From net investment
income-Standard -- -- -- --
From net realized gain on
investments-Standard (35,317,136) (4,955,929) (31,297,231) (9,016,170)
From net investment
income-Institutional -- -- -- N/A
From net realized gain on
investments-Institutional (8,385,302) (606,104) (1,626,292) N/A
------------- ------------- ------------- -------------
Total distributions (43,702,438) (5,562,033) (32,923,523) (9,016,170)
Increase/(decrease) in net
assets resulting from
capital share transactions 82,536,119 172,150,908 58,295,672 23,815,566
------------- ------------- ------------- -------------
Total increase/(decrease)
in net assets 137,852,702 303,921,879 97,071,070 48,245,408
Net Assets
Beginning of year 676,990,679 373,068,800 136,136,966 87,891,558
------------- ------------- ------------- -------------
End of year $ 814,843,381 $ 676,990,679 $ 233,208,036 $ 136,136,966
============= ============= ============= =============
Undistributed net
investment income/
(accumulated net
investment loss) $ (2,131,244) -- $ (960,343) --
------------- ------------- ------------- -------------
</TABLE>
See Accompanying Notes to Financial Statements
42
<PAGE>
Statement of Changes in Net Assets -- December 31, 1999
<TABLE>
<CAPTION>
Citizens Citizens Working Assets
Global Equity Fund Income Fund Money Market Fund
- ----------------------------------- --------------------------------- ---------------------------------
For the For the For the For the For the For the
six months ended year ended six months ended year ended six months ended year ended
December 31, 1999 June 30, 1999 December 31, 1999 June 30, 1999 December 31, 1999 June 30, 1999
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C> <C>
$ (620,254) $ (531,221) $ 1,845,279 $ 3,250,865 $ 2,788,623 $ 5,126,947
11,763,324 1,712,019 316,715 150,138 -- --
59,558,915 11,325,610 (1,831,627) (3,034,149) -- --
------------- ------------- ------------- ------------- ------------- -------------
70,701,985 12,506,408 330,367 366,854 2,788,623 5,126,947
-- -- (1,840,655) (3,223,689) (2,261,044) (4,199,590)
(6,356,149) (1,452,563) (81,880) (130,143) -- --
-- N/A N/A N/A (527,579) (927,357)
(151,385) N/A N/A N/A -- --
------------- ------------- ------------- ------------- ------------- -------------
(6,507,534) (1,452,563) (1,922,535) (3,353,832) (2,788,623) (5,126,947)
72,775,406 30,449,834 1,269,086 14,457,919 (836,168) 6,427,903
------------- ------------- ------------- ------------- ------------- -------------
136,969,857 41,503,679 (323,082) 11,470,941 (836,168) 6,427,903
90,549,009 49,045,330 62,836,550 51,365,609 128,203,488 121,775,585
------------- ------------- ------------- ------------- ------------- -------------
$ 227,518,866 $ 90,549,009 $ 62,513,468 $ 62,836,550 $ 127,367,320 $ 128,203,488
============= ============= ============= ============= ============= =============
$ (1,382,773) $ (762,519) -- $ (4,624) -- --
------------- ------------- ------------- ------------- ------------- -------------
</TABLE>
See Accompanying Notes to Financial Statements
43
<PAGE>
Financial Highlights -- December 31, 1999
<TABLE>
<CAPTION>
Citizens Index Fund -- Standard Shares***
-----------------------------------------------------------------------------------
For the For the For the For the For the From
six months year year year year 03/03/95
ended ended ended ended ended to
12/31/99 06/30/99 06/30/98 06/30/97 06/30/96 06/30/95
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $ 30.52 $ 23.46 $ 18.04 $ 13.41 $ 10.94 $ 10.00
--------- --------- --------- --------- --------- ---------
Income/(loss) from
investment operations
Net investment income/(loss) (0.10) (0.15) (0.07) -- 0.08 0.01
Net gain/(loss) on securities
(both realized and unrealized) 4.24 7.52 6.44 4.78 2.47 0.93
--------- --------- --------- --------- --------- ---------
Total from investment
operations 4.14 7.37 6.37 4.78 2.55 0.94
Less distributions
from net investment income -- -- -- (0.06) (0.03) --
from net realized gains (1.79) (0.31) (0.95) (0.09) (0.05) --
--------- --------- --------- --------- --------- ---------
Total distributions (1.79) (0.31) (0.95) (0.15) (0.08) --
Net asset value, end of period $ 32.87 $ 30.52 $ 23.46 $ 18.04 $ 13.41 $ 10.94
========= ========= ========= ========= ========= =========
Total return 13.79%* 31.58% 36.50% 35.88% 23.41% 9.40%*
Ratios and Supplemental Data
Net assets, end of
period (thousands) $ 681,949 $ 578,286 $ 341,395 $ 211,116 $ 136,980 $ 106,096
Ratio of expenses to average
net assets prior to
reimbursement and/
or fee waivers 1.57%** 1.58% 1.59% 1.59% 1.82% 1.75%**
Ratio of expenses to average
net assets net of
reimbursement and/
or fee waivers 1.49%** 1.58% 1.59% 1.59% 1.79% 1.75%**
Ratio of net income/(loss)
to average net assets (0.72%)** (0.68%) (0.39%) 0.02% 0.68% 0.98%**
Portfolio turnover rate 4.94% 18.04% 13.64% 18.64% 6.44% 64.95%
</TABLE>
* Not annualized
** Annualized.
*** The Citizens Index Fund - Standard shares commenced operations on March 3,
1995.
**** The Citizens Index Fund - Institutional Class shares commenced operations
on January 25, 1996.
See Accompanying Notes to Financial Statements
44
<PAGE>
Financial Highlights - December 31, 1999
Citizens Index Fund - Institutional Class Shares****
--------------------------------------------------------------------------
For the For the For the For the From
six months year year year 01/25/96
ended ended ended ended to
12/31/99 06/30/99 06/30/98 06/30/97 6/30/96
(unaudited)
$ 25.02 $ 19.13 $ 14.84 $ 11.00 $ 10.00
---------- ---------- ---------- ---------- -----------
-- 0.01 0.11 0.08 0.08
3.48 6.19 5.21 3.94 0.92
---------- ---------- ---------- ---------- -----------
3.48 6.20 5.32 4.02 1.00
-- -- (0.08) (0.09) --
(1.79) (0.31) (0.95) (0.09) --
---------- ---------- ---------- ---------- -----------
(1.79) (0.31) (1.03) (0.18) --
$ 26.71 $ 25.02 $ 19.13 $ 14.84 $ 11.00
========== ========== ========== ========== ===========
14.18%* 32.62% 37.38% 36.93% 10.00%*
$ 132,894 $ 98,705 $ 31,673 $ 13,001 $ 7,524
0.75%** 0.83% 0.88% 0.88% 1.01%**
0.74%** 0.83% 0.88% 0.88% 0.98%**
0.03%** 0.05% 0.28% 0.76% 2.37%**
4.94% 18.04% 13.64% 18.64% 6.44%
See Accompanying Notes to Financial Statements
45
<PAGE>
Financial Highlights - December 31, 1999
<TABLE>
<CAPTION>
Citizens Emerging
Growth Fund -
Citizens Emerging Growth Institutional
Fund - Standard Shares Class Shares***
----------------------------------------------------------------------------------- ------------------
For the For the For the For the For the For the From
six months year year year year year 11/1/99
ended ended ended ended ended ended to
12/31/99 06/30/99 06/30/98 06/30/97 06/30/96 06/30/95 12/31/99
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value,
beginning of period $ 21.76 $ 17.55 $ 14.14 $ 14.87 $ 11.87 $ 9.93 $ 25.67
--------- --------- --------- --------- --------- --------- ---------
Income/(loss) from
investment operations
Net investment
income/(loss) (0.12) (0.19) (0.20) (0.16) (0.13) 0.07 (0.02)
Net gain/(loss) on
securities (both
realized and
unrealized) 10.06 6.19 4.61 0.68 4.72 2.18 6.07
--------- --------- --------- --------- --------- --------- ---------
Total from
investment
operations 9.94 6.00 4.41 0.52 4.59 2.25 6.05
Less distributions
from net investment
income -- -- -- -- -- (0.09) --
from net realized
gains (4.56) (1.79) (1.00) (1.25) (1.59) (0.22) (4.56)
--------- --------- --------- --------- --------- --------- ---------
Total distributions (4.56) (1.79) (1.00) (1.25) (1.59) (0.31) (4.56)
Net asset value, end
of period $ 27.14 $ 21.76 $ 17.55 $ 14.14 $ 14.87 $ 11.87 $ 27.16
========= ========= ========= ========= ========= ========= =========
Total return 47.62%* 36.04% 33.05% 4.03% 42.43% 23.24% 25.27%*
Ratios and Supplemental Data
Net assets, end of
period (thousands) $ 221,903 $ 136,137 $ 87,892 $ 60,341 $ 36,409 $ 10,638 $ 11,305
Ratio of expenses
to average net
assets prior to
reimbursement
and/or fee waivers 1.75%** 1.83% 1.96% 2.01% 2.34% 2.93% 1.39%**
Ratio of expenses
to average net
assets net of
reimbursement
and/or fee waivers 1.75%** 1.82% 1.96% 1.99% 2.02% 1.90% 1.30%**
Ratio of net income/
(loss) to average
net assets (1.17%)** (1.20%) (1.37%) (1.32%) (1.64%) 0.53% (0.64%)**
Portfolio turnover rate 86.34% 208.49% 245.30% 228.66% 337.41% 231.30% 86.34%
</TABLE>
* Not annualized
** Annualized.
*** The Citizens Emerging Growth Fund - Institutional Class shares commenced
operations on November 1, 1999.
**** The Citizens Global Equity Fund - Institutional Class shares commenced
operations on November 1, 1999.
See Accompanying Notes to Financial Statements
46
<PAGE>
Financial Highlights - December 31, 1999
<TABLE>
<CAPTION>
Citizens Global
Equity Fund -
Citizens Global Equity Institutional
Fund - Standard Shares Class Shares****
- ------------------------------------------------------------------------------ ------------------
For the For the For the For the For the For the From
six months year year year year year 11/1/99
ended ended ended ended ended ended to
12/31/99 6/30/99 6/30/98 6/30/97 6/30/96 6/30/95 12/31/99
(unaudited) (unaudited)
<S> <C> <C> <C> <C> <C> <C>
$ 20.22 $ 16.95 $ 14.47 $ 11.89 $ 10.69 $ 9.80 $ 23.45
---------- -------- --------- --------- --------- --------- -------
(0.02) (0.12) (0.20) (0.07) (0.10) (0.01) --
11.58 3.86 3.24 2.65 1.43 0.96 8.34
---------- -------- --------- --------- --------- --------- -------
11.56 3.74 3.04 2.58 1.33 0.95 8.34
-- -- -- -- -- -- --
(0.95) (0.47) (0.56) -- (0.13) (0.06) (0.95)
---------- -------- --------- --------- --------- --------- -------
(0.95) (0.47) (0.56) -- (0.13) (0.06) (0.95)
$ 30.83 $ 20.22 $ 16.95 $ 14.47 $ 11.89 $ 10.69 $ 30.84
========== ======== ========= ========= ========= ========= =======
57.56%* 22.34% 21.75% 21.70% 12.52% 9.77% 35.90%*
$ 222,553 $ 90,549 $ 49,045 $ 29,573 $ 15,595 $ 9,503 $ 4,966
1.82%** 1.96% 2.20% 2.33% 2.72% 2.99% 1.61%**
1.82%** 1.96% 2.20% 2.10% 2.55% 2.50% 1.39%**
(0.98%)** (0.88%) (0.76%) (0.70%) (1.01%) 0.00% (0.59%)**
39.14% 64.07% 72.33% 69.34% 85.92% 22.10% 39.14%
</TABLE>
See Accompanying Notes to Financial Statements
47
<PAGE>
Financial Highlights - December 31, 1999
<TABLE>
<CAPTION>
Citizens Income Fund
------------------------------------------------------------------------------
For the For the For the For the For the For the
six months year year year year year
ended ended ended ended ended ended
12/31/99 06/30/99 06/30/98 06/30/97 06/30/96 06/30/95
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $ 10.51 $ 11.03 $ 10.56 $ 10.28 $ 10.38 $ 10.04
Income/(loss) from
investment operations
Net investment income/(loss) 0.30 0.59 0.60 0.67 0.66 0.65
Net gain/(loss) on securities
(both realized and unrealized) (0.26) (0.50) 0.49 0.28 (0.10) 0.36
-------- -------- -------- -------- -------- --------
Total from investment operations 0.04 0.09 1.09 0.95 0.56 1.01
Less distributions
from net investment income (0.30) (0.59) (0.60) (0.67) (0.66) (0.65)
from net realized gains (0.01) (0.02) (0.02) -- -- (0.02)
-------- -------- -------- -------- -------- --------
Total distributions (0.31) (0.61) (0.62) (0.67) (0.66) (0.67)
Net asset value, end of period $ 10.24 $ 10.51 $ 11.03 $ 10.56 $ 10.28 $ 10.38
======== ======== ======== ======== ======== ========
Total return 0.47%* 0.78% 10.49% 9.57% 5.48% 10.45%
Ratios and Supplemental Data
Net assets, end of
period (thousands) $ 62,513 $ 62,837 $ 51,366 $ 33,230 $ 32,276 $ 30,122
Ratio of expenses to
average net assets prior
to reimbursement and/
or fee waivers 1.48%** 1.49% 1.86% 1.47% 1.48% 1.48%
Ratio of expenses to
average net assets net
of reimbursement and/
or fee waivers 1.45%** 1.45% 1.74% 1.41% 1.38% 1.35%
Ratio of net income/(loss)
to average net assets 5.84%** 5.50% 5.55% 6.44% 6.26% 6.47%
Portfolio turnover rate 20.61% 44.07% 80.14% 64.56% 41.36% 46.03%
</TABLE>
*Not annualized
**Annualized.
See Accompanying Notes to Financial Statements
48
<PAGE>
Financial Highlights - December 31, 1999
<TABLE>
<CAPTION>
Working Assets Money Market Fund - Standard Shares
-----------------------------------------------------------------------------------
For the For the For the For the For the For the
six months year year year year year
ended ended ended ended ended ended
12/31/99 06/30/99 06/30/98 06/30/97 06/30/96 06/30/95
<S> <C> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- --------- ---------
Income from investment operations
Net investment income 0.021 0.040 0.045 0.042 0.045 0.044
Less distributions
from net investment income (0.021) (0.040) (0.045) (0.042) (0.045) (0.044)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total return 2.14%* 4.07% 4.54% 4.30% 4.60% 4.51%
Ratios and Supplemental Data
Net assets, end of period
(thousands) $ 104,715 $ 105,740 $ 103,597 $ 85,179 $ 78,326 $ 97,611
Ratio of expenses to
average net assets
prior to reimbursement
and/or fee waivers 1.23%** 1.24% 1.23% 1.39% 1.21% 1.16%
Ratio of expenses to
average net assets net of
reimbursement and/or
fee waivers 1.19%** 1.19% 1.21% 1.25% 1.18% 1.16%
Ratio of net income to
average net assets 4.21%** 4.00% 4.46% 4.23% 4.56% 4.39%
</TABLE>
See Accompanying Notes to Financial Statements
49
<PAGE>
Financial Highlights - December 31, 1999
<TABLE>
<CAPTION>
Working Assets Money Market Fund - Institutional Class Shares***
---------------------------------------------------------------------
For the For the For the For the From
six months year year year 02/01/96
ended ended ended ended to
12/31/99 06/30/99 06/30/98 06/30/97 06/30/96
(unaudited)
<S> <C> <C> <C> <C> <C>
Selected Per-Share Data
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Income from investment operations
Net investment income 0.023 0.045 0.051 0.049 0.021
Less distributions
from net investment income (0.023) (0.045) (0.051) (0.049) (0.021)
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total return 2.34%* 4.58% 5.23% 5.01% 2.09%*
Ratios and Supplemental Data
Net assets, end of period
(thousands) $ 22,652 $ 22,464 $ 18,178 $ 17,504 $ 14,539
Ratio of expenses to
average net assets
prior to reimbursement
and/or fee waivers 0.79%** 0.70% 0.56% 0.60% 0.47%**
Ratio of expenses to
average net assets net of
reimbursement and/or
fee waivers 0.79%** 0.70% 0.56% 0.60% 0.47%**
Ratio of net income to
average net assets 4.61%** 4.47% 5.11% 4.92% 5.16%**
</TABLE>
* Not annualized
** Annualized.
*** The Working Assets Money Market Fund - Institutional Class shares
commenced operations on February 1, 1996.
See Accompanying Notes to Financial Statements
50
<PAGE>
Notes to Financial Statements -- December 31, 1999 (unaudited)
NOTE 1 - Summary of Significant Accounting Policies
Organization
The Citizens Index Fund, Citizens Emerging Growth Fund, Citizens Global Equity
Fund, Citizens Income Fund and the Working Assets Money Market Fund (the
"funds") are each a series of shares of beneficial interest of Citizens Funds
(the "Trust"). Collectively, these funds are known as the "Citizens Funds." The
Trust is organized as a Massachusetts Business Trust and is registered as an
open-end management investment company under the Investment Company Act of 1940,
as amended (the "1940 Act"), and is authorized to issue an unlimited number of
no par value shares in one or more series.
Effective November 1, 1999, the Citizens Index Fund, Citizens Emerging Growth
Fund and the Citizens Global Equity Fund each include three classes of shares:
Standard shares, Institutional Class shares and Administrative Class shares. The
Working Assets Money Market Fund offers two classes of shares, Standard shares
and Institutional Class shares, and the Citizens Income Fund offers one class of
shares, Standard shares. Shares of each class are entitled to vote as a class or
series to the extent required by the 1940 Act, or as provided in the funds'
Declaration of Trust or as permitted by the Board of Trustees. As of December
31, 1999 the Administrative Class for the Citizens Index Fund, Citizens Emerging
Growth Fund and the Citizens Global Equity Fund had not commenced operations.
Investment income, realized and unrealized capital gains and losses, and the
common expenses of the Citizens Index Fund, Citizens Emerging Growth Fund,
Citizens Global Equity Fund and the Working Assets Money Market Fund are
allocated on a pro rata basis to each class based on the relative net assets of
each class to the total net assets of the fund. Each class of shares differs in
its respective distribution, administrative and shareholder servicing expenses
and may differ in certain other class-specific fees and expenses (see footnote
2).
In preparing financial statements in conformity with generally accepted
accounting principles, management makes estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements, as well as the reported amounts of income and expenses during the
period. Actual results may differ from these estimates. The following is a
summary of significant accounting policies followed by the funds.
51
<PAGE>
Notes to Financial Statements -- December 31, 1999 (unaudited)
Portfolio Valuation
Equity securities are valued at the last sale price on the primary exchange on
which such securities are traded or on the principal over-the-counter market on
which such securities are traded, as of the close of business on the day the
securities are valued, or, lacking any sales, at the last available bid price
for domestic securities and halfway between the bid and asked price for
international securities. Fixed income investments generally are valued at the
bid price for securities. Short-term securities are valued at amortized cost.
Investments for which market quotations are not readily available (including
restricted securities which are subject to limitations on their sale) are valued
at fair value, as determined in good faith by or under the direction of the
funds' Board of Trustees.
Security Transactions, Related Investment Income and Other
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on the
identified cost basis, unless otherwise specified. Interest income is recorded
on an accrual basis. Dividend income is recorded on the ex-dividend date.
The Working Assets Money Market Fund seeks to maintain a continuous net asset
value per share of $1.00 and intends to comply with the maturity,
diversification and quality requirements of Rule 2a-7 under the 1940 Act. If net
asset value per share, using available market information, deviates from $1.00
by $.005 or more, the Board of Trustees will consider what steps, if any, should
be taken to restore net asset value per share to $1.00.
Distributions to Shareholders
The Citizens Index Fund, Citizens Emerging Growth Fund and the Citizens Global
Equity Fund distribute net investment income and net capital gains, if any, to
shareholders annually. The Citizens Income Fund distributes net investment
income to shareholders monthly and net capital gains, if any, annually. With
respect to the Working Assets Money Market Fund, dividends from net investment
income are accrued daily and paid monthly. Distributions are recorded by the
funds on the ex-dividend date. Income and capital gain distributions are
determined in accordance with income tax regulations, which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments of net operating losses and loss deferral due to wash sales
and excise tax regulations.
52
<PAGE>
Notes to Financial Statements -- December 31, 1999 (unaudited)
Federal Income Taxes
It is the policy of the funds to meet the requirements for qualification as a
"regulated investment company" under the applicable Internal Revenue Code. It is
also the intention of the funds to make distributions sufficient to avoid
imposition of any excise tax. Therefore, no provision has been made for Federal
taxes on income, capital gains or unrealized appreciation of securities held, or
excise tax on income and capital gains.
Foreign Currency Translation
The accounting records of the funds are maintained in U.S. Dollars. Investment
securities and other assets and liabilities denominated in a foreign currency
are recorded on the books and records of the funds after being translated into
U.S. Dollars at the prevailing rates of exchange on that day. Purchases and
sales of securities, income receipts and expense payments are translated into
U.S. Dollars at the prevailing exchange rate on the respective dates of the
transactions.
Net realized gains and losses on foreign currency transactions represent net
gains and losses from sales and maturities of short-term securities, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the differences between the
amounts of dividends, interest and foreign withholding taxes recorded on the
funds' books and the U.S. Dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains or losses arise from changes in the
value of assets and liabilities other than investments in securities at year end
resulting from changes in exchange rates. The effects of changes in foreign
currency exchange rates on investments in securities are included with the net
realized gain or loss on investment securities.
Repurchase Agreements
With respect to repurchase agreements entered into by the funds, it is the
funds' policy to receive collateral securities of which the value, including
accrued interest, is at least equal to 102% of the amount to be repaid to the
funds under each agreement at its maturity.
Restricted Securities
The funds are permitted to invest in privately placed securities. These
securities may be resold in transactions exempt from registration or to the
public, if the
53
<PAGE>
Notes to Financial Statements -- December 31, 1999 (unaudited)
securities are registered. Disposal of these securities may involve
time-consuming negotiations and expense, and prompt sale at an acceptable price
may be difficult. At the end of the period, restricted securities (excluding
144A issues) are shown at the end of the funds' Statement of Investments.
Deferred Organization Costs
All costs incurred in connection with the organization, registration and/or
reorganization of the funds have been paid by the funds. These costs are being
amortized on a straight-line basis over a period not to exceed 60 months.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (forward contract) is a commitment
to purchase or sell a foreign currency at the settlement date at a negotiated
rate. During the period, the Citizens Global Equity Fund utilized forward
contracts to settle foreign securities transactions.
Forward contracts are valued at the prevailing forward exchange rate of the
underlying currencies and unrealized gain (loss) is recorded daily. Realized and
unrealized gains and losses which represent the difference between the value of
a forward contract to buy and a forward contract to sell are included in net
realized and unrealized gain (loss) from foreign currencies. Certain risks may
arise upon entering into forward contracts from the potential inability of
counterparties to meet the terms of their contracts.
NOTE 2 - Fees and Other Transactions with Affiliates
Management Fee
Citizens Advisers (the "Adviser") serves as Adviser to each of the funds. Under
the terms of the management contract, the Adviser is paid a monthly fee based on
an annual rate of each fund's average net assets. Those rates are as follows:
Citizens Index Fund 0.50%
Citizens Emerging Growth Fund 1.00%
Citizens Global Equity Fund 1.00%
Citizens Income Fund 0.65%
Working Assets Money Market Fund 0.35%
Seneca Capital Management LLC serves as the Sub-Adviser for the Citizens
Emerging Growth Fund and the Citizens Income Fund. Clemente Capital, Inc.
54
<PAGE>
Notes to Financial Statements -- December 31, 1999 (unaudited)
serves as the Sub-Adviser for the Citizens Global Equity Fund. For their
services, the Sub-Advisers receive fees based on an annual rate of each fund's
average net assets, paid by the Adviser as follows:
Citizens Emerging Growth Fund 0.35% of the first $100 million
0.25% thereafter
Citizens Global Equity Fund 0.35%
Citizens Income Fund 0.175%
For the funds' fiscal year ending June 30, 2000, the Adviser has agreed to waive
certain fees and reimburse certain expenses to the extent that the total
expenses of a fund for the fiscal year (exclusive of taxes, interest, brokerage
commissions and extraordinary expenses) exceed the following limits of each
fund's average net assets:
Citizens Index Fund -
Standard shares 1.49%
Citizens Index Fund -
Institutional Class shares 0.74%
Citizens Emerging Growth Fund -
Institutional Class shares 1.30%
Citizens Global Equity Fund -
Standard shares 2.05%
Citizens Global Equity Fund -
Institutional Class shares 1.39%
Citizens Income Fund 1.45% of the first $100 million
1.25% thereafter
Working Assets Money Market Fund -
Standard shares 1.50% of the first $40 million
1.00% thereafter
Distribution Fee
Citizens Securities Inc. (the "Distributor") is a wholly owned subsidiary of the
Adviser and serves as the funds' Distributor.
Pursuant to Rule 12b-1 under the 1940 Act, the Trust's Shareholders have adopted
a separate distribution plan with respect to the funds' Standard shares pursuant
to which the funds reimburse the Distributor for a portion of its distribution
related expenses.
55
<PAGE>
Notes to Financial Statements -- December 31, 1999 (unaudited)
Distribution fees for the six months ended December 31, 1999 were charged based
on a percentage of average daily net assets as follows:
Citizens Index Fund -
Standard shares 0.25%
Citizens Emerging Growth Fund -
Standard shares 0.25%
Citizens Global Equity Fund -
Standard shares 0.25%
Citizens Income Fund 0.25%
Working Assets Money Market Fund -
Standard shares 0.20%
Administrative and Shareholder Service Fees
Citizens Advisers also performs a wide variety of administrative duties for the
Trust under a separate administrative contract which provides for the
reimbursement of out of pocket expenses as well as fees for services rendered.
These fees and expenses are payable monthly and include fees based on a
percentage of average daily net assets as follows:
Citizens Index Fund -
Standard shares* 0.13%
Citizens Index Fund -
Institutional Class shares* 0.09%
Citizens Emerging Growth Fund -
Standard and Institutional Class shares 0.10%
Citizens Global Equity Fund -
Standard and Institutional Class shares 0.10%
Citizens Income Fund 0.10%
Working Assets Money Market Fund -
Standard and Institutional Class shares 0.10%
*Under the terms of the Administration agreement in effect through June 30,
2000, Citizens Advisers could charge up to 0.20% of average daily net assets.
In addition, Citizens Securities provides a number of administrative services to
the Trust relating primarily to shareholder services and communications, and is
reimbursed at a rate approximating the "market price" of providing such services
56
<PAGE>
Notes to Financial Statements -- December 31, 1999 (unaudited)
and communications for each of the individual funds with the exception of the
Citizens Index Fund - Standard shares. The Citizens Index Fund - Standard shares
may be charged a shareholder service fee of up to 0.40% based on the average
daily net assets of the class. For the six months ended December 31, 1999, a fee
of 0.40% was charged. For the six months ended December 31, 1999, the Trust paid
administrative and shareholder service fees as follows:
Administrative Shareholder
Expenses Service Fees
-------------- ------------
Citizens Index Fund -
Standard shares $ 389,755 $ 1,199,247
Citizens Index Fund -
Institutional Class shares 49,555 1,131
Citizens Emerging Growth Fund -
Standard shares 81,482 56,129
Citizens Emerging Growth Fund -
Institutional Class shares* 1,625 224
Citizens Global Equity Fund -
Standard shares 62,906 34,712
Citizens Global Equity Fund -
Institutional Class shares* 704 198
Citizens Income Fund 31,767 21,828
Working Assets Money Market Fund -
Standard shares 53,665 55,298
Working Assets Money Market Fund -
Institutional Class shares 11,440 752
*For the period November 1, 1999 (commencement of operations of Institutional
Class shares) to December 31, 1999.
Trustee Fees
Certain officers and trustees of the Trust are "affiliated persons," as defined
in the 1940 Act, of the Adviser. Currently, each Trustee who is not an
"affiliated person" receives an annual retainer of $10,000 and $1,000 for each
day's attendance at a Trustee meeting, except for the Chair, who receives an
annual retainer of $15,000 as well as $1,000 for each day's attendance at a
Trustee meeting.
57
<PAGE>
Notes to Financial Statements -- December 31, 1999 (unaudited)
Transfer Agent Fees
PFPC Inc. provides certain transfer agency services pursuant to certain fee
arrangements. Under an agreement with the transfer agent, transfer agent fees
are reduced by credits for cash balances as set forth below for the six months
ended December 31, 1999:
Transfer
Agent Credits
-------------
Citizens Index Fund - Standard shares $ 3,414
Citizens Index Fund - Institutional Class shares 779
Citizens Emerging Growth Fund - Standard shares 1,225
Citizens Emerging Growth Fund - Institutional Class shares* --
Citizens Global Equity Fund - Standard shares 2,212
Citizens Global Equity Fund - Institutional Class shares* --
Citizens Income Fund 441
Working Assets Money Market Fund - Standard shares 4,182
Working Assets Money Market Fund - Institutional Class shares 1,311
*For the period November 1, 1999 (commencement of operations of Institutional
Class shares) to December 31, 1999.
Transfer agent fees also include the cost of services rendered by third parties
to provide sub-transfer agency services and shareholder statements.
Class Specific Expenses
As described above there are certain fees and expenses which vary by share class
within the Citizens Index Fund, Citizens Emerging Growth Fund, Citizens Global
Equity Fund and the Working Assets Money Market Fund, as set forth below, for
the six months ended December 31, 1999:
Transfer
Agent Expenses
-------------
Citizens Index Fund - Standard shares $ 553,785
Citizens Index Fund - Institutional Class shares 27,020
Citizens Emerging Growth Fund - Standard shares 167,491
Citizens Emerging Growth Fund - Institutional Class shares* 2,432
Citizens Global Equity Fund - Standard shares 130,500
Citizens Global Equity Fund - Institutional Class shares* 2,279
Working Assets Money Market Fund - Standard shares 165,974
Working Assets Money Market Fund - Institutional Class shares 13,020
*For the period November 1, 1999 (commencement of operations of Institutional
Class shares) to December 31, 1999.
58
<PAGE>
Notes to Financial Statements -- December 31, 1999 (unaudited)
NOTE 3 - Purchases and Sales of Investment Securities
The following summarizes purchases and sales of investment securities, other
than short-term investments, by each fund for the six months ended December 31,
1999:
<TABLE>
<CAPTION>
Purchases Sales
---------------------------------- -----------------------------------
U.S. Government Other U.S. Government Other
<S> <C> <C> <C> <C>
Citizens
Index Fund $ 1,025,700 $ 66,911,859 $ 293,714 $ 34,582,163
Citizens
Emerging
Growth Fund -- 162,415,328 -- 136,736,985
Citizens
Global Equity Fund -- 105,921,080 -- 45,864,775
Citizens
Income Fund 1,741,284 11,221,174 4,355,083 7,706,239
</TABLE>
NOTE 4 - Custody of Securities
State Street Bank & Trust Co. acts as custodian for the funds. Under an
agreement with the custodian bank, custody fees are reduced by credits for cash
balances as set forth below for the six months ended December 31, 1999:
Citizens Index Fund $ 9,739
Citizens Emerging Growth Fund 2,318
Citizens Global Equity Fund 1,153
Citizens Income Fund 935
Working Assets Money Market Fund 1,824
59
<PAGE>
Notes to Financial Statements -- December 31, 1999 (unaudited)
NOTE 5 - Capital Shares
At December 31, 1999 there were an unlimited amount of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the
funds were as follows:
Citizens Index Fund - Standard shares
<TABLE>
<CAPTION>
Six Months Ended December 31, 1999 Year Ended June 30, 1999
---------------------------------- ---------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 2,733,770 $ 84,082,515 8,299,062 $ 220,034,135
Shares issued in
reinvestment of
distributions 1,069,828 33,956,335 176,968 4,845,398
Shares redeemed (2,004,701) (61,411,686) (4,082,071) (104,471,920)
---------- ------------- ---------- -------------
Net increase/(decrease) 1,798,897 $ 56,627,164 4,393,959 $ 120,407,613
========== ============= ========== =============
</TABLE>
Citizens Index Fund - Institutional Class shares
<TABLE>
<CAPTION>
Six Months Ended December 31, 1999 Year Ended June 30, 1999
---------------------------------- ---------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 1,275,258 $ 31,906,674 2,999,864 $ 68,105,923
Shares issued in
reinvestment of
distributions 317,739 8,194,488 26,311 588,312
Shares redeemed (564,144) (14,192,207) (736,443) (16,955,271)
---------- ------------- ---------- -------------
Net increase/(decrease) 1,028,853 $ 25,908,955 2,289,732 $ 51,738,964
========== ============= ========== =============
</TABLE>
Citizens Emerging Growth Fund - Standard shares
<TABLE>
<CAPTION>
Six Months Ended December 31, 1999 Year Ended June 30, 1999
---------------------------------- ---------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 1,833,066 $ 45,904,695 5,092,335 $ 93,221,737
Shares issued in
reinvestment of
distributions 1,202,923 29,796,571 469,616 8,636,244
Shares redeemed (1,115,522) (28,086,661) (4,314,244) (78,042,415)
---------- ------------- ---------- -------------
Net increase/(decrease) 1,920,467 $ 47,614,605 1,247,707 $ 23,815,566
========== ============= ========== =============
</TABLE>
60
<PAGE>
Notes to Financial Statements -- December 31, 1999 (unaudited)
Citizens Emerging Growth Fund - Institutional Class shares
November 1, 1999* to December 31, 1999
--------------------------------------
Shares Value
Shares sold 398,837 $ 10,249,992
Shares issued in
reinvestment of
distributions 17,389 431,075
Shares redeemed -- --
-------- ------------
Net increase/(decrease) 416,226 $ 10,681,067
======== ============
*Commencement of sales of Institutional Class shares.
Citizens Global Equity Fund - Standard shares
<TABLE>
<CAPTION>
Six Months Ended December 31, 1999 Year Ended June 30, 1999
---------------------------------- --------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 4,401,362 $112,717,486 3,696,959 $ 68,984,216
Shares issued in
reinvestment of
distributions 205,594 5,856,968 70,023 1,280,028
Shares redeemed (1,865,195) (49,582,876) (2,183,306) (39,814,410)
---------- ----------- ---------- -----------
Net increase/(decrease) 2,741,761 $ 68,991,578 1,583,676 $ 30,449,834
========== =========== ========== ===========
</TABLE>
Citizens Global Equity Fund - Institutional Class shares
November 1, 1999* to December 31, 1999
--------------------------------------
Shares Value
Shares sold 159,302 $ 3,735,630
Shares issued in
reinvestment of
distributions 1,691 48,198
Shares redeemed -- --
-------- ------------
Net increase/(decrease) 160,993 $ 3,783,828
======== ============
*Commencement of sales of Institutional Class shares.
61
<PAGE>
Notes to Financial Statements -- December 31, 1999 (unaudited)
Citizens Income Fund
<TABLE>
<CAPTION>
Six Months Ended December 31, 1999 Year Ended June 30, 1999
---------------------------------- --------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 723,918 $ 7,526,333 2,219,779 $ 24,188,857
Shares issued in
reinvestment of
distributions 157,575 1,627,379 263,390 2,859,497
Shares redeemed (759,190) (7,884,626) (1,159,452) (12,590,435)
---------- ------------ ---------- ------------
Net increase/(decrease) 122,303 $ 1,269,086 1,323,717 $ 14,457,919
========== ============ ========== ============
</TABLE>
Working Assets Money Market Fund - Standard shares
<TABLE>
<CAPTION>
Six Months Ended December 31, 1999 Year Ended June 30, 1999
---------------------------------- --------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 70,161,975 $ 70,161,975 183,200,597 $ 183,200,597
Shares issued in
reinvestment of
distributions 2,200,191 2,200,191 4,128,302 4,128,302
Shares redeemed (73,386,784) (73,386,784) (185,186,268) (185,186,268)
----------- ------------ ------------ -------------
Net increase/(decrease) (1,024,618 $ (1,024,618) 2,142,631 $ 2,142,631
=========== ============ ============ =============
</TABLE>
Working Assets Money Market Fund - Institutional Class shares
<TABLE>
<CAPTION>
Six Months Ended December 31, 1999 Year Ended June 30, 1999
---------------------------------- --------------------------
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 5,460,255 $ 5,460,255 16,168,511 $ 16,168,511
Shares issued in
reinvestment of
distributions 521,755 521,755 916,004 916,004
Shares redeemed (5,793,560) (5,793,560) (12,799,243) (12,799,243)
---------- ------------ ----------- ------------
Net increase/(decrease) 188,450 $ 188,450 4,285,272 $ 4,285,272
========== ============ =========== ============
</TABLE>
62
<PAGE>
Notes:
63
<PAGE>
Notes:
64
<PAGE>
At Citizens Funds, we are determined to do everything we can to let investors
know just how much we value their business. That's why we offer a comprehensive
range of services that includes everything from attentive telephone
representatives to an informative web site.
A Full Range of Socially Responsible No-Load Mutual Funds*
Citizens Index Fund
Citizens Emerging Growth Fund
Citizens Small Cap Index Fund
Citizens Global Equity Fund
Citizens Income Fund
Working Assets Money Market Fund
Free Exchanges Between Citizens Funds
You can move your money easily and without penalty from any one of our funds to
another.
Individual Retirement Plans (IRA)
We offer investors the opportunity to invest in a variety of IRAs, including
Traditional, Roth and Rollover. Citizens Funds are also available for 401(k),
403(b), SEP and SIMPLE retirement plans.
Automatic Investment Plan
Invest automatically on a monthly or quarterly basis with payroll deduction or
electronic transfer from your bank.
Unparalleled Customer Service
Our representatives are well-trained, salaried professionals whose goal is to
satisfy most requests during the first phone call.
Representatives are available from 9 a.m. to 8 p.m. (ET) Monday--Friday at (800)
223-7010.
www.citizensfunds.com
Our web site offers daily fund prices and performance, fund and manager
profiles, fund prospectuses and applications, shareholder activism updates,
online account access and much more.
Intelligent Communications
Citizens Funds pioneered the plain English prospectus well before it became the
standard for the rest of the mutual fund industry. We try to bring that same
spirit of innovation, plain-speak and respect for our shareholders to all
our communications, including:
o Quarterly statements (monthly for money market shareholders)
o Shareholder newsletters
*Although Citizens Funds are no-load, certain fees and expenses do apply to a
continued investment in the funds and are described in the prospectus.
Investments in the Working Assets Money Market Fund are not insured
or guaranteed by the 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 the fund.
<PAGE>
Trustees:
Sophia Collier
Pablo S. Eisenberg
Mitchell Johnson
Azie Taylor Morton, Chair
Martha S. Pope
Robert Reich
Ada Sanchez
John L. Shields
Distributor:
Citizens Securities
230 Commerce Way
Portsmouth, NH 03801
(800) 223-7010
(603) 436-5152
Manager:
Citizens Advisers
230 Commerce Way
Portsmouth, NH 03801
(800) 223-7010
(603) 436-5152
Custodian:
State Street Bank
& Trust Company
Boston, MA 02110
Transfer Agent and
Dividend Disbursing Agent:
PFPC Inc.
Wilmington, DE 19899
Legal Counsel:
Bingham Dana LLP
Boston, MA 02110
Independent Auditors:
PricewaterhouseCoopers, LLP
Boston, MA 02110
[LOGO] CITIZENS
FUNDS
Citizens Funds are available through such popular mutual fund supermarkets as
Charles Schwab's Mutual Fund OneSource and Fidelity Investments Funds Network.
This report is intended for shareholders of Citizens Funds and is not authorized
for distribution to other persons unless accompanied or preceded by a
prospectus.
[RECYCLE LOGO] Printed on recycled paper. [LOGO] PRINTED WITH
SOY INK
<PAGE>
Citizens Small Cap Index Fund
December 31, 1999 Semi-Annual Report
The Citizens Small Cap Index Fund commenced operations on December 28, 1999 with
$2,500 which was not invested as of December 31, 1999. Therefore, the fund had a
return of 0.00% for the period December 28, 1999 - December 31, 1999.
Statement of Assets and Liabilities - December 31, 1999 (unaudited)
<TABLE>
<S> <C>
Assets
Cash $ 2,500
Due from Investment Adviser 1,071
-------
Total Assets 3,571
Liabilities
Payable for administrative and shareholder service fees 38
Payable for trustees' fees and expenses 121
Other accrued expenses 912
-------
Total Liabilities 1,071
-------
Net assets $ 2,500
=======
Net assets consist of:
Paid-in capital applicable to 250 shares of no par value capital
stock outstanding; unlimited shares authorized $ 2,500
-------
Net assets $ 2,500
-------
Net asset value, offering and redemption price per share $ 10.00
-------
Statement of Operations - For the period December 28, 1999
(commencement of operations) to December 31, 1999 (unaudited)
Investment Income $ --
Expenses
Transfer agent fees 136
Custody and accounting fees 400
Administrative and shareholder service fees 38
Legal and audit fees 103
Registration fees 217
Trustees' fees and expenses 121
Printing and postage 35
Other expenses 21
-------
Total expenses 1,071
-------
Reimbursement/Waiver by Adviser (1,071)
-------
Net expenses --
-------
Net increase in net assets resulting from operations $ --
=======
Statement of Changes - December 31, 1999 (unaudited)
Net increase in net assets resulting from operations $ --
Increase in net assets resulting from capital
share transactions 2,500
-------
Total increase in net assets 2,500
-------
Net assets
Beginning of year --
-------
End of year $ 2,500
-------
</TABLE>
See Accompanying Notes to Financial Statements
<PAGE>
Financial Highlights - December 31, 1999 (unaudited)
<TABLE>
<CAPTION>
From 12/28/99*
to 12/31/99
<S> <C>
Selected Per-Share Data
Net asset value, beginning of period $ 10.00
-------
Income/(loss) from investment operations
Net investment income/(loss) --
Net gain/(loss) on securities (both
realized and unrealized) --
-------
Total from investment operations --
Less distributions
from net investment income --
from net realized gains --
-------
Total distributions --
-------
Net asset value, end of period $ 10.00
=======
Total return 0.00%
Ratios and Supplemental Data
Net assets, end of period $ 2,500
Ratio of expenses to average net assets
prior to reimbursement and/or fee waivers 42.84%**
Ratio of expenses to average net assets
net of reimbursement and/or fee waivers 0.01%**
Ratio of net income/(loss) to average net assets (0.01%)**
Portfolio turnover rate 0.00%
</TABLE>
* The Citizens Small Cap Index Fund commenced operations on December 28,
1999.
** Because the fund has been in operation for a short period of time the
income and expense ratios have not been annualized and are not meaningful
indicators of expected income and expense ratios.
See Accompanying Notes to Financial Statements.
Notes to Financial Statements - December 31, 1999 (unaudited)
NOTE 1 - Summary of Significant Accounting Policies
Organization
The Citizens Small Cap Index Fund (the "fund") is a series of shares of
beneficial interest of Citizens Funds (the "Trust"). The Trust is organized as a
Massachusetts Business Trust and is registered as an open-end management
investment company under the Investment Company Act of 1940, as amended (the
"1940 Act"), and is authorized to issue an unlimited number of no par value
shares in one or more series.
Effective December 28, 1999, the Citizens Small Cap Index Fund offers one class
of shares, Standard shares.
In preparing financial statements in conformity with generally accepted
accounting principles, management makes estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements, as well as the reported amounts of income and expenses during the
period. Actual results may differ from these estimates. The following is a
summary of significant accounting policies followed by the fund.
Portfolio Valuation
Equity securities are valued at the last sale price on the primary exchange on
which such securities are traded or on the principal over-the-counter market on
which such securities
<PAGE>
are traded, as of the close of business on the day the securities are valued,
or, lacking any sales, at the last available bid price for domestic securities
and halfway between the bid and asked price for international securities.
Short-term securities with a maturity of 60 days or less are valued at amortized
cost. Investments for which market quotations are not readily available
(including restricted securities which are subject to limitations on their sale)
are valued at fair value, as determined in good faith by or under the direction
of the funds' Board of Trustees.
Security Transactions, Related Investment Income and Other
Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). The cost of securities sold is determined on the
identified cost basis, unless otherwise specified. Interest income is recorded
on the accrual basis. Dividend income is recorded on the ex-dividend date.
Distributions to Shareholders
The fund distributes net investment income and net capital gains, if any, to
shareholders annually. Distributions are recorded by the fund on the ex-dividend
date. Income and capital gain distributions are determined in accordance with
income tax regulations, which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments of net
operating losses and loss deferral due to wash sales and excise tax regulations.
Federal Income Taxes
It is the policy of the fund to meet the requirements for qualification as a
"regulated investment company" under the applicable Internal Revenue Code. It is
also the intention of the fund to make distributions sufficient to avoid
imposition of any excise tax. Therefore, no provision has been made for Federal
taxes on income, capital gains or unrealized appreciation of securities held, or
excise tax on income and capital gains.
NOTE 2 - Fees and Other Transactions with Affiliates
Management Fee
Citizens Advisers (the "Adviser") serves as Adviser to the fund. Under the terms
of the management contract, the Adviser is paid a monthly fee based on an annual
rate of 0.50% of the fund's average net assets.
For the year ending June 30, 2000, the Adviser has agreed to waive certain fees
and reimburse certain expenses to the extent the total expenses of the fund
(exclusive of taxes, brokerage commissions and extraordinary expenses) exceed
1.55% of the fund's average net assets.
Distribution Fee
Citizens Securities Inc. (the "Distributor") is a wholly owned subsidiary of the
Adviser and serves as the funds' Distributor.
Pursuant to Rule 12b-1 under the 1940 Act, the Trust's Board of Trustees has
adopted a distribution plan with respect to the fund's Standard shares pursuant
to which the fund reimburses the Distributor for a portion of its distribution
related expenses. Distribution fees for the period December 28, 1999 to December
31, 1999 were based on an annual rate of 0.25% of the fund's average net assets.
<PAGE>
Administrative and Shareholder Service Fees
Citizens Advisers also performs a wide variety of administrative duties for the
fund under a separate administrative contract which provides for the
reimbursement of out of pocket expenses as well as a fee based on 0.10% of the
fund's average net assets for services rendered. These fees and expenses are
payable monthly.
In addition, Citizens Securities provides a number of administrative services to
the fund relating primarily to shareholder services and communications, and is
reimbursed at a rate approximating the "market price" of providing such services
and communications.
For the period December 28, 1999 to December 31, 1999, the fund was charged $3
and $35 for administrative and shareholder service fees, respectively.
Trustee Fees
Certain officers and trustees of the fund are "affiliated persons," as defined
in the 1940 Act, of the Adviser. Currently, the Trust pays each Trustee who is
not an "affiliated person" an annual retainer of $10,000 and $1,000 for each
day's attendance at a Trustee meeting, except for the Chair, who is paid an
annual retainer of $15,000 as well as $1,000 for each day's attendance at a
Trustee meeting.
Transfer Agent Fees
PFPC provides certain transfer agency services for the fund pursuant to certain
fee arrangements. Transfer agent fees also include the cost of services rendered
by third parties to provide sub-transfer agency services and shareholder
statements.
NOTE 3 - Custody of Securities
State Street Bank & Trust Co. acts as custodian for the fund.
NOTE 4 - Capital Shares
At December 31, 1999 there were an unlimited amount of shares of beneficial
interest authorized, at no par value. Transactions in capital shares of the fund
were as follows:
Citizens Small Cap Index Fund - Standard shares
<TABLE>
<CAPTION>
From December 28, 1999 to December 31, 1999
-------------------------------------------
Shares Value
-------- --------
<S> <C> <C>
Shares sold 250 $ 2,500
Shares redeemed -- --
-------- --------
Net increase/(decrease) 250 $ 2,500
======== ========
</TABLE>
[LOGO] CITIZENS FUND
[LOGO] Printed on recycled paper.
