PITCAIRN FUNDS
Annual
Financial Report
October 31, 2000
DIVERSIFIED VALUE FUND
SELECT VALUE FUND
SMALL CAP VALUE FUND
DIVERSIFIED GROWTH FUND
SELECT GROWTH FUND
SMALL CAP GROWTH FUND
FAMILY HERITAGE(REGISTRATION MARK) FUND
INTERNATIONAL EQUITY FUND
GOVERNMENT/CORPORATE BOND FUND
TAX-EXEMPT BOND FUND
<PAGE>
TABLE OF CONTENTS
Letter to Shareholders ...........................................1
Management's Discussion & Analysis of Fund Performance
Diversified Value Fund ...........................................2
Select Value Fund ................................................3
Small Cap Value Fund .............................................4
Diversified Growth Fund ..........................................5
Select Growth Fund ...............................................6
Small Cap Growth Fund ............................................7
Family Heritage(R)Fund ...........................................8
International Equity Fund ........................................9
Government/Corporate Bond Fund ..................................10
Tax-Exempt Bond Fund ........................................... 11
Statements of Net Assets/Schedule of Investments
Diversified Value Fund ..........................................12
Select Value Fund ...............................................14
Small Cap Value Fund ............................................16
Diversified Growth Fund .........................................19
Select Growth Fund ..............................................21
Small Cap Growth Fund ...........................................22
Family Heritage(R)Fund ..........................................24
International Equity Fund .......................................26
Government/Corporate Bond Fund ..................................28
Tax-Exempt Bond Fund ............................................30
Statement of Assets and Liabilities .............................35
Statements of Operations ........................................36
Statements of Changes in Net Assets .............................38
Financial Highlights ............................................42
Notes to Financial Statements ...................................46
Report of Independent Accountants ...............................50
Notice to Shareholders ..........................................51
NOT FDIC INSURED. MAY LOSE VALUE. NO BANK GUARANTEE.
Must be preceded or accompanied by a current prospectus.
<PAGE>
Dear Valued Pitcairn Funds Shareholder:
We are pleased to send you the first annual report of the Pitcairn family of
mutual funds. In the third quarter of this year, Pitcairn converted its common
trust funds to mutual funds. The report will include the performance of the
various funds since their August inception date, as well as the financial
statements of the funds for the period ended October 31, 2000.
Prior to the launch of the Pitcairn Funds, we broadened the menu of investment
options by creating several new investment strategies. The new equity strategies
represent a number of different investment styles, all designed to be part of a
client's broader investment strategy. Pitcairn Funds provide clients with
increased flexibility to select from an array of investment options -- seven
U.S. equity funds, an international equity fund, and two fixed income funds.
Clients can also track the performance of the Pitcairn Funds through daily net
asset value (NAV) listings in the financial tables of major publications, or
through various financial sites on the Internet.
Many of the Pitcairn equity funds have outperformed their respective benchmarks
during an extremely volatile time in the financial markets. Since inception, the
Pitcairn equity funds that focus on value stocks enjoyed a distinct performance
edge. Corporate earnings shortfalls in the third quarter, and concerns about
growth in the faster-growing segments of the market, are making value investing
appear more favorable by comparison. Stocks of all styles and sizes continue to
move in and out of favor at unpredictable patterns. That is why we recommend
that clients hold diversified portfolios that are suited to their individual
goals, investment time horizon, and risk tolerance.
All of the Pitcairn equity funds are designed to provide shareholders with
long-term capital appreciation, and are managed with a consistent investment
approach grounded in long-term thinking. We believe that sound investment
philosophy, reliable methodologies, and talented investment professionals are
the key ingredients to results-oriented investment management, regardless of
market conditions.
The launch of our family of mutual funds continues Pitcairn's tradition of
providing solutions to meet our clients' investment needs. We thank you for
your investment in the Pitcairn Funds.
Sincerely,
/s/SIGNATURE
Dirk Junge
Chairman
/s/SIGNATURE
Alvin A. Clay III
President
1
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PITCAIRN DIVERSIFIED VALUE FUND
-------------------------------
OBJECTIVE: Long-term capital appreciation.
INVESTMENT STRATEGY: The Fund invests primarily in a diversified portfolio
of equity securities of large- and mid-capitalization
companies designed to provide exposure to the value
portion of the U.S. stock market.
FUND MANAGERS: Catherine E. Rooney, Vice President, Pitcairn
Investment Management David T. Larrabee, Vice
President, Pitcairn Investment Management
FUND REVIEW AND OUTLOOK:
The Pitcairn Diversified Value Fund commenced operations on August 4, 2000 and
thus has very limited operating history.
For the period ending October 31, 2000, the Fund posted a return of 5.24% as
compared with a 5.32% return for the Russell 1000(REGISTRATION MARK) Value
Index. The Fund provides exposure to the value portion of the U.S. stock market
and selects specific undervalued stocks of large-and mid-capitalization
companies with a range of risk, industry and sector characteristics similar to
those included in the Russell 1000(REGISTRATION MARK) Value Index.
Since the Fund's launch, the absolute and relative performance has been
positive. While growth stocks have experienced a decided performance edge over
value stocks in recent years, it has not been surprising to watch the trend
reverse course in recent months. Looking ahead, the Pitcairn Diversified Value
Fund will continue to invest in companies with attractive relative valuations
within the respective sectors and industries to deliver superior long-term
results.
Performance does not predict future results.
2
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PITCAIRN SELECT VALUE FUND
--------------------------
OBJECTIVE: Long-term capital appreciation.
INVESTMENT STRATEGY: The Fund invests primarily in a portfolio of U.S.
equity securities that the Manager believes are priced
below their true worth.
FUND MANAGER: Catherine E. Rooney, Vice President,
Pitcairn Investment Management
FUND REVIEW AND OUTLOOK:
The Pitcairn Select Value Fund commenced operations on August 11, 2000 and thus
has very limited operating history.
For the period ending October 31, 2000, the Fund posted a favorable return of
9.70% as compared with a 4.22% return for the Russell 1000(REGISTRATION MARK)
Value Index. The value segment of the US equity market is made up of those
stocks that generally sell at lower valuations. Typically, this market segment
has larger exposures in the financial and utility sectors. The Fund is managed
with the goal of providing returns in excess of the benchmark and is
concentrated in a limited number of stocks that are deemed to have superior
potential for price appreciation.
Since late in the first calendar quarter of 2000, stocks in the value segment of
the market have shown appreciably better returns than growth stocks. This
represents something of a change from the experience of the last two calendar
years that saw growth stocks reach record highs. A reason for the shift in
relative returns between these two market segments stems from the major weakness
experienced by technology stocks that, by early 2000, had reached historically
high valuation levels. These developments had a positive impact on Fund results
since its inception in August.
The Pitcairn Select Value Fund will continue to invest in companies with
attractive relative valuations within the sectors and industries in the value
segment of the U.S. equity market.
Past performance does not predict future results.
3
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PITCAIRN SMALL CAP VALUE FUND
-----------------------------
OBJECTIVE: Long-term capital appreciation.
INVESTMENT STRATEGY: The Fund invests primarily in a diversified portfolio
of equity securities of small capitalization companies
designed to provide exposure to the value portion of
the U.S. stock market.
FUND MANAGER: Joseph F. Monahan, Vice President,
Pitcairn Investment Management
FUND REVIEW AND OUTLOOK:
The Pitcairn Small Cap Value Fund commenced operations on August 25, 2000 and
thus has very limited operating history.
For the period ending October 31, 2000, the Fund posted a favorable return of
1.80% as compared with a 0.16% return for the Russell 2000(REGISTRATION MARK)
Value Index. The Fund offers exposure to companies with market capitalizations
between $200 million and $1.5 billion.
Since late in the first calendar quarter of 2000, stocks in the value segment of
the market have shown appreciably better returns than growth stocks. This
represents something of a change from the experience of the last two calendar
years that saw growth reach record highs. A major reason for the shift in
relative returns between these two market segments stems from the major weakness
experienced by technology stocks that, by early 2000, had reached historically
high valuation levels. These developments had a positive impact on Fund results
since its inception.
The Pitcairn Small Cap Value Fund will continue to invest in companies with
attractive relative valuations of small-capitalization companies within the
sectors and industries in the value portion of the U.S. stock market.
Past performance does not predict future results.
4
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PITCAIRN DIVERSIFIED GROWTH FUND
--------------------------------
OBJECTIVE: Long-term capital appreciation.
INVESTMENT STRATEGY: The Fund invests primarily in a diversified portfolio
of equity securities of large- and mid-capitalization
companies designed to provide exposure to the growth
portion of the U.S. stock market.
FUND MANAGERS: Eric M. Feder, Vice President,
Pitcairn Investment Management
Joseph F. Monahan, Vice President,
Pitcairn Investment Management
FUND REVIEW AND OUTLOOK:
The Pitcairn Diversified Growth Fund commenced operations on August 4, 2000 and
thus has very limited operating history.
For the period ending October 31, 2000, the Fund posted a return of -8.20% as
compared with a -6.99% return for the Russell 1000(REGISTRATION MARK) Growth
Index. Despite the fact that growth stocks have performed extremely well over
the past several years, August through October proved to be a challenging period
for this segment due to the fact that many companies failed to meet earnings
expectations.
In order to achieve the Fund's objective of long-term capital appreciation, the
portfolio invests in stocks that are likely to offer above-average potential for
growth in both revenues and earnings. In addition, the portfolio remains
diversified across several sectors of the market. Currently the technology and
health care sectors are emphasized due to the fact that the Russell
1000(REGISTRATION MARK) Growth Index has substantial representation in these
areas. Conversely, the portfolio is not significantly exposed to the
transportation and utility segments of the market.
Going forward, the Pitcairn Diversified Growth Fund will continue to be managed
with a discipline that captures the risk characteristics associated with the
growth segment of the U.S. equity market, while emphasizing security selection
as the primary driver of relative returns.
Past performance does not predict future results.
5
<PAGE>
PITCAIRN SELECT GROWTH FUND
---------------------------
OBJECTIVE: Long-term capital appreciation.
INVESTMENT STRATEGY: The Fund invests primarily in a portfolio of
high-quality, leading, large-capitalization
growth companies.
FUND MANAGER: Frank M. Sands, Sr., CFA, Chief Investment Officer
Frank M. Sands, Jr., CFA, Director of Research
Sands Capital Management, Inc.
FUND REVIEW AND OUTLOOK:
The Pitcairn Select Growth Fund commenced operations on August 11, 2000 and thus
has very limited operating history.
For the period ending October 31, 2000, the Fund posted a return of -9.80% as
compared with a -7.32% return for the Russell 1000(REGISTRATION MARK) Growth
Index. The Fund offers exposure to companies in business sectors including
financial services, pharmaceuticals, medical devices, specialty retail, branded
consumer products and technology sectors including storage, data networking
equipment, and enterprise hardware and software. During the reporting period,
the weighted average market capitalization of the companies held in the
portfolio is approximately $186 billion.
The businesses the Fund owns continued to perform well in aggregate. However, an
unusual number of the stocks from these outstanding businesses performed poorly
because of concerns about market valuation, a slowing global economy and
specific company-related issues. We believe, for the most part, these are all
transitory events that will work themselves out over time.
The Pitcairn Select Growth Fund is managed with an emphasis on high-quality,
leading companies with strong growth prospects and attractive valuations. Tax
sensitivity and risk control will continue to be important components of the
portfolio management process.
Past performance does not predict future results.
6
<PAGE>
PITCAIRN SMALL CAP GROWTH FUND
------------------------------
OBJECTIVE: Long-term capital appreciation.
INVESTMENT STRATEGY: The Fund invests primarily in a diversified portfolio
of small U.S. companies with total market
capitalizations no greater than 75% of the maximum
capitalization of the companies included in the
Russell 2000(REGISTRATION MARK) Growth Index.
FUND MANAGER: Nevin G. Markwart, Portfolio Manager,
Standish, Ayer & Wood, Inc.
FUND REVIEW AND OUTLOOK:
The Pitcairn Small Cap Growth Fund commenced operations on August 11, 2000 and
thus has very limited operating history.
For the period ending October 31, 2000, the Fund posted a return of 2.70% as
compared with a -4.38% return for the Russell 2000(REGISTRATION MARK) Growth
Index. The Fund has maintained focus on investing in the highest growth areas of
the economy--technology, health care and services and will continue to invest in
companies with excellent business positions, solid management teams, strong
balance sheets, and the potential to grow 20% or more on an annualized basis.
The environment for these companies is extremely competitive and the landscape
changes dramatically in a short period of time. Therefore, we are continually on
the alert to re-position the portfolio in the best areas for growth. This
strategy has proven to be very successful over the long-term, but can be highly
volatile.
While the small cap growth market has produced outstanding performance over the
past few years, the market has experienced some cooling off since the end of the
Fund's fiscal year. The Pitcairn Small Cap Growth Fund will continue to invest
in the high growth sectors of the economy, and in companies within those sectors
that we believe will provide the best performance for the portfolio.
Past performance does not predict future results.
7
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PITCAIRN FAMILY HERITAGE(REGISTRATION MARK) FUND
------------------------------------------------
OBJECTIVE: Long-term capital appreciation.
INVESTMENT STRATEGY: The Fund invests primarily in a portfolio of equity
securities of companies designed to provide exposure
to the overall U.S. equity market.
FUND MANAGER: Joseph F. Monahan, Vice President,
Pitcairn Investment Management
FUND REVIEW AND OUTLOOK:
For the fiscal year ending October 31, 2000, the Pitcairn Family
Heritage(REGISTRATION MARK) Fund (including performance carried over from its
predecessor common trust fund) returned 13.32%. This compares favorably to the
8.18% return for the Fund's benchmark, the Wilshire 5000 Index.
During the Fund's fiscal year, the U.S. equity markets experienced rather
dramatic return swings, especially in terms of return differentials between the
growth segment of the market and the value segment. The Fund outperformed its
benchmark during the fourth quarter of calendar year 1999 but lagged during
January and February of 2000. For the remainder of the fiscal year, the Fund
outperformed the Wilshire 5000. Specific stocks that contributed to performance
for the fiscal year were: Oracle, Northern Trust and, with some volatility,
Qualcomm.
The Family Heritage(REGISTRATION MARK) Fund invests primarily in U.S. equity
securities in which the founding family or related foundation maintains
ownership of at least 10% of the outstanding shares. Based on our research, we
believe that this characteristic is associated with added investment return.
Over the past five years, the Fund has returned 21.32% annually as compared to a
return of 20.13% for the Wilshire 5000 Index.
The Pitcairn Family Heritage(REGISTRATION MARK) Fund will continue to focus on
investing in companies with attractive relative valuations within the sectors
and industries of the U.S. equity market.
[GRAPHIC OMITTED]
CHART AS FOLLOWS:
AVERAGE ANNUAL TOTAL RETURNS
(PERIODS ENDED OCTOBER 31, 2000)
Annualized
One Annualized Annualized Annualized Inception
Year 3 Year 5 Year 10 Year to Date
Pitcairn Family Heritage
(REGISTRATION MARK) Fund* 13.32% 18.39% 21.32% 17.14% 14.43%
Wilshire 5000 Index 8.18% 15.99% 20.13% 19.17% 15.95%
PLOT POINTS ARE AS FOLLOW:
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT*
Cumulative Returns ($)
Pitcairn Family
Heritage(REGISTRATION MARK) Wilshire
Fund 5000 Index
10/31/90 10,000 10,000
10/91 14,264 13,856
10/92 15,797 15,206
10/93 16,870 17,909
10/94 16,797 18,359
10/95 18,514 23,086
10/96 21,473 28,121
10/97 29,323 37,004
10/98 34,953 42,477
10/99 42,933 53,381
10/00 48,652 57,748
Past performance does not predict future results.
The Fund's comparative benchmark does not include the annual operating expenses
incurred by the Fund.
* For periods prior to August 4, 2000, when the Fund began operating, the
performance data quoted represents past performance of the Adviser's similarly
managed common trust fund, adjusted to reflect fees and expenses expected to
be borne by the Pitcairn Family Heritage(REGISTRATION MARK) Fund. The common
trust fund was not a registered mutual fund, and therefore was not subject to
certain investment and tax restrictions which may have adversely affected
performance. The common trust fund changed its investment strategy in
April, 1996, as described in the Fund's prospectus.
8
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PITCAIRN INTERNATIONAL EQUITY FUND
----------------------------------
OBJECTIVE: Long-term capital appreciation.
INVESTMENT STRATEGY: The Fund invests primarily in a diversified portfolio
of equity securities of non-U.S. issuers.
FUND MANAGERS: S. Dewey Keesler, Jr., Principal,
Chief Investment Officer
Kathleen Harris, Principal and
Portfolio Manager/Research Analyst
Oechsle International Advisors, LLC
FUND REVIEW AND OUTLOOK:
For the fiscal year ending October 31, 2000, the Pitcairn International Equity
Fund (including performance carried over from its predecessor common trust fund)
returned -0.16%. This compares with the -1.96% return for the Fund's
benchmark, the Morgan Stanley MSCI All Country World ex-U.S. Index.
The International Equity Fund invests in non-U.S. equity securities with an
emphasis on medium-and large-capitalization stocks to ensure adequate liquidity.
The Fund pursues opportunities around the world in developed and emerging equity
markets and its earnings-driven style means that the manager seeks to invest in
companies with good prospects for cash and earnings generation over a 1-to
2-year investment horizon.
The Fund has a moderately defensive posture as its holdings in the
telecommunications sector are balanced by more conservative investments in the
pharmaceutical and consumer non-durable areas. The Fund is also relatively low
in its exposure to emerging market stocks, reflecting the poor liquidity
environment in recent months. While continuing earnings disappointments mean it
may be too early to move the Fund to a more constructive posture, a possible
upswing in growth and a recovery in the Euro against the dollar may make 2001 a
much more supportive environment for investment in international equities.
[GRAPHIC OMITTED]
CHART AS FOLLOWS:
AVERAGE ANNUAL TOTAL RETURNS
(PERIODS ENDED OCTOBER 31, 2000)
Annualized
One Annualized Annualized Inception
Year 3 Years 5 Years to Date
Pitcairn International Equity Fund* -0.16% 7.08% 7.21% 8.55%
Morgan Stanley MSCI All Country
World ex-US Index -1.96% 8.88% 8.28% 8.12%
PLOT POINTS ARE AS FOLLOW:
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT*
Cumulative Returns ($)
Pitcairn International Morgan Stanley MSCI All
Equity Fund Country World ex-US Index
5/31/93 10,000 10,000
10/93 11,438 10,874
10/94 13,738 12,316
10/95 12,983 11,989
10/96 14,402 13,225
10/97 14,978 13,824
10/98 14,587 14,447
10/99 18,418 18,201
10/00 18,388 17,844
Past performance does not predict future results.
The Fund's comparative benchmark does not include the annual operating expenses
incurred by the Fund.
* For periods prior to August 4, 2000, when the Fund began operating, the
performance data quoted represents past performance of the Adviser's similarly
managed common trust fund, adjusted to reflect fees and expenses expected to
be borne by the Pitcairn International Equity Fund. The common trust fund was
not a registered mutual fund, and therefore was not subject to certain
investment and tax restrictions which may have adversely affected performance.
The common trust fund changed its investment strategy in April, 1999, as
described in the Fund's prospectus.
9
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PITCAIRN GOVERNMENT/CORPORATE BOND FUND
---------------------------------------
OBJECTIVE: Income and capital appreciation consistent with prudent
investment risk and liquidity.
INVESTMENT STRATEGY: The Fund invests primarily in a portfolio of
investment-grade fixed income securities
without limitation as to their maturity.
FUND MANAGER: Patrick M. Kennedy, Vice President,
Pitcairn Investment Management
FUND REVIEW AND OUTLOOK:
For the fiscal year ending October 31, 2000, the Pitcairn Government/Corporate
Bond Fund (including performance carried over from its predecessor collective
trust fund) returned 7.51%. This compares favorably to the 7.11% return for its
benchmark, the Lehman Government/Credit Index.
During the reporting period, both investment-grade and high-yield corporate
bonds experienced difficult return comparisons as concerns developed regarding
the financial strength of many companies as a result of weaker earnings. This
development has clouded the near-term outlook with an attendant rise in the
projected rate of bankruptcies. On a positive note, U.S. Treasury Bonds have
provided better returns during most of 2000.
The Fund experienced favorable results due to prudent portfolio management and
close attention to risk. Currently, the Fund's longer-term holdings are
concentrated in U.S. Treasury issues with corporate, agency, asset-backed and
mortgage-backed bonds concentrated in maturities of less than 10 years. This
distribution could change as market conditions warrant.
The Pitcairn Government/Corporate Bond Fund is actively managed with a focus on
maximizing total return consistent with moderate risk of capital and maintenance
of liquidity. Added value is sought through the identification of opportunities
that arise from market anomalies such as yield curve structure, credit and
sector spreads and the pricing of individual issues.
[GRAPHIC OMITTED]
CHART AS FOLLOWS:
AVERAGE ANNUAL TOTAL RETURNS
(PERIODS ENDED OCTOBER 31, 2000)
Annualized
One Annualized Annualized Annualized Inception
Year 3 Years 5 Years 10 Years to Date
Pitcairn Government/Corporate
Bond Fund* 7.51% 5.09% 5.66% 7.25% 7.41%
Lehman Government/
Credit Index 7.11% 5.47% 6.12% 8.00% 8.32%
PLOT POINTS ARE AS FOLLOW:
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT*
Cumulative Returns ($)
Pitcairn Government/ Lehman Government/
Corporate Bond Fund* Credit Index
10/31/90 10,000 10,000
10/91 11,387 11,537
10/92 12,395 12,750
10/93 13,958 14,491
10/94 13,215 13,819
10/95 15,286 16,052
10/96 15,957 16,917
10/97 17,345 18,407
10/98 18,978 20,298
10/99 18,725 20,164
10/00 20,131 21,598
Past performance does not predict future results.
The Fund's comparative benchmark does not include the annual operating expenses
incurred by the Fund.
* For periods prior to August 4, 2000, when the Fund began operating, the
performance data quoted represents past performance of the Adviser's similary
managed collective trust fund, adjusted to reflect fees and expenses expected
to be borne by the Pitcairn Government/Corporate Bond Fund. The collective
trust fund was not a registered mutual fund, and therefore was not subject to
certain investment and tax restrictions which may have adversely affected
performance.
10
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PITCAIRN TAX-EXEMPT BOND FUND
-----------------------------
OBJECTIVE: Current income exempt from federal income taxes and
capital appreciation, consistent with prudent
investment risk and liquidity.
INVESTMENT STRATEGY: The Fund invests primarily in a diversified portfolio
of investment-grade obligations of tax-exempt issuers
situated in the United States, its territories and
possessions.
FUND MANAGER: Patrick M. Kennedy, Vice President,
Pitcairn Investment Management
FUND REVIEW AND OUTLOOK:
For the fiscal year ending October 31, 2000, the Pitcairn Tax-Exempt Bond Fund
(including performance carried over from its predecessor common trust fund)
returned 7.57%. This compares to the 8.51% return for its benchmark, the Lehman
Municipal Bond Index.
Supply/demand conditions in the municipal bond market have been bolstered as
strong economic conditions have reduced the need for municipal borrowing while
the demand for bonds has increased. The continued financial strength of many
state and local governments has resulted in improved credit quality.
The Pitcairn Tax-Exempt Bond Fund will continue to concentrate on top-tier
investment-grade quality range. Approximately 95% of the portfolio is invested
in bonds with credit ratings within the top two ratings. In addition, the
Fund will continue to search for opportunities and unique anomalies in the
marketplace, while managing the portfolio's risks prudently.
[GRAPHIC OMITTED]
CHART AS FOLLOWS:
AVERAGE ANNUAL TOTAL RETURNS
(PERIODS ENDED OCTOBER 31, 2000)
Annualized
One Annualized Annualized Annualized Inception
Year 3 Years 5 Years 10 Years to Date
Pitcairn Tax-Exempt Bond Fund 7.57% 3.93% 4.79% 5.96% 5.92%
Lehman Municipal Bond Index 8.51% 4.81% 5.72% 7.24% 7.54%
PLOT POINTS ARE AS FOLLOW:
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT*
Cumulative Returns ($)
Pitcairn Tax-Exempt / Lehman Municipal
Bond Fund* Bond Fund
10/31/90 10,000 10,000
10/91 10,962 11,218
10/92 11,713 12,160
10/93 13,073 13,871
10/94 12,896 13,266
10/95 13,112 15,237
10/96 14,757 16,107
10/97 15,888 17,476
10/98 17,040 18,877
10/99 16,578 18,541
10/00 17,833 20,119
Past performance does not predict future results.
The Fund's comparative benchmark does not include the annual operating expenses
incurred by the Fund.
* For periods prior to August 11, 2000, when the Fund began operating, the
performance data quoted represents past performance of the Adviser's similarly
managed common trust fund, adjusted to reflect fees and expenses expected to
be borne by the Pitcairn Tax-Exempt Bond Fund. The common trust fund was not a
registered mutual fund, and therefore was not subject to certain investment
and tax restrictions which may have adversely affected performance. The common
trust fund changed its investment strategy in January, 1997, as described in
the Fund's prospectus.
11
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
PITCAIRN FUNDS October 31, 2000
DIVERSIFIED VALUE FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (97.4%)
AEROSPACE & DEFENSE (3.5%)
Boeing 32,710 $ 2,218
General Dynamics 31,320 2,241
United Technologies 20,010 1,397
----------
5,856
----------
AIR TRANSPORTATION (0.9%)
FedEx* 33,945 1,591
----------
APPAREL/TEXTILES (0.6%)
Jones Apparel Group* 33,230 924
----------
AUTOMOTIVE (1.0%)
Ford Motor 38,105 995
General Motors 10,440 649
----------
1,644
----------
BANKS (11.4%)
Bank of America 43,565 2,094
Bank of New York 25,810 1,486
Bank One 52,030 1,899
BB&T 52,335 1,668
Chase Manhattan 37,760 1,718
Compass Bancshares 61,271 1,114
FleetBoston Financial 49,960 1,898
Mellon Financial 34,820 1,680
PNC Financial Services Group 25,691 1,718
Sovereign Bancorp 161,010 1,338
Wells Fargo 51,293 2,376
----------
18,989
----------
BEAUTY PRODUCTS (3.0%)
Kimberly-Clark 21,505 1,419
Procter & Gamble 50,280 3,592
----------
5,011
----------
BROADCASTING, NEWSPAPERS & ADVERTISING (2.7%)
AT&T - Liberty Media* 78,805 1,418
EW Scripps 28,395 1,659
New York Times, Cl A 37,720 1,386
----------
4,463
----------
CHEMICALS (1.3%)
Dow Chemical 35,710 1,094
EI du Pont de Nemours 22,945 1,041
----------
2,135
----------
COMMUNICATIONS EQUIPMENT (0.6%)
Motorola 41,915 1,045
----------
COMPUTERS & SERVICES (3.1%)
Compaq Computer 57,780 1,757
Hewlett-Packard 35,778 1,661
International Business Machines 16,830 1,658
----------
5,076
----------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
CONTAINERS & PACKAGING (0.6%)
Bemis 37,275 $ 964
----------
DATA PROCESSING (1.9%)
Automatic Data Processing 24,250 1,584
First Data 30,064 1,507
----------
3,091
----------
DIVERSIFIED MANUFACTURING (1.6%)
Illinois Tool Works 19,340 1,075
Minnesota Mining & Manufacturing 15,815 1,528
----------
2,603
----------
DRUGS (5.1%)
Abbott Laboratories 44,375 2,344
American Home Products 17,780 1,129
Bristol-Myers Squibb 32,455 1,978
Merck 33,705 3,031
----------
8,482
----------
ELECTRICAL SERVICES (4.4%)
Constellation Energy Group 35,935 1,498
Emerson Electric 24,370 1,790
Energy East 60,260 1,217
Northeast Utilities 48,665 992
Pinnacle West Capital 39,716 1,725
----------
7,222
----------
ENTERTAINMENT (1.4%)
Walt Disney* 63,685 2,281
----------
FINANCIAL SERVICES (10.7%)
American Express 31,610 1,897
Citigroup 119,272 6,277
Fannie Mae 32,849 2,529
JP Morgan 11,445 1,894
Merrill Lynch 33,010 2,311
Morgan Stanley Dean Witter 34,505 2,771
----------
17,679
----------
FOOD, BEVERAGE & TOBACCO (3.7%)
Anheuser-Busch 44,900 2,054
Conagra Foods 47,096 1,007
HJ Heinz 40,494 1,698
McCormick 41,434 1,313
----------
6,072
----------
GAS/NATURAL GAS (0.8%)
Enron 16,427 1,348
----------
HOTELS & LODGING (0.8%)
Starwood Hotels & Resorts Worldwide 42,905 1,271
----------
HOUSEHOLD PRODUCTS (0.5%)
Fortune Brands 32,050 943
----------
12
<PAGE>
INSURANCE (6.2%)
Allmerica Financial 20,311 $ 1,281
Allstate 55,025 2,215
American International Group 39,549 3,876
Marsh & McLennan 10,430 1,364
St. Paul Companies 30,925 1,585
----------
10,321
----------
LEISURE PRODUCTS (0.8%)
Brunswick 65,840 1,280
----------
MACHINERY (0.8%)
Dover 30,395 1,290
----------
MEDICAL PRODUCTS & SERVICES (2.9%)
Johnson & Johnson 33,826 3,116
UnitedHealth Group 15,575 1,704
----------
4,820
----------
METAL & METAL INDUSTRIES (0.4%)
Alcoa 25,065 719
----------
PAPER & PAPER PRODUCTS (0.7%)
Weyerhaeuser 24,245 1,138
----------
PETROLEUM & FUEL PRODUCTS (8.7%)
Amerada Hess 24,698 1,531
Chevron 14,910 1,224
Exxon Mobil 78,195 6,974
Helmerich & Payne 55,915 1,758
Unocal 36,247 1,237
USX-Marathon Group 62,431 1,697
----------
14,421
----------
PRINTING & PUBLISHING (0.6%)
Harcourt General 18,675 1,047
----------
REAL ESTATE INVESTMENT TRUSTS (1.5%)
AMB Property 51,075 1,200
Apartment Investment & Management 27,850 1,272
----------
2,472
----------
RETAIL (3.5%)
May Department Stores 71,000 1,864
McDonald's 38,435 1,191
Office Depot* 180,595 1,501
Safeway* 24,790 1,356
----------
5,912
----------
SEMI-CONDUCTORS/INSTRUMENTS (0.7%)
Intel 1 --
Johnson Controls 19,900 1,187
----------
1,187
----------
TELEPHONE & TELECOMMUNICATION (10.6%)
AT&T 84,861 1,968
AT&T Wireless Group* 39,375 982
BellSouth 50,890 2,459
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
TELEPHONE & TELECOMMUNICATION (CONTINUED)
CenturyTel 29,000 $ 1,117
SBC Communications 104,209 6,012
Verizon Communications 64,954 3,755
WorldCom* 53,755 1,277
----------
17,570
----------
WHOLESALE (0.4%)
Supervalu 39,640 609
----------
Total Common Stocks
(Cost $151,916) 161,476
----------
REGISTERED INVESTMENT COMPANY (2.5%)
iSharesSM Russell 1000
Value Index Fund 70,000 4,167
----------
Total Registered Investment Company
(Cost $3,945) 4,167
----------
REPURCHASE AGREEMENT (0.6%)
JP Morgan
6.30%, dated 10/31/00, matures
11/01/00, repurchase price
$1,000,600 (collateralized by
GNMA, par value $1,242,157,
6.500%, 02/15/28, total
market value $1,020,434) $1,000 1,000
----------
Total Repurchase Agreement
(Cost $1,000) 1,000
----------
Total Investments (100.5%)
(Cost $156,861) 166,643
----------
OTHER ASSETS AND LIABILITIES (-0.5%)
Other Assets 279
Investment Advisory Fee Payable (43)
Shareholder Servicing Fee Payable (34)
Other Liabilities (1,022)
----------
Total Other Assets and Liabilities, Net (820)
----------
Total Net Assets (100.0%) $165,823
==========
NET ASSETS CONSIST OF:
Portfolio Shares (unlimited authorization--
no par value) based on 15,765,613
outstanding shares of beneficial interest $ 156,082
Undistributed net investment income 205
Accumulated net realized loss on investments (246)
Net unrealized appreciation on investments 9,782
----------
Total Net Assets $ 165,823
==========
Net Asset Value, Offering and Redemption
Price Per Share $10.52
==========
* NON-INCOME PRODUCING SECURITY.
CL -- CLASS
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
AMOUNTS DESIGNATED AS "--" ROUND TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
13
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
PITCAIRN FUNDS October 31, 2000
SELECT VALUE FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS. (95.7%)
APPAREL/TEXTILES (1.6%)
Jones Apparel Group* 36,330 $ 1,010
--------
BANKS (17.9%)
BB&T 83,595 2,665
FleetBoston Financial 127,230 4,835
Mercantile Bankshares 51,495 1,937
North Fork Bancorporation 86,580 1,748
--------
11,185
--------
CHEMICALS (3.8%)
Dow Chemical 36,700 1,124
Engelhard 59,765 1,248
--------
2,372
--------
COMPUTERS & SERVICES (2.4%)
Affiliated Computer Services, Cl A* 14,995 835
Electronic Data Systems 14,210 667
--------
1,502
--------
DIVERSIFIED MANUFACTURING (2.8%)
Illinois Tool Works 31,115 1,729
--------
DRUGS (5.8%)
Merck 17,755 1,597
Mylan Laboratories 73,085 2,046
--------
3,643
--------
ELECTRICAL SERVICES (5.6%)
FPL Group 30,089 1,986
Pinnacle West Capital 34,300 1,490
--------
3,476
--------
FINANCIAL SERVICES (6.3%)
Bear Stearns 28,330 1,717
Fannie Mae 28,860 2,222
--------
3,939
--------
FOOD, BEVERAGE & TOBACCO (1.7%)
Supervalu 69,590 1,070
--------
HOTELS & LODGING (2.2%)
Starwood Hotels &
Resorts Worldwide 45,875 1,359
--------
HOUSEHOLD PRODUCTS (2.6%)
Fortune Brands 55,705 1,640
--------------------------------------------------------------------------------
Shares Value (000)
--------------------------------------------------------------------------------
INSURANCE (9.4%)
Allmerica Financial 32,800 $ 2,068
MGIC Investment 38,730 2,638
Nationwide Financial Services, Cl A 23,770 1,156
--------
5,862
--------
MEDICAL PRODUCTS & SERVICES (2.8%)
Becton Dickinson 51,480 1,725
--------
PETROLEUM & FUEL PRODUCTS (10.7%)
Exxon Mobil 49,995 4,459
Helmerich & Payne 29,850 938
USX-Marathon Group 46,585 1,267
--------
6,664
--------
RETAIL (5.5%)
Safeway* 26,605 1,455
Wendy's International 91,375 1,987
--------
3,442
--------
SOFTWARE (3.2%)
3Com* 37,105 659
Electronic Arts* 26,240 1,312
--------
1,971
--------
TELEPHONE & TELECOMMUNICATION (11.4%)
SBC Communications 65,801 3,796
Verizon Communications 41,360 2,391
WorldCom* 39,485 938
--------
7,125
--------
Total Common Stocks
(Cost $50,080) 59,714
--------
Preferred Stock (0.0%)
Fresenius Medical Care Holdings* 76,125 2
--------
Total Preferred Stock
(Cost $9) 2
--------
REGISTERED INVESTMENT COMPANY (4.0%)
iSharesSM Russell 1000 Value
Index Fund 41,850 2,491
--------
Total Registered Investment Company
(Cost $2,382) 2,491
--------
14
<PAGE>
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT (0.5%)
Morgan Stanley
6.30%, dated 10/31/00, matures
11/01/00, repurchase price $305,927
(collateralized by U.S. Treasury
obligation, par value $310,039,
5.375%, 02/15/01, total market
value $313,537) $306 $ 306
---------
Total Repurchase Agreement
(Cost $306) 306
---------
Total Investments (100.2%)
(Cost $52,777) 62,513
---------
OTHER ASSETS AND LIABILITIES (-0.2%)
Other Assets 2,675
Investment Advisory Fee Payable (10)
Shareholder Servicing Fee Payable (12)
Other Liabilities (2,774)
---------
Total Other Assets and Liabilities, Net (121)
---------
Total Net Assets (100.0%) $62,392
=========
NET ASSETS CONSIST OF:
Portfolio Shares (unlimited authorization--
no par value) based on 5,692,281
outstanding shares of beneficial interest $52,731
Undistributed net investment income 68
Accumulated net realized loss on investments (143)
Net unrealized appreciation on investments 9,736
---------
Total Net Assets $62,392
=========
Net Asset Value, Offering and Redemption
Price Per Share $10.96
=========
* NON-INCOME PRODUCING SECURITY.
CL -- CLASS
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
PITCAIRN FUNDS OCTOBER 31, 2000
SMALL CAP VALUE FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (93.2%)
AIR TRANSPORTATION (0.5%)
America West Holdings, Cl B* 30,200 $ 300
--------
APPAREL/TEXTILES (1.1%)
Phillips-Van Heusen 64,190 762
--------
AUTOMOTIVE (1.7%)
Oshkosh Truck 27,240 1,120
--------
BANKS (13.3%)
Bancwest 51,160 1,046
Bank United 21,640 1,227
Compass Bancshares 49,750 905
MAF Bancorp 44,660 1,072
PFF Bancorp 51,830 959
Provident Bankshares 58,880 1,115
Provident Financial Group 31,880 964
Texas Regional Bancshares 32,040 957
Webster Financial 31,855 776
--------
9,021
--------
BROADCASTING, NEWSPAPERS & ADVERTISING (1.0%)
Citadel Communications* 22,310 271
McClatchy, Cl A 10,700 407
--------
678
--------
BUILDING & CONSTRUCTION (0.9%)
Elcor 38,540 600
--------
CHEMICALS (1.8%)
OM Group 14,660 678
Omnova Solutions 99,960 562
--------
1,240
--------
CONTAINERS & PACKAGING (1.5%)
Aptargroup 24,000 496
Liqui-Box 13,820 495
--------
991
--------
DATA PROCESSING (0.3%)
InfoUSA* 70,062 228
--------
DENTAL SUPPLIES & EQUIPMENT (0.6%)
Patterson Dental* 13,520 423
--------
DIVERSIFIED MANUFACTURING (2.2%)
Myers Industries 56,647 751
Teleflex 22,185 767
--------
1,518
--------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
DRUGS (2.0%)
Geltex Pharmaceuticals* 13,350 $ 662
King Pharmaceuticals* 16,156 724
--------
1,386
--------
ELECTRICAL SERVICES (5.0%)
Allete 33,500 722
Cleco 19,800 942
Idacorp 19,825 978
WPS Resources 23,190 746
--------
3,388
--------
ELECTRONIC DEVICES (1.1%)
Sensormatic Electronics* 39,720 715
--------
FINANCIAL SERVICES (3.1%)
Doral Financial 60,730 1,086
Raymond James Financial 30,280 1,024
--------
2,110
--------
FOOD, BEVERAGE & TOBACCO (1.9%)
Del Monte Foods* 93,580 567
Michael Foods 26,665 718
--------
1,285
--------
FORESTRY (1.0%)
Rayonier 18,250 642
--------
GAS/NATURAL GAS (3.9%)
Energen 33,830 968
New Jersey Resources 19,695 787
Piedmont Natural Gas 27,710 845
--------
2,600
--------
HOTELS & LODGING (0.8%)
Aztar* 35,090 531
--------
HOUSEHOLD PRODUCTS (2.2%)
Furniture Brands International* 58,220 982
Libbey 17,710 483
--------
1,465
--------
INSURANCE (5.4%)
HCC Insurance Holdings 39,650 756
Philadelphia Consolidated Holding* 48,705 1,087
Radian Group 11,930 846
Stancorp Financial Group 23,460 956
--------
3,645
--------
INTERNET SERVICES (0.0%)
VelocityHSI* 5,636 6
--------
16
<PAGE>
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
LEASING & RENTING (1.1%)
United Rentals* 35,262 $ 758
--------
MACHINERY (2.6%)
Donaldson 35,490 803
Manitowoc 36,000 979
--------
1,782
--------
MEDICAL PRODUCTS & SERVICES (3.0%)
Cooper 11,980 428
Lincare Holdings* 19,630 826
MID Atlantic Medical Services* 46,830 796
--------
2,050
--------
METAL & METAL INDUSTRIES (0.9%)
Circor International 56,905 630
--------
MISCELLANEOUS BUSINESS SERVICES (0.8%)
Kforce.com* 59,710 243
Spherion* 27,650 328
--------
571
--------
PAPER & PAPER PRODUCTS (0.8%)
Buckeye Technologies* 30,380 520
--------
PETROLEUM & FUEL PRODUCTS (1.8%)
Atwood Oceanics* 7,100 238
Helmerich & Payne 9,195 289
Noble Affiliates 9,390 344
Paramount Resources Ltd. 35,737 368
--------
1,239
--------
PRINTING & PUBLISHING (1.8%)
Scholastic* 15,620 1,250
--------
PROFESSIONAL SPORTS (0.9%)
Championship Auto Racing Teams* 24,740 615
--------
REAL ESTATE (1.4%)
Catellus Development* 53,740 977
--------
REAL ESTATE INVESTMENT TRUSTS (10.2%)
BRE Properties, Cl A 28,200 892
Cabot Industrial Trust 42,790 808
Home Properties of NY 28,200 767
Innkeepers USA Trust 88,395 901
Liberty Property Trust 36,070 954
Macerich 39,340 772
Parkway Properties 27,770 795
Rouse 39,924 986
--------
6,875
--------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
RETAIL (5.3%)
Borders Group* 45,780 $ 635
Casey's General Stores 45,500 569
Cato, Cl A 36,820 442
Chico's FAS* 14,970 485
Dillards, Cl A 36,290 381
Pacific Sunwear of California* 25,380 520
REX Stores* 28,720 528
---------
3,560
---------
SEMI-CONDUCTORS/INSTRUMENTS (3.3%)
Dionex* 28,173 914
Electroglas* 16,240 228
Mettler Toledo International* 17,210 803
Photronics* 11,350 256
---------
2,201
---------
SOFTWARE (1.0%)
JDA Software Group* 18,720 282
Structural Dynamics Research* 34,360 354
---------
636
---------
STEEL & STEEL WORKS (3.2%)
Carpenter Technology 28,980 898
Reliance Steel & Aluminum 29,460 700
Worthington Industries 56,900 544
---------
2,142
---------
TELEPHONE & TELECOMMUNICATION (1.9%)
Arguss Communications* 22,760 285
Commscope* 17,610 446
Intermedia Communications* 7,100 157
Network Equipment Technologies* 41,946 398
---------
1,286
---------
TRANSPORTATION - TRUCKS (1.9%)
Covenant Transport, Cl A* 71,130 645
Werner Enterprises 47,025 658
---------
1,303
---------
Total Common Stocks
(Cost $58,257) 63,049
---------
REGISTERED INVESTMENT COMPANIES (5.9%)
iSharesSM Dow Jones US
Internet Index Fund 4,080 231
iSharesSM Russell 2000 Index Fund 9,030 894
iSharesSM Russell 2000
Value Index Fund 26,630 2,849
---------
Total Registered Investment Companies
(Cost $3,983) 3,974
---------
17
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
PITCAIRN FUNDS OCTOBER 31, 2000
SMALL CAP VALUE FUND--CONCLUDED
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
SECURITIES PLEDGED (SOLD SHORT) (0.0%)
First Union 52,361 $ 1,587
First Union (52,361) (1,587)
Modis Professional Services* 221,372 913
Modis Professional Services* (221,372) (913)
-------
Total Securities Pledged (Sold Short)
(Cost -$5,420) --
-------
REPURCHASE AGREEMENT (0.1%)
Morgan Stanley
6.30%, dated 10/31/00, matures
11/01/00, repurchase price
$81,937 (collateralized by
U.S. Treasury obligation,
par value $83,039, 5.375%,
02/15/01, total market
value $83,976) $82 82
-------
Total Repurchase Agreement
(Cost $82) 82
-------
Total Investments (99.2%)
(Cost $56,902) 67,105
-------
OTHER ASSETS AND LIABILITIES (0.8%)
Deposits for Securities Sold Short 2,616
Other Assets 383
Margin Loans from Brokers (2,041)
Investment Advisory Fee Payable (11)
Shareholder Servicing Fee Payable (14)
Other Liabilities (387)
-------
Total Other Assets and Liabilities, Net 546
-------
Total Net Assets (100.0%) $67,651
=======
NET ASSETS CONSIST OF:
Portfolio Shares (unlimited authorization--
no par value) based on 6,645,317
outstanding shares of beneficial interest $59,170
Undistributed net investment income 136
Accumulated net realized loss on investments (1,858)
Net unrealized appreciation on investments 10,203
-------
Total Net Assets $67,651
=======
Net Asset Value, Offering and Redemption
Price Per Share $10.18
=======
* NON-INCOME PRODUCING SECURITY.
CL -- CLASS
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
18
<PAGE>
--------------------------------------------------------------------------------
DIVERSIFIED GROWTH FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (94.8%)
BEAUTY PRODUCTS (0.7%)
Colgate-Palmolive 9,060 $ 532
Gillette 21,090 736
----------
1,268
----------
BIOMEDICAL SERVICES (2.5%)
Amgen* 29,480 1,708
Biogen* 14,621 880
Genentech* 8,266 682
Incyte Genomics* 15,700 575
PE-Celera Genomics Group* 7,690 519
----------
4,364
----------
BROADCASTING, NEWSPAPERS & ADVERTISING (1.4%)
Clear Channel Communications* 10,745 645
Infinity Broadcasting, Cl A* 26,007 865
Viacom, Cl B* 15,395 876
----------
2,386
----------
COMPUTER HARDWARE (7.7%)
Adaptec* 37,965 600
Cisco Systems* 201,562 10,859
Juniper Networks* 5,195 1,013
Network Appliance* 7,845 934
----------
13,406
----------
COMPUTERS & SERVICES (11.1%)
Comdisco 34,150 420
Compaq Computer 29,385 894
Dell Computer* 67,840 2,001
Electronic Data Systems 20,255 951
EMC-Mass* 62,964 5,608
Hewlett-Packard 20,770 965
International Business Machines 36,318 3,577
Sun Microsystems* 44,560 4,941
----------
19,357
----------
DIVERSIFIED MANUFACTURING (8.1%)
General Electric 259,713 14,236
----------
DRUGS (12.9%)
American Home Products 21,285 1,352
Bristol-Myers Squibb 40,667 2,478
Eli Lilly 25,145 2,247
King Pharmaceuticals* 22,440 1,006
Merck 44,333 3,987
Pfizer 176,968 7,643
Pharmacia 26,878 1,478
Schering-Plough 45,665 2,360
----------
22,551
----------
ELECTRICAL SERVICES (0.5%)
Calpine* 10,630 839
----------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
ELECTRONIC COMPONENTS (0.4%)
AVX 27,525 $ 788
----------
ELECTRONIC EQUIPMENT (2.9%)
Harmonic* 21,945 318
Lucent Technologies 96,986 2,261
Sanmina* 15,451 1,766
Solectron* 17,240 759
----------
5,104
----------
ENTERTAINMENT (1.1%)
Time Warner 26,168 1,986
----------
FINANCIAL SERVICES (0.8%)
Charles Schwab 39,211 1,377
----------
FOOD, BEVERAGE & TOBACCO (2.4%)
Coca-Cola 43,232 2,610
Sysco 29,268 1,527
----------
4,137
----------
GAS/NATURAL GAS (0.7%)
Enron 14,235 1,168
----------
INTERNET SERVICES (2.7%)
America Online* 58,575 2,954
Entrust Technologies* 22,690 696
VeriSign* 5,105 674
Yahoo* 6,171 362
----------
4,686
----------
MEDICAL PRODUCTS & SERVICES (2.1%)
Biomet 26,282 951
Guidant* 14,640 775
Medtronic 34,585 1,878
----------
3,604
----------
MISCELLANEOUS BUSINESS SERVICES (1.2%)
Cendant* 56,320 676
Paychex 15,035 852
Robert Half International* 16,758 511
----------
2,039
----------
PETROLEUM & FUEL PRODUCTS (0.5%)
Weatherford International* 23,480 857
----------
RETAIL (6.0%)
Family Dollar Stores 35,415 688
Gap 17,925 463
Home Depot 71,992 3,096
Staples* 51,035 727
Wal-Mart Stores 75,848 3,442
Walgreen 19,895 908
Whole Foods Market* 14,670 678
Williams-Sonoma* 22,299 464
----------
10,466
----------
19
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
PITCAIRN FUNDS OCTOBER 31, 2000
DIVERSIFIED GROWTH FUND--CONCLUDED
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS (12.1%)
Agilent Technologies* 16,234 $ 752
Altera* 8,095 331
Applied Materials* 33,068 1,757
Broadcom* 3,870 861
Conexant Systems* 18,464 486
Cree* 5,065 503
Intel 192,496 8,662
International Rectifier* 13,115 585
JDS Uniphase* 20,065 1,634
Microchip Technology* 18,003 569
Micron Technology* 12,280 427
Novellus Systems* 15,707 643
PMC - Sierra* 3,800 644
SDL* 1,969 510
Texas Instruments 49,139 2,411
Xilinx* 7,180 520
---------
21,295
---------
SOFTWARE (11.0%)
Ariba* 4,570 578
Aspect Communications* 32,400 534
BEA Systems* 9,915 711
Citrix Systems* 34,024 753
Computer Associates International 1 --
Electronic Arts* 21,178 1,059
Microsoft* 115,731 7,971
Oracle* 115,294 3,805
Peoplesoft* 34,330 1,498
Siebel Systems* 8,810 924
Veritas Software* 10,901 1,537
---------
19,370
---------
TELECOMMUNICATIONS EQUIPMENT (0.5%)
Tellabs* 16,809 839
---------
TELEPHONE & TELECOMMUNICATION (5.5%)
ADC Telecommunications* 16,475 352
CIENA* 7,940 835
Corning 23,445 1,794
Exodus Communications* 9,680 325
Metromedia Fiber Network* 15,280 290
Motorola 26,812 669
Nextel Communications* 15,365 591
Qualcomm* 23,633 1,539
Qwest Communications International* 12,330 600
Sprint Corp. (PCS Group)* 14,750 562
VoiceStream Wireless* 6,375 838
WinStar Communications* 21,225 414
WorldCom* 35,057 833
---------
9,642
---------
Total Common Stocks
(Cost $172,612) 165,765
---------
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANIES (2.1%)
iSharesSM Dow Jones US Internet
Index Fund 58,146 $ 3,298
iSharesSM Russell 1000 Growth
Index Fund 6,100 477
---------
Total Registered Investment Companies
(Cost $4,580) 3,775
---------
UNIT INVESTMENT TRUST (3.0%)
Nasdaq 100 Share Index 65,151 5,323
---------
Total Unit Investment Trust
(Cost $6,004) 5,323
---------
REPURCHASE AGREEMENT (0.2%)
Morgan Stanley
6.30%, dated 10/31/00, matures
11/01/00, repurchase price
$310,844 (collateralized by
U.S. Treasury obligation,
par value $315,023, 5.375%,
02/15/01, total market
value $318,577) $311 311
---------
Total Repurchase Agreement
(Cost $311) 311
---------
Total Investments (100.1%)
(Cost $183,507) 175,174
---------
OTHER ASSETS AND LIABILITIES, NET (-0.1%)
Other Assets 540
Investment Advisory Fee Payable (46)
Shareholder Servicing Fee Payable (37)
Other Liabilities (671)
---------
Total Other Assets and Liabilities, Net (214)
---------
Total Net Assets (100.0%) $ 174,960
=========
NET ASSETS CONSIST OF:
Portfolio Shares (unlimited authorization--
no par value) based on 19,061,465
outstanding shares of beneficial interest $184,206
Accumulated net realized loss on investments (913)
Net unrealized depreciation on investments (8,333)
---------
Total Net Assets $ 174,960
=========
Net Asset Value, Offering and Redemption
Price Per Share $9.18
=========
* NON-INCOME PRODUCING SECURITY.
CL -- CLASS
AMOUNTS DESIGNATED AS "--" ROUND TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
20
<PAGE>
SCHEDULE OF INVESTMENTS
--------------------------------------------------------------------------------
SELECT GROWTH FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (98.7%)
COMPUTERS & SERVICES (15.2%)
Dell Computer* 54,464 $ 1,607
EMC-Mass* 53,542 4,769
Hewlett-Packard 42,000 1,950
--------
8,326
--------
DATA PROCESSING (7.6%)
Automatic Data Processing 34,502 2,253
First Data 37,964 1,903
--------
4,156
--------
DIVERSIFIED MANUFACTURING (5.0%)
General Electric 50,196 2,751
--------
DRUGS (9.6%)
Merck 30,001 2,698
Pfizer 58,965 2,546
--------
5,244
--------
E-COMMERCE SERVICES (1.5%)
eBay* 16,151 832
--------
ELECTRICAL COMPONENTS (2.0%)
American Power Conversion* 82,505 1,067
--------
FINANCIAL SERVICES (6.9%)
Charles Schwab 54,464 1,913
T Rowe Price Associates 39,759 1,861
--------
3,774
--------
MEDICAL PRODUCTS & SERVICES (3.4%)
Medtronic 34,386 1,868
--------
MOTORCYCLES (4.9%)
Harley-Davidson 55,851 2,691
--------
RETAIL (12.3%)
Home Depot 52,618 2,263
Staples* 88,045 1,255
Tiffany & Co. 27,329 1,167
Wal-Mart Stores 45,349 2,058
--------
6,743
--------
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS (8.2%)
Intel 99,913 $ 4,496
--------
SOFTWARE (15.5%)
Cisco Systems* 97,684 5,263
Microsoft* 47,194 3,250
--------
8,513
--------
TELEPHONE & TELECOMMUNICATION (6.6%)
JDS Uniphase* 11,244 916
Nokia OYJ ADR 63,119 2,698
--------
3,614
--------
Total Common Stocks
(Cost $59,580) 54,075
--------
REPURCHASE AGREEMENT (0.8%)
Morgan Stanley
6.30%, dated 10/31/00, matures
11/01/00, repurchase price
$460,117 (collateralized by
U.S. Treasury obligation,
par value $466,302, 5.375%,
02/15/01, total market
value $471,563) $460 460
--------
Total Repurchase Agreement
(Cost $460) 460
--------
Total Investments (99.5%)
(Cost $60,040) 54,535
--------
OTHER ASSETS AND LIABILITIES (0.5%)
Other Assets 4,084
Investment Advisory Fee Payable (13)
Shareholder Servicing Fee Payable (11)
Other Liabilities (3,801)
--------
Total Other Assets and Liabilities, Net 259
--------
Total Net Assets (100.0%) $ 54,794
========
* NON-INCOME PRODUCING SECURITY.
ADR -- AMERICAN DEPOSITORY RECEIPT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
21
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
PITCAIRN FUNDS OCTOBER 31, 2000
SMALL CAP GROWTH FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (84.8%)
AIR TRANSPORTATION (4.7%)
Atlantic Coast Airlines Holdings* 29,800 $ 1,065
EGL* 27,400 781
Expeditors International
Washington* 13,900 721
Skywest 9,800 495
--------
3,062
--------
BANKS (0.3%)
Boston Private Financial Holdings 10,600 189
--------
BROADCASTING, NEWSPAPERS &
ADVERTISING (0.7%)
SBS Broadcasting* 14,800 442
--------
BUILDING & CONSTRUCTION (0.3%)
Dycom Industries* 6,000 226
--------
CHEMICALS (1.8%)
Symyx Technologies* 24,700 1,166
--------
DRUGS (5.3%)
Alkermes* 25,300 938
Angiotech Pharmaceuticals* 21,800 1,199
Cubist Pharmaceuticals* 20,900 898
Immunogen* 5,700 196
Pain Therapeutics* 10,000 214
--------
3,445
--------
ELECTRONIC COMPONENTS (2.9%)
Benchmark Electronics* 8,900 358
Manufacturers Services Ltd* 32,800 322
Merix* 24,400 1,140
Pixelworks* 2,500 83
--------
1,903
--------
INTERNET (6.2%)
Avocent* 29,600 2,100
Digex* 8,600 338
DoubleClick* 40,400 656
RSA Security* 8,100 470
WatchGuard Technologies* 10,100 505
--------
4,069
--------
MACHINERY (1.5%)
Capstone Turbine* 15,400 855
Satcon Technology* 4,900 125
--------
980
--------
MEDICAL PRODUCTS & SERVICES (16.4%)
Accredo Health* 27,300 1,181
Adac Laboratories* 28,100 365
Alexion Pharmaceuticals* 19,700 2,036
Ciphergen Biosystems* 15,100 468
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES--CONTINUED
COR Therapeutics* 27,600 $ 1,559
Eclipsys 13,700 338
Ilex Oncology* 30,800 1,117
Inhale Therapeutic Systems* 35,000 1,741
North American Scientific* 13,000 354
Rita Medical Systems* 25,000 306
Vical* 34,400 731
Xoma Ltd.* 40,100 489
--------
10,685
--------
MISCELLANEOUS BUSINESS SERVICES (7.0%)
Career Education* 33,800 1,308
Corporate Executive Board* 31,600 1,458
CoStar Group* 32,800 1,025
Diamond Technology Partners* 8,500 379
Vastera* 22,000 391
--------
4,561
--------
PETROLEUM & FUEL PRODUCTS (8.0%)
CAL Dive International* 20,700 1,030
Dril-Quip* 21,300 703
National-Oilwell* 27,900 816
Newfield Exploration* 12,900 487
Newpark Resources* 70,500 635
Shaw Group* 9,000 734
Universal Compression Holdings* 29,300 846
--------
5,251
--------
REAL ESTATE INVESTMENT TRUSTS (0.6%)
Pinnacle Holdings* 22,800 359
--------
RETAIL (0.8%)
Cost Plus* 19,700 552
--------
SCHOOLS (2.8%)
DeVry* 16,500 609
Edison Schools* 19,400 532
Learning Tree International* 15,300 692
--------
1,833
--------
SEMI-CONDUCTORS/INSTRUMENTS (10.1%)
Cree* 6,800 675
Dupont Photomasks* 400 22
Exar* 29,500 1,318
International Rectifier* 22,600 1,009
Kopin* 18,600 263
Photronics* 15,500 350
QLogic* 11,000 1,064
Semtech* 30,700 990
Silicon Image* 32,200 378
Veeco Instruments* 8,000 530
--------
6,599
--------
22
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
SOFTWARE (8.5%)
Aspen Technology* 31,300 $ 1,293
Caminus* 5,200 164
Computer Network Technology* 25,900 787
Daleen Technologies* 12,700 127
Emulex* 9,200 1,351
Matrixone* 18,700 555
Netegrity* 7,800 608
Smartforce PLC ADR* 12,800 644
--------
5,529
--------
TELEPHONE & TELECOMMUNICATION (5.4%)
Lexent* 11,000 318
Mastec* 20,400 590
Peco II* 15,700 618
SBA Communications* 12,100 607
SignalSoft* 17,900 509
Speechworks International* 5,500 458
Stanford Microdevices* 16,900 424
--------
3,524
--------
TRUCKING (1.5%)
Forward Air* 24,000 987
--------
Total Common Stocks
(Cost $46,057) 55,362
--------
UNIT INVESTMENT TRUST (6.9%)
Nasdaq 100 Share Index 26,000 2,124
Standard and Poor's Midcap 400
Index SPDR 25,200 2,394
--------
Total Unit Investment Trust
(Cost $4,749) 4,518
--------
REPURCHASE AGREEMENT (11.0%)
JP Morgan
6.50%, dated 10/31/00,
matures 11/01/00, repurchase
price $7,159,554 (collateralized
by various government
obligations, par value $8,522,605,
6.500%, 12/15/28 - 08/15/28,
total market value $7,301,427) $7,158 7,158
--------
Total Repurchase Agreement
(Cost $7,158) 7,158
--------
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
Total Investments (102.7%)
(Cost $57,964) $67,038
-------
OTHER ASSETS AND LIABILITIES (-2.7%)
Other Assets 366
Investment Advisory Fee Payable (24)
Shareholder Servicing Fee Payable (13)
Other Liabilities (2,075)
-------
Total Other Assets and Liabilities, Net (1,746)
-------
Total Net Assets (100.0%) $65,292
=======
NET ASSETS CONSIST OF:
Portfolio Shares (unlimited authorization--
no par value) based on 6,359,761
outstanding shares of beneficial interest $59,389
Accumulated net realized loss on investments (3,171)
Net unrealized appreciation on investments 9,074
-------
Total Net Assets $65,292
=======
Net Asset Value, Offering and Redemption
Price Per Share $10.27
=======
* NON-INCOME PRODUCING SECURITY.
ADR -- AMERICAN DEPOSITORY RECEIPT
PLC -- PUBLIC LIMITED COMPANY
SPDR -- STANDARD & POOR'S DEPOSITORY RECEIPT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
23
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
PITCAIRN FUNDS OCTOBER 31, 2000
FAMILY HERITAGE(REGISTER MARK) FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
-------------------------------------------------------------------------------
COMMON STOCKS (93.8%)
AEROSPACE & DEFENSE (1.3%)
General Dynamics 18,036 $ 1,291
--------
AIR TRANSPORTATION (0.3%)
Egl* 11,960 341
--------
AUTOMOTIVE (2.2%)
Ford Motor 76,315 1,994
Visteon 9,990 177
--------
2,171
--------
BANKS (10.3%)
Commerce Bancshares 78,206 2,810
Northern Trust 85,281 7,281
--------
10,091
--------
BEAUTY PRODUCTS (1.6%)
Estee Lauder, Cl A 33,075 1,536
--------
BROADCASTING, NEWSPAPERS &
ADVERTISING (3.0%)
Comcast, Cl A* 49,185 2,004
Havas Advertising ADR* 24,287 390
Knight Ridder 11,348 570
--------
2,964
--------
BUILDING & CONSTRUCTION (0.9%)
Florida Rock Industries 7,730 300
Toll Brothers* 17,325 563
--------
863
--------
CHEMICALS (2.7%)
Brady 20,591 638
Rohm & Haas 22,199 667
Sigma-Aldrich 37,466 1,339
--------
2,644
--------
COMPUTERS & SERVICES (5.0%)
Circle.com* 82,547 150
Dell Computer* 17,290 510
Hewlett-Packard 91,930 4,269
--------
4,929
--------
CONTAINERS & PACKAGING (0.6%)
Bemis 22,127 573
--------
DIVERSIFIED MANUFACTURING (2.5%)
AO Smith 23,662 334
Danaher 10,480 662
Illinois Tool Works 20,903 1,161
Lancaster Colony 14,837 350
--------
2,507
--------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
DRUGS (4.5%)
Eli Lilly 50,125 $ 4,480
--------
ELECTRONIC & OTHER ELECTRICAL
EQUIPMENT (4.0%)
Hubbell, Cl B 19,188 459
Molex, Cl A 56,175 2,208
Vishay Intertechnology* 40,796 1,224
--------
3,891
--------
ENGINEERING (0.4%)
Jacobs Engineering Group* 8,395 347
--------
ENTERTAINMENT (3.5%)
Carnival 67,076 1,664
Seagram Co. Ltd. 30,553 1,745
--------
3,409
--------
FINANCIAL SERVICES (1.4%)
Charles Schwab 38,510 1,353
--------
FOOD, BEVERAGE & TOBACCO (2.7%)
Campbell Soup 32,798 959
McCormick 15,242 483
Ralston Purina Group 49,010 1,188
--------
2,630
--------
HOTELS & LODGING (0.8%)
Marriott International, Cl A 19,899 806
--------
INSURANCE (5.1%)
Alleghany* 3,626 697
Berkshire Hathaway, Cl B* 738 1,552
Philadelphia Consolidated Holding* 46,475 1,037
Progressive Corp-Ohio 17,423 1,712
--------
4,998
--------
INTERNET (1.9%)
answerthink* 20,375 334
Digital River* 58,915 385
Earthweb* 29,515 373
eBay* 8,710 449
Yahoo* 5,085 298
--------
1,839
--------
MEDICAL PRODUCTS & SERVICES (4.5%)
Hillenbrand Industries 37,237 1,722
Stryker 44,305 2,088
West Pharmaceutical Services 29,795 655
--------
4,465
--------
MISCELLANEOUS BUSINESS SERVICES (2.2%)
Paychex 38,555 2,186
--------
24
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
PETROLEUM & FUEL PRODUCTS (4.7%)
Amerada Hess 19,464 $ 1,207
Mitchell Energy & Development, Cl A 33,404 1,537
Murphy Oil 15,873 920
Vintage Petroleum 45,345 958
--------
4,622
--------
PRINTING & PUBLISHING (3.1%)
Dow Jones 16,940 997
McGraw-Hill 25,575 1,642
RR Donnelley & Sons 19,190 413
--------
3,052
--------
RETAIL (6.0%)
Albertson's 19,731 467
Barnes & Noble* 19,800 374
Gap 53,481 1,380
Wal-Mart Stores 82,270 3,733
--------
5,954
--------
SEMI-CONDUCTORS/INSTRUMENTS (3.8%)
Agilent Technologies* 23,128 1,071
Broadcom, Cl A* 3,780 841
Galileo Technology Ltd.* 66,760 1,811
--------
3,723
--------
STEEL & STEEL WORKS (0.5%)
Worthington Industries 48,950 468
--------
SOFTWARE (9.9%)
Microsoft* 77,105 5,311
Oracle* 135,290 4,465
--------
9,776
--------
TELEPHONE & TELECOMMUNICATION (3.4%)
Global Crossing Ltd* 33,825 799
Qualcomm* 39,635 2,581
--------
3,380
--------
TRUCKING (0.4%)
Werner Enterprises 28,550 400
--------
WHOLESALE (0.6%)
WW Grainger 19,080 609
--------
Total Common Stocks
(Cost $88,682) 92,298
--------
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANIES (2.1%)
iSharesSM Russell 1000 Index Fund 21,655 $ 1,655
iSharesSM Russell 3000 Index Fund 5,615 443
-------
Total Registered Investment Companies
(Cost $2,108) 2,098
-------
UNIT INVESTMENT TRUST (4.1%)
Standard and Poor's 500
Index SPDR 28,040 4,008
-------
Total Unit Investment Trust
(Cost $3,718) 4,008
-------
REPURCHASE AGREEMENT (0.0%)
Morgan Stanley
6.30%, dated 10/31/00, matures
11/01/00, repurchase price
$52,318 (collateralized by
U.S. Treasury obligation,
par value $53,021,
5.375%, 02/15/01, total
market value $53,619) $52 52
-------
Total Repurchase Agreement
(Cost $52) 52
-------
Total Investments (100.0%)
(Cost $94,560) 98,456
-------
OTHER ASSETS AND LIABILITIES (0.0%)
Other Assets 323
Investment Advisory Fee Payable (38)
Shareholder Servicing Fee Payable (20)
Other Liabilities (301)
-------
Total Other Assets and Liabilities, Net (36)
-------
Total Net Assets (100.0%) $98,420
=======
NET ASSETS CONSIST OF:
Portfolio Shares (unlimited authorization--
no par value) based on 9,968,235
outstanding shares of beneficial interest $96,145
Accumulated net realized loss on investments (1,621)
Net unrealized appreciation on investments 3,896
-------
Total Net Assets $98,420
=======
Net Asset Value, Offering and Redemption
Price Per Share $9.87
=======
* NON-INCOME PRODUCING SECURITY.
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
SPDR -- STANDARD & POOR'S DEPOSITORY RECEIPT
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
25
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
PITCAIRN FUNDS OCTOBER 31, 2000
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
FOREIGN COMMON STOCKS (95.3%)
BELGIUM (0.0%)
Fortis (B) 45 $ 1
Fortis (B) Rights* 5 --
Fortis (B) STRIP* 3,170 --
-------
1
-------
BRAZIL (0.5%)
Embratel Participacoes ADR 54,231 878
Tele Celular Sul Participacoes ADR 2 --
Tele Centro Oeste Celular
Participacoes ADR 7 --
Tele Leste Celular Participacoes ADR 2 --
Tele Nordeste Celular
Participacoes ADR 3 --
Tele Norte Celular Participacoes ADR 1 --
Telemig Celular Participacoes ADR 3 --
-------
878
-------
CANADA (1.8%)
Nortel Networks 71,233 3,223
-------
CHINA (3.1%)
China Mobile (Hong Kong) Ltd.* 455,000 2,932
China Unicom* 1,222,000 2,452
-------
5,384
-------
FRANCE (13.4%)
Alcatel 43,794 2,669
Aventis 83,120 5,988
Carrefour Supermarche 25,960 1,740
Rhodia 76,684 958
Suez Lyonnaise Des Eaux 25,075 3,821
Total Fina Elf 19,645 2,807
Valeo 46,471 2,021
Vivendi 49,214 3,533
-------
23,537
-------
GERMANY (4.6%)
Allianz 8,215 2,789
Dresdner Bank 55,443 2,300
E.ON 51,595 2,620
MG Technologies 30,605 327
United Internet* 4,653 30
-------
8,066
-------
HONG KONG (2.4%)
Hutchison Whampoa 133,400 1,655
MTR* 181,000 268
Sun Hung Kai Properties Ltd. 279,000 2,307
-------
4,230
-------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
ITALY (8.2%)
Banca Nazionale Del Lavoro* 945,458 $ 3,061
ENI-Ente Nazionale Idrocarburi* 483,292 2,614
Gucci Group ADR 34,436 3,366
Mediaset* 254,205 3,674
TIM 202,058 1,716
-------
14,431
-------
JAPAN (20.8%)
Bridgestone 78,000 773
Fujitsu Ltd. 83,000 1,478
KAO 77,000 2,306
Matsushita Communication 15,200 1,991
Mizuho Holding* 416 3,196
Murata Manufacturing Ltd. 19,900 2,380
Nippon Telegraph & Telephone 381 3,465
Nissan Motor Company Ltd. 169,000 1,159
Nomura Securities Ltd. 82,000 1,739
NTT Docomo 117 2,882
Pioneer 57,000 1,764
Rohm Ltd. 13,900 3,502
Sakura Bank Ltd. 438,000 3,189
Shohkoh Fund Ltd. 4,790 393
Takeda Chemical Industries Ltd. 45,000 2,963
Takefuji 11,200 1,108
Yamanouchi Pharmaceutical Ltd. 47,000 2,126
-------
36,414
-------
MEXICO (0.9%)
Telefonos de Mexico ADR 29,231 1,577
-------
NETHERLANDS (11.1%)
Fortis 6 --
ING Groep 28,123 1,929
Koninklijke Ahold 104,093 3,020
Koninklijke Philips Electronics 44,129 1,732
KPNQwest 16,176 391
Royal KPN 166,168 3,362
Unilever 60,533 3,032
VNU 89,206 4,196
Wolters Kluwer 74,683 1,679
-------
19,341
-------
SINGAPORE (1.1%)
DBS Group Holdings Ltd. 161,000 1,898
-------
SOUTH KOREA (1.4%)
Korea Telecom ADR 29,798 1,099
Samsung Electronics GDR 144a (A) 200 15
SK Telecom Ltd. ADR 50,545 1,267
-------
2,381
-------
26
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
SPAIN (1.5%)
Telefonica 134,175 $ 2,555
----------
SWEDEN (2.2%)
Skandinaviska Enskilda
Banken, Cl A 65,119 767
Telefonaktiebolaget LM
Ericsson, Cl B 229,342 3,044
----------
3,811
----------
SWITZERLAND (1.6%)
Novartis 1,843 2,795
----------
THAILAND (0.0%)
Siam Commercial Bank Ltd. 59,533 5
----------
TURKEY (0.3%)
Turkcell Iletisim Hizmet ADR 43,338 474
----------
UNITED KINGDOM (20.4%)
AstraZeneca PLC 55,290 2,592
BAE Systems PLC 641,783 3,649
Cable & Wireless PLC 153,379 2,172
Colt Telecom Group PLC 98,193 3,137
Diageo PLC 395,907 3,740
Glaxo Wellcome PLC 124,324 3,582
HSBC Holdings PLC 230,382 3,285
Railtrack Group PLC 121,716 1,884
Reed International PLC 422,880 3,912
Tesco PLC 220,665 842
Vodafone Group PLC 1,667,765 6,944
----------
35,739
----------
Total Foreign Common Stocks
(Cost $148,439) 166,740
----------
FOREIGN PREFERRED STOCK (1.6%)
GERMANY (1.6%)
SAP* 14,289 2,889
----------
Total Foreign Preferred Stock
(Cost $2,422) 2,889
----------
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT (3.8%)
JP Morgan
6.50%, dated 10/31/00, matures
11/01/00, repurchase price
$6,571,972 (collateralized
by various GNMA, par value
$7,994,654, 6.500%-7.000%,
06/15/28-11/15/29, total market
value $6,702,169) $6,571 $ 6,571
---------
Total Repurchase Agreement
(Cost $6,571) 6,571
---------
Total Investments (100.7%)
(Cost $157,432) 176,200
---------
OTHER ASSETS AND LIABILITIES (-0.7%)
Other Assets 1,327
Investment Advisory Fee Payable (83)
Shareholder Servicing Fee Payable (37)
Other Liabilities (2,378)
---------
Total Other Assets and Liabilities, Net (1,171)
---------
Total Net Assets (100.0%) $ 175,029
=========
NET ASSETS CONSIST OF:
Portfolio Shares (unlimited authorization--
no par value) based on 18,860,467
outstanding shares of beneficial inter $155,943
Accumulated net investment loss (154)
Accumulated net realized gain on investments 488
Net unrealized depreciation on forward
foreign currency contracts, foreign currency,
and other assets and liabilities denominated
in foreign currency (16)
Net unrealized appreciation on investments 18,768
---------
Total Net Assets $ 175,029
=========
Net Asset Value, Offering and Redemption
Price Per Share $9.28
=========
* NON-INCOME PRODUCING SECURITY.
AMOUNTS DESIGNATED AS "--" ROUND TO $0.
(A) SECURITIES SOLD WITHIN THE TERMS OF A PRIVATE PLACEMENT MEMORANDUM, EXEMPT
FROM REGISTRATION UNDER SECTION 144A OF THE SECURITIES ACT OF 1933, AS
AMENDED, AND MAY BE SOLD ONLY TO DEALERS IN THAT PROGRAM OR OTHER
"ACCREDITED INVESTORS".THESE SECURITIES HAVE BEEN DETERMINED TO BE LIQUID
UNDER GUIDELINES ESTABLISHED BY THE BOARD OF TRUSTEES.
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
GDR -- GLOBAL DEPOSITORY RECEIPT
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
PLC -- PUBLIC LIMITED COMPANY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
27
<PAGE>
STATEMENT OF NET ASSETS
-------------------------------------------------------------------------------
PITCAIRN FUNDS OCTOBER 31, 2000
GOVERNMENT/CORPORATE BOND FUND
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (15.8%)
U.S. Treasury Bonds
8.125%, 08/15/19 $1,800 $ 2,224
7.875%, 02/15/21 680 827
7.625%, 11/15/22 659 789
7.500%, 11/15/16 918 1,057
7.250%, 05/15/16 867 976
--------
Total U.S. Treasury Obligations
(Cost $5,698) 5,873
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS (19.7%)
FHLB
5.865%, 09/02/08 475 452
FHLMC
7.000%, 03/15/10 715 730
6.750%, 09/15/29 2,600 2,578
FNMA
7.125%, 06/15/10 625 645
6.750%, 07/30/07 962 942
6.625%, 09/15/09 2,000 1,992
--------
Total U.S. Government Agency Obligations
(Cost $7,174) 7,339
--------
U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS (6.8%)
FHLMC REMIC, Ser 1489,
Cl G CMO
5.850%, 10/15/06 1,095 1,085
FNMA REMIC, Ser 2000-11,
Cl TC CMO
7.000%, 04/25/27 1,460 1,444
--------
Total U.S. Government Mortgage-
Backed Obligations
(Cost $2,545) 2,529
--------
ASSET-BACKED SECURITIES (19.9%)
American Express Credit Account,
Ser 2000-1, Cl A
7.200%, 09/17/07 1,000 1,017
American Express Master Trust,
Ser 1998-1, Cl A
5.900%, 04/15/04 1,460 1,435
Discover Master Trust,
Ser 1998-2, Cl A
5.800%, 09/16/03 1,730 1,723
Ford Credit Auto Owner Trust,
Ser 1998-B, Cl A3
5.850%, 10/15/01 260 259
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
ASSET-BACKED SECURITIES--CONTINUED
MBNA Master Credit Card Trust,
Ser 1998-J, Cl A
5.250%, 02/15/06 $1,675 $ 1,614
Standard Credit Card Master Trust,
Ser 1994-2, Cl A
7.250%, 04/07/06 1,326 1,345
--------
Total Asset-Backed Securities
(Cost $7,568) 7,393
--------
CORPORATE BONDS (35.9%)
APPAREL/TEXTILES (1.5%)
VF
9.500%, 05/01/01 550 556
--------
AUDIO/VIDEO PRODUCTS (3.2%)
Harman International
7.320%, 07/01/07 1,265 1,197
--------
BANKS (7.1%)
ABN AMRO Bank
7.300%, 12/01/26 1,201 1,085
FleetBoston Financial
6.625%, 12/01/05 1,583 1,537
--------
2,622
--------
FINANCIAL SERVICES (17.1%)
Associates MTN
7.580%, 04/12/04 1,460 1,480
Ford Motor Credit
7.750%, 11/15/02 987 1,003
7.250%, 01/15/03 290 290
General Motors Acceptance Corp.
6.875%, 07/15/01 228 228
5.850%, 01/14/09 1,655 1,479
Lehman Brothers
7.250%, 04/15/03 1,868 1,872
--------
6,352
--------
PETROLEUM & FUEL PRODUCTS (4.2%)
Lasmo USA
6.750%, 12/15/07 1,665 1,571
--------
PRINTING & PUBLISHING (0.2%)
Knight-Ridder
8.500%, 09/01/01 75 75
--------
RETAIL (2.6%)
Pep Boys-Manny Moe Jack
7.000%, 06/01/05 1,460 978
--------
Total Corporate Bonds
(Cost $14,242) 13,351
--------
28
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT (0.6%)
Morgan Stanley
6.30%, dated 10/31/00, matures
11/01/00, repurchase price
$238,279 (collateralized by
U.S. Treasury obligation,
par value $241,482, 5.375%,
02/15/01, total market
value $244,207) $238 $ 238
--------
Total Repurchase Agreement
(Cost $238) 238
--------
Total Investments (98.7%)
(Cost $37,465) 36,723
--------
OTHER ASSETS AND LIABILITIES (1.3%)
Receivable due from Adviser 7
Other Assets 717
Shareholder Servicing Fee Payable (8)
Other Liabilities (227)
--------
Total Other Assets and Liabilities, Net 489
--------
Total Net Assets (100.0%) $ 37,212
========
NET ASSETS CONSIST OF:
Portfolio Shares (unlimited authorization--
no par value) based on 3,688,602
outstanding shares of beneficial interest $37,930
Undistributed net investment income 33
Accumulated net realized loss on investments (9)
Net unrealized depreciation on investments (742)
--------
Total Net Assets $ 37,212
========
Net Asset Value, Offering and Redemption
Price Per Share $10.09
========
CL -- CLASS
CMO -- COLLATERALIZED MORTGAGE OBLIGATION
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT
SER -- SERIES
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
29
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
PITCAIRN FUNDS OCTOBER 31, 2000
TAX-EXEMPT BOND FUND
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
MUNICIPAL BONDS (97.5%)
ARIZONA (4.7%)
Maricopa County,
School District #6 GO, Ser C,
FGIC Callable 07/01/08 @ 100
4.000%, 07/01/10 $2,200 $ 2,052
Pima County, School District GO,
FGIC Callable 07/01/04 @ 101
5.875%, 07/01/14 1,500 1,552
Transportation Board Authority RB,
Marcopia County Regional Area,
Ser B, AMBAC
6.000%, 07/01/05 1,000 1,061
--------
4,665
--------
CALIFORNIA (8.1%)
Community College Finance
Authority RB, Mission
Community College, MBIA
Callable 05/01/07 @ 102
5.500%, 05/01/17 1,000 1,024
Health Facilities Financing
Authority RB, St. Francis
Memorial Hospital, Ser C, ETM
5.875%, 11/01/23 2,000 2,112
Public Works RB, Department of
Corrections, Ser A, AMBAC
Callable 01/01/06 @ 102
5.400%, 01/01/09 1,000 1,060
San Francisco Bay Area
Rapid Transit RB
Callable 07/01/08 @ 101
5.250%, 07/01/17 1,000 1,007
Stockton Housing Facility RB,
O'Connor Woods Project,
Ser A, ETM, GNMA
Callable 03/20/03 @ 102
5.200%, 09/20/09 790 812
University of California RB,
Multi-Purpose Projects, Ser F,
FGIC Callable 09/01/06 @ 101
5.000%, 09/01/12 2,000 2,032
--------
8,047
--------
CONNECTICUT (1.1%)
Housing Finance Authority RB,
Sub-series E-1, GOA
Callable 11/15/06 @102
5.900%, 05/15/15 1,000 1,034
--------
DISTRICT OF COLUMBIA (1.0%)
District of Columbia RB, Howard
University Project, MBIA
5.500%, 10/01/16 1,000 1,009
--------
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
-------------------------------------------------------------------------------
FLORIDA (2.1%)
Board Education Capital
Outlay GO, Ser A
5.500%, 01/01/05 $1,000 $ 1,035
Sunrise, Utility System RB, Ser A,
AMBAC Pre-refunded @ 101
5.750%, 10/01/26 1,000 1,068
--------
2,103
--------
GEORGIA (3.2%)
Henry County, Water & Sewer
Authority RB, AMBAC
6.150%, 02/01/20 2,000 2,157
Municipal Electric Authority RB,
Project One, Ser A, MBIA
5.000%, 01/01/12 1,000 999
--------
3,156
--------
HAWAII (2.1%)
Honolulu, City & County GO,
Ser B, ETM
8.000%, 10/01/10 1,680 2,100
--------
ILLINOIS (8.1%)
Chicago GO, FGIC
Callable 01/01/08 @ 102
5.500%, 01/01/21 1,500 1,485
Chicago, Board of Education GO,
School Reform Board,
Ser A, FGIC
5.250%, 12/01/20 1,000 965
Chicago, Park District GO,
Aquarium & Museum Project,
FGIC Callable 01/01/08 @ 100
5.500%, 01/01/10 1,000 1,036
Health Facilities Authority RB,
Hospital Sisters Services
Project, Ser A, MBIA
Callable 06/01/08 @ 101
5.250%, 06/01/12 1,000 1,000
Metropolitan Pier & Exposition
Authority RB, McCormick Place
Expansion Project, Ser A, FGIC
5.500%, 12/15/23 1,000 989
Regional Transportation GO, FSA
5.750%, 06/01/23 1,500 1,530
Southern Illinois University RB,
Medical Facilities System Project,
MBIA Callable 04/01/07 @ 102
5.875%, 04/01/23 1,000 1,015
--------
8,020
--------
30
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
INDIANA (4.2%)
Indianapolis, Public Improvement
Authority RB, Ser A
5.500%, 02/01/08 $1,000 $ 1,046
Indianapolis, Public Improvement
Authority RB, Ser A
Callable 01/01/10 @ 101
6.000%, 01/01/25 1,000 1,036
Indianapolis, Utility District
Authority RB, Ser B
4.000%, 06/01/13 1,000 906
Transportation Finance
Authority RB, Ser A, MBIA
6.800%, 12/01/16 1,000 1,151
-------
4,139
-------
KANSAS (1.1%)
Burlington, Pollution Control
Authority RB, Kansas Gas &
Electric Project, MBIA
Callable 06/01/01 @ 102
7.000%, 06/01/31 1,000 1,033
-------
LOUISIANA (3.2%)
New Orleans GO, FGIC
5.500%, 12/01/17 1,000 1,014
Public Facilities Authority RB,
Franciscan Missionaries
Project, Ser A, FSA
5.500%, 07/01/11 2,115 2,178
-------
3,192
-------
MASSACHUSETTS (5.1%)
State Housing Finance
Agency RB, Ser B, MBIA
Callable 06/01/08 @ 101
5.300%, 12/01/17 1,000 979
State Special Obligation RB,
Consolidated Loan,
Ser A Callable 06/01/08 @ 101
5.000%, 06/01/15 1,000 971
State Turnpike Authority RB,
Ser A, ETM, FGIC
5.125%, 01/01/23 2,000 1,930
State Water Resoucres
Authority RB, Ser D,
MBIA, GOA
6.000%, 08/01/14 1,060 1,153
-------
5,033
-------
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
MICHIGAN (3.4%)
Parchment, School District
GO, MBIA
5.000%, 05/01/25 $1,000 $ 939
State Building Authority RB,
Facilities Program,
Ser I, AMBAC
5.500%, 10/01/05 1,000 1,040
State Hospital Finance
Authority RB, Genesys
Health System Project, Ser A
Callable 10/01/05 @ 102
8.100%, 10/01/13 1,175 1,367
--------
3,346
--------
MINNESOTA (1.0%)
Southern Minnesota Municipal
Power Agency RB, Ser B, ETM
Callable 01/01/03 @ 102
5.750%, 01/01/11 1,000 1,034
--------
MISSISSIPPI (0.9%)
Developing Bank RB, Capital
Project & Equipment
Acquisition, Ser A2, AMBAC
5.000%, 07/01/24 1,000 927
--------
NEVADA (1.7%)
Clark County, School
District GO, Ser A, MBIA
Pre-refunded @ 101
5.750%, 06/15/10 1,560 1,648
--------
NEW JERSEY (0.7%)
New Jersey State Transportation
System, RB
5.625%, 06/15/14 500 527
New Jersey State, GO, Ser D
6.000%, 02/15/11 150 164
--------
691
--------
NEW MEXICO (1.6%)
Santa Fe County RB, Correctional
Facilities Project
6.000%, 02/01/27 1,500 1,599
--------
NEW YORK (6.4%)
New York City, Metropolitan
Transportation Authority RB,
Ser A, FSA Pre-refunded @102
6.100%, 07/01/26 1,000 1,094
31
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
PITCAIRN FUNDS OCTOBER 31, 2000
TAX-EXEMPT BOND FUND--CONCLUDED
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
NEW YORK--CONTINUED
New York City, Municipal
Assistance Authority RB, Ser G
6.000%, 07/01/07 $1,800 $ 1,942
New York City, Transportation
Authority RB, Livingston Plaza
Project, FSA
5.400%, 01/01/18 1,000 1,011
New York State, Highway & Bridge
Toll Authority RB, Ser A, FGIC
5.250%, 04/01/03 1,200 1,223
Suffolk County, Water Authority RB,
Senior Lien, MBIA
5.100%, 06/01/04 1,050 1,072
---------
6,342
---------
NORTH CAROLINA (3.0%)
North Carolina, Eastern Municipal
Power Authority RB,
Ser B, AMBAC
5.125%, 01/01/12 2,000 1,993
North Carolina, Eastern
Municipal Power Authority RB,
Ser B, MBIA
5.800%, 01/01/16 1,000 1,026
---------
3,019
---------
OKLAHOMA (6.0%)
Oklahoma City, Water Utilties
Auhority RB, Ser A
5.000%, 07/01/24 3,000 2,726
Oklahoma State, Health Systems
Industries Authority RB,
Integris Baptist Project,
Ser D, AMBAC
5.000%, 08/15/14 2,000 1,895
Tulsa County, Independent
School District GO
4.400%, 02/01/02 1,325 1,323
---------
5,944
---------
PENNSYLVANIA (10.1%)
Allegheny County, Pittsburgh
International Airport RB,
Ser B, MBIA
5.000%, 01/01/17 2,000 1,910
Pennsylvania State, Finance
Authority RB, Municipal
Capital Improvements Program
6.600%, 11/01/09 1,285 1,369
--------------------------------------------------------------------------------
FACE AMOUNT
(000) VALUE (000)
--------------------------------------------------------------------------------
PENNSYLVANIA--CONTINUED
Pennsylvania State, Higher
Educational Facilities
Authority RB, Drexel University,
State Aid Withholding, MBIA
6.800%, 05/01/06 $1,560 $ 1,671
Philadelphia, Hospital &
Higher Education Authority RB,
Presbyterian Medical Center
Project, ETM
6.500%, 12/01/11 1,300 1,454
Sayre, Healthcare Facilities
Authority RB, Veterans
Hospital East Wing Project,
Ser A, AMBAC, ETM
6.100%, 07/01/02 700 718
Schuylkill County, Redevelopment
Authority RB, Commonwealth
Lease Project, Ser A, FGIC
7.125%, 06/01/13 1,400 1,449
6.650%, 06/01/01 1,400 1,418
--------
9,989
--------
RHODE ISLAND (1.1%)
Rhode Island, Depositors Economic
Protection Authority RB,
Special Obligation,
Series A, ETM
6.375%, 08/01/22 1,000 1,113
--------
SOUTH CAROLINA (1.1%)
Piedmont, Municipal Power
Agency Authority RB,
South Carolina Electric
Project, MBIA, ETM
6.250%, 01/01/09 1,000 1,101
--------
TEXAS (3.9%)
Harris County, Healthcare
Facilities Development
Authority RB, Christus
Health Project, Ser A, MBIA
5.375%, 07/01/24 1,850 1,725
Harris County, Healthcare
Facilities Development
Authority RB, Hermann
Hospital Project, MBIA
Pre-refunded @ 101
6.375%, 10/01/24 1,000 1,070
Houston, Water & Sewer Systems
Authority RB, Junior Lien,
Ser C, FGIC
5.375%, 12/01/27 1,140 1,090
--------
3,885
--------
32
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FACE AMOUNT
(000)/SHARES VALUE (000)
--------------------------------------------------------------------------------
VIRGINIA (1.0%)
Virginia State Housing Development
Authority, RB Ser B
5.500%, 01/01/16 $1,000 $ 999
---------
WASHINGTON (9.2%)
Central Puget Sound, Regional
Transportation Authority RB,
Sales Tax & Motor Project, FGIC
5.250%, 02/01/21 1,000 968
Clark County, School District
No.117 GO, AMBAC
5.250%, 12/01/14 1,000 1,008
Seattle, Limited Tax GO,
5.250%, 03/01/04 2,000 2,043
Washington State GO, Ser R92-A
6.625%, 09/01/06 1,000 1,027
Washington State, Public Power
Supply Systems RB, Nuclear
Power Project No. 2, FGIC
5.550%, 07/01/10 2,000 2,028
Washington State, Public Power
Supply Systems RB, Ser A, MBIA
5.000%, 07/01/09 1,000 1,005
Washington State, Ser B, GO
Callable 05/01/04 @ 100
5.750%, 05/01/10 1,000 1,031
---------
9,110
---------
WISCONSIN (2.4%)
Milwaukee County GO,
Ser A, MBIA
5.250%, 10/01/08 1,000 1,028
Wisconsin State GO, Ser C
5.000%, 05/01/04 1,375 1,396
---------
2,424
---------
Total Municipal Bonds
(Cost $95,002) 96,702
---------
SHORT-TERM INVESTMENT (1.2%)
SEI Institutional
Tax-Free Portfolio 1,238,531 1,238
---------
Total Short-Term Investment
(Cost $1,238) 1,238
---------
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
Total Investments (98.7%)
(Cost $96,240) $97,940
-------
OTHER ASSETS AND LIABILITIES (1.3%)
Receivable due from Adviser 14
Other Assets 1,710
Shareholder Servicing Fee Payable (21)
Other Liabilities (456)
-------
Total Other Assets and Liabilities, Net 1,247
-------
Total Net Assets (100.0%) $99,187
=======
NET ASSETS CONSIST OF:
Portfolio Shares (unlimited authorization--
no par value) based on 9,880,812
outstanding shares of beneficial interest $97,496
Undistributed net investment income 41
Accumulated net realized loss on investments (50)
Net unrealized appreciation on investments 1,700
-------
Total Net Assets $99,187
=======
Net Asset Value, Offering and Redemption
Price Per Share $10.04
=======
ETM -- ESCROWED TO MATURITY
GNMA -- GENERAL NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
GOA -- GENERAL OBLIGATION OF AUTHORITY
RB -- REVENUE BOND
SER -- SERIES
THE FOLLOWING ORGANIZATIONS HAVE PROVIDED UNDERLYING CREDIT SUPPORT FOR
SECURITIES LISTED ABOVE, AS INDICATED.
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
FGIC -- FINANCIAL GUARANTY INSURANCE CORPORATION
FSA -- FINANCIAL SECURITY ASSURANCE
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
33
<PAGE>
This page intentionally left blank.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES (000)
--------------------------------------------------------------------------------
PITCAIRN FUNDS OCTOBER 31, 2000
SELECT
GROWTH
FUND
-------
ASSETS:
Investment securities (Cost $60,040) at market value $54,535
Receivable for investment securities sold 3,666
Receivable for capital shares sold 405
Deferred Offering Costs 13
-------
Total Assets 58,619
-------
LIABILITIES:
Payable for investment securities purchased 3,744
Payable for capital shares redeemed 21
Investment advisory fee payable 13
Shareholder servicing fee payable 11
Other Accrued expenses 36
-------
Total Liabilities 3,825
-------
TOTAL NET ASSETS $54,794
=======
NET ASSETS CONSIST OF:
Portfolio Shares (unlimited authorization-- no par value)
based on 6,075,477 outstanding shares of beneficial interest $60,311
Accumulated net realized loss on investments (12)
Net unrealized depreciation on investments (5,505)
-------
TOTAL NET ASSETS $54,794
=======
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $9.02
=======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
35
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS (000)
------------------------------------------------------------------------------------------------------------------------------------
PITCAIRN FUNDS FOR THE PERIOD ENDED OCTOBER 31, 2000
DIVERSIFIED SELECT SMALL CAP
VALUE VALUE VALUE
FUND FUND FUND
-------------- -------------- --------------
08/04/00(1)- 08/11/00(1)- 08/25/00(1)-
10/31/00 10/31/00 10/31/00
-------------- -------------- --------------
INCOME:
<S> <C> <C> <C>
Dividend Income $ 597 $ 212 $ 245
Interest Income 7 9 30
Less: Foreign Taxes Withheld -- -- --
------ ------ ------
Total Income 604 221 275
------ ------ ------
EXPENSES:
Investment Advisory Fees 244 79 82
Less: Investment Advisory Fees Waived (77) (37) (39)
Administrator Fees 28 15 12
Shareholder Servicing Fees 87 28 29
Transfer Agent Fees 10 9 9
Professional Fees 34 11 15
Registration Fees -- 1 1
Custody Fees 3 1 1
Printing Expense 2 -- 1
Trustee Fees 2 1 1
Amortization of Deferred Offering Costs 14 4 5
Insurance and Other Expenses 2 1 1
------ ------ ------
Total Operating Expenses 349 113 118
Interest Expense -- -- 26
------ ------ ------
Total Expenses 349 113 144
------ ------ ------
Net Investment Income (Loss) 255 108 131
------ ------ ------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net Realized Gain (Loss) on Securities Sold (246) (143) (1,858)
Net Realized Loss on Foreign Currency Transactions -- -- --
Net Change in Unrealized Depreciation on Translation of Foreign Currency
and Other Assets and Liabilities Denominated in Foreign Currency -- -- --
Net Change in Unrealized Appreciation (Depreciation) on Investments 6,837 5,118 2,923
------ ------ ------
Total Net Realized and Unrealized Gain (Loss) on Investments 6,591 4,975 1,065
------ ------ ------
Net Increase (Decrease) in Net Assets from Operations $6,846 $5,083 $1,196
====== ====== ======
DIVERSIFIED SELECT SMALL CAP
GROWTH GROWTH GROWTH
FUND FUND FUND
-------------- -------------- --------------
08/04/00(1)- 08/11/00(1)- 08/11/00(1)-
10/31/00 10/31/00 10/31/00
-------------- -------------- --------------
INCOME:
Dividend Income $ 125 $ 40 $ 6
Interest Income 7 17 69
Less: Foreign Taxes Withheld -- -- --
-------- ------- ------
Total Income 132 57 75
-------- ------- ------
EXPENSES:
Investment Advisory Fees 289 89 132
Less: Investment Advisory Fees Waived (88) (37) (41)
Administrator Fees 33 15 15
Shareholder Servicing Fees 103 26 35
Transfer Agent Fees 9 9 9
Professional Fees 40 11 15
Registration Fees -- 1 1
Custody Fees 4 1 1
Printing Expense 2 1 --
Trustee Fees 2 -- 1
Amortization of Deferred Offering Costs 18 4 5
Insurance and Other Expenses 1 -- 1
-------- ------- ------
Total Operating Expenses 413 120 174
Interest Expense -- -- --
-------- ------- ------
Total Expenses 413 120 174
-------- ------- ------
Net Investment Income (Loss) (281) (63) (99)
-------- ------- ------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net Realized Gain (Loss) on Securities Sold (913) 47 (3,171)
Net Realized Loss on Foreign Currency Transactions -- -- --
Net Change in Unrealized Depreciation on Translation of Foreign Currency
and Other Assets and Liabilities Denominated in Foreign Currency -- -- --
Net Change in Unrealized Appreciation (Depreciation) on Investments (16,291) (5,060) 4,486
-------- ------- ------
Total Net Realized and Unrealized Gain (Loss) on Investments (17,204) (5,013) 1,315
-------- ------- ------
Net Increase (Decrease) in Net Assets from Operations $(17,485) $(5,076) $1,216
======== ======= ======
FAMILY INTERNATIONAL GOVERNMENT/
HERITAGE(R) EQUITY CORPORATE BOND
FUND FUND FUND
-------------- ---------------- ----------------
08/04/00(1)- 08/04/00(1)- 08/04/00(1)-
10/31/00 10/31/00 10/31/00
-------------- ---------------- ----------------
INCOME:
Dividend Income $ 185 $ 341 $--
Interest Income 6 63 626
Less: Foreign Taxes Withheld (1) (54) --
------ -------- ----
Total Income 190 350 626
------ -------- ----
EXPENSES:
Investment Advisory Fees 189 377 35
Less: Investment Advisory Fees Waived (51) (111) (34)
Administrator Fees 17 32 16
Shareholder Servicing Fees 52 99 22
Transfer Agent Fees 9 9 9
Professional Fees 20 38 8
Registration Fees 2 3 --
Custody Fees 2 25 1
Printing Expense 1 2 --
Trustee Fees 1 2 --
Amortization of Deferred Offering Costs 9 17 3
Insurance and Other Expenses 1 3 1
------ -------- ----
Total Operating Expenses 252 496 61
Interest Expense -- -- --
------ -------- ----
Total Expenses 252 496 61
------ -------- ----
Net Investment Income (Loss) (62) (146) 565
------ -------- ----
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net Realized Gain (Loss) on Securities Sold (1,621) 488 (9)
Net Realized Loss on Foreign Currency Transactions -- (25) --
Net Change in Unrealized Depreciation on Translation of Foreign Currency
and Other Assets and Liabilities Denominated in Foreign Currency -- (8) --
Net Change in Unrealized Appreciation (Depreciation) on Investments 1,143 (16,217) 275
------ -------- ----
Total Net Realized and Unrealized Gain (Loss) on Investments (478) (15,762) 266
------ -------- ----
Net Increase (Decrease) in Net Assets from Operations $ (540) $(15,908) $831
====== ======== ====
TAX-EXEMPT
BOND
FUND
--------------
08/11/00(1)-
10/31/00
--------------
INCOME:
Dividend Income $ --
Interest Income 1,171
Less: Foreign Taxes Withheld --
------
Total Income 1,171
------
EXPENSES:
Investment Advisory Fees 64
Less: Investment Advisory Fees Waived (55)
Administrator Fees 17
Shareholder Servicing Fees 53
Transfer Agent Fees 9
Professional Fees 25
Registration Fees 2
Custody Fees 2
Printing Expense 1
Trustee Fees 1
Amortization of Deferred Offering Costs 8
Insurance and Other Expenses 1
------
Total Operating Expenses 128
Interest Expense --
------
Total Expenses 128
------
Net Investment Income (Loss) 1,043
------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net Realized Gain (Loss) on Securities Sold (50)
Net Realized Loss on Foreign Currency Transactions --
Net Change in Unrealized Depreciation on Translation of Foreign Currency
and Other Assets and Liabilities Denominated in Foreign Currency --
Net Change in Unrealized Appreciation (Depreciation) on Investments 390
------
Total Net Realized and Unrealized Gain (Loss) on Investments 340
------
Net Increase (Decrease) in Net Assets from Operations $1,383
======
(1) Commencement of operations.
Amounts designated as "--" round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</TABLE>
36 & 37
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (000)
------------------------------------------------------------------------------------------------------------------------------------
PITCAIRN FUNDS FOR THE PERIOD ENDED OCTOBER 31, 2000
DIVERSIFIED SELECT SMALL CAP DIVERSIFIED
VALUE VALUE VALUE GROWTH
FUND FUND FUND FUND
------------ ------------ ------------ ------------
08/04/00(1)- 08/11/00(1)- 08/25/00(1)- 08/04/00(1)-
10/31/00 10/31/00 10/31/00 10/31/00
------------ ------------ ------------ -------------
OPERATIONS:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) $ 255 $ 108 $ 131 $ (281)
Net Realized Gain (Loss) on Investments (246) (143) (1,858) (913)
Net Change in Unrealized Appreciation
(Depreciation) on Investments and
Foreign Currency Transactions 6,837 5,118 2,923 (16,291)
-------- ------- ------- --------
Increase (Decrease) in Net Assets from Operations 6,846 5,083 1,196 (17,485)
-------- ------- ------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income (64) (44) -- --
Capital Gains -- -- -- --
-------- ------- ------- --------
Total Distributions (64) (44) -- --
-------- ------- ------- --------
CAPITAL TRANSACTIONS:
Proceeds from Shares Issued in Connection
with In-Kind Contributions/Common Trust
Fund Conversions 160,376 44,094 65,250 194,371
Proceeds from Shares Issued 3,979 13,779 2,783 5,273
Reinvestment of Distributions 1 -- -- --
Cost of Shares Repurchased (5,315) (520) (1,578) (7,199)
-------- ------- ------- --------
Increase in Net Assets From Capital Transactions 159,041 57,353 66,455 192,445
-------- ------- ------- --------
Total Increase in Net Assets 165,823 62,392 67,651 174,960
-------- ------- ------- --------
NET ASSETS:
Beginning of Period -- -- -- --
-------- ------- ------- --------
End of Period $165,823 $62,392 $67,651 $174,960
======== ======= ======= ========
SHARE TRANSACTIONS:
Shares Issued in Connection with In-Kind
Contributions/Common Trust Fund Conversions 15,897 4,409 6,525 19,275
Shares Issued 393 1,333 276 524
Shares Issued in Lieu of Distributions -- -- -- --
Shares Repurchased (524) (50) (156) (738)
-------- ------- ------- --------
Increase in Shares 15,766 5,692 6,645 19,061
======== ======= ======= ========
SELECT
GROWTH
FUND
-----------
0811/00(1)-
10/31/00
-----------
OPERATIONS:
Net Investment Income (Loss) $ (63)
Net Realized Gain (Loss) on Investments 47
Net Change in Unrealized Appreciation
(Depreciation) on Investments and
Foreign Currency Transactions (5,060)
-------
Increase (Decrease) in Net Assets from Operations (5,076)
-------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income --
Capital Gains --
-------
Total Distributions --
-------
CAPITAL TRANSACTIONS:
Proceeds from Shares Issued in Connection
with In-Kind Contributions/Common Trust
Fund Conversions 42,576
Proceeds from Shares Issued 17,708
Reinvestment of Distributions --
Cost of Shares Repurchased (414)
-------
Increase in Net Assets From Capital Transactions 59,870
-------
Total Increase in Net Assets 54,794
-------
NET ASSETS:
Beginning of Period --
-------
End of Period $54,794
=======
SHARE TRANSACTIONS:
Shares Issued in Connection with In-Kind
Contributions/Common Trust Fund Conversions 4,258
Shares Issued 1,862
Shares Issued in Lieu of Distributions --
Shares Repurchased (45)
-------
Increase in Shares 6,075
=======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
(1) Commencement of operations.
Amounts designated as "--" round to $0.
</TABLE>
38 & 39
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (000)
------------------------------------------------------------------------------------------------------------------------------------
PITCAIRN FUNDS FOR THE PERIOD ENDED OCTOBER 31, 2000
SMALL CAP FAMILY INTERNATIONAL
GROWTH HERITAGE(R) EQUITY
FUND FUND FUND
----------- ------------ -------------
8/11/00(1)- 08/04/00(1)- 08/04/00(1)-
0/31/00 10/31/00 10/31/00
----------- ------------ -------------
OPERATIONS:
<S> <C> <C> <C>
Net Investment Income (Loss) $ (99) $ (62) $ (146)
Net Realized Gain (Loss) on Investments (3,171) (1,621) 488
Net Realized Loss on Foreign Currency Transactions -- -- (25)
Net Change in Unrealized Depreciation on Foreign Currency and
Translation of Other Assets and Liabilities in Foreign Currency -- -- (8)
Net Change in Unrealized Appreciation (Depreciation) on Investments
and Foreign Currency Transactions 4,486 1,143 (16,217)
------- ------- --------
Increase in Net Assets from Operations 1,216 (540) (15,908)
------- ------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income -- -- --
Capital Gains -- -- --
------- ------- --------
Total Distributions -- -- --
------- ------- --------
CAPITAL TRANSACTIONS:
Proceeds from Shares Issued in Connection
with In-Kind Contributions/Common Trust Fund Conversions 57,100 96,859 187,764
Proceeds from Shares Issued 7,843 3,214 6,693
Reinvestment of Distributions -- -- --
Cost of Shares Repurchased (867) (1,113) (3,520)
------- ------- --------
Increase in Net Assets From Capital Transactions 64,076 98,960 190,937
------- ------- --------
Total Increase in Net Assets 65,292 98,420 175,029
------- ------- --------
NET ASSETS:
Beginning of Period -- -- --
------- ------- --------
End of Period $65,292 $98,420 $175,029
======= ======= ========
SHARE TRANSACTIONS:
Shares Issued in Connection with In-Kind Contributions/Common
Trust Fund Conversions 5,710 9,753 18,527
Shares Issued 731 327 692
Shares Issued in Lieu of Cash Distributions -- -- --
Shares Repurchased (81) (112) (359)
------- ------- --------
Increase in Shares 6,360 9,968 18,860
======= ======= ========
GOVERNMENT/ TAX-EXEMPT
CORPORATE BOND BOND
FUND FUND
-------------- ------------
08/04/00(1)- 08/11/00(1)-
10/31/00 10/31/00
------------- ------------
OPERATIONS:
Net Investment Income (Loss) $ 565 $ 1,043
Net Realized Gain (Loss) on Investments (9) (50)
Net Realized Loss on Foreign Currency Transactions -- --
Net Change in Unrealized Depreciation on Foreign Currency and
Translation of Other Assets and Liabilities in Foreign Currency -- --
Net Change in Unrealized Appreciation (Depreciation) on Investments
and Foreign Currency Transactions 275 390
------- -------
Increase in Net Assets from Operations 831 1,383
------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income (535) (1,010)
Capital Gains -- --
------- -------
Total Distributions (535) (1,010)
------- -------
CAPITAL TRANSACTIONS:
Proceeds from Shares Issued in Connection
with In-Kind Contributions/Common Trust Fund Conversions 39,698 97,994
Proceeds from Shares Issued 510 2,156
Reinvestment of Distributions 327 222
Cost of Shares Repurchased (3,719) (1,558)
------- -------
Increase in Net Assets From Capital Transactions 36,816 98,814
------- -------
Total Increase in Net Assets 37,112 99,187
------- -------
NET ASSETS:
Beginning of Period 100 --
------- -------
End of Period $37,212 $99,187
======= =======
SHARE TRANSACTIONS:
Shares Issued in Connection with In-Kind Contributions/Common
Trust Fund Conversions 3,966 9,799
Shares Issued 51 215
Shares Issued in Lieu of Cash Distributions 32 22
Shares Repurchased (370) (155)
------- -------
Increase in Shares 3,679 9,881
======= =======
</TABLE>
(1) Commencement of operations.
Amounts designated as "--" round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
40 & 41
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
------------------------------------------------------------------------------------------------------------------------------------
PITCAIRN FUNDS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
DIVERSIFIED SELECT
VALUE VALUE
FUND FUND
-------------------- -------------------
FOR THE FOR THE
PERIOD ENDED PERIOD ENDED
OCTOBER 31, 2000(1) OCTOBER 31, 2000(2)
------------------- -------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 $ 10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income/(Loss) 0.01(4) 0.02
Net Realized and Unrealized Gains/(Losses) on Investments 0.51(4) 0.95
------- -------
Total from Investment Operations 0.52 0.97
------- -------
LESS DISTRIBUTIONS:
Distributions from Net Investment Income -- (0.01)
Distributions from Realized Gains -- --
------- -------
Total Distributions -- (0.01)
------- -------
NET ASSET VALUE, END OF PERIOD $ 10.52 $ 10.96
------- -------
TOTAL RETURN* 5.24% 9.70%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (in 000's) $165,823 $62,392
Ratio of Expenses to Average Net Assets 1.00% 1.00%
Ratio of Expenses (Excluding Interest Expense)
to Average Net Assets 1.00% 1.00%
Ratio of Net Investment Income/(Loss)
to Average Net Assets 0.73% 0.95%
Ratio of Expenses to Average Net Assets
Before Fee Waivers 1.22% 1.33%
Ratio of Net Investment Income/(Loss) to Average
Net Assets Before Fee Waivers 0.51% 0.62%
Portfolio Turnover Rate 12% 27%
SMALL CAP DIVERSIFIED SELECT
VALUE GROWTH GROWTH
FUND FUND FUND
-------------------- ------------------- -------------------
FOR THE FOR THE FOR THE
PERIOD ENDED PERIOD ENDED PERIOD ENDED
OCTOBER 31, 2000(3) OCTOBER 31, 2000(1) OCTOBER 31, 2000(2)
------------------- ------------------- -------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 $ 10.00 $ 10.00
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income/(Loss) 0.02 (0.01) (0.01)
Net Realized and Unrealized Gains/(Losses) on Investments 0.16 (0.81) (0.97)
------- ------- -------
Total from Investment Operations 0.18 (0.82) (0.98)
------- ------- -------
LESS DISTRIBUTIONS:
Distributions from Net Investment Income -- -- --
Distributions from Realized Gains -- -- --
------- ------- -------
Total Distributions -- -- --
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 10.18 $ 9.18 $ 9.02
------- ------- -------
TOTAL RETURN* 1.80% (8.20%) (9.80%)
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (in 000's) $67,651 $174,960 $54,794
Ratio of Expenses to Average Net Assets 1.22% 1.00% 1.15%
Ratio of Expenses (Excluding Interest Expense)
to Average Net Assets 1.00% 1.00% 1.15%
Ratio of Net Investment Income/(Loss)
to Average Net Assets 1.11% (0.68%) (0.61%)
Ratio of Expenses to Average Net Assets
Before Fee Waivers 1.33% 1.22% 1.50%
Ratio of Net Investment Income/(Loss) to Average
Net Assets Before Fee Waivers 0.78% (0.90%) (0.96%)
Portfolio Turnover Rate 10% 6% 13%
* Returns are for the period indicated and have not been annualized.
(1) Commenced operations on August 4, 2000. All ratios for the period have been annualized.
(2) Commenced operations on August 11, 2000. All ratios for the period have been annualized.
(3) Commenced operations on August 25, 2000. All ratios for the period have been annualized.
(4) Per share net investment income and net realized and unrealized gain calculated using average shares.
Amounts designated as "--" round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</TABLE>
42 & 43
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
------------------------------------------------------------------------------------------------------------------------------------
PITCAIRN FUNDS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
SMALL CAP FAMILY INTERNATIONAL
GROWTH HERITAGE(R) EQUITY
FUND FUND FUND
------------------- -------------------- -------------------
FOR THE FOR THE FOR THE
PERIOD ENDED PERIOD ENDED PERIOD ENDED
OCTOBER 31, 2000(2) OCTOBER 31, 2000(1) OCTOBER 31, 2000(1)
------------------- ------------------- -------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 $ 10.00 $ 10.00
------- ------- --------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income/(Loss) (0.02) (0.01) (0.01)
Net Realized and Unrealized Gains/(Losses) on Investments 0.29 (0.12)` (0.71)
------- ------- --------
Total from Investment Operations 0.27 (0.13) (0.72)
------- ------- --------
LESS DISTRIBUTIONS
Distributions from Net Investment Income -- -- --
Distributions from Realized Gains -- -- --
------- ------- --------
Total Distributions -- -- --
------- ------- --------
NET ASSET VALUE, END OF PERIOD $ 10.27 $ 9.87 $ 9.28
======= ======= ========
TOTAL RETURN* 2.70% (1.30%) (7.20%)
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (in 000's) $65,292 $98,420 $175,029
Ratio of Expenses to Average Net Assets 1.25% 1.20% 1.25%
Ratio of Net Investment Income/(Loss)
to Average Net Assets (0.71%) (0.29%) (0.37%)
Ratio of Expenses to Average Net Assets
Before Fee Waivers 1.54% 1.44% 1.53%
Ratio of Net Investment Income/(Loss) to Average
Net Assets Before Fee Waivers (1.00%) (0.53%) (0.65%)
Portfolio Turnover Rate 29% 1% 10%
GOVERNMENT/CORPORATE TAX-EXEMPT
BOND BOND
FUND FUND
- ------------------- -------------------
FOR THE FOR THE
PERIOD ENDED PERIOD ENDED
O OCTOBER 31, 2000(1) OCTOBER 31, 2000(2)
- ------------------- -------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 $ 10.00
------- -------
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income/(Loss) 0.15 0.10
Net Realized and Unrealized Gains/(Losses) on Investments 0.09 0.04
------- -------
Total from Investment Operations 0.24 0.14
------- -------
LESS DISTRIBUTIONS
Distributions from Net Investment Income (0.15) (0.10)
Distributions from Realized Gains -- --
------- -------
Total Distributions (0.15) (0.10)
------- -------
NET ASSET VALUE, END OF PERIOD $ 10.09 $ 10.04
======= =======
TOTAL RETURN* 2.36% 1.43%
RATIOS/SUPPLEMENTAL DATA
Net Assets, End of Period (in 000's) $37,212 $99,187
Ratio of Expenses to Average Net Assets 0.70% 0.60%
Ratio of Net Investment Income/(Loss)
to Average Net Assets 6.51% 4.88%
Ratio of Expenses to Average Net Assets
Before Fee Waivers 1.10% 0.86%
Ratio of Net Investment Income/(Loss) to Average
Net Assets Before Fee Waivers 6.11% 4.62%
Portfolio Turnover Rate 7% 10%
<FN>
* Returns are for the period indicated and have not been annualized.
(1) Commenced operations on August 4, 2000. All ratios for the period have been annualized.
(2) Commenced operations on August 11, 2000. All ratios for the period have been annualized.
Amounts designated as "--" round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</FN>
</TABLE>
44 & 45
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
PITCAIRN FUNDS OCTOBER 31, 2000
1. Organization
Pitcairn Funds (the "Trust") is an open-end management investment company
registered under the Investment Company Act of 1940. The Trust was established
as a Delaware business trust on March 24, 2000. Ten series of shares (the
"Funds") have been established under the Trust's Declaration of Trust. The
Declaration of Trust authorizes the issuance of an unlimited number of shares of
beneficial interest of each Fund. Pitcairn Funds include Diversified Value Fund,
Select Value Fund, Small Cap Value Fund, Diversified Growth Fund, Select Growth
Fund, Small Cap Growth Fund, Family Heritage(R) Fund, International Equity Fund,
(the "Equity Funds"), Government/Corporate Bond Fund and Tax-Exempt Bond Fund
(the "Bond Funds"). The assets of each Fund are segregated, and a shareholder's
interest is limited to the Fund in which shares are held. The Funds' prospectus
provides a description of each Fund's investment objectives, policies and
strategies.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies consistently
followed by the Funds. The preparation of financial statements in conformity
with generally accepted accounting principles in the United States requires
management to make estimates and assumptions that affect the reported amount of
net assets and liabilities and disclosure of contingent assets at the date of
the financial statements and the reported results of operations during the
reporting period. Actual results could differ from those estimates.
SECURITY VALUATION -- Investments in equity securities that are traded on a
national securities exchange (or reported on NASDAQ national market
system), including foreign securities, are stated at the last quoted sales
price at the end of regular trading, if readily available for such
securities on each business day. Other equity securities traded in the
over-the-counter market and listed equity securities for which no sale was
reported on that date are stated at the last quoted bid price. Debt
obligations exceeding sixty days to maturity for which market quotations
are readily available are valued at the most recently quoted bid price.
Debt obligations with sixty days or less until maturity may be valued at
their amortized cost. When market quotations are not readily available,
securities are valued at fair value as determined in good faith by
procedures established and approved by the Board of Trustees.
SECURITY TRANSACTIONS AND RELATED INCOME -- Security transactions are
accounted for on the date the security is purchased or sold (trade date).
Dividend income is recognized on the ex-dividend date, and interest income
is accrued when earned. Costs used in determining realized gains and losses
on the sales of investment securities are those of the specific securities
sold. Purchase discounts and premiums on securities held by the Funds are
accreted and amortized to maturity using the effective interest method.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the custodian bank until maturity of the repurchase
agreements. Provisions of the repurchase agreements and procedures adopted
by the Trust require that the market value of the collateral be sufficient
to cover principal and interest in the event of default by the
counterparty.
If the counterparty defaults and the value of the collateral declines or if
the counterparty enters and insolvency proceeding, realization of the
collateral by the Fund may be delayed or limited.
SECURITIES SOLD SHORT -- A Fund may sell a security short that is identical
to a security held in the respective Fund's investment portfolio by
borrowing and selling the identical security in the secondary market. The
Fund records the borrowed securities sold short at market value in its
investment portfolio. Where a Fund sells short in this manner, the cash
proceeds from the short sale are held on deposit as collateral for the
borrowed securities. Until a short positon is closed, changes in the value
of the securities sold short are reflected as unrealized gains or losses in
the Statement of Operations of the Fund.
FOREIGN CURRENCY TRANSLATION -- The books and records of the International
Equity Fund are translated into U.S. dollars on the following basis:
(1) market value of investment securities, assets and liabilities at
the current rate of exchange; and
(2) purchases and sales of investment securities, income and expenses
at the relevant rates of exchange prevailing on the respective
dates of such transactions.
The International Equity Fund does not isolate that portion of gains and
losses on investments in equity securities that is due to changes in the
foreign exchange rates from that which is due to changes in market prices
of equity securities.
FORWARD FOREIGN CURRENCY CONTRACTS -- The International Equity Fund may
enter into forward foreign currency contracts as hedges against either
specific transactions, fund positions or anticipated fund positions. The
aggregate principal amounts of the contracts are not recorded as the
International Equity Fund does not intend to hold the contracts to
maturity. All commitments are "marked-to-market" daily at the applicable
foreign exchange rate, and any resulting unrealized gains or losses are
recorded currently. The International Equity Fund realizes gains and losses
at the time forward contracts are extinguished. Unrealized gains or losses
on out-
46
<PAGE>
standing positions in forward foreign currency contracts held at the close
of the year are recognized as ordinary income or loss for federal tax pur-
poses. As of October 31, 2000, the following forward foreign currency
contracts were outstanding:
IN UNREALIZED
MATURITY CONTRACTS TO EXCHANGE APPRECIATON
DATE DELIVER/RECEIVE FOR (DEPRECIATION)
------------- --------------- --------- --------------
FOREIGN CURRENCY PURCHASES:
11/07/00 UK 592,450 $ 860,237 $ 126
11/01/00-11/10/00 JP 127,393,893 1,179,746 (10,900)
---------- ----------
$2,039,983 $ (10,774)
---------- ----------
FOREIGN CURRENCY SALES:
11/01/00-11/03/00 EU 58,852 $ 49,834 $ (55)
11/07/00 UK 629,706 914,333 (134)
---------- ----------
$ 964,167 $ (189)
---------- ----------
$ (10,963)
==========
CURRENCY LEGEND
EU Euro Currency
JP Japanese Yen
UK British Pound Sterling
EXPENSES -- Expenses that are directly related to one of the Funds are
charged directly to that Fund. Other operating expenses of the Trust are
prorated to the Funds on the basis of relative net assets.
OFFERING COSTS -- Offering costs, including initial registration costs,
have been deferred and are being charged to expense during the Funds' first
year of operation.
TAXES -- It is each Fund's intention to qualify as a regulated investment
company for Federal income tax purposes by complying with the appropriate
provisions of the Internal Revenue Code of 1986, as amended. Accordingly,
no provision for Federal income taxes has been made in the financial
statements.
The International Equity Fund may be subject to taxes imposed by countries
in which it invests with respect to its investment in issuers existing or
operating in such countries. Such taxes are generally based on income
earned. The International Equity Fund accrues such taxes when the related
income is earned.
DISTRIBUTIONS -- Distributions to shareholders are recorded on the
ex-dividend date. Income and capital gain distributions are determined in
accordance with federal income tax regulations and may differ from those
determined in accordance with generally accepted accounting principles in
the United States.
As a result, the net investment income (loss) and net realized gain (loss)
on investment transactions for a reporting period may differ from
distributions during such period. These book/tax differences may be
temporary or permanent in nature. To the extent these differences are
permanent, they are charged or credited to paid-in capital or accumulated
net realized gain, as appropriate, in the period that the differences
arise. Accordingly, the following permanent differences, primarily
attributable to net operating losses, have been reclassified to/from the
following accounts:
UNDISTRIBUTED
ACCUMULATED NET INVESTMENT
PAID-IN-CAPITAL REALIZED GAIN INCOME (LOSS)
(000) (LOSS)(000) (000)
--------------- ------------- --------------
Diversified Value Fund (14) -- 14
Select Value Fund... (4) -- 4
Small Cap Value Fund (5) -- 5
Diversified Growth Fund (281) -- 281
Select Growth Fund.. (4) (60) 64
Small Cap Growth Fund (99) -- 99
Family Heritage(R)Fund (62) -- 62
International Equity Fund (17) 25 (8)
Government/Corporate
Bond Fund....... (3) -- 3
Tax-Exempt
Bond Fund....... (8) -- 8
These reclassifications have no effect on net assets or net asset values per
share.
3. Investment Advisory, Administration, Shareholder Services and
Distribution Agreements
Pitcairn Investment Management (the "Adviser"), a division of Pitcairn Trust
Company ("PTC"), serves as Investment Adviser to each Fund pursuant to an
investment advisory agreement dated August 4, 2000 (the "Advisory Agreement")
with the Trust. For its services, the Adviser is entitled to a fee, that is
calculated daily and paid monthly, at an annual rate based on the average daily
net assets of each Fund. In the interest of limiting expenses of the Funds, PTC
has entered into an expense limitation agreement with the Trust (the "Expense
Limitation Agreement"), pursuant to which it has agreed to waive or limit its
fees and to assume other expenses so that the total annual operating expenses of
the Funds are limited to a specified percentage of the average daily net assets
of each Fund, through the fiscal year ending October 31, 2003.
The Fund may at a later date reimburse PTC for the fees waived or limited and
other expenses assumed and paid by PTC pursuant to the Expense Limitation
Agreement during any of the previous two fiscal years, provided that the Fund
has reached sufficient asset size to permit such reimbursement to be made
without causing the total annual expense ratio of the Fund to exceed the
percentage limits stated above, and Pitcairn remains the investment adviser to
the Fund. Consequently, no reimbursement by the Fund will be made unless the
Fund's assets exceed $10 million; the Fund's total annual Fund operating expense
ratio is less than the percentage stated in the chart above; and the payment of
such reimbursement has been approved by the Trust's Board
47
<PAGE>
NOTES TO FINANCIAL STATEMENTS (continued)
--------------------------------------------------------------------------------
PITCAIRN FUNDS OCTOBER 31, 2000
of Trustees on a quarterly basis. The advisory fee, expenselimitations, and
amounts waived by PTC through the fiscal year ending October 31, 2000 which are
subject to recapture through October 31, 2002, are as set forth below:
ADVISORY EXPENSE FEES SUBJECT
FUND FEE CAP TO RECAPTURE
----- ----------- -------- ----------------
Diversified Value Fund 0.70% 1.00% $ 76,516
Select Value Fund 0.70% 1.00% $ 37,268
Small Cap Value Fund 0.70% 1.00% $ 39,190
Diversified Growth Fund 0.70% 1.00% $ 88,091
Select Growth Fund 0.85% 1.15% $ 36,939
Small Cap Growth Fund 0.95% 1.25% $ 41,201
Family Heritage(R)Fund 0.90% 1.20% $ 50,559
International Equity Fund 0.95% 1.25% $110,689
Government/Corporate Bond Fund 0.40% 0.70% $ 34,406
Tax-Exempt Bond Fund 0.30% 0.60% $ 55,201
While Pitcairn Investment Management serves as the overall investment adviser to
the Funds, it has engaged specialty portfolio managers to make investment
decisions for all or a portion of certain Funds. The Adviser has engaged Oechsle
International Advisors, LLC to serve as the portfolio manager to the
International Equity Fund, Standish, Ayer & Wood, Inc. to serve as the portfolio
manager to the Small Cap Growth Fund, and Sands Capital Management, Inc. to
serve as the portfolio manager for the Select Growth Fund. Pitcairn Investment
Management is responsible for payment of sub-advisory fees to each of the
portfolio managers.
The Trust and SEI Investments Mutual Funds Services (the "Administrator") have
entered into an Administration Agreement dated August 1, 2000. Under the terms
of the Administration Agreement, the Administrator is entitled to a fee
calculated daily and paid monthly at an annual rate of 0.08% of the average
daily net assets of each Fund.
The Board of Trustees of the Trust has adopted a Shareholder Services Plan (the
"Plan") for the purpose of paying for shareholder servicing activities. Pursuant
to the Plan, each Fund is authorized to pay to any Authorized Service Provider,
which may include PTC or its affiliates, as compensation for service activities
rendered by the Authorized Service Provider to shareholders of a Fund, a
shareholder service fee at the rate of 0.25% on an annual basis of the average
daily net assets serviced by the Authorized Service Provider. Such fee is
calculated daily and paid monthly or at such other intervals as the Board shall
determine. Pursuant to the Shareholder Services Plan, the Board of Trustees of
the Trust has adopted a Shareholder Services Agreement whereby PTC provides
shareholder services. Pursuant to this agreement, PTC receives the
aforementioned fee.
The Trust and SEI Investments Distribution Co. (the "Distributor"), a wholly
owned subsidiary of SEI Investments Company, have entered into a distribution
agreement. The Distributor receives no fees for its distribution services under
this agreement.
4. Organization costs and transactions with affiliates
Certain organizational costs incurred by the Funds have been paid by the Trust's
Adviser. The Funds will not be required to reimburse the Adviser for the
organization costs paid by the Adviser.
Certain Trustees and officers of the Funds are also Directors and officers of
the Adviser, Administrator and/or Distributor. These Trustees and officers of
the Funds are paid no fees by the Funds for serving as either a Trustee or an
officer of the Funds.
The Funds have entered into agreements with SEI Investments to act as an agent
in placing repurchase agreements for the Funds. For its services, SEI
Investments received $744 for the period ended October 31, 2000.
5. Investment Transactions
The cost of security purchases and the proceeds from the sale of securities,
other than temporary cash investments, during the period ended October 31, 2000
were as follows:
U.S. GOVERNMENT OTHER INVESTMENT
SECURITIES SECURITIES
------------------- ---------------------
PURCHASES SALES PURCHASES SALES
(000) (000) (000) (000)
--------- ------- --------- ----------
Diversified Value Fund... $ -- $ -- $175,711 $18,994
Select Value Fund........ -- -- 29,310 15,013
Small Cap Value Fund..... -- -- 55,493 6,823
Diversified Growth Fund.. -- -- 177,598 10,640
Select Growth Fund....... -- -- 65,838 6,412
Small Cap Growth Fund.... -- -- 71,848 18,382
Family Heritage(R)Fund.... -- -- 97,430 1,298
International Equity Fund -- -- 147,144 17,263
Government/Corporate
Bond Fund............. -- 904 39,276 1,424
Tax-Exempt Bond Fund..... -- -- 105,308 9,572
At October 31, 2000, the total cost of securities for Federal income tax
purposes was not materially different from amounts reported for financial
reporting purposes. The aggregate gross unrealized appreciation and depreciation
on investment securities at October 31, 2000 is as follows:
NET
UNREALIZED
APPRECIATED DEPRECIATED APPRECIATION
SECURITIES SECURITIES (DEPRECIATION)
(000) (000) (000)
----------- ------------ ---------------
Diversified Value Fund... $17,759 $ (7,977) $ 9,782
Select Value Fund........ 10,819 (1,083) 9,736
Small Cap Value Fund..... 15,993 (5,790) 10,203
Diversified Growth Fund.. 18,247 (26,580) (8,333)
Select Growth Fund....... 1,989 (7,494) (5,505)
Small Cap Growth Fund.... 13,104 (4,030) 9,074
Family Heritage(R)Fund.... 15,195 (11,299) 3,896
International Equity Fund 32,509 (13,741) 18,768
Government/Corporate
Bond Fund............. 438 (1,180) (742)
Tax-Exempt Bond Fund..... 2,167 (467) 1,700
48
<PAGE>
--------------------------------------------------------------------------------
At October 31, 2000, the following Funds had capital loss carryforwards that can
be used to offset future capital gains:
AMOUNT EXPIRATION
------------ ------------
Diversified Value Fund $ 221,336 2008
Select Value Fund 100,956 2008
Small Cap Value Fund 1,802,053 2008
Diversified Growth Fund 670,358 2008
Small Cap Growth Fund 2,801,740 2008
Family Heritage(R)Fund 1,614,446 2008
Government/Corporate Bond Fund 9,172 2008
Tax-Exempt Bond Fund 49,994 2008
6. Risks of International Investing
The International Equity Fund invests in securities of foreign issuers in
various countries. These investments may involve certain considerations and
risks not typically associated with investments in the United States, as a
result of, among other factors, the possibility of future political and economic
developments and the level of governmental supervision and regulation of
securities markets in the respective countries.
7. Margin Loans with Brokers
During the period ended October 31, 2000, the Small Cap Value Fund had
outstanding borrowings under margin loans with brokers. The interest expense
incurred, outstanding borrowings and interest rate were as follows:
MAXIMUM
AVERAGE OUTSTANDING AVERAGE
INTEREST OUTSTANDING AT ANY INTEREST
EXPENSE BORROWINGS MONTH END RATE
--------- ----------- ----------- --------
Small Cap Value Fund. $26,070 $2,185,189 $2,329,621 6.72%
8. In Kind Transfer of Securities/Common Trust
Fund Conversions
On August 4, 2000 and August 11, 2000 (August 25, 2000 for the Small Cap Value
Fund), portfolio assets were contributed at their then current value from
certain accounts managed by the Adviser and from certain common trust funds
(collective trust fund for the Government/Corporate Bond Fund) of which PTC was
the trustee, respectively, on a tax free basis in exchange for shares of the
Funds as summarized below:
NET
MARKET UNREALIZED
SHARES VALUE GAIN (LOSS)
FROM MANAGED ACCOUNTS: ISSUED (000) (000)
----------------------- ----------- ------------- ------------
Diversified Value Fund... 1,074,976 $ 10,750 $ 1,226
Diversified Growth Fund.. 2,017,933 20,179 3,013
Family Heritage(R)Fund.... 17,010 170 --
International Equity Fund 2,521,756 25,218 4,094
Government/Corporate
Bond Fund............... 2,540,685 25,407 (930)
FROM COMMON TRUST FUNDS:
--------------------------
Diversified Value Fund... 14,821,811 149,626 1,719
Select Value Fund........ 4,409,429 44,094 4,618
Small Cap Value Fund..... 6,525,035 65,250 7,280
Diversified Growth Fund.. 17,257,020 174,192 4,945
Select Growth Fund....... 4,257,609 42,576 (445)
Small Cap Growth Fund.... 5,709,974 57,100 4,588
Family Heritage(R)Fund.... 9,736,097 96,689 2,753
International Equity Fund 16,005,021 162,546 30,882
Government/Corporate
Bond Fund............... 1,425,267 14,292 (87)
Tax-Exempt Bond Fund..... 9,799,437 97,994 1,310
Immediately following the in-kind exchanges on
August 11, 2000 (August 25, 2000 for the Small Cap Value Fund) the common trust
funds distributed the shares of the Funds received to their owners and the
common trust funds were liquidated.
49
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------
PITCAIRN FUNDS OCTOBER 31, 2000
To the Shareholders and Board of Trustees of
Pitcairn Funds:
In our opinion, the accompanying statements of net assets and of assets and
liabilities, including the schedule of investments, and the related statements
of operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Diversified Value,
Select Value, Small Cap Value, Diversified Growth, Select Growth, Small Cap
Growth, Family Heritage(R), International Equity, Government/Corporate Bond and
Tax-ExempT Bond Funds (constituting Pitcairn Funds, hereafter referred to as the
"Trust") at October 31, 2000, and the results of each of their operations, the
changes in each of their net assets and the financial highlights for the period
from commencement of operations on August 4, 2000 for Diversified Value,
Diversified Growth, Family Heritage(R), InternationaL Equity and
Government/Corporate Bond Funds, on August 11, 2000 for Select Value, Select
Growth, Small Cap Growth and Tax-Exempt Bond Funds, and on August 25, 2000 for
Small Cap Value Fund, through October 31, 2000, in conformity with accounting
principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at October 31, 2000 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
Philadelphia, Pennsylvania
December 12, 2000
50
<PAGE>
<TABLE>
<CAPTION>
NOTICE TO SHAREHOLDERS (Unaudited)
------------------------------------------------------------------------------------------------------------------------------------
PITCAIRN FUNDS OCTOBER 31, 2000
For shareholders that do not have a October 31, 2000 tax year end, this notice
is for informational purposes only. For shareholders with a October 31, 2000 tax
year end, please consult your tax advisor as to the pertinence of this notice.
For the fiscal year ended October 31, 2000, each Fund is designating the
following items with regard to distributions paid during the year:
DIVERSIFIED SELECT SMALL CAP DIVERSIFIED SELECT
VALUE VALUE VALUE GROWTH GROWTH
FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------
Long Term (20% Rate)
<S> <C> <C> <C> <C> <C>
Capital Gain Distribution 0.00% 0.00% 0.00% 0.00% 0.00%
Ordinary Income Distributions 100.00% 100.00% 0.00% 0.00% 0.00%
Tax-Exempt Interest 0.00% 0.00% 0.00% 0.00% 0.00%
Total Distributions 100.00% 100.00% 0.00% 0.00% 0.00%
Qualifying Dividends(1) 100.00% 100.00% 0.00% 0.00% 0.00%
Foreign Tax Withholding
Pass Through (2) 0.00% 0.00% 0.00% 0.00% 0.00%
SMALL CAP FAMILY INTERNATIONAL GOVERNMENT/ TAX-EXEMPT
GROWTH HERITAGE(R) EQUITY CORPORATE BOND BOND
FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ ------------
Long Term (20% Rate)
Capital Gain Distribution 0.00% 0.00% 0.00% 0.00% 0.00%
Ordinary Income Distributions 0.00% 0.00% 0.00% 100.00% 0.00%
Tax-Exempt Interest 0.00% 0.00% 0.00% 0.00% 100.00%
Total Distributions 0.00% 0.00% 0.00% 100.00% 100.00%
Qualifying Dividends(1) 0.00% 0.00% 0.00% 0.00% 0.00%
Foreign Tax Withholding
Pass Through (2) 0.00% 0.00% 0.00% 0.00% 0.00%
</TABLE>
--------------------------------
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction and is reflected as a percentage of "Ordinary
Income Distributions".
(2) Foreign tax credit pass through represents the amount eligible for the
foreign tax credit and is reflected as a percentage of "Ordinary Income
Distributions".
51
<PAGE>
NOTES
<PAGE>
INVESTMENT ADVISER
Pitcairn Investment Management
One Pitcairn Place, Suite 3000
165 Township Line Road
Jenkintown, PA 19046
SUB-ADVISER (INTERNATIONAL EQUITY FUND)
Oechsle International Advisors, LLC
One International Place, 23rd Floor
Boston, MA 02110
SUB-ADVISER (SMALL CAP GROWTH FUND)
Standish, Ayer & Wood, Inc.
One Financial Center
Boston, MA 02111
SUB-ADVISER (SELECT GROWTH FUND)
Sands Capital Management, Inc.
1100 North Glebe Road, Suite 1000
Arlington, VA 22201
ADMINISTRATOR & DISTRIBUTOR
SEI Investments Mutual Funds Services
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, PA 19456
LEGAL COUNSEL
Dechert
1775 Eye Street, NW
Washington, DC 20006
LEGAL COUNSEL TO INDEPENDENT TRUSTEES
Stradley, Ronan, Stevens & Young, LLP
2600 One Commerce Square
Philadelphia, PA 19103
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
Two Commerce Square, Suite 1700
2001 Market Street
Philadelphia, PA 19103
BOARD OF TRUSTEES
Alvin A. Clay III, President and Chief Executive Officer
Dirk Junge, Chairman and Vice President
Carleton A. Holstrom
George M. Chamberlain, Jr., Esq.
James R. Wood
