<PAGE>
MONEY MAKET
FUNDS
[Graphic Omitted]
the difference is experience
Semi-Annual Report
for the period ended April 30, 1999
<PAGE>
MONEY funds
money market fund
tax-exempt money market fund
california money market fund
<PAGE>
message from the president ................................................ 2
individual fund reviews ................................................... 4
statements of assets and liabilities ...................................... 6
statements of operations .................................................. 8
statements of changes in net assets ....................................... 9
statements of changes in net assets -
capital stock activity ................................................. 13
financial highlights ...................................................... 16
portfolio of investments .................................................. 22
notes to financial statements ............................................. 31
<PAGE>
MESSAGE FROM
the president
[Photo of William G. Papesh]
We are pleased to provide you this WM Group of Funds semi-annual report for the
period ended April 30, 1999. As I review recent market activity, I am struck by
certain similarities between the current investment environment and that of the
1950s and `60s. As in that period of American economic expansion, U.S. investors
today are enjoying an extended period of economic abundance, brought about by
structural changes in the global economy, as well as revolutionary technological
advances.
Equity investors have benefited from exceptionally strong returns through much
of this decade. The S&P 500 rose 28% in 1998, bringing the market's four-year
cumulative gain to 190%.(1) Since 1995, the U.S. stock market has created almost
$7 trillion in wealth.(2) On the fixed-income side, the early 1990s brought bond
investors significant opportunities to benefit from declining interest rates.
Internationally, increased opportunities in emerging markets have offered
aggressive growth investors new venues in which to invest.
While this decade has been quite rewarding for many investors, there are aspects
of the economy and financial markets that warrant some caution. For example, the
domestic economy is expanding rapidly due primarily to strong consumer spending,
with GDP growing between 4%-6% on an annualized basis. As a result, there is
increased fear among investors that higher inflation may lead to higher interest
rates. Also, while the Dow Jones Industrial Average continues to post record
highs, the stock market's current strength is not broad based. Stocks of small-
and medium-sized companies have not kept pace with the mega-cap growth stocks,
some of which are trading at more than 100 times earnings. There is also concern
that rapid change in the technology sector has created a speculative
environment, particularly with regard to some Internet stocks.
DEVELOP A STRATEGY TO WEATHER MARKET CYCLES
While no one can precisely predict the future course of the stock market, the
economy and financial markets are often linked in more predictable ways.
Economic growth can fuel inflation and higher interest rates, typically
resulting in reduced consumer spending and slower corporate earnings growth. On
the other hand, when the economy slows, interest rates typically fall, which
helps to spur renewed investment. These cycles are an inherent part of
investing. Fortunately, there are a variety of strategies that individual
investors can employ to lessen the effects of market volatility on their
portfolios.
First and foremost, investors can seek to remain diversi-fied by investing in a
mix of equity and fixed-income investments. Some investors may be tempted to
ignore this strategy when stocks are posting 20%+ returns per year. From April
1993 through April 1999, for example, the WM GROWTH FUND posted an average
annual return of 26.52%, not adjusted for the maximum sales charge. For the 12
months ended April 30, 1999, the Fund gained 65.36%.(3) Yet, I would caution
investors to remember that these years have been marked by an exceptionally
strong stock market. Over an investment horizon of 10 or 20 years, a diversified
strategy can provide strong returns with less risk than a pure equity portfolio.
Since 1926, the long-term average annual return for stocks, as measured by the
S&P 500, has been in the 10%-12% range. From its inception in May 1939 through
April 30, 1999, the WM BOND & STOCK FUND has posted an average annual return of
9.06%, not adjusted for the maximum sales charge, with significantly less
volatility in year-to-year returns than the S&P 500.(4)
Another strategy investors can use to help reduce risk in their investment
portfolios is known as dollar cost averaging (DCA). With this strategy, a set
amount is invested on a regular basis, usually monthly or quarterly. The
advantage of a DCA program is that it allows you to take advantage of potential
temporary price declines. For example, if you invest $100 each month, more
shares will be bought when prices are low and fewer shares when prices are high.
It is important to note that DCA does not guarantee a profit or protect against
a loss, and you must consider your ability to continue purchases in a declining
market. However, as a long-term investment strategy, it can help you lower the
average cost of the shares you purchase.
YOUR INVESTMENT REPRESENTATIVE IS A VALUABLE RESOURCE
Whether you are investing for retirement, future college tuition costs, or
short-term goals, your ability to meet your financial goals will require a
well-defined investment strategy. Your Investment Representative can help you in
several ways. First, he or she has the tools and resources available to help you
clearly define your goals. Many individuals today who are saving for retirement,
for example, may be unsure about the amount they actually need to save. Your
Investment Representative can help you evaluate how the rising cost of living,
coupled with today's longer lifespans, will affect your retirement savings goal.
Secondly, your Investment Representative can assist you in determining which
types of investment vehicles are best suited for your goals and objectives.
The WM GROUP OF FUNDS offers a diverse family of mutual funds with a variety of
investment objectives to help you meet your financial goals. You can choose to
combine individual funds, including stock, bond, and tax-exempt fixed-income
funds, to create a diversified portfolio. Or, if you seek the advantages of a
professionally managed asset allocation portfolio, consider also the WM
STRATEGIC ASSET MANAGEMENT PORTFOLIOS. We suggest you consult with your
Investment Representative to determine which investments are appropriate for
your particular needs.
Thank you for your continued trust in the WM GROUP OF FUNDS. We look forward to
continuing to provide you with investment opportunities, today and into the next
century.
Sincerely,
/s/ William G. Papesh
William G. Papesh
President
(1) Source: Ibbotson Associates
(2) Source: YOUR MONEY, June/July 1999
(3) Performance for A shares through March 31, 1999, adjusted for the maximum
sales charge, is as follows: 1-year: 54.24%, 5-year: 26.14%, since
inception: 24.70%. Past performance is not a guarantee of future results.
(4) Performance for A shares through March 31, 1999, adjusted for the maximum
sales charge, is as follows: 1- year: -5.09%, 5-year: 12.69%, since
inception: 8.87%. Past performance is not a guarantee of future results. The
S&P 500 is an unmanaged, weighted index of 500 companies frequently used in
the equity markets for comparison purposes. Investors cannot invest directly
in an index, and there is no guarantee that the WM Bond & Stock Fund will be
less volatile than this index in the future.
<PAGE>
MONEY MARKET
funds
PORTFOLIO MANAGER:
AUDREY QUAYE
WM ADVISORS, INC.
Audrey Quaye has over five years experience in investment management and
analysis. She is a Certified Public Accountant, holds an MBA, and has been with
WM Advisors, Inc. since 1996.
ECONOMIC OVERVIEW
Economic data released during the last quarter of 1998 and first quarter of 1999
indicated stronger than expected growth, led by a healthy consumer sector and a
strong housing market. Consumer confi-dence was high during most of the period,
as strength in personal income supported large increases in spending levels.
Labor markets continued to be tight as the unemployment rate declined to a
historically low 4.2% in March of 1999. Conversely, growth was slowed somewhat
by weak export demand in selected sectors. This occurred despite evidence of
improving economic conditions in Southeast Asian countries. Oil prices, an
important factor in overall global inflation, surged in April following an OPEC
agreement on production rates and led to some concern of mounting price
pressures.
The Federal Reserve Open Market Committee cut its target fed funds rate (the
rate at which banks borrow from each other) towards the end of 1998. The Fed
took this action in response to evidence of a global liquidity crunch and
continuing turmoil in Asian and emerging markets. The turmoil in the emerging
markets resulted in significant declines in the value of securities held by
certain hedge funds.
The benchmark 90-day U.S. Treasury bill yield averaged 4.48% during the
six-month period ended April 30, 1999. The Treasury bill yield declined toward
the end of 1998 due to the Fed's rate cuts and continued its descent into 1999.
However, it reversed track to close at 4.54% on April 30, 1999. General market
municipal daily variable rates rose to a high of 5.03% as the year-end effect
caused a spike in rates. They then plunged to a low of 1.48% in the beginning of
February. Due to the tax-season effect, the average daily municipal variable
rate rose to 4.27% as of April 30, 1999.
ECONOMIC AND INTEREST RATE OUTLOOK
Our outlook on the bond market has shifted to a more bearish stance, as the
inflation outlook is uncertain. We will remain neutral relative to our benchmark
until there is additional economic data released.
FUND STRATEGY
MONEY MARKET FUND
Effective March 8, 1999, the Griffin Money Market Fund was merged into the WM
Money Market Fund. The Fund's net assets at period-end totaled $626 million. We
reduced the Fund's exposure to floating-rate notes and short-term bonds. We also
reduced the weighted average maturity in view of our interest rate outlook.
TAX-EXEMPT MONEY
MARKET FUND
The Griffin Tax-Free Money Market Fund was also merged into the WM Tax-Exempt
Money Market Fund. The Fund's net assets at period-end totaled $39 million. We
reduced the weighted average maturity to take advantage of the year-end and
tax-season effects. We intend to maintain the portfolio's weighted average
maturity slightly long relative to the benchmark. However, we will shorten it
when neces-sary to take advantage of seasonal hikes in municipal money market
yields.
CALIFORNIA MONEY FUND
The WM California Money Fund's net assets at period-end totaled $37 million. We
shortened the weighted average maturity to take advantage of seasonal hikes in
municipal money market yields, and we look to continue this practice as
opportunities present themselves. We also maintained the Fund's holding of
securities that are subject to alternative minimum tax to less than 25% of
portfolio assets. Our goal is to maintain the weighted average maturity at par
with the benchmark.
THE YEAR 2000 PROBLEM
Many computer systems in use today cannot process date-related information in
relation to year 2000. This issue originates in the practice of abbreviating
years to their last two digits. Computer systems may not be able to decide
correctly when a date entered with a year of "00" should be interpreted as 1900
or 2000. At the turn of the new century, computer systems may not function
properly because they may not be able to recognize or interpret the year 2000.
Should any of the computer systems employed by the WM Funds' major service
providers fail to process this type of information properly, it could have a
negative impact on Fund operations and the services that are provided to
contract owners. Similarly, the values of certain of the WM Funds' assets may be
adversely affected by the inability of their issues or third parties to properly
process date-related information.
The Advisor, Shareholder Service Agent and Administrator have advised the Funds
that they are reviewing all of their computer systems with the goal of modifying
or replacing such systems prior to January 1, 2000 to the extent necessary to
avoid any such negative impact. The Funds are seeking assurance from each of
their key service providers that similar replacements or modifica-tions will be
completed to avoid any negative impact from this issue. As of this date, the
Funds have received assurances from their key service providers. However, there
can be no guarantee that these assurances will ultimately be successful. In the
event a key service provider cannot provide such assurance, the Funds may
consider retaining an alternative service provider.
In addition, the Advisor has been advised by the Custodian that it is also in
the process of reviewing its systems with the same goal. As of the date of this
report, the Funds and Advisors have no reason to believe that these goals will
not be achieved.
FUND
performance*
as of April 30, 1999
<TABLE>
<CAPTION>
7-day 7-day
Simple Yield Compounded Yield Weighted Average
A shares B shares A shares B shares Maturity (days)
<S> <C> <C> <C> <C> <C>
WM Money Market Fund 4.14% 3.16% 4.23% 3.21% 65
- ---------------------------------------------------------------------------------------------------------------------------
WM Tax-Exempt Money Market Fund 3.09% 2.14% 3.14% 2.16% 48
- ---------------------------------------------------------------------------------------------------------------------------
WM California Money Fund 2.88% 2.05% 2.92% 2.07% 35
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
*During the period noted, WM Advisors, Inc. waived a portion of its management
fees and reimbursed certain other expenses. The Funds' yields would have been
lower had the Advisor not waived a portion of its fees or reimbursed certain
other expenses and the Fund's custodian had not allowed its fees to be reduced
by credits. All yield information represents past performance, which cannot
guarantee future results. For money market funds only "An investment in the Fund
is not insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
Fund."
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
WM GROUP OF FUNDS
April 30, 1999 (unaudited)
<TABLE>
<CAPTION>
MONEY TAX-EXEMPT CALIFORNIA
MARKET MONEY MARKET MONEY
FUND FUND FUND
------------ ------------ ----------
ASSETS:
<S> <C> <C> <C>
Investments, at value
(See portfolios of investments) (a) ........................... $626,441,215 $38,047,859 $37,996,212
Cash ............................................................. 3,382,924 5,092 --
Interest receivable .............................................. 3,778,996 362,213 369,975
Receivable from investment advisor ............................... -- 3,526 --
Receivable for Fund shares sold .................................. 7,495,120 481,621 --
Prepaid expenses and other assets ................................ 5,655 369 742
------------ ----------- -----------
Total Assets .................................................. $641,103,910 $38,900,680 $38,366,929
------------ ----------- -----------
LIABILITIES:
Payable for Fund shares redeemed ................................. 4,320,201 168,849 --
Payable for investment securities purchased ...................... 10,000,000 -- 1,000,211
Investment advisory fee payable .................................. 385,026 -- 32,857
Shareholder servicing and distribution fees payable .............. 10,832 67 49
Dividends payable ................................................ 209,986 8,715 --
Due to custodian ................................................. -- -- 14,190
Accrued expenses and other payables .............................. 342,093 48,096 21,962
------------ ----------- -----------
Total Liabilities ............................................. 15,268,138 225,727 1,069,269
------------ ----------- -----------
NET ASSETS ....................................................... $625,835,772 $38,674,953 $37,297,660
============ =========== ===========
- -----------------
(a) Investments, at cost ......................................... $626,441,215 $38,047,859 $37,996,212
============ =========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
WM GROUP OF FUNDS
April 30, 1999 (unaudited)
<TABLE>
<CAPTION>
MONEY TAX-EXEMPT CALIFORNIA
MARKET MONEY MARKET MONEY
FUND FUND FUND
------------ ------------ ----------
ASSETS:
<S> <C> <C> <C>
NET ASSETS CONSIST OF:
Undistributed net investment income/(distributions in excess of
net investment income) ........................................ $ (3,587) $ -- $ 2,476
Accumulated net realized gain/(loss) on investments sold ......... (73,568) 22 (43,264)
Paid-in capital .................................................. 625,912,927 38,674,931 37,338,448
------------ ----------- -----------
Total Net Assets .............................................. $625,835,772 $38,674,953 $37,297,660
============ =========== ===========
NET ASSETS:
Class A Shares ................................................... $540,043,279 $38,656,093 $37,236,954
============ =========== ===========
Class B Shares ................................................... $ 8,639,681 $ 18,860 $ 58,438
============ =========== ===========
Class S Shares ................................................... $ 3,962,011 -- $1,189
============ ======
Class I Shares ................................................... $ 73,190,801 -- $1,079
============ ======
SHARES OUTSTANDING:
Class A Shares ................................................... 540,086,946 38,656,052 37,280,863
============ =========== ===========
Class B Shares ................................................... 8,640,395 18,879 58,510
============ =========== ===========
Class S Shares ................................................... 3,962,760 -- 1,190
============ ===========
Class I Shares ................................................... 73,203,678 -- 1,081
============ ===========
CLASS A SHARES:
Net asset value per share of beneficial interest outstanding* .... $ 1.00 $ 1.00 $ 1.00
============ =========== ===========
CLASS B SHARES:
Net asset value and offering price per share of beneficial
interest outstanding* ......................................... $ 1.00 $ 1.00 $ 1.00
============ =========== ===========
CLASS S SHARES:
Net asset value and offering price per share of beneficial
interest outstanding* ......................................... $ 1.00 -- $ 1.00
============ ===========
CLASS I SHARES:
Net asset value, offering and redemption price per share of beneficial
interest outstanding .......................................... $ 1.00 -- $ 1.00
============ =========== ===========
</TABLE>
- -------------
* Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
See Notes to Financial Statements.
<PAGE>
STATEMENTS OF OPERATIONS
WM GROUP OF FUNDS
For the Six Months Ended April 30, 1999 (unaudited)
<TABLE>
<CAPTION>
MONEY TAX-EXEMPT CALIFORNIA
MARKET MONEY MARKET MONEY
FUND FUND FUND
------------ ------------ ----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest ......................................................... $ 14,005,597 $ 491,232 $ 539,324
------------ ----------- -----------
EXPENSES:
Investment advisory fee .......................................... 1,248,734 68,983 80,875
Custodian fees ................................................... 10,125 1,931 1,199
Legal and audit fees ............................................. 41,951 17,802 16,388
Registration and filing fees ..................................... 126,254 33,432 10,925
Printing and postage fees ........................................ 247,162 11,120 22,322
Other ........................................................... 25,702 1,122 2,242
Shareholder servicing and distribution fees:
Class B Shares ................................................ 35,492 537 289
Class S Shares ................................................ 23,017 -- 6
Transfer agent fees:
Class A Shares ................................................ 241,444 11,259 18,489
Class B Shares ................................................ 3,743 43 70
Class S Shares ................................................ 10,857 -- 23
Fees waived by investment advisor ................................ (18,434) (58,220) --
------------ ----------- -----------
Total expenses ............................................ 1,996,047 88,009 152,828
Fees reduced by credits allowed by the custodian ................. (6,627) (724) (45)
------------ ----------- -----------
Net expenses .............................................. 1,989,420 87,285 152,783
------------ ----------- -----------
NET INVESTMENT INCOME ............................................ 12,016,177 403,947 386,541
------------ ----------- -----------
NET REALIZED GAIN/(LOSS) ON INVESTMENTS:
Realized gain/(loss) from security transactions .................. 14,290 25 (2,290)
------------ ----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ............................................... $ 12,030,467 $ 403,972 $ 384,251
============ =========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
WM GROUP OF FUNDS
For the Six Months Ended April 30, 1999 (unaudited)
<TABLE>
<CAPTION>
MONEY TAX-EXEMPT CALIFORNIA
MARKET MONEY MARKET MONEY
FUND FUND FUND
------------ ------------ ----------
<S> <C> <C> <C>
Net investment income ............................................ $ 12,016,177 $ 403,947 $ 386,541
Net realized gain/(loss) on investments sold during the period ... 14,290 25 (2,290)
------------ ----------- -----------
Net increase in net assets resulting from operations ............. 12,030,467 403,972 384,251
Distributions to shareholders from net investment income:
Class A Shares ................................................ (10,056,725) (403,089) (386,028)
Class B Shares ................................................ (121,595) (858) (382)
Class S Shares ................................................ (80,418) -- (8)
Class I Shares ................................................ (1,757,439) -- (13)
Net increase/(decrease) in net assets from Fund share transactions:
Class A Shares ................................................ 136,587,447 13,215,047 72,014
Class B Shares ................................................ 2,020,617 (193,230) 382
Class S Shares ................................................ (2,342,223) -- 8
Class I Shares ................................................ (35,531,201) -- 13
------------ ----------- -----------
Net increase in net assets ....................................... 100,748,930 13,021,842 70,237
NET ASSETS:
Beginning of period .............................................. 525,086,842 25,653,111 37,227,423
------------ ----------- -----------
End of period .................................................... $625,835,772 $38,674,953 $37,297,660
============ =========== ===========
Undistributed net investment income/(distributions in excess
of net investment income) at end of period .................... $ (3,587) $ -- $ 2,476
============ =========== ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
WM GROUP OF FUNDS
For the Periods Ended October 31, 1998
<TABLE>
<CAPTION>
MONEY TAX-EXEMPT CALIFORNIA
MARKET MONEY MARKET MONEY
FUND(a) FUND(a) FUND(b)
------------- ------------ ----------
<S> <C> <C> <C>
Net investment income ............................................ $ 18,139,941 $ 720,598 $ 296,345
Net realized loss on investments sold during the period .......... (72,297) (3) --
------------ ----------- -----------
Net increase in net assets resulting from operations ............. 18,067,644 720,595 296,345
Distributions to shareholders from net investment income:
Class A Shares ................................................ (14,948,299) (720,041) (296,197)
Class B Shares ................................................ (103,182) (557) (141)
Class S Shares ................................................ (172,000) -- (3)
Class I Shares ................................................ (2,916,460) -- (4)
Net increase/(decrease) in net assets from Fund share transactions:
Class A Shares ................................................ 142,622,001 (6,693,465) (235,693)
Class B Shares ................................................ 6,149,166 200,309 (4,765)
Class S Shares ................................................ 6,304,983 -- 6
Class I Shares ................................................ 108,734,879 -- 8
------------ ----------- -----------
Net increase/(decrease) in net assets ............................ 263,738,732 (6,493,159) (240,444)
NET ASSETS:
Beginning of period .............................................. 261,348,110 32,146,270 37,467,867
------------ ----------- -----------
End of period .................................................... $525,086,842 $25,653,111 $37,227,423
============ =========== ===========
Undistributed net investment income/(distributions in excess
of net investment income) at end of period .................... $ (3,587) $ -- $ 2,366
============ =========== ===========
(a) Fiscal year end changed to October 31. Prior to this, the fiscal year end was December 31. The amounts reflected are for the
period January 1, 1998 through October 31, 1998.
(b) Fiscal year end changed to October 31. Prior to this, the fiscal year end was June 30. The amounts reflected are for the
period July 1, 1998 through October 31, 1998.
</TABLE>
See Notes to Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
WM GROUP OF FUNDS
For the Periods Ended December 31, 1997
<TABLE>
<CAPTION>
MONEY TAX-EXEMPT
MARKET MONEY MARKET
FUND FUND
------ ------------
<S> <C> <C>
Net investment income ............................................... $ 12,584,944 $ 1,009,403
------------ -----------
Net increase in net assets resulting from operations ................ 12,584,944 1,009,403
Distributions to shareholders from net investment income:
Class A Shares ................................................... (12,575,604) (1,009,190)
Class B Shares ................................................... (9,340) (213)
Net increase in net assets from Fund share transactions:
Class A Shares ................................................... 31,522,179 160,533
Class B Shares ................................................... 353,674 9,595
------------ -----------
Net increase in net assets .......................................... 31,875,853 170,128
NET ASSETS:
Beginning of year ................................................... 229,472,257 31,976,142
------------ -----------
End of year ......................................................... $261,348,110 $32,146,270
============ ===========
</TABLE>
See Notes to Financial Statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
WM GROUP OF FUNDS
For the Year Ended June 30, 1998
CALIFORNIA
MONEY
FUND
------------
Net investment income ......................................... $ 1,094,589
-----------
Net increase in net assets resulting from operations .......... 1,094,589
Distributions to shareholders from net investment income:
Class A Shares ............................................. (1,093,207)
Class B Shares ............................................. (1,326)
Class S Shares ............................................. (22)
Class I Shares ............................................. (31)
Net increase/(decrease) in net assets from Fund share transactions:
Class A Shares ............................................. (5,520,424)
Class B Shares ............................................. (4,780)
Class S Shares ............................................. 22
Class I Shares ............................................. 31
-----------
Net decrease in net assets .................................... (5,525,148)
NET ASSETS:
Beginning of year ............................................. 42,993,015
-----------
End of year ................................................... $37,467,867
Undistributed net investment income at end of year ............ $ 2,366
===========
See Notes to Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY
WM GROUP OF FUNDS
Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same as
the amounts shown below for such transactions.
<TABLE>
<CAPTION>
MONEY MARKET FUND
---------------------------------------------------------
SIX MONTHS ENDED
04/30/99 PERIOD ENDED YEAR ENDED
(UNAUDITED) 10/31/98(a) 12/31/97
----------------- ------------ -----------
CLASS A:
<S> <C> <C> <C>
Sold .......................................................... $387,090,839 $1,029,291,671 $631,834,628
------------ -------------- ------------
Issued in exchange for Class A shares
of the Sierra Global Money Fund ............................. -- 86,308,379 --
Issued in exchange for Class A shares
of the Sierra U.S. Government Money Fund .................... -- 21,242,345 --
Issued in exchange for Class A shares
of the Griffin Money Market Fund ............................ 227,709,262 -- --
Issued as reinvestment of dividends ........................... 9,679,557 13,666,591 12,427,917
Redeemed ...................................................... (487,892,211) (1,007,886,985) (612,740,366)
------------ -------------- ------------
Net increase .................................................. $136,587,447 $ 142,622,001 $ 31,522,179
============ ============== ============
CLASS B:
Sold .......................................................... $ 10,813,816 $ 15,707,869 $ 916,714
Issued in exchange for Class B shares
of the Sierra Global Money Fund ............................. 1,089,407 --
Issued in exchange for Class B shares
of the Sierra U.S. Government Money Fund .................... 915,101 --
Issued as reinvestment of dividends ........................... 109,748 91,008 9,036
Redeemed ...................................................... (8,902,947) (11,654,219) (572,076)
------------ -------------- ------------
Net increase .................................................. $ 2,020,617 $ 6,149,166 $ 353,674
============ ============== ============
CLASS S:
Sold .......................................................... $ 210,371 $ 1,846,781 --
Issued in exchange for Class S shares
of the Sierra Global Money Fund ............................. -- 6,970,804 --
Issued in exchange for Class S shares
of the Sierra U.S. Government Money Fund .................... -- 499,760 --
Issued as reinvestment of dividends ........................... 77,667 166,689 --
Redeemed ...................................................... (2,630,261) (3,179,051) --
------------ --------------
Net increase/(decrease) ....................................... $ (2,342,223) $ 6,304,983 --
============ ==============
CLASS I:
Sold .......................................................... $ 29,776,459 $ 37,068,793 --
Issued in exchange for Class I shares
of the Sierra Global Money Fund ............................. -- 76,706,647 --
Issued in exchange for Class I shares
of the Sierra U.S. Government Money Fund .................... -- 13,331,744 --
Issued as reinvestment of dividends ........................... 1,480,238 356,277 --
Redeemed ...................................................... (66,787,898) (18,728,582) --
------------ --------------
Net increase/(decrease) ....................................... $(35,531,201) $ 108,734,879 --
============ ==============
- ----------------
(a) Fiscal year end changed to October 31. Prior to this, the fiscal year end was December 31. The amounts reflected are for
the period January 1, 1998 through October 31, 1998.
</TABLE>
See Notes to Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY
WM GROUP OF FUNDS
Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same as
the amounts shown below for such transactions.
<TABLE>
<CAPTION>
TAX-EXEMPT MONEY MARKET FUND
---------------------------------------------------------
SIX MONTHS ENDED
04/30/99 PERIOD ENDED YEAR ENDED
(UNAUDITED) 10/31/98(a) 12/31/97
----------------- ------------ -----------
<S> <C> <C> <C>
CLASS A:
Sold ........................................................ $ 20,092,365 $ 30,837,963 $ 55,194,481
Issued in exchange for Class A shares of the Griffin
Tax Free Money Market Fund ................................ 21,062,829
Issued as reinvestment of dividends ......................... 386,384 710,706 1,003,218
Redeemed .................................................... (28,326,531) (38,242,134) (56,037,166)
------------ -------------- ------------
Net increase/(decrease) ..................................... $ 13,215,047 $ (6,693,465) $ 160,533
============ ============== ============
CLASS B:
Sold ........................................................ $ 124,929 $ 201,001 $ 12,980
Issued as reinvestment of dividends ......................... 645 552 188
Redeemed .................................................... (318,804) (1,244) (3,573)
------------ -------------- ------------
Net increase/(decrease) ..................................... $ (193,230) $ 200,309 $ 9,595
============ ============== ============
</TABLE>
- -------------
(a) Fiscal year end changed to October 31. Prior to this, the fiscal year end
was December 31. The amounts reflected are for the period
January 1, 1998 through October 31, 1998.
See Notes to Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS -- CAPITAL STOCK ACTIVITY
WM GROUP OF FUNDS
Since the Funds have sold, issued as reinvestment of dividends and redeemed
shares only at a constant net asset value of $1.00 per share, the number of
shares represented by such sales, reinvestments and redemptions is the same as
the amounts shown below for such transactions.
<TABLE>
<CAPTION>
CALIFORNIA MONEY MARKET FUND
---------------------------------------------------------
SIX MONTHS ENDED
04/30/99 PERIOD ENDED YEAR ENDED
(UNAUDITED) 10/31/98(a) 06/30/98
----------------- ------------ -----------
<S> <C> <C> <C>
CLASS A:
Sold .................................................... $ 13,783,985 $ 10,436,305 $ 30,331,723
Issued as reinvestment of dividends ..................... 364,788 286,201 1,056,492
Redeemed ................................................ (14,076,759) (10,958,199) (36,908,639)
------------ -------------- ------------
Net increase/(decrease) ................................. $ 72,014 $ (235,693) $ (5,520,424)
============ ============== ============
CLASS B:
Sold .................................................... $ -- $ -- $ 70,100
Issued as reinvestment of dividends ..................... 382 301 1,322
Redeemed ................................................ -- (5,066) (76,202)
------------ -------------- ------------
Net increase/(decrease) ................................. $ 382 $ (4,765) $ (4,780)
============ ============== ============
CLASS S:
Sold .................................................... $ -- $ -- $ --
Issued as reinvestment of dividends ..................... 8 6 22
Redeemed ................................................ -- -- --
------------ -------------- ------------
Net increase ............................................ $ 8 $ 6 $ 22
============ ============== ============
CLASS I:
Sold .................................................... $ -- $ -- $ --
Issued as reinvestment of dividends ..................... 13 8 31
Redeemed ................................................ -- -- --
------------ -------------- ------------
Net increase ............................................ $ 13 $ 8 $ 31
============ ============== ============
- ----------
(a) Fiscal year end changed to October 31. Prior to this, the fiscal year end was June 30. The amounts reflected are for the
period July 1, 1998 through October 31, 1998.
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
MONEY MARKET FUND
For a Fund share outstanding throughout each period.
<TABLE>
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
--------------------------------- ----------------------------------
NET ASSET VALUE, TOTAL FROM DIVIDENDS FROM
BEGINNING NET INVESTMENT INVESTMENT NET INVESTMENT TOTAL
OF PERIOD INCOME OPERATIONS INCOME DISTRIBUTIONS
--------- ------ ---------- ------ -------------
CLASS A
<S> <C> <C> <C> <C> <C>
04/30/99 (unaudited) $ 1.00 $ 0.022 $ 0.022 $ (0.022) $ (0.022)
10/31/98(b) 1.00 0.041 0.041 (0.041) (0.041)
12/31/97 1.00 0.049 0.049 (0.049) (0.049)
12/31/96 1.00 0.048 0.048 (0.048) (0.048)
12/31/95 1.00 0.052 0.052 (0.052) (0.052)
12/31/94 1.00 0.034 0.034 (0.034) (0.034)
12/31/93 1.00 0.024 0.024 (0.024) (0.024)
CLASS B
04/30/99 (unaudited) 1.00 0.017 0.017 (0.017) (0.017)
10/31/98(b) 1.00 0.035 0.035 (0.035) (0.035)
12/31/97 1.00 0.041 0.041 (0.041) (0.041)
12/31/96 1.00 0.038 0.038 (0.038) (0.038)
12/31/95 1.00 0.042 0.042 (0.042) (0.042)
12/31/94(c) 1.00 0.018 0.018 (0.018) (0.018)
CLASS S
04/30/99 (unaudited) 1.00 0.017 0.017 (0.017) (0.017)
10/31/98(c) 1.00 0.026 0.026 (0.026) (0.026)
CLASS I
04/30/99 (unaudited) 1.00 0.022 0.022 (0.022) (0.022)
10/31/98(c) 1.00 0.031 0.031 (0.031) (0.031)
</TABLE>
- -----------------------
* Annualized.
+ Total return is not annualized for periods less than one year. The total
returns would have been lower if certain fees had not been waived by the
investment advisor or if fees had not been reduced by credits allowed by
custodian.
(a) Ratio of operating expenses to average net assets includes expenses paid
indirectly beginning in fiscal year 1995.
(b) Fiscal year end changed to October 31. Prior to this, the fiscal year end
was December 31. (c) On May 2, 1994, March 23, 1998 and March 23, 1998 the
Fund commenced selling Class B, Class S and Class I shares, respectively.
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------
RATIO OF OPERATING
EXPENSES TO AVERAGE
RATIO OF NET ASSETS WITHOUT
OPERATING RATIO OF NET FEE WAIVERS AND/OR
NET ASSETS, EXPENSES TO INVESTMENT INCOME FEES REDUCED BY
NET ASSET VALUE, END OF PERIOD AVERAGE TO AVERAGE CREDITS ALLOWED
END OF PERIOD TOTAL RETURN+ (IN 000'S) NET ASSETS(a) NET ASSETS BY THE CUSTODIAN
---------------- ------------- ------------- ------------- ---------- ------------------
<S> <C> <C> <C> <C> <C>
$ 1.00 2.17% $ 540,043 0.71%* 4.33%* 0.72%*
1.00 4.19% 403,443 0.66%* 4.94%* 0.67%*
1.00 5.04% 260,877 0.75% 4.93% 0.83%
1.00 4.88% 229,355 0.79% 4.77% 0.89%
1.00 5.33% 171,225 0.92% 5.19% 1.04%
1.00 3.47% 125,651 0.95% 3.39% 1.04%
1.00 2.41% 135,187 0.97% 2.38% 1.03%
1.00 1.73% 8,640 1.65%* 3.39%* 1.72%*
1.00 3.52% 6,619 1.64%* 3.96%* 1.65%*
1.00 4.15% 471 1.59% 4.15% 1.80%
1.00 3.91% 117 1.69% 3.87% 1.90%
1.00 4.30% 74 1.94% 4.19% 2.10%
1.00 2.78% 11 1.93%* 3.29%* 2.62%*
1.00 1.73% 3,962 1.92%* 3.12%* 2.09%*
1.00 2.58% 6,304 1.81%* 3.79%* 1.82%*
1.00 2.21% 73,191 0.59%* 4.47%* 0.62%*
1.00 3.17% 108,720 0.54%* 5.06%* 0.55%*
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
TAX-EXEMPT MONEY MARKET FUND
For a Fund share outstanding throughout each period.
<TABLE>
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
------------------------------------------- ------------------------------------------
NET REALIZED DISTRIBUTIONS
NET ASSET VALUE, AND UNREALIZED TOTAL FROM DIVIDENDS FROM FROM
BEGINNING NET INVESTMENT GAIN ON INVESTMENT NET INVESTMENT NET REALIZED TOTAL
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
--------- ------ ----------- ---------- ------ ----- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A
04/30/99 (unaudited) $ 1.00 $ 0.013 $ -- $ 0.013 $ (0.013) $ -- $ (0.013)
10/31/98(b) 1.00 0.026 -- 0.026 (0.026) -- (0.026)
12/31/97 1.00 0.031 -- 0.031 (0.031) -- (0.031)
12/31/96 1.00 0.030 -- 0.030 (0.030) -- (0.030)
12/31/95 1.00 0.034 0.000# 0.034 (0.034) (0.000)# (0.034)
12/31/94 1.00 0.024 -- 0.024 (0.024) -- (0.024)
12/31/93 1.00 0.020 -- 0.020 (0.020) -- (0.020)
CLASS B
04/30/99 (unaudited) 1.00 0.008 -- 0.008 (0.008) -- (0.008)
10/31/98(b) 1.00 0.018 -- 0.018 (0.018) -- (0.018)
12/31/97 1.00 0.022 -- 0.022 (0.022) -- (0.022)
12/31/96 1.00 0.020 -- 0.020 (0.020) -- (0.020)
12/31/95 1.00 0.023 0.000# 0.023 (0.023) (0.000)# (0.023)
12/31/94(c) 1.00 0.010 -- 0.010 (0.010) -- (0.010)
- ----------------
* Annualized.
# Amount represents less than $0.001 per share.
+ Total return is not annualized for periods less than one year. The total returns would have been lower if certain fees had
not been waived by the investment advisor or if fees had not been reduced by credits allowed by custodian.
(a) Ratio of operating expenses to average net assets includes expenses paid indirectly beginning in fiscal year 1995.
(b) Fiscal year end changed to October 31. Prior to this, the fiscal year end was December 31.
(c) On May 2, 1994, the Fund commenced selling Class B shares.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------
RATIO OF OPERATING
EXPENSES TO AVERAGE
RATIO OF NET ASSETS WITHOUT
OPERATING RATIO OF NET FEE WAIVERS AND/OR
NET ASSETS, EXPENSES TO INVESTMENT INCOME FEES REDUCED BY
NET ASSET VALUE, END OF PERIOD AVERAGE TO AVERAGE CREDITS ALLOWED
END OF PERIOD TOTAL RETURN+ (IN 000'S) NET ASSETS(a) NET ASSETS BY THE CUSTODIAN
---------------- ------------- ------------- ------------- ---------- ------------------
<S> <C> <C> <C> <C> <C>
$ 1.00 1.31% $ 38,656 0.56%* 2.64%* 0.95%*
1.00 2.60% 25,441 0.55%* 3.09%* 0.72%*
1.00 3.18% 32,134 0.57% 3.14% 0.71%
1.00 3.05% 31,974 0.57% 3.01% 0.72%
1.00 4.01% 30,988 0.61% 3.39% 0.81%
1.00 2.37% 33,612 0.60% 2.33% 0.76%
1.00 2.06% 34,513 0.50% 2.03% 0.77%
1.00 0.81% 19 1.57%* 1.63%* 1.96%*
1.00 1.79% 212 1.63%* 2.01%* 1.80%*
1.00 2.26% 12 1.50% 2.32% 2.27%
1.00 2.01% 2 1.53% 1.99% 4.22%
1.00 2.83% 1 1.73% 2.12% 3.66%
1.00 1.45% 1 1.66%* 1.38%* 3.61%*
</TABLE>
See Notes to Financial Statements.
<PAGE>
FINANCIAL HIGHLIGHTS
CALIFORNIA MONEY FUND
For a Fund share outstanding throughout each period.
<TABLE>
<CAPTION>
INCOME FROM INVESTMENT OPERATIONS LESS DISTRIBUTIONS
--------------------------------- -----------------------------------
NET ASSET VALUE, TOTAL FROM DIVIDENDS FROM
BEGINNING NET INVESTMENT INVESTMENT NET INVESTMENT TOTAL
OF PERIOD INCOME OPERATIONS INCOME DISTRIBUTIONS
--------- ------ ---------- ------ -------------
CLASS A
<S> <C> <C> <C> <C> <C>
04/30/99 (unaudited) $ 1.00 $ 0.011 $ 0.011 $ (0.011) $ (0.011)
10/31/98(b) 1.00 0.008 0.008 (0.008) (0.008)
06/30/98 1.00 0.027 0.027 (0.027) (0.027)
06/30/97 1.00 0.028 0.028 (0.028) (0.028)
06/30/96 1.00 0.029 0.029 (0.029) (0.029)
06/30/95 1.00 0.028 0.028 (0.028) (0.028)
06/30/94 1.00 0.018 0.018 (0.018) (0.018)
CLASS B
04/30/99 (unaudited) 1.00 0.007 0.007 (0.007) (0.007)
10/31/98(b) 1.00 0.005 0.005 (0.005) (0.005)
06/30/98 1.00 0.019 0.019 (0.019) (0.019)
06/30/97 1.00 0.020 0.020 (0.020) (0.020)
06/30/96 1.00 0.022 0.022 (0.022) (0.022)
06/30/95(c) 1.00 0.020 0.020 (0.020) (0.020)
CLASS S
04/30/99 (unaudited) 1.00 0.007 0.007 (0.007) (0.007)
10/31/98(b) 1.00 0.005 0.005 (0.005) (0.005)
06/30/98 1.00 0.019 0.019 (0.019) (0.019)
06/30/97 1.00 0.020 0.020 (0.020) (0.020)
06/30/96 1.00 0.022 0.022 (0.022) (0.022)
06/30/95(c) 1.00 0.020 0.020 (0.020) (0.020)
CLASS I
04/30/99 (unaudited) 1.00 0.011 0.011 (0.011) (0.011)
10/31/98(b) 1.00 0.008 0.008 (0.008) (0.008)
06/30/98 1.00 0.029 0.029 (0.029) (0.029)
06/30/97(c) 1.00 0.028 0.028 (0.028) (0.028)
- ------------------------
* Annualized.
+ Total return is not annualized for periods less than one year. The total returns would have been lower if certain fees had
not been waived by the investment advisor or if fees had not been reduced by credits allowed by custodian.
(a) Ratio of operating expenses to average net assets includes expenses paid indirectly beginning in fiscal year 1995.
(b) Fiscal year end changed to October 31. Prior to this, the fiscal year end was June 30.
(c) On July 1, 1994, July 1, 1994 and July 25, 1996 the Fund commenced selling Class B, Class S and Class I shares,
respectively.
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------
RATIO OF OPERATING
EXPENSES TO AVERAGE
RATIO OF NET ASSETS WITHOUT
OPERATING RATIO OF NET FEE WAIVERS AND/OR
NET ASSETS, EXPENSES TO INVESTMENT INCOME FEES REDUCED BY
NET ASSET VALUE, END OF PERIOD AVERAGE TO AVERAGE CREDITS ALLOWED
END OF PERIOD TOTAL RETURN+ (IN 000'S) NET ASSETS(A) NET ASSETS BY THE CUSTODIAN
---------------- ------------- ------------- ------------- ---------- ------------------
<S> <C> <C> <C> <C> <C>
$ 1.00 1.07% $ 37,237 0.85%* 2.15%* 0.85%*
1.00 0.99% 37,167 0.73%* 2.31%* 0.87%*
1.00 2.73% 37,403 0.82% 2.71% 0.99%
1.00 2.81% 42,923 0.85% 2.75% 1.14%
1.00 3.00% 51,211 0.85% 2.94% 1.14%
1.00 2.79% 48,836 0.85% 2.73% 1.15%
1.00 1.81% 62,500 0.85% 1.80% 1.27%
1.00 0.66% 58 1.99%* 1.01%* 1.99%*
1.00 0.63% 58 1.60%* 1.44%* 2.05%*
1.00 1.96% 63 1.60% 1.88% 1.82%
1.00 2.03% 68 1.60% 2.00% 1.89%
1.00 2.22% 147 1.60% 2.19% 1.89%
1.00 2.04% 79 1.60% 1.98% 1.90%
1.00 0.68% 1 5.68%* 1.01%* 5.68%*
1.00 0.66% 1 1.60%* 1.44%* 4.80%*
1.00 1.96% 1 1.60% 1.85% 1.85%
1.00 2.03% 1 1.60% 2.00% 1.89%
1.00 2.22% 10 1.60% 2.19% 1.89%
1.00 2.04% 10 1.60% 1.98% 1.90%
1.00 1.15% 1 0.75%* 2.26%* 0.75%*
1.00 1.06% 1 0.60%* 2.44%* 0.77%*
1.00 2.99% 1 0.63% 2.89% 0.81%
1.00 2.89% 1 0.60%* 3.00%* 0.89%*
</TABLE>
See Notes to Financial Statements.
<PAGE>
PORTFOLIO OF INVESTMENTS
MONEY MARKET FUND
APRIL 30, 1999 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
------ -----
COMMERCIAL PAPER (DOMESTIC) - 32.5%
American Express Corporation:
$10,000,000 4.800% due 05/13/1999+++ ......................... $ 9,984,000
10,000,000 4.830% due 05/18/1999+++ ......................... 9,977,192
10,000,000 Associates Financial Services
Company of Puerto Rico,
4.820% due 06/22/1999+++ ......................... 9,930,378
10,000,000 Associates First Capital Corporation,
4.800% due 06/14/1999+++ ......................... 9,941,334
6,500,000 Bear Stearns Companies Inc.,
4.820% due 05/20/1999+++ ......................... 6,483,465
10,000,000 Caterpillar Financial Services Corporation,
4.820% due 06/22/1999+++ ......................... 9,930,378
10,000,000 Deere & Company,
4.800% due 05/25/1999+++ ......................... 9,968,000
11,000,000 General Electric Capital Corporation,
4.820% due 05/10/1999+++ ......................... 11,000,000
15,000,000 International Lease Finance Corporation,
4.820% due 05/10/1999+++ ......................... 14,981,925
Morgan Stanley, Dean Witter, Discover:
10,000,000 4.850% due 05/11/1999+++ ......................... 9,986,528
10,000,000 4.850% due 05/21/1999+++ ......................... 9,973,056
10,000,000 National Rural Utilities Cooperative
Finance Corporation,
4.810% due 05/24/1999+++ ......................... 9,969,270
10,000,000 Petrobras International Finance Company,
4.840% due 06/22/1999+++ ......................... 9,930,089
20,000,000 Sears Roebuck Acceptance Corporation,
4.800% due 05/03/1999+++ ......................... 19,994,667
10,000,000 Wells Fargo Company,
4.810% due 06/28/1999+++ ......................... 9,922,506
10,000,000 Weyerhaeuser Real Estate Company,
4.800% due 05/12/1999+++ ......................... 9,985,334
Windmill Funding Corporation:
10,000,000 4.830% due 06/17/1999+++ ......................... 9,936,941
10,000,000 4.820% due 06/21/1999+++ ......................... 9,931,717
12,000,000 Xerox Credit Corporation,
4.820% due 05/14/1999+++ ......................... 11,979,114
-------------
Total Commercial Paper (Domestic)
(Cost $203,805,894) .............................. 203,805,894
-------------
COMMERCIAL PAPER (YANKEE) - 14.8%
American Honda Finance Corporation:
15,000,000 4.850% due 05/26/1999+++ ......................... 14,949,479
10,000,000 4.790% due 06/22/1999+++ ......................... 9,930,811
10,000,000 Pemex Capital Inc.,
4.810% due 06/18/1999+++ ......................... 9,935,867
10,000,000 Statoil (Den Norske Stats Oljeselskap A/S),
4.780% due 05/20/1999+++ ...... 9,974,772
Toyota Motor Credit Corporation:
10,000,000 4.800% due 05/28/1999+++ ......................... 9,964,000
10,000,000 4.800% due 06/16/1999+++ ......................... 9,938,667
10,000,000 Westdeutsche Landesbank,
4.900% due 07/07/1999 ............................ 10,000,368
Xerox Capital (Europe) Plc:
10,000,000 4.810% due 05/21/1999+++ ......................... 9,973,278
7,700,000 4.830% due 06/04/1999+++ ......................... 7,664,875
-------------
Total Commercial Paper (Yankee)
(Cost $92,332,117) ............................... 92,332,117
-------------
CERTIFICATE OF DEPOSIT (DOMESTIC) - 1.8%
(Cost $11,000,000)
11,000,000 NationsBank N.A.,
4.870% due 10/06/1999 ............................ 11,000,000
CERTIFICATES OF DEPOSIT (YANKEE) - 3.8%
10,000,000 Bayerische Landesbank NY,
4.820% due 04/10/2000++ .......................... 9,995,000
5,000,000 Societe Generale, NY,
4.853% due 05/07/1999++ .......................... 4,999,955
9,000,000 Toronto Dominion Bank, NY,
5.640% due 07/14/1999 ............................ 9,006,944
-------------
Total Certificates of Deposit (Yankee)
(Cost $24,001,899) ............................... 24,001,899
-------------
CORPORATE BONDS AND NOTES - 11.5%
8,650,000 Associates Corporation of North America,
Sr. Note,
6.680% due 09/17/1999 ............................ 8,695,759
3,000,000 Bank of New York, Note,
5.750% due 05/14/1999 ............................ 3,000,764
3,500,000 Chase Manhattan Corporation, Sub. Note,
8.000% due 06/15/1999 ............................ 3,509,597
3,500,000 DBSI First Mortgage 1998, Note,
5.171% due 07/01/2023++ .......................... 3,500,000
Everett Clinic, P.S., Note:
5,600,000 5.090% due 12/01/2018++ .......................... 5,600,000
3,900,000 5.090% due 12/01/2021++ .......................... 3,900,000
First National Bank of Chicago, Note:
10,000,000 4.820% due 05/06/1999 ............................ 10,000,000
10,000,000 4.810% due 06/21/1999 ............................ 10,000,000
2,000,000 Ford Motor Credit Corporation, Note,
7.250% due 05/15/1999 ............................ 2,001,119
5,000,000 Keybank N.A., Sr. Note,
4.906% due 07/23/1999++ .......................... 5,000,569
5,000,000 NationsBank N.A., Note,
5.170% due 02/04/2000++ .......................... 5,000,000
5,000,000 Swiss Bank Corporation, Note,
5.740% due 06/11/1999 ............................ 4,999,946
6,500,000 U.S. Bank N.A., Note,
4.908% due 09/15/1999++ .......................... 6,500,754
-------------
Total Corporate Bonds and Notes
(Cost $71,708,508) ............................... 71,708,508
-------------
MEDIUM TERM NOTES - 15.3%
Bear Stearns Companies Inc.:
7,500,000 4.944% due 08/31/1999++ .......................... 7,500,000
5,000,000 5.053% due 01/28/2000++ .......................... 5,000,000
5,000,000 Caterpillar Financial Services Corporation,
5.000% due 11/16/1999 ............................ 4,999,418
9,000,000 CIT Group Inc.,
6.100% due 08/09/1999 ............................ 9,020,540
7,000,000 Citicorp,
4.980% due 09/17/1999++ .......................... 7,000,000
2,500,000 Ford Motor Credit Company,
7.900% due 05/17/1999 ......... .................. 2,503,284
7,000,000 General Electric Capital Corporation,
5.760% due 04/24/2000 ......... 7,042,328
8,000,000 General Motors Acceptance Corporation,
5.070% due 02/03/2003++ .......................... 7,995,600
International Lease Finance Corporation:
5,000,000 6.600% due 07/06/1999 ............................ 5,007,526
4,920,000 5.960% due 07/07/1999 ............................ 4,922,340
Merrill Lynch & Company, Inc.:
5,000,000 5.870% due 05/04/1999 ............................ 5,000,046
5,000,000 6.010% due 08/04/1999 ............................ 5,012,779
5,000,000 4.920% due 08/13/1999++ .......................... 5,000,000
5,000,000 National Rural Utilities Cooperative
Finance Corporation,
6.040% due 11/18/1999 ............................ 5,027,760
5,000,000 NationsBank Corporation,
7.230% due 05/02/1999 ............................ 5,000,203
10,000,000 Wells Fargo Company, Series J,
5.225% due 04/10/2000 ............................ 9,998,200
-------------
Total Medium Term Notes
(Cost $96,030,024) ............................... 96,030,024
-------------
MUNICIPAL BONDS - 5.3%
12,400,000 California Housing Finance Agency, Home
Mortgage, Series M, Taxable Bonds,
4.850% due 08/01/2019+ ........................... 12,400,000
5,000,000 Cleveland, Ohio, Airport Systems Revenue,
Series E, Taxable Bonds,
4.900% due 01/01/2020+ ........................... 5,000,000
10,000,000 Santa Rosa, California, Wastewater
Revenue, Series A, Taxable Bonds,
5.000% due 09/01/2028+ ........................... 10,000,000
Washington State Housing Finance
Community, Multi-family Revenue,
Series B, Taxable Bonds:
2,480,000 (Boardwalk Apartments),
5.050% due 09/01/2028+ ........................... 2,480,000
2,100,000 (Cedar Landing),
5.050% due 12/01/2028+ ........................... 2,100,000
1,400,000 (Oxford Square),
5.050% due 12/01/2028+ ........................... 1,400,000
-------------
Total Municipal Bonds
(Cost $33,380,000) ............................... 33,380,000
-------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 13.9%
FEDERAL FARM CREDIT BANK (FFCB) - 4.0%
5,000,000 4.840% due 06/01/1999 ............................ 5,000,000
5,000,000 4.870% due 09/01/1999 ............................ 5,000,000
10,000,000 4.770% due 11/01/1999 ............................ 10,000,000
5,000,000 5.020% due 03/01/2000 ............................ 4,999,167
-------------
Total FFCBs (Cost $24,999,167) ..................... 24,999,167
-------------
FEDERAL HOME LOAN BANK (FHLB) - 4.8%
5,000,000 5.030% due 10/29/1999 ............................ 5,000,000
5,000,000 5.000% due 11/17/1999 ............................ 5,000,000
5,000,000 5.000% due 02/24/2000 ............................ 4,999,406
5,000,000 5.160% due 03/08/2000 ............................ 5,000,213
10,000,000 5.050% due 04/26/2000 ............................ 9,997,149
-------------
Total FHLBs (Cost $29,996,768) ..................... 29,996,768
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA) - 3.1%
9,000,000 4.980% due 05/12/1999 ............................ 8,999,989
10,000,000 8.350% due 11/10/1999 ............................ 10,170,899
-------------
Total FNMAs (Cost $19,170,888) ..................... 19,170,888
-------------
Student Loan Mortgage Association (SLMA) - 2.0%
5,000,000 4.500% due 08/02/1999 ............................ 4,985,950
7,500,000 4.900% due 10/27/1999 MTN ........................ 7,500,000
-------------
Total SLMAs (Cost $12,485,950) ..................... 12,485,950
-------------
Total U.S. Government Agency Obligations
(Cost $86,652,773) ............................... 86,652,773
-------------
REPURCHASE AGREEMENT - 1.2%
(Cost $7,530,000)
7,530,000 Agreement with Credit Suisse First Boston
Corporation, 4.840% dated 04/30/1999,
to be repurchased at $7,533,037 on
05/03/1999, collaterialized by
$7,680,600 U.S. Treasury Bond,
8.875% due 02/15/2019
(Market Value $7,668,086) ......................... 7,530,000
-------------
TOTAL INVESTMENTS (COST $626,441,215*) ................... 100.1% 626,441,215
OTHER ASSETS AND LIABILITIES (NET) ....................... (0.1) (605,443)
----- -------------
NET ASSETS ............................................... 100.0% $625,835,772
===== =============
* Aggregate cost for federal tax purposes.
+ Variable rate securities payable upon not more than seven calendar days'
notice. The interest rate shown reflects the rate currently in effect.
++ Floating rate security whose interest rate is reset periodically based on
an index.
+++ Rate represents discount rate at the date of purchase.
------------------------
GLOSSARY OF TERMS
MTN - Medium Term Note
------------------------
See Notes to Financial Statements.
<PAGE>
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT MONEY MARKET FUND
APRIL 30, 1999 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
------ -----
STATE AND MUNICIPAL SECURITIES - 98.2%
ALABAMA - 2.1%
$ 500,000 Daphne-Villa Mercy, Special Care
Authority, Facilities Financing,
(Mercy Medical Project),
3.950% due 12/01/2027+ ........................... $ 500,000
330,000 Prichard, Waterworks & Sewer Board,
Water & Sewer Revenue,
6.500% due 10/01/1999 ............................ 334,479
-------------
834,479
-------------
ALASKA - 0.2%
100,000 Anchorage, Unlimited Tax General
Obligation Bonds, Series B,
4.400% due 08/01/1999 ............................ 100,162
-------------
CALIFORNIA - 1.3%
Los Angeles Regional Airport (American
Airlines, Los Angeles International):
200,000 Series B,
4.250% due 12/01/2024+ ........................... 200,000
300,000 Series E,
4.250% due 12/01/2024+ ........................... 300,000
-------------
500,000
-------------
FLORIDA - 1.5%
600,000 South Miami, Health Facilities Authority
Hospital Revenue Bonds,
Baptist Health System,
4.150% due 10/01/1999 ........................... 602,077
-------------
GEORGIA - 5.8%
1,000,000 De Kalb County School District, Unlimited
Tax General Obligation Bonds, Series A,
4.250% due 07/01/1999 ........................... 1,001,057
Georgia State Unlimited Tax General
Obligation Bonds:
700,000 Municipal Electric Authority,
Revenue Bonds, Series B,
4.000% due 06/01/2020+ ....................... 700,000
300,000 Series C,
7.000% due 05/01/1999 ........................... 300,000
250,000 Series D,
6.500% due 08/01/1999 ........................... 251,872
-------------
2,252,929
-------------
HAWAII - 0.3%
100,000 Honolulu, Unlimited Tax General
Obligation Bonds, Series B,
4.600% due 10/01/1999 ............................ 100,515
-------------
ILLINOIS - 5.7%
100,000 Carbondale, Unlimited Tax General
Obligation Bonds,
5.900% due 05/01/1999 ............................ 100,000
Chicago O'Hare International Airport
General Airport Second Lein
Revenue Bonds:
500,000 1984 Series A,
3.950% due 01/01/2015+ ........................... 500,000
500,000 1984 Series B,
3.950% due 01/01/2015+ ........................... 500,000
1,000,000 Illinois Health Facilities Authority,
(Swedish Covenant), Series A,
4.000% due 08/15/2027+ ........................... 1,000,000
100,000 Illinois State, Unlimited Tax General
Obligation Bonds,
4.300% due 07/01/1999 ............................ 100,074
-------------
2,200,074
-------------
INDIANA - 1.3%
500,000 Indiana Health Facilities Financing
Authority Revenue, (Deaconess
Hospital Inc.),
3.900% due 01/01/2022 ............................ 500,000
-------------
KANSAS - 0.8%
300,000 Shawnee, Industrial Revenue Bonds,
(Shawnee Village Associates LP),
3.500% due 12/01/2009+ ............................ 300,000
-------------
KENTUCKY - 2.4%
400,000 Kentucky Development Financing
Authority, Hospital Revenue
Bonds, (Baptist Hospital Project),
(Pre-refunded to 09/01/1999 @ 102)
7.200% due 09/01/2015 ............................ 413,121
500,000 Kentucky Rural Water Finance
Corporation, Revenue Bonds,
(Public Projects),
4.000% due 07/15/1999 ............................ 500,826
-------------
913,947
-------------
LOUISIANA - 3.1%
1,000,000 Louisiana Public Facilities Authority,
Revenue Bonds, (Multi-family
Mortgage Revenue, Emberwood
Projects),
4.000% due 10/01/2022+ ........................... 1,000,000
210,000 State Colleges & Universities, Southeastern
Louisiana University Revenue Bonds,
3.750% due 06/01/1999 ......................... 210,000
-------------
1,210,000
-------------
MICHIGAN - 9.0%
125,000 Marysville, Public School District,
Unlimited Tax General
Obligation Bonds,
3.700% due 05/01/1999 ............................ 125,000
1,000,000 Michigan Municipal Bond Authority
Revenue, (Local Government
Loan Project),
6.100% due 05/15/1999 ............................ 1,000,931
500,000 Michigan State Hospital Finance
Authority Revenue,
(Mt. Clemens Hospital),
4.000% due 08/15/2015+ ........................... 500,000
1,000,000 Michigan State Housing Development
Authority Revenue,
(Laurel Valley Projects),
3.950% due 12/01/2007+ ........................... 1,000,000
Michigan State Job Development Authority
Revenue:
300,000 (East Lansing Residence),
3.250% due 12/01/2014+ ........................... 300,000
200,000 (Kentwood Residence),
3.250% due 11/01/2014+ ........................... 200,000
345,000 Northview, Public School District,
Unlimited Tax General
Obligation Bonds,
3.600% due 05/01/1999 ............................ 345,000
-------------
3,470,931
-------------
MISSOURI - 4.4%
500,000 Kansas City Industrial Development
Authority, Hospital Revenue
Bonds, Baptist Health Systems,
Series A,
4.050% due 08/01/2018+ ........................... 500,000
800,000 Missouri State Environmental
Improvement and Energy Resources
Authority, Pollution Control Revenue
Bonds, (Union Electric Company
Project), Series A,
3.200% due 06/01/2015+ ........................... 800,000
400,000 Missouri Higher Education Loan Authority,
Student Loan Revenue, Series B,
4.100% due 06/01/2020+ ........................... 400,000
-------------
1,700,000
-------------
MONTANA - 1.0%
375,000 Lewis & Clark Counties, Elementary
School District No.001 (Helena),
Unlimited Tax General Obligation Bonds,
3.500% due 06/01/1999 ............................ 375,000
-------------
NEBRASKA - 2.3%
900,000 Nebhelp Inc. Revenue Bonds,
Student Loan Program, Series C,
4.100% due 12/01/2016+ ........................... 900,000
-------------
NEVADA - 3.4%
1,105,000 Henderson, Improvement District Revenue
Bonds, Series A,
3.600% due 11/01/1999 ............................ 1,107,692
200,000 Nevada State Limited Tax General
Obligation Bonds,
7.125% due 05/01/1999 ............................ 200,000
-------------
1,307,692
-------------
NEW JERSEY - 0.4%
144,000 Elizabeth, Sewer Utility,
Unlimited Tax General Obligation Bonds,
4.900% due 07/15/1999 ............................ 144,345
-------------
NEW YORK - 1.0%
300,000 Jefferson County, Industrial
Development Agency,
Watertown-Carthage TV,
3.200% due 12/01/2012+ ........................... 300,000
100,000 Nassau County, Sewer Districts,
Unlimited Tax General Obligation Bonds, Series G,
(Called in full @ 102.50 on 05/01/1999),
7.375% due 05/01/2004 ............................ 102,500
-------------
402,500
-------------
NORTH CAROLINA - 3.7%
1,200,000 North Carolina Education Facilities
Financing Agency Revenue Bonds,
3.950% due 09/01/2020+ ........................... 1,200,000
250,000 North Carolina State Unlimited Tax
General Obligation Bonds,
5.500% due 08/01/1999 ............................ 251,248
-------------
1,451,248
-------------
NORTH DAKOTA - 1.6%
500,000 Burleigh County, Retirement Facility
Revenue Bonds, (Missouri Slope
Lutheran Care Center),
(Pre-refunded to 06/01/1999 @ 100),
7.250% due 06/01/2012 ............................ 501,528
100,000 West Fargo, Refunding and Improvement
Unlimited Tax General Obligation Bonds,
Series B,
3.900% due 05/01/1999 ............................ 100,000
-------------
601,528
-------------
OHIO - 3.5%
100,000 Mount Vernon Waterworks Revenue,
Revenue Bonds,
3.000% due 12/01/1999 ............................ 100,000
240,000 Norwalk City School District,
Unlimited Tax General Obligation Bonds,
3.000% due 12/01/1999 ............................ 240,000
1,000,000 Ohio State Public Facilities Community,
Higher Education Capital Facilities
Series II-A,
4.375% due 11/01/1999 ............................ 1,006,333
-------------
1,346,333
-------------
OREGON - 2.6%
1,000,000 Oregon State Transportation Revenue,
Regional Light Rail Fund,
(Westside Project),
5.375% due 06/01/1999 ............................ 1,001,382
-------------
PENNSYLVANIA - 2.1%
800,000 Philadelphia Water & Wastewater Revenue,
Series B,
3.850% due 08/01/2027+ ............................ 800,000
-------------
RHODE ISLAND - 2.6%
1,000,000 Rhode Island State Student Loan Authority
Revenue, Series 3,
4.000% due 06/01/2026+ ........................... 1,000,000
-------------
TENNESSEE - 2.1%
500,000 Metro Government, Nashville/Davidson
County, Industrial Development
Multi-family Housing Revenue Bonds,
(Chimneytop II),
3.550% due 09/01/2006+ ........................... 500,000
300,000 Metropolitan Nashville Airport Revenue
Authority, Special Facilities Revenue
Bonds, (American Airlines Project),
Series A,
4.250% due 10/01/2012+ ........................... 300,000
-------------
800,000
-------------
TEXAS - 11.3%
500,000 Austin County, Industrial Development
Corporation, (Justin Industries, Inc.
Project),
3.900% due 12/01/2014+ ........................... 500,000
375,000 Brenham, Limited Tax General Obligation
Bonds,
5.500% due 08/15/1999 ............................ 377,067
Grapevine, Industrial Development
Corporation Revenue Bonds,
(American Airlines):
400,000 Series A2,
4.250% due 12/01/2024+ ........................... 400,000
600,000 Series B4,
4.250% due 12/01/2024+ ........................... 600,000
500,000 Lower Neches Valley, Industrial
Development Corporation, Pollution
Control Revenue Bonds, (Neches River
Treatment Corporation Project),
Series 1994A, (Guaranteed By Mobil
Corporation),
3.950% due 02/01/2004+,++ ........................ 500,000
195,000 Needville, Independent School District,
Unlimited Tax General Obligation Bonds,
4.500% due 08/15/1999 ............................ 195,523
900,000 Texas State, Veterans Housing Assistance
Fund I, Unlimited Tax General
Obligation Bonds,
3.850% due 12/01/2016+ ........................... 900,000
900,000 University Texas, University Revenue,
Financing System, Series B,
4.500% due 08/15/1999 ............................ 903,583
-------------
4,376,173
-------------
UTAH - 0.6%
130,000 Utah Assisted Municipal Power Systems
Revenue, (San Juan Project),
4.000% due 06/01/1999 ........................... 130,032
100,000 Utah State Board, Regents Revenue Bonds,
(Dixie College),
3.700% due 05/01/1999 ............................ 100,000
-------------
230,032
-------------
VIRGINIA - 1.3%
500,000 Norfolk Virginia Capital Improvement,
Unlimited Tax General Obligation Bonds,
5.250% due 06/01/1999 ............................ 500,898
-------------
WASHINGTON - 11.2%
290,000 Bainbridge Island, Refundable &
Improvement, Unlimited Tax
General Obligation Bonds,
4.000% due 12/01/1999 ............................ 291,324
250,000 Clark County, School District
No. 037, Unlimited Tax General
Obligaiton Bonds,
4.100% due 06/01/1999 ............................ 250,167
525,000 Franklin County, Public Utility District
No. 001, Electric Revenue Bonds,
4.000% due 09/01/1999 ............................ 525,689
600,000 Richland, Golf Enterprise
Revenue Bonds, 1996,
4.050% due 12/01/2021+ ........................... 600,000
965,000 Seattle, Housing Authority Low Income
Housing Assistance Revenue, (Bayview
Manor Project), Series B,
4.050% due 05/01/2019+ ........................... 965,000
400,000 Seattle, Unlimited Tax General Obligation
Refunding Bonds, Series C,
4.000% due 08/01/1999 ............................ 400,390
125,000 Seattle, Water System Revenue Bonds,
4.600% 06/01/1999 ................................ 125,089
255,000 Silver Lake Water District, Water & Sewer
Revenue, Revenue Bonds,
3.000% due 12/01/1999 ............................ 255,000
290,000 Snohomish & Island Counties, School
District, No. 401 Stanwoud,
Unlimited Tax General Obligation Bonds,
3.250% due 12/15/1999 ............................ 290,000
620,000 Whatcom County, School District,
No. 501 Bellingham, Unlimited
Tax General Obligation Bonds,
4.000% due 12/01/1999 ............................ 623,197
-------------
4,325,856
-------------
WISCONSIN - 7.8%
1,000,000 Milwaukee County,
Unlimited Tax General Obligation
Bonds, Series A,
5.100% due 09/01/1999 ............................ 1,004,732
1,000,000 Milwaukee Vocational Technical Adult
Education District, Unlimited Tax
General Obligation Bonds, Series B,
4.500% due 06/01/1999 ............................ 1,001,174
500,000 West Allis, Unlimited Tax General
Obligation Bonds, Series C,
4.200% due 06/01/1999 ............................ 500,215
500,000 Wisconsin State, Health Facilities Authority,
(Franciscan Health Care), Series A-1,
3.950% due 01/01/2016+ ........................... 500,000
-------------
3,006,121
-------------
West Virginia - 1.8%
700,000 Marion County, Solid Waste Disposal
Facility Revenue, (Granttown Project),
Series A,
4.050% due 10/01/2017 ............................ 700,000
-------------
Total State and Municipal Securities
(Cost $37,954,222) ............................... 37,954,222
-------------
INVESTMENT COMPANY SECURITY - 0.2%
(Cost $93,637)
93,637 Dreyfus Tax-Exempt Cash
Management Fund ................................. 93,637
-------------
TOTAL INVESTMENTS (Cost $38,047,859*) ................ 98.4% 38,047,859
OTHER ASSETS AND LIABILITIES (Net) ................... 1.6 627,094
----- -------------
NET ASSETS ........................................... 100.0% $ 38,674,953
===== =============
- ------------------
* Aggregate cost for federal tax purposes.
+ Floating rate security. The interest rate shown reflects the rate currently
in effect.
++ Obligations of various corporations and are not supported by
other third party credit agreements.
See Notes to Financial Statements.
<PAGE>
PORTFOLIO OF INVESTMENTS
CALIFORNIA MONEY FUND
APRIL 30, 1999 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
------ -----
MUNICIPAL BONDS AND NOTES - 101.7%
CALIFORNIA - 101.7%
Alameda County:
Industrial Development
Authority Revenue:
$ 900,000 Heat and Control Inc. Project,
Series 1995A,
3.950% due 11/01/2025+ ........................... $ 900,000
500,000 JMS Family Partnership, Series 1995A,
3.950% due 10/01/2025+ ........................... 500,000
100,000 Transportation Authority Sales Tax
Revenue,
5.200% due 11/01/1999 ............................ 101,139
610,000 Water District Revenue,
3.500% due 06/01/1999+ ........................... 610,307
200,000 Big Bear Lake, Industrial Revenue,
Southwest Gas Corporation Project,
Series A,
3.900% due 12/01/2028+ ........................... 200,000
California Health Facilities Financing Authority:
1,000,000 Kaiser Permanente, Revenue Bonds,
Series A,
(Pre-refunded to 10/01/1999 @ 102),
7.000% due 10/01/2018+ ........................... 1,039,429
800,000 Pooled Loan Program, Series B,
3.950% due 10/01/2010+ ........................... 800,000
200,000 Scripps Health, Insured Revenue Bonds,
Series A,
3.850% due 10/01/2022+ ........................... 200,000
300,000 Scripps Health, Insured Revenue Bonds,
Series B,
3.850% due 10/01/2022+ ........................... 300,000
360,000 Scripps Health, Memorial Hospital,
Insured Revenue Bonds, Series B,
3.850% due 12/01/2015+ ........................... 360,000
California Pollution Control Financing Authority:
500,000 OMS Equity Stanislaus Project,
Resource Recovery Revenue Bonds,
4.300% due 10/01/2010+ ........................... 500,000
1,500,000 Pacific Gas & Electric, Pollution
Control Revenue Funding Bonds,
Series 1996A,
4.000% due 12/01/2016+ ........................... 1,500,000
675,000 Solid Waste Disposal Revenue Bonds,
Credit & Revenue Income Project,
Series A,
3.950% due 10/01/2010+ ........................... 675,000
200,000 Southern California Edison, Pollution
Control Revenue Bonds, Series B,
4.350% due 02/28/2008+ ........................... 200,000
300,000 Southern California Edison, Pollution
Control Revenue Bonds, Series D,
4.350% due 02/28/2008+ ........................... 300,000
100,000 California State Public Works Board,
Department of Corrections, State
Prisons, Series A,
4.500% due 12/01/1999 ............................ 100,863
1,500,000 California Statewide Communities
Development Corporation, IDR,
Tri-Valley Growers, Series 1995F,
4.000% due 12/01/2010+ ........................... 1,500,000
1,000,000 California Transportation Finance Authority,
3.950% due 10/01/2027+ ........................... 1,000,000
725,000 Central Contra Costa County, Sanitary
District Refunding Revenue Bonds,
3.500% due 09/01/1999 ............................ 726,427
900,000 Chula Vista, Charter City Revenue Bonds,
Home Depot Inc. Project,
3.800% due 12/01/2010+ ........................... 900,000
500,000 Elk Grove, Unified School District, TRAN,
4.500% due 06/30/1999 ............................ 500,714
300,000 Emeryville, Public Finance Authority,
Shellmound Park Redevelopment
and Housing Project, Series B,
4.000% due 09/01/1999 ............................ 300,869
1,000,000 Fresno Unified School District, COP,
(Pre-refunded 05/01/1999 @ 102),
7.000% due 05/01/2012 ............................ 1,025,952
380,000 Irvine, Improvement Board Act of 1915,
Assessment District 89-10,
4.200% due 09/02/2015+ ........................... 380,000
100,000 Irvine Ranch, California Water District,
COP, Capital Improvement Project,
4.200% due 08/01/2016 ............................ 100,000
2,290,000 Kern County, California Board of
Education, TRAN,
4.250% due 06/30/1999 ............................ 2,292,414
100,000 Lancaster, California Redevelopment
Agency, MFHR, Westwood Park
Apartments, Series 1985K,
3.800% due 12/01/2007 ............................ 100,000
1,000,000 Livermore, MFHR, Portola Meadows
Apartments, Series 1989A,
4.000% due 05/01/2019+ ........................... 1,000,000
200,000 Los Angeles, Central Library Project,
Series A, COP,
(Pre-refunded to 06/01/1999 @ 102),
7.200% due 06/01/2020 ............................ 208,780
200,000 Los Angeles, Community College District,
COP, Capital Improvement Project,
Series A,
(Pre-refunded to 08/15/1999 @ 102),
7.250% due 08/15/2004 ............................ 206,051
370,000 Los Angeles, Convention & Exhibition
Center Authority, Series A,
Refunding COP,
(Pre-refunded to 08/15/1999 @ 101.50),
7.3750% due 08/15/2018 ........................... 382,810
Los Angeles, Regional Airports
Improvement Corporation, Lease
Revenue, Bonds:
American Airlines Inc., Los Angeles
International:
100,000 Series A,
4.250% due 12/01/2024+ ........................... 100,000
500,000 Series B,
4.250% due 12/01/2024+ ........................... 500,000
500,000 Series G,
4.250% due 12/01/2024+ ........................... 500,000
100,000 Two Corporation, Sublease,
4.250% due 12/01/2025+ ........................... 100,000
100,000 Los Angeles, Unified School District, COP,
7.000% due 06/01/2004 ............................ 102,273
100,000 Los Angeles County, IDR, Hon
Industries Project,
3.850% due 10/01/2004+ ........................... 100,000
700,000 Los Angeles County, Pension Obligation,
Refunding Revenue, Series A,
3.800% due 06/30/2007+ ........................... 700,000
400,000 Los Angeles County, Transportation
Commission Sales Tax Refunding
Revenue Bonds, Series 1992A,
3.800% due 07/01/2012+ ........................... 400,000
700,000 Los Angeles County, Unified School
District, COP, Belmont Learning
Complex, Series 1997A,
3.850% due 12/01/2017+ ........................... 700,000
550,000 Modesto, City School District, Financing
Project, COP,
3.500% due 09/01/1999 ............................ 551,083
100,000 Ontario, California Redevelopment Agency,
MFHR, Seasons at Gateway,
Subordinate Series 1996B,
3.900% due 12/01/2026+ ........................... 100,000
1,000,000 Orange County, Apartment Development
Revenue, Wood Canyon Villas,
4.050% due 12/01/2021+ ........................... 1,000,000
500,000 Orange County, COP, Florence Crittendoc
Services,
3.850% due 03/01/2016+ ........................... 500,000
1,500,000 Orange County, Fire Authority, TRAN,
4.200% due 07/13/1999 ............................ 1,501,736
360,000 Orange County, Water Districts, COP,
(Pre-refunded to 08/15/1999 @ 102)
7.700% due 08/15/2000 ............................ 373,622
530,000 Pittsburg, Redevelopment Agency Tax
Allocation, Los Medanos Community
Development Project,
5.200% due 08/01/1999 ............................ 532,935
1,000,000 Rancho Mirage, Joint Powers Financing
Authority, COP, Eisenhower Medical
Center, Series 1997B,
3.850% due 07/01/2022+ ........................... 1,000,000
495,000 Redwood City, Public Financing Authority,
Lease Revenue Bonds, Capital Facilities
Project,
4.000% due 07/15/1999 ............................ 495,296
100,000 Regional Airports Improvement
Corporation, (Los Angeles Terminal
Facilities Completion),
4.300% due 12/01/2025+ ........................... 100,000
964,000 Riverside County, Public Facilities
Authority, COP, Series B,
3.850% due 12/01/2015+ ........................... 964,000
175,000 Roseville California Special Tax Bonds,
Community Facilities District 1,
Northwest,
4.000% due 09/01/1999 ............................ 175,546
230,000 Sacramento County, Board of Education,
COP,
4.000% due 03/01/2000 ............................ 231,911
195,000 Saddleback Valley, Unified School District,
Public Financing Authority
Special Tax Revenue Bonds, Series A,
3.600% due 09/01/1999+ ........................... 195,383
San Bernardino County, MFHR, Western
Properties Projects:
200,000 Series I,
3.350% due 02/01/2005 ............................ 200,000
400,000 Series V,
3.350% due 08/01/2005 ............................ 400,000
800,000 San Diego, Multi-Family Mortgage
Revenue Bonds,
3.350% due 08/01/2014+ ........................... 800,000
1,000,000 San Francisco, Redevelopment Agency
MFHR, Fillmore Center, Series A-1,
3.850% due 07/01/2026+ ........................... 1,000,000
1,400,000 San Jose, Redevelopment Agency Revenue,
Merged Area Redevelopment Project,
Series B,
3.700% due 07/01/2026+ ........................... 1,400,000
270,000 San Juan, Unified School District, COP,
3.650% due 08/01/1999 ............................ 270,000
115,000 San Mateo, Sewer Revenue Bonds,
Series B,
3.650% due 08/01/1999 ............................ 115,284
400,000 Santa Clara, Electric Revenue Bonds,
Series A,
3.900% due 07/01/2010+ ........................... 400,000
205,000 Santa Clara County, Financing Authority
Lease Revenue Bonds,
Multiple Facilities Projects, Series A,
3.375% due 07/01/2017+ ........................... 205,000
600,000 Santa Clara County, TRAN,
4.500% due 10/01/1999 ............................ 603,723
400,000 Santa Monica, Community College District,
COP,
2.900% due 06/01/1999 ............................ 400,000
700,000 Southern California Public Power
Authority, Palo Verde Project, Series C,
3.800% due 07/01/2017+ ........................... 700,000
1,200,000 Southern Transmission Project,
3.800% due 07/01/2019+ ........................... 1,200,000
395,000 West Covina, Redevelopment Agency
Lease Revenue Bonds,
Lakes Public Parking Project,
3.700% due 08/01/2018+ ........................... 395,000
-------------
Total Municipal Bonds and Notes
(Cost $37,923,547) .................................. 37,923,547
-------------
SHARES
------
INVESTMENT COMPANY SECURITY-0.2%
(Cost $72,665)
72,665 Dreyfus Basic California Municipal Money
Market Fund ...................................... 72,665
-------------
TOTAL INVESTMENTS (Cost $37,996,212*) ................... 101.9% 37,996,212
OTHER ASSETS AND LIABILITIES (Net) ...................... (1.9) (698,552)
----- -------------
NET ASSETS .............................................. 100.0% $ 37,297,660
===== =============
* Aggregate cost for federal tax purposes.
+ Variable rate security that is payable on demand or upon a five business
days' notice, and secured by a letter of credit, liquidity agreement or
letter of credit, liquidity agreement or other credit support. The interest
rates shown reflects the rate currently in effect.
-----------------------------------------------------
GLOSSARY OF TERMS
COP - Certificate of Participation
IDR - Industrial Development Revenue
MFHR - Multi-Family Housing Revenue
TRAN - Tax and Revenue Anticipation Note
-----------------------------------------------------
See Notes to Financial Statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
WM GROUP OF FUNDS
1. ORGANIZATION AND BUSINESS
WM Trust I ("Trust I") was organized under the laws of the Commonwealth of
Massachusetts on September 19, 1997 as a business entity commonly known as a
"Massachusetts business trust." Trust I is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. WM Trust II ("Trust II") was organized as a Massachusetts
business trust under the laws of the Commonwealth of Massachusetts on February
22, 1989 and is registered under the 1940 Act, as an open-end management
investment company. Trust I and Trust II (together the "Trusts") consist of 18
funds as follows:
TRUST I TRUST II
EQUITY FUNDS EQUITY FUNDS
Bond & Stock Fund Growth Fund
Growth & Income Fund Emerging Growth Fund
Northwest Fund International Growth Fund
FIXED INCOME FUNDS FIXED INCOME FUNDS
U.S. Government Securities Fund Short Term High Quality Bond Fund
Income Fund Target Maturity 2002 Fund
High Yield Fund
MUNICIPAL FUNDS
MUNICIPAL FUND California Municipal Fund
Tax-Exempt Bond Fund California Insured Intermediate Municipal Fund
Florida Insured Municipal Fund
MONEY MARKET FUNDS
Money Market Fund MONEY MARKET FUND
Tax-Exempt Money Market Fund California Money Fund
Information presented in these financial statements pertains only to the Money
Market Funds, hereafter referred to as the "Funds." The financial statements for
the Equity Funds, Fixed Income Funds and the Municipal Funds are presented in a
separate report.
WM Advisors, Inc. (the "Advisor" or "WM Advisors") (formerly Composite Research
& Management Co.), a wholly-owned subsidiary of Washington Mutual, Inc.
("Washington Mutual"), a publicly owned financial services company, serves as
investment advisor to the Trusts.
The Money Market Fund and the California Money Fund each offer four classes of
shares: Class A shares, Class B shares, Class S shares and Class I shares. The
Tax-Exempt Money Market Fund offers Class A and Class B shares. Class A shares
of the Funds are not subject to an initial or contingent deferred sales charge
("CDSC"). Certain Class A shares purchased by exchange from another Fund within
the Trusts may be subject to a CDSC if redeemed within two years of purchase.
Class B Shares and Class S Shares are not subject to an initial sales charge.
Class B shares and Class S shares are generally subject to a CDSC if redeemed
within five years of purchase. Class I shares are not available for direct
purchase by investors and are not subject to an initial sales charge or CDSC.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates. The following is a summary of
significant accounting policies consistently followed by the Funds in the
preparation of their financial statements.
PORTFOLIO VALUATION:
Securities are valued on the basis of amortized cost, which approximates market
value. Amortized cost valuation involves initially valuing an instrument at its
cost and thereafter assuming a constant amortization to maturity of any discount
or premium, as long as the effect of fluctuating interest rates on the market
value of the instrument is not significant. Restricted securities and certain
other assets are valued by the investment advisor under the supervision of the
Board of Trustees.
REPURCHASE AGREEMENTS:
Each Fund may engage in repurchase agreement transactions. Under the terms of a
typical repurchase agreement, the Fund, through its custodian, takes possession
of an underlying debt obligation subject to an obligation of the seller to
repurchase. The Fund is then obligated to resell the obligation at an agreed
upon price and time, thereby determining the yield during the Fund's holding
period. The value of the collateral is at all times at least equal to the total
amount of the repurchase obligation, including interest. In the event of
counterparty default, the Fund would seek to use the collateral to offset losses
incurred. There is potential loss to the Fund in the event the Fund is delayed
or prevented from exercising its right to dispose of the collateral securities,
including the risk of a possible decline in the value of the underlying
securities during the period while the Fund seeks to assert its rights. WM
Advisors, acting under the supervision of the Board of Trustees, reviews the
value of the collateral and the credit worthiness of those banks and dealers
with whom each Fund enters into repurchase agreements.
ILLIQUID INVESTMENTS:
Up to 10% of the net assets of the Funds, may be invested in securities that are
not readily marketable, including: (1) repurchase agreements with maturities
greater than seven calendar days; (2) time deposits maturing in more than seven
calendar days; (3) to the extent a liquid secondary market does not exist for
the instruments, futures contracts and options thereon; (4) certain
over-the-counter options; (5) certain variable rate demand notes having a demand
period of more than seven days; and (6) securities, the disposition of which are
restricted under Federal securities laws, excluding certain Rule 144A
securities, as defined below.
Illiquid securities generally cannot be sold or disposed of in the ordinary
course of business (within seven days) at approximately the value at which the
Funds have valued the investments. This may have an adverse effect on the Fund's
ability to dispose of particular illiquid securities at fair market value and
may limit the Fund's ability to obtain accurate market quotations for purposes
of valuing the securities and calculating the net asset value of shares of the
Fund. The Funds may also purchase securities that are not registered under the
Securities Act of 1933, as amended (the "Act"), but that can be sold to
qualified institutional buyers in accordance with Rule 144A under the Act ("Rule
144A Securities"). Rule 144A Securities generally may be resold only to other
qualified institutional buyers. If a particular investment in Rule 144A
Securities is not determined to be liquid under the guidelines established by
the Board of Trustees, that investment will be included within the 10%
limitation, as applicable, on investments in illiquid securities.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME:
Securities transactions are recorded as of the trade date (the date the order to
buy or sell is executed). Realized gains and losses from securities sold are
recorded on the identified cost basis. Interest income is recorded on the
accrual basis and consists of interest accrued and, if applicable, discount
accreted less premiums amortized. Each Fund's investment income and realized and
unrealized gains and losses are allocated among the classes of that Fund based
upon the relative average net assets of each class.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date; interest income is not accrued
until settlement date. Each Fund instructs the custodian to segregate assets of
the Fund with a current value at least equal to the amount of its when-issued
purchase commitments.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income of the Funds are declared daily and paid
monthly. Distributions of any net capital gains earned by a Fund are distributed
no less frequently than annually at the discretion of the Board of Trustees.
Additional distributions of net investment income and capital gains for each
Fund may be made at the discretion of the Board of Trustees in order to avoid
the application of a 4% non-deductible excise tax on certain undistributed
amounts of ordinary income and capital gains. Income distributions and capital
gain distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles. These
differences are primarily due to timing differences and differing
characterizations of distributions made by each Fund as a whole.
FEDERAL INCOME TAXES:
It is each Fund's policy to qualify as a regulated investment company by
complying with the requirements of the Internal Revenue Code of 1986, as
amended, applicable to regulated investment companies and by, among other
things, distributing substantially all of its taxable and tax-exempt earnings to
its shareholders. Therefore, no Federal income tax provision is required.
EXPENSES:
General expenses of the Trust are allocated to all the Funds based upon relative
net assets of each Fund. Operating expenses directly attributable to a class of
shares are charged to the operations of that class of shares. Expenses of each
Fund not directly attributable to the operations of any class of shares are
prorated among the classes to which the expenses relate based on the relative
average net assets of each class of shares.
3. INVESTMENT ADVISORY AND OTHER TRANSACTIONS
WM Advisors serves as investment advisor to the Funds. The Advisor is entitled
to a monthly fee, in arrears, based on a percentage of the average daily net
assets of each Fund at the following rates:
FEES ON NET ASSETS FEES ON NET ASSETS
UP TO EXCEEDING
NAME OF FUND $1 BILLION $1 BILLION
------------ ---------- ----------
Money Market Fund ............... .45% .40%
Tax-Exempt Money Market Fund .... .45% .40%
FEES ON NET ASSETS FEES ON NET ASSETS
UP TO EXCEEDING
NAME OF FUND $500 MILLION $500 MILLION
------------ ------------ ------------
California Money Fund ........... .45% .40%
WM Advisors provides administration services to the Trust at no additional fee.
The Advisor has agreed to waive a portion of its management fees. Fees waived by
the Advisor for the six months ended April 30, 1999 are as follows:
NAME OF FUND FEES WAIVED
------------ -----------
Money Market Fund ......................... $ 18,434
Tax-Exempt Money Market Fund .............. 58,220
WM Shareholder Services, Inc. (the "Transfer Agent") serves as the transfer and
shareholder servicing agent of the Funds. Shareholder servicing fees were paid
to the Transfer Agent for services incidental to issuance and transfer of
shares, maintaining shareholder lists, and issuing and mailing distributions and
reports. The authorized monthly shareholder servicing fees are as follows:
CLASS A CLASS B & S
------- -----------
The Money Market Funds
First 25,000 accounts ............... $1.85 $1.95
Each additional account ............. 1.55 1.65
Class I shares are not subject to shareholder servicing fees.
Custodian fees for certain Funds have been reduced by credits allowed by the
custodian for uninvested cash balances. These Funds could have invested this
cash in income producing investments. Fees reduced by credits allowed by the
custodian for the six months ended April 30, 1999 are shown separately in the
Statements of Operations.
4. TRUSTEES' FEES
No director, officer or employee of Washington Mutual or its subsidiaries
receives any compensation from the Trusts for serving as an officer or Trustee
of the Trusts. The Trusts, together with other mutual funds advised by WM
Advisors, Inc., pays each Trustee who is not a director, officer or employee of
Washington Mutual or its subsidiaries, $18,000 per annum plus $3,000 per board
meeting attended and $1,000 per board meeting attended by telephone. Trustees
are also reimbursed for travel and out-of-pocket expenses. The Chairman of the
each committee receives $500 per committee meeting attended.
Pursuant to an exemptive order granted by the Securities and Exchange
Commission, the Trust's eligible Trustees may participate in a deferred
compensation plan (the "Plan") which may be terminated at any time. Under the
Plan, Trustees may elect to defer receipt of all or a portion of their fees
which, in accordance with the Plan, are invested in mutual fund shares. Upon
termination of the Plan, Trustees that have deferred accounts under the Plan
will be paid benefits no later than the time the payments would otherwise have
been made without regard to such termination. All benefits provided under these
plans are funded and any payments to Plan participants are paid solely out of
the Trusts' assets.
5. DISTRIBUTION PLANS
WM Funds Distributor, Inc. (the "Distributor"), a registered broker-dealer and
indirect wholly-owned subsidiary of Washington Mutual, serves as distributor for
Class A, B, and S shares of the Funds. For the six months ended April 30, 1999,
the Distributor received $81,257 representing CDSC fees from Class B and S
shares. WM Financial Services, Inc. ("WM Securities) also serves as a registered
broker-dealer. For the six months ended April 30, 1999, WM Securities received
$21,680, representing CDSC fees from Class B and S shares.
Each of the Funds has adopted three distribution plans, pursuant to Rule 12b-1
under the 1940 Act, applicable to Class A, Class B and Class S shares of the
Fund (each, a "Rule 12b-1 Plan"), respectively. There are no 12b-1 Plans
applicable to Class I shares of the Funds. Under the applicable Rule 12b-1
Plans, the Distributor may receive a service fee at an annual rate of 0.25% of
the average daily net assets of each class. The Trustees have not authorized,
and the Funds do not currently pay, service fees with respect to Class A shares.
In addition, the Distributor is paid a fee as compensation in connection with
the offering and sale of Class B and Class S shares at an annual rate of 0.75%
of the average daily net assets of such shares. These fees may be used to cover
the expenses of the Distributor primarily intended to result in the sale of such
shares, including payments to the Distributor's representatives or others for
selling shares. Because the Distributor may retain any amount of its fee that is
not so expended, the Rule 12b-1 Plans are characterized by the SEC as
"compensation-type" plans. The service fee is paid by the Fund to the
Distributor, which in turn, pays a portion of the service fee to broker/dealers
that provide services, such as accepting telephone inquiries and transaction
requests and processing correspondences, new account applications and subsequent
purchases by check for the shareholders. Under their terms, each of the Class A
Plan, Class B Plan and Class S Plan shall remain in effect from year to year,
provided such continuance is approved annually by vote of the Board of Trustees,
including a majority of those Trustees who are not "interested persons" of the
Trusts, as defined in the 1940 Act, as those persons who have no direct or
indirect financial interest in the operation of such distribution plans, or any
agreements related to such plans.
6. SHARES OF BENEFICIAL INTEREST
The Trust may issue an unlimited number of shares of beneficial interest, each
without par value.
As of April 30, 1999, WM Shareholder Services, Inc. owned greater than five
percent of the respective shares classes:
<TABLE>
<CAPTION>
NUMBER OF PERCENTAGE OF
FUND SHARES TOTAL FUND SHARES
----------- -----------------
NAME OF FUND CLASS S CLASS I CLASS S CLASS I
------------ ------- ------- ------- -------
<S> <C> <C> <C> <C>
Money Market Fund .......................... - 4,468,856 -- 6.10%
California Money Fund ...................... 594 1,080 49.92% 100.00%
</TABLE>
7. GEOGRAPHIC AND INDUSTRY CONCENTRATION AND RISK FACTORS
There are certain risks arising from the California Money Fund's investments in
California municipal securities. The California Money Fund is more susceptible
to factors adversely affecting issuers of California municipal securities than a
fund that is not concentrated in these issuers to the same extent. Uncertain
economic conditions or governmental developments may affect the ability of
California municipal securities issuers to meet their financial obligations.
8. REORGANIZATION
On March 8, 1999, each Acquiring Fund, as listed below acquired the assets and
certain liabilities of the Acquired Fund, also listed below, in a tax-free
exchange for shares of the Acquiring Fund, pursuant to a plan of reorganization
approved by the Acquired Fund's shareholders. Total shares issued by the
Acquiring Fund, the value of the shares issued by the Acquiring Fund, the total
net assets of the Acquired Fund and the Acquiring Fund are as follows:
<TABLE>
<CAPTION>
VALUE OF TOTAL NET
SHARES SHARES TOTAL NET TOTAL NET ASSETS OF
ISSUED BY ISSUED ASSETS OF ASSETS OF ACQUIRING
ACQUIRING ACQUIRED ACQUIRING BY ACQUIRED ACQUIRING ACQUIRING FUND AFTER
FUND FUND FUND FUND FUND FUND ACQUISITION
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
WM Money Griffin Money
Market Fund Market Fund 227,709,262 $227,709,262 $227,709,262 $497,903,478 $725,612,740
WM Tax-Exempt Griffin Tax-Exempt
Money Fund Money Fund 21,062,829 21,062,829 21,062,829 24,092,383 45,155,212
</TABLE>
<PAGE>
[graphic omitted]
This Semi-Annual Report is published for the general information of the
shareholders of the WM Group of Funds. It is authorized for distribution to
prospective investors only when preceded or accompanied by a current WM Group of
Funds prospectus. A mutual fund's share price and investment return will vary
with market conditions, and the principal value of an investment when you sell
your shares may be more or less than the original cost.
The WM Group of Funds are not insured by the FDIC. They are not deposits or
obligations of, nor are they guaranteed by, any bank. These securities are
subject to investment risk, including possible loss of principal amount
invested.
Distributed by WM Funds Distributor, Inc.
Member NASD
[logo] WM Bulk Rate
GROUPofFUNDS U.S. Postage
P.O. Box 5118 P A I D
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[recycle symbol] Printed on recycled paper
WMMMSAR (6/24/99)
