[Crabbe Huson Logo] April 30, 1999
SEMIANNUAL REPORT
CRABBE HUSON FUNDS
CRABBE HUSON
CONTRARIAN FUND
CRABBE HUSON
EQUITY FUND
CRABBE HUSON
MANAGED INCOME
& EQUITY FUND
CRABBE HUSON
REAL ESTATE
INVESTMENT FUND
CRABBE HUSON
SMALL CAP FUND
THE CRABBE HUSON
SPECIAL FUND, INC.
CRABBE HUSON
CONTRARIAN INCOME FUND
CRABBE HUSON
OREGON TAX-FREE FUND
[Image of Mountain and Trees]
<PAGE>
April 30, 1999
--------------
SEMIANNUAL REPORT
Cover image copyright (C)1999 PhotoDisc, Inc.
<PAGE>
[Crabbe Huson Logo] CRABBE HUSON
A Subsidiary of Liberty Financial Companies, Inc.
June 9, 1999
To Fund Shareholders:
In September 1998, Liberty Financial Companies successfully completed its
acquisition of The Crabbe Huson Group, Inc. The six months ended April 30,
1999, represent the first full reporting period since the acquisition. As
president of the Funds, I am pleased to present the semiannual report detailing
Crabbe Huson Funds' performance during this time.
The six-month period opened with the Federal Reserve Board's final interest
rate reduction in a series of three. This contributed to a sustained stock
market rally, with the Dow Jones Industrial Average breaking through the
psychologically significant 10,000 level on March 29, 1999. However, for most
of the period, U.S. stock market returns continued to be dominated by a narrow
group of large, growth-oriented stocks, including those in the technology and
Internet sectors.
In the bond market, rallying prices early in the period gave way to renewed
concerns about inflation when the U.S. economy posted strong growth during
1998's fourth quarter. To date in 1999, strong consumption and investment have
continued to support a robust domestic economy despite weak global economies,
rising energy prices and military action in Kosovo.
For much of the period, the economic and market environments were challenging
for contrarian and value-oriented investors, as many investors continued to
seek earnings growth at seemingly any price. However, the performance gap
between growth and value stocks began to narrow in late February, and value
stocks greatly outperformed growth stocks in March, April and May -- a trend
that has been heartening for patient contrarian investors.
The following report will provide you with more specific information on your
Funds' performance. Thank you for the opportunity to help you meet your
financial goals. We hope to continue serving you in the years to come.
Sincerely,
/s/ Stephen E. Gibson
Stephen E. Gibson
President
1
<PAGE>
---------------------------------------------
CRABBE HUSON'S
CONTRARIAN INVESTMENT
PHILOSOPHY
---------------------------------------------
The contrarian style of investing
Our contrarian investment philosophy follows a strict price-driven investment
discipline. We seek to uncover fundamentally strong companies that are
currently out of favor due to weak industry conditions, business setbacks or
market preferences. In addition, we focus on identifying a catalyst that has
the potential to positively change the market's perception of a company's
value.
We base our investment style on a strict price-driven investment model. We
avoid "momentum" stocks that have experienced significant price gains. In many
cases, such stocks have been over-analyzed, over-bought and are over-valued,
which can limit further upside potential. Instead, we emphasize stocks of sound
companies undergoing periods of price weakness. We believe that such
investments have less market risk because their prices have already been
adjusted downward, in many cases to levels below their fundamental value. We
believe these stocks are likely to decline less in weak markets. They also
offer good long-term appreciation potential should they recapture the market's
favor.
An emphasis on teamwork
Our contrarian philosophy is supported by team-based portfolio management.
While all of our funds are managed by a group of fund managers, each manager
has sole responsibility for a designated portion of a fund's assets. However,
all team members are involved in evaluating market trends and setting a fund's
strategic direction. We believe that incorporating a variety of perspectives
and drawing upon the insight of all members of the fund management team can
generate a supportive environment for each portfolio manager's individual
decisions.
By definition, a contrarian approach may be at odds with mainstream investment
opinion and current market trends. However, in varying market conditions in the
past, our investment style has generated competitive, risk-adjusted results.
2
<PAGE>
CRABBE HUSON CONTRARIAN FUND
Competitive returns illustrated Fund's investment focus
Since Crabbe Huson Contrarian Fund's inception on December 1, 1998, it has
generated a total return of 12.80% for Class A shares, based on net asset
value. This compares with total returns of 15.33% for the S&P 500 Index and
9.43% for the Russell 2000 Index for the same five-month period. The Fund is
composed of an actively managed blend of small- and large-cap stocks.
Typically, a blended fund would be expected to generate total returns that fall
between the large- and small-cap indices. During the period, the Fund was
overweighted in large-cap stocks, leading it to outperform the Russell 2000
Index. However, its small stock exposure contributed to its underperformance of
the S&P 500.(1)
The Contrarian Fund's performance illustrates Crabbe Huson's trademark
contrarian investment philosophy. As an actively managed fund that blends both
large- and small-cap stocks, we sought out securities of both types that were
asset-rich yet selling at discounted prices. For example, early in the period,
we made substantial investments in the cyclical metals and energy sectors,
including Aluminum Company of America, or Alcoa (2.1% of total net assets),
Phelps Dodge (1.6%), Atlantic Richfield (2.4%) and Sonat (1.6%). These stocks
were out of favor at the time and their performance lagged the indices well
into early 1999.
Fund benefited from cyclical rally late in period
As we moved into March, we noted several conditions that began to change the
investment environment. Domestic economic reports were better than expected,
and inflation remained modest. Asia's troubled economies appeared to be
stabilizing and, in some cases, accelerating. In Brazil, a widespread recession
failed to develop in response to its devalued currency. Finally, multiple signs
of global economic strength translated into improved commodity prices as oil,
agricultural and metal prices rose from depressed levels. This environment
boosted the market's confidence and led investors to refocus their attention on
companies' earnings potential. In response, stock prices of economically
sensitive industry sectors such as energy and chemicals began to rally. The
Fund's returns reflected significant price appreciation in these sectors. Alcoa
alone rose 50% in April. Also contributing to the Fund's good performance were
investments in second tier technology stocks that have strong management, good
products and substantial market capitalizations, such as Hewlett-Packard (1.5%
of total net assets) and Seagate (1.2%). Despite their considerable earnings
power, these stocks traded at substantially lower multiples than the larger-cap
technology leaders like Microsoft, Cisco and Intel. These unheralded technology
stocks enjoyed strong price gains late in the period. Our investment strategy
was further validated when a number of the portfolio's undervalued, asset-rich
stocks
- ----------------------
(1)The Russell 2000 Index is an unmanaged index that tracks the performance of
small-capitalization U.S. stocks. The Standard & Poor's 500 Index is an
unmanaged index that tracks the performance of widely held large-capitalization
U.S. stocks. Unlike mutual funds, indexes are not investments, do not incur
fees or charges and are not professionally managed. It is not possible to
invest directly in an index.
3
<PAGE>
CRABBE HUSON CONTRARIAN FUND
were acquired by their competitors. During the period, purchase announcements
for Atlantic Richfield (2.4% of total net assets), U.S. Filter (which we sold
at the end of April), MediaOne Group (1.8%) and Sonat (1.6%) all generated good
gains for the Fund.
Continuation of favorable trends forecasted
We believe that increased global economic activity combined with strong
economic growth and low inflation in the U.S. has set the stage for broader
equity market leadership. We already have seen signs that cyclical stocks are
regaining favor and we expect the market's strength to continue broadening into
more economically sensitive stocks and, eventually, into smaller-capitalization
stocks. Looking ahead, we believe these conditions should favor investment
strategies like ours, which focus on stock picking rather than market momentum.
At this time, we believe that the portfolio is positioned to take advantage of
these trends.
/s/ James E. Crabbe /s/ John W. Jonson, CFA
James E. Crabbe John W. Johnson, CFA
/s/ Robert A. Anton /s/ Marian L. Kessler
Robert E. Anton Marian L. Kessler
/s/ John E. Maack, Jr., CFA
John E. Maack Jr., CFA
4
<PAGE>
CRABBE HUSON CONTRARIAN FUND
Crabbe Huson Contrarian Fund Cumulative Total Returns
As of April 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
Class A Shares Class B Shares Class C Shares
NAV POP NAV w/CDSC NAV w/CDSC
Inception Date: 12/1/1998 12/1/1998 12/1/1998
<S> <C> <C> <C> <C> <C> <C>
Life of Fund 12.80% 6.31% 12.50% 7.50% 12.50% 11.50%
- --------------------------------------------------------------------------------------------------
</TABLE>
Past performance cannot predict future results. Returns and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. Net asset value (NAV) returns do not
include initial sales charges or contingent deferred sales charges (CDSCs).
Public offering price (POP) returns include the maximum sales charge of 5.75%
for Class A shares. The CDSC returns reflect the maximum charges of 5% for
Class B shares and 1% for Class C shares.
Performance results reflect any voluntary waivers or reimbursement of Fund
expenses by the Advisor or its affiliates. Absent these waivers or
reimbursement arrangements, performance results would have been lower.
5
<PAGE>
CRABBE HUSON CONTRARIAN FUND
INVESTMENT PORTFOLIO (Unaudited)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------------------------------------------ --------------
COMMON STOCKS - 93.4%
---------------------
<S> <C> <C>
FINANCE, INSURANCE & REAL ESTATE - 13.4%
Insurance Carriers - 9.1%
2,900 Ace, Ltd. ....................................... $ 87,725
1,100 Chubb Corp. ..................................... 65,175
1,800 MGIC Investment Corp. ........................... 87,412
2,900 Mid Atlantic Medical Services, Inc.(a) .......... 26,463
1,500 Safeco Corp. .................................... 59,625
----------
326,400
----------
Nondepository Credit Institutions - 2.4%
12,700 Arcadia Financial Ltd.(a) ....................... 86,519
----------
Real Estate Investment Trusts - 1.9%
2,400 Equity Office Properties Trust .................. 66,150
----------
MANUFACTURING - 38.3%
Apparel - 3.9%
1,600 Liz Claiborne, Inc. ............................. 52,900
2,500 Oakley, Inc.(a) ................................. 17,188
2,600 The Warnaco Group, Inc., Class A ................ 69,388
----------
139,476
----------
Chemicals & Allied Products - 2.2%
1,100 E.I. DuPont De Nemours & Co. .................... 77,687
----------
Electronic & Electrical Equipment- 0.8%
3,500 PictureTel Corporation(a) ....................... 28,875
----------
Food & Kindred Products - 3.1%
900 Hershey Foods Corp. ............................. 47,362
1,700 PepsiCo, Inc. ................................... 62,794
----------
110,156
----------
Machinery & Computer Equipment - 9.3%
2,700 3Com Corp.(a) ................................... 70,538
7,100 Auspex Systems, Inc.(a) ......................... 50,587
700 Hewlett-Packard Co. ............................. 55,212
9,200 Mylex Corp.,(a) ................................. 41,975
1,600 Seagate Technology, Inc.(a) ..................... 44,600
5,300 Silicon Graphics, Inc.(a) ....................... 67,575
----------
330,487
----------
Measuring & Analyzing Instruments - 3.3%
20,000 Flanders Corporation(a) ......................... 53,750
8,700 Input/Output, Inc.(a) ........................... 63,075
----------
116,825
----------
Miscellaneous Manufacturing - 2.1%
2,900 Mattel, Inc. .................................... 75,038
----------
</TABLE>
6
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CRABBE HUSON CONTRARIAN FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- --------------------------------------------------------------------------
COMMON STOCKS - (continued)
---------------------------
MANUFACTURING - (continued)
Paper Products - 0.8%
<S> <C> <C>
2,100 Longview Fibre Co. ............................ $ 27,300
----------
Petroleum Refining - 2.4%
1,000 Atlantic Richfield Co. ........................ 83,937
----------
Primary Metal - 5.1%
1,200 Aluminum Company of America ................... 74,700
2,800 Century Aluminum Company ...................... 22,400
1,800 Huntco Inc. ................................... 45,725
3,000 Ispat International NV ........................ 39,187
----------
182,012
----------
Primary Smelting - 1.6%
900 Phelps Dodge Corp. ............................ 56,925
----------
Transportation Equipment - 3.7%
1,600 Lockheed Martin Corp. ......................... 68,900
1,000 Northrop Grumman Corp. ........................ 63,938
----------
132,838
----------
MINING & ENERGY - 16.1%
Oil & Gas Extraction - 4.2%
8,400 Forest Oil Corp.(a) ........................... 84,000
1,300 Tom Brown, Inc.(a) ............................ 19,419
3,300 Union Pacific Resources Group, Inc. ........... 46,200
----------
149,619
----------
Oil & Gas Field Services - 11.9%
2,300 Global Marine, Inc.(a) ........................ 34,213
3,800 Nabors Industries, Inc.(a) .................... 78,138
5,800 Marine Drilling Companies, Inc.(a) ............ 99,687
2,800 McDermott International, Inc. ................. 81,200
1,400 Smith International, Inc. ..................... 62,825
1,100 Schlumberger Ltd. ............................. 70,263
----------
426,326
----------
RETAIL TRADE - 4.3%
Food Stores - 2.3%
5,000 General Nutrition Companies, Inc.(a) .......... 82,813
----------
General Merchandise Stores - 2.0%
1,500 Federated Department Stores, Inc.(a) .......... 70,031
----------
SERVICES - 13.5%
Business Services - 0.8%
1,800 Safety-Kleen Corp. ............................ 28,575
----------
</TABLE>
7
<PAGE>
CRABBE HUSON CONTRARIAN FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- -------- ---------------------------------------------------------- -----------
COMMON STOCKS - (continued)
---------------------------
SERVICES - (continued)
Computer Related Services - 3.6%
<S> <C> <C>
4,200 Mentor Graphics Corporation(a) .......................... $ 50,925
1,900 Sequent Computer Systems, Inc.(a) ....................... 20,781
20,000 Vysis, Inc.(a) .......................................... 60,000
----------
131,706
----------
Health Services - 6.8%
3,100 Coventry Health Care Inc.(a) ............................ 28,481
3,700 Healthsouth Corp.(a) .................................... 49,719
4,800 Health Management Associates, Inc.(a) ................... 75,000
2,200 Integrated Health Services, Inc. ........................ 10,587
3,300 Tenet Healthcare Corp.(a) ............................... 77,963
----------
241,750
----------
Personal Services - 2.3%
1,300 Deluxe Corporation ...................................... 45,012
2,000 Stewart Enterprises, Inc. ............................... 39,750
----------
84,762
----------
TRANSPORTATION, COMMUNICATIONS, ELECTRIC,
GAS & SANITARY SERVICES - 5.3%
Gas Services - 3.5%
1,400 Columbia Energy Group ................................... 67,287
1,600 Sonat, Inc. ............................................. 57,200
----------
124,487
----------
Telecommunication - 1.8%
800 MediaOne Group(a) ....................................... 65,250
----------
WHOLESALE TRADE - 2.5%
Nondurable Goods
10,000 Fleming Co., Inc. ....................................... 87,500
----------
Total Common Stocks
(cost of $3,067,048)(b) 3,333,444
----------
Par SHORT-TERM OBLIGATIONS - 6.6%
- -------- -------------------------------------------------
$236,000 Repurchase agreement with ABN AMRO Chicago Corp.,
dated 04/30/99, due 05/03/99 at 4.870%, collateralized by
a U.S. Treasury bond with a maturity of 2002, market
value $239,083 (repurchase proceeds $236,096) ........... 236,000
----------
OTHER ASSETS & LIABILITIES, NET - 0.0% (1,118)
----------
NET ASSETS - 100.0% $3,568,326
==========
</TABLE>
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing.
(b) Cost for federal income tax purposes is the same.
8
<PAGE>
CRABBE HUSON EQUITY FUND (CHEYX)
Fund performance improved dramatically as market environment changed
For the six-month period ended April 30, 1999, Crabbe Huson Equity Fund
generated a total return of 18.34% for Class A shares, based on net asset
value. The S&P 500 Index generated a six-month return of 22.31%.(1) While the
Fund underperformed the Index over the six months, the portfolio's holdings
significantly outperformed the Index during the final two months of the period.
During this time, investors began to focus on the earnings power of some of the
cyclical and value-oriented stocks favored by our contrarian strategy. For the
two-month period of March and April 1999, the Fund's Class A shares returned
22.79% (at net asset value) while the S&P 500 returned only 8.03%.
Out-of-favor holdings showed gains
We took advantage of the equity market's 1998 correction to add holdings in a
number of out-of-favor stocks, focusing on stocks of companies with significant
assets that were selling at discounted prices. While we don't make sector
allocations in the Fund, many of these stocks were concentrated in several
cyclical sectors such as metals and energy. For example, we purchased Aluminum
Company of America, or Alcoa (2.3% of total net assets) and Phelps Dodge (1.9%)
in the metals sector. Both are premier companies in their industry, but were
selling at severely discounted prices. In the energy sector, stocks like Global
Marine (1.0%), Schlumberger (2.8%), Sonat (1.4%) and Atlantic Richfield (2.5%)
were available at some of the largest discounts since the 1970s. These stocks
underperformed the indices into early 1999. However, once investors shifted
their focus toward more economically sensitive stocks in late February, the
Fund recognized significant gains on these positions. The energy sector, in
particular, was bolstered by a rise in oil prices. Furthermore, we were
gratified to see takeover activity in a number of our holdings, validating our
contrarian strategy of purchasing attractive assets at advantageous prices.
Continued economic strength should benefit cyclical stocks
As we look ahead in 1999, we anticipate that stronger global economic activity
should combine with non-inflationary economic strength in the U.S. to create a
positive environment for broader equity market leadership. We have already seen
indications that cyclical stocks are regaining investors' attention and we
anticipate the market's strength will continue to include more economically
sensitive stocks. In addition, stock market volatility has increased
significantly in the past two and a half years
- ----------------------
(1)The Standard & Poor's 500 Index is an unmanaged index that tracks the
performance of widely held large-capitalization U.S. stocks. Unlike mutual
funds, indexes are not investments, do not incur fees or charges and are not
professionally managed. It is not possible to invest directly in an index.
9
<PAGE>
CRABBE HUSON EQUITY FUND
to near-record high levels. Such conditions favor contrarian strategies like
ours that focus on individual stock selection rather than on market momentum.
/s/ Robert E. Anton /s/ John E. Maack, Jr. CFA
Robert E. Anton John E. Maack Jr., CFA
/s/ Marian L. Kessler
Marian L. Kessler
Crabbe Huson Equity Fund Average Annual Total Returns
As of April 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Class A Shares Class B Shares Class C Shares Class I Shares
NAV POP NAV w/CDSC NAV w/CDSC
Inception Date: 1/31/1989 1/27/1999 1/27/1999 10/3/1996
<S> <C> <C> <C> <C> <C> <C> <C>
1 Year -6.54% -11.92% -6.84% -10.75% -6.84% -7.62% -6.17%
5 Years 13.01% 11.68% 12.94% 12.69% 12.94% 12.94% 13.24%
10 Years 13.92% 13.25% 13.88% 13.88% 13.88% 13.88% 14.03%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
Past performance cannot predict future results. Returns and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. Net asset value (NAV) returns do not
include initial sales charges or contingent deferred sales charges (CDSCs).
Public offering price (POP) returns include the maximum sales charge of 5.75%
for Class A shares. The CDSC returns reflect the maximum applicable charges of
5% for one year and 2% for five years for Class B shares; and 1% for one year
for Class C shares. Class I shares (institutional shares) are offered without
sales charges or contingent deferred sales charges.
Performance results reflect any voluntary waivers or reimbursement of Fund
expenses by the Advisor or its affiliates. Absent these waivers or
reimbursement arrangements, performance results would have been lower.
Class B, Class C and Class I share (newer class shares) performance information
includes returns of the Fund's Class A shares (the oldest existing fund class)
for periods prior to the inception of the newer class shares. These Class A
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between Class A shares and the newer class shares. Had the expense
differential been reflected, the returns for periods prior to the inception of
Class B and Class C shares would have been lower.
10
<PAGE>
CRABBE HUSON EQUITY FUND
INVESTMENT PORTFOLIO (Unaudited)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------------------------------------- ----------
COMMON STOCKS - 99.4%
---------------------
<S> <C> <C>
FINANCE, INSURANCE & REAL ESTATE - 12.1%
Insurance Carriers - 9.8%
160,400 Ace, Ltd. ................................. $4,852,100
75,200 Chubb Corp. ............................... 4,455,600
79,500 MGIC Investment Corp. ..................... 3,860,718
59,200 Safeco Corp. .............................. 2,353,200
----------
15,521,618
----------
Real Estate Investment Trusts - 2.3%
132,700 Equity Office Properties Trust ............ 3,657,544
----------
MANUFACTURING - 40.0%
Apparel - 2.6%
65,200 Liz Claiborne, Inc. ....................... 2,155,675
72,000 The Warnaco Group, Inc., Class A .......... 1,921,500
----------
4,077,175
----------
Chemicals & Allied Products - 7.7%
261,000 Dura Pharmaceuticals, Inc.(a) ............. 3,132,000
49,100 E.I. DuPont De Nemours & Co. .............. 3,467,687
282,200 Lyondell Petrochemical Co. ................ 5,502,900
----------
12,102,587
----------
Food & Kindred Products - 4.0%
60,500 Hershey Foods, Corp. ...................... 3,183,813
86,100 PepsiCo, Inc. ............................. 3,180,319
----------
6,364,132
----------
Machinery & Computer Equipment - 11.9%
121,600 3Com Corp.(a) ............................. 3,176,800
436,200 Cabletron Systems, Inc.(a) ................ 4,116,638
44,900 Hewlett-Packard Co. ....................... 3,541,487
68,600 Seagate Technology, Inc.(a) ............... 1,912,225
470,300 Silicon Graphics, Inc.(a) ................. 5,996,325
----------
18,743,475
----------
Miscellaneous Manufacturing - 1.0%
64,000 Mattel, Inc. .............................. 1,656,000
----------
Petroleum Refining - 2.5%
47,500 Atlantic Richfield Co. .................... 3,987,030
----------
Primary Metal - 2.3%
58,400 Aluminum Company of America ............... 3,635,400
----------
Primary Smelting - 1.9%
47,900 Phelps Dodge Corp. ........................ 3,029,675
----------
Stone, Clay, Glass & Concrete - 1.6%
86,100 Owens-Illinois(a) ......................... 2,496,900
----------
</TABLE>
11
<PAGE>
CRABBE HUSON EQUITY FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- ------------- -------------------------------------------------------- ----------
COMMON STOCKS - (continued)
---------------------------
<S> <C> <C>
MANUFACTURING - (continued)
Transportation Equipment - 4.5%
83,500 Lockheed Martin Corp. .................................. $3,595,719
55,500 Northrop Grumman Corp. ................................. 3,548,531
----------
7,144,250
----------
MINING & ENERGY - 17.0%
Metal Mining - 1.8%
187,300 Freeport-McMoRan Copper & Gold, Inc., Class B .......... 2,868,031
----------
Oil & Gas Extraction - 3.9%
79,200 Burlington Resources, Inc. ............................ 3,648,150
176,500 Union Pacific Resources Group, Inc. ................... 2,471,000
----------
6,119,150
----------
Oil & Gas Field Services - 11.3%
105,000 Global Marine, Inc.(a) ................................ 1,561,875
149,000 McDermott International, Inc. ......................... 4,321,000
201,400 Nabors Industries, Inc. ............................... 4,141,288
69,700 Schlumberger Ltd. ..................................... 4,452,087
74,300 Smith International, Inc. ............................. 3,334,213
----------
17,810,463
----------
RETAIL TRADE - 7.7%
Food Stores - 3.9%
374,300 General Nutrition Companies, Inc.(a) .................. 6,199,344
----------
General Merchandise Stores - 3.8%
128,800 Federated Department Stores, Inc.(a) ................. 6,013,350
----------
SERVICES - 15.8%
Computer Software - 2.0%
49,600 Adobe Systems, Inc. .................................. 3,143,400
----------
Health Services - 9.5%
205,700 Health Management Associates, Inc.(a) .................. 3,214,063
230,300 Healthsouth Corp.(a) ................................... 3,094,656
179,400 Tenet Healthcare Corp.(a) .............................. 4,238,325
79,900 United Healthcare Corp. ................................ 4,484,388
----------
15,031,432
----------
Personal Services - 4.3%
122,500 Deluxe Corporation ..................................... 4,241,563
131,800 Stewart Enterprises, Inc. .............................. 2,619,525
----------
6,861,088
----------
</TABLE>
12
<PAGE>
CRABBE HUSON EQUITY FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- ------------- -------------------------------------------------------- ----------
COMMON STOCKS - (continued)
---------------------------
<S> <C> <C>
TRANSPORTATION, COMMUNICATION,
ELECTRIC, GAS & SANITARY SERVICES - 5.8%
Air Transportation - 0.7%
28,400 Northwest Airlines Corp. Class A(a) ........................ $ 967,375
------------
Gas Services - 2.8%
48,000 Columbia Energy Group ...................................... 2,307,000
60,500 Sonat, Inc. ................................................ 2,162,875
------------
4,469,875
------------
Telecommunication - 2.3%
44,100 MediaOne Group(a) .......................................... 3,596,906
------------
WHOLESALE TRADE - 1.0%
Durable Goods
107,500 The Pep Boys - Manny, Moe & Jack ........................... 1,538,594
------------
Total Common Stocks
(cost of $140,779,630)(b) 157,034,794
------------
Par SHORT-TERM OBLIGATIONS - 9.2%
- ----------- -----------------------------
$14,580,963 Navigator Securities Lending Trust-Prime Portfolio 4.900%(c) 14,580,963
------------
OTHER ASSETS & LIABILITIES, NET - (8.6)% (13,565,693)
------------
NET ASSETS - 100.0% $158,050,064
============
</TABLE>
(a) Non-income producing.
(b) Cost for federal income tax purposes is the same.
(c) Investment of collateral received for securities loaned in Navigator
Securities Lending Trust-Prime Portfolio. As of April 30, 1999, the market
value of the securities on loan is $14,016,503.
13
<PAGE>
CRABBE HUSON MANAGED INCOME & EQUITY FUND (CHAAX)
Fund performance reflects stock/bond disparity
For the six-month period ended April 30, 1999, Crabbe Huson Managed Income &
Equity Fund generated a total return of 11.38% for Class A shares, based on net
asset value. The Fund's benchmarks, the S&P 500 Index and the Lehman Brothers
Government/Corporate Bond Index, returned 22.31% and negative 0.12%,
respectively.(1) Because the Fund is composed of both equity and fixed-income
securities, its performance reflects the wide variation in the returns of its
two benchmarks. The Fund's allocation among stocks and bonds remained
relatively stable with approximately 63% in stocks and 35% in bonds. Strong
performance by the Fund's fixed-income holdings supported total returns during
the early part of the period when many of the portfolio's contrarian equity
investments were underperforming.
Fixed-income sector managed for interest rate and credit risk
Within the fixed-income sector, we successfully managed both interest rate and
credit risk. As the period began, interest rates were declining on the Fed's
third interest rate cut. However, as contrarians, we were convinced that the
bond market's enthusiasm was too high, and that rates were likely to rise.
Accordingly, we reduced the Fund's duration to lessen its sensitivity to rising
rates. Duration is a measure of a bond mutual fund's price sensitivity to
interest rate movements. It is a mathematical calculation that assesses such
factors as the maturities of the bonds in a fund's portfolio, coupon rates and
how often they are paid, and prevailing market interest rates. Reducing the
Fund's duration below that of the Lehman Brothers Government/Corporate Bond
Index benefited the Fund's performance when rates rose between January and
April.
On the credit risk side, we took advantage of very high yields on lower-quality
bonds early in the period. With the economic outlook still uncertain, investors
perceived a higher degree of risk in these securities. With our research
affirming the creditworthiness of several bonds in the high-yield sector, we
purchased issues from firms such as Kroger Co. (0.7% of total net assets),
Owens-Illinois (0.8%) and Jones Intercable (0.3%). When the economy improved
over the following months, yields decreased substantially and our holdings
posted attractive gains.
Contrarian equity style paid off late in period
In the equity sector, our contrarian strategy prompted us to add holdings in a
number of out-of-favor stocks early in the period, many of which underperformed
into the first part of 1999. However, our focus on asset-rich companies selling
at severely discounted prices began to produce solid results when the market's
sentiment shifted late in the period. More specifically, investors began to
extend their attention to more
- ----------------------
(1)The Standard & Poor's 500 Index is an unmanaged index that tracks the
performance of widely held large-capitalization U.S. stocks. The Lehman
Brothers Government/Corporate Bond Index is an unmanaged index that tracks the
performance of U.S. government and U.S. corporate bonds. Unlike mutual funds,
indexes are not investments, do not incur fees or charges and are not
professionally managed. It is not possible to invest directly in an index.
14
<PAGE>
CRABBE HUSON MANAGED INCOME & EQUITY FUND
economically sensitive stocks as they perceived greater economic strength and
stability in the U.S. and abroad. Our investments in the energy and basic
materials sectors moved up strongly in response. In addition, a number of our
investments benefited from acquisition activity -- U.S. Filter (which was sold
at the end of April), Atlantic Richfield (1.7% of total net assets), Sonat
(0.9%), and MediaOne Group (2.1%) all announced that they would be purchased by
competitors.
As we look ahead, we believe that continued global economic growth and broader
equity market leadership should create a positive investment environment for
the Fund. We believe that the portfolio is currently positioned to capitalize
on these conditions.
/s/ Robert Anton /s/ Marian Kessler
Robert Anton Marian Kessler
/s/ John Maack Jr. /s/ Garth R. Nisbet, CFA
John Maack Jr. Garth R. Nisbet, CFA
/s/ Paul C. Rocheleau
Paul C. Rocheleau
15
<PAGE>
CRABBE HUSON MANAGED INCOME & EQUITY FUND
Crabbe Huson Managed Income & Equity Fund Average Annual Total Returns
As of April 30, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Class A Shares Class B Shares Class C Shares Class I Shares
NAV POP NAV w/CDSC NAV w/CDSC
Inception Date: 1/31/1989 1/27/1999 1/27/1999 10/28/1996
<S> <C> <C> <C> <C> <C> <C> <C>
1 Year 1.04% -3.76% 0.91% -3.57% 0.91% 0.02% 1.41%
5 Years 10.87% 9.80% 10.84% 10.58% 10.84% 10.84% 11.08%
10 Years 10.59% 10.06% 10.58% 10.58% 10.58% 10.58% 10.70%
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
Past performance cannot predict future results. Returns and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. Net asset value (NAV) returns do not
include initial sales charges or contingent deferred sales charges (CDSCs) for
Class A shares. Public offering price (POP) returns include the maximum sales
charge of 4.75% for Class A shares. The CDSC returns reflect the maximum
applicable charges of 5% for one year and 2% for five years for Class B shares;
and 1% for one year for Class C shares. Class I shares (institutional shares)
are offered without sales charges or contingent deferred sales charges.
Performance results reflect any voluntary waivers or reimbursement of Fund
expenses by the Advisor or its affiliates. Absent these waivers or
reimbursement arrangements, performance results would have been lower.
Class B, Class C and Class I share (newer class shares) performance information
includes returns of the Fund's Class A shares (the oldest existing fund class)
for periods prior to the inception of the newer class shares. These Class A
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between Class A shares and the newer class shares. Had the expense
differential been reflected, the returns for periods prior to the inception of
Class B and Class C shares would have been lower.
16
<PAGE>
CRABBE HUSON MANAGED INCOME & EQUITY FUND
INVESTMENT PORTFOLIO (Unaudited)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------------------------------------- ----------
COMMON STOCKS - 61.7%
---------------------
<S> <C> <C>
FINANCE, INSURANCE & REAL ESTATE - 7.7%
Insurance Carriers - 6.2%
48,600 Ace, Ltd. ................................. $1,470,150
22,300 Chubb Corp. ............................... 1,321,275
23,900 MGIC Investment Corp. ..................... 1,160,644
20,00 Safeco Corp. .............................. 795,000
----------
4,747,069
----------
Real Estate Investment Trusts - 1.5%
40,100 Equity Office Properties Trust ............ 1,105,256
----------
MANUFACTURING - 25.3%
Apparel - 1.7%
22,200 Liz Claiborne, Inc. ....................... 733,988
21,300 The Warnaco Group, Inc., Class A .......... 568,444
----------
1,302,432
----------
Chemicals & Allied Products - 2.7%
78,700 Dura Pharmaceuticals, Inc. ................ 944,400
15,100 E.I. DuPont De Nemours & Co. .............. 1,066,438
----------
2,010,838
----------
Food & Kindred Products - 2.6%
18,600 Hershey Foods, Corp. ...................... 978,825
26,500 PepsiCo, Inc. ............................. 978,844
----------
1,957,669
----------
Machinery & Computer Equipment - 7.1%
36,900 3Com Corp. ................................ 964,013
112,900 Cabletron Systems, Inc. ................... 1,065,494
13,200 Hewlett-Packard Co. ....................... 1,041,150
20,900 Seagate Technology, Inc. .................. 582,588
138,400 Silicon Graphics, Inc. .................... 1,764,600
----------
5,417,845
----------
Miscellaneous Manufacturing - 0.9%
27,000 Mattel, Inc. .............................. 698,625
----------
Petroleum Refining - 3.8%
15,000 Atlantic Richfield Co. .................... 1,259,063
84,900 Lyondell Petrochemical Co. ................ 1,655,550
----------
2,914,613
----------
Primary Metal - 1.5%
18,000 Aluminum Company of America ............... 1,120,500
----------
Primary Smelting - 1.2%
14,400 Phelps Dodge Corp. ........................ 910,800
----------
</TABLE>
17
<PAGE>
CRABBE HUSON MANAGED INCOME & EQUITY FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- ------------- -------------------------------------------------------- ----------
COMMON STOCKS - (continued)
---------------------------
MANUFACTURING - (continued)
Stone, Clay, Glass & Concrete - 1.0%
<S> <C> <C>
24,800 Owens-Illinois Inc.(a) ................................. $ 719,199
---------
Transportation Equipment - 2.8%
25,100 Lockheed Martin Corp. .................................. 1,080,869
16,600 Northrop Grumman Corp. ................................. 1,061,363
---------
2,142,232
---------
MINING & ENERGY - 10.5%
Metal Mining - 1.1%
54,500 Freeport-McMoRan Copper & Gold, Inc., Class B .......... 834,530
---------
Oil & Gas Extraction - 2.5%
25,500 Burlington Resources, Inc. ............................. 1,174,594
51,500 Union Pacific Resources Group, Inc. .................... 721,000
---------
1,895,594
---------
Oil & Gas Field Services - 6.9%
33,300 Global Marine, Inc.(a) ................................. 495,338
58,800 Nabors Industries, Inc.(a) ............................. 1,209,075
43,500 McDermott International, Inc. .......................... 1,261,500
21,900 Smith International, Inc. .............................. 982,763
20,300 Schlumberger Ltd. ...................................... 1,296,663
---------
5,245,339
---------
RETAIL TRADE - 4.3%
Food Stores - 2.0%
89,800 General Nutrition Companies, Inc.(a) ................... 1,487,312
---------
General Merchandise Stores - 2.3%
37,500 Federated Department Stores, Inc. ...................... 1,750,780
---------
SERVICES - 9.6%
Computer Software - 1.2%
15,000 Adobe Systems, Inc. .................................... 950,624
---------
Health Services - 5.6%
70,800 Healthsouth Corp.(a) ................................... 951,375
62,200 Health Management Associates, Inc.(a) .................. 956,250
24,600 United Healthcare Corp. ................................ 1,380,675
39,800 Tenet Healthcare Corp.(a) .............................. 940,275
---------
4,228,575
---------
Personal Services - 2.8%
39,400 Deluxe Corporation ..................................... 1,364,225
39,200 Stewart Enterprises, Inc. .............................. 779,100
---------
2,143,325
---------
</TABLE>
18
<PAGE>
CRABBE HUSON MANAGED INCOME & EQUITY FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- ------------- -------------------------------------------------------- ----------
COMMON STOCKS - (continued)
---------------------------
<S> <C> <C>
TRANSPORTATION, COMMUNICATION
ELECTRIC, GAS & SANITATION SERVICES - 4.3%
Air Transportation - 0.3%
7,800 Northwest Airlines Corp., Class A(a) .......... $ 265,687
----------
Gas Services - 1.9%
15,400 Columbia Energy Group ......................... 740,163
19,100 Sonat, Inc. ................................... 682,825
----------
1,422,988
----------
Telecommunication - 2.1%
19,550 MediaOne Group(a) ............................. 1,594,546
----------
Total Common Stock
(cost of $41,533,890) 46,866,378
----------
Par CORPORATE FIXED INCOME BONDS - 19.3%
- ---------------- ------------------------------------
FINANCE, INSURANCE & REAL ESTATE - 6.6%
Depository Institutions - 0.8%
$550,000 J.P. Morgan & Co., Inc.,
7.625% 9/15/04 ................................ 587,422
----------
Insurance Carriers - 1.3%
400,00 Conseco, Inc., 7.875% 12/15/00 ................ 406,236
550,000 Lincoln National Corp.,
6.500% 3/15/08 ................................ 546,458
----------
952,694
----------
Nondepository Credit Institutions - 3.3%
250,000 American Express Credit Corp.,
6.500% 8/1/00 ................................. 252,973
550,000 Ford Motor Credit Co.,
6.250% 11/8/00 ................................ 555,352
500,000 General Motors Acceptance Corp.:
8.000% 10/01/99 ............................... 505,570
655,000 9.000% 10/15/02 .............................. 716,668
525,000 Household Finance Corp.,
6.000% 5/8/00 ................................. 526,181
----------
2,556,744
----------
Security Brokers & Dealers - 1.2%
550,000 Bear Stearns Cos., Inc.,
6.875% 10/01/05 .............................. 559,966
350,000 Merrill Lynch & Co., Inc.,
6.020% 5/11/01 ............................... 351,628
----------
911,594
----------
</TABLE>
19
<PAGE>
CRABBE HUSON MANAGED INCOME & EQUITY FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Par Value
- --------- ------------------------------------- -----------
CORPORATE FIXED INCOME BONDS - (continued)
------------------------------------------
MANUFACTURING - 6.1%
Chemicals & Allied Products - 1.2%
<S> <C> <C>
$ 550,000 Eli Lilly & Co.,
8.375% 12/01/06 ..................... $ 627,968
300,000 Upjohn Co.,
5.875% 4/15/00 ...................... 301,257
----------
929,225
----------
Fabricated Metal - 0.7%
550,000 Snap-on, Inc.,
6.625% 10/01/05 ..................... 552,860
----------
Food & Kindred Products - 1.3%
550,000 Anheuser Busch Cos., Inc.,
7.000% 9/01/05 ...................... 563,349
450,000 PepsiCo, Inc.,
5.875% 6/01/00 ...................... 452,331
---------
1,015,680
---------
Machinery & Computer Equipment - 1.6%
600,000 International Business Machines Corp.:
7.250% 11/01/02 ..................... 626,826
540,000 5.945% 5/14/01 ...................... 543,170
----------
1,169,996
----------
Rubber & Plastic - 0.4%
300,000 Premark International, Inc.,
6.875% 11/15/08 ..................... 295,059
----------
Stone, Clay, Glass & Concrete - 0.9%
650,000 Owens-Illinois, Inc.,
7.350% 5/15/08 ...................... 640,933
----------
RETAIL TRADE - 0.7%
Food Stores
550,000 Kroger Co.,
7.000% 5/01/18 ...................... 544,715
----------
TRANSPORTATION, COMMUNICATION,
ELECTRIC, GAS & SANITATION SERVICES - 5.9%
Cable - 0.3%
200,000 Jones Intercable, Inc.,
10.500% 3/01/08 ..................... 219,000
----------
Electric Services - 0.9%
700,000 PacifiCorp,
6.375% 5/15/08 ...................... 700,434
----------
</TABLE>
20
<PAGE>
CRABBE HUSON MANAGED INCOME & EQUITY FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Par Value
- ---------- ----------------------------------------- ----------
<S> <C> <C>
CORPORATE FIXED INCOME BONDS - (continued)
------------------------------------------
TRANSPORTATION, COMMUNICATION,
ELECTRIC, GAS & SANITATION SERVICES - (continued)
Sanitary Services - 0.8%
$ 600,000 WMX Technologies, Inc.,
6.700% 5/01/01 ......................... $ 608,244
----------
Telecommunication - 3.9%
500,000 AT&T Corp.,
7.750% 3/01/07 ......................... 549,495
650,000 CBS Corp.,
7.150% 5/20/05 ......................... 666,348
550,000 GTE South, Inc.,
6.000% 2/15/08 ......................... 540,194
550,000 SBC Communications, Inc.,
6.250% 3/01/05 ......................... 555,126
660,000 US West Communications,
6.625% 9/15/05 ......................... 676,262
----------
2,987,425
----------
Total Corporate Fixed Income Bonds
(cost of $14,387,383) 14,672,025
----------
US GOVERNMENT AGENCIES & OBLIGATIONS - 15.4%
--------------------------------------------
GOVERNMENT AGENCIES - 13.0%
404,628 Federal Home Loan Mortgage Corp.:
24,455 9.250% 11/01/16 ........................ 26,114
9.000% 4/01/17 ......................... 428,966
851,114 8.000% 6/01/26 ......................... 895,797
643,075 7.500% 9/01/25 ......................... 668,796
2,139,258 7.000% 11/01/25 ........................ 2,194,065
1,000,000 5.850% 2/21/06 ......................... 1,004,370
----------
5,218,108
----------
1,200,000 Federal National Mortgage Association,
8.250% 12/18/00 ........................ 1,253,064
----------
829,805 Government National Mortgage Association:
7.000% 12/15/27 ........................ 841,986
1,890,444 7.000% 06/15/28 ........................ 1,918,196
</TABLE>
21
<PAGE>
CRABBE HUSON MANAGED INCOME & EQUITY FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Par Value
- ------------- -------------------------------------------------------- ----------
US GOVERNMENT AGENCIES & OBLIGATIONS - (continued)
--------------------------------------------------
<S> <C> <C>
GOVERNMENT AGENCIES - (continued)
$ 662,917 Government National Mortgage Association
6.500% 11/15/28 ........................................... $ 658,562
------------
3,418,744
------------
US GOVERNMENT OBLIGATIONS - 2.4%
U.S. Treasury Bonds:
15,000 5.500% 8/15/28 ........................................... 14,295
125,000 6.375% 8/15/27 ........................................... 133,496
140,000 6.625% 2/15/27 ........................................... 153,978
1,010,000 6.750% 8/15/26 ........................................... 1,125,988
U.S. Treasury Notes:
330,000 6.500% 11/15/26 .......................................... 357,123
15,000 4.750% 2/15/04 ........................................... 14,705
------------
1,799,585
------------
Total Government Obligations
(cost of $11,313,643) 11,689,501
------------
ASSET BACKED SECURITIES - 0.7%
------------------------------
500,000 Green Tree Financial Corp.,
Series 1997-7, Class A-5,
6.540% 7/15/19 (cost of $499,874) ........................ 504,020
------------
Total Investments
(cost of $67,734,790)(b) 73,731,924
------------
SHORT-TERM OBLIGATIONS - 8.2%
-----------------------------
$1,647,000 Repurchase agreement with ABN AMRO Chicago Corp.,
dated 04/30/99, due 05/03/99 at 4.870%, collateralized by
a U.S. Treasury bond with a maturity of 2002, market
value $1,668,377 (repurchase proceeds $1,647,868).......... 1,647,000
4,554,161 Navigator Securities Lending Trust-Prime Portfolio
4.900%(c) ................................................. 4,554,161
------------
Total Short-Term Obligations 6,201,161
------------
OTHER ASSETS & LIABILITIES, NET - (5.3)% (4,050,265)
------------
NET ASSETS - 100.0% $ 75,882,820
============
</TABLE>
(a) Non-income producing.
(b) Cost for federal income tax purposes is the same.
(c) Investment of collateral received for securities loaned in Navigator
Securities Lending Trust-Prime Portfolio. As of April 30, 1999, the market
value of the securities on loan is $4,399,888.
22
<PAGE>
CRABBE HUSON REAL ESTATE INVESTMENT FUND (CHREX)
Improvement in REIT sector helped Fund outperform benchmark
In 1998, real estate investment trusts (REITs) experienced one of the most
severe corrections in their history. However, over the past six months, the
investment environment for REITs has improved markedly, as investors' concerns
about a global recession and overdevelopment have been allayed by numerous
signs of economic strength and rational building levels. Furthermore, REITs
also have benefited from the resurgence of small-cap stocks and cyclicals in
recent months. For the six-month period ended April 30, 1999, Crabbe Huson Real
Estate Investment Fund generated a total return of 8.69% for Class A shares,
based on net asset value. The Morgan Stanley REIT Index returned 4.15% for the
same period.(1)
Our outperformance of the Morgan Stanley REIT Index resulted in part from our
barbell strategy, which consisted of overweighting large, liquid REIT market
leaders such as Equity Office Properties (5.1% of total net assets) and Public
Storage (5.2%), as well as higher yielding, "turnaround" REITs such as
Meditrust (4.0%) and Healthcare Realty (3.2%). As contrarians, we had a
relatively small exposure to the market leaders during the first part of 1998.
This strategy was based on our belief that these stocks had been overbought and
had significant downside risk should the market change course. This strategy
worked well when the Asian and Russian currency crises struck, fears of a
global recession escalated and investors fled the real estate market. As we
anticipated, the large-cap, highly liquid REITs were among the first to
decline. By autumn 1998, we were buying these same stocks because they were
inexpensive, and we anticipated that the large REITs would lead the advance
when capital re-entered the oversold real estate sector.
Out-of-favor REITs represent opportunity
Mid- and small-cap REITs have not recovered to the extent of the larger-cap
REITs. However, our analysis indicates that many of these stocks offer strong
cash flows, adequate dividend coverage and solid growth rates. Although REIT
share prices fell last year, cash flow per share increased and many companies
raised their dividends. The average dividend yield on REITs now exceeds 8.0%,
well above the average 1.2% yield on the S&P 500. This presents an exceptional
opportunity for yield-oriented investors, and we believe higher yielding REITs
will generate solid returns once broader confidence returns to the real estate
market.
- ----------------------
(1)The Morgan Stanley REIT Index is an unmanaged index that tracks the
performance of real estate investment trust securities. Unlike mutual funds,
indexes are not investments, do not incur fees or charges and are not
professionally managed. It is not possible to invest directly in an index.
23
<PAGE>
CRABBE HUSON REAL ESTATE INVESTMENT FUND
Continued economic strength a positive for REIT stocks
Looking ahead, we are encouraged by increasingly favorable trends in the real
estate market. A stronger economy along with rising occupancies and rents
should encourage increased capital flow into REITs from real estate funds and
value-oriented funds. If this occurs, we believe that share prices of REITs are
primed to better reflect the value of their underlying assets.
/s/ John E. Maack Jr., CFA /s/ Michael B. Stokes
John E. Maack Jr., CFA Michael B. Stokes
Crabbe Huson Real Estate Investment Fund
Average Annual Total Returns
As of April 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Class A Shares Class B Shares Class C Shares Class Z Shares
NAV POP NAV w/CDSC NAV w/CDSC
Inception Date: 4/1/1994 1/27/1999 1/27/1999 1/29/1999
<S> <C> <C> <C> <C> <C> <C> <C>
1 Year -8.63% -12.97% -8.84% -13.05% -8.84% -9.68% -8.62%
5 Years 9.66% 8.60% 9.61% 9.33% 9.61% 9.61% 9.66%
Life of Fund 9.94% 8.90% 9.89% 9.62% 9.89% 9.89% 9.95%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
Past performance cannot predict future results. Returns and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. Net asset value (NAV) returns do not
include initial sales charges or contingent deferred sales charges (CDSCs).
Public offering price (POP) returns include the maximum sales charge of 4.75%
for Class A shares. The CDSC returns reflect the maximum applicable charges of
5% for one year, 2% for five years and 2% for Life of Fund for Class B shares;
and 1% for one year for Class C shares. Class Z shares (institutional shares)
are also offered without sales charges or contingent deferred sales charges.
Performance results reflect any voluntary waivers or reimbursement of Fund
expenses by the Advisor or its affiliates. Absent these waivers or
reimbursement arrangements, performance results would have been lower.
Class B, Class C and Class Z share (newer class shares) performance information
includes returns of the Fund's Class A shares (the oldest existing fund class)
for periods prior to the inception of the newer class shares. These Class A
share returns are not restated to reflect any expense differential (e.g., Rule
12b-1 fees) between Class A shares and the newer class shares. Had the expense
differential been reflected, the returns for periods prior to the inception of
Class B and Class C shares would have been lower.
24
<PAGE>
CRABBE HUSON REAL ESTATE INVESTMENT FUND
INVESTMENT PORTFOLIO (Unaudited)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- ----------- ----------
<S> <C> <C>
COMMON STOCKS - 95.2%
---------------------
FINANCE, INSURANCE & REAL ESTATE - 95.2%
Apartments - 10.3%
12,900 Archstone Communities Trust .................... $ 292,669
17,217 Camden Property Trust .......................... 464,859
10,575 Post Properties, Inc. .......................... 419,034
13,500 Summit Properties, Inc. ........................ 246,575
---------
1,423,137
---------
Diversified - 13.4%
14,400 Cadillac Fairview Corporation.(a) .............. 288,900
9,500 Castle & Cooke Inc.(a) ......................... 140,125
20,000 Catellus Development Corp.(a) .................. 307,500
15,000 Glenborough Realty Trust Inc. .................. 257,813
45,000 Meditrust Companies. ........................... 559,688
7,500 Spieker Properties, Inc. ....................... 294,375
---------
1,848,401
---------
Financial - 2.2%
7,900 Chicago Title Corp. ............................ 308,594
---------
Healthcare - 5.9%
25,100 Brookdale Living Communities, Inc.(a) .......... 379,638
20,325 Healthcare Realty Trust, Inc. .................. 443,339
---------
822,977
---------
Industrial - 6.6%
15,000 AMB Property Corp. ............................. 330,000
12,500 First Industrial Realty Trust, Inc. ............ 335,938
12,000 Prologis Trust ................................. 252,000
---------
917,938
---------
Lodging - 10.7%
17,200 Felcor Lodging Trust Inc.(a) ................... 411,725
23,000 Host Marriott Corp. ............................ 306,188
24,149 Patriot American Hospitality, Inc. ............. 122,254
45,900 Silverleaf Resorts, Inc. ....................... 364,331
30,000 Sunstone Hotel Investors, Inc. ................. 275,625
---------
1,480,123
---------
Manufactured Homes - 6.3%
28,400 Asset Investors Corp. .......................... 410,025
58,000 Commercial Assets, Inc. ........................ 304,500
6,000 Manufactured Home Communities, Inc. ............ 151,875
---------
866,400
---------
</TABLE>
25
<PAGE>
CRABBE HUSON REAL ESTATE INVESTMENT FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- -------- ----------------------------------------------------------- -----------
COMMON STOCKS - (continued)
---------------------------
FINANCE, INSURANCE & REAL ESTATE - (continued)
Office - 16.9%
<S> <C> <C>
23,500 Brandywine Realty Trust .................................... $ 443,563
10,500 Crescent Real Estate Equities Co. .......................... 234,938
25,400 Equity Office Properties Trust ............................. 700,088
14,100 Prentiss Properties Trust .................................. 304,913
12,700 Tower Realty Trust, Inc. ................................... 260,350
18,000 TrizecHahn Corp. ........................................... 382,500
-----------
2,326,352
-----------
Regional Malls - 6.2%
4,000 General Growth Properties .................................. 147,250
18,650 Gilmcher Realty Trust ...................................... 315,884
13,640 Simon Property Group, Inc. ................................. 391,298
-----------
854,432
-----------
Storage - 5.2%
25,700 Public Storage, Inc. ....................................... 716,388
-----------
Strip Malls - 4.7%
16,200 Kranzco Realty Trust. ...................................... 226,800
30,000 Philips International Realty Corp. ......................... 431,250
-----------
658,050
-----------
Triple Net Lease - 6.8%
20,000 Capital Automotive REIT .................................... 260,000
11,000 Franchise Finance Corp. of America ......................... 255,063
21,937 Prison Realty Corp. ........................................ 427,772
-----------
942,835
-----------
Total Investments
(cost of $13,187,800)(b) 13,165,627
-----------
Par SHORT-TERM OBLIGATIONS - 9.1%
- -------- -----------------------------
$276,000 Repurchase agreement with ABN AMRO Chicago Corp.,
dated 04/30/99, due 05/03/99 at 4.870%, collateralized by
a U.S. Treasury bond with a maturity of 2002, market
value $279,582 (repurchase proceeds $276,512) .............. 276,000
987,000 Navigator Securities Lending Trust-Prime Portfolio 4.900%(c) 987,000
-----------
Total Short-term obligations 1,263,000
-----------
OTHER ASSETS & LIABILITIES, NET - (4.3)% (591,546)
-----------
NET ASSETS - 100.0% $13,837,081
===========
</TABLE>
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing.
(b) Cost for federal income tax purposes is the same.
(c) Investment of collateral received for securities loaned in Navigator
Securities Lending Trust-Prime Portfolio. As of April 30, 1999, the market
value of the securities on loan is $956,244.
26
<PAGE>
CRABBE HUSON SMALL CAP FUND (CHSCX)
Small cap stocks underperformed market early in period
Going into the period, investors continued to avoid all but a short list of
small-cap stocks. Of the 2000 small stocks in the Russell 2000 Index, only
about 25% generated positive returns. Most of the small-cap market leaders were
concentrated in high-flying Internet stocks. As contrarian managers, we did not
invest the Small Cap Fund's assets in such momentum-driven stocks. Instead, we
purchased stocks of out-of-favor industries that we believed offered
substantial earnings power, represented essential industrial components, and
were priced well below their fundamental value. For example, many of the Fund's
investments in technology manufacturing (20% of net assets), energy (10%) and
basic materials (13%) appeared significantly undervalued by all historic
measurements. While these stocks performed poorly during the first few months
of the period, we remained satisfied that there were no fundamental reasons for
long-term price weakness.
For the six-month period ended April 30, 1999, Crabbe Huson Small Cap Fund
generated a total return of 1.50% for Class A shares, based on net asset value.
The Russell 2000 Index generated a six-month return of 15.16%.(1) While the
portfolio's return fell short of the Index over the six months, the Fund's
holdings surpassed the benchmark during the final month of the period when
investor sentiment shifted toward reasonably valued cyclical stocks. For the
month of April, the Fund returned 11.35% for Class A shares at net asset value,
versus 8.96% for the Russell 2000.
Shift in market sentiment favorable for Fund
During the first quarter of 1999, investor psychology underwent a significant
shift. Better-than-expected economic reports from many corners of the
world -- the United States, Asia and Brazil among them -- boosted investors'
confidence in the market. Commodity prices began to improve, and oil rose from
$12 to $19 per barrel. Investors once again began to examine stocks'
fundamentals, including their earnings power and the potential performance
leverage resulting from a market shift into these undervalued securities. As a
result, a number of economically sensitive market sectors began to advance,
including energy and basic materials. These conditions were favorable for the
Fund, and many of the portfolio's holdings appreciated significantly during the
last month of the period.
Small cap stocks should benefit from continued economic strength
The turnaround in global economies as well as non-inflationary growth in the
U.S. set the stage for an impressive small-stock rally in March and April of
1999. Looking ahead, we believe that small-cap market participation should
continue as long as the economy remains strong and earnings remain stable. The
Fund's performance already
- ----------------------
(1)The Russell 2000 Index is an unmanaged index that tracks the performance of
small-capitalization U.S. stocks. Unlike mutual funds, indexes are not
investments, do not incur fees or charges and are not professionally managed.
It is not possible to invest directly in an index.
27
<PAGE>
CRABBE HUSON SMALL CAP FUND
has begun to reflect the market's renewed emphasis on stock selection rather
than market momentum. We believe the Fund has the potential to benefit from
what we view as pent-up market demand for reasonably priced, economically
/s/ James E. Crabbe /s/ John W. Johnson, CFA
James E. Crabbe John W. Johnson, CFA
Crabbe Huson Small Cap Fund Average Annual Total Returns
As of April 30, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
Class A Shares Class I Shares
NAV POP
Inception Date: 2/16/1996 10/10/1996
<S> <C> <C> <C>
1 Year -37.87% -41.44% -37.67%
Life of Fund -0.72% -2.54% -0.43%
- -------------------------------------------------------------------
</TABLE>
Past performance cannot predict future results. Returns and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. Net asset value (NAV) returns do not
include initial sales charges or contingent deferred sales charges (CDSCs).
Public offering price (POP) returns include the maximum sales charge of 5.75%
for Class A shares. Class I shares (institutional shares) do not include sales
charges or contingent deferred sales charges.
Performance results reflect any voluntary waivers or reimbursement of Fund
expenses by the Advisor or its affiliates. Absent these waivers or
reimbursement arrangements, performance results would have been lower.
Class I share performance information includes returns of the Fund's Class A
shares for periods prior to its inception date. These Class A share returns are
not restated to reflect any expense differential (e.g., Rule 12b-1 fees)
between Class A shares and Class I shares.
28
<PAGE>
CRABBE HUSON SMALL CAP FUND
INVESTMENT PORTFOLIO (Unaudited)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------------------------------------------- -----------
<S> <C> <C>
COMMON STOCKS - 99.1%
---------------------
FINANCE, INSURANCE & REAL ESTATE - 11.7%
Insurance Carriers - 5.8%
280,000 Mid Atlantic Medical Services, Inc.(a) .......... $ 2,555,000
61,400 Risk Capital Holdings, Inc.(a) .................. 890,300
-----------
3,445,300
-----------
Nondepository Credit Institute - 5.9%
511,500 Arcadia Financial Ltd.(a) ....................... 3,484,594
-----------
MANUFACTURING - 40.0%
Apparel - 5.9%
250,900 Oakley, Inc.(a) ................................. 1,724,938
205,000 Phillips-Van Heusen ............................. 1,793,750
-----------
3,518,688
-----------
Chemicals & Allied Products - 1.0%
217,700 Interneuron Pharmaceuticals, Inc.(a) ............ 571,463
-----------
Electrical Industrial Equipment - 3.2%
142,400 Actel Corp.(a) .................................. 1,922,400
-----------
Electronic & Electrical Equipment - 8.4%
110,000 Checkpoint Systems, Inc. ........................ 1,079,375
213,000 PictureTel Corporation(a) ....................... 1,757,250
177,900 Sensormatic Electronics Corp. ................... 2,134,795
-----------
4,971,420
-----------
Electronic Components - 1.1%
223,100 HMT Technology Corporation(a) ................... 641,413
-----------
Machinery & Computer Equipment - 5.2%
255,300 Auspex Systems, Inc.(a) ......................... 1,819,013
284,400 Mylex Corp.,(a) ................................. 1,297,575
-----------
3,116,588
-----------
Measuring & Analyzing Instruments - 1.9%
197,300 Flanders Corporation(a) ......................... 530,244
86,700 Input/Output, Inc.(a) ........................... 628,575
-----------
1,158,819
-----------
Paper Products - 0.8%
37,100 Longview Fibre Co. .............................. 482,300
-----------
Primary Metal - 10.0%
191,800 Century Aluminum Company ........................ 1,534,400
112,300 Huntco Inc. ..................................... 435,163
197,200 Ispat International NV .......................... 2,575,925
87,200 Oregon Steel Mills, Inc. ........................ 1,427,900
-----------
5,973,388
-----------
</TABLE>
29
<PAGE>
CRABBE HUSON SMALL CAP FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- ------------- -------------------------------------------------- -----------
COMMON STOCKS - (continued)
---------------------------
<S> <C> <C>
MANUFACTURING - (continued)
Transportation Equipment - 2.5%
96,000 Wabash National Corporation ..................... $ 1,506,000
-----------
MINING & ENERGY - 9.8%
Nonmetallic, Except Fuels - 0.7%
2,533,200 Tahera Corp.(a) ................................. 416,988
-----------
Oil & Gas Extraction - 5.8%
205,100 Forest Oil Corp.(a) ............................. 2,051,000
399,800 Grey Wolf, Inc.(a) .............................. 949,525
31,900 Tom Brown, Inc.(a) .............................. 476,506
-----------
3,477,031
-----------
Oil & Gas Field Services - 3.3%
55,000 Marine Drilling Companies, Inc.(a) .............. 945,313
63,300 Nuevo Energy Company(a) ......................... 1,004,888
-----------
1,950,201
-----------
RETAIL TRADE - 3.0%
Apparel & Accessory Stores - 2.3%
121,900 The Cato Corporation ............................ 1,371,375
-----------
Home Furnishings & Equipment - 0.7%
58,300 The Bombay Company, Inc.(a) ..................... 371,663
-----------
SERVICES - 21.2%
Business Services - 6.9%
259,434 Safety-Kleen Corp.(a) ........................... 4,118,515
-----------
Computer Related Services - 6.9%
149,200 Mentor Graphics Corporation(a) .................. 1,809,050
154,000 Sequent Computer Systems, Inc.(a) ............... 1,684,375
207,000 Vysis, Inc.(a) .................................. 621,000
-----------
4,114,425
-----------
Computer Software - 2.6%
119,700 CCC Information Services Group Inc.(a) .......... 1,556,100
-----------
Health Services - 4.8%
206,000 Coventry Health Care Inc.(a) .................... 1,892,625
119,400 Integrated Health Services, Inc. ................ 574,613
222,700 PhyMatrix Corp.(a) .............................. 354,928
-----------
2,822,166
-----------
TRANSPORTATION, COMMUNICATION
GAS, & SANITATION SERVICES - 9.7%
Communications - 1.4%
199,500 Precision Response Corp.(a) ..................... 835,406
-----------
</TABLE>
30
<PAGE>
CRABBE HUSON SMALL CAP FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- ------------- -------------------------------------------------------- ----------
COMMON STOCKS - (continued)
---------------------------
<S> <C> <C>
TRANSPORTATION, COMMUNICATION
GAS, & SANITATION SERVICES - (continued)
Gas Services - 2.2%
168,900 KCS Energy, Inc. ........................................ $ 232,238
124,388 Western Gas Resources, Inc. ............................. 1,088,395
-----------
1,320,633
-----------
Motor Freight & Warehousing - 6.1%
56,100 J.B. Hunt Transport Services, Inc. ...................... 1,167,581
136,900 Yellow Corp. ............................................ 2,429,975
-----------
3,597,556
-----------
WHOLESALE TRADE - 3.7%
Nondurable Goods
252,600 Fleming Co., Inc. ....................................... 2,210,250
-----------
Total Investments - (cost of $94,502,097)(b) $58,954,682
-----------
Par SHORT-TERM OBLIGATIONS - 17.1%
- ----------- ------------------------------
$10,204,532 Navigator Securities Lending Trust-Prime
Portfolio 4.900% (c) .................................... 10,204,532
-----------
OTHER ASSETS & LIABILITIES, NET - (16.2)% (9,661,171)
-----------
NET ASSETS - 100.0% $59,498,043
===========
</TABLE>
(a) Non-income producing.
(b) Cost for federal income tax purposes is the same.
(c) Investment of collateral received for securities loaned in Navigator
Securities Lending Trust-Prime Portfolio. As of April 30, 1999, the market
value of the securities on loan is $9,217,636.
31
<PAGE>
THE CRABBE HUSON SPECIAL FUND, INC. (CHSPX)
Fund maintained contrarian focus
Throughout most of the period, a small number of select high-growth stocks
drove the Russell 2000 Index while most small-cap stocks continued to languish.
As contrarian managers, we had none of the Fund's assets invested in the
momentum-driven Internet and related technology stocks that comprised the short
list of market leaders. Instead, we took advantage of some of the lowest
small-cap stock prices since the end of World War II and concentrated our
investments in stocks of out-of-favor industries such as energy (21% of net
assets), basic materials (21%) and technology manufacturing (12%). Although
these stocks lagged the Index well into the new year, we remained convinced
that there was no permanent reason for long-term underperformance.
For the six-month period ended April 30, 1999, The Crabbe Huson Special Fund
generated a total return of 7.65% for Class A shares, based on net asset value.
The Russell 2000 Index generated a return of 15.16% for the same period.(1)
While the Fund lagged the Index over the six months, the portfolio's holdings
significantly outpaced the Russell 2000 during the last month of the period when
investors shifted their attention to the earnings power of the cyclical and
value-oriented stocks currently emphasized by our investment strategy. In the
month of April, the Fund returned 21.79% versus 8.96% for the Index.
Change in market sentiment helped boost returns late in period
As we progressed through the first quarter of 1999, we noted the presence of
several catalysts that ultimately began to change investor sentiment. Domestic
economic reports were better than expected, and inflation remained in check.
Brazil's currency devaluation failed to lead to a widespread recession. Asia's
troubled economies appeared to be stabilizing and selectively turning up.
Finally, signs of global economic strength translated into recovering commodity
prices as oil, agricultural and metal prices rose from depressed levels. An
agreement in late March by the Organization of Petroleum Exporting Countries
(OPEC) and non-OPEC oil producers to cut production played a key part in
boosting oil prices. As investor sentiment shifted at the end of March, the
market's attention refocused on corporate earnings. This reorientation
stimulated a run-up in the stock prices of economically sensitive industry
sectors such as energy and chemicals. The portfolio was well positioned to
benefit from this trend, and its investments in stocks like Snyder Oil (7.1% of
total net assets), Century Aluminum (2.1%) and Actel Corp. (1.0%) generated
substantial price gains during the final month of the period.
- ----------------------
(1)The Russell 2000 Index is an unmanaged index that tracks the performance of
small-capitalization U.S. stocks. Unlike mutual funds, indexes are not
investments, do not incur fees or charges and are not professionally managed.
It is not possible to invest directly in an index.
32
<PAGE>
THE CRABBE HUSON SPECIAL FUND, INC.
Recovery of small-cap stocks hinging on continued economic strength
We believe that recovering global economic activity along with a strong
domestic economy have provided a much-needed catalyst for the small-cap market.
Looking ahead, we also believe the recovery of small-cap stocks should be
sustainable as long as the business cycle remains stable. The Fund's
performance during the last part of the period reflects these trends, with some
of its investments doubling from their lows. That said, small stocks remain
attractively valued by almost any measure, which could support potential price
gains. These conditions favor contrarian strategies like ours and we believe
the Fund is well positioned in this environment
/s/ James E. Crabbe /s/ John W. Johnson, CFA
James E. Crabbe John W. Johnson, CFA
The Crabbe Huson Special Fund Average Annual Total Returns
As of April 30, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------
Class A Shares
NAV POP
Inception Date: 4/9/1987
<S> <C> <C>
1 Year -36.81% -40.44%
5 Years -2.10% -3.26%
10 Years 7.69% 7.06%
- -------------------------------------------------
</TABLE>
Past performance cannot predict future results. Returns and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. Net asset value (NAV) returns do not
include initial sales charges or contingent deferred sales charges (CDSCs).
Public offering price (POP) returns include the maximum sales charge of 5.75%.
Performance results reflect any voluntary waivers or reimbursement of Fund
expenses by the Advisor or its affiliates. Absent these waivers or
reimbursement arrangements, performance results would have been lower.
33
<PAGE>
THE CRABBE HUSON SPECIAL FUND, INC.
INVESTMENT PORTFOLIO (Unaudited)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- ------------- ------------------------------------------------ ---------
COMMON STOCKS - 106.1%
----------------------
<S> <C> <C>
FINANCE, INSURANCE & REAL ESTATE - 15.9%
Insurance Carriers - 8.6%
346,800 Mid Atlantic Medical Services, Inc. ........... $3,164,550
46,240 PICO Holdings, Inc. ........................... 901,680
189,700 Risk Capital Holdings, Inc.(a) ................ 2,750,650
----------
6,816,880
----------
Nondepository Credit Institutions - 7.3%
854,900 Arcadia Financial Ltd. ....................... 5,824,006
----------
MANUFACTURING - 35.0%
Apparel - 5.3%
314,600 Oakley, Inc.(a) .............................. 2,162,875
236,700 Phillips-Van Heusen .......................... 2,071,125
----------
4,234,000
----------
Chemicals & Allied Products - 0.8%
253,500 Interneuron Pharmaceuticals, Inc. ............ 665,438
----------
Electrical Industrial Equipment - 1.0%
59,500 Actel Corp. .................................. 803,250
----------
Electronic & Electrical Equipment - 5.7%
119,900 Checkpoint Systems, Inc. ..................... 1,176,519
160,900 PictureTel Corporation(a) .................... 1,327,425
167,000 Sensormatic Electronics Corp. ................ 2,004,000
----------
4,507,944
----------
Electronic Components - 0.7%
200,300 HMT Technology Corporation(a) ................ 575,863
----------
Paper Products - 6.3%
387,300 Longview Fibre Co. ........................... 5,034,900
----------
Primary Metal - 12.6%
206,900 Century Aluminum Company ..................... 1,655,200
57,600 Huntco Inc. .................................. 223,200
364,000 Ispat International NV ....................... 4,754,750
207,300 Oregon Steel Mills, Inc. ..................... 3,394,538
----------
10,027,688
----------
Transportation Equipment - 2.6%
131,100 Wabash National Corp. ........................ 2,056,631
----------
MINING & ENERGY - 22.6%
Nonmetallic, Except Fuels - 1.6%
7,527,400 Tahera Corp.(a) .............................. 1,239,079
----------
Oil & Gas Extraction - 16.1%
492,500 Forest Oil Corp.(a) ......................... 4,925,000
924,900 Grey Wolf, Inc.(a) .......................... 2,196,638
311,300 Snyder Oil Corp. ............................ 5,661,769
----------
12,783,407
----------
</TABLE>
34
<PAGE>
THE CRABBE HUSON SPECIAL FUND, INC.
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Shares Value
- ---------- ------------------------------------------- ------------
COMMON STOCKS - (continued)
---------------------------
<S> <C> <C>
MINING & ENERGY - (continued)
Oil & Gas Field Services - 4.9%
124,900 Marine Drilling Co., Inc.(a) ................. $ 2,146,719
109,500 Nuevo Energy Co., Inc.(a) .................... 1,738,313
------------
3,885,032
------------
RETAIL TRADE - 1.6%
Home Furnishings & Equipment
193,900 The Bombay Co., Inc. ......................... 1,236,113
------------
SERVICES - 20.9%
Business Services - 8.2%
411,900 Safety-Kleen Corp. ........................... 6,538,913
------------
Computer Related Services - 4.3%
105,500 Mentor Graphics Corp. ....................... 1,279,188
175,200 Sequent Computer Systems, Inc. .............. 1,916,250
61,500 Vysis, Inc. ................................. 184,500
------------
3,379,938
------------
Health Services - 8.4%
566,500 Coventry Health Care Inc. .................. 5,204,719
43,400 IDEXX Labs, Inc.(a) ........................ 981,925
73,200 Integrated Health Services, Inc.(a) ........ 352,275
62,800 PhyMatrix Corp. (a) ........................ 100,088
------------
6,639,007
------------
TRANSPORTATION, COMMUNICATION, ELECTRIC
GAS & SANITATION SERVICES - 5.8%
Gas Services - 0.1%
60,000 KCS Energy, Inc. ........................... 82,500
------------
Motor, Freight & Warehousing - 5.7%
60,400 J.B. Hunt Transport Services, Inc. ......... 1,257,075
182,600 Yellow Corp. ............................... 3,241,150
------------
4,498,225
------------
WHOLESALE TRADE - 4.3%
Nondurable Goods
387,000 Fleming Co., Inc. .......................... 3,386,250
------------
Total Common Stocks
(cost of $121,901,446)(b) 84,215,064
------------
OTHER ASSETS & LIABILITIES, NET - (6.1)% (4,877,767)
------------
NET ASSETS - 100.0% $ 79,337,297
============
</TABLE>
NOTES TO INVESTMENT PORTFOLIO:
(a) Non-income producing.
(b) Cost for federal tax purposes is the same.
35
<PAGE>
CRABBE HUSON CONTRARIAN INCOME FUND (CHINX)
Fund outperformed benchmark index during the period
For the six-month period ended April 30, 1999, Crabbe Huson Contrarian Income
Fund generated a total return of 1.00% for Class A shares, based on net asset
value. For the same period, the Lehman Brothers Government/Corporate Bond Index
returned -0.12%.(1)
Interest rate and credit risk strategies helped performance
The Fund outperformed its benchmark index through a combination of interest
rate and credit risk management. At the beginning of the period, bond market
enthusiasm was high. The Federal Reserve Board had reduced interest rates three
times in six weeks. Furthermore, global investors continued to flock to the
high credit quality and liquidity of Treasury securities, which further helped
support bond prices and keep yields down. However, our contrarian approach led
us to believe that interest rates were artificially low and that the bond
market was positioned to reverse direction. In response, we reduced the
portfolio's sensitivity to potentially rising rates by shortening the Fund's
average maturity from approximately nine years to six years. This strategy
worked well when interest rates rose by more than 50 basis points between
January and April.
We had similar success with our credit risk management strategy. Historically,
the credit quality of the portfolio's holdings has been very high. In fact, six
months ago we had approximately 95% of the Fund's assets invested in
higher-quality bonds rated "A" or better by a nationally recognized bond rating
agency. We decided to increase our holdings in the lower quality, high-yield
sector of the bond market. At that time, investors were still uncertain about
the outlook for the U.S. economy and were demanding very high yields for bonds
in this sector, which drove prices down to bargain levels. Since we believed
that such low prices were unwarranted, we aggressively added to our investments
in lower quality corporate bonds whose credit quality appeared sound. By the
end of 1998, we had increased our investment in this sector to approximately
30%. When prices of bonds in the high-yield sector rose over the second half of
the period, the Fund's high-yield holdings performed well, contributing
significantly to its performance.
36
<PAGE>
CRABBE HUSON CONTRARIAN INCOME FUND
Fund maintained consistent top performance
The Fund continued to perform well relative to its Lipper peer group.(1) As we
look further into 1999, we plan to continue employing our strategy of
shortening duration and seeking attractive lower quality bonds. Should current
market conditions prevail in the coming months, we believe the Fund is
/s/ Garth R. Nisbet, CFA /s/ Paul C. Rocheleau
Garth R. Nisbet, CFA Paul C. Rocheleau
- ----------------------
(1)Lipper, Inc., a widely respected data provider in the industry, calculates
an average total return for mutual funds with similar investment objectives as
the Fund. The total return calculated for the Lipper Corporate Debt Funds
A-Rated Category was 0.38% for the six months ended April 30, 1999. The Fund's
Class A shares were ranked in the second quartile for the six-month period (48
of 162), in the first quartile for the 1 year (1 out of 156 funds), in the first
quartile for the 5 years (12 out of 85 funds) and in the fourth quartile for 10
years (40 out of 42 funds). Rankings do not include sales charges. Performance
for different share classes will vary with fees associated with each class. Past
performance cannot predict future results.
Crabbe Huson Contrarian Income Fund Average Annual Total Returns
As of April 30, 1999
<TABLE>
<CAPTION>
- ---------------------------------------------------------------
Class A Shares Class I Shares
NAV POP
Inception Date: 1/31/1989 10/1/1998
<S> <C> <C> <C>
1 Year 8.22% 3.08% 8.67%
5 Years 8.03% 6.98% 8.12%
10 Years 7.65% 7.12% 7.69%
- ---------------------------------------------------------------
</TABLE>
Past performance cannot predict future results. Returns and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. Net asset value (NAV) returns do not
include initial sales charges or contingent deferred sales charges (CDSCs).
Public offering price (POP) returns include the maximum sales charge of 4.75%
for Class A shares. Class I shares (institutional shares) are offered without
sales charges or contingent deferred sales charges.
Performance results reflect any voluntary waivers or reimbursement of Fund
expenses by the Advisor of its affiliates. Absent these waivers or
reimbursement arrangements, performance results would have been lower.
Class I share performance information includes returns of the Fund's Class A
shares for periods prior to its inception date. These Class A share returns are
not restated to reflect any expense differential (e.g., Rule 12b-1 fees)
between Class A shares and Class I shares.
37
<PAGE>
CRABBE HUSON CONTRARIAN INCOME FUND
INVESTMENT PORTFOLIO (Unaudited)
April 30, 1999
<TABLE>
<CAPTION>
Par Bonds & Notes Value
- ----------- ----------------------------------------------------------------- -------
CORPORATE FIXED INCOME - 53.5%
------------------------------
<S> <C> <C>
FINANCE, INSURANCE & REAL ESTATE - 13.4%
Depository Institutions - 2.3%
$ 50,000 Citicorp, 6.375% 11/15/08 ....................................... $49,785
50,000 J.P. Morgan & Co., Inc., 7.625% 9/15/04 ......................... 53,402
-------
103,187
-------
Financial Services - 1.1%
50,000 Sears, Roebuck & Co. Acceptance Corp., 6.930% 11/15/02 .......... 51,469
-------
Insurance Carriers - 3.3%
50,000 American General Finance Corp., 6.200% 3/15/03 .................. 50,162
50,000 Conseco, Inc., 7.875% 12/15/00 .................................. 50,779
50,000 Lincoln National Corp., 6.500% 3/15/08 .......................... 49,678
-------
150,619
-------
Nondepository Credit Institutions - 4.5%
50,000 American Express Credit Corp., 6.500% 8/01/00 ................... 50,594
50,000 Ford Motor Credit Co., 6.250% 11/08/00 .......................... 50,487
50,000 General Motors Acceptance Corp., 9.000% 10/15/02 ................ 54,708
50,000 Household Finance Corp., 6.000% 5/08/00 ......................... 50,113
-------
205,902
-------
Security Brokers & Dealers - 2.2%
50,000 Bear Stearns Cos., Inc., 6.875% 10/01/05 ........................ 50,906
50,000 Merrill Lynch & Co., Inc., 6.020% 5/11/01 ....................... 50,232
-------
101,138
-------
MANUFACTURING - 11.7%
Chemicals & Allied Products - 3.5%
50,000 Eli Lilly & Co., 8.375% 12/01/06 ................................ 57,088
50,000 IMC Global, Inc., 7.400% 11/01/02 ............................... 51,084
50,000 Upjohn Co., 5.875% 4/15/00 ...................................... 50,210
-------
158,382
-------
Food & Kindred Products - 2.2%
50,000 Anheuser Busch Cos., Inc., 7.000% 9/01/05 ....................... 51,213
50,000 PepsiCo, Inc., 5.875% 6/01/00 ................................... 50,259
-------
101,472
-------
Machinery & Computer Equipment - 3.3%
International Business Machines Corp.:
50,000 7.250% 11/01/02 ................................................ 52,235
50,000 5.945% 5/14/01 ................................................. 50,293
50,000 Raytheon Co., 6.150% 11/01/08 ................................... 48,963
-------
151,491
-------
</TABLE>
38
<PAGE>
CRABBE HUSON CONTRARIAN INCOME FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Par Value
- --------- ------------------------------------------------------------ --------
CORPORATE FIXED INCOME - (continued)
------------------------------------
<S> <C> <C>
MANUFACTURING - (continued)
Rubber & Plastic - 1.1%
$50,000 Premark International, Inc., 6.875% 11/15/08 ............... $49,176
-------
Stone, Clay, Glass & Concrete - 1.6%
75,000 Owens-Illinois, Inc., 7.350% 5/15/08 ...................... 73,953
-------
MINING & ENERGY - 2.2%
Oil & Gas Extraction - 1.1%
50,000 Occidental Petroleum Corp., 6.750% 11/15/02 ............... 50,166
-------
Oil & Gas Field Services - 1.1%
50,000 Enron Corp., 6.725% 11/17/08 ............................. 49,469
-------
RETAIL TRADE - 6.8%
Food Stores - 3.3%
100,000 Kroger Co., 7.000% 5/01/18 ............................... 99,039
50,000 Safeway, Inc., 6.500% 11/15/08 ........................... 50,050
-------
149,089
-------
General Merchandise Stores - 3.5%
50,000 Kmart Corp., 7.700% 7/02/02 .............................. 49,544
50,000 Saks, Inc., 8.250% 11/15/08 .............................. 54,018
50,000 Wal-Mart Stores, Inc., 8.000% 9/15/06 .................... 55,826
-------
159,388
-------
SERVICES - 2.3%
Amusement & Recreation - 1.2%
50,000 Circus Circus Enterprises, Inc., 9.250% 12/01/05 ......... 52,176
-------
Business Services - 1.1%
50,000 Comdisco, Inc., 6.650% 11/13/01 .......................... 50,530
-------
TRANSPORTATION, COMMUNICATION, ELECTRIC
GAS & SANITARY SERVICES - 15.9%
Broadcasting - 1.1%
50,000 USA Networks, Inc., 6.750% 11/15/05 ..................... 49,680
-------
Cable - 1.2%
50,000 Jones Intercable, Inc., 10.500% 3/01/08 ................. 54,750
-------
Communications - 1.1%
50,000 Sprint Corp., 6.125% 11/15/05 ........................... 48,252
-------
Electric Services - 3.2%
50,000 Indiana Michigan Power Co., 6.450% 11/10/08 ............. 48,327
50,000 Kentucky Power Co., 6.450% 11/10/08 ..................... 49,421
50,000 NorAm Energy Corp., 6.375% 11/01/03 ..................... 49,673
-------
147,421
-------
Gas Services - 1.1%
50,000 KN Energy, Inc., 6.450% 11/30/01 ........................ 50,517
-------
</TABLE>
39
<PAGE>
CRABBE HUSON CONTRARIAN INCOME FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Par Bonds & Notes Value
- --------- ------------------------------------------------------------ --------
CORPORATE FIXED INCOME - (continued)
------------------------------------
<S> <C> <C>
TRANSPORTATION, COMMUNICATION, ELECTRIC
GAS & SANITARY SERVICES - (continued)
Motor Freight & Warehousing - 1.1%
$ 50,000 Ryder System Inc., 6.500% 5/15/05 ............................ $ 49,130
---------
Railroad - 1.1%
50,000 Union Pacific Corp., 6.790% 11/09/07 ......................... 50,497
---------
Sanitary Services - 1.1%
50,000 WMX Technologies, Inc., 6.700% 5/01/01 ....................... 50,687
---------
Telecommunication - 4.9%
75,000 CBS Corp., 7.150% 5/20/05 .................................... 76,886
50,000 Comcast Cable Communications, Inc., 6.200% 11/15/08 .......... 48,720
50,000 GTE South, Inc., 6.000% 2/15/08 .............................. 49,109
50,000 SBC Communications, Inc., 6.250% 3/01/05 ..................... 50,466
---------
225,181
---------
WHOLESALE TRADE - 1.2%
Nondurable Goods
50,000 Sysco Corp., 7.000% 5/01/06 .................................. 52,545
---------
Total Corporate Fixed-Income Bonds & Notes
(cost of $2,432,196) 2,436,267
---------
U.S.GOVERNMENT & AGENCIES OBLIGATIONS - 45.0%
---------------------------------------------
Government Agencies - 30.1%
Federal Home Loan Mortgage Corp.:
56,018 9.500% 10/01/16 ............................................. 59,280
69,390 9.000% 4/01/17 .............................................. 73,564
96,195 7.000% 11/01/25 ............................................. 98,660
68,616 7.500% 9/01/25 .............................................. 71,360
91,191 8.000% 6/01/26 .............................................. 95,978
---------
398,842
---------
Federal National Mortgage Association
66,525 9.250% 9/01/16 .............................................. 70,703
---------
Government National Mortgage Association.:
502,562 7.000% 10/15/27-6/15/28 ..................................... 509,939
392,840 6.500% 11/15/28 ............................................. 390,259
---------
900,198
---------
Government Obligations - 14.9%
U S Treasury Notes:
575,000 4.875% 3/31/01 .............................................. 572,844
110,000 4.750% 2/15/04 .............................................. 107,834
---------
680,678
---------
Total U.S. Government & Agency Obligations
(cost of $2,019,261) 2,050,421
---------
</TABLE>
40
<PAGE>
CRABBE HUSON CONTRARIAN INCOME FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Par Bonds & Notes Value
- ---------- --------------------------------------------------------- -----------
<S> <C> <C>
ASSET BACKED SECURITIES - 0.7%
ASSET BACKED SECURITIES - 0.7%
$ 30,000 Green Tree Financial Corp., Series 1997-7, Class A-5,
6.540% 7/15/19 (cost of $29,992) ........................ $ 30,241
----------
Total Investments
(cost of $4,468,429)(a) 4,516,929
----------
SHORT-TERM OBLIGATIONS - 16.7%
----------------------------------------------------------
13,000 Repurchase agreement with ABN AMRO Chicago Corp.
dated 4/30/99, due 5/03/99 at 4.870%, collateralized by a
U.S. Treasury bond with a maturity of 2002, market value
of $13,169 (repurchase proceeds of $13,005) ............. 13,000
749,681 Navigator Securities Lending Trust-Prime Portfolio
4.900%(b) ............................................... 749,681
----------
Total Short-term obligations 762,681
----------
OTHER ASSETS AND LIABILITIES - (15.9)% (723,823)
----------
NET ASSETS - 100.0% $4,555,787
----------
</TABLE>
NOTES TO INVESTMENT PORTFOLIO:
(a) Cost for federal income tax purposes is the same.
(b) Investment of collateral received for securities loaned in Navigator
Securities Lending Trust-Prime Portfolio. As of April 30, 1999, the market
value of the securities on loan is $732,844.
41
<PAGE>
CRABBE HUSON OREGON TAX-FREE FUND (ORBFX)
Municipal market lagged Treasurys
During the past six months, municipal bond market performance continued to lag
the Treasury market. However, tax-exempt bonds represented one of the cheapest
sectors of the U.S. bond market, offering taxable-equivalent yields well in
excess of their Treasury counterparts. In fact, municipals have recently
offered some of the best values -- and highest yields on an after-tax basis --
since Congress passed the tax-reform act of 1986. As a result, the buying
opportunities we have seen recently are as attractive as they have been in more
than a decade.
For the six months ended April 30, 1999, Crabbe Huson Oregon Tax-Free Fund
generated a total return of 0.97% for Class A shares, based on net asset value.
By comparison, the Lehman Brothers Municipal Bond Index had a total return of
1.75% for the same period.(1) While the Lehman Brothers Index provides a useful
comparison, it is important to note that the Fund is composed of a narrower
range of investments -- the Fund invests only in Oregon bonds while the Index
tracks the performance of bonds in many states.
Management focused on increasing yield
Throughout the period we actively managed the Fund to increase yield and
income. For example, we modestly lengthened the portfolio's duration to
approximately eight years in order to capture the additional yield provided by
longer maturity bonds. Duration is a measure of a bond mutual fund's price
sensitivity to interest rate movements. It is a mathematical calculation that
assesses such factors as the maturities of the bonds in a fund's portfolio,
coupon rates and how often they are paid, and prevailing market interest rates.
A longer duration may have a negative effect on total return during periods of
rising interest rates, but we view a higher, more consistent yield to be an
appropriate trade-off as it contributes to predictable levels of tax-exempt
income and reduced price volatility. We also replaced a significant portion of
our AAA-rated prerefunded bonds with more traditional municipal bonds, a move
that benefited the portfolio's overall yield. The Fund's credit quality
remained high, reflecting Oregon's stable political environment, sound economy
and well-managed finances.
- ----------------------
(1)The Lehman Brothers Municipal Bond Index is an unmanaged index that tracks
the performance of U.S. municipal bonds. Unlike mutual funds, indexes are not
investments, do not incur fees or charges and are not professionally managed.
It is not possible to invest directly in an index.
42
<PAGE>
CRABBE HUSON OREGON TAX-FREE FUND
Maintaining current strategies
Looking ahead, we plan to continue employing our duration and yield-management
strategies, which we believe should benefit the Fund. Because Oregon has a
relatively small number of bonds outstanding, it is difficult to make dramatic
changes in the portfolio's holdings. As a result, over the months ahead we
anticipate only modest, if any, changes to the portfolio's average maturity.
However, we will continue to actively pursue trading opportunities to generate
competitive performance.
/s/ Garth R. Nisbet, CFA /s/ Paul C. Rocheleau
Garth R. Nisbet, CFA Paul C. Rocheleau
Crabbe Huson Oregon Tax-Free Fund Average Annual Total Returns
As of April 30, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------
Class A Shares Class B Shares
NAV POP NAV w/CDSC
Inception Date: 10/04/1984 1/27/1999
<S> <C> <C> <C> <C>
1 Year 5.90% 0.87% 5.68% 0.68%
5 Years 5.60% 4.58% 5.56% 5.23%
10 Years 6.27% 5.76% 6.25% 6.25%
- ----------------------------------------------------------------------
</TABLE>
Past performance cannot predict future results. Returns and value of an
investment will vary, resulting in a gain or loss on sale. All results shown
assume reinvestment of distributions. Net asset value (NAV) returns do not
include initial sales charges or contingent deferred sales charges (CDSCs).
Public offering price (POP) returns include the maximum sales charge of 4.75%
for Class A shares. The CDSC returns reflect the maximum applicable charges of
5% for one year and 2% for five years for Class B shares.
Performance results reflect any voluntary waivers or reimbursement of Fund
expenses by the Advisor or its affiliates. Absent these waivers or
reimbursement arrangements, performance results would have been lower.
Class B share (newer class shares) performance information includes returns of
the Fund's Class A shares (the oldest existing fund class) for periods prior to
the inception of the newer class shares. These Class A share returns are not
restated to reflect any expense differential (e.g., Rule 12b-1 fees) between
Class A shares and the newer class shares. Had the expense differential been
reflected, the returns for periods prior to the inception of Class B shares
would have been lower.
43
<PAGE>
CRABBE HUSON OREGON TAX-FREE FUND
INVESTMENT PORTFOLIO (Unaudited)
April 30, 1999
<TABLE>
<CAPTION>
Par Value
- ----------- ------------------------------------------------------------- ---------
<S> <C> <C>
MUNICIPAL BONDS - 99.3%
-----------------------
EDUCATION - 9.9%
Education
<S> <C> <C>
$ 500,000 Clackamas Community College District, Series 1997, 5.400%
6/01/15 ..................................................... $ 522,885
1,000,000 Multnomah County, University of Portland, Series 1997,
5.150% 4/01/14 .............................................. 1,033,630
765,000 Salem Educational Facility Revenue, 6.000% 4/01/10 .......... 826,521
---------
2,383,036
---------
HEALTHCARE - 7.2%
Health Services - 2.0%
500,000 Benton County Hospital Facility Authority, Samaritan Health
Services, Series 1998, 5.125% 10/01/28 ...................... 486,285
---------
Hospital - 5.2%
1,000,000 Medford Hospital Facilities Authority, Asante Health
Systems, Series 1998 B, 5.125% 8/15/28 ...................... 991,680
228,000 St. Charles Memorial Hospital, 6.750% 1/01/06 ............... 246,874
---------
1,238,554
---------
HOUSING - 5.8%
Multi-Family - 4.1%
1,000,000 Portland Housing Authority Revenue, 5.000% 1/01/19 .......... 982,730
---------
Single Family - 1.7%
Oregon St. Housing & Community Services:
300,000 5.150% 7/01/13 .............................................. 306,171
110,000 5.150% 7/01/15 ............................................. 111,392
---------
417,563
---------
OTHER - 7.9%
Refunded/Escrowed
265,000 Canby Oregon Sewer Revenue, Series 1997, 5.150%
12/01/14 .................................................... 273,051
500,000 Clackamas & Washington Counties School District No. 3,
Series 1997, 5.150% 6/01/14 ................................. 513,515
485,000 Oregon City Sewer Revenue, 5.200% 10/01/15 .................. 500,050
400,000 State Department General Services, 6.100% 9/01/06 ........... 431,292
80,000 Washington County School District #88J Sherwood, 6.100%
6/01/12 ..................................................... 89,038
95,000 Washington County United Sewer, 5.900% 10/01/06 ............. 102,990
---------
1,909,936
---------
TAX-BACKED - 52.2%
Local General Obligations - 32.4%
135,000 Bend Library County Service District, Series 1996, 5.375%
6/01/11 .................................................... 143,018
250,000 Deschutes County, Series 1998, 4.750% 12/01/12 ............. 250,755
</TABLE>
44
<PAGE>
CRABBE HUSON OREGON TAX-FREE FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Par Value
- ------------- -------------------------------------------------------- ----------
MUNICIPAL BONDS - (continued)
-----------------------------
<S> <C> <C>
TAX-BACKED - (continued)
Local General Obligations - (continued)
$ 450,000 Josephine County School District No.7, Series 1995, 5.750%
6/01/07 ....................................................... $ 496,089
240,000 Lane County Area Educational District, Lane Community
College, Series 1995, 4.850% 6/01/08 .......................... 250,018
1,000,000 Marion County School District No.103: Series 1998, 5.000%
11/01/15 ...................................................... 1,031,850
160,000 Series 1995 A, 6.000% 11/01/05 ................................ 177,680
160,000 Series 1996, 4.850% 6/01/08 ................................... 166,112
400,000 Metro, Open Space Program, Series 1995 C, 4.900%
9/01/07 ....................................................... 415,864
435,000 Multomah County School District No.1J: Series 1993 A,
5.000% 3/01/07 ................................................ 446,723
200,000 Series 1995, 5.600% 12/01/07 .................................. 215,480
300,000 Salem Oregon Series A 5.875% 1/01/07 .......................... 313,872
750,000 Salem-Keizer Oregon School District #24J, 4.875% 6/01/14 ...... 752,430
1,000,000 Tualatin Hills Park & Recreation 5.750% 3/01/15 ............... 1,113,900
295,000 Umatilla County School District 4.750% 6/15/10 ................ 305,821
20,000 Washington County School District #88J Sherwood, 6.100%
6/01/12 ....................................................... 21,864
900,000 Washington Multnomah & Yamhill, Counties Oregon School
District No. 1, 5.000% 11/01/14 ............................... 932,508
400,000 Washington County, #48J Beaverton, 5.000% 8/01/17 ............. 399,968
15,000 Washington & Clackamas, Oregon School District #23J
Tigard, 5.000% 1/01/05 ........................................ 15,730
300,000 Yamhill County S.D., Oregon School District 6.000% 6/01/08 338,013
---------
7,787,695
---------
Special Non-Property Tax - 4.1%
160,000 Portland Oregon Building Series A, 4.750% 4/01/08 ............. 163,086
300,000 Commonwealth of Puerto Rico Public Building Authority,
Series B, 5.000% 7/01/13 ...................................... 307,680
---------
500,000 Puerto Rico Commonwealth Infrastructure 5.000% 7/01/13 ........ 513,285
---------
Special Property Tax - 0.6%
150,000 Metro, Regional Center Project, Series 1993 A, 5.000%
8/01/10 ....................................................... 153,545
---------
State Appropriated - 2.8%
665,000 St Department Administrative Lottery Revenue, 4.750%
4/01/13 ....................................................... 662,965
---------
</TABLE>
45
<PAGE>
CRABBE HUSON OREGON TAX-FREE FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Par Value
- ------------- ------------------------------------------------------------------ ----------
MUNICIPAL BONDS - (continued)
-----------------------------
TAX-BACKED - (continued)
<S> <C> <C>
State General Obligations - 12.3%
$ 1,000,000 Northern Oregon Corrections, 5.400% 9/15/16 ..................... $1,037,850
100,000 St Rev-Vet Welfare, 5.550% 4/01/09 .............................. 108,963
110,000 State G.O.: 6.000% 8/01/04 ...................................... 119,419
100,000 6.400% 1/01/08 ................................................. 100,236
175,000 7.200% 7/01/04 ................................................. 201,752
250,000 7.250% 7/01/06 ................................................. 297,700
200,000 7.250% 1/01/07 ................................................. 239,120
205,000 8.200% 7/01/04 ................................................. 245,658
200,000 8.250% 1/01/07 ................................................. 251,846
100,000 9.000% 4/01/03 ................................................. 118,806
180,000 9.200% 4/01/08 ................................................. 244,310
----------
2,965,660
----------
TRANSPORTATION - 4.3%
Airport - 1.5%
355,000 Portland Oregon Airport Revenue, 5.000% 7/01/18 ................. 353,243
----------
Transportation - 2.8%
300,000 Puerto Rico Commonwealth: 5.500% 7/01/12 ........................ 327,981
310,000 5.500% 7/01/14 ................................................. 339,850
----------
667,831
----------
UTILITY - 9.9%
Municipal Electric - 4.2%
500,000 Electric Power Authority Power Revenue: 5.250% 7/01/14 .......... 525,430
500,000 4.750% 7/01/21 ................................................. 480,740
----------
1,006,170
----------
Water & Sewer - 5.7%
140,000 McMinnville Sewer Systems Revenue: Series 1994 A,
4.700% 2/01/07 .................................................. 143,822
500,000 Series 1994 A, 5.000% 2/01/14 ................................... 505,960
500,000 Molalla Oregon Water Systems, Series 1997, 5.200%
8/01/17 ......................................................... 512,155
100,000 Portland Oregon Water System 5.100% 8/01/08 ..................... 104,053
100,000 Portland Sewer System Revenue 5.150% 3/01/08 .................... 102,971
----------
1,368,961
----------
OTHER - 2.1%
100,000 Deschutes County Oregon Certificates 5.100% 6/01/18 ............. 97,589
420,000 Deschutes County, Series 1998 A, 5.050% 6/01/17 ................. 409,769
----------
507,358
----------
</TABLE>
46
<PAGE>
CRABBE HUSON OREGON TAX-FREE FUND
INVESTMENT PORTFOLIO (Unaudited) (Continued)
April 30, 1999
<TABLE>
<CAPTION>
Par Value
- --------- ------------------------------------------------------- -------
<S> <C>
Total Municipal Bonds
(cost of $23,026,584)(a) $23,875,583
-----------
SHORT-TERM OBLIGATIONS - 0.0%
-----------------------------
CASH EQUIVALENTS-TAXABLE - 0.0%
$ 1,000 DREYFUS NON-TAXABLE SHORT TERM FUND
3.140% 8/01/99 ................................................... 1,000
-----------
OTHER ASSETS & LIABILITIES, NET - 0.7% 179,283
-----------
NET ASSETS - 100.0% $24,055,866
-----------
</TABLE>
(a) Cost for federal income tax purposes is the same.
47
<PAGE>
CRABBE HUSON FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
CRABBE CRABBE CRABBE HUSON
HUSON HUSON MANAGED
CONTRARIAN EQUITY INCOME & EQUITY
FUND FUND FUND
----------- ------------ ---------------
<S> <C> <C> <C>
ASSETS:
Investment at cost $3,067,048 $155,360,593 $72,288,951
Appreciation (depreciation) 266,395 16,255,164 5,997,134
----------- ------------ -----------
Investment at market 3,333,443 171,615,757 78,286,085
Short-term obligations 236,000 -- 1,647,000
Receivables:
Investments sold 26,137 3,201,207 889,713
Fund shares sold 18,315 950,241 602,941
Dividends and interest 201 9,343 421,175
Expense reimbursement due from Advisor -- 63,110 73,303
Organization expenses -- -- --
Other 18,964 25,975 20,567
---------- ------------ -----------
3,633,060 175,865,633 81,940,784
---------- ------------ -----------
LIABILITIES:
Payables:
Loan Payable -- 1,397,404 --
Investments purchased 64,721 1,311,703 537,084
Fund shares redeemed -- 463,564 948,975
Distributions -- -- --
Payable to Advisor -- -- --
Deposits for securities loaned -- 14,580,963 4,554,161
Accrued:
Management fee -- 549 3,786
Payable to Administrator -- 56 11
Transfer Agent fee -- 2,825 13,801
Interest expense -- 13,907 62
Deferred Trustees fees 13 129 84
Other -- 44,469 --
---------- ------------ -----------
64,734 17,815,569 6,057,964
---------- ------------ -----------
NET ASSETS: $3,568,326 $158,050,064 $75,882,820
========== ============ ===========
NET ASSETS CONSIST OF:
Capital paid in $3,162,986 $122,173,234 $62,589,697
Undistributed (overdistributed) net
investment income 1,519 (190,521) 502,724
Accumulated net realized gain (loss) 137,426 19,812,187 6,793,265
Net unrealized appreciation (depreciation) 266,395 16,255,164 5,997,134
---------- ------------- -----------
$3,568,326 $158,050,064 $75,882,820
========== ============ ===========
CLASS A
Net Assets $3,566,076 $139,498,119 $49,238,258
Shares outstanding 316,281 7,398,506 3,551,104
========== ============ ===========
NET ASSET VALUE AND
REDEMPTION PRICE PER SHARE $ 11.28(a) $ 18.86(a) $ 13.87(a)
========== ============ ===========
MAXIMUM OFFERING PRICE PER
SHARE (NAV/(1-SALES LOAD)) $ 11.97(b) $ 20.00(b) $ 14.56(b)
=========== ============= ===========
CLASS B
Net Assets $ 1,125 $ 2,461 $ 1,086
Shares outstanding 100 131 78
=========== ============= ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $ 11.25(a) $ 18.80(a) $ 13.86(a)
=========== ============= ===========
CLASS C
Net Assets $ 1,125 $ 1,417 $ 1,086
Shares outstanding 100 75 78
=========== ============= ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $ 11.25(a) $ 18.80(a) $ 13.86(a)
=========== ============= ===========
CLASS I
Net Assets -- $ 18,548,067 $26,642,390
Shares outstanding -- 983,335 1,924,132
=========== ============= ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE -- $ 18.86 $ 13.85
=========== ============= ===========
CLASS Z
Net Assets -- -- --
Shares outstanding -- -- --
=========== ============= ===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE -- -- --
=========== ============= ===========
</TABLE>
(a) Redemption price per share is equal to net asset value less any applicable
contingent deferred sales charge.
(b) On sales of $50,000 or more the offering price is reduced.
See notes to financial statements.
48
<PAGE>
CRABBE HUSON FUNDS
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
<TABLE>
<CAPTION>
CRABBE HUSON CRABBE THE CRABBE HUSON CRABBE HUSON
REAL ESTATE HUSON CRABBE HUSON CONTRARIAN OREGON
INVESTMENT SMALL CAP SPECIAL INCOME TAX-FREE
FUND FUND FUND FUND FUND
------------- ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
$ 14,174,799 $ 104,706,629 $ 121,901,446 $ 5,231,130 $22,919,787
(22,378) (35,547,415) (37,686,387) 35,480 955,795
------------- ------------- ------------- ----------- -----------
14,152,421 69,159,214 84,215,059 5,266,610 23,875,582
276,000 -- -- 13,000 1,000
500,737 423,672 1,713,975 5,054 --
548,884 630,120 209,769 -- 4,302
48,238 9,024 3,020 77,093 347,966
-- 5,205 60,047 -- --
-- 74,338 -- -- --
1,139 13,459 61,315 1,400 120
------------- ------------- ------------- ----------- -----------
15,527,419 70,315,032 86,263,185 5,363,157 24,228,970
------------- ------------- ------------- ----------- -----------
-- 109,970 6,553,049 -- 100,661
40,000 -- -- -- --
554,102 496,502 207,595 -- 5,000
-- -- 8,071 15,537 48,406
6,628 -- -- 20,494 16,771
987,000 10,204,532 -- 749,681 --
-- 385 3,397 -- --
3 -- -- -- 300
165 -- -- -- --
126 5,525 39,232 -- 718
57 75 83 13 --
102,257 -- 114,461 21,645 1,248
------------- ------------- ------------- ----------- -----------
1,690,338 10,816,989 6,925,888 807,370 173,104
------------- ------------- ------------- ----------- -----------
$ 13,837,081 $ 59,498,043 $ 79,337,297 $4,555,787 $24,055,866
============= ============= ============= =========== ===========
$ 13,201,689 $102,433,223 $147,823,993 $4,408,594 $22,774,169
316,621 (168,646) (374,300) 3,766 183,033
341,149 (7,219,119) (30,426,009) 107,947 142,869
(22,378) (35,547,415) (37,686,387) 35,480 955,795
------------- ------------- ------------- ----------- -----------
$ 13,837,081 $ 59,498,043 $ 79,337,297 $4,555,787 $24,055,866
============= ============= ============= =========== ===========
$ 13,194,583 $ 8,189,616 $ 79,337,297 $4,555,569 $24,054,872
1,201,117 937,991 9,103,014 425,123 1,911,527
============= ============= ============= =========== ===========
$ 10.99(a) $ 8.73(a) $ 8.72(a) $ 10.48(a) $ 12.58(a)
============= ============= ============= =========== ===========
$ 11.54(b) $ 9.26(b) $ 9.25(b) $ 11.00(b) $ 13.21(b)
============= ============= ============= =========== ===========
$ 393,291 -- -- -- $ 994
35,840 -- -- -- 79
============= ============= ============= =========== ===========
$ 10.97(a) -- -- -- $ 12.58(a)
============= ============= ============= =========== ===========
$ 4,745 -- -- -- --
433 -- -- -- --
============= ============= ============= =========== ===========
$ 10.97(a) -- -- -- --
============= ============= ============= =========== ===========
-- $ 51,308,427 -- -- --
-- 5,851,076
============= ============= ============ =========== ===========
-- $ 8.77 -- -- --
============= ============= ============= =========== ===========
$ 244,462 -- -- $ 100,218 --
22,252 -- -- 9,617 --
============= ============= ============= =========== ===========
$ 10.99 -- -- $ 10.48 --
============= ============= ============= =========== ===========
</TABLE>
49
<PAGE>
CRABBE HUSON FUNDS
STATEMENTS OF OPERATIONS
For the six months ended April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
CRABBE CRABBE CRABBE HUSON
HUSON HUSON MANAGED
CONTRARIAN EQUITY INCOME & EQUITY
FUND FUND FUND
---------- ------------ ---------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest $ 14,409 $ 215,176 $ 1,103,464
Securities Lending -- 60,987 21,729
Dividends 7,918 1,289,586 360,896
--------- ------------ -----------
22,327 1,565,749 1,486,089
--------- ------------ -----------
EXPENSES
Management fee 10,443 929,852 439,726
Administration fee 658 51,646 21,648
Service fee--Class A 3,232 220,436 72,164
Service fee--Class B -- 1 1
Service fee--Class C -- 1 1
Distribution fee--Class B 3 2 2
Distribution fee--Class C 3 2 2
Transfer agent--Class A, B, C 3,521 251,273 81,917
Transfer agent--Class I -- 284 373
Bookkeeping fee 11,366 49,570 19,973
Trustees fee 3,171 8,590 7,334
Custodian fee 1,057 66,896 1,170
Interest -- 23,664 4,576
Audit fee 7,852 9,476 5,786
Legal fee 3,473 -- 2,266
Registration fee 23,707 28,334 7,940
Reports to shareholders 604 10,481 8,193
Amortization of deferred organization
expenses -- -- 2,614
Other 1,208 26,454 2,388
--------- ------------ -----------
70,298 1,676,962 678,074
Fees and expenses waived or borne
by the Advisor (49,490) (291,656) (116,407)
--------- ------------ -----------
NET EXPENSES 20,808 1,385,306 561,667
--------- ------------ -----------
NET INVESTMENT INCOME (LOSS) 1,519 180,443 924,422
--------- ------------ -----------
REALIZED AND UNREALIZED
GAIN (LOSS):
Net realized gain (loss) on investments 137,426 24,457,945 7,385,234
Net change in unrealized appreciation
of investments 266,395 3,603,105 308,454
--------- ------------ -----------
NET GAIN (LOSS) ON INVESTMENTS 403,821 28,061,050 7,693,688
--------- ------------ -----------
NET INCREASE (DECREASE) IN
NET ASSETS RESULTING FROM
OPERATIONS $ 405,340 $ 28,241,493 $ 8,618,110
========= ============ ===========
</TABLE>
See notes to financial statements.
50
<PAGE>
CRABBE HUSON FUNDS
STATEMENTS OF OPERATIONS (Continued)
For the six months ended April 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
CRABBE HUSON CRABBE THE CRABBE HUSON CRABBE HUSON
REAL ESTATE HUSON CRABBE HUSON CONTRARIAN OREGON
INVESTMENT SMALL CAP SPECIAL INCOME TAX-FREE
FUND FUND FUND FUND FUND
------------ ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C>
$ 12,871 $ 12,127 $ -- $ 199,804 $ 624,099
2,147 51,579 23,314 3,015 --
562,145 130,371 213,333 -- --
---------- ------------ ---------- ---------- ----------
577,163 194,077 236,647 202,819 624,099
---------- ------------ ---------- ---------- ----------
76,344 332,721 402,204 24,043 61,792
3,870 17,955 19,555 1,686 5,607
18,803 14,101 100,096 7,805 30,887
114 -- -- -- --
1 -- -- -- --
379 -- -- -- 2
3 -- -- -- --
21,384 24,684 143,455 9,810 24,497
-- 697 -- 1 --
13,393 16,238 18,751 13,500 13,500
1,987 6,302 2,887 3,372 2,982
826 17,690 52,925 7,500 4,369
245 19,194 176,837 243 11,169
369 3,887 -- 1,650 2,423
736 4 -- 677 286
112,253 30,252 26,743 13,543 2,703
3,963 3,169 7,900 641 1,252
14,318 12,793 -- -- --
1,912 13,934 6,448 1,364 2,860
---------- ------------ ---------- ---------- ----------
270,900 513,621 957,801 85,835 164,329
(156,132) (150,898) (354,926) (60,479) (42,843)
---------- ------------ ---------- ---------- ----------
114,768 362,723 602,875 25,356 121,486
---------- ------------ ---------- ---------- ----------
462,395 (168,646) (366,228) 177,463 502,613
---------- ------------ ---------- ---------- ----------
372,801 (6,999,115) (9,211,982) 108,283 154,466
345,926 7,980,056 13,560,074 (213,472) (949,551)
---------- ------------ ---------- ---------- ----------
718,727 980,941 4,348,092 (105,189) (795,085)
---------- ------------ ---------- ---------- ----------
$1,181,122 $ 812,295 $3,981,864 $ 72,274 $ (292,472)
========== ============ ========== ========== ==========
</TABLE>
51
<PAGE>
CRABBE HUSON FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
CRABBE HUSON
CONTRARIAN FUND
-----------------
PERIOD ENDED
APRIL 30, 1999(a)
-----------------
<S> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income $ 1,519
Net realized gain 137,426
Net change in unrealized appreciation
(depreciation) of investments 266,395
----------
Increase (Decrease) in net assets
resulting from operations 405,340
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income-Class A --
From net investment income-Class I --
From net realized gain on investments-
Class A --
From net realized gain on investments-
Class I --
----------
405,340
----------
CAPITAL SHARE TRANSACTIONS:
Receipts for shares sold-Class A 3,166,936
Value of distributions reinvested-Class A --
Cost of shares repurchased-Class A (5,950)
----------
3,160,986
----------
Receipts for shares sold-Class B 1,000
Value of distributions reinvested-Class B --
Cost of shares repurchased-Class B --
----------
1,000
----------
Receipts for shares sold-Class C 1,000
Value of distributions reinvested-Class C --
Cost of shares repurchased-Class C --
----------
1,000
----------
Receipts for shares sold-Class I --
Value of distributions reinvested-Class I --
Cost of shares repurchased-Class I --
----------
--
----------
Receipts for shares sold-Class Z --
Value of distributions reinvested-Class Z --
Cost of shares repurchased-Class Z --
----------
--
----------
Net Increase (Decrease) from Fund
Share Transactions 3,162,986
----------
Total Increase (Decrease) in Net Assets 3,568,326
FUND NET ASSETS, BEGINNING OF
PERIOD --
----------
FUND NET ASSETS, END OF PERIOD $3,568,326
==========
</TABLE>
(a) The Fund commenced investment operations on December 1, 1998.
(b) Class B and Class C shares were initially offered on January 27, 1999.
See notes to financial statements.
52
<PAGE>
<TABLE>
<CAPTION>
CRABBE HUSON CRABBE HUSON
EQUITY FUND MANAGED INCOME & EQUITY FUND
- ---------------------------------------- ---------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999(b) OCTOBER 31, 1998 APRIL 30, 1999(b) OCTOBER 31, 1998
- ------------------- ------------------ ------------------- -----------------
<S> <C> <C> <C>
$ 180,443 $ 1,631,851 $ 924,422 $ 2,880,765
24,457,945 8,001,428 7,385,234 1,965,514
3,603,105 (44,543,545) 308,454 (5,596,448)
- ---------------- -------------- ------------- -------------
28,241,493 (34,910,266) 8,618,110 (750,169)
(1,254,599) (804,289) (398,067) (1,566,627)
(288,497) (150,978) (339,997) (677,141)
(7,391,450) (77,290,555) (1,371,374) (11,232,637)
(919,802) (4,893,327) (720,167) (3,834,627)
- ---------------- -------------- ------------- -------------
18,387,145 (118,049,415) 5,788,505 (18,061,201)
- ---------------- -------------- ------------- -------------
54,931,471 97,527,486 1,241,961 13,003,112
8,116,009 74,537,053 1,668,003 11,922,009
(166,607,152) (216,438,529) (25,120,171) (39,765,833)
- ---------------- -------------- ------------- -------------
(103,559,672) (44,373,990) (22,210,207) (14,840,712)
- ---------------- -------------- ------------- -------------
2,200 -- 1,000 --
-- -- -- --
-- -- -- --
- ---------------- -------------- ------------- -------------
2,200 -- 1,000 --
- ---------------- -------------- ------------- -------------
1,265 -- 1,000 --
-- -- -- --
-- -- -- --
- ---------------- -------------- ------------- -------------
1,265 -- 1,000 --
- ---------------- -------------- ------------- -------------
2,176,546 17,904,274 1,470,510 26,660,076
1,074,278 5,044,293 1,060,164 4,511,764
(14,331,793) (10,356,193) (11,632,115) (21,423,740)
- ---------------- -------------- ------------- -------------
(11,080,969) 12,592,374 (9,101,441) 9,748,100
- ---------------- -------------- ------------- -------------
2,176,546 17,904,274 -- --
1,074,278 5,044,293 -- --
(14,331,793) (10,356,193) -- --
- ---------------- -------------- ------------- -------------
(11,080,969) 12,592,374 -- --
- ---------------- -------------- ------------- -------------
(114,637,176) (31,781,616) (31,309,648) (5,092,612)
- ---------------- -------------- ------------- -------------
(96,250,031) (149,831,031) (25,521,143) (23,153,813)
254,300,095 404,131,126 101,403,963 124,557,776
- ---------------- -------------- ------------- -------------
$ 158,050,064 $ 254,300,095 $ 75,882,820 $ 101,403,963
================ ============== ============= =============
</TABLE>
53
<PAGE>
CRABBE HUSON FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (continued)
(Unaudited)
<TABLE>
<CAPTION>
CRABBE HUSON REAL
ESTATE INVESTMENT FUND
------------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999(a)(b) OCTOBER 31, 1998
--------------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income (loss) $ 462,395 $ 990,794
Net realized gain (loss) 372,801 296,927
Net realized loss on closed short sales -- --
Net change in unrealized appreciation
(depreciation) of investments 345,926 (4,584,901)
----------- -------------
Increase (Decrease) in net assets
resulting from operations 1,181,122 (3,297,180)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income-Class A (243,731) (776,460)
From net investment income-Class B (285) --
From net investment income-Class C (2) --
From net investment income-Class I -- --
From net investment income-Class Z (341) --
Return of capital-Class A -- --
From net realized gain on investments-
Class A (281,505) (3,695,066)
From net realized gain on investments-
Class I -- --
------------- -------------
655,258 (7,768,706)
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Receipts for shares sold-Class A 2,026,395 10,975,706
Value of distributions reinvested-Class A 505,550 4,237,480
Cost of shares repurchased-Class A (7,358,275) (24,279,539)
------------- -------------
(4,826,330) (9,066,353)
------------- -------------
Receipts for shares sold-Class B 493,128 --
Value of distributions reinvested-Class B 118 --
Cost of shares repurchased-Class B (137,961) --
------------- -------------
355,285 --
------------- -------------
Receipts for shares sold-Class C 4,374 --
Value of distributions reinvested-Class C 2 --
Cost of shares repurchased-Class C -- --
------------- -------------
4,376 --
------------- -------------
Receipts for shares sold-Class I -- --
Value of distributions reinvested-Class I -- --
Cost of shares repurchased-Class I -- --
------------- -------------
-- --
------------- -------------
Receipts for shares sold-Class Z 226,492 --
Value of distributions reinvested-Class Z 341 --
Cost of shares repurchased-Class Z (1,834) --
------------- -------------
224,999 --
------------- -------------
Net Increase (Decrease) from Fund
Share Transactions (4,241,670) (9,066,353)
------------- -------------
Total Increase (Decrease) in Net Assets (3,586,412) (16,835,059)
FUND NET ASSETS, BEGINNING OF
PERIOD 17,423,493 34,258,552
------------- -------------
FUND NET ASSETS, END OF PERIOD $13,837,081 $ 17,423,493
============= =============
</TABLE>
(a) Class B and Class C shares were initially offered on January 27, 1999.
(b) Class Z shares were initially offered on January 29, 1999.
See notes to financial statements.
54
<PAGE>
<TABLE>
<CAPTION>
CRABBE HUSON CRABBE HUSON
SMALL CAP FUND SPECIAL FUND
- --------------------------------------- --------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, 1998 APRIL 30, 1999 OCTOBER 31, 1998
- ------------------ ------------------ ------------------ -----------------
<S> <C> <C> <C>
$ (168,646) $ (454,875) $ (366,228) $ 809,357
(6,999,115) 311,050 (9,211,982) 41,061,041
-- -- -- (59,279,457)
7,980,056 (53,349,009) 13,560,074 (102,586,857)
- --------------- ------------- ------------- ------------
812,295 (53,492,834) 3,981,864 (119,995,916)
-- -- -- (3,172,152)
-- -- -- --
-- -- -- --
-- (355,900) -- --
-- -- -- --
-- -- -- (396,855)
(78,844) (3,251,640) -- (38,363,921)
(334,382) (7,631,388) -- --
- --------------- ------------- ------------- ------------
399,069 (64,731,762) 3,981,864 (161,928,844)
- --------------- ------------- ------------- ------------
1,573,981 21,327,758 9,103,268 70,050,093
72,224 3,079,615 -- 40,752,447
(7,986,683) (35,197,213) (38,251,525) (240,705,256)
- --------------- ------------- ------------- ------------
(6,340,478) (10,789,840) (29,148,257) (129,902,716)
- --------------- ------------- ------------- ------------
-- -- -- --
-- -- -- --
-- -- -- --
- --------------- ------------- ------------- ------------
-- -- -- --
- --------------- ------------- ------------- ------------
-- -- -- --
-- -- -- --
-- -- -- --
- --------------- ------------- ------------- ------------
-- -- -- --
- --------------- ------------- ------------- ------------
12,282,410 76,871,733 -- --
309,467 7,987,258 -- --
(24,153,489) (46,554,601) -- --
- --------------- ------------- ------------- ------------
(11,561,612) 38,304,390 -- --
- --------------- ------------- ------------- ------------
-- -- -- --
-- -- -- --
-- -- -- --
- --------------- ------------- ------------- ------------
-- -- -- --
- --------------- ------------- ------------- ------------
(17,902,090) 27,514,550 (29,148,257) (129,902,716)
- --------------- ------------- ------------- ------------
(17,503,021) (37,217,212) (25,166,393) (291,831,560)
77,001,064 114,218,276 104,503,690 396,335,250
- --------------- ------------- ------------- ------------
$ 59,498,043 $ 77,001,064 $ 79,337,297 $104,503,690
=============== ============= ============= ============
</TABLE>
55
<PAGE>
CRABBE HUSON FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (continued)
(Unaudited)
<TABLE>
<CAPTION>
CRABBE HUSON
CONTRARIAN INCOME FUND
--------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, 1998
----------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS:
Net investment income $ 177,463 $ 293,333
Net realized gain 108,283 221,484
Net change in unrealized appreciation
(depreciation) of investments (213,472) 115,513
------------ ------------
Increase in net assets resulting from
operations 72,274 630,330
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income-Class A (173,131) (381,093)
From net investment income-Class B -- --
From net investment income-Class I (3,336) (381)
From net realized gain on investments-
Class A (140,304) --
From net realized gain on investments-
Class I (1,788) --
------------ ------------
(246,285) 248,856
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Receipts for shares sold-Class A 613,085 9,017,282
Value of distributions reinvested-Class A 246,405 344,452
Cost of shares repurchased-Class A (4,961,203) (4,060,463)
------------ ------------
(4,101,713) 5,301,271
------------ ------------
Receipts for shares sold-Class B -- --
Value of distributions reinvested-Class B -- --
Cost of shares repurchased-Class B -- --
------------ ------------
-- --
------------ ------------
Receipts for shares sold-Class I -- 100,000
Value of distributions reinvested-Class I 5,124 382
Cost of shares repurchased-Class I -- --
------------ ------------
5,124 100,382
------------ ------------
Net Increase (Decrease) from Fund
Share Transactions (4,096,589) 5,401,653
------------ ------------
Total Increase (Decrease) in Net Assets (4,342,874) 5,650,509
FUND NET ASSETS, BEGINNING OF
PERIOD 8,898,661 3,248,152
------------ ------------
FUND NET ASSETS, END OF PERIOD $ 4,555,787 $ 8,898,661
============ ============
</TABLE>
(a) Class B shares were initially offered on January 27, 1999.
See notes to financial statements.
56
<PAGE>
<TABLE>
<CAPTION>
CRABBE HUSON
OREGON TAX-FREE FUND
- ---------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999(a) OCTOBER 31, 1998
- ------------------- -----------------
<S> <C>
$ 502,613 $ 1,087,256
154,466 675,948
(402,573) (80,976)
- -------------- ------------
254,506 1,682,228
(502,823) (1,086,789)
(8) --
-- --
(620,463) (71,383)
-- --
- ---------------- ------------
(868,788) 524,056
- ---------------- ------------
290,319 2,685,236
879,820 853,092
(1,837,881) (4,958,242)
- ---------------- ------------
(667,742) (1,419,914)
- ---------------- ------------
1,000 --
7 --
-- --
- ---------------- ------------
1,007 --
- ---------------- ------------
-- --
-- --
-- --
- ---------------- ------------
-- --
- ---------------- ------------
(666,735) (1,419,914)
- ---------------- ------------
(1,535,523) (895,858)
25,591,389 26,487,247
- ---------------- ------------
$24,055,866 $ 25,591,389
================ ============
</TABLE>
57
<PAGE>
CRABBE HUSON FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (continued)
(Unaudited)
<TABLE>
<CAPTION>
CRABBE HUSON
CONTRARIAN FUND
------------------
PERIOD ENDED
APRIL 30, 1999(a)
------------------
<S> <C>
NUMBER OF FUND SHARES:
Receipts for shares sold-Class A 316,873
Value of distributions reinvested-Class A --
Cost of shares repurchased-Class A (592)
-------
316,281
-------
Receipts for shares sold-Class B 100
Value of distributions reinvested-Class B --
Cost of shares repurchased-Class B --
-------
100
-------
Receipts for shares sold-Class C 100
Value of distributions reinvested-Class C --
Cost of shares repurchased-Class C --
-------
100
-------
Receipts for shares sold-Class I --
Value of distributions reinvested-Class I --
Cost of shares repurchased-Class I --
-------
--
-------
</TABLE>
<TABLE>
<CAPTION>
CRABBE HUSON REAL
ESTATE INVESTMENT FUND
------------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999(b)(c) OCTOBER 31, 1998
---------------------- -----------------
<S> <C> <C>
NUMBER OF FUND SHARES:
Receipts for shares sold-Class A 196,405 881,894
Value of distributions reinvested-Class A 49,367 359,412
Cost of shares repurchased-Class A (714,339) (2,002,564)
-------- ----------
(468,567) (761,258)
-------- ----------
Receipts for shares sold-Class B 49,778 --
Value of distributions reinvested-Class B 12 --
Cost of shares repurchased-Class B (13,950) --
-------- ----------
35,840 --
-------- ----------
Receipts for shares sold-Class C 433 --
Value of distributions reinvested-Class C -- --
Cost of shares repurchased-Class C -- --
-------- ----------
433 --
-------- ----------
Receipts for shares sold-Class I -- --
Value of distributions reinvested-Class I -- --
Cost of shares repurchased-Class I -- --
-------- ----------
-- --
-------- ----------
Receipts for shares sold-Class Z 22,401 --
Value of distributions reinvested-Class Z 34 --
Cost of shares repurchased-Class Z (183) --
-------- ----------
22,252 --
-------- ----------
</TABLE>
(a) The Fund commenced investment operations on December 1, 1998.
(b) Class B and Class C shares were initially offered on January 27, 1999.
(c) Class Z shares were initially offered on January 29, 1999.
See notes to financial statements.
58
<PAGE>
<TABLE>
<CAPTION>
CRABBE HUSON CRABBE HUSON
EQUITY FUND MANAGED INCOME & EQUITY FUND
- ---------------------------------------- ---------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999(b) OCTOBER 31, 1998 APRIL 30, 1999(b) OCTOBER 31, 1998
- ------------------ ----------------- ------------------ ----------------
<S> <C> <C> <C>
3,349,531 5,210,556 97,105 956,085
497,000 4,095,442 134,157 941,150
(10,098,119) (11,954,302) (1,964,599) (3,036,182)
----------- ----------- ---------- ----------
(6,251,588) (2,648,304) (1,733,337) (1,138,947)
----------- ----------- ---------- ----------
131 -- 78 --
-- -- -- --
-- -- -- --
----------- ----------- ---------- ----------
131 -- 78 --
----------- ----------- ---------- ----------
75 -- 78 --
-- -- -- --
-- -- -- --
----------- ----------- ---------- ----------
75 -- 78 --
----------- ----------- ---------- ----------
130,275 996,398 114,841 2,089,941
65,866 277,311 85,446 356,384
(874,557) (641,322) (908,249) (1,728,685)
----------- ----------- ---------- ----------
(678,416) 632,387 (707,962) 717,640
----------- ----------- ---------- ----------
</TABLE>
<TABLE>
<CAPTION>
CRABBE HUSON CRABBE HUSON
SMALL CAP FUND SPECIAL FUND
- --------------------------------------- --------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, 1998 APRIL 30, 1999 OCTOBER 31, 1998
- ----------------- ----------------- ----------------- ----------------
<S> <C> <C> <C>
181,470 1,710,595 1,170,184 6,060,598
8,016 243,064 -- 3,099,046
(923,501) (3,031,548) (4,975,882) (19,847,978)
-------- ---------- ---------- -----------
(734,015) (1,077,889) (3,805,698) (10,688,334)
-------- ---------- ---------- -----------
-- -- -- --
-- -- -- --
-- -- -- --
-------- ---------- ---------- -----------
-- -- -- --
-------- ---------- ---------- -----------
-- -- -- --
-- -- -- --
-- -- -- --
-------- ---------- ---------- -----------
-- -- -- --
-------- ---------- ---------- -----------
1,405,362 5,973,355 -- --
34,233 630,407 -- --
(2,796,028) (4,008,863) -- --
---------- ---------- ---------- -----------
(1,356,433) 2,594,899 -- --
---------- ---------- ---------- -----------
-- -- -- --
-- -- -- --
-- -- -- --
---------- ---------- ---------- -----------
-- -- -- --
---------- ---------- ---------- -----------
</TABLE>
59
<PAGE>
CRABBE HUSON FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (continued)
(Unaudited)
<TABLE>
<CAPTION>
CRABBE HUSON
CONTRARIAN INCOME FUND
--------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999 OCTOBER 31, 1998
------------------ -----------------
<S> <C> <C>
NUMBER OF FUND SHARES:
Receipts for shares sold-Class A 57,302 853,853
Value of distributions reinvested-Class A 23,176 34,069
Cost of shares repurchased-Class A (464,174) (386,073)
-------- --------
(383,696) 501,849
-------- --------
Receipts for shares sold-Class I -- 9,099
Value of distributions reinvested-Class I 483 35
Cost of shares repurchased-Class I -- --
-------- --------
483 9,134
-------- --------
</TABLE>
<TABLE>
<CAPTION>
CRABBE HUSON
OREGON TAX-FREE FUND
---------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1999(a) OCTOBER 31, 1998
------------------- -----------------
<S> <C> <C>
NUMBER OF FUND SHARES:
Receipts for shares sold-Class A 22,864 209,498
Value of distributions reinvested-Class A 69,378 72,091
Cost of shares repurchased-Class A (144,917) (390,338)
-------- --------
(52,675) (108,749)
-------- --------
Receipts for shares sold-Class B 79 --
Value of distributions reinvested-Class B -- --
Cost of shares repurchased-Class B -- --
-------- --------
79 --
-------- --------
</TABLE>
(a) Class B shares were initially offered on January 27, 1999.
See notes to financial statements.
60
<PAGE>
CRABBE HUSON FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 1999 (Unaudited)
NOTE 1. INTERIM FINANCIAL STATEMENTS
In the opinion of management of the Crabbe Huson Contrarian Fund ("Contrarian
Fund"), Crabbe Huson Equity Fund ("Equity Fund"), Crabbe Huson Managed Income
and Equity Fund ("Managed Fund"), Crabbe Huson Real Estate Investment Fund
("Real Estate Fund"), Crabbe Huson Small Cap Fund ("Small Cap Fund"), Crabbe
Huson Special Fund ("Special Fund"), Crabbe Huson Contrarian Income Fund
("Income Fund") and Crabbe Huson Oregon Tax-Free Fund ("Oregon Tax-Free Fund"),
each a series of Liberty Funds III, formerly Colonial Trust III, the
accompanying financial statements contain all normal and recurring adjustments
necessary for the fair presentation of the financial position of the Funds at
April 30, 1999, and the results of their operations, the changes in their net
assets and the financial highlights for the six months then ended.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization: All of the Funds are registered under the Investment Company Act
of 1940. All of the Funds (other than the Oregon Tax-Free Fund) are open-end
diversified portfolio investment companies. The Oregon Tax-Free Fund is an
open-end non-diversified investment company. Each Fund may issue an unlimited
number of shares. All of the Funds offer Class A shares. Class A shares are
sold with a front-end sales charge and a 1.00% contingent deferred sales charge
on redemptions made within eighteen months on an original purchase of $1
million to $5 million. Effective January 27, 1999, Managed, Equity, Real Estate
and Oregon Tax-Free Funds began offering Class B shares. The Contrarian Fund
has continued to offer Class B shares since inception on December 1, 1998.
Class B shares are subject to an annual distribution fee and a contingent
deferred sales charge. Class B shares will convert to Class A shares when they
have been outstanding approximately eight years. Effective January 27, 1999,
Managed, Equity and Real Estate Funds began offering Class C shares. The
Contrarian Fund has continued to offer Class C shares since inception on
December 1, 1998. Class C shares are subject to a contingent deferred sales
charge on redemptions made within one year after purchase and an annual
distribution fee. The Small Cap, Managed, Income and Equity Funds offer Class I
shares. Effective January 29, 1999 the Real Estate Fund began offering Class Z
shares. Class Z shares are offered continuously at net asset value. In
addition, there are certain restrictions on the purchase of Class I and Class Z
shares, please refer to the prospectus. The Class A and Class I shares differ
principally in the service fees and shareholder servicing fees.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the period. Actual results
could differ from those estimates. The following is a summary of significant
accounting policies that are consistently followed by the Funds in the
preparation of their financial statements.
Security valuation and transactions: Equity securities generally are valued at
the last sale price or, in the case of unlisted or listed securities for which
there were no sales during the day, at current quoted bid prices.
61
<PAGE>
CRABBE HUSON FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
April 30, 1999 (Unaudited)
Debt securities generally are valued by a pricing service based upon market
transactions for normal, institutional-size trading units of similar
securities. When management deems it appropriate, an over-the-counter or
exchange bid quotation is used.
Options are valued at the last reported sale price, or in the absence of a
sale, the mean between the last quoted bid and asking price.
Short-term obligations with a maturity of 60 days or less are valued at
amortized cost.
Portfolio positions for which market quotations are not readily available are
valued at fair value under procedures approved by the Trustees.
Security transactions are accounted for on the date the securities are
purchased, sold or mature.
Cost is determined and gains and losses are based upon specific identification
method for both financial statement and federal income tax purposes.
The Funds may trade securities on other than normal settlement terms. This may
increase the risk if the other party to the transaction fails to deliver and
causes the Funds to subsequently invest at less advantageous prices.
The Special Fund may invest in short sales. A short sale is effected when it is
believed that the price of a particular security will decline, and involves the
sale of a security which the Fund does not own in the hope of purchasing the
same security at a later date at a lower price. To make delivery to the buyer,
the Fund must borrow the security. The Fund is then obligated to return the
security to the lender, and therefore it must subsequently purchase the same
security.
Proceeds from the sale of a borrowed security remain on deposit with the broker
loaning that security. Additional deposits may be required in the event that
the value of the securities sold short exceeds a percentage of the amount on
deposit with the broker. In addition, the borrowing fund is required to
segregate cash, U.S. Government securities or other liquid securities in an
amount equal to the market value of all borrowed securities less any amounts on
deposit with brokers. As a result of these activities, the borrowing fund will
not be deemed to create leverage merely by entering into a short selling
transaction, except to the extent that income is earned on amounts on deposit
with the broker. The amount on deposit with the broker plus the value of the
segregated securities may not exceed 25% of Net Assets.
Determination of class net asset values and financial highlights: All income,
expenses (other than the Class A, Class B and Class C service fees, Class B and
Class C distribution fees and Class I transfer agent fee) and realized and
unrealized gains (losses) are allocated to each class proportionately on a
daily basis for purposes of determining the net asset value of each class.
The per share data (other than the Oregon Tax-Free Fund) was calculated using
average shares outstanding during the period. In addition, Class A, Class B and
Class C net investment income per share data reflect the service fee per share
applicable to Class A, Class B and Class C shares and the distribution fee
applicable to Class B and Class C shares only. Class I net investment income
per share data reflect the transfer agent fee per share applicable to Class I
shares only.
62
<PAGE>
CRABBE HUSON FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
April 30, 1999 (Unaudited)
Class A, Class B and Class C ratios are calculated by adjusting the expense and
net investment income ratios for the Fund for the entire period by the service
fee applicable to Class A, Class B and Class C shares and the distribution fee
applicable to Class B and Class C shares only. Class I ratios are calculated by
adjusting the expense and net investment income ratios for the Fund for the
entire period by the transfer agent fee applicable to Class I shares only.
Federal income taxes: Consistent with the Funds' policy to qualify as a
regulated investment company and to distribute all of its taxable income, no
federal income tax has been accrued.
Interest income, debt discount and premium: Interest income is recorded on the
accrual basis. Original issue discount is accreted to interest income over the
life of a security with a corresponding increase in the cost basis; market
discount is not accreted. Premium is amortized against interest income with a
corresponding decrease in the cost basis.
Distributions to shareholders: Distributions to shareholders (other than the
Oregon Tax-Free) are recorded on the ex-date. The Oregon Tax-Free Fund declares
and records distributions daily and pays monthly.
The amount and character of income and gains to be distributed are determined
in accordance with income tax regulations which may differ from generally
accepted accounting principles. Reclassifications are made to the Funds'
capital accounts to reflect income and gains available for distribution (or
available capital loss carryforwards) under income tax regulations.
Other: Corporate actions are recorded on the ex-date.
The Funds' custodian takes possession through the federal book-entry system of
securities collateralizing repurchase agreements. Collateral is
marked-to-market daily to ensure that the market value of the underlying assets
remains sufficient to protect the Funds. The Funds may experience costs and
delays in liquidating the collateral if the issuer defaults or enters
bankruptcy.
Loans of Portfolio Securities: Each of the Funds may lend portfolio securities,
up to 20% (10% for Oregon Tax-Free Fund) of the value of a Fund's total assets.
The Funds receive total collateral in an amount at least equal to 100% of the
market value of the securities loaned at the inception of the loan. The value
of the portfolio securities loaned is marked to market on a daily basis and
additional collateral is received from the borrower, as necessary, to ensure
that its value is at least equal to 100% of the securities loaned at all times.
Cash collateral received is invested in a short-term instrument, Navigator
Securities Lending Trust-Prime Portfolio, a regulated investment company
offered by State Street Bank and Trust Company. Interest income earned on the
investment of the collateral plus reimbursement for management fees associated
with such investment, in excess of rebates to the borrower, is recorded on an
accrual basis. Income earned on non-cash collateral is based on a percentage of
the market value of the securities loaned and is recorded on an accrual basis.
If the borrower defaults and the value of the portfolio securities increases in
excess of the collateral received or if bankruptcy proceedings commence with
respect to the borrower of the security, realization of the value of the
securities loaned may be delayed or limited.
63
<PAGE>
CRABBE HUSON FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
April 30, 1999 (Unaudited)
Organization Costs: Expenses incurred in connection with the original
organization of the Funds are amortized using the sum of the years digits
method. As of April 30, 1999 the initial organization costs for all Funds
except for Small Cap Fund have been fully amortized. Crabbe Huson Group, Inc.,
the Fund's investment advisor, has agreed that, in the event any of the initial
shares are redeemed during the 60-month period for amortizing the Fund's
organization costs, the Fund will be reimbursed by the investment advisor for
the unamortized balances of such costs in the same proportion as the number of
shares reduced bears to the number of initial shares outstanding at the time of
redemption.
NOTE 3. FEES AND COMPENSATION PAID TO AFFILIATES
Management fee: Crabbe Huson Group, Inc. (the "Advisor"), is the investment
Advisor of each Fund and receives a monthly fee based on each Fund's average
net assets as follows:
Equity Fund
Managed Fund
Real Estate Fund
Small Cap Fund
Special Fund
1.05% of average daily net assets up to $100,000,000
.90 of 1% of average daily net assets between $100,000,000 and $500,000,000
.65 of 1% of average daily net assets over $500,000,000
Income Fund
.80 of 1% of average daily net assets up to $100,000,000
.65 of 1% of average daily net assets between $100,000,000 and $500,000,000
.55 of 1% of average daily nets assets over $500,000,000
Oregon Tax-Free Fund
.55 of 1% of average daily net assets up to $100,000,000
.50 of 1% of average daily net assets between $100,000,000 and $500,000,000
.45 of 1% of average daily net assets over $500,000,000
Contrarian Fund
.85 of 1% of average daily net assets
Administration fee: Colonial Management Associates, Inc. (the Administrator),
an affiliate of the Advisor, provides accounting and other services for a
monthly fee equal to 0.05% annually of the Funds' average net assets. The
Funds' Advisor delegates certain of its administrative duties to the
Administrator.
Bookkeeping fee: The Administrator provides bookkeeping and pricing services
for $27,000 per year plus 0.035% of the Funds' average net assets over $50
million.
64
<PAGE>
CRABBE HUSON FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
April 30, 1999 (Unaudited)
Transfer agent: Liberty Funds Services, Inc. (the Transfer Agent), an affiliate
of the Administrator, provides shareholder services for a monthly fee at the
annual rate of 0.236% for the Class A, Class B and Class C shares (as
applicable to each Fund) for Small Cap, the Special Fund, the Equity Fund, the
Managed Fund and the Real Estate Fund, 0.17% for the Income Fund and 0.13% for
the Oregon Tax-Free Fund, plus certain out-of-pocket expenses. The Transfer
Agent also provides shareholder services for a monthly fee at the annual rate
of 0.0025% for the Class I shares of Small Cap Fund, the Equity Fund, the
Managed Fund and the Income Fund, plus certain out-of-pocket expenses.
Underwriting discounts, service and distribution fees: Liberty Funds
Distributor, Inc. (the Distributor), a subsidiary of the Administrator is the
Funds' principal underwriter. For the six months ended April 30, 1999, the
Funds have been advised that the Distributor retained no net underwriting
discounts on the Income Fund. For the Special, Small Cap, Managed, Equity, Real
Estate, Oregon Tax-Free and Contrarian Funds, the Distributor retained $1,234,
$1,263, $185, $2,932, $1,854, $320 and $15 on sales of the Funds' Class A
shares, respectively. There were no contingent deferred sales charges received
on the Special, Small Cap, Managed, Equity, Oregon Tax-Free, Income and
Contrarian Funds. For the Real Estate Fund, the Distributor received contingent
deferred sales charges (CDSC) of none, $2,151 and none on Class A, Class B and
Class C share redemptions, respectively.
Each Fund has adopted a 12b-1 plan (Plan) which requires it to pay the
Distributor a service fee equal to 0.25% annually on Class A, Class B and Class
C net assets as of the 20th of each month. The Plans also require the payment
of a distribution fee to the Distributor equal to 0.75% annually of the average
net assets attributable to Class B and Class C shares only.
The CDSC and the fees received from the Plans are used principally as repayment
to the Distributor for amounts paid by the Distributor to dealers who sold such
shares.
Expense limits: The Advisor/Administrator have agreed, until further notice, to
waive fees and bear certain Fund expenses to the extent that total Class A,
Class B and Class C expenses (exclusive of service fees, distribution fees,
brokerage commissions, taxes and extraordinary expenses, if any) exceed 1.25%
for the Special Fund, the Small Cap Fund, the Real Estate Fund, 1.17% for the
Equity Fund and the Managed Fund, 0.73% for the Oregon Tax-Free Fund, 0.55% for
the Income Fund and 1.35% for the Contrarian Fund. The Advisor/Administrator
have also agreed, until further notice, to waive fees and bear certain expenses
to the extent that total Class I expenses (exclusive of service fees,
distribution fees, brokerage commissions, taxes and extraordinary expenses, if
any) exceed 1.00% for the Small Cap Fund, the Equity Fund and the Managed Fund
and 0.38% for the Income Fund.
Other: The Funds pay no compensation to their officers, all of whom are
employees of the Advisor or Administrator.
The Funds' Trustees may participate in a deferred compensation plan which may
be terminated at any time. Obligations of the plan will be paid solely out of
the Fund's assets.
65
<PAGE>
CRABBE HUSON FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
April 30, 1999 (Unaudited)
NOTE 4. PORTFOLIO INFORMATION
Investment activity: For the six months ended April 30, 1999, purchases and
sales of investments, other than short-term obligations, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
-------------- --------------
<S> <C> <C>
Contrarian Fund $ 3,987,904 $ 1,058,283
Equity Fund 114,470,762 214,504,574
Managed Fund 46,619,252 66,982,632
Real Estate Fund 6,939,252 10,546,131
Small Cap Fund 1,938,238 21,290,829
Special Fund 367,993 30,187,951
Income Fund 4,182,760 8,249,666
Oregon Tax-Free Fund 868,805 1,887,575
</TABLE>
Unrealized appreciation (depreciation) at April 30, 1999, based on cost of
investments for both financial statement and federal income tax purposes was:
<TABLE>
<CAPTION>
CONTRARIAN EQUITY MANAGED REAL ESTATE
------------ -------------- --------------- ------------
<S> <C> <C> <C> <C>
Gross unrealized appreciation $ 524,702 $20,870,984 $ 7,210,232 $ 714,333
Gross unrealized depreciation (258,307) (4,615,820) (1,213,098) (736,711)
---------- ----------- ------------ ----------
Net unrealized appreciation
(depreciation) $ 266,395 $16,255,164 $ 5,997,134 $ (22,378)
---------- ----------- ------------ ----------
<CAPTION>
SMALL CAP SPECIAL INCOME OREGON TAX-FREE
---------------- ---------------- ------------ ----------------
<S> <C> <C> <C> <C>
Gross unrealized appreciation $ 2,730,543 $ 5,850,293 $ 59,363 $ 977,004
Gross unrealized depreciation (38,277,958) (43,536,680) (23,883) (21,209)
------------- ------------- --------- ---------
Net unrealized appreciation
(depreciation) $ (35,547,415) $ (37,686,387) $ 35,480 $ 955,795
------------- ------------- --------- ---------
</TABLE>
Capital Loss Carryforwards: At October 31, 1998, the Special Fund had capital
loss carryforwards available (to the extent provided in regulations) to offset
future realized gains of $20,747,000 which will expire in 2006, if not
utilized.
Other: There are certain risks arising from geographic concentration in any
state. Certain revenue or tax related events in a state may impair the ability
of certain issuers of municipal securities to pay principal and interest on
their obligations.
The Funds may focus their investments in certain industries, subjecting them to
a greater risk than a fund that is more diversified.
NOTE 5. LINE OF CREDIT
The Funds (other than the Special Fund) may borrow up to 331/3% of its net
assets under a line of credit for temporary or emergency purposes. Any
borrowings bear interest at one of the following options determined at the
inception of the loan: (1) federal funds rate plus 1/2 of 1%, (2) the lending
bank's base rate or (3) LIBOR offshore loan rate plus 1/2 of 1%. For
66
<PAGE>
CRABBE HUSON FUNDS
NOTES TO FINANCIAL STATEMENTS (continued)
April 30, 1999 (Unaudited)
the six months ended April 30, 1999, the Funds had $8,161,084 of borrowings
outstanding.
Special Fund may borrow the lesser of $20 million or 331/3% of its total assets
on a secured basis. When the Special Fund borrows it must put in a segregated
account debt securities, domestic or foreign equities, or commercial paper in
an amount equal to at least 200% of the amount borrowed. The Fund must maintain
the segregated account daily to ensure that its value is at least equal to 200%
of the funds borrowed at all times. No single issuer, other than U.S.
Government and U.S. Government agencies, can comprise in excess of 10% of the
segregated account.
NOTE 6. RESULTS OF SPECIAL MEETING OF SHAREHOLDERS
On December 21, 1998, an adjourned Special Meeting of Shareholders of the
Special Fund was held to approve the following item as described in the Proxy
Statement for the Meeting. On August 4, 1998, the record date for the Meeting,
the Fund had outstanding 15,193,728 shares of common stock. The votes cast at
the Meeting were as follows:
To approve or disapprove an Agreement and Plan of Reorganization for the Fund:
<TABLE>
<CAPTION>
For Against Abstain
- ------------- --------- --------
<S> <C> <C>
9,104,728 567,917 941,880
</TABLE>
67
<PAGE>
<TABLE>
<CAPTION>
CRABBE HUSON CONTRARIAN FUND
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OF EACH CLASS OUTSTANDING THROUGHOUT EACH PERIOD ARE AS FOLLOWS:
(Unaudited)
----------------------------------------------
PERIOD ENDED 04/30/1999(b)
----------------------------------------------
Class A Class B Class C
----------------------------------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ........................... $ 10.000 $ 10.000 $ 10.000
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ....................................... 0.005 (0.027) (0.027)
Net Realized & Unrealized Gain (Loss) on Investments ........... 1.275 1.277 1.277
----------------------------------------------
Total from Investment Operations ............................. 1.280 1.250 1.250
----------------------------------------------
Net Asset Value, End of Period ................................. $ 11.280 $ 11.250 $11.250
==============================================
Total Return(c)(d)(e) .......................................... 12.80% 12.50% 12.50%
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses(f)(g) ................................................. 1.60% 2.35% 2.35%
Net Investment Income(f)(g) .................................... 0.12% (0.63)% (0.63)%
Fees and expenses waived or borne by the Advisor(f)(g) ......... 3.80% 3.80% 3.80%
Portfolio Turnover Rate(e) ..................................... 47% 47% 47%
Net Assets, End of Period (000's) .............................. $ 3,566 $ 1 $ 1
</TABLE>
- --------------
(a) Per share data was calculated using average shares outstanding during the
period.
(b) The Fund commenced investment operations on December 1, 1998.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(g) Annualized.
68
<PAGE>
<TABLE>
<CAPTION>
CRABBE HUSON EQUITY FUND
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
-------------------------
SIX MONTHS ENDED
04/30/1999
-------------------------
Class A
-------------------------
<S> <C>
Net Asset Value, Beginning of Period ..................... $ 16.600
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ................................. 0.008
Net Realized & Unrealized Gain (Loss) on Investments ..... 2.932
--------
Total from Investment Operations ....................... 2.940
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ................. (0.099)
Distributions from Capital Gains ......................... (0.581)
--------
Total Distributions .................................... (0.680)
--------
Net Asset Value, End of Period ........................... $ 18.860
========
Total Return(e)(f) ....................................... 18.34%(f)
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ................................................. 1.42%(g)(h)
Net Investment Income .................................... 0.13%(g)(h)
Fees and expenses waived or borne by the Advisor ......... 0.29%(g)(h)
Portfolio Turnover Rate .................................. 58%(f)
Net Assets, End of Period (000's) ........................ $139,498
<CAPTION>
CRABBE HUSON EQUITY FUND
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
----------------------------------------------------
SIX MONTHS ENDED 04/30/1999
----------------------------------------------------
Class B(b) Class C(b)
------------------------- -------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period ..................... $16.440 $16.440
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ................................. 0.046 0.046
Net Realized & Unrealized Gain (Loss) on Investments ..... 2.314 2.314
------- -------
Total from Investment Operations ....................... 2.360 2.360
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ................. -- --
Distributions from Capital Gains ......................... -- --
------- -------
Total Distributions .................................... -- --
------- -------
Net Asset Value, End of Period ........................... $18.800 $18.800
======= =======
Total Return(e)(f) ....................................... 14.36%(f) 14.36%(f)
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ................................................. 1.42%(g)(h) 1.42%(g)(h)
Net Investment Income .................................... 0.09%(g)(h) 0.09%(g)(h)
Fees and expenses waived or borne by the Advisor ......... 0.32%(g)(h) 0.32%(g)(h)
Portfolio Turnover Rate .................................. 58%(f) 58%(f)
Net Assets, End of Period (000's) ........................ $ 3 $ 1
<CAPTION>
CRABBE HUSON EQUITY FUND
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
-----------------------
SIX MONTHS ENDED
04/30/1999 YEAR ENDED 10/31/1998
--------------------- ---------------------------
Class I Class A(c) Class I(c)
-------------- ---------- -----------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 16.650 $ 23.320 $ 23.400
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------
Net Investment Income(a) ................................. 0.045 0.070 0.170
Net Realized & Unrealized Gain (Loss) on Investments ..... 2.928 (2.000) (2.030)
-------- -------- ----------
Total from Investment Operations ....................... 2.973 (1.930) (1.860)
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ................. (0.182) (0.050) (0.150)
Distributions from Capital Gains ......................... (0.581) (4.740) (4.740)
-------- -------- ----------
Total Distributions .................................... (0.763) (4.790) (4.890)
-------- -------- ----------
Net Asset Value, End of Period ........................... $ 18.860 $ 16.600 $ 16.650
======== ======== ==========
Total Return(e)(f) ....................................... 18.57%(f) (10.08)% (9.72) %
RATIOS TO AVERAGE NET ASSETS
- -----------------------------
Expenses ................................................. 1.00%(g)(h) 1.39%(i) 1.01%(i)
Net Investment Income .................................... 0.55%(g)(h) 0.38%(i) 0.76%(i)
Fees and expenses waived or borne by the Advisor ......... 0.23%(g)(h) 0.03% 0.12%
Portfolio Turnover Rate .................................. 58%(f) 1% 1%
Net Assets, End of Period (000's) ........................ $ 18,548 $226,628 $ 27,672
</TABLE>
- --------------
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Class B and Class C shares were initially offered on January 27, 1999. Per
share amounts reflect activity from that date.
(c) Effective October 19, 1998, the Primary and Institutional shares were
redesignated Class A and Class I shares, respectively.
(d) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(h) Annualized.
(i) Includes expenses paid indirectly through directed brokerage and certain
expense offset arrangements.
69
<PAGE>
CRABBE HUSON EQUITY FUND
FINANCIAL HIGHLIGHTS (Continued)
<TABLE>
<CAPTION>
YEAR ENDED 10/31/1997
--------------------------------
Class A Class I
------------- --------------
<S> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 19.500 $19.510
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ................................. 0.070 0.210
Net Realized & Unrealized Gain (Loss) on Investments ..... 5.360 5.310
-------- -------
Total from Investment Operations ....................... 5.430 5.520
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ................. (0.070) (0.090)
Distributions from Capital Gains ......................... (1.540) (1.540)
-------- -------
Total Distributions .................................... (1.610) (1.630)
-------- -------
Net Asset Value, End of Period ........................... $ 23.320 $23.400
======== =======
Total Return(c)(d) ....................................... 29.87% 30.35%
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ................................................. 1.42%(f) 1.00%(f)
Net Investment Income .................................... 0.29%(f) 0.71%(f)
Fees and expenses waived or borne by the Advisor ......... 0.02% 0.23%
Portfolio Turnover Rate .................................. 129% 129%
Net Assets, End of Period (000's) ........................ $380,047 $24,084
<CAPTION>
CRABBE HUSON EQUITY FUND
FINANCIAL HIGHLIGHTS (Continued)
YEAR YEAR
ENDED ENDED
YEAR ENDED 10/31/1996 10/31/1995 10/31/94
--------------------------------------- ------------ ------------------
Class A Class I (b)
------------------- ---------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 18.170 $19.820 $ 16.440 $ 16.080
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ................................. 0.110 0.000 0.220 0.190
Net Realized & Unrealized Gain (Loss) on Investments ..... 2.330 (0.310) 1.750 0.570
-------- ------- -------- --------
Total from Investment Operations ....................... 2.440 (0.310) 1.970 0.760
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ................. (0.170) 0.000 (0.090) (0.040)
Distributions from Capital Gains ......................... (0.940) 0.000 (0.150) (0.360)
-------- ------- -------- --------
Total Distributions .................................... (1.110) 0.000 (0.240) (0.400)
-------- ------- -------- --------
Net Asset Value, End of Period ........................... $ 19.500 $19.510 $ 18.170 $ 16.440
======== ======= ======== ========
Total Return(c)(d) ....................................... 13.78% (1.56)%(e) 13.37% 7.89 %
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ................................................. 1.38 %(f) 1.00 %(f)(g) 1.40% 1.45 %
Net Investment Income .................................... 0.56 %(f) 0.15 %(f)(g) 1.30% 1.18 %
Fees and expenses waived or borne by the Advisor ......... -- 0.58 %(g) 0.02% 0.11 %
Portfolio Turnover Rate .................................. 117% 117% 92% 106%
Net Assets, End of Period (000's) ........................ $436,578 $ 4,415 $387,184 $153,105
</TABLE>
- --------------
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Class I shares were initially offered on October 3, 1996. Per share amounts
reflect activity from that date.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(e) Not annualized.
(f) Includes expenses paid indirectly through directed brokerage and certain
expense offset arrangements.
(g) Annualized.
70
<PAGE>
<TABLE>
<CAPTION>
CRABBE HUSON MANAGED INCOME & EQUITY FUND
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
-------------------------
SIX MONTHS ENDED
04/30/1999
-------------------------
Class A
-------------------------
<S> <C>
Net Asset Value, Beginning of Period ..................... $12.810
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ................................. 0.103
Net Realized & Unrealized Gain (Loss) on Investments ..... 1.314
-------
Total from Investment Operations ....................... 1.417
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ................. (0.081)
Distributions from Capital Gains ......................... (0.276)
-------
Total Distributions .................................... (0.357)
-------
Net Asset Value, End of Period ........................... $13.870
=======
Total Return(d)(e) ....................................... 11.38%(f)
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ................................................. 1.42%(g)(h)
Net Investment Income .................................... 1.96%(g)(h)
Fees and expenses waived or borne by the Advisor ......... 0.29%(g)(h)
Portfolio Turnover Rate .................................. 54%(f)
Net Assets, End of Period (000's) ........................ $49,238
<CAPTION>
CRABBE HUSON MANAGED INCOME & EQUITY FUND
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
----------------------------------------------------
SIX MONTHS ENDED 04/30/1999
----------------------------------------------------
Class B(b) Class C(b)
------------------------- -------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period ..................... $12.760 $12.760
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ................................. 0.032 0.032
Net Realized & Unrealized Gain (Loss) on Investments ..... 1.068 1.068
------- -------
Total from Investment Operations ....................... 1.230 1.230
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ................. -- --
Distributions from Capital Gains ......................... -- --
------- -------
Total Distributions .................................... -- --
------- -------
Net Asset Value, End of Period ........................... $13.860 $13.860
======= =======
Total Return(d)(e) ....................................... 8.62%(f) 8.62%(f)
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ................................................. 1.17%(g)(h) 1.17%(g)(h)
Net Investment Income .................................... 2.24%(g)(h) 2.24%(g)(h)
Fees and expenses waived or borne by the Advisor ......... 0.22%(g)(h) 0.22%(g)(h)
Portfolio Turnover Rate .................................. 54%(f) 54%(f)
Net Assets, End of Period (000's) ........................ $ 1 $ 1
<CAPTION>
CRABBE HUSON MANAGED INCOME & EQUITY FUND
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
-------------------------
SIX MONTHS ENDED
04/30/1999 YEAR ENDED 10/31/1998
------------------------- -----------------------------------------
Class I Class A(c) Class I(c)
------------------------- -------------------- --------------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ..................... $12.810 $14.940 $14.940
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ................................. 0.151 0.290 0.320
Net Realized & Unrealized Gain (Loss) on Investments ..... 1.299 (0.370) (0.370)
------- ------- --------
Total from Investment Operations ....................... 1.450 (0.080) (0.050)
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ................. (0.134) (0.240) (0.270)
Distributions from Capital Gains ......................... (0.276) (1.810) (1.810)
------- ------- --------
Total Distributions .................................... (0.410) (2.050) (2.080)
------- ------- --------
Net Asset Value, End of Period ........................... $13.850 $12.810 $12.810
======= ======= ========
Total Return(d)(e) ....................................... 11.69%(f) (0.69)% (0.44)%
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ................................................. 1.00%(g)(h) 1.32%(i) 1.01%(i)
Net Investment Income .................................... 2.38%(g)(h) 2.27%(i) 2.58%(i)
Fees and expenses waived or borne by the Advisor ......... 0.22%(g)(h) 0.16% 0.24%
Portfolio Turnover Rate .................................. 54%(f) 115% 115%
Net Assets, End of Period (000's) ........................ $26,643 $ 67,681 $ 33,723
</TABLE>
- --------------
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Class B and Class C shares were initially offered on January 27, 1999. Per
share amounts reflect activity from that date.
(c) Effective October 19, 1998, the Primary and Institutional shares were
redesignated Class A and Class I shares, respectively.
(d) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(h) Annualized.
(i) Includes expenses paid indirectly through directed brokerage and certain
expense offset arrangements.
71
<PAGE>
<TABLE>
<CAPTION>
CRABBE HUSON MANAGED INCOME & EQUITY FUND
FINANCIAL HIGHLIGHTS (Continued)
YEAR ENDED 10/31/1997
---------------------------------------
Class A Class I
------------------- -------------------
<S> <C> <C>
Net Asset Value, Beginning of Period ..................... $13.390 $13.390
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ................................. 0.320 0.420
Net Realized & Unrealized Gain (Loss) on Investments ..... 2.290 2.240
------- -------
Total from Investment Operations ....................... 2.610 2.660
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ................. (0.320) (0.370)
Distributions from Capital Gains ......................... (0.740) (0.740)
------- -------
Total Distributions .................................... (1.060) (1.110)
------- -------
Net Asset Value, End of Period ........................... $14.940 $14.940
======= =======
Total Return(c)(d) ....................................... 20.60% 21.18%
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ................................................. 1.42%(f) 1.00%(f)
Net Investment Income .................................... 2.25%(f) 2.70%(f)
Fees and expenses waived or borne by the Advisor ......... 0.13% 0.42%
Portfolio Turnover Rate .................................. 119% 119%
Net Assets, End of Period (000's) ........................ $95,960 $28,598
<CAPTION>
CRABBE HUSON MANAGED INCOME & EQUITY FUND
FINANCIAL HIGHLIGHTS (Continued)
YEAR YEAR
ENDED ENDED
YEAR ENDED 10/31/1996 10/31/95 10/31/94
--------------------------------------------- ------------ ------------
Class A Class I(b)
------------------- ---------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 13.640 $ 13.380 $ 12.870 $ 13.520
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ................................. 0.300 0.010 0.340 0.300
Net Realized & Unrealized Gain (Loss) on Investments ..... 0.880 0.080 1.210 (0.080)
-------- -------- -------- --------
Total from Investment Operations ....................... 1.180 0.090 1.550 0.220
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ................. 0.300 (0.080) (0.330) (0.290)
Distributions from Capital Gains ......................... 1.130 -- (0.450) (0.580)
-------- -------- -------- --------
Total Distributions .................................... 1.430 (0.080) (0.780) (0.870)
-------- -------- -------- --------
Net Asset Value, End of Period ........................... $ 13.390 $ 13.390 $ 13.640 $ 12.870
======== ======== ======== ========
Total Return(c)(d) ....................................... 8.96% 0.59%(e) 13.00% 2.66%
RATIOS TO AVERAGE NET ASSETS
- -----------------------------
Expenses ................................................. 1.47%(f) 1.00%(f)(g) 1.48% 1.44%
Net Investment Income .................................... 2.22%(f) 2.87%(f)(g) 2.57% 2.30%
Fees and expenses waived or borne by the Advisor ......... -- 1.00%(g) 0.01% 0.08%
Portfolio Turnover Rate .................................. 252% 252% 226% 149%
Net Assets, End of Period (000's) ........................ $125,018 $ 2,526 $136,530 $110,152
</TABLE>
- --------------
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Class I shares were initially offered on October 3, 1996. Per share amounts
reflect activity from that date.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(e) Not annualized.
(f) Includes expenses paid indirectly through directed brokerage and certain
expense offset arrangements.
(g) Annualized.
72
<PAGE>
<TABLE>
<CAPTION>
CRABBE HUSON REAL ESTATE INVESTMENT FUND
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
-------------------------
SIX MONTHS ENDED
04/30/1999
-------------------------
Class A
-------------------------
<S> <C>
Net Asset Value, Beginning of Period ......................... $10.440
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ..................................... 0.296
Net Realized & Unrealized Gain (Loss) on Investments ......... 0.586
-------
Total from Investment Operations ........................... 0.882
LESS DISTRIBUTIONS
- -------------------
Distributions from Net Investment Income ..................... (0.157)
Distributions from Capital Gains ............................. (0.175)
-------
Total Distributions ........................................ (0.332)
-------
Net Asset Value, End of Period ............................... $10.990
=======
Total Return(c)(d) ........................................... 8.69%(e)
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ..................................................... 1.50%(f)(g)
Net Investment Income ........................................ 6.06%(f)(g)
Fees and expenses waived or borne by the Advisor ............. 2.04%(f)(g)
Portfolio Turnover Rate ...................................... 47%(e)
Net Assets, End of Period (000's) ............................ $13,194
<CAPTION>
CRABBE HUSON REAL ESTATE INVESTMENT FUND
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
----------------------------------------------------
SIX MONTHS ENDED 04/30/1999
----------------------------------------------------
Class B(b) Class C(b)
------------------------- -------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period ......................... $10.580 $ 10.580
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ..................................... 0.017 0.017
Net Realized & Unrealized Gain (Loss) on Investments ......... 0.399 0.399
------- --------
Total from Investment Operations ........................... 0.416 0.416
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ..................... (0.026) (0.026)
Distributions from Capital Gains ............................. -- --
------- --------
Total Distributions ........................................ (0.026) (0.026)
------- --------
Net Asset Value, End of Period ............................... $10.970 $ 10.970
======= ========
Total Return(c)(d) ........................................... 3.96%(e) 3.96%(e)
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ..................................................... 2.25%(f)(g) 2.25%(f)(g)
Net Investment Income ........................................ 6.54%(f)(g) 6.54%(f)(g)
Fees and expenses waived or borne by the Advisor ............. 0.89%(f)(g) 0.89%(f)(g)
Portfolio Turnover Rate ...................................... 47%(e) 47%(e)
Net Assets, End of Period (000's) ............................ $ 393 $ 5
<CAPTION>
CRABBE HUSON REAL ESTATE INVESTMENT FUND
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
-------------------------
SIX MONTHS ENDED
04/30/1999
-------------------------
Class Z(b)
-------------------------
<S> <C>
Net Asset Value, Beginning of Period ......................... $10.440
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ..................................... 0.020
Net Realized & Unrealized Gain (Loss) on Investments ......... 0.562
-------
Total from Investment Operations ........................... 0.582
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ..................... (0.032)
Distributions from Capital Gains ............................. --
-------
Total Distributions ........................................ (0.032)
-------
Net Asset Value, End of Period ............................... $10.990
=======
Total Return(c)(d) ........................................... 8.70%(e)
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ..................................................... 1.25%(f)(g)
Net Investment Income ........................................ 7.75%(f)(g)
Fees and expenses waived or borne by the Advisor ............. 0.75%(f)(g)
Portfolio Turnover Rate ...................................... 47%(e)
Net Assets, End of Period (000's) ............................ $ 245
</TABLE>
- --------------
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Class B and Class C shares were initially offered on January 27, 1999.
Class Z shares were initially offered on January 29, 1999. Per share amounts
reflect activity from that date.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(g) Annualized.
73
<PAGE>
<TABLE>
<CAPTION>
CRABBE HUSON REAL ESTATE INVESTMENT FUND
FINANCIAL HIGHLIGHTS (Continued)
YEAR YEAR
ENDED ENDED
10/31/98 10/31/97
------------ ------------
Class A(b)
-----------------------
<S> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 14.090 $ 11.580
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ................................. 0.400 0.380
Net Realized & Unrealized Gain (Loss) on Investments ..... (2.000) 3.020
--------- ---------
Total from Investment Operations ....................... (1.600) 3.400
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ................. (0.360) (0.380)
Distributions from Capital Gains ......................... (1.690) (0.510)
--------- ---------
Total Distributions .................................... (2.050) (0.890)
--------- ---------
Net Asset Value, End of Period ........................... $ 10.440 $ 14.090
========= =========
Total Return(d)(e) ....................................... (13.39) % 30.56%
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ................................................. 1.50% 1.50%
Net Investment Income .................................... 3.71% 2.93%
Fees and expenses waived or borne by the Advisor ......... 0.42% 0.26%
Portfolio Turnover Rate .................................. 97% 80%
Net Assets, End of Period (000's) ........................ $ 17,423 $ 34,259
<CAPTION>
CRABBE HUSON REAL ESTATE INVESTMENT FUND
FINANCIAL HIGHLIGHTS (Continued)
YEAR YEAR PERIOD
ENDED ENDED ENDED
10/31/96 10/31/95 10/31/94(c)
------------- ------------- ---------------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 9.690 $ 9.500 $ 10.000
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ................................. 0.380 0.440 0.370
Net Realized & Unrealized Gain (Loss) on Investments ..... 2.010 0.310 (0.640)
--------- --------- --------
Total from Investment Operations ....................... 2.390 0.750 (0.270)
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ................. (0.380) (0.440) (0.230)
Distributions from Capital Gains ......................... (0.120) (0.120) --
--------- --------- --------
Total Distributions .................................... (0.500) (0.560) (0.230)
--------- --------- --------
Net Asset Value, End of Period ........................... $ 11.580 $ 9.690 $ 9.500
========= ========= ========
Total Return(d)(e) ....................................... 25.39% 8.31% (3.25)%(f)
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ................................................. 1.50% 1.50% 1.01%(g)
Net Investment Income .................................... 3.59% 4.59% 6.30%(g)
Fees and expenses waived or borne by the Advisor ......... 0.38% 0.39% 1.02%
Portfolio Turnover Rate .................................. 120% 60% 43%
Net Assets, End of Period (000's) ........................ $ 20,649 $ 18,986 $ 18,280
</TABLE>
- --------------
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Effective October 19, 1998, the Primary shares were redesignated Class A
shares.
(c) The Fund commenced investment operations on April 4, 1994.
(d) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(f) Not annualized.
(g) Annualized.
74
<PAGE>
<TABLE>
<CAPTION>
CRABBE HUSON SMALL CAP FUND
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
---------------------------------------------------
SIX MONTHS ENDED
04/30/1999
---------------------------------------------------
Class A Class I
------------------------- -------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period ......................... $ 8.650 $ 8.680
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income (Loss)(a) .............................. (0.039) (0.017)
Net Realized & Unrealized Gain (Loss) on Investments ......... 0.170 0.158
------- --------
Total from Investment Operations ........................... 0.131 0.141
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ..................... -- --
Distributions in excess of Net Investment Income ............. -- --
Distributions from Capital Gains ............................. (0.051) (0.051)
------- --------
Total Distributions ........................................ (0.051) (0.051)
------- --------
Net Asset Value, End of Period ............................... $ 8.730 $ 8.770
======= ========
Total Return(c)(d) ........................................... 1.50%(e) 1.61%(e)
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ..................................................... 1.50%(f)(g) 1.00%(f)(g)
Net Investment Income ........................................ (0.92)%(f)(g) (0.42)%(f)(g)
Fees and expenses waived or borne by the Advisor ............. 0.44%(f)(g) 0.45%(f)(g)
Portfolio Turnover Rate ...................................... 3%(e) 3%(e)
Net Assets, End of Period (000's) ............................ $ 8,190 $ 51,308
<CAPTION>
CRABBE HUSON SMALL CAP FUND
FINANCIAL HIGHLIGHTS (Continued)
YEAR ENDED
10/31/1998
---------------------------------------
Class A(b) Class I(b)
------------------- -------------------
<S> <C> <C>
Net Asset Value, Beginning of Period ......................... $ 15.480 $15.530
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------
Net Investment Income (Loss)(a) .............................. (0.030) 0.030
Net Realized & Unrealized Gain (Loss) on Investments ......... (5.560) (5.580)
-------- -------
Total from Investment Operations ........................... (5.590) (5.550)
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ..................... -- (0.010)
Distributions in excess of Net Investment Income ............. -- (0.050)
Distributions from Capital Gains ............................. (1.240) (1.240)
-------- -------
Total Distributions ........................................ (1.240) (1.300)
-------- -------
Net Asset Value, End of Period ............................... $ 8.650 $ 8.680
======== =======
Total Return(c)(d) ........................................... (38.64)% (38.37)%
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ..................................................... 1.37%(f) 1.00%(f)
Net Investment Income ........................................ (0.65)%(f) (0.28)%(f)
Fees and expenses waived or borne by the Advisor ............. 0.25%(f) 0.21%(f)
Portfolio Turnover Rate ...................................... 30% 30%
Net Assets, End of Period (000's) ............................ $ 14,462 $62,539
</TABLE>
- --------------
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Effective October 19, 1998, the Primary and Institutional shares were
redesignated Class A and Class I shares, respectively.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(g) Annualized.
75
<PAGE>
<TABLE>
<CAPTION>
CRABBE HUSON SMALL CAP FUND
FINANCIAL HIGHLIGHTS (Continued)
YEAR ENDED
10/31/1997
---------------------------------------
Class A Class I
------------------- -------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $11.020 $11.010
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income (Loss)(a) .............................. -- 0.070
Net Realized & Unrealized Gain (Loss) on Investments ......... 4.620 4.620
------ ------
Total from Investment Operations ........................... 4.620 4.690
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ..................... (0.020) (0.030)
Distributions in excess of Net Investment Income ............. -- --
Distributions from Capital Gains ............................. (0.140) (0.140)
------ ------
Total Distributions ........................................ (0.160) (0.170)
------ ------
Net Asset Value, End of Period ............................... $15.480 $15.530
======= =======
Total Return(c)(d) ........................................... 42.38% 43.11%
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ..................................................... 1.50%(f) 1.00%(f)
Net Investment Income ........................................ 0.03%(f) 0.60%(f)
Fees and expenses waived or borne by the Advisor ............. 0.23% 0.28%
Portfolio Turnover Rate ...................................... 65% 65%
Net Assets, End of Period (000's) ............................ $42,563 $71,655
<CAPTION>
CRABBE HUSON SMALL CAP FUND
FINANCIAL HIGHLIGHTS (Continued)
PERIOD ENDED
10/31/96(c)
---------------------------------------------------
Class A Class I
------------------------- -------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period $10.000 $11.050
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income (Loss)(a) .............................. 0.030 --
Net Realized & Unrealized Gain (Loss) on Investments ......... 0.990 (0.040)
------- -------
Total from Investment Operations ........................... 1.020 (0.040)
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ..................... -- --
Distributions in excess of Net Investment Income ............. -- --
Distributions from Capital Gains ............................. -- --
------- -------
Total Distributions ........................................ -- --
------- -------
Net Asset Value, End of Period ............................... $11.020 $11.010
======= =======
Total Return(c)(d) ........................................... 10.20% (0.36)%(e)
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ..................................................... 1.51%(f)(g) 1.00%(f)(g)
Net Investment Income ........................................ 0.70%(f)(g) (0.43)%(f)(g)
Fees and expenses waived or borne by the Advisor ............. 0.81% 2.55%
Portfolio Turnover Rate ...................................... 39% 39%
Net Assets, End of Period (000's) ............................ $19,156 $ 1,514
</TABLE>
- --------------
(a) Per share data was calculated using average shares outstanding during the
period.
(b) The Fund commenced investment operations on October 10, 1996.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(e) Not annualized.
(f) Includes expenses paid indirectly through directed brokerage and certain
expense offset arrangements.
(g) Annualized.
76
<PAGE>
THE CRABBE HUSON SPECIAL FUND
FINANCIAL HIGHLIGHTS (Continued)
For the year or period ending on or after 10/31/96, calculations are based on a
share outstanding during the period.
For years or periods ending prior to 11/1/95, calculations are based on the
weighted average number of shares outstanding for each period.
<TABLE>
<CAPTION>
(Unaudited)
-------------------------
SIX MONTHS YEAR
ENDED ENDED
4/30/99 10/31/98
------------------------- -----------------
Class A Class A(b)
------------------------- -----------------
<S> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 8.100 $ 16.800
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ................................. (0.035) 0.070
Net Realized & Unrealized ................................
Gain (Loss) on Investments ............................... 0.655 (6.920)
------- --------
Total from Investment Operations ....................... 0.620 (6.850)
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ................. -- (0.140)
Return of Capital ........................................ -- (0.020)
Distributions in excess of Net Investment Income ......... -- --
Distributions from Capital Gains ......................... -- (1.690)
------- --------
Total Distributions .................................... -- (1.850)
------- --------
Net Asset Value, End of Period ........................... $ 8.720 $ 8.100
======= ========
Total Return(c)(d) ....................................... 7.65%(e) (44.94)%
RATIOS/SUPPLEMENTAL DATA
- ------------------------
Expenses ................................................. 1.50%(f)(g) 1.50%(f)
Net Investment Income .................................... (0.91)%(f)(g) 0.40%(f)
Fees and expenses waived or borne by the Advisor ......... 0.88%(f)(g) 0.34%(f)
Portfolio Turnover Rate .................................. (i)(e) 22%
Net Assets, End of Period (000's) ........................ $79,337 $104,504
<CAPTION>
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
10/31/97 10/31/96 10/31/95 10/31/94
------------ ----------------- ----------- ------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ..................... $ 13.710 $ 13.800 $ 14.080 $ 11.820
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ................................. 0.150 0.140 0.270 0.050
Net Realized & Unrealized ................................
Gain (Loss) on Investments ............................... 3.410 0.550 (0.290) 2.300
-------- -------- -------- --------
Total from Investment Operations ....................... 3.560 0.690 (0.020) 2.350
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ................. (0.140) (0.210) (0.020) --
Return of Capital ........................................ -- -- -- --
Distributions in excess of Net Investment Income ......... -- -- -- (0.090)
Distributions from Capital Gains ......................... (0.330) (0.570) (0.240) --
-------- -------- -------- --------
Total Distributions .................................... (0.470) (0.780) (0.260) (0.090)
-------- -------- -------- --------
Net Asset Value, End of Period ........................... $ 16.800 $ 13.710 $ 13.800 $ 14.080
======== ======== ======== ========
Total Return(c)(d) ....................................... 26.62% 5.03% 1.78% 22.40%
RATIOS/SUPPLEMENTAL DATA
- ------------------------
Expenses ................................................. 1.50% 1.37%(h) 1.40% 1.44%
Net Investment Income .................................... 0.86% 0.72%(h) 1.95% 0.39%
Fees and expenses waived or borne by the Advisor ......... 0.08% -- -- 0.10%
Portfolio Turnover Rate .................................. 33% 33% 123% 146%
Net Assets, End of Period (000's) ........................ $396,335 $481,039 $878,560 $319,811
</TABLE>
- ------------------------------
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Effective October 19, 1998, the Primary shares were redesignated Class A
shares.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(g) Annualized.
(h) Includes expenses paid indirectly through directed brokerage and certain
expense offset arrangements.
(i) Rounds to less than one.
77
<PAGE>
<TABLE>
<CAPTION>
CRABBE HUSON CONTRARIAN INCOME FUND
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
---------------------------------------------------
SIX MONTHS
ENDED
4/30/99
---------------------------------------------------
Class A Class I
------------------------- -------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period ................. $10.880 $10.900
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ............................. 0.293 0.315
Net Realized & Unrealized ............................
Gain (Loss) on Investments ........................... (0.187) (0.185)
------- -------
Total from Investment Operations ................... 0.106 0.130
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ............. (0.311) (0.355)
Distributions in excess of Net Investment Income ..... -- --
Distributions from Capital Gains ..................... (0.195) (0.195)
------- -------
Total Distributions ................................ (0.506) (0.550)
------- -------
Net Asset Value, End of Period ....................... $10.480 $10.480
======= =======
Total Return(d)(e) ................................... 1.00%(f) 1.22%(f)
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ............................................. 0.80%(g)(h) 0.38%(g)(h)
Net Investment Income ................................ 5.53%(g)(h) 5.95%(g)(h)
Fees and expenses waived or borne by the Advisor ..... 1.89%(g)(h) 1.82%(g)(h)
Portfolio Turnover Rate .............................. 65%(f) 65%(f)
Net Assets, End of Period (000's) .................... $ 4,456 $ 100
<CAPTION>
CRABBE HUSON CONTRARIAN INCOME FUND
FINANCIAL HIGHLIGHTS (Continued)
YEAR YEAR YEAR
ENDED ENDED ENDED
10/31/98 10/31/97 10/31/96
----------------------------------- ---------- ------------
Class A(b) Class I(c)
---------------- -----------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ................. $10.580 $10.990 $10.200 $10.260
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ............................. 0.500 0.020 0.620 0.540
Net Realized & Unrealized ............................
Gain (Loss) on Investments ........................... 0.590 (0.070) 0.380 (0.050)
------- ------- ------- -------
Total from Investment Operations ................... 1.090 (0.050) 1.000 0.490
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ............. (0.790) (0.040) (0.620) (0.550)
Distributions in excess of Net Investment Income ..... -- -- -- --
Distributions from Capital Gains ..................... -- -- -- --
------- ------- ------- -------
Total Distributions ................................ (0.790) (0.040) (0.620) (0.550)
------- ------- ------- -------
Net Asset Value, End of Period ....................... $10.880 $10.900 $10.580 $10.200
======= ======= ======= =======
Total Return(d)(e) ................................... 11.21% (0.45)%(f) 10.25% 4.94%
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ............................................. 0.80%(g) 0.38%(g)(h) 0.80% 0.80%
Net Investment Income ................................ 5.36%(g) 5.88%(g)(h) 5.96% 5.31%
Fees and expenses waived or borne by the Advisor ..... 1.56%(g) 4.62%(g)(h) 1.98% 1.49%
Portfolio Turnover Rate .............................. 158% 158% 56% 469%
Net Assets, End of Period (000's) .................... $ 8,799 $ 100 $ 3,248 $ 4,694
<CAPTION>
CRABBE HUSON CONTRARIAN INCOME FUND
FINANCIAL HIGHLIGHTS (Continued)
YEAR YEAR
ENDED ENDED
10/31/95 10/31/94
------------- --------------
<S> <C> <C>
Net Asset Value, Beginning of Period ................. $ 9.710 $ 10.750
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income(a) ............................. 0.530 0.500
Net Realized & Unrealized ............................
Gain (Loss) on Investments ........................... 0.580 (0.760)
------- ----------
Total from Investment Operations ................... 1.110 (0.260)
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ............. (0.530) (0.500)
Distributions in excess of Net Investment Income ..... (0.030) (0.010)
Distributions from Capital Gains ..................... -- (0.270)
------- ----------
Total Distributions ................................ (0.560) (0.780)
------- ----------
Net Asset Value, End of Period ....................... $10.260 $ 9.710
======= ==========
Total Return(d)(e) ................................... 11.92% (2.71)%
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ............................................. 0.80% 0.80%
Net Investment Income ................................ 5.47% 4.92%
Fees and expenses waived or borne by the Advisor ..... 1.15% 1.36%
Portfolio Turnover Rate .............................. 543% 307%
Net Assets, End of Period (000's) .................... $ 7,190 $ 5,273
</TABLE>
- --------------
(a) Per share data was calculated using average shares outstanding during the
period.
(b) Effective October 19, 1998, the Primary shares were redesignated Class A
shares.
(c) Class I shares were initially offered on October 19, 1998. Per share
amounts reflect activity from that date.
(d) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(e) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(f) Not annualized.
(g) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(h) Annualized.
78
<PAGE>
<TABLE>
<CAPTION>
CRABBE HUSON OREGON TAX-FREE FUND
FINANCIAL HIGHLIGHTS (Continued)
(Unaudited)
---------------------------------------------------
SIX MONTHS
ENDED
4/30/99
---------------------------------------------------
Class A Class B(a)
------------------------- -------------------------
<S> <C> <C>
Net Asset Value, Beginning of Period ................. $13.030 $12.750
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income ................................ 0.274 0.119
Net Realized & Unrealized ............................
Gain (Loss) on Investments ........................... (0.453) (0.180)
------- -------
Total from Investment Operations ................... (0.179) (0.061)
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ............. (0.271) (0.109)
Distributions from Capital Gains ..................... -- --
------- -------
Total Distributions ................................ (0.271) (0.109)
------- -------
Net Asset Value, End of Period ....................... $12.580 $12.580
======= =======
Total Return(c)(d) ................................... 0.97%(e) (0.48)%(e)
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ............................................. 0.98%(f)(g) 1.93%(f)(g)
Net Investment Income ................................ 4.05%(f)(g) 3.28%(f)(g)
Fees and expenses waived or borne by the Advisor ..... 0.34%(f)(g) 0.36%(f)(g)
Portfolio Turnover Rate .............................. 18%(e) 18%(e)
Net Assets, End of Period (000's) .................... $24,055 $ 1
<CAPTION>
CRABBE HUSON OREGON TAX-FREE FUND
FINANCIAL HIGHLIGHTS (Continued)
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
10/31/98 10/31/97 10/31/96 10/31/95 10/31/94
-------------- ---------- --------- ------------ ----------
Class A(b)
--------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ................. $12.780 $12.500 $12.620 $11.990 $ 12.800
INCOME FROM INVESTMENT OPERATIONS
- ---------------------------------
Net Investment Income ................................ 0.280 0.540 0.540 0.550 0.540
Net Realized & Unrealized ............................
Gain (Loss) on Investments ........................... 0.270 0.280 (0.120) 0.700 (0.800)
------- ------- ------- ------- ---------
Total from Investment Operations ................... 0.550 0.820 0.420 1.250 (0.260)
LESS DISTRIBUTIONS
- ------------------
Distributions from Net Investment Income ............. (0.270) (0.470) (0.540) (0.550) (0.540)
Distributions from Capital Gains ..................... (0.030) (0.070) -- (0.070) (0.010)
------- ------- ------- ------- ---------
Total Distributions ................................ (0.300) (0.540) (0.540) (0.620) (0.550)
------- ------- ------- ------- ---------
Net Asset Value, End of Period ....................... $13.030 $12.780 $12.500 $12.620 $ 11.990
======= ======= ======= ======= =========
Total Return(c)(d) ................................... 6.39% 6.67% 3.43% 10.66% (2.06)
RATIOS TO AVERAGE NET ASSETS
- ----------------------------
Expenses ............................................. 0.98%(f) 0.98% 0.98% 0.98% 0.98%
Net Investment Income ................................ 4.12%(f) 4.25% 4.33% 4.45% 4.37%
Fees and expenses waived or borne by the Advisor ..... --(f) 0.12% 0.16% 0.10% 0.10%
Portfolio Turnover Rate .............................. 44% 17% 16% 23% 21%
Net Assets, End of Period (000's) .................... $25,591 $26,487 $26,135 $28,070 $ 29,046
</TABLE>
- --------------
(a) Class B shares were initially offered on January 27, 1999. Per share
amounts reflect activity from that date.
(b) Effective October 19, 1998, the Primary shares were redesignated Class A
shares.
(c) Total return at net asset value assuming all distributions reinvested and
no initial sales charge or contingent deferred sales charge.
(d) Had the Advisor not waived or reimbursed a portion of expenses, total
return would have been reduced.
(e) Not annualized.
(f) The benefits derived from custody credits and directed brokerage
arrangements had no impact.
(g) Annualized.
79
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
- --------------------------------------------------------------------------------
IMPORTANT INFORMATION ABOUT THIS REPORT
- --------------------------------------------------------------------------------
THE TRANSFER AGENT FOR
THE CRABBE HUSON FUNDS IS:
Liberty Funds Services, Inc.
P.O. Box 1722
Boston, MA 02105-1722
1-800-345-6611
Crabbe Huson Funds mails one
shareholder report to each shareholder
address. If you would like more than one
report, please call 1-800-426-3750 and
additional reports will be sent to you.
This report has been prepared for share-
holders of the Crabbe Huson Funds. This
report may also be used as sales literature
when preceded or accompanied by the
current prospectus which provides details
about sales charges, investment objectives
and operating policies of the Funds.
<PAGE>
[Liberty Logo] LIBERTY
COLONIAL o CRABBE HUSON o NEWPORT o STEIN ROE ADVSIOR
Liberty Funds Distributor, Inc. (C)1999
One Financial Center,
Boston, MA 02111-2621
1-800-426-3750
Visit us at www.libertyfunds.com
TRUSTEES
Robert J. Birnbaum
Tom Bleasdale
John V. Carberry
Lora S. Collins
James E. Grinnell
Richard W. Lowry
Salvatore Macera
William E. Mayer
James L. Moody, Jr.
John J. Neuhauser
Thomas E. Stitzel
Robert L. Sullivan
Anne-Lee Verville
CH-03/140H-0599 (6/99) 99/687
<PAGE>
