<PAGE>
DEAR SHAREHOLDERS:
We are pleased to provide this initial report for Charter Large Company Stock
Growth Fund (the "Fund"), sub-advised by Morgan Stanley Dean Witter Investment
Management Inc., covering the period ended June 30, 2000.
Please read our sub-adviser's update below.
Sincerely,
/s/ Richard H. Forde
Richard H. Forde
CHAIRMAN OF THE BOARD AND PRESIDENT
CHARTER LARGE COMPANY STOCK GROWTH FUND
SUB-ADVISER'S UPDATE
THE MARKET ENVIRONMENT
The second quarter was marked by increased volatility for U.S. equity markets,
as the trend towards investing in "old economy" and value stocks continued from
late in the first quarter through May. The June recovery in growth stocks was
led by technology and health care, two of the best-performing sectors for the
quarter. As a result, growth outperformed value for the quarter.
STRATEGY
In aggregate, sector allocation -- primarily our overweight positions in health
care and consumer staples -- contributed over 1% to results, while stock
selection detracted over 2%. Consumer cyclicals, our weakest-performing sector
for the quarter, resulted from the downturn of the retail sector. Our
investments in Home Depot, which was down 22%, and Costco, which declined 37%,
were our largest detractors from performance in the sector. Our strategic
decision to continue to lower our technology exposure early in the second
quarter and add to health care paid off, as health care was our best-performing
sector. Meaningful
_
1
<PAGE>
positions in Warner-Lambert, which rose 33%; Pfizer, which was up 32%; Johnson &
Johnson, which gained 46%; and Merck, which increased 24% -- collectively
represented 8% of the portfolio -- and added over 1% to relative performance.
Two of our best-performing stocks for the quarter were Warner-Lambert and
Pfizer. Although large cap pharmaceutical stocks dramatically outperformed the
market in the quarter, Pfizer outperformed its peers. The acquisition of
Warner-Lambert was formally completed in mid-June, but integration planning was
already well underway and we believe cost-cutting targets will be accomplished
earlier than expected and their size could ultimately prove conservative, as
projected now. Prescription volume growth for most of the company's major drugs
remains robust, particularly for Lipitor, Celebrex, Neurontin, Viagra, Zyrtec,
and Norvasc. Consensus earnings expectations do not fully reflect the
faster-than-expected cost-cutting or the growth in sales volumes, in our view. A
supposed lack of pipeline depth is a frequent criticism of skeptics, but we
believe Pregabalin (a more potent, more tolerable follow-up to Neurontin; likely
launch in 2001), Valdocoxib (arthritis and pain; launch in 2001), and inhaled
insulin (diabetes; launch in 2002-2003) all have tremendous market potential.
With no major patent expirations until 2006, the industry's fastest projected
earnings growth rate over the next several years, a strong potential for
additional co-marketing deals with other drug companies and for non-core asset
divestitures once pooling accounting restrictions are lifted in two years, and
the sector's lowest price/earnings-to-growth ratio, we believe Pfizer remains a
compelling investment and is a core holding in our portfolio.
PERFORMANCE
For the second quarter and since its inception (01/20/00), the Fund's
Institutional Class returned -3.22% and 5.30%, respectively. The Fund's Premier
and Retail Classes both returned -3.31% for the second quarter, and they
returned 5.20% and 5.10%, respectively, since inception.
_
2
OUTLOOK
With the Federal Reserve expected to be in the seventh inning stretch on
interest rate hikes and the surge of growth stocks late in the second quarter,
we are extremely optimistic about the prospect for large capitalization growth
stocks going forward. Signs of a soft landing, as well as strong fundamentals
and compelling business opportunities, create a favorable environment for growth
moving forward.
_
3
<PAGE>
CHARTER LARGE COMPANY
STOCK GROWTH FUND
INVESTMENTS IN SECURITIES
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
-----------------------------------------------------------------
COMMON STOCKS - 98.0%
AEROSPACE AND DEFENSE- 5.9%
General Dynamics Corp. 2,800 $ 146
Textron, Inc. 1,800 98
United Technologies Corp. 8,100 477
----------
721
----------
COMMUNICATIONS- 16.4%
American Tower Corp. 2,900 121
AMFM, Inc. 1,600 110
AT&T Corp. 1,000 28
AT&T Corp-Liberty Media A 6,800 165
BellSouth Corp. 600 26
Broadcom Corp., Class A 300 66
CIENA Corp. 400 67
Clear Channel Communications, Inc.* 1,700 128
Comcast Corp., Class A 2,600 105
Crown Castle International Corp. 2,100 77
GTE Corp. 2,800 174
Juniper Networks, Inc. 400 58
MediaOne Group, Inc.* 2,000 132
Nextel Communications Inc., Class A * 800 49
Nextlink Communications Inc., Class A 400 15
Nortel Networks Corp. 4,300 293
Spectrasite Holding, Inc. 500 14
Sprint Corp. 1,400 71
The Notes to Financial Statements are an integral part of these statements.
_
4
MARKET
NUMBER OF VALUE
SHARES (000)
-----------------------------------------------------------------
Viacom, Inc., Class B 1,519 $ 104
WORLDCOMM, Inc. 2,300 106
----------
1,909
----------
CONSUMABLES- 1.5%
Anheuser-Busch Cos., Inc. 1,600 120
PepsiCo, Inc. 2,700 120
Philip Morris Cos, Inc. 3,600 96
Quaker Oats Co. 600 45
----------
381
----------
DRUGS- 2.1%
Bristol-Myers Squibb Co. 1,500 87
----------
ELECTRONICS- 9.3%
General Electric Co. 10,300 546
Hewlett Packard Co. 600 75
Lucent Technologies, Inc. 2,100 124
Motorola, Inc. 5,400 157
Texas Instruments, Inc. 3,200 220
----------
1,122
----------
FINANCIAL- 5.7%
American Express Capital Corp. 2,700 141
Bank of New York, Inc. 4,200 195
Citigroup, Inc. 3,500 211
Federal National Mortgage Association 1,800 94
FleetBoston Financial Corp. 2,500 85
----------
726
----------
INSURANCE- 0.9%
American International Group, Inc. 1,100 129
----------
The Notes to Financial Statements are an integral part of these statements.
_
5
<PAGE>
CHARTER LARGE COMPANY
STOCK GROWTH FUND
INVESTMENTS IN SECURITIES CONTINUED
JUNE 30, 2000 (UNAUDITED)
INTERNET- 1.6%
Yahoo, Inc.* 400 $ 50
----------
MANUFACTURING- 13.7%
Applied Materials, Inc.* 2,600 236
Capstone Turbine Corp. 100 5
Corning, Inc. 400 108
General Motors, Class H 400 35
Intersil Holdings, Class A 1,000 54
JDS Uniphase Corp. 1,300 156
Maxim Integrated Prod, Inc. 2,200 149
PMC- Sierra, Inc. 100 18
Procter & Gamble Co. 1,200 69
Tyco International Ltd. 15,400 730
----------
1,560
----------
MEDICAL-10.4%
Abbott Laboratories 1,000 45
American Home Products Corp. 3,000 176
Amgen, Inc. 800 56
ASM Lithography Holdings 700 31
HCA Healthcare Corp. 1,400 43
EXFO Electro Optical Eng. 200 9
Genetech, Inc. 100 17
Schering-Plough Corp.* 800 40
Johnson & Johnson 1,800 183
Lilly (Eli) & Co. 500 50
Medimmune, Inc. 500 37
Merck & Co. 1,700 130
PE Corp.* 600 40
The Notes to Financial Statements are an integral part of these statements.
_
6
MARKET
NUMBER OF VALUE
SHARES (000)
-----------------------------------------------------------------
Pfizer, Inc. 14,400 $ 691
Pharmacia & Upjohn, Inc. 2,985 154
----------
1,702
----------
PUBLISHING- 3.0%
Time Warner, Inc. 3,300 251
TV Guide, Inc., Class A 800 27
----------
278
----------
REAL ESTATE- 0.3%
Pinnacle Holdings, Inc. 800 43
----------
RESEARCH AND DEVELOPMENT- 0.1%
Tularik, Inc. 300 9
----------
RETAIL- 8.3%
Brinker International, Inc. 700 20
Costco Companies, Inc.* 1,600 52
Home Depot, Inc. 6,800 340
Intimate Brands, Class A 2,600 51
Keebler Foods Co. 900 33
Limited, Inc. 2,200 48
Safeway, Inc. 1,800 80
Tiffany & Co. 600 40
Wal-Mart Stores, Inc. 2,700 155
----------
819
----------
SERVICES- 1.2%
Omnicom Group, Inc. 700 62
Verisign, Inc. 100 18
----------
80
----------
The Notes to Financial Statements are an integral part of these statements.
_
7
<PAGE>
CHARTER LARGE COMPANY
STOCK GROWTH FUND
INVESTMENTS IN SECURITIES CONTINUED
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
-----------------------------------------------------------------
TECHNOLOGY- 18.4%
Analog Devices, Inc.* 300 $ 23
Cisco Systems, Inc.* 8,300 528
EMC Corp. 1,000 77
Genuity, Inc. 1,500 14
Global Crossing Ltd. 1,065 28
Infineon Technologies ADS 600 48
Inktomi Corp. 300 35
Intel Corp. 3,900 521
International Business Machines Corp. 1,000 110
Microsoft Corp.* 4,300 344
Oracle Corp.* 2,600 219
Seagate Technolgy* 600 33
Storage Networks 200 18
Stratos Lightwave, Inc. 200 6
Sun Microsystems, Inc.* 1,800 164
----------
2,168
----------
UTILITIES- 0.3%
Montana Power Co. 800 28
----------
TOTAL COMMON STOCKS - 98.0%
(Cost $11,126) 11,812
----------
The Notes to Financial Statements are an integral part of these statements.
_
8
MARKET
SHARES VALUE
(000) (000)
-----------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 3.0%
MONEY MARKET FUND
Charter Money Market Fund 292 $ 292
----------
TOTAL SHORT-TERM OBLIGATIONS
(Cost $292) 292
----------
TOTAL INVESTMENT IN SECURITIES - 100.4%
(Total Cost $11,418) 12,104
Liabilities less Cash and Other Assets- 0.4% (45)
----------
NET ASSETS - 100.0% $ 12,059
==========
* Non-income producing securities.
-----------------------------------------------------------------
CHARTER LARGE COMPANY STOCK GROWTH FUND
TEN LARGEST POSITIONS (UNAUDITED)
(000)
Tyco International Ltd. $ 729 6.0%
Pfizer, Inc. 691 5.7%
General Electric Co. 546 4.5%
Cisco Systems 528 4.4%
Intel Corp. 521 4.3%
United Technologies Corp. 477 4.0%
Microsoft Corp. 344 2.9%
Home Depot 340 2.8%
Nortel Networks 293 2.4%
Time Warner, Inc. 251 2.1%
-----------------------------------------------------------------
The Notes to Financial Statements are an integral part of these statements.
_
9
<PAGE>
CHARTER LARGE COMPANY
STOCK GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
(IN THOUSANDS)
--------------------------------------------------------------------------------
ASSETS:
Investments in securities at value (Cost - $11,419) $ 12,104
Cash 1
Receivable for investments sold 8
Interest and dividends receivable 6
Other 13
--------------
Total assets 12,132
--------------
LIABILITIES:
Payable for investments 46
Administrative services payable 9
Custodian fees payable 7
Accrued audit and legal fees payable 7
Registration fees payable 1
12b-1 and sub-accounting fees payable to Distributor 1
Other accrued expenses 2
--------------
Total liabilities 73
--------------
NET ASSETS $ 12,059
==============
SHARES OUTSTANDING
Institutional Class ($10.53 net asset value per share) 450
==============
Premier Class ($10.52 net asset value per share) 464
==============
Retail Class ($10.51 net asset value per share) 202
==============
COMPONENTS OF NET ASSETS:
Paid in capital $ 11,498
Accumulated net investment income (loss) (16)
Accumulated net realized loss on investments (109)
Unrealized appreciation of investments 686
--------------
NET ASSETS $ 12,059
==============
The Notes to Financial Statements are an integral part of these statements.
__
10
<PAGE>
CHARTER LARGE COMPANY
STOCK GROWTH FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD JANUARY 20, 2000* TO
JUNE 30, 2000 (UNAUDITED)
(IN THOUSANDS)
--------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 28
Interest 2
------------------
30
EXPENSES:
Investment advisory fees 29
Custodian fees and expenses 16
Auditing and legal fees 7
Sub-accounting fees 6
Shareholder reports 3
Administrative services 9
12b-1 fees 2
Registration fees 15
Other 4
------------------
Total expenses 91
Less expenses waived by adviser or distributor (45)
------------------
Net expenses 46
------------------
NET INVESTMENT INCOME (LOSS) (16)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss from securities transactions (109)
Unrealized appreciation of investments 686
------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 577
------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 561
==================
* Commencement of operations
The Notes to Financial Statements are an integral part of these statements.
__
11
<PAGE>
CHARTER LARGE COMPANY
STOCK GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD JANUARY 20, 2000* TO
JUNE 30, 2000 (UNAUDITED)
(IN THOUSANDS)
--------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) $ (16)
Net realized loss from securities transactions (109)
Unrealized appreciation of investments 686
-------------------
Net increase in net assets from operations 561
-------------------
DISTRIBUTIONS FROM NET INVESTMENT INCOME:
Institutional Class -
Premier Class -
Retail Class -
-------------------
Total distributions to shareholders -
-------------------
CAPITAL SHARE TRANSACTIONS:
Institutional Class
Net proceeds from sales of shares 4,500
Net asset value of shares issued to shareholders
in reinvestment of dividends and distributions -
-------------------
4,500
Cost of shares redeemed -
-------------------
4,500
-------------------
Premier Class
Net proceeds from sales of shares 4,952
Net asset value of shares issued to shareholders
in reinvestment of dividends and distributions -
-------------------
4,952
Cost of shares redeemed -
-------------------
4,952
-------------------
Retail Class
Net proceeds from sales of shares 2,205
Net asset value of shares issued to shareholders
in reinvestment of dividends and distributions -
-------------------
2,205
Cost of shares redeemed (159)
-------------------
2,046
-------------------
Net increase from Fund share transactions 11,498
-------------------
NET INCREASE IN NET ASSETS 12,059
NET ASSETS:
Beginning of period -
-------------------
End of period (including accumulated net investment
loss of $16) $ 12,059
===================
* Commencement of operations
The Notes to Financial Statements are an integral part of these statements.
__
12
CHARTER LARGE COMPANY
STOCK GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS CONTINUED
FOR THE PERIOD JANUARY 20, 2000 * TO
JUNE 30, 2000 (UNAUDITED)
(IN THOUSANDS)
--------------------------------------------------------------------------------
TRANSACTIONS IN CAPITAL STOCK
INSTITUTIONAL CLASS
Shares sold 450
Shares issued in reinvestment of dividends and
distributions -
------------------
450
Shares redeemed -
------------------
Net increase in shares outstanding 450
==================
PREMIER CLASS
Shares sold 494
Shares issued in reinvestment of dividends and
distributions -
------------------
494
Shares redeemed -
------------------
Net increase in shares outstanding 494
==================
RETAIL CLASS
Shares sold 217
Shares issued in reinvestment of dividends and
distributions -
------------------
217
Shares redeemed (15)
------------------
Net increase in shares outstanding 202
==================
* Commencement of operations
The Notes to Financial Statements are an integral part of these statements.
__
13
<PAGE>
CHARTER LARGE COMPANY
STOCK GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES. Charter Large Company Stock Growth Fund is a
separate series of CIGNA Funds Group, a Massachusetts business trust (the
"Trust"). The Trust is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company. The objective
of the Charter Large Company Stock Growth Fund is to seek long-term capital
appreciation by investing principally in equity securities of the U.S. and, to a
limited extent, foreign companies that exhibit strong or accelerating earnings
growth. The Trust offers three classes of shares: Institutional Class, Premier
Class and Retail Class. Expenses of the Fund are borne pro rata by the holders
of each class of shares, except that each class bears expenses unique to that
class (including any applicable sub-accounting or 12b-1 distribution fees).
Shares of each class would receive their pro rata share of net assets of the
Fund if the Fund were liquidated. In addition, the Trustees approve separate
dividends on each class of shares. Institutional Class Shares have a separate
transfer agent charge and no distribution fee or sub-accounting fee. The Premier
Class Shares have a sub-accounting fee. The Retail Class Shares have a 12b-1 fee
and a sub-accounting fee.
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from those estimates. The
following is a summary of significant accounting policies consistently followed
by the Fund in the preparation of its financial statements.
A. SECURITY VALUATION - Equity securities, including warrants, that are listed
on a national securities exchange or part of the NASDAQ National Market System
are valued at the last sale price or, if there has been no sale that
__
14
day, at the last bid price. Short-term investments with remaining maturities of
up to and including 60 days are valued at amortized cost, which approximates
market. Short-term investments that mature in more than 60 days are valued at
current market quotations. Other securities and assets of the Fund are appraised
at fair value as determined in good faith by, or under the authority of, the
Board of Trustees.
B. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security transactions
are accounted for on the trade date (date the order to buy or sell is executed).
Dividend income is recorded on the ex-date, and interest income is recorded on
the accrual basis. Securities gains and losses are determined on the basis of
identified cost.
C. FEDERAL TAXES - For federal income tax purposes, each fund in the Trust is
taxed as a separate entity. It is the Fund's policy to continue to comply with
the requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income and capital gains to its
shareholders. Therefore, no federal income or excise taxes on realized income or
net capital gains have been accrued.
D. DIVIDENDS - Dividends from net investment income and net capital gains, to
the extent such gains would otherwise be taxable to the Fund, are declared and
distributed annually.
Dividends and distributions are recorded by the Fund on the ex-dividend date.
The timing and characterization of certain income and capital gains
distributions are determined in accordance with federal tax regulations which
may differ from generally accepted accounting principles. To the extent that
such differences are permanent, a re-classification to paid in capital may be
required.
__
15
<PAGE>
CHARTER LARGE COMPANY
STOCK GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED) (CONTINUED)
2. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES. Investment
advisory fees are paid or accrued to TimesSquare Capital Management, Inc.
("TimesSquare"), certain officers and directors of which are affiliated with the
Fund. Such advisory fees are based on an annual rate of 0.80% applied to the
average daily net assets of the Fund. TimesSquare has voluntarily agreed to
reimburse the Fund for any amount by which its expenses (including the advisory
fee but excluding interest, taxes, transaction costs incurred in acquiring and
disposing of portfolio securities, and extraordinary expenses) exceed 0.80%
annually of average daily net assets for the Institutional Class, 1.00% annually
of average daily net assets for the Premier Class, and 1.25% annually for the
Retail Class, until April 30, 2001 and thereafter to the extent described in the
Fund's then current prospectus. TimesSquare retains the ability to be repaid by
the Fund if the Fund's expenses fall below the specified limit prior to the end
of the fiscal year or within three years after TimesSquare waives management
fees or reimburses Fund operating expenses.
For administrative services, the Fund reimburses TimesSquare for a portion of
the compensation and related expenses of the Trust's Treasurer and Secretary and
certain persons who assist in carrying out the responsibilities of those
offices. For the six months ended June 30, 2000, the Fund paid or accrued
$9,432.
With respect to Retail Class shares, the Fund has adopted a 12b-1 plan which
requires the payment of 0.25% annually ($1,750 through 6/30/00) to CIGNA
Financial Services, Inc. ("CFS"), the Fund's distributor. The fees received from
the 12b-1 plan are used for services provided to the Retail Class and expenses
primarily intended to result in the sale of such shares. Premier and Retail
Class shares are also subject to a sub-accounting fee payable to CFS equal
__
16
to 0.20% annually ($4,440 and $1,400, respectively, through 6/30/00). The
sub-accounting and 12b-1 fees will be waived as necessary to limit Premier and
Retail Class expenses, as a percentage of average net assets, to the amounts
described above until April 30, 2001 and thereafter to the extent described in
the Fund's then current prospectus.
TimesSquare and CFS are indirect, wholly-owned subsidiaries of CIGNA
Corporation.
3. TRUSTEES' FEES. Trustees' fees represent remuneration paid or accrued to
trustees who are not employees of CIGNA Corporation or any of its affiliates.
Trustees may elect to defer all or a portion of their fees which are invested in
mutual fund shares in accordance with a deferred compensation plan.
4. PURCHASES AND SALES OF SECURITIES. Purchases and sales of securities,
excluding short-term obligations, for the six months ended June 30, 2000 were
$14,949,640 and $3,692,458, respectively.
At June 30, 2000, the cost of securities for federal income tax purposes was
$11,481,824. The Fund had net unrealized appreciation of investment of $621,678,
consisting of gross unrealized appreciation of $1,303,328 and gross unrealized
depreciation of $681,650 for federal income tax purposes.
5. CAPITAL STOCK. The Fund is a separate series of the Trust which offers an
unlimited number of shares of beneficial interest, without par value. At June
30, 2000, Life Insurance Company of North America, an indirect wholly-owned
subsidiary of CIGNA Corporation, owned 87% of the Fund.
__
17
<PAGE>
CHARTER LARGE COMPANY
STOCK GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
CONTINUED
6. FINANCIAL HIGHLIGHTS. The following per share data is computed on the basis
of a share outstanding throughout the period:
<TABLE>
<CAPTION>
(UNAUDITED)
FOR THE PERIOD JANUARY 20, 2000(4)
TO JUNE 30, 2000
----------------------------------------------------------------------------------------------------------
INSTITUTIONAL PREMIER RETAIL
CLASS CLASS CLASS
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 $ 10.00 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.01) (0.02) (0.02)
Net realized and unrealized gain on securities 0.54 0.54 0.53
-------- ----- ----
TOTAL FROM INVESTMENT OPERATIONS 0.53 0.52 0.51
-------- ----- ----
LESS DISTRIBUTIONS:
Dividends from net investment income - - -
Distributions from capital gains - - -
-------- -------- --------
TOTAL DISTRIBUTIONS - - -
-------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 10.53 $ 10.52 $ 10.51
======== ======== ========
TOTAL RETURN (1) 5.30% (2) 5.20% (2) 5.10% (2)
RATIOS TO AVERAGE NET ASSETS
Expenses 0.80% (3) 1.00% (3) 1.25% (3)
Net investment income (loss) (0.18)% (3) (0.38)% (3) (0.62)%(3)
Fees and expenses waived or borne by the Adviser or
Distributor 0.78% (3) 0.80% (3) 0.84% (3)
Portfolio turnover 40% (2) 40% (2) 40% (2)
Net assets, end of period (000 omitted) $ 4,737 $ 5,197 $ 2,125
</TABLE>
(1) Had the Adviser or Distributor not waived or reimbursed a portion of
expenses, total return would have been reduced.
(2) Not annualized.
(3) Annualized.
(4) Commencement of operations.
__
18
CHARTER LARGE COMPANY
STOCK GROWTH FUND
Charter Large Company Stock Growth Fund is an open-end, diversified management
investment company that invests primarily in equity securities of U.S. and, to a
limited extent, foreign companies. The investment adviser is TimesSquare Capital
Management, Inc., 900 Cottage Grove Road, Hartford, Connecticut 06152. The
sub-adviser is Morgan Stanley Dean Witter Investment Management Inc. The Fund is
distributed by CIGNA Financial Services, Inc., P.O. Box 150476, Hartford, CT
06115-0476 (telephone: 1.888.CIGNA.FS or 1.888.244.6237).
TRUSTEES
Hugh R. Beath
ADVISORY DIRECTOR, ADMEDIA CORPORATE ADVISORS, INC.
Richard H. Forde
SENIOR MANAGING DIRECTOR, TIMESSQUARE CAPITAL MANAGEMENT, INC.
Russell H. Jones
VICE PRESIDENT AND TREASURER, KAMAN CORPORATION
Thomas C. Jones
PRESIDENT, CIGNA RETIREMENT AND INVESTMENT SERVICES &
CHAIRMAN OF THE BOARD, TIMESSQUARE CAPITAL MANAGEMENT, INC.
Paul J. McDonald
SPECIAL ADVISOR TO THE BOARD OF DIRECTORS,
FRIENDLY ICE CREAM CORPORATION
OFFICERS
Richard H. Forde
CHAIRMAN OF THE BOARD AND PRESIDENT
Alfred A. Bingham III
VICE PRESIDENT AND TREASURER
Jeffrey S. Winer
VICE PRESIDENT AND SECRETARY
__
19
<PAGE>
[CIGNA TREE LOGO GRAPHIC APPEARS HERE]
CIGNA FINANCIAL SERVICES, INC.
P.O. Box 150476 . Hartford, CT 06115-0476
www.cigna.com . Member NASD/SIPC
545721
________________________________________________________________________________
CIGNA FUNDS GROUP
________________________________________________________________________________
[A BUILDING GRAPHIC APPEARS IN THE BACKGROUND OF THIS PAGE]
CHARTER FUNDS/SM/
CHARTER
LARGE
COMPANY
STOCK
GROWTH
FUND
Semiannual Report
June 30, 2000
[CIGNA TREE LOGO GRAPHIC APPEARS HERE]
CIGNA Financial Services, Inc.
