<PAGE>
DEAR SHAREHOLDERS:
We are pleased to provide this report for Charter Large Company Stock Index Fund
(the "Fund") covering the six months ended June 30, 2000.
THE MARKET ENVIRONMENT
The only constant in the U.S. equity markets during the first quarter of the new
millennium seemed to be volatility. Investors moved between bargain-hunting in
"old economy" stocks and perceived opportunities for relative value rotation
within "new economy" stocks.
Many of the large cap high technology names which had achieved new highs in the
final days of 1999, including Microsoft, Yahoo!, Lucent and America Online, were
down from their highs 15% to 25% by the end of January -- dragging the S&P
500(R) Index with them. By February 25, the Index had declined 8%. However, the
trend toward value stocks was dramatically reversed in March, as investors
returned to high growth technology names, driving the Index to its single
highest monthly return -- 9.7% -- in nine years. As a result, the S&P 500(R)
rebounded to provide a 2.29% return for the full quarter. The Fund's
Institutional Class performed in line with the Index for the same period,
generating a net total return of 2.29%.
During the second quarter, U.S. equity markets were heavily influenced by events
unfolding in the domestic fixed income markets. Despite several early signals
that growth was slowing, the Federal Reserve (Fed) continued to raise interest
rates, increasing the federal funds rate to 6.50% in May, its highest level
since 1991.
Projected capital cost increases and wage pressures, along with several
high-profile reported earnings misses, pulled the S&P 500(R) Index down 5% over
the first two months of the quarter. However, later in the quarter U.S. equity
markets staged a mild rally, convinced that the state of fixed income markets
provided further evidence of an economic slowdown. Consequently, rates were left
unchanged at the Fed's June meeting.
_
1
<PAGE>
The S&P 500(R) Index was able to recover a portion of its previous losses,
finishing with a quarterly total return of -2.66%. On a year-to-date basis, the
return of the Index is down 0.42%, which represents its first negative
semi-annual return since 1994. In this environment, the Charter Large Company
Stock Index Fund Institutional Class has tracked its benchmark, generating a
-2.80% net total return during the quarter and a -0.57% return year to date.
(The Premier and Retail Classes commenced operations on 1/21/2000 and returned
1.25% and 0.92% through 6/30/2000.)
"Old economy" stocks, whose earnings are perceived to be most vulnerable to
increasing costs of capital, continued to suffer most. These "value" stocks
became an even greater value during the quarter, as the S&P 500/BARRA Value
Index, which lost 4.30%, lagged the results of the S&P 500/BARRA Growth Index,
which lost 1.47%. Mid-cap stocks, as measured by the S&P MidCap 400/BARRA Value
Index, which slipped 3.30%, gave back some of their considerable first quarter
gains, while the S&P SmallCap 600 Index, which advanced 1.01%, generated the
most attractive returns.
Technology stocks, which remain the single largest sector of the Index,
continued to forfeit previous gains. Returns for this group were further
depressed by Microsoft's antitrust woes, as the software giant finished the
quarter with a -9.20% total return. Defensive stocks gained on growing
expectations of an economic slowdown; the health care, consumer staples, energy
and utilities sectors were the best performers.
As was the case in the first quarter, the growing market breadth has continued
to afford active managers the opportunity to outperform passive managers.
According to Lipper Analytical Services, the majority of stock funds have
outperformed the S&P 500(R) for the first half of 2000, although results posted
by both types of managers have lagged the results of the average money market
account.
_
2
OUTLOOK
Federal Reserve Chairman Alan Greenspan has cautioned that we could be close to
the end of this tightening cycle. A shift in assets from overpriced technology
names to undervalued and ignored components of the equity markets has already
begun. However, while specific sectors appear to be capable of delivering solid
returns, the broad equity market, as represented by the S&P 500(R) Index, will
be faced with a number of challenges over the remainder of the year. The cash
flows into equity mutual funds that have supported market levels for some time
have slowed significantly, according to the Investment Company Institute.
Additionally, the wealth effect that has fueled demand appears to be
dissipating. Sustained increases in corporate borrowing rates and rising
business costs for labor and energy have begun to erode profit margins. Although
earnings growth has surpassed its peak, earnings disappointments are likely to
increase. However, an economic slowdown should support positive, yet
unspectacular, equity returns going forward.
Sincerely,
/s/ Richard H. Forde
Richard H. Forde
CHAIRMAN OF THE BOARD AND PRESIDENT
CHARTER LARGE COMPANY STOCK INDEX FUND
_
3
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
INVESTMENTS IN SECURITIES
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
----------------------------------------------------------------------
COMMON STOCKS - 97.0%
General Electric Co. 192,600 $ 10,208
Intel Corp. 65,200 8,716
Cisco Systems, Inc.* 135,400 8,606
Microsoft Corp.* 102,400 8,192
Pfizer, Inc. 122,500 5,880
Exxon Corp. 67,747 5,318
Wal-Mart Stores, Inc. 86,700 4,996
Oracle Systems Corp.* 55,150 4,636
Citigroup, Inc. 65,946 3,955
Nortel Networks Corp. 57,620 3,933
International Business Machines Corp. 34,500 3,780
Lucent Technologies, Inc. 63,330 3,752
American International Group, Inc. 30,012 3,526
Merck & Co., Inc. 44,700 3,425
EMC Corp.* 42,174 3,245
SBC Communications, Inc. 66,206 2,863
Sun Microsystems, Inc.* 30,900 2,810
Coca-Cola Co. 48,300 2,774
Johnson & Johnson 27,200 2,761
Royal Dutch Petroleum Co. 41,900 2,579
WORLDCOM, Inc. 55,520 2,547
Dell Computer Corp.* 50,200 2,475
Hewlett-Packard Co. 19,500 2,435
America Online, Inc.* 44,600 2,353
A T & T Corp. 73,035 2,310
Home Depot, Inc. 45,000 2,247
_
4
MARKET
NUMBER OF VALUE
SHARES (000)
----------------------------------------------------------------------
Bristol-Myers Squibb Co. 38,400 $ 2,237
Lilly (Eli) & Co. 22,000 2,197
Texas Instruments, Inc. 31,800 2,184
Viacom, Inc., Class B* 29,788 2,031
Time Warner, Inc. 25,600 1,946
Morgan Stanley, Dean Witter, Discover & Co. 22,000 1,832
Disney (Walt) Co. 40,500 1,572
BellSouth Corp. 36,800 1,569
Tyco International Ltd. 33,066 1,567
Bell Atlantic Corp. 30,114 1,530
American Home Products Corp. 25,500 1,498
Corning, Inc. 5,400 1,457
Procter & Gamble Co. 25,400 1,454
Schering-Plough Corp. 28,700 1,449
Applied Materials, Inc.* 15,700 1,423
Amgen, Inc.* 20,000 1,405
Bank America Corp. 32,216 1,385
American Express Company 26,000 1,355
Abbott Laboratories 30,100 1,341
Yahoo Inc.* 10,600 1,313
Pharmacia & Upjohn, Inc. 24,719 1,278
PepsiCo, Inc. 28,000 1,244
Wells Fargo & Co. 31,400 1,217
Motorola, Inc. 41,535 1,207
Philip Morris Companies, Inc. 44,500 1,182
Medtronic, Inc. 23,400 1,166
GTE Corp. 18,700 1,164
The Notes to Financial Statements are an integral part of these statements.
_
5
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
INVESTMENTS IN SECURITIES CONTINUED
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
----------------------------------------------------------------------
Chase Manhattan Corp. 24,150 $ 1,112
Chevron Corp. 12,800 1,086
Sprint Corp. (PCS Group) 17,800 1,059
Federal National Mortgage Association 19,600 1,023
Ford Motor Co. 23,600 1,015
Micron Technology, Inc. 10,800 951
Enron Corp. 14,200 916
Nextel Communications, Inc.* 14,800 906
du Pont (E.I.) de Nemours & Co. 20,429 894
Schwab (Charles) Corp. 26,475 890
Sprint Corp. 17,000 867
Qualcomm, Inc.* 14,400 864
Merrill Lynch & Co., Inc. 7,500 863
Veritas Software Corp. 7,600 859
McDonald's Corp. 26,000 856
U.S. WEST, Inc. 9,894 848
Compaq Computer Corp. 33,097 846
Schlumberger Ltd. 11,100 828
MediaOne Group, Inc.* 12,000 794
Boeing Co. 17,650 738
Gillette Co. 20,300 709
Comcast Corp., Class A 17,500 709
Colgate-Palmolive Co. 11,400 683
Duke Energy Co. 11,900 671
Bank of New York, Inc. 14,400 670
Automatic Data Processing, Inc. 12,300 659
Anheuser-Busch Companies, Inc. 8,800 657
Agilent Technologies 8,814 650
The Notes to Financial Statements are an integral part of these statements.
_
6
MARKET
NUMBER OF VALUE
SHARES (000)
----------------------------------------------------------------------
Minnesota Mining and Manufacturing Co. 7,800 $ 644
Siebel Systems, Inc. 3,900 638
Walgreen Co. 19,700 634
Kimberly-Clark Corp. 10,900 625
General Motors Corp. 10,600 615
FleetBoston Financial Corp. 17,512 595
BancOne Corp. 22,402 595
Computer Associates International, Inc. 11,600 594
Texaco, Inc. 10,800 575
Federal Home Loan Mortgage Corp. 13,600 551
United Technologies Corp. 9,300 548
Marsh & McLennan Companies, Inc. 5,200 543
Tellabs, Inc.* 7,900 541
Honeywell, Inc. 15,462 521
GAP, Inc. 16,650 520
Xilinx Inc.* 6,300 520
Analog Devices Inc.* 6,800 517
Target Corp. 8,900 516
Emerson Electric Co. 8,400 507
Clear Channel Communications, Inc.* 6,600 495
ADC Telecommunications, Inc.* 5,900 495
Seagram Company Ltd. 8,500 493
Alcoa, Inc. 16,944 491
Solectron Corp.* 11,600 486
Network Appliance, Inc.* 6,000 483
Unilever NV 11,192 481
First Union Corp. 19,270 478
Global Crossing Ltd.* 17,140 451
The Notes to Financial Statements are an integral part of these statements.
_
7
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
INVESTMENTS IN SECURITIES CONTINUED
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
----------------------------------------------------------------------
Safeway, Inc.* 9,700 $ 438
MBNA Corp. 15,675 425
First Data Corp. 8,200 407
Halliburton Co. 8,600 406
Firstar Corp. 19,200 404
Baxter International, Inc. 5,700 401
Altera Corp. 3,900 398
Cardinal Health, Inc. 5,350 396
Linear Technology Corp. 6,100 390
Dow Chemical Co. 12,900 389
3Com Corp.* 6,700 386
Household International, Inc. 9,178 381
Bestfoods, Inc. 5,500 381
Electronics Data Systems Corp. 9,200 380
Fifth Third Bancorp 6,000 380
Alltel Corp. 6,100 378
Maxim Integrated Products, Inc.* 5,500 374
Eastman Kodak Co. 6,200 369
AES Corp. 8,000 365
Kroger Co. 16,300 360
Kohls Corp.* 6,400 356
Williams Companies, Inc. 8,500 352
Morgan (J.P.) & Co. 3,200 350
Gateway, Inc.* 6,200 350
Mellon Financial Corp. 9,600 350
Illinois Tool Works, Inc. 5,900 336
Apple Computer, Inc.* 6,400 335
HCA Healthcare Co. 11,000 334
The Notes to Financial Statements are an integral part of these statements.
_
8
MARKET
NUMBER OF VALUE
SHARES (000)
-----------------------------------------------------------------
State Street Corp. 3,100 $ 329
Sara Lee Corp. 16,900 326
Allstate Corp. 14,500 323
Associates First Capital Corp., Class A 14,264 318
LSI Logic Corp.* 5,800 314
Omnicom Group, Inc. 3,500 312
Gannett Co., Inc. 5,200 311
CIGNA Corp. 3,300 309
CVS Corp. 7,700 308
Lowes Companies, Inc. 7,500 308
Washington Mutual, Inc. 10,640 307
Paychex, Inc. 7,275 306
Medimmune, Inc.* 4,100 303
Heinz (H.J.) Co. 6,900 302
Conoco, Inc. 12,219 300
Adobe Systems, Inc. 2,300 299
Guidant Corp.* 6,000 297
Southern Company 12,600 294
American General Corp. 4,800 293
Costco Companies, Inc.* 8,700 287
Northern Trust Corp. 4,400 286
United Healthcare Corp. 3,300 283
U.S. Bancorp, Inc. 14,690 283
International Paper Co. 9,465 282
Comverse Technology, Inc.* 3,000 279
Albertson's, Inc. 8,288 276
Sysco Corp. 6,500 274
PNC Bank Corp. 5,800 272
The Notes to Financial Statements are an integral part of these statements.
_
9
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
INVESTMENTS IN SECURITIES CONTINUED
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
----------------------------------------------------------------------
Xerox Corp. 13,000 $ 270
SunTrust Banks, Inc. 5,900 270
PE-Corp., Biosystems Group 4,000 264
Sanmina Corp.* 3,000 257
Coastal Corp. 4,200 256
Interpublic Group of Companies, Inc. 5,900 254
Phillips Petroleum Co. 5,000 253
Best Buy Co., Inc.* 4,000 253
Providian Corp. 2,750 248
Computer Sciences Corp. 3,300 246
Teradyne, Inc.* 3,300 243
Seagate Technology, Inc.* 4,400 242
Campbell Soup Company 8,300 242
Hartford Financial Services Group 4,300 241
Aflac, Inc. 5,200 239
Caterpillar, Inc. 7,000 237
Carnival Corp. 12,100 236
Kellogg Co. 7,900 235
Harley Davidson, Inc. 6,000 231
Waste Management, Inc. 12,095 230
El Paso Energy Corp. 4,500 229
General Mills, Inc. 5,900 226
Sears, Roebuck & Company 6,900 225
Advanced Micro Devices, Inc. 2,900 224
Scientific-Atlanta, Inc. 3,000 224
Lehman Brothers Holdings, Inc. 2,300 217
Wachovia Corp. 4,000 217
Fedex Corp.* 5,700 217
The Notes to Financial Statements are an integral part of these statements.
__
10
MARKET
NUMBER OF VALUE
SHARES (000)
----------------------------------------------------------------------
Transocean Sedco Forex, Inc.* 4,042 $ 216
NIKE, Inc., Class B 5,400 215
Tribune Co. 6,100 214
KLA Tencor Corp.* 3,600 211
Avon Products, Inc. 4,700 209
Chubb Corp. 3,400 209
Pitney-Bowes, Inc. 5,200 208
National City Corp. 12,100 206
Clorox Co. 4,600 206
Baker Hughes, Inc. 6,440 206
McGraw-Hill, Inc. 3,800 205
Conexant Systems, Inc.* 4,200 204
General Dynamics Corp. 3,900 204
Dominion Resources, Inc. 4,668 200
Weyerhaeuser Co. 4,600 198
Quaker Oats Co. 2,600 195
Kansas City Southern Industries, Inc.* 2,200 195
Allergan, Inc. 2,600 194
Cendant Corp.* 13,785 193
National Semiconductor Corp.* 3,400 193
Lockheed Martin Corp. 7,700 191
Burlington Northern Santa Fe Corp. 8,300 190
Southwest Airlines Co. 9,887 185
American Electric Power Co., Inc. 6,320 185
Biogen, Inc.* 2,900 185
PG & E Corp. 7,500 185
Molex, Inc. 3,825 184
Wrigley (Wm.) Jr. Company 2,300 184
The Notes to Financial Statements are an integral part of these statements.
__
11
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
INVESTMENTS IN SECURITIES CONTINUED
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
----------------------------------------------------------------------
ConAgra, Inc. 9,600 $ 183
Union Pacific Corp. 4,900 182
Limited, Inc. 8,400 182
Radio Shack Corp. 3,800 180
Aetna, Inc. 2,800 180
Boston Scientific Corp.* 8,100 178
Marriott International, Inc. 4,900 177
BMC Software, Inc.* 4,800 175
Mercury Interactive Corp. 1,800 174
Capital One Financial Corp. 3,900 174
FPL Group, Inc. 3,500 173
Reliant Energy, Inc. 5,822 172
Deere & Co. 4,600 170
Lexmark International Group, Inc.* 2,500 168
Nabisco Group Holding Corp. 6,400 166
Tenet Healthcare Corp.* 6,100 165
BB and T Corp. 6,800 162
Dover Corp. 4,000 162
Burlington Resources, Inc. 4,210 161
Delphi Automotive Systems Corp. 11,020 160
TXU Corp 5,400 159
Textron, Inc. 2,900 158
May Department Stores Co. 6,550 157
Masco Corp. 8,700 157
Aon Corp. 5,050 157
Unocal Corp. 4,700 156
Convergy Corp. 3,000 156
American Power Conversion Co. 3,800 155
The Notes to Financial Statements are an integral part of these statements.
__
12
MARKET
NUMBER OF VALUE
SHARES (000)
----------------------------------------------------------------------
Key Corp. 8,700 $ 153
U.S. Marathon Group 6,100 153
Occidental Petroleum Corp. 7,200 152
St. Paul Companies, Inc. 4,428 151
PPG Industries, Inc. 3,400 151
Public Service Enterprises Group, Inc. 4,300 149
Franklin Resource, Inc. 4,900 149
Avery Dennison Corp. 2,200 148
Rohm & Haas Co.* 4,253 147
Newell Rubbermaid, Inc. 5,510 142
Novellus Systems, Inc.* 2,500 141
Staples, Inc.* 9,150 141
Becton, Dickinson and Co. 4,900 141
Barrick Gold Corp. 7,700 140
Edison International 6,800 139
Air Products & Chemicals, Inc. 4,500 139
Danaher Corp. 2,800 138
Federated Department Stores, Inc.* 4,100 138
Starbucks Corp.* 3,600 137
Lincoln National Corp. 3,800 137
Comerica, Inc. 3,050 137
Unicom Corp. 3,500 135
Coca-Cola Enterprises, Inc. 8,300 135
Alcan Aluminum Ltd. 4,300 133
PECO Energy Co. 3,300 133
Circuit City Stores, Inc. 4,000 133
Dow Jones & Co., Inc. 1,800 132
Hershey Foods Corp. 2,700 131
Air Products & Chemicals, Inc. 4,500 139
Danaher Corp. 2,800 138
Federated Department Stores, Inc.* 4,100 138
Starbucks Corp.* 3,600 137
Lincoln National Corp. 3,800 137
Comerica, Inc. 3,050 137
Unicom Corp. 3,500 135
Coca-Cola Enterprises, Inc. 8,300 135
Alcan Aluminum Ltd. 4,300 133
PECO Energy Co. 3,300 133
Circuit City Stores, Inc. 4,000 133
Dow Jones & Co., Inc. 1,800 132
Hershey Foods Corp. 2,700 131
The Notes to Financial Statements are an integral part of these statements.
__
13
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
INVESTMENTS IN SECURITIES CONTINUED
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
-----------------------------------------------------------------------
Golden West Financial Corp. 3,200 $ 131
Entergy Corp. 4,800 131
New York Times Co., Class A 3,300 130
Apache Corp. 2,200 129
Ingersoll-Rand Co. 3,200 129
Union Carbide Corp. 2,600 129
Paine Webber Group, Inc. 2,800 127
Consolidated Edison Co. of N.Y., Inc. 4,300 127
Raytheon Co. 6,600 127
Delta Air Lines, Inc. 2,500 126
Loews Corp. 2,100 126
Dollar General Corp. 6,460 126
Anadarko Petroleum Corp. 2,500 123
Synovus Corp. 6,850 121
AmSouth Bancorp. 7,650 120
ALZA Corp.* 2,000 118
Sapient Corp.* 1,100 118
Ralston Purina Co. 5,900 118
Archer-Daniels-Midland Co. 11,923 117
Rockwell International Corp. 3,700 117
Praxair, Inc. 3,100 116
SLM Holding Corp. 3,100 116
Jefferson-Pilot Corp. 2,050 116
McKesson HBOC, Inc. 5,473 115
TJX Companies, Inc. 6,100 114
Kerr-McGee Corp. 1,907 112
Norfolk Southern Corp. 7,500 112
Amerada Hess Corp. 1,800 111
The Notes to Financial Statements are an integral part of these statements.
__
14
MARKET
NUMBER OF VALUE
SHARES (000)
-------------------------------------------------------------------
Mattel, Inc. 8,200 $ 108
IMS Health Inc. 6,000 108
Union Pacific Resources Group, Inc. 4,900 108
First Energy Corp. 4,600 108
Columbia Energy Group. 1,600 105
TRW, Inc. 2,400 104
Progressive Corp. Ohio 1,400 104
Watson Pharmaceuticals, Inc.* 1,900 102
Cincinnati Financial Corp. 3,200 101
CP & L Energy Corp.* 3,100 99
Bed Bath & Beyond Inc.* 2,700 98
Price (T. Rowe) 2,300 98
Ecolab, Inc. 2,500 98
Fort James Corp. 4,200 97
MGIC Investment Corp. 2,100 96
Tiffany & Co. 1,400 95
Constellation Energy Group 2,900 94
Charter One Financial, Inc. 4,100 94
Penney (J.C.) Co., Inc. 5,100 94
Eaton Corp. 1,400 94
UNUM Provident Corp. 4,674 94
Northrop Grumman Corp. 1,400 93
Bear Stearns & Companies, Inc. 2,217 92
MBIA, Inc. 1,900 92
Ameren Corp. 2,700 91
CSX Corp. 4,300 91
Cabletron Systems, Inc.* 3,600 91
Florida Progress Corp. 1,900 89
The Notes to Financial Statements are an integral part of these statements.
__
15
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
INVESTMENTS IN SECURITIES CONTINUED
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
-----------------------------------------------------------------------
Unisys Corp. 6,100 $ 89
Dun & Bradstreet Corp. 3,100 89
Peoplesoft, Inc.* 5,212 87
Johnson Controls, Inc. 1,700 87
Wellpoint Health Networks* 1,200 87
Georgia-Pacific Corp. 3,300 87
DTE Energy Co. 2,800 86
Regions Financial Corp. 4,300 85
Vulcan Materials Co. 2,000 85
Bausch & Lomb, Inc. 1,100 85
Knight-Ridder, Inc. 1,600 85
Biomet, Inc. 2,200 85
Tricon Global Restaurants* 2,990 84
Summit Bancorp. 3,400 84
Sealed Air Corp.* 1,596 84
Young & Rubicam 1,400 80
Tosco, Inc. 2,800 79
Century Tel Enterprises, Inc. 2,750 79
Cinergy Corp. 3,100 79
Union Planters Corp. 2,800 78
Sabre Hldgs. Corp. 2,707 77
AMR Corp.* 2,900 77
Harcourt General, Inc. 1,400 76
Goodrich (B.F.) Co. 2,200 75
Southtrust Corp. 3,300 75
NCR Corp.* 1,900 74
Fortune Brands, Inc. 3,200 74
Compuware Corp.* 7,100 74
The Notes to Financial Statements are an integral part of these statements.
__
16
MARKET
NUMBER OF VALUE
SHARES (000)
-----------------------------------------------------------------------
Parker-Hannifin Corp. 2,150 $ 74
Equifax, Inc. 2,800 74
St. Jude Medical, Inc.* 1,600 73
Eastman Chemical Co. 1,500 72
Newmont Mining Corp. 3,300 71
Huntington Bancshares, Inc. 4,501 71
Tektronix, Inc.* 950 70
Genuine Parts Co. 3,500 70
Whirlpool Corp. 1,500 70
Brown-Forman Corporation, Class B 1,300 70
New Century Energies, Inc. 2,300 69
Toys 'R Us, Inc.* 4,700 68
Millipore Corp. 900 68
Dana Corp. 3,201 68
Sherwin-Williams Co. 3,200 68
Hilton Hotels Corp. 7,200 68
Old Kent Financial Corp. 2,520 67
Ceridian Corp.* 2,800 67
Sempra Energy Corp. 3,955 67
Black & Decker Corp. 1,700 67
Countrywide Credit Industries, Inc. 2,200 67
Citrix Systems, Inc. 3,500 66
Thermo Electron Corp.* 3,100 65
GPU, Inc. 2,400 65
K-Mart Corp.* 9,500 65
Torchmark Corp. 2,600 64
International Flavors & Fragrances, Inc. 2,100 63
Nordstrom, Inc. 2,600 63
The Notes to Financial Statements are an integral part of these statements.
__
17
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
INVESTMENTS IN SECURITIES CONTINUED
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
---------------------------------------------------------------------
Leggett & Platt, Inc. 3,800 $ 63
Maytag Corp. 1,700 63
Goodyear Tire & Rubber Co. 3,100 62
Conseco, Inc. 6,357 62
Block (H & R), Inc. 1,900 62
PP & L Resources, Inc. 2,800 61
Placer Dome, Inc. 6,400 61
Northern States Power Co. 3,000 61
Willamette Industries, Inc. 2,200 60
PACCAR, Inc. 1,500 60
Perkinelmer, Inc. 900 60
Phelps Dodge Corp. 1,600 60
Autozone, Inc.* 2,700 59
Parametric Technology Corp.* 5,400 59
Novell, Inc.* 6,400 59
Cooper Industries, Inc. 1,800 59
Sigma-Aldrich Corp. 2,000 59
Inco Ltd.* 3,800 58
Pinnacle West Capital Corp. 1,700 58
Hasbro, Inc. 3,800 57
Mallinckrodt Group, Inc. 1,300 56
Nucor Corp. 1,700 56
Donnelley (R.R.) & Sons Co. 2,500 56
Grainger (W.W.), Inc. 1,800 55
VF Corp. 2,300 55
Rowan Companies, Inc.* 1,800 55
HealthSouth Corp.* 7,600 55
US Airways Group, Inc. 1,400 55
The Notes to Financial Statements are an integral part of these statements.
__
18
MARKET
NUMBER OF VALUE
SHARES (000)
---------------------------------------------------------------------
Andrew Corp.* 1,600 $ 54
Sunoco, Inc. 1,800 53
Harrah's Entertainment, Inc. 2,500 52
ITT Industries, Inc. 1,700 52
Niagara Mohawk Power Co.* 3,700 52
SuperValu, Inc. 2,700 51
CMS Energy Corp. 2,300 51
Mead Corp.* 2,000 51
SAFECO Corp. 2,500 50
Westvaco Corp. 2,000 50
Ashland, Inc. 1,400 49
UST, Inc. 3,300 48
Bard (C.R.), Inc. 1,000 48
Fluor Corp. 1,500 47
Temple-Inland, Inc. 1,100 46
Adaptec Inc.* 2,000 46
Pall Corp. 2,400 44
Engelhard Corp. 2,500 43
Coors (Adolph) Co., Class B 700 42
Liz Claiborne, Inc. 1,200 42
Autodesk, Inc. 1,200 42
Winn-Dixie Stores, Inc. 2,900 42
Wendy's International, Inc. 2,300 41
Darden Restaurants, Inc. 2,500 41
Stanley Works (The) 1,700 40
Office Depot, Inc.* 6,400 40
Crown Cork & Seal Co., Inc. 2,500 38
Visteon Corp. 3,090 37
The Notes to Financial Statements are an integral part of these statements.
__
19
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
INVESTMENTS IN SECURITIES CONTINUED
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
------------------------------------------------------------------------
Navistar International Corp. 1,200 $ 37
Allied Waste Industries, Inc.* 3,700 37
Shared Medical Systems Corp. 500 36
Energizer Holdings, Inc.* 1,966 36
Tupperware Corp. 1,600 35
Homestake Mining Co. 5,100 35
FMC Corp.* 600 35
Great Lakes Chemical Corp. 1,100 35
Owens-Illinois, Inc.* 2,900 34
Meredith Corp. 1,000 34
Bemis Company, Inc. 1,000 34
Alberto-Culver Co., Class B 1,100 34
Rite-Aid Corp.* 5,100 33
Deluxe Corp. 1,400 33
Allegheny Technologies, Inc. 1,800 32
Crane Co. 1,300 32
USX-U.S. Steel Group 1,700 32
Eastern Enterprises 500 31
Quintiles Transnational Co.* 2,200 31
Brunswick Corp. 1,800 30
Freeport McMoRan Copper & Gold, Inc., Class B* 3,200 30
Hercules, Inc. 2,100 30
NICOR, Inc. 900 29
Snap-On, Inc. 1,100 29
Boise Cascade Corp. 1,100 28
Centex Corp. 1,200 28
PACTIV* 3,400 27
The Notes to Financial Statements are an integral part of these statements.
__
20
MARKET
NUMBER OF VALUE
SHARES (000)
------------------------------------------------------------------------
Consolidated Stores Corp.* 2,200 $ 26
Dillard, Inc., Class A 2,100 26
American Greetings Corp., Class A 1,300 25
Ryder System, Inc. 1,300 25
Louisiana-Pacific Corp. 2,100 23
Peoples Energy Corp. 700 23
Timken Co. 1,200 22
Cummins Engine Co., Inc. 800 22
Thomas & Betts Corp. 1,100 21
Potlatch Corp. 600 20
Ball Corp. 600 19
Worthington Industries, Inc. 1,700 18
Kaufman & Broad Home Corp. 900 18
Reebok International Ltd.* 1,100 18
Longs Drug Stores Corp. 800 17
Pulte Corp. 800 17
Grace (W.R.) & Co. 1,400 17
Cooper Tire & Rubber Co. 1,500 17
Polaroid Corp. 900 16
Humana, Inc.* 3,300 16
National Service Industries, Inc. 800 16
Oneok, Inc. 600 16
Manor Care, Inc.* 2,000 14
Briggs & Stratton Corp. 400 14
Great Atlantic & Pacific Tea Co., Inc. 800 13
Armstrong World Industries, Inc. 800 12
Russell Corp. 600 12
McDermott International, Inc. 1,200 11
The Notes to Financial Statements are an integral part of these statements.
__
21
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
INVESTMENTS IN SECURITIES CONTINUED
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
-----------------------------------------------------------------------
Owens-Corning Fiberglas Corp. 1,100 $ 10
Springs Industries, Inc., Class A 300 10
Bethlehem Steel Corp. 2,600 9
Arch Coal, Inc. 344 3
Huttig Building Products, Inc.* 288 1
Abercombie & Fitch Co.* 27 1
------------
TOTAL COMMON STOCKS - 87.3%
(Cost $185,580) 244,901
------------
PRINCIPAL
(000)
------------
SHORT-TERM OBLIGATIONS - 12.6%
COMMERCIAL PAPER - 11.9%
American Express Credit Corp.
6.78%, 07/06/00 $ 9,030 9,030
Ford Motor Corp.
6.68%, 07/07/00 5,316 5,316
General Electric Capital Corp
6.77%, 7/5/00 11,175 11,175
Household Finance Corp.
6.88%, 7/3/00 7,775 7,775
----------------
33,296
----------------
The Notes to Financial Statements are an integral part of these statements.
__
22
MARKET
PRINCIPAL VALUE
(000) (000)
-----------------------------------------------------------------------
U.S. GOVERNMENT AND AGENCIES- 0.7%
U.S. Treasury Bills,
5.57%, 08/24/00** $ 1,785 $ 1,785
5.56%, 09/21/00** 175 175
----------------
1,960
----------------
TOTAL SHORT-TERM OBLIGATIONS
(Cost $35,256) 35,256
----------------
TOTAL INVESTMENT IN SECURITIES - 99.9%
(Total Cost $220,836) 280,157
Cash and Other Assets Less Liabilities 0.1% 307
----------------
NET ASSETS - 100.0% $ 280,464
================
* Non-income producing securities.
** This security or a portion thereof is pledged as collateral for Stock
Index Futures Contracts. At June 30, 2000, the Fund was long 100 S&P 500
Futures Contracts expiring in September 2000. Unrealized loss amounted to
$403,487. Underlying face value was $36,784,000, and underlying market
value was $36,380,513.
---------------------------------------------------------------------
CHARTER LARGE COMPANY STOCK INDEX FUND
TEN LARGEST POSITIONS (UNAUDITED)
(000)
General Electric Co. $ 10,208 3.6%
Intel Corp. 8,716 3.1%
Cisco Systems, Inc. 8,606 3.1%
Microsoft Corp. 8,192 2.9%
Pfizer Corp. 5,880 2.1%
Exxon Corp. 5,318 1.9%
Wal-Mart Stores, Inc. 4,996 1.8%
Oracle Systems Corp. 4,636 1.7%
Citigroup, Inc. 3,955 1.4%
Nortel Networks Corp. 3,933 1.4%
---------------------------------------------------------------------
The Notes to Financial Statements are an integral part of these statements.
__
23
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
(IN THOUSANDS)
------------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments in securities at value (Cost - $220,836) $ 280,157
Cash 2
Variation margin receivable 253
Interest and dividends receivable 238
Receivable for investments sold 161
Other 30
-------------
Total assets 280,841
-------------
LIABILITIES:
Payable for investments purchased 212
Administrative services payable 56
Accrued advisory fees payable 54
Custodian fees payable 43
12b-1 and sub-accounting fees payable to Distributor 12
-------------
Total liabilities 377
-------------
NET ASSETS $ 280,464
=============
SHARES OUTSTANDING
Institutional Class ($14.60 net asset value per share) 18,729
=============
Premier Class ($9.11 net asset value per share) 92
=============
Retail Class ($9.08 net asset value per share) 672
=============
COMPONENTS OF NET ASSETS:
Paid in capital $ 218,992
Overdistributed net investment income (839)
Accumulated net realized gain on investments and futures 3,394
Unrealized appreciation of investments and futures 58,917
-------------
NET ASSETS $ 280,464
=============
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
__
24
CHARTER LARGE COMPANY
STOCK INDEX FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
(IN THOUSANDS)
------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Dividends (net of taxes withheld of $12) $ 1,657
Interest 915
-----------------
2,572
EXPENSES:
Investment advisory fees 385
Custodian fees and expenses 88
Administrative services 74
Auditing and legal fees 15
Registration fees 15
Sub-accounting fees 3
Shareholder reports 5
12b-1 fees 3
Trustees' fees 2
Other 22
-----------------
Total expenses 612
Less expenses waived by adviser or distributor (201)
-----------------
Net expenses 411
-----------------
NET INVESTMENT INCOME 2,161
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain from securities transactions 36,342
Net realized gain from futures contracts 1,275
Net unrealized depreciation of investments (38,869)
Net unrealized depreciation of futures contracts (746)
-----------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (1,998)
-----------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 163
=================
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
__
25
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
2000 DECEMBER 31,
(IN THOUSANDS) (UNAUDITED) 1999
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 2,161 $ 3,506
Net realized gain from securities transactions 36,342 1,884
Net realized gain from futures contracts 1,275 2,165
Net unrealized depreciation of investments (38,869) (405)
Net unrealized depreciation of futures (746) 53,237
------------------ ---------------------
Net increase in net assets from operations 163 60,387
------------------ ---------------------
DISTRIBUTIONS FROM NET INVESTMENT INCOME:
Institutional Class ($0.13 and $0.223 per share, respectively) (2,977) (4,723)
Premier Class ($0.081 per share) (3)
Retail Class ($0.081 per share) (16)
DISTRIBUTIONS FROM NET REALIZED CAPITAL GAINS:
Institutional Class ($1.507 and $0.147 per share, respectively) (34,627) (3,114)
Premier Class ($0.94 per share) (37)
Retail Class ($0.939 per share) (187)
------------------ ---------------------
Total distributions to shareholders (37,847) (7,837)
------------------ ---------------------
CAPITAL SHARE TRANSACTIONS:
Institutional Class
Net proceeds from sales of shares 21,025 765
Net asset value of shares issued to shareholders
in reinvestment of dividends and distributions 37,604 7,837
------------------ ---------------------
58,629 8,602
Cost of shares redeemed (100,000) -
------------------ ---------------------
(41,371) 8,602
------------------ ---------------------
Premier Class
Net proceeds from sales of shares 961
Net asset value of shares issued to shareholders
in reinvestment of dividends and distributions 40
------------------
1,001
Cost of shares redeemed (129)
------------------
872
------------------
Retail Class
Net proceeds from sales of shares 6,368
Net asset value of shares issued to shareholders
in reinvestment of dividends and distributions 203
------------------
6,571
Cost of shares redeemed (341)
------------------
6,230
------------------ ---------------------
Net increase (decrease) from Fund share transactions (34,269) 8,602
------------------ ---------------------
NET INCREASE (DECREASE) IN NET ASSETS (71,953) 61,152
NET ASSETS:
Beginning of period 352,417 291,265
------------------ ---------------------
End of period (including overdistributed net investment
income of $839 and $4) $ 280,464 $ 352,417
================== =====================
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
__
26
CHARTER LARGE COMPANY
STOCK INDEX FUND
STATEMENTS OF CHANGES IN NET ASSETS
CONTINUED
FOR THE SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
2000 DECEMBER 31,
(IN THOUSANDS) (UNAUDITED) 1999
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INSTITUTIONAL CLASS
Shares sold 1,390 51
Shares issued in reinvestment of dividends and distributions 2,562 491
----------------- ----------------------
3,952 542
Shares redeemed 6,812 -
----------------- ----------------------
Net increase in shares outstanding (2,860) 542
================= ======================
PREMIER CLASS
Shares sold 101
Shares issued in reinvestment of dividends and distributions 4
-----------------
105
Shares redeemed 13
-----------------
Net increase in shares outstanding 92
=================
RETAIL CLASS
Shares sold 687
Shares issued in reinvestment of dividends and distributions 22
-----------------
709
Shares redeemed 37
-----------------
Net increase in shares outstanding 672
=================
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
__
27
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES. Charter Large Company Stock Index Fund is
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 Charter
Large Company Stock Index Fund seeks long-term growth of capital by investing
principally in common stocks of companies in the Standard & Poor's 500 Composite
Stock Price Index ("S&P 500"), an index emphasizing large-capitalization stocks.
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 fee). 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
__
28
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.
FUTURES CONTRACTS: The Fund may purchase Standard & Poor's 500 futures contracts
with the objective of earning returns on its short-term investments equivalent
to returns on the S&P 500. As a result, the purchase of futures contracts
simulates a fully invested position in the underlying index while maintaining
liquidity. Upon entering into a futures contract, the Fund is required to pledge
to the broker an amount of cash and/or securities equal to the initial margin
requirements. During the period a futures contract is open, changes in the value
of a contract are recognized as unrealized gains or losses by "marking to
market" on a daily basis to reflect the market value of the contract at the end
of each day's trading. Daily variation margin payments are received or made,
depending on whether there were unrealized gains or losses. When a contract is
closed, the Fund records a realized gain or loss equal to the difference between
the value of the contract at the time it was opened and the value at the time it
was closed. Futures contracts include the risk that a change in the value of the
contract may not correlate with the value of the underlying securities.
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
__
29
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED) CONTINUED
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.
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 0.25% 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,
__
30
and extraordinary expenses) exceed 0.25% annually of average daily net assets
for the Institutional Class, 0.35% annually of average daily net assets for the
Premier Class, and 0.60% 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
$74,306.
With respect to Retail Class shares, the Fund has adopted a 12b-1 plan which
requires the payment of 0.25% annually ($3,363 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 to
0.20% annually ($517 and $2,691, 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.
__
31
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED) CONTINUED
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
$10,645,779 and $106,261,620, respectively.
At June 30, 2000, the cost of securities for federal income tax purposes was
$220,836,455. The Fund had net unrealized appreciation of investment of
$59,320,069, consisting of gross unrealized appreciation of $79,957,079 and
gross unrealized depreciation of $20,637,010 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.
__
32
This page has been intentionally left blank.
__
33
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX 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:
PREMIER CLASS RETAIL CLASS
-----------------------------------------------------------------------
FOR THE FOR THE
PERIOD PERIOD
1/21/00(3) 1/21/00(3)
TO TO
(UNAUDITED) 6/30/00 6/30/00
-----------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.09 0.08
Net realized and unrealized gain (loss) on
securities 0.04 0.02
----- ----
TOTAL FROM INVESTMENT OPERATIONS 0.13 0.10
----- ----
LESS DISTRIBUTIONS:
Dividends from net investment income (0.08) (0.08)
Distributions from capital gains (0.94) (0.94)
------ ------
TOTAL DISTRIBUTIONS (1.02) (1.02)
------ ------
NET ASSET VALUE, END OF PERIOD $ 9.11 $ 9.08
======== ========
TOTAL RETURN (1) 1.25% (4) 0.92% (4)
RATIOS TO AVERAGE NET ASSETS
Expenses 0.35% (5) 0.60% (5)
Net investment income 1.45% (5) 1.23% (5)
Fees and expenses waived or borne
by the Adviser or Distributor 0.20% (5) 0.22% (5)
Portfolio turnover 4% (4) 4% (4)
Net assets, end of period (000 omitted) $ 836 $ 6,104
(1) Had the Adviser or Distributor not waived or reimbursed a portion of
expenses, total return would have been reduced.
(2) For the period July 1, 1997 (commencement of operations, Institutional
Class) to December 31, 1997.
(3) Commencement of operations, Premier and Retail Classes.
(4) Not annualized.
(5) Annualized.
__
34
[THE TABLE BELOW APPEARS HORIZONTALLY TO THE RIGHT OF THE ABOVE TABLE AS A
CONTINUATION AND SPANS ACROSS PP. 34-35.]
INSTITUTIONAL CLASS
------------------------------------------------------------
SIX MONTHS
ENDED
JUNE 30, YEARS ENDED DECEMBER 31,
2000 1999 1998 1997(2)
------------------------------------------------------------
$ 16.32 $ 13.84 $ 10.95 $ 10.00
0.09 0.17 0.13 0.07
(0.17) 2.68 2.97 0.95
------ ----- ----- -----
(0.08) 2.85 3.10 1.02
------ ----- ----- -----
(0.13) (0.22) (0.16) (0.07)
(1.51) (0.15) (0.05) -
------ ------ ------ -------
(1.64) (0.37) (0.21) (0.07)
------ ------ ------ -------
$ 14.60 $ 16.32 $ 13.84 $ 10.95
========== ======== ======== ========
(0.57)% (4) 20.66% 28.28% 10.23% (4)
0.25% (5) 0.35% 0.35% 0.35% (5)
1.41% (5) 1.12% 1.27% 1.57% (5)
0.12% (5) 0.01% 0.08% 0.35% (5)
4% (4) 3% 3% 4% (4)
$ 273,524 $ 352,441 $ 291,265 $ 105,845
__
35
<PAGE>
CHARTER LARGE COMPANY
STOCK INDEX FUND
Charter Large Company Stock Index Fund is an open-end, diversified management
investment company that invests primarily in common stocks of companies in the
Standard & Poor's 500 Composite Stock Price Index ("S&P 500"), an index
emphasizing large-capitalization stocks. The investment adviser is TimesSquare
Capital Management, Inc., 900 Cottage Grove Road, Hartford, Connecticut 06152.
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 & INVESTMENT SERVICES AND
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
__
36
<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
545726
________________________________________________________________________________
CIGNA FUNDS GROUP
________________________________________________________________________________
[A BUILDING GRAPHIC APPEARS IN THE BACKGROUND OF THIS PAGE]
CHARTER FUNDS/SM/
CHARTER
LARGE
COMPANY
STOCK
INDEX
FUND
Semiannual Report
June 30, 2000
[CIGNA TREE LOGO GRAPHIC APPEARS HERE]
CIGNA Financial Services, Inc.
