<PAGE>
DEAR SHAREHOLDERS:
We are pleased to provide this report for Charter Large Company Stock Value Fund
(the "Fund"), sub-advised by John A. Levin & Co., Inc., covering the six months
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 VALUE FUND
SUB-ADVISER'S UPDATE
PORTFOLIO COMMENTS
Unlike the first quarter, when performance was narrowly focused on technology (a
generally challenging environment for the Fund's investment style), in the
second quarter, the market showed greater breadth, despite a lack of clear
leadership. This investment environment provided a more favorable investment
framework for our style. Stocks that contributed to the quarter's performance
include Nabisco Holdings, +63.4%; Eli Lilly, +59.9%; Johnson & Johnson, +45.6%;
John Hancock, +31.1%; Viacom "B," +29.3%; Coca-Cola, +22.7%; Anheuser-Busch,
+20.5%; and Hewlett-Packard, +20.2%. Conversely, detractors from performance
included Honeywell,
_
1
<PAGE>
-35.7%; Rockwell International, -24.1%; Target, -22.3%; Sabre Group Holdings,
-21.9%; and Federated Department Stores, -20.4%.
PERFORMANCE
For the second quarter and since its inception (01/20/00), the Fund's
Institutional Class returned 1.49% and 8.80%, respectively. The S&P 500 Index
returned -2.93% and -1.00%, respectively for the quarter and year-to-date. The
Fund's Premier and Retail Classes both returned 1.49% for the second quarter,
and they returned 8.80% and 8.70%, respectively, since inception.
OUTLOOK
As we look ahead, there are numerous, often contradictory and sometimes
confusing signals. Clearly, the economy has slowed. This is reflected in slower
auto sales, housing starts and (marginally) reduced consumer confidence. Similar
trends are evident in the industrial and manufacturing sectors of the economy,
and notwithstanding the Government's budget surplus, net borrowing has increased
as a result of strong increases in corporate debt. Consumer borrowing has also
trended strongly upward.
Although the Federal Reserve Board (Fed) did not vote to increase interest rates
for a seventh time at its June 28th meeting, it is clear that the impact of
increasing interest rates orchestrated by the Fed over the past 12 months will
likely exacerbate the slowdown of the U.S. economy, especially given increasing
debt levels. Therefore, as we enter the third quarter, we are intensely
concerned with year-over-year earnings comparisons, particularly as we have
observed that fewer and fewer companies have the ability to pass on increasing
costs (i.e., labor, raw material and borrowing) through increased pricing.
In contrast to our slowing domestic economy, European economies are rebounding
sharply and developing economies in Latin America and the Far East are generally
gaining. Of the major economies, only Japan stands out for its continued
weakness.
_
2
We continue to be concerned with margin pressures on corporate earnings relative
to a generally strong consensus view of earnings at individual companies. Also,
the market conceivably could narrow again and be dominated by leading technology
names if interest rates stay relatively low, pressures generally exist on
corporate margins and strong top line results continue at growth companies.
Recently, we have observed the stock market punishing smaller cap technology
companies, while the larger cap names -- which have a greater impact on market
indexes -- have held up relatively well.
As always, we remain focused on our strategy of value investing, searching for
new ideas primarily among stocks that are out of favor or that have suffered
temporary setbacks. The current market has provided many investment ideas that
pass our initial screen -- being substantially off a 52-week high, or more
ideally, near a 52-week low and offering value and potential.
We will continue to monitor problems that could impact valuations, such as
declining profit margins, increasing corporate debt and shifting investor
sentiment.
_
3
<PAGE>
CHARTER LARGE COMPANY STOCK
VALUE FUND
INVESTMENTS IN SECURITIES
JUNE 30, 2000 (UNAUDITED)
MARKET
PRINCIPAL VALUE
(000) (000)
-----------------------------------------------------------------
CONVERTIBLE BONDS - 1.88% (Cost - $156)
ELECTRONICS - 1.88%
Hewlett Packard Co., Zero Coupon,
10/14/2017 225 $ 213
----------
NUMBER
OF
SHARES
----------
PREFERRED STOCK - 5.3% (Cost - $491)
ENTERTAINMENT - 5.3%
News Corp. Ltd. ADR 12,700 603
----------
COMMON STOCK - 87.9%
AUTOMOTIVE - 4.3%
Ford Motor Co. 4,000 172
General Motors Corp. 1,900 167
Rockwell Int'l. Corp. 4,600 145
----------
484
----------
COMMUNICATIONS - 6.4%
Bell Atlantic Corp. 6,200 315
BellSouth Corp. 8,200 341
Pegasus Communications Corp. * 1,400 69
----------
725
----------
COMPUTER SERVICES - 3.8%
Automatic Data Processing Corp. 2,400 129
First Data Corp. 5,300 263
Sabre Group Holdings, Inc. 1,445 41
----------
433
----------
CONSUMER PRODUCTS - 5.9%
Anheuser-Busch Companies, Inc. 3,200 239
The Notes to Financial Statements are an integral part of these statements.
_
4
MARKET
NUMBER OF VALUE
SHARES (000)
-----------------------------------------------------------------
Coca-Cola Co. 2,300 $ 132
Nabisco Holdings Corp. 4,400 231
Seagram Co. Ltd. 1,200 70
----------
672
----------
DIVERSIFIED - 4.4%
General Electric Co. 5,100 270
United Technologies Corp. 3,900 230
----------
500
----------
ELECTRONICS - 13.1%
Compaq Computer Corp. 10,600 $ 271
Emerson Electric Co. 2,400 145
Hewlett Packard Co. 1,200 150
International Business Machines 900 99
Koninklijke Philips Electrs. Corp. ADR 6,800 323
Seagate Technology * 3,600 198
Texas Instruments, Inc. 3,600 247
Xerox Corp. 4,400 91
----------
1,524
----------
ENTERTAINMENT - 8.3%
Disney Walt Co. 3,900 151
Fox Entmt. Group, Inc. * 5,900 179
Grupo Televisa ADR 1,600 110
Tribune Co. 8,200 287
Viacom, Inc. * 3,000 205
-
----------
932
----------
FINANCIAL - 13.2%
Aetna, Inc. 2,500 160
The Notes to Financial Statements are an integral part of these statements.
_
5
<PAGE>
CHARTER LARGE COMPANY
STOCK VALUE FUND
INVESTMENTS IN SECURITIES CONTINUED
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
-----------------------------------------------------------------
Aon Corp. 9,000 $ 280
Bank of New York, Inc. 5,300 246
FleetBoston Fin'l Corp. 6,000 204
John Hancock Fin'l. Svcs., Inc. 8,000 190
MetLife Inc. 3,800 80
Northern Trust 2,200 143
Tokio Marine & Fire Ins. Ltd. ADR 1,000 60
XL Capital Ltd. 3,700 200
----------
1,563
----------
MANUFACTURING - 8.0%
Black & Decker Corp. 3,300 130
Gillette Co. 5,400 189
Honeywell Int'l, Inc. 3,500 118
Tyco Int'l Ltd. 3,400 161
Visteon Corp. 1 6
----------
604
----------
MEDICAL - 6.6%
American Home Products Corp. 4,100 241
Johnson & Johnson 1,600 163
Lilly, Eli & Co. 1,000 100
Pharmacia Corp. 4,800 248
----------
752
----------
OIL AND GAS - 10.7%
Conoco, Inc. 6,700 147
du Pont (E.I) De Nemours & Co. 4,000 175
Schlumberger Ltd. 3,700 276
The Notes to Financial Statements are an integral part of these statements.
_
6
MARKET
NUMBER VALUE
OF SHARES (000)
-----------------------------------------------------------------
Unocal Corp. 3,600 $ 119
Williams Companies, Inc. 11,800 492
----------
1,209
----------
RETAIL - 2.4%
Federated Dept. Stores, Inc. * 4,200 142
Target Corp. 2,300 133
----------
275
----------
UTILITIES - 2.6%
DTE Energy Co. 3,900 119
Keyspan Corp. 5,600 172
----------
291
----------
TOTAL COMMON STOCKS - 87.9%
(Cost $9,423) 9,964
----------
SHORT-TERM OBLIGATIONS - 5.2%
MONEY MARKET FUND
Charter Money Market Fund 591,000 591
----------
TOTAL SHORT-TERM OBLIGATIONS
(Cost $591) 591
----------
TOTAL INVESTMENT IN SECURITIES - 100.3%
(Total Cost $10,661) 11,371
Cash and Other Assets Less Liabilities - (0.3%) (34)
----------
NET ASSETS - 100.0% $ 11,337
==========
* Non-income producing securities
The Notes to Financial Statements are an integral part of these statements.
_
7
<PAGE>
-------------------------------------------------------------
CHARTER LARGE COMPANY STOCK VALUE FUND
TEN LARGEST POSITIONS (UNAUDITED)
(000)
News Corp Ltd. ADR $ 603 5.3%
Williams Companies, Inc. 492 4.3%
BellSouth Corp 341 3.0%
Koninklijke Philips Electrs. ADR 323 2.8%
Bell Atlantic Corp 315 2.8%
Tribune Co. 287 2.5%
Aon Corp 280 2.5%
Schlumberger Ltd. 276 2.4%
Compaq Computer Corp 271 2.4%
General Electric Co. 270 2.4%
-------------------------------------------------------------
The Notes to Financial Statements are an integral part of these statements.
_
8
CHARTER LARGE COMPANY STOCK
VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
<TABLE>
<CAPTION>
(IN THOUSANDS)
--------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments in securities at value (Cost - $10,661) $ 11,371
Receivable for investments sold 17
Interest and dividends receivable 8
Other 12
-------------
Total assets 11,408
-------------
LIABILITIES:
Payable for investments purchased 36
Custodian fees payable 8
Accrued advisory fees payable 7
Administrative services payable 6
Accrued audit and legal fees payable 7
12b-1 and sub-accounting fees payable to distributor 4
Other accrued expenses 3
-------------
Total liabilities 71
-------------
NET ASSETS $ 11,337
=============
SHARES OUTSTANDING
Institutional Class ($10.88 net asset value per share) 450
=============
Premier Class ($10.88 net asset value per share) 481
=============
Retail Class ($10.87 net asset value per share) 111
=============
COMPONENTS OF NET ASSETS:
Paid in capital $ 10,443
Undistributed net investment income 28
Accumulated net realized gain on investments 156
Unrealized appreciation of investments 710
-------------
NET ASSETS $ 11,337
=============
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
_
9
<PAGE>
CHARTER LARGE COMPANY STOCK
VALUE FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD JANUARY 20, 2000*
TO JUNE 30, 2000 (UNAUDITED)
(IN THOUSANDS)
--------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 63
Interest 12
------------------
75
EXPENSES:
Investment advisory fees 35
Registration fees 16
Custodian fees and expenses 12
Administrative services 9
Auditing and legal fees 8
Sub-accounting fees 5
Shareholder reports 3
12b-1 fees 1
Other 2
------------------
Total expenses 91
Less expenses waived by adviser or distributor (44)
------------------
Net expenses 47
------------------
NET INVESTMENT INCOME 28
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain from securities transactions 156
Unrealized appreciation of investments 710
------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 866
------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 894
==================
* Commencement of operations
The Notes to Financial Statements are an integral part of these statements.
__
10
CHARTER LARGE COMPANY STOCK
VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD JANUARY 20, 2000*
TO JUNE 30, 2000 (UNAUDITED)
(IN THOUSANDS)
--------------------------------------------------------------------------------
OPERATIONS:
Net investment income $ 28
Net realized gain from securities transactions 156
Unrealized appreciation of investments 710
--------------------
Net increase in net assets from operations 894
--------------------
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 4,870
Net asset value of shares issued to shareholders
in reinvestment of dividends and distributions -
--------------------
4,870
Cost of shares redeemed (47)
--------------------
4,823
--------------------
Retail Class
Net proceeds from sales of shares 1,126
Net asset value of shares issued to shareholders
in reinvestment of dividends and distributions -
--------------------
1,126
Cost of shares redeemed (6)
--------------------
1,120
--------------------
Net increase from Fund share transactions 10,443
--------------------
NET INCREASE IN NET ASSETS 11,337
NET ASSETS:
Beginning of period -
--------------------
End of period (including undistributed net investment
income of $28) $ 11,337
====================
* Commencement of operations
The Notes to Financial Statements are an integral part of these statements.
__
11
<PAGE>
CHARTER LARGE COMPANY STOCK
VALUE 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 485
Shares issued in reinvestment of dividends and
distributions -
------------------
485
Shares redeemed (4)
------------------
Net increase in shares outstanding 481
==================
RETAIL CLASS
Shares sold 112
Shares issued in reinvestment of dividends and
distributions -
------------------
112
Shares redeemed (1)
------------------
Net increase in shares outstanding 111
==================
* Commencement of operations
The Notes to Financial Statements are an integral part of these statements.
__
12
CHARTER LARGE COMPANY STOCK
VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES. Charter Large Company Stock Value 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 Value Fund seeks long-term capital appreciation by investing
principally in common stocks of large U.S. companies with a market
capitalization above $5 billion deemed, at the time of purchase, to be
undervalued relative to their present and/or future prospects and after the
stocks have declined from recent highs. 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
__
13
<PAGE>
CHARTER LARGE COMPANY STOCK
VALUE FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED) CONTINUED
at the last sale price or, if there has been no sale that 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
__
14
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 0.75% 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 ($1,236 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
__
15
<PAGE>
CHARTER LARGE COMPANY STOCK
VALUE FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED) CONTINUED
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 ($4,416 and $989,
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
$12,085,715 and $2,171,683, respectively.
At June 30, 2000, the cost of securities for federal income tax purposes was
$10,661,003. The Fund had net unrealized appreciation of investment of $709,794,
consisting of gross unrealized appreciation of $1,212,459 and gross unrealized
depreciation of $502,665 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 96% of the Fund.
__
16
6. FINANCIAL HIGHLIGHTS. The following per share data is computed on the basis
of a share outstanding throughout the period:
<TABLE>
<CAPTION>
INSTITUTIONAL PREMIER RETAIL
CLASS CLASS CLASS
-------------------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE
PERIOD PERIOD PERIOD
1/24/00(4) 1/24/00(4) 1/24/00(4)
TO TO TO
(UNAUDITED) 6/30/00 6/30/00 6/30/00
-------------------------------------------------------------------------------------------------
<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 0.03 0.03 0.01
Net realized and unrealized gain on securities 0.85 0.85 0.86
------ ------- -------
TOTAL FROM INVESTMENT OPERATIONS 0.88 0.88 0.87
------ ------- -------
LESS DISTRIBUTIONS:
Dividends from net investment income - - -
Distributions from capital gains - - -
------- ------- -------
TOTAL DISTRIBUTIONS - - -
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 10.88 $ 10.88 $ 10.87
======== ======== =======
TOTAL RETURN (1) 8.80% (2) 8.80% (2) 8.70% (2)
RATIOS TO AVERAGE NET ASSETS
Expenses 0.80% (3) 1.00% (3) 1.25% (3)
Net investment income 0.78% (3) 0.58% (3) 0.32% (3)
Fees and expenses waived or borne by the
Adviser or Distributor 0.76% (3) 0.76% (3) 0.88% (3)
Portfolio turnover 26% (2) 26% (2) 26% (2)
Net assets, end of period (000 omitted) $ 4,897 $ 5,229 $ 1,211
</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.
__
17
<PAGE>
CHARTER LARGE COMPANY STOCK
VALUE FUND
Charter Large Company Stock Value Fund is an open-end, diversified management
investment company that invests primarily in common stocks of large U.S.
companies with a market capitalization above $5 billion deemed, at the time of
purchase, to be undervalued relative to their present and/or future prospects
and after the stocks have declined from recent highs. 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 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
[CIGNA TREE LOGO GRAPHIC APPEARS HERE]
CIGNA FINANCIAL SERVICES, INC.
P.O. Box 150476 . Hartford, CT 06115-0476
www.cigna.com . Member NASD/SIPC
545722
________________________________________________________________________________
CIGNA FUNDS GROUP
________________________________________________________________________________
[A BUILDING GRAPHIC APPEARS IN THE BACKGROUND OF THIS PAGE]
CHARTER FUNDS/SM/
CHARTER
LARGE
COMPANY
STOCK
VALUE
FUND
Semiannual Report
June 30, 2000
[CIGNA TREE LOGO GRAPHIC APPEARS HERE]
CIGNA Financial Services, Inc.
