<PAGE>
DEAR SHAREHOLDERS:
We are pleased to provide this initial report for Charter Small Company Stock
Value Fund (the "Fund"), sub-advised by Berger LLC which has in turn hired
Perkins, Wolf, McDonnell & Company, 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 SMALL COMPANY STOCK VALUE FUND
SUB-ADVISER'S UPDATE
THE MARKET ENVIRONMENT
Large swings in stock prices were not uncommon during the quarter. As the
Federal Reserve Board (Fed) implemented its campaign to fight inflation, higher
interest rates began to wear on corporate profits as a number of high-profile
companies reannounced disappointing earnings. The effects were felt across a
broad range of sectors, from high-flying technology issues to old economy
industrial stocks. The result was a renewed emphasis on valuation that caused
the value style of investing to outperform its growth counterpart for the
quarter.
PORTFOLIO COMMENTS
The results across sectors in the Fund were as mixed as the market in general.
Financial and consumer stocks were among the casualties of higher interest
rates. Poor performers this quarter included Republic Security Financial (1.0%
of assets) and Abercrombie and Fitch (1.8% of assets).
_
1
<PAGE>
Overall, energy continued to perform well. A significant spike in natural gas
prices presented us with the opportunity to reduce our energy exposure as price
targets for the companies we own were met.
The Real Estate Investment Trust (REIT) industry was another group that
performed well during the quarter. In addition to providing an 8% annualized
dividend yield, REIT stocks appreciated 10% on average. Once again, we used this
strength to pare back our exposure.
While we took advantage of the strength in energy and real estate to make
opportunistic sales, we were quick to redeploy the cash into groups that we call
"fallen growth stocks." Positions were initiated in companies such as Kronos
Inc. (0.6% of assets), Micros Systems (0.2% of assets) and Transaction System
Architects Inc. (1.1% of assets).
PERFORMANCE
For the second quarter and since its inception (01/21/00), the Fund's
Institutional Class returned 2.24% and 5.00%, respectively. The Russell 2000
Index returned -3.78% and 3.04%, respectively for the quarter and year-to-date.
The Fund's Premier and Retail Classes returned 2.14% and 2.04%, respectively,
for the second quarter and 4.90% and 4.80%, respectively, since inception.
OUTLOOK
Looking ahead, we continue to believe that the Fund is well positioned to
benefit from a renewed focus on valuation. As the Fed nears the end of its
tightening program, we believe that a number of sectors are poised to rebound as
the market returns to more normal valuations. Furthermore, it is our belief that
the steep discounts in the small cap arena cannot continue and that the inherent
value in these companies must be realized. In the last year, we have seen over
10% of the Fund's holdings either bought out by larger entities or taken private
at significant premiums. We believe that as long as these discounts persist, the
pace of merger and acquisition activity will continue to pick up and one way or
another, the underlying value will be realized.
_
2
CHARTER SMALL COMPANY
STOCK VALUE FUND
INVESTMENTS IN SECURITIES
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
-----------------------------------------------------------------
COMMON STOCKS - 94.6%
BANKING - 14.2%
Community Bank Sys., Inc. 5,240 $ 116
Community First Bankshares 9,860 161
FNB Corp. 9,450 195
Interwest Bancorp, Inc. 21,010 294
Medford Bancorp, Inc. 12,000 169
Republic Sec. Financial Corp. 22,000 110
Seacoast Fin'l Services, Corp. 16,500 157
Warren Bancorp, Inc. 12,000 85
Webster Fin'l Corp. 12,500 277
----------
1,564
----------
CLOTHING - 3.3%
Wolverine Worldwide, Inc. 37,000 365
----------
COMMUNICATIONS EQUIPMENT - 3.0%
Federal Signal 20,000 330
----------
COMPUTER SERVICES - 4.8%
Complete Business Solutions * 7,500 132
Computer Horizons Corp. 12,500 168
Structural Dynamics * 15,250 230
----------
530
----------
CONSTRUCTION - 1.4%
Lennar Corp. 7,500 152
----------
CONSUMER PRODUCTS - 0.2%
Vlasic Foods Int'l, Inc.* 16,500 27
----------
ENTERTAINMENT - 1.2%
Landrys Seafood Restaurants 15,000 127
----------
The Notes to Financial Statements are an integral part of these statements.
_
3
<PAGE>
CHARTER SMALL COMPANY
STOCK VALUE FUND
INVESTMENTS IN SECURITIES CONTINUED
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
-----------------------------------------------------------------
HEALTH CARE - 3.7%
Manor Care * 37,000 $ 259
Omnicare, Inc. 15,810 143
----------
402
----------
INSURANCE - 5.2%
Horace Mann Educators Corp 14,000 210
Old Rep. Int'l. Corp. 22,000 363
----------
573
----------
MORTGAGE BANKERS - 5.6%
Pulte Corp. 12,000 260
Ryland Group, Inc. 16,000 354
----------
614
----------
MANUFACTURING - 17.5%
Briggs & Stratton Corp. 5,000 171
Champion Enterprises 9,500 46
Circor International, Inc. 10,000 82
Kaydon Corp. 5,000 105
Kronos Inc. * 2,500 65
LA-Z Boy Inc. 11,000 154
Micros Sys Inc. * 1,280 24
Rayonier, Inc. 5,000 179
R. P. M., Inc. 16,450 167
Stewart & Stevenson Services, Inc. 18,000 271
Thomas Industries, Inc. 20,000 354
Wabash Nat'l. Corp. 11,000 131
Watts Industries 13,810 174
----------
1,923
----------
The Notes to Financial Statements are an integral part of these statements.
_
4
MARKET
NUMBER OF VALUE
SHARES (000)
-----------------------------------------------------------------
MEDICAL - 1.3%
Steris Corp. * 16,000 $ 142
----------
MISCELLANEOUS - 4.8%
AVT Corp. 19,000 140
Kforce Com Inc. * 18,000 125
Interim Services, Inc. * 15,000 266
----------
531
----------
OIL & GAS - 4.4%
Key Energy Group, Inc. * 25,000 241
Mitchell Energy & Dev C-CL B 7,500 241
----------
482
----------
PLASTICS - 3.3%
A. Schulman, Inc. 30,000 362
----------
REAL ESTATE INVESTMENT TRUSTS - 10.1%
IRT Property Co. 15,000 128
Gables Residential Trust 11,000 284
Home Pptys. NY, Inc. 8,000 240
Parkway Pptys. Inv. 5,000 153
Summit Properties, Inc. 14,500 305
----------
1,110
----------
RETAIL
Abercrombie and Fitch Co. * 16,000 195
AnnTaylor Stores Corp. * 7,750 257
Caseys Gen. Stores, Inc. 8,500 88
Pier 1 Imports, Inc. 15,000 146
----------
686
----------
SOFTWARE - 2.8%
JDA Software Group, Inc. * 4,450 85
The Notes to Financial Statements are an integral part of these statements.
_
5
<PAGE>
CHARTER SMALL COMPANY
STOCK VALUE FUND
INVESTMENTS IN SECURITIES CONTINUED
JUNE 30, 2000 (UNAUDITED)
MARKET
NUMBER OF VALUE
SHARES (000)
-----------------------------------------------------------------
Mentor Graphics Corp. 5,260 $ 105
Transaction Systems Architects * 7,000 120
----------
310
----------
TRANSPORTATION - 1.7%
CNF Transn. Inc. 8,000 182
----------
TOTAL COMMON STOCKS - 94.7%
(Cost $10,487) 10,412
----------
SHORT-TERM OBLIGATIONS - 5.9.%
MONEY MARKET FUND
Charter Money Market Fund 656,000 656
----------
TOTAL SHORT-TERM OBLIGATIONS
(Cost $656) 656
----------
TOTAL INVESTMENT IN SECURITIES - 100.6%
(Total Cost $11,143) 11,068
Cash and Other Assets Less Liabilities - (-0.6%) (65)
----------
NET ASSETS - 100.0% $ 11,003
==========
* Non-Income producing securities
-----------------------------------------------------------------
CHARTER SMALL COMPANY STOCK VALUE FUND
TEN LARGEST POSITIONS (UNAUDITED)
(000)
Wolverine World Wide, Inc. $ 365 3.3%
Old Rep. Int'l, Corp. 363 3.3%
Schulman A., Inc 362 3.3%
Ryland Group, Inc. 354 3.2%
Thomas Industries, Inc. 354 3.2%
Federal Signal 330 3.0%
Summit Properties, Inc. 305 2.8%
Interwest Bancorp, Inc. 294 2.7%
Gables Residential Trust 284 2.6%
Interim Services, Inc. 266 2.4%
-----------------------------------------------------------------
The Notes to Financial Statements are an integral part of these statements.
_
6
CHARTER SMALL COMPANY
STOCK VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
(IN THOUSANDS)
--------------------------------------------------------------------------------
ASSETS:
Investments in securities at value (Cost - $11,143) $ 11,068
Receivable for investments sold 44
Interest and dividends receivable 11
Other 14
---------------
Total assets 11,137
---------------
LIABILITIES:
Payable for investments purchased 97
Accrued advisory fees payable 9
Custodian fees payable 7
Accrued audit and legal fees payable 7
Administrative services payable 6
12b-1 and sub-accounting fees payable to distributor 3
Other accrued expenses 5
---------------
Total liabilities 134
---------------
NET ASSETS $ 11,003
===============
SHARES OUTSTANDING
Institutional Class ($10.50 net asset value per share) 450
===============
Premier Class ($10.49 net asset value per share) 482
===============
Retail Class ($10.48 net asset value per share) 116
===============
COMPONENTS OF NET ASSETS:
Paid in capital $ 10,484
Undistributed net investment income 82
Accumulated net realized gain on investments 512
Unrealized depreciation of investments (75)
---------------
NET ASSETS $ 11,003
===============
The Notes to Financial Statements are an integral part of these statements.
_
7
<PAGE>
CHARTER SMALL COMPANY
STOCK VALUE FUND
STATEMENT OF OPERATIONS
FOR THE PERIOD JANUARY 20, 2000* TO
JUNE 30, 2000 (UNAUDITED)
(IN THOUSANDS)
--------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividends $ 131
Interest 6
-------------------
137
EXPENSES:
Investment advisory fees 46
Registration fees 16
Custodian fees and expenses 14
Administrative services 9
Auditing and legal fees 8
Sub-accounting fees 5
Shareholder reports 3
12b-1 fees 1
Other 2
-------------------
Total expenses 104
Less expenses waived by adviser or distributor (49)
-------------------
Net expenses 55
-------------------
NET INVESTMENT INCOME 82
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain from securities transactions 512
Unrealized depreciation of investments (75)
-------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 437
-------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 519
===================
* Commencement of operations
The Notes to Financial Statements are an integral part of these statements.
_
8
CHARTER SMALL 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 $ 82
Net realized gain from securities transactions 512
Unrealized depreciation of investments (75)
-------------------
Net increase in net assets from operations 519
-------------------
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 4,830
Net asset value of shares issued to shareholders
in reinvestment of dividends and distributions -
-------------------
4,830
Cost of shares redeemed (12)
-------------------
4,818
-------------------
Retail Class
Net proceeds from sales of shares 1,188
Net asset value of shares issued to shareholders
in reinvestment of dividends and distributions -
-------------------
1,188
Cost of shares redeemed (22)
-------------------
1,166
-------------------
Net increase from Fund share transactions 10,484
-------------------
NET INCREASE IN NET ASSETS 11,003
NET ASSETS:
Beginning of period -
-------------------
End of period (including undistributed net
investment income of $82) $ 11,003
===================
* Commencement of operations
The Notes to Financial Statements are an integral part of these statements.
_
9
<PAGE>
CHARTER SMALL 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 483
Shares issued in reinvestment of dividends and
distributions -
-------------------
483
Shares redeemed (1)
-------------------
Net increase in shares outstanding 482
===================
RETAIL CLASS
Shares sold 118
Shares issued in reinvestment of dividends and
distributions -
-------------------
118
Shares redeemed (2)
-------------------
Net increase in shares outstanding 116
===================
* Commencement of operations
The Notes to Financial Statements are an integral part of these statements.
__
10
CHARTER SMALL COMPANY
STOCK VALUE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES. Charter Small Company Stock Value 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 Charter
Small Company Stock Value Fund seeks long-term capital appreciation by investing
principally in common stocks of small U.S. companies with a market
capitalization at the time of purchase of less than $1 billion whose stock
prices are believed to be undervalued. 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
__
11
<PAGE>
CHARTER SMALL COMPANY
STOCK VALUE FUND
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED) CONTINUED
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
__
12
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 1.00% 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 1.05%
annually of average daily net assets for the Institutional Class, 1.25% annually
of average daily net assets for the Premier Class, and 1.50% 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 ($1,225 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
__
13
<PAGE>
CHARTER SMALL 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 ($4,352 and $980,
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
$14,397,669 and $4,423,171, respectively.
At June 30, 2000, the cost of securities for federal income tax purposes was
$11,165,421. The Fund had net unrealized depreciation of investment of $97,696,
consisting of gross unrealized appreciation of $742,953 and gross unrealized
depreciation of $840,649 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.
__
14
CHARTER SMALL COMPANY
STOCK VALUE FUND
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 0.09 0.08 0.06
Net realized and unrealized gain on securities 0.41 0.41 0.42
------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS 0.50 0.49 0.48
------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income - - -
Distributions from capital gains - - -
-------- -------- --------
TOTAL DISTRIBUTIONS - - -
-------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 10.50 $ 10.49 $ 10.48
======== ======== ========
TOTAL RETURN(1) 5.00% (2) 4.90% (2) 4.80% (2)
RATIOS TO AVERAGE NET ASSETS
Expenses 1.05% (3) 1.25% (3) 1.50% (3)
Net investment income 1.92% (3) 1.72% (3) 1.46% (3)
Fees and expenses waived or borne by the Adviser or
Distributor 0.94% (3) 0.94% (3) 0.96% (3)
Portfolio turnover 52% (2) 52% (2) 52% (2)
Net assets, end of period (000 omitted) $ 4,726 $ 5,059 $ 1,218
</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.
__
15
<PAGE>
CHARTER SMALL COMPANY
STOCK VALUE FUND
Charter Small Company Stock Value Fund is an open-end, diversified management
investment company that invests primarily in common stocks of small U.S.
companies with a market capitalization at the time of purchase of less than $1
billion whose stock prices are believed to be undervalued. 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
__
16
<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
545724
________________________________________________________________________________
CIGNA FUNDS GROUP
________________________________________________________________________________
[A BUILDING GRAPHIC APPEARS IN THE BACKGROUND OF THIS PAGE]
CHARTER FUNDS/SM/
CHARTER
SMALL
COMPANY
STOCK
VALUE
FUND
Semiannual Report
June 30, 2000
[CIGNA TREE LOGO GRAPHIC APPEARS HERE]
CIGNA Financial Services, Inc.
