<PAGE> 1
December 31, 1996
[Scenic view of Mt. Baker, Washington]
ANNUAL
REPORT
SAFECO Money Market Fund
SAFECO Tax-Free Money Market Fund
[SAFECO LOGO]
<PAGE> 2
PERFORMANCE INFORMATION
NO-LOAD CLASS
SAFECO MONEY MARKET FUND
AVERAGE WEEKLY YIELD FOR NINE-MONTH PERIOD ENDED DECEMBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION> IBC
MMKT Donoghue
<S> <C> <C>
04/02 4.52 4.70
04/09 4.31 4.68
04/16 4.50 4.70
04/23 4.44 4.67
04/30 4.46 4.68
05/07 4.47 4.67
05/14 4.51 4.67
05/21 4.50 4.67
05/28 4.50 4.67
06/04 4.48 4.69
06/11 4.51 4.68
06/18 4.53 4.69
06/25 4.57 4.71
07/02 4.60 4.73
07/09 4.58 4.72
07/16 4.63 4.73
07/23 4.80 4.73
07/30 4.70 4.74
08/06 4.69 4.78
08/13 4.71 4.75
08/20 4.65 4.74
08/27 4.66 4.73
09/03 4.64 4.74
09/10 4.59 4.74
09/17 4.64 4.75
09/24 4.63 4.75
10/01 4.58 4.74
10/08 4.64 4.75
10/15 4.70 4.76
10/22 4.67 4.74
10/29 4.67 4.75
11/05 4.66 4.74
11/12 4.64 4.74
11/19 4.67 4.75
11/26 4.66 4.75
12/03 4.66 4.78
12/10 4.63 4.74
12/17 4.67 4.76
12/24 4.69 4.78
12/31 4.71 4.82
</TABLE>
SAFECO TAX-FREE MONEY MARKET FUND
AVERAGE WEEKLY YIELD FOR NINE-MONTH PERIOD ENDED DECEMBER 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
IBC
TFMM Donoghue
<S> <C> <C>
04/01 2.91 2.83
04/08 2.74 2.69
04/15 2.95 2.84
04/22 3.13 2.99
04/29 3.27 3.17
05/06 3.23 3.14
05/13 3.17 3.13
05/20 3.22 3.12
05/27 3.15 3.06
06/03 3.20 2.97
06/10 2.87 2.73
06/17 2.94 2.79
06/24 2.99 2.88
07/01 3.00 2.85
07/08 2.80 2.65
07/15 2.53 2.38
07/22 2.91 2.81
07/29 3.05 2.94
08/05 2.98 2.92
08/12 2.97 2.91
08/19 3.04 2.98
08/26 2.91 2.90
09/02 2.94 2.91
09/09 2.84 2.81
09/16 2.93 2.88
09/23 3.03 2.99
09/30 3.13 3.09
10/07 2.89 2.81
10/14 2.97 2.87
10/21 2.99 2.94
10/28 2.99 2.96
11/04 2.94 2.84
11/11 2.94 2.85
11/18 3.03 2.92
11/25 3.00 2.93
12/02 3.08 3.00
12/09 2.78 2.72
12/16 2.92 2.89
12/23 3.17 3.11
12/30 3.27 3.27
</TABLE>
YIELDS ARE HISTORICAL AND NOT PREDICTIVE
OF FUTURE PERFORMANCE.
<PAGE> 3
LETTER FROM THE PRESIDENT
DECEMBER 31, 1996
TABLE OF CONTENTS
SAFECO Money Market Fund ............................................. 3
SAFECO Tax-Free Money Market Fund .................................... 7
Financial Statements ................................................. 15
Notes to Financial Statements ........................................ 18
[PHOTO OF DAVID F. HILL]
DEAR SHAREHOLDER:
SAFECO Mutual Funds have changed their fiscal year to coincide with the
calendar year, and so we present to you our annual report for 1996:
We entered 1996 with rather modest expectations for the equity markets and
look what happened. The S&P 500 gained 22.94% on the heels of its astonishing
37.50% growth in 1995.
The good news is, investors who had the conviction to stay invested in
common stocks were amply rewarded. For the second straight year, we're glad to
have been "in" the market, rather than "out."
The bad news is that such market conditions can cause amnesia--amnesia
when it comes to the volatile nature of the stock market (the S&P 500 delivered
1.32% in 1994), and forgetfulness regarding the diversification that bond and
money market funds provide.
The neglected cousins of 1996 were the bond markets. Bonds struggled
through the year--despite the fact inflation remained at bay--reversing
directions and ultimately delivering lackluster total returns. The broader
market as measured by Lehman Brothers Government/Corporate Index returned 2.90%
for the year.
Three elements seem to be props for the stock market. Inflation has
remained in control, corporate earnings have continued to grow and there has
been a fundamental shift in the way individuals invest. Investors are
increasingly recognizing the superior long-term potential of stocks. At the same
time they are
(Continued on next page.)
-1-
<PAGE> 4
LETTER FROM THE PRESIDENT (Continued)
taking control of more of their retirement savings.
While the shift from traditional company-controlled pensions to
employee-directed plans such as 401(k)s seems irreversible, it doesn't seem
possible for the stock market to sustain its present level of growth.
Still, we believe common stocks offer the potential for superior long-term
returns as they have over the past 70 years. At the same time, we remind you of
the historical level of stock market returns. Over the last 20 years, the S&P
500 has averaged 14%, not 23% or 38% as reflected in the performance of the past
two years.
All in all, our 1997 outlook is that the financial markets will do "okay."
We anticipate bonds will return their current interest rate, and be without big
gains or losses. But then, people should buy bonds for that stream of interest
anyway.
Stocks will have a more difficult time, especially if corporate earnings
fail to meet expectations. Nonetheless, there are always opportunities for stock
pickers. And that's what we do best.
/s/ David F. Hill
- ------------------------
David F. Hill, President
-2-
<PAGE> 5
REPORT FROM THE FUND MANAGER
SAFECO MONEY MARKET FUND
DECEMBER 31, 1996
[PHOTO OF NAOMI URATA]
In the 12 months ended December 31, 1996, the SAFECO Money Market Fund
returned 4.75%. On December 31, 1996, the Fund's seven-day yield was 4.71%,
while the average money fund seven-day yield, as reported by IBC/Donoghue, was
4.82%. The Consumer Price Index, a broad inflation measure, rose 3.30% for the
12 months ending December 31, 1996.
In the last quarter, 90-day commercial paper rates initially fell from
5.49% to 5.40% in November, then rose to 5.63% by December 31, 1996. The average
maturity of the Fund rose from 35 days in October to 45 days when it became
questionable whether the Federal Reserve would raise rates as anticipated. At
year end, the seven-day weighted average maturity was 36 days.
I invested in U.S. agency securities, commercial paper issued by top tier
corporations and bank certificates of deposit and notes. All of the securities
had less than 13 months to maturity. Four securities have a rate that floats
monthly so investors can benefit from higher yields if short-term rates continue
to rise. I reduced lower-yielding overnight investments from about $35 million
or 20% of total assets in the third quarter to $4.4 million or 2.8% of total
assets at year end.
I added XEROX CORPORATION and SMITH BARNEY to our approved securities
list. Both of these companies are rated in the top tier category.
I believe that the Federal Reserve will hold rates steady for the next few
months. After that, there is no consensus on their next move. The economic data
is mixed, but recently, the market has responded negatively to signs of strength
in the housing and
(Continued on next page.)
-3-
<PAGE> 6
REPORT FROM THE FUND MANAGER
SAFECO MONEY MARKET FUND
(Continued)
manufacturing sectors, which has caused rates to rise. I will maintain an
average maturity that is not highly sensitive to interest rate changes based on
that uncertainty.
/s/ Naomi Urata
- -------------------------
Naomi Urata
Money Market Fund Manager
Naomi Urata joined SAFECO in 1993 as a fixed-income analyst and began managing
the SAFECO Money Market Fund in August of 1994. She holds a Masters in
Management from Yale University and is a Chartered Financial Analyst.
HIGHLIGHTS
SAFECO MONEY
MARKET FUND
AS OF DECEMBER 31, 1996
SAFECO MONEY
MARKET FUND
TOP 5 CATEGORIES
<TABLE>
<CAPTION>
Top 5 Categories
<S> <C>
Floating Rate Medium-Term Notes 19%
Financial Services - Brokerage 15%
Asset Backed 12%
Finance - Diversified/Business 12%
Finance - Auto 12%
</TABLE>
<TABLE>
<C> <C>
7-DAY WEIGHTED AVERAGE MATURITY .................................... 36 DAYS
AVERAGE ANNUAL RETURN .............................................. 4.75%
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIO CREDIT QUALITY Percent
- ------------------------------------------------------------------------------
<S> <C>
Highest Rated(1) ................................................... 100%
Split Rated(2) ..................................................... 0
Not Rated(3) ....................................................... 0
---
100%
===
</TABLE>
(1) Rated highest quality by at least two nationally recognized rating
organizations or, when rated by only one organization, received its
highest rating.
(2) Rated highest by one organization and second highest by another.
(3) Although unrated, comparable in credit quality to securities in the
highest or split-rated categories, in the opinion of SAFECO Asset
Management Company, the Fund's investment advisor.
-4-
<PAGE> 7
PORTFOLIO OF INVESTMENTS
SAFECO MONEY MARKET FUND
AS OF DECEMBER 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (000's) VALUE (000's)
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL PAPER - 78.4%
ASSET BACKED - 12.3%
Apreco, Inc.
$4,000 5.48%, due 2/18/97 ............................ $3,971
4,000 5.30%, due 2/14/97 ............................ 3,974
4,000 Ciesco L.P
5.28%, due 1/17/97 ............................ 3,991
4,000 Corporate Asset Funding Co.
5.30%, due 1/08/97 ............................ 3,996
4,000 + Receivables Capital Corp. 4(2)
5.62%, due 1/23/97 ............................ 3,986
BANKING & FINANCE - 2.5%
4,000 Associates Corp. of
North America
5.28%, due 3/04/97 ............................ 3,964
BANKS - FOREIGN - 9.8%
4,000 Cheltenham & Gloucester
Building Society
5.26%, due 3/24/97 ............................ 3,952
4,000 National Australia
Funding (DE), Inc.
5.45%, due 1/13/97 ............................ 3,993
Westpac Capital Corp.
4,000 5.32%, due 1/30/97 ............................ 3,983
4,000 5.32%, due 2/06/97 ............................ 3,979
CONGLOMERATES - 2.4%
$4,000 B.A.T. Capital Corp.
5.43%, due 2/19/97 ............................ $3,970
FINANCE - AUTO - 12.3%
Ford Motor Credit Co.
4,000 5.39%, due 1/28/97 ............................ 3,984
4,000 5.31%, due 1/14/97 ............................ 3,992
General Motors Acceptance Corp.
4,000 5.36%, due 2/04/97 ............................ 3,980
4,000 5.32%, due 2/20/97 ............................ 3,971
4,000 New Center Asset Trust
5.30%, due 5/08/97 ............................ 3,925
FINANCE - CONSUMER - 4.9%
Household Finance Corp.
4,000 5.32%, due 1/09/97 ............................ 3,995
4,000 5.31%, due 1/10/97 ............................ 3,995
FINANCE - DIVERSIFIED & BUSINESS - 12.3%
General Electric Capital Corp.
4,000 5.32%, due 1/15/97 ............................ 3,992
4,000 5.30%, due 1/22/97 ............................ 3,988
Heller Financial, Inc.
4,000 5.55%, due 1/07/97 ............................ 3,996
4,000 5.40%, due 2/11/97 ............................ 3,975
4,000 Transamerica Finance Corp.
5.30%, due 1/27/97 ............................ 3,985
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
-5-
<PAGE> 8
PORTFOLIO OF INVESTMENTS (CONTINUED)
SAFECO MONEY MARKET FUND
AS OF DECEMBER 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (000's) VALUE (000's)
- --------------------------------------------------------------------------------
<S> <C> <C>
FINANCIAL SERVICES - BROKERAGE - 14.7%
CS First Boston Group, Inc.
$3,950 5.32%, due 1/29/97 ............................ $ 3,934
4,000 5.31%, due 2/27/97 ............................ 3,966
Merrill Lynch & Co., Inc.
4,000 5.31%, due 1/31/97 ............................ 3,982
4,000 5.30%, due 5/01/97 ............................ 3,929
Smith Barney Inc. CP
3,950 5.31%, due 1/02/97 ............................ 3,949
4,000 5.30%, due 1/16/97 ............................ 3,991
INSURANCE NON-AFFILIATED MULTI-LINE - 2.5%
4,000 Prudential Funding Corp.
5.30%, due 2/13/97 ............................ 3,975
METALS - 2.3%
3,728 BHP Finance (USA), Inc.
5.33%, due 1/24/97 ............................ 3,715
MISCELLANEOUS - 2.4%
4,000 Tasmanian Public Finance Corp.
5.34%, due 4/17/97 ............................ 3,937
--------
TOTAL COMMERCIAL PAPER ...................................... 126,915
--------
U.S. GOVERNMENT
AND AGENCY SECURITIES - 2.8%
FEDERAL HOME LOAN MORTGAGE ASSOCIATION
DISCOUNT NOTES - 2.8%
$4,470 5.70%, due 1/02/97 ............................ $ 4,469
--------
TOTAL U.S. GOVERNMENT
AND AGENCY SECURITIES ....................................... 4,469
--------
FLOATING RATE NOTES* - 19.5%
8,500 Dean Witter, Discover
5.57%, due 8/08/97 ............................ 8,500
8,000 First Bank FSB Fargo ND BN
5.53%, due 8/29/97 ............................ 7,999
7,000 Key Bank of Wa. BN
5.51%, due 12/10/97 ........................... 6,997
8,000 MBNA America Bank BN
5.64%, due 6/17/97 ............................ 8,000
--------
TOTAL FLOATING RATE NOTES ................................... 31,496
--------
TOTAL INVESTMENTS - 100.7% .................................. 162,880
Liabilities, less Other Assets .............................. (1,123)
--------
NET ASSETS .................................................. $161,757
========
</TABLE>
+ Securities are exempt from registration and restricted as to resale only
to dealers, or through a dealer to an "accredited investor" or a
"qualified institutional buyer". At December 31, 1996, such security is
Receivables Capital Corp. 4(2) at 5.62%, acquired 12/18/96, due 1/23/97.
The total value of this security is $3,986,262 or 2.5% of net assets.
* Securities have variable rates which change periodically based on
specified market rates or indices. Rates shown are those in effect on
December 31, 1996.
SEE NOTES TO FINANCIAL STATEMENTS
-6-
<PAGE> 9
REPORT FROM THE FUND MANAGER
SAFECO TAX-FREE MONEY MARKET FUND
December 31, 1996
[PHOTO OF MARY V. METASTASIO]
For the 12 months ended December 31, 1996, the SAFECO Tax-Free Money
Market Fund returned 3.07%. The Fund's seven-day average yield rose from 3.04%
to 3.30% during the six-month period ending December 31, 1996. For comparison,
IBC/Donoghue's Money Fund Report Averages showed an average seven-day yield of
3.27 % for tax-free money market funds on December 30, 1996.
As is always the case with municipal money markets, the yields were
somewhat volatile on that upward path. This happens because the tax-free market
is very much influenced by supply and demand, in addition to the general
interest rate and economic concerns that affect all markets.
The seasonal supply and demand factors were exacerbated by the fact that
investors' beliefs about what the Fed would do seemed to change daily. These
mood swings and general uncertainty helped move yields higher from late July
through the end of September. During the last quarter of 1996, investors calmed
down a bit and rates remained fairly stable until year end. Yields then moved up
to cyclical seasonal demand factors.
The SAFECO Tax-Free Money Market Fund has performed well in this
ever-changing environment. According to Lipper Analytical Services, based on
total return, the Fund ranked 27 of 133 tax-free money market funds for the year
ending December, 1996. The fund was 15 of 92 funds for
(Continued on next page.)
-7-
<PAGE> 10
REPORT FROM THE FUND MANAGER
SAFECO TAX-FREE MONEY MARKET FUND (Continued)
the five-year, and 9 of 57 funds for the ten-year periods.
The graph on the inside cover shows how the Fund's yield exceeded the
IBC/Donoghue Money Fund Report Averages for tax-free money market funds for the
reporting period.
Our style in managing the Fund is consistent, although the markets are
not. We have maintained a barbell structure, with the portfolio heavily weighted
in very short maturities, and smaller portions invested in longer maturities.
The assets invested in short maturities let us take advantage of interest rate
fluctuations, and those invested in longer maturities enable us to lock in
attractive yields.
So what does the future hold? As I write this, investors are still wary. I
cannot predict what will happen in the financial markets or what the economic
data will portend, but I am certain that I will continue to manage the Fund as I
have in the past: to provide shareholders quality, liquidity, and a competitive
yield that is exempt from federal income tax.
/s/ Mary V. Metastasio
- ----------------------
Mary V. Metastasio
Tax-Free Money
Market Fund Manager
Mary Metastasio joined SAFECO's investment department in 1985 as a securities
analyst and began managing the SAFECO Tax-Free Money Market Fund in 1987. She
holds a B.A. in Dramatic Art from Whitman College and an M.B.A. from the
University of Washington.
-8-
<PAGE> 11
HIGHLIGHTS
SAFECO TAX-FREE MONEY MARKET FUND
As of December 31, 1996
COMPARISON OF THE FUND'S
TAX-EQUIVALENT YIELDS TO THE AVERAGE
TAXABLE MONEY MARKET FUND YIELD
- --------------------------------------------------------------------------------
SAFECO Tax-Free Money Market Fund**
Tax Free Yield on 12/30/96 3.27%
IBC Donoghue* Yield on 12/30/96 3.27%
Tax Equivalent Yield
<TABLE>
<S> <C>
15% 3.88%
28% 4.58%
31% 4.78%
36% 5.16%
39.6% 5.46%
</TABLE>
* Represents IBC/Donoghue Taxable Money Fund on December 30, 1996.
** Represents the SAFECO Tax-Free Money Market Fund actual yield on December
30, 1996, and related tax-equivalent yields assuming various shareholder
tax brackets. Tax-equivalent yield comparisons vary with market
conditions.
<TABLE>
<CAPTION>
PORTFOLIO CREDIT QUALITY PERCENT
- --------------------------------------------------------------------------
<S> <C>
Highest Rated(1) .................................... 100%
Split Rated(2) ...................................... 0
Not Rated(3) ........................................ 0
----
100%
====
</TABLE>
(1) Rated highest quality by at least two nationally recognized rating
organizations or, when rated by only one organization, received its
highest rating.
(2) Rated highest by one organization and second highest by another.
(3) Although unrated, comparable in credit quality to securities in the
highest or split-rated categories, in the opinion of SAFECO Asset
Management Company, the Fund's investment advisor.
TOP 5 CATEGORIES
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Housing/Uninsured 16%
IDR/PCR *Utilities -Electric 13%
IDR/PCR *Air Transportation 8%
IDR/PCR *Miscellaneous 8%
IDR/PCR *Agricultural Machinery 5%
</TABLE>
*Industrial Development Revenue/Pollution Control Revenue
<TABLE>
<C> <C>
7-DAY WEIGHTED AVERAGE MATURITY ........................... 54 DAYS
AVERAGE ANNUAL RETURN ..................................... 3.07%
</TABLE>
<TABLE>
<CAPTION>
TOP FIVE STATES PERCENT OF NET ASSETS
- --------------------------------------------------------------------------------
<S> <C>
Washington .......................................... 13%
Texas ............................................... 12%
Arizona ............................................. 9%
Missouri ............................................ 7%
California .......................................... 6%
</TABLE>
-9-
<PAGE> 12
PORTFOLIO OF INVESTMENTS
SAFECO TAX-FREE MONEY MARKET FUND
As of December 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (000's) VALUE (000's)
- --------------------------------------------------------------------------------
<S> <C>
MUNICIPAL BONDS - 96.7%
ALASKA - 3.1%
Alaska Industrial Development
and Export Authority Revenue
$1,265 + 4.20%, due 7/01/98,
put date 1/07/97 .............................. $1,265
990 4.20%, due 7/01/01,
put date 1/07/97 .............................. 990
Arizona - 8.8%
3,600 Apache County Industrial
Development Authority Pollution
Control Revenue (Tucson
Electric Power Co. Project)
4.20%, due 6/15/20,
put date 1/07/97 .............................. 3,600
1,000 Apache County Industrial
Development Authority Revenue
(Tucson Electric Power Co.
Springerville Project)
4.20%, due 12/15/18,
put date 1/07/97 .............................. 1,000
800 Pima County Industrial
Development Authority
Revenue (Tucson Electric
Power Co. Projects)
4.20%, due 12/01/22,
put date 1/07/97 .............................. 800
1,000 Tucson Industrial Development
Authority Revenue (Tucson City
Center Parking Garage Project)
Series 1985 A
4.125%, due 6/01/15,
put date 1/07/97 .............................. 1,000
CALIFORNIA - 6.0%
$1,000 California Student Education
Loan Marketing Corp.
(Student Loan Revenue
Ref. Bonds)
3.85%, due 11/01/02,
put date 11/01/97 ............................. $1,000
1,000 Orange County Local
Transportation Authority
Sales Tax Revenue
3.60%, due 3/06/97 ............................ 1,000
1,300 Regional Airports
Improvement Corp. Fac.
American Airlines (LAX) Ser B
4.95%, due 12/01/24,
put date 1/01/97 .............................. 1,300
600 Regional Airports
Improvement Corp. Fac.
American Airlines (LAX) Ser G
4.95%, due 12/01/24,
put date 1/01/97 .............................. 600
500 South Coast Local Education
Agencies Pooled Tax and
Revenue Anticipation Notes
4.75%, due 6/30/97 ............................ 502
DISTRICT OF COLUMBIA - 1.4%
1,000 District of Columbia Supplemental
Student Loan Revenue
4.33%, due 7/01/04,
put date 7/01/97 .............................. 1,001
</TABLE>
+ If a put date is indicated, the Fund has a right to sell a specified
underlying security at an exercise price equal to the amortized cost of
the underlying security plus interest, if any, as of that date.
SEE NOTES TO FINANCIAL STATEMENTS
-10-
<PAGE> 13
PORTFOLIO OF INVESTMENTS (Continued)
SAFECO TAX-FREE MONEY MARKET FUND
As of December 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (000's) VALUE (000's)
- --------------------------------------------------------------------------------
<S> <C>
FLORIDA - 3.0%
$ 450 Dade County Equipment
Special Obligation Revenue
4.30%, due 10/01/99,
put date 1/07/97 .............................. $ 450
1,750 Florida Housing Finance Agency
Multi Family Revenue
4.50%, due 12/01/09,
put date 12/01/97 ............................. 1,750
GEORGIA - 3.7%
600 Burke County Development
Authority PCR (Georgia Power
Co.) 5th Series 1994
4.90%, due 7/01/24,
put date 1/01/97 .............................. 600
2,100 Municipal Electric Authority of
Georgia General Resolution
Projects Subordinated Bonds,
Series C
3.50%, due 3/01/20,
put date 4/03/97 .............................. 2,100
ILLINOIS - 3.2%
2,320 Chicago - O'Hare International
Airport Revenue 1984
4.15%, due 1/01/15,
put date 1/07/97 .............................. 2,320
IOWA - 2.7%
1,000 Iowa Municipalities Workers'
Compensation Association
Revenue
4.10%, due 7/01/97 ............................ 1,000
1,000 Iowa School Corporations
Warrant Certificates
4.75%, due 6/27/97 ............................ 1,004
KANSAS - 1.4%
$1,000 Wichita Revenue (CSJ
Health System)
4.30%, due 10/01/11,
put date 1/07/97 .............................. $1,000
LOUISIANA - 2.7%
1,000 Louisiana Public Facilities
Authority Special Insurance
Assessment Revenue
4.45%, due 12/01/13,
put date 1/07/97 .............................. 1,000
1,000 Louisiana Recovery
District Sales Tax
Bonds Series 1988
3.90%, due 7/01/97 ............................ 1,000
MARYLAND - 3.1%
2,000 Howard County Multifamily
Housing Revenue (Sherwood
Crossing Ltd. Partnership)
3.75%, due 6/01/08,
put date 6/01/97 .............................. 2,000
300 Montgomery County Industrial
Development
Revenue (Information Systems
& Networks)
3.80%, due 4/01/14,
put date 1/01/97 .............................. 300
MISSOURI - 7.2%
2,100 Kansas City Industrial
Development Authority
Multifamily Housing Revenue
(Coach House II Project)
3.90%, due 12/01/15,
put date 1/01/97 .............................. 2,100
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
-11-
<PAGE> 14
PORTFOLIO OF INVESTMENTS (Continued)
SAFECO TAX-FREE MONEY MARKET FUND
As of December 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (000's) VALUE (000's)
- --------------------------------------------------------------------------------
<S> <C>
MISSOURI (CONTINUED)
$ 600 Kansas City Industrial
Development Authority
Multifamily Housing Revenue
(J.C. Nichols Co.)
3.90%, due 5/01/15,
put date 1/01/97 .............................. $ 600
1,000 Missouri Health and Educational
Facilities Authority Educational
Facilities Revenue Bonds
(The Washington University)
Series 1996 C
4.75%, due 9/01/30,
put date 1/01/97 .............................. 1,000
1,600 St. Louis Planned Industrial
Expansion Authority Industrial
Development Revenue
(Italgrani U.S.A., Inc.)
3.80%, due 6/01/03,
put date 1/01/97 .............................. 1,600
MONTANA - 2.9%
2,110 Havre Industrial Development
Revenue (Safeway, Inc. Projects)
3.65%, due 6/01/06,
put date 6/01/97 .............................. 2,110
NEW YORK - 1.4%
1,000 New York State Energy R & D
Authority PCR (Long Island
Lighting Co. Project) 1985
Series B
3.30%, due 3/15/15,
put date 3/15/97 .............................. 1,000
OHIO - 4.0%
2,900 Cleveland-Cuyahoga County
Port Authority Revenue
(Rock and Roll Hall of Fame and
Museum Project)
4.25%, due 12/01/15,
put date 1/07/97 .............................. 2,900
OKLAHOMA - 1.4%
$1,000 Oklahoma Water Resources
Board State Loan Program
Revenue
3.75%, due 9/01/23,
put date 3/01/97 .............................. $1,000
OREGON - 2.5%
1,800 Port of Portland Pollution
Control Revenue (Reynolds
Metals ) Series 1985
4.95%, due 12/01/09,
put date 1/01/97 .............................. 1,800
PENNSYLVANIA - 0.2%
160 Commonwealth Tax Exempt
Mortgage Trust
4.50%, due 11/01/05,
put date 5/01/97 .............................. 160
SOUTH CAROLINA - 3.4%
1,500 York County Pollution Control
Revenue (North Carolina Electric
Membership Corp. Project)
Series N-6
3.80%, due 8/15/14,
put date 3/15/97 .............................. 1,500
1,000 York County Pollution Control
Revenue Saluda River Electric
Coop., Inc. Project
Series 1984 E-2
3.65%, due 8/15/14,
put date 2/15/97 .............................. 1,000
TENNESSEE - 5.3%
3,400 Hamilton County Industrial
Development Revenue
(Komatsu American
Manufacturing Corp.)
4.30%, due 11/01/05,
put date 1/07/97 .............................. 3,400
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
-12-
<PAGE> 15
PORTFOLIO OF INVESTMENTS (Continued)
SAFECO TAX-FREE MONEY MARKET FUND
As of December 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (000's) VALUE (000's)
- --------------------------------------------------------------------------------
<S> <C>
TENNESSEE (CONTINUED)
$ 500 Knox County Industrial
Development Board Industrial
Development Revenue
(Service Merchandise)
3.70%, due 12/15/08,
put date 1/15/97 .............................. $ 500
TEXAS - 11.6%
2,300 Cedar Hill Industrial
Development Corp. Revenue
(Minyard Properties Project)
3.75%, due 5/01/02,
put date 1/02/97 .............................. 2,300
200 Grapevine Industrial
Development Corp.
(American Airlines Inc. Project)
Series A1
4.95%, due 12/01/14,
put date 1/01/97 .............................. 200
2,000 Grapevine Industrial
Development Corp. (American
Airlines Inc. Project) Series B3
4.95%, due 12/01/14,
put date 1/01/97 .............................. 2,000
1,000 Lone Star Airport Improvement
Authority, Inc. (American
Airlines Inc. Project)
Revenue Series 1984 A-5
4.95%, due 12/01/14,
put date 1/01/97 .............................. 1,000
$1,000 Lone Star Airport Improvement
Authority, Inc. (American
Airlines Inc. Project)
Revenue Series 1984 B-2
4.95%, due 12/01/14,
put date 1/01/97 .............................. $1,000
1,000 Harris County Housing
Finance Corp.
Multifamily Housing Revenue
(Arbor II, Ltd. Project)
4.15%, due 10/01/05,
put date 10/01/97 ............................. 1,000
1,000 Tarrant County Housing
Finance Corp.
Multifamily Housing Revenue
(Lincoln Meadows Project)
Series 1988
4.10%, due 12/01/14,
put date 12/01/97 ............................. 1,000
VIRGINIA - 4.8%
2,500 Harrisonburg Development and
Housing Authority Multifamily
Housing Revenue (Rolling Brook
Village Apts. Project)
3.50%, due 2/01/09,
put date 2/01/97 .............................. 2,500
1,000 Peninsula Ports Authority of
Virginia Port Facility Revenue
(CSX Transportation, Inc. Project)
3.50%, due 12/15/12,
put date 2/07/97 .............................. 1,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
-13-
<PAGE> 16
PORTFOLIO OF INVESTMENTS (Continued)
SAFECO TAX-FREE MONEY MARKET FUND
As of December 31, 1996
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT (000's) VALUE (000's)
- --------------------------------------------------------------------------------
<S> <C>
Washington - 12.9%
$2,000 Chelan County Public Utility
District #1 Revenue
4.00%, due 6/01/15,
put date 1/07/97 ................................... $2,000
1,000 Richland Golf Enterprise
Revenue 1996
4.05%, due 12/01/21,
put date 1/07/97 ................................... 1,000
1,900 Washington State General
Obligation Series VR-96 A
4.15%, due 6/01/20,
put date 1/07/97 ................................... 1,900
2,045 Washington State Housing
Finance Commission Revenue
(Pioneer Human Services)
4.10%, due 7/01/11,
put date 1/07/97 ................................... 2,045
1,425 Washington State Housing
Finance Commission Revenue
(YMCA of Greater Seattle
Program)
5.25%, due 7/01/11,
put date 1/01/97 .................................. 1,425
$1,100 Washington State Housing
Finance Commission Revenue
(YMCA of Snohomish County
Program)
4.75%, due 8/01/19,
put date 1/01/97 ................................. $1,100
-------
TOTAL MUNICIPAL BONDS .......................................... 70,722
-------
OTHER INVESTMENTS - 0.1%
INVESTMENT COMPANIES:
76 Federated Tax-Exempt
Money Market Fund, Inc. .......................... 75
-------
TOTAL OTHER INVESTMENTS ........................................ 75
-------
TOTAL INVESTMENTS - 96.8% 70,797
Other Assets, less Liabilities ................................. 2,367
-------
NET ASSETS ..................................................... $73,164
=======
</TABLE>
Securities with a maturity of more than thirteen months have variable rates
and/or demand features which qualify them as short-term securities. Rates shown
are those in effect on December 31, 1996. These rates change periodically based
on specified market rate or indices.
SEE NOTES TO FINANCIAL STATEMENTS
-14-
<PAGE> 17
STATEMENTS OF ASSETS AND LIABILITIES
As of December 31, 1996
<TABLE>
<CAPTION>
SAFECO MONEY SAFECO TAX-FREE
(In Thousands, Except Per-Share Amounts) MARKET FUND MONEY MARKET FUND
- ---------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments, at Value $162,880 $ 70,797
Cash 1 --
Receivables
Investment Securities Sold -- 2,000
Trust Shares Sold 2,030 471
Interest 74 403
-------- --------
Total Assets 164,985 73,671
LIABILITIES
Payables
Trust Shares Redeemed 2,533 437
Investment Advisory Fees 71 32
Dividends 27 18
Notes Payable 540 --
Other 57 20
-------- --------
Total Liabilities 3,228 507
-------- --------
NET ASSETS $161,757 $ 73,164
======== ========
NO-LOAD CLASS:
Net Assets $161,356 $ 73,164
Trust Shares Outstanding 161,356 73,164
-------- --------
Net Asset Value, Offering Price, and
Redemption Price Per Share $ 1.00 $ 1.00
======== ========
CLASS A:
Net Assets $ 295
Trust Shares Outstanding 295
--------
Net Asset Value, Offering Price, and
Redemption Price Per Share $ 1.00
========
CLASS B:
Net Assets $ 106
Trust Shares Outstanding 106
--------
Net Asset Value, Offering Price, and
Redemption Price Per Share $ 1.00
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
-15-
<PAGE> 18
STATEMENTS OF OPERATIONS
For the Nine-Month Period Ended December 31, 1996
<TABLE>
<CAPTION>
SAFECO MONEY SAFECO TAX-FREE
(In Thousands) MARKET FUND MONEY MARKET FUND
- ------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME
Interest $ 6,815 $2,081
EXPENSES
Investment Advisory Fees 630 284
Transfer Agent Fees 325 54
Legal and Auditing Fees 18 14
Custodian Fees 17 10
Reports to Shareholders 25 4
Trustees' Fees 5 2
Loan Interest -- 3
------- ------
Total Expenses 1,020 371
------- ------
NET INVESTMENT INCOME AND NET CHANGE
IN NET ASSETS RESULTING FROM OPERATIONS $ 5,795 $ 1,710
======= =======
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
-16-
<PAGE> 19
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SAFECO MONEY SAFECO TAX-FREE
MARKET FUND MONEY MARKET FUND
------------------------------- --------------------------------
FOR THE FOR THE
NINE-MONTH FOR THE NINE-MONTH FOR THE
PERIOD ENDED YEAR ENDED PERIOD ENDED YEAR ENDED
(In Thousands) DEC. 31, 1996 MARCH 31, 1996 DEC. 31, 1996 MARCH 31, 1996
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS
Net Investment Income $ 5,795 $ 8,735 $ 1,710 $ 2,586
DIVIDENDS TO SHAREHOLDERS FROM
NET INVESTMENT INCOME
- No-Load Class (5,792) (8,735) (1,710) (2,586)
- Class A (2) -- -- --
- Class B (1) -- -- --
----------- ----------- ----------- -----------
Total (5,795) (8,735) (1,710) (2,586)
NET TRUST SHARE TRANSACTIONS
- No-Load (3,766) (6,836) (6,538) 2,382
- Class A 295 -- -- --
- Class B 106 -- -- --
----------- ----------- ----------- -----------
Total (3,365) (6,836) (6,538) 2,382
----------- ----------- ----------- -----------
TOTAL CHANGE IN NET ASSETS (3,365) (6,836) (6,538) 2,382
NET ASSETS AT BEGINNING OF PERIOD 165,122 171,958 79,702 77,320
----------- ----------- ----------- -----------
NET ASSETS AT END OF PERIOD $ 161,757 $ 165,122 $ 73,164 $ 79,702
=========== =========== =========== ===========
- ---------------------------------------------------------------------------------------------------------------------
OTHER INFORMATION
INCREASE (DECREASE) IN
TRUST SHARES AND AMOUNTS
SALES 293,668 1,017,443 57,064 134,041
REINVESTMENTS 5,293 7,446 1,533 2,265
REDEMPTIONS (302,326) (1,031,725) (65,135) (133,924)
=========== =========== =========== ===========
NET CHANGE (3,365) (6,836) (6,538) 2,382
=========== =========== =========== ===========
Because share value is equal to $1.00,
dollar amounts and share amounts are identical
As of December 31, 1996:
Shares Authorized Unlimited Unlimited
Par Value Per Share $ .001 $ .001
Paid in Capital $ 161,757 $ 73,164
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
-17-
<PAGE> 20
NOTES TO FINANCIAL STATEMENTS
1. GENERAL
The SAFECO Money Market Trust ("Trust") is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Trust consists of the SAFECO Money Market
Fund and SAFECO Tax-Free Money Market Fund (together the "Funds"). The Trust
recently changed its fiscal year end from March 31 to December 31.
Effective September 30, 1996, the Money Market Fund began issuing two
additional classes of shares--Class A and Class B shares ("Advisor Classes").
These new shares are distributed by financial professionals and, like the
no-load class, currently have no associated sales or distribution charges.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
consistently followed by each Fund in the preparation of its financial
statements. The policies are in conformity with generally accepted accounting
principles which permit management to make certain estimates and assumptions at
the date of the financial statements.
SECURITY VALUATION. Investments consist of short-term securities
maturing within thirteen months from the date of purchase. Securities in the
Tax-Free Money Market Fund with maturities of more than thirteen months have
floating rates and/or demand features which qualify them as short-term
securities. Securities purchased at par are valued at cost. All other securities
are valued at amortized cost, which approximates value.
SECURITY TRANSACTIONS. Security transactions are recorded on the trade
date. The cost of each portfolio is the same for financial
statement and federal income tax purposes.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS. In the Tax-Free Money
Market Fund, securities purchased on a when-issued or delayed basis may be
settled a month or more after the trade date. The securities purchased are
carried in the portfolio at market and are subject to market fluctuation during
this period. These securities begin earning interest on the settlement date. As
commitments to purchase when-issued securities
-18-
<PAGE> 21
become fixed, the Tax-Free Money Market Fund segregates liquid assets in an
amount equal to the total obligation.
INCOME RECOGNITION. Interest is accrued on portfolio investments daily.
Bond premiums, original issue discounts and market discounts are amortized to
either call or maturity dates.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Net investment income is
declared as a dividend to shareholders of record as of the close of each
business day and payment is made as of the last business day of each month.
FEDERAL INCOME AND EXCISE TAXES. Each Fund intends to continue to
comply with the requirements of the Internal Revenue Code applicable to
regulated investment companies by distributing substantially all income to
shareholders in a manner which results in no tax to the Fund. Therefore, no
federal income or excise tax provision is required. The Tax-Free Money Market
Fund intends to satisfy conditions which will enable it to designate its
dividends from net investment income as tax-exempt dividend distributions.
3. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
SAFECO Asset Management Company receives investment advisory fees from
the Funds. For the Money Market Fund, the fee is based on average daily net
assets at the annual rate of 50/100 of one percent on the first $250 million,
declining in three levels to 25/100 of one percent on net assets over $750
million. For the Tax-Free Money Market Fund, the fee is based on average daily
net assets at the annual rate of 50/100 of one percent on the first $100
million, declining in three levels to 20/100 of one percent on net assets over
$500 million. SAFECO Services Corporation receives shareholder servicing fees.
NOTES PAYABLE AND INTEREST EXPENSE. The Funds may borrow money for
temporary purposes from SAFECO Corporation or its affiliates. Interest rates
equivalent to commercial bank interest rates are charged on loans over $100,000.
No interest is charged on loans under $100,000. At December 31, 1996, the Money
Market Fund had a 5.98% note payable of $540,000 to SAFECO Insurance Company of
America. The note was repaid on January 2, 1997.
-19-
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS (Continued)
4. FINANCIAL HIGHLIGHTS
(For a Share Outstanding Throughout the Period)
SAFECO MONEY MARKET FUND
NO-LOAD CLASS
<TABLE>
<CAPTION>
NINE-MONTH
PERIOD ENDED
DECEMBER 31 FOR THE YEAR ENDED MARCH 31
1996 1996 1995 1994 1993
---------- -------- ---------- -------- ---------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE AT
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.03 0.05 0.04 0.02 0.03
LESS DISTRIBUTIONS
Dividends from
Net Investment Income (0.03) (0.05) (0.04) (0.02) (0.03)
-------- -------- -------- --------- --------
NET ASSET VALUE AT END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========= ========
TOTAL RETURN 3.54% ** 5.15% 4.20% 2.48% 2.98%
NET ASSETS AT
END OF PERIOD (000'S OMITTED) $161,356 $165,122 $171,958 $186,312 $144,536
RATIO OF EXPENSES TO
AVERAGE NET ASSETS 0.81% * 0.78% 0.78% 0.79% 0.77%
RATIO OF NET INVESTMENT INCOME
TO AVERAGE NET ASSETS 4.66% * 5.04% 4.21% 2.47% 3.02%
</TABLE>
* Annualized
** Not annualized.
-20-
<PAGE> 23
4. FINANCIAL HIGHLIGHTS (Continued)
(For a Share Outstanding Throughout the Period)
SAFECO MONEY MARKET FUND
<TABLE>
<CAPTION>
THREE-MONTH PERIOD ENDED DECEMBER 31, 1996
CLASS A CLASS B
- ---------------------------------------------------------------------
<S> <C> <C>
Net Asset Value at
Beginning of Period $ 1.00 $ 1.00
Income from Investment Operations
Net Investment Income 0.01 0.01
Less Distributions
Dividends from Net
Investment Income (0.01) (0.01)
------- -------
Net Asset Value at End of Period $ 1.00 $ 1.00
======= =======
Total Return** 1.21% 1.21%
Net Assets at End of Period (000's) $ 295 $ 106
Ratio of Expenses to
Average Net Assets* 0.55% 0.54%
Ratio of Net Investment Income to
Average Net Assets* 5.01% 4.96%
</TABLE>
* Annualized.
** Not annualized.
-21-
<PAGE> 24
4. FINANCIAL HIGHLIGHTS (Continued)
(For a Share Outstanding Throughout the Period)
SAFECO TAX-FREE MONEY MARKET FUND
NO-LOAD CLASS
<TABLE>
<CAPTION>
NINE-MONTH
PERIOD ENDED
DECEMBER 31 FOR THE YEAR ENDED MARCH 31
1996 1996 1995 1994 1993
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE AT
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
INCOME FROM INVESTMENT OPERATIONS
Net Investment Income 0.02 0.03 0.03 0.02 0.03
LESS DISTRIBUTIONS
Dividends from
Net Investment Income (0.02) (0.03) (0.03) (0.02) (0.03)
--------- ------- ----------- -------- --------
NET ASSET VALUE AT END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======= =========== ======== ========
TOTAL RETURN 2.29% ** 3.44% 2.84% 1.98% 2.53%
NET ASSETS AT
END OF PERIOD (000'S OMITTED) $ 73,164 $79,702 $ 77,320 $ 94,589 $ 82,098
RATIO OF EXPENSES TO
AVERAGE NET ASSETS 0.65% * 0.65% 0.64% 0.64% 0.61%
RATIO OF NET INVESTMENT INCOME
TO AVERAGE NET ASSETS 3.03% * 3.40% 2.79% 1.96% 2.48%
</TABLE>
* Annualized
** Not annualized.
-22-
<PAGE> 25
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS
OF THE SAFECO MONEY MARKET TRUST
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of the SAFECO Money Market Trust
(comprising, respectively, the SAFECO Money Market Fund and SAFECO Tax-Free
Money Market Fund) as of December 31, 1996, and the related statements of
operations, the statements of changes in net assets, and the financial
highlights for each of the periods indicated therein. These financial statements
and financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1996, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of each of the respective Funds constituting the SAFECO Money Market
Trust at December 31, 1996, the results of their operations, the changes in
their net assets, and the financial highlights for each of the periods indicated
therein, in conformity with generally accepted accounting principles.
/s/ Ernst & Young LLP
Seattle, Washington
January 31, 1997
-23-
<PAGE> 26
This page left blank intentionally.
-24-
<PAGE> 27
SAFECO FAMILY OF FUNDS
STABILITY OF PRINCIPAL
SAFECO Money Market Fund
SAFECO Tax-Free Money Market Fund
TAXABLE BOND INCOME
SAFECO Intermediate-Term U.S. Treasury Fund
SAFECO GNMA Fund
SAFECO High-Yield Bond Fund
SAFECO Managed Bond Fund
TAX-FREE BOND INCOME
SAFECO Intermediate-Term Municipal Bond Fund
SAFECO Insured Municipal Bond Fund
SAFECO Municipal Bond Fund
SAFECO California Tax-Free Income Fund
SAFECO Washington State Municipal Bond Fund
HIGH CURRENT INCOME
WITH LONG-TERM GROWTH
SAFECO Income Fund
SAFECO Balanced Fund
LONG-TERM GROWTH
SAFECO Growth Fund
SAFECO Equity Fund
SAFECO Northwest Fund
SAFECO International Stock Fund
SAFECO Small Company Stock Fund
For more complete information on any SAFECO Mutual Fund, including management
fees and expenses, call or write for a free Prospectus. Please read it carefully
before you invest or send money.
-25-
<PAGE> 28
SAFECO MONEY MARKET FUNDS
BOARD OF TRUSTEES:
Boh A. Dickey, Chairman
Barbara J. Dingfield
David F. Hill
Richard W. Hubbard
Richard E. Lundgren
Larry L. Pinnt
John W. Schneider
OFFICERS:
David F. Hill, President
Ronald L. Spaulding
Vice President and Treasurer
Neal A. Fuller
Vice President and Controller
INVESTMENT ADVISOR:
SAFECO Asset
Management Company
DISTRIBUTOR:
SAFECO Securities, Inc.
TRANSFER AGENT:
SAFECO Services Corporation
CUSTODIAN:
U.S. Bank of Washington, N.A.
FOR SHAREHOLDER SERVICE:
Monday-Friday,
5:30am-7:00pm Pacific Time
NATIONWIDE: 1-800-624-5711
SEATTLE: 545-7319
DEAF AND HARD OF HEARING
TTY/TDD SERVICE: 1-800-438-8718
FOR ACCOUNT INFORMATION,
YIELDS, PRICES AND
PERFORMANCE INFORMATION:
24 hours a day, 7 days a week
NATIONWIDE: 1-800-835-4391
SEATTLE: 545-5113
MAILING ADDRESS:
SAFECO Mutual Funds
P.O. Box 34890
Seattle, WA 98124-1890
INTERNET:
http://networth.galt.com/safeco
E-MAIL: [email protected]
GMF 663 2/97
Printed on Recycled Paper.
This report must be preceded or
accompanied by a current prospectus.
(R) Registered trademark of SAFECO Corporation.
