Income
SEMI-ANNUAL REPORT
MARCH 31, 1999
(Unaudited)
--------------------
SHORT TERM GOVERNMENT
INCOME FUND
-------------------
INSTITUTIONAL GOVERNMENT
INCOME FUND
-----------------------
MONEY MARKET
FUND
------------
INTERMEDIATE
BOND FUND
-------------
INTERMEDIATE TERM
GOVERNMENT
INCOME FUND
------------------
ADJUSTABLE RATE
U.S. GOVERNMENT
SECURITIES FUND
----------------
LOGO
Countrywide Investments
<PAGE>
LETTER FROM THE CHAIRMAN
================================================================================
PHOTO
Angelo R. Mozilo
Dear Shareholders:
Thirty years ago, David Loeb and I had an ambitious vision for a new mortgage
lending company. As we pondered a name for the company, we thought big:
Worldwide. But even the two of us, as ambitious as we were, could not conceive
of a global reach for the company. After rejecting Nationwide, we settled on
Countrywide and the rest is history. Now it seems our dreams were too modest. On
February 17, Countrywide signed a letter of intent to form a European mortgage
banking joint venture with Woolwich, plc, one of the five largest mortgage
originators and servicers in the United Kingdom. The initial purpose of the
joint venture is to provide fee-based mortgage services for Woolwich, which has
a mortgage servicing portfolio equivalent to $40 billion, annual fundings
equivalent to $10 billion and mortgage operations in France and Italy. The joint
venture will also market its services to other lenders throughout the European
Union.
Growth and change are crucial to our success at Countrywide. New ideas and the
latest technology -- as well as huge ambition and passion to be the best -- made
us the nation's largest independent residential mortgage lender and servicer.
This philosophy also applies to the many Countrywide subsidiaries, including
Countrywide Investments. We are committed to creating value for our shareholders
by offering a variety of investment opportunities. There are currently 17 funds
offered through Countrywide Investments, each designed to fulfill specific
financial needs. As the merger and acquisition team adds new funds, shareholders
will enjoy an even broader range of investment choices. Just as Countrywide Home
Loans delivers the American dream of homeownership, Countrywide Investments
brings financial dreams within the reach of every investor. Whether planning for
a family, college education or retirement, Countrywide Investments makes saving
and investing money easy and convenient.
Thank you for choosing Countrywide Investments for your financial planning
needs. We hope our services will bring you the financial rewards of careful
planning and big dreams.
Sincerely,
/s/ Angelo R. Mozilo
Angelo R. Mozilo
Chairman
Countrywide Home Loans, Inc.
<PAGE>
LETTER FROM THE PRESIDENT
================================================================================
PHOTO
Robert H. Leshner
Dear Fellow Shareholders:
We are pleased to present Countrywide Investment Trust's semi-annual report for
the six months ended March 31, 1999. This report provides financial data and
performance information for the Short Term Government Income Fund, Institutional
Government Income Fund, Money Market Fund, Intermediate Bond Fund, Intermediate
Term Government Income Fund and Adjustable Rate U.S. Government Securities Fund.
These Funds represent the six taxable money market and bond products currently
offered among the 17 mutual funds which comprise the Countrywide Family of
Funds.
For the ninth consecutive year, the U.S. economy continued its longest peacetime
expansion on record and the second longest this century. The Dow Jones
Industrial Average reached a milestone when it closed above 10,000. A more
significant figure was the U.S. unemployment rate, which dropped to a 29-year
low. Other indicators of a healthy economy included: inflation below 2%, low
interest rates, rising consumer confidence, strong consumer spending, strong
U.S. dollar and rebounding corporate profits.
The flight to quality that occurred in the fixed income markets during the
fourth quarter of 1998 was reversed during the first quarter of 1999, as
confident investors seemed willing to assume greater investment risk. The robust
economy caused yields in the Treasury market to rise about 0.5% in all but the
shortest maturities. The yield on the Treasury's 30-year bond rose to 5.6%, up
from last year's low of 4.7%. We expect spreads between Treasuries and more
risky fixed-income investments to continue to narrow. Because the outlook for
inflation remains constructive, we expect interest rates to consolidate, setting
the stage for attractive total return in bonds.
Countrywide Investments remains committed to providing products and services
that help investors meet their financial goals. Our success has been built on
the confidence investors have extended to us. We thank you for your support and
look forward to continued service to you in the future.
Sincerely,
/S/ Robert H. Leshner
Robert H. Leshner
President
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 1999 (Unaudited)
<TABLE>
<CAPTION>
=============================================================================================================
Short Term Institutional Money
Government Government Market
Income Fund Income Fund Fund
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investment securities:
At acquisition cost.................................. $ 34,353,984 $ 24,966,743 $ 33,831,768
============== =============== ===============
At amortized cost.................................... $ 34,168,293 $ 24,933,547 $ 33,781,988
============== =============== ===============
At market value (Note 2) ............................ $ 34,168,293 $ 24,933,547 $ 33,781,988
Repurchase agreements (Note 2).......................... 71,200,000 17,300,000 --
Cash ................................................... -- 1,722 --
Interest receivable..................................... 575,558 421,516 301,180
Organization costs, net (Note 2)........................ -- -- 9,521
Other assets............................................ 23,851 16,147 13,104
-------------- --------------- ---------------
TOTAL ASSETS......................................... 105,967,702 42,672,932 34,105,793
-------------- --------------- ---------------
LIABILITIES
Bank overdraft.......................................... 57,871 -- 1,881
Dividends payable....................................... 4,431 17,328 53,334
Payable for securities purchased........................ -- -- 250,611
Payable to affiliates (Note 4).......................... 64,213 11,230 2,473
Other accrued expenses and liabilities.................. 16,647 9,569 12,273
-------------- --------------- ---------------
TOTAL LIABILITIES ................................... 143,162 38,127 320,572
-------------- --------------- ---------------
NET ASSETS ............................................ $ 105,824,540 $ 42,634,805 $ 33,785,221
============== =============== ===============
Net assets consist of:
Paid-in capital......................................... $ 105,824,540 $ 42,657,148 $ 33,791,623
Accumulated net realized losses from security transactions -- (22,343) (6,402)
-------------- --------------- ---------------
Net assets ............................................. $ 105,824,540 $ 42,634,805 $ 33,785,221
============== =============== ===============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) (Note 5) . 105,824,540 42,657,148 33,791,623
============== =============== ===============
Net asset value, offering price and redemption price
per share (Note 2) .................................. $ 1.00 $ 1.00 $ 1.00
============== =============== ===============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 1999 (Unaudited)
=============================================================================================================
Adjustable
Intermediate Rate U.S.
Intermediate Term Government
Bond Government Securities
Fund Income Fund Fund
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investment securities:
At acquisition cost.................................. $ 17,226,384 $ 45,833,145 $ 9,313,385
============== =============== ===============
At amortized cost ................................... $ 17,226,614 $ 45,652,067 $ 9,313,484
============== =============== ===============
At market value (Note 2) ............................ $ 17,159,429 $ 46,603,706 $ 9,355,950
Cash ................................................... -- 921 855
Interest receivable .................................... 265,756 705,213 60,817
Receivable for capital shares sold...................... 1,657 11,195 45,474
Receivable for principal paydowns....................... 538,583 -- 22,650
Organization costs, net (Note 2)........................ 9,521 -- --
Other assets............................................ 11,322 13,488 16,243
-------------- --------------- ---------------
TOTAL ASSETS ........................................ 17,986,268 47,334,523 9,501,989
-------------- --------------- ---------------
LIABILITIES
Dividends payable ...................................... 30,475 24,156 3,390
Payable for capital shares redeemed .................... 14,362 41,509 48,999
Payable for securities purchased........................ 1,016,562 -- --
Payable to affiliates (Note 4) ......................... 4,647 27,451 1,136
Other accrued expenses and liabilities.................. 7,997 11,641 6,839
-------------- --------------- ---------------
TOTAL LIABILITIES ................................... 1,074,043 104,757 60,364
-------------- --------------- ---------------
NET ASSETS ............................................. $ 16,912,225 $ 47,229,766 $ 9,441,625
============== =============== ===============
Net assets consist of:
Paid-in capital ........................................ $ 17,042,796 $ 48,665,239 $ 10,708,715
Accumulated net realized losses from security transactions (63,386) (2,387,112) (1,309,556)
Net unrealized appreciation (depreciation) on investments (67,185) 951,639 42,466
-------------- --------------- ---------------
Net assets.............................................. $ 16,912,225 $ 47,229,766 $ 9,441,625
============== =============== ===============
Shares of beneficial interest outstanding (unlimited
number of shares authorized, no par value) (Note 5).. 1,713,307 4,405,457 972,738
============== =============== ===============
Net asset value and redemption price per share (Note 2). $ 9.87 $ 10.72 $ 9.71
============== =============== ===============
Maximum offering price per share (Note 2)............... $ 10.07 $ 10.94 $ 9.91
============== =============== ===============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the Six Months Ended March 31, 1999 (Unaudited)
=============================================================================================================
Short Term Institutional Money
Government Government Market
Income Fund Income Fund Fund
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income ..................................... $ 2,608,593 $ 1,247,594 $ 717,789
-------------- --------------- ---------------
EXPENSES
Investment advisory fees (Note 4) ................... 251,327 49,032 67,528
Transfer agent fees (Note 4) ........................ 85,721 9,115 12,596
Distribution expenses (Note 4)....................... 61,184 2,503 4,862
Postage and supplies................................. 31,665 2,987 10,192
Accounting services fees (Note 4).................... 18,000 13,500 12,000
Registration fees.................................... 13,159 3,852 11,605
Custodian fees ...................................... 11,704 8,103 6,446
Professional fees ................................... 8,550 6,449 7,649
Standard & Poor's rating expense..................... 6,111 6,111 --
Trustees' fees and expenses ......................... 3,528 3,528 3,528
Insurance expense.................................... 3,780 2,676 3,300
Reports to shareholders ............................. 6,392 683 1,109
Amortization of organization costs (Note 2).......... -- -- 3,178
Pricing expense...................................... 448 934 567
Other expenses ...................................... 2,694 1,112 1,612
-------------- --------------- ---------------
TOTAL EXPENSES..................................... 504,263 110,585 146,172
Fees waived by the Adviser (Note 4) ................. -- ( 12,521 ) ( 58,616 )
-------------- --------------- ---------------
NET EXPENSES....................................... 504,263 98,064 87,556
-------------- --------------- ---------------
NET INVESTMENT INCOME .................................. 2,104,330 1,149,530 630,233
-------------- --------------- ---------------
NET REALIZED LOSSES FROM SECURITY
TRANSACTIONS ....................................... -- ( 601 ) ( 617 )
-------------- --------------- ---------------
NET INCREASE IN NET ASSETS FROM OPERATIONS ............ $ 2,104,330 $ 1,148,929 $ 629,616
============== =============== ===============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
For the Six Months Ended March 31, 1999 (Unaudited)
============================================================================================================
Adjustable
Intermediate Rate U.S.
Intermediate Term Government
Bond Government Securities
Fund Income Fund Fund
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest ............................................ $ 596,141 $ 1,562,978 $ 302,320
Dividends............................................ 4,969 -- --
-------------- --------------- ---------------
TOTAL INVESTMENT INCOME............................ 601,110 1,562,978 302,320
-------------- --------------- ---------------
EXPENSES
Investment advisory fees (Note 4).................... 43,327 121,155 25,001
Distribution expenses (Note 4)....................... 5,281 32,577 3,936
Accounting services fees (Note 4).................... 12,000 13,000 15,000
Transfer agent fees (Note 4)......................... 6,000 19,958 6,479
Professional fees.................................... 11,369 13,169 10,919
Registration fees.................................... 9,321 8,869 8,477
Postage and supplies................................. 2,805 14,156 5,448
Custodian fees....................................... 2,957 4,739 3,375
Trustees' fees and expenses.......................... 3,528 3,528 3,528
Pricing expense...................................... 3,014 1,961 1,339
Standard & Poor's rating expense..................... -- -- 4,778
Insurance expense.................................... 975 2,412 1,050
Reports to shareholders.............................. 384 2,576 816
Amortization of organization costs (Note 2).......... 3,178 -- --
Other expenses....................................... 532 1,849 389
-------------- --------------- ---------------
TOTAL EXPENSES..................................... 104,671 239,949 90,535
Fees waived and/or expenses reimbursed
by the Adviser (Note 4) (22,349) -- (53,034)
-------------- --------------- ---------------
NET EXPENSES....................................... 82,322 239,949 37,501
-------------- --------------- ---------------
NET INVESTMENT INCOME .................................. 518,788 1,323,029 264,819
-------------- --------------- ---------------
REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS
Net realized gains from security transactions ....... 143,327 357,350 --
Net change in unrealized appreciation/
depreciation on investments (1,093,408) (2,258,387) 7,784
-------------- --------------- ---------------
NET REALIZED AND UNREALIZED GAINS (LOSSES)
ON INVESTMENTS ..................................... ( 950,081) ( 1,901,037 ) 7,784
-------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS .................................... $ ( 431,293) $ ( 578,008 ) $ 272,603
============== =============== ===============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended March 31, 1999 and September 30, 1998
==============================================================================================================
Short Term Institutional
Government Government
Income Fund Income Fund
Six Months Six Months
Ended Year Ended Year
March 31, Ended March 31, Ended
1999 Sept. 30, 1999 Sept. 30,
(Unaudited) 1998 (Unaudited) 1998
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income....................... $ 2,104,330 $ 4,475,134 $ 1,149,530 $ 2,598,205
Net realized gains (losses)
from security transactions -- -- (601) 22
------------ -------------- ------------- -------------
Net increase in net assets from operations..... 2,104,330 4,475,134 1,148,929 2,598,227
------------ -------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ................. (2,104,330) (4,475,134) (1,149,530) (2,598,205)
------------ -------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS (Note 5)
Proceeds from shares sold .................. 166,538,119 301,198,180 37,058,899 179,615,316
Net asset value of shares issued in
reinvestment of distributions to shareholders 2,055,487 4,351,699 1,026,487 2,187,984
Payments for shares redeemed................ (165,250,454) (299,865,173) (40,247,103) (198,254,085)
------------ -------------- ------------- -------------
Net increase (decrease) in net assets
from capital share transactions............. 3,343,152 5,684,706 (2,161,717) (16,450,785)
------------ -------------- ------------- -------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS ............................ 3,343,152 5,684,706 (2,162,318) (16,450,763)
NET ASSETS
Beginning of period......................... 102,481,388 96,796,682 44,797,123 61,247,886
------------ -------------- ------------- -------------
End of period............................... $105,824,540 $102,481,388 $42,634,805 $44,797,123
============ ============== ============= =============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended March 31, 1999 and September 30, 1998
============================================================================================================
Money Market Fund Intermediate Bond Fund
- ------------------------------------------------------------------------------------------------------------
Six Months Six Months
Ended Year Ended Year
March 31, Ended March 31, Ended
1999 Sept. 30, 1999 Sept. 30,
(Unaudited) 1998 (Unaudited) 1998
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income ...................... $ 630,233 $ 3,176,021 $ 518,788 $ 1,372,174
Net realized gains (losses) from
security transactions (617) (2,025) 143,327 (12,654)
Net change in unrealized appreciation/depreciation
on investments............................ -- -- (1,093,408) 808,743
------------ -------------- ------------- -------------
Net increase (decrease) in
net assets from operations 629,616 3,173,996 (431,293) 2,168,263
------------ -------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income ................. (630,233) (3,176,021) (522,821) (1,368,141)
From net realized gains .................... -- -- (137,666) --
------------ -------------- ------------- -------------
Decrease in net assets from distributions
to shareholders............................. (630,233) (3,176,021) (660,487) (1,368,141)
------------ -------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS (Note 5)
Proceeds from shares sold .................. 36,988,363 317,725,801 4,022,038 19,932,790
Net asset value of shares issued
reinvestment of distributions to shareholders 314,123 674,014 402,475 529,889
Payments for shares redeemed ............... (22,008,512) (373,726,925) (10,138,619) (13,215,521)
------------ -------------- ------------- -------------
Net increase (decrease) in net assets
from capital share transactions............. 15,293,974 (55,327,110) (5,714,106) 7,247,158
------------ -------------- ------------- -------------
TOTAL INCREASE (DECREASE)
IN NET ASSETS ............................. 15,293,357 (55,329,135) (6,805,886) 8,047,280
NET ASSETS
Beginning of period......................... 18,491,864 73,820,999 23,718,111 15,670,831
------------ -------------- ------------- -------------
End of period............................... $ 33,785,221 $ 18,491,864 $16,912,225 $23,718,111
============ ============== ============= =============
UNDISTRIBUTED NET INVESTMENT
INCOME ..................................... $ -- $ -- $ -- $ 4,033
============ ============== ============= =============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
For the Periods Ended March 31, 1999 and September 30, 1998
<TABLE>
<S> <C> <C> <C> <C>
============================================================================================================
Intermediate Term Adjustable Rate
Government U.S. Government
Income Fund Securities Fund
Six Months Six Months
Ended Year Ended Year
March 31, Ended March 31, Ended
1999 Sept. 30, 1999 Sept. 30,
(Unaudited) 1998 (Unaudited) 1998
- ------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income ...................... $ 1,323,029 $ 2,843,742 $ 264,819 $ 787,590
Net realized gains (losses)
from security transactions 357,350 157,123 -- (58,901)
Net change in unrealized appreciation/depreciation
on investments............................ (2,258,387) 2,055,577 7,784 (152,939)
------------ -------------- ------------- -------------
Net increase (decrease) in net assets from
operations (578,008) 5,056,442 272,603 575,750
------------ -------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income.................. (1,323,029) (2,843,742) (264,819) (787,590)
------------ -------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS (Note 5)
Proceeds from shares sold .................. 6,587,408 14,138,086 1,510,197 8,356,993
Net asset value of shares issued in
reinvestment of distributions to shareholders 1,168,274 2,507,687 243,306 716,956
Payments for shares redeemed ............... (9,792,900) (20,723,242) (2,935,293) (21,448,205)
------------ -------------- ------------- -------------
Net decrease in net assets
from capital share transactions ............ (2,037,218) (4,077,469) (1,181,790) (12,374,256)
------------ -------------- ------------- -------------
TOTAL DECREASE IN NET ASSETS ................. (3,938,255) (1,864,769) (1,174,006) (12,586,096)
NET ASSETS
Beginning of period......................... 51,168,021 53,032,790 10,615,631 23,201,727
------------ -------------- ------------- -------------
End of period............................... $ 47,229,766 $ 51,168,021 $ 9,441,625 $10,615,631
============ ============== ============= =============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHORT TERM GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS
==============================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
==============================================================================================================
Six Months
Ended
March 31, Years Ended September 30,
1999
(Unaudited) 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- --------- --------- --------- ---------
Net investment income ................... 0.020 0.046 0.044 0.044 0.046 0.027
---------- ---------- --------- --------- --------- ---------
Dividends from net investment income..... (0.020) (0.046) (0.044) (0.044) (0.046) (0.027)
---------- ---------- --------- --------- --------- ---------
Net asset value at end of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========= ========= ========= =========
Total return ............................ 4.00%(B) 4.74% 4.53% 4.51% 4.69% 2.72%
========== ========== ========= ========= ========= =========
Net assets at end of period (000's) ..... $105,825 $102,481 $ 96,797 $ 91,439 $87,141 $89,708
========== ========= ========== ========= ========= =========
Ratio of net expenses to average
net assets(A) 0.95%(B) 0.91% 0.97% 0.99% 0.99% 0.99%
Ratio of net investment income to
average net assets 3.96%(B) 4.63% 4.43% 4.42% 4.59% 2.69%
- ---------------------------------------------------------------------------------------------------------------
(A) Absent fee waivers by the Adviser, the ratio of expenses to average net assets would have been 0.94%
for the year ended September 30, 1998.
(B) Annualized.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS
==============================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
==============================================================================================================
Six Months
Ended
March 31, Years Ended September 30,
1999
(Unaudited) 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- --------- --------- --------- ---------
Net investment income.................... 0.023 0.052 0.051 0.051 0.053 0.034
---------- ---------- --------- --------- --------- ---------
Dividends from net investment income..... ( 0.023 ) ( 0.052) ( 0.051 ) ( 0.051 ) ( 0.053 ) ( 0.034 )
---------- ---------- --------- --------- --------- ---------
Net asset value at end of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========= ========= ========= =========
Total return............................. 4.74%(B) 5.30% 5.17% 5.18% 5.42% 3.43%
========== ========== ========= ========= ========= =========
Net assets at end of period (000's)...... $ 42,635 $ 44,797 $ 61,248 $ 39,382 $36,009 $41,769
========== ========== ========= ========= ========= =========
Ratio of net expenses to average net assets(A) 0.40%(B) 0.40% 0.40% 0.40% 0.40% 0.40%
Ratio of net investment income to
average net assets 4.69%(B) 5.17% 5.07% 5.06% 5.30% 3.41%
- -------------------------------------------------------------------------------------------------------------
(A) Absent fee waivers by the Adviser, the ratios of expenses to average net assets would have been 0.45%(B)
for the six months ended March 31, 1999 and 0.45%, 0.45%, 0.49%, 0.42% and 0.42% for the years ended
September 30, 1998, 1997, 1996, 1995 and 1994, respectively (Note 4).
(B) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
=============================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
Six Months
Ended Year One Month Year Period
March 31, Ended Ended Ended Ended
1999 Sept. 30, Sept. 30 August 31, August 31,
(Unaudited) 1998 1997(A) 1997 1996(B)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- --------- ---------- --------- ---------
Net investment income........................... 0.023 0.050 0.004 0.050 0.046(C)
---------- --------- ---------- --------- ---------
Dividends from net investment income............ (0.023) (0.050) (0.004) (0.050) (0.046)
---------- --------- ---------- --------- ---------
Net asset value at end of period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========= ========== ========= =========
Total return ................................... 4.72%(E) 5.07% 4.99%(E) 5.14% 4.70%
========== ========= ========== ========= =========
Net assets at end of period (000's)............. $ 33,785 $ 18,492 $ 73,821 $ 94,569 $76,363
========== ========= ========== ========= =========
Ratio of net expenses to average net assets(D) . 0.65%(E) 0.79% 0.80%(E) 0.65% 0.65%(E)
Ratio of net investment income to average net assets 4.67%(E) 4.95% 4.99%(E) 5.03% 4.94%(E)
- --------------------------------------------------------------------------------------------------------------
(A) Effective as of the close of business on August 29, 1997, the Fund was reorganized and its fiscal year-end,
subsequent to August 31, 1997, was changed to September 30.
(B) Represents the period from the commencement of operations (September 29, 1995) through August 31, 1996.
(C) Calculated using weighted average shares outstanding during the period.
(D) Absent fee waivers and/or expense reimbursements, the ratios of expenses to average net assets would have
been 1.08%(E), 0.79% and 0.99%(E) for the periods ended March 31, 1999, and August 31, 1997 and 1996,
respectively (Note 4).
(E) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INTERMEDIATE BOND FUND
FINANCIAL HIGHLIGHTS
=============================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
=============================================================================================================
Six Months
Ended Year One Month Year Period
March 31, Ended Ended Ended Ended
1999 Sept. 30, Sept. 30 August 31, August 31,
(Unaudited) 1998 1997(A) 1997 1996(B)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value at beginning of period.......... $ 10.50 $ 10.09 $ 10.00 $ 9.75 $ 10.00
---------- --------- ---------- --------- ---------
Income (loss) from investment operations:
Net investment income........................ 0.30 0.62 0.05 0.62 0.57(C)
Net realized and unrealized gains (losses)
on investments............................. (0.55) 0.41 0.09 0.28 (0.25)(C)
---------- --------- ---------- --------- ---------
Total from investment operations................ (0.25) 1.03 0.14 0.90 0.32
---------- --------- ---------- --------- ---------
Less distributions:
Dividends from net investment income......... (0.30) (0.62) (0.05) (0.62) (0.57)
Distributions from net realized gains........ (0.08) -- -- (0.03) --
---------- --------- ---------- --------- ---------
Total distributions............................. (0.38) (0.62) (0.05) (0.65) (0.57)
---------- --------- ---------- --------- ---------
Net asset value at end of period................ $ 9.87 $ 10.50 $ 10.09 $ 10.00 $ 9.75
========== ========= ========== ========= =========
Total return(D) ................................ (2.37%) 10.54% 1.41% 9.48% 3.23%
========== ========= ========== ========= =========
Net assets at end of period (000's)............. $ 16,912 $ 23,718 $ 15,671 $ 15,114 $13,357
========== ========= ========== ========= =========
Ratio of net expenses to average net assets(E) . 0.95%(F) 0.95% 0.95%(F) 0.85% 0.68%(F)
Ratio of net investment income to average net assets 6.00%(F) 6.08% 6.18%(F) 6.26% 6.31%(F)
Portfolio turnover rate......................... 68%(F) 63% 0% 41% 12%
- --------------------------------------------------------------------------------------------------------------
(A) Effective as of the close of business on August 29, 1997, the Fund was reorganized and its fiscal year-end,
subsequent to August 31, 1997, was changed to September 30.
(B) Represents the period from the commencement of operations (October 3, 1995) through August 31, 1996.
(C) Calculated using weighted average shares outstanding during the period.
(D) Total returns shown exclude the effect of applicable sales loads.
(E) Absent fee waivers and/or expense reimbursements, the ratios of expenses to average net assets would have
been 1.21%(F), 0.98%, 1.38%(F), 1.53% and 2.04%(F) for the periods ended March 31, 1999, September 30,
1998 and 1997, and August 31, 1997 and 1996, respectively (Note 4).
(F) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INTERMEDIATE TERM GOVERNMENT INCOME FUND
FINANCIAL HIGHLIGHTS
==============================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
==============================================================================================================
Six Months
Ended
March 31, Years Ended September 30,
1999
(Unaudited) 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period... $ 11.15 $ 10.67 $ 10.49 $ 10.73 $ 10.14 $ 11.59
---------- ---------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income................. 0.30 0.61 0.61 0.61 0.64 0.56
Net realized and unrealized gains (losses)
on investments...................... (0.43) 0.48 0.18 (0.24) 0.59 (1.32)
---------- ---------- --------- --------- --------- ---------
Total from investment operations......... (0.13) 1.09 0.79 0.37 1.23 (0.76)
---------- ---------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income.. (0.30) (0.61) (0.61) (0.61) (0.64) (0.56)
Distributions from net realized gains. -- -- -- -- -- (0.13)
---------- ---------- --------- --------- --------- ---------
Total distributions...................... (0.30) (0.61) (0.61) (0.61) (0.64) (0.69)
---------- ---------- --------- --------- --------- ---------
Net asset value at end of period......... $ 10.72 $ 11.15 $ 10.67 $ 10.49 $ 10.73 $ 10.14
========== ========== ========= ========= ========= =========
Total return(A) ......................... (1.21%) 10.54% 7.74% 3.55% 12.52% (6.76%)
========== ========= ========= ========= ========= =========
Net assets at end of period (000's)...... $ 47,230 $ 51,168 $ 53,033 $ 56,095 $56,969 $64,395
========== ========== ========= ======== ========== =========
Ratio of expenses to average net assets.. 0.99%(B) 0.99% 0.99% 0.99% 0.99% 0.99%
Ratio of net investment income to
average net assets...................... 5.46%(B) 5.64% 5.78% 5.75% 6.17% 5.17%
Portfolio turnover rate.................. 49%(B) 29% 49% 70% 58% 236%
- --------------------------------------------------------------------------------------------------------------
(A) Total returns shown exclude the effect of applicable sales loads.
(B) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND
FINANCIAL HIGHLIGHTS
==============================================================================================================
Per Share Data for a Share Outstanding Throughout Each Period
==============================================================================================================
Six Months
Ended
March 31, Years Ended September 30,
1999
(Unaudited) 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period .. $ 9.69 $ 9.85 $ 9.81 $ 9.78 $ 9.82 $ 10.01
---------- ---------- --------- --------- --------- ---------
Income from investment operations:
Net investment income ............... 0.25 0.53 0.57 0.57 0.55 0.39
Net realized and unrealized gains (losses)
on investments...................... 0.02 (0.16) 0.04 0.03 (0.04) (0.18)
---------- ---------- --------- --------- --------- ---------
Total from investment operations ........ 0.27 0.37 0.61 0.60 0.51 0.21
---------- ---------- --------- --------- --------- ---------
Less distributions:
Dividends from net investment income.. (0.25) (0.53) (0.57) (0.57) (0.55) (0.39)
Distributions from net realized gains. -- -- -- -- -- (0.01)
---------- ---------- --------- --------- --------- ---------
Total distributions ..................... (0.25) (0.53) (0.57) (0.57) (0.55) (0.40)
---------- ---------- --------- --------- --------- ---------
Net asset value at end of period ........ $ 9.71 $ 9.69 $ 9.85 $ 9.81 $ 9.78 $ 9.82
========== ========== ========= ========= ========= =========
Total return(A) ......................... 2.87% 3.88% 6.34% 6.32% 5.33% 2.09%
========== ========== ========= ========= ========= =========
Net assets at end of period (000's) ..... $ 9,442 $ 10,616 $ 23,202 $ 11,732 $20,752 $37,572
========== ========== ========= ========= ========= =========
Ratio of net expenses to average net assets(B) 0.75%(C) 0.75% 0.75% 0.75% 0.75% 0.68%
Ratio of net investment income to
average net assets....................... 5.30%(C) 5.47% 5.73% 5.91% 5.57% 3.91%
Portfolio turnover rate ................. 46%(C) 45% 58% 44% 115% 81%
- --------------------------------------------------------------------------------------------------------------
(A) Total returns shown exclude the effect of applicable sales loads.
(B) Absent fee waivers and/or expense reimbursements by the Adviser, the ratios of expenses to average net assets
would have been 1.81%(C) for the six months ended March 31,1999 and 1.37%, 1.47%, 1.46%, 1.21% and 0.78% for
the years ended September 30, 1998, 1997, 1996, 1995 and 1994, respectively (Note 4).
(C) Annualized.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1999 (Unaudited)
================================================================================
1. ORGANIZATION
The Short Term Government Income Fund, Institutional Government Income Fund,
Money Market Fund, Intermediate Bond Fund, Intermediate Term Government Income
Fund and Adjustable Rate U.S. Government Securities Fund (individually, a Fund
and, collectively, the Funds) are each a series of Countrywide Investment Trust
(the Trust). The Trust is registered under the Investment Company Act of 1940 as
an open-end management investment company. The Trust was organized as a
Massachusetts business trust under a Declaration of Trust dated December 7,
1980. The Declaration of Trust, as amended, permits the Trustees to issue an
unlimited number of shares of each Fund.
The Short Term Government Income Fund seeks high current income, consistent with
protection of capital, by investing primarily in short-term obligations issued
or guaranteed as to principal and interest by the U.S. Government, its agencies
or instrumentalities and backed by the "full faith and credit" of the United
States.
The Institutional Government Income Fund seeks high current income, consistent
with protection of capital, by investing primarily in short-term obligations
issued or guaranteed as to principal and interest by the U. S. Government, its
agencies or instrumentalities. The Fund is designed primarily for institutions
as an economical and convenient means for the investment of short-term funds.
The Money Market Fund seeks high current income, consistent with liquidity and
stability of principal. The Fund invests primarily in high-quality U.S.
dollar-denominated money market instruments.
The Intermediate Bond Fund seeks to provide as high a level of current income as
is consistent with the preservation of capital. The Fund invests in marketable
corporate debt securities, U.S. Government securities, mortgage-related
securities, other asset-backed securities and cash or money market instruments.
The maturity composition of the Fund's portfolio of fixed-income securities is
adjusted in response to market conditions and expectations.
The Intermediate Term Government Income Fund seeks high current income,
consistent with protection of capital, by investing primarily in U.S. Government
obligations maturing within twenty years or less with a dollar-weighted average
portfolio maturity under normal market conditions of between three and ten
years. To the extent consistent with the Fund's primary objective, capital
appreciation is a secondary objective.
The Adjustable Rate U.S. Government Securities Fund seeks high current income,
consistent with lower volatility of principal, by investing primarily in
mortgage-related securities created from pools of adjustable rate mortgages
which are issued or guaranteed by the U. S. Government, its agencies or
instrumentalities. It is anticipated that by investing primarily in
mortgage-rated securities which have adjustable rates of interest, the Fund will
achieve a less volatile net asset value than is characteristic of investments in
mortgage-related securities paying fixed rates of interest.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Funds' significant accounting policies:
Securities valuation -- Investment securities in the Short Term Government
Income Fund, Institutional Government Income Fund and Money Market Fund are
valued on the amortized cost basis, which approximates market value. This
involves initially valuing a security at its original cost and thereafter
assuming a constant amortization to maturity of any discount or premium. This
method of valuation is expected to enable these Funds to maintain a constant net
asset value per share. Investment securities in the Intermediate Bond Fund,
Intermediate Term Government Income Fund and Adjustable Rate U.S. Government
Securities Fund for which market quotations are readily available are valued at
their most recent bid prices as obtained from one or more of the major market
makers for such securities by an independent pricing service. Securities for
which market quotations are not readily available are valued at their fair
values as determined in good faith in accordance with consistently applied
procedures approved by and under the general supervision of the Board of
Trustees.
<PAGE>
Repurchase agreements -- Repurchase agreements, which are collateralized by U.S.
Government obligations, are valued at cost which, together with accrued
interest, approximates market. Collateral for repurchase agreements is held in
safekeeping in the customer-only account of the Funds' custodian, at the Federal
Reserve Bank of Cleveland. At the time each Fund enters into a repurchase
agreement, the seller agrees that the value of the underlying securities,
including accrued interest, will at all times be equal to or exceed the face
amount of the repurchase agreement.
Share valuation -- The net asset value per share of each Fund is calculated
daily by dividing the total value of a Fund's assets, less liabilities, by the
number of shares outstanding.
The offering price per share of the Short Term Government Income Fund,
Institutional Government Income Fund and Money Market Fund is equal to the net
asset value per share. The maximum offering price per share of the Intermediate
Bond Fund, Intermediate Term Government Income Fund and Adjustable Rate U.S.
Government Securities Fund is equal to the net asset value per share plus a
sales load equal to 2.04% of the net asset value (or 2% of the offering price).
The redemption price per share of each Fund is equal to the net asset value per
share.
Investment income -- Interest income is accrued as earned. Discounts and
premiums on securities purchased are amortized in accordance with income tax
regulations which approximate generally accepted accounting principles.
Distributions to shareholders -- Dividends arising from net investment income
are declared daily and paid on the last business day of each month to
shareholders of each Fund. With respect to each Fund, net realized short-term
capital gains, if any, may be distributed throughout the year and net realized
long-term capital gains, if any, are distributed at least once each year. Income
dividends and capital gain distributions are determined in accordance with
income tax regulations.
Security transactions -- Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis.
Organization costs -- Costs incurred by the Money Market Fund and Intermediate
Bond Fund in connection with their organization and registration of shares, net
of certain expenses, have been capitalized and are being amortized on a
straight-line basis over a five year period beginning with each Fund's
commencement of operations.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is each Fund's policy to comply with the special
provisions of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Fund's intention to declare as dividends
in each calendar year at least 98% of its net investment income (earned during
the calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
As of September 30, 1998, the Institutional Government Income Fund, Money Market
Fund, Intermediate Bond Fund, Intermediate Term Government Income Fund and
Adjustable Rate U.S. Government Securities Fund had capital loss carryforwards
for federal income tax purposes of $21,742, $3,760, $21,290, $2,744,462 and
$1,252,395, respectively. In addition, the Money Market Fund and Adjustable Rate
U.S. Government Securities Fund elected to defer until its subsequent tax year
$2,025 and $57,161, respectively, of capital losses incurred after October 31,
1997. These capital loss carryforwards and "post-October" losses may be utilized
in the current and future years to offset net realized capital gains, if any,
prior to distributing such gains to shareholders.
<PAGE>
The following information is based upon the federal income tax cost of portfolio
investments as of March 31, 1999:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Adjustable
Intermediate Rate U.S.
Intermediate Term Government
Bond Government Securities
Fund Income Fund Fund
-------------- --------------- ---------------
<S> <C> <C> <C>
Gross unrealized appreciation........................... $ 109,912 $ 1,103,660 $ 63,378
Gross unrealized depreciation........................... (177,097) (152,021) (20,912)
-------------- --------------- ---------------
Net unrealized appreciation (depreciation) ........... $ ( 67,185) $ 951,639 $ 42,466
============== =============== ===============
Federal income tax cost................................. $ 17,226,614 $ 45,652,067 $ 9,313,484
============== =============== ===============
</TABLE>
- --------------------------------------------------------------------------------
3. INVESTMENT TRANSACTIONS
<TABLE>
Investment transactions (excluding short-term investments) were as follows for the six months ended March 31, 1999:
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
Adjustable
Intermediate Rate U.S.
Intermediate Term Government
Bond Government Securities
Fund Income Fund Fund
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Purchases of investment securities...................... $ 5,484,650 $ 11,631,846 $ 2,254,683
============== =============== ===============
Proceeds from sales and maturities of
investment securities............................ $ 12,006,744 $ 13,838,013 $ 2,108,594
============== =============== ===============
</TABLE>
- --------------------------------------------------------------------------------
4. TRANSACTIONS WITH AFFILIATES
The Chairman, President and certain other officers of the Trust are also
officers of Countrywide Financial Services, Inc., or its subsidiaries which
include Countrywide Investments, Inc. (the Adviser), the Trust's investment
adviser and principal underwriter, and Countrywide Fund Services, Inc. (CFS),
the Trust's transfer agent, shareholder service agent and accounting services
agent. Countrywide Financial Services, Inc. is a wholly-owned subsidiary of
Countrywide Credit Industries, Inc., a New York Stock Exchange listed company
principally engaged in the business of residential mortgage lending.
MANAGEMENT AGREEMENT
Each Fund's investments are managed by the Adviser under the terms of a
Management Agreement. Under the Management Agreement, the Short Term Government
Income Fund, Money Market Fund, Intermediate Bond Fund, Intermediate Term
Government Income Fund and Adjustable Rate U.S. Government Securities Fund each
pay the Adviser a fee, which is computed and accrued daily and paid monthly, at
an annual rate of 0.50% of its respective average daily net assets up to $50
million; 0.45% of such net assets from $50 million to $150 million; 0.40% of
such net assets from $150 million to $250 million; and 0.375% of such net assets
in excess of $250 million. The Institutional Government Income Fund pays the
Adviser a fee, which is computed and accrued daily and paid monthly, at an
annual rate of 0.20% of its average daily net assets.
<PAGE>
In order to voluntarily reduce operating expenses during the six months ended
March 31, 1999, the Adviser waived $12,521 of its advisory fees for the
Institutional Government Income Fund; waived $58,616 of its advisory fees for
the Money Market Fund; waived $22,349 of its advisory fees for the Intermediate
Bond Fund; and waived its advisory fees of $25,001 and reimbursed other
operating expenses of $28,033 for the Adjustable Rate U.S. Government Securities
Fund.
The Adviser has agreed, until at least August 31, 1999, to waive fees and
reimburse expenses to the extent necessary to limit total operating expenses of
the Money Market Fund and Intermediate Bond Fund to 0.80% and 0.95%,
respectively, of each Fund's average daily net assets.
TRANSFER AGENT AND SHAREHOLDER SERVICE AGREEMENT
Under the terms of the Transfer, Dividend Disbursing, Shareholder Service and
Plan Agency Agreement between the Trust and CFS, CFS maintains the records of
each shareholder's account, answers shareholders' inquiries concerning their
accounts, processes purchases and redemptions of each Fund's shares, acts as
dividend and distribution disbursing agent and performs other shareholder
service functions. For these services, CFS receives a monthly fee at an annual
rate of $25 per shareholder account from each of the Short Term Government
Income Fund, Institutional Government Income Fund and Money Market Fund and $21
per shareholder account from each of the Intermediate Bond Fund, Intermediate
Term Government Income Fund and Adjustable Rate U.S. Government Securities Fund,
subject to a $1,000 minimum monthly fee for each Fund. In addition, each Fund
pays CFS out-of-pocket expenses including, but not limited to, postage and
supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of the Accounting Services Agreement between the Trust and CFS,
CFS calculates the daily net asset value per share and maintains the financial
books and records of each Fund. For these services, CFS receives a monthly fee,
based on current asset levels, of $3,000 from the Short Term Government Income
Fund, $2,000 from each of the Institutional Government Income Fund, Money Market
Fund and Intermediate Bond Fund and $2,500 from each of the Intermediate Term
Government Income Fund and Adjustable Rate U.S. Government Securities Fund. In
addition, each Fund pays certain out-of-pocket expenses incurred by CFS in
obtaining valuations of such Fund's portfolio securities.
UNDERWRITING AGREEMENT
The Adviser is the Funds' principal underwriter and, as such, acts as exclusive
agent for distribution of the Funds' shares. Under the terms of the Underwriting
Agreement between the Trust and the Adviser, the Adviser earned $2,437, $4,506
and $1,074 from underwriting and broker commissions on the sale of shares of the
Intermediate Bond Fund, Intermediate Term Government Income Fund and Adjustable
Rate U.S. Government Securities Fund, respectively, for the six months ended
March 31, 1999.
PLANS OF DISTRIBUTION
The Trust has a Plan of Distribution under which shares of each Fund may
directly incur or reimburse the Adviser for expenses related to the distribution
and promotion of shares. The annual limitation for payment of such expenses
under the Plan is 0.35% of each Fund's average daily net assets, except for the
Institutional Government Income Fund for which the annual limitation is 0.10% of
its average daily net assets.
5. Capital Share Transactions
Proceeds from shares sold and payments for shares redeemed as shown in the
Statements of Changes in Net Assets are the result of the following capital
share transactions for the periods shown:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Intermediate Term Adjustable Rate
Intermediate Bond Government U.S. Government
Fund Income Fund Securities Fund
- -------------------------------------------------------------------------------------------------------------
Six Months Six Months Six Months
Ended Year Ended Year Ended Year
March 31, Ended March 31, Ended March 31, Ended
1999 Sept. 30, 1999 Sept. 30, 1999 Sept. 30,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold.............................. 386,966 1,947,922 603,064 1,312,955 156,458 852,470
Shares issued in reinvestment of
distributions to shareholders.......... 39,858 51,693 107,168 232,218 25,200 73,312
Shares redeemed.......................... (971,811) (1,294,973) (893,272) (1,926,636) (304,247)(2,186,125)
---------- ---------- --------- --------- --------- ---------
Net increase (decrease) in
shares outstanding....................... (544,987) 704,642 (183,040) (381,463) (122,589)(1,260,343)
Shares outstanding, beginning of period.. 2,258,294 1,553,652 4,588,497 4,969,960 1,095,327 2,355,670
---------- ---------- --------- --------- --------- ---------
Shares outstanding, end of period........ 1,713,307 2,258,294 4,405,457 4,588,497 972,738 1,095,327
---------- ---------- --------- --------- --------- ---------
- --------------------------------------------------------------------------------
Share transactions for the Short Term Government Income Fund, Institutional Government Income Fund and Money Market
Fund are identical to the dollar value of those transactions as shown in the Statements of Changes in Net Assets.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SHORT TERM GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
March 31, 1999 (Unaudited)
============================================================================================================
Par Market
Value U.S. TREASURY OBLIGATIONS-- 32.3% Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 4,000,000 U.S. Treasury Notes, 7.00%, 4/15/99........................................ $ 4,003,704
2,000,000 U.S. Treasury Notes, 6.375%, 4/30/99....................................... 2,001,185
2,000,000 U.S. Treasury Notes, 6.25%, 5/31/99........................................ 2,005,208
3,000,000 U.S. Treasury Notes, 6.75%, 6/30/99........................................ 3,015,131
5,000,000 U.S. Treasury Notes, 6.375%, 7/15/99....................................... 5,024,821
3,000,000 U.S. Treasury Notes, 6.00%, 8/15/99........................................ 3,014,443
4,000,000 U.S. Treasury Notes, 6.875%, 8/31/99....................................... 4,037,243
2,000,000 U.S. Treasury Notes, 5.875%, 8/31/99....................................... 2,008,591
5,000,000 U.S. Treasury Notes, 5.875%, 11/15/99...................................... 5,035,231
2,000,000 U.S. Treasury Notes, 5.625%, 11/30/99...................................... 2,011,215
2,000,000 U.S. Treasury Notes, 5.375%, 1/31/00....................................... 2,011,521
- --------------- ---------------
$ 34,000,000 TOTAL U.S. TREASURY OBLIGATIONS
===============
(Amortized Cost $34,168,293).............................................. $ 34,168,293
---------------
=============================================================================================================
Face Market
Amount REPURCHASE AGREEMENTS (Note A)-- 67.3% Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 24,700,000 Prudential Securities, Inc., 4.95%, dated 3/31/99, due 4/01/99,
repurchase proceeds $24,703,396......................................... $ 24,700,000
15,000,000 Morgan Stanley Dean Witter, Inc., 4.95%, dated 3/31/99, due 4/01/99,
repurchase proceeds $15,002,063......................................... 15,000,000
15,000,000 Nesbitt Burns Securities, Inc., 4.85%, dated 3/31/99, due 4/01/99,
repurchase proceeds $15,002,021......................................... 15,000,000
6,500,000 Nesbitt Burns Securities, Inc., 4.80%, dated 3/31/99, due 4/01/99,
repurchase proceeds $6,500,867.......................................... 6,500,000
10,000,000 Morgan Stanley Dean Witter, Inc., 4.88%, dated 3/31/99, due 4/07/99,
- --------------- repurchase proceeds $10,001,356......................................... 10,000,000
---------------
$ 71,200,000 TOTAL REPURCHASE AGREEMENTS ............................................... $ 71,200,000
- --------------- ---------------
TOTAL INVESTMENT SECURITIES AND
REPURCHASE AGREEMENTS-- 99.6% .......................................... $ 105,368,293
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.4% .............................. 456,247
---------------
NET ASSETS-- 100.0% ....................................................... $ 105,824,540
===============
See accompanying notes to portfolios of investments and notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
March 31, 1999 (Unaudited)
=============================================================================================================
Par Market
Value INVESTMENT SECURITIES-- 58.5% Value
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCY ISSUES -- 57.3%
$ 1,870,000 FHLMC Discount Notes, 4/01/99.............................................. $ 1,870,000
210,000 FFCB Medium Term Notes, 5.50%, 4/01/99..................................... 210,000
250,000 FHLB, 5.86%, 4/02/99....................................................... 250,003
202,000 FHLMC Discount Notes, 4/06/99.............................................. 201,864
500,000 FHLB, 5.57%, 4/07/99....................................................... 499,995
250,000 FHLB Medium Term Notes, 7.15%, 4/07/99..................................... 250,087
2,000,000 FHLB Floating Rate Notes, 4.968%, 4/09/99 (Note B)......................... 2,000,000
1,000,000 FHLB, 5.65%, 4/09/99....................................................... 1,000,060
500,000 FHLB, 6.60%, 4/13/99....................................................... 500,251
423,000 FHLMC Discount Notes, 4/15/99.............................................. 422,207
535,000 FHLMC Discount Notes, 4/16/99.............................................. 533,919
1,000,000 FHLMC, 6.55%, 4/19/99...................................................... 1,000,711
511,000 FNMA Discount Notes, 4/23/99............................................... 509,454
400,000 FFCB, 5.80%, 4/27/99....................................................... 400,160
1,050,000 FHLB, 5.51%, 4/30/99....................................................... 1,050,268
225,000 FFCB, 5.60%, 5/03/99....................................................... 225,077
440,000 FFCB, 4.60%, 5/03/99....................................................... 439,865
200,000 FNMA Medium Term Notes, 5.56%, 5/21/99..................................... 200,120
255,000 FNMA Medium Term Notes, 5.65%, 5/26/99..................................... 255,138
245,000 FFCB, 6.21%, 6/03/99....................................................... 245,190
750,000 FNMA, 8.70%, 6/10/99....................................................... 755,231
200,000 FFCB, 5.835%, 6/14/99...................................................... 200,033
250,000 FHLB, 5.63%, 6/15/99....................................................... 250,308
2,000,000 SLMA Floating Rate Notes, 5.152%, 6/17/99 (Note B)......................... 2,000,750
450,000 FNMA Medium Term Notes, 6.06%, 6/21/99..................................... 450,924
100,000 FHLB, 5.585%, 6/23/99...................................................... 100,080
150,000 FHLB, 8.60%, 6/25/99....................................................... 151,215
250,000 FHLB, 5.51%, 7/06/99....................................................... 250,359
450,000 FHLMC, 6.53%, 7/08/99...................................................... 451,616
185,000 FHLB, 6.315%, 7/09/99...................................................... 185,522
835,000 FNMA, 8.45%, 7/12/99....................................................... 842,482
100,000 FHLB, 5.54%, 7/15/99....................................................... 100,066
195,000 FHLMC, 7.125%, 7/21/99..................................................... 195,825
225,000 FHLB, 8.45%, 7/26/99....................................................... 227,333
200,000 FHLB, 6.26%, 8/09/99....................................................... 200,822
415,000 FNMA, 6.35%, 8/10/99....................................................... 416,795
270,000 FHLB, 5.524%, 8/12/99...................................................... 270,353
215,000 FHLB, 8.60%, 8/25/99....................................................... 218,087
220,000 FNMA, 8.55%, 8/30/99....................................................... 223,040
100,000 FHLB, 6.44%, 9/09/99....................................................... 100,443
200,000 FHLB, 6.15%, 9/14/99....................................................... 200,872
200,000 FNMA Medium Term Notes, 5.81%, 10/01/99.................................... 200,750
100,000 FHLB, 5.87%, 10/22/99...................................................... 100,332
500,000 FHLB, 5.00%, 10/28/99...................................................... 499,917
500,000 FHLB, 5.03%, 10/29/99...................................................... 500,000
1,863,000 FNMA, 8.35%, 11/10/99...................................................... 1,898,596
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INSTITUTIONAL GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS (continued)
============================================================================================================
Par Market
Value INVESTMENT SECURITIES-- 58.5% (continued) Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 250,000 FHLMC, 6.60%, 11/12/99..................................................... $ 252,356
200,000 FHLB, 5.825%, 11/26/99..................................................... 200,809
500,000 FFCB, 5.63%, 12/09/99...................................................... 501,825
100,000 FHLB, 5.00%, 12/29/99...................................................... 99,753
320,000 FNMA, 6.10%, 2/10/00....................................................... 322,681
- --------------- ---------------
$ 24,359,000 TOTAL U.S. GOVERNMENT AGENCY ISSUES
- --------------- (Amortized Cost $24,433,547)............................................... $ 24,433,547
---------------
VARIABLE RATE DEMAND NOTES (Note C) -- 1.2%
$ 500,000 Illinois Student Loan Assistance Commission, Student Loan Rev, Ser. C, 4.88%, 12/01/22,
- --------------- Guarantor SLMA (Amortized Cost $500,000)................................ $ 500,000
---------------
$ 24,859,000 TOTAL INVESTMENT SECURITIES
- --------------- (Amortized Cost $24,933,547)............................................... $ 24,933,547
---------------
=============================================================================================================
Face Market
Amount REPURCHASE AGREEMENTS (Note A)-- 40.6% Value
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
$ 7,300,000 Prudential Securities, Inc., 4.95%, dated 3/31/99, due 4/01/99,
repurchase proceeds $7,301,004.......................................... $ 7,300,000
6,000,000 Morgan Stanley Dean Witter, Inc., 4.95%, dated 3/31/99, due 4/01/99,
repurchase proceeds $6,000,825.......................................... 6,000,000
4,000,000 Morgan Stanley Dean Witter, Inc., 4.88%, dated 3/31/99, due 4/07/99,
- --------------- repurchase proceeds $4,000,542.......................................... 4,000,000
---------------
$ 17,300,000 TOTAL REPURCHASE AGREEMENTS ............................................... $ 17,300,000
- --------------- ---------------
TOTAL INVESTMENT SECURITIES AND
REPURCHASE AGREEMENTS-- 99.1% .......................................... $ 42,233,547
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.9% .............................. 401,258
---------------
NET ASSETS-- 100.0% ....................................................... $ 42,634,805
---------------
</TABLE>
See accompanying notes to portfolios of investments and notes to financial
statements.
<PAGE>
<TABLE>
<S> <C> <C>
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS
March 31, 1999 (Unaudited)
============================================================================================================
Par Market
Value INVESTMENT SECURITIES-- 100.0% Value
- ------------------------------------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES (Note C) -- 45.3%
$ 240,000 Monroe Co., NY, IDA Rev., Ser. B, 5.20%, 10/01/00.......................... $ 240,000
500,000 Brownsburg, IN, EDR (Zanetis Ent.), 5.20%, 6/01/03......................... 500,000
595,000 Community Health Systems, Ser. 1991B, 5.10%, 10/01/03..................... 595,000
765,000 Maryland Stadium Auth. Sports Facilities Lease Rev., Ser. B, 5.30%, 12/15/03 765,000
601,000 Illinois Development Finance Auth. IDR (Landcomp Corp.), 5.05%, 7/01/05.... 601,000
190,000 Schenectady, NY, IDR (JMR Development Co.), 5.10%, 12/01/07................ 190,000
825,000 Diamond Development Group, Inc., Ser. 1996, 5.05%, 9/01/08,................ 825,000
1,250,000 North Greenbush, NY, IDA Rev. (Virogenetics), 5.20%, 11/01/08.............. 1,250,000
830,000 Vista Funding Corp., 5.07%, 9/01/11........................................ 830,000
1,200,000 McCreary Co., KY, IDR (Le Sportsac, Inc.), 5.25%, 4/01/13.................. 1,200,000
1,500,000 South Central Communications Corp., Ser. 1998, 5.10%, 9/01/16.............. 1,500,000
1,000,000 Meriter Hospital, Inc., 5.05%, 12/01/16.................................... 1,000,000
980,000 Commonwealth of Virginia Housing Dev. Auth., 4.99%, 1/01/18................ 980,000
530,000 Ohio HFA Rev., Ser. 1998A-2, 5.05%, 7/01/18................................ 530,000
500,000 Ontario, CA, Rev. (Mission Oaks), 5.95%, 10/01/26.......................... 500,000
1,500,000 ABAG Fin. Auth for Nonprofit Corp., CA, COP, Ser. D, 5.10%, 10/01/27....... 1,500,000
1,300,000 Illinois HFA Rev., Ser. 1998B (Elmhurst Memorial), 5.10%, 1/01/28.......... 1,300,000
1,000,000 American Healthcare Funding, 5.00%, 3/01/29................................ 1,000,000
- --------------- ---------------
$ 15,306,000 TOTAL VARIABLE RATE DEMAND NOTES
- --------------- (Amortized Cost $15,306,000)............................................... $ 15,306,000
---------------
FIXED RATE REVENUE BONDS -- 8.4%
$ 440,000 Cuyahoga Co., OH, EDR (Brownfield Redev.), 5.06%, 6/01/99.................. $ 439,750
535,000 St. Louis, MO, Municipal Fin. Corp. Firemans Retirement System, 5.85%, 8/01/99 536,101
100,000 Emeryville, CA, Public Financing Authority Rev., 5.75%, 9/01/99............ 99,958
400,000 Chicago Tax Increment Allocation (Near South Proj.), 5.20%, 11/15/99....... 400,000
425,000 South Adams Co., CO, Water and Sanitation Dist. Rev., 5.30%, 12/01/99...... 425,000
250,000 Lehigh Co., PA, General Purpose Rev. (St. Francis College), 5.50%,12/15/99. 250,000
200,000 Umatilla Indian Reservation, OR, Ser. 1999B, 5.60%, 2/01/00................ 200,000
500,000 Hamilton, OH, Parking Garage Rev., 5.66%, 3/22/00.......................... 501,200
- --------------- ---------------
$ 2,850,000 TOTAL FIXED RATE REVENUE BONDS
- --------------- (Amortized Cost $2,852,009)................................................ $ 2,852,009
---------------
CORPORATE NOTES -- 27.2%
$ 253,000 New England Telephone & Telegraph, 4.625%, 4/01/99......................... $ 253,000
872,000 Citicorp, 9.00%, 4/15/99................................................... 873,171
500,000 Bank of America Corp., 7.23%, 5/02/99...................................... 500,862
150,000 GMAC, 7.125%, 6/01/99...................................................... 150,487
384,000 Caterpillar Financial Services, 7.70%, 6/10/99............................. 385,884
100,000 American General Finance, 8.50%, 6/15/99................................... 100,587
247,000 Chase Manhattan Corp., 10.00%, 6/15/99..................................... 249,186
200,000 GMAC, 8.625%, 6/15/99...................................................... 201,437
500,000 Florida Power & Light, 5.50%, 7/01/99...................................... 500,356
200,000 Ford Motor Credit Co., 7.40%, 7/07/99...................................... 201,226
245,000 Texaco Capital, 6.875%, 7/15/99............................................ 246,090
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS (continued)
=============================================================================================================
Par Market
Value INVESTMENT SECURITIES-- 100.0% (continued) Value
- ------------------------------------------------------------------------------------------------------------
$ 200,000 Bankers Trust Corp., 6.625%, 7/30/99....................................... $ 200,853
320,000 Citicorp, 9.75%, 8/01/99................................................... 324,624
480,000 Morgan Stanley, Dean Witter, Discover & Co., 7.50%, 9/01/99................ 484,513
145,000 Merrill Lynch, 6.25%, 9/02/99.............................................. 145,631
660,000 Bear Stearns & Co., 7.625%, 9/15/99........................................ 667,182
402,000 Ford Motor Credit Co., 6.375%, 9/15/99..................................... 403,763
378,000 Ford Motor Credit Co., 7.75%, 10/01/99..................................... 382,626
130,000 Transamerica Financial Corp., 8.75%, 10/01/99.............................. 132,192
130,000 American General Corp., 7.70%, 10/15/99.................................... 131,558
525,000 International Lease Finance Corp., 6.125%, 11/01/99........................ 527,747
227,000 Ford Motor Credit Co., 7.50%, 11/15/99..................................... 229,869
370,000 General Electric Capital Corp., 6.93%, 11/19/99............................ 373,960
175,000 Associates Corp, NA, 8.25%, 12/01/99....................................... 178,450
250,000 BP America, Inc., 6.50%, 12/15/99.......................................... 252,312
350,000 International Lease Finance Corp., 5.75%, 12/15/99......................... 351,109
300,000 American General Finance, 7.00%, 12/30/99.................................. 303,926
250,000 GMAC, 5.70%, 1/10/00....................................................... 250,509
199,000 Associates Corp., NA, 6.00%, 3/15/00....................................... 200,152
- --------------- ---------------
$ 9,142,000 TOTAL CORPORATE NOTES
- --------------- (Amortized Cost $9,203,262)................................................ $ 9,203,262
---------------
U.S. GOVERNMENT AGENCY ISSUES -- 0.9%
$ 290,000 FFCB, 6.49%, 7/19/99
- --------------- (Amortized Cost $290,802).................................................. $ 290,802
---------------
MULTI-MODE MUNICIPAL NOTES -- 1.1%
$ 365,000 Bolingbrook, IL, MFH Rev., 5.15%, 5/19/99
- --------------- (Amortized Cost $365,000).................................................. $ 365,000
---------------
COMMERCIAL PAPER -- 17.1%
$ 1,600,000 Bridgestone/Firestone, 4/01/99............................................. $ 1,600,000
815,000 Coop. Assn. of Tractor Dealers, 4/01/99.................................... 815,000
1,600,000 Duke Energy, 4/01/99....................................................... 1,600,000
1,600,000 New Center Asset Trust, 4/01/99............................................ 1,600,000
150,000 General Electric Capital Corp., 4/05/99.................................... 149,915
- --------------- ---------------
$ 5,765,000 TOTAL COMMERCIAL PAPER
- --------------- (Amortized Cost $5,764,915)................................................ $ 5,764,915
---------------
$ 33,718,000 TOTAL INVESTMENT SECURITIES-- 100.0%
=============== (Amortized Cost $33,781,988)............................................... $ 33,781,988
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.0% .............................. 3,233
---------------
NET ASSETS-- 100.0% ....................................................... $ 33,785,221
===============
See accompanying notes to portfolios of investments and notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
INTERMEDIATE BOND FUND
PORTFOLIO OF INVESTMENTS
March 31, 1999 (Unaudited)
=============================================================================================================
Par Market
Value INVESTMENT SECURITIES-- 101.5% Value
- -------------------------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 5.8%
$ 1,000,000 U.S. Treasury Notes, 4.75%, 2/15/04
- --------------- (Amortized Cost $1,000,657)`............................................... $ 984,688
---------------
U.S. GOVERNMENT AGENCY ISSUES -- 12.3%
$ 1,000,000 FHLMC, 7.93%, 1/20/05...................................................... $ 1,102,557
1,000,000 FHLMC, 5.125%, 10/15/08.................................................... 948,861
30,000 TVA, 8.05%, 7/15/24........................................................ 30,275
- --------------- ---------------
$ 2,030,000 TOTAL U.S. GOVERNMENT AGENCY ISSUES
- --------------- (Amortized Cost $2,118,110)................................................ $ 2,081,693
---------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES -- 12.1%
$ 63,290 SBA #1987-20A, 8.45%, 1/01/07.............................................. $ 66,729
1,000,000 GNMA #455136, 7.00%, 6/15/28............................................... 1,011,700
1,000,100 FHLMC #C21763, 6.00%, 2/01/29.............................................. 972,948
- --------------- ---------------
$ 2,063,390 TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES
- --------------- (Amortized Cost $2,062,400)................................................ $ 2,051,377
---------------
CORPORATE BONDS -- 51.3%
$ 175,000 Pacific Gas & Electric Co., 6.625%, 6/01/00................................ $ 175,567
350,000 Florida Residential Property & Casualty Co., 7.25%, 7/01/02................ 358,042
259,000 May Department Stores Co., 9.875%, 12/01/02................................ 292,937
660,000 Ford Motor Credit Co., 7.50%, 1/15/03...................................... 692,966
380,000 Bankers Trust Corp., 7.25%, 1/15/03........................................ 389,676
68,000 U.S. Leasing International, Inc., 6.625%, 5/15/03.......................... 68,881
500,000 AT&T Corp., 5.625%, 3/15/04................................................ 497,647
66,000 Kaiser Permanente, 9.55%, 7/15/05.......................................... 76,992
510,000 Honeywell, Inc., 8.625%, 4/15/06........................................... 576,770
1,000,000 Monsanto Co., 8.13%, 12/15/06.............................................. 1,077,990
500,000 Union Oil of California Corp. Medium Term Notes, 6.70%, 10/15/07........... 498,802
50,000 Berkley (W.R.) Corp., 9.875%, 5/15/08...................................... 59,289
575,000 General Electric Capital Corp. Medium Term Notes, 7.50%, 6/15/09........... 642,855
268,000 Super Value Stores, 8.875%, 4/01/16........................................ 268,000
20,000 Union Camp Corp., 8.625%, 4/15/16.......................................... 20,721
35,000 Kraft, Inc., 8.50%, 2/15/17................................................ 35,416
150,000 Deere & Co., 8.95%, 6/15/19................................................ 181,027
439,000 Pennsylvania Power & Light Co., 9.25%, 10/01/19............................ 463,540
115,000 Rohm & Haas Co., 9.80%, 4/15/20............................................ 136,128
165,000 Questar Pipeline Co., 9.375%, 6/01/21...................................... 181,447
120,000 Jersey Central Power & Light Co., 9.20%, 7/01/21........................... 130,382
500,000 AT&T Corp., 8.125%, 1/15/22................................................ 523,288
675,000 Shopko Stores, Inc., 9.25%, 3/15/22........................................ 766,112
85,000 Southwestern Public Service Co., 8.20%, 12/01/22........................... 91,614
130,000 Union Electric Co., 8.00%, 12/15/22........................................ 135,984
315,000 Wisconsin Electric Power Co., 7.75%, 1/15/23............................... 326,408
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>>
INTERMEDIATE BOND FUND
PORTFOLIO OF INVESTMENTS (continued)
============================================================================================================
Par Market
Value INVESTMENT SECURITIES-- 101.5% (continued) Value
- ------------------------------------------------------------------------------------------------------------
$ 8,110,000 TOTAL CORPORATE BONDS
- --------------- (Amortized Cost $8,666,437)................................................ $ 8,668,481
---------------
MUNICIPAL NOTES -- 10.2%
$ 1,500,000 Chula Vista, CA, Pension Obligation Rev., 8.125%, 8/01/11
- --------------- (Amortized Cost $1,724,010)................................................ $ 1,718,190
---------------
COMMERCIAL PAPER -- 9.8%
$ 1,655,000 British Petroleum, 4/01/99
- --------------- (Amortized Cost $1,655,000)................................................ $ 1,655,000
---------------
$ 16,358,390 TOTAL INVESTMENT SECURITIES-- 101.5%
=============== (Amortized Cost $17,226,614)............................................... $ 17,159,429
LIABILITIES IN EXCESS OF OTHER ASSETS-- (1.5%) ............................ ( 247,204 )
---------------
NET ASSETS-- 100.0% ....................................................... $ 16,912,225
---------------
</TABLE>
See accompanying notes to portfolios of investments and notes to financial
statements.
<PAGE>
<TABLE>
<S> <C> <C>
INTERMEDIATE TERM GOVERNMENT INCOME FUND
PORTFOLIO OF INVESTMENTS
March 31, 1999 (Unaudited)
============================================================================================================
Par Market
Value INVESTMENT SECURITIES-- 98.7% Value
- ------------------------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 18.2%
$ 1,000,000 U.S. Treasury Notes, 7.75%, 2/15/01........................................ $ 1,048,125
1,000,000 U.S. Treasury Notes, 8.00%, 5/15/01........................................ 1,058,750
3,000,000 U.S. Treasury Notes, 7.875%, 8/15/01....................................... 3,184,689
2,000,000 U.S. Treasury Notes, 7.50%, 11/15/01....................................... 2,115,000
1,000,000 U.S. Treasury Bonds, 7.50%, 11/15/16....................................... 1,175,000
- --------------- ---------------
$ 8,000,000 TOTAL U.S. TREASURY OBLIGATIONS
- --------------- (Amortized Cost $8,187,931)................................................ $ 8,581,564
---------------
U.S. GOVERNMENT AGENCY ISSUES -- 68.6%
$ 1,113,000 FHLB Discount Notes, 4/01/99............................................... $ 1,113,000
1,000,000 SLMA Medium Term Notes, 7.50%, 7/02/01..................................... 1,045,619
2,000,000 FHLB Notes, 7.31%, 7/06/01................................................. 2,084,298
2,000,000 FHLB Medium Term Notes, 8.43%, 8/01/01..................................... 2,133,190
2,000,000 FNMA Notes, 7.55%, 4/22/02................................................. 2,118,314
2,000,000 FNMA Notes, 5.125%, 2/13/04................................................ 1,963,330
2,000,000 FHLMC Notes, 6.80%, 7/09/04................................................ 2,049,400
2,000,000 FHLMC Notes, 8.53%, 11/18/04............................................... 2,042,992
2,000,000 FHLMC Notes, 7.65%, 5/10/05................................................ 2,047,910
1,400,000 FNMA Notes, 6.26%, 1/24/06................................................. 1,394,938
2,500,000 FNMA Notes, 6.21%, 1/26/06................................................. 2,486,285
2,000,000 FNMA Notes, 6.06%, 2/03/06................................................. 1,996,732
1,000,000 FHLMC Notes, 6.345%, 2/15/06............................................... 1,002,556
2,000,000 FNMA Notes, 6.64%, 7/02/07................................................. 2,101,846
2,500,000 FHLMC Notes, 5.75%, 4/15/08................................................ 2,477,412
1,000,000 FHLMC Notes, 5.125%, 10/15/08.............................................. 948,861
2,203,000 RFCO STRIPS, 10/15/08...................................................... 1,278,266
2,000,000 FNMA Notes, 6.96%, 9/05/12................................................. 2,099,344
- --------------- ---------------
$ 32,716,000 TOTAL U.S. GOVERNMENT AGENCY ISSUES
- --------------- (Amortized Cost $31,783,484)............................................... $ 32,384,293
---------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES -- 11.9%
$ 1,665,352 FNMA #380592, 6.17%, 8/01/08.............................................. $ 1,670,110
1,999,800 GNMA #455136, 7.00%, 6/15/28............................................... 2,030,602
1,990,752 FHLMC #C19286, 6.00%, 12/01/28............................................. 1,937,137
- --------------- ---------------
$ 5,655,904 TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES
- --------------- (Amortized Cost $5,680,652)................................................ $ 5,637,849
---------------
$ 46,371,904 TOTAL INVESTMENT SECURITIES-- 98.7%
=============== (Amortized Cost $45,652,067)............................................... $ 46,603,706
OTHER ASSETS IN EXCESS OF LIABILITIES-- 1.3% .............................. 626,060
---------------
NET ASSETS-- 100.0% ....................................................... $ 47,229,766
---------------
</TABLE>
See accompanying notes to portfolios of investments and notes to financial
statements.
<PAGE>
<TABLE>
<S> <C> <C>
ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND
PORTFOLIO OF INVESTMENTS
March 31, 1999 (Unaudited)
============================================================================================================
Par Market
Value INVESTMENT SECURITIES -- 99.1% Value
- ------------------------------------------------------------------------------------------------------------
ADJUSTABLE RATE U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED SECURITIES (Note D) -- 79.3%
$ 880,828 FNMA #70907, 6.737%, 3/01/18............................................... $ 907,385
876,218 FHLMC #605793, 6.702%, 5/01/18............................................. 896,888
825,801 FNMA #70614, 6.644%, 10/01/18.............................................. 845,381
266,103 FNMA #70635, 6.461%, 6/01/20............................................... 269,256
1,182,694 FHLMC #846013, 7.312%, 6/01/22............................................. 1,212,829
1,013,781 GNMA #8217, 6.875%, 6/20/23................................................ 1,034,249
992,013 FNMA #70176, 6.677%, 8/01/27............................................... 1,016,754
1,269,795 FNMA #70243, 6.611%, 3/01/28............................................... 1,301,984
- --------------- ---------------
$ 7,307,233 TOTAL ADJUSTABLE RATE U.S. GOVERNMENT AGENCY
- ---------------
MORTGAGE-BACKED SECURITIES
(Amortized Cost $7,432,166)................................................ $ 7,484,726
---------------
FIXED RATE U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED SECURITIES -- 12.0%
$ 1,121,000 FNMA #1997-42H, 7.00%, 12/17/19
- --------------- (Amortized Cost $1,141,318)................................................ $ 1,131,224
---------------
U.S. GOVERNMENT AGENCY ISSUES-- 7.8%
$ 740,000 FHLB Discount Notes, 4/01/99
- --------------- (Amortized Cost $740,000).................................................. $ 740,000
---------------
$ 9,168,233 TOTAL INVESTMENT SECURITIES-- 99.1%
=============== (Amortized Cost $9,313,484)................................................ $ 9,355,950
OTHER ASSETS IN EXCESS OF LIABILITIES-- 0.9% .............................. 85,675
---------------
NET ASSETS-- 100.0% ....................................................... $ 9,441,625
---------------
</TABLE>
See accompanying notes to portfolios of investments and notes to financial
statements.
<PAGE>
NOTES TO PORTFOLIOS OF INVESTMENTS
March 31, 1999 (Unaudited)
================================================================================
A. REPURCHASE AGREEMENTS
Repurchase agreements are fully collateralized by U.S. Government obligations.
B. FLOATING RATE NOTES
A floating rate note is a security whose terms provide for the periodic
readjustment of its interest rate whenever a specified interest rate index
changes and which, at any time, can reasonably be expected to have a market
value that approximates its par value. The interest rates shown represent the
effective rates as of the report date. The dates shown represent the scheduled
maturity dates.
C. VARIABLE RATE DEMAND NOTES
A variable rate demand note is a security payable on demand at par whose terms
provide for the periodic readjustment of its interest rate on set dates and
which, at any time, can reasonably be expected to have a market value that
approximates its par value. The interest rates shown represent the effective
rates as of the report date. The dates shown represent the scheduled maturity
dates.
D. ADJUSTABLE RATE U.S. GOVERNMENT AGENCY MORTGAGE-BACKED SECURITIES
Adjustable rate U.S. Government agency mortgage-backed securities are
mortgage-related securities created from pools of adjustable rate mortgages
which are issued or guaranteed as to principal and interest by the U.S.
Government, its agencies or instrumentalities. Such adjustable rate mortgage
securities have interest rates that reset at periodic intervals based on a
specified interest rate index. The interest rates shown represent the effective
rates as of the report date. The dates shown represent the scheduled maturity
date.
PORTFOLIO ABBREVIATIONS:
COP - Certificate of Participation
EDR - Economic Development Revenue
FFCB - Federal Farm Credit Bank
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
HFA - Housing Finance Authority
IDA - Industrial Development Authority
IDR - Industrial Development Revenue
MFH - Multi-Family Housing
RFCO - Resolution Funding Corporation
SBA - Small Business Administration
SLMA - Student Loan Marketing Association
STRIPS - Separate Trading of Registered Interest and Principal of Securities
TVA - Tennessee Valley Authority
<PAGE>
COUNTRYWIDE INVESTMENT TRUST
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-4094
Nationwide: (Toll Free) 800-543-8721
Cincinnati: 629-2000
Rate Line: 579-0999
SHAREHOLDER SERVICES
Nationwide: (Toll Free) 800-543-0407
Cincinnati: 629-2050
BOARD OF TRUSTEES
Angelo R. Mozilo, Chairman
Robert H. Leshner, President
Donald L. Bogdon, M.D.
H. Jerome Lerner
Howard J. Levine
Fred A. Rappoport
Oscar P. Robertson
John F. Seymour, Jr.
Sebastiano Sterpa
INVESTMENT ADVISER
Countrywide Investments, Inc.
312 Walnut St., 21st Floor
Cincinnati, Ohio 45202-4094
TRANSFER AGENT
Countrywide Fund Services, Inc.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
This report is authorized for distribution only when it is accompanied or
preceded by a current prospectus of Countrywide Investment Trust.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000066117
<NAME> COUNTRYWIDE INVESTMENT TRUST
<SERIES>
<NUMBER> 1
<NAME> SHORT TERM GOVERNMENT INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> MAR-31-1999
<INVESTMENTS-AT-COST> 105,368,293
<INVESTMENTS-AT-VALUE> 105,368,293
<RECEIVABLES> 575,558
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 23,851
<TOTAL-ASSETS> 105,967,702
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 143,162
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<NAME> MONEY MARKET FUND
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<NAME> INTERMEDIATE BOND FUND
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<NAME> ADJUSTABLE RATE U.S. GOVERNMENT SECURITIES FUND
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