<PAGE> 1
LETTER FROM THE FUNDS' MANAGEMENT
DEAR SHAREHOLDER:
We are pleased to provide you with the Semi-Annual Report of the Pilot
domestic equity and fixed income funds for the six months ended February 28,
1997.
The Funds delivered strong performance relative to their benchmarks,
even as both equity and fixed income markets experienced some turbulence after
the start of 1997. We believe the Funds are well positioned to take advantage of
the continuing rowth in the economy, as well as any resulting changes the
Federal Reserve may make to interest rates.
The Pilot Funds are pleased to announce the introduction of two new
portfolios which were made available for investment in October, 1996. THE PILOT
GROWTH EQUITY FUND is designed to provide investors with long-term capital
growth by investing in companies expected to sustain superior profitability,
strong competitive advantages, and the potential for above-average appreciation
over time. THE PILOT DIVERSIFIED BOND INCOME FUND seeks to provide investors
with total return, emphasizing current income, and preservation of capital by
investing primarily in debt securities. The Fund's average weighted maturity
will be between five and fifteen years. We believe these two new portfolios
provide shareholders and new investors with even greater opportunities for
professional management and investment diversification within The Pilot Family
of Funds.
It was announced on August 30, 1996 that Boatmen's Bancshares, Inc., of
which The Pilot Funds' investment advisor, Boatmen's Trust Company is a
subsidiary, would be acquired by Nationsbank, Inc. of Charlotte, NC. The merger
was completed on January 8, 1997. The combined Nations/Boatmen's organizations
will continue to provide the same investment management expertise to The Pilot
Funds that shareholders have come to expect.
Thank you for choosing The Pilot Funds to help meet your investment
goals. Should you have any questions or wish to learn more about any of the
Funds, please call your local Boatmen's representative or The Pilot Funds at
1-800-71-PILOT (717-4568).
Sincerely,
William Tomko David F. Toth
President Senior Vice President
The Pilot Funds Boatmen's Trust Company
- --------------------------------------------------------------------------------
The Funds are advised by Boatmen's Trust Company, a non-bank subsidiary of
Boatmen's Bancshares, Inc., and are distributed by Pilot Funds Distributors,
Inc., which is not affiliated with Boatmen's Trust Company. Boatmen's Trust
Company receives fees for providing investment advisory services to the Funds.
This report is not authorized for distribution to prospective investors unless
preceded or accompanied by a current prospectus.
<PAGE> 2
PILOT GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
February 28, 1997
==========================================================
<TABLE>
<CAPTION>
Value
Shares Description (Note 2)
----------------------------------------------------------
<C> <S> <C>
COMMON STOCKS--94.6%
CONSUMER CYCLICAL--5.9%
AUTOMOTIVE--2.9%
329,648 Ford Motor Co. $ 10,837,178
------------
BUILDING & CONSTRUCTION--1.3%
118,970 Owens Corning 5,041,354
------------
ENTERTAINMENT--0.6%
67,200 Carnival Corp., Class A 2,368,800
------------
MEDIA--1.1%
2,093 TCI Satellite Entertainment, Inc.* 16,744
353,058 Tele-Communications, Inc.* 4,192,564
------------
4,209,308
------------
CONSUMER STAPLES--9.2%
BEVERAGE & TOBACCO--6.3%
214,962 Anheuser Busch Cos., Inc. 9,565,809
99,879 Philip Morris Cos., Inc. 13,496,150
------------
23,061,959
------------
FOOD PRODUCTS & SERVICES--2.9%
488,403 Archer-Daniels-Midland Co. 9,035,455
48,000 Sara Lee Corp. 1,860,000
------------
10,895,455
------------
ENERGY--8.6%
INTEGRATED OIL--8.6%
34,300 Amoco Corp. 2,898,350
62,678 Atlantic Richfield Co. 7,834,750
158,800 Chevron Corp. 10,242,600
65,570 Royal Dutch Petroleum Co. (ADR) 11,343,610
------------
32,319,310
------------
FINANCE--16.1%
BANKING--1,8%
63,601 J.P. Morgan & Co., Inc. 6,686,055
------------
FINANCIAL SERVICES--5.1%
141,052 Chase Manhattan Corp. 14,122,832
172,800 Federal Home Loan Mortgage Corp. 5,140,800
------------
19,263,632
------------
INSURANCE--9.2%
33,600 Aetna, Inc. $ 2,784,600
63,983 General Re Corp. 10,853,116
103,861 Marsh & McLennan Cos., Inc. 12,151,737
144,000 Torchmark Corp. 8,478,000
------------
34,267,453
------------
HEALTH CARE--7.7%
HOSPITALS--2.0%
192,000 Saint Jude Medical, Inc.* 7,584,000
------------
MEDICAL SUPPLIES & SERVICES--2.1%
185,566 Columbia/HCA Healthcare Corp. 7,793,772
------------
PHARMACEUTICALS--3.6%
23,000 Johnson & Johnson 1,325,375
165,400 SmithKline Beecham -- Sponsored ADR 12,280,950
------------
13,606,325
------------
INDUSTRIAL GOODS & SERVICES--5.6%
AEROSPACE & MILITARY TECHNOLOGY--2.2%
95,000 Lockheed Martin Corp. 8,407,500
------------
CONTAINERS & PACKAGING--3.4%
226,100 Crown Cork & Seal Co., Inc. 12,548,550
------------
MANUFACTURING--7.0%
CAPITAL GOODS--0.0%
1 Stewart & Stevenson Services, Inc. 26
------------
CONSUMER GOODS--0.3%
27,575 Parker-Hannifin Corp. 1,206,406
------------
ELECTRICAL EQUIPMENT--2.2%
186,413 Cooper Industries, Inc. 8,248,775
------------
HOUSEHOLD PRODUCTS--4.5%
78,766 Kimberly-Clark Corp. 8,349,196
10,100 Procter & Gamble Co. 1,213,263
304,140 Rubbermaid, Inc. 7,261,343
------------
16,823,802
------------
MATERIALS & PROCESSING--5.9%
FOREST PRODUCTS--0.1%
10,600 Champion International Corp. 467,725
------------
</TABLE>
==========================================================
See Notes to Financial Statements.
2
<PAGE> 3
PILOT GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997
==========================================================
<TABLE>
<CAPTION>
Value
Shares Description (Note 2)
- -------------------------------------------------------------
<C> <S> <C>
PAPER & FOREST PRODUCTS--5.8%
57,600 Georgia Pacific Corp. $ 4,492,800
189,480 International Paper Co. 7,910,790
157,400 Temple-Inland, Inc. 8,676,675
10,100 Union Camp Corp. 487,325
------------
21,567,590
------------
RETAILING--6.3%
DEPARTMENT STORES--4.8%
307,200 Dayton Hudson Corp. 12,902,400
111,890 May Department Stores Co. 5,216,871
------------
18,119,271
------------
DISCOUNT STORES--0.4%
49,245 Wal-Mart Stores, Inc. 1,298,837
------------
SPECIALITY STORES--1.1%
163,988 Toys "R" Us, Inc.* 4,263,688
------------
TECHNOLOGY--11.5%
BUSINESS SERVICES--2.2%
188,981 Automatic Data Processing, Inc. 8,055,315
------------
COMPUTERS--0.7%
139,630 Apple Computer, Inc.* 2,268,988
13,206 NCR Corp.* 435,798
------------
2,704,786
------------
ELECTRONIC COMPONENTS/SEMICONDUCTORS--6.0%
7,095 Intel Corp. 1,006,603
131,533 Motorola, Inc. 7,349,406
181,834 Raytheon Co. 8,568,927
126,402 Xilinx, Inc. 5,703,890
------------
22,628,826
------------
ENVIRONMENTAL SERVICES--2.6%
312,588 WMX Technologies, Inc. 9,885,596
------------
UTILITIES--10.8%
TELECOMMUNICATIONS--6.9%
212,103 AT&T Corp. 8,457,607
109,395 GTE Corp. 5,114,216
211,000 MCI Communications Corp. 7,543,250
81,575 SBC Communications, Inc. 4,690,562
------------
25,805,635
------------
ELECTRIC POWER--3.9%
324,390 PacifiCorp $ 6,690,544
356,015 Unicom Corp. 7,921,334
------------
14,611,878
TOTAL COMMON STOCKS (cost $292,161,439) 354,578,807
CONVERTIBLE PREFERRED STOCK--0.2%
7,592 AETNA Services, Inc. 612,105
TOTAL CONVERTIBLE PREFERRED STOCK (cost 612,105
$269,150)
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
(000)
- ----------------------------------------------------------
<C> <S> <C>
REPURCHASE AGREEMENT--5.4%
$ 20,609 Repurchase agreement with Lehman
Brothers, Inc., dated 2/28/97,
5.35% due 3/13/97, (cost $20,609)
(see Footnote A) $ 20,609,000
- -------------------------------------------------------------
TOTAL INVESTMENTS--100.2% (cost $313,039,589) 375,799,912
OTHER ASSETS IN EXCESS OF LIABILITIES--(0.2)% (789,939)
- -------------------------------------------------------------
NET ASSETS--100.0% $375,009,973
- -------------------------------------------------------------
</TABLE>
ADR--American Depository Receipt.
* Non-income producing security.
Footnote A
Collateralized by $20,465,000 U.S. Treasury Bond, 6.38%, due 3/31/01 with a
value of $21,029,463.
* Non-income producing security.
==========================================================
See Notes to Financial Statements.
3
<PAGE> 4
PILOT EQUITY INCOME FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
February 28, 1997 -- (Unaudited)
==========================================================
<TABLE>
<CAPTION>
Market
Value
Shares (Note 2)
- --------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS--85.5%
CONSUMER CYCLICAL--4.4%
AUTOMOTIVE--2.5%
115,271 Ford Motor Co. $ 3,789,534
-------------
MEDIA--1.9%
80,000 Readers Digest Assoc., Inc. Class A 2,990,000
-------------
CONSUMER STAPLES--11.3%
BEVERAGES AND TOBACCO--5.4%
39,004 Philip Morris Cos., Inc. 5,270,415
100,000 UST, Inc. 3,087,500
-------------
8,357,915
-------------
FOOD PROCESSING--5.9%
98,763 ConAgra, Inc. 5,234,439
60,000 General Mills, Inc. 3,915,000
-------------
9,149,439
-------------
ENERGY--9.8%
INTEGRATED OIL--9.8%
33,524 Amoco Corp. 2,832,778
19,409 Atlantic Richfield Co. 2,426,125
27,645 Exxon Corp. 2,761,044
20,000 Royal Dutch Petroleum Co. (ADR) 3,460,000
37,645 Texaco, Inc. 3,722,149
-------------
15,202,096
-------------
FINANCE--13.8%
BANKING--11.5%
100,000 Banc One Corp. 4,412,500
46,000 BankAmerica Corp. 5,232,500
43,288 Bankers Trust New York Corp. 3,928,386
41,000 J.P. Morgan & Co. Inc. 4,310,125
-------------
17,883,511
-------------
INSURANCE--2.3%
30,000 Marsh & McLennan Cos., Inc. 3,510,000
-------------
HEALTHCARE--7.5%
PHARMACEUTICALS--7.5%
70,294 American Home Products Corp. $ 4,498,816
29,359 Bristol-Myers Squibb Co. 3,831,350
35,288 Merck & Co., Inc. 3,246,496
-------------
11,576,662
-------------
INDUSTRIAL GOODS & SERVICES--0.7%
ELECTRICAL EQUIPMENT--0.7%
26,265 Cooper Industries, Inc. 1,162,226
-------------
MANUFACTURING--8.2%
AUTOMOTIVE PARTS--4.6%
55,000 Eaton Corp. 3,946,250
60,000 TRW, Inc. 3,142,500
-------------
7,088,750
-------------
CONSUMER GOODS & SERVICES--2.0%
60,000 Whirlpool Corp. 3,030,000
-------------
HOUSEHOLD PRODUCTS--1.6%
100,000 Rubbermaid, Inc. 2,387,500
-------------
MATERIALS AND PROCESSING--6.6%
PAPER & FOREST PRODUCTS--6.6%
42,200 Kimberly-Clark Corp. 4,473,200
50,000 Union Camp Corp. 2,412,500
60,000 Temple-Inland, Inc. 3,307,500
-------------
10,193,200
-------------
RETAILING--2.2%
DEPARTMENT STORES--2.2%
70,000 Penney (J.C.), Inc. 3,447,500
-------------
UTILITIES--21.0%
COMMUNICATIONS--6.6%
150,000 Frontier Corp. 3,318,750
73,519 GTE Corp. 3,437,013
24,702 NYNEX Corp. 1,272,153
63,000 U.S. West, Inc. 2,268,000
-------------
10,295,918
-------------
</TABLE>
==========================================================
See Notes to Financial Statements.
4
<PAGE> 5
PILOT EQUITY INCOME FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
==========================================================
<TABLE>
<CAPTION>
Market
Value
Shares (Note 2)
- --------------------------------------------------------------
<C> <S> <C>
ELECTRIC POWER--11.7%
115,000 Consolidated Edison Co. of New
York, Inc. $ 3,550,625
110,000 OGE Energy Corp. 4,633,750
179,660 PacifiCorp 3,705,488
141,154 Unicom Corp. 3,140,677
100,000 Western Resources, Inc. 3,025,000
-------------
18,055,540
-------------
NATURAL GAS AND WATER--2.7%
123,800 NICOR, Inc. 4,147,300
- --------------------------------------------------------------
TOTAL COMMON STOCKS (cost $100,139,969) 132,267,089
- --------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS--5.2%
ENERGY--2.6%
INTEGRATED OIL--2.6%
61,288 Ashland Inc., $3.125 Series,
12/31/49 3,983,720
-------------
HEALTHCARE--2.6%
MEDICAL SERVICES--2.6%
50,590 Aetna, Inc. 4,078,819
- --------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS 8,062,539
- --------------------------------------------------------------
CONVERTIBLE BONDS--4.1%
CONSUMER CYCLICAL--0.6%
BUILDING MATERIALS--0.6%
$1,000 Masco Corp., 5.25%, 2/15/12 $ 995,000
-------------
ENERGY--1.5%
INTEGRATED OIL--1.5%
2,000 Pennzoil Oil Co., 4.75%, 10/1/03 2,330,000
-------------
MANUFACTURING--2.0%
ELECTRICAL EQUIPMENT--2.0%
2,838 Cooper Industries, Inc., 7.05%,
1/1/15 3,093,420
- --------------------------------------------------------------
TOTAL CONVERTIBLE BONDS (cost $5,896,746) 6,418,420
- --------------------------------------------------------------
REPURCHASE AGREEMENTS--5.1%
7,867 Repurchase agreement with Lehman
dated 2/28/97, 5.17%, due 3/3/97
(See Footnote A) 7,867,000
- --------------------------------------------------------------
TOTAL INVESTMENTS--99.9% (cost $120,833,479) 154,615,048
OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% 172,976
- --------------------------------------------------------------
NET ASSETS--100.0% $ 154,788,026
- --------------------------------------------------------------
</TABLE>
ADR--American Depository Receipt.
Footnote A
Collateralized by $7,815,000 U.S. Treasury Note, 6.38%, due 3/31/01 with a
value of $8,029,020.
==========================================================
See Notes to Financial Statements.
5
<PAGE> 6
PILOT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
February 28, 1997 -- (Unaudited)
==========================================================
<TABLE>
<CAPTION>
Market
Value
Shares (Note 2)
- ----------------------------------------------------------
<C> <S> <C>
COMMON STOCKS--87.5%
CONSUMER CYCLICAL--9.6%
BUILDING -- MANUFACTURED HOUSING--1.9%
38,400 Champion Enterprises, Inc.* $ 744,000
30,400 NCI Building Systems, Inc.* 1,018,400
19,500 Oakwood Homes Corp. 385,125
-----------
2,147,525
-----------
BUILDING PRODUCTS--2.2%
34,000 Centex Corp. 578,000
37,700 TJ International, Inc. 763,425
43,800 Zurn Industries, Inc. 1,122,375
-----------
2,463,800
-----------
HOUSING & FURNISHING--3.7%
29,300 Bush Industries, Inc. 589,662
20,300 Ethan Allen Interiors, Inc. 931,262
51,700 Kaufman & Broad Home Corp. 730,262
92,900 O' Sullivan Industries Holdings,
Inc.* 998,675
23,300 Pulte Corp. 795,113
-----------
4,044,974
-----------
MEDIA--1.8%
41,125 Ha-Lo Industries, Inc.* 647,719
17,850 McClatchy Newspapers, Inc. 426,169
19,066 Pulitzer Publishing Co. 917,551
-----------
1,991,439
-----------
CONSUMER GOODS & STAPLES--3.0%
BEAUTY & HEALTH PRODUCTS--2.0%
39,600 Alberto Culver Co., Class B 1,128,600
58,200 NBTY, Inc.* 1,047,600
-----------
2,176,200
-----------
BEVERAGES--1.0%
27,800 Robert Mondavi Corp.* 1,139,800
-----------
ENERGY--5.4%
OIL & GAS EXPLORATION & PRODUCTION--5.4%
28,000 Cabot Oil & Gas Corp. 444,500
78,550 Comstock Resources, Inc.* 706,950
43,946 Forest Oil Corp.* 587,778
26,700 Giant Industries, Inc. 370,463
38,000 HS Resources, Inc.* $ 522,500
61,100 Parker Drilling Co.* 511,713
34,800 Reading & Bates Corp.* 843,900
14,400 Seacor Holdings, Inc.* 667,800
58,600 Texas Meridian Resources Corp.* 827,725
16,400 Vintage Petroleum, Inc. 494,050
-----------
5,977,379
-----------
FINANCE--16.5%
BANKING--5.2%
44,140 Brenton Banks, Inc. 1,224,885
54,600 City National Corp. 1,324,050
28,400 Deposit Guaranty Corp. 873,300
52,300 First Republic Bancorp, Inc. 1,215,975
24,400 ONBANCorp, Inc. 1,088,850
-----------
5,727,060
-----------
FINANCIAL SERVICES--2.9%
31,950 Aames Financial Corp. 962,494
67,700 Southwest Securities Group, Inc. 1,100,124
24,800 US Bancorp, Inc. 1,184,200
-----------
3,246,818
-----------
INSURANCE--4.0%
21,878 Delphi Financial Group* 743,852
17,600 Executive Risk, Inc. 847,000
22,000 First American Financial Corp. 902,000
20,840 Frontier Insurance Group, Inc. 901,330
11,837 Security Capital Corp.* 1,026,860
-----------
4,421,042
-----------
REAL ESTATE--2.5%
30,100 BRE Properties, Inc. 737,450
45,050 Capstead Mortgage Corp. 1,092,462
31,100 Resource Mortgage Capital Corp. 940,775
-----------
2,770,687
-----------
SAVINGS & LOANS--1.9%
25,300 Bay View Capital Corp. 1,416,800
18,600 Commercial Federal Corp. 667,275
-----------
2,084,075
-----------
</TABLE>
==========================================================
See Notes to Financial Statements.
6
<PAGE> 7
PILOT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
==========================================================
<TABLE>
<CAPTION>
Market
Value
Shares (Note 2)
- ----------------------------------------------------------
<C> <S> <C>
HEALTH CARE--3.8%
BIOTECHNOLOGY--1.9%
33,150 Bio-Rad Laboratories, Inc.* $ 874,331
19,800 Human Genome Sciences, Inc.* 752,400
27,700 Vical, Inc.* 484,750
-----------
2,111,481
-----------
CHEMICALS--0.8%
17,490 Fuller (H. B.) Co. 852,638
-----------
MEDICAL SUPPLIES & SERVICES--0.6%
24,000 Acuson Corp.* 666,000
-----------
PHARMACEUTICALS--0.5%
51,100 Chronimed, Inc.* 594,038
-----------
INDUSTRIAL GOODS & SERVICES--10.1%
AEROSPACE & DEFENSE--2.1%
62,900 GenCorp, Inc. 1,187,237
30,100 Logicon, Inc. 1,136,274
-----------
2,323,511
-----------
CHEMICALS--1.6%
56,700 AMCOL International Corp. 1,070,213
36,000 Crompton & Knowles Corp. 684,000
-----------
1,754,213
-----------
COMMERCIAL SERVICES--0.5%
49,200 Calgon Carbon Corp. 553,500
-----------
ELECTRICAL & ELECTRONIC--4.7%
10,400 Coherent, Inc.* 490,100
47,200 Core Industries, Inc. 749,300
28,000 Dionex Corp.* 1,260,000
37,400 Electro Scientific Industries,
Inc.* 1,009,800
69,300 MagneTek, Inc.* 1,152,112
30,360 Wyman-Gordon Company* 542,685
-----------
5,203,997
-----------
PAPER PRODUCTS--1.2%
18,800 Chesapeake Corp. 556,950
46,100 Paragon Trade Brands, Inc.* 841,325
-----------
1,398,275
-----------
LEISURE--2.2%
CABLE TV--0.6%
36,725 International Family
Entertainment, Inc.* 702,366
-----------
CASINO SERVICES--1.0%
50,800 Sodak Gaming, Inc.* $ 730,250
21,800 Rio Hotel & Casino* 340,625
-----------
1,070,875
-----------
FIREARMS & AMMUNITION--0.6%
36,000 Sturm, Ruger & Co. 625,500
-----------
MANUFACTURING--12.8%
AUTOMATION/ROBOTICS--1.6%
39,200 Esterline Technologies Corp.* 989,800
24,800 DT Industries, Inc. 731,600
-----------
1,721,400
-----------
CONSUMER PRODUCTS--2.3%
59,800 Foamex International, Inc.* 1,113,775
56,900 Fossil, Inc.* 739,700
33,500 Russ Berrie & Co., Inc. 724,438
-----------
2,577,913
-----------
MACHINETOOLS & RELATED PRODUCTS--0.5%
15,400 Applied Power, Inc. 602,525
-----------
MACHINERY/GENERAL INDUSTRIAL--1.2%
50,400 Gardner Denver Machinery, Inc.* 1,297,800
-----------
METAL PROCESSORS & FABRICATION--0.8%
19,300 Kaydon Corp. 834,725
-----------
STEEL--2.4%
114,700 National Steel Corp.* 960,613
27,612 Rouge Steel Co. 445,244
43,670 Steel Technologies, Inc. 474,911
103,000 WHX Corp.* 836,875
-----------
2,717,643
-----------
TEXTILE PRODUCTS--4.0%
52,678 Culp, Inc. 948,204
109,200 Delta Woodside Industries* 737,100
46,300 Galey & Lord, Inc.* 844,975
29,400 Quiksilver, Inc. 735,000
114,800 Worldtex, Inc.* 1,119,300
-----------
4,384,579
-----------
</TABLE>
==========================================================
See Notes to Financial Statements.
7
<PAGE> 8
PILOT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
==========================================================
<TABLE>
<CAPTION>
Market
Value
Shares (Note 2)
- ----------------------------------------------------------
<C> <S> <C>
RETAILING--8.4%
APPAREL/SHOE--3.2%
53,000 Goody's Family Clothing, Inc.* $ 960,625
46,650 Pacific Sunwear of California* 1,306,200
27,300 Ross Stores, Inc. 1,310,400
-----------
3,577,225
-----------
DEPARTMENT STORES--0.7%
27,300 Nieman Marcus Group, Inc. 733,688
-----------
DISCOUNT STORES--0.7%
47,300 Shopko Stores, Inc. 739,063
-----------
FOOD PRODUCTS & SERVICES--1.5%
18,300 Quality Food Centers, Inc. 670,238
30,000 Riser Foods, Inc.* 937,500
-----------
1,607,738
-----------
SPECIALTY STORES--0.7%
49,300 Fabri-Centers of America, Inc. 807,288
-----------
WAREHOUSE--1.0%
24,270 Eagle Hardware & Garden, Inc.* 473,265
23,700 Waban, Inc.* 678,413
-----------
1,151,678
-----------
WHOLESALE COMPANIES--0.6%
25,000 Inacom Corporation* 650,000
-----------
SERVICES--2.6%
AIRLINES--2.1%
22,100 Air Express International Corp. 685,100
26,400 Airborne Freight Corp. 722,700
47,900 US Airways Group* 946,025
-----------
2,353,825
-----------
RESTAURANTS--0.5%
21,100 Sbarro, Inc. 548,600
-----------
TECHNOLOGY--7.2%
COMPUTER HARDWARE--2.7%
25,300 Jabil Circuit, Inc.,* 838,062
34,200 Komag, Inc.* 1,026,000
53,700 Xircom, Inc.* 1,067,288
-----------
2,931,350
-----------
COMPUTER SOFTWARE--1.5%
31,800 Exabyte Corp.* $ 347,812
26,000 Software Spectrum, Inc.* 591,500
52,400 Viewlogic System, Inc.* 772,899
-----------
1,712,211
-----------
ELECTRONICS COMPONENTS/SEMICONDUCTORS--1.1%
29,300 Cyrix Corp.* 816,737
15,500 Watkins-Johnson Company 391,375
-----------
1,208,112
-----------
OFFICE EQUIPMENT & SERVICES--0.5%
25,300 American Business Products 591,388
-----------
INSTRUMENTATION--0.7%
55,000 Molecular Dynamics Inc.* 749,375
-----------
TELECOMMUNICATION EQUIPMENT--0.7%
42,800 Proxim, Inc.* 813,200
-----------
UTILITIES--5.9%
ELECTRIC UTILITY--4.4%
12,100 Calenergy, Inc.* 403,838
33,400 Central Hudson Gas & Electric 1,102,200
26,600 Commonwealth Energy Systems Cos. 595,175
30,100 Northwestern Public Service Co. 1,128,750
37,900 TNP Enterprises, Inc. 990,137
42,900 Tucson Electric Power Co* 643,499
-----------
4,863,599
-----------
NATURAL GAS--1.5%
15,100 Connecticut Natural Gas Corp. 345,412
17,200 Kinder Morgan Energy Partners, 692,300
32,570 Southeastern Michigan Gas
Enterprises, Inc. 671,756
-----------
1,709,468
TOTAL COMMON STOCKS (cost $99,314,681) 96,931,586
</TABLE>
==========================================================
See Notes to Financial Statements.
8
<PAGE> 9
PILOT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
==========================================================
<TABLE>
<CAPTION>
Principal
Amount Value
(000) (Note 2)
- -------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY BILLS--
600 U.S. Treasury Bills 3/13/97 $ 599,208
- -------------------------------------------------------------
TOTAL U.S. TREASURY BILLS 599,208
- -------------------------------------------------------------
REPURCHASE AGREEMENTS--
13,433 Repurchase agreement with Lehman
dated 2/28/97, 5.17%, due 3/3/97
(See Footnote A) 13,433,000
- -------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 13,433,000
- -------------------------------------------------------------
TOTAL INVESTMENTS --100.2% (cost $102,346,717) 110,963,794
LIABILITIES IN EXCESS OF OTHER ASSETS--(0.2%) (210,456)
- -------------------------------------------------------------
NET ASSETS--100.0% $110,753,338
- -------------------------------------------------------------
</TABLE>
Footnote A
Collateralized by $13,340,000 U.S. Treasury Note, 6.38%, due 3/31/01 with a
value of $13,705,326.
* Non-income producing security.
<TABLE>
<CAPTION>
Number of
Contracts Settlement Unrealized
Type Long(a) Month Gain or (Loss)
- ----------------------------------------------------------------
<S> <C> <C> <C>
FUTURES CONTRACTS
S & P Midcap Index 32 Mar. 97 $ 53,480
S & P 500 March
1997 25 Mar. 97 414,425
- ----------------------------------------------------------------
$467,905
- ----------------------------------------------------------------
</TABLE>
(a) Each S&P MIDCAP and S&P 500 Contract. Contract represents $50,000 in
notional per value. The total net notional amount and net market value for the
futures contracts shown above are $4,135,320 and $9,465,575, respectively. The
determination of notional amounts does not consider market risk factors and
therefore notional amounts as presented here are indicative only of volume of
activity and not a measure of market risk.
==========================================================
See Notes to Financial Statements.
9
<PAGE> 10
PILOT U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
February 28, 1997 -- (Unaudited)
==========================================================
<TABLE>
<CAPTION>
Principal
Amount Maturity Value
(000) Rate Date (Note 2)
<C> <S> <C> <C> <C>
- ---------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--97.2%
U.S TREASURY BONDS--19.1%
$27,500 U.S. Treasury Bond 7.50% 11/15/16 $ 29,197,300
------------
29,197,300
------------
U.S. TREASURY NOTES--78.1%
10,500 U.S. Treasury Note 6.50 4/30/97 10,518,060
28,500 U.S. Treasury Note 5.64 8/31/97 28,553,295
24,000 U.S. Treasury Note 5.50 11/15/98 23,793,840
17,000 U.S. Treasury Note 5.88 1/31/99 16,936,250
11,000 U.S. Treasury Note 5.63 11/30/00 10,743,920
18,000 U.S. Treasury Note 5.75 8/15/03 17,316,540
11,500 U.S. Treasury Note 6.50 8/15/05 11,442,500
------------
119,304,405
TOTAL U.S. GOVERNMENT OBLIGATIONS
(cost $148,277,861) 148,501,705
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000) (Note 2)
<C> <S> <C>
- ---------------------------------------------------------------
REPURCHASE AGREEMENT--2.3%
$ 3,559 Repurchase agreement with Lehman dated
2/28/97, 5.17%, due 3/3/97 (See
Footnote A) $ 3,559,000
------------
3,559,000
TOTAL INVESTMENTS--99.5% (cost $151,836,861) 152,060,705
OTHER ASSETS IN EXCESS OF LIABILITIES--0.5% 773,402
NET ASSETS--100.0% $152,834,107
----------------------------------------------------------
</TABLE>
Footnote A
Collateralized by $3,535,000 U.S. Treasury Note, 6.38%, due 3/31/01 with a
value of $3,631,809.
==========================================================
See Notes to Financial Statements.
10
<PAGE> 11
PILOT INTERMEDIATE U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
February 28, 1997 -- (Unaudited)
==========================================================
<TABLE>
<CAPTION>
Principal
Amount Maturity Value
(000) Rate Date (Note 2)
<C> <S> <C> <C> <C>
- -----------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--94.7%
UNITED STATES TREASURY NOTES--94.7%
$12,000 U.S. Treasury Note 6.50% 8/15/97 12,054,360
11,000 U.S. Treasury Note 8.13 2/15/98 11,235,510
35,000 U.S. Treasury Note 6.13 5/15/98 35,103,950
20,000 U.S. Treasury Note 6.75 6/30/99 20,256,200
58,000 U.S. Treasury Note 7.13 2/29/00 59,368,220
25,000 U.S. Treasury Note 5.63 11/30/00 24,418,000
8,500 U.S. Treasury Note 6.50 8/31/01 8,533,235
33,000 U.S. Treasury Note 6.25 2/15/03 32,690,460
14,000 U.S. Treasury Note 7.25 5/15/04 14,573,160
11,000 U.S. Treasury Note 7.88 11/15/04 11,868,010
- -----------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(cost $231,367,471) 230,101,105
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000) (Note 2)
<C> <S> <C>
- -----------------------------------------------------------------
REPURCHASE AGREEMENT--5.0%
$12,106 Repurchase agreement with Lehman dated
2/28/97, 5.17%, due 3/3/97 (See
Footnote A) $ 12,106,000
TOTAL INVESTMENTS--99.7% (cost $243,473,471) 242,207,105
OTHER ASSETS IN EXCESS OF LIABILITIES--0.3% 820,095
NET ASSETS--100.0% $243,027,200
- -----------------------------------------------------------------
</TABLE>
Footnote A
Collateralized by $12,020,000 U.S. Treasury Note, 6.38%, due 3/31/01 with a
value of $12,349,178.
==========================================================
See Notes to Financial Statements.
11
<PAGE> 12
PILOT MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Ratings Maturity Value
(000) (Moody's/S&P) Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS--96.5%
ARIZONA--1.7%
$ 400 Pima County University School District, Series D,
G.O. (FGIC Insured) Aaa/AAA 6.10% 7/1/11 $ 423,000
2,000 Salt River Project, Agriculture Improvement &
Power District Electric Systems Revenue, Series
C Aa/AA 6.25 1/1/19 2,087,500
900 Tucson, Series 1984-G, G.O. (FGIC Insured) Aaa/AAA 6.25 7/1/16 957,375
-----------
3,467,875
-----------
ARKANSAS--0.6%
1,300 State Development Financing Authority Waste Water
Systems Revenue, Series A NR/AA 5.70 12/1/12 1,311,375
-----------
CALIFORNIA--7.2%
400 California State University Revenue (FGIC Insured) Aaa/AAA 6.00 11/1/10 422,000
400 California State, G.O. A1/A+ 9.10 11/1/01 480,000
200 California State, G.O. A1/A+ 9.00 6/1/02 241,250
1,000 California State, G.O. A1/A+ 7.10 9/1/02 1,126,250
1,000 California State, G.O. A1/A+ 7.00 8/1/04 1,145,000
200 California State, G.O. A1/A+ 7.20 4/1/05 232,250
700 California State, G.O. A1/A+ 7.00 8/1/05 806,750
400 California State, G.O. A1/A+ 7.10 3/1/07 468,000
500 California State, Series AM, G.O. A1/A+ 9.00 10/1/02 609,375
200 California State, Series AM, G.O. A1/A+ 9.00 10/1/03 249,250
200 California State, Series AN, G.O. A1/A+ 9.00 4/1/05 255,250
200 California State, Series AQ, G.O. A1/A+ 9.10 10/1/02 244,750
500 Long Beach Water Revenue Aa/AA 6.00 5/1/14 515,625
500 Los Angeles County, Metropolitan Transportation
Authority Sales Tax Revenue, Proposition
A -- Series A (MBIA Insured) Aaa/AAA 5.63 7/1/18 497,500
400 Los Angeles County, Sanitation Districts Financing
Authority Revenue Capital Project, Series A Aa/AA 5.38 10/1/13 400,000
1,000 Los Angeles, Wastewater Systems Revenue, Series C,
(MBIA Insured) Aaa/AAA 5.50 6/1/14 993,750
200 Los Angeles, Water & Power Waterworks Revenue Aa/AA 7.70 5/15/07 211,500
2,000 Metropolitan Water District Southern California
Waterworks Revenue, Series A (MBIA Insured) Aaa/AAA 5.75 7/1/15 2,030,000
500 San Francisco Bay Area Rapid Transit District
Sales Tax Revenue (AMBAC Insured) Aaa/AAA 6.75 7/1/11 580,000
2,595 San Francisco City & County Apartment Commission
International Apartment Revenue, Series 9B (FGIC
Insured) Aaa/AAA 5.25 5/1/13 2,549,588
500 University Revenues, Multiple Purpose Projects,
Series C, (AMBAC Insured) Aaa/AAA 5.25 9/1/16 478,750
-----------
14,536,838
-----------
COLORADO--1.4%
200 Colorado Springs, Utilities Revenue, Series A Aa/AA 6.50 11/15/15 217,000
2,500 Douglas County, Sales & Use Tax Revenue Aaa/AAA 5.50 10/15/11 2,546,875
-----------
2,763,875
-----------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
12
<PAGE> 13
PILOT MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Ratings Maturity Value
(000) (Moody's/S&P) Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
CONNECTICUT -- 0.5%
$1,000 Connecticut State, G.O., Series A Aa3/AA- 5.30% 5/15/10 $ 1,003,750
-----------
DISTRICT OF COLUMBIA -- 2.0%
3,905 District of Columbia Revenue, Howard University Aaa/AAA 5.75 10/1/12 3,958,694
-----------
FLORIDA--5.1%
2,500 Broward County School District, G.O. 5.60 2/15/07 2,596,875
500 Florida State Board of Education Cap Outlay, G.O. Aa2/AA 6.13 6/1/10 528,750
1,000 Florida State Board of Education Cap Outlay, G.O.,
Series A Aa2/AA 5.50 6/1/14 1,008,750
200 Florida State Board of Education Cap Outlay, G.O.,
Series A Aa2/AA 7.25 6/1/23 219,000
700 Florida State Board of Education Cap Outlay, G.O.,
Series D Aa2/AA 5.00 6/1/15 662,375
300 Florida State Board of Education, Public
Education, G.O., Series B 1 AAA/AAA 7.87 6/1/19 320,625
600 Florida State Jacksonville Transportation
Authority AAA/AAA 9.00 1/1/04 637,872
400 Jacksonville Electric Authority Revenue, St. Johns
River Power Park Systems, Series 10 Aa1/AA 5.50 10/1/13 402,000
2,000 Jacksonville Electric Authority Revenue, St. Johns
River Power Park Systems, Series 11 Aa1/AA 5.38 10/1/15 1,967,500
700 Orlando Utilities Common Water & Electric Revenue,
Series A Aa/AA- 5.50 10/1/12 702,625
1,200 Orlando Utilities Common Water & Electric Revenue,
Series D Aa/AA- 6.75 10/1/17 1,398,000
-----------
10,444,372
-----------
GEORGIA--2.5%
1,100 Atlanta, G.O. Aa/AA 5.60 12/1/11 1,138,500
800 De Kalb County, G.O. Aa1/AA+ 5.25 1/1/20 774,000
200 Fulton County Water & Sewer Revenue, (FGIC
Insured) Aaa/AAA 6.38 1/1/14 222,750
400 Henry County School District, G.O., (MBIA Insured) Aaa/AAA 6.00 8/1/14 423,000
1,000 Municipal Electric Authority Power Revenue, Series
B A/A 6.25 1/1/12 1,077,500
300 Municipal Electric Authority Power Revenue, Series
V A/A 6.50 1/1/12 330,750
1,000 Municipal Electric Authority Power Revenue, Series
V A/A 6.60 1/1/18 1,117,500
-----------
5,084,000
-----------
HAWAII -- 0.1%
200 Hawaii State, Series BW, G.O. Aa/AA 6.25 3/1/12 220,500
-----------
ILLINOIS--7.6%
600 Chicago Metro Water, Capital Improvement, G.O. Aa/AA 5.50 12/1/12 608,250
2,000 Chicago Park District Aaa/AAA 5.50 1/1/16 1,955,000
400 Chicago Park District, Capital Improvement, G.O.
(FGIC Insured) Aaa/AAA 6.05 1/1/13 411,500
400 Chicago, Series 1993, G.O. (FGIC Insured) Aaa/AAA 5.38 1/1/13 392,500
1,000 Cook County, G.O. Aaa/AAA 5.80 11/1/16 1,000,000
2,000 Cook County, G.O. Aaa/AAA 5.90 11/15/16 2,050,000
600 Du Page County, Jail Project, G.O. Aaa/AAA 5.50 1/1/13 600,000
600 Du Page County, Jail Project, G.O. Aaa/AAA 5.60 1/1/21 610,500
600 Du Page Water Commission, Water Revenue Aa1/AA 5.25 5/1/14 572,250
200 Illinois State, G.O. Aa3/AA- 9.50 11/1/03 209,446
400 Illinois State, G.O. NR/AA- 8.00 10/1/04 417,580
2,340 Illinois State, G.O. Aa3/AA- 5.88 6/1/11 2,407,275
2,000 Illinois State, G.O. Aaa/AAA 6.00 2/1/16 2,082,500
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
13
<PAGE> 14
PILOT MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Ratings Maturity Value
(000) (Moody's/S&P) Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
ILLINOIS (continued)
$ 800 Illinois State, G.O. Aa3/AA- 5.50% 8/1/18 $ 788,000
600 Illinois State, G.O. Aa3/AA- 5.80 4/1/19 605,250
700 Illinois State Sales Tax Revenue, Series S Aa3/AAA 5.25 6/15/18 654,500
-----------
15,364,551
-----------
INDIANA -- 0.5%
1,000 Indiana Health Facilities Financing Authority,
Hospital Revenue, Clarian Health Partners, Inc.,
Series A Aa3/AA 5.50 2/15/16 963,750
-----------
KANSAS -- 1.4%
700 Kansas State Department Transportation Highway
Revenue Aa/AA 5.38 3/1/13 693,000
2,000 Kansas State Department Transportation Highway
Revenue, Series A Aa/AA 6.00 9/1/07 2,150,000
-----------
2,843,000
-----------
KENTUCKY -- 0.5%
1,000 Kentucky State Turnpike Authority Economic
Development Revenue, Revitalization Projects Aaa/AAA 5.63 7/1/15 1,011,250
-----------
LOUISIANA -- 0.2%
400 Louisiana State, Series B, G.O. AAA/A- 8.00 5/1/03 410,680
-----------
MAINE -- 0.4%
700 Maine State Turnpike Authority, Turnpike Revenue
(MBIA Insured) Aaa/AAA 6.00 7/1/14 729,750
-----------
MASSACHUSETTS--4,4%
3,675 Massachusetts Bay Transportation Authority,
General Transportation Systems, Series A (MBIA
Insured) A1/A+ 5.75 3/1/18 3,711,750
500 Massachusetts Water Reserve Authority, Series A,
Revenue Bonds (MBIA Insured) Aaa/AAA 5.90 8/1/16 511,250
2,500 Massachusetts, Series A, G.O. (MBIA Insured) Aaa/AAA 5.75 2/1/13 2,565,625
2,000 Massachusetts, Series B, G.O. Aaa/AAA 5.50 6/1/10 2,040,000
-----------
8,828,625
-----------
MICHIGAN--5.8%
1,750 Byron Center Public Schools, G.O. (MBIA Insured) Aaa/AAA 5.97 5/1/15 1,811,250
1,170 Cadillac Area Public Schools Aaa/AAA 5.38 5/1/11 1,168,538
1,400 Ferndale School District, G.O. Aaa/AAA 5.38 5/1/16 1,377,250
1,010 Grand Rapids Community College, G.O. Aaa/AAA 5.45 5/1/12 1,013,788
300 Hudsonville Public Schools, Series B, G.O. (FGIC
Insured) Aaa/AAA 6.00 5/1/14 313,875
1,250 Kalamazoo City School District, G.O. Aaa/AAA 5.65 5/1/14 1,278,125
1,000 Lakeshore Public Schools, G.O. Aaa/AAA 5.75 5/1/15 1,015,000
1,000 Michigan State Environmental Protection Project,
G.O., Aa2/AA 6.25 11/1/12 1,107,500
1,000 Michigan State Trunk Line, Revenue, Series A (FGIC
Insured) Aaa/AAA 5.63 11/15/14 1,006,250
1,700 Oxford Community School District, G.O. (FGIC
Insured) Aaa/AAA 5.30 5/1/11 1,687,250
-----------
11,778,825
-----------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
14
<PAGE> 15
PILOT MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Ratings Maturity Value
(000) (Moody's/S&P) Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MISSOURI--14.4%
$1,100 Environmental Improvement & Energy Resources
Authority, Environmental Improvement Revenue,
Union Electric Co. (AMBAC -- TCRS Insured) Aaa/AAA 7.40% 5/1/20 $ 1,197,625
200 Environmental Improvement & Energy Resources
Authority, Environmental Improvement Revenue,
Union Electric Co. Project, Series A A1/A+ 7.40 5/1/20 217,750
500 Environmental Improvement & Energy Resources
Authority, Water Poll Ct. Revolving Fund,
Springfield Project, Series A Aa2/NR 7.00 10/1/10 545,625
400 Environmental Improvement & Energy Resources
Authority, Water Poll Ct. Revolving
Fund -- Multiple, Series A Aa2/NR 6.45 7/1/08 438,000
200 Environmental Improvement & Energy Resources
Authority, Water Poll Ct. Revolving Fund
Project, Series A Aa2/NR 6.05 7/1/15 206,250
300 Environmental Improvement & Energy Resources
Authority, Water Poll Ct. Revolving
Fund -- Multiple, Series A Aa2/NR 6.88 6/1/14 326,625
1,000 Environmental Improvement & Energy Resources
Authority, Water Poll Ct. Revolving Fund, Kansas
City, Series A Aa1/NR 5.75 1/1/16 1,021,250
400 Environmental Improvement & Energy Resources
Authority, Water Poll Ct. Revolving
Fund -- Multiple, Series A Aa2/NR 6.55 7/1/14 430,500
700 Health & Educational Facilities Authority St.
Louis University Aaa/AAA 5.00 10/1/10 685,125
200 Health & Educational Facilities Authority Revenue,
St. Louis University Aaa/AAA 6.50 8/1/16 215,750
400 Health & Educational Facilities Authority Revenue,
St. Louis University, Series A Aaa/AAA 7.75 6/1/07 411,304
200 Health & Educational Facilities Authority, Health
Facilities Revenue, SSM Health Care Projects,
Series B (MBIA Insured) Aaa/AAA 7.00 6/1/15 215,000
500 Health & Educational Facilities Authority, Health
Facilities Revenue, Deaconess Health Services
Corp., (FGIC Insured) Aaa/AAA 6.75 4/1/07 510,915
200 Health & Educational Facilities Authority, Health
Facilities Revenue, St. Lukes Episcopal Hospital
(FGIC Insured) Aaa/AAA 6.80 12/1/03 214,250
900 Health & Educational Facilities Authority, Health
Facilities Revenue, St. Lukes Episcopal -
Presbyterian (FGIC Insured) Aaa/AAA 6.88 12/1/07 922,563
500 Health & Educational Facilities Authority, Health
Facilities Revenue, Deaconess Health Services
Corp., (FGIC Insured) Aaa/AAA 6.75 4/1/15 510,640
900 Health & Educational Facilities Authority, Health
Facilities Revenue, SSM Health Care Project (BIG
Insured) Aaa/AAA 7.75 6/1/16 961,875
1,000 Health & Educational Facilities Authority, Health
Facilities Revenue, St. Louis University (AMBAC
Insured) Aaa/AAA 5.13 10/1/16 952,500
1,500 Health & Educational Facilities Authority, Health
Facilities Revenue, Barnes Hospital NR/AAA 7.13 12/15/09 1,678,125
400 Health & Educational Facilities Authority, Health
Facilities Revenue, Children's Mercy Hospital
Project (MBIA Insured) Aaa/AAA 5.63 5/15/12 403,000
500 Health & Educational Facilities Authority, Health
Facilities Revenue, Sisters of Mercy Health,
Series A Aa2/VMIG1/AA 6.25 6/1/15 526,250
1,000 Independence School District, G.O. A3/NR 6.25 3/1/11 1,090,000
200 Jackson County Industrial Development Authority
Health Care Corp. Revenue, St. Joseph Health
Center Project (BIG Insured) Aaa/AAA 8.25 7/1/07 207,050
300 Jefferson City School District, G.O., Series A Aa/NR 6.70 3/1/11 343,125
400 Kansas City Apartment Revenue, Series B (MBIA
Insured) Aaa/AAA 7.20 9/1/08 438,000
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
15
<PAGE> 16
PILOT MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Ratings Maturity Value
(000) (Moody's/S&P) Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MISSOURI (continued)
$ 500 Kansas City Apartment Revenue, Series B (MBIA
Insured) Aaa/AAA 7.20% 9/1/09 $ 547,500
400 Kansas City, G.O. Aa3/AA 5.75 10/1/07 415,500
400 Kansas City, G.O. Aa3/AA 5.75 10/1/11 410,000
1,000 Kansas City, Various Purpose, G.O. Aa3/AA 6.00 3/1/08 1,036,250
400 Mehlville School District No. R9, G.O., (MBIA
Insured) Aaa/AAA 6.00 2/15/13 419,500
1,745 Missouri State Housing Development Commission
Mortgage Revenue, Single Family -- Homeowner,
Series A (GNMA/FHA/VA/RECD Insured) NR/AAA 6.10 9/1/14 1,779,900
300 Missouri State Office Buildings Aa/AA 6.40 12/1/10 318,375
1,625 Missouri State Water Pollution Control, Series A,
G.O. Aaa/AAA 5.60 4/1/15 1,655,469
400 Ritenour Cons. School District, Series A, G.O.,
(FGIC Insured) Aaa/AAA 6.00 2/1/10 415,000
400 Rolla School District No. 31, G.O. A/NR 6.38 3/1/14 425,500
400 Springfield School District No. R-12, Series A,
G.O. Aaa/AAA 5.25 3/1/11 393,500
800 Springfield Waterworks Revenue, Series A Aa/A+ 5.50 5/1/19 792,000
200 St. Louis County, Parkway School District, Series
A, G.O. Aa3/NR 6.00 7/1/10 210,000
500 St. Louis County, Pattonville R-3 School District,
G.O. (FGIC Insured) Aaa/AAA 6.25 2/1/10 540,625
500 St. Louis County, Refunding & Improvement, Series
B, G.O. Aa1/NR 5.40 2/1/10 503,750
200 St. Louis Industrial Development Authority, PCR,
Anheuser-Busch Co. Project A1/AA- 6.65 5/1/16 225,500
500 University City School District, G.O., (MBIA
Insured) Aaa/AAA 6.20 2/15/14 531,250
2,000 University of Missouri Health Facilities Revenue,
Health Systems, Series A Aaa/AAA 5.50 11/1/16 1,972,500
800 University of Missouri, Revenue, Hospital &
Clinics Improvement Aaa/AAA 7.38 11/1/10 899,000
500 University of Missouri, Revenue, Ref. & Impt.-
Systems Facs. Aa2/AA+ 5.38 11/1/13 496,250
400 University of Missouri, Series A (AMBAC Insured) Aaa/AAA 6.50 11/1/11 437,500
200 University of Missouri, Series B (AMBAC Insured) Aaa/AAA 6.50 11/1/11 218,750
-----------
29,312,716
-----------
NEBRASKA -- 0.8%
800 Public Power District Revenue, Power Supply
Systems A1/A+ 6.13 1/1/15 822,000
400 Public Power District Revenue, Power Supply
Systems A1/A+ 5.75 1/1/20 400,500
400 Omaha Public Power District Electric Revenue,
Series B Aa2/NR 6.20 2/1/17 432,500
-----------
1,655,000
-----------
NEVADA -- 1.6%
1,400 Clark County -- Ref. & Impt. Transportation,
Series A, G.O., (MBIA Insured) Aaa/AAA 6.00 6/1/12 1,471,750
1,000 Las Vegas -- Clark County Library District, G.O.
(FGIC Insured) Aaa/AAA 6.00 2/1/12 1,045,000
800 Nevada State, Municipal Bond Bank Project No. 42,
G.O. Aa/AA 5.88 9/1/12 830,000
-----------
3,346,750
-----------
NEW JERSEY -- 0.3%
500 New Jersey State, Series B, G.O. Aa1/AA+ 6.25 1/15/05 552,500
-----------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
16
<PAGE> 17
PILOT MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Ratings Maturity Value
(000) (Moody's/S&P) Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
NEW MEXICO -- 0.3%
$ 400 New Mexico State University Revenue, Refunding &
Improvement A1/AA 5.75% 4/1/16 $ 408,000
200 Santa Fe Revenue (AMBAC Insured) Aaa/AAA 6.25 6/1/15 219,500
-----------
627,500
-----------
NEW YORK -- 3.5%
2,000 Municipal Assistance Corp. for New York, Series E Aa2/AA- 5.20 7/1/08 2,022,500
2,000 New York Energy Authority, Revenue A1/A+ 6.10 8/15/20 2,055,000
3,000 New York State Assistance Corp. Revenue, Series A A3/A 6.00 4/1/16 3,082,500
-----------
7,160,000
-----------
NORTH CAROLINA -- 1.6%
2,000 Eastern Municipal Power, Series A (FGIC Insured) Aaa/AAA 6.20 1/1/12 2,097,500
1,000 Municipal Power Agency, Catawba Electric Revenue
(MBIA Insured) Aaa/AAA 6.00 1/1/10 1,056,250
-----------
3,153,750
-----------
OHIO -- 0.4%
700 Lakota Local School District, G.O. (AMBAC Insured) Aaa/AAA 6.25 12/1/14 748,125
-----------
OREGON--2,7%
2,000 Chemeketa Community College District, G.O. (FGIC
Insured) Aaa/AAA 5.80 6/1/12 2,065,000
200 Oregon State, G.O. Aa/AA 8.75 10/1/97 205,680
200 Oregon State, G.O. Aa/AA 11.00 12/1/99 235,750
2,900 Portland Sewer Systems Revenue, Series A A1/A+ 6.25 6/1/15 3,055,875
-----------
5,562,305
-----------
PENNSYLVANIA -- 0.2%
500 Pennsylvania State Higher Education, Revenue,
Series J (AMBAC Insured) Aaa/AAA 5.63 6/15/19 497,500
-----------
RHODE ISLAND -- 1.4%
2,845 State of Rhode Island, G.O. Series A (MBIA
Insured) Aaa/AAA 5.60 8/1/10 2,916,125
-----------
SOUTH CAROLINA -- 0.6%
140 Piedmont Municipal Power Agency, Electric Revenue,
Series A (FGIC Insured) AAA/AAA 6.50 1/1/16 160,825
860 Piedmont Municipal Power Agency, Electric Revenue,
Series A (FGIC Insured) Aaa/AAA 6.50 1/1/16 964,275
-----------
1,125,100
-----------
TENNESSEE -- 0.5%
1,000 Memphis, G.O. Aa/AA 5.20 11/1/10 996,250
-----------
TEXAS--9.5%
1,000 Austin Utility Systems Revenue NR/AAA 7.30 5/15/17 1,121,250
500 Austin Utility Systems Revenue, Combined, Series A Aaa/AAA 9.50 5/15/15 576,250
400 Austin Utility Systems Revenue, Combined, (BIG
Insured) Aaa/AAA 8.63 11/15/12 474,500
700 Austin Utility Systems Revenue, Series A Aaa/AAA 8.00 11/15/16 793,625
385 Austin Water Sewer & Electric Refunding Revenue A/NR 14.00 11/15/01 486,063
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
17
<PAGE> 18
PILOT MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Ratings Maturity Value
(000) (Moody's/S&P) Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
TEXAS (continued)
$ 10 Austin Water Sewer & Electric Refunding Revenue A/NR 14.00% 11/15/01 $ 12,425
3,610 Bexar Metropolitan Water District Waterworks,
Revenue (MBIA Insured) Aaa/AAA 6.00 5/1/15 3,727,325
2,575 Carrollton Farmers Branch School District, G.O.
(PSFG Insured) Aaa/AAA 5.70 2/15/17 2,603,969
400 Cypress-Fairbanks Indpt. School District, G.O.
(PSFG Insured) Aaa/AAA 5.75 2/1/08 413,000
1,275 Cypress-Fairbanks Indpt. School District, G.O.
(PSFG Insured) Aaa/AAA 5.75 2/15/16 1,295,719
1,000 Dallas School District, G.O. (PSFG Insured) Aaa/AAA 5.70 8/15/12 1,023,750
1,075 Denton Utility System, Revenue Aaa/AAA 5.70 12/1/10 1,100,531
700 Harris County Toll Road -- Sub Lien Revenue, G.O. Aa3/AA 6.75 8/1/14 764,750
200 Harris County, G.O. #Aaa/NR 7.80 1/1/03 232,250
500 Houston Water Systems Revenue, Prior Lien Aaa/AAA 7.40 12/1/17 523,615
1,000 San Antonio Electric & Gas, Revenue (MBIA Insured) Aaa/AAA 5.38 2/1/16 975,000
2,000 San Antonio Electric & Gas, Revenue (MBIA Insured) Aaa/AAA 5.38 2/1/18 1,947,500
1,100 San Antonio Water Revenue (MBIA Insured) Aaa/AAA 6.50 5/15/10 1,192,125
-----------
19,263,646
-----------
UTAH--2.2%
2,000 Intermountain Power Agency, Power Supply Revenue,
Series A A1/A+ 5.00 7/1/16 1,847,500
800 Intermountain Power Agency, Power Supply Revenue,
Series A A1/A+ 5.50 7/1/20 769,000
500 Intermountain Power Agency, Power Supply Revenue,
Series B A1/A+ 5.25 7/1/17 473,125
1,300 Salt Lake City Water & Sewer, Revenue (AMBAC
Insured) Aaa/AAA 6.10 2/1/14 1,350,375
-----------
4,440,000
-----------
WASHINGTON--12.6%
2,480 Clark County Sewer, Revenue Aaa/AAA 5.80 12/1/11 2,560,600
1,035 King County Library Systems, G.O. Aa/AA- 6.15 12/1/10 1,111,331
2,000 King County School District #415, G.O. Aaa/AAA 5.80 6/1/13 2,045,000
900 King & Snohomish Counties School District No. 417
Northshore, G.O. (MBIA Insured) Aaa/AAA 6.30 6/1/13 943,875
200 Public Power Supply Systems Nuclear Project #1,
Revenue Aaa/AAA 14.38 7/1/01 247,000
4,000 Public Power Supply Systems Nuclear Project #1,
Revenue Aaa/AAA 5.75 7/1/11 4,075,000
300 Public Power Supply Systems Nuclear Project #1,
Revenue, Series B Aa1/AA- 7.25 7/1/09 348,375
400 Public Power Supply Systems Nuclear Project #2,
Revenue, Series A Aa1/AA- 7.25 7/1/06 460,500
300 Seattle Metropolitan Municipality, G.O. Aa/A+ 5.65 1/1/20 300,750
2,000 Seattle Municipal Light & Power, Revenue Aa/AA 6.63 7/1/16 2,157,500
500 Seattle Municipal Light & Power, Revenue, Series B Aa/AA 5.75 8/1/08 517,500
1,400 Seattle Water Systems, Revenue Aa2/AA 5.50 6/1/18 1,370,250
2,000 Seattle, G.O., Series A Aa1/AA+ 5.63 1/15/10 2,042,500
500 Tacoma Electric Systems Revenue, Series B Aaa/AAA 5.90 1/1/05 533,125
500 Washington State, G.O. Aaa/AAA 8.90 10/1/03 514,850
300 Washington State, G.O. Aaa/AAA 7.75 12/1/07 319,500
5,000 Washington State, Series A, G.O. Aa/AA 6.75 2/1/15 5,768,750
300 Washington State, G.O., Series A & AT-6 Aa/AA 6.25 2/1/11 330,750
-----------
25,647,156
-----------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
18
<PAGE> 19
PILOT MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Ratings Maturity Value
(000) (Moody's/S&P) Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
WEST VIRGINIA -- 0.5%
$1,000 University Revenue (AMBAC Insured) Aaa/AAA 5.75% 4/1/16 $ 1,013,750
-----------
WISCONSIN -- 1.5%
2,000 Menomonee Falls, Wisconsin Sewer Systems, Series A Aaa/AAA 5.65 5/1/16 1,995,000
1,000 Wisconsin State, Series 1, G.O. Aa/AA 5.80 11/1/08 1,073,750
-----------
3,068,750
TOTAL MUNICIPAL BONDS (cost $183,752,416) 195,808,633
</TABLE>
<TABLE>
<CAPTION>
Shares
(000)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MONEY MARKET MUTUAL FUND--2.5%
5,011 Federated Tax Exempt Money Market (Cost
$5,011,000) 5,011,000
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 99.0% (cost $188,763,416) 200,819,633
OTHER ASSETS IN EXCESS OF LIABILITIES--1.0% 2,086,547
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS--100.0% $ 202,906,180
- ---------------------------------------------------------------------------------------------------------------------------------
AMBAC --AMBAC Indemnity Corporation
BIG --Bond Investors Guaranty
FGIC --Financial Guaranty Insurance Corporation
FHA --Federal Housing Administration
GNMA --Government National Mortgage Association
G.O. --General Obligation
MBIA --Municipal Bond Insurance Association
VA --Veterans Administration
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
19
<PAGE> 20
PILOT INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Moody's/S&P Maturity Value
Amount Ratings Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MUNICIPAL BONDS--95.1%
ARIZONA--5.3%
$2,000,000 Arizona State Transportation Board, Excise Tax
Revenue (AMBAC Insured) Aaa/AAA 5.50% 7/1/02 $ 2,102,500
300,000 Flagstaff, Series 1991A (FGIC Insured) Aaa/AAA 8.50 7/1/98 318,375
1,100,000 Glendale G.O. Refunding Bonds (FGIC Insured) Aaa/AAA 4.95 7/1/01 1,127,500
300,000 Maricopa County High School District 210, G.O.
Refunding Bonds, Series D Aa/AA 6.70 7/1/03 328,125
300,000 Maricopa County School District 48, G.O. Refunding
Bonds, Series 1991 Aa/AA 6.00 7/1/00 309,750
3,000,000 Mesa G.O. Refunding Bonds (FGIC Insured) Aaa/AAA 5.35 7/1/00 3,112,500
900,000 Mesa G.O. Refunding Bonds (MBIA Insured) Aaa/AAA 5.00 7/1/03 922,500
900,000 Phoenix G.O. Refunding Bonds Aa1/AA+ 5.40 7/1/97
300,000 Pima County G.O., Prerefunded 7/1/97 @ 102 NR/NR 7.10 7/1/99 309,480
900,000 Pima County G.O. Refunding Bonds Aa/A+ 5.35 7/1/00 930,375
400,000 Pima County School District No. 1, G.O., Refunding
Bonds, Prerefunded 7/01/01 @ 101 (MBIA Insured) Aaa/AAA 6.70 7/1/04 441,000
600,000 Salt River Project, Agriculture Impt. & Power
District Revenue Bonds, Series D Aa/AA 5.10 1/1/99 795,000
800,000 Salt River Project, Agriculture Revenue Refunding
Bonds, Series C Aa/AA 4.30 1/1/02 609,000
400,000 Tempe, Series 1992 Aa/AA+ 5.60 7/1/00 416,000
-----------
11,722,105
-----------
CALIFORNIA--4.0%
300,000 California State, G.O. A1/A+ 5.70 10/1/00 314,625
400,000 California State, G.O. A1/A+ 7.00 8/1/04 458,000
2,000,000 California State, Public Improvements, G.O. A1/A+ 5.25 3/1/00 2,057,500
1,100,000 California State, School & Public Improvements, G.O. A1/A+ 4.80 3/1/00 1,117,875
900,000 Contra Costa Water District Revenue Bonds, Series G
(MBIA Insured) Aaa/AAA 5.40 10/1/03 946,125
900,000 Los Angeles G.O. Bonds, Series A (MBIA Insured) Aaa/AAA 5.40 9/1/03 942,750
1,100,000 Metropolitan Water District Southern Revenue Bonds,
Series 1992 Aa/AA 4.85 7/1/99 1,120,625
700,000 Riverside Sewer Revenue Refunding Bonds (FGIC
Insured) Aaa/AAA 4.80 8/1/01 712,250
600,000 San Diego Open Space Park Facilities, District No. 1,
G.O. Refunding Bonds Aaa/AA+ 5.13 1/1/00 618,000
600,000 University of California, Multiple Purpose
Projects-C, Revenue Refunding Bonds (AMBAC Insured) Aaa/AAA 4.80 9/1/04 601,500
-----------
8,889,250
-----------
COLORADO--3.0%
300,000 Colorado Springs Utility Authority, Revenue, Series A Aa/AA 6.63 11/15/04 328,125
300,000 Denver City & County, G.O. Bonds Aa/AA 6.38 8/1/03 324,750
300,000 Denver City & County, G.O. Bonds Aa/AA 6.50 8/1/04 325,125
400,000 Denver City & County, Various Purpose G.O. Bonds,
Series A Aa/AA 5.50 8/1/99 412,500
1,195,000 La Plata County School District, #9R Durango, G.O.
(MBIA Insured) Aaa/AAA 5.00 11/1/02 1,227,862
1,500,000 Northglenn, G.O. Bonds (FSA Insured)* Aaa/AAA 5.25 12/1/03 1,569,375
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
20
<PAGE> 21
PILOT INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Moody's/S&P Maturity Value
Amount Ratings Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
COLORADO (continued)
$1,500,000 Northglenn, G.O. Bonds (FSA Insured)* Aaa/AAA 5.25% 12/1/04 $ 1,569,375
900,000 Platte River Power Authority, Revenue, Series CC Aa/A+ 4.63 6/1/00 905,625
-----------
6,662,737
-----------
CONNECTICUT--1.8%
600,000 Connecticut State G.O., Refunding Bonds, Series B Aa/AA- 5.65 11/15/98 619,500
300,000 Connecticut State G.O., Series A, Prerefunded 3/1/01
@ 102 Aaa/AAA 6.60 3/1/04 329,625
1,000,000 Connecticut State Public Improvements, G.O. Refunding
Bonds, Series B Aa/AA- 4.80 3/15/01 1,020,000
2,000,000 Connecticut State Special Unemployment Compensation,
Revenue Series A Aaa/AA 5.50 11/15/00 2,090,000
-----------
4,059,125
-----------
DELAWARE--0.4%
800,000 Delaware State School Improvements, G.O. Bonds,
Series A Aa1/AA+ 4.60 3/1/00 811,000
-----------
DISTRICT OF COLUMBIA--0.5%
1,100,000 District of Columbia G.O. Bonds, Series A (AMBAC
Insured) Aaa/AAA 7.00 6/1/98 1,139,875
-----------
FLORIDA--2.3%
1,000,000 Broward County School District, G.O. Refunding Bonds A1/AA- 5.10 2/15/02 1,025,000
500,000 Florida State Board of Education Capital Outlay, G.O.
Refunding Bonds, Series 1992A Aa/AA 5.70 6/1/03 533,750
1,500,000 Jacksonville Electric Authority, St. Johns River,
Revenue Refunding Bonds, Series 10 Aa/AA1 4.60 10/1/00 1,518,750
300,000 Jacksonville Electric Authority, St. Johns River,
Special Obligation Bonds Aa1/AA 6.40 10/1/00 321,375
1,000,000 Orlando Utility Commission, Water & Electric Revenue
Refunding Bonds Aa1/AA 5.20 10/1/00 1,033,750
600,000 Tampa Guaranteed Entitlement Revenue Refunding Bonds
(AMBAC Insured) Aaa/AAA 6.50 10/1/99 634,500
-----------
5,067,125
-----------
GEORGIA--1.6%
300,000 Georgia Municipal Electric Authority, Power Revenue
Ref. Bonds, Series Q A/A 7.40 1/1/98 307,479
300,000 Georgia Municipal Electric Authority, Power Revenue
Ref. Bonds, Series U Aaa/A 6.80 1/1/03 330,750
300,000 Georgia State, G.O. Aaa/AA+ 7.00 11/1/00 329,625
200,000 Georgia State Public Improvements, G.O., Series C Aaa/AA+ 6.50 4/1/04 223,750
700,000 Gwinnett County G.O. Refunding Bonds, Series 1992 Aa1/AA+ 4.88 1/1/99 711,375
1,615,000 Gwinnett County School District, G.O., Series A Aa1/AA+ 5.10 2/1/01 1,667,488
-----------
3,570,467
-----------
HAWAII--5.0%
700,000 Hawaii County, Series 1993A (FGIC Insured) Aaa/AAA 4.80 5/1/00 710,500
600,000 Hawaii State, G.O. Refunding Bonds, Series 1992BW Aa/AA 5.50 3/1/99 616,500
900,000 Hawaii State, G.O. Refunding Bonds, Series CC Aa/AA 4.60 2/1/00 910,125
1,000,000 Hawaii State, G.O. School & Public Improvements,
Series BU Aa/AA 5.85 11/1/01 1,062,500
300,000 Hawaii State, G.O., Series BZ Aa/AA 5.40 10/1/01 312,750
2,000,000 Hawaii State, G.O., Series CJ Aa/AA 5.63 1/1/02 2,100,000
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
21
<PAGE> 22
PILOT INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Moody's/S&P Maturity Value
Amount Ratings Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
HAWAII (continued)
$2,000,000 Hawaii State, G.O. Aa/AA 5.00% 3/1/03 $ 2,047,500
600,000 Honolulu City & County, G.O. Refunding Bonds, Series
B Aa/AA 4.60 10/1/99 607,500
900,000 Honolulu City & County, G.O. Refunding Bonds, Series
1992 One Aa/AA 5.38 6/1/99 924,750
500,000 Honolulu City & County, Public Improvements, Series
1994A Aa/AA 5.00 4/1/99 508,750
1,300,000 Honolulu City & County, Public Improvements, G.O.
Series A Aa/AA 5.25 1/1/01 1,339,000
-----------
11,139,875
-----------
ILLINOIS--6.3%
2,165,000 Chicago Metropolitan Water Reclamation District, G.O. Aa/AA 5.75 12/1/01 2,286,781
1,100,000 Chicago Metropolitan Capital Improvement, G.O. Aa/AA 5.00 12/1/02 1,127,500
600,000 Chicago Water Revenue Refunding Bonds (AMBAC Insured) Aaa/AAA 5.60 11/1/04 632,250
1,500,000 Cook County, G.O. Aaa/AAA 5.10 11/12/03 1,539,375
100,000 Du Page County Jail Project, G.O. Revenue Bonds (ETM) Aaa/AAA 9.00 1/1/00 112,250
300,000 Du Page County Stormwater Project, G.O. Revenue Bonds
(ETM) Aaa/AAA 9.00 1/1/00 336,750
900,000 Du Page Water Commission Revenue Refunding Bonds Aa1/AA 5.00 5/1/02 924,750
1,450,000 Illinois State G.O. Bonds Aa3/AA- 5.00 6/1/02 1,480,813
1,100,000 Illinois State G.O. Bonds Aa3/AA- 5.50 8/1/03 1,152,250
1,900,000 Illinois State, G.O. Sales Tax Revenue Bonds, Series
Q Aa3/AA- 5.30 6/15/00 1,954,625
1,300,000 Illinois State Toll Hwy. Priority Revenue Refunding,
Series A A1/A 4.50 1/1/00 1,301,625
600,000 Northwest Suburban Municipal Water Agency Revenue
Refunding Bonds (MBIA Insured) Aaa/AAA 5.40 5/1/99 614,250
500,000 Waukegan G.O. Refunding Bonds (FGIC Insured) Aaa/AAA 5.40 1/1/00 515,000
-----------
13,978,219
-----------
INDIANA--1.3%
2,000,000 Indiana Health Facilities Financing Authority,
Clarian Health Partners Inc., Revenue Bonds Aa3/AA 5.00 2/15/04 2,002,500
900,000 Indiana Municipal Power Supply System Revenue
Refunding Bonds, Series B (MBIA Insured) Aaa/AAA 5.38 1/1/03 937,125
-----------
2,939,625
-----------
KANSAS--0.2%
100,000 Johnson County University. School District No. 229,
G.O. Refunding Bonds (FGIC Insured) Aaa/AAA 7.10 3/1/99 101,543
300,000 Kansas State Department of Transportation Highway
Revenue Bonds, Series A Aa/AA 4.10 9/1/00 297,000
-----------
398,543
-----------
KENTUCKY--0.3%
700,000 Kentucky State Turnpike Authority Economic
Development Revitalization Project (AMBAC Insured) Aaa/AAA 4.90 7/1/00 714,875
-----------
LOUISIANA--1.3%
2,005,000 Louisiana Public Facilities Authority, Loyola
University Project, Revenue Bonds (MBIA Insured) Aaa/AAA 4.90 10/1/05 2,022,544
700,000 Louisiana State, Series A (MBIA Insured) Aaa/AAA 6.70 8/1/98 722,029
-----------
2,744,573
-----------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
22
<PAGE> 23
PILOT INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Moody's/S&P Maturity Value
Amount Ratings Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MAINE--0.5%
$1,000,000 Maine Municipal Bond Bank, Series E (AMBAC Insured) Aaa/AAA 5.25% 11/1/04 $ 1,038,750
-----------
MARYLAND--0.9%
2,000,000 Washington Suburban Sanitary District G.O., Revenue
Bonds Aa1/AA 5.00 6/1/04 2,045,000
-----------
MASSACHUSETTS--3.0%
2,000,000 Massachusetts State G.O., Series A (FGIC Insured) Aaa/AAA 4.75 11/1/05 2,005,000
1,000,000 Massachusetts State G.O., Refunding, Series B A1/A+ 5.00 11/1/01 1,023,750
300,000 Massachusetts State G.O., Series B A1/A+ 7.25 4/1/99 318,000
400,000 Massachusetts State G.O., Series D A1/A+ 6.38 7/1/00 424,500
1,260,000 Massachusetts State G.O., Series D (FGIC Insured) Aaa/AAA 5.13 11/1/01 1,305,675
1,500,000 Massachusetts State Turnpike Authority, Series A A/A+ 5.00 6/1/99 1,526,250
-----------
6,603,175
-----------
MICHIGAN--1.0%
900,000 Michigan State Recreation Program, G.O., Series 1992 Aa1/AA 5.50 11/1/99 932,625
600,000 Michigan State Trunk Line, Series 1994A A1/AA- 5.25 11/15/00 618,750
600,000 University of Michigan, University Revenue Refunding,
Student Fee Aa1/AA+ 4.60 4/1/99 606,000
-----------
2,157,375
-----------
MINNESOTA--1.5%
900,000 Metropolitan Council, G.O., Minneapolis-St. Paul,
Series A Aaa/AA+ 5.00 12/1/04 914,625
300,000 Minnesota State, Various Purpose G.O. Bonds Aaa/AA+ 6.40 8/1/99 316,875
900,000 Minnesota State, G.O. Refunding Bonds Aaa/AA+ 4.88 8/1/00 921,375
300,000 Ramsey County, G.O., Refunding Capital Improvement,
Series C Aaa/AA+ 5.15 12/1/00 310,875
900,000 St. Paul Sewer Revenue Refunding Bonds (AMBAC
Insured) Aaa/AAA 5.10 12/1/01 920,250
-----------
3,384,000
-----------
MISSOURI--12.1%
300,000 Clay County Public School District 53, G.O. Series B
(MBIA Insured) Aaa/AAA 5.00 3/1/03 307,500
400,000 Columbia G.O., Refunding Aa/AA 5.20 10/1/00 414,000
100,000 Independence School District G.O. Bonds A3/NR 6.10 3/1/01 106,375
300,000 Kansas City Airport Revenue Bonds, Prerefunded 9/1/97
@102 A/A 7.40 9/1/98 311,667
1,000,000 Kansas City Municipal Assistance Revenue Bonds (MBIA
Insured) Aaa/AAA 4.80 4/15/03 1,005,000
200,000 Kansas City Public Safety G.O. Bonds Aa3/AA 6.20 9/1/97 202,582
1,300,000 Kansas City School District Building, Leasehold
Revenue Series A,
Prerefunded 2/1/98 @ 102 (FGIC Insured) Aaa/AAA 7.90 2/1/08 1,376,271
300,000 Kansas City Various Purpose G.O. Bonds Aa3/AA 6.30 3/1/03 319,125
300,000 Kansas City Various Purpose G.O. Bonds Aa3/AA 6.40 3/1/04 319,125
600,000 Kansas City Various Purpose G.O. Bonds Aa3/AA 6.00 3/1/07 624,000
200,000 Kansas City Water Revenue Bonds, Series B (AMBAC
Insured) Aaa/AAA 6.60 12/1/02 206,418
300,000 Mehlville School District No. 9, G.O. (MBIA Insured) Aaa/AAA 5.00 2/15/00 307,125
200,000 Missouri State Environmental Improvement & Energy
Authority, Water Pollution Control Revenue Bonds,
Series A Aa2/NR 5.40 7/1/97 201,228
1,000,000 Missouri State Environmental Bonds Aa/A1 5.50 12/1/05 1,043,750
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
23
<PAGE> 24
PILOT INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Moody's/S&P Maturity Value
Amount Ratings Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MISSOURI (continued)
$1,200,000 Missouri State Health & Educational Facilities
Authority, Revenue, Barnes-Jewish, Series A Aa/AA 4.00% 5/15/98 $ 1,200,000
600,000 Missouri State Health & Educational Facilities
Authority, Revenue, Barnes-Jewish, Series A Aa/AA 5.90 5/15/04 640,500
200,000 Missouri State Health & Educational Facilities
Authority, Revenue, Barnes Hospital (ETM) NR/AAA 6.55 12/15/97 204,704
200,000 Missouri State Health & Educational Facilities
Authority, Revenue, Barnes Hospital (ETM) NR/AAA 6.65 12/15/98 209,750
200,000 Missouri State Health & Educational Facilities
Authority, Revenue, Barnes Hospital (ETM) NR/AAA 6.75 12/15/99 214,000
300,000 Missouri State Health & Educational Facilities
Authority, Revenue Refunding & Improvement,
Christian Health, A (FGIC Insured) Aaa/AAA 6.40 2/15/00 317,625
300,000 Missouri State Health & Educational Facilities
Authority, Revenue Refunding & Improvement,
Christian Health, Series A (FGIC Insured) Aaa/AAA 6.25 2/15/98 307,731
600,000 Missouri State Health & Educational Facilities
Authority, Revenue Refunding & Improvement,
Christian Health, A, Prerefunded 2/15/01 @ 102 Aaa/AAA 6.60 2/15/02 660,000
300,000 Missouri State Health & Educational Facilities
Authority, Revenue, Missouri Baptist Medical
Center, Series 1990A NR 7.30 7/1/99 321,375
300,000 Missouri State Health & Educational Facilities
Authority Revenue, General Tuition, St. Louis
University (AMBAC Insured) Aaa/AAA 6.10 8/1/99 313,875
600,000 Missouri State Health & Educational Facilities
Authority, Revenue Refunding, St. Louis University
(AMBAC Insured) Aaa/AAA 4.10 10/1/00 597,750
1,000,000 Missouri State Health & Educational Facilities
Authority, Revenue, St. Louis Children's Hospital
(MBIA Insured) Aaa/AAA 5.40 5/15/99 1,028,750
100,000 Missouri State Health & Educational Facilities
Authority, Revenue Refunding, St. Lukes Hospital,
Kansas City (MBIA Insured) Aaa/AAA 6.50 11/15/02 110,500
300,000 Missouri State Health & Educational Facilities
Authority, Health Facilities Revenue, St. Lukes
Episcopal/ Presbyterian (FGIC Insured) Aaa/AAA 4.70 12/1/98 304,875
200,000 Missouri State Health & Educational Facilities
Authority, Revenue, St. Lukes Episcopal Hospital
(FGIC Insured) Aaa/AAA 6.60 12/1/00 213,250
600,000 Missouri State Health & Educational Facilities
Authority, Revenue, St. Lukes Health System (MBIA
Insured) Aaa/AAA 4.25 11/15/01 595,500
300,000 Missouri State Health & Educational Facilities
Authority, Revenue Refunding & Improvement, Sisters
of Mercy, Series E Aa2/AA 7.00 6/1/98 310,500
700,000 Missouri State Health & Educational Facilities
Authority, Revenue Refunding & Improvement, Sisters
of Mercy, Series E Aa2/AA 7.00 6/1/99 741,125
1,500,000 Missouri State Health & Educational Facilities
Authority, Revenue Refunding, SSM Health Care,
Series AA (MBIA Insured) Aaa/AAA 5.40 6/1/00 1,552,500
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
24
<PAGE> 25
PILOT INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Moody's/S&P Maturity Value
Amount Ratings Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MISSOURI (continued)
$ 200,000 Missouri State Health & Educational Facilities
Authority, Revenue, SSM Care Project., Series B
(MBIA Insured) Aaa/AAA 6.50% 6/1/98 $ 206,750
400,000 Missouri State Health & Educational Facilities
Authority, Revenue, SSM Health Care Project (BIG
Insured) Aaa/AAA 7.00 6/1/97 403,448
200,000 Missouri State Health & Educational Facilities
Authority, Revenue, SSM Health Care Project, Series
B (MBIA Insured) Aaa/AAA 6.40 6/1/97 201,442
400,000 Missouri State Office Building Special Obligation
Revenue, Series A 1991 Aa/AA 5.90 12/1/01 427,000
900,000 Missouri State, Third State Building, G.O. Refunding
Bonds, Series A Aaa/AAA 5.00 8/1/01 929,250
300,000 Missouri State, Third State Building, G.O. Refunding
Bonds, Series B Aaa/AAA 5.50 11/1/01 316,500
200,000 Missouri State, Water Pollution Control, G.O., Series
B, Prerefunded 11/01/01 @ 100 Aaa/AAA 5.70 11/1/02 211,750
300,000 Missouri State, Water Pollution Control, G.O., Series
B, Prerefunded 11/01/01 @ 100 Aaa/AAA 5.80 11/1/03 318,750
300,000 Springfield School District No. R12, School Building,
G.O. Refunding Bonds, Series A (FGIC Insured) Aaa/AAA 6.40 3/1/03 320,250
300,000 Springfield School District No. R12, School Building,
G.O. Refunding Bonds, Series A (FGIC Insured) Aaa/AAA 6.40 3/1/04 319,875
300,000 Springfield School District No. R12, School Building,
G.O. Refunding Bonds, Series A (FGIC Insured) Aaa/AAA 6.25 3/1/05 318,000
400,000 Springfield Waterworks Revenue Refunding Bonds,
Series B Aa/A+ 4.75 5/1/02 406,000
600,000 St. Louis County, Pattonville School District No.
R-3, G.O. (FGIC Insured) Aaa/AAA 5.70 2/1/01 630,000
1,300,000 St. Louis County Refunding & Improvement, Series A Aa/NR 4.80 2/1/03 1,317,875
200,000 St. Louis County Regional Convention & Sports
Complex, Series B A/BBB+ 6.20 8/15/98 205,000
100,000 St. Louis County Regional Convention & Sports
Complex, Series B A/BBB+ 6.30 8/15/99 103,625
500,000 St. Louis County, Rockwood School District No. R-6,
G.O., Prerefunded 2/1/99 @ 100 Aa/NR 6.00 2/1/01 518,750
400,000 St. Louis County, Rockwood School District No. R-6,
G.O., Prerefunded 2/1/99 @ 100 Aaa/NR 6.00 2/1/02 415,000
700,000 St. Louis County, Rockwood School District No. R-6,
G.O., Refunding Bonds Aaa/NR 5.00 2/1/03 711,375
300,000 St. Louis School District, G.O., (FGIC Insured) Aaa/AAA 6.50 4/1/03 331,875
400,000 St. Louis Sewer District, Mississippi River
Subdivision., G.O. Refunded Bonds, (FGIC Insured) Aaa/AAA 6.30 2/15/01 422,000
400,000 St. Louis Sewer District, Mississippi River
Subdivision., G.O. Refunding Bonds, (FGIC Insured) Aaa/AAA 6.40 2/15/02 422,000
200,000 University of Missouri Revenue Refunding Bonds,
Series A (AMBAC Insured) Aaa/AAA 6.10 11/1/97 203,394
200,000 University of Missouri Revenue Refunding Bonds,
Series A (AMBAC Insured) Aaa/AAA 6.20 11/1/98 207,750
200,000 University of Missouri Revenue Refunding Bonds,
Series B (AMBAC Insured) Aaa/AAA 6.10 11/1/97 203,394
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
25
<PAGE> 26
PILOT INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Moody's/S&P Maturity Value
Amount Ratings Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
MISSOURI (continued)
$ 100,000 University of Missouri Revenue Refunding Bonds,
Series B (AMBAC Insured) Aaa/AAA 6.20% 11/1/98 $ 103,875
-----------
26,763,404
-----------
NEBRASKA--0.7%
1,000,000 Nebraska Public Power District Revenue, Power Supply
System A1/A+ 5.30 1/1/02 1,031,250
600,000 Omaha Public Power District Electric Revenue, Series
D Aa2/AA 4.75 2/1/04 603,750
-----------
1,635,000
-----------
NEVADA--2.0%
400,000 Clark County G.O. Revenue Bonds, Series A (AMBAC
Insured) Aaa/AAA 5.50 6/1/98 408,500
300,000 Clark County School District, G.O.,Series A. (MBIA
Insured) Aaa/AAA 6.50 6/1/02 326,250
1,000,000 Nevada State, G.O., Bk. No. 38-39-A (ETM) NR/AA 6.00 7/1/01 1,060,000
1,000,000 Nevada State, G.O.,Series A Aa/AA 5.80 5/1/00 1,046,250
1,500,000 Washoe County G.O. Refunding Bonds (AMBAC Insured) Aaa/AAA 5.00 9/1/01 1,541,250
-----------
4,382,250
-----------
NEW JERSEY--3.4%
1,100,000 Bergen County Utility Authority, Water Pollution
Control. Revenue, Series B (FGIC Insured) Aaa/AAA 5.50 12/15/02 1,157,750
3,000,000 New Jersey G.O. Bonds Aa1/AA+ 5.13 1/1/02 3,101,250
1,100,000 New Jersey State Transportation Trust Fund Authority,
Series A (AMBAC Insured) Aaa/AAA 5.20 12/15/00 1,134,375
2,000,000 New Jersey State Transportation Trust Fund Authority,
Series B (MBIA Insured) Aaa/AAA 5.00 6/15/02 2,045,000
-----------
7,438,375
-----------
NEW MEXICO--1.8%
1,400,000 Albuquerque G.O. Bonds, Series A & B Aa/AA 4.70 7/1/00 1,421,000
2,000,000 New Mexico State Capital Project, G.O. Bonds Aa1/AA+ 5.25 9/1/03 2,042,500
600,000 New Mexico State Severance Tax, Series B Aa/AA 5.10 7/1/00 614,250
-----------
4,077,750
-----------
NEW YORK--1.4%
300,000 New York State G.O. A/A- 6.75 6/15/99 316,125
600,000 New York State Various Purpose G.O. Bonds A/A- 6.60 11/15/98 628,500
1,100,000 New York State Various Purpose G.O. Bonds A/A- 6.70 1/15/99 1,168,750
1,000,000 New York State Tollway Authority Bonds, Series B
(AMBAC Insured) Aaa/AAA 5.00 4/1/00 1,023,750
-----------
3,137,125
-----------
NORTH CAROLINA--0.1%
300,000 North Carolina State G.O. Aaa/AAA 5.60 4/1/00 313,500
-----------
OHIO--1.0%
1,000,000 Cleveland, G.O. (AMBAC Insured) Aaa/AAA 4.90 9/1/04 1,015,000
900,000 Columbus G.O. Refunding Bonds, Series D Aaa/AAA 4.75 9/15/00 918,000
300,000 Ohio State Water Development Authority Revenue, Pure
Water Series I (MBIA Insured) Aaa/AAA 7.00 6/1/99 319,125
-----------
2,252,125
-----------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
26
<PAGE> 27
PILOT INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Moody's/S&P Maturity Value
Amount Ratings Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
OKLAHOMA--0.9%
$2,000,000 Tulsa, G.O. Aa/AA 5.13% 5/1/02 $ 2,070,000
-----------
OREGON--2.7%
3,000,000 Multnomah County School District 1J, G.O., Portland* Aa/AA- 5.50 6/1/05 3,165,000
1,300,000 Portland Sewer System Revenue, Series A A1/A+ 5.45 6/1/03 1,363,375
1,300,000 Washington County University Sewer Agency (AMBAC
Insured) Aaa/AAA 5.30 10/1/01 1,352,000
-----------
5,880,375
-----------
RHODE ISLAND--0.4%
800,000 Pawtucket G.O. Bonds (FGIC Insured) Aaa/AAA 5.25 4/15/01 827,000
-----------
TENNESSEE--0.4%
300,000 Hamilton County, Series 1994 Aa/NR 5.00 7/1/00 306,750
600,000 Metropolitan Government, Nashville & Davidson County,
Electric Revenue, Series B Aa/AA 5.63 5/15/03 632,250
-----------
939,000
-----------
TEXAS--12.1%
700,000 Arlington Permanent Improvement Refunding Bonds Aa/AA 4.80 8/15/01 713,125
1,100,000 Austin Utility System Revenue Refunding Comb., Series
A A/A 5.00 5/15/01 1,113,750
500,000 Austin Utility System Revenue Refunding Comb., Series
A (AMBAC Insured) Aaa/AAA 6.50 11/15/03 548,125
900,000 Colorado River Municipal Water District (AMBAC
Insured) Aaa/AAA 5.00 1/1/04 912,375
2,000,000 Dallas-Fort Worth International Airport Revenue Bonds
(MBIA Insured) Aaa/AAA 4.75 11/1/01 2,030,000
2,400,000 Dallas Waterworks & Sewer System Revenue Refunding
Bonds Aa/AA 4.50 4/1/00 2,418,000
900,000 Garland G.O. Refunding Bonds Aa/AA 5.50 8/15/99 929,250
2,500,000 Houston Water & Sewer System Revenue, Series A (MBIA
Insured) Aaa/AAA 5.80 12/1/04 2,700,000
1,100,000 San Antonio Electric & Gas Revenue Refunding Bonds Aa1/AA 4.00 2/1/00 1,091,750
1,000,000 San Antonio Electric & Gas Revenue Refunding, Libor
Reserve 2 Aa1/AA 5.20 2/1/01 1,028,750
1,100,000 San Antonio Electric & Gas Revenue Refunding, Libor
Reserve 2 Aa1/AA 5.20 2/1/01 1,127,500
1,880,000 Texas A & M University Revenue Refunding Bonds Aa/AA 5.00 5/15/02 1,927,000
2,200,000 Texas A & M University Revenue Refunding Bonds Aa/AA 5.95 5/15/05 2,384,250
1,120,000 Texas State Public Finance Authority, G.O. Aa/AA 4.80 10/1/04 1,136,800
900,000 Texas State Public Finance Authority, Series B Aa/AA 5.00 10/1/01 927,000
900,000 Texas State Refunding, Series A Aa/AA 5.70 10/1/03 961,875
1,100,000 Texas State Superconducting, 1992 C Aa/AA 5.35 4/1/01 1,144,000
2,000,000 University of Texas, Permanent University Revenue
Fund Aaa/AAA 5.00 7/1/01 2,055,000
300,000 University of Texas, Permanent Fund, Revenue
Refunding Bond Aaa/AAA 6.70 7/1/05 331,875
1,100,000 University of Texas, Revenue Refunding Bond Aa1/AA+ 5.10 8/15/99 1,122,000
300,000 University of Texas, Revenue Refunding Bond Aa1/AA+ 5.20 8/15/00 309,375
-----------
26,911,800
-----------
UTAH--1.5%
300,000 Davis County School District G.O. Bonds, Prerefunded
12/1/01 @ 100 (FGIC Insured) Aaa/AAA 6.45 6/1/02 325,875
2,000,000 Intermountain Power Agency Obligation (MBIA Insured) Aaa/AAA 5.05 7/1/01 2,050,000
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
27
<PAGE> 28
PILOT INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Moody's/S&P Maturity Value
Amount Ratings Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
UTAH (continued)
$ 900,000 Intermountain Power Agency, Power Supply Revenue
Refunding, Series B Aa/AA- 5.20% 7/1/98 $ 913,500
-----------
3,289,375
-----------
VIRGINIA--1.7%
1,620,000 Chesapeake Bay Bridge & Tunnel Revenue Bonds (FGIC
Insured) Aaa/AAA 5.10 7/1/01 1,666,575
1,100,000 Fairfax County Refunding, Series A Aaa/AAA 4.70 6/1/00 1,120,625
1,000,000 Norfolk G.O. Bonds Aa/AA 5.25 6/1/01 1,036,250
-----------
3,823,450
-----------
WASHINGTON--9.3%
600,000 King County Refunding, Series A Aa1/AA+ 5.25 12/1/01 623,250
2,500,000 King County Refunding, Series C Aa1/AA+ 5.63 6/1/02 2,637,500
1,195,000 King County School District # 415 (FSA Insured) Aaa/AAA 5.10 6/1/04 1,218,900
3,000,000 Pierce County School District Refunding (FGIC
Insured) Aaa/AAA 5.00 12/1/03 3,086,250
1,500,000 Snohomish County School District 103 (FGIC Insured) Aaa/AAA 5.15 6/1/05 1,537,500
300,000 Snohomish County School District 2, Series A (MBIA
Insured) Aaa/AAA 6.80 6/1/03 327,375
400,000 Spokane G.O. Aa/AA 8.50 1/1/00 444,000
800,000 Tacoma Electric System Revenue Refunding Bonds (FGIC
Insured) Aaa/AAA 5.50 1/1/01 833,000
2,500,000 Tacoma Electric System Revenue Refunding, Series B
(AMBAC Insured) Aaa/AAA 5.90 1/1/05 2,665,625
600,000 Tacoma Sewer Revenue Refunding, Series B (FGIC
Insured) Aaa/AAA 5.50 12/1/03 632,250
1,000,000 Tacoma, Series A A1/A+ 5.75 7/1/02 1,065,000
600,000 Washington State Public Power Supply, Nuclear Project
No. 1, Series C Aa1/AA 7.30 7/1/98 624,750
1,000,000 Washington State Public Power Supply, Nuclear Project
No. 1 Aaa/AAA 5.50 7/1/04 1,038,750
300,000 Washington State Public Power Supply, Nuclear Project
No. 3, Series B Aa1/AA 7.10 7/1/98 311,625
600,000 Washington State, Prerefunded 6/01/98 @ 100 (FSA
Insured) Aaa/AAA 7.30 6/1/00 625,500
900,000 Washington State Refunding, Series R 92C Aa/AA 5.60 9/1/01 947,250
900,000 Washington State, Series 93A Aa/AA 5.25 10/1/00 932,625
500,000 Washington State, Series B Aa/AA 6.30 6/1/02 535,625
600,000 Yakima County School District No. 7 (MBIA Insured) Aa/AAA 5.50 12/1/03 635,250
-----------
20,722,025
-----------
WISCONSIN--3.4%
800,000 Milwaukee County, Series 1994A A1/AA- 5.00 12/1/00 817,000
300,000 Milwaukee Metropolitan Sewer District, Series A Aa/AA 7.00 9/1/00 325,125
400,000 Milwaukee Metropolitan Sewer District, Series A Aa/AA 6.70 10/1/00 431,000
600,000 Milwaukee Refunding, Series 1992 Aa1/AA+ 5.70 6/1/99 621,000
300,000 Milwaukee, Series BZ Aa1/AA+ 6.38 6/15/03 322,125
3,070,000 Sun Prairie Area School District, G.O. Aaa/AAA 5.50 4/1/03 3,204,312
600,000 Wisconsin State G.O., Series A Aa/AA 5.75 5/1/00 627,750
300,000 Wisconsin State G.O., Series D Aa/AA 6.00 5/1/00 316,125
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
28
<PAGE> 29
PILOT INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997 -- (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Moody's/S&P Maturity Value
Amount Ratings Rate Date (Note 2)
- ---------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C> <C>
WISCONSIN (continued)
$ 900,000 Wisconsin State Refunding, Series 1 Aa/AA 5.10% 11/1/01 $ 929,250
-----------
7,593,687
-----------
TOTAL MUNICIPAL BONDS (cost $203,229,469) 211,121,935
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares
(000)
<C> <S> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT MONEY MARKET MUTUAL FUND--3.9%
8,813 Federated Tax Exempt Obligation Fund (cost
$8,813,000) 8,813,000
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--99.1% (cost $212,042,469) 219,934,935
ASSETS IN EXCESS OF LIABILITIES--0.9% 2,118,930
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS--100.0% $222,053,865
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
AMBAC --American Municipal Bond Assurance Corporation
BIG --Bond Insurance Guaranty
ETM --Escrowed to Maturity
FGIC --Financial Guaranty Insurance Corporation
MBIA --Municipal Bond Insurance Association
* When issued securities.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
29
<PAGE> 30
PILOT GROWTH FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
February 28, 1997
==========================================================
<TABLE>
<CAPTION>
Value
Shares Description (Note 2)
- -------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS--99.6%
CONSUMER CYCLICAL--7.5%
BUILDING -- MANUFACTURED HOUSING--4.1%
20,400 Centex Corp. $ 823,650
86,250 Clayton Homes, Inc. 1,229,062
------------
2,052,712
------------
MULTIMEDIA--3.4%
13,441 Walt Disney 997,994
16,900 Time Warner, Inc. 692,900
------------
1,690,894
------------
CONSUMER GOODS & STAPLES--4.4%
BEAUTY & HEALTH PRODUCTS--1.2%
3,500 Gillette Co. 276,937
2,700 Procter & Gamble Co. 324,338
------------
601,275
------------
BEVERAGES & TOBACCO--0.3%
1,157 Philip Morris Cos., Inc. 156,340
------------
FOOD PRODUCTS & SERVICES--2.9%
9,340 Campbell Soup Co. 841,768
12,900 Hershey Foods Corp. 588,562
------------
1,430,330
------------
ENERGY--14.8%
INTEGRATED OIL--6.2%
17,400 Amoco Corp. 1,470,300
12,200 Pennzoil Co. 699,975
4,800 Texaco, Inc. 474,600
11,500 Unocal Corp. 444,187
------------
3,089,062
------------
OIL & GAS EXPLORATION, PRODUCTION & SERVICES--8.6%
35,700 Baker Hughes, Inc. 1,267,350
9,000 Burlington Resources, Inc. 394,875
6,000 Halliburton Co. 387,750
10,700 Helmerich & Payne, Inc. 452,075
43,500 Tosco Corp. 1,212,562
9,800 Western Atlas* 596,575
------------
4,311,187
------------
FINANCE--9.5%
FINANCIAL SERVICES--5.8%
13,800 CMAC Investment Corp. $ 483,000
36,800 Comdisco, Inc. 1,145,400
31,400 Federal National Mortgage Assoc. 1,256,000
------------
2,884,400
------------
INSURANCE--3.7%
18,300 Fremont General Corp. 528,412
17,140 Mercury General Corp. 1,051,968
7,500 Vesta Insurance Group, Inc. 293,438
------------
1,873,818
------------
HEALTH CARE--15.5%
BIOTECHNOLOGY--2.6%
21,500 Amgen, Inc.* 1,314,187
------------
MEDICAL/HMO--1.7%
17,200 United Healthcare Corp. 857,850
------------
MEDICAL SUPPLIES & SERVICES--1.8%
5,100 Baxter International, Inc. 234,600
13,540 Becton Dickinson & Co. 666,845
------------
901,445
------------
NURSING HOMES--0.8%
15,500 Health Care & Retirement Corp. 420,437
------------
PHARMACEUTICALS--8.6%
13,630 Cardinal Health, Inc. 838,245
15,700 Johnson & Johnson 904,712
11,600 Merck & Co., Inc. 1,067,200
5,700 Pfizer, Inc. 522,263
12,600 Schering-Plough Corp. 965,475
------------
4,297,895
------------
INDUSTRIAL GOODS & SERVICES--11.5%
AEROSPACE & DEFENSE--4.8%
7,500 Lockheed Martin Corp. 663,750
5,500 Northrop Grumman Corp. 399,437
16,000 Orbital Sciences Corp.* 276,000
16,340 Rockwell International Corp. 1,058,015
------------
2,397,202
------------
</TABLE>
==========================================================
See Notes to Financial Statements.
30
<PAGE> 31
PILOT GROWTH FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997
==========================================================
<TABLE>
<CAPTION>
Value
Shares Description (Note 2)
- -------------------------------------------------------------
<C> <S> <C>
CHEMICALS--2.0%
16,700 Cabot Corp. $ 392,450
11,650 Monsanto Co., 423,768
5,100 Morton International, Inc. 210,375
------------
1,026,593
------------
MACHINERY & EQUIPMENT--4.7%
7,100 Black & Decker Corp. 224,538
22,500 Case Corp. 1,167,188
5,200 Dover Corp. 258,050
27,650 IDEX Corp. 701,619
------------
2,351,395
------------
LEISURE--0.5%
CASINO SERVICES--0.5%
14,000 International Game Technologies 245,000
------------
MANUFACTURING--7.6%
APPAREL/SHOE--4.4%
21,600 Liz Claiborne 874,800
18,400 Nike, Inc., Class B 1,322,500
------------
2,197,300
------------
CAPITAL GOODS--1.1%
1 Stewart & Stevenson Services, Inc. 26
31,977 Westinghouse Electric Corp. 551,603
------------
551,629
------------
METAL PROCESSORS & FABRICATION--1.1%
13,100 Kaydon Corp. 566,575
------------
MISCELLANEOUS MANUFACTURER--1.0%
5,900 Illinois Tool Works 497,813
------------
RETAIL--4.0%
JEWELRY--1.4%
20,870 Tiffany & Company 725,233
------------
MAIL ORDER--0.9%
15,700 Lands' End* 435,675
------------
SPECIALITY--1.4%
35,300 PETsMART, Inc.* 688,350
------------
WHOLESALE--0.3%
2,900 CDW Computer Centers, Inc.* 152,431
------------
SERVICES--2.0%
COMPUTER SERVICES--1.0%
10,000 SunGard Data Systems, Inc. $ 507,500
------------
OFFICE SUPPLIES & FORMS--1.0%
14,800 Wallace Computer Services, Inc. 501,350
------------
TECHNOLOGY--17.3%
COMPUTER HARDWARE--6.9%
11,600 Cisco Systems, Inc.* 645,250
17,900 Compaq Computer Corp.* 1,418,575
14,100 Hewlett-Packard Co. 789,600
27,590 Kemet Corp.* 613,878
------------
3,467,303
------------
COMPUTERS -- INTEGRATED SYSTEMS--0.7%
7,800 Diebold, Inc. 327,600
------------
COMPUTER SOFTWARE--3.7%
9,800 BMC Software, Inc.* 419,563
14,300 Computer Associates International,
Inc. 622,050
25,720 Sun Microsystems, Inc.* 794,105
------------
1,835,718
------------
ELECTRONIC COMPONENTS & SEMICONDUCTORS--6.0%
34,700 Analog Devices, Inc.* 806,775
24,300 Cirrus Logic, Inc.* 329,569
4,800 Dynatech Corp.* 134,400
6,950 Intel Corp. 986,031
11,300 SCI Systems Inc.* 604,550
8,900 VLSI Technology, Inc.* 166,319
------------
3,027,644
------------
UTILITIES--5.0%
ELECTRIC UTILITY--0.7%
10,000 Calenergy, Inc.* 333,750
------------
TELECOMMUNICATIONS--4.3%
23,500 SBC Communications, Inc. 1,351,250
7,400 Tellabs, Inc.* 295,075
10,900 GTE Corp. 509,575
------------
2,155,900
- -------------------------------------------------------------
Total Common Stocks (cost $40,874,644) 49,873,793
- -------------------------------------------------------------
</TABLE>
==========================================================
See Notes to Financial Statements.
31
<PAGE> 32
PILOT GROWTH FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997
==========================================================
<TABLE>
<CAPTION>
Principal
Amount Value
(000) (Note 2)
- ---------------------------------------------------------------
<C> <S> <C>
U.S. TREASURY BILLS--0.3%
150 U.S. Treasury Bill 5.10%, 6/5/97 $ 148,007
- ---------------------------------------------------------------
TOTAL U.S. TREASURY BILL (cost $147,980) 148,007
- ---------------------------------------------------------------
REPURCHASE AGREEMENTS--0.8%
395 Repurchase agreement with Lehman
Brothers, Inc., dated 2/28/97,
5.35%, due 3/3/97, (cost $395,000)
(see Footnote A) 395,000
- ---------------------------------------------------------------
TOTAL INVESTMENTS--100.7% (cost $41,417,624) 50,416,800
- ---------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(0.7%) (331,379)
- ---------------------------------------------------------------
NET ASSETS--100.0% $ 50,085,421
- ---------------------------------------------------------------
</TABLE>
* Non-income producing security.
Footnote A
Collateralized by $890,000 Treasury Bond, 6.38%, due 11/15/08 with a value
of $403,989.
==========================================================
See Notes to Financial Statements.
32
<PAGE> 33
PILOT DIVERSIFIED BOND INCOME FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
February 28, 1997
==========================================================
<TABLE>
<CAPTION>
Principal
Amount Maturity Value
(000) Rate Date (Note 2)
- ------------------------------------------------------------------
<C> <S> <C> <C> <C>
CORPORATE BONDS--34.2%
ENERGY--0.7%
INTEGRATED OIL--0.7%
$ 700 Shell Oil Co. 6.70% 8/15/02 $ 697,179
------------
FINANCE--14.7%
BANKING--2.2%
1,000 ABN Amro Bank NV 7.55 6/28/06 1,029,540
1,500 BankAmerica Corp. 6.20 2/15/06 1,402,905
------------
2,432,445
------------
FINANCIAL SERVICES--12.5%
3,500 Association Corp.
N.A. 7.50 5/15/99 3,574,970
300 Dean Witter Discovery
& Co. 6.25 3/15/00 297,108
2,500 Dean Witter Discovery
& Co. 6.75 8/15/00 2,505,700
3,000 Discover Card Master
Trust I 6.55 2/18/03 3,000,930
1,000 General Electric
Capital Corp. 8.50 7/24/08 1,112,480
1,000 Household Finance
Corp. 7.25 7/1/06 1,012,460
1,000 Merrill Lynch & Co.,
Inc. 7.00 3/15/06 997,130
1,000 Sears Roebuck
Acceptance Corp. 6.75 9/15/05 976,570
------------
13,477,348
------------
GOVERNMENT--1.0%
FOREIGN--1.0%
1,000 Province of Manitoba 8.75 5/1/01 1,075,740
------------
HEALTH CARE--4.3%
MEDICAL SUPPLIES & SERVICES--1.0%
1,000 Columbia/HCA
Healthcare Corp. 7.25 5/20/08 1,004,560
------------
PHARMACEUTICALS--3.3%
2,000 American Home
Products 7.90 2/15/05 2,117,760
1,500 SmithKline Beecham
Corp. 7.50 5/1/02 1,520,190
------------
3,637,950
------------
RETAILING--8.6%
DEPARTMENT STORES--4.6%
$ 1,000 May Department Stores
Co. 7.15% 8/15/04 $ 1,010,390
4,000 J.C.Penney, Inc. 6.88 6/15/99 4,035,840
------------
5,046,230
------------
DISCOUNT STORES--3.9%
3,500 Wal-Mart Stores, Inc. 8.63 4/1/01 3,741,640
550 Wal-Mart Stores, Inc. 5.50 3/1/98 547,228
------------
4,288,868
------------
UTILITIES--5.0%
ELECTRIC UTILITY--4.1%
4,500 National Rural
Utilities
Cooperative Finance
Corp. 6.50 9/15/02 4,403,745
------------
TELECOMMUNICATIONS--0.9%
1,000 Southwestern Bell
Telephone 6.63 4/1/05 982,650
- ------------------------------------------------------------------
TOTAL CORPORATE BONDS (cost $37,064,095) 37,046,715
- ------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--3.6%
2,000 Federal Farm Credit
Banks 6.04 1/19/06 1,893,120
2,000 Federal National
Mortgage Assoc. 7.27 7/27/26 2,021,560
- ------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES (cost $3,931,918) 3,914,680
- ------------------------------------------------------------------
U.S GOVERNMENT OBLIGATIONS--57.4%
U.S TREASURY BONDS--19.6%
20,000 U.S. Treasury Bonds 7.50 11/15/16 21,234,400
------------
</TABLE>
==========================================================
See Notes to Financial Statements.
33
<PAGE> 34
PILOT DIVERSIFIED BOND INCOME FUND
- --------------------------------------------------------------------------------
Portfolio of Investments (continued)
February 28, 1997
==========================================================
<TABLE>
<CAPTION>
Principal
Amount Maturity Value
(000) Rate Date (Note 2)
- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. TREASURY NOTES--37.8%
$ 9,900 U.S. Treasury Notes 6.50% 8/15/97 $ 9,944,847
11,500 U.S. Treasury Notes 6.13 5/15/98 11,534,155
2,000 U.S. Treasury Notes 8.88 11/15/98 2,090,320
4,500 U.S. Treasury Notes 6.75 5/31/99 4,555,530
8,050 U.S. Treasury Notes 7.13 2/29/00 8,239,900
1,300 U.S. Treasury Notes 6.25 2/15/03 1,287,806
2,500 U.S. Treasury Notes 7.88 11/15/04 2,697,275
500 U.S. Treasury Notes 6.50 8/15/05 497,500
------------
40,847,333
- ------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS (cost $62,074,961) 62,081,733
- ------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES (cost $103,070,975) 103,043,128
- ------------------------------------------------------------------
REPURCHASE AGREEMENTS--5.2%
5,664 Repurchase agreement with Lehman dated
2/28/97, 5.35%, due 3/3/97. 5,664,000
- ------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS (cost $5,664,000) 5,664,000
- ------------------------------------------------------------------
TOTAL INVESTMENTS--100.4% (cost $108,734,975) 108,707,128
LIABILITIES IN EXCESS OF OTHER ASSETS--(0.4%) (457,585)
- ------------------------------------------------------------------
NET ASSETS--100.0% $108,249,543
- ------------------------------------------------------------------
</TABLE>
Footnote A
Collateralized by $5,625,000 U.S. Treasury Note, 6.38%, due 3/31/01 with a
value of $5,779,045.
==========================================================
See Notes to Financial Statements.
34
<PAGE> 35
(This page intentionally left blank)
35
<PAGE> 36
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
February 28, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL
GROWTH AND EQUITY CAPITALIZATION
INCOME FUND INCOME FUND EQUITY FUND
------------ ------------ --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
ASSETS:
Investment in securities, at value.......................................... $355,190,912 $146,748,048 $ 97,530,794
Repurchase agreements, at cost.............................................. 20,609,000 7,867,000 13,433,000
- -----------------------------------------------------------------------------------------------------------------------------
Total (cost $313,039,589; $120,833,479; $102,346,717; $151,836,861;
$243,473,471; $188,763,416; $212,042,469; $41,417,624; and $108,734,975,
respectively)............................................................. 375,799,912 154,615,048 110,963,794
Cash........................................................................ 363 11 379
Dividends receivable........................................................ 854,012 -- --
Interest receivable......................................................... 3,063 648,775 51,221
Receivable for Portfolio shares sold........................................ 414,890 111 150
Deferred organization costs................................................. 55,937 53,610 16,544
Other assets................................................................ 3,026 687 35,912
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS................................................................ 377,131,203 155,318,242 111,068,000
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Advisory fees payable....................................................... 144,341 59,480 64,079
Administration fees payable................................................. 31,664 13,024 3,529
Distribution expenses payable (Class A Shares).............................. 1,335 3,708 2,016
Distribution expenses payable (Class B Shares).............................. 4,139 601 684
Payable to brokers for investments purchased................................ -- -- 136,732
Dividends payable........................................................... 350,760 380,815 38,472
Payable for Portfolio shares redeemed....................................... 1,491,152 4,701 150
Custodian fees payable...................................................... 11,210 5,290 4,232
Net variation margin on open futures contracts.............................. -- -- 27,578
Other accrued expenses...................................................... 86,629 72,597 37,190
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES........................................................... 2,121,230 540,216 314,662
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS.................................................................. $375,009,973 $154,778,026 $110,753,338
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE: ($1.00 PAR VALUE, UNLIMITED
NUMBER OF SHARES AUTHORIZED):
PILOT SHARES:
Net assets.................................................................. $362,553,999 $146,628,228 $104,586,092
Shares of beneficial interest issued and outstanding........................ 25,596,442 10,702,325 9,037,919
Net asset value............................................................. $ 14.16 $ 13.70 $ 11.57
- -----------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES:
Net assets.................................................................. $ 7,049,624 $ 3,300,095 $ 3,599,175
Shares of beneficial interest issued and outstanding........................ 497,929 239,195 311,425
Net asset value............................................................. $ 14.16 $ 13.80 $ 11.56
- -----------------------------------------------------------------------------------------------------------------------------
Sales charge--4.50%, 4.50%, 4.50%, 4.50%, 4.00%, 4.50%, 4.00%, 4.50%, and
4.00%, respectively, of offering price.................................... 0.67 0.65 0.54
- -----------------------------------------------------------------------------------------------------------------------------
Maximum offering price...................................................... $ 14.83 $ 14.45 $ 12.10
- -----------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES:
Net assets.................................................................. $ 5,406,350 $ 4,849,703 $ 2,568,071
Shares of beneficial interest issued and outstanding........................ 381,744 351,997 222,396
Net asset value............................................................. $ 14.16 $ 13.78 $ 11.55
- -----------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS:
Shares of beneficial interest, at par....................................... $ 26,476,115 $ 11,293,517 $ 9,571,740
Additional paid-in capital.................................................. 270,362,655 107,635,868 93,326,521
Undistributed (distributions in excess of) net investment income............ 1,120 76,857 (948)
Accumulated undistributed net realized gains (losses) from investment and
futures transactions...................................................... 15,409,760 1,990,215 (1,228,957)
Net unrealized appreciation (depreciation) from investments and futures..... 62,760,323 33,781,569 9,084,982
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, FEBRUARY 28, 1997............................................... $375,009,973 $154,778,026 $110,753,338
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
36
<PAGE> 37
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE INTERMEDIATE DIVERSIFIED
U.S. GOVERNMENT U.S. GOVERNMENT MUNICIPAL MUNICIPAL GROWTH BOND
SECURITIES FUND SECURITIES FUND BOND FUND BOND FUND FUND INCOME FUND
--------------- --------------- ------------ ------------ ----------- ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S><C> <C> <C> <C> <C> <C>
$ 148,501,705 $ 230,101,105 $200,819,633 $219,934,935 $50,021,800 $103,043,128
3,559,000 12,106,000 -- -- 395,000 5,664,000
- ----------------------------------------------------------------------------------------------------
152,060,705 242,207,105 200,819,633 219,934,935 50,416,800 108,707,128
119 34 895 697 6,149 861
-- -- -- -- 59,713 --
1,527,394 1,912,936 2,988,066 2,994,371 59 1,540,700
-- -- -- -- 22,737 26,213
52,545 53,334 53,203 53,588 -- --
513 2,098 1,009 1,406 53,174 57,040
- ----------------------------------------------------------------------------------------------------
153,641,276 244,175,507 203,862,806 222,984,997 50,558,632 110,331,942
- ----------------------------------------------------------------------------------------------------
46,784 64,950 69,993 67,909 30,067 33,951
12,828 20,323 17,051 18,605 4,401 9,296
1,208 -- 1,231 -- 18 35
221 248 379 180 99 234
-- -- -- -- -- --
655,083 1,002,086 787,454 767,325 2,948 92,257
-- -- -- -- 410,671 1,896,899
5,468 6,261 3,924 3,330 2,340 3,233
-- -- -- -- -- --
85,577 54,439 76,594 73,783 22,667 46,494
- ----------------------------------------------------------------------------------------------------
807,169 1,148,307 956,626 931,132 473,211 2,082,399
- ----------------------------------------------------------------------------------------------------
$ 152,834,107 $ 243,027,200 $202,906,180 $222,053,865 $50,085,421 $108,249,543
- ----------------------------------------------------------------------------------------------------
$ 150,131,832 $ 241,754,707 $199,503,756 $221,120,089 $49,846,002 $107,759,988
14,711,115 23,858,202 18,374,679 21,190,364 4,883,017 10,859,979
$ 10.21 $ 10.13 $ 10.86 $ 10.43 $ 10.21 $ 9.92
- ----------------------------------------------------------------------------------------------------
$ 1,145,061 $ 1,272,493 $ 1,809,792 $ 933,776 $ 100,977 $ 186,389
112,101 125,590 166,786 89,375 9,890 18,776
$ 10.21 $ 10.13 $ 10.85 $ 10.45 $ 10.21 $ 9.93
- ----------------------------------------------------------------------------------------------------
0.48 0.42 0.51 0.44 0.48 0.41
- ----------------------------------------------------------------------------------------------------
$ 10.69 $ 10.55 $ 11.36 $ 10.89 $ 10.69 $ 10.34
- ----------------------------------------------------------------------------------------------------
$ 1,557,214 $ -- $ 1,592,632 $ -- $ 138,442 $ 303,166
152,629 -- 147,556 -- 13,605 30,561
$ 10.20 $ -- $ 10.79 $ -- $ 10.18 $ 9.92
- ----------------------------------------------------------------------------------------------------
$ 14,975,845 $ 23,983,792 $ 18,689,021 $ 21,279,739 $ 4,906,512 $ 10,909,316
136,953,296 220,409,474 172,264,021 192,723,820 33,146,159 97,122,628
22,072 22,512 (151,486) 22,148 (1,090) --
659,050 (122,212) 48,408 135,692 3,034,664 245,446
223,844 (1,266,366) 12,056,216 7,892,466 8,999,176 (27,847)
- ----------------------------------------------------------------------------------------------------
$ 152,834,107 $ 243,027,200 $202,906,180 $222,053,865 $50,085,421 $108,249,543
- ----------------------------------------------------------------------------------------------------
</TABLE>
37
<PAGE> 38
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Statements of Operations
For the period ended February 28, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH AND EQUITY SMALL CAPITALIZATION U.S. GOVERNMENT
INCOME FUND INCOME FUND EQUITY FUND SECURITIES FUND
----------- ----------- -------------------- ---------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends..................................................... $ 3,795,689 $ 2,715,832 $ 488,479 $ --
Interest...................................................... 260,866 297,248 264,547 4,622,312
Foreign tax withholding....................................... (32,845) -- -- --
TOTAL INCOME.................................................. 4,023,710 3,013,080 753,026 4,622,312
EXPENSES:
Advisory fees................................................. 1,123,039 488,701 441,548 372,492
Administration fees........................................... 176,152 80,124 52,024 81,152
Distribution expenses (Class A Shares)........................ 7,586 3,166 3,906 1,113
Distribution expenses (Class B Shares)........................ 23,855 20,796 11,792 7,720
Accounting fees............................................... 20,838 10,396 8,931 9,778
Audit fees.................................................... 21,398 16,039 15,496 14,591
Transfer agent fees and expenses.............................. 30,513 21,856 31,129 17,810
Custodian fees and expenses................................... 12,693 6,274 9,562 6,455
Reports to shareholders....................................... 4,041 4,676 3,783 2,082
Registration fees............................................. 33,082 15,622 27,009 13,670
Amortization of organization expenses......................... 10,317 9,955 1,870 9,774
Legal fees.................................................... 7,250 4,797 1,297 4,917
Trustees' fees................................................ 6,853 2,564 1,500 2,533
Other expenses................................................ 1,210 657 46,954 1,448
TOTAL EXPENSES................................................ 1,478,827 685,623 656,801 545,535
Less: Fee waivers and expense reimbursements by advisor,
administrator, and distributor.............................. (320,582) (125,468) (181,908) (76,562)
NET EXPENSES.................................................. 1,158,245 560,155 474,893 468,973
NET INVESTMENT INCOME......................................... 2,865,465 2,452,925 278,133 4,153,339
REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) from investment and futures
transactions................................................ 19,874,450 2,303,484 (1,430,716) 955,364
Net change in unrealized appreciation (depreciation) from
investments and futures transactions........................ 18,432,182 15,922,465 8,463,495 1,700,923
NET REALIZED AND UNREALIZED GAINS (LOSSES) FROM INVESTMENTS... 38,306,632 18,225,949 7,032,779 2,656,287
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......... $41,172,097 $20,678,874 $7,310,912 $ 6,809,626
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
38
<PAGE> 39
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Statements of Operations
For the period ended February 28, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE INTERMEDIATE DIVERSIFIED
U.S. GOVERNMENT MUNICIPAL MUNICIPAL GROWTH BOND
SECURITIES FUND BOND FUND BOND FUND FUND(A) INCOME FUND(A)
--------------- ----------- ------------ ---------- --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends............................................. $ -- $ 81,367 $ 90,668 $ 218,181 $ --
Interest.............................................. 6,911,644 5,587,946 5,510,688 10,616 2,751,771
Foreign tax withholding............................... -- -- -- -- --
TOTAL INCOME.......................................... 6,911,644 5,669,313 5,601,356 228,797 2,751,771
EXPENSES:
Advisory fees......................................... 574,383 525,664 569,703 140,522 224,564
Administration fees................................... 129,094 108,306 119,332 20,569 47,068
Distribution expenses (Class A Shares)................ 1,665 2,481 1,196 36 101
Distribution expenses (Class B Shares)................ -- 7,273 -- 256 677
Accounting fees....................................... 15,192 27,332 32,133 3,951 14,840
Audit fees............................................ 17,457 16,401 17,638 11,266 8,646
Transfer agent fees and expenses...................... 18,172 18,353 18,172 4,847 9,170
Custodian fees and expenses........................... 8,084 5,158 6,274 3,930 4,978
Reports to shareholders............................... 10,770 6,094 9,684 2,096 --
Registration fees..................................... 26,976 13,821 12,673 20,698 20,698
Amortization of organization expenses................. 9,774 9,774 9,955 -- --
Legal fees............................................ 8,386 6,576 7,994 -- --
Trustees' fees........................................ 4,524 3,831 4,404 1,048 2,489
Other expenses........................................ 2,919 1,629 2,351 1,178 1,834
TOTAL EXPENSES........................................ 827,396 752,693 811,509 210,397 335,065
Less: Fee waivers and expense reimbursements by
advisor, administrator, and distributor............. (162,714) (83,009) (135,127) (22,782) (56,054)
NET EXPENSES.......................................... 664,682 669,684 676,382 187,615 279,011
NET INVESTMENT INCOME................................. 6,246,962 4,999,629 4,924,974 41,182 2,472,760
REALIZED AND UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from investment and
futures transactions................................ 195,771 48,386 338,181 3,034,664 615,289
Net change in unrealized appreciation (depreciation)
from investments and futures transactions........... 2,469,238 4,456,673 2,298,300 (1,923,069) (1,173,319)
NET REALIZED AND UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS......................................... 2,665,009 4,505,059 2,636,481 1,111,595 (558,030)
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.......................................... $ 8,911,971 $9,504,688 $7,561,455 $1,152,777 $1,914,730
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period from October 21, 1996 (commencement of operations) through
February 28, 1997.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
39
<PAGE> 40
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND EQUITY INCOME FUND
-------------------------------------- --------------------------------------
SIX MONTHS ENDED FOR THE YEAR ENDED SIX MONTHS ENDED FOR THE YEAR ENDED
FEBRUARY 28, 1997 AUGUST 31, 1996 FEBRUARY 28, 1997 AUGUST 31, 1996
----------------- ------------------ ----------------- ------------------
(UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income.................. $ 2,865,465 $ 2,752,816 $ 2,452,925 $ 4,567,270
Net realized gains (losses) from
investment and futures
transactions......................... 19,874,450 9,243,395 2,303,484 4,887,676
Net change in unrealized appreciation
(depreciation) from investments and
futures.............................. 18,432,182 8,360,600 15,922,465 7,360,212
Net increase in net assets resulting from
operations............................... 41,172,097 20,356,811 20,678,874 16,815,158
Dividends to shareholders from net
investment income:
Pilot Shares........................... (2,819,394) (2,705,578) (2,409,219) (4,386,503)
Class A Shares......................... (48,162) (35,542) (41,737) (29,116)
Class B Shares......................... (19,194) (18,351) (51,871) (46,964)
Total dividends to shareholders from net
investment income........................ (2,886,750) (2,752,816) (2,502,827) (4,462,583)
Dividends to shareholders from net
realized gains:
Pilot Shares........................... (12,670,785) (3,103,049) (3,359,003) (2,661,530)
Class A Shares......................... (225,850) (26,472) (61,767) (10,717)
Class B Shares......................... (175,243) (32,042) (104,256) (28,820)
TOTAL DIVIDENDS TO SHAREHOLDERS FROM NET
REALIZED GAINS........................... (13,071,878) (3,161,563) (3,525,026) (2,701,067)
Portfolio share transactions:
Proceeds from shares issued............ 44,602,967 86,745,491 11,478,020 35,891,753
Proceeds from reorganization........... 168,914,227 -- -- --
Dividends reinvested................... 8,596,413 1,030,725 616,556 408,568
Cost of shares redeemed................ (63,181,679) (22,128,731) (7,085,443) (10,464,963)
Net increase in net assets from Portfolio
transactions............................. 158,931,928 65,647,485 5,009,133 25,835,358
Total increase............................ 184,145,397 80,083,262 19,660,154 35,486,866
NET ASSETS
Beginning of period....................... 190,864,576 110,781,314 135,117,872 99,631,006
End of period(b).......................... $ 375,009,973 $190,864,576 $ 154,778,026 $135,117,872
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SMALL CAPITALIZATION
EQUITY FUND
--------------------------------------
FOR THE PERIOD
DECEMBER 12, 1995
SIX MONTHS ENDED THROUGH AUGUST 31,
FEBRUARY 28, 1997 1996(A)
----------------- ------------------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income.................. $ 278,133 $ 321,840
Net realized gains (losses) from
investment and futures
transactions......................... (1,430,716) 581,207
Net change in unrealized appreciation
(depreciation) from investments and
futures.............................. 8,463,495 621,487
Net increase in net assets resulting from
operations............................... 7,310,912 1,524,534
Dividends to shareholders from net
investment income:
Pilot Shares........................... (279,331) (310,641)
Class A Shares......................... (6,490) (5,306)
Class B Shares......................... (591) (1,071)
Total dividends to shareholders from net
investment income........................ (286,412) (317,018)
Dividends to shareholders from net
realized gains:
Pilot Shares........................... (357,390) --
Class A Shares......................... (12,306) --
Class B Shares......................... (9,752) --
TOTAL DIVIDENDS TO SHAREHOLDERS FROM NET
REALIZED GAINS........................... (379,448) --
Portfolio share transactions:
Proceeds from shares issued............ 31,939,507 75,500,924
Proceeds from reorganization........... -- --
Dividends reinvested................... 118,417 61,309
Cost of shares redeemed................ (2,922,706) (1,796,681)
Net increase in net assets from Portfolio
transactions............................. 29,135,218 73,765,552
Total increase............................ 35,780,270 74,973,068
NET ASSETS
Beginning of period....................... 74,973,068 --
End of period(b).......................... $ 110,753,338 $ 74,973,068
- ------------------------------------------
</TABLE>
(a) Period from commencement of operations.
(b) Includes undistributed (distributions in excess of) net investment income of
$1,120, $22,405, $76,857, $126,759, ($948), $7,331, $22,072, $22,072,
$22,072, $22,512, ($151,486), ($151,486), $22,148, $22,150, ($1,090), $0,
respectively.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
40
<PAGE> 41
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets(continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERMEDIATE
U.S. GOVERNMENT SECURITIES FUND U.S. GOVERNMENT SECURITIES FUND
-------------------------------------- --------------------------------------
SIX MONTHS ENDED FOR THE YEAR ENDED SIX MONTHS ENDED FOR THE YEAR ENDED
FEBRUARY 28, 1997 AUGUST 31, 1996 FEBRUARY 28, 1997 AUGUST 31, 1996
----------------- ------------------ ----------------- ------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income...................... $ 4,153,339 $ 7,859,179 $ 6,246,962 $ 11,652,581
Net realized gains (losses) from investment
transactions............................. 955,364 6,920,545 195,771 3,434,313
Net change in unrealized appreciation
(depreciation) from investments.......... 1,700,923 (9,917,288) 2,469,238 (8,921,949)
Net increase in net assets resulting from
operations................................... 6,809,626 4,862,436 8,911,971 6,164,945
Dividends to shareholders from net investment
income:
Pilot Shares............................... (4,094,156) (7,807,800) (6,212,653) (11,613,105)
Class A Shares............................. (23,663) (17,876) (33,869) (39,476)
Class B Shares............................. (35,520) (33,503) -- --
Total dividends to shareholders from net
investment income............................ (4,153,339) (7,859,179) (6,246,522) (11,652,581)
Dividends to shareholders in excess of net
investment income:
Pilot Shares............................... -- -- -- --
Class A Shares............................. -- -- -- --
Class B Shares............................. -- -- -- --
Total dividends to shareholders from net
investment income............................ -- -- -- --
Dividends to shareholders from net realized
gains:
Pilot Shares............................... (7,085,032) (5,585,839) (3,292,699) (920,212)
Class A Shares............................. (55,087) (6,785) (17,333) (2,910)
Class B Shares............................. (76,740) (18,425) -- --
TOTAL DIVIDENDS TO SHAREHOLDERS FROM NET
REALIZED GAINS............................... (7,216,859) (5,611,049) (3,310,032) (923,122)
Dividends to shareholders in excess of net
realized gains:
Pilot Shares............................... -- -- (121,572) --
Class A Shares............................. -- -- (640) --
Class B Shares............................. -- -- -- --
TOTAL DIVIDENDS TO SHAREHOLDERS FROM NET
REALIZED GAINS............................... -- -- (122,212) --
Portfolio share transactions:
Proceeds from shares issued................ 20,929,929 35,505,082 40,047,483 106,677,263
Proceeds from reorganization............... -- -- -- --
Proceeds from shares issued to shareholders
in reinvestment of dividends............. 565,228 318,249 1,179,796 434,942
Cost of shares redeemed.................... (11,035,947) (17,773,679) (28,395,238) (35,679,621)
Net increase in net assets from Portfolio
transactions................................. 10,459,210 18,049,652 12,832,041 71,432,584
Total increase................................ 5,898,638 9,441,860 12,065,246 65,021,826
NET ASSETS
Beginning of period........................... 146,935,469 137,493,609 230,961,954 165,940,128
End of period................................. $ 152,834,107 $146,935,469 $ 243,027,200 $230,961,954
- ----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
MUNICIPAL BOND FUND
---------------------------------------
SIX MONTHS ENDED FOR THE YEAR ENDED
FEBRUARY 28, 1997 AUGUST 31, 1996
----------------- -------------------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income...................... $ 4,999,629 $ 8,791,712
Net realized gains (losses) from investment
transactions............................. 48,386 1,327,403
Net change in unrealized appreciation
(depreciation) from investments.......... 4,456,673 (1,391,889)
Net increase in net assets resulting from
operations................................... 9,504,688 8,727,226
Dividends to shareholders from net investment
income:
Pilot Shares............................... (4,922,198) (8,564,690)
Class A Shares............................. (47,799) (43,027)
Class B Shares............................. (29,632) (32,509)
Total dividends to shareholders from net
investment income............................ (4,999,629) (8,640,226)
Dividends to shareholders in excess of net
investment income:
Pilot Shares............................... -- (150,162)
Class A Shares............................. -- (754)
Class B Shares............................. -- (570)
Total dividends to shareholders from net
investment income............................ -- (151,486)
Dividends to shareholders from net realized
gains:
Pilot Shares............................... (1,328,256) (478,674)
Class A Shares............................. (14,198) (1,491)
Class B Shares............................. (10,468) (1,732)
TOTAL DIVIDENDS TO SHAREHOLDERS FROM NET
REALIZED GAINS............................... (1,352,922) (481,897)
Dividends to shareholders in excess of net
realized gains:
Pilot Shares............................... -- --
Class A Shares............................. -- --
Class B Shares............................. -- --
TOTAL DIVIDENDS TO SHAREHOLDERS FROM NET
REALIZED GAINS............................... -- --
Portfolio share transactions:
Proceeds from shares issued................ 17,425,380 57,950,418
Proceeds from reorganization............... -- --
Proceeds from shares issued to shareholders
in reinvestment of dividends............. 187,968 122,269
Cost of shares redeemed.................... (8,811,949) (18,294,826)
Net increase in net assets from Portfolio
transactions................................. 8,801,399 39,777,861
Total increase................................ 11,953,536 39,231,478
NET ASSETS
Beginning of period........................... 190,952,644 151,721,166
End of period................................. $ 202,906,180 $ 190,952,644
- ----------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
41
<PAGE> 42
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets(continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH
FUND
INTERMEDIATE --------------------
MUNICIPAL BOND FUND FOR THE PERIOD
---------------------------------------- OCTOBER 21, 1996
SIX MONTHS ENDED FOR THE YEAR ENDED THROUGH FEBRUARY 28,
FEBRUARY 28, 1997 AUGUST 31, 1996 1997(A)
----------------- ------------------ --------------------
(UNAUDITED)
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 4,924,974 $ 9,570,378 $ 41,182
Net realized gains (losses) from investment transactions...... 338,181 626,264 3,034,664
Net change in unrealized appreciation (depreciation) from
investments................................................. 2,298,300 (3,240,645) (1,923,069)
Net increase in net assets resulting from operations............. 7,561,455 6,955,997 1,152,777
Dividends to shareholders from net investment income:
Pilot Shares.................................................. (4,904,410) (9,554,825) (41,369)
Class A Shares................................................ (20,566) (15,553) (4)
Class B Shares................................................ -- -- --
Total dividends to shareholders from net investment income....... (4,924,976) (9,570,378) (41,373)
Dividends to shareholders in excess of net investment income:
Pilot Shares.................................................. -- -- (873)
Class A Shares................................................ -- -- (26)
Class B Shares................................................ -- -- --
Total dividends to shareholders from net investment income....... -- -- (899)
Dividends to shareholders from net realized gains:
Pilot Shares.................................................. (700,580) (457,443) --
Class A Shares................................................ (3,338) (392) --
Class B Shares................................................ -- -- --
TOTAL DIVIDENDS TO SHAREHOLDERS FROM NET REALIZED GAINS.......... (703,918) (457,835) --
Dividends to shareholders in excess of net realized gains:
Pilot Shares.................................................. -- -- --
Class A Shares................................................ -- -- --
Class B Shares................................................ -- -- --
TOTAL DIVIDENDS TO SHAREHOLDERS FROM NET REALIZED GAINS.......... -- -- --
Portfolio share transactions:
Proceeds from shares issued................................... 21,750,293 61,811,217 8,374,969
Proceeds from reorganization.................................. -- -- 52,910,515
Proceeds from shares issued to shareholders in reinvestment of
dividends................................................... 218,220 136,276 37,338
Cost of shares redeemed....................................... (21,512,693) (35,651,223) (12,347,906)
Net increase in net assets from Portfolio transactions........... 455,820 26,296,270 48,974,916
Total increase................................................... 2,388,381 23,224,054 50,085,421
NET ASSETS
Beginning of period.............................................. 219,665,484 196,441,430 --
End of period.................................................... $ 222,053,865 $219,665,484 $ 50,085,421
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
DIVERSIFIED BOND
INCOME FUND
--------------------
FOR THE PERIOD
OCTOBER 21, 1996
THROUGH FEBRUARY 28,
1997(A)
--------------------
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 2,472,760
Net realized gains (losses) from investment transactions...... 615,289
Net change in unrealized appreciation (depreciation) from
investments................................................. (1,173,319)
Net increase in net assets resulting from operations............. 1,914,730
Dividends to shareholders from net investment income:
Pilot Shares.................................................. (2,466,755)
Class A Shares................................................ (2,426)
Class B Shares................................................ (3,579)
Total dividends to shareholders from net investment income....... (2,472,760)
Dividends to shareholders in excess of net investment income:
Pilot Shares.................................................. --
Class A Shares................................................ --
Class B Shares................................................ --
Total dividends to shareholders from net investment income....... --
Dividends to shareholders from net realized gains:
Pilot Shares.................................................. (368,543)
Class A Shares................................................ (489)
Class B Shares................................................ (811)
TOTAL DIVIDENDS TO SHAREHOLDERS FROM NET REALIZED GAINS.......... (369,843)
Dividends to shareholders in excess of net realized gains:
Pilot Shares.................................................. --
Class A Shares................................................ --
Class B Shares................................................ --
TOTAL DIVIDENDS TO SHAREHOLDERS FROM NET REALIZED GAINS.......... --
Portfolio share transactions:
Proceeds from shares issued................................... 17,818,242
Proceeds from reorganization.................................. 131,033,583
Proceeds from shares issued to shareholders in reinvestment of
dividends................................................... 2,429,071
Cost of shares redeemed....................................... (42,103,480)
Net increase in net assets from Portfolio transactions........... 109,177,416
Total increase................................................... 108,249,543
NET ASSETS
Beginning of period.............................................. --
End of period.................................................... $108,249,543
- -----------------------------------------------------------------
</TABLE>
(a) Period from commencement of operations.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
42
<PAGE> 43
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Notes to Financial Statements
February 28, 1997
==========================================================
1. GENERAL
The Pilot Growth and Income Fund, Pilot Equity Income Fund, Pilot Small
Capitalization Equity Fund, Pilot U.S. Government Securities Fund, Pilot
Intermediate U.S. Government Securities Fund, Pilot Municipal Bond Fund, Pilot
Intermediate Municipal Bond Fund, Pilot Diversified Bond Income Fund, and Pilot
Growth Fund are separate portfolios (individually, a "Portfolio"; collectively,
the "Portfolios") of The Pilot Funds (the "Fund"). The Fund is a Massachusetts
business trust registered under the Investment Company Act of 1940, as amended
(the 1940 Act), as an open-end management investment company. All of the
Portfolios are diversified. The Fund currently offers fourteen Portfolios. The
accompanying financial statements are those of the nine portfolios only.
The Portfolios each offer three classes of shares: Pilot Shares, Class A Shares,
and Class B Shares. Each class of shares is substantially the same, except that
Class A Shares and Class B Shares bear the fees payable under the Fund's
Distribution Plan. Class B Shares of Intermediate U.S. Government Securities
Fund and Intermediate Municipal Bond Fund have not been sold as of February 28,
1997. Diversified Bond Income Fund and Growth Fund commenced operations on
October 21, 1996 by offering Pilot Shares, Class A Shares, and Class B Shares.
On August 29, 1996 Boatmen's Bancshares Inc. ("Bancshares") the parent of
Boatmen's Trust Company ("Boatmen's"), the Funds investment adviser, entered
into an Agreement and Plan of Merger (the "Merger Agreement"), with NationsBank
Corporation. The Merger Agreement provides that Bancshares will merge with and
into a wholly owned subsidiary of NationsBank Corporation. The merger was
consummated in January, 1997.
The Fund entered into an Agreement and Plan of Reorganization (the
"Reorganization Agreement") with Nations Fund, Inc., Nations Fund Trust and
Nations Fund Portfolio, Inc. ("The Nations Funds"). The agreement contemplates
that each of fourteen investment portfolios of the Fund will transfer
substantially all of their assets and liabilities of the Fund to a corresponding
Portfolio of the Nations Funds. The Board of Trustees of the Fund and the Fund's
shareholders, at a special shareholder meeting held December 18, 1996, each
approved the Reorganization Agreement to become effective on or about May 16,
1997.
Growth and Income Fund seeks capital appreciation and current income. Equity
Income Fund seeks current income and, secondarily, capital appreciation. Small
Capitalization Equity Fund and Growth Fund seek long-term capital growth. U.S.
Government Fund and Intermediate U.S. Government Fund each seek total return and
preservation of capital. Municipal Bond Fund and Intermediate Municipal Bond
Fund seek current income free of federal income tax as is consistent with
preservation of capital. Diversified Bond Income seeks current income and,
secondarily, total return.
Boatmen's serves as the Fund's custodian. Nationsbanc Advisor Inc. serves as the
investment advisor of the Funds (See Note 3). BISYS Fund Services Limited
Partnership ("BISYS") serves as the Fund's administrator and Pilot Funds
Distributor Inc. (the "Distributor"), an affiliate of BISYS, serves as the
distributor of the Fund's shares. BISYS is a wholly-owned subsidiary of The
BISYS Group, Inc.
The Pilot Growth and Income Fund, Pilot Growth Fund, and Pilot Diversified Bond
Income Fund Financial Statements have been audited for the period ending
February 28, 1997. Pilot Equity Income Fund, Pilot Small Capitalization Equity
Fund, Pilot U.S. Government Securities Fund, Pilot Intermediate U.S. Government
Securities Fund, Pilot Municipal Bond Fund, and Pilot Intermediate Municipal
Bond Fund Financial Statements are unaudited for the period ending February 28,
1997.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies consistently
followed by the Portfolios in the preparation of the financial statements. The
policies are in conformity with generally accepted accounting principles.
==========================================================
43
<PAGE> 44
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
February 28, 1997
==========================================================
The preparation of financial statements 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 for the period. Actual results could differ from those estimates.
A. Investment Valuation
Portfolio securities are valued as follows: (a) securities that are traded on
any U.S. or foreign stock exchange or the National Association of Securities
Dealers Automated Quotation System ("NASDAQ") are valued at the last sale price
on that exchange or NASDAQ prior to the Portfolio's valuation time; if no sale
occurs, securities traded on a U.S. exchange or NASDAQ are valued at the mean
between the closing bid and closing asked price and securities traded on a
foreign exchange will be valued at the official bid price; (b) over-the-counter
stocks not quoted on NASDAQ are valued at the last sale price prior to the
Portfolio's valuation time or, if no sale occurs, at the mean between the last
bid and asked price; (c) debt securities are valued by a pricing service
selected by Boatmen's and approved by the Trustees of the Fund; these prices
reflect broker/dealer supplied valuations and electronic data processing
techniques if those prices are deemed by Boatmen's to be representative of
market values at the Portfolio's valuation time; and (d) all other securities
and assets, for which quotations supplied are not representative of current
market values or for which quotations are not readily available, are valued at
fair value as determined in good faith pursuant to procedures established by the
Trustees of the Fund. Money market instruments held by a Portfolio with a
remaining maturity of sixty days or less are valued at amortized cost which
approximates market value.
B. Repurchase Agreements
The custodian for the Portfolios and other banks acting in a subcustodian
capacity take possession of the collateral pledged for investments in repurchase
agreements. The underlying collateral is valued daily on a mark-to-market basis
to determine that the value, including accrued interest, is not less than 102%
of the repurchase price, including accrued interest. In the event of the
seller's default of the obligation to repurchase, the Portfolios have the right
to liquidate the collateral and apply the proceeds in satisfaction of the
obligation. Under certain circumstances, in the event of default or bankruptcy
by the other party to the agreement, realization and/or retention of the
collateral may be subject to legal proceedings.
C. Futures Contracts
The Small Capitalization Equity Fund and the Growth Fund may enter into futures
contracts on securities and futures based on securities indices. The Portfolio
will do so to hedge against anticipated changes in securities values that would
otherwise have an adverse effect upon the value of portfolio securities or upon
securities to be acquired.
Futures contracts involve brokerage costs, which may be less than 1% of the
contract price, and require the Portfolio to deposit as margin into a segregated
custodial account an amount of cash or liquid securities equal to approximately
2% to 5% of the value of each futures contract. The Portfolio's position in the
futures market will be marked-to-market on a daily basis; the Portfolio may
subsequently be required to make "variation" margin payments depending upon
whether its futures position declines or rises in value.
Positions taken in the futures markets are not usually held until the expiration
of the contract but, instead, are normally liquidated through offsetting
transactions, which may result in a profit or a loss. Nevertheless, the
Portfolio may instead make or take delivery of the underlying securities
whenever it appears economically advantageous for it to do so.
Futures contracts on securities indices do not require the physical delivery of
securities, but merely provide for gains and losses resulting from changes in
the market value of a contract. On the contract's expiration date a final cash
settlement occurs and the futures positions are closed out.
==========================================================
44
<PAGE> 45
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
February 28, 1997
==========================================================
Changes in the market value of a particular futures contract reflect changes in
the value of the securities comprising the index on which the futures contract
is based.
D. Securities Transactions and Investment Income
Securities transactions are recorded on the trade date. Realized gains and
losses from sales of investments are calculated on the identified cost basis.
Dividend income is recorded on the ex-dividend date. Interest income, including
accretion of discounts and amortization of premiums on investments, is accrued
daily. Investment income of each Portfolio is allocated to the separate classes
of shares based upon their relative net assets.
E. Dividends to Shareholders
Dividends of U.S. Government Securities Fund, Intermediate U.S. Government
Securities Fund, Municipal Bond Fund, Intermediate Municipal Bond Fund, and
Diversified Bond Income Fund are declared daily to shareholders of record at the
close of business on the day of declaration and paid monthly. Dividends of
Growth and Income Fund, Equity Income Fund, Growth Fund and Small Capitalization
Equity Fund are declared and paid monthly to shareholders of record at the close
of business on the day of declaration. Distributions of net realized gains, if
any, will be paid at least annually. However, to the extent that net realized
gains of a Portfolio can be offset by capital loss carryovers, such gains will
not be distributed. Dividends and distributions are recorded by the Portfolios
on the ex-dividend date.
F. Federal Taxes
It is each Portfolio's policy to comply or continue to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute each year substantially all of its investment
company taxable and tax-exempt income to its shareholders. Accordingly, no
federal tax provisions are required.
G. Organizational Expenses
Costs incurred by the Fund in connection with its organization and registration
of shares have been deferred and are amortized using the straight line method
over a period not to exceed five years from the commencement of the public
offering of shares of the Portfolios.
H. Expenses
Expenses incurred by the Fund that do not specifically relate to an individual
portfolio of the Fund are allocated to the portfolios based on each portfolio's
relative net assets. The expenses of each Portfolio (other than expenses
incurred pursuant to the Distribution Plans) are allocated to the separate
classes of shares based upon their relative net assets.
3. AGREEMENTS AND TRANSACTIONS WITH AFFILIATES
A. Advisory Agreement
Nationsbanc Advisor Inc. ("Nations") currently serves as the Investment Adviser
for each Portfolio pursuant to separate Investment Advisory Agreements and is
responsible for managing the investment operations of the Portfolios. Prior to
January 7, 1997 Boatmen's Served as the Investment Adviser. For their services,
the respective adviser has been entitled to a fee, accrued daily and paid
monthly, at an annual rate equal to 1.00% of the average daily net assets of the
Small Capitalization Equity Fund; 0.75% of the average daily net assets of each
of the Growth and Income Fund, Growth Fund and the Equity Income Fund; and 0.55%
of the average daily net assets of each of the U.S. Government Securities Fund,
the Intermediate U.S. Government Securities Fund, the Municipal Bond Fund, the
Intermediate Municipal Bond Fund, and the Diversified Bond Income Fund.
Nations has voluntarily agreed to limit the fees it receives from each Portfolio
to the following annual rates: 0.75% of the average daily net assets of the
Small Capitalization Equity Fund; 0.50% of the average daily net assets of each
of the Growth and Income Fund and the Equity Income Fund; 0.45% of the average
daily net assets of the Municipal Bond
==========================================================
45
<PAGE> 46
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
February 28, 1997
==========================================================
Fund; 0.40% of the average daily net assets of each of the U.S. Government
Securities Fund, the Intermediate Municipal Bond Fund and the Diversified Bond
Income Fund; and 0.35% of the average daily net assets of the Intermediate U.S.
Government Securities Fund.
Additionally, Nations has voluntarily agreed to reimburse each of the
Portfolio's expenses to the extent that such expenses exceed the following
limits as percentages of average daily net assets (excluding distribution fees
for Class A Shares and Class B Shares): 1.00% of the Small Capitalization Equity
Fund and the Growth Fund and 0.75% for the Diversified Bond Income Fund. For the
period ended February 28, 1997, Boatmen's waived fees and/or reimbursed expenses
in the following amounts:
<TABLE>
<S> <C>
Growth and Income Fund........................... $320,582
Equity Income Fund............................... 125,468
Small Capitalization Equity Fund................. 136,750
U.S. Government Securities Fund.................. 76,562
Intermediate U.S. Government Securities Fund..... 162,714
Municipal Bond Fund.............................. 83,009
Intermediate Municipal Bond Fund................. 135,127
Growth Fund...................................... 22,782
Diversified Bond Fund............................ 56,054
</TABLE>
B. Administration Agreement
The Portfolios have entered into an Administration Agreement with BISYS.
Pursuant to the terms of this agreement, BISYS is responsible for assisting in
all aspects of the operations of each of the Portfolios. For its services, BISYS
is entitled to a fee, accrued daily and paid monthly, at an annual rate of 0.115
of 1% of the first $1.5 billion of the aggregate average net assets of all of
the portfolios constituting the Fund, plus 0.110 of 1% of the next $1.5 billion
of such assets, plus 0.1075 of 1% of such assets in excess of $3.0 billion. For
the period ended February 28, 1997, BISYS voluntarily waived a portion of its
fees as administrator. The fee waivers were equal to the following amount.
<TABLE>
<S> <C>
Small Capitalization Equity Fund.................. $45,158
</TABLE>
C. Distribution Agreements
The Portfolios adopted Distribution Plans pursuant to Rule 12b-1 under the 1940
Act for its Class A and Class B Shares. Under these Plans, the Distributor
receives payments for distribution and support services. The Distribution Plan
for Class A Shares authorizes payments to the Distributor and service
organizations for personal services provided to Class A shareholders and/or the
maintenance of shareholder accounts.
Payments under the Distribution Plan for Class A Shares may not exceed 0.25% (on
an annual basis) of the average daily net assets of the shares to which such
Plan relates. If more money is due the Distributor than it can collect in any
month because of this limitation, the unpaid amount may be carried forward until
it can be paid. Similarly, if in any month the Distributor does not expend the
entire amount to which it would otherwise be entitled, this amount may be used
as a credit and drawn upon to permit the payment of expenses in the future.
Neither of these amounts, however, is payable beyond the fiscal year in which
they accrue.
Distribution payments under the Distribution Plan for Class B Shares may not
exceed 1.00% (on an annual basis) of the average daily net assets of the Class B
Shares. Not more than 0.25% of such value will be used to compensate service
organizations for personal services provided to Class B shareholders and/or the
maintenance of shareholder accounts. Not more than 0.75% of such value will be
paid to the Distributor as reimbursement for commissions and transaction fees as
well as expenses related to other promotional and distribution activities.
Actual distribution expenses paid by the Distributor with respect to Class B
Shares for any given year may exceed the distribution fees and contingent
deferred sales charges received with respect to those Shares. These excess
expenses may be reimbursed by a Portfolio or its Class B Shareholders out of
contingent deferred sales charges and distribution payments in future years as
long as the Distribution Plan for Class B Shares is in effect.
==========================================================
46
<PAGE> 47
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
February 28, 1997
==========================================================
The Distributor has voluntarily agreed to limit the fees it receives on Class A
Shares from the following Portfolios to the following annual rates: 0.20 of 1%
of the average daily net asset value of the U.S. Government Securities Fund and
the Municipal Bond Fund; and 0.15 of 1% of the average daily net asset value of
the Intermediate U.S. Government Securities Fund and the Intermediate Municipal
Bond Fund.
D. Transfer Agent Agreement
BISYS Fund Services, Inc. (the "Transfer Agent"), a wholly-owned subsidiary of
The BISYS Group, Inc. is the transfer agent for all classes of the Portfolios.
Prior to April 26, 1996, Primary Fund Services Corporation was the transfer
agent for Class A Shares and Class B Shares. The Portfolios incurred fees and
expenses of $170,022 for the transfer agent services provided.
E. Custodian Agreement
Boatmen's is the custodian responsible for holding the investments purchased by
the Portfolios. In connection with the Custodian Agreement with Boatmen's, the
Portfolios incurred expenses of approximately $63,400.
G. Fund Accounting Agreement
BISYS Fund Services, Inc. Is responsible for the Fund Accounting for the
Portfolios. In connection with the Fund Accounting Agreement with BISYS, the
Portfolios incurred expenses of approximately $143,391.
4. SECURITIES TRANSACTIONS
For the period ended February 28, 1997, the cost of purchases and the proceeds
from sales or maturities of portfolio securities (excluding short-term
investments) were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ -----------
<S> <C> <C>
Growth and Income Fund............ $ 33,381,904 $70,443,477
Equity Income Fund................ 10,037,993 13,138,053
Small Capitalization Equity
Fund............................ 53,831,071 25,744,944
U.S. Government Securities
Fund**.......................... 26,005,937 20,602,227
Intermediate U.S. Government
Securities Fund**............... 41,373,359 38,526,836
Municipal Bond Fund............... 16,840,069 7,970,847
Intermediate Municipal Bond
Fund............................ 10,103,382 15,545,531
Growth Fund*...................... 15,052,637 18,131,612
Diversified Bond Fund*** *........ 47,378,332 71,669,083
</TABLE>
- ---------------
* For the period October 21, 1996 (commencement of operations) to February 28,
1997.
** 100% of purchases and sales are of U.S. Government securities.
*** Includes purchases and sales of U.S. Government securities for the
Diversified Bond Income Fund of $26,747,807 and $59,449,169, respectively.
At February 28, 1997, the cost of each Portfolio's securities for federal income
tax purposes was substantially the same as for financial reporting purposes.
Accordingly, the Portfolio's had the following amounts of net unrealized
appreciation and depreciation:
<TABLE>
<CAPTION>
APPRECIATION DEPRECIATION NET
------------ ------------ ----------
<S> <C> <C> <C>
Growth and Income
Fund................ 71,954,397 9,200,352 62,754,046
Equity Income Fund.... 35,791,614 2,010,045 33,781,569
Small Capitalization
Equity Fund......... 13,870,351 4,829,056 9,041,295
U.S. Government
Securities Fund..... 1,200,279 976,435 223,844
Intermediate U.S.
Government
Securities Fund..... 1,287,231 2,565,968 (1,278,737)
Municipal Bond Fund... 12,402,424 346,208 12,056,216
Intermediate Municipal
Bond Fund........... 7,858,890 33,576 7,892,466
Growth Fund........... 9,993,622 994,446 8,999,176
Diversified Bond
Income Fund......... 512,045 539,892 (27,847)
</TABLE>
==========================================================
47
<PAGE> 48
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Notes to Financial Statements(continued)
February 28, 1997
- --------------------------------------------------------------------------------
5. CAPITAL SHARE TRANSACTIONS
Transactions in shares of the Portfolios are as follows (000 omitted):
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND EQUITY INCOME FUND
----------------------------- -----------------------------
FOR THE PERIOD FOR THE PERIOD
ENDED YEAR ENDED ENDED YEAR ENDED
FEBRUARY 28, AUGUST 31, FEBRUARY 28, AUGUST 31,
1997 1996 1997 1996
-------------- ---------- -------------- ----------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Pilot Shares:
Proceeds from shares issued................................ $ 18,404 $ 79,546 $ 8,786 31,927
Proceeds from reorganization............................... 168,914 -- -- --
Dividends reinvested....................................... 8,106 920 385 298
Cost of shares redeemed.................................... (62,282) (21,705) (6,846) (10,117)
-------- -------- ------- --------
Change in net assets from Pilot share transactions......... $132,742 $ 58,761 $ 2,325 $ 22,108
======== ======== ======= ========
Class A Shares (b):
Proceeds from shares issued................................ $ 1,962 $ 4,152 $ 1,495 $ 1,498
Dividends reinvested....................................... 263 61 89 37
Cost of shares redeemed.................................... (361) (348) (158) (233)
-------- -------- ------- --------
Change in net assets from Class A share transactions....... $ 1,855 $ 3,865 $ 1,426 $ 1,302
======== ======== ======= ========
Class B Shares (c):
Proceeds from shares issued................................ $ 1,116 $ 3,048 $ 1,198 2,467
Dividends reinvested....................................... 194 50 143 74
Cost of shares redeemed.................................... (139) (76) (83) (116)
-------- -------- ------- --------
Change in net assets from Class B share transactions....... $ 1,171 $ 3,022 $ 1,258 $ 2,425
======== ======== ======= ========
SHARE TRANSACTIONS:
Pilot Shares:
Issued..................................................... 3,006 6,320 670 2,586
Reorganization............................................. 12,402
Reinvested................................................. 584 74 29 25
Redeemed................................................... (4,530) (1,702) (518) (820)
-------- -------- ------- --------
Change in Pilot Shares..................................... 11,462 4,692 181 1,791
======== ======== ======= ========
Class A Shares (a):
Issued..................................................... 143 324 113 120
Reinvested................................................. 19 5 7 3
Redeemed................................................... (26) (27) (12) (18)
-------- -------- ------- --------
Change in Class A Shares................................... 136 302 108 105
======== ======== ======= ========
Class B Shares (b):
Issued..................................................... 82 241 90 198
Reinvested................................................. 14 4 10 6
Redeemed................................................... (10) (6) (6) (9)
-------- -------- ------- --------
Change in Class B Shares................................... 86 239 94 195
======== ======== ======= ========
<CAPTION>
SMALL CAPITALIZATION
EQUITY FUND
-------------------------------
DECEMBER 12,
FOR THE PERIOD 1995
ENDED THROUGH
FEBRUARY 28, AUGUST 31,
1997 1996(A)
-------------- ------------
<S> <C> <C>
CAPITAL TRANSACTIONS:
Pilot Shares:
Proceeds from shares issued................................ $ 30,426 70,989
Proceeds from reorganization............................... -- --
Dividends reinvested....................................... 89 56
Cost of shares redeemed.................................... (2,661) (1,743)
------- -------
Change in net assets from Pilot share transactions......... $ 27,854 $ 69,302
======= =======
Class A Shares (b):
Proceeds from shares issued................................ $ 882 $ 2,643
Dividends reinvested....................................... 19 4
Cost of shares redeemed.................................... (145) (42)
------- -------
Change in net assets from Class A share transactions....... $ 756 $ 2,605
======= =======
Class B Shares (c):
Proceeds from shares issued................................ $ 631 $ 1,869
Dividends reinvested....................................... 10 1
Cost of shares redeemed.................................... (120) (11)
------- -------
Change in net assets from Class B share transactions....... $ 521 $ 1,859
======= =======
SHARE TRANSACTIONS:
Pilot Shares:
Issued..................................................... 2,643 6,777
Reorganization.............................................
Reinvested................................................. 8 6
Redeemed................................................... (230) (166)
------- -------
Change in Pilot Shares..................................... 2,421 6,617
======= =======
Class A Shares (a):
Issued..................................................... 77 249
Reinvested................................................. 2 --
Redeemed................................................... (13) (4)
------- -------
Change in Class A Shares................................... 66 245
======= =======
Class B Shares (b):
Issued..................................................... 56 177
Reinvested................................................. 1 --
Redeemed................................................... (11) (1)
------- -------
Change in Class B Shares................................... 46 176
======= =======
</TABLE>
- ---------------
(a) Class A Shares commenced operations February 7, 1995 and for the Growth and
Income Fund.
(b) Class B shares commenced operations November 11, 1994 for the Growth and
Income Fund.
- --------------------------------------------------------------------------------
48
<PAGE> 49
(This page intentionally left blank)
49
<PAGE> 50
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Notes to Financial Statements(continued)
February 28, 1997
- --------------------------------------------------------------------------------
5. CAPITAL SHARE TRANSACTIONS (continued)
Transactions in shares of the Portfolios are as follows (000 omitted):
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES INTERMEDIATE U.S. GOVERNMENT
FUND SECURITIES FUND
---------------------------- ----------------------------
FOR THE PERIOD YEAR ENDED FOR THE PERIOD YEAR ENDED
ENDED FEBRUARY AUGUST 31, ENDED FEBRUARY AUGUST 31,
28, 1997 1996 28, 1997 1996
-------------- ---------- -------------- ----------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Pilot Shares:
Proceeds from shares issued............................. $ 20,008 33,655 39,430 $106,052
Proceeds from reorganization............................ -- -- -- --
Dividends reinvested.................................... 394 261 1,142 416
Cost of shares redeemed................................. (10,880) (17,579) (28,092) (35,490)
-------- -------- ------- --------
Change in net assets from Pilot share transactions...... $ 9,522 $ 16,337 12,480 $ 70,978
======== ======== ======= ========
Class A Shares (b):
Proceeds from shares issued............................. $ 521 690 $ 617 $ 625
Dividends reinvested.................................... 75 16 38 19
Cost of shares redeemed................................. (30) (143) (304) (189)
-------- -------- ------- --------
Change in net assets from Class A share transactions.... $ 566 $ 563 $ 351 $ 455
======== ======== ======= ========
Class B Shares (c):
Proceeds from shares issued............................. $ 401 $ 1,160 $ -- $ --
Dividends reinvested.................................... 96 42 -- --
Cost of shares redeemed................................. (126) (52) -- --
-------- -------- ------- --------
Change in net assets from Class B share transactions.... $ 371 $ 1,150 $ -- $ --
======== ======== ======= ========
SHARE TRANSACTIONS:
Pilot Shares:
Issued.................................................. 1,924 3,091 3,849 10,181
Reorganization.......................................... -- -- -- --
Reinvested.............................................. 38 23 112 39
Redeemed................................................ (1,031) (1,590) (2,741) (3,421)
-------- -------- ------- --------
Change in Pilot Shares.................................. 931 1,524 1,220 6,799
-------- -------- ------- --------
Class A Shares (b):
Issued.................................................. 48 64 60 60
Reinvested.............................................. 7 1 4 2
Redeemed................................................ (3) (13) (30) (18)
-------- -------- ------- --------
Change in Class A Shares................................ 52 52 34 44
======== ======== ======= ========
Class B Shares (c):
Issued.................................................. 38 106 -- --
Reinvested.............................................. 9 4 -- --
Redeemed................................................ (12) (5) -- --
-------- -------- ------- --------
Change in Class B Shares................................ 35 105 -- --
======== ======== ======= ========
</TABLE>
- ---------------
(a) Period from commencement of operations.
(b) Class A Shares commenced operations February 7, 1995, December 21, 1994, and
November 18, 1994 for the U.S. Government Securities Fund, Intermediate U.S.
Government Securities Fund, Municipal Bond Fund and Intermediate Municipal
Bond Fund, respectively.
(c) Class B Shares commenced operations November 10, 1994 and December 27, 1994
for the U.S. Government Securities Fund and Municipal Bond fund,
respectively.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
50
<PAGE> 51
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Notes to Financial Statements(continued)
February 28, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED
GROWTH FUND BOND FUND
-------------- --------------
FOR THE PERIOD FOR THE PERIOD
INTERMEDIATE MUNICIPAL BOND OCTOBER 21, OCTOBER 21,
MUNICIPAL BOND FUND FUND 1996 1996
---------------------------- ---------------------------- (COMMENCEMENT (COMMENCEMENT
FOR THE PERIOD YEAR ENDED FOR THE PERIOD YEAR ENDED OF OPERATIONS) OF OPERATIONS)
ENDED FEBRUARY AUGUST 31, ENDED FEBRUARY AUGUST 31, TO FEBRUARY TO FEBRUARY
28, 1997 1996 28, 1997 1996 28, 1997 28, 1997
-------------- ---------- -------------- ---------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
$ 16,465 $ 55,601 $ 21,452 $ 60,965 $ 8,137 $ 17,316
-- -- -- -- 52,911 131,034
115 66 202 129 37 2,421
(8,116) (18,138) (21,360) (35,332) (12,348) (42,094)
-------- -------- ------- -------- -------- --------
$ 8,464 $ 37,529 $ 294 $ 25,762 $ 48,737 $108,677
======== ======== ======= ======== ======== ========
$ 598 $ 1462 298 $ 846 101 193
40 32 16 7 -- 2
(614) (70) (152) (319) -- (5)
-------- -------- ------- -------- -------- --------
$ 24 $ 1,424 $ 162 $ 534 $ 101 $ 190
======== ======== ======= ======== ======== ========
362 $ 888 $ -- $ -- $ 137 $ 311
33 24 -- -- -- 3
(82) (87) -- -- -- (4)
-------- -------- ------- -------- -------- --------
$ 313 825 $ -- $ -- $ 137 $ 310
======== ======== ======= ======== ======== ========
1,521 5,168 2,060 5,830 808 1,730
-- -- -- -- 5,291 13,103
11 6 19 12 4 242
(750) (1,684) (2,054) (3,381) (1,220) (4,215)
-------- -------- ------- -------- -------- --------
782 3,490 25 2,461 4,883 10,860
-------- -------- ------- -------- -------- --------
55 136 29 81 10 19
4 3 2 1 -- --
(57) (6) (15) (30) -- --
-------- -------- ------- -------- -------- --------
2 133 16 52 10 19
======== ======== ======= ======== ======== ========
34 82 -- -- 14 31
3 2 -- -- -- --
(8) (8) -- -- -- --
-------- -------- ------- -------- -------- --------
(29) (76) -- -- 14 31
======== ======== ======= ======== ======== ========
</TABLE>
- --------------------------------------------------------------------------------
51
<PAGE> 52
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Notes to Financial Statements(continued)
February 28, 1997
- --------------------------------------------------------------------------------
6. REORGANIZATIONS:
The Fund entered an Agreement and Plan of Reorganization ("Reorganization") with
Funds IV Trust ("Funds IV") pursuant to which all of the assets and liabilities
of each Funds IV fund transferred to a Portfolio or Portfolios of the Fund in
exchange for shares of the corresponding Portfolio of the the Fund. Funds IV
Aggressive Stock Appreciation Fund transferred its assets and liabilities to the
Growth Fund. The Funds IV Value Stock Appreciation Fund and the Funds IV Stock
Appreciation Fund transferred their assets and liabilities to the Growth and
Income Fund. The Funds IV Bond Income and the Funds IV Intermediate Bond Income
Funds transferred their assets and liabilities to the Diversified Bond Income
Fund. The Reorganization, which qualified as a tax-free exchange for Federal
income tax purposes, was completed October 21, 1996 following approval by
shareholders of Funds IV at a special shareholder meeting. The following is a
summary of the shares outstanding, net assets, net asset value per share and
unrealized appreciation immediately before and after the Reorganization:
<TABLE>
<CAPTION>
BEFORE
REORGANIZATION AFTER
------------------ REORGANIZATION
FUNDS IV --------------
AGGRESSIVE GROWTH
STOCK APPRECIATION FUND
------------------ --------------
<S> <C> <C>
Shares.............................................................................. 4,297,270 5,291,051
Net Assets.......................................................................... $ 52,910,515 $ 52,910,515
Net Asset Value:
Pilot Class....................................................................... 10.00
Class A........................................................................... 12.31
Unrealized Appreciation............................................................. 10,922,245 10,922,245
</TABLE>
<TABLE>
<CAPTION>
BEFORE REORGANIZATION
---------------------------------------------- AFTER
REORGANIZATION
FUNDS IV --------------
----------------------------- GROWTH GROWTH
VALUE STOCK STOCK INCOME INCOME
APPRECIATION APPRECIATION FUND FUND
------------ ------------ ------------ --------------
<S> <C> <C> <C> <C>
Shares....................................................... 2,055,212 12,743,275 15,249,246 27,651,171
Net Assets................................................... $24,258,541 $144,655,686 $207,649,517 $376,563,744
Net Asset Value:
Pilot Class................................................ 13.62 13.62
Class A.................................................... 11.80 11.35
Unrealized Appreciation...................................... 3,636,103 19,518,905 30,797,329 53,952,337
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
52
<PAGE> 53
THE PILOT FUNDS
- --------------------------------------------------------------------------------
Notes to Financial Statements(continued)
February 28, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BEFORE REORGANIZATION
---------------------------- AFTER
REORGANIZATION
FUNDS IV --------------
---------------------------- DIVERSIFIED
BOND INTERMEDIATE BOND INCOME
INCOME BOND INCOME FUND
----------- ------------ --------------
<S> <C> <C> <C>
Shares....................................................................... 283,449 10,128,927 13,103,358
Net Assets................................................................... $29,217,904 $101,815,679 $131,033,583
Net Asset Value:
Pilot Class................................................................ 10.00
Class A.................................................................... 10.31 10.05
Unrealized Appreciation...................................................... 111,472 1,034,000 1,145,472
</TABLE>
- --------------------------------------------------------------------------------
53
<PAGE> 54
PILOT GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED FEBRUARY 28, 1997
--------------------------------------
PILOT CLASS A CLASS B
SHARES SHARES SHARES
-------- ------- -------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period.............................. $ 12.90 $ 12.90 $ 12.91
-------- -------- --------
Investment Activities
Net investment income........................................... 0.12 0.11 0.05
Net realized and unrealized gains from investments.............. 1.76 1.76 1.75
-------- -------- --------
Total from Investment Activities................................ 1.88 1.87 1.80
Distributions
From net investment income...................................... (0.12) (0.11) (0.05)
From net realized gains......................................... (0.50) (0.50) (0.50)
-------- -------- --------
Total distributions............................................. (0.62) (0.61) (0.55)
-------- -------- --------
Net Asset Value, End of Period.................................... $ 14.16 $ 14.16 $ 14.16
======== ======== ========
Total Return (d).................................................. 14.71% 14.58% 14.07%
Ratios/Supplemental Data:
Net Assets at end of period (000)............................... $362,554 $ 7,050 $ 5,406
Ratio of expenses to average net assets......................... 0.70%(e) 0.95%(e) 1.70%(e)
Ratio of net investment income to average net assets............ 1.80%(e) 1.55%(e) 0.80%(e)
Ratio of expenses to average net assets assuming no waiver or
expense reimbursement......................................... 0.95%(e) 1.20%(e) 1.95%(e)
Ratio of net investment income to average net assets assuming no
waiver or expense reimbursement............................... 1.55%(e) 1.30%(e) 0.55%(e)
Portfolio turnover rate (f)..................................... 10.75% 10.75% 10.75%
Average Commission Rate Paid (g)................................ $ 0.0609 $0.0609 $0.0609
</TABLE>
- ---------------
(a) Pilot Shares commenced activity November 7, 1994.
(b) Class A Shares commenced activity February 7, 1995.
(c) Class B Shares commenced activity November 11, 1994.
(d) Total return excludes sales charge of Class A Shares and Class B Shares,
would have been lower had certain expenses not been reduced during the
periods presented, and is not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing among the classes of shares issued.
(g) The average commission represents the total dollar amount of commissions
paid on portfolio transactions divided by total number of portfolio shares
purchased and sold for which commissions were charged. For the period
8/31/96 the average rate represents amounts for the time period 5/4/96 to
8/31/96.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
54
<PAGE> 55
PILOT GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED AUGUST 31,1996 PERIOD ENDED AUGUST 31, 1995
-------------------------------------- --------------------------------------
PILOT CLASS A CLASS B PILOT CLASS A CLASS B
SHARES SHARES SHARES SHARES(A) SHARES(B) SHARES(C)
-------- ------- ------- -------- ------- -------
<S><C> <C> <C> <C> <C> <C>
$ 11.59 $ 11.58 $ 11.59 $ 10.00 $ 10.44 $ 10.08
-------- -------- -------- -------- -------- --------
0.22 0.18 0.09 0.17 0.09 0.08
1.59 1.60 1.60 1.59 1.14 1.51
-------- -------- -------- -------- -------- --------
1.81 1.78 1.69 1.76 1.23 1.59
(0.22) (0.18) (0.09) (0.17) (0.09) (0.08)
(0.28) (0.28) (0.28) -- -- --
-------- -------- -------- -------- -------- --------
(0.50) (0.46) (0.37) (0.17) (0.09) (0.08)
-------- -------- -------- -------- -------- --------
$ 12.90 $ 12.90 $ 12.91 $ 11.59 $ 11.58 $ 11.59
======== ======== ======== ======== ======== ========
15.79% 15.57% 14.75% 17.72% 11.78% 15.85%
182,379 $ 4,667 $ 3,818 $109,423 $ 697 $ 661
0.74% 0.99% 1.74% 0.75%(e) 1.00%(e) 1.75%(e)
1.76% 1.52% 0.76% 1.98%(e) 1.65%(e) 0.94%(e)
1.01% 1.26% 2.01% 1.15%(e) 1.40%(e) 2.15%(e)
1.49% 1.25% 0.49% 1.58%(e) 1.25%(e) 0.54%(e)
36.77% 36.77% 36.77% 28.00% 28.00% 28.00%
$ 0.0539 $0.0539 $0.0539 -- -- --
</TABLE>
- --------------------------------------------------------------------------------
55
<PAGE> 56
PILOT EQUITY INCOME FUND
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED FEBRUARY 28, 1997
--------------------------------------
(UNAUDITED)
PILOT CLASS A CLASS B
SHARES SHARES SHARES
-------- ------- -------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period.............................. $ 12.38 $ 12.46 $ 12.44
-------- -------- --------
Investment Activities
Net investment income......................................... 0.23 0.20 0.15
Net realized and unrealized gains from investments............ 1.64 1.67 1.67
-------- -------- --------
Total from Investment Activities.............................. 1.87 1.87 1.82
Distributions
From net investment income.................................... (0.23) (0.21) (0.16)
From net realized gains....................................... (0.32) (0.32) (0.32)
-------- -------- --------
Total distributions........................................... (0.55) (0.53) (0.48)
-------- -------- --------
Net Asset Value, End of Period.................................... $ 13.70 $ 13.80 $ 13.78
======== ======== ========
Total Return(d)................................................... 15.25% 15.17% 14.79%
Ratios/Supplemental Data:
Net Assets at end of period (000)............................. $146,628 $ 3,300 $ 4,850
Ratio of expenses to average net assets....................... 0.73%(e) 0.98%(e) 1.73%(e)
Ratio of net investment income to average net assets.......... 3.39%(e) 3.18%(e) 2.41%(e)
Ratio of expenses to average net assets assuming no waiver or
expense reimbursement....................................... 0.98%(e) 1.23%(e) 1.98%(e)
Ratio of net investment income to average net assets assuming
no waiver or expense reimbursement.......................... 3.14%(e) 2.93%(e) 2.16%(e)
Portfolio turnover rate(f).................................... 7.01% 7.01% 7.01%
Average Commission Rate Paid(g)............................... $ 0.0635 $0.0635 $0.0635
</TABLE>
- ---------------
(a) Pilot Shares commenced activity November 7, 1994.
(b) Class A Shares commenced activity February 7, 1995.
(c) Class B Shares commenced activity January 12, 1995.
(d) Total return excludes sales charge of Class A Shares and Class B Shares,
would have been lower had certain expenses not been reduced during the
periods presented, and is not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing among the classes of shares issued.
(g) The average commission represents the total dollar amount of commissions
paid on portfolio transactions divided by total number of portfolio shares
purchased and sold for which commissions were charged. For the period
8/31/96 the average rate represents amounts for the time period 5/4/96 to
8/31/96.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
56
<PAGE> 57
PILOT EQUITY INCOME FUND
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED AUGUST 31,1996 PERIOD ENDED AUGUST 31, 1995
-------------------------------------- --------------------------------------
PILOT CLASS A CLASS B PILOT CLASS A CLASS B
SHARES SHARES SHARES SHARES(A) SHARES(B) SHARES(C)
-------- ------- ------- -------- ------- -------
<S><C> <C> <C> <C> <C> <C>
$ 11.29 $ 11.36 $ 11.34 $ 10.00 $ 10.24 $ 9.85
-------- -------- -------- -------- -------- --------
0.46 0.41 0.33 0.35 0.18 0.18
1.38 1.40 1.39 1.29 1.12 1.49
-------- -------- -------- -------- -------- --------
1.84 1.81 1.72 1.64 1.30 1.67
(0.45) (0.41) (0.32) (0.35) (0.18) (0.18)
(0.30) (0.30) (0.30) -- -- --
-------- -------- -------- -------- -------- --------
(0.75) (0.71) (0.62) (0.35) (0.18) (0.18)
-------- -------- -------- -------- -------- --------
12.38 $ 12.46 $ 12.44 $ 11.29 $ 11.36 $ 11.34
======== ======== ======== ======== ======== ========
16.49% 16.10% 15.31% 16.69% 12.78% 17.36%
$130,278 $ 1,640 $ 3,200 $ 98,607 $ 311 $ 713
0.75% 1.00% 1.75% 0.75%(e) 1.00%(e) 1.75%(e)
3.78% 3.53% 2.79% 4.12%(e) 3.70%(e) 2.88%(e)
1.04% 1.29% 2.04% 1.14%(e) 1.39%(e) 2.14%(e)
3.49% 3.24% 2.50% 3.73%(e) 3.31%(e) 2.49%(e)
34.48% 34.48% 34.48% 37.00% 37.00% 37.00%
$ 0.0629 $0.0629 $0.0629 -- -- --
</TABLE>
- --------------------------------------------------------------------------------
57
<PAGE> 58
PILOT SMALL CAPITALIZATION EQUITY FUND
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED FEBRUARY 28, 1997 DECEMBER 12, 1995 TO AUGUST 31,
----------------------------------- 1996(A)
(UNAUDITED) --------------------------------
PILOT CLASS A CLASS B PILOT CLASS A CLASS B
SHARES SHARES SHARES SHARES SHARES SHARES
-------- ----------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Period........................... $ 10.65 $ 10.64 $ 10.65 10.00 $ 10.00 $ 10.00
-------- -------- -------- -------- -------- --------
Investment Activities
Net investment income.......... 0.04 0.02 -- 0.09 0.05 0.01
Net realized and unrealized
gains from investments and
futures...................... 0.97 0.97 0.95 0.64 0.64 0.65
-------- -------- -------- -------- -------- --------
Total from Investment
Activities................... 1.01 0.99 0.95 0.73 0.69 0.66
Distributions
From net investment income..... (0.04) (0.02) -- (0.08) (0.05) (0.01)
From net realized gains........ (0.05) (0.05) (0.05) -- --
-------- -------- -------- -------- -------- --------
Total distributions............ (0.09) (0.07) (0.05) (0.08) (0.05) (0.01)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period..... $ 11.57 $ 11.56 $ 11.55 10.65 $ 10.64 $ 10.65
======== ======== ======== ======== ======== ========
Total Return (b)................... 9.39% 9.29% 8.90% 7.37% 6.88% 6.65%
Ratios/Supplemental Data:
Net Assets at end of period
(000)........................ $104,586 $ 3,599 $ 2,568 $ 70,483 $ 2,611 $ 1,878
Ratio of expenses to average
net assets................... 0.97%(c) 1.22%(c) 1.97%(c) 1.00%() 1.25%(c) 2.01%(c)
Ratio of net investment income
to average net assets........ 0.62%(c) 0.37%(c) (0.38%)(c) 1.06%(c) 0.66%(c) (0.07%)(c)
Ratio of expenses to average
net assets assuming no waiver
or expense reimbursement..... 1.29%(c) 1.54%(c) 2.29%(c) 1.54%(c) 1.65%(c) 2.44%(c)
Ratio of net investment income
to average net assets
assuming no waiver or expense
reimbursement................ 0.30%(c) 0.05%(c) (0.70%)(c) 0.52%(c) 0.26%(c) (0.50%)(c)
Portfolio turnover rate (d).... 30.23% 30.23% 30.23% 30.67% 30. 67% 30.67%
Average Commission Rate
Paid(g)...................... $ 0.0090 $ 0.0090 $ 0.0090 $ 0.0340 $ 0.0340 $ 0.0340
</TABLE>
- ---------------
(a) Period from commencement of operations.
(b) Total return from date of inception excludes sales charge of Class A Shares
and Class B Shares, would have been lower had certain expenses not been
reduced during the periods presented, and is not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the fund as a whole
without
distinguishing among the classes of shares issued.
(g) The average commission represents the total dollar amount of commissions
paid on portfolio transactions divided by total number of portfolio shares
purchased and sold for which commissions were charged. For the period
8/31/96 the average rate represents amounts for the time period 5/4/96 to
8/31/96.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
58
<PAGE> 59
(This page intentionally left blank)
59
<PAGE> 60
PILOT U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED FEBRUARY 28, 1997
------------------------------------------
(UNAUDITED)
PILOT CLASS A CLASS B
SHARES SHARES SHARES
-------- ----------- -------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period............................. $ 10.53 $ 10.54 $ 10.52
-------- -------- --------
Investment Activities
Net investment income........................................ 0.29 0.28 0.24
Net realized and unrealized gains from investments........... 0.19 0.18 0.19
-------- -------- --------
Total from Investment Activities............................. 0.48 0.46 0.43
Distributions
From net investment income................................... (0.29) (0.28) (0.24)
From net realized gains...................................... (0.51) (0.51) (0.51)
-------- -------- --------
Total distributions.......................................... (0.80) (0.79) (0.75)
-------- -------- --------
Net Asset Value, End of Period................................... $ 10.21 $ 10.21 $ 10.20
======== ======== ========
Total Return (d)................................................. 4.62% 4.39% 4.10%
Ratios/Supplemental Data:
Net Assets at end of period (000)............................ $150,132 $ 1,145 $ 1,557
Ratio of expenses to average net assets...................... 0.62%(e) 0.86%(e) 1.62%(e)
Ratio of net investment income to average net assets......... 5.61%(e) 5.30%(e) 4.60%(e)
Ratio of expenses to average net assets assuming no waiver or
expense reimbursement...................................... 0.77%(e) 1.01%(e) 1.77%(e)
Ratio of net investment income to average net assets assuming
no waiver or expense reimbursement......................... 5.46%(e) 5.15%(e) 4.45%(e)
Portfolio turnover rate (f).................................. 16.32% 16.32% 16.32%
</TABLE>
- ---------------
(a) Pilot Shares commenced activity November 7, 1994.
(b) Class A Shares commenced activity February 7, 1995.
(c) Class B Shares commenced activity November 10, 1994.
(d) Total return excludes sales charge of Class A Shares and Class B Shares,
would have been lower had certain expenses not been reduced during the
periods presented, and is not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing among the classes of shares issued.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
60
<PAGE> 61
PILOT U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31, 1996 PERIOD ENDED AUGUST 31, 1995
-------------------------------------- --------------------------------------
PILOT CLASS A CLASS B PILOT CLASS A CLASS B
SHARES SHARES SHARES SHARES(a) SHARES(b) SHARES(c)
-------- ------- ------- -------- ------- -------
<S><C> <C> <C> <C> <C> <C>
$ 11.20 $ 11.19 $ 11.19 $ 10.00 $ 10.48 $ 10.05
-------- -------- -------- -------- -------- --------
0.61 0.59 0.51 0.56 0.37 0.46
(0.22) (0.20) (0.22) 1.20 0.71 1.14
-------- -------- -------- -------- -------- --------
0.39 0.39 0.29 1.76 1.08 1.60
(0.61) (0.59) (0.51) (0.56) (0.37) (0.46)
(0.45) (0.45) (0.45) -- -- --
-------- -------- -------- -------- -------- --------
(1.06) (1.04) (0.96) (0.56) (0.37) (0.46)
-------- -------- -------- -------- -------- --------
$ 10.53 $ 10.54 $ 10.52 $ 11.20 $ 11.19 $ 11.19
======== ======== ======== ======== ======== ========
3.46% 3.44% 2.43% 18.03% 10.41% 16.19%
$145,066 $ 632 $ 1,237 $137,261 $ 87 $ 146
0.65% 0.85% 1.65% 0.62%(e) 0.82%(e) 1.62%(e)
5.61% 5.44% 4.60% 6.45%(e) 5.76%(e) 5.19%(e)
0.82% 1.07% 1.82% 0.87%(e) 1.12%(e) 1.87%(e)
5.44% 5.22% 4.43% 6.20%(e) 5.46%(e) 4.94%(e)
87.18% 87.18% 87.18% 132.00% 132.00% 132.00%
</TABLE>
- --------------------------------------------------------------------------------
61
<PAGE> 62
PILOT INTERMEDIATE U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED FEBRUARY 28,
1997
--------------------------
(UNAUDITED)
PILOT CLASS A
SHARES SHARES
-------- -------
<S> <C> <C>
Net Asset Value, Beginning of Period........................................ $ 10.16 $ 10.16
-------- --------
Investment Activities
Net investment income..................................................... 0.27 0.26
Net realized and unrealized gains from investments........................ 0.12 0.12
-------- --------
Total from Investment Activities.......................................... 0.39 0.38
Distributions
From net investment income................................................ (0.27) (0.26)
From net realized gains................................................... (0.15) (0.15)
-------- --------
Total distributions....................................................... (0.42) (0.41)
-------- --------
Net Asset Value, End of Period.............................................. $ 10.13 $ 10.13
======== ========
Total Return (c)............................................................ 3.84% 3.72%
Ratios/Supplemental Data:
Net Assets at end of period (000)......................................... $241,755 $ 1,272
Ratio of expenses to average net assets................................... 0.56%(d) 0.81%(d)
Ratio of net investment income to average net assets...................... 5.31%(d) 5.08%(d)
Ratio of expenses to average net assets assuming no waiver or expense
reimbursement........................................................... 0.71%(d) 0.96%(d)
Ratio of net investment income to average net assets assuming no waiver or
expense reimbursement................................................... 5.16%(d) 4.93%(d)
Portfolio turnover rate (e)............................................... 17.00% 17.00%
</TABLE>
- ---------------
(a) Pilot Shares commenced activity November 7, 1994.
(b) Class A Shares commenced activity December 21, 1994.
(c) Total return excludes sales charge of Class A Shares, would have been lower
had certain expenses not been reduced during the periods presented, and is
not annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
62
<PAGE> 63
PILOT INTERMEDIATE U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED AUGUST 31,
YEAR ENDED AUGUST 31, 1996 1995
-------------------------- --------------------------
PILOT CLASS A PILOT CLASS A
SHARES SHARES SHARES(a) SHARES(b)
-------- ------- -------- -------
<S><C> <C> <C> <C>
$ 10.44 $ 10.44 $ 10.00 $ 9.98
-------- -------- -------- --------
0.59 0.57 0.56 0.45
(0.23) (0.23) 0.44 0.46
-------- -------- -------- --------
0.36 0.34 1.00 0.91
(0.59) (0.57) (0.56) (0.45)
(0.05) (0.05) -- --
-------- -------- -------- --------
(0.64) (0.62) (0.56) (0.45)
-------- -------- -------- --------
10.16 $ 10.16 $ 10.44 $ 10.44
======== ======== ======== ========
3.52% 3.33% 10.21% 9.31%
$230,030 $ 932 $165,441 $ 499
0.57% 0.72% 0.57%(d) 0.72%(d)
5.68% 5.45% 6.65%(d) 6.27%(d)
0.78% 1.03% 0.87%(d) 1.12%(d)
5.47% 5.14% 6.35%(d) 5.87%(d)
73.41% 73.41% 87.00% 87.00%
</TABLE>
- --------------------------------------------------------------------------------
63
<PAGE> 64
PILOT MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED FEBRUARY 28, 1997
--------------------------------------
(UNAUDITED)
PILOT CLASS A CLASS B
SHARES SHARES SHARES
-------- ------- -------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period.............................. $ 10.68 $ 10.68 $ 10.62
-------- -------- --------
Investment Activities
Net investment income........................................... 0.27 0.26 0.22
Net realized and unrealized gains from investments.............. 0.25 0.24 0.24
-------- -------- --------
Total from Investment Activities................................ 0.52 0.50 0.46
Distributions
From net investment income...................................... (0.27) (0.26) (0.22)
In excess of net investment income..............................
From net realized gains......................................... (0.07) (0.07) (0.07)
-------- -------- --------
Total distributions............................................. (0.34) (0.33) (0.29)
-------- -------- --------
Net Asset Value, End of Period.................................... $ 10.86 $ 10.85 $ 10.79
======== ======== ========
Total Return (d).................................................. 4.97% 4.75% 4.37%
Ratios/Supplemental Data:
Net Assets at end of period (000)............................... $199,504 $ 1,810 $ 1,593
Ratio of expenses to average net assets......................... 0.67%(e) 0.92%(e) 1.67%(e)
Ratio of net investment income to average net assets............ 5.08%(e) 4.82%(e) 4.07%(e)
Ratio of expenses to average net assets assuming no waiver or
expense reimbursement......................................... 0.77%(e) 1.02%(e) 1.77%(e)
Ratio of net investment income to average net assets assuming no
waiver or expense reimbursement............................... 4.98%(e) 4.72%(e) 3.97%(e)
Portfolio turnover rate (f)..................................... 4.19% 4.19% 4.19%
</TABLE>
- ---------------
(a) Pilot Shares commenced activity November 7, 1994.
(b) Class A Shares commenced activity February 7, 1995.
(c) Class B Shares commenced activity December 27, 1994.
(d) Total return excludes sales charge of Class A Shares and Class B Shares,
would have been lower had certain expenses not been reduced during the
periods presented, and is not annualized.
(e) Annualized.
(f) Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing among the classes of shares issued.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
64
<PAGE> 65
PILOT MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31, 1996 PERIOD ENDED AUGUST 31, 1995
-------------------------------------- --------------------------------------
PILOT CLASS A CLASS B PILOT CLASS A CLASS B
SHARES SHARES SHARES SHARES(a) SHARES(b) SHARES(c)
-------- ------- ------- -------- ------- -------
<S><C> <C> <C> <C> <C> <C>
$ 10.70 $ 10.70 $ 10.65 $ 10.00 $ 10.37 $ 10.02
-------- -------- -------- -------- -------- --------
0.57 0.54 0.45 0.48 0.34 0.33
0.01 0.01 -- 0.70 0.33 0.63
-------- -------- -------- -------- -------- --------
0.58 0.55 0.45 1.18 0.67 0.96
(0.56) (0.53) (0.44) (0.48) (0.34) (0.33)
(0.01) (0.01) (0.01)
(0.03) (0.03) (0.03) -- -- --
-------- -------- -------- -------- -------- --------
(0.60) (0.57) (0.48) (0.48) (0.34) (0.33)
-------- -------- -------- -------- -------- --------
$ 10.68 $ 10.68 $ 10.62 $ 10.70 $ 10.70 $ 10.65
======== ======== ======== ======== ======== ========
5.44% 5.23% 4.31% 12.00% 6.54% 9.62%
$187,939 $ 1,755 $ 1,259 $150,934 $ 340 $ 448
0.69% 0.92% 1.68% 0.67%(e) 0.87%(e) 1.67%(e)
5.20% 4.91% 4.16% 5.63%(e) 5.26%(e) 4.48%(e)
0.80% 1.08% 1.79% 0.86%(e) 1.11%(e) 1.86%(e)
5.09% 4.75% 4.05% 5.44%(e) 5.02%(e) 4.29%(e)
18.06% 18.06% 18.06% 10.00% 10.00% 10.00%
</TABLE>
- --------------------------------------------------------------------------------
65
<PAGE> 66
PILOT INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED FEBRUARY 28,
1997
--------------------------
(UNAUDITED)
PILOT CLASS A
SHARES SHARES
-------- -------
<S> <C> <C>
Net Asset Value, Beginning of Period........................................ $ 10.34 $ 10.36
-------- --------
Investment Activities
Net investment income..................................................... 0.23 0.22
Net realized and unrealized gains from investments........................ 0.12 0.12
-------- --------
Total from Investment Activities.......................................... 0.35 0.34
Distributions
From net investment income................................................ (0.23) (0.22)
From net realized gains................................................... (0.03) (0.03)
-------- --------
Total distributions....................................................... (0.26) (0.25)
-------- --------
Net Asset Value, End of Period.............................................. $ 10.43 $ 10.45
======== ========
Total Return (c)............................................................ 3.49% 3.36%
Ratios/Supplemental Data:
Net Assets at end of period (000)......................................... $221,120 $ 934
Ratio of expenses to average net assets................................... 0.62% 0.87%
Ratio of net investment income to average net assets...................... 4.53% 4.29%
Ratio of expenses to average net assets assuming no waiver or expense
reimbursement........................................................... 0.77% 1.02%
Ratio of net investment income to average net assets assuming no waiver or
expense reimbursement................................................... 4.38% 4.14%
Portfolio turnover rate (e)............................................... 4.76% 4.76%
</TABLE>
- ---------------
(a) Pilot Shares commenced activity November 7, 1994.
(b) Class A Shares commenced activity November 18, 1994.
(c) Total return excludes sales charge of Class A Shares, would have been lower
had certain expenses not been reduced during the periods presented, and is
not annualized.
(d) Annualized.
(e) Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
66
<PAGE> 67
PILOT INTERMEDIATE MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Financial Highlights (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED AUGUST 31,
YEAR ENDED AUGUST 31, 1996 1995
-------------------------- --------------------------
PILOT CLASS A PILOT CLASS A
SHARES SHARES SHARES(a) SHARES(b)
-------- ------- -------- -------
<S><C> <C> <C> <C>
$ 10.49 $ 10.49 $ 10.00 $ 9.88
-------- -------- -------- --------
0.48 0.46 0.41 0.37
(0.13) (0.11) 0.49 0.61
-------- -------- -------- --------
0.35 0.35 0.90 0.98
(0.48) (0.46) (0.41) (0.37)
(0.02) (0.02) -- --
-------- -------- -------- --------
(0.50) (0.48) (0.41) (0.37)
-------- -------- -------- --------
$ 10.34 $ 10.36 $ 10.49 $ 10.49
======== ======== ======== ========
3.43% 3.45% 9.16% 10.03%
$218,902 $ 764 $196,209 $ 232
0.63% 0.78% 0.58% 0.73%
4.60% 4.38% 4.90% 4.60%
0.79% 1.03% 0.81% 1.06%
4.44% 4.13% 4.67% 4.27%
11.54% 11.54% 8.00% 8.00%
</TABLE>
- --------------------------------------------------------------------------------
67
<PAGE> 68
PILOT GROWTH FUND
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD OCTOBER 21, 1996 THROUGH
FEBRUARY 28, 1997(A)
----------------------------------------
PILOT CLASS CLASS B
SHARES SHARES SHARES
-------- -------- --------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period............................ $ 10.00 $ 10.00 $ 10.00
-------- -------- --------
Investment Activities
Net investment income......................................... .01 -- (0.01)
Net realized and unrealized gains from investments............ 0.21 0.21 0.19
-------- -------- --------
Total from Investment Activities.............................. 0.22 0.21 0.18
Distributions
From net investment income.................................... (0.01) -- --
From net realized gains....................................... -- -- --
-------- -------- --------
Total distributions........................................... (0.01) -- --
-------- -------- --------
Net Asset Value, End of Period.................................. $ 10.21 $ 10.21 $ 10.18
======== ======== ========
Total Return (b)................................................ 2.18% 2.15% 1.80%
Ratios/Supplemental Data:
Net Assets at end of period (000)............................. $ 49,846 $ 101 $ 138
Ratio of expenses to average net assets....................... 1.00%(c) 1.25%(c) 2.00%(c)
Ratio of net investment income to average net assets.......... 0.22%(c) 0.03%(c) (0.74)%(c)
Ratio of expenses to average net assets assuming no waiver or
expense reimbursement....................................... 1.12%(c) 1.37%(c) 2.12%(c)
Ratio of net investment income to average net assets assuming
no waiver or expense reimbursement.......................... .10%(c) (0.09)%(c) (0.86)%(c)
Portfolio turnover rate (e)................................... 29.25% 29.25% 29.25%
Average Commission Rate(e).................................... $ .0429 $ .0429 $ .0429
</TABLE>
- ---------------
(a) Commenced activity October 21, 1996.
(b) Total return excludes sales charge of Class A Shares and Class B Shares,
would have been lower had certain expenses not been reduced during the
periods presented, and is not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing among the classes of shares issued.
(e) The average commission represents the total dollar amount of commissions
paid on the portfolio transactions divided by total number of portfolio
shares purchased and sold for which commissions were charged.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
68
<PAGE> 69
PILOT DIVERSIFIED BOND FUND
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD OCTOBER 21, 1996 THROUGH
FEBRUARY 28, 1997(A)
----------------------------------------
PILOT CLASS A CLASS B
SHARES SHARES SHARES
-------- -------- --------
<S> <C> <C> <C>
Net Asset Value, Beginning of Period............................. $ 10.00 $ 10.00 $ 10.00
-------- -------- --------
Investment Activities
Net investment income.......................................... 0.21 0.20 0.18
Net realized and unrealized gains from investments............. (0.05) (0.04) (0.05)
-------- -------- --------
Total from Investment Activities............................... 0.16 0.16 0.13
Distributions
From net investment income..................................... (0.21) (0.20) (0.18)
From net realized gains........................................ (0.03) (0.03) (0.03)
-------- -------- --------
Total distributions............................................ (0.24) (0.23) (0.21)
-------- -------- --------
Net Asset Value, End of Period................................... $ 9.92 $ 9.93 $ 9.92
======== ======== ========
Total Return (b)................................................. 1.58% 1.61% 1.33%
Ratios/Supplemental Data:
Net Assets at end of period (000).............................. $107,760 $ 186 $ 303
Ratio of expenses to average net assets........................ 0.65%(c) 0.90%(c) 1.65%(c)
Ratio of net investment income to average net assets........... 5.78%(c) 5.36%(c) 4.84%(c)
Ratio of expenses to average net assets assuming no waiver or
expense reimbursement........................................ 0.80%(c) 1.05%(c) 1.80%(c)
Ratio of net investment income to average net assets assuming
no waiver or expense reimbursement........................... 5.63%(c) 5.21%(c) 4.69%(c)
Portfolio turnover rate (f).................................... 42.84% 42.84% 42.84%
</TABLE>
- ---------------
(a) Commenced activity October 21, 1996.
(b) Total return excludes sales charge of Class A Shares and Class B Shares,
would have been lower had certain expenses not been reduced during the
periods presented, and is not annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the fund as a whole without
distinguishing among the classes of shares issued.
- --------------------------------------------------------------------------------
69
<PAGE> 70
- --------------------------------------------------------------------------------
Report of Independent Public Accountants
- --------------------------------------------------------------------------------
To the Shareholders and Trustees of the Pilot Growth and Income Fund, Pilot
Growth Fund, and Pilot Diversified Bond Income Fund of the Pilot Funds:
We have audited the accompanying statements of assets and liabilities of the
Pilot Growth and Income Fund, Pilot Growth Fund, and Pilot Diversified Bond
Income Fund of the Pilot Funds (a Massachusetts business trust), including the
portfolios of investments as of February 28, 1997, and the related statements of
operations for the period then ended, the statements of changes in net assets
and financial highlights for the periods presented. These financial statements
and financial highlights are the responsibility of the Fund'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
February 28, 1997 by correspondence with the custodian and brokers. 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 the
Pilot Growth and Income Fund, Pilot Growth Fund, and Pilot Diversified Bond
Income Fund as of February 28, 1997, the results their operations and the
changes in their net assets and financial highlights for the periods presented
in conformity with generally accepted accounting principles.
Arthur Andersen LLP
Boston, Massachusetts
April 18, 1997
70
<PAGE> 71
Financial Direction
[LOGO]
PILOT GROWTH AND
INCOME FUND
PILOT EQUITY
INCOME FUND
PILOT SMALL
CAPITALIZATION
EQUITY FUND
PILOT U.S. GOVERNMENT
SECURITIES FUND
PILOT INTERMEDIATE
U.S. GOVERNMENT
SECURITIES FUND
PILOT MUNICIPAL
BOND FUND
PILOT INTERMEDIATE
MUNICIPAL BOND FUND
PILOT GROWTH FUND
PILOT DIVERSIFIED BOND
INCOME FUND
Semi-Annual Report
February 28, 1997
The
Pilot
Funds
NOT May Lose Value
FDIC No Bank Guarantee
INSURED No Govt. Guarantee
Distributor: Pilot Funds Distributors, Inc. 10/96
<PAGE> 72
PILVAR97MID Bulk Rate
U.S. Postage
PAID
Atlanta, GA
Permit No. 1
