<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
MARKET VIEW
MARKETS RALLY AS EVIDENCE OF COOLING ECONOMY GROWS
The financial markets enjoyed a "best of all worlds" scenario last quarter as
investors became increasingly convinced that the economic soft landing
engineered by the Federal Reserve had actually arrived. Evidence mounted that
the Fed's tightening of 1994 had taken hold, and as each piece of reported data
confirmed the slowdown, bonds rallied, and stocks followed suit.
The Fed's efforts to slow economic growth-- a 300 basis point increase in the
federal funds rate over a 13 month period--was strong medicine by historical
standards, and contributed to the sharp slowdown in real GDP growth in the
first half of the year. With consumer spending creeping along at an anemic
pace, and industrial production down significantly from year-end levels, the
debate in the markets during the second quarter shifted to when the Fed would
ease, rather than whether additional tightening was needed. The Fed did take
action toward easing in early July when it cut the federal funds rate by 25
basis points.
Fixed income investors around the world enjoyed an extension to the powerful
rally which began in the first quarter. Long-term bond prices surged in
virtually every market, with the most dramatic gains posted in Japan. A number
of factors provided fuel for the fixed income rally, including economic
weakness, an improving outlook for inflation, and lower commodity
prices. Although the Fed did not act last quarter, central banks in Japan and
Germany lowered short-term rates in response to their respective economic
slowdowns.
Equities generally followed the lead of the fixed income markets during the
quarter. In the U.S., stocks powered ahead as lower rates combined with good
first quarter earnings to suggest equities represented good value. European
equity markets recovered first quarter losses, although they did not enjoy the
strong rally the U.S. market experienced. The exception to the worldwide equity
rally was Japan, where the remarkably strong bond rally attracted large amounts
of institutional money away from stocks, as the financial crisis in the banking
sector increased investor concerns.
Units of The Benchmark Funds are not bank deposits or obligations of, or
guaranteed, endorsed or otherwise supported by The Northern Trust Company, its
parent company or its affiliates, and are not federally insured or guaranteed
by the U.S. Government, Federal Deposit Insurance Corporation, Federal Reserve
Board, or any other governmental agency. Investment in the portfolios involves
investment risks, including possible loss of principal.
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
MARKET VIEW--CONTINUED
BOND MARKET SURGES IN SECOND QUARTER; FED CUTS RATES IN JULY
Bond investors enjoyed another spectacular quarter as prices were boosted by
the growing conviction that the economy had weakened and that the Fed would
soon lower interest rates. During the period, Treasury yields fell more than a
full percentage point on maturities of two to 10 years, while the yield on the
30-year bond declined 90 basis points. As a result, the Treasury yield curve
steepened, closing the quarter at nearly 90 basis points (measured by the two
to 30 year spread). Yields fell sharply in the corporate sector as well,
although an abundance of new pricings, coupled with concerns about the slowing
economy, caused spreads to widen modestly. Yield spreads on mortgage-backed
securities widened more significantly, particularly in May, as investors
responded to a speed-up in prepayments.
Municipal bonds also posted respectable gains in the second quarter, although
they dramatically underperformed Treasurys, in contrast to their outperformance
during the first quarter. Municipal bond trading activity was severely
depressed by nagging worries about tax reform and investor resistance to low
nominal yields. Further chilling the market was the early fear and subsequent
realization that Orange County voters would reject a proposal aimed at boosting
the local sales tax to help the county meet its obligations. For the quarter,
tax-exempt yields fell across the curve, with short rates posting the greatest
declines.
The rally in the global bond market gained momentum in the second quarter, as
unexpectedly weak economic growth, particularly in the U.S. and Japan, raised
expectations for easier monetary policies and lower interest rates. Yields on
10-year notes declined 66 basis points in Japan and 37 basis points in Germany
during the quarter. While the U.S. dollar's relationship stabilized relative to
the Deutsche mark, it depreciated against noncore European currencies and the
Japanese yen, enhancing returns for unhedged U.S.-based investors.
The Fed ended widespread speculation about whether it would cut rates by
announcing at its July FOMC meeting a 25 basis point reduction in the federal
funds rate. The Fed's action is a clear message that it wants to avoid a near-
term economic downturn, despite its long-term pursuit of controlling inflation.
As a result of the easing move, we expect the pace of activity to gradually
rebound closer to year-end as low market rates and the cheap dollar begin to
take hold. Although we anticipate improvement in the economy prior to the end
of the year, we see little to indicate that the rebound will be vigorous.
Given this economic backdrop, and the positive fiscal developments taking
place in Washington, we expect yields on domestic bonds to trend in a steady to
somewhat-lower range over the next several quarters. As a result, we are
maintaining our intermediate-term characterization of the bond market as
"normal", reflecting our continued belief that over a 12- to 18-month horizon,
economic growth is likely to remain moderate with tempered inflation and a
general abatement of the business cycle forces which typically push rates
higher.
Internationally, given the magnitude of the market rally in 1995 and the high
degree of economic uncertainty surrounding the global economic environment, we
are reluctant to make a strong interest rate decision in our international bond
portfolios at this time.
July 10, 1995
2
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
-------------------------------------
Principal Maturity
Amount Rate Date Value
--------------------------------------
BOND PORTFOLIO
<C> <C> <S> <C>
ASSET-BACKED SECURITIES--
1.4%
AUTOMOTIVE--1.3%
General Motors
Acceptance Corp.
Class A, Series:
1993-B
$ 3,372 4.000% 09/15/98 $ 3,311
HOME EQUITY LOANS--0.1%
U.S. Home Equity
Loan, Series:
1991-2
306 8.500% 04/15/21 310
--------------------------------------
TOTAL ASSET-BACKED SECURI-
TIES
(Cost $3,679) $ 3,621
--------------------------------------
COLLATERALIZED MORTGAGE OBLIGA-
TIONS--4.3%
Capstead
Securities Corp.
Class XII-B,
Series: 1992-XII
$ 94 8.325% 11/25/05 $ 94
Delta Funding
Corp.
Class A-4, Series:
1991-1*
9,206 -- 01/01/06 547
DLJ Mortgage
Acceptance Corp.
8,523 7.250% 05/25/24 8,438
GE Capital
Mortgage Services
Inc.
Class A-13,
Series: 1994-4
4,637 4.100% 01/25/24 2,341
--------------------------------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS (Cost
$11,577) $11,420
--------------------------------------
CORPORATE AND GOVERNMENT BONDS--
21.0%
FINANCIAL--3.2%
General Motors
Acceptance Corp.
$ 4,285 8.875% 06/01/10 $ 5,012
ITT Financial
Corp.
3,200 8.500% 07/15/05 3,586
-------
8,598
FOREIGN GOVERNMENT BONDS--
7.2%
Ferrovie Dello
Stato (Italy)
9,630 9.125% 07/06/09 10,954
Manitoba Province
of Canada (Canada)
7,005 9.125% 01/15/18 8,419
-------
19,373
SANITARY SERVICES--4.8%
WMX Technologies,
Inc.
12,000 6.220% 04/30/97 12,681
</TABLE>
<TABLE>
<CAPTION>
Description
--------------------------------------
Principal Maturity
Amount Rate Date Value
---------------------------------------
<C> <C> <S> <C>
SUPRA-NATIONAL--4.4%
African Development
Bank
$ 3,425 8.800% 09/01/19 $ 4,020
International
American
Development Bank
200 8.875% 06/01/09 241
6,400 8.400% 09/01/09 7,485
-------
11,746
UTILITIES--TELEPHONE--1.4%
New England
Telephone &
Telegraph Co.
3,440 7.875% 11/15/29 3,841
---------------------------------------
TOTAL CORPORATE AND GOVERN-
MENT BONDS (Cost $54,016) $56,239
---------------------------------------
U.S. GOVERNMENT AGENCIES--
27.4%
COLLATERALIZED MORTGAGE OBLIGATIONS--
27.4%
FEDERAL HOME LOAN MORTGAGE CORP.
MULTICLASS--0.0%
Class 1392-S,
Series: 1392
$ 2,178 3.438% 09/15/18 $ 95
FEDERAL HOME LOAN MORTGAGE
CORP. MULTICLASS
INTEREST ONLY STRIPPED SECU-
RITIES*--0.5%
Class N, Series:
1019
-- -- 12/15/20 935
Variable Rate
Participation
Certificate
Class 204-E,
Series: 204
-- -- 05/15/23 436
-------
1,371
FEDERAL HOME LOAN MORTGAGE
CORP. MULTICLASS
PRINCIPAL ONLY STRIPPED SECU-
RITIES*--5.7%
Class B, Series:
G011
912 -- 04/25/23 537
Class D, Series:
1571
13,511 -- 08/15/23 6,933
Class SC, Series:
23
14,990 -- 11/25/23 1,659
Class PD, Series:
1750-C
10,963 -- 03/15/24 5,879
-------
15,008
FEDERAL NATIONAL MORTGAGE ASSOCIATION
REMIC TRUST--7.1%
Class SA, Series:
1991-127
795 10.454% 09/25/98 801
Class 3-D, Series:
1990-3
2,563 8.500% 07/25/18 2,631
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
-------------------------------------
Principal Maturity
Amount Rate Date Value
--------------------------------------
<C> <C> <S> <C>
BOND PORTFOLIO--CONTINUED
FEDERAL NATIONAL MORTGAGE ASSOCIATION
REMIC TRUST--CONTINUED
Class C, Series:
1991-140
$ 2,690 8.500% 05/25/20 $ 2,706
Class G, Series:
1992-73
7,500 7.500% 04/25/21 7,657
Class SA, Series:
1994-3
3,262 3.102% 01/25/24 1,501
Class SB, Series:
1994-59
6,364 2.633% 03/25/24 3,437
-------
18,733
FEDERAL NATIONAL MORTGAGE
ASSOCIATION REMIC TRUST
INTEREST ONLY STRIPPED SE-
CURITIES*--0.9%
Class K, Series:
1991-35
-- -- 04/25/21 1,671
Class S, Series:
G-12
-- -- 05/25/21 587
-------
2,258
FEDERAL NATIONAL MORTGAGE
ASSOCIATION REMIC TRUST
PRINCIPAL ONLY STRIPPED SE-
CURITIES*--13.2%
Class B, Series:
1993-161
8,000 -- 10/25/18 7,235
Class C, Series:
1989-16
1,193 -- 03/25/19 1,146
Class E, Series:
1993-150
3,246 -- 08/25/22 2,012
Class D, Series:
1993-132
2,194 -- 10/25/22 1,102
Class B, Series:
1993-253
8,575 -- 02/25/23 7,079
Class B, Series:
1993-146
7,780 -- 05/25/23 7,128
Class G, Series:
1994-9
3,513 -- 11/25/23 3,128
Class C, Series:
1994-25
6,612 -- 11/25/23 3,641
Class C, Series:
1994-57
4,145 -- 01/25/24 2,452
-------
34,923
--------------------------------------
MORTGAGE-BACKED SECURITIES--
0.0%
FEDERAL HOME LOAN MORTGAGE
CORP.
Pool #252649
$ 2 6.500% 06/01/04 $ 2
--------------------------------------
TOTAL U.S. GOVERNMENT AGEN-
CIES
(Cost $69,760) $72,390
--------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
--------------------------------------
Principal Maturity
Amount Rate Date Value
---------------------------------------
<C> <C> <S> <C>
U.S. GOVERNMENT OBLIGA-
TIONS--24.5%
U.S. TREASURY NOTES--14.6%
$ 3,235 7.875% 02/15/96 $ 3,278
4,075 7.500% 02/29/96 4,122
1,825 7.375% 05/15/96 1,850
11,485 7.625% 05/31/96 11,679
4,495 7.875% 07/31/96 4,593
7,000 7.250% 11/15/96 7,133
6,000 6.250% 01/31/97 6,037
--------
38,692
U.S. TREASURY BONDS--9.9%
830 7.500% 11/15/16 897
22,260 7.500% 11/15/16 24,058
1,000 8.000% 11/15/21 1,147
--------
26,102
---------------------------------------
TOTAL U.S. GOVERNMENT OBLI-
GATIONS
(Cost $62,512) $64,794
---------------------------------------
FLOATING RATE BANK NOTES--
12.3%
Bergen Bank
$ 8,745 6.563% 08/31/95 $ 6,624
Hong Kong and
Shanghai Bank
7,515 6.750% 08/23/95 5,976
Lloyds Bank PLC
11,450 7.125% 06/13/95 9,647
National Australia
Bank
3,150 6.588% 10/13/95 2,678
National
Westminster Bank
8,950 6.188% 08/31/95 7,613
---------------------------------------
TOTAL FLOATING RATE BANK
NOTES
(Cost $33,003) $ 32,538
---------------------------------------
EURODOLLAR TIME DEPOSIT--
7.9%
Hong Kong &
Shanghai Bank,
Grand Cayman
$20,884 6.188% 06/01/95 $ 20,884
---------------------------------------
TOTAL EURODOLLAR TIME DE-
POSIT
(Cost $20,884) $ 20,884
---------------------------------------
TOTAL INVESTMENTS
(Cost $255,431) $261,886
---------------------------------------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of net assets.
Interest rates represent either the stated coupon rate, annualized yield on
date of purchase for discounted notes or, for floating rate securities, the
current reset rate.
*Stripped securities represent the right to receive either future interest
payments (Interest Only Stripped Securities) or principal payments (Principal
Only Stripped Securities). The value of interest only stripped securities
varies directly with changes in interest rates, while the value of principal
only stripped securities varies inversely with changes in interest rates. At
May 31, 1995, yields on these securities ranged from approximately 5.00% to
15.00%.
See accompanying notes to financial statements.
5
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
-----------------------------------------------
Principal Amount/ Maturity
Local Currency Rate Date Value
------------------------------------------------
INTERNATIONAL BOND PORTFOLIO
<C> <C> <S> <C>
DEBT OBLIGATIONS--95.2%
AUSTRALIAN DOLLAR--5.5%
Commonwealth of
Australia
1,580 10.000% 10/15/02 $ 1,215
Province of
Queensland--Treasury
950 8.000% 05/14/97 685
-------
1,900
BELGIAN FRANC--1.8%
Kingdom of Belgium
16,000 10.000% 08/02/00 634
BRITISH POUND STERLING--9.3%
Abbey National PLC
825 6.000% 08/10/99 1,215
Treasury of United
Kingdom
1,245 8.000% 06/10/03 1,987
-------
3,202
CANADIAN DOLLAR--7.2%
Dominion of Canada
1,000 6.500% 09/01/98 713
925 9.000% 12/01/01 725
Province of Quebec
1,325 10.250% 10/15/01 1,059
-------
2,497
DANISH KRONE--5.2%
Kingdom of Denmark
10,100 8.000% 03/15/06 1,804
FRENCH FRANC--10.8%
Electricite de
France
6,200 8.600% 04/09/04 1,334
Republic of France
6,750 8.500% 03/12/97 1,400
4,600 8.250% 02/27/04 976
-------
3,710
</TABLE>
<TABLE>
<CAPTION>
Description
-----------------------------------------------
Principal Amount/ Maturity
Local Currency Rate Date Value
------------------------------------------------
<C> <C> <S> <C>
GERMAN MARK--16.9%
Federal Republic of
Germany
2,900 7.500% 11/11/04 $ 2,169
LKB Global Bond
1,500 6.000% 05/10/99 1,080
Republic of Austria
1,670 8.000% 01/30/02 1,267
Republic of Finland
1,920 5.500% 02/09/01 1,309
-------
5,825
ITALIAN LIRA--8.4%
Republic of Italy
1,415,000 8.500% 04/01/99 781
3,870,000 8.500% 08/01/99 2,120
-------
2,901
JAPANESE YEN--17.7%
Asian Development
Bank
90,000 5.000% 02/05/03 1,213
European Bank for
Reconstruction and
Development
95,000 5.875% 11/26/99 1,281
International Bank
for
Reconstruction and
Development
100,000 4.500% 03/20/03 1,311
Japan Development
Bank
160,000 6.500% 9/20/01 2,313
-------
6,118
NETHERLANDS GUILDER--5.5%
Kingdom of the
Netherlands
1,675 8.500% 03/15/01 1,176
1,100 7.250% 10/01/04 722
-------
1,898
SPANISH PESETA--3.6%
Kingdom of Spain
35,000 11.450% 08/30/98 285
120,000 11.300% 01/15/02 964
-------
1,249
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
----------------------------------------------
Principal Amount/ Maturity
Local Currency Rate Date Value
-----------------------------------------------
<C> <C> <S> <C>
SWEDISH KRONA--1.1%
Kingdom of Sweden
2,700 11.000% 01/21/99 $ 376
UNITED STATES DOLLAR--2.2%
Treasury Notes
750 6.500% 05/15/05 761
-----------------------------------------------
TOTAL DEBT OBLIGATIONS
(Cost $29,948) $32,875
-----------------------------------------------
EURODOLLAR TIME DEPOSIT--2.1%
UNITED STATES DOLLAR
Hong Kong &
Shanghai Bank,
Grand Cayman
$ 741 6.188% 06/01/95 $ 741
-----------------------------------------------
TOTAL EURODOLLAR TIME DEPOSIT
(Cost $741) $ 741
-----------------------------------------------
TOTAL INVESTMENTS
(Cost $30,689) $33,616
-----------------------------------------------
</TABLE>
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of net assets.
See accompanying notes to financial statements.
7
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
-------------------------------------
Principal Maturity
Amount Rate Date Value
--------------------------------------
<C> <C> <S> <C>
SHORT DURATION PORTFOLIO
ASSET-BACKED SECURITY--4.1%
Bristol Oaks L.P.
Receivables Master
Trust, Series: 94-
1A
$ 2,624 6.473% 07/01/99 $ 2,624
--------------------------------------
TOTAL ASSET-BACKED SECURITY
(Cost $2,622) $ 2,624
--------------------------------------
COMMERCIAL PAPER--58.8%
AESOP Funding
Corp.
$ 520 6.083% 06/05/95 $ 520
Allied Lyons North
American Corp.
1,000 6.083% 06/15/95 998
Associates Corp.
North America
1,000 6.266% 06/10/95 1,000
American Telephone
& Telegraph Co.
600 6.083% 06/01/95 600
Barnett Bank Inc.
500 6.083% 06/15/95 499
Barton Capital
Corp.
500 6.134% 06/06/95 499
BMW U.S. Capital
Corp.
459 6.083% 06/05/95 459
1,000 6.083% 06/19/95 997
Caterpillar
Financial
Australia Ltd.
335 6.083% 06/12/95 334
Caterpillar
Financial Services
Corp.
500 6.134% 07/27/95 495
Central Hispano
North American
Capital Corp.
1,000 6.185% 06/29/95 995
Cheltenham &
Gloucester
Building Society
500 6.133% 06/29/95 498
Chrysler Financial
Corp.
1,000 6.083% 06/13/95 1,000
Cooper Industries
Inc.
303 6.083% 06/01/95 302
500 6.103% 06/02/95 500
1,000 6.103% 06/14/95 998
Countrywide
Funding Corp.
500 6.103% 06/06/95 499
1,000 6.083% 06/16/95 997
</TABLE>
<TABLE>
<CAPTION>
Description
-------------------------------------
Principal Maturity
Amount Rate Date Value
--------------------------------------
<C> <C> <S> <C>
CSW Corp.
$ 396 6.104% 06/05/95 $ 396
CSW Credit Inc.
618 6.083% 06/12/95 616
712 6.083% 06/22/95 710
Falcon Asset
Securitization
Corp.
700 6.083% 06/07/95 699
General Motors
Acceptance Corp.
1,000 6.236% 06/06/95 995
1,000 6.286% 06/28/95 998
GTE Corp.
1,000 6.083% 06/21/95 997
500 6.083% 07/21/95 496
H. J. Heinz Co.
800 6.083% 06/19/95 797
IBM Credit Corp.
1,000 6.033% 07/06/95 994
International
Lease Finance
Corp.
1,000 6.286% 06/01/95 1,000
Jet Funding Corp.
1,000 6.063% 08/31/95 985
Lehman Brothers
Holdings Inc.
1,000 6.083% 06/01/95 1,000
Merrill Lynch &
Co.
1,000 6.103% 07/07/95 994
Nationwide
Building Society
1,000 6.134% 07/20/95 991
New South Wales
Treasury Corp.
500 6.083% 07/20/95 496
NYNEX Corp.
500 6.133% 06/26/95 498
Paccar Financial
Corp.
1,000 6.083% 07/21/95 991
Quaker Oats Co.
1,000 6.205% 06/27/95 995
Ranger Funding
Corp.
1,500 6.134% 06/13/95 1,497
500 6.093% 07/17/95 496
Sanwa Business
Credit Corp.
750 6.083% 06/05/95 749
Sheffield
Receivables Corp.
500 6.286% 06/05/95 500
Spiegel Funding
Corp.
900 6.103% 07/12/95 893
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
-------------------------------------
Principal Maturity
Amount Rate Date Value
--------------------------------------
<C> <C> <S> <C>
COMMERCIAL PAPER--CONTINUED
Strategic Asset
Funding Corp.
$ 719 6.134% 06/30/95 $ 715
U.S. West
Communications
Inc.
800 6.083% 06/06/95 800
1,000 6.083% 06/22/95 996
WCP Funding Inc.
698 6.083% 06/12/95 697
Whirlpool
Financial Corp.
1,500 6.134% 07/20/95 1,487
Xerox Credit Corp.
540 6.083% 06/06/95 539
646 6.083% 06/23/95 643
--------------------------------------
TOTAL COMMERCIAL PAPER
(Cost $37,857) $37,850
--------------------------------------
DOMESTIC TIME DEPOSIT--1.5%
First Alabama Bank
$ 1,000 6.020% 08/07/95 $ 1,000
--------------------------------------
TOTAL DOMESTIC TIME DEPOSIT
(Cost $1,000) $ 1,000
--------------------------------------
EURODOLLAR TIME DEPOSITS--10.2%
Banco Central
Hispano, Grand
Cayman
$ 500 6.188% 06/01/95 $ 500
Bank of Tokyo,
Grand Cayman
1,000 6.188% 06/01/95 1,000
Bank One
Milwaukee, Grand
Cayman
1,000 6.156% 06/01/95 1,000
Comerica Bank,
Grand Cayman
1,500 6.156% 06/01/95 1,500
National Bank of
Detroit, London
500 5.969% 06/02/95 500
Society National
Bank, Grand Cayman
1,000 6.156% 06/01/95 1,000
Swedbank, Grand
Cayman
1,000 6.188% 06/01/95 1,000
Swiss Bank, Grand
Cayman
74 6.156% 06/01/95 74
--------------------------------------
TOTAL EURODOLLAR TIME DEPOSITS
(Cost $6,574) $ 6,574
--------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
---------------------------------------
Principal Maturity
Amount Rate Date Value
----------------------------------------
<C> <C> <S> <C>
REPURCHASE AGREEMENT--26.4%
Merrill Lynch,
Dated 5/31/95
Repurchase Price
$17,003
(Collateralized by
U.S. Treasury
Securities)
$17,000 6.150% 06/01/95 $17,000
----------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost $17,000) $17,000
----------------------------------------
TOTAL INVESTMENTS
(Cost $65,053) $65,048
----------------------------------------
</TABLE>
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of net assets.
COMMERCIAL PAPER INDUSTRY CONCENTRATIONS
<TABLE>
<CAPTION>
Percentage
Industry of Net Assets
--------------------------------------------------------------------------
<S> <C>
Business Services 1.7%
Communications 6.8
Construction and Industrial Machines and Computer Equipment 2.8
Domestic Depository Institutions 0.8
Electronic and Other Electric Components 5.1
Executive, Legislative and General Government 0.8
Financing Companies 3.7
Food and Kindred Products 4.3
Foreign Depository Institutions 6.5
Holding and Other Investment Companies 6.6
Measuring, Analyzing and Control Instruments 1.8
Nondepository Business Credit Institutions 4.1
Nondepository Personal Credit Institutions 2.3
Security and Commodity Broker/Dealers 3.1
Transportation Equipment 8.4
--------------------------------------------------------------------------
58.8%
--------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS
May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
-------------------------------------
Principal Maturity
Amount Rate Date Value
--------------------------------------
SHORT-INTERMEDIATE BOND PORTFOLIO
ASSET-BACKED SECURITIES--16.4%
AUTOMOTIVE--9.4%
<C> <C> <S> <C>
General Motors
Acceptance Corp.
Grantor Trust
$ 395 5.550% 05/15/97 $ 395
759 4.750% 08/15/97 751
Premier Auto Trust
5,000 4.750% 02/02/00 4,901
Western Financial
Automobile Loan
Trust
151 6.750% 01/01/97 151
934 4.700% 01/01/98 922
3,331 7.100% 01/01/00 3,372
-------
10,492
BROKERAGE SERVICES--4.2%
Salomon Brothers
Inc. Medium Term
Notes
2,000 5.700% 02/11/98 1,938
2,800 7.500% 06/15/99 2,801
-------
4,739
CREDIT CARD--2.8%
Standard Credit
Card Master Trust
3,140 5.875% 08/07/96 3,139
--------------------------------------
TOTAL ASSET-BACKED SECURI-
TIES
(Cost $18,598) $18,370
--------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATION--3.2%
DLJ Mortgage
Acceptance Corp.
$3,665 7.250% 05/25/24 $ 3,628
--------------------------------------
TOTAL COLLATERALIZED MORT-
GAGE
OBLIGATION (Cost $3,596) $ 3,628
--------------------------------------
CORPORATE BONDS--20.4%
FINANCIAL--13.2%
Associates Corp.
North America
$1,795 4.750% 08/01/96 $ 1,765
Greyhound
Financial Corp.
3,590 8.250% 03/11/97 3,695
ITT Financial
Corp.
5,000 8.850% 07/15/05 5,602
Transamerica
Financial Group
Inc.
3,565 8.550% 06/15/96 3,642
-------
14,704
</TABLE>
<TABLE>
<CAPTION>
Description
-------------------------------------
Principal Maturity
Amount Rate Date Value
--------------------------------------
<C> <C> <S> <C>
SANITARY SERVICES--4.2%
WMX Technologies,
Inc.
$4,450 6.220% 04/30/97 $ 4,702
UTILITIES--3.0%
New England
Telephone &
Telegraph Co.
3,000 7.875% 11/15/29 3,350
--------------------------------------
TOTAL CORPORATE BONDS
(Cost $21,683) $22,756
--------------------------------------
U.S. GOVERNMENT AGENCIES--
10.7%
COLLATERALIZED MORTGAGE OB-
LIGATIONS
FEDERAL NATIONAL MORTGAGE
ASSOCIATION
REMIC TRUST PRINCIPAL ON-
LY*--5.5%
Class B, Series:
1993-161
$2,000 -- 10/25/18 $ 1,809
Class G, Series:
1993-146
1,300 -- 05/25/23 1,191
Class G, Series:
1994-9
3,513 -- 11/25/23 3,128
-------
6,128
FEDERAL HOME LOAN MORTGAGE
ASSOCIATION REMIC TRUST
PRINCIPAL ONLY*--5.2%
Class BA, Series:
1571
6,660 -- 04/15/19 5,850
--------------------------------------
TOTAL U.S. GOVERNMENT AGEN-
CIES
(Cost $10,578) $11,978
--------------------------------------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
------------------------------------
Principal Maturity
Amount Rate Date Value
-------------------------------------
<C> <C> <S> <C>
U.S. GOVERNMENT OBLIGA-
TIONS--40.5%
U.S. TREASURY NOTES
$1,000 7.875% 02/15/96 $ 1,013
8,565 7.500% 02/29/96 8,664
4,845 7.375% 05/15/96 4,910
1,750 7.250% 08/31/96 1,778
7,325 7.250% 11/15/96 7,465
2,735 6.875% 04/30/97 2,784
12,000 5.125% 03/31/98 11,749
5,000 5.375% 05/31/98 4,920
2,000 5.125% 11/30/98 1,945
-------------------------------------
TOTAL U.S. GOVERNMENT OB-
LIGATIONS
(Cost $45,060) $ 45,228
-------------------------------------
EURODOLLAR TIME DEPOSIT--
7.9%
Hong Kong &
Shanghai Bank,
Grand Cayman
$8,845 6.188% 06/01/95 $ 8,845
-------------------------------------
TOTAL EURODOLLAR TIME DE-
POSIT
(Cost $8,845) $ 8,845
-------------------------------------
TOTAL INVESTMENTS
(Cost $108,360) $110,805
-------------------------------------
</TABLE>
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of net assets.
*Stripped securities represent the right to receive either future interest
payments (Interest Only Stripped Securities) or principal payments (Principal
Only Stripped Securities). The value of interest only stripped securities
varies directly with changes in interest rates, while the value of principal
only stripped securities varies inversely with changes in interest rates. At
May 31, 1995, the yields on these securities ranged from 4.63% to 5.14%.
See accompanying notes to financial statements.
11
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
----------------------------------------
Principal Maturity
Amount Rate Date Value
----------------------------------------------
U.S. GOVERNMENT SECURITIES PORTFOLIO
U.S. GOVERNMENT AGENCIES--9.4%
COLLATERALIZED MORTGAGE OBLIGATIONS--9.1%
FEDERAL HOME LOAN MORTGAGE CORPORATION--2.2%
<C> <C> <S> <C>
Class F, Series:
1230
$ 700 6.50% 05/15/04 $ 699
FEDERAL NATIONAL MORTGAGE ASSOCIATION
REMIC TRUST--6.9%
Class E, Series: 1992-
200
1,000 6.25 06/25/17 985
Class 14-F, Series:
1988-14
531 9.20 12/25/17 552
Class A, Series: 1995-
11*
925 -- 01/25/24 619
------
2,156
MORTGAGE-BACKED SECURITIES--0.3%
FARMER MAC AGRICULTURAL REAL ESTATE--0.1%
42 5.50% 02/25/98 41
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--0.2%
Pool #155756
14 8.500% 06/15/01 15
Pool #688
22 10.000% 12/20/01 23
Pool #183678
19 8.500% 05/15/02 20
------
58
----------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $2,908) $2,954
----------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
-----------------------------------------------------
Principal Maturity
Amount Rate Date Value
------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--88.6%
U.S. TREASURY NOTES
<C> <C> <S> <C>
$2,150 7.875% 02/15/96 $ 2,179
2,100 7.625% 05/31/96 2,135
1,600 7.875% 06/30/96 1,633
2,050 7.875% 07/31/96 2,095
3,800 8.000% 10/15/96 3,904
3,100 6.875% 03/31/97 3,155
5,300 5.125% 04/30/98 5,185
3,000 5.125% 11/30/98 2,918
2,800 7.000% 04/15/99 2,895
1,700 8.000% 08/15/99 1,822
------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $27,650) $27,921
------------------------------------------------------
SHORT TERM INVESTMENT--0.7%
Federal Home Loan Bank
Discount Note
$ 225 6.060% 06/01/95 $ 225
------------------------------------------------------
TOTAL SHORT TERM INVESTMENT
(Cost $225) $ 225
------------------------------------------------------
TOTAL INVESTMENTS
(Cost $30,783) $31,100
------------------------------------------------------
</TABLE>
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of net assets.
*The yield on this security was 7.40% at May 31, 1995.
See accompanying notes to financial statements.
12
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
------------------------------------
Principal Maturity
Amount Rate Date Value
-------------------------------------
U.S. TREASURY INDEX PORTFOLIO
<C> <C> <S> <C>
U.S. GOVERNMENT OBLIGA-
TIONS--97.7%
U.S. TREASURY NOTES--60.3%
$ 650 5.125% 11/15/95 $ 648
2,350 9.500% 11/15/95 2,387
2,680 7.500% 02/29/96 2,711
1,875 7.250% 11/15/96 1,911
1,800 6.875% 03/31/97 1,832
1,400 5.500% 07/31/97 1,389
2,105 8.875% 11/15/97 2,245
1,795 8.250% 07/15/98 1,911
1,115 9.250% 08/15/98 1,220
1,300 5.000% 01/31/99 1,257
800 5.250% 02/28/99 787
2,000 7.870% 11/15/99 2,141
1,300 6.375% 01/15/00 1,316
200 5.500% 04/15/00 196
880 8.000% 05/15/01 962
2,900 7.500% 05/15/02 3,113
2,700 6.250% 02/15/03 2,696
-------
28,722
U.S. TREASURY BONDS--31.6%
300 4.250% 11/30/95 298
1,710 10.750% 08/15/05 2,262
2,000 7.875% 11/15/07 2,157
435 13.875% 05/15/11 684
660 14.000% 11/15/11 1,055
590 13.250% 05/15/14 943
3,135 7.250% 05/15/16 3,298
2,120 8.125% 08/15/19 2,449
700 8.125% 05/15/21 812
1,200 6.250% 08/15/23 1,126
-------
15,084
</TABLE>
<TABLE>
<CAPTION>
Description
----------------------------------------
Principal Maturity
Amount Rate Date Value
-----------------------------------------
<C> <C> <S> <C>
U.S. TREASURY INTEREST ONLY
STRIPPED SECURITIES*--5.8%
$2,010 -- 11/15/96 $ 1,850
530 -- 05/15/97 473
475 -- 08/15/97 418
-------
2,741
-----------------------------------------
TOTAL U.S. GOVERNMENT OBLIGA-
TIONS
(Cost $45,408) $46,547
-----------------------------------------
SHORT TERM INVESTMENT--1.1%
Federal Home
Loan Bank
Discount Note
$ 545 6.060% 06/01/95 $ 545
-----------------------------------------
TOTAL SHORT TERM INVESTMENT
(Cost $545) $ 545
-----------------------------------------
TOTAL INVESTMENTS
(Cost $45,953) $47,092
-----------------------------------------
</TABLE>
The percentage shown for each investment category reflects the value of
investments in that category as a percentage of net assets.
*Stripped securities represent the right to receive either future interest
payments (Interest Only Stripped Securities) or principal payments (Principal
Only Stripped Securities). The value of interest only stripped securities
varies directly with changes in interest rates, while the value of principal
only stripped securities varies inversely with changes in interest rates. At
May 31, 1995, yields on these securities ranged from approximately 5.59% to
5.68%.
See accompanying notes to financial statements.
13
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
May 31, 1995
(All amounts in thousands, except net asset value per unit)
(Unaudited)
<TABLE>
<CAPTION>
Short- U.S. U.S.
International Short Intermediate Government Treasury
Bond Bond Duration Bond Securities Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securi-
ties, at cost $255,431 $30,689 $48,053 $108,360 $30,783 $45,953
Repurchase agreements,
at cost -- -- 17,000 -- -- --
----------------------------------------------------------------------------------------------
Investments in securi-
ties, at value $261,886 $33,616 $48,048 $110,805 $31,100 $47,092
Repurchase agreements,
at value -- -- 17,000 -- -- --
Cash 167 28 -- 2 5 6
Receivables:
Interest 3,105 775 19 988 343 503
Fund units sold 7 -- 415 20 6 --
Investment securities
sold 5,205 2,238 -- -- -- --
Administrator 13 -- 30 7 6 6
Deferred organization
costs, net 35 62 59 35 38 35
Other assets 27 166 37 49 37 28
----------------------------------------------------------------------------------------------
TOTAL ASSETS 270,445 36,885 65,608 111,906 31,535 47,670
----------------------------------------------------------------------------------------------
LIABILITIES:
Payable for:
Fund units redeemed 2,214 6 1,013 33 -- --
Investment securities
purchased 3,437 2,196 -- -- -- --
Distribution -- -- 63 -- -- --
Accrued expenses and
other liabilities:
Advisory fees 56 20 9 23 7 6
Administration fees 22 3 14 9 3 4
Custodian fees 15 6 24 10 8 8
Transfer agent fees 2 -- 1 1 -- --
Other 57 121 105 29 21 16
----------------------------------------------------------------------------------------------
TOTAL LIABILITIES 5,803 2,352 1,229 105 39 34
----------------------------------------------------------------------------------------------
NET ASSETS:
Paid-in capital 269,195 31,564 64,935 110,314 31,621 48,432
Accumulated undistrib-
uted (distributions in
excess of) net invest-
ment income (102) (229) 35 135 37 58
Accumulated net realized
gain (loss) on invest-
ment and foreign cur-
rency transactions (10,906) 271 (586) (1,093) (479) (1,993)
Net unrealized apprecia-
tion (depreciation) on
investments 6,455 1,097 (5) 2,445 317 1,139
Net unrealized gain on
translation of assets
and liabilities denomi-
nated in foreign cur-
rencies -- 1,830 -- -- -- --
----------------------------------------------------------------------------------------------
NET ASSETS $264,642 $34,533 $64,379 $111,801 $31,496 $47,636
----------------------------------------------------------------------------------------------
Total units outstanding
(no par value), unlim-
ited units
authorized
Class A 13,219 1,568 6,443 5,465 1,588 2,341
Class D 4 -- -- 1 2 1
----------------------------------------------------------------------------------------------
Net asset value, offer-
ing and redemption
price per unit
Class A $ 20.01 $ 22.02 $ 9.99 $ 20.46 $ 19.80 $ 20.35
Class D $ 20.00 -- -- $ 20.44 $ 19.77 $ 20.33
----------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six Months Ended May 31, 1995
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Short- U.S. U.S.
International Short Intermediate Government Treasury
Bond Bond Duration Bond Securities Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTEREST INCOME: $ 8,341 $1,104(a) $2,214 $2,700 $ 809 $1,047
----------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees
(net of voluntary waiv-
ers of $451, $31, $91,
$176, $49 and $53, re-
spectively) 322 107 54 126 35 32
Administration fees (net
of voluntary waivers of
$114, $23, $--, $75,
$21 and $32,
respectively) 129 12 91 50 14 20
Custodian fees 22 9 39 12 9 10
Transfer agent fees 13 2 1 5 1 2
Registration fees 17 8 37 14 10 12
Professional fees 13 3 14 2 3 2
Trustee fees 3 1 3 1 1 1
Amortization of deferred
organization costs 7 8 10 7 7 7
Other 16 2 20 5 5 5
----------------------------------------------------------------------------------------------
TOTAL EXPENSES 542 152 269 222 85 91
Less: Expenses reimburs-
able by
administrator (78) (5) (178) (41) (34) (36)
----------------------------------------------------------------------------------------------
Net expenses 464 147 91 181 51 55
----------------------------------------------------------------------------------------------
Net investment income 7,877 957 2,123 2,519 758 992
Net realized gain (loss)
on investment
transactions (3,564) (181) (16) (226) (159) (80)
Net realized gain on
foreign currency
transactions -- 519 -- -- -- --
Net change in unrealized
appreciation
(depreciation) of in-
vestments 26,991 1,812 173 5,025 1,315 3,577
Net change in unrealized
gain on translation of
assets and liabilities
denominated in
foreign currencies -- 1,238 -- -- -- --
----------------------------------------------------------------------------------------------
NET INCREASE IN NET AS-
SETS
RESULTING FROM OPERA-
TIONS $ 31,304 $4,345 $2,280 $7,318 $1,914 $4,489
----------------------------------------------------------------------------------------------
</TABLE>
(a) Net of $6 in foreign withholding taxes.
See accompanying notes to financial statements.
15
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended May 31, 1995 (Unaudited) and Year Ended November 30,
1994
(All amounts in thousands)
<TABLE>
<CAPTION>
International
Bond Portfolio Bond Portfolio
1994
1995 1994 1995 (a)
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS:
Net investment income $ 7,877 $ 17,760 $ 957 $ 1,030
Net realized gain (loss) on investment
transactions (3,564) (7,342) (181) 45
Net realized gain on foreign currency
transactions -- -- 519 33
Net change in unrealized appreciation
(depreciation) of investments 26,991 (20,257) 1,812 (715)
Net change in unrealized gains on
translation of assets and liabilities
denominated in foreign currencies -- -- 1,238 592
-------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 31,304 (9,839) 4,345 985
-------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A UNITHOLDERS:
Net investment income (7,875) (18,190) (993) (1,139)
In excess of net investment income (102) -- (229) --
Net realized gain on investment
transactions -- (1,813) -- --
Paid-in capital -- (147) -- --
-------------------------------------------------------------------------------
Total distributions to Class A
unitholders (7,977) (20,150) (1,222) (1,139)
-------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS D UNITHOLDERS:
Net investment income (2) -- -- --
Net realized gain on investment
transactions -- -- -- --
Paid-in capital -- -- -- --
-------------------------------------------------------------------------------
Total distributions to Class D
unitholders (2) -- -- --
-------------------------------------------------------------------------------
CLASS A UNIT TRANSACTIONS:
Proceeds from the sale of units 27,252 140,320 4,965 27,325
Reinvested distributions 6,960 18,951 975 1,009
Cost of units redeemed (50,354) (117,004) (1,477) (1,233)
-------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from
Class A unit transactions (16,142) 42,267 4,463 27,101
-------------------------------------------------------------------------------
CLASS D UNIT TRANSACTIONS:
Proceeds from the sale of units 55 16 -- --
Reinvested distributions -- -- -- --
Cost of units redeemed (2) -- -- --
-------------------------------------------------------------------------------
Net increase in net assets resulting
from
Class D unit transactions 53 16 -- --
-------------------------------------------------------------------------------
Net increase (decrease) 7,236 12,294 7,586 26,947
Net assets--beginning of period 257,406 245,112 26,947 --
-------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $264,642 $ 257,406 $34,533 $26,947
-------------------------------------------------------------------------------
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS
OF) NET INVESTMENT INCOME $(102) $0 $(229) $36
-------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on March 28, 1994.
See accompanying notes to financial statements.
16
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Short- U.S. Government
Short Duration Intermediate Securities U.S. Treasury
Portfolio Bond Portfolio Portfolio Index Portfolio
1995 1994 1995 1994 1995 1994 1995 1994
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2,123 $ 6,043 $ 2,519 $ 5,035 $ 758 $ 1,254 $ 992 $ 3,128
(16) (570) (226) (820) (159) (294) (80) (1,913)
-- -- -- -- -- -- -- --
173 (61) 5,025 (3,349) 1,315 (1,070) 3,577 (3,810)
-- -- -- -- -- -- -- --
------------------------------------------------------------------------------
2,280 5,412 7,318 866 1,914 (110) 4,489 (2,595)
------------------------------------------------------------------------------
(2,123) (6,008) (2,495) (5,036) (753) (1,251) (983) (3,160)
-- -- -- -- -- -- -- --
-- (86) -- -- -- -- -- (1,248)
-- -- -- -- -- -- -- --
------------------------------------------------------------------------------
(2,123) (6,094) (2,495) (5,036) (753) (1,251) (983) (4,408)
------------------------------------------------------------------------------
-- -- (1) -- (1) -- (1) --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
------------------------------------------------------------------------------
-- -- (1) -- (1) -- (1) --
------------------------------------------------------------------------------
14,413 55,756 30,282 28,699 12,171 16,317 12,554 4,736
1,899 5,376 2,252 4,611 687 1,165 855 3,934
(41,893) (157,412) (21,770) (40,481) (7,853) (23,308) (6,585) (35,818)
------------------------------------------------------------------------------
(25,581) (96,280) 10,764 (7,171) 5,005 (5,826) 6,824 (27,148)
------------------------------------------------------------------------------
-- -- 5 1 25 14 2 --
-- -- -- -- 1 -- -- --
-- -- -- -- (1) -- -- --
------------------------------------------------------------------------------
-- -- 5 1 25 14 2 --
------------------------------------------------------------------------------
(25,424) (96,962) 15,591 (11,340) 6,190 (7,173) 10,331 (34,151)
89,803 186,765 96,210 107,550 25,306 32,479 37,305 71,456
------------------------------------------------------------------------------
$ 64,379 $ 89,803 $111,801 $ 96,210 $31,496 $ 25,306 $47,636 $ 37,305
------------------------------------------------------------------------------
$35 $35 $135 $112 $37 $33 $58 $50
------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1995 (Unaudited) and Years Ended November 30,
<TABLE>
<CAPTION>
Bond Portfolio
-----------------------------------------------
Class A Class D
----------------------------- ----------------
1995 1994 1993 (a) 1995 1994 (b)
-------------------------------------------------------------------------------
------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 18.29 $ 20.70 $ 20.00 $18.29 $18.77
Income from investment opera-
tions:
Net investment income 0.57 1.42 1.42 0.55 0.28
Net realized and unrealized
gain (loss) on investment,
futures and foreign cur-
rency transactions 1.73 (2.21) 0.66 1.71 (0.48)
-------------------------------------------------------------------------------
------------
Total income (loss) from in-
vestment operations 2.30 (0.79) 2.08 2.26 (0.20)
-------------------------------------------------------------------------------
------------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income (0.57) (1.46) (1.38) (0.55) (0.28)
In excess of net investment
income (0.01) -- -- -- --
Net realized gain on
investment, futures and
foreign currency
transactions -- (0.15) -- -- --
Paid-in capital -- (0.01) -- -- --
-------------------------------------------------------------------------------
------------
Total distributions to
unitholders (0.58) (1.62) (1.38) (0.55) (0.28)
-------------------------------------------------------------------------------
------------
Net increase (decrease) 1.72 (2.41) 0.70 1.71 (0.48)
-------------------------------------------------------------------------------
------------
NET ASSET VALUE, END OF PE-
RIOD $ 20.01 $ 18.29 $ 20.70 $20.00 $18.29
-------------------------------------------------------------------------------
------------
Total return (c) 12.85% (4.04)% 10.61% 12.63% (0.91)%
Ratio of net expenses to av-
erage net assets (d) 0.36% 0.36 % 0.36% 0.75% 0.75 %
Ratio of net investment in-
come to average net assets
(d) 6.10% 7.31 % 7.84% 5.71% 6.31 %
Portfolio turnover rate 22.98% 103.09 % 89.06% 22.98% 103.09 %
Net assets at end of period
(in thousands) $264,568 $257,391 $245,112 $ 74 $ 15
Ratio information assuming no
voluntary waiver of advisory
and administration fees and
no expense limitations:
Ratio of expenses to average
net assets (d) 0.86% 0.87 % 0.92% 1.25% 1.26 %
Ratio of net investment in-
come to average net assets
(d) 5.60% 6.80 % 7.28% 5.21% 5.80 %
-------------------------------------------------------------------------------
------------
</TABLE>
(a) Commenced investment operations on January 11, 1993.
(b) Class D units were issued on September 14, 1994.
(c) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period.
(d) Annualized.
See accompanying notes to financial statements.
18
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International
Bond Portfolio Short Duration Portfolio
----------------- ----------------------------
Class A Class A
----------------- ----------------------------
1995 1994 (a) 1995 1994 1993 (b)
-------------------------------------------------------------------------------
-----------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 19.93 $ 20.00 $ 9.97 $ 10.03 $ 10.00
Income from investment opera-
tions:
Net investment income 0.64 0.79 0.29 0.40 0.14
Net realized and unrealized
gain (loss) on investment,
futures and foreign cur-
rency transactions 2.26 0.01 0.02 (0.05) 0.03
-------------------------------------------------------------------------------
-----------------------
Total income (loss) from in-
vestment operations 2.90 0.80 0.31 0.35 0.17
-------------------------------------------------------------------------------
-----------------------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income (0.67) (0.87) (0.29) (0.40) (0.14)
In excess of net investment
income (0.14) -- -- -- --
Net realized gain on invest-
ment and foreign currency
transactions -- -- -- (0.01) --
-------------------------------------------------------------------------------
-----------------------
Total distributions to
unitholders (0.81) (0.87) (0.29) (0.41) (0.14)
-------------------------------------------------------------------------------
-----------------------
Net increase (decrease) 2.09 (0.07) 0.02 (0.06) 0.03
-------------------------------------------------------------------------------
-----------------------
NET ASSET VALUE, END OF PE-
RIOD $ 22.02 $ 19.93 $ 9.99 $ 9.97 $ 10.03
-------------------------------------------------------------------------------
-----------------------
Total return (c) 14.77% 4.03% 3.21% 3.64% 1.73%
Ratio of net expenses to av-
erage net assets (d) 0.96% 0.96% 0.25% 0.25% 0.32%
Ratio of net investment in-
come to average net assets
(d) 6.27% 5.93% 5.76% 3.93% 3.00%
Portfolio turnover rate 35.76% 88.65% 678.80% 1,364.00% 434.32%
Net assets at end of period
(in thousands) $34,533 $26,947 $64,379 $ 89,803 $186,765
Ratio information assuming no
voluntary waiver of advisory
and administration fees and
no expense limitations:
Ratio of expenses to average
net assets (d) 1.34% 1.49% 0.99% 0.77% 0.50%
Ratio of net investment in-
come to average net assets
(d) 5.89% 5.40% 5.02% 3.41% 2.82%
-------------------------------------------------------------------------------
-----------------------
</TABLE>
(a) Commenced investment operations on March 28, 1994.
(b) Commenced investment operations on June 2, 1993.
(c) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period.
(d) Annualized.
See accompanying notes to financial statements.
19
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1995 (Unaudited) and Years Ended November 30,
<TABLE>
<CAPTION>
Short-Intermediate Bond Portfolio
---------------------------------------------
Class A Class D
--------------------------- ----------------
1995 1994 1993 (a) 1995 1994 (b)
------------------------------------------------------------------------------
-----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 19.53 $ 20.33 $ 20.00 $19.53 $19.80
Income from investment opera-
tions:
Net investment income 0.49 0.97 0.85 0.46 0.23
Net realized and unrealized
gain (loss) on investment,
futures and foreign currency
transactions 0.93 (0.80) 0.31 0.91 (0.27)
------------------------------------------------------------------------------
-----------
Total income (loss) from in-
vestment operations 1.42 0.17 1.16 1.37 (0.04)
------------------------------------------------------------------------------
-----------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income (0.49) (0.97) (0.83) (0.46) (0.23)
Net realized gain on
investment, futures and
foreign currency
transactions -- -- -- -- --
------------------------------------------------------------------------------
-----------
Total distributions to
unitholders (0.49) (0.97) (0.83) (0.46) (0.23)
------------------------------------------------------------------------------
-----------
Net increase (decrease) 0.93 (0.80) 0.33 0.91 (0.27)
------------------------------------------------------------------------------
-----------
NET ASSET VALUE, END OF PERIOD $ 20.46 $ 19.53 $ 20.33 $20.44 $19.53
------------------------------------------------------------------------------
-----------
Total return (c) 7.35% 0.84% 5.90% 7.09% (0.38)%
Ratio of net expenses to aver-
age net assets (d) 0.36% 0.36% 0.36% 0.75% 0.75 %
Ratio of net investment income
to average net assets (d) 5.00% 4.84% 4.79% 4.61% 4.42 %
Portfolio turnover rate 15.81% 48.67% 19.48% 15.81% 48.67 %
Net assets at end of period
(in thousands) $111,794 $96,209 $107,550 $ 7 $ 1
Ratio information assuming no
voluntary waiver of advisory
and administration fees and
no expense limitations:
Ratio of expenses to average
net assets (d) 0.94% 0.95% 1.00% 1.33% 1.34 %
Ratio of net investment income
to average net assets (d) 4.42% 4.25% 4.15% 4.03% 3.83 %
------------------------------------------------------------------------------
-----------
</TABLE>
(a) Commenced investment operations on January 11, 1993.
(b) Class D units were issued on September 14, 1994.
(c) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period.
(d) Annualized.
See accompanying notes to financial statements.
20
<PAGE>
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government Securities Portfolio
---------------------------------------------
Class A Class D
--------------------------- ----------------
1995 1994 1993 (a) 1995 1994 (b)
------------------------------------------------------------------------------
-----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 19.05 $ 20.07 $ 20.00 $19.05 $19.43
Income from investment opera-
tions:
Net investment income 0.51 0.91 0.55 0.48 0.22
Net realized and unrealized
gain (loss) on investment,
futures and foreign currency
transactions 0.75 (1.02) 0.05 0.72 (0.38)
------------------------------------------------------------------------------
-----------
Total income (loss) from in-
vestment operations 1.26 (0.11) 0.60 1.20 (0.16)
------------------------------------------------------------------------------
-----------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income (0.51) (0.91) (0.53) (0.48) (0.22)
Net realized gain on invest-
ment, futures and foreign
currency transactions -- -- -- -- --
Paid-in capital -- -- -- -- --
------------------------------------------------------------------------------
-----------
Total distributions to
unitholders (0.51) (0.91) (0.53) (0.48) (0.22)
------------------------------------------------------------------------------
-----------
Net increase (decrease) 0.75 (1.02) 0.07 0.72 (0.38)
------------------------------------------------------------------------------
-----------
NET ASSET VALUE, END OF PERIOD $ 19.80 $ 19.05 $ 20.07 $19.77 $19.05
------------------------------------------------------------------------------
-----------
Total return (c) 6.75% (0.57)% 3.00% 6.45% (0.89)%
Ratio of net expenses to aver-
age net assets (d) 0.36% 0.36 % 0.43% 0.75% 0.75 %
Ratio of net investment income
to average net assets (d) 5.38% 4.62 % 4.18% 4.99% 4.65 %
Portfolio turnover rate 26.25% 45.55 % 20.59% 26.25% 45.55 %
Net assets at end of period
(in thousands) $31,457 $25,293 $32,479 $ 39 $ 13
Ratio information assuming no
voluntary waiver of advisory
and administration fees and
no expense limitations:
Ratio of expenses to average
net assets (d) 1.10% 1.12 % 1.18% 1.49% 1.51 %
Ratio of net investment income
to average net assets (d) 4.64% 3.86 % 3.43% 4.25% 3.89 %
------------------------------------------------------------------------------
-----------
</TABLE>
(a) Commenced investment operations on April 5, 1993.
(b) Class D units were issued on September 15, 1994.
(c) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period.
(d) Annualized.
See accompanying notes to financial statements.
21
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1995 (Unaudited) and Years Ended November 30,
<TABLE>
<CAPTION>
U.S. Treasury Index Portfolio
---------------------------------------------
Class A Class D
--------------------------- ----------------
1995 1994 1993 (a) 1995 1994 (b)
-------------------------------------------------------------------------------
------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 18.77 $ 21.05 $ 20.00 $18.77 $18.80
Income from investment opera-
tions:
Net investment income 0.45 1.15 0.95 0.41 0.09
Net realized and unrealized
gain (loss) on investment,
futures and foreign currency
transactions 1.57 (1.93) 1.02 1.56 (0.03)
-------------------------------------------------------------------------------
------------
Total income (loss) from invest-
ment operations 2.02 (0.78) 1.97 1.97 0.06
-------------------------------------------------------------------------------
------------
DISTRIBUTIONS TO UNITHOLDERS
FROM:
Net investment income (0.44) (1.14) (0.92) (0.41) (0.09)
Net realized gain on invest-
ment, futures and foreign cur-
rency transactions -- (0.36) -- -- --
Paid-in capital -- -- -- -- --
-------------------------------------------------------------------------------
------------
Total distributions to
unitholders (0.44) (1.50) (0.92) (0.41) (0.09)
-------------------------------------------------------------------------------
------------
Net increase (decrease) 1.58 (2.28) 1.05 1.56 (0.03)
-------------------------------------------------------------------------------
------------
NET ASSET VALUE, END OF PERIOD $ 20.35 $ 18.77 $ 21.05 $20.33 $18.77
-------------------------------------------------------------------------------
------------
Total return (c) 10.82% (3.80)% 9.94% 10.57% 0.58%
Ratio of net expenses to average
net assets (d) 0.26% 0.26 % 0.26% 0.65% 0.65%
Ratio of net investment income
to average net assets (d) 4.66% 5.60 % 5.11% 4.27% 6.05%
Portfolio turnover rate 22.76% 52.80 % 77.75% 22.76% 52.80%
Net assets at end of period (in
thousands) $47,633 $37,305 $71,456 $ 3 $ --
Ratio information assuming no
voluntary waiver of advisory
and administration fees and no
expense limitations:
Ratio of expenses to average net
assets (d) 0.83% 0.79 % 0.83% 1.22% 1.18%
Ratio of net investment income
to average net assets (d) 4.09% 5.07 % 4.54% 3.70% 5.52%
-------------------------------------------------------------------------------
------------
</TABLE>
(a) Commenced investment operations on January 11, 1993.
(b) Class D units were issued on September 16, 1994.
(c) Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the period.
(d) Annualized.
See accompanying notes to financial statements.
22
<PAGE>
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
May 31, 1995
(Unaudited)
1. ORGANIZATION
The Benchmark Funds (the "Trust") is a Massachusetts business trust registered
under the Investment Company Act of 1940 (as amended) as an open-end management
investment company. The Trust includes sixteen portfolios, each with its own
investment objective. The Northern Trust Company ("Northern") acts as the
Trust's investment adviser, transfer agent, and custodian. Goldman, Sachs & Co.
("Goldman Sachs") acts as the Trust's administrator and distributor. Presented
herein are the financial statements of the fixed income portfolios.
The International Bond Portfolio commenced investment operations on March 28,
1994. All other fixed income portfolios commenced investment operations during
the fiscal year ended November 30, 1993.
Each of the fixed income portfolios has four separate unit classes: Class A,
B, C and D. Each class is distinguished by the level of administrative support
and transfer agent service provided. As of May 31, 1995, only Class A and Class
D units are outstanding.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed which are in conformity with those generally accepted in the
investment company industry:
(a) Investment Valuation
Investments held by a portfolio are valued at the last quoted sale price on the
exchange on which such securities are primarily traded, or if any securities
are not traded on a valuation date, at the last quoted bid price. Securities
which are traded in the over-the-counter markets are valued at the last quoted
bid price. Any securities, including restricted securities, for which current
quotations are not readily available are valued at fair value as determined in
good faith by Northern under the supervision of the Board of Trustees
("Board"). Short-term investments are valued at amortized cost which Northern
has determined, pursuant to Board authorization, approximates market value.
(b) Repurchase Agreements
During the term of a repurchase agreement, the market value of the underlying
collateral, including accrued interest, is required to exceed the market value
of the repurchase agreement. The underlying collateral for all repurchase
agreements is held in a customer-only account of Northern, as custodian for the
Trust, at the Federal Reserve Bank of Chicago.
(c) Foreign Currency Translations
Values of investments denominated in foreign currencies are converted into U.S.
dollars using the spot market rate of exchange at the time of valuation.
Purchases and sales of investments and interest income are translated into U.S.
dollars using the spot market rate of exchange prevailing on the respective
dates of such transactions.
The portfolios isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held.
(d) Investment Transactions and Investment Income
Investment transactions are recorded on the trade date. Realized gains and
losses on investment transactions are calculated on the identified-cost basis.
Interest income is recorded on the accrual basis and includes amortization of
discounts and premiums.
(e) Forward Foreign Currency Exchange Contracts
The International Bond Portfolio is authorized to enter into forward foreign
currency exchange contracts for the purchase of a specific foreign currency at
a fixed price on a future date as a hedge or cross-hedge against
23
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
May 31, 1995
(Unaudited)
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
either specific transactions or portfolio positions. The aggregate principal
amounts of the contracts for which delivery is anticipated are reflected in the
portfolio's accounts, while the aggregate principal amounts are reflected net
in the accompanying Statement of Assets and Liabilities if the portfolio
intends to settle the contract prior to delivery. All commitments are "marked-
to-market" daily at the applicable translation rates and any resulting
unrealized gains or losses are recorded in the financial statements. The
portfolio records realized gains or losses when the forward contract is offset
by entry into a closing transaction or extinguished by delivery of the
currency. Risks may arise upon entering into these contracts from the potential
inability of counterparties to meet the terms of their contracts and from
unanticipated movements in the value of a foreign currency relative to the U.S.
dollar.
The contractual amounts of forward foreign currency exchange contracts do not
necessarily represent the amounts potentially subject to risk. The measurement
of the risks associated with these instruments is meaningful only when all
related and offsetting transactions are considered.
(f) Federal Taxes
It is each portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
each year substantially all of its taxable income and capital gains to its
unitholders. Therefore, no provision is made for federal taxes.
At November 30, 1994, the Trust's most recent tax year end, the following
portfolios had approximately the following amounts of capital loss
carryforwards for U.S. federal tax purposes:
<TABLE>
<CAPTION>
Portfolio Amount Years of Expiration
--------------------------------------------------------------
(in thousands)
<S> <C> <C>
Bond $6,154 2002
International Bond 67 2002
Short Duration 570 2002
Short-Intermediate Bond 861 2001 to 2002
U.S. Government Securities 320 2001 to 2002
U.S. Treasury Index 1,793 2002
--------------------------------------------------------------
</TABLE>
These amounts are available to be carried forward to offset future capital
gains to the extent permitted by applicable laws or regulations.
(g) Deferred Organization Costs
Organization related costs are being amortized on a straight-line basis over
five years.
(h) Expenses
Expenses arising in connection with a specific portfolio are allocated to that
portfolio. Certain expenses arising in connection with a class of units are
allocated to that class of units. Expenses incurred which do not specifically
relate to an individual portfolio are
allocated among the portfolios based on each portfolio's relative average net
assets for the period.
(i) Distributions
Dividends from net investment income are declared and paid as follows:
<TABLE>
<CAPTION>
Declared Paid
-----------------------------------------------
<S> <C> <C>
Bond Monthly Monthly
International Bond Quarterly Quarterly
Short Duration Daily Monthly
Short-Intermediate Bond Monthly Monthly
U.S. Government Securities Monthly Monthly
U.S. Treasury Index Monthly Monthly
-----------------------------------------------
</TABLE>
Each portfolio's net realized capital gains are distributed at least annually.
24
<PAGE>
--------------------------------------------------------------------------------
3. ADVISORY, TRANSFER AGENCY AND CUSTODIAN AGREEMENTS
As compensation for the services rendered as investment adviser, including the
assumption by
Northern of the expenses related thereto, Northern is entitled to a fee,
computed daily and payable monthly, at annual rates (expressed in terms of a
percentage of average daily net assets) of .60% for the Bond Portfolio, .90%
for the International Bond Portfolio, .40% for the Short Duration Portfolio,
.60% for the Short-Intermediate Bond Portfolio, .60% for the U.S. Government
Securities Portfolio and .40% for the U.S. Treasury Index Portfolio.
For the current fiscal year, Northern has voluntarily agreed to waive a
portion of its advisory fees. The resulting investment advisory fees (expressed
in terms of a percentage of average daily net assets) are .25% for the Bond
Portfolio, .70% for the International Bond Portfolio, .15% for the Short
Duration Portfolio, .25% for the Short-Intermediate Bond Portfolio, .25% for
the U.S. Government Securities Portfolio, and .15% for the U.S. Treasury Index
Portfolio. The effect of these waivers by Northern for the six months ended May
31, 1995 was to reduce advisory fees by approximately $451,000, $31,000,
$91,000, $176,000, $49,000 and $53,000 for the Bond, International Bond, Short
Duration, Short-Intermediate Bond, U.S. Government Securities and U.S. Treasury
Index Portfolios, respectively.
As compensation for the services rendered as transfer agent, including the
assumption by Northern of the expenses related thereto, Northern receives a
fee, computed daily and payable monthly, at an annual rate of .01%, .05%, .10%,
and .15% of the average daily net asset value of the outstanding Class A, B, C
and D units, respectively, for the Bond, International Bond, Short-Intermediate
Bond, U.S. Government Securities and U.S. Treasury Index Portfolios.
As compensation for the services rendered as custodian for the portfolios, and
for the services rendered as transfer agent for the Short Duration Portfolio,
including the assumption by Northern of the expenses related thereto, Northern
receives compensation based on a pre-determined schedule of charges approved by
the Board.
4. ADMINISTRATION AND DISTRIBUTION AGREEMENTS
As compensation for the services rendered as administrator, and the assumption
by Goldman Sachs of the expenses related thereto, Goldman Sachs is entitled to
receive from each portfolio a fee, computed daily and payable monthly, at an
annual rate of .25% of the first $100 million, .15% of the next $200 million,
.075% of the next $450 million and .05% of any excess over $750 million of the
average daily net assets of each portfolio. Goldman Sachs receives no
compensation under the Distribution Agreement.
Goldman Sachs has agreed to reimburse the Short Duration Portfolio for certain
expenses in the event that such expenses, as defined, exceed, on an annualized
basis, .10% of that portfolio's average daily net assets. The effect of this
reimbursement by Goldman Sachs for the six months ended May 31, 1995 was to
reduce expenses by approximately $178,000.
Furthermore, Goldman Sachs has voluntarily agreed to waive a portion of the
amount of its administration fees for the Bond, International Bond, Short-
Intermediate Bond, U.S. Government Securities and U.S. Treasury Index
Portfolios, to .10% of each
25
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
May 31, 1995
(Unaudited)
4. ADMINISTRATION AND DISTRIBUTION AGREEMENTS (CONTINUED)
portfolio's average daily net assets. The effect of these waivers by Goldman
Sachs for the six months ended May 31, 1995 was to reduce administration fees
by approximately $114,000, $23,000, $75,000, $21,000 and $32,000, respectively.
In addition, Goldman Sachs has voluntarily agreed to waive a portion of its
administration fees should overall administration fees earned during the prior
fiscal year exceed certain specified levels.
Additionally, Goldman Sachs has voluntarily agreed to reimburse the Bond,
International Bond, Short-Intermediate Bond, U.S. Government Securities, and
U.S. Treasury Index Portfolios for certain expenses in the event that such
expenses, as defined, exceed, on an annualized basis, .10% of each portfolio's
average daily net assets. The effect of these reimbursements by Goldman Sachs
for the six months ended May 31, 1995 was to reduce the expenses by
approximately $78,000, $5,000, $41,000, $34,000 and $36,000, respectively.
5. UNITHOLDER SERVICING PLAN
The Trust has adopted a Unitholder Servicing Plan pursuant to which the Trust
may enter into agreements with institutions or other financial intermediaries
under which they will render certain unitholder administrative support services
for their customers or other investors who beneficially own Class B, C and D
units. As compensation under the Unitholder Servicing Plan, the institution or
other financial intermediary receives a fee of up to .10%, .15% and .25% of the
average daily net asset value of the outstanding Class B, C and D units,
respectively.
6. INVESTMENT TRANSACTIONS
Investment transactions for the six months ended May 31, 1995 (excluding short-
term investments) were as follows:
<TABLE>
<CAPTION>
Proceeds
from sales Proceeds
and from sales
Purchases maturities and
of U.S. Purchases of U.S. maturities
Government of other Government of other
Obligations securities Obligations securities
-----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond $36,878 $16,857 $50,013 $13,320
International
Bond -- 14,444 -- 10,284
Short
Duration 27,758 45,036 27,836 51,820
Short-Intermediate Bond 11,489 7,529 7,203 7,864
U.S.
Government Securities 11,555 608 7,205 --
U.S. Treasury Index 16,001 -- 9,221 --
-----------------------------------------------------------------------
</TABLE>
On May 31, 1995, the composition of unrealized appreciation (depreciation) of
investment securities based on the aggregate cost of investments for federal
income tax purposes was as follows:
<TABLE>
<CAPTION>
Cost for
Federal
Income
Tax
Appreciation (Depreciation) Net purposes
--------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond $10,214 $(3,759) $6,455 $255,431
International Bond 3,040 (113) 2,927 30,689
Short Duration 2 (7) (5) 65,053
Short-Intermediate
Bond 3,089 (644) 2,445 108,360
U.S.
Government Securities 528 (211) 317 30,783
U.S. Treasury
Index 1,421 (282) 1,139 45,953
--------------------------------------------------------------------
</TABLE>
26
<PAGE>
--------------------------------------------------------------------------------
7. UNIT TRANSACTIONS
Transactions in Class A units for the six months ended May 31, 1995 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 1,465 369 (2,686) (852)
International Bond 243 46 (73) 216
Short Duration 1,446 191 (4,199) (2,562)
Short- Intermediate Bond 1,524 117 (1,102) 539
U.S. Government Securities 633 35 (407) 261
U.S. Treasury Index 647 44 (336) 355
----------------------------------------------------------------------
</TABLE>
Transactions in Class A units for the year ended November 30, 1994 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 6,964 973 (5,706) 2,231
International Bond 1,363 51 (62) 1,352
Short Duration 5,569 537 (15,730) (9,624)
Short-Intermediate Bond 1,433 232 (2,029) (364)
U.S. Government Securities 829 60 (1,180) (291)
U.S. Treasury Index 238 196 (1,843) (1,409)
----------------------------------------------------------------------
</TABLE>
Transactions in Class D units for the six months ended May 31, 1995 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 3 -- -- 3
Short-Intermediate Bond -- -- -- --
U.S. Government Securities 1 -- -- 1
U.S. Treasury Index -- -- -- --
----------------------------------------------------------------------
</TABLE>
Transactions in Class D units for the period ended November 30, 1994 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 1 -- -- 1
Short-Intermediate Bond 1 -- -- 1
U.S. Government Securities 1 -- -- 1
U.S. Treasury Index 1 -- -- 1
----------------------------------------------------------------------
</TABLE>
27
<PAGE>
THE BENCHMARK FUNDS
Investment Adviser, Transfer Agent andCustodian
The Northern Trust Company
50 S. LaSalle Street
Chicago, IL 60675
Administrator and Distributor
Goldman, Sachs & Co.
4900 Sears Tower
Chicago, IL 60606
Trustees
William H. Springer, Chairman
Edward J. Condon, Jr.
John W. English
James J. Gavin, Jr.
William B. Jordan
Frederick T. Kelsey
Richard P. Strubel
Officers
Marcia L. Beck, President
Paul W. Klug, Jr., Vice President
John W. Mosior, Vice President
Nancy L. Mucker, Vice President
Pauline Taylor, Vice President
Scott M. Gilman, Treasurer
Michael J. Richman, Secretary
Howard B. Surloff, Assistant Secretary
This Semi-Annual Report is
authorized for distribution to
prospective investors only
when preceded or accompanied
by a Prospectus which contains
facts concerning the
objectives and policies,
management, expenses and other
information.
The
Benchmark
Funds
Fixed
Income
Portfolios
Semi-Annual Report
May 31, 1995
