<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
MARKET VIEW
WHAT HAS CHANGED
While we successfully steered clear of misleading recession signals early in
the year, our insights were less rewarding in the latest quarter as the economy
strengthened faster and by more than we had anticipated. In April, we were
forecasting first half growth of 1.5% whereas now we see this growth running
around 3.0%. Earlier, we thought that Federal Reserve ("Fed") tightening would
not occur until early 1997, but we now believe that it could be brought forward
into this year. The stronger economy prompted a sharper-than-expected sell-off
in bonds, causing equities to mark time for the past five months. At present,
Treasury yields seem to have found a comfort range amid ongoing debate about
the Fed's ability to maintain the full employment-low inflation zone recently
achieved.
ECONOMIC PICK UP IN EVIDENCE
The U.S. economy is developing a self-perpetuating growth dynamic. Because
accommodative monetary policies are being followed in many other industrialized
countries, foreign demand is expected to amplify this recent trend. Although we
do not foresee boom-like conditions on the horizon, left unchecked, this faster
growth could lead to modest upward pressure on the underlying inflation rate.
Historically, sustained periods of unemployment below the current 5.5% rate
have been associated with rising consumer inflation. Given the momentum that
the economy is building, we believe that the unemployment rate will move below
its present level.
Fed officials have indicated in their official forecast that they expect
today's higher interest rate structure to slow the economy's growth in the
second half of this year. The interest-sensitive sectors of housing and
consumer durables are the prime candidates to weaken. With foreign demand
expected to augment domestic demand, we are skeptical that the economy will
slow enough to alleviate inflationary pressures unless the Fed undertakes some
modest tightening actions. We think that in the second half of 1996 the Fed
will start to tighten monetary policy in order to prevent inflationary
pressures from building. This tightening is likely to be of the fine-tuning
variety, which will result in a slowing in economic activity sufficient to
alleviate inflationary pressures, but will not result in a recession over the
next 12 to 18 months.
Because inflation psychology has been largely eliminated from the economy,
speculative excesses have not developed in this extended business cycle.
Although households in general may not yet be overburdened with debt, clearly
financial stresses are mounting, as evidenced by the highest credit card
delinquency rates in 15 years. Tightening credit standards are likely to
moderate consumer spending growth, thereby reinforcing the more restrictive Fed
policy we expect. Because of these factors, we believe that the Fed will need
to raise the federal funds rate by only 50 to 75 basis points to accomplish its
goal. It very well may be that a year from now, the Fed will be contemplating a
cut in rates.
BOND VOLATILITY TO CONTINUE; MONEY MARKET OFFERS VALUE
Although we believe that secular forces and the Fed will keep inflation well-
contained, we realize that cyclical forces are currently strong enough to test
our faith. As a result, interest rate volatility is expected to remain high, as
faster-than-forecasted growth in the first half of the year has damaged market
psychology. However, the market's ability to absorb "bad" news is improving and
supports our belief that the economy's near term strength
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 amount invested. The
Benchmark Money Market Portfolios seek to maintain a net asset value of $1.00
per unit, but there can be no assurance that they will be able to do so on a
continuous basis.
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
MARKET VIEW--CONTINUED
is largely reflected in the existing interest rate structure. If, as we expect,
the pace of activity returns to a more moderate growth track in the year's
second half, longer horizon bond investors should be rewarded for waiting out
the turbulence.
Chairman Greenspan's official re-appointment strengthens our faith in the
Fed's inflation fighting resolve. We believe Greenspan would like to leave as
his legacy an economic landscape where inflation is not a consideration in
making decisions. When viewed from this perspective, the current economic
environment poses some immediate challenges. Worries that above-trend growth
will ignite inflation have investors expecting a Fed tightening sometime in the
next quarter. Importantly, behavior such as this year's market correction in
anticipation of future tightening lessens the actual need for the Fed to act.
In an environment where the market is out in front, the monetary authorities
may only need to fine tune policy.
Our continued characterization of the bond market as normal recognizes that
the near-term obstacles to price appreciation are formidable. However, we
believe that fears of the impact of any Fed tightening are overdone and that
growth and inflation in the second half of 1996 will not move bond prices
appreciably from current levels. Over an intermediate horizon, we continue to
believe that, with real yields near 4.0%, the bond market offers value.
In the wake of the second quarter's further backup in rates, we feel that the
money market sector offers value as well. A spread of approximately 100 basis
points between overnight and two-year investments provides reasonable
compensation for investors willing to tolerate some price volatility in the
coming months. We continue to feel that investments can be made in longer cash
instruments given favorable real returns and the positive slope of the cash
yield curve. However, absent information suggesting slower growth, we recognize
that the market's bias remains towards higher short-term rates. We therefore
suggest that investments in longer cash instruments be made cautiously, since
volatility is likely to remain high in this election year.
July 8, 1996
2
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO
CERTIFICATES OF DEPOSIT--12.6%
DOMESTIC DEPOSITORY INSTITUTIONS--0.9%
First Alabama Bank
<S> <C> <C> <C>
$ 25,000 5.400% 08/16/96 $ 25,000
5,000 5.420 09/12/96 5,000
----------
30,000
FOREIGN DEPOSITORY INSTITUTIONS--11.7%
ABN-Amro Bank, New York
35,000 5.660 04/17/97 35,006
Australia & New Zealand Bank, London
23,000 5.230 07/29/96 23,000
27,000 5.230 04/29/97 27,000
Bank of Tokyo--Mitsubishi, London
5,000 5.430 07/29/96 5,000
Banque Nationale de Paris, Chicago
5,000 5.340 07/03/96 5,000
Bayerische Hypotheken Und Wechel,
London
75,000 5.430 11/18/96 75,004
Dai-Ichi Kangyo Bank, New York
20,000 5.440 08/01/96 20,000
Norinchukin Bank, London
43,000 5.390 06/14/96 43,000
Societe Generale, London
15,000 5.160 07/31/96 15,001
Societe Generale, New York
26,000 5.540 03/21/97 26,017
Sumitomo Bank Ltd., London
25,000 5.460 07/03/96 25,001
Sumitomo Bank Ltd., New York
7,000 5.520 06/10/96 7,000
Toronto Dominion Bank, London
48,000 5.400 10/25/96 48,000
58,000 5.410 11/25/96 58,000
----------
412,029
- ---------------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT $ 442,029
- ---------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
COMMERCIAL PAPER--64.3%
ASSET-BACKED SECURITIES--8.4%
Atlantic Asset Securitization Corp.
<S> <C> <C> <C>
$ 14,147 5.351% 06/11/96 $ 14,126
Barton Capital Corp.
18,067 5.461 10/11/96 17,713
Beta Finance Corp.
4,000 5.360 07/31/96 3,965
3,000 5.370 08/14/96 2,967
Centric Funding
2,500 5.368 06/05/96 2,499
21,605 5.372 06/19/96 21,547
1,000 5.391 07/12/96 994
1,340 5.411 07/29/96 1,328
10,000 5.398 07/30/96 9,912
11,500 5.400 08/01/96 11,396
2,000 5.416 08/12/96 1,979
Jet Funding Corp. (Bank of Tokyo LOC)
10,000 5.578 06/28/96 9,959
28,000 5.465 07/31/96 27,748
Monte Rosa Capital Corp.
1,865 5.342 06/13/96 1,862
Pooled Account Receivables Corp.
10,800 5.351 06/11/96 10,784
31,200 5.344 06/20/96 31,112
Sheffield Receivables Corp.
7,670 5.345 06/10/96 7,660
11,800 5.326 06/18/96 11,771
2,865 5.352 06/19/96 2,857
Stellar Capital Corp. (Bank of Tokyo
IRC)
10,000 5.477 06/03/96 9,997
2,000 5.391 06/11/96 1,997
12,000 5.450 07/18/96 11,916
19,000 5.450 07/19/96 18,864
Tri-Lateral Capital U.S.A., Inc.
10,400 5.423 06/25/96 10,363
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ----------------------------------------------------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO--CONTINUED
ASSET-BACKED SECURITIES--CONTINUED
Wood Street Funding Corp.
<S> <C> <C> <C>
$ 12,400 5.374 07/09/96 $ 12,330
7,300 5.390 07/11/96 7,257
6,209 5.380 07/17/96 6,167
3,742 5.382 07/19/96 3,715
7,268 5.387 07/25/96 7,210
4,881 5.396 08/06/96 4,833
11,000 5.399 08/22/96 10,867
-----------
297,695
COMMUNICATIONS--7.4%
Ameritech Capital Funding Corp.
35,000 5.423 06/18/96 34,913
GTE Finance Corp.
20,000 5.460 06/03/96 19,994
15,000 5.461 06/04/96 14,993
5,000 5.380 06/21/96 4,985
8,000 5.381 06/24/96 7,973
35,000 5.357 07/01/96 34,845
Lucent Technologies, Inc.
69,000 5.311 06/14/96 68,869
NYNEX Corp.
26,000 5.391 06/07/96 25,977
12,000 5.372 06/25/96 11,958
17,000 5.393 08/14/96 16,814
20,000 5.394 08/15/96 19,778
-----------
261,099
CONSTRUCTION, INDUSTRIAL MACHINES AND COMPUTER
EQUIPMENT--2.0%
Cooperative Association of Tractor
Dealers, Inc.
3,600 5.374 06/07/96 3,597
17,100 5.368 07/15/96 16,989
4,000 5.385 07/25/96 3,968
5,300 5.423 08/13/96 5,243
6,600 5.417 09/03/96 6,508
19,800 5.498 11/12/96 19,317
Dover Corp.
1,000 5.373 06/20/96 997
John Deere Capital Corp.
300 5.353 06/06/96 300
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Interest Rate Maturity Date Amortized Cost
- ---------------------------------------------------------------------------------------------
Xerox Corp.
<S> <C> <C> <C>
$ 11,200 5.323% 06/18/96 $ 11,172
Xerox Credit Corp.
1,500 5.326 06/19/96 1,496
----------
69,587
ELECTRIC SERVICES--1.0%
Vattenfall Treasury, Inc.
35,000 5.235 07/29/96 34,712
ELECTRONIC AND OTHER ELECTRICAL COMPONENTS--5.8%
General Electric Capital Corp.
83,100 5.503 06/03/96 83,075
2,450 5.322 06/12/96 2,446
General Electric Financial Services,
Inc.
50,000 5.391 06/17/96 49,883
Siemens Capital Corp.
2,300 5.342 07/08/96 2,287
Whirlpool Financial Corp.
19,000 5.385 06/21/96 18,944
48,000 5.402 08/26/96 47,389
----------
204,024
EXECUTIVE, LEGISLATIVE AND GENERAL GOVERNMENT--1.4%
Kingdom of Sweden
50,000 5.426 11/15/96 48,775
FOOD AND KINDRED PRODUCTS--1.7%
B.A.T. Capital Corp.
4,925 5.323 06/14/96 4,916
Cargill, Inc.
1,525 5.353 06/13/96 1,522
Coca Cola Enterprises, Inc.
25,000 5.400 07/18/96 24,825
10,000 5.420 08/12/96 9,893
Pepsico, Inc.
1,125 5.321 06/12/96 1,123
Philip Morris Companies, Inc.
13,025 5.327 06/19/96 12,990
Thames Assets Global Securitization
No. 1, Inc.
4,546 5.386 06/11/96 4,539
----------
59,808
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
FOOD STORES--0.3%
Big B, Inc. (Nations Bank Georgia
LOC)
<S> <C> <C> <C>
$ 5,000 5.425% 07/01/96 $ 4,978
7,000 5.449 07/19/96 6,950
----------
11,928
</TABLE>
FOREIGN DEPOSITORY INSTITUTIONS--4.3%
Abbey National North America
<TABLE>
<S> <C> <C> <C>
25,000 5.223 06/17/96 24,943
BEX America Finance, Inc.
10,000 5.331 06/03/96 9,997
20,000 5.126 06/06/96 19,986
25,000 5.364 07/09/96 24,860
Britannia Building Society
18,000 5.086 08/06/96 17,836
Central Hispano N.A. Capital Corp.
21,000 5.402 08/20/96 20,751
Nordbanken N.A., Inc.
30,000 5.364 06/27/96 29,884
Spintab-Swedmortgage AB
2,000 5.442 07/15/96 1,987
----------
150,244
GENERAL MERCHANDISE STORES--1.4%
Sears Roebuck Acceptance Corp.
50,000 5.402 08/16/96 49,440
HOLDING AND OTHER INVESTMENT COMPANIES--0.6%
AESOP Funding Corp.
16,912 5.342 06/17/96 16,872
CSW Credit, Inc.
1,000 5.346 07/12/96 994
2,000 5.346 07/15/96 1,987
----------
19,853
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Interest Rate Maturity Date Amortized Cost
- ---------------------------------------------------------------------------------------------
MANUFACTURING INDUSTRIES--4.4%
Hanson Finance (U.K.) PLC
<S> <C> <C> <C>
$ 6,500 5.403% 06/04/96 $ 6,497
18,000 5.394 06/12/96 17,970
10,000 5.407 06/17/96 9,976
9,000 5.378 06/20/96 8,975
34,000 5.374 06/21/96 33,899
79,000 5.416 07/01/96 78,645
----------
155,962
NONDEPOSITORY BUSINESS CREDIT INSTITUTIONS--5.2%
Associates Corp. of North America
89,000 5.503 06/03/96 88,973
FBA Properties, Inc. (Nations Bank
Georgia LOC)
11,300 5.464 08/12/96 11,178
Heller Financial Corp.
25,000 5.500 06/28/96 24,898
National Australia Funding, Delaware,
Inc.
50,000 5.426 11/15/96 48,775
SRD Finance, Inc. (Bank of Tokyo LOC)
10,000 5.484 07/11/96 9,939
----------
183,763
NONDEPOSITORY PERSONAL CREDIT INSTITUTIONS--4.7%
American General Finance Corp.
50,000 5.391 06/17/96 49,883
Countrywide Funding Corp.
35,000 5.331 06/20/96 34,902
42,000 5.362 07/02/96 41,807
20,000 5.345 07/12/96 19,879
19,000 5.423 07/24/96 18,850
----------
165,321
PROFESSIONAL SERVICES--0.8%
First Data Corp.
10,000 5.388 07/03/96 9,953
20,000 5.441 08/02/96 19,815
----------
29,768
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO--CONTINUED
SECURITY AND COMMODITY BROKER/DEALERS--1.7%
Lehman Brothers Holdings, Inc.
<S> <C> <C> <C>
$ 7,000 5.474% 07/11/96 $ 6,958
43,000 5.441 07/19/96 42,692
10,000 5.423 08/27/96 9,868
----------
59,518
TRANSPORTATION--13.0%
American Honda Finance Corp.
23,295 5.427 06/28/96 23,201
14,000 5.353 07/09/96 13,921
27,700 5.394 07/10/96 27,540
Chrysler Financial Corp.
25,000 5.388 06/03/96 24,993
44,000 5.480 06/10/96 43,940
45,000 5.469 06/11/96 44,932
10,000 5.469 06/14/96 9,980
10,000 5.458 06/27/96 9,961
10,000 5.374 06/27/96 9,961
Chrysler Financial Corp., Canada
6,000 5.347 07/02/96 5,970
Ford Motor Credit Corp.
17,000 5.098 06/10/96 16,979
50,000 5.345 07/12/96 49,698
General Motors Acceptance Corp.
10,000 5.386 06/10/96 9,987
25,000 5.354 06/19/96 24,933
9,000 5.392 06/25/96 8,968
15,000 5.375 07/12/96 14,909
20,000 5.411 08/12/96 19,786
30,000 5.381 08/14/96 29,673
2,806 5.580 12/16/96 2,723
General Motors Acceptance Corp.,
Canada, Ltd.
15,000 5.453 06/20/96 14,957
20,000 5.471 07/08/96 19,889
10,000 5.433 08/19/96 9,882
Volkswagen of America, Inc.
20,000 5.324 06/14/96 19,962
----------
456,745
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
WHOLESALE TRADE DURABLE GOODS--0.2%
USL Capital Corp.
<S> <C> <C> <C>
$ 8,000 5.334% 07/02/96 $ 7,963
- ---------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER $2,266,205
- ---------------------------------------------------------------------------------------------------
CORPORATE NOTES--4.7%
AT&T Capital Corp. FRN
$ 50,000 5.492% 06/24/96 $ 50,000
Associates Corporation of America
500 8.375 06/01/96 500
Beneficial Corp.
16,000 8.050 08/30/96 16,094
Countrywide Funding Corp. FRN
14,000 6.212 08/05/96 14,012
GE Engine Receivables 1995-1 Trust
FRN
23,166 5.453 06/03/96 23,167
Household Bank Corp.
5,000 5.400 08/01/96 5,000
International Business Machines
Credit Corp.
55,000 5.000 02/24/97 54,957
- ---------------------------------------------------------------------------------------------------
TOTAL CORPORATE NOTES $ 163,730
- ---------------------------------------------------------------------------------------------------
GUARANTEED INVESTMENT CONTRACTS--3.1%
General American Life Insurance Co.
FRN
$ 75,000 5.716% 06/24/96 $ 75,000
Transamerica Life Insurance and
Annuity Co. FRN
35,000 5.402 06/03/96 35,000
- ---------------------------------------------------------------------------------------------------
TOTAL GUARANTEED INVESTMENT CONTRACTS $ 110,000
- ---------------------------------------------------------------------------------------------------
MUNICIPAL INVESTMENTS--0.8%
Hydro-Quebec Corp. Monthly Put Tender
Option Bond FRN
$ 9,000 5.553% 06/01/96 $ 9,000
Minneapolis-St. Paul Metro Airport
Taxable GO Bond, Series: 9
20,000 5.553 06/01/96 20,000
- ---------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL INVESTMENTS $ 29,000
- ---------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ----------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--2.1%
U.S. Treasury Bills--2.1%
<S> <C> <C> <C>
$ 50,000 5.005% 02/06/97 $ 48,343
25,000 5.352 03/06/97 24,019
- ----------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS $ 72,362
- ----------------------------------------------------------------------------------------------------
EURODOLLAR TIME DEPOSITS--3.4%
Banque Brussels Lambert, Grand Cayman
$ 50,000 5.438% 06/03/96 $ 50,000
Berliner Handels Und Frankfurter,
Grand Cayman
68,721 5.500 06/03/96 68,721
- ----------------------------------------------------------------------------------------------------
TOTAL EURODOLLAR TIME DEPOSITS $ 118,721
- ----------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--9.2%
Bear Stearns & Co., Inc., Dated
5/31/96, Repurchase Price $100,044
(Collateralized by U.S. Government
Securities)
$100,000 5.330% 06/03/96 $ 100,000
SBC Capital Markets, Dated 5/31/96,
Repurchase Price $200,089 (Coll. by
U.S. Government Securities)
200,000 5.320 06/03/96 200,000
SBC Capital Markets, Dated 5/31/96,
Repurchase Price $23,667 (Coll. by
U.S. Government Securities)
23,656 5.400 06/03/96 23,656
- ----------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $ 323,656
- ----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.2% $3,525,703
- ----------------------------------------------------------------------------------------------------
Liabilities, less other assets--(0.2%) (5,350)
- ----------------------------------------------------------------------------------------------------
NET ASSETS--100.0% $3,520,353
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
U.S. GOVERNMENT AND GOVERNMENT AGENCIES--64.9%
FEDERAL FARM CREDIT BANK FRN--3.8%
<S> <C> <C> <C>
$ 20,000 5.430% 06/03/96 $ 20,000
20,000 5.232 07/01/96 20,000
----------
40,000
FEDERAL HOME LOAN BANK DISCOUNT NOTES--18.5%
25,000 5.270 06/03/96 24,993
5,000 4.974 06/10/96 4,994
10,000 5.149 06/24/96 9,968
10,000 5.125 07/12/96 9,943
48,930 5.288 08/14/96 48,405
10,000 5.243 08/20/96 9,885
30,000 5.278 08/21/96 29,648
20,000 5.298 10/10/96 19,624
20,000 5.451 01/21/97 19,317
15,000 5.445 01/22/97 14,486
----------
191,263
FEDERAL HOME LOAN MORTGAGE CORPORATION
DISCOUNT NOTES--14.7%
25,000 5.256 06/10/96 24,967
23,000 5.275 06/10/96 22,970
15,000 5.223 07/01/96 14,936
15,000 5.276 07/08/96 14,920
25,000 5.230 08/12/96 24,746
50,000 5.294 08/21/96 49,413
----------
151,952
FEDERAL NATIONAL MORTGAGE ASSOCIATION
DISCOUNT NOTES--17.4%
25,000 5.276 06/10/96 24,967
20,000 5.224 07/09/96 19,892
15,000 5.228 07/09/96 14,919
40,000 5.280 07/12/96 39,763
30,000 4.977 08/09/96 29,722
25,000 5.280 08/22/96 24,703
6,500 5.453 08/30/96 6,415
20,000 5.336 10/24/96 19,581
----------
179,962
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION FRN--1.0%
<S> <C> <C> <C>
$ 10,000 5.277% 06/20/96 $ 10,000
FEDERAL NATIONAL MORTGAGE ASSOCIATION
MEDIUM TERM NOTES--2.8%
15,000 5.523 07/02/96 15,000
14,000 5.325 12/26/96 13,996
----------
28,996
OVERSEAS PRIVATE INVESTMENT CO. FRN--2.5%
25,800 5.320 06/05/96 25,800
STUDENT LOAN MARKETING ASSOCIATION FRN--1.4%
15,000 5.310 08/09/96 14,998
U.S. TREASURY BILLS--2.8%
5,000 5.005 02/06/97 4,834
10,000 5.134 02/06/97 9,660
15,000 5.352 03/06/97 14,412
----------
28,906
- ---------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCIES $ 671,877
- ---------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--37.7%
Bear Stearns & Co., Inc., Dated 05/31/96, Repurchase Price $200,089
(Colld. by U.S. Government Securities)
$200,000 5.330% 06/03/96 $ 200,000
SBC Capital Markets, Dated 05/31/96, Repurchase Price $190,672
(Colld. by U.S. Government Securities)
15,587 5.400 06/03/96 15,587
175,000 5.320 06/03/96 175,000
- ---------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $ 390,587
- ---------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--102.6% $1,062,464
- ---------------------------------------------------------------------------------------------------
Liabilities, less other assets--(2.6)% (27,362)
- ---------------------------------------------------------------------------------------------------
NET ASSETS--100.0% $1,035,102
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
GOVERNMENT SELECT PORTFOLIO
U.S. GOVERNMENT AND GOVERNMENT AGENCIES--99.6%
FEDERAL FARM CREDIT BANK DISCOUNT NOTES--4.0%
<S> <C> <C> <C>
$ 9,000 5.273% 06/04/96 $ 8,996
7,000 5.247 07/29/96 6,941
15,675 5.335 10/22/96 15,351
--------
31,288
FEDERAL FARM CREDIT BANK FRN--2.6%
10,000 5.520 06/03/96 10,000
10,000 5.290 07/01/96 10,000
--------
20,000
FEDERAL HOME LOAN BANK DISCOUNT NOTES--80.9%
1,100 5.282 06/03/96 1,100
40,000 5.283 06/03/96 39,988
75,000 5.352 06/03/96 74,978
25,000 5.185 06/05/96 24,986
5,000 4.974 06/10/96 4,994
25,000 5.200 06/12/96 24,960
10,000 5.233 06/17/96 9,977
15,000 5.138 06/20/96 14,960
10,000 5.264 06/20/96 9,972
10,000 5.405 06/20/96 9,973
8,760 5.295 06/21/96 8,735
26,000 5.278 06/26/96 25,906
30,000 5.288 06/26/96 29,891
10,000 5.213 07/03/96 9,955
20,000 5.125 07/12/96 19,886
56,525 5.242 07/22/96 56,109
25,950 5.266 07/29/96 25,732
16,000 5.266 08/05/96 15,849
19,000 5.265 08/14/96 18,797
20,000 5.271 08/14/96 19,786
30,630 5.274 08/14/96 30,302
50,000 5.279 08/21/96 49,414
20,000 5.298 10/10/96 19,624
5,000 5.304 10/16/96 4,902
5,000 5.316 10/18/96 4,900
30,000 5.451 01/21/97 28,975
22,180 5.445 01/22/97 21,420
26,950 5.472 02/06/97 25,966
--------
632,037
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount/Shares Rate Date Cost
- --------------------------------------------------------------------------------------------------
STUDENT LOAN MARKETING ASSOCIATION DISCOUNT NOTES--1.3%
<S> <C> <C> <C>
$10,000 5.221% 06/19/96 $ 9,974
STUDENT LOAN MARKETING ASSOCIATION FRN--1.3%
10,000 5.310 08/09/96 9,999
TENNESSEE VALLEY AUTHORITY DISCOUNT NOTES--7.0%
10,000 5.284 06/07/96 9,991
25,000 5.206 06/19/96 24,935
10,000 5.299 06/27/96 9,962
10,000 5.240 07/02/96 9,955
--------
54,843
U.S. TREASURY BILLS--2.5%
10,000 5.134 02/06/97 9,669
10,000 5.352 03/06/97 9,607
--------
19,276
- --------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCIES $777,417
- --------------------------------------------------------------------------------------------------
OTHER--0.8%
Dreyfus Treasury Prime Money Market
Fund
6,496 5.020% -- $ 6,496
- --------------------------------------------------------------------------------------------------
TOTAL OTHER $ 6,496
- --------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.4% $783,913
- --------------------------------------------------------------------------------------------------
Liabilities, less other assets--(0.4)% (3,277)
- --------------------------------------------------------------------------------------------------
NET ASSETS--100.0% $780,636
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO
MUNICIPAL INVESTMENTS--97.8%
ALABAMA--0.5%
City of Greenville IDR VRDN, Series:
1992, Allied-Signal Project (Allied-
Signal, Inc. Gtd.)
<S> <C> <C> <C>
$ 1,350 3.75% 06/05/96 $ 1,350
Town of Columbia PCR VRDN, Series:
1995 A, Alabama Power Project
(Alabama Power Co. Gtd.)
2,000 3.650 06/03/96 2,000
--------
3,350
ALASKA--3.5%
Alaska Housing Finance Corp. VRDN,
Series: 1994, Merrill
P-Floats PT-37 (FNMA Securities
Colld.)
6,200 3.600 06/03/96 6,200
City of Valdez, Alaska Marine
Terminal Revenue VRDN, Series: 1994
B, ARCO Transportation Project
(Atlantic Richfield Co. Gtd.)
16,400 3.700 06/07/96 16,400
City of Valdez, Marine Terminal
Refunding CP, Series: 1994 C, ARCO
Transportation Project (Atlantic
Richfield Co. Gtd.)
2,600 3.850 08/16/96 2,600
--------
25,200
ARIZONA--0.8%
Maricopa County PCR CP, Series: 1985
B, Southern California Edison Palo
Verde Project (Southern California
Edison Co. Gtd.)
1,000 3.650 07/09/96 1,000
Maricopa County PCR CP, Series: G,
Southern California Edison Palo
Verde Project (Southern California
Edison Co. Gtd.)
3,700 3.450 06/13/96 3,700
Maricopa County PCR VRDN, Series: A,
El Paso Electric Project (Westpac
Banking Corp. LOC)
1,000 3.900 06/07/96 1,000
--------
5,700
CALIFORNIA--14.0%
California Pollution Control Finance
Authority Bond, Series: 1984 A, (San
Diego Gas & Electric Co. Gtd.)
2,750 4.000 09/01/96 2,750
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
California School Cash Reserve
Program Authority TRAN,
Series: 1995 A
<S> <C> <C> <C>
$ 3,000 4.750% 07/03/96 $ 3,003
California Statewide Community
Development Authority TRAN, Series:
A (Statewide Communities Program
Pool Residual Fund Insured)
4,050 4.750 07/05/96 4,052
City of Chino TRAN
4,500 4.500 07/31/96 4,503
City of Huntington Beach TRAN
8,000 4.750 10/04/96 8,013
City of Los Angeles VRDN, Series:
BPT-129 (U.S. Government Securities
Colld.)
2,500 3.259 12/12/96 2,500
Irvine Ranch Water District VRDN,
Series: 1993 B, Districts 2, 102,
103 & 206 (MGT LOC)
8,000 3.600 06/03/96 8,000
Los Angeles Convention & Exhibition
Center VRDN, Series: 1993, Merrill
P-Floats (MBIA Insured)
5,000 3.700 06/07/96 5,000
Orange County Apartment Development
Housing Revenue VRDN, Series: 1985
Z, Bear Brand Apartments Project
(Fuji Bank LOC)
1,400 4.250 06/07/96 1,400
Sacramento County Multifamily Housing
Revenue VRDN,
Series: 1985 B (Dai-Ichi Kangyo Bank
LOC)
2,100 3.650 06/07/96 2,100
Sacramento County Multifamily Housing
Revenue VRDN,
Series: 1985 E, River Oaks
Apartments (Dai-Ichi Kangyo Bank
LOC)
1,000 3.650 06/07/96 1,000
San Bernardino County TRAN, Series:
1995-96
(Banque Nationale De Paris LOC)
5,325 4.500 07/05/96 5,328
San Bernardino County TRAN, Series:
1995, Hesperia Community College
District
5,000 4.500 08/30/96 5,006
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
San Diego Local Government 1995
Pooled TRAN, Series: BTP-169 (Banque
Nationale De Paris LOC)
<S> <C> <C> <C>
$ 6,000 3.800% 08/06/96 $ 6,000
San Joaquin County TRAN
10,000 4.500 10/15/96 10,021
San Marcos Public Facilities
Authority Revenue Bond, Series:
1989, BTP-187, Civic Center Project
(U.S. Government Securities Colld.)
6,000 3.750 03/06/97 6,000
Santa Clara County TRAN
13,000 4.500 08/02/96 13,013
Sonoma County TRAN
15,000 4.250 11/01/96 15,024
--------
102,713
COLORADO--1.5%
Broomfield IDR VRDN, Series: 1984,
Buckeye Investment Project (Bank of
America N.T. & S.A. LOC)
1,500 3.750 06/07/96 1,500
City and County of Denver
Transportation VRDN, Series: 1991 B
(Sanwa Bank LOC)
8,000 4.200 06/07/96 8,000
Regional Transportation District
VRDN, Series: A,
(Bank of Tokyo LOC)
1,525 3.800 06/01/96 1,525
--------
11,025
FLORIDA--5.1%
Broward County Housing Finance
Authority Revenue VRDN (PNC Bank
LOC)
4,600 3.800 06/03/96 4,600
Broward County Housing Finance
Authority Revenue VRDN, Sanctuary
Park Apartments Multifamily Project
(PNC
Bank Gtd.)
3,600 3.800 06/03/96 3,600
Dade County School District GO VRDN,
Series: 1994, BTP-66 (MBIA Insured)
5,535 3.750 06/07/96 5,535
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
Indian River County Hospital District
CP, Series: 1990 (Kredietbank LOC)
<S> <C> <C> <C>
$ 4,800 3.800% 08/09/96 $ 4,800
Palm Beach County Housing Finance
Authority Revenue VRDN, Series: 1988
C, Mahogany Bay (New England Mutual
Gtd.)
14,800 3.750 06/07/96 14,800
Palm Beach County Housing Finance
Authority Revenue VRDN, Series: 1988
D, Cotton Bay (New England Mutual
Gtd.)
3,600 3.750 06/07/96 3,600
--------
36,935
GEORGIA--3.5%
Dekalb County Development Authority
PCR VRDN, Series: 1987, General
Motors Project (General Motors Corp.
Gtd.)
6,300 3.750 06/07/96 6,300
Elbert County Development Authority
IDR VRDN, Series: 1992, Allied-
Signal Project (FMC Corp. Gtd.)
2,430 3.750 06/07/96 2,430
Fulton County Development Authority
IDR VRDN, General Motors Project
(General Motors Corp. Gtd.)
1,500 3.750 06/07/96 1,500
Fulton County Resident Elderly
Authority VRDN, St. Anne's Terrace
Project (NationsBank Georgia LOC)
2,700 3.650 06/07/96 2,700
Metro Atlanta Rapid Transit Authority
Revenue VRDN, Series: A, BTP-58
(AMBAC Insured)
5,965 3.750 06/07/96 5,965
Monroe County Development Authority
PCR VRDN, Series: 1995, Scherer
Plant Project (Georgia Power Co.
Gtd.)
2,900 3.650 06/03/96 2,900
State of Georgia GO VRDN, Series:
1992 C, BTP-79
4,000 3.250 12/12/96 4,000
--------
25,795
ILLINOIS--3.4%
City of Naperville IDR VRDN, General
Motors Project (General Motors Corp.
Gtd.)
1,380 3.750 06/07/96 1,380
Illinois Health Facilities Authority
VRDN, Series: E, Hospital Sisters
Service Project (MBIA Insured)
300 3.500 06/07/96 300
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
ILLINOIS--CONTINUED
Illinois Health Facilities Authority
VRDN, Series: 1993, Resurrection
Health Care Project
<S> <C> <C> <C>
$ 1,700 3.800% 06/03/96 $ 1,700
Illinois Health Facilities Authority
Pooled Revenue VRDN, Series: 1985 B,
Evangelical Hospital Corp. Project
(First National Bank of Chicago LOC)
4,350 3.650 06/07/96 4,350
Illinois Health Facilities Authority
VRDN, Series: 1995, Healthcor
Project (Fuji Bank LOC)
5,950 4.100 06/07/96 5,950
Illinois Health Facilities Authority
VRDN,
Series: 1995 A, Lifelink Corp.
Obligated Group (American National
Bank & Trust LOC)
2,700 3.650 06/07/96 2,700
Illinois Housing Development
Authority TOB, Series: 1987 C
1,270 3.500 08/01/96 1,270
Illinois Housing Development
Authority TOB, Series: 1987 E
2,300 3.500 08/01/96 2,300
Illinois State Sales Tax Revenue
Bond, Series: B Prerefunded
1,000 7.625 06/15/96 1,001
Regional Transportation Authority
Revenue VRDN, Series: D (FGIC
Insured)
4,000 3.650 06/07/96 4,000
--------
24,951
INDIANA--0.7%
Indiana Bond Bank Advance Funding
Notes, Series 1996 A-2
4,900 4.250 01/09/97 4,922
IOWA--1.9%
City of Le Claire Public Utility
Bond, Series: 1986 A (U.S.
Government Securities Colld.)
2,205 4.125 09/01/96 2,206
City of Le Claire Public Utility
Bond, Series: 1986 B (U.S.
Government Securities Colld.)
1,570 4.125 09/01/96 1,570
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
Iowa School Corp Warrant
Certificates, Series: 1995-96 A
(FSAC Insured)
<S> <C> <C> <C>
$10,000 4.750% 06/28/96 $ 10,006
--------
13,782
KANSAS--0.1%
City of Topeka Sewer System Revenue
VRDN, Series: 1984 (MBIA Insured)
600 4.250 06/01/96 600
KENTUCKY--0.7%
Kentucky Higher Education Student
Loan Corp. VRDN, Series: 1991 E
(Sumitomo Bank Ltd. LOC)
2,000 4.000 06/07/96 2,000
Pendleton County Revenue VRDN,
Series: 1987, Kentucky Association
of Counties-Self-Insurance Funding
(PNC Bank LOC)
3,000 4.000 07/01/96 3,000
--------
5,000
LOUISIANA--1.0%
Parish of Caddo IDR VRDN, General
Motors Corp. Project (General Motors
Corp. Gtd)
3,500 3.750 06/07/96 3,500
Plaquemines Port, Harbor & Terminal
CP, Series: D, Electro-Coal Transfer
Co. Project (Tampa Electric Co.
Gtd.)
4,000 3.750 08/14/96 4,000
--------
7,500
MARYLAND--9.6%
Baltimore County Multifamily Housing
Revenue VRDN, Series: 1991, Quail
Ridge Apartments Project (Sumitomo
Bank LOC)
2,200 3.850 06/07/96 2,200
City of Baltimore IDA VRDN, Series:
1986, Capital Acquisition Program
(Dai-Ichi Kangyo Bank LOC)
7,300 3.850 06/07/96 7,300
Maryland Health & Higher Education
Facilities Authority Hospital
Revenue VRDN, Series: A (NationsBank
N.A. LOC)
34,200 3.650 06/07/96 34,200
Maryland State Community Development
Administration, Series: 1993, Single
Family Program, Merrill P-Floats PT-
12
7,747 3.600 06/03/96 7,747
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
Maryland State Economic Development
Authority VRDN, Series: 1995
(NationBank, N.A. LOC)
<S> <C> <C> <C>
$ 2,400 3.650% 07/01/96 $ 2,400
</TABLE>
Washington Suburban Sanitary
District VRDN, Series: 1994 G,
Eagle Trust
<TABLE>
<S> <C> <C> <C>
16,500 3.750 06/07/96 16,500
---------
70,347
MASSACHUSETTS--0.8%
Massachusetts Municipal Electric Co.
Revenue VRDN, Series: 1994 B, BTP-67
(MBIA Insured)
5,760 4.180 06/07/96 5,760
MICHIGAN--1.8%
Michigan State Strategic Fund IDR
VRDN, Allied-Signal Project (Allied-
Signal, Inc. Gtd.)
6,500 3.700 06/07/96 6,500
Michigan State Strategic Fund PCR CP,
(Dow Chemical Gtd.)
6,800 3.650 08/08/96 6,800
---------
13,300
MINNESOTA--2.2%
City of Duluth Tax Increment IDR
VRDN, Series: 1985, Lake Superior
Paper Project (National Australia
Bank Limited LOC)
2,800 3.750 06/07/96 2,800
Minnetonka Multifamily Housing
Revenue VRDN, Series: 1995, Cliffs
at Ridgedale Project (FNMA Colld.)
13,600 3.700 06/07/96 13,600
---------
16,400
MISSOURI--2.5%
Callaway County IDA Health System
VRDN, Series: 1995 (NationsBank
Tennessee LOC)
4,800 3.700 06/07/96 4,800
IDA of St. Louis County Housing
Revenue VRDN, South Point & Hunters
Ridge Project, Merrill P-Floats PT-
66 (Commerzbank LOC)
3,660 3.700 06/03/96 3,660
City of St. Louis TRAN, Series: 1996
10,000 4.500 06/20/96 10,004
---------
18,464
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
MONTANA--0.7%
City of Forsyth PCR VRDN, Series:
1988 A, Pacificorp Project
(Industrial Bank of Japan LOC)
<S> <C> <C> <C>
$ 4,900 3.950% 06/03/96 $ 4,900
NEVADA--0.5%
Nevada Housing Division Revenue Bond,
Senior Series: A-1, Single Family
Program
1,955 3.650 10/01/96 1,955
Nevada Housing Division Revenue Bond,
Senior Series: A-3, Single Family
Program
2,055 3.650 10/01/96 2,055
--------
4,010
NEW JERSEY--0.6%
State of New Jersey GO Refunding
Bond, Series: E, BTP-191
4,500 3.700 10/15/96 4,500
NEW YORK--10.8%
City of New York GO VRDN, Series:
1992 A, Citicorp TOB CR-14I (FSAC
Insured)
1,980 3.250 08/15/96 1,980
City of New York GO VRDN, Subseries:
1993 E-2 (Industrial Bank of Japan
LOC)
5,000 3.850 06/03/96 5,000
City of New York GO VRDN, Series:
1994, E-2 (Industrial Bank of Japan
LOC)
2,800 3.850 06/03/96 2,800
City of New York GO VRDN, Subseries:
1993 E-5 (Sumitomo Bank Ltd. LOC)
2,100 3.850 06/03/96 2,100
City of New York GO VRDN, Subseries:
1993 E-6 (Sumitomo Bank Ltd. LOC)
7,700 3.850 06/03/96 7,700
City of New York TRAN, Series: 1996 B
(Chemical Banking Corp. LOC)
10,000 4.750 06/28/96 10,006
County Of Nassau TRAN, Series: 1996 A
10,000 4.000 03/05/97 10,045
Marine Midland Premium Loan Trust
VRDN, Series: 1991 B (Hong Kong &
Shanghai Banking Corp. LOC)
1,576 3.850 06/07/96 1,576
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
NEW YORK--CONTINUED
New York State Environment Facilities
Corp. PCR VRDN, Eagle Trust Series:
943204 (CGIC Insured)
<S> <C> <C> <C>
$15,900 3.700% 06/07/96 $ 15,900
New York State Medical Care Finance
Agency Hospital Revenue Bond,
Series: 1988 B, BTP-175 (U.S.
Government Securities Colld.)
20,000 3.850 12/17/96 20,000
Pooled Puttable Floating Option VRDN,
Series: PPT2 (AK Housing Finance
Corp. Insured)
2,100 4.050 06/03/96 2,100
--------
79,207
NORTH CAROLINA--0.2%
North Carolina Medical Care
Commission Hospital Revenue VRDN,
Series: 1991 A, Pooled Financing
Project (Dai-Ichi Kangyo Bank LOC)
1,500 3.750 06/03/96 1,500
OHIO--2.6%
Ohio State Higher Education Capital
Facilities Education/School VRDN,
Series: 1990 A, BTP-29 (MBIA
Insured)
3,000 3.760 06/07/96 3,000
Ohio State Higher Education Capital
Facilities Education/School VRDN,
Series: 1994 A, BTP-69 (AMBAC
Insured)
8,745 3.760 06/07/96 8,745
Ohio State Water Development
Authority PCR VRDN, Series: B
(General Motors Corp. Gtd.)
2,500 3.750 06/07/96 2,500
Red Roof Inns Mortgage Bond Trust
VRDN (National City Bank LOC)
4,729 3.750 06/15/96 4,729
--------
18,974
OREGON--1.2%
City of Medford Hospital Facilities
Authority VRDN, Series: 1991, Rogue
Valley Project (Banque Paribas LOC)
8,400 4.000 06/07/96 8,400
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
PENNSYLVANIA--5.0%
Allegheny County Hospital VRDN,
Series: C, Presbyterian Health
Center (MBIA Insured)
<S> <C> <C> <C>
$ 7,600 3.750% 06/03/96 $ 7,600
City of Philadelphia IDR VRDN, Series
1988, Franklin Institute Project
(PNC Bank LOC)
2,800 3.800 06/07/96 2,800
City of Philadelphia TRAN, Series:
1995-96, A
6,000 4.500 06/27/96 6,002
Delaware Valley Regional Finance
Authority Pooled Revenue VRDN,
Series : 1985 A (Midland Bank PLC
LOC)
5,000 3.650 06/07/96 5,000
Delaware Valley Regional Finance
Authority Pooled Revenue VRDN,
Series : 1985 C (Midland Bank PLC
LOC)
600 3.650 06/07/96 600
Delaware Valley Regional Finance
Authority Pooled Revenue VRDN,
Series : 1985 D (Midland Bank PLC
LOC)
1,800 3.650 06/07/96 1,800
Delaware Valley Regional Finance
Authority Pooled Revenue VRDN,
Series: 1985 A-D (Midland Bank PLC
LOC)
4,900 3.650 06/07/96 4,900
Schuylkill County Recovery IDR VRDN,
Gilberton Power Project (Mellon Bank
NA LOC)
7,550 3.650 06/07/96 7,550
--------
36,252
PUERTO RICO--0.6%
Puerto Rico Industrial Medical &
Environmental Pollution Control
Facilities Funding Authority Revenue
Bond, Series: 1983 A (Merck & Co.
Gtd.)
4,240 4.100 12/01/96 4,240
SOUTH CAROLINA--3.9%
County of Lexington IDR VRDN, Series:
1992, Allied-Signal Project (Allied-
Signal, Inc. Gtd.)
700 3.750 06/07/96 700
County of Lexington Pollution Control
Finance Authority IDR VRDN, Series:
1992 A, Allied-Signal Project
(Allied-Signal, Inc. Gtd.)
1,880 3.750 06/07/96 1,880
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
South Carolina Public Service
Authority Revenue VRDN, Series:
1995, Lehman Trust Receipts (FGIC
Insured)
<S> <C> <C> <C>
$15,700 3.700% 06/07/96 $ 15,700
South Carolina Public Service
Authority Revenue VRDN, Series: 1985
B, ML SG Muni Trust SG-32 (FGIC
Insured)
9,855 3.650 06/07/96 9,855
--------
28,135
TENNESSEE--2.0%
City of Greenville Health & Education
Facilities Board Hospital Revenue
VRDN, Laughlin Memorial Hospital
Project (NationsBank of Tennessee
LOC)
6,800 3.650 06/07/96 6,800
Hamilton County IDR VRDN, Series:
1995, Tennessee Aquarium Project
(NationsBank of Tennessee LOC)
6,850 3.650 06/07/96 6,850
Montgomery County Public Building
Authority Pooled Revenue VRDN,
Series: 1995 (NationsBank of
Tennessee LOC)
1,000 3.650 06/07/96 1,000
--------
14,650
TEXAS--6.1%
Bexar County Multifamily Housing
Finance Authority VRDN, Series: 1988
A, Creighton's Mill Development
Project (New England Mutual Gtd.)
2,600 3.800 06/07/96 2,600
Brazos River Harbor Navigation
District PCR CP, Series:1987 A, Dow
Chemical Project (Dow Chemical Gtd.)
7,100 3.650 08/08/96 7,100
Harris County Toll Road Unlimited Tax
Revenue VRDN, Series: 1994 A,
Citicorp Eagle Trust Series: 954302
5,500 3.750 06/07/96 5,500
Pooled Puttable Float Option, Merrill
P-Float PP2 VRDN (AMBAC, FGIC & MBIA
Insured)
2,440 3.700 06/07/96 2,440
State of Texas TRAN, Series: A
24,000 4.750 08/30/96 24,040
Texas Water Development Board Pooled
Revenue VRDN, Series: 1992 A
2,600 3.750 06/03/96 2,600
--------
44,280
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
UTAH--0.2%
County of Uintah PCR Bond Public
Utility, Deseret General
Transmission Project (U.S.
Government Securities Colld.)
<S> <C> <C> <C>
$ 1,135 10.125% 10/15/96 $ 1,160
VIRGINIA--5.5%
City of Newport News Redevelopment &
Housing Authority Housing Revenue
VRDN, Merrill P-Float PT-65, Indian
Lake Apartment Project (Commerzbank
LOC)
6,115 3.700 06/03/96 6,115
City of Norfolk GO VRDN, Eagle Trust,
Series: 944601
4,800 3.750 06/07/96 4,800
City of Richmond Redevelopment &
Housing Authority Housing Revenue
VRDN, Series: 1995 A, Old Manchester
Project (Wachovia Bank of North
Carolina, N.A. LOC)
2,000 3.800 06/07/96 2,000
City of Roanoke IDR VRDN, Series
1994, Cooper Industries Project
(Cooper Industries Gtd.)
9,650 3.600 06/07/96 9,650
County of Loudoun IDA Residential
Care VRDN, Series: 1994 B, Falcons
Landing (Banque Paribas LOC)
2,300 4.150 06/03/96 2,300
Town of Louisa PCR CP, Series: 1987
(Virginia Electric Power Gtd.)
8,100 3.750 08/13/96 8,100
State of Virginia GO VRDN, Series:
1994, Citicorp Eagle Trust, Series:
954601
7,000 3.750 06/07/96 7,000
--------
39,965
WASHINGTON--2.5%
Kent Economic Development Corp. IDR
VRDN, Associated Grocers Project
(Seattle-First National Bank LOC)
4,200 4.668 06/07/96 4,200
Seattle Metropolitan Municipality GO
(U.S. Government Securities Colld.)
1,000 7.200 01/01/97 1,036
Washington Public Power Supply System
Revenue VRDN, ML SG Municipal Trust
Series: SG-15 (MBIA Insured)
6,595 3.650 06/07/96 6,595
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
WASHINGTON--CONTINUED
Washington Public Power Supply System
Revenue VRDN, Series: 1990 B, BTP-85
(U.S. Government Securities Colld.)
<S> <C> <C> <C>
$ 6,221 3.750% 06/07/96 $ 6,221
--------
18,052
WISCONSIN--1.7%
City of Milwaukee Redevelopment
Authority Revenue VRDN, Series:
1985, Kennedy II Associates Ltd.
Partnership Project (Bank of America
LOC)
1,600 3.900 06/01/96 1,600
City of Winneconne Community School
District BAN
3,000 4.000 02/03/97 3,005
Wisconsin Health & Education Revenue
VRDN, Series: 1994 A, Sinai
Samaritan Medical Center (Marshall &
Ilsey Bank LOC)
7,750 3.660 06/07/96 7,750
--------
12,355
WYOMING--0.1%
City of Green River PCR VRDN, Allied-
Signal Project (FMC Corp. Gtd.)
1,000 3.750 06/07/96 1,000
- -------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL INVESTMENTS $713,324
- -------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Interest Maturity Amortized
Shares Rate Date Cost
- ---------------------------------------------------------------------------------------------------------
OTHER--1.3%
AIM Tax Free Money Market Fund
<S> <C> <C> <C>
1,505 3.390% -- $ 1,505
Dreyfus Tax Exempt Cash Management
Fund
1,400 3.396 -- 1,400
Federated Tax Free Trust Money Market
Fund #15
4,453 3.453 -- 4,453
Federated Tax Free Trust Money Market
Fund #73
819 3.200 -- 819
Provident Muni Fund
1,463 3.270 -- 1,463
- ------------------------------------------------------------------------------------------------------------
TOTAL OTHER $ 9,640
- ------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--99.1% $722,964
- ------------------------------------------------------------------------------------------------------------
Other assets, less liabilities--0.9% 6,289
- ------------------------------------------------------------------------------------------------------------
NET ASSETS--100.0% $729,253
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands)
(Unaudited)
INVESTMENT ABBREVIATIONS AND NOTES:
AMBAC--American Municipal Bond Assurance Corp.
BAN --Bond Anticipation Note
BTP --Bankers Trust Partnership
CGIC --Capital Guaranty Insurance Co.
Colld.
--Collateralized
CP --Commercial Paper
FGIC --Financial Guaranty Insurance Corp.
FNMA --Federal National Mortgage Association
FRN --Floating Rate Note
FSAC --Financial Security Assurance Corp.
GO --General Obligation
Gtd. --Guaranteed
IDA --Industrial Development Authority
IDR --Industrial Development Revenue
IRC --Irrevocable Revolving Credit
LOC --Letter of Credit
MBIA --Municipal Bond Insurance Association
MGT --Morgan Guaranty Trust
ML SG--Merrill Lynch/Societe Generale
P-Floats
--Puttable Floating Rate Security
PCR --Pollution Control Revenue
TOB --Tender Option Bond
TRAN --Tax and Revenue Anticipation Note
VRDN --Variable Rate Demand Note
- --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, which is based upon current interest rate indices.
- --Maturity dates represent either the stated date on the security, the next
interest reset date for floating rate securities, or the prerefunded date for
those types of securities.
- --The amortized cost also represents cost for federal income tax purposes.
See accompanying notes to financial statements.
17
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
May 31, 1996
(Amounts in thousands, except net asset value per unit)
(Unaudited)
<TABLE>
<CAPTION>
Diversified Government
Assets Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at
amortized cost $3,202,047 $ 671,877 $783,913 $722,964
Repurchase agreements, at cost 323,656 390,587 -- --
Cash 1 1 -- --
Receivables:
Interest 6,039 2,069 563 9,233
Fund units sold -- -- 52 210
Investment securities sold 22,960 -- -- 100
Administrator -- 34 37 29
Other assets 35 6 2 31
- -------------------------------------------------------------------------------
TOTAL ASSETS 3,554,738 1,064,574 784,567 732,567
- -------------------------------------------------------------------------------
LIABILITIES:
Payable for:
Fund units redeemed 6 -- 406 742
Investment securities purchased 20,000 24,746 -- --
Distributions to unitholders 13,360 4,375 3,342 2,276
Accrued expenses:
Advisory fees 650 219 65 163
Administration fees 173 87 76 76
Custodian fees 47 5 3 4
Transfer agent fees 47 3 10 17
Other liabilities 102 37 29 36
- -------------------------------------------------------------------------------
TOTAL LIABILITIES 34,385 29,472 3,931 3,314
- -------------------------------------------------------------------------------
NET ASSETS $3,520,353 $1,035,102 $780,636 $729,253
- -------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $3,522,092 $1,035,495 $780,741 $729,018
Accumulated net realized gain
(loss) on investment transac-
tions (1,739) (393) (105) 235
- -------------------------------------------------------------------------------
NET ASSETS $3,520,353 $1,035,102 $780,636 $729,253
- -------------------------------------------------------------------------------
Total units outstanding (no par
value), unlimited units autho-
rized 3,522,092 1,035,495 780,741 729,018
- -------------------------------------------------------------------------------
Net asset value, offering and
redemption price per unit (net
assets/units outstanding) $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six Months Ended May 31, 1996
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Diversified Government
Assets Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME $78,925 $26,590 $20,547 $14,411
- ------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 3,529 1,214 947 962
Administration fees 962 499 444 448
Custodian fees 168 59 43 50
Transfer agent fees 48 11 15 18
Registration fees 41 12 13 12
Professional fees 66 22 17 17
Trustee fees 41 14 11 11
Other 59 32 23 17
- ------------------------------------------------------------------------------
TOTAL EXPENSES 4,914 1,863 1,513 1,535
Less: Voluntary waivers of in-
vestment advisory fees -- -- (568) --
Less: Expenses reimbursable by
Administrator -- (164) (188) (186)
- ------------------------------------------------------------------------------
Net expenses 4,914 1,699 757 1,349
- ------------------------------------------------------------------------------
NET INVESTMENT INCOME 74,011 24,891 19,790 13,062
Net realized gains on investment
transactions 162 45 68 196
- ------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RE-
SULTING FROM OPERATIONS $74,173 $24,936 $19,858 $13,258
- ------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
19
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended May 31, 1996 (Unaudited) and Year Ended November 30,
1995
(All amounts in thousands)
<TABLE>
<CAPTION>
Diversified Assets Government Select
Portfolio Government Portfolio Portfolio Tax-Exempt Portfolio
-------------------------- ------------------------- ------------------------ ------------------------
1996 1995 1996 1995 1996 1995 1996 1995
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET
ASSETS FROM:
OPERATIONS:
Net investment
income $ 74,011 $ 159,519 $ 24,891 $ 42,613 $ 19,790 $ 32,259 $ 13,062 $ 24,498
Net realized
gains (losses)
on investment
transactions 162 (1,460) 45 (828) 68 (73) 196 48
- ----------------------------------------------------------------------------------------------------------------------------
Net increase in
net assets
resulting from
operations 74,173 158,059 24,936 41,785 19,858 32,186 13,258 24,546
- ----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS:
Net investment
income (74,011) (159,519) (24,891) (42,613) (19,790) (32,259) (13,062) (24,498)
- ----------------------------------------------------------------------------------------------------------------------------
Total
distributions to
unitholders (74,011) (159,519) (24,891) (42,613) (19,790) (32,259) (13,062) (24,498)
- ----------------------------------------------------------------------------------------------------------------------------
UNIT
TRANSACTIONS
(AT $1.00 PER
UNIT):
Proceeds from
the sale of
units 20,532,006 43,084,716 6,408,792 10,203,042 2,347,120 3,588,011 3,114,465 5,729,794
Reinvested
distributions 658 -- -- -- 213 -- 82 --
Cost of units
redeemed (19,622,820) (43,366,308) (6,224,399) (10,140,281) (2,251,907) (3,396,629) (3,189,220) (5,779,215)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
net assets
resulting from
unit
transactions 909,844 (281,592) 184,393 62,761 95,426 191,382 (74,673) (49,421)
- ----------------------------------------------------------------------------------------------------------------------------
CAPITAL
CONTRIBUTIONS
RECEIVED FROM
NORTHERN TRUST
CORPORATION -- 1,519 -- 915 -- 115 -- --
- ----------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) 910,006 (281,533) 184,438 62,848 95,494 191,424 (74,477) (49,373)
Net assets--
beginning of
year 2,610,347 2,891,880 850,664 787,816 685,142 493,718 803,730 853,103
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS--END
OF PERIOD $ 3,520,353 $ 2,610,347 $ 1,035,102 $ 850,664 $ 780,636 $ 685,142 $ 729,253 $ 803,730
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
20
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1996 (Unaudited) and Years Ended November 30,
Diversified Assets Portfolio
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992 1991 1990 1989 1988
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income 0.03 0.06 0.04 0.03 0.04 0.06 0.08 0.09 0.07
- ---------------------------------------------------------------------------------------------------------------------------------
Total income from
investment
operations 0.03 0.06 0.04 0.03 0.04 0.06 0.08 0.09 0.07
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment
income (0.03) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08) (0.09) (0.07)
- ---------------------------------------------------------------------------------------------------------------------------------
Total
distributions to
unitholders (0.03) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08) (0.09) (0.07)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total return (a) 2.65% 5.78%(b) 3.92% 3.00% 3.80% 6.19% 8.01% 8.98% 7.15%
Ratios to average
net assets of
(c):
Expenses, net of
waivers and
reimbursements 0.35% 0.34% 0.35% 0.34% 0.34% 0.35% 0.35% 0.37% 0.39%
Expenses, before
waivers and
reimbursements 0.35% 0.34% 0.35% 0.36% 0.35% 0.36% 0.36% 0.37% 0.39%
Net investment
income, net of
waivers and
reimbursements 5.25% 5.63% 3.74% 3.00% 3.79% 6.18% 8.01% 8.98% 7.15%
Net investment
income, before
waivers and
reimbursements 5.25% 5.63% 3.74% 2.98% 3.78% 6.17% 8.00% 8.98% 7.15%
Net assets at end
of period (in
thousands) $3,520,353 $2,610,347 $2,891,880 $3,200,288 $2,801,744 $2,784,485 $2,192,756 $1,871,713 $1,528,203
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1987
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF YEAR $1.00
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment
income 0.06
- ---------------------------------------------------------------------------------------------------------------------------------
Total income from
investment
operations 0.06
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment
income (0.06)
- ---------------------------------------------------------------------------------------------------------------------------------
Total
distributions to
unitholders (0.06)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF PERIOD $1.00
- ---------------------------------------------------------------------------------------------------------------------------------
Total return (a) 6.30%
Ratios to average
net assets of
(c):
Expenses, net of
waivers and
reimbursements 0.41%
Expenses, before
waivers and
reimbursements 0.41%
Net investment
income, net of
waivers and
reimbursements 6.30%
Net investment
income, before
waivers and
reimbursements 6.30%
Net assets at end
of period (in
thousands) $1,533,941
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year.
(b) Total return for the year ended November 30, 1995 would have been 5.73%
absent the effect of a capital contribution equivalent to $.0005 per share
received from Northern Trust Corporation.
(c) Annualized for periods less than a full year.
See accompanying notes to financial statements.
21
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1996 (Unaudited) and Years Ended November 30,
Government Portfolio
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992 1991 1990 1989 1988
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BE-
GINNING OF YEAR $1.00 $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.03 0.06 0.04 0.03 0.04 0.06 0.08 0.09 0.07
- --------------------------------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 0.03 0.06 0.04 0.03 0.04 0.06 0.08 0.09 0.07
- --------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.03) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08) (0.09) (0.07)
- --------------------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.03) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08) (0.09) (0.07)
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END
OF PERIOD $1.00 $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------
Total return (a) 2.59% 5.64%(b) 3.78% 2.91% 3.91% 6.18% 7.89% 8.63% 6.83%
Ratios to average net
assets of (c):
Expenses, net of
waivers and
reimbursements 0.35% 0.35% 0.34% 0.34% 0.34% 0.35% 0.37% 0.50% 0.54%
Expenses, before
waivers and
reimbursements 0.38% 0.40% 0.41% 0.38% 0.40% 0.40% 0.46% 0.50% 0.55%
Net investment
income, net of
waivers and
reimbursements 5.13% 5.49% 3.60% 2.92% 3.71% 6.03% 7.88% 8.63% 6.83%
Net investment
income, before
waivers and
reimbursements 5.10% 5.44% 3.53% 2.88% 3.65% 5.98% 7.79% 8.63% 6.82%
Net assets at end of
period (in thousands) $1,035,102 $850,664 $787,816 $1,065,705 $1,163,905 $895,405 $971,720 $423,517 $335,301
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1987
- --------------------------------------------------------------------------------------------------------------------------
<S> <C>
NET ASSET VALUE, BE-
GINNING OF YEAR $1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.06
- --------------------------------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 0.06
- --------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.06)
- --------------------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.06)
- --------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END
OF PERIOD $1.00
- --------------------------------------------------------------------------------------------------------------------------
Total return (a) 6.15%
Ratios to average net
assets of (c):
Expenses, net of
waivers and
reimbursements 0.44%
Expenses, before
waivers and
reimbursements 0.55%
Net investment
income, net of
waivers and
reimbursements 6.15%
Net investment
income, before
waivers and
reimbursements 6.04%
Net assets at end of
period (in thousands) $218,530
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the net asset value at the end of the year.
(b) Total return for the year ended November 30, 1995 would have been 5.53%
absent the effect of a capital contribution equivalent to $.0011 per share
received from Northern Trust Corporation.
(c) Annualized for periods less than a full year.
See accompanying notes to financial statements.
22
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1996 (Unaudited) and Years Ended November 30,
Government Select Portfolio
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992 1991 1990 (a)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.03 0.06 0.04 0.03 0.04 0.06 0.01
- ---------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 0.03 0.06 0.04 0.03 0.04 0.06 0.01
- ---------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.03) (0.06) (0.04) (0.03) (0.04) (0.06) (0.01)
- ---------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.03) (0.06) (0.04) (0.03) (0.04) (0.06) (0.01)
- ---------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ---------------------------------------------------------------------------------------------------
Total return (b) 2.63% 5.82%(c) 3.84% 3.00% 3.71% 5.82% 0.50%
Ratios to average net
assets of (d):
Expenses, net of waiv-
ers and reimbursements 0.20% 0.20% 0.20% 0.20% 0.20% 0.20% 0.20%
Expenses, before waiv-
ers and reimbursements 0.40% 0.41% 0.43% 0.49% 0.52% 0.60% 1.33%
Net investment income,
net of waivers and re-
imbursements 5.23% 5.67% 3.83% 2.99% 3.70% 5.78% 7.65%
Net investment income,
before waivers and re-
imbursements 5.03% 5.46% 3.60% 2.70% 3.38% 5.38% 6.52%
Net assets at end of
period (in thousands) $780,636 $685,142 $493,718 $386,507 $264,756 $160,750 $44,215
- ---------------------------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on November 7, 1990.
(b) 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.
(c) Total return for the year ended November 30, 1995 would have been 5.80%
absent the effect of a capital contribution equivalent to $.0002 per share
received from Northern Trust Corporation.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
23
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1996 (Unaudited) and Years Ended November 30,
Tax-Exempt Portfolio
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income 0.02 0.04 0.02 0.02 0.03 0.05 0.06 0.06 0.05 0.04
- --------------------------------------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 0.02 0.04 0.02 0.02 0.03 0.05 0.06 0.06 0.05 0.04
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.02) (0.04) (0.02) (0.02) (0.03) (0.05) (0.06) (0.06) (0.05) (0.04)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.02) (0.04) (0.02) (0.02) (0.03) (0.05) (0.06) (0.06) (0.05) (0.04)
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
YEAR $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------------------------------
Total return (a) 1.70% 3.71% 2.62% 2.27% 2.97% 4.57% 5.71% 6.04% 4.92% 4.00%
Ratios to average net
assets of (b):
Expenses, net of
waivers and
reimbursements 0.35% 0.35% 0.35% 0.34% 0.34% 0.35% 0.36% 0.49% 0.48% 0.45%
Expenses, before
waivers and
reimbursements 0.40% 0.41% 0.36% 0.38% 0.39% 0.40% 0.43% 0.49% 0.48% 0.46%
Net investment income,
net of waivers and
reimbursements 3.40% 3.63% 2.40% 2.27% 2.95% 4.57% 5.71% 6.03% 4.92% 4.00%
Net investment income,
before waivers and
reimbursements 3.35% 3.57% 2.39% 2.23% 2.90% 4.52% 5.64% 6.03% 4.92% 3.99%
Net assets at end of
period (in thousands) $729,253 $803,730 $853,103 $1,191,932 $1,226,480 $872,405 $752,257 $545,215 $529,680 $410,772
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Assumes investment at net asset value at the beginning of the year,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at the end of the year.
(b) Annualized for periods less than a full year.
See accompanying notes to financial statements.
24
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
May 31, 1996
(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 money market portfolios.
The Trust includes four diversified money market portfolios: Diversified
Assets Portfolio, Government Portfolio, Government Select Portfolio and Tax-
Exempt Portfolio.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Portfolios in the preparation of their financial statements.
These policies are in conformity with generally accepted accounting principles
("GAAP"). The presentation of financial statements in conformity with GAAP
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 revenues and expenses during the reporting period.
Actual results could differ from those estimates and assumptions.
(a) Investment Valuation
Investments are valued at amortized cost, which approximates market value.
Under the amortized cost method, investments purchased at a discount or premium
are valued by amortizing the difference between the original purchase price and
maturity value of the issue over the period to maturity.
(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) Interest Income
Interest income is recorded on the accrual basis and includes amortization of
discounts and premiums.
(d) 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 tax-exempt income to its
unitholders. Therefore, no provision is made for federal taxes.
At November 30, 1995, the Trust's most recent tax year end, there were capital
loss carryforwards for U.S. federal tax purposes of approximately $1,901,000,
$438,000 and $173,000 for the Diversified Assets, Government and Government
Select Portfolios, respectively. These amounts are available to be carried
forward to offset future capital gains to the extent permitted by applicable
laws or regulations. These capital loss carryforwards expire in 2002.
(e) Expenses
Expenses arising in connection with a specific portfolio are allocated to that
portfolio. Expenses incurred which do not specifically relate to an individual
portfolio are allocated among the portfolios based on each portfolio's relative
net assets.
(f) Distributions
Each Portfolio's estimated net investment income is declared daily as a
dividend to unitholders of record as
25
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
May 31, 1996
(Unaudited)
of 3:00 p.m., Chicago time. Net realized short-term capital gains, if any, are
declared and distributed at least annually.
Distributions of net investment income with respect to a calendar month
(including with respect to units redeemed at any time during the month) are
made as soon as practicable following the end of the month. Distributions are
made by each Portfolio to Northern in cash or automatically reinvested in
additional units of the Portfolio. Northern has undertaken to credit or arrange
for the crediting of such distributions to each unitholder's account with
Northern, its affiliates or its correspondents.
3. ADVISORY, TRANSFER AGENCY, CUSTODIAN AND OTHER 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 an annual rate of .25% of each
portfolio's average daily net assets.
Until further notice, Northern has voluntarily agreed to waive .15% of its
advisory fee for the Government Select Portfolio, reducing such fee to .10% per
annum. The effect of this waiver by Northern for the six months ended May 31,
1996 was to reduce advisory fees by approximately $568,000.
As compensation for the services rendered as custodian and transfer agent,
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.
The Trust and Northern Trust Corporation (the "Corporation") entered into an
agreement (the "Put Agreement") dated May 19, 1994 which provided the Trust the
right to require the Corporation to purchase, and the Corporation the right to
require the Trust to sell, certain Federal Home Loan and Federal Farm Credit
Banks securities held by the Diversified Assets, Government and Government
Select Portfolios on or before June 19, 1995 (the "final purchase date"). The
purchase price under the Put Agreement was the greater of the amortized cost
value or market value on the date of purchase.
Pursuant to the Put Agreement, the Corporation, on June 19, 1995, purchased
these securities at amortized cost, which exceeded market value by
approximately $1,519,000, $915,000 and $115,000 for the Diversified Assets,
Government and Government Select Portfolios, respectively. The Portfolios
recorded realized losses to the extent the purchase price exceeded market value
of the securities. The Portfolios received capital contributions from the
Corporation in connection with the Put Agreement, which served to offset such
losses. The net realized losses on the sale of these securities were not
deductible for federal income tax purposes. As a result, the Portfolios
reclassified an amount equal to the net realized losses on the sale of these
securities from "accumulated net realized gain (loss) on investment
transactions" to "paid-in capital." This reclassification had no effect on the
net assets of the Portfolios and was designed to present the Portfolios'
capital accounts on a tax basis.
4. ADMINISTRATION AND DISTRIBUTION AGREEMENTS
As compensation for the services rendered as administrator, and the assumption
by Goldman Sachs of 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 voluntarily agreed to waive a portion of its administration
fees in the event that overall administration fees earned during the prior
fiscal year exceeded certain specified levels. For the six months
26
<PAGE>
- --------------------------------------------------------------------------------
ended May 31, 1996, there was no reduction in administration fees due to this
waiver.
Furthermore, Goldman Sachs has agreed to reimburse the 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, 1996 was to
reduce the expenses of the Government, Government Select and Tax-Exempt
Portfolios by approximately $164,000, $188,000 and $186,000, respectively.
5. BANK LOANS
The Trust maintains a $5,000,000 revolving bank credit line and a $15,000,000
conditional revolving credit line for liquidity and other purposes. Borrowings
under this arrangement bear interest at 1% above the Fed Funds rate and are
secured by pledged securities equal to or exceeding 120% of the outstanding
balance.
For the six months ended May 31, 1996, there were no outstanding borrowings.
27
<PAGE>
THE BENCHMARK FUNDS
Investment Adviser, Transfer Agent and Custodian
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.
Frederick T. Kelsey
Richard P. Strubel
Officers
Paul W. Klug, Jr., 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
Legal Counsel
Drinker Biddle & Reath
1345 Chestnut Street
Philadelphia, PA 19107
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
Money
Market
Portfolios
Semi-Annual Report
May 31, 1996
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
INVESTMENT OUTLOOK
WHAT HAS CHANGED
While we successfully steered clear of misleading recession signals early in
the year, our insights were less rewarding in the latest quarter as the economy
strengthened faster and by more than we had anticipated. In April, we were
forecasting first half growth of 1.5% whereas now we see this growth running
around 3.0%. Earlier, we thought that Federal Reserve ("Fed") tightening would
not occur until early 1997, but we now believe that it could be brought forward
into this year. The stronger economy prompted a sharper-than-expected sell-off
in bonds, causing equities to mark time for the past five months. At present,
Treasury yields seem to have found a comfort range amid ongoing debate about
the Fed's ability to maintain the full employment-low inflation zone recently
achieved.
ECONOMIC PICK UP IN EVIDENCE
The U.S. economy is developing a self-perpetuating growth dynamic. Because
accommodative monetary policies are being followed in many other industrialized
countries, foreign demand is expected to amplify this recent trend. Although we
do not foresee boom-like conditions on the horizon, left unchecked, this faster
growth could lead to modest upward pressure on the underlying inflation rate.
Historically, sustained periods of unemployment below the current 5.5% rate
have been associated with rising consumer inflation. Given the momentum that
the economy is building, we believe that the unemployment rate will move below
its present level.
Fed officials have indicated in their official forecast that they expect
today's higher interest rate structure to slow the economy's growth in the
second half of this year. The interest-sensitive sectors of housing and
consumer durables are the prime candidates to weaken. With foreign demand
expected to augment domestic demand, we are skeptical that the economy will
slow enough to alleviate inflationary pressures unless the Fed undertakes some
modest tightening actions. We think that in the second half of 1996 the Fed
will start to tighten monetary policy in order to prevent inflationary
pressures from building. This tightening is likely to be of the fine-tuning
variety, which will result in a slowing in economic activity sufficient to
alleviate inflationary pressures, but will not result in a recession over the
next 12 to 18 months.
Because inflation psychology has been largely eliminated from the economy,
speculative excesses have not developed in this extended business cycle.
Although households in general may not yet be overburdened with debt, clearly
financial stresses are mounting, as evidenced by the highest credit card
delinquency rates in 15 years. Tightening credit standards are likely to
moderate consumer spending growth, thereby reinforcing the more restrictive Fed
policy we expect. Because of these factors, we believe that the Fed will need
to raise the federal funds rate by only 50 to 75 basis points to accomplish its
goal. It very well may be that a year from now, the Fed will be contemplating a
cut in rates.
EQUITIES ONLY MODESTLY ATTRACTIVE
After a strong return in the first six months of 1996, we expect equities to
struggle or consolidate over the summer as their relative attraction compared to
bonds has a greater impact on valuations. Since we view bonds as having reached
an area of fair value, especially on a 12-18 month view, we do not see much
additional pressure created from poor fixed income performance. However, stocks
and bonds need to re-link their past six month discrepancy by either a rally in
bonds or a pullback in stocks.
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 amount invested.
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
INVESTMENT OUTLOOK--CONTINUED
Strong public demand for mutual funds has kept equities at high levels and
public support shows little sign of waning. Yet it is important to note that
stocks have made little upside progress since mid-February (when bonds began to
weaken) despite almost $100 billion of additional public mutual fund buying.
The fact that stocks indeed have stopped rising in and of itself is a new piece
of information. We conclude that stocks need a more benign bond market which
could develop over the next 6-12 months.
Turning our attention to the earnings outlook for 1997, our belief is that a
modest pickup is likely after a flattish 1996. Our sense is that the consensus
will call for a 10.0%-15.0% pickup in 1997, while we think margin pressure from
lower productivity gains and moderate upward wage pressure will cause earnings
to be less robust, perhaps in the 6.0%-9.0% range.
GLOBAL MARKETS ARE APPEALING
Despite a strong first quarter in Japan and a good recovery in France, economic
growth has been subdued in the major economies during the early part of 1996.
However, most of Europe is expecting gradual improvement over the next eighteen
months, while Japanese projections continue to focus on a gradual recovery that
will soon become self-sustaining.
In the global bond markets, Germany and Japan have outperformed the U.S. by a
considerable margin this year, due to their lagging domestic economies and
favorable inflation differentials. These fundamentals could begin to reverse or
at least stabilize by year-end as inflation expectations improve. Within
Europe, the convergence trend should continue. We see little risk that growth
in Germany will strengthen enough to alter monetary policy and expect the
political drive towards Economic and Monetary Unions to remain strong. Thus,
the peripheral markets of Italy, Spain and Sweden continue to look attractive
in spite of their spectacular 1996 run.
From an equity standpoint, we believe global markets hold greater appeal than
the U.S. for two primary reasons. First, most global stocks have lagged the
broad U.S. market rally of the past eighteen months. Thus, prices are not as
extended, especially compared to bonds which have been much better behaved in
both Europe and Japan. The fact that these bull markets are younger argues for
greater staying power since they face fewer constraints relative to fixed
income alternatives. Second, valuations are less stretched compared with the
U.S. as only Hong Kong is approaching an area of historic high valuation.
Given our view that the dollar is late in its rally, foreign markets look set
to outperform the U.S. market in dollar terms. After a twelve-month head wind
of falling currency values, global investors may be set to enjoy positive
returns in both local currencies and in dollars. While we do not expect a sharp
dollar decline unless an unsettled political event occurs this fall, we do see
some retracement of the past twelve months' gains. Coupled with a better
earnings environment in Japan this year and next, and a recovery in Europe in
1997, fundamental support for foreign markets seems strong.
July 8, 1996
2
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------
BALANCED PORTFOLIO
<C> <S> <C>
COMMON STOCKS--57.2%
BANKING--1.7%
9,020 Banc One Corp. $ 334
7,700 First USA, Inc. 446
-------
780
CHEMICALS AND ALLIED PRODUCTS--4.3%
9,400 Merck & Co., Inc. 608
13,411 Morton International, Inc. 510
6,900 Praxair, Inc. 280
6,400 Procter & Gamble Co. 562
-------
1,960
COMMUNICATIONS--3.3%
9,800 AT&T Corp. 611
10,700 Ameritech Corp. 605
4,400 Reuters Holdings PLC ADR 306
-------
1,522
COMPUTERS AND OFFICE MACHINES--2.0%
8,200 Cisco Systems, Inc.* 449
4,000 Microsoft Corp.* 475
-------
924
COSMETICS AND PERSONAL CARE--1.1%
8,800 Gillette Co. 520
CREDIT INSTITUTIONS--0.9%
12,000 Green Tree Financial Corp. 393
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--
5.8%
6,800 Duracell International, Inc. 317
6,000 Emerson Electric Co. 514
9,200 General Electric Co. 761
5,500 Intel Corp. 415
8,200 Linear Technology Corp. 283
7,300 Raytheon Co. 389
-------
2,679
FOOD AND BEVERAGES--2.7%
7,000 McDonald's Corp. 337
12,000 PepsiCo, Inc. 399
4,900 Phillip Morris Cos., Inc. 487
-------
1,223
GLASS, CLAY AND STONE PRODUCTS--0.5%
7,800 Newell Co. 234
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
HEALTH SERVICES--2.8%
13,100 Health Management Associates, Inc.,
Class A* $ 452
13,400 Invacare Corp. 349
5,199 Johnson & Johnson Co. 506
-------
1,307
HEAVY CONSTRUCTION--0.9%
6,000 Fluor Corp. 392
INDUSTRIAL INSTRUMENTS--1.8%
3,700 Hewlett-Packard Co. 395
12,800 Sundstrand Corp. 451
-------
846
INSURANCE SERVICES--3.5%
5,850 American International Group, Inc. 551
3,900 General Re Corp. 570
6,400 MBIA, Inc. 487
-------
1,608
MEDICAL PRODUCTS AND EQUIPMENT--0.7%
5,700 Nellcor Puritan Bennett, Inc.* 311
MERCHANDISE--GENERAL--0.9%
7,000 Alco Standard Corp. 438
METAL PRODUCTS--0.9%
7,400 Nucor Corp. 407
MORTGAGE AGENCIES--1.4%
20,800 Federal National Mortgage Association 642
PAPER PRODUCTS--1.1%
7,200 Kimberly-Clark Corp. 525
PETROLEUM PRODUCTS--5.9%
10,100 Amoco Corp. 732
7,300 Exxon Corp. 619
6,500 Mobil Corp. 734
4,150 Royal Dutch Petroleum Co. ADR 622
-------
2,707
PROFESSIONAL SERVICES--2.8%
9,200 Automatic Data Processing, Inc. 353
12,200 CUC International, Inc.* 451
6,400 Computer Sciences Corp.* 505
-------
1,309
RECREATION AND LEISURE SERVICES--3.7%
18,200 Carnival Corp., Class A 542
5,700 Disney (Walt) Co. 346
10,200 Harley-Davidson, Inc. 488
12,750 Mattel, Inc. 347
-------
1,723
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares and contracts)
(Unaudited)
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- ---------------------------------------------------
<C> <S> <C>
BALANCED PORTFOLIO--CONTINUED
RETAIL--5.2%
10,400 Fastenal Co. $ 468
7,500 Home Depot, Inc. 383
14,100 Staples, Inc.* 282
9,400 Viking Office Products, Inc. 269
18,600 Walgreen Co. 593
15,000 Wal-Mart Stores, Inc. 388
--------
2,383
TEXTILES--0.6%
5,000 Cintas Corp. 268
TRANSPORTATION PARTS AND EQUIPMENT--2.0%
10,700 Danaher Corp. 444
8,800 General Motors Corp., Class E 496
--------
940
TRANSPORTATION SERVICES--0.7%
11,000 Southwest Airlines Co. 301
- ---------------------------------------------------
TOTAL COMMON STOCKS
(Cost $21,219) $ 26,342
- ---------------------------------------------------
U.S. GOVERNMENT AGENCIES--3.7%
FEDERAL NATIONAL MORTGAGE ASSOCIATION REMIC
TRUST--1.6%
Series: 1991-37, Class G
$ 250 8.150%Due 08/25/05 $ 255
Series: 1992-2000, Class E
500 6.250%Due 06/25/17 492
--------
747
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--2.1%
Series: 2026
314 7.000%Due 04/15/26 298
Series: 2026
696 7.000%Due 05/16/26 662
--------
960
- ---------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $1,719) $ 1,707
- ---------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Description Value
- ---------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS--19.8%
U.S. TREASURY NOTES--19.8%
$ 1,725 8.125%Due 02/15/98 $ 1,777
750 5.375%Due 05/31/98 738
1,835 6.750%Due 05/31/99 1,849
1,390 6.875%Due 08/31/99 1,404
1,800 6.250%Due 02/15/03 1,752
1,000 5.750%Due 08/15/03 942
650 7.500%Due 02/15/05 677
- ---------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $9,316) $ 9,139
- ---------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATION--0.8%
DLJ Mortgage Acceptance Corp.
Series: 1994-Q8 Class 2A1
$ 390 7.250%Due 05/25/24 $ 386
- ---------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATION
(Cost $380) $ 386
- ---------------------------------------------------------
ASSET-BACKED SECURITIES--4.3%
FINANCIAL--4.3%
Banc One Auto Trust
Series: 1995-A Class A2
$ 122 6.650%Due 05/15/97 $ 122
Olympic Automobile Receivables Trust
Series: 1995-D Class A3
700 5.950%Due 11/15/99 697
Premier Auto Trust
Series: 1994-1 Class A3
244 4.750%Due 02/02/00 242
Western Financial Grantor Trust
Series: 1994-4 Class A1
204 7.100%Due 01/01/00 206
Western Financial Grantor Trust
Series: 1995-5 Class A1
743 5.875%Due 03/01/02 736
-------
2,003
- ---------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $2,014) $ 2,003
- ---------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Description Value
- ----------------------------------------------------------
<C> <S> <C>
CORPORATE BONDS--6.5%
FINANCIAL--5.0%
Equitable Life Assurance Co.
$ 400 6.950%Due 12/01/05 $ 380
Lehman Brothers MTN
475 6.875%Due 06/08/98 475
Pitney Bowes Credit Corp.
500 8.550%Due 09/15/09 545
Prudential Insurance Co. of America
400 7.650%Due 07/01/07 393
Salomon Inc. MTN
500 5.500%Due 01/31/98 489
-------
2,282
SUPRANATIONAL--1.5%
InterAmerican Development Bank
350 8.875%Due 06/01/09 395
250 8.400%Due 09/01/09 277
-------
672
- ----------------------------------------------------------
TOTAL CORPORATE BONDS
(Cost $3,001) $ 2,954
- ----------------------------------------------------------
FLOATING RATE BANK NOTES--1.9%
Hong Kong & Shanghai Bank, Series: 1
$ 140 5.563%Due 08/23/96 $ 118
National Australia Bank
500 5.806%Due 10/15/96 428
National Westminster Bank, Series: C
400 5.625%Due 08/30/96 345
- ----------------------------------------------------------
TOTAL FLOATING RATE BANK NOTES
(Cost $858) $ 891
- ----------------------------------------------------------
EURODOLLAR TIME DEPOSIT--5.1%
Banque Brussels Lambert, Grand Cayman
$ 2,330 5.528%Due 06/03/96 $ 2,330
- ----------------------------------------------------------
TOTAL EURODOLLAR TIME DEPOSIT
(Cost $2,330) $ 2,330
- ----------------------------------------------------------
TOTAL INVESTMENTS--99.3%
(Cost $40,837) $45,752
- ----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Number of
Contracts Description Value
- -----------------------------------------------
<C> <S> <C>
CALL OPTIONS WRITTEN--(0.1)%
General Re Corp.
39 June 1996 @ $150 $ (2)
Harley-Davidson, Inc.
100 June 1996 @ $45 (30)
Morton International Inc.
130 July 1996 @ $40 (7)
Wal-Mart Stores Inc.
150 June 1996 @ $25 (13)
- -----------------------------------------------
TOTAL CALL OPTIONS WRITTEN
(Premium received $41) $ (52)
- -----------------------------------------------
TOTAL INVESTMENTS NET OF OUTSTANDING
CALL OPTIONS WRITTEN--99.2% $45,700
- -----------------------------------------------
Other assets, less liabilities--0.8% 389
- -----------------------------------------------
NET ASSETS--100.0% $46,089
- -----------------------------------------------
- -----------------------------------------------
</TABLE>
*Non-income producing security.
For Floating Rate Bank Notes the interest rate shown represents the current
reset rate and the due date shown represents the next interest reset date.
See accompanying notes to financial statements.
5
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
DIVERSIFIED GROWTH PORTFOLIO
<C> <S> <C>
COMMON STOCKS--96.7%
BANKING--3.9%
68,640 Banc One Corp. $ 2,540
54,100 First USA, Inc. 3,138
--------
5,678
BROKERAGE SERVICES--0.8%
50,000 Schwab (Charles) Corp. 1,213
CHEMICALS AND ALLIED PRODUCTS--10.6%
41,000 Abbott Laboratories 1,768
50,800 Air Products and Chemicals, Inc. 3,023
39,000 American Home Products Corp. 2,087
33,300 IDEXX Laboratories, Inc.* 1,448
15,000 Lilly (Eli) & Co. 964
23,400 Merck & Co., Inc. 1,512
44,437 Morton International, Inc. 1,689
50,000 Praxair, Inc. 2,031
9,000 Procter & Gamble Co. 791
--------
15,313
COMMUNICATIONS--5.8%
63,400 AT&T Corp. 3,954
59,800 Ameritech Corp. 3,379
21,600 SBC Communications, Inc. 1,066
--------
8,399
COMPUTERS AND OFFICE MACHINES--3.2%
57,000 Cisco Systems, Inc.* 3,121
12,900 Microsoft Corp.* 1,532
--------
4,653
COSMETICS AND PERSONAL CARE--0.6%
14,100 Gillette Co. 834
CREDIT INSTITUTIONS--2.2%
56,500 Green Tree Financial Corp. 1,850
108,000 Mercury Finance Co. 1,350
--------
3,200
ELECTRICAL SERVICES--2.2%
114,700 Wisconsin Energy 3,212
ELECTRONICS AND OTHER ELECTRICAL EQUIP-
MENT--8.6%
63,500 Duracell International, Inc. 2,961
49,600 General Electric Co. 4,104
22,900 Intel Corp. 1,729
44,000 Linear Technology Corp. 1,518
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
48,800 Solectron Corp.* $ 2,117
--------
12,429
FOOD AND BEVERAGES--3.7%
30,000 CPC International, Inc. 2,074
17,000 Phillip Morris Cos., Inc. 1,689
60,000 Starbucks Corp.* 1,627
--------
5,390
GLASS, CLAY AND STONE PRODUCTS--1.1%
58,700 Newell Co. 1,761
HEALTH SERVICES--5.1%
97,950 Health Management Associates, Inc., Class A* 3,379
20,000 Johnson & Johnson Co. 1,947
25,000 PacifiCare Health Systems, Inc., Class B* 2,069
--------
7,395
HEAVY CONSTRUCTION--2.3%
51,000 Fluor Corp. 3,328
INDUSTRIAL INSTRUMENTS--3.6%
18,800 Hewlett-Packard Co. 2,007
26,400 Raytheon Co. 1,406
50,000 Sundstrand Corp. 1,763
--------
5,176
INSURANCE SERVICES--3.2%
18,900 American International Group, Inc. 1,781
17,400 MBIA, Inc. 1,324
36,900 Mutual Risk Management, Ltd. 1,481
--------
4,586
LUMBER AND WOOD PRODUCTS--0.7%
50,000 Clayton Homes, Inc. 963
MEDICAL PRODUCTS AND EQUIPMENT--1.5%
20,000 Invacare Corp. 520
30,200 Nellcor Puritan Bennett, Inc.* 1,646
--------
2,166
MERCHANDISE-GENERAL--1.7%
40,000 Alco Standard Corp. 2,500
MORTGAGE AGENCIES--2.0%
92,000 Federal National Mortgage Association 2,841
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
OIL AND GAS--1.2%
20,000 Schlumberger, Ltd. $ 1,667
PAPER PRODUCTS--1.3%
26,300 Kimberly-Clark Corp. 1,917
PETROLEUM PRODUCTS--8.9%
50,650 Amoco Corp. 3,672
37,300 Exxon Corp. 3,161
34,650 Mobil Corp. 3,911
14,000 Royal Dutch Petroleum Co. ADR 2,100
--------
12,844
PROFESSIONAL SERVICES--6.5%
38,000 Automatic Data Processing, Inc. 1,458
32,800 CUC International, Inc.* 1,214
20,000 Computer Sciences Corp.* 1,577
16,368 First Data Corp. 1,305
71,900 Olsten Corp. 2,211
47,500 Oracle Systems Corp.* 1,573
--------
9,338
RECREATION AND LEISURE SERVICES--4.3%
68,100 Carnival Corp., Class A 2,026
25,000 Circus Circus Enterprises, Inc.* 1,041
113,375 Mattel, Inc. 3,089
--------
6,156
RETAIL--5.5%
32,200 Circuit City Stores, Inc. 1,050
31,200 Home Depot, Inc. 1,595
96,050 Staples, Inc.* 1,921
107,300 Walgreen Co. 3,420
--------
7,986
TEXTILES--1.1%
30,000 Cintas Corp. 1,605
TRANSPORTATION PARTS AND EQUIPMENT--3.7%
46,500 Danaher Corp. 1,930
20,000 General Motors Corp., Class E 1,128
46,500 Magna International, Inc., Class A 2,244
--------
5,302
WHOLESALE--1.4%
20,000 Nike, Inc., Class B 2,007
- ------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $112,682) $139,859
- ------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Description Value
- -------------------------------------------------------------
<C> <S> <C>
EURODOLLAR TIME DEPOSIT--3.1%
Banque Brussels Lambert, Grand Cayman
$ 4,549 5.438%Due 06/03/96 $ 4,549
- -------------------------------------------------------------
TOTAL EURODOLLAR TIME DEPOSIT
(Cost $4,549) $ 4,549
- -------------------------------------------------------------
TOTAL INVESTMENTS--99.8%
(Cost $117,231) $144,408
- -------------------------------------------------------------
Other assets, less liabilities--0.2% 248
- -------------------------------------------------------------
NET ASSETS--100.0% $144,656
- -------------------------------------------------------------
- -------------------------------------------------------------
</TABLE>
*Non-income producing security.
See accompanying notes to financial statements.
7
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
EQUITY INDEX PORTFOLIO
COMMON STOCKS--99.7%
AGRICULTURE--0.1%
10,200 Pioneer Hi-Bred International, Inc. $ 576
APPAREL--0.1%
9,100 Liz Claiborne, Inc. 338
7,800 V. F. Corp. 475
--------
813
BANKING--7.0%
14,400 Ahmanson (H.F.) & Co. 371
55,649 Banc One Corp. 2,059
13,800 Bank of Boston Corp. 688
24,500 Bank of New York Co., Inc. 1,271
45,376 BankAmerica Corp. 3,415
9,600 Bankers Trust New York Corp. 721
11,600 Barnett Banks, Inc. 725
19,300 Boatmen's Bancshares, Inc. 781
53,446 Chase Manhattan Corp. 3,741
59,600 Citicorp 5,007
14,600 Comerica, Inc. 639
27,200 Corestates Financial Corp. 1,071
12,300 Fifth Third Bancorp 670
17,900 First Bank System, Inc. 1,081
39,307 First Chicago NBD Corp. 1,715
34,915 First Union Corp. 2,134
7,200 Golden West Financial Corp. 395
16,700 Great Western Financial Corp. 384
29,000 Keycorp 1,124
16,350 Mellon Bank Corp. 934
23,000 Morgan (J.P.) & Co., Inc. 1,998
27,000 National City Corp. 962
36,268 NationsBank Corp. 2,942
43,300 Norwest Corp. 1,510
41,800 PNC Bank Corp. 1,270
6,900 Republic New York Corp. 436
27,800 Sun Trust Banks, Inc. 1,015
18,600 U.S. Bancorp 663
20,900 Wachovia Corp. 896
11,966 Wells Fargo & Co. 2,884
--------
43,502
BITUMINOUS COAL AND LIGNITE SURFACE MINING--0.1%
32,200 Houston Industries, Inc. 704
1,100 Nacco Industries, Inc. 62
--------
766
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
BROKERAGE AND FINANCIAL SERVICES--1.1%
59,400 American Express Co. $ 2,718
32,601 Fleet Financial Group, Inc. 1,439
21,500 Merrill Lynch & Co., Inc. 1,392
19,000 Morgan Stanley Group, Inc. 941
13,000 Salomon, Inc. 544
--------
7,034
CHEMICAL AND ALLIED PRODUCTS--11.6%
96,900 Abbott Laboratories 4,179
13,700 Air Products and Chemicals, Inc. 815
7,900 Allergan, Inc. 304
10,100 Alza Corp.* 288
76,700 American Home Products Corp. 4,104
32,600 Amgen, Inc.* 1,940
8,300 Avon Products, Inc. 768
33,300 Baxter International, Inc. 1,473
61,800 Bristol-Myers Squibb Co. 5,276
6,400 Clorox Co. 545
17,800 Colgate-Palmolive Co. 1,402
32,100 Dow Chemical Co. 2,684
68,100 Du Pont (E.I.) de Nemours & Co., Inc. 5,431
9,875 Eastman Chemical Co. 662
7,900 Ecolab, Inc. 257
4,500 FMC Corp. 303
6,500 Goodrich (B.F.) Co. 258
11,900 Grace (W.R.) & Co. 887
7,900 Great Lakes Chemical Corp. 510
13,500 Hercules, Inc. 766
13,600 International Flavors & Fragrances, Inc. 661
67,598 Lilly (Eli) & Co. 4,343
150,900 Merck & Co., Inc. 9,752
18,000 Morton International, Inc. 684
8,200 Nalco Chemical Co. 260
23,600 PPG Industries, Inc. 1,221
78,000 Pfizer, Inc. 5,519
61,720 Pharmacia & Upjohn, Inc. 2,523
18,500 Praxair, Inc. 752
84,100 Procter & Gamble Co. 7,390
8,200 Rohm & Haas Co. 556
44,600 Schering-Plough Corp. 2,615
10,400 Sherwin-Williams Co. 467
16,800 Union Carbide Corp. 725
33,200 Warner-Lambert Co. 1,859
--------
72,179
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
COMMUNICATIONS--8.5%
195,900 AT&T Corp. $ 12,219
60,700 AirTouch Communications, Inc.* 1,935
23,200 Alltel Corp. 731
67,900 Ameritech Corp. 3,836
53,600 Bell Atlantic Corp. 3,343
121,800 Bellsouth Corp. 4,948
29,400 Comcast Corp. 511
118,700 GTE Corp. 5,074
83,500 MCI Communications Corp. 2,432
9,100 Mallinckrodt, Inc. 342
52,700 Nynex Corp. 2,431
52,500 Pacific Telesis Group 1,752
11,700 Providian Corp. 510
74,700 SBC Communications, Inc. 3,688
53,300 Sprint Corp. 2,259
10,900 Tellabs, Inc. 703
57,800 U.S. West Media Group* 1,091
57,700 U.S. West, Inc. 1,882
45,200 Viacom, Inc., Class B* 1,915
23,700 Worldcom Inc. 1,158
--------
52,760
COMPUTERS AND OFFICE MACHINES--4.6%
14,600 Amdahl Corp.* 172
15,200 Apple Computer, Inc. 397
22,600 Bay Network Inc. 655
8,800 Cabletron Systems, Inc.* 640
8,100 Ceridian Corp.* 428
67,700 Cisco Systems, Inc.* 3,707
32,600 Compaq Computer Corp.* 1,585
4,700 Data General Corp.* 60
18,800 Digital Equipment Corp.* 980
27,800 EMC Corp. 615
5,700 Intergraph Corp.* 75
69,700 International Business Machines Corp. 7,440
72,800 Microsoft Corp.* 8,645
18,600 Pitney Bowes, Inc. 923
19,900 Silicon Graphics, Inc.* 547
20,200 3Com Corp.* 995
14,400 Tandem Computers, Inc.* 180
7,800 Tandy Corp. 421
21,000 Unisys Corp.* 171
--------
28,636
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------
<C> <S> <C>
CONSTRUCTION--0.2%
13,900 Dover Corp. $ 660
22,300 Dresser Industries, Inc. 652
--------
1,312
COSMETICS AND PERSONAL CARE--0.5%
54,400 Gillette Co. 3,216
CREDIT INSTITUTIONS--0.6%
6,500 Beneficial Corp. 379
20,872 Dean Witter Discover & Co. 1,237
16,800 Green Tree Financial Corp. 550
12,000 Household International, Inc. 831
27,350 MBNA Corp. 838
--------
3,835
ELECTRICAL SERVICES--3.0%
22,800 American Electric Power Co. 915
18,100 Baltimore Gas and Electric Co. 496
18,900 Carolina Power & Light Co. 683
25,300 Central and South West Corp. 699
19,310 Cinergy Corp. 572
28,800 Consolidated Edison Co. of New York, Inc. 803
17,800 DTE Energy Co. 521
21,500 Dominion Resources, Inc. 814
25,100 Duke Power Co. 1,211
54,600 Edison International 901
27,900 Entergy Corp. 732
22,700 FPL Group, Inc. 970
14,700 General Public Utilities Corp. 492
17,700 Niagara Mohawk Power Corp. 135
8,300 Northern States Power Co. 390
18,700 Ohio Edison Co. 409
19,500 PP&L Resources, Inc. 446
51,400 Pacific Gas & Electric Co. 1,195
35,900 PacifiCorp 722
27,200 Peco Energy Co. 670
30,000 Public Service Enterprise Group, Inc. 795
81,600 Southern Co. 1,887
27,700 Texas Utilities Co. 1,132
26,300 Unicom Corp. 727
12,500 Union Electric Co. 492
--------
18,809
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--7.1%
26,656 AMP, Inc. 1,123
16,000 Advanced Micro Devices, Inc.* 282
7,187 Andrew Corp.* 390
13,200 Cooper Industries, Inc. 563
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
EQUITY INDEX PORTFOLIO--CONTINUED
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--CONTINUED
14,100 DSC Communications Corp.* $ 425
27,500 Emerson Electric Co. 2,355
204,700 General Electric Co. 16,939
15,000 General Instrument Corp. 463
4,800 Harris Corp. 310
14,600 ITT Corp.* 898
100,600 Intel Corp. 7,595
15,800 LSI Logic Corp. 492
13,200 Maytag Corp. 284
25,400 Micron Technology, Inc. 819
72,400 Motorola, Inc. 4,833
16,600 National Semiconductor Corp.* 270
5,900 National Service Industries, Inc. 229
31,100 Northern Telecom, Ltd. 1,687
5,500 Raychem Corp. 411
9,400 Scientific-Atlanta, Inc. 177
80,000 TeleCommunications, Inc.* 1,510
23,100 Texas Instruments, Inc. 1,300
4,900 Thomas & Betts Corp. 189
9,100 Whirlpool Corp. 518
--------
44,062
FOOD AND BEVERAGES--9.3%
31,200 Anheuser-Busch Cos., Inc. 2,223
63,785 Archer-Daniels-Midland Co. 1,244
8,500 Brown-Forman, Inc. 345
17,900 CPC International, Inc. 1,237
30,500 Campbell Soup Co. 1,967
307,500 Coca Cola Co. 14,145
30,250 ConAgra, Inc. 1,289
4,600 Coors (Adolph) Co. 86
19,500 General Mills, Inc. 1,119
45,300 Heinz (H.J.) Co. 1,506
9,500 Hershey Foods Corp. 691
26,600 Kellogg Co. 1,935
2,900 Luby's Cafeterias, Inc. 71
85,300 McDonalds Corp. 4,105
193,200 PepsiCo, Inc. 6,424
102,300 Philip Morris Cos., Inc. 10,166
16,500 Quaker Oats Co. 580
13,000 Ralston Purina Group 796
59,300 Sara Lee Corp. 1,979
45,800 Seagram Co., Ltd. 1,586
23,700 UST, Inc. 782
19,600 Unilever N.V. ADR 2,644
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
12,900 Whitman Corp. $ 324
14,200 Wrigley (WM) Jr. Co. 744
--------
57,988
FURNITURE AND FIXTURES--0.1%
19,700 Masco Corp. 616
GENERAL BUILDING CONTRACTORS--0.2%
3,500 Centex Corp. 106
15,600 Honeywell, Inc. 792
4,800 Kaufman & Broad Home Corp. 71
3,300 Pulte Corp. 92
--------
1,061
GLASS, CLAY AND STONE PRODUCTS--0.3%
28,100 Corning, Inc. 1,075
19,400 Newell Co. 582
--------
1,657
HEALTH SERVICES--1.6%
12,100 Beverly Enterprises, Inc.* 148
54,597 Columbia/HCA Healthcare Corp. 323
5,300 Community Psychiatric Centers* 50
19,800 Humana, Inc. 436
81,700 Johnson & Johnson Co. 7,956
7,650 Manor Care, Inc. 298
8,600 St. Jude Medical, Inc.* 327
25,600 Tenet Healthcare Corp.* 550
--------
10,088
HEAVY CONSTRUCTION--0.3%
10,200 Fluor Corp. 666
4,900 Foster Wheeler Corp. 218
14,000 Halliburton Co. 779
--------
1,663
INDUSTRIAL INSTRUMENTS--3.4%
7,000 Bard (C.R.), Inc. 230
7,000 Bausch & Lomb, Inc. 301
7,800 Becton Dickinson & Co. 663
14,100 Biomet, Inc.* 198
21,300 Boston Scientific Corp.* 913
41,900 Eastman Kodak Co. 3,116
62,500 Hewlett-Packard Co. 6,672
5,000 Johnson Controls, Inc. 349
28,500 Medtronic, Inc. 1,603
5,500 Millipore Corp. 241
5,300 Perkin-Elmer Co. 281
5,600 Polaroid Corp. 252
29,700 Raytheon Co. 1,582
4,100 Tektronix, Inc. 156
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
7,500 United States Surgical Corp. $ 240
13,200 Xerox Corp. 2,077
--------
18,874
INSURANCE SERVICES--3.7%
14,100 Aetna Life & Casualty Co. 1,040
5,400 Alexander & Alexander Services, Inc. 107
54,865 Allstate Corp. 2,318
25,100 American General Corp. 891
58,075 American International Group, Inc. 5,474
13,200 AON Corp. 665
21,400 Chubb Corp. 998
9,300 CIGNA Corp. 1,068
10,100 General Re Corp. 1,475
14,600 ITT Hartford Group, Inc. 756
8,725 Jefferson-Pilot Corp. 448
12,700 Lincoln National Corp. 597
14,400 Loews Corp. 1,148
9,000 Marsh & McLennan Cos., Inc. 843
15,400 Safeco Corp. 519
10,400 St. Paul Companies, Inc. 550
8,750 Torchmark Corp. 373
8,400 Transamerica Corp. 680
58,137 Travelers Group, Inc. 2,413
8,900 UNUM Corp. 525
13,800 USF & G Corp. 221
4,200 USLIFE Corp. 126
18,800 U.S. Healthcare, Inc. 1,020
21,400 United Healthcare Corp. 1,174
--------
25,429
JEWELRY AND PRECIOUS METALS--0.4%
4,700 Jostens, Inc. 106
LEATHER PRODUCTS--0.0%
2,200 Brown Group, Inc. 37
6,100 Stride Rite Corp. 55
--------
92
LUMBER AND WOOD PRODUCTS--0.1%
13,200 Louisiana-Pacific Corp. 325
MACHINERY--1.5%
22,000 Applied Materials, Inc.* 820
17,500 Baker Hughes, Inc. 549
10,500 Black & Decker Corp. 432
3,500 Briggs & Stratton Corp. 151
11,800 Brunswick Corp. 264
8,800 Case Equipment Corp. 441
24,200 Caterpillar, Inc. 1,588
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
4,900 Cincinnati Milacron, Inc. $ 118
4,900 Cummins Engine Co. 208
32,200 Deere & Co. 1,340
5,800 General Signal Corp. 222
4,200 Giddings & Lewis, Inc. 70
5,700 Harnischfeger Industries, Inc. 200
13,300 Ingersoll-Rand Co. 560
2,500 Outboard Marine Corp. 48
21,300 Tenneco, Inc. 1,145
3,800 Timken Co. 150
18,700 Tyco Laboratories, Inc. 739
4,900 Varity Corp.* 241
--------
9,286
MANUFACTURING--0.1%
3,400 Alberto-Culver Co., Class B 135
11,500 Dial Corp. 331
14,600 ITT Industries 400
--------
866
MERCHANDISE-GENERAL--0.2%
15,700 Alco Standard Corp. 981
5,000 Snap-On, Inc. 241
5,400 Stanley Works 327
--------
1,549
METAL MINING--0.9%
43,300 Barrick Gold Corp. 1,364
11,350 Cyprus/Amax Minerals Co. 273
15,500 Echo Bay Mines, Ltd. 209
24,800 Freeport-McMoran Copper & Gold, Inc. 825
18,000 Homestake Mining Co. 371
14,500 Inco, Ltd. 473
12,139 Newmont Mining Corp. 731
29,300 Placer Dome, Inc. 868
16,080 Santa Fe Pacific Gold Corp. 245
--------
5,359
METAL PRODUCTS--0.2%
3,700 Ball Corp. 102
3,700 Crane Co. 156
15,300 Crown Cork & Seal Co., Inc.* 715
6,700 McDermott International, Inc. 146
9,050 Parker-Hannifin Co. 369
--------
1,488
MORTGAGE AGENCIES--1.0%
22,200 Federal Home Loan Mortgage Corp. 1,834
133,700 Federal National Mortgage Association 4,128
--------
5,962
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
EQUITY INDEX PORTFOLIO--CONTINUED
NATURAL GAS TRANSMISSION--1.2%
12,900 Coastal Corp. $ 529
6,600 Columbia Gas System, Inc.* 2,941
11,400 Consolidated Natural Gas Co. 551
2,500 Eastern Enterprises 85
30,800 Enron Corp. 1,232
8,400 Enserch Corp. 182
6,200 Nicor, Inc. 172
15,300 Noram Energy Corp. 163
3,300 Oneok, Inc. 90
10,400 Pacific Enterprises* 274
4,300 Peoples Energy Corp. 138
10,500 Sonat, Inc. 445
12,400 Williams Company, Inc. 623
--------
7,425
OIL AND GAS--0.9%
15,500 Burlington Resources, Inc. 589
3,000 Helmerich & Payne, Inc. 109
4,100 Louisiana Land & Exploration Co. 221
39,000 Occidental Petroleum Corp. 1,009
12,800 Oryx Energy Co.* 208
18,400 Panenergy Corp. 591
10,400 Rowan Cos., Inc.* 157
11,100 Santa Fe Energy Resources, Inc.* 133
29,600 Schlumberger, Ltd. 2,468
6,500 Western Atlas, Inc.* 398
--------
5,883
PAPER PRODUCTS--2.1%
6,500 Avery Dennison Corp. 371
6,500 Bemis Co., Inc. 215
5,900 Boise Cascade Co. 248
11,800 Champion International Corp. 521
11,300 Georgia-Pacific Corp. 816
36,235 International Paper Co. 1,445
10,400 James River Corp. 259
34,192 Kimberly-Clark Corp. 2,492
6,600 Mead Corp. 355
51,400 Minnesota Mining & Manufacturing Co. 3,508
12,104 Stone Container Corp.* 188
6,900 Temple Inland, Inc. 340
8,600 Union Camp Corp. 453
12,350 Westvaco Corp. 395
24,700 Weyerhaeuser Co. 1,121
--------
12,727
PERSONAL SERVICES--0.5%
12,700 Block (H.& R.), Inc. 443
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
<C> <S> <C>
5,900 Hilton Hotels Corp. $ 636
15,300 Marriott International Corp. 727
14,350 Service Corp. International 802
6,800 Willamette Industries, Inc. 408
--------
3,016
PETROLEUM PRODUCTS--7.6%
11,400 Amerada Hess Corp. 650
60,900 Amoco Corp. 4,415
7,800 Ashland Oil, Inc. 334
19,700 Atlantic Richfield Co. 2,357
79,900 Chevron Corp. 4,774
152,200 Exxon Corp. 12,899
6,300 Kerr-McGee Corp. 370
48,300 Mobil Corp. 5,452
5,700 Pennzoil Co. 247
32,100 Phillips Petroleum Co. 1,332
65,700 Royal Dutch Petroleum Co. ADR 9,855
9,200 Sun Co., Inc. 282
32,400 Texaco, Inc. 2,714
35,200 USX-Marathon Group 770
30,300 Unocal Corp. 985
--------
47,436
PRINTING AND PUBLISHING--1.3%
9,100 American Greetings Corp. 247
10,100 Deluxe Corp. 366
18,800 Donnelley (R.R.) & Sons Co. 691
11,900 Dow Jones & Co., Inc. 466
17,200 Gannett Co., Inc. 1,200
3,800 Harland (John H.) Co. 103
5,900 Knight-Ridder, Inc. 441
12,300 McGraw-Hill, Inc. 577
3,400 Meredith Corp. 156
12,200 Moore Corp. Ltd. 227
11,800 New York Times Co. 388
47,500 Time Warner, Inc. 1,918
13,300 Times Mirror Co. 580
7,800 Tribune Co. 578
--------
7,938
PROFESSIONAL SERVICES--2.1%
5,700 Autodesk, Inc. 198
35,600 Automatic Data Processing, Inc. 1,366
22,350 CUC International, Inc.* 827
29,700 Computer Associates International, Inc. 2,160
6,900 Computer Sciences Corp.* 544
27,300 First Data Corp. 2,177
9,600 Interpublic Group of Cos., Inc. 445
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
<C> <S> <C>
45,100 Novell, Inc.* $ 643
80,000 Oracle Systems Corp.* 2,650
9,700 Ryder System, Inc. 284
7,100 Safety-Kleen Corp. 118
2,800 Shared Medical Systems Corp. 187
22,500 Sun Microsystems, Inc.* 1,409
--------
13,008
RECREATION AND LEISURE SERVICES--1.2%
5,800 Bally Entertainment Corp.* 139
83,000 Disney (Walt) Co. 5,042
8,900 Harcourt General, Inc. 452
12,600 Harrah's Entertainment, Inc.* 424
10,750 Hasbro, Inc. 406
4,500 King World Productions, Inc.* 188
33,845 Mattel, Inc. 922
--------
7,573
RESEARCH AND CONSULTING SERVICES--0.3%
20,800 Dun & Bradstreet Corp. 1,329
5,900 EG&G, Inc. 128
6,000 Ogden Co. 116
--------
1,573
RETAIL--5.0%
31,000 Albertson's, Inc. 1,236
17,900 American Stores Co. 669
12,600 Charming Shoppes, Inc.* 101
11,900 Circuit City Stores, Inc. 388
19,400 Darden Restaurants* 230
8,800 Dayton-Hudson Corp. 898
13,900 Dillard Department Stores, Inc. 556
24,800 Federated Department Stores, Inc.* 859
35,300 Gap, Inc. 1,187
7,300 Giant Food, Inc. 252
4,700 Great Atlantic & Pacific Tea Co., Inc. 161
58,400 Home Depot, Inc. 2,986
56,300 K-Mart Corp. 655
15,200 Kroger Co.* 597
33,500 Limited, Inc. 695
2,400 Long Drug Stores Corp. 103
19,700 Lowe's Cos., Inc. 675
30,500 May Department Stores Co. 1,445
12,900 Melville Corp. 524
4,500 Mercantile Stores Co., Inc. 290
9,900 Nordstrom, Inc. 505
27,400 Penney (J.C.) Co., Inc. 1,421
7,600 Pep Boys-Manny Moe & Jack 251
23,903 Price/Costco, Inc.* 478
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
10,300 Rite Aid Corp. $ 303
6,600 Ryan's Family Steak Houses, Inc.* 59
47,800 Sears, Roebuck & Co. 2,432
5,100 Shoney's, Inc.* 62
8,900 TJX Cos., Inc. 314
33,500 Toys "R" Us, Inc.* 972
281,200 Wal-Mart Stores, Inc. 7,276
30,200 Walgreen Co. 963
15,500 Wendy's International, Inc. 279
18,700 Winn-Dixie Stores, Inc. 645
16,300 Woolworth Corp.* 334
--------
30,801
RUBBER AND PLASTICS--0.8%
4,500 Armstrong World Industries, Inc. 265
10,300 Cooper Tire & Rubber Co. 249
18,700 Goodyear Tire & Rubber Co. 944
14,300 Monsanto Co. 2,172
9,300 Reebok International, Ltd. 282
19,300 Rubbermaid, Inc. 540
7,500 Tupperware Corp. 343
--------
4,795
SANITARY SERVICES--0.5%
26,100 Browning-Ferris Industries, Inc. 796
36,100 Laidlaw, Inc. 366
59,600 WMX Technologies, Inc. 2,101
--------
3,263
SERVICE INDUSTRY MACHINERY--0.2%
14,066 Pall Corp. 376
3,600 Trinova Corp. 119
50,900 Westinghouse Electric Corp. 935
--------
1,430
STEEL PRODUCTS--0.9%
27,700 Alcan Aluminum, Ltd. 907
21,700 Aluminum Co. of America 1,337
13,000 Armco, Inc.* 68
5,200 Asarco, Inc. 163
13,800 Bethlehem Steel Corp.* 176
17,687 Engelhard Corp. 433
6,000 Inland Steel Industries, Inc. 130
10,700 Nucor Corp. 589
6,300 Owens Corning Fiberglass Corp.* 254
8,500 Phelps Dodge Corp. 582
7,800 Reynolds Metals Co. 421
10,100 USX-U.S. Steel Group 313
11,175 Worthington Industries, Inc. 225
--------
5,598
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares and contracts)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
EQUITY INDEX PORTFOLIO--CONTINUED
TEXTILES--0.1%
9,300 Fruit of the Loom, Inc.* $ 251
4,800 Russell Corp. 132
2,500 Spring Industries, Inc. 116
--------
499
TOBACCO PRODUCTS--0.2%
22,200 American Brands, Inc. 971
TRANSPORTATION PARTS AND EQUIPMENT--4.7%
34,700 Allied Signal, Inc. 1,900
42,100 Boeing Co. 3,589
46,400 Chrysler Corp. 3,092
12,400 Dana Corp. 415
9,500 Eaton Corp. 550
7,500 Echlin, Inc. 258
5,600 Fleetwood Enterprises, Inc. 169
143,300 Ford Motor Co. 5,231
7,700 General Dynamics Corp. 475
91,800 General Motors Corp. 5,060
14,400 Illinois Tool Works, Inc. 965
24,454 Lockheed Martin Corp. 2,051
13,700 McDonnell Douglas Corp. 1,384
9,020 Navistar International. Corp.* 94
6,100 Northrop Gruman Co. 382
4,760 PACCAR, Inc. 234
26,600 Rockwell International Corp. 1,553
6,800 Teledyne, Inc. 257
10,400 Textron, Inc. 881
8,000 TRW, Inc. 754
15,000 United Technologies Corp. 1,641
--------
30,935
TRANSPORTATION SERVICES--1.6%
11,100 AMR Corp.* 1,048
18,365 Burlington Northern Santa Fe Corp. 1,556
25,800 CSX Corp. 1,277
4,800 Caliber Systems Inc. 178
9,600 Conrail, Inc. 674
5,300 Consolidated Freightways, Inc. 126
6,300 Delta Air Lines, Inc. 522
6,900 Federal Express Corp.* 529
15,900 Norfolk Southern Corp. 1,371
17,600 Southwest Airlines Co. 482
7,700 USAir Group* 152
25,200 Union Pacific Corp. 1,767
3,400 Yellow Corp.* 44
--------
9,726
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- --------------------------------------------------------------
<C> <S> <C>
WHOLESALE--0.7%
4,600 Fleming Cos., Inc. $ 72
15,050 Genuine Parts Co. 685
6,200 Grainger (W.W.), Inc. 415
17,600 Nike, Inc. 1,767
3,600 Potlatch Corp. 149
6,100 Sigma-Aldrich, Corp. 342
8,300 Supervalu Stores, Inc. 257
22,500 Sysco Corp. 768
--------
4,455
- --------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $480,867) $618,961
- --------------------------------------------------------------
U.S. GOVERNMENT OBLIGATION--0.2%
U.S. Treasury Bills #
$ 1,360 5.082%Due 06/27/96 $ 1,344
- --------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION
(Cost $1,342) $ 1,344
- --------------------------------------------------------------
EURODOLLAR TIME DEPOSIT--4.2%
Banque Brussels Lambert, Grand Cayman
$26,267 5.438%Due 06/03/96 $ 26,267
- --------------------------------------------------------------
TOTAL EURODOLLAR TIME DEPOSIT
(Cost $26,267) $ 26,267
- --------------------------------------------------------------
TOTAL INVESTMENTS--104.1%
(Cost $508,476) $646,572
- --------------------------------------------------------------
Liabilities, less other assets--(4.1)% (25,537)
- --------------------------------------------------------------
NET ASSETS--100.0% $621,035
- --------------------------------------------------------------
- --------------------------------------------------------------
</TABLE>
OPEN FUTURES CONTRACTS:
<TABLE>
<CAPTION>
Number of Contract Contract Contract Unrealized
Type Contracts Amount Position Expiration Gain (Loss)
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
S&P 500 80 $26,295 Long 06/21/96 $(383)
S&P 500 2 682 Long 09/20/96 9
-----
$(374)
- --------------------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
#Security pledged to cover margin requirements for open futures contracts.
See accompanying notes to financial statements.
14
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
FOCUSED GROWTH PORTFOLIO
COMMON STOCKS--97.5%
BANKING--3.9%
73,900 First USA, Inc. $ 4,286
CHEMICALS AND ALLIED PRODUCTS--6.4%
25,400 American Home Products Corp. 1,359
23,000 IDEXX Laboratories, Inc.* 1,001
25,000 Lilly (Eli) & Co. 1,606
75,400 Praxair, Inc. 3,063
--------
7,029
COMMUNICATIONS--4.9%
28,300 AT&T Corp. 1,765
25,800 Ameritech Corp. 1,458
31,200 Reuters Holdings PLC ADR 2,172
--------
5,395
COMPUTERS AND OFFICE MACHINES--6.7%
85,200 Cisco Systems, Inc.* 4,665
22,400 Microsoft Corp.* 2,660
--------
7,325
CREDIT INSTITUTIONS--2.8%
26,300 Associates First Capital Corp.* 973
62,500 Green Tree Financial Corp. 2,047
--------
3,020
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--
15.4%
67,300 General Electric Co. 5,569
25,000 Input/Output, Inc.* 1,009
39,500 Intel Corp. 2,982
46,400 Motorola, Inc. 3,097
96,000 Solectron Corp.* 4,164
--------
16,821
FOOD AND BEVERAGES--10.0%
45,600 Brinker International, Inc.* 764
12,700 Kellogg Co. 924
27,100 McDonalds Corp. 1,304
93,600 PepsiCo, Inc. 3,112
32,000 Philip Morris Cos., Inc. 3,180
60,100 Starbucks Corp.* 1,630
--------
10,914
HEALTH SERVICES--6.1%
92,900 Health Management Associates, Inc.* 3,205
26,800 Johnson & Johnson Co. 2,610
10,200 PacifiCare Health Systems, Inc.,
Class B* 844
--------
6,659
HEAVY CONSTRUCTION--1.7%
28,700 Fluor Corp. 1,873
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- -------------------------------------------------------------
<C> <S> <C>
INDUSTRIAL INSTRUMENTS--4.5%
20,700 Hewlett-Packard Co. $ 2,210
51,800 Raytheon Co. 2,758
--------
4,968
INSURANCE SERVICES--3.4%
16,500 American International Group, Inc. 1,555
28,000 MBIA, Inc. 2,132
--------
3,687
MEDICAL PRODUCTS AND EQUIPMENT--2.3%
48,200 Invacare Corp. 1,253
22,000 Nellcor Puritan Bennett, Inc.* 1,199
--------
2,452
MERCHANDISE--GENERAL--1.6%
27,900 Alco Standard Corp. 1,744
PROFESSIONAL SERVICES--12.4%
38,700 Computer Sciences Corp.* 3,052
44,001 First Data Corp. 3,509
90,400 Olsten Corp. 2,780
67,500 Sun Microsystems, Inc.* 4,227
--------
13,568
RECREATION AND LEISURE SERVICES--10.2%
110,500 Carnival Corp., Class A 3,287
85,500 Circus Circus Enterprises, Inc.* 3,559
71,600 Disney (Walt) Co. 4,350
--------
11,196
RETAIL--1.0%
23,100 PETsMART, Inc.* 1,028
TEXTILES--2.4%
20,600 Cintas Corp. 1,102
28,300 Tommy Hilfiger Corp.* 1,557
--------
2,659
WHOLESALE--1.8%
20,000 Nike, Inc., Class B 2,008
- -------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $89,202) $106,632
- -------------------------------------------------------------
EURODOLLAR TIME DEPOSIT--1.3%
Banque Brussels Lambert, Grand Cayman
$ 1,402 5.438%Due 06/03/96 $ 1,402
- -------------------------------------------------------------
TOTAL EURODOLLAR TIME DEPOSIT
(Cost $1,402) $ 1,402
- -------------------------------------------------------------
TOTAL INVESTMENTS--98.8%
(Cost $90,604) $108,034
- -------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares and contracts)
(Unaudited)
<TABLE>
<CAPTION>
Number of
Contracts Description Value
- ---------------------------------------------
<C> <S> <C>
FOCUSED GROWTH-CONTINUED
CALL OPTIONS WRITTEN--(0.3)%
Input/Output, Inc.
250 June 1996 @ $40 $ (34)
Nike, Inc.
109 June 1996 @ $100 (34)
Nike, Inc.
50 June 1996 @ $90 (51)
Starbucks Corp.
300 June 1996 @ $27.50 (26)
Starbucks Corp.
300 June 1996 @ $30 (4)
Tommy Hilfiger Corp.
283 June 1996 @ $50 (142)
- ---------------------------------------------
TOTAL CALL OPTIONS WRITTEN
(Premium received $178) $ (291)
- ---------------------------------------------
TOTAL INVESTMENTS NET OF OUT-
STANDING CALL OPTIONS WRITTEN--
98.5% $107,743
- ---------------------------------------------
Other assets, less liabilities--
1.5% 1,653
- ---------------------------------------------
NET ASSETS--100.0% $109,396
- ---------------------------------------------
- ---------------------------------------------
</TABLE>
*Non-income producing security.
See accompanying notes to financial statements.
16
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO
<C> <S> <C>
COMMON STOCKS--87.2%
AUSTRALIA--0.9%
225,000 News Corp., Ltd. $ 1,263
BRAZIL--0.3%
7,000 Telebras S.A. ADR--Telecomunicacoes Brasil 451
CZECH REPUBLIC--0.7%
110,000 Czechoslovakia & Slovak Investment Corp.* 970
12,000 Czechoslovakia & Slovak Investment Corp. Warrants * 15
--------
985
FRANCE--8.1%
7,500 Alcatel Alsthom 682
8,000 Bouygues 869
8,000 Christian Dior S.A. 1,128
15,000 Cie Generale des Eaux 1,603
30,000 Credit Commercial de France 1,443
15,000 Elf Aquitaine S.A. 1,084
15,000 Havas S.A. 1,281
5,000 Lefarge-Coppee 329
15,000 Television Francaise 1,747
15,000 Total S.A., Class B 1,083
--------
11,249
GERMANY--3.6%
3,000 Karstadt A.G. 1,180
4,000 Kaufhof Holding A.G. 1,408
4,000 M.A.N. A.G. 1,032
25,000 Siemens A.G. 1,401
--------
5,021
HONG KONG--3.5%
190,000 Cheung Kong Holdings, Ltd. 1,406
175,000 China Light & Power Co., Ltd. 832
225,000 Citic Pacific, Ltd. 925
60,000 HSBC Holdings PLC 907
200,000 Wharf Holdings, Ltd. 772
--------
4,842
ITALY--3.1%
40,000 Assicurazioni Generali 948
500,000 Credito Italiano 620
250,000 Fiat S.p.A. 880
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------
<C> <S> <C>
15,000 Mediolanum S.p.A. $ 146
250,000 Italgas S.p.A. 900
200,000 Stet Societa Finanziaria Telefonica S.p.A. 715
--------
4,209
JAPAN--34.8%
110,000 Asahi Bank 1,323
4,000 Bellsystem, Inc. 625
75,000 Canon, Inc. 1,471
35,000 Canon Sales Co., Inc. 952
12,000 Circle K Japan Co. 537
40,000 CMK Corp. 625
40,000 CSK Corp. 1,173
25,000 Dai-Ichi Corp. 650
12,000 Forval Corp. 655
10,000 H.I.S. Co. 562
30,000 Hitachi Software Engineering Co. 688
200,000 Hitachi Zosen Corp. 1,108
55,000 Honda Motor Co. 1,323
6,000 I-O Data Device, Inc. 244
200,000 Isuzu Motors, Ltd. 1,088
150,000 Itochu Corp. 1,077
10,000 Japan Associated Finance Co. 1,156
55,000 Japan Radio Co. 773
500 JGC Corp. 6
125,000 Komatsu, Ltd. 1,191
8,000 Mars Engineering Corp. 619
225,000 Marubeni Corp. 1,226
17,000 Matsumotokiyoshi 535
90,000 Matsushita Electric Industries 1,549
70,000 Mitsubishi Estate Co., Ltd. 978
125,000 Mitsubishi Heavy Industries, Ltd. 1,074
180,000 Mitsui Marine & Fire Insurance 1,390
75,000 Mitsukoshi, Ltd. 826
20,000 Nichiei Co., Ltd. 1,365
11,000 Nichii Gakkan Co. 582
125,000 Nikko Securities Co., Ltd. 1,376
15,000 Nintendo Corp., Ltd 1,105
350,000 Nippon Steel Co.* 1,188
200 Nippon Telegraph & Telephone Corp. 1,454
100,000 Nomura Securities Co., Ltd. 1,887
160,000 NSK, Ltd. 1,211
20,000 Rohm Co., Ltd. 1,251
30,000 Sagami Chain Co., Ltd. 555
55,000 Sankyo Co., Ltd. 1,303
20,000 Sanyo Shinpan Finance Co., Ltd. 1,367
60,000 Shin-Estu Chemical Co. 1,199
100,000 Showa Shell Sekiyu K.K. 1,055
25,000 Sony Corp. 1,589
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
INTERNATIONAL GROWTH--CONTINUED
<C> <S> <C>
JAPAN--CONTINUED
100,000 Sumitomo Electric Industries $ 1,360
45,000 Tokyo Style Co. 795
65,000 Toyota Motor Corp. 1,485
12,500 World Co. 532
--------
48,083
MALAYSIA--2.3%
160,000 Genting Berhad 1,362
35,000 Malayan Banking Berhad 332
200,000 Sime Darby Berhad 536
225,000 Tenaga Nasional Berhad 955
--------
3,185
MEXICO--0.7%
200,000 CIFRA S.A. ADR * 294
20,000 Telefonos De Mexico S.A. ADR 660
--------
954
NETHERLANDS--3.0%
12,000 Akzo Nobel 1,449
15,000 Internationale Nederlanden Group N.V. 21
45,000 Koninklijke Ahold N.V. 1,359
40,000 Vendex International N.V. 1,278
--------
4,107
PHILIPPINES--0.8%
350,000 Ayala Land, Inc., Class B 601
8,000 Philippine Long Distance Telephone Co. 461
--------
1,062
SINGAPORE--1.2%
200,000 Keppel Corp., Ltd. 1,674
SOUTH KOREA--0.8%
703 Daewoo Corp. 8
50,000 Hanil Bank 603
12,640 Korea Electric Power Corp. 553
81 Samsung Electronics Co., Ltd. 7
--------
1,171
SPAIN--1.6%
15,000 Banco Santander S.A. 683
45,000 Repsol S.A. ADR 1,530
--------
2,213
SWEDEN--0.8%
25,000 Astra AB 1,142
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
SWITZERLAND--4.5%
1,500 Ciba-Geigy A.G. $ 1,650
1,300 Nestle S.A. 1,464
125 Roche Holding A.G.-Genussshein 958
14,000 SMH A.G.-Neuenburg 2,169
--------
6,241
TAIWAN--1.0%
75,000 Cathay Life Insurance 466
400,000 Far Eastern Department Stores, Ltd. 468
225,000 Teco Electric & Machinery 459
110 Yung Shin Pharmaceutical Industries 1
--------
1,394
THAILAND--1.4%
175,000 General Finance & Securities Co. PLC 671
150,000 Krung Thai Bank Co., Ltd. 764
40,000 Siam City Cement Co. PLC 528
--------
1,963
UNITED KINGDOM--14.1%
115,000 Barclays PLC 1,338
175,000 Boots Co. PLC 1,650
275,000 British Airport Authorities PLC 2,090
275,000 British Telecom PLC 1,515
70,000 Glaxo Wellcome PLC ADR 1,829
200,000 Guinness PLC 1,442
200,000 Kingfisher PLC 1,887
210,000 Marks & Spencer PLC 1,505
200,000 PowerGen PLC 1,591
200,000 Rank Organisation PLC 1,585
200,000 Sainsbury (J.) PLC 1,229
450,000 Tomkins PLC 1,781
--------
19,442
- -----------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $116,294) $120,651
- -----------------------------------------------------------
PREFERRED STOCKS--2.2%
GERMANY--2.2%
4,000 Henkel KGaA-Vorzug $ 1,680
10,000 Sap A.G.-Vorzug 1,398
- -----------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost $2,709) $ 3,078
- -----------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- ------------------------------------------------------------
<C> <S> <C>
OTHER--4.6%
JAPAN--4.6%
2,200,000 Nikkei 300 Stock Index Fund* $ 6,309
- ------------------------------------------------------------
TOTAL OTHER
(Cost $6,274) $ 6,309
- ------------------------------------------------------------
EURODOLLAR TIME DEPOSIT--5.0%
Banque Brussels Lambert, Grand Cayman
$ 6,955 5.438% Due 06/03/96 $ 6,955
- ------------------------------------------------------------
TOTAL EURODOLLAR TIME DEPOSIT
(Cost $6,955) $ 6,955
- ------------------------------------------------------------
TOTAL INVESTMENTS--99.0%
(Cost $132,232) $136,993
- ------------------------------------------------------------
Other assets, less liabilities--1.0% 1,357
- ------------------------------------------------------------
NET ASSETS--100.0% $138,350
- ------------------------------------------------------------
- ------------------------------------------------------------
</TABLE>
*Non-income producing security.
At May 31, 1996, the Portfolio's investments, excluding time deposits, were
diversified as follows:
<TABLE>
<CAPTION>
Industry/Sector
- --------------------------
<S> <C>
Basic Industry 20.2%
Capital Goods 8.3
Consumer Goods 18.7
Energy 4.6
Financial Services 13.5
Services 10.2
Technology 5.3
Other 19.2
- --------------------------
TOTAL 100.0%
- --------------------------
</TABLE>
See accompanying notes to financial statements.
19
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO
<C> <S> <C>
COMMON STOCKS--98.7%
AGRICULTURE--0.4%
1,100 Alamo Group, Inc. $ 20
3,000 Barefoot, Inc. 33
3,300 DeKalb Genetics Corp. 93
3,999 Delta & Pine Land Co. 172
5,500 Dimon, Inc. 99
1,600 Tejon Ranch Co. 28
--------
445
APPAREL--0.5%
3,000 Converse, Inc.* 14
1,800 Donnkenny, Inc.* 34
600 Fossil, Inc.* 10
4,500 Hartmarx Corp.* 28
3,750 Kellwood Co. 65
1,200 Kenneth Cole Productions, Inc.* 22
7,200 Nautica Enterprises, Inc.* 180
1,000 Norton McNaughton, Inc.* 10
2,000 Oshkosh B' Gosh, Inc. 36
1,300 Oxford Industries, Inc. 24
2,600 St. John Knits, Inc. 110
1,600 Starter Corp.* 14
700 Syms Corp.* 6
1,450 Unitog Co. 40
--------
593
BANKING--7.9%
2,880 Albank Financial Corp. 79
1,600 Amcore Financial, Inc. 32
1,900 American Federal Bank 30
1,000 Anchor Bancorp, Inc. 34
3,375 Associated Banc-Corp. 130
1,125 BSB Bancorp, Inc. 29
661 BT Financial Corp. 24
2,900 BancorpSouth, Inc. 65
1,068 Bank of Granite Corp. 41
1,764 Bankers Corp. 30
1,200 Banknorth Group, Inc. 40
1,200 Bay View Capital Corp. 40
1,600 Bell Bancorp, Inc. 60
1,200 Boston Bancorp 50
1,000 Brenton Banks, Inc. 24
1,000 CBT Corp. 23
3,100 CCB Financial Corp. 161
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
<C> <S> <C>
2,822 CNB Bancshares, Inc. $ 80
900 CPB, Inc. 28
2,000 CSF Holdings, Inc.* 0
9,280 Cal Fed Bancorp* 171
2,100 California Bancshares, Inc. 71
2,300 Center Financial Corp.* 49
5,000 Centura Banks, Inc. 187
9,100 Charter One Financial, Inc. 331
2,188 Chittenden Corp. 47
900 CitFed Bancorp, Inc. 34
2,600 Citizens Bancorp 78
750 Citizens Bancshares, Inc. 24
1,900 Citizens Banking Corp. 56
7,700 City National Corp. 118
3,900 Coast Savings Financial, Inc.* 131
1,400 Cole Taylor Financial Group, Inc. 37
4,200 Collective Bancorp, Inc. 103
1,900 Colonial BancGroup, Inc. 66
1,968 Commerce Bancorp, Inc. 48
3,000 Commercial Federal Corp. 116
700 Commonwealth Savings Bank 15
2,100 Community First Bankshares, Inc. 49
1,400 Corus Bankshares, Inc. 42
2,290 Cullen/Frost Bankers, Inc. 118
1,785 Downey Financial Corp. 39
745 F & M Bancorp, Inc., Maryland 18
880 F & M Bancorp., Inc., Wisconsin 26
2,955 F & M National Corp. 52
1,485 FNB Corp. 34
600 Farmers Capital Bank Corp. 23
2,007 Fidelity National Corp. 28
1,371 Financial Trust Corp.* 40
1,900 First Citizens Bancshares, Inc. 121
2,100 First Commercial Bancshares, Inc. 49
5,274 First Commercial Corp. 161
4,000 First Commonwealth Financial Corp. 76
1,700 First Federal Financial Corp.* 28
2,157 First Financial Bancorp 71
900 First Financial Bancshares, Inc. 37
955 First Financial Corp. 29
900 First Financial Holdings, Inc. 18
1,039 First Indiana Corp. 25
900 First Merchants Corp. 24
3,942 First Michigan Bank Corp. 119
1,900 First Midwest Bancorp, Inc. 55
</TABLE>
See accompanying notes to financial statements.
20
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
<C> <S> <C>
700 First United Bancshares, Inc. $ 29
1,488 First Western Bancorp, Inc. 39
1,900 Firstbank of Illinois Co. 58
2,725 FirstBank Puerto Rico 56
4,000 Firstmerit Corp. 121
2,050 Fort Wayne National Corp. 65
4,560 Fulton Financial Corp. 92
8,576 Glendale Federal Bank FSB* 153
2,800 Great Financial Corp. 75
2,300 Greater New York Savings Bank* 26
1,100 Hancock Holding Co. 41
1,060 Harleysville National Corp. 28
500 Harris Savings Bank 8
900 Heritage Financial Services, Inc. 18
4,297 Home Financial Corp. 60
1,000 Homeland Bankshares Corp. 32
2,665 Hubco, Inc. 56
2,310 IBS Financial Corp. 32
1,300 ISB Financial Corp., Los Angeles* 21
1,804 Imperial Bancorp* 44
1,782 Imperial Credit Industries, Inc.* 52
69 Investors Financial Services Corp., Class A* 2
600 Irwin Financial Corp. 25
2,700 Jefferson Bancshares, Inc. 59
4,966 Keystone Financial, Inc. 166
2,100 Leader Financial Corp. 96
1,000 Liberty Bancorp, Inc., Oklahoma 36
2,000 Life Bancorp, Inc. 29
5,500 Long Island Bancorp, Inc. 156
1,300 MLF Bancorp, Inc. 31
1,300 Magna Bancorp, Inc. 45
5,800 Magna Group, Inc. 139
2,650 Mark Twain Bancshares, Inc. 97
600 Maryland Federal Bancorp, Inc. 18
600 Merchants New York Bancorp. 17
900 Michigan Financial Corp. 25
3,927 Mid-Am, Inc. 73
1,166 Mid-America Bancorp 21
1,100 N.S. Bancorp, Inc.* 45
1,503 NBT Bancorp, Inc. 25
700 National Bancorp of Alaska, Inc. 43
1,260 National City Bancshares, Inc. 36
3,750 National Commerce Bancorp 116
1,173 National Penn Bancshares, Inc. 31
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
2,151 New York Bancorp, Inc. $ 55
5,200 North Fork Bancorp., Inc. 127
829 North Side Savings Bank 30
900 Northeast Bancorp, Inc.* 0
2,895 ONBANCorp, Inc. 91
1,100 Omega Financial Corp. 35
3,080 One Valley Bancorp of West Virginia, Inc. 100
800 Park National Corp. 37
1,500 Peoples Bank of Bridgeport, Connecticut 31
5,200 Peoples Heritage Financial Group, Inc. 103
1,400 Pikeville National Corp. 30
600 Pinnacle Banc Group, Inc. 19
2,700 Provident Bancorp, Inc. 93
1,128 Provident Bankshares Corp. 37
1,000 Queen City Bancorp. 48
2,200 RCSB Financial, Inc. 52
1,800 Reliance Bancorp, Inc. 28
3,038 Republic Bancorp, Inc. 34
1,480 Resource Bancshares Mortgage Group, Inc.* 20
3,700 Riggs National Corp.* 44
7,314 Roosevelt Financial Group, Inc. 131
2,000 S & T Bancorp, Inc. 59
2,000 Security Capital Corp. 123
1,600 Silicon Valley Bancshares* 39
9,140 Sovereign Bancorp, Inc. 96
1,100 St. Francis Capital Corp.* 28
3,871 St. Paul Bancorp, Inc. 90
3,300 Standard Financial, Inc.* 50
700 Student Loan Corp. 25
600 Suffolk Bancorp 19
400 Sumitomo Bank of California 10
1,875 Susquehanna Bancshares, Inc. 55
1,600 T.R. Financial Corp.* 43
704 Tompkins County Trust Co. 20
2,800 Trust Co. of Jersey City 38
3,868 Trustco Bank Corp. 86
5,500 Trustmark Corp. 125
2,398 UMB Financial Corp. 89
1,000 USBancorp, Inc. 32
2,600 UST Corp. 34
2,100 United Bankshares, Inc. 56
5,100 United Carolina Bancshares Corp. 115
4,334 Valley National Bancorp. 126
</TABLE>
See accompanying notes to financial statements.
21
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
BANKING--CONTINUED
800 Vermont Financial Services Corp. $ 26
850 Webster Financial Corp. 24
1,300 Wesbanco, Inc. 35
1,300 Westamerica Bancorp. 63
1,719 Westcorp, Inc. 31
3,075 Whitney Holding Corp. 95
3,000 Zions Bancorp. 222
--------
9,400
BITUMINOUS COAL AND LIGNITE SURFACE MINING--0.1%
1,500 Addington Resources, Inc.* 31
1,200 Ashland Coal, Inc. 28
1,300 Nacco Industries, Inc. 73
--------
132
BROKERAGE AND FINANCIAL SERVICES--1.6%
2,600 Alex Brown, Inc. 150
2,400 Allied Capital Commercial Corp. 48
400 American Financial Enterprises, Inc. 9
3,700 Amresco, Inc. 68
1,225 BHC Financial, Inc. 17
642 BOK Financial Corp.* 14
2,200 CMAC Investment Corp. 120
4,200 Crawford & Co., Class B 69
6,300 Crimmi Mae, Inc. 69
200 General Acceptance Corp.* 1
5,400 Insignia Financial Group, Inc., Class A* 140
2,100 Inter-Regional Financial Group, Inc. 52
600 Investment Technology Group, Inc.* 10
2,000 Jefferies Group, Inc. 65
2,900 Legg Mason, Inc. 96
1,640 McDonald & Co. Investments, Inc. 32
3,200 Mego Financial Corp.* 28
2,725 Morgan Keegan, Inc. 36
5,400 Olympic Financial, Ltd.* 128
5,100 Penncorp Financial Group, Inc. 156
3,050 Phoenix Duff & Phelps Corp. 22
4,000 Pioneer Group, Inc. 111
3,100 Piper Jaffray Cos., Inc. 41
2,957 Quick & Reilly Group, Inc. 100
2,300 Raymond James Financial, Inc. 52
2,400 SEI Corp. 52
1,600 U.S. Trust Corp. 86
300 Value Line, Inc. 11
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
<C> <S> <C>
1,202 Waterhouse Investor Services, Inc. $ 44
500 Winthrop Resource Corp.* 11
--------
1,838
CHEMICALS AND ALLIED PRODUCTS--3.7%
900 Advanced Magnetics, Inc.* 17
5,100 Alliance Pharmaceutical Corp.* 110
2,400 Alpharma, Inc., Class A* 59
3,400 Amylin Pharmaceuticals, Inc.* 42
900 Aphton Corp.* 22
962 Biocraft Laboratories, Inc. 20
1,100 Bush Boake Allen, Inc.* 27
5,100 Calgon Carbon Corp. 66
4,000 Carter-Wallace, Inc. 56
2,500 Cellpro, Inc.* 46
4,800 Cephalon, Inc.* 130
1,500 Chemed Corp. 56
1,700 Collagen Corp. 37
1,374 Copley Pharmaceutical, Inc.* 22
2,400 Cygnus, Inc.* 45
3,500 Cytec Industries, Inc.* 313
4,600 Dexter Corp. 132
2,300 Diagnostic Products Corp. 87
2,900 Dura Pharmaceuticals, Inc.* 179
1,700 Duramed Pharmaceuticals, Inc.* 30
2,200 Epitope, Inc.* 45
1,000 Faulding, Inc.* 6
3,900 First Mississippi Corp. 97
2,900 Fuller (H.B.) Co. 98
5,000 Geon Co. 136
2,200 Herbalife International, Inc. 35
4,401 ICN Pharmaceuticals, Inc. 117
4,400 ICOS Corp.* 39
1,300 IGI, Inc.* 11
3,500 Immulogic Pharmaceutical Corp.* 32
6,500 Interneuron Pharmaceuticals, Inc.* 252
5,200 Isis Pharmaceuticals, Inc.* 94
1,200 Kronos, Inc.* 39
6,000 Lawter International, Inc. 69
1,200 Learonal, Inc. 34
1,050 Lesco, Inc. 17
1,281 Life Technologies, Inc. 40
3,375 Lilly Industrial, Inc. 53
400 MacDermid, Inc. 28
2,900 Matrix Pharmaceutical, Inc.* 64
</TABLE>
See accompanying notes to financial statements.
22
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
1,700 McWhorter Technologies, Inc.* $ 31
2,000 Medco Research, Inc.* 20
1,700 Medimmune, Inc.* 32
4,700 Mineral Technologies, Inc. 171
3,700 Mississippi Chemical Corp. 82
2,800 NBTY, Inc.* 26
700 NCH Corp. 40
2,600 Noven Pharmaceuticals, Inc.* 45
2,600 OM Group, Inc. 105
900 PDT, Inc.* 43
999 Penwest, Ltd. 19
900 Petrolite Corp. 30
1,900 Pharmaceutical Marketing Services, Inc.* 20
3,000 Pharmaceutical Resources, Inc.* 22
3,600 Regeneron Pharmaceuticals, Inc.* 63
3,300 Rexene Corp.* 39
2,000 Roberts Pharmaceutical Corp.* 42
3,300 Scotts Co.* 61
4,000 Sepracor, Inc.* 59
4,100 Sequus Pharmaceuticals, Inc.* 88
3,800 Somatogen, Inc.* 64
1,200 Stepan Co. 24
8,100 Sterling Chemicals, Inc.* 93
1,300 Synalloy Corp. 25
600 Systemix, Inc.* 11
1,700 Techne Corp.* 49
1,788 Tetra Tech, Inc.* 45
2,300 Tetra Technologies, Inc.* 48
4,200 Uniroyal Chemical Corp.* 67
3,100 Vertex Pharmaceuticals, Inc.* 115
1,165 WD-40 Co. 55
--------
4,436
COMMUNICATIONS--3.8%
1,700 Ackerley Communications, Inc. 40
300 Adelphia Communications Corp.* 2
2,700 American Mobile Satellite Corp.* 50
600 American Paging, Inc.* 5
1,400 American Telecasting, Inc.* 20
2,700 ANTEC Corp.* 46
2,100 Applied Digital Access, Inc.* 32
1,600 Applied Innovation, Inc.* 20
4,300 Aspect Telecommunications Corp.* 244
1,400 BET Holdings, Inc.* 37
2,800 Black Box Corp.* 58
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
<C> <S> <C>
2,621 Block Drug Co., Inc. $ 113
1,800 Brite Voice Systems, Inc.* 46
2,800 Broadband Technologies, Inc.* 86
4,200 C-TEC Corp.* 119
4,070 CAI Wireless Systems, Inc.* 44
500 CFW Communications Co. 10
2,200 CIDCO, Inc.* 87
3,650 Cable Design Technologies Corp.* 166
900 Cellstar Corp.* 9
2,200 Cellular Communications International, Inc.* 75
2,040 Cellular Technical Services, Inc.* 71
7,600 Century Communications Corp., Class A* 71
2,700 Citicasters, Inc. 84
2,800 Commnet Cellular, Inc.* 96
2,400 DSP Communications, Inc.* 91
800 Digital Link Corp.* 14
1,400 EIS International, Inc.* 41
1,100 EZ Communications, Inc., Class A* 21
1,200 Emmis Broadcasting Corp., Class A* 53
2,700 Evergreen Media Corp., Class A* 108
7,400 Executone Information Systems, Inc.* 27
500 Firefox Communications, Inc.* 4
600 Heartland Wireless Communications, Inc.* 16
1,500 Heftel Broadcasting Corp., Class A* 34
3,400 Heritage Media Corp.* 135
900 Hickory Tech Corp. 25
600 IPC Information Systems, Inc.* 13
1,000 Incomnet, Inc.* 5
800 Intercel, Inc.* 19
6,233 International Cabletel, Inc.* 196
1,100 Jacor Communications, Inc.* 32
3,378 Jones Intercable, Inc., Class A* 50
2,600 Level One Communications, Inc.* 68
5,700 Lincoln Telecommunications Co. 94
1,200 Mastec, Inc.* 37
1,600 Metrocall, Inc.* 31
2,957 Metromedia International Group, Inc.* 41
800 Microdyne Corp.* 6
350 Millicom American Satellite Corp.* 0
1,400 Millicom, Inc.* 0
1,600 NumereX Corp.* 10
1,100 Ortel Corp.* 27
1,800 P-COM, Inc.* 54
</TABLE>
See accompanying notes to financial statements.
23
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
COMMUNICATIONS--CONTINUED
900 Palmer Wireless, Inc.* $ 19
2,200 Parigain Technologies, Inc.* 224
4,600 Paxson Communications Corp.* 59
1,200 People's Choice TV Corp.* 20
1,500 Plantronics, Inc.* 53
1,800 Premisys Communications, Inc.* 103
3,800 President Casinos, Inc.* 8
1,000 ProNet, Inc.* 25
2,500 Racotek, Inc.* 15
6,150 Renaissance Communications Corp.* 185
700 SFX Broadcasting, Inc., Class A* 26
1,600 Silver King Communications, Inc.* 52
2,400 Starsight Telecast, Inc.* 24
900 T-Netix, Inc.* 13
3,200 TCA Cable TV, Inc. 90
2,800 Telular Corp.* 16
1,050 Transaction Network Services, Inc.* 26
1,500 Transmedia Network, Inc. 13
3,300 True North Communications, Inc. 85
3,000 U.S. Long Distance Corp.* 108
8,100 United International Holdings, Inc., Class A* 115
800 United Television, Inc. 70
1,800 United Video Satellite Group, Inc.* 36
4,800 Valuevision International, Inc.* 34
1,000 WavePhore, Inc.* 10
3,100 Wescott Communications, Inc.* 66
4,500 Westwood One, Inc.* 79
1,600 Young Broadcasting Corp.* 60
--------
4,517
COMPUTERS AND OFFICE MACHINES--6.2%
2,700 Actel Corp.* 53
500 Active Voice Corp.* 7
800 Amtrol, Inc. 18
2,300 Apertus Technologies, Inc.* 9
1,800 Applix, Inc.* 59
5,700 AST Research, Inc.* 46
2,700 Atari Corp.* 22
2,000 Atria Software, Inc.* 126
4,900 Auspex Systems, Inc.* 113
4,200 Autotote Corp.* 13
4,000 Avid Technology, Inc.* 90
4,166 BancTec, Inc.* 84
900 Boca Research, Inc.* 21
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
6,200 Borland International, Inc.* $ 83
6,700 C-Cube Microsystems, Inc.* 335
2,400 Caere Corp.* 32
864 Cambrex Corp. 41
1,900 Cambridge Technology Partners, Inc.* 145
468 Champion Industries, Inc. 8
4,300 Chips & Technologies, Inc.* 48
2,300 Chronimed, Inc.* 47
4,000 Computer Network Technology Corp.* 33
4,400 Comverse Technology, Inc.* 129
4,912 Concord EFS, Inc.* 169
3,500 Copytele, Inc.* 65
1,290 DH Technology, Inc.* 34
1,400 DSP Group, Inc.* 16
7,900 Data General Corp.* 101
1,400 Davidson & Associates, Inc.* 44
600 Day Runner, Inc.* 17
1,300 Dialogic Corp.* 70
2,100 Digi International, Inc.* 59
3,800 Dynatech Corp.* 133
1,400 EPIC Design Technology, Inc.* 41
1,000 Emulex Corp.* 19
1,000 Encad, Inc.* 44
1,500 Evans & Sutherland Computer Corp.* 35
3,900 Exabyte Corp.* 78
1,100 Excalibur Technologies Corp.* 21
800 Expert Software, Inc.* 11
3,600 FTP Software, Inc.* 42
3,100 Filenet Corp.* 144
868 Franklin Electric Co., Inc. 31
1,100 General Binding Corp. 24
2,100 Global Village Communication* 21
2,800 Hyperion Software Corp.* 39
5,700 Information Resources, Inc.* 71
2,600 Integrated Systems, Inc.* 88
6,400 Intelligent Electronics, Inc. 63
8,200 Intergraph Corp.* 108
9,400 International Rectifier Corp.* 244
1,400 Interpool, Inc.* 27
24,200 Iomega Corp.* 1,068
2,100 Itron, Inc.* 71
1,200 Key Tronic Corp.* 9
2,184 Logicon, Inc. 63
6,300 Macromedia, Inc.* 269
600 MapInfo Corp.* 10
2,700 Mercury Interactive Corp.* 39
3,100 Microcom, Inc.* 60
</TABLE>
See accompanying notes to financial statements.
24
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------
<C> <S> <C>
1,300 Micron Electronics, Inc.* $ 21
500 Micros Systems, Inc.* 15
700 Microtest, Inc.* 8
1,500 MicroTouch Systems, Inc.* 31
5,200 Miller (Herman), Inc. 161
3,300 Mylex Corp.* 85
2,400 National Computer Systems, Inc. 58
5,500 Netmanage, Inc.* 93
7,600 Network General Corp. * 180
1,300 Norand Corp.* 27
3,800 Nu-Kote Holding, Inc.* 69
1,500 Optical Data Systems, Inc.* 34
3,500 PHH Corp. 194
2,100 Phoenix Technologies, Ltd.* 42
1,200 Planar Systems, Inc.* 18
8,898 Platinum Technology, Inc.* 162
600 Printronix, Inc.* 15
1,100 Proxima Corp.* 18
2,500 Radius, Inc.* 9
9,700 S3, Inc.* 137
2,800 Santa Cruz Operation, Inc.* 21
6,900 Sequent Computer Systems, Inc.* 91
2,300 Standard Microsystems Corp.* 36
5,300 Stratus Computer, Inc.* 156
1,600 SubMicron Systems, Inc.* 17
1,200 Sylvan Learning Systems, Inc.* 47
1,200 Synetic, Inc.* 41
1,100 3D Systems Corp.* 25
7,000 Tech Data Corp.* 163
3,000 Triad Systems Corp.* 20
2,500 Trident Microsystems, Inc.* 37
2,400 Tseng Laboratories, Inc.* 28
1,400 Wall Data, Inc.* 32
7,100 Wang Labs, Inc.* 154
1,400 Wonderware Corp.* 28
700 XcelleNet, Inc.* 10
500 Xpedite Systems, Inc.* 14
3,400 Zebra Technologies Corp.* 86
--------
7,393
CREDIT INSTITUTIONS--0.5%
4,300 Ampal-American Israel Corp.* 24
1,900 Astoria Financial Corp. 105
6,200 First Financial Corp., Indiana 143
1,600 JSB Financial, Inc. 53
6,512 Money (The) Store, Inc. 171
2,200 National Auto Credit, Inc.* 27
2,700 North American Mortgage Co. 47
750 Regional Acceptance Corp.* 8
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
2,400 Ryland Group, Inc. $ 39
3,300 World Acceptance Corp.* 30
--------
647
ELECTRICAL SERVICES--2.1%
2,600 Black Hills Corp. 63
3,300 Central Hudson Gas & Electric Corp. 99
4,300 Central Louisiana Electric Co., Inc. 114
6,700 Central Maine Power Co. 90
2,100 Central Vermont Public Service Corp. 29
2,800 CILCORP, Inc. 119
15,786 Citizens Utilities Co., Series B* 185
1,900 Commonwealth Energy Systems Cos. 92
4,200 Eastern Utilities Association 80
3,700 Electroglas, Inc.* 72
2,600 Empire District Electric Co. 47
872 Green Mountain Power Corp. 23
6,100 IES Industries, Inc. 173
1,700 Interstate Power Co. 54
2,850 Madison Gas & Electric Co. 69
1,389 Northwestern Public Service Co. 39
2,800 Orange & Rockland Utilities, Inc. 98
2,000 Otter Tail Power Co. 66
8,700 Public Service Co. of New Mexico* 163
6,300 Sierra Pacific Resources 150
3,000 SIGCORP, Inc. 100
700 St. Joseph Light & Power Co. 23
1,900 TNP Enterprises, Inc. 51
6,480 Tucson Electric Power Co.* 96
2,700 United Illuminating Co. 100
4,900 WPS Resources Corp. 152
1,850 Yankee Energy System, Inc. 41
2,200 Zurn Industries, Inc. 45
--------
2,433
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--
5.3%
1,100 ADFlex Solutions, Inc.* 17
900 Acme Electric Corp.* 11
1,100 Alpha Industries, Inc.* 11
2,500 Altron, Inc.* 59
1,350 American Superconductor Corp.* 19
6,800 Ametek, Inc. 146
5,000 Applied Magnetics Corp.* 86
2,900 Associated Group, Inc.* 81
800 Asyst Technologies, Inc.* 19
3,000 Augat, Inc. 65
5,200 BMC Industries, Inc. 155
4,120 Baldor Electric Co. 91
4,500 Belden, Inc. 144
3,400 Boston Technology, Inc.* 62
</TABLE>
See accompanying notes to financial statements.
25
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--CONTINUED
2,600 Brooktree Corp.* $ 31
3,100 Burr-Brown Corp.* 65
1,700 C-COR Electronics, Inc.* 40
563 CTS Corp. 25
3,200 California Microwave, Inc.* 61
700 Charter Power Systems, Inc. 24
5,900 Checkpoint Systems, Inc. 229
800 Cherry Corp., Class B* 10
900 Cincinnati Microwave, Inc.* 4
600 Coherent Communications Systems Corp.* 16
800 Cohu, Inc. 19
3,200 Colonial Data Technologies Corp.* 62
1,200 Communications Systems, Inc. 19
2,600 Compression Labs, Inc.* 20
5,100 Computer Products, Inc.* 105
4,000 Credence Systems Corp.* 81
1,600 Cree Research, Inc.* 27
3,700 Cyrix Corp.* 114
1,400 DII Group* 47
4,600 Dallas Semiconductor Corp. 97
2,400 Digital Microwave Corp.* 38
1,500 Electro Scientific Industries, Inc.* 40
500 Eltron International, Inc.* 14
1,400 Energy Conversion Devices, Inc.* 34
1,800 Esterline Technologies Corp.* 41
1,600 Exar Corp.* 26
1,100 Exide Electronics Group, Inc.* 17
3,600 FORE Systems, Inc.* 292
900 GTI Corp.* 8
3,600 General DataComm Industries, Inc.* 57
2,600 Genus, Inc.* 28
5,600 Griffon Corp.* 51
1,400 HADCO Corp.* 33
2,710 Harman International Industries, Inc. 142
1,200 Harmon Industries, Inc. 20
2,100 Holophane Corp.* 37
900 Hutchinson Technologies, Inc.* 51
1,500 ITI Technologies, Inc.* 51
1,600 Integrated Circuit Systems, Inc.* 19
2,100 Integrated Silicon Solution, Inc.* 31
1,100 Inter-Tel, Inc.* 31
9,200 Interdigital Communications Corp.* 87
2,046 Intermagnetics General Corp.* 33
5,700 International Family Entertainment, Inc.* 103
3,300 Intervoice, Inc.* 73
3,300 Juno Lighting, Inc. 50
7,200 LTX Corp.* 77
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
<C> <S> <C>
4,550 Lattice Semiconductor Corp.* $ 158
2,600 Littelfuse, Inc.* 101
3,200 Lojack Corp.* 42
3,500 Magnetek, Inc.* 34
1,400 Mattson Technology, Inc.* 20
600 Merix Corp.* 19
6,450 Methode Electronics, Inc., Class A 114
900 Micrel, Inc.* 15
2,100 Micro Linear Corp.* 23
1,000 National Presto Industries, Inc. 40
3,500 NexGen, Inc. 87
3,640 Oak Industries, Inc.* 114
9,560 Octel Communications Corp.* 234
1,200 Opti, Inc.* 9
700 Orbit Semiconductor, Inc.* 7
1,700 PSC, Inc.* 20
500 Panda Project (The), Inc.* 7
1,598 Park Electrochemical Corp.* 39
6,800 Picturetel Corp.* 267
3,937 Pioneer Standard Electronics, Inc. 60
2,250 Pittway Corp. 109
2,500 PriCellular Corp.* 35
2,000 Quickturn Design Systems, Inc.* 29
1,598 Recoton Corp.* 28
1,600 Rival Co. 38
2,700 Robotic Vision Systems, Inc.* 51
400 SDL, Inc.* 17
3,500 Sammina Corp.* 129
1,050 Semitool, Inc.* 16
4,800 Sierra Semiconductor Corp.* 71
1,800 Siliconix, Inc.* 50
1,200 Spectrian Corp.* 24
1,400 Standard Motor Products, Inc. 24
1,100 Summa Four, Inc.* 20
2,600 Symetricon, Inc. 35
2,300 3DO Co.* 27
1,100 Tekelec* 17
1,800 Thomas Industries, Inc. 37
1,200 Three-Five Systems, Inc.* 16
4,900 Top Source Technologies, Inc.* 36
1,700 Ultratech Stepper, Inc.* 43
1,800 Unitrode Corp.* 52
2,400 Vitesse Semiconductor Corp.* 67
3,000 Windmere Corp. 39
1,800 Woodhead Industries, Inc. 25
2,600 Wyle Electronics 111
5,547 Zenith Electronics Corp.* 80
4,050 Zilog, Inc.* 149
--------
6,331
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
FOOD AND BEVERAGES--1.4%
600 Alico, Inc. $ 13
6,500 Applebee's International, Inc. 184
1,100 Au Bon Pain Co., Inc.* 10
675 Bridgford Foods Corp. 5
5,400 Calgene, Inc.* 32
2,000 Canandaigua Wine Company, Inc.* 61
6,100 Chiquita Brands International, Inc. 82
800 Coca-Cola Bottling Co. 28
7,900 Coors (Adolph) Co., Class B 148
2,000 Dreyer's Grand Ice Cream, Inc. 67
2,200 FoodBrands America, Inc.* 34
800 GoodMark Foods, Inc. 12
1,800 Hometown Buffet, Inc.* 27
4,300 Hudson Foods, Inc. 58
2,200 International Dairy Queen, Inc.* 46
4,100 Interstate Bakeries Corp. 113
1,200 J & J Snack Foods Corp.* 16
2,900 Lance, Inc. 48
1,200 Landry's Seafood Restaurants, Inc.* 29
4,800 Luby's Cafeterias, Inc. 118
2,100 Michael Foods, Inc. 22
1,500 Midwest Grain Products, Inc.* 19
800 Mondavi (Robert) Corp., Class A* 24
900 Papa Johns International, Inc.* 44
2,700 Riviana Foods, Inc. 50
600 Rock Bottom Restaurants, Inc.* 8
2,900 Ruby Tuesday, Inc.* 62
7,100 Shoney's, Inc.* 87
2,800 Smithfield Foods, Inc.* 73
550 Thorn Apple Valley, Inc. 8
5,020 Triarc Cos., Inc., Class A* 61
2,850 WLR Foods, Inc. 37
--------
1,626
FOOD AND MANUFACTURING--0.6%
1,500 Cheesecake Factory, Inc.* 40
198 Farmer Bros. Co. 28
12,000 Flowers Industries, Inc., Class A 189
700 Performance Food Group Co.* 22
6,400 Ralcorp Holding, Inc.* 159
1,300 Sanderson Farms, Inc. 18
4,000 Savannah Foods & Industries, Inc. 50
100 Seaboard Corp. 22
4,400 Smucker (J.M.) Co. 90
2,649 Tootsie Roll Industries, Inc. 93
--------
711
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
FURNITURE AND FIXTURES--0.4%
2,500 Bassett Furniture Industries, Inc. $ 63
1,000 Chromcraft Revington, Inc.* 25
2,600 Ethan Allen Interiors, Inc.* 68
1,100 Falcon Building Products, Inc.* 13
1,100 Falcon Products, Inc. 18
3,500 Kimball International, Inc. 104
2,700 La-Z-Boy Chair Co. 88
1,233 Ladd Furniture, Inc. 14
3,000 O'Sullivan Industries Holdings, Inc.* 23
2,600 Triangle Pacific Corp.* 54
--------
470
GENERAL BUILDING CONTRACTORS--0.7%
2,000 ABT Building Products Corp.* 41
3,000 AMCOL International Co. 43
1,200 Beazer Homes USA, Inc.* 21
1,200 Blount, Inc. 40
15,200 Catellus Development Corp.* 141
1,000 Continental Homes Holding Corp. 25
1,400 Corrpro Cos., Inc.* 13
3,300 Eagle Hardware & Garden, Inc.* 45
1,958 Horton (D.R.), Inc.* 21
2,800 Hovnanian Enterprises, Inc., Class A* 20
7,200 Kaufman & Broad Home Corp. 107
800 NCI Building Systems, Inc.* 27
3,600 Pulte Corp. 101
1,600 Schuler Homes, Inc.* 11
4,600 Standard Pacific Corp. 33
3,300 Toll Brothers, Inc.* 55
1,979 U.S. Home Corp.* 51
3,600 Webb (Del E.) Corp. 64
--------
859
GLASS, CLAY AND STONE PRODUCTS--0.4%
500 Ameron, Inc. 21
2,200 Centex Construction Products, Inc.* 31
750 Donnelly Corp. 12
1,300 Florida Rock Industries, Inc. 33
3,000 Gentex Corp.* 136
1,800 Giant Cement Holding, Inc.* 25
3,400 Medusa Corp. 104
1,400 Mikasa, Inc.* 16
1,200 Photronics, Inc.* 36
700 Puerto Rican Cement Co. 23
3,100 Southdown, Inc.* 72
--------
509
</TABLE>
See accompanying notes to financial statements.
27
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
HEALTH SERVICES--5.5%
1,350 ABR Information Services $ 85
2,300 Access Health Marketing, Inc.* 125
200 American HomePatient, Inc.* 9
2,700 American Medical Response, Inc.* 98
1,700 Apogee, Inc. 12
5,781 Apria Healthcare Group, Inc.* 169
1,000 Arbor Health Care Co.* 28
5,100 Athena Neurosciences, Inc.* 94
900 Barr Labs, Inc.* 26
1,000 Bio-Rad Labs, Inc.* 51
3,500 COR Therapeutics, Inc.* 35
3,000 Champion Healthcare Corp.* 34
2,400 Coastal Physician Group, Inc.* 20
2,850 Community Health Systems, Inc.* 124
9,000 Community Psychiatric Centers* 85
7,100 Coram Healthcare Corp.* 35
3,500 Cytel Corp.* 28
2,800 Daig Corp.* 69
3,275 Enzo Biochem, Inc.* 57
1,300 Fusion Systems Corp.* 39
1,100 Gelman Sciences, Inc.* 25
5,000 Genesis Health Ventures, Inc.* 158
3,485 Grancare, Inc.* 64
2,200 Gulf South Medical Supply, Inc.* 105
5,000 Haemonetics Corp.* 99
3,000 Health Management Systems, Inc.* 92
1,500 Health Management, Inc.* 8
421 Healthdyne Technologies, Inc.* 6
6,292 Horizon Healthcare Corp.* 77
2,100 Human Genome Sciences, Inc.* 77
3,600 Hydron Technologies, Inc. 10
1,400 I-STAT Corp.* 29
7,600 IDEXX Laboratories, Inc.* 331
1,050 INBRAND Corp.* 31
1,300 Incyte Pharmaceuticals, Inc.* 45
1,800 Inphynet Medical Management, Inc.* 39
4,100 Integrated Health Services, Inc. 107
2,600 Kinetic Concepts, Inc. 44
400 Labone, Inc. 7
1,500 Landauer, Inc. 31
2,458 Ligand Pharmaceuticals, Inc.* 41
5,600 Linecare Holdings* 211
3,500 Living Centers of America, Inc.* 132
5,500 Mariner Health Group, Inc.* 98
3,600 Maxicare Health Plans, Inc.* 88
2,130 MedPartners/Mullikin, Inc.* 50
1,900 MMI Cos., Inc. 56
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
1,933 Morrison Health Care, Inc. $ 28
2,400 Multicare Cos., Inc.* 48
3,000 NABI, Inc.* 41
1,200 Neurogen Corp.* 35
13,600 NovaCare, Inc.* 88
10,500 OIS Optical Imaging Systems, Inc.* $6
4,900 Omnicare, Inc. 273
10,900 OrNda HealthCorp* 274
1,600 PHP Healthcare Corp.* 53
7,325 Phycor, Inc.* 397
1,500 Physician Reliance Network, Inc.* 79
2,700 Physician Sales & Service, Inc.* 87
1,200 Physicians Health Services, Inc.* 33
2,800 Quantum Health Resources, Inc.* 49
2,100 Regency Health Services, Inc.* 21
4,600 Renal Treatment Centers, Inc.* 156
600 RES-CARE, Inc.* 21
2,700 Resound Corp.* 32
1,650 Rexall Sundown, Inc.* 44
1,400 RightCHOICE Managed Care, Inc., Class A* 24
4,000 RoTech Medical Corp.* 86
1,500 Rural/Metro Corp.* 50
1,300 Safeskin Corp.* 47
3,600 Sofamor/Danek Group, Inc.* 129
7,580 Sun Healthcare Group, Inc.* 112
2,000 Target Therapeutics, Inc.* 99
1,300 TheraTx, Inc.* 19
250 UniHolding Corp.* 4
5,700 Unilab Corp.* 11
1,000 United American Healthcare Corp.* 12
1,600 Universal Health Realty Income Trust 31
5,800 Universal Health Services, Inc.* 151
2,500 Uromed Corp.* 30
400 Vitalink Pharmacy Services, Inc.* 9
6,925 Vivra, Inc.* 236
2,500 Vivus, Inc.* 74
6,354 Watson Pharmaceuticals, Inc.* 286
1,000 Wellcare Management Group, Inc.* 13
--------
6,512
HEAVY CONSTRUCTION--0.5%
1,900 Apogee Enterprises, Inc. 51
1,950 Granite Construction, Inc. 43
3,400 Greenfield Industries, Inc. 128
3,616 Insituform Technologies, Inc.* 34
4,900 Lennar Corp. 122
2,100 Lone Star Industries, Inc.* 70
2,300 NVR, Inc.* 24
7,800 Presley Cos.* 15
2,600 Redman Industries, Inc.* 57
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
1,600 Stimsonite Corp.* $ 14
1,691 Washington Construction Group* 18
--------
576
INDUSTRIAL INSTRUMENTS--3.7%
2,900 ADAC Laboratories 47
2,200 ATS Medical, Inc.* 25
3,900 Acuson Corp.* 75
2,800 Advanced Technology Laboratories, Inc.* 99
5,500 Allen Group, Inc. 151
1,400 Analogic Corp. 36
5,700 Ballard Medical Products 113
5,500 Biocontrol Technology, Inc.* 10
2,900 CNS, Inc. 64
2,950 CONMED Corp.* 97
2,600 Circon Corp.* 34
6,500 Cognex Corp.* 115
2,300 Coherent, Inc.* 112
1,300 Crosscom Corp.* 15
584 Cubic Corp. 20
1,900 Daniel Industries, Inc. 28
2,400 Datascope Corp.* 43
2,800 Dionex Corp.* 103
4,900 Electronics for Imaging, Inc.* 392
1,500 Empi, Inc.* 26
3,100 Fisher Scientific International, Inc. 127
1,000 Fluke (John) Manufacturing Co., Inc.* 39
1,400 Fresenius USA, Inc.* 28
3,500 Genrad, Inc.* 59
5,800 Gilead Sciences, Inc.* 202
675 Hach Co. 11
3,100 IMO Industries, Inc.* 22
1,500 InControl, Inc.* 22
9,300 Input/Output, Inc.* 375
5,100 Invacare Corp. 133
3,200 Isolyser Company, Inc.* 44
900 Lunar Corp.* 36
1,600 MTS Systems Corp. 29
5,600 Mascotech, Inc. 84
1,200 Maxxim Medical, Inc.* 22
2,300 Measurex Corp. 66
4,564 Mentor Corp. 102
1,000 Mine Safety Appliances Co. 48
5,748 Nellcor Puritan Bennett, Inc.* 313
1,400 Ostex International, Inc.* 20
1,700 Research Industries Corp.* 43
3,200 Respironics, Inc.* 63
6,100 SCI Systems, Inc.* 275
2,300 Staar Surgical Co.* 34
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
1,200 Starrett (L.S.) Co. $ 31
3,000 Sunrise Medical, Inc.* 57
1,400 Tech-Sym Corp.* 48
2,650 TECNOL Medical Products, Inc.* 52
1,600 Theratech, Inc.* 37
3,400 Thermedics, Inc.* 102
4,000 Trimble Navigation, Ltd.* 97
1,700 Utah Medical Products, Inc.* 26
3,600 Ventritex, Inc.* 72
1,000 Vital Signs, Inc. 24
1,296 Watkins-Johnson Co. 40
2,400 X-Rite, Inc. 42
--------
4,430
INSURANCE SERVICES--4.3%
2,200 Acceptance Insurance Cos., Inc.* 38
2,500 Acordia, Inc. 79
3,500 Alfa Corp. 42
1,050 Allied Group, Inc. 42
1,524 American Annuity Group, Inc.* 20
4,000 American Bankers Insurance Group, Inc. 155
1,450 American Heritage Life Investment Corp. 30
2,100 American Travelers Corp.* 45
200 Americo Life, Inc.* 4
2,700 Amvestors Financial Corp. 40
3,400 Argonaut Group, Inc. 110
1,350 Avemco Corp. 21
2,300 Baldwin & Lyons, Inc. 41
2,700 Berkley (W.R.) Corp. 117
1,900 Blanch (E.W.) Holdings, Inc. 40
2,500 Capital RE Corp. 91
935 Capital Transamerica Corp. 19
800 Capitol American Financial Corp. 20
1,200 Citizens Corp. 22
1,700 Citizens, Inc.* 13
7,700 Commerce Group, Inc. 168
6,100 Coventry Corp.* 112
900 Crop Growers Corp.* 9
2,700 Danielson Holding Corp.* 20
1,000 Delphi Financial Group, Inc.* 28
600 EMC Insurance Group, Inc. 8
2,200 Enhance Financial Services Group, Inc. 64
2,100 Executive Risk, Inc. 74
4,974 Financial Security Assurance International 137
1,700 First American Financial Corp. 52
1,600 Foremost Corp. of America 92
4,012 Fremont General Corp. 96
1,440 Frontier Insurance Group, Inc. 49
1,600 Fund American Enterprises Holdings, Inc.* 130
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
INSURANCE SERVICES--CONTINUED
3,385 Gainsco, Inc. $ 36
2,700 Gallagher (Arthur J.) & Co. 87
900 Gryphon Holdings, Inc.* 16
2,200 Guaranty National Corp. 37
4,500 HCC Insurance Holdings, Inc.* 97
1,100 Harleysville Group, Inc. 29
2,700 Hilb, Rogal & Hamilton Co. 36
2,200 Home Beneficial Corp. 55
4,900 Horace Mann Educators Corp. 156
2,500 Integon Corp. 47
4,800 John Alden Financial Corp. 107
600 Kansas City Life Insurance Co. 33
1,600 Lawyers Title Corp. 27
2,900 Liberty Corp. 93
500 Liberty Financial Cos., Inc. 16
3,800 Life Partners Group, Inc. 80
1,600 Life Reinsurance Corp. 49
2,800 Life USA Holding, Inc.* 22
1,514 MAIC Holdings, Inc.* 54
700 Markel Corp.* 64
4,000 NAC RE Corp. 130
3,200 National RE Corp. 106
400 National Western Life Insurance Co.* 26
1,000 Navigators Group, Inc.* 18
1,000 Nymagic, Inc. 19
2,690 Orion Capital Corp. 127
1,900 PXRE Corp. 48
850 Poe & Brown, Inc. 20
4,200 Presidential Life Corp. 41
2,500 Protective Life Corp. 93
1,065 RLI Corp. 25
3,500 Reinsurance Group of America, Inc. 140
7,300 Reliance Group Holdings, Inc. 57
800 Seafield Capital Corp. 31
1,500 Security Connecticut Corp. 44
2,700 Selective Insurance Group, Inc. 86
2,700 Sierra Health Services, Inc.* 87
700 State Auto Financial Corp. 18
2,790 Statesman Group, Inc.* 0
1,050 Stewart Information Services Corp. 21
7,200 20th Century Industries 119
1,700 Takecare, Inc. 0
1,300 Transnational Re Corp., Class A 31
1,100 Trenwick Group, Inc. 52
4,720 United Cos. Financial Corp. 143
1,350 United Fire & Casualty Co. 50
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
1,300 United Insurance Cos., Inc.* $ 28
400 United Wisconsin Services, Inc. 8
3,500 Vesta Insurance Group, Inc. 122
1,800 Washington National Corp. 48
6,700 Western National Corp. 119
2,000 Zenith National Insurance Corp. 56
--------
5,082
JEWELRY AND PRECIOUS METALS--0.2%
914 Lifetime Hoan Corp.* 10
1,700 Oneida Ltd. 30
1,000 Syratech Corp.* 26
2,900 Tiffany & Co. 220
--------
286
LEATHER PRODUCTS--0.2%
3,000 Brown Group, Inc. 51
3,400 Justin Industries, Inc. 42
1,400 Timberland Co.* 32
3,725 Wolverine World Wide, Inc. 124
--------
249
LUMBER AND WOOD PRODUCTS--0.3%
1,500 Fibreboard Corp.* 38
4,600 Oakwood Homes Corp. 223
2,200 Ply-Gem Industries, Inc. 33
2,400 Pope & Talbot, Inc. 40
1,400 Republic Group, Inc. 20
2,600 TJ International, Inc. 49
--------
403
MACHINERY--2.7%
1,100 Acme-Cleveland Corp. 33
800 Ag-Chem Equipment Co., Inc.* 15
1,600 Allied Products Corp. 47
1,300 Astec Industries, Inc.* 13
1,300 Avondale Industries, Inc.* 25
2,300 Borg-Warner Security Corp.* 27
1,400 Brenco, Inc. 18
3,100 CMI Corp.* 18
1,800 Cascade Corp. 27
900 Central Sprinkler Corp.* 21
900 DT Industries, Inc. 17
4,600 Donaldson Co., Inc. 121
5,000 Duriron Co., Inc. 141
4,100 FSI International, Inc.* 54
3,400 Figgie International Holdings, Inc.* 50
2,600 Flow International Corp.* 23
2,800 Fruehauf Trailer Corp.* 2
1,050 Gasonics International Corp.* 14
7,200 Giddings & Lewis, Inc. 120
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
700 Gleason Corp. $ 29
4,000 Global Industrial Technologies, Inc.* 74
1,175 Gorman-Rupp Co. 16
4,400 Goulds Pumps, Inc. 104
2,197 Graco, Inc. 47
1,300 Helix Technology Corp. 47
4,400 ICC Technologies, Inc.* 37
4,050 IDEX Corp. 154
3,500 Indentix, Inc. 56
2,700 Integrated Process Equipment Corp.* 79
3,100 Ionics, Inc.* 153
2,700 JLG Industries, Inc.* 214
2,037 Jason, Inc.* 16
2,500 Kaydon Corp. 107
4,000 Kulicke & Soffa Industries, Inc.* 70
1,200 Lindsay Manufacturing Co.* 46
1,200 Lufkin Industries, Inc. 25
1,400 Manitowoc Co., Inc. 52
5,700 Marine Drilling Co., Inc.* 58
3,550 Mohawk Industries, Inc.* 59
2,000 Molten Metal Technology, Inc.* 61
1,200 Morningstar Group, Inc.* 14
1,700 Osmonics, Inc.* 40
3,600 Outboard Marine Corp. 70
799 Pilgrims Pride Corp. 6
1,035 Raymond Corp.* 18
3,000 Regal-Beloit Corp. 62
2,300 Rexel, Inc.* 34
674 Robbins & Myers, Inc. 30
3,100 Roper Industries, Inc. 146
2,000 SPX Corp. 54
7,700 Smith International, Inc.* 243
500 Special Devices, Inc.* 10
3,000 Specialty Equipment Cos., Inc.* 42
1,350 Thermo Fibertek, Inc.* 40
1,000 Thermo Power Corp.* 14
2,300 Toro Co. 73
800 Tractor Supply Co.* 20
3,000 Varco International, Inc.* 50
--------
3,256
MANUFACTURING--GENERAL--0.8%
2,100 American Safety Razor Co.* 25
3,000 Blyth Industries, Inc.* 138
2,880 Brady (W.H.) Co. 74
4,300 First Alert, Inc.* 28
10,300 Furniture Brands International, Inc.* 112
2,000 Hunt Manufacturing Co. 33
1,700 Insilico Corp.* 63
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
1,500 Matthews International Corp., Class A $ 42
1,053 Oil-Dri Corp. of America 14
2,000 Paragon Trade Brands, Inc.* 49
800 Pillowtex Corp. 11
2,200 Samsonite Corp.* 40
1,200 Seattle Filmworks, Inc.* 21
700 Simpson Manufacturing Co.* 13
450 Simula, Inc.* 9
1,000 Thermolase Corp.* 30
3,000 Toy Biz, Inc.* 66
2,800 Tracor, Inc.* 58
700 Tremont Corp.* 26
700 Trigen Energy Corp. 14
1,900 U.S. Can Corp.* 33
1,100 Ultralife Batteries, Inc.* 16
1,800 Wireless Telecom Group, Inc. 27
--------
942
MERCHANDISE--GENERAL--0.2%
2,600 Amerisource Corp.* 88
3,100 Church & Dwight Co., Inc. 62
2,200 Cross (A.T.) Co. 35
2,300 Libbey, Inc. 56
4,300 Playtex Products, Inc.* 41
--------
282
METAL MINING--0.5%
2,500 Cleveland Cliffs, Inc. 100
4,100 Coeur D'Alene Mines Corp. 91
1,000 FMC Gold Co. 6
4,417 Firstmiss Gold, Inc.* 173
2,000 HS Resources, Inc.* 24
10,500 Hecla Mining Co.* 84
2,600 Stillwater Mining Co. 76
34,000 Sunshine Mining Co.* 51
--------
605
METAL PRODUCTS--1.1%
1,400 Alltrista Corp.* 32
11,700 Amax Gold, Inc.* 79
600 American Buildings Co.* 18
3,800 Aptargroup, Inc. 161
600 Barnes Group, Inc. 29
1,050 Butler Manufacturing Co. 40
2,300 CasTech Aluminum Group, Inc.* 41
1,800 Chase Brass Industries, Inc.* 34
900 Citation Corp.* 13
2,600 Clarcor, Inc. 54
1,000 Easco, Inc. 8
1,000 Greenbriar Cos., Inc. 16
498 International Aluminum Corp. 13
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
METAL PRODUCTS--CONTINUED
2,700 Irvine Sensors Corp.* $ 19
4,300 Magma Copper Co.* 103
2,700 Material Sciences Corp.* 46
750 Miller Industries, Inc.* 24
1,800 NN Ball & Roller, Inc. 42
2,300 Nortek, Inc.* 33
100 Penn Engineering & Manufacturing Corp. 3
300 Penn Engineering & Manufacturing,
Non-voting* 8
2,400 Quanex Corp. 56
1,064 SPS Technologies, Inc.* 65
914 Varlen Corp. 20
3,600 Watts Industries, Inc., Class A 68
1,500 Whittaker Corp.* 29
2,800 Wolverine Tube, Inc.* 102
5,900 Wyman-Gordon Co.* 101
2,900 Zero Corp. 62
--------
1,319
MINING, QUARRYING OF NONMETALLIC MINERAL--0.1%
2,300 Dravo Corp.* 30
2,600 Zeigler Coal Holding Co. 41
--------
71
MISCELLANEOUS INVESTING INSTITUTIONS--1.7%
1,800 Apartment Investment & Management Co., Class A* 36
3,212 BRE Properties, Inc. 119
3,000 Burnham Pacific Properties, Inc. 33
8,500 CWM Mortgage Holdings, Inc. 151
4,850 Capstead Mortgage Corp. 122
3,200 Champion Enterprises, Inc.* 130
1,619 Chemical Financial Corp. 63
4,200 Crescent Real Estate Equities, Inc.* 145
4,000 Deposit Guaranty Corp. 181
8,300 Geotek Communications, Inc.* 115
1,150 Goody's Family Clothing, Inc.* 12
4,600 IRT Property Co. 43
3,200 Koger Equity, Inc.* 40
3,200 LTC Properties, Inc. 51
935 MAF Bancorp, Inc. 23
2,000 MGI Properties, Inc. 34
6,100 Merry Land & Investment Co., Inc. 133
7,700 Nationwide Health Properties, Inc. 167
1,000 PEC Israel Economic Corp.* 19
1,233 Peoples First Corp. 28
5,000 Public Storage, Inc. 105
3,600 Resource Mortgage Capital, Inc. 81
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
<C> <S> <C>
6,800 Rockefeller Center Properties, Inc. $ 54
700 Seacor Holdings, Inc.* 34
1,600 Smith, (Charles E.) Residential Realty, Inc. 37
2,000 Trans Financial Bancorp, Inc. 31
1,600 Vallicorp Holdings, Inc. 22
--------
2,009
NATURAL GAS TRANSMISSION--1.9%
3,350 Atmos Energy Corp. 81
2,400 Bay State Gas Co. 63
1,550 Cascade Natural Gas Corp. 24
1,500 Colonial Gas Co. 34
1,600 Connecticut Energy Corp. 33
1,800 Connecticut Natural Gas Corp. 42
4,200 Eastern Enterprises 143
1,800 Energen Corp. 42
4,100 Indiana Energy, Inc. 97
4,151 KN Energy, Inc. 140
4,400 Kelley Oil and Gas Corp.* 14
3,100 Laclede Gas Co. 71
201 NGC Corp.* 3
1,400 NUI Corp. 25
3,700 New Jersey Resources Corp. 102
1,100 North Carolina Natural Gas Corp. 28
3,100 Northwest Natural Gas Co. 106
5,600 Oneok, Inc. 153
4,276 Piedmont Natural Gas Co. 92
4,600 Primark Corp.* 162
3,350 Public Service Co. of North Carolina, Inc. 54
1,920 South Jersey Industries, Inc. 44
2,184 Southeastern Michigan Gas Enterprises, Inc. 36
1,452 Southern Union Co.* 34
5,000 Southwest Gas Corp. 86
4,500 Southwestern Energy Co. 64
2,000 TPC Corp.* 17
2,857 Tejas Gas Corp.* 105
6,600 UGI Corp. 153
1,900 United Cities Gas Co. 28
5,000 Washington Energy Co. 94
3,700 Wicor, Inc. 135
--------
2,305
OIL AND GAS--3.0%
1,000 Aquila Gas Pipeline Corp. 13
5,843 BJ Services Co.* 197
5,240 Barrett Resources Corp.* 137
2,000 Belden & Blake Corp.* 39
5,200 Benton Oil & Gas Co.* 92
2,800 Berry Petroleum Co. 30
3,300 Box Energy Corp.* 33
</TABLE>
See accompanying notes to financial statements.
32
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
3,400 Brown (Tom), Inc.* $ 59
4,100 Cabot Oil & Gas Corp. 70
800 Cairn Energy USA, Inc.* 10
3,400 Calmat Co. 62
2,000 Capsure Holdings Corp.* 37
3,200 Cross Timbers Oil Co. 72
2,700 Destec Energy, Inc.* 36
4,600 Devon Energy Corp. 117
1,600 Energy Ventures, Inc.* 53
1,000 Flores & Rucks, Inc.* 30
6,200 Global Natural Resources, Inc.* 100
5,100 Helmerich & Payne, Inc. 185
499 Hondo Oil & Gas Co.* 7
1,700 KCS Energy, Inc. 43
11,500 Mesa, Inc.* 42
17,400 Nabors Industries, Inc.* 268
14,650 Noble Drilling Corp.* 196
1,400 Nuevo Energy Co.* 43
4,300 Oceaneering International, Inc.* 71
7,400 Parker & Parsley Petroleum Co. 180
11,800 Parker Drilling Co.* 84
2,700 Plains Resources, Inc.* 30
2,400 Pool Energy Services Co.* 33
5,000 Pride Petroleum Services, Inc.* 86
1,400 Production Operators Corp. 51
12,700 Reading & Bates Corp.* 279
17,600 Rowan Cos., Inc.* 266
6,900 Seagull Energy Corp.* 155
4,600 Snyder Oil Corp. 45
1,700 Tide West Oil, Inc.* 27
3,400 Tuboscope Vetco International Corp.* 45
1,700 USX-Delhi Group 23
2,800 Vintage Petroleum, Inc. 73
4,800 Wainoco Oil Corp.* 18
2,900 Western Gas Resources, Inc. 43
1,599 Wiser Oil Co. 21
--------
3,501
ORDNANCE AND ACCESSORIES--0.2%
2,700 Alliant Techsystems, Inc.* 130
2,000 Sturm Ruger & Co., Inc. 99
--------
229
OTHER SERVICES--0.3%
1,050 Guest Supply, Inc.* 16
800 Horsehead Resource Development, Inc. 5
1,200 McGrath Rentcorp 25
4,700 Omega Environmental, Inc.* 14
700 Prins Recycling Corp. 2
1,100 Quick Response Services, Inc.* 37
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------
<C> <S> <C>
700 Summit Care Corp.* $ 17
650 Thermo Remediation, Inc. 9
3,000 United Waste Systems, Inc.* 165
600 Vallen Corp.* 12
400 Wackenhut Corrections Corp.* 26
--------
328
PAPER PRODUCTS--0.6%
5,000 Chesapeake Corp. 133
10,900 Gaylord Container Corp.* 97
2,500 Greif Bros. Corp. 72
1,653 Mosinee Paper Corp. 43
1,100 Nashua Corp.* 18
3,237 Paxar Corp.* 54
6,300 Rock-Tenn Co. 124
1,200 Sealright Co. 16
2,700 Shorewood Packaging Corp.* 45
2,000 Universal Forest Products, Inc. 21
5,700 Wausau Paper Mills Co. 121
--------
744
PERSONAL SERVICES--0.5%
1,500 Angelica Corp. 37
2,500 CPI Corp. 41
1,900 Catalina Marketing Corp.* 147
1,600 Craig (Jenny), Inc.* 28
800 Equity Corp. International 23
4,250 G & K Services, Inc. 129
1,773 Marcus Corp. 46
2,700 Rio Hotel & Casino, Inc.* 49
1,133 Sholodge, Inc.* 18
3,600 Unifirst Corp. 82
--------
600
PETROLEUM PRODUCTS--0.8%
5,000 Camco International, Inc. 164
1,200 Crown Central Petroleum Corp.* 21
1,100 Dual Drilling Co.* 21
1,600 Elcor Corp. 35
1,400 Louis Dreyfus Natural Gas Corp.* 20
3,600 Newfield Exploration, Inc.* 134
1,890 Newpark Resources, Inc.* 69
1,600 Quaker Chemical Corp. 21
6,800 Quaker State Corp. 105
1,000 RPC, Inc.* 13
2,300 Royal Gold, Inc.* 33
1,600 Seitel, Inc.* 42
1,600 Stone Energy Corp.* 30
1,400 Tatham Offshore, Inc.* 2
4,400 Tesoro Petroleum Corp.* 50
</TABLE>
See accompanying notes to financial statements.
33
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
PETROLEUM PRODUCTS--CONTINUED
3,000 Texas Meridian Resources, Corp.* $ 32
5,510 United Meridian Corp.* 157
--------
949
PRINTING AND PUBLISHING--1.7%
1,800 American Business Information, Inc.* 33
2,150 American Business Products, Inc. 46
7,400 American Media, Inc., Class A 35
6,100 Banta Corp. 146
2,600 Bowne & Co., Inc. 53
1,500 CSS Industries, Inc.* 38
1,000 Cadmus Communications Corp. 16
1,100 Devon Group, Inc.* 33
750 Edmark Corp.* 22
3,000 Ennis Business Forms, Inc. 33
3,100 Express Scripts, Inc.* 155
1,200 Franklin Electronic Publishers, Inc.* 30
2,900 Gibson Greetings, Inc.* 42
3,000 Golden Books Family Entertainment, Inc.* 41
1,100 Graphic Industries, Inc. 12
6,400 Harland (John H.) Co. 174
3,857 Harte-Hanks Communications, Inc. 102
2,800 Houghton Mifflin Co. 133
2,700 McClatchy Newspapers, Inc., Class A 67
5,400 Meredith Corp. 248
1,054 Merrill Corp. 27
2,750 Nelson (Thomas), Inc. 34
2,600 New England Business Service, Inc. 48
2,800 Playboy Enterprises, Inc.* 36
794 Plenum Publishing Corp. 28
825 Pulitzer Publishing Co. 45
2,300 Standard Register Co. 64
7,300 Topps, Inc.* 46
3,900 Valassis Communications, Inc.* 69
200 Waverly, Inc.* 9
2,800 Wiley (John) & Sons, Inc. 89
--------
1,954
PROFESSIONAL SERVICES--7.6%
1,160 ABM Industries, Inc. 44
2,400 AccuStaff, Inc.* 76
3,600 Acxiom Corp.* 112
4,025 Advo, Inc. 44
1,400 Affiliated Computer Services, Inc.* 67
6,800 Allwaste, Inc.* 29
700 Alternative Resources Corp.* 27
400 American List Corp. 10
8,300 American Management Systems, Inc.* 237
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
3,300 AmeriData Technologies, Inc.* $ 52
1,287 Analysts International Corp. 55
2,600 Artisoft, Inc.* 27
1,000 Aspen Technologies, Inc.* 55
3,300 BBN Corp.* 87
2,800 BE Aerospace, Inc.* 41
5,000 BWIP Holding, Inc. 99
3,000 Banyan Systems, Inc.* 28
3,500 Bisys Group, Inc.* 129
2,056 Boole & Babbage, Inc.* 50
1,500 Broadway & Seymour, Inc.* 23
2,000 CDI Corp.* 68
2,900 Career Horizons, Inc.* 115
7,800 Cheyenne Software, Inc.* 169
900 ClinTrials Research, Inc.* 43
2,700 Computer Horizons Corp.* 126
600 Computer Language Research, Inc. 8
1,600 Computer Task Group, Inc. 45
12,900 Computervision Corp.* 150
5,061 Continuum Co., Inc.* 311
2,500 Control Data Systems, Inc.* 62
7,000 Corrections Corp. of America* 518
700 CyCare Systems, Inc.* 35
1,284 Electro Rent Corp.* 32
1,000 EmCare Holdings, Inc. 31
1,400 Fair Isaac & Co. 65
3,400 Franklin Quest Co.* 74
1,500 GMIS, Inc.* 21
2,200 General Magic, Inc.* 16
3,200 Gerber Scientific, Inc. 56
1,400 Global Industries, Ltd.* 43
200 Grey Advertising, Inc. 46
1,200 Gupta Corp.* 8
300 HCIA, Inc.* 19
1,300 Henry (Jack) & Associates, Inc. 43
578 Holly Corp. 16
600 ITT Educational Services, Inc.* 18
1,500 Infocus Systems* 86
1,200 Inso Corp.* 68
450 Integrated Systems Consulting Group, Inc.* 11
2,400 Interim Services, Inc.* 114
1,300 International Imaging Materials, Inc.* 30
875 International Shipholding Corp. 17
3,800 Intersolv, Inc.* 45
3,375 Keane, Inc.* 135
4,200 Kenetech Corp.* 3
3,600 Kinder Care Learning Centers, Inc.* 54
3,100 Landmark Graphics Corp.* 58
2,300 Landstar Systems, Inc.* 68
</TABLE>
See accompanying notes to financial statements.
34
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
<C> <S> <C>
3,000 MDC Holdings, Inc. $ 21
4,350 MDU Resources Group, Inc. 91
2,400 MacNeal-Schwendler Corp. 27
1,200 Manugistics Group, Inc.* 19
1,700 Marcam Corp.* 21
5,700 McAfee Associates, Inc.* 211
1,600 Medic Computer Systems, Inc.* 149
2,100 Metricom, Inc.* 39
807 Monro Muffler Brake, Inc.* 15
4,800 National Data Corp. 181
3,800 National Health Investors, Inc. 128
600 National Instruments Corp.* 13
1,100 NETCOM On-Line Communication Services, Inc.* 38
2,000 Network Computing Devices, Inc.* 8
3,700 Network Equipment Technologies, Inc.* 104
1,800 Network Peripherals, Inc.* 33
1,000 Norrell Corp. 41
1,600 Oak Technology, Inc.* 20
500 Open Environment Corp.* 3
1,200 Orthadontic Centers of America, Inc.* 45
800 PHAMIS, Inc.* 15
2,400 Physician Computer Network, Inc.* 30
1,000 Pinkertons, Inc.* 24
2,300 Platinum Software Corp.* 25
6,050 Players International, Inc.* 58
4,400 Pre-Paid Legal Services, Inc.* 92
2,000 Progress Software Corp.* 32
2,300 Protein Design Labs, Inc.* 60
6,200 Quarterdeck Corp.* 90
2,500 Quintiles Transnational Corp.* 190
1,800 Rational Software Corp.* 112
750 Remedy Corp.* 59
4,600 Robert Half International, Inc.* 258
7,000 Rollins Truck Leasing Corp. 76
400 Roto-Rooter, Inc. 16
1,400 Security Dynamics Technologies, Inc.* 124
2,400 Shiva Corp.* 179
3,700 Sierra On-Line, Inc.* 167
800 Softdesk, Inc.* 9
7,014 Softkey International, Inc.* 174
1,100 Software Artistry, Inc.* 10
9,000 Sotheby's Holdings, Inc., Class A 128
3,000 Spectrum Holobyte, Inc. 22
4,900 Stac, Inc.* 62
5,792 Steris Corp.* 198
6,300 Structural Dynamics Research Corp.* 180
1,800 Syquest Technology, Inc.* 20
5,850 System Software Associates, Inc. 96
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
2,300 Systems & Computer Technology Corp.* $ 40
1,400 Systemsoft Corp.* 65
1,200 TCSI Corp.* 37
3,400 Telxon Corp. 62
665 Thermo TerraTech, Inc.* 8
1,950 Thermotrex Corp.* 103
2,100 VISX Corp.* 68
4,900 Verifone, Inc.* 247
1,000 Veritas Software Corp.* 45
2,800 Viewlogic Systems, Inc.* 44
800 Volt Information Sciences, Inc.* 24
1,297 Wackenhut Corp. 35
324 Wackenhut Corp.--Class B 7
8,094 Weatherford Enterra, Inc.* 255
1,350 Wind River Systems* 43
6,000 Work Recovery, Inc.* 2
2,900 Xircom, Inc.* 47
--------
8,964
REAL ESTATE--4.6%
700 AMLI Residential Properties 14
4,400 American Health Properties, Inc. 93
1,900 Associated Estates Realty Corp. 39
637 Atlantic Realty Trust, Inc.* 5
6,400 Avalon Properties, Inc. 137
1,200 Avatar Holdings, Inc.* 42
2,100 Bay Apartment Communities, Inc. 54
2,700 Beacon Properties Corp. 68
4,500 Berkshire Realty, Inc. 49
2,803 Bradley Real Estate Trust 41
4,300 CBL & Associates Properties, Inc. 92
2,200 CRI Liquidating REIT, Inc. 4
2,400 Cali Realty Corp. 54
2,600 Camden Property Trust 60
2,300 Carr Realty Corp. 58
1,600 Centerpoint Properties Corp. 38
1,000 Chateau Properties, Inc. 23
1,600 Chelsea GCA Realty, Inc. 47
500 Christiana Cos., Inc.* 11
3,600 Colonial Property Trust* 85
2,000 Columbus Realty Trust 39
3,200 Commercial Net Lease Realty, Inc. 43
4,700 Cousins Properties, Inc. 92
3,800 Crown American Realty Trust 29
9,400 DeBartolo Realty Corp. 153
3,400 Developers Diversified Realty Corp. 106
3,400 Doubletree Corp.* 121
3,600 Duke Realty Investments, Inc. 108
4,700 Equity Inns, Inc. 56
</TABLE>
See accompanying notes to financial statements.
35
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
REAL ESTATE--CONTINUED
1,100 Essex Property Trust, Inc. $ 23
2,900 Evans Withycombe Residential, Inc. 60
2,800 Excel Realty Trust, Inc. 53
2,100 Factory Stores America, Inc. 21
6,700 Federal Realty Investment Trust 145
1,400 FelCor Suite Hotel, Inc. 43
3,000 First Industrial Realty Trust, Inc. 71
3,200 First Union Real Estate Investments 22
700 Forest City Enterprises, Inc. 28
1,900 Gables Residential Trust 44
4,700 General Growth Properties, Inc. 113
4,500 Glimcher Realty Trust 74
3,208 HGI Realty, Inc. 70
2,100 Haagen Alexander Properties, Inc. 25
2,100 Health Care REIT, Inc. 45
2,300 Healthcare Realty Trust 52
2,500 Highwoods Properties, Inc. 73
2,800 Irvine Apartment Communities, Inc. 57
2,100 JDN Realty Corp. 44
2,700 JP Realty, Inc. 56
1,800 Kranzco Realty Trust 28
3,800 Liberty Property Trust 77
2,000 Macerich Co. 42
5,100 Manufactured Home Communities, Inc. 96
1,300 Mark Centers Trust 14
1,000 Maxxam, Inc.* 43
3,000 Mid-America Apartment Communities, Inc. 76
2,500 Mills Corp. 45
1,900 National Golf Properties, Inc. 47
2,900 Oasis Residential, Inc. 62
800 PRI Automation, Inc.* 32
2,600 Paragon Group, Inc. 41
1,300 Pennsylvania REIT 26
4,500 Post Properties, Inc. 151
4,800 Price Enterprises, Inc.* 75
1,400 Price REIT, Inc. 43
1,600 Prime Residential, Inc. 28
5,100 RFS Hotel Investors, Inc. 88
2,200 ROC Communities, Inc. 53
1,275 Ramco-Gershenson Properties* 21
3,500 Realty Income Corp. 73
1,200 Regency Realty Corp.* 23
2,100 Saul Centers, Inc. 28
2,400 Shurguard Storage Centers, Inc. 59
3,325 South West Property Trust, Inc. 46
5,800 Spieker Properties, Inc. 160
1,000 Storage Trust Realty 21
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
3,600 Storage USA, Inc. $ 121
4,300 Summit Property, Inc. 84
3,100 Sun Communities, Inc. 83
1,000 Tanger Factory Outlet Centers, Inc. 24
5,500 Taubman Centers, Inc. 58
2,100 Thornburg Mortgage Asset Corp. 34
2,700 Town & Country Trust 36
2,900 Trinet Corporate Realty Trust 87
11,700 United Dominion Realty Trust 171
2,400 Urban Shopping Centers, Inc. 57
1,800 Walden Residential Properties, Inc. 37
6,600 Washington Real Estate Investment Trust 109
1,400 Weeks Corp. 36
3,500 Wellsford Residential Property Trust 80
3,000 Western Investment Real Estate Trust 37
--------
5,432
RECREATIONAL SERVICES--1.7%
500 AMC Entertainment, Inc.* 17
2,400 American Classic Voyages Co. 19
400 American Filtrona Corp. 12
500 Ameristar Casinos, Inc.* 6
1,200 Anchor Gaming* 77
1,817 Anthony Industries, Inc. 54
2,100 Argosy Gaming Corp.* 17
3,800 Authentic Fitness Corp. 72
7,900 Aztar Corp.* 91
9,800 Bally Entertainment Corp.* 235
300 Bally's Grand, Inc.* 8
1,700 Carmike Cinemas, Inc.* 47
1,850 Casino America, Inc.* 17
3,200 Casino Magic Corp.* 19
400 Churchill Downs, Inc. 17
8,700 Discovery Zone, Inc.* 7
1,000 GC Cos., Inc.* 37
6,550 Grand Casinos, Inc.* 229
900 Harvey's Casino Resorts 19
2,000 Hollywood Casino Corp., Class A* 10
2,700 Hollywood Park, Inc.* 28
5,100 Ideon Group, Inc. 71
767 Johnson Worldwide Associates, Inc. * 13
3,100 Lydall, Inc.* 72
700 Movie Gallery, Inc.* 21
1,200 Primadonna Resorts, Inc.* 28
6,500 Prime Hospitality Corp.* 104
1,875 Regal Cinemas, Inc.* 87
5,400 Savoy Pictures Entertainment, Inc.* 32
2,700 Scientific Games Holdings Corp.* 90
3,300 Showboat, Inc. 92
1,350 Shuffle Master, Inc.* 20
</TABLE>
See accompanying notes to financial statements.
36
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
1,700 Skyline Corp. $ 44
800 Sodak Gaming, Inc.* 24
1,600 Speedway Motorsports, Inc.* 46
3,500 Sports & Recreation, Inc.* 33
3,900 Station Casinos, Inc.* 61
6,200 Tyco Toys, Inc.* 33
3,200 WMS Industries, Inc.* 70
900 White River Corp.* 37
--------
2,016
RESEARCH AND CONSULTING SERVICES--1.2%
7,000 Advance Tissue Science, Inc.* 128
1,900 Agouron Pharmaceuticals, Inc.* 82
3,300 Air & Water Technologies Corp.* 21
2,500 Alliance Entertainment Corp.* 15
5,000 Applied Bioscience International, Inc.* 46
11,600 Aura Systems, Inc.* 48
7,600 Bio-Technology General Corp.* 56
5,800 Columbia Laboratories, Inc.* 79
7,600 Cytogen Corp.* 68
2,900 Dames & Moore, Inc. 35
1,500 GRC International, Inc.* 64
4,200 Jacobs Engineering Group, Inc.* 113
5,900 Liposome Technology, Inc.* 118
1,900 Mercer International, Inc.* 37
3,400 Mycogen Corp.* 62
1,500 NFO Research, Inc.* 34
1,100 NeoPath, Inc.* 28
1,100 Northfield Laboratories, Inc.* 19
3,900 OHM Corp.* 35
1,980 Organogenesis, Inc.* 44
6,300 Scios-Nova, Inc.* 46
1,900 Spacelabs Medical, Inc.* 46
1,700 Stone & Webster, Inc. 60
5,950 Summit Technology, Inc.* 102
3,100 U.S. Bioscience, Inc.* 53
--------
1,439
RETAIL--6.0%
1,300 Aaron Rents, Inc. 37
770 Alexander's, Inc.* 56
500 American Eagle Outfitters, Inc.* 9
5,100 Americredit Corp.* 77
4,100 AnnTaylor Stores, Inc.* 85
5,412 Apple South, Inc. 135
2,600 Arbor Drugs, Inc. 49
1,500 Baby Superstores, Inc.* 36
2,000 Baker (J.), Inc. 19
5,600 Best Products Corp., Inc.* 15
2,400 Big B, Inc. 23
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
1,400 Blair Corp. $ 35
7,700 Bombay Company, Inc.* 60
900 Bon-Ton Stores, Inc.* 6
1,800 Books-a-Million, Inc.* 21
5,600 Borders Group, Inc.* 183
300 Buckle, Inc.* 11
5,700 Buffets, Inc.* 72
2,800 Burlington Coat Factory Warehouse* 30
600 CDW Computer Centers, Inc.* 49
3,200 CKE Restaurants, Inc. 74
8,400 CML Group, Inc. 45
3,000 Caldor Corp.* 9
2,900 Carson Pirie Scott & Co.* 80
5,100 Cash America International, Inc. 29
4,200 Cato Corp. 32
600 Central Tractor Farm & Country, Inc.* 8
19,500 Charming Shoppes, Inc.* 156
7,800 Checkers Drive-In Restaurants, Inc.* 11
1,400 Chic by H.I.S., Inc.* 8
3,700 Circle K Corp.* 115
3,300 Claire's Stores, Inc. 82
8,800 CompUSA, Inc.* 385
2,330 Consolidated Products, Inc.* 41
268 Dart Group Corp. 23
983 Delchamps, Inc. 23
2,750 Designs, Inc.* 18
1,200 Dollar Tree Stores, Inc.* 51
2,800 Dress Barn, Inc.* 33
3,400 Duty Free International, Inc. 51
2,900 Edison Brothers Stores, Inc.* 8
1,300 Fabri-Centers of America, Inc., Class A* 19
1,300 Fabri-Centers of America, Inc., Class B* 19
8,200 Family Dollar Stores, Inc. 139
2,600 Fay's, Inc. 21
8,500 Fedders Corp. 62
9,500 Fingerhut Cos., Inc. 146
1,000 First Team Sports, Inc.* 14
5,468 Flagstar Cos., Inc.* 19
7,000 Foodmaker, Inc.* 57
2,100 Friedmans, Inc., Class A* 59
3,778 General Host Corp.* 13
1,437 Genovese Drug Stores, Inc., Class A 14
2,400 Good Guys, Inc.* 23
5,100 Gymboree Corp.* 173
1,200 Haggar Corp. 18
3,800 Hancock Fabrics, Inc. 43
7,900 Hanover Direct, Inc.* 11
1,746 Haverty Furniture Cos., Inc. 24
5,600 Hechinger Co. 24
</TABLE>
See accompanying notes to financial statements.
37
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
RETAIL--CONTINUED
1,677 Hills Stores Co.* $ 20
4,500 Hollywood Entertainment Corp.* 70
11,200 Home Shopping Network, Inc.* 161
1,600 IHOP Corp.* 45
1,200 Ingles Markets, Inc. 15
1,600 Just For Feet, Inc.* 86
3,000 Lands' End, Inc. 66
1,900 Lechters, Inc.* 13
5,300 Levitz Furniture, Inc.* 23
900 Lillian Vernon Corp. 13
3,200 Long Drug Stores, Corp. 137
4,600 Mac Frugal's Bargains Close-Outs, Inc.* 87
1,575 Men's (The) Warehouse, Inc.* 53
5,600 Meyer (Fred), Inc.* 162
3,100 Michael's Stores, Inc.* 52
6,200 Musicland Stores Corp.* 27
2,000 National Media Corp.* 37
3,023 Natures Sunshine Products, Inc. 85
2,900 Neiman Marcus Group, Inc. 80
2,900 NPC International, Inc.* 27
600 O'Reilly Automotive, Inc.* 24
7,100 Payless Cashways, Inc.* 34
1,900 Penn Traffic Co.* 24
2,550 Petco Animal Supplies, Inc.* 73
4,500 Petroleum Heat & Power, Inc. 33
8,235 Pier I Imports, Inc. 130
3,100 Proffitt's, Inc.* 114
600 Quality Food Centers, Inc.* 16
1,200 Regis Corp.* 54
1,400 Renters Choice, Inc.* 38
5,100 Ross Stores, Inc. 200
11,100 Ryan's Family Steak Houses, Inc.* 99
2,050 Sbarro, Inc. 55
20,900 Service Merchandise Co., Inc.* 112
3,000 Shopko Stores, Inc. 45
2,850 Showbiz Pizza Time, Inc.* 46
3,900 Sizzler International, Inc.* 15
3,500 Smith Food & Drug Centers, Inc., Class B 81
2,800 Sonic Corp.* 67
1,600 Sportmart, Inc.* 8
2,600 Sports Authority, Inc.* 77
3,900 Stanhome, Inc. 113
1,550 Stein Mart, Inc.* 26
1,420 Strawbridge & Clothier, Class A 26
10,200 Stride Rite Corp. 92
2,500 Sun Television & Appliance, Inc. 13
11,100 Sunglass Hut International, Inc.* 305
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
3,900 Systemed, Inc.* $ 11
2,900 TCBY Enterprises, Inc. 13
900 Today's Man, Inc.* 2
400 Trak Auto Corp.* 6
1,050 Uno Restaurant Corp.* 7
700 Urban Outfitters, Inc.* 30
1,800 Valmont Industries, Inc. 56
2,100 Value City Department Stores, Inc.* 22
3,100 Venture Stores, Inc.* 22
1,700 Vicorp Restaurants, Inc.* 23
6,800 Waban, Inc.* 182
400 West Marine, Inc.* 29
2,500 Whole Foods Market, Inc.* 62
3,800 Williams-Sonoma, Inc.* 105
6,500 Zale Corp.* 125
--------
7,062
RUBBER AND PLASTICS--0.6%
2,000 ACX Technologies, Inc.* 41
700 AEP Industries, Inc. 18
798 Blessings Corp. 9
2,800 Carlisle Cos., Inc. 146
2,700 Foamex International, Inc.* 33
1,600 Furon Co. 38
900 Liqui-Box Corp. 28
2,295 Myers Industries, Inc.* 47
2,000 O'Sullivan Corp. 23
1,500 Park Ohio Industries, Inc.* 34
1,200 Rogers Corp.* 29
3,800 Sola International, Inc.* 115
4,200 Spartech Corp. 43
2,400 Tredegar Industries, Inc. 77
900 Tuscarora, Inc. 22
2,200 West Co., Inc. 55
--------
758
SANITARY SERVICES--0.7%
6,300 Allied Waste Industries, Inc.* 64
1,800 Centennial Cellular Corp.* 31
5,700 International Technology Corp.* 16
3,900 Mid-American Waste Systems, Inc.* 4
2,700 Republic Waste Industries, Inc.* 140
10,700 Rollins Environmental Services, Inc.* 37
4,100 Sanifill, Inc.* 184
300 Sevenson Environmental Services, Inc. 6
12,008 USA Waste Services, Inc.* 354
--------
836
SERVICE INDUSTRY MACHINERY--0.4%
2,400 Applied Power, Inc. 71
2,750 Commercial Intertech Corp. 57
</TABLE>
See accompanying notes to financial statements.
38
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------
<C> <S> <C>
867 Kysor Industrial Corp. $ 23
1,600 Scotsman Industries, Inc. 33
1,500 Tennant Co. 38
4,450 United States Filter Corp.* 155
1,575 Wynn's International, Inc. 43
--------
420
SOCIAL SERVICES--0.4%
1,800 Apollo Group, Inc., Class A 85
547 Berlitz International, Inc.* 10
1,000 Children's Discovery Centers of America, Inc.* 7
2,700 DeVry, Inc.* 107
7,300 National Education Corp.* 136
3,418 Omega Healthcare Investors, Inc. 98
--------
443
STEEL PRODUCTS--1.7%
4,300 AK Steel Holding Corp. 186
2,000 Acme Metals, Inc.* 34
1,500 Amcast Industrial Corp. 29
17,000 Armco, Inc.* 89
5,900 Birmingham Steel Corp. 95
2,900 Brush Wellman, Inc. 54
3,100 Carpenter Technology Corp. 112
1,000 Chaparral Steel Co. 15
1,800 Commonwealth Aluminum Corp. 30
400 Curtiss Wright Corp. 21
2,200 Geneva Steel Co.* 13
500 Gibraltar Steel Corp.* 10
2,500 Handy & Harman 44
1,700 Hayes Wheels International, Inc. 53
900 Huntco, Inc., Class A 17
1,800 IMCO Recycling, Inc. 42
3,300 Intermet Corp.* 56
3,200 J & L Specialty Steel, Inc. 56
1,400 Kaiser Aluminum Corp.* 18
3,200 Lone Star Technologies, Inc. 35
2,600 Lukens, Inc. 70
3,600 Mueller Industries, Inc.* 156
3,700 National Steel Corp., Class B* 49
3,600 Northwestern Steel & Wire Co.* 22
3,000 Oregon Steel Mills, Inc. 48
4,250 Precision Castparts Corp. 182
1,200 Reliance Steel & Aluminum Co. 45
1,900 Rouge Steel Co. 42
600 Schnitzer Steel Industries, Inc. 17
900 Shiloh Industries, Inc.* 14
2,200 Standex International Corp. 59
1,250 Steel Technologies, Inc. 18
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
2,100 Texas Industries, Inc. $ 132
3,900 UNR Industries, Inc. 38
1,000 WCI Steel, Inc.* 5
4,100 WHX Corp.* 41
6,700 Weirton Steel Corp.* 26
--------
1,973
TEXTILES--0.7%
5,200 Albany International Corp. 105
13,600 Burlington Industries, Inc.* 173
4,300 Cone Mills Corp.* 50
700 Congoleum Corp., Class A* 8
1,100 Crown Crafts, Inc. 12
3,000 Delta Woodside Industries, Inc. 17
800 Fab Industries, Inc. 23
1,582 Fieldcrest Cannon, Inc.* 33
2,100 Galey & Lord, Inc.* 24
1,998 Guilford Mills, Inc. 49
3,200 Interface, Inc. 46
4,200 Phillips-Van Heusen 56
1,000 Quiksilver, Inc.* 44
4,400 Ruddick Corp. 59
5,300 Tultex Corp.* 28
3,400 West Point Stevens, Inc.* 79
--------
806
TRANSPORTATION PARTS AND EQUIPMENT--2.2%
2,900 AAR Corp. 64
1,400 ABC Rail Products Corp.* 30
2,400 APS Holding Corp. 53
5,630 America West Airlines, Inc.* 115
5,250 Arctco, Inc. 50
1,700 Armor All Products Corp. 26
4,600 Arvin Industries, Inc. 113
3,300 Aviall, Inc. 33
4,800 Borg Warner Automotive, Inc. 190
2,300 Breed Technologies, Inc. 52
800 Cannondale Corp.* 18
10,700 Collins & Aikman Corp.* 72
1,200 Copart, Inc.* 20
1,700 Detroit Diesel Corp.* 32
1,300 Eaton Vance Corp. 43
3,600 Envirosource, Inc.* 14
1,600 Excel Industries, Inc. 24
3,300 Exide Corp. 78
7,300 Federal-Mogul Corp. 134
4,600 Gencorp, Inc. 70
2,400 Huffy Corp. 33
1,700 Johnstown America Industries, Inc.* 7
1,100 MK Rail Corp.* 6
</TABLE>
See accompanying notes to financial statements.
39
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands, except shares and contracts)
(Unaudited)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
TRANSPORTATION PARTS AND EQUIPMENT--CONTINUED
2,400 Masland Corp. $ 63
4,800 Mesa Airlines, Inc.* 64
3,400 OEA, Inc. 139
4,500 Orbital Sciences Corp.* 80
1,395 Oshkosh Truck Corp. 20
2,004 Pacific Scientific Co. 38
7,200 Roadmaster, Inc.* 14
4,500 Rohr, Inc.* 95
1,400 Sequa Corp.* 57
2,900 Simpson Industries, Inc. 28
1,600 Smith (A.O.) Corp. 43
1,850 Spartan Motors, Inc.* 15
3,525 Standard Products Co. 96
2,900 Stant Corp. 32
900 TFC Enterprise, Inc.* 2
3,600 Teleflex, Inc. 166
3,500 Thiokol Corp. 144
889 Thor Industries, Inc. 19
2,925 Titan Wheel International, Inc. 50
2,800 Tower Air, Inc. 16
3,900 Wabash National Corp. 79
1,500 Walbro Corp. 33
2,500 Winnebago Industries, Inc. 26
--------
2,596
TRANSPORTATION SERVICES--2.0%
3,300 Air Express International Corp. 95
4,000 Airborne Freight Corp. 101
2,400 Alaska Air Group, Inc.* 62
3,600 American Freightways, Inc.* 46
5,300 American President Co. 140
600 Amtran, Inc.* 6
3,500 Arnold Industries, Inc. 54
700 Celadon Group, Inc.* 7
7,462 Comair Holdings, Inc. 196
3,300 Continental Airlines, Inc., Class B* 188
600 Covenant Transportation, Inc., Class A* 9
2,100 Expeditors International of Washington, Inc. 65
1,458 First Source Corp. 33
800 Florida East Coast Industries, Inc. 70
3,152 Fritz Cos., Inc.* 109
1,453 Frozen Food Express Industries, Inc. 17
8,900 Greyhound Lines, Inc.* 41
2,200 Harper Group, Inc. 45
2,026 Heartland Express, Inc.* 59
4,900 Hunt (J.B.) Transportation Services, Inc. 93
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
5,000 Kirby Corp.* $ 88
400 Knight Transportation, Inc.* 7
1,600 M.S. Carriers, Inc.* 31
200 Midland Co. 10
4,900 OMI Corp.* 43
3,500 Offshore Logistics, Inc.* 51
800 Old Dominion Freight Line, Inc.* 10
5,500 Overseas Shipholding Group, Inc. 103
800 Oxford Resources Corp., Class A* 20
1,200 Railtex, Inc.* 30
1,300 Skywest, Inc. 25
2,100 Swift Transportation Co., Inc.* 39
400 U.S. Xpress Enterprises, Inc., Class A* 3
800 USA Truck, Inc.* 9
13,000 USAir Group, Inc.* 257
4,550 USFreightways, Corp.* 99
700 Union Switch & Signal, Inc.* 8
2,500 Werner Enterprises, Inc. 61
2,800 Worldcorp, Inc.* 22
3,800 Yellow Corp.* 49
--------
2,401
WATER SUPPLY--0.3%
1,200 Aquarion Co. 29
1,063 California Water Service Co. 37
1,200 Consumers Water Co. 21
1,100 E'Town Corp. 31
1,294 IWC Resources Corp. 25
1,000 Pennsylvania Enterprises, Inc.* 40
1,800 Philadelphia Suburban Corp. 44
400 SJW Corp. 15
1,360 Southern California Water Co. 30
1,600 St. Mary Land & Exploration Co. 28
4,252 United Water Resources, Inc. 57
--------
357
WHOLESALE--2.2%
4,785 Arch Communications Group, Inc.* 110
1,650 BMC West Corp.* 29
2,500 Bearings, Inc. 72
1,225 Bell Industries, Inc.* 27
1,400 Bindley Western Industries, Inc. 24
1,600 Boise Cascade Office Products Corp. 66
1,100 Business Records Holding Co. 38
4,400 Caraustar Industries, Inc. 114
4,600 Casey's General Stores, Inc. 109
2,156 Castle (A. M.) & Co. 61
2,200 Cellular Communications of Puerto Rico, Inc.* 68
2,066 Commercial Metals Co. 65
</TABLE>
See accompanying notes to financial statements.
40
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------
<C> <S> <C>
2,100 Compucom Systems, Inc.* $ 26
400 Culbro Corp.* 23
600 Daisytek International Corp.* 26
900 Discount Auto Parts, Inc.* 23
3,100 Egghead, Inc.* 37
2,700 Ekco Group, Inc. 17
3,038 Foxmeyer Corp.* 53
1,162 Getty Petroleum Corp. 16
5,600 Handleman Co. 41
700 Hughes Supply, Inc. 28
3,200 Immunex Corp.* 50
1,700 Insurance Auto Auctions, Inc.* 21
2,900 International Multifoods Corp. 58
1,800 JP Foodservice, Inc.* 42
3,200 Kaman Corp. 39
5,000 Kent Electronics Corp.* 178
1,400 Lawson Products, Inc. 32
3,300 Marshall Industries* 104
4,500 Merisel, Inc.* 19
2,550 Microage, Inc.* 34
1,900 Nash-Finch Co. 32
5,000 Owens & Minor, Inc. 62
2,000 Patterson Dental Co.* 65
1,800 Peak (The) Technologies Group* 43
1,300 Rex Stores Corp.* 20
5,822 Richfood Holdings, Inc. 195
1,700 Russ Berrie & Co., Inc. 30
2,475 Rykoff-Sexton, Inc. 38
2,693 Safeguard Scientifics, Inc.* 237
600 Safety 1st, Inc.* 9
2,300 Sciclone Pharmaceuticals, Inc.* 28
1,800 Smart & Final, Inc. 44
1,136 Standard Commercial Corp.* 10
950 Sullivan Dental Products, Inc.* 11
1,900 Super Food Services, Inc. 23
4,500 TBC Corp.* 40
600 Thompson PBE, Inc.* 7
2,100 Univar Corp. 26
1,600 VWR Corp.* 27
--------
2,597
- --------------------------------------------------
TOTAL COMMON STOCKS
(Cost $91,095) $117,072
- --------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Description Value
- ---------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATION--0.1%
U.S. Treasury Bill #
$ 60 5.082% Due 06/27/96 $ 60
- ---------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION--0.1%
(Cost $59) $ 60
- ---------------------------------------------------------
EURODOLLAR TIME DEPOSIT--0.9%
Banque Brussels Lambert, Grand Cayman
$1,103 5.438% Due 06/03/96 $ 1,103
- ---------------------------------------------------------
TOTAL EURODOLLAR TIME DEPOSIT
(Cost $1,103) $ 1,103
- ---------------------------------------------------------
TOTAL INVESTMENTS--99.7%
(Cost $92,257) $118,235
- ---------------------------------------------------------
Assets, less other liabilities--0.3% 368
- ---------------------------------------------------------
NET ASSETS--100.0% $118,603
- ---------------------------------------------------------
- ---------------------------------------------------------
</TABLE>
OPEN FUTURES CONTRACTS:
<TABLE>
<CAPTION>
Number of Contract Unrealized
Type Contracts Amount Position Expiration Loss
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
RUSSELL 2000 5 $880 Long 06/20/96 $24
- ---------------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
#Security pledged to cover margin requirements for open futures contracts.
NOTE TO STATEMENTS OF INVESTMENTS
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.
41
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
May 31, 1996
(All amounts in thousands, except net asset value per unit)
(Unaudited)
<TABLE>
<CAPTION>
Small
Diversified Equity Focused International Company
Balanced Growth Index Growth Growth Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securi-
ties, at cost $40,837 $117,231 $508,476 $ 90,604 $132,232 $ 92,257
- -------------------------------------------------------------------------------------------
Investments in securi-
ties, at value $45,752 $144,408 $646,572 $108,034 $136,993 $118,235
Cash and foreign cur-
rency 88 3 5 223 917 3
Receivables:
Dividends and interest 298 299 1,369 60 301 118
Foreign tax reclaims -- -- -- -- 92 --
Fund units sold -- 8 37 1,421 72 253
Investment securities
sold 9 -- 120 -- 2,792 12
Administrator 4 13 24 7 -- 3
Deferred organization
costs, net 20 21 21 35 41 21
Other assets 4 3 21 2 20 24
- -------------------------------------------------------------------------------------------
TOTAL ASSETS 46,175 144,755 648,169 109,782 141,228 118,669
- -------------------------------------------------------------------------------------------
LIABILITIES:
Outstanding options
written, at value (pre-
miums received of $41
for the Balanced Port-
folio and $178 for the
Focused Growth Portfo-
lio) 52 -- -- 291 -- --
Payable for:
Fund units redeemed -- -- 26,964 5 15 --
Investment securities
purchased -- -- 17 -- 2,734 --
Accrued expenses:
Advisory fees 19 67 53 69 92 20
Administration fees 4 12 53 9 12 10
Custodian fees -- 5 21 3 11 16
Transfer agent fees 1 1 7 1 1 1
Other liabilities 10 14 19 8 13 19
- -------------------------------------------------------------------------------------------
TOTAL LIABILITIES 86 99 27,134 386 2,878 66
- -------------------------------------------------------------------------------------------
NET ASSETS $46,089 $144,656 $621,035 $109,396 $138,350 $118,603
- -------------------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $40,892 $106,045 $473,159 $ 84,574 $132,770 $ 90,232
Accumulated undistrib-
uted (distributions in
excess of) net invest-
ment income 55 716 439 49 (170) 425
Accumulated net realized
gain on investments,
futures and foreign
currency transactions 238 10,718 9,715 7,456 999 1,992
Net unrealized apprecia-
tion on investments,
options and futures
contracts 4,904 27,177 137,722 17,317 4,761 25,954
Net unrealized loss on
translation of other
assets and liabilities
denominated in foreign
currencies -- -- -- -- (10) --
- -------------------------------------------------------------------------------------------
NET ASSETS $46,089 $144,656 $621,035 $109,396 $138,350 $118,603
- -------------------------------------------------------------------------------------------
Total units outstanding
(no par value), unlim-
ited units authorized
Class A 3,609 11,108 40,335 7,990 13,235 8,357
Class C 431 -- 1,405 -- -- --
Class D 1 20 98 40 8 7
- -------------------------------------------------------------------------------------------
Net asset value, offer-
ing and redemption
price per unit
Class A $11.41 $13.00 $14.84 $13.62 $10.45 $14.18
Class C $11.40 -- $14.84 -- -- --
Class D $11.41 $12.93 $14.83 $13.55 $10.38 $14.12
- -------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
42
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Six Months Ended May 31, 1996
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Small
Diversified Equity Focused International Company
Balanced Growth Index Growth Growth Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 205 $ 1,109 $ 6,271 $ 436 $ 795(a) $ 803
Interest 592 102 504 44 108 61
- -------------------------------------------------------------------------------------------
TOTAL INCOME 797 1,211 6,775 480 903 864
- -------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 176 579 849 519 682 205
Administration fees 58 157 375 118 145 105
Custodian fees 6 16 74 11 89 36
Transfer agent fees 4 7 38 5 7 5
Registration fees 12 13 21 13 10 14
Professional fees 3 12 14 4 5 6
Trustee fees 1 2 9 1 3 2
Amortization of deferred
organization costs 5 7 7 9 7 6
Other 8 8 42 7 17 9
- -------------------------------------------------------------------------------------------
TOTAL EXPENSES 273 801 1,429 687 965 388
Less: Voluntary waivers
of investment advisory
and administration fees (99) (268) (658) (213) (221) (169)
Less: Expenses
reimbursable by
Administrator (35) (55) (139) (42) (12) (58)
- -------------------------------------------------------------------------------------------
Net expenses 139 478 632 432 732 161
- -------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 658 733 6,143 48 171 703
Net realized gains
(losses) on:
Investment transactions 817 10,753 11,219 7,456 6,870 2,116
Futures transactions -- -- 2,052 -- -- 364
Foreign currency
transactions -- -- -- -- (35) --
Net change in unrealized
appreciation on
investments, options
and futures contracts 550 1,541 42,836 2,568 3,724 14,098
Net change in unrealized
losses on translation
of other assets and
liabilities denominated
in foreign currencies -- -- -- -- (47) --
- -------------------------------------------------------------------------------------------
NET INCREASE IN NET
ASSETS RESULTING FROM
OPERATIONS $2,025 $13,027 $62,250 $10,072 $10,683 $17,281
- -------------------------------------------------------------------------------------------
</TABLE>
(a) Net of $55 in non-reclaimable foreign withholding taxes.
See accompanying notes to financial statements.
43
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended May 31, 1996 (Unaudited) and Year Ended November 30,
1995
(All amounts in thousands)
<TABLE>
<CAPTION>
Balanced Diversified Growth
Portfolio Portfolio
1996 1995 1996 1995
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Net investment income $ 658 $ 1,217 $ 733 $ 1,779
Net realized gains (losses) on:
Investments and futures transactions 817 587 10,753 3,960
Foreign currency transactions -- -- -- --
Net change in unrealized appreciation
(depreciation) on:
Investments and futures 550 4,957 1,541 27,492
Forward foreign currency contracts -- -- -- --
Net change in unrealized gains
(losses) on translations of other
assets and liabilities denominated
in foreign currencies -- (5) -- 364
- -------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 2,025 6,756 13,027 33,595
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A UNITHOLDERS
FROM:
Net investment income (599) (1,221) (1,750) (1,361)
Net realized gain on investment and
futures transactions -- -- (1,919) --
- -------------------------------------------------------------------------------
Total distributions to Class A
unitholders (599) (1,221) (3,669) (1,361)
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS C UNITHOLDERS:
Net investment income (52) -- -- --
Net realized gain on investment and
futures transactions -- -- -- --
- -------------------------------------------------------------------------------
Total distributions to Class C
unitholders (52) -- -- --
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS D UNITHOLDERS:
Net investment income -- -- (2) (1)
Net realized gain on investment and
futures transactions -- -- (3) --
- -------------------------------------------------------------------------------
Total distributions to Class D
unitholders -- -- (5) (1)
- -------------------------------------------------------------------------------
CLASS A UNIT TRANSACTIONS:
Proceeds from the sale of units 4,615 11,874 9,773 34,912
Reinvested distributions 462 -- 3,425 --
Cost of units redeemed (4,063) (9,974) (24,872) (85,346)
- -------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class A unit
transactions 1,014 1,900 (11,674) (50,434)
- -------------------------------------------------------------------------------
CLASS C UNIT TRANSACTIONS:
Proceeds from the sale of units 5,026 -- -- --
Reinvested distributions 52 -- -- --
Cost of units redeemed (286) -- -- --
- -------------------------------------------------------------------------------
Net increase in net assets resulting
from Class C unit transactions 4,792 -- -- --
- -------------------------------------------------------------------------------
CLASS D UNIT TRANSACTIONS:
Proceeds from the sale of units 12 -- 67 186
Reinvested distributions -- -- 5 --
Cost of units redeemed -- -- (47) (36)
- -------------------------------------------------------------------------------
Net increase in net assets resulting
from Class D unit transactions 12 -- 25 150
- -------------------------------------------------------------------------------
Net increase (decrease) 7,192 7,435 (2,296) (18,051)
Net assets--beginning of period 38,897 31,462 146,952 165,003
- -------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $46,089 $38,897 $ 144,656 $ 146,952
- -------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED
(DISTRIBUTIONS IN EXCESS OF) NET
INVESTMENT INCOME: $ 55 $ 48 $ 716 $ 1,735
- -------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
44
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Equity Index Focused Growth International Small Company
Portfolio Portfolio Growth Portfolio Index Portfolio
1996 1995 1996 1995 1996 1995 1996 1995
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 6,143 $ 9,656 $ 48 $ 349 $ 171 $ 1,794 $ 703 $ 1,130
13,271 13,989 7,456 5,691 6,870 (5,847) 2,480 5,913
-- -- -- -- (35) 932 -- --
42,836 94,961 2,568 13,082 3,724 754 14,098 13,771
-- -- -- -- -- (62) -- --
-- -- -- (24) (47) 35 -- --
- ------------------------------------------------------------------------------
62,250 118,606 10,072 19,098 10,683 (2,394) 17,281 20,814
- ------------------------------------------------------------------------------
(5,929) (9,464) (317) (147) (2,919) (684) (1,002) (1,027)
(15,195) (5,459) (1,293) -- -- (510) (5,764) (3,919)
- ------------------------------------------------------------------------------
(21,124) (14,923) (1,610) (147) (2,919) (1,194) (6,766) (4,946)
- ------------------------------------------------------------------------------
(182) (93) -- -- -- -- -- --
(570) -- -- -- -- -- -- --
- ------------------------------------------------------------------------------
(752) (93) -- -- -- -- -- --
- ------------------------------------------------------------------------------
(9) (6) (2) -- (1) -- (1) --
(26) -- (8) -- -- -- (2) --
- ------------------------------------------------------------------------------
(35) (6) (10) -- (1) -- (3) --
- ------------------------------------------------------------------------------
200,191 230,302 22,868 27,441 17,801 63,136 17,093 23,123
19,245 -- 1,413 -- 2,297 962 6,297 --
(139,413) (135,290) (9,925) (18,062) (38,299) (45,016) (10,281) (21,209)
- ------------------------------------------------------------------------------
80,023 95,012 14,356 9,379 (18,201) 19,082 13,109 1,914
- ------------------------------------------------------------------------------
8,272 18,212 -- -- -- -- -- --
609 -- -- -- -- -- -- --
(7,751) (427) -- -- -- -- -- --
- ------------------------------------------------------------------------------
1,130 17,785 -- -- -- -- -- --
- ------------------------------------------------------------------------------
837 768 83 459 65 24 40 43
35 -- 10 -- -- -- 3 --
(292) (6) (93) (2) (1) (6) (4) (2)
- ------------------------------------------------------------------------------
580 762 -- 457 64 18 39 41
- ------------------------------------------------------------------------------
122,072 217,143 22,808 28,787 (10,374) 15,512 23,660 17,823
498,963 281,820 86,588 57,801 148,724 133,212 94,943 77,120
- ------------------------------------------------------------------------------
$621,035 $498,963 $109,396 $86,588 $138,350 $148,724 $118,603 $94,943
- ------------------------------------------------------------------------------
$ 439 $ 416 $ 49 $ 320 $ (170) $ 2,579 $ 425 $ 724
- ------------------------------------------------------------------------------
</TABLE>
45
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1996 (Unaudited) and Years Ended November 30,
Balanced Portfolio
<TABLE>
<CAPTION>
Class A Class C Class D
----------------------------------- -------- --------
1996 1995 1994 1993 (a) 1996 (b) 1996 (c)
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 11.05 $ 9.50 $ 10.22 $ 10.00 $ 11.12 $ 11.34
Income from investment
operations:
Net investment income 0.17 0.34 0.24 0.09 0.13 0.08
Net realized and
unrealized gain (loss)
on investments and
options 0.36 1.55 (0.72) 0.22 0.27 0.11
- ---------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.53 1.89 (0.48) 0.31 0.40 0.19
- ---------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.17) (0.34) (0.22) (0.09) (0.12) (0.12)
Net realized gain on
investments and options -- -- (0.02) -- -- --
- ---------------------------------------------------------------------------------
Total distributions to
unitholders (0.17) (0.34) (0.24) (0.09) (0.12) (0.12)
- ---------------------------------------------------------------------------------
Net increase (decrease) 0.36 1.55 (0.72) 0.22 0.28 0.07
- ---------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 11.41 $ 11.05 $ 9.50 $ 10.22 $ 11.40 $ 11.41
- ---------------------------------------------------------------------------------
Total return (d) 4.76% 20.22% (4.76)% 3.12% 3.47% 1.21%
Ratio to average net
assets of: (e)
Expenses, net of
waivers and
reimbursements 0.61% 0.61% 0.61% 0.61% 0.85% 1.00%
Expenses, before
waivers and
reimbursements 1.21% 1.28% 1.50% 1.62% 1.45% 1.60%
Net investment income,
net of waivers and
reimbursements 3.03% 3.36% 2.56% 2.20% 2.77% 2.69%
Net investment income,
before waivers and
reimbursements 2.43% 2.69% 1.68% 1.19% 2.17% 2.09%
Portfolio turnover rate 54.53% 93.39% 75.69% 35.03% 54.53% 54.53%
Average commission per
share (f) $0.0790 NA NA NA $0.0790 $0.0790
Net assets at end of
period (in thousands) $41,166 $38,897 $31,462 $15,928 $ 4,911 $ 12
- ---------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on July 1, 1993.
(b) Class C units were issued on January 2, 1996.
(c) Class D units were issued on February 21, 1996.
(d) 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. Total
return is not annualized for periods less than one year.
(e) Annualized for periods less than a full year.
(f) For fiscal years beginning on or after September 1, 1995, the portfolio is
required to disclose its average commission rate per share for equity
security trades on which commissions are charged. This amount may vary from
period to period and portfolio to portfolio depending on the mix of trades
executed in various markets where trading practices and commission rate
structures may differ.
NA--Disclosure not applicable to prior periods.
See accompanying notes to financial statements.
46
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1996 (Unaudited) and Years Ended November 30,
Diversified Growth Portfolio
<TABLE>
<CAPTION>
Class A Class D
--------------------------------------- -------------------------
1996 1995 1994 1993 (a) 1996 1995 1994 (b)
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 12.20 $ 9.88 $ 10.65 $ 10.00 $ 12.16 $ 9.88 $10.41
Income from investment
operations:
Net investment income 0.08 0.15 0.09 0.09 0.04 0.11 0.01
Net realized and
unrealized gain (loss)
on investments 1.03 2.26 (0.83) 0.65 1.03 2.25 (0.54)
- ---------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.11 2.41 (0.74) 0.74 1.07 2.36 (0.53)
- ---------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.15) (0.09) (0.01) (0.09) (0.14) (0.08) --
Net realized gain on
investments (0.16) -- (0.02) -- (0.16) -- --
- ---------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.31) (0.09) (0.03) (0.09) (0.30) (0.08) --
- ---------------------------------------------------------------------------------------------
Net increase (decrease) 0.80 2.32 (0.77) 0.65 0.77 2.28 (0.53)
- ---------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 13.00 $ 12.20 $ 9.88 $ 10.65 $ 12.93 $12.16 $ 9.88
- ---------------------------------------------------------------------------------------------
Total return (c) 9.38% 24.55% (6.98)% 7.39% 9.17% 24.19% (5.18)%
Ratio to average net
assets of (d):
Expenses, net of
waivers and
reimbursements 0.66% 0.69% 0.67% 0.71% 1.05% 1.08% 1.05%
Expenses, before
waivers and
reimbursements 1.11% 1.12% 1.08% 1.13% 1.50% 1.51% 1.46%
Net investment income,
net of waivers and
reimbursements 1.02% 1.16% 0.77% 1.04% 0.63% 0.73% 0.94%
Net investment income,
before waivers and
reimbursments 0.57% 0.73% 0.35% 0.62% 0.18% 0.30% 0.53%
Portfolio turnover rate 25.25% 81.65% 78.94% 140.88% 25.25% 81.65% 78.94%
Average commission per
share (e) $ 0.0645 NA NA NA $0.0645 NA NA
Net assets at end of
period (in thousands) $144,394 $146,731 $164,963 $199,053 $ 262 $ 221 $ 40
- ---------------------------------------------------------------------------------------------
</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. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
(e) For fiscal years beginning on or after September 1, 1995, the portfolio is
required to disclose its average commission rate per share for equity
security trades on which commissions are charged. This amount may vary from
period to period and portfolio to portfolio depending on the mix of trades
executed in various markets where trading practices and commission rate
structures may differ.
NA--Disclosure not applicable to prior periods.
See accompanying notes to financial statements.
47
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1996 (Unaudited) and Years Ended November 30,
Equity Index Portfolio
<TABLE>
<CAPTION>
Class A Class C Class D
-------------------------------------- ----------------- -------------------------
1996 1995 1994 1993 (a) 1996 1995 (b) 1996 1995 1994 (c)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 13.86 $ 10.60 $ 10.78 $ 10.00 $ 13.86 $ 13.43 $ 13.83 $10.60 $10.96
Income from investment
operations:
Net investment income 0.16 0.30 0.27 0.22 0.15 0.05 0.15 0.25 0.02
Net realized and
unrealized gain (loss)
on investments and
futures 1.40 3.47 (0.18) 0.78 1.40 0.45 1.40 3.47 (0.31)
- ---------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.56 3.77 0.09 1.00 1.55 0.50 1.55 3.72 (0.29)
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.15) (0.30) (0.27) (0.22) (0.14) (0.07) (0.12) (0.28) (0.07)
Net realized gain on
investments and
futures (0.43) (0.21) -- -- (0.43) -- (0.43) (0.21) --
- ---------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.58) (0.51) (0.27) (0.22) (0.57) (0.07) (0.55) (0.49) (0.07)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) 0.98 3.26 (0.18) 0.78 0.98 0.43 1.00 3.23 (0.36)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 14.84 $ 13.86 $ 10.60 $ 10.78 $ 14.84 $ 13.86 $ 14.83 $13.83 $10.60
- ---------------------------------------------------------------------------------------------------------------
Total return (d) 11.64% 36.60% 0.87% 10.09% 11.52% 3.73% 11.55% 36.20% (2.65)%
Ratio to average net as-
sets of (e):
Expenses, net of
waivers and
reimbursements 0.21% 0.22% 0.23% 0.21% 0.45% 0.46% 0.60% 0.61% 0.60%
Expenses, before
waivers and
reimbursements 0.50% 0.54% 0.59% 0.66% 0.74% 0.78% 0.89% 0.93% 0.96%
Net investment income,
net of waivers and re-
imbursements 2.18% 2.54% 2.62% 2.62% 1.91% 2.29% 1.80% 2.07% 2.67%
Net investment income,
before waivers and re-
imbursements 1.89% 2.22% 2.25% 2.17% 1.62% 1.97% 1.51% 1.75% 2.31%
Portfolio turnover rate 6.27% 15.27% 71.98% 2.06% 6.27% 15.27% 6.27% 15.27% 71.98%
Average commission per
share (f) $ 0.0313 NA NA NA $0.0313 NA $0.0313 NA NA
Net assets at end of pe-
riod (in thousands) $598,718 $479,763 $281,817 $219,282 $20,860 $18,390 $ 1,457 $ 810 $ 3
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on January 11, 1993.
(b) Class C units were issued on September 29, 1995.
(c) Class D units were issued on September 14, 1994.
(d) 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. Total
return is not annualized for periods less than one year.
(e) Annualized for periods less than a full year.
(f) For fiscal years beginning on or after September 1, 1995, the portfolio is
required to disclose its average commission rate per share for equity
security trades on which commissions are charged. This amount may vary from
period to period and portfolio to portfolio depending on the mix of trades
executed in various markets where trading practices and commission rate
structures may differ.
NA--Disclosure not applicable to prior periods.
See accompanying notes to financial statements.
48
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1996 (Unaudited) and Years Ended November 30,
Focused Growth Portfolio
<TABLE>
<CAPTION>
Class A Class D
--------------------------------------- ------------------
1996 1995 1994 1993 (a) 1996 1995 (b)
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 12.53 $ 9.79 $ 10.43 $ 10.00 $ 12.48 $ 9.55
Income from investment
operations:
Net investment income
(loss) 0.01 0.05 0.02 0.01 (0.02) 0.02
Net realized and
unrealized gain (loss)
on investments and op-
tions 1.32 2.71 (0.66) 0.43 1.32 2.93
- ---------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.33 2.76 (0.64) 0.44 1.30 2.95
- ---------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.05) (0.02) -- (0.01) (0.04) (0.02)
Net realized gain on
investments and options (0.19) -- -- -- (0.19) --
- ---------------------------------------------------------------------------------------
Total distributions to
unitholders (0.24) (0.02) -- (0.01) (0.23) (0.02)
- ---------------------------------------------------------------------------------------
Net increase (decrease) 1.09 2.74 (0.64) 0.43 1.07 2.93
- ---------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 13.62 $ 12.53 $ 9.79 $ 10.43 $ 13.55 $12.48
- ---------------------------------------------------------------------------------------
Total return (c) 10.86% 28.38% (6.15)% 4.33% 10.69% 31.00%
Ratio to average net as-
sets of (d):
Expenses, net of waiv-
ers and reimbursements 0.91% 0.91% 0.91% 0.91% 1.30% 1.30%
Expenses, before waiv-
ers and reimbursements 1.45% 1.47% 1.55% 1.88% 1.84% 1.86%
Net investment income
(loss), net of waivers
and reimbursements 0.10% 0.46% 0.24% 0.14% (0.29)% (0.11)%
Net investment income
(loss), before waivers
and reimbursements (0.44)% (0.10)% (0.39)% (0.83)% (0.83)% (0.67)%
Portfolio turnover rate 71.63% 85.93% 74.28% 27.48% 71.63% 85.93%
Average commission per
share (e) $ 0.0724 NA NA NA $0.0724 NA
Net assets at end of pe-
riod (in thousands) $108,860 $86,099 $57,801 $32,099 $ 536 $ 489
- ---------------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on July 1, 1993.
(b) Class D units were issued on December 8, 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. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
(e) For fiscal years beginning on or after September 1, 1995, the portfolio is
required to disclose its average commission rate per share for equity
security trades on which commissions are charged. This amount may vary from
period to period and portfolio to portfolio depending on the mix of trades
executed in various markets where trading practices and commission rate
structures may differ.
NA--Disclosure not applicable to prior periods.
See accompanying notes to financial statements.
49
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1996 (Unaudited) and Years Ended November 30,
International Growth Portfolio
<TABLE>
<CAPTION>
Class A Class D
----------------------------- ----------------------------
1996 1995 1994 (a) 1996 1995 1994 (b)
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 9.88 $ 10.21 $ 10.00 $ 9.83 $ 10.21 $10.47
Income from investment
operations:
Net investment income
(loss) 0.01 0.12 0.05 (0.01) 0.19 --
Net realized and
unrealized gain (loss)
on investments and for-
eign currency transac-
tions 0.78 (0.36) 0.16 0.78 (0.48) (0.26)
- --------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.79 (0.24) 0.21 0.77 (0.29) (0.26)
- --------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.22) (0.05) -- (0.22) (0.05) --
Net realized gain on
investments and for-
eign currency transac-
tions -- (0.04) -- -- (0.04) --
- --------------------------------------------------------------------------------------
Total distributions to
unitholders (0.22) (0.09) -- (0.22) (0.09) --
- --------------------------------------------------------------------------------------
Net increase (decrease) 0.57 (0.33) 0.21 0.55 (0.38) (0.26)
- --------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 10.45 $ 9.88 $ 10.21 $ 10.38 $ 9.83 $10.21
- --------------------------------------------------------------------------------------
Total return (c) 8.05% (2.32)% 2.11% 7.90% (2.78)% (2.51)%
Ratio to average net as-
sets of (d):
Expenses, net of waiv-
ers and reimbursements 1.07% 1.06% 1.04% 1.46% 1.45% 1.35%
Expenses, before waiv-
ers and reimbursements 1.41% 1.38% 1.47% 1.80% 1.77% 1.78%
Net investment income
(loss), net of waivers
and reimbursements 0.25% 1.22% 0.76% (0.04)% 2.01% --
Net investment income
(loss), before waivers
and reimbursements (0.09)% 0.90% 0.33% (0.38)% 1.69% (0.43)%
Portfolio turnover rate 113.34% 215.31% 77.79% 113.34% 215.31% 77.79%
Average commission per
share (e) $ 0.0255 NA NA $0.0255 NA NA
Net assets at end of pe-
riod (in thousands) $138,263 $148,704 $133,212 $ 87 $ 20 --
- --------------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on March 28, 1994.
(b) Class D units were issued on November 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. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
(e) For fiscal years beginning on or after September 1, 1995, the portfolio is
required to disclose its average commission rate per share for equity
security trades on which commissions are charged. This amount may vary from
period to period and portfolio to portfolio depending on the mix of trades
executed in various markets where trading practices and commission rate
structures may differ.
NA--Disclosure not applicable to prior periods.
See accompanying notes to financial statements.
50
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1996 (Unaudited) and Years Ended November 30,
Small Company Index Portfolio
<TABLE>
<CAPTION>
Class A Class D
------------------------------------- -----------------
1996 1995 1994 1993 (a) 1996 1995 (b)
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 12.98 $ 10.86 $ 11.29 $ 10.00 $ 12.95 $10.60
Income from investment
operations:
Net investment income 0.10 0.16 0.14 0.11 0.07 0.18
Net realized and
unrealized gain (loss)
on investments and
futures 2.05 2.67 (0.30) 1.29 2.05 2.87
- ---------------------------------------------------------------------------------
Total income (loss)
from investment opera-
tions 2.15 2.83 (0.16) 1.40 2.12 3.05
- ---------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.14) (0.15) (0.02) (0.11) (0.14) (0.14)
Net realized gain on
investment and futures
transactions (0.81) (0.56) (0.25) -- (0.81) (0.56)
- ---------------------------------------------------------------------------------
Total distributions to
unitholders (0.95) (0.71) (0.27) (0.11) (0.95) (0.70)
- ---------------------------------------------------------------------------------
Net increase (decrease) 1.20 2.12 (0.43) 1.29 1.17 2.35
- ---------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 14.18 $ 12.98 $ 10.86 $ 11.29 $ 14.12 $12.95
- ---------------------------------------------------------------------------------
Total return (c) 17.73% 27.76% (1.54)% 14.09% 17.54% 30.50%
Ratio to average net
assets of (d):
Expenses, net of waiv-
ers and reimbursements 0.31% 0.32% 0.33% 0.31% 0.70% 0.71%
Expenses, before waiv-
ers and reimbursements 0.75% 0.81% 0.86% 1.02% 1.14% 1.20%
Net investment income,
net of waivers and re-
imbursements 1.37% 1.31% 1.27% 1.25% 0.99% 0.90%
Net investment income,
before waivers
and reimbursements 0.93% 0.82% 0.74% 0.54% 0.55% 0.41%
Portfolio turnover rate 6.02% 38.46% 98.43% 26.31% 6.02% 38.46%
Average commission per
share (e) $ 0.0304 NA NA NA $0.0304 NA
Net assets at end of
period (in thousands) $118,510 $94,899 $77,120 $54,763 $ 93 $ 44
- ---------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on January 11, 1993.
(b) Class D units were issued on December 11, 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. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
(e) For fiscal years beginning on or after September 1, 1995, the portfolio is
required to disclose its average commission rate per share for equity
security trades on which commissions are charged. This amount may vary from
period to period and portfolio to portfolio depending on the mix of trades
executed in various markets where trading practices and commission rate
structures may differ.
NA--Disclosure not applicable to prior periods.
See accompanying notes to financial statements.
51
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
May 31, 1996
(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 equity portfolios.
Each of the equity portfolios has four separate 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, 1996, Class A, Class C and Class D units
are outstanding.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Portfolios in the preparation of their financial statements.
These policies are in conformity with generally accepted accounting principles
("GAAP"). The presentation of financial statements in conformity with GAAP
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 revenues and expenses during the reporting period.
Actual results could differ from those estimates and assumptions.
(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. Exchange traded futures and options are valued at the settlement
price as established by the exchange on which they are traded. Financial
futures are marked to market on a daily basis. 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 dividend income are translated into U.S.
dollars using the spot market rate of exchange prevailing on the respective
dates of such transactions.
The gains or losses on investments resulting from changes in foreign exchange
rates are included with net realized and unrealized gain (loss) on investments.
(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.
Dividend income is recorded on the ex-dividend date and interest income is
recorded on the accrual basis and includes amortization of discounts and
premiums. Dividends from foreign securities are recorded on the ex-date, or as
soon as the information is available.
(e) Forward Foreign Currency Exchange Contracts
The Balanced, Diversified Growth, Focused Growth and International Growth
Portfolios are authorized to enter
52
<PAGE>
- --------------------------------------------------------------------------------
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 either specific transactions or portfolio
positions. In addition, the International Growth Portfolio may enter into
foreign currency exchange contracts for speculative purposes. The objective of
a Portfolio's foreign currency hedging transactions is to reduce the risk that
the U.S. dollar value of the Portfolio's foreign currency denominated
securities will decline in value due to changes in foreign currency exchange
rates. All forward foreign currency contracts are "marked-to-market" daily at
the applicable exchange 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. At May 31, 1996, there were
no contracts outstanding.
(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, 1995, 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>
Amount Years of Expiration
- --------------------------------------------------------
(in thousands)
<S> <C> <C>
Balanced $ 571 2002 to 2003
International Growth 3,282 2003
- --------------------------------------------------------
</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 net assets.
(i) Distributions
Dividends from net investment income are declared and paid as follows:
<TABLE>
<CAPTION>
Declared Paid
- -----------------------------------------
<S> <C> <C>
Balanced Quarterly Quarterly
Diversified Growth Annually Annually
Equity Index Quarterly Quarterly
Focused Growth Annually Annually
International Growth Annually Annually
Small Company Index Annually Annually
- -----------------------------------------
</TABLE>
Each portfolio's net realized capital gains are distributed at least annually.
Income, dividends and capital gain distributions are determined in accordance
with income tax regulations.
Such amounts may differ from income and capital gains recorded in accordance
with generally accepted accounting principles.
(j) Reclassifications
At November 30, 1995, the International Growth Portfolio reclassified
approximately $932,000 from net
53
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
May 31, 1996
(Unaudited)
realized gain on foreign currency transactions to accumulated undistributed net
investment income. This reclassification had no impact on the net asset value
of the Portfolio and is designed to present the Portfolio's capital accounts on
a tax basis.
3. ADVISORY, TRANSFER AGENCY AND CUSTODIAN AGREEMENTS
The Trust has an investment advisory agreement with Northern whereby each
portfolio pays Northern a fee, computed daily and payable monthly, based on a
specified percentage of its average daily net assets. For the current fiscal
year, Northern voluntarily agreed to waive a portion of the advisory fee for
each portfolio. The annual advisory fees and waiver rates, expressed as a
percentage of average daily net assets, and the amount of fees waived by
Northern for the six months ended May 31, 1996, are as follows:
<TABLE>
<CAPTION>
Net Advisory
Advisory Less: Advisory Fees
Fee Waiver Fee Waived
- -------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Balanced .80% .30% .50% $ 66
Diversified Growth .80 .25 .55 182
Equity Index .30 .20 .10 566
Focused Growth 1.10 .30 .80 141
International Growth 1.00 .20 .80 136
Small Company Index .40 .20 .20 102
- -------------------------------------------------------------
</TABLE>
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, of the portfolios.
As compensation for the services rendered as custodian, 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
The Trust has an administration agreement with Goldman Sachs whereby each
portfolio pays the Administrator a fee, computed daily and payable monthly,
based on the average net assets of each portfolio at the rates set forth below:
<TABLE>
<CAPTION>
Average net assets Rate
- --------------------------------------
<S> <C>
For the first $100,000,000 .250
For the next $200,000,000 .150
For the next $450,000,000 .075
For net assets over $750,000,000 .050
- --------------------------------------
</TABLE>
For the current fiscal year, Goldman Sachs voluntarily agreed to limit
administration fees to .10% of average daily net assets for each portfolio. In
addition, Goldman Sachs agreed to waive a portion of its administrative fees
should overall administration fees earned during the preceding year exceed
certain specified levels. Furthermore, Goldman Sachs has agreed to reimburse
each portfolio for certain expenses in the event that such expenses, as
defined, exceed on an annualized basis .10% of its average daily net assets for
the Balanced, Diversified Growth, Equity Index, Focused Growth and Small
Company Index Portfolios and .25% of its average daily net assets for the
International Growth Portfolio.
A summary of the administration fees waived and expense reimbursements for the
six months ended May 31, 1996 were as follows:
<TABLE>
<CAPTION>
Administration Expense
Fees Waived Reimbursements
- ---------------------------------------------------
(in thousands)
<S> <C> <C>
Balanced $33 $ 35
Diversified Growth 86 55
Equity Index 92 139
Focused Growth 72 42
International Growth 85 12
Small Company Index 67 58
- ---------------------------------------------------
</TABLE>
Goldman Sachs receives no compensation under the distribution agreement.
54
<PAGE>
- --------------------------------------------------------------------------------
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 at an annual rate of up to .10%,
.15% and .25% of the average daily net asset value of the outstanding Class B,
C and D units, respectively. These fees are included in other expenses on the
Statements of Operations.
6. FUTURES CONTRACTS
Each portfolio may invest in long equity index or currency futures contracts to
maintain liquidity or short futures contracts for hedging purposes. The
portfolios bear the market risk arising from changes in the value of these
financial instruments. At the time a portfolio enters into a futures contract
it is required to make a margin deposit with the custodian of a specified
amount of cash or eligible securities. Subsequently, as the market price of the
futures contract fluctuates, gains or losses are recorded and payments are
made, on a daily basis, between the portfolio and the broker. The Statements of
Operations reflects gains and losses as realized for closed futures contracts
and as unrealized for open contracts.
At May 31, 1996, the Equity Index and Small Company Index Portfolios had
entered into long exchange traded futures contracts. The aggregate market value
of investments pledged to cover margin requirements for open positions at May
31, 1996 was approximately $1,196,000 and $60,000 for the Equity Index and
Small Company Index Portfolios, respectively.
7. OPTIONS CONTRACTS
Each Portfolio may purchase and write (sell) put and call options on, foreign
and domestic stock indices, foreign currencies and U.S. and foreign securities
that are traded on U.S. and foreign securities exchanges and over-the-counter
markets. These transactions are for hedging (or cross-hedging) purposes or for
the purpose of earning additional income.
The risk associated with purchasing an option is that the portfolio pays a
premium whether or not the option is exercised. Additionally, the portfolio
bears the risk of loss of premium and change in market value should the
counterparty not perform under the contract. Put and call options purchased are
accounted for in the same manner as portfolio securities. The cost of
securities acquired through the exercise of call options is increased by
premiums paid. The proceeds from securities sold through the exercise of put
options are decreased by the premiums paid.
When the portfolio writes an option, the premium received by the portfolio is
recorded as a liability and is subsequently adjusted to the current market
value of the option written. Premiums received from writing options which
expire unexercised are recorded by the portfolio on the expiration date as
realized gains from investment transactions. The difference between the premium
and the amount paid on effecting a closing purchase transaction, including
brokerage commissions, is also treated as a realized gain, or if the premium is
less than the amount paid for the closing purchase transaction, as a realized
loss. If a call option is exercised, the premium is added to the proceeds from
the sale of the underlying security or currency in determining whether the
portfolio has realized a gain or loss. If a put option is exercised, the premium
reduces the cost basis of the security or currency purchased by the portfolio.
In writing an option, the portfolio bears the market risk of an unfavorable
change in the price of the security or currency underlying the written option.
Exercise of an option written by the portfolio could result in the portfolio
55
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
May 31, 1996
(Unaudited)
selling or buying a security or currency at a price different from the current
market value. Transactions in call options written for the six months ended May
31, 1996 for the Balanced and Focused Growth Portfolios were as follows:
<TABLE>
<CAPTION>
Balanced Focused Growth
------------------------ ------------------------
Number of Premiums Number of Premiums
Contracts (in thousands) Contracts (in thousands)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Options outstanding at
beginning of year -- $ -- -- $ --
Options written 1,036 126 5,083 678
Options terminated in
closing purchase
transactions (272) (57) (1,669) (250)
Options expired (345) (28) (2,122) (250)
- ------------------------------------------------------------------------------
Options Outstanding, end of
period 419 41 1,292 178
- ------------------------------------------------------------------------------
</TABLE>
The portfolio did not write put options during the six months ended May 31,
1996.
8. INVESTMENT TRANSACTIONS
Investment transactions for the six months ended May 31, 1996 (excluding short-
term investments, futures and options contracts) 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>
Balanced $16,020 $12,219 $13,683 $ 8,437
Diversified Growth -- 35,674 -- 54,487
Equity Index -- 112,665 -- 34,209
Focused Growth -- 78,671 -- 67,302
International Growth -- 151,199 -- 177,833
Small Company Index -- 14,169 -- 6,092
- -------------------------------------------------------------------
</TABLE>
On May 31, 1996 the composition of unrealized appreciation (depreciation) of
investment securities (including the effects of foreign currency translation)
and the aggregate cost of investments for federal income tax purposes was as
follows:
<TABLE>
<CAPTION>
Cost for
Federal
Income
Net Tax
Appreciation Depreciation Appreciation purposes
- ---------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Balanced $ 5,435 $ 568 $ 4,867 $40,885
Diversified Growth 27,946 769 27,177 117,231
Equity
Index 145,963 11,403 134,560 512,012
Focused Growth 18,366 1,005 17,361 90,673
International Growth 6,714 2,234 4,480 132,513
Small Company
Index 33,247 8,011 25,236 92,999
- ---------------------------------------------------------------------
</TABLE>
9. BANK LOANS
The Trust maintains a $5,000,000 revolving bank credit line and a $15,000,000
conditional revolving credit line for liquidity and other purposes. Borrowings
under this arrangement bear interest at 1% above the Fed Funds rate and are
secured by pledged securities equal to or exceeding 120% of the outstanding
balance.
Interest expense for the six months ended May 31, 1996 was approximately
$12,000, $2,000, $9,000, and $2,000, for the Equity Index, Focused Growth,
International Growth, and Small Company Index Portfolios, respectively. These
amounts are included in other expenses on the Statements of Operations.
As of May 31, 1996, there were no outstanding borrowings.
56
<PAGE>
- --------------------------------------------------------------------------------
10. UNIT TRANSACTIONS
Transactions in Class A units for the six months ended May 31, 1996 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- -----------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Balanced 412 41 363 90
Diversified Growth 801 290 2,013 (922)
Equity Index 13,973 1,386 9,645 5,714
Focused Growth 1,794 117 792 1,119
International Growth 1,736 230 3,780 (1,814)
Small Company
Index 1,317 515 785 1,047
- -----------------------------------------------------------------
</TABLE>
Transactions in Class A units for the year ended November 30, 1995 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- -----------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Balanced 1,054 114 959 209
Diversified Growth 3,123 128 7,920 (4,669)
Equity Index 17,925 1,174 11,059 8,040
Focused Growth 2,560 10 1,605 965
International Growth 6,479 97 4,573 2,003
Small Company
Index 1,491 451 1,736 206
- -----------------------------------------------------------------
</TABLE>
Transactions in Class C units for the six months ended May 31, 1996 were as
follows:
<TABLE>
<CAPTION>
Reinvested Net
Sales distributions Redemptions increase
- ------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Balanced 452 4 25 431
Equity Index 596 43 563 76
- ------------------------------------------------------
</TABLE>
Transactions in the Class C units (in thousands) for the period ended November
30, 1995, were sales of 1,353 units; reinvested distributions of 7 units, and
redemptions of 31 units, resulting in a net unit increase of 1,329 units, for
the Equity Index Portfolio.
Transactions in Class D units for the six months ended May 31, 1996 were as
follows:
<TABLE>
<CAPTION>
Reinvested Net
Sales distributions Redemptions increase
- --------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Balanced 1 -- -- 1
Diversified Growth 5 1 4 2
Equity Index 58 2 21 39
Focused Growth 7 1 7 1
International Growth 6 -- -- 6
Small Company
Index 3 1 -- 4
- --------------------------------------------------------------
</TABLE>
Transactions in Class D units for the period ended November 30, 1995 were as
follows:
<TABLE>
<CAPTION>
Reinvested Net
Sales distributions Redemptions increase
- ------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Diversified Growth 17 -- 3 14
Equity Index 58 1 1 58
Focused Growth 39 -- -- 39
Small Company
Index 3 -- -- 3
- ------------------------------------------------------------
</TABLE>
57
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
THE BENCHMARK FUNDS
Investment Adviser, Transfer Agent and Custodian
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.
Frederick T. Kelsey
Richard P. Strubel
Officers
Paul W. Klug, Jr., 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
Legal Counsel
Drinker Biddle & Reath
1345 Chestnut Street
Philadelphia, PA 19107
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
Equity
Portfolios
Semi-Annual Report
May 31, 1996
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
MARKET VIEW
WHAT HAS CHANGED
While we successfully steered clear of misleading recession signals early in
the year, our insights were less rewarding in the latest quarter as the economy
strengthened faster and by more than we had anticipated. In April, we were
forecasting first half growth of 1.5% whereas now we see this growth running
around 3.0%. Earlier, we thought that Federal Reserve ("Fed") tightening would
not occur until early 1997, but we now believe that it could be brought forward
into this year. The stronger economy prompted a sharper-than-expected sell-off
in bonds, causing equities to mark time for the past five months. At present,
Treasury yields seem to have found a comfort range amid ongoing debate about
the Fed's ability to maintain the full employment-low inflation zone recently
achieved.
ECONOMIC PICK UP IN EVIDENCE
The U.S. economy is developing a self-perpetuating growth dynamic. Because
accommodative monetary policies are being followed in many other industrialized
countries, foreign demand is expected to amplify this recent trend. Although we
do not foresee boom-like conditions on the horizon, left unchecked, this faster
growth could lead to modest upward pressure on the underlying inflation rate.
Historically, sustained periods of unemployment below the current 5.5% rate
have been associated with rising consumer inflation. Given the momentum that
the economy is building, we believe that the unemployment rate will move below
its present level.
Fed officials have indicated in their official forecast that they expect
today's higher interest rate structure to slow the economy's growth in the
second half of this year. The interest-sensitive sectors of housing and
consumer durables are the prime candidates to weaken. With foreign demand
expected to augment domestic demand, we are skeptical that the economy will
slow enough to alleviate inflationary pressures unless the Fed undertakes some
modest tightening actions. We think that in the second half of 1996 the Fed
will start to tighten monetary policy in order to prevent inflationary
pressures from building. This tightening is likely to be of the fine-tuning
variety, which will result in a slowing in economic activity sufficient to
alleviate inflationary pressures, but will not result in a recession over the
next 12 to 18 months.
Because inflation psychology has been largely eliminated from the economy,
speculative excesses have not developed in this extended business cycle.
Although households in general may not yet be overburdened with debt, clearly
financial stresses are mounting, as evidencing by the highest credit card
delinquency rates in 15 years. Tightening credit standards are likely to
moderate consumer spending growth, thereby reinforcing the more restrictive Fed
policy we expect. Because of these factors, we believe that the Fed will need
to raise the federal funds rate by only 50 to 75 basis points to accomplish its
goal. It very well may be that a year from now, the Fed will be contemplating a
cut in rates.
BOND VOLATILITY TO CONTINUE; MONEY MARKET OFFERS VALUE
Although we believe that secular forces and the Fed will keep inflation well-
contained, we realize that cyclical forces are currently strong enough to test
our faith. As a result, interest rate volatility is expected to remain high, as
faster-than-forecast growth in the first half of the year has damaged market
psychology. However, the market's ability to absorb "bad" news is improving and
supports our belief that the economy's near term strength is largely reflected
in the existing interest rate structure. If, as we expect, the pace of activity
returns to a more moderate growth track in the year's second half, longer
horizon bond investors should be rewarded for waiting out the turbulence.
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 amount invested.
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
MARKET VIEW--CONTINUED
Chairman Greenspan's official re-appointment strengthens our faith in the
Fed's inflation fighting resolve. We believe Greenspan would like to leave as
his legacy an economic landscape where inflation is not a consideration in
making decisions. When viewed from this perspective, the current economic
environment poses some immediate challenges. Worries that above-trend growth
will ignite inflation have investors expecting a Fed tightening sometime in the
next quarter. Importantly, behavior such as this year's market correction in
anticipation of future tightening lessens the actual need for the Fed to act.
In an environment where the market is out in front, the monetary authorities
may only need to fine tune policy.
Our continued characterization of the bond market as normal recognizes that
the near-term obstacles to price appreciation are formidable. However, we
believe that fears of the impact of any Fed tightening are overdone and that
growth and inflation in the second half of 1996 will not move bond prices
appreciably from current levels. Over an intermediate horizon, we continue to
believe that, with real yields near 4.0%, the bond market offers value.
In the wake of the second quarter's further backup in rates, we feel that the
money market sector offers value as well. A spread of approximately 100 basis
points between overnight and two-year investments provides reasonable
compensation for investors willing to tolerate some price volatility in the
coming months. We continue to feel that investments can be made in longer cash
instruments given favorable real returns and the positive slope of the cash
yield curve. However, absent information suggesting slower growth, we recognize
that the market's bias remains towards higher short-term rates. We therefore
suggest that investments in longer cash instruments be made cautiously, since
volatility is likely to remain high in this election year.
GLOBAL MARKETS ARE APPEALING
Despite a strong first quarter in Japan and a good recovery in France, economic
growth has been subdued in the major economies during the early part of 1996.
However, most of Europe is expecting gradual improvement over the next eighteen
months, while Japanese projections continue to focus on a gradual recovery that
will soon become self-sustaining.
In the global bond markets, Germany and Japan have outperformed the U.S. by a
considerable margin this year, due to their lagging domestic economies and
favorable inflation differentials. These fundamentals could begin to reverse or
at least stabilize by year-end as inflation expectations improve. Within
Europe, the convergence trend should continue. We see little risk that growth
in Germany will strengthen enough to alter monetary policy and expect the
political drive towards Economic and Monetary Union to remain strong. Thus, the
peripheral markets of Italy, Spain and Sweden continue to look attractive in
spite of their spectacular 1996 run.
From an equity standpoint, we believe global markets hold greater appeal than
the U.S. for two primary reasons. First, most global stocks have lagged the
broad U.S. market rally of the past eighteen months. Thus, prices are not as
extended, especially compared to bonds which have been much better behaved in
both Europe and Japan. The fact that these bull markets are younger argues for
greater staying power since they face fewer constraints relative to fixed
income alternatives. Second, valuations are less stretched compared with the
U.S. as only Hong Kong is approaching an area of historic high valuation.
Given our view that the dollar is late in its rally, foreign markets look set
to outperform the U.S. market in dollar terms. After a twelve-month head wind
of falling currency values, global investors may be set to enjoy positive
returns in both local currencies and in dollars. While we do not expect a sharp
dollar decline unless an unsettled political event occurs this fall, we do see
some retracement of the past twelve months' gains. Coupled with a better
earnings environment in Japan this year and next, and a recovery in Europe in
1997, fundamental support for foreign markets seems strong.
July 8, 1996
2
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- ---------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ---------------------------------------------------------
BOND PORTFOLIO
<C> <C> <S> <C> <C> <C> <C> <C>
ASSET-BACKED SECURITIES--0.5%
AUTOMOTIVE--0.4%
General Motors
Acceptance Corp.
Class A, Series:
1993-B
$ 1,430 4.000% 09/15/98 $ 1,411
HOME EQUITY LOANS--0.1%
U.S. Home Equity
Loan, Series: 1991-2
171 8.500 04/15/21 173
- ---------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $1,599) $ 1,584
- ---------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--
4.6%
Capstead Securities
Corp.
Class XII-B, Series:
1992-XII
$ 1 8.325% 11/25/05 $ 1
Delta Funding Corp.,
Interest Only
Stripped Security,
Class A-4, Series:
1991-1*
-- -- 01/01/06 333
DLJ Mortgage
Acceptance Corp.,
Series 1994-Q8
6,863 7.250 05/25/24 6,799
DLJ Mortgage
Acceptance Corp.,
Adjustable Rate,
Interest Only
Stripped Security,
Series 1995-QE9*
-- -- 11/25/25 2,475
GE Capital Mortgage
Services Inc.
Class A-13, Series:
1994-4
4,637 5.720 01/25/24 2,358
Prudential Home
Mortgage Securities,
Adjustable Rate,
Interest Only
Stripped Security
Class A-18, Series:
1994-8*
-- -- 04/25/25 1,296
Residential Funding
Mortgage Securities,
Adjustable Rate,
Interest Only
Stripped Security
Class A-14, Series:
1993-S22*
-- -- 06/25/23 2,093
- ---------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (Cost $15,975) $ 15,355
- ---------------------------------------------------------
CORPORATE BONDS--9.9%
BROKERAGE SERVICES--2.9%
Salomon Inc.
$ 9,450 8.000% 03/28/97 $ 9,570
FINANCIAL--1.4%
General Motors
Acceptance Corp.
4,285 8.875 06/01/10 4,730
</TABLE>
<TABLE>
<CAPTION>
Description
- ---------------------------------------
Principal Maturity
Amount Rate Date Value
- ---------------------------------------
<C> <C> <S> <C>
INSURANCE SERVICES--3.4%
Equitable Life
Insurance
$ 3,000 7.700% 12/01/15 $ 2,883
Ohio National Life
8,500 8.500 05/15/26 8,147
--------
11,030
SUPRA-NATIONAL--2.2%
International
American
Development Bank
200 8.875 06/01/09 226
6,400 8.400 09/01/09 7,088
--------
7,314
- ---------------------------------------
TOTAL CORPORATE BONDS (Cost
$33,345) $ 32,644
- ---------------------------------------
U.S. GOVERNMENT AGENCIES--
19.3%
COLLATERALIZED MORTGAGE OBLIGATIONS--
14.8%
FEDERAL HOME LOAN MORTGAGE CORP.
MULTICLASS--0.0%
Class 1392-S,
Series: 1392
$ 1,534 4.063% 09/15/18 $ 44
FEDERAL HOME LOAN MORTGAGE
CORP. MULTICLASS
PRINCIPAL ONLY STRIPPED SE-
CURITIES*--4.2%
Class B, Series:
G011
912 -- 04/25/23 561
Class D, Series:
1571
13,511 -- 08/15/23 7,373
Class PD, Series:
1750-C
10,365 -- 03/15/24 6,036
--------
13,970
FEDERAL NATIONAL MORTGAGE ASSOCIATION
REMIC TRUST--5.3%
Class 3-D, Series:
1990-3
1,415 8.500 07/25/18 1,442
Class C, Series:
1991-140
603 8.500 05/25/20 602
Class G, Series:
1992-73
7,500 7.500 04/25/21 7,523
Class L, Series:
1993-184,
Principal Only
Stripped Security*
7,586 -- 09/25/23 4,311
Class SA, Series:
1991-127
765 12.561 09/25/98 770
Class SB, Series:
1994-59
6,364 2.282 03/25/24 2,883
--------
17,531
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(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
INTEREST ONLY STRIPPED SE-
CURITY*--0.2%
Class S, Series:
G-12
$ -- -- 05/25/21 $ 632
FEDERAL NATIONAL MORTGAGE
ASSOCIATION REMIC TRUST
PRINCIPAL ONLY STRIPPED SE-
CURITIES*--5.1%
Class B, Series:
1993-146
6,300 -- 05/25/23 5,912
Class B, Series:
1993-161
6,066 -- 10/25/18 5,630
Class D, Series:
1993-132
1,984 -- 10/25/22 1,064
Class EA, Series:
1993-205
3,150 -- 09/25/23 1,799
Class G, Series:
1994-9
2,448 -- 11/25/23 2,237
--------
16,642
MORTGAGE-BACKED SECURITIES--
4.5%
FEDERAL HOME LOAN MORTGAGE CORP.--
0.0%
Series: 2026
$ 1 6.500% 06/01/04 $ 1
GOVERNMENT NATIONAL MORTGAGE ASSOCIA-
TION--4.5%
15,806 7.000 04/15/26 15,041
--------
15,042
- ---------------------------------------
TOTAL U.S. GOVERNMENT AGEN-
CIES
(Cost $62,673) $ 63,861
- ---------------------------------------
U.S. GOVERNMENT OBLIGATIONS--49.6%
U.S. TREASURY NOTES--45.0%
$ 7,000 7.250% 11/15/96 $ 7,054
14,310 6.750 02/28/97 14,417
13,600 6.750 05/31/99 13,706
38,745 6.875 08/31/99 39,151
14,000 7.750 01/31/00 14,532
18,100 5.750 08/15/03 17,045
41,705 7.500 02/15/05 43,413
--------
149,318
U.S. TREASURY BONDS--4.6%
1,000 8.000 11/15/21 1,094
14,155 7.125 02/15/23 14,084
--------
15,178
- ---------------------------------------
TOTAL U.S. GOVERNMENT OBLI-
GATIONS
(Cost $169,375) $164,496
- ---------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- ---------------------------------------
Principal Maturity
Amount Rate Date Value
- ---------------------------------------
<C> <C> <S> <C>
FLOATING RATE BANK NOTES--
9.3%
Hong Kong and
Shanghai Bank
$ 7,515 5.563% 08/23/96 $ 6,340
Lloyds Bank PLC
11,450 5.875 06/13/96 10,005
National Australia
Bank
3,150 5.806 10/15/96 2,695
National
Westminster Bank
13,800 5.625 08/30/96 11,896
- ---------------------------------------
TOTAL FLOATING RATE BANK
NOTES
(Cost $30,313) $ 30,936
- ---------------------------------------
EURODOLLAR TIME DEPOSIT--
5.4%
Banque Brussels
Lambert, Grand
Cayman
$17,996 5.438% 06/03/96 $ 17,996
- ---------------------------------------
TOTAL EURODOLLAR TIME DE-
POSIT
(Cost $17,996) $ 17,996
- ---------------------------------------
TOTAL INVESTMENTS--98.6%
(Cost $331,276) $326,872
- ---------------------------------------
Other assets, less
liabilities--1.4% 4,560
- ---------------------------------------
NET ASSETS--100.0% $331,432
- ---------------------------------------
- ---------------------------------------
</TABLE>
*At May 31, 1996, yields on these securities ranged from approximately 6.00% to
14.00%. Refer to notes to statements of investments for a discussion of
stripped securities.
See accompanying notes to financial statements.
4
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Principal Amount/ Maturity
Local Currency Rate Date Value
- ------------------------------------------------------
INTERNATIONAL BOND PORTFOLIO
<C> <C> <S> <C>
DEBT OBLIGATIONS--94.4%
AUSTRALIAN DOLLAR--6.6%
Commonwealth of
Australia
1,580 10.000% 10/15/02 $ 1,339
Province of
Queensland--
Treasury
950 8.000 05/14/97 760
-------
2,099
BELGIAN FRANC--1.9%
Kingdom of Belgium
18,275 7.500 07/29/08 603
BRITISH POUND STERLING--10.3%
Abbey National PLC
825 6.000% 08/10/99 1,230
Treasury of United
Kingdom
1,295 8.000 06/10/03 2,018
-------
3,248
CANADIAN DOLLAR--8.2%
Dominion of Canada
1,075 7.500 12/01/03 786
Province of Ontario
1,050 7.250 09/27/05 727
Province of Quebec
1,325 10.250 10/15/01 1,085
-------
2,598
DANISH KRONE--5.6%
Kingdom of Denmark
10,100 8.000 03/15/06 1,772
FRENCH FRANC--9.3%
Electricite de
France
6,200 8.600 04/09/04 1,361
Republic of France
3,000 8.500 03/12/97 598
4,600 8.250 02/27/04 999
-------
2,958
GERMAN MARK--14.3%
Federal Republic of
Germany
1,795 6.250 01/04/24 1,037
</TABLE>
<TABLE>
<CAPTION>
Description
- ------------------------------------------------
Principal Amount/ Maturity
Local Currency Rate Date Value
- ------------------------------------------------
<C> <C> <S> <C>
LKB Global Bond
1,500 6.000% 05/10/99 $ 1,022
Republic of Austria
1,670 8.000 01/30/02 1,204
Republic of Finland
1,920 5.500 02/09/01 1,266
-------
4,529
ITALIAN LIRA--7.9%
Republic of Italy
4,000,000 8.500 04/01/04 2,489
JAPANESE YEN--14.9%
Asian Development
Bank
90,000 5.000 02/05/03 936
European Bank for
Reconstruction and
Development
95,000 5.875 11/26/99 995
International Bank
for
Reconstruction and
Development
100,000 4.500 03/20/03 1,011
Japan Development
Bank
160,000 6.500 09/20/01 1,770
-------
4,712
NETHERLANDS GUILDER--3.5%
Kingdom of the
Netherlands
1,675 8.500 03/15/01 1,110
NEW ZEALAND DOLLAR--3.8%
Government of New
Zealand
1,850 8.000 02/15/01 1,204
SPANISH PESETA--4.2%
Kingdom of Spain
35,000 11.450 08/30/98 291
120,000 11.300 01/15/02 1,032
-------
1,323
SWEDISH KRONA--3.9%
Kingdom of Sweden
7,400 10.250 05/05/03 1,221
- ------------------------------------------------
TOTAL DEBT OBLIGATIONS
(Cost $28,771) $29,866
- ------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- ---------------------------------------
Principal Maturity
Amount Rate Date Value
- ---------------------------------------
INTERNATIONAL BOND PORTFOLIO--CONTINUED
<C> <C> <S> <C>
EURODOLLAR TIME DEPOSIT--
2.4%
UNITED STATES DOLLAR
Banque Brussels
Lambert, Grand
Cayman
$ 781 5.438% 06/03/96 $ 781
- ---------------------------------------
TOTAL EURODOLLAR TIME DE-
POSIT
(Cost $781) $ 781
- ---------------------------------------
TOTAL INVESTMENTS--96.8%
(Cost $29,552) $30,647
- ---------------------------------------
Other assets, less liabil-
ities--3.2% 999
- ---------------------------------------
NET ASSETS--100.0% $31,646
- ---------------------------------------
- ---------------------------------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------------
<C> <C> <S> <C> <C> <C> <C> <C>
SHORT DURATION PORTFOLIO
ASSET-BACKED SECURITY--3.1%
Bristol Oaks L.P.
Receivables Master
Trust, Series: 94-
1A
$1,416 5.856% 07/10/99 $ 1,417
- ------------------------------------------------------
TOTAL ASSET-BACKED SECURITY
(Cost $1,416) $ 1,417
- ------------------------------------------------------
FLOATING RATE NOTES--5.4%
Nationsbank Corp.
$1,000 5.880% 03/27/98 $ 1,001
USL Capital Corp.
Series D
1,500 5.670 04/19/99 1,492
- ------------------------------------------------------
TOTAL FLOATING RATE NOTES
(Cost $2,501) $ 2,493
- ------------------------------------------------------
U.S. GOVERNMENT OBLIGATION--10.8%
U.S. TREASURY NOTE--10.8%
$5,000 5.969% 03/31/98 $ 4,993
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION
(Cost $5,015) $ 4,993
- ------------------------------------------------------
COMMERCIAL PAPER--57.4%
ASSET-BACKED SECURITIES--17.6%
Ascot Capital
Corp.
$1,000 5.363% 06/14/96 $ 998
Atlantic Asset
Securitization
Corp.
400 5.344 06/05/96 400
500 5.351 06/11/96 499
Barton Capital
Corp.
867 5.352 06/03/96 867
500 5.325 06/21/96 498
Corporate
Receivables Corp.
1,000 5.314 06/07/96 999
CXC Inc.
401 5.331 06/11/96 400
Old Line Funding
639 5.362 06/24/96 637
Pooled Account
Receivables Corp.
300 5.305 06/04/96 300
500 5.344 06/20/96 499
Stellar Capital
Corp.
1,000 5.450 07/18/96 993
Tri Lateral
Capital (USA),
Inc.
500 5.476 08/01/96 495
WCP Funding, Inc.
100 5.337 06/13/96 100
</TABLE>
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------------
<C> <C> <S> <C> <C> <C> <C> <C>
Wood Street
Funding Corp.
$ 400 5.350% 07/08/96 $ 397
-------
8,082
CHEMICALS AND ALLIED PRODUCTS--2.2%
Smithkline
Beecham Corp.
1,000 5.327 06/25/96 996
COMMUNICATIONS--4.2%
AT&T Capital
Corp.
250 5.368 06/07/96 250
GTE Corp
500 5.416 06/19/96 499
500 5.381 06/24/96 498
U.S. West
Communications,
Inc.
700 5.347 06/03/96 700
-------
1,947
CONSTRUCTION, INDUSTRIAL
MACHINES AND COMPUTER
EQUIPMENT--2.9%
Caterpillar
Financial
Services Corp.
400 5.379 06/21/96 399
Hewlett-Packard
Co.
333 5.325 06/04/96 333
600 5.405 07/23/96 595
-------
1,327
ELECTRONIC AND OTHER
ELECTRICAL COMPONENTS--
2.4%
General Electric
Capital Corp.
800 5.503 06/03/96 800
200 5.293 06/21/96 199
100 5.293 06/27/96 100
-------
1,099
FOOD AND KINDRED PRODUCTS--
4.8%
Cofco Capital
Corp.
1,000 5.368 06/20/96 997
Pepsico, Inc.
250 5.313 06/06/96 250
Thames Asset
Global
Securitization
No.1, Inc.
1,000 5.475 08/30/96 987
-------
2,234
HOLDING AND OTHER
INVESTMENT OFFICES--2.5%
Aesop Funding
Corp.
300 5.386 06/20/96 299
CSW Credit, Inc.
585 5.319 06/13/96 584
Ranger Funding
Corp.
250 5.412 07/17/96 248
-------
1,131
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- --------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------
<C> <C> <S> <C> <C> <C> <C>
SHORT DURATION PORTFOLIO--CONTINUED
COMMERCIAL PAPER--CONTINUED
INSURANCE CARRIERS--5.4%
Copley Financing
Corp.
$ 500 5.383% 06/10/96 $ 499
Equitable of Iowa
Cos.
1,000 5.408 06/06/96 999
John Hancock
Capital Corp.
1,000 5.364 07/11/96 994
-------
2,492
MISCELLANEOUS MANUFACTURING
INDUSTRIES--2.2%
Hanson Finance
(U.K.) PLC
1,000 5.464 07/17/96 993
MISCELLANEOUS RETAIL--0.7%
B.A.T. Capital
Corp.
325 5.322 06/13/96 324
NONDEPOSITORY BUSINESS
CREDIT INSTITUTIONS--4.4%
Associates Corp.
of North America
1,000 5.502 06/03/96 1,000
Countrywide
Funding Corp.
1,000 5.423 07/24/96 992
-------
1,992
SECURITY AND COMMODITY
BROKER/DEALERS--4.1%
Lehman Brothers
Holdings, Inc.
800 5.423 08/27/96 789
Merrill Lynch &
Co., Inc.
100 5.293 06/27/96 100
1,000 5.361 08/27/96 987
-------
1,876
TRANSPORTATION--4.0%
American Honda
Finance Corp.
1,000 5.421 06/27/96 996
USL Capital Corp.
1,000 5.373 06/06/96 999
-------
1,995
- --------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost $26,488) $26,488
- --------------------------------------------------
EURODOLLAR TIME DEPOSIT--1.4%
Berliner Handels
Und Frankfurter,
Grand Cayman
$ 644 5.500% 06/03/96 $ 644
- --------------------------------------------------
TOTAL EURODOLLAR TIME DEPOSIT
(Cost $644) $ 644
- --------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------------
<C> <C> <S> <C>
REPURCHASE AGREEMENTS--23.9%
SBC Capital Markets, Dated 5/31/96
Repurchase Price $8,004
(Collateralized by U.S. Government
Securities)
$8,000 5.320% 06/03/96 $ 8,000
SBC Capital Markets, Dated 5/31/96
Repurchase Price $3,001
(Collateralized by U.S. Government
Securities)
3,000 5.350 06/03/96 3,000
- --------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $11,000) $11,000
- --------------------------------------------------------
TOTAL INVESTMENTS--102.0%
(Cost $47,064) $47,035
- --------------------------------------------------------
Liabilities, less other assets--(2.0)% (925)
- --------------------------------------------------------
NET ASSETS--100.0% $46,110
- --------------------------------------------------------
- --------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------------
SHORT-INTERMEDIATE BOND PORTFOLIO
ASSET-BACKED SECURITIES--8.7%
AUTOMOTIVE--8.7%
<C> <C> <S> <C>
Olympic Automobile
Receivables Trust
$4,000 5.950% 11/15/99 $ 3,983
3,300 7.875 07/15/01 3,368
Olympic Automobile
Receivables Trust,
Interest Only
Stripped Security*
-- -- 01/15/99 2,672
Premier Auto Trust
3,489 4.750 02/02/00 3,459
Western Financial
Automobile Loan
Trust
1,014 4.700 01/01/98 1,008
2,041 7.100 01/01/00 2,060
- --------------------------------------------------------
TOTAL ASSET-BACKED SECURI-
TIES
(Cost $16,578) $16,550
- --------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATION--1.5%
DLJ Mortgage
Acceptance Corp.
$2,951 7.250% 05/25/24 $ 2,923
- --------------------------------------------------------
TOTAL COLLATERALIZED MORT-
GAGE
OBLIGATION (Cost $2,897) $ 2,923
- --------------------------------------------------------
CORPORATE OBLIGATIONS--10.5%
BROKERAGE SERVICES--5.8%
Salomon Brothers
Inc. Medium Term
Notes
$3,000 5.500% 01/31/98 $ 2,935
2,000 5.700 02/11/98 1,961
Donaldson Lufkin &
Jenrette Inc.
Medium Term Note
6,500 5.625 02/15/16 6,169
-------
11,065
FINANCIAL--4.7%
Associates Corp.
of North America
1,795 4.750 08/01/96 1,792
Greyhound
Financial Corp.
3,590 8.250 03/11/97 3,644
</TABLE>
<TABLE>
<CAPTION>
Description
- ------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------
<C> <C> <S> <C>
Transamerica Financial
Group, Inc.
$ 3,565 8.550% 06/15/96 $ 3,567
--------
9,003
- ------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(Cost $20,453) $ 20,068
- ------------------------------------------------
U.S. GOVERNMENT AGENCIES--7.9%
COLLATERALIZED MORTGAGE OBLIGATIONS
FEDERAL HOME LOAN MORTGAGE ASSOCIA-
TION
REMIC TRUST PRINCIPAL ONLY*--3.2%
Class BA, Series: 1571
$ 6,640 -- 04/15/19 $ 6,040
FEDERAL NATIONAL MORTGAGE ASSOCIATION
REMIC TRUST PRINCIPAL ONLY*--4.7%
Class A, Series: 1995-11
6,000 -- 01/25/24 4,297
Class B, Series: 1993-161
1,517 -- 10/25/18 1,408
Class B, Series: 1993-146
1,053 -- 05/25/23 988
Class G, Series: 1994-9
2,447 -- 11/25/23 2,237
--------
8,930
- ------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $13,288) $ 14,970
- ------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--66.8%
U.S. TREASURY NOTES--66.8%
$ 9,565 6.750% 02/28/97 $ 9,638
10,000 5.375 11/30/97 9,897
7,000 5.625 01/31/98 6,940
12,000 5.125 03/31/98 11,779
8,000 5.375 05/31/98 7,871
2,000 5.125 11/30/98 1,944
42,600 6.750 05/31/99 42,933
13,675 6.875 08/31/99 13,818
18,000 7.750 01/31/00 18,683
4,000 5.500 12/31/00 3,825
- ------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $128,398) $127,328
- ------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------------------
SHORT-INTERMEDIATE BOND PORTFOLIO--CONTINUED
<C> <C> <S> <C>
EURODOLLAR TIME DEPOSIT--
3.8%
Banque Brussels
Lambert, Grand
Cayman
$ 7,294 5.438% 06/03/96 $ 7,294
- --------------------------------------------------------------
TOTAL EURODOLLAR TIME DE-
POSIT
(Cost $7,294) $ 7,294
- --------------------------------------------------------------
TOTAL INVESTMENTS--99.2%
(Cost $188,908) $189,133
- --------------------------------------------------------------
Other assets, less
liabilities--0.8% 1,499
- --------------------------------------------------------------
NET ASSETS--100.0% $190,632
- --------------------------------------------------------------
- --------------------------------------------------------------
</TABLE>
*At May 31, 1996, the yields on these securities ranged from approximately
6.00% to 8.50%. Refer to notes to statements of investments for a discussion of
stripped securities.
See accompanying notes to financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ----------------------------------------------
Principal Maturity
Amount Rate Date Value
- ----------------------------------------------
U.S. GOVERNMENT SECURITIES PORTFOLIO
U.S. GOVERNMENT AGENCIES--20.1%
COLLATERALIZED MORTGAGE OBLIGATIONS--12.0%
FEDERAL HOME LOAN MORTGAGE CORPORATION--1.1%
<C> <C> <S> <C>
Class F, Series:
1230
$ 238 6.500% 05/15/04 $ 238
Class F, Series:
1520
750 5.650 09/15/04 730
-------
968
FEDERAL NATIONAL MORTGAGE ASSOCIATION
REMIC TRUST--10.9%
Class PD, Series:
1993-085
4,700 5.500 07/25/03 4,629
Class EZ, Series:
1993-133
3,522 5.850 02/25/17 3,344
Class E, Series:
1992-200
1,000 6.250 06/25/17 984
Class 14-F,
Series: 1988-14
369 9.200 12/25/17 382
Class A, Series:
1995-11*
925 -- 01/25/24 663
-------
10,002
MORTGAGE-BACKED SECURITIES--6.0%
FEDERAL HOME LOAN MORTGAGE ASSOCIATION--0.8%
718 7.420 11/01/24 730
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--5.2%
5,050 7.000 04/15/26 4,805
-------
5,535
AGENCY OBLIGATIONS--2.1%
FEDERAL HOME LOAN MORTGAGE CORPORATION--0.5%
500 7.130 06/30/05 499
TENNESSEE VALLEY AUTHORITY NOTE--1.6%
1,500 6.235 07/15/45 1,465
-------
1,964
- ----------------------------------------------
TOTAL U.S. GOVERNMENT AGEN-
CIES
(Cost $18,757) $18,469
- ----------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--72.3%
U.S. TREASURY NOTES
<C> <C> <S> <C>
$23,000 6.750% 02/28/97 $23,173
15,500 5.500 11/15/98 15,197
12,000 7.500 10/31/99 12,349
15,000 7.750 01/31/00 15,570
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $67,588) $66,289
- ------------------------------------------------------
SHORT TERM INVESTMENT--6.4%
Federal Home Loan Bank Discount Note
$ 5,840 5.280% 06/03/96 $ 5,837
- ------------------------------------------------------
TOTAL SHORT TERM INVESTMENT
(Cost $5,837) $ 5,837
- ------------------------------------------------------
TOTAL INVESTMENTS--98.8%
(Cost $92,152) $90,595
- ------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
Other assets, less liabilities--1.2% 1,034
- ------------------------------------------------------------------------------
NET ASSETS--100.0% $91,629
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
</TABLE>
*The yield on this Principal Only Stripped security was 7.74% at May 31, 1996.
Refer to notes to statements of investments for a discussion of stripped
securities.
See accompanying notes to financial statements.
11
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
May 31, 1996
(All amounts in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Description
- -------------------------------------
Principal Maturity
Amount Rate Date Value
- -------------------------------------
U.S. TREASURY INDEX PORTFOLIO
<C> <C> <S> <C>
U.S. GOVERNMENT OBLIGA-
TIONS--96.5%
U.S. TREASURY NOTES--58.6%
$1,400 5.500% 07/31/97 $ 1,393
1,115 9.250 08/15/98 1,181
200 5.000 01/31/99 193
1,700 5.250 02/28/99 1,661
2,700 7.875 11/15/99 2,809
1,700 6.375 01/15/00 1,691
1,000 6.250 02/15/03 973
-------
9,901
U.S. TREASURY BONDS--32.3%
435 13.875 05/15/11 647
660 14.000 11/15/11 999
590 13.250 05/15/14 894
750 7.250 05/15/16 755
900 8.125 05/15/21 997
1,300 6.250 08/15/23 1,160
-------
5,452
U.S. TREASURY INTEREST ONLY
STRIPPED SECURITIES*--5.6%
530 -- 05/15/97 502
475 -- 08/15/97 443
-------
945
- -------------------------------------
TOTAL U.S. GOVERNMENT OB-
LIGATIONS
(Cost $16,391) $16,298
- -------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- --------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------
<C> <C> <S> <C>
SHORT TERM INVESTMENT--3.3%
Federal Home Loan Bank Dis-
count Note
$ 550 5.280% 06/03/96 $ 550
- --------------------------------------
TOTAL SHORT TERM INVESTMENT
(Cost $550) $ 550
- --------------------------------------
TOTAL INVESTMENTS--99.8%
(Cost $16,941) $16,848
- --------------------------------------
Other assets, less liabili-
ties--0.2% 40
- --------------------------------------
NET ASSETS--100.0% $16,888
- --------------------------------------
- --------------------------------------
</TABLE>
*At May 31, 1996 yields on these securities ranged from approximately 5.96% to
6.14%. Refer to notes to statements of investments for a discussion of stripped
securities.
See accompanying notes to financial statements.
12
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
NOTES TO STATEMENTS OF INVESTMENTS
May 31, 1996
(Unaudited)
- --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 variable rate interest only stripped
securities varies directly with changes in interest rates, while the value of
fixed rate interest only stripped securities and the value of principal only
stripped securities varies inversely with changes in interest rates.
13
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
May 31, 1996
(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
securities, at cost $331,276 $29,552 $36,064 $188,908 $92,152 $16,941
Repurchase agreements,
at cost -- -- 11,000 -- -- --
- ----------------------------------------------------------------------------------------------
Investments in
securities, at value $326,872 $30,647 $36,035 $189,133 $90,595 $16,848
Repurchase agreements,
at value -- -- 11,000 -- -- --
Cash 270 174 -- -- 6 3
Receivables:
Interest 4,341 704 75 1,830 1,043 194
Foreign tax reclaims -- 82 -- -- -- --
Fund units sold 23 3 -- 32 -- --
Investment securities
sold -- -- -- -- -- 2,456
Administrator 22 4 10 8 3 4
Deferred organization
costs, net 22 46 39 22 24 21
Other assets 5 20 1 3 1 1
- ----------------------------------------------------------------------------------------------
TOTAL ASSETS 331,555 31,680 47,160 191,028 91,672 19,527
- ----------------------------------------------------------------------------------------------
LIABILITIES:
Due to custodian -- -- -- 266 -- --
Payable for:
Fund units redeemed -- -- 1,000 38 -- 13
Investment securities
purchased -- -- -- -- -- 2,610
Distributions to
unitholders -- -- 20 -- -- --
Accrued expenses:
Advisory fees 69 19 6 40 20 2
Administration fees 28 3 10 16 8 1
Custodian fees 3 5 6 2 3 2
Transfer agent fees 3 -- -- 2 1 --
Other liabilities 20 7 8 32 11 11
- ----------------------------------------------------------------------------------------------
TOTAL LIABILITIES 123 34 1,050 396 43 2,639
- ----------------------------------------------------------------------------------------------
NET ASSETS $331,432 $31,646 $46,110 $190,632 $91,629 $16,888
- ----------------------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $337,631 $30,095 $46,744 $189,991 $93,248 $17,969
Accumulated
undistributed
(distributions in
excess of) net
investment income 125 (207) 35 278 104 20
Accumulated net realized
gain (loss) on
investments and foreign
currency transactions (1,920) 671 (640) 138 (166) (1,008)
Net unrealized
appreciation
(depreciation) on
investments (4,404) 1,095 (29) 225 (1,557) (93)
Net unrealized loss on
translation of assets
and liabilities
denominated in foreign
currencies -- (8) -- -- -- --
- ----------------------------------------------------------------------------------------------
NET ASSETS $331,432 $31,646 $46,110 $190,632 $91,629 $16,888
- ----------------------------------------------------------------------------------------------
Total units outstanding
(no par value),
unlimited units
authorized
Class A 16,382 1,503 4,623 9,342 4,457 823
Class C 177 -- -- -- 185 --
Class D 7 1 -- 2 10 29
- ----------------------------------------------------------------------------------------------
Net asset value,
offering and redemption
price per unit
Class A $ 20.01 $ 21.05 $ 9.97 $ 20.40 $ 19.70 $ 19.82
Class C $ 20.01 -- -- -- $ 19.69 --
Class D $ 19.99 $ 21.05 -- $ 20.37 $ 19.66 $ 19.80
- ----------------------------------------------------------------------------------------------
</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, 1996
(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: $ 10,561 $1,105(a) $1,227 $4,791 $2,251 $ 539
- ----------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 944 144 88 506 245 35
Administration fees 280 38 53 163 102 21
Custodian fees 21 34 15 13 10 10
Transfer agent fees 18 2 -- 8 5 1
Registration fees 15 7 10 15 12 12
Professional fees 11 2 4 6 2 2
Trustee fees 5 1 1 3 1 1
Amortization of deferred
organization costs 7 8 10 7 7 7
Other 13 5 8 6 6 3
- ----------------------------------------------------------------------------------------------
TOTAL EXPENSES 1,314 241 189 727 390 92
Less: Voluntary waivers
of investment advisory
and administration fees (673) (56) (55) (373) (204) (35)
Less: Expenses reimburs-
able by Administrator (70) (31) (79) (50) (35) (34)
- ----------------------------------------------------------------------------------------------
Net expenses 571 154 55 304 151 23
- ----------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 9,990 951 1,172 4,487 2,100 516
Net realized gain (loss)
on:
Investments transac-
tions 3,353 465 (29) 270 94 82
Foreign currency trans-
actions -- 249 -- -- -- --
Net change in unrealized
depreciation on
investments (18,544) (1,493) (12) (3,250) (2,107) (889)
Net change in unrealized
gains on translation of
other assets and lia-
bilities denominated in
foreign currencies -- 3 -- -- -- --
- ----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $ (5,201) $ 175 $1,131 $1,507 $ 87 $(291)
- ----------------------------------------------------------------------------------------------
</TABLE>
(a) Net of $30 in non-reclaimable 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, 1996 (Unaudited) and Year Ended November 30,
1995
(All amounts in thousands)
<TABLE>
<CAPTION>
Bond International
Portfolio Bond Portfolio
------------------ ----------------
1996 1995 1996 1995
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Net investment income $ 9,990 $ 15,744 $ 951 $ 1,898
Net realized gain (loss) on:
Investment transactions 3,353 1,622 465 708
Foreign currency transactions -- -- 249 23
Net change in unrealized appreciation
(depreciation) on investments (18,544) 34,676 (1,493) 2,711
Net change in unrealized gain (loss) on
translations of other assets and
liabilities denominated in foreign
currencies -- -- 3 (11)
- ------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (5,201) 52,042 175 5,329
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A UNITHOLDERS
FROM:
Net investment income (9,751) (15,211) (1,194) (2,605)
Return of capital -- (347) -- --
- ------------------------------------------------------------------------------
Total distributions to Class A
unitholders (9,751) (15,558) (1,194) (2,605)
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS C UNITHOLDERS
FROM:
Net investment income (110) (82) -- --
Return of capital -- (2) -- --
- ------------------------------------------------------------------------------
Total distributions to Class C
unitholders (110) (84) -- --
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS D UNITHOLDERS
FROM:
Net investment income (4) (4) -- --
- ------------------------------------------------------------------------------
Total distributions to Class D
unitholders (4) (4) -- --
- ------------------------------------------------------------------------------
CLASS A UNIT TRANSACTIONS:
Proceeds from the sale of units 69,816 65,433 2,816 6,142
Reinvested distributions 8,693 13,688 906 2,073
Cost of units redeemed (22,172) (86,462) (3,739) (5,213)
- ------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class A unit
transactions 56,337 (7,341) (17) 3,002
- ------------------------------------------------------------------------------
CLASS C UNIT TRANSACTIONS:
Proceeds from the sale of units 498 4,059 -- --
Reinvested distributions 110 84 -- --
Cost of units redeemed (606) (574) -- --
- ------------------------------------------------------------------------------
Net increase in net assets resulting
from Class C unit transactions 2 3,569 -- --
- ------------------------------------------------------------------------------
CLASS D UNIT TRANSACTIONS:
Proceeds from the sale of units 47 100 -- 9
Reinvested distributions 4 4 -- --
Cost of units redeemed (17) (9) -- --
- ------------------------------------------------------------------------------
Net increase in net assets resulting
from Class D unit transactions 34 95 -- 9
- ------------------------------------------------------------------------------
Net increase (decrease) 41,307 32,719 (1,036) 5,735
Net assets--beginning of year 290,125 257,406 32,682 26,947
- ------------------------------------------------------------------------------
NET ASSETS--END OF PERIOD $331,432 $290,125 $31,646 $32,682
- ------------------------------------------------------------------------------
UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS
OF) NET INVESTMENT INCOME: $ 125 -- $ (207) $ 36
- ------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Short Duration Short-Intermediate U.S. Government U.S. Treasury
Portfolio Bond Portfolio Securities Portfolio Index Portfolio
- ------------------- -------------------- ---------------------- -----------------
1996 1995 1996 1995 1996 1995 1996 1995
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,172 $ 4,196 $ 4,487 $ 6,272 $ 2,100 $ 1,688 $ 516 $ 1,675
(29) (41) 270 735 94 60 82 823
-- -- -- -- -- -- -- --
(12) 161 (3,250) 6,055 (2,107) 1,548 (889) 3,234
-- -- -- -- -- -- -- --
- -------------------------------------------------------------------------------------
1,131 4,316 1,507 13,062 87 3,296 (291) 5,732
- -------------------------------------------------------------------------------------
(1,172) (4,196) (4,414) (6,177) (1,998) (1,644) (508) (1,700)
-- -- -- -- -- -- -- --
- -------------------------------------------------------------------------------------
(1,172) (4,196) (4,414) (6,177) (1,998) (1,644) (508) (1,700)
- -------------------------------------------------------------------------------------
-- -- -- -- (69) -- -- --
-- -- -- -- -- -- -- --
- -------------------------------------------------------------------------------------
-- -- -- -- (69) -- -- --
- -------------------------------------------------------------------------------------
-- -- (1) (1) (4) (2) (9) (4)
- -------------------------------------------------------------------------------------
-- -- (1) (1) (4) (2) (9) (4)
- -------------------------------------------------------------------------------------
30,348 48,728 55,312 84,233 92,490 58,790 2,401 14,609
1,081 3,722 4,076 5,697 1,913 1,508 363 1,392
(30,751) (96,900) (24,562) (34,345) (61,046) (30,910) (3,342) (39,656)
- -------------------------------------------------------------------------------------
678 (44,450) 34,826 55,585 33,357 29,388 (578) (23,655)
- -------------------------------------------------------------------------------------
-- -- -- -- 4,389 -- -- --
-- -- -- -- 70 -- -- --
-- -- -- -- (729) -- -- --
- -------------------------------------------------------------------------------------
-- -- -- -- 3,730 -- -- --
- -------------------------------------------------------------------------------------
-- -- 24 12 174 55 348 281
-- -- 1 -- 4 2 8 4
-- -- (2) -- (48) (5) (42) (3)
- -------------------------------------------------------------------------------------
-- -- 23 12 130 52 314 282
- -------------------------------------------------------------------------------------
637 (44,330) 31,941 62,481 35,233 31,090 (1,072) (19,345)
45,473 89,803 158,691 96,210 56,396 25,306 17,960 37,305
- -------------------------------------------------------------------------------------
$ 46,110 $ 45,473 $ 190,632 $ 158,691 $ 91,629 $ 56,396 $16,888 $ 17,960
- -------------------------------------------------------------------------------------
$ 35 $ 35 $ 278 $ 206 $ 104 $ 75 $ 20 $ 21
- -------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1996 (Unaudited) and Years Ended November 30,
<TABLE>
<CAPTION>
Bond Portfolio
------------------------------------------------------------------------------------------
Class A Class C Class D
---------------------------------------- ----------------- -------------------------
1996 1995 1994 1993 (a) 1996 1995 (b) 1996 1995 1994 (c)
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 20.96 $ 18.29 $ 20.70 $ 20.00 $20.96 $20.21 $20.94 $18.29 $18.77
Income from investment
operations:
Net investment income 0.66 1.17 1.42 1.42 0.63 0.47 0.62 1.08 0.28
Net realized and
unrealized gain (loss)
on investments (0.96) 2.66 (2.21) 0.66 (0.96) 0.74 (0.96) 2.66 (0.48)
- --------------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations (0.30) 3.83 (0.79) 2.08 (0.33) 1.21 (0.34) 3.74 (0.20)
- --------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.65) (1.14) (1.46) (1.38) (0.62) (0.45) (0.61) (1.09) (0.28)
Net realized gain on
investments -- -- (0.15) -- -- -- -- -- --
Return of capital -- (0.02) (0.01) -- -- (0.01) -- -- --
- --------------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.65) (1.16) (1.62) (1.38) (0.62) (0.46) (0.61) (1.09) (0.28)
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (0.95) 2.67 (2.41) 0.70 (0.95) 0.75 (0.95) 2.65 (0.48)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 20.01 $ 20.96 $ 18.29 $ 20.70 $20.01 $20.96 $19.99 $20.94 $18.29
- --------------------------------------------------------------------------------------------------------------------
Total return (d) (1.52)% 21.55% (4.04)% 10.61% (1.64)% 5.92% (1.71)% 21.06% (0.91)%
Ratio to average net
assets of (e):
Expenses, net of
waivers and
reimbursements 0.36% 0.36% 0.36% 0.36% 0.60% 0.60% 0.75% 0.75% 0.75%
Expenses, before
waivers and
reimbursements 0.83% 0.84% 0.87% 0.92% 1.07% 1.08% 1.22% 1.23% 1.26%
Net investment income,
net of waivers and
reimbursements 6.35% 5.94% 7.31% 7.84% 6.09% 5.59% 5.98% 5.48% 6.31%
Net investment income,
before waivers and
reimbursements 5.88% 5.46% 6.80% 7.28% 5.62% 5.11% 5.51% 5.00% 5.80%
Portfolio turnover rate 47.13% 74.19% 103.09% 89.06% 47.13% 74.19% 47.13% 74.19% 103.09%
Net assets at end of
period (in thousands) $327,751 $286,301 $257,391 $245,112 $3,534 $3,704 $ 147 $ 120 $ 15
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on January 11, 1993.
(b) Class C units were issued on July 3, 1995.
(c) Class D units were issued on September 14, 1994.
(d) 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. Total
return is not annualized for periods less than one year.
(e) Annualized for periods less than a full year.
See accompanying notes to financial statements.
18
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Bond Portfolio
--------------------------------------------
Class A Class D Short Duration Portfolio
-------------------------- ---------------- -------------------------------------
1996 1995 1994 (a) 1996 1995 (b) 1996 1995 1994 1993 (c)
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 21.74 $ 19.93 $ 20.00 $21.74 $22.17 $ 9.99 $ 9.97 $ 10.03 $ 10.00
Income from investment
operations:
Net investment income 0.65 1.26 0.79 0.61 0.02 0.27 0.59 0.40 0.14
Net realized and
unrealized gain (loss)
on investments and
foreign currency
transactions (0.53) 2.28 0.01 (0.53) (0.08) (0.02) 0.01 (0.05) 0.03
- --------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.12 3.54 0.80 0.08 (0.06) 0.25 0.60 0.35 0.17
- --------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income
(d) (0.81) (1.73) (0.87) (0.77) (0.37) (0.27) (0.58) (0.40) (0.14)
Net realized gain on
investments -- -- -- -- -- -- -- (0.01) --
- --------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.81) (1.73) (0.87) (0.77) (0.37) (0.27) (0.58) (0.41) (0.14)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) (0.69) 1.81 (0.07) (0.69) (0.43) (0.02) 0.02 (0.06) 0.03
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 21.05 $ 21.74 $ 19.93 $21.05 $21.74 $ 9.97 $ 9.99 $ 9.97 $ 10.03
- --------------------------------------------------------------------------------------------------------------
Total return (e) 0.56% 18.20% 4.03% 0.37% (0.78)% 2.60% 6.14% 3.64% 1.73%
Ratio to average net
assets of (f):
Expenses, net of
waivers and
reimbursements 0.96% 0.96% 0.96% 1.35% 1.35% 0.25% 0.25% 0.25% 0.32%
Expenses, before
waivers and
reimbursements 1.52% 1.47% 1.49% 1.91% 1.86% 0.85% 0.80% 0.77% 0.50%
Net investment income,
net of waivers and
reimbursements 5.97% 5.92% 5.93% 5.57% 3.26% 5.29% 5.80% 3.93% 3.00%
Net investment income,
before waivers and
reimbursements 5.41% 5.41% 5.40% 5.01% 2.75% 4.69% 5.25% 3.41% 2.82%
Portfolio turnover rate 21.91% 54.46% 88.65% 21.91% 54.46% 468.63% 1,272.21% 1,364.00% 434.32%
Net assets at end of
period (in thousands) $31,637 $32,673 $26,947 $ 9 $ 9 $46,110 $ 45,473 $ 89,803 $186,765
- --------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on March 28, 1994.
(b) Class D units were issued on November 22, 1995.
(c) Commenced investment operations on June 2, 1993.
(d) For the International Bond Portfolio, distributions to unitholders from net
investment income include amounts relating to foreign currency transactions
which are treated as ordinary income for Federal income tax purposes.
(e) 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. Total
return is not annualized for periods less than one year.
(f) Annualized for periods less than a full year.
See accompanying notes to financial statements.
19
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1996 (Unaudited) and Years Ended November 30,
<TABLE>
<CAPTION>
Short-Intermediate Bond Portfolio
---------------------------------------------------------------
Class A Class D
------------------------------------- ------------------------
1996 1995 1994 1993 (a) 1996 1995 1994 (b)
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 20.73 $ 19.53 $ 20.33 $ 20.00 $20.71 $19.53 $19.80
Income from investment
operations:
Net investment income 0.54 1.02 0.97 0.85 0.49 0.94 0.23
Net realized and
unrealized gain (loss)
on
investments (0.33) 1.19 (0.80) 0.31 (0.33) 1.18 (0.27)
- ------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.21 2.21 0.17 1.16 0.16 2.12 (0.04)
- ------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.54) (1.01) (0.97) (0.83) (0.50) (0.94) (0.23)
- ------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.54) (1.01) (0.97) (0.83) (0.50) (0.94) (0.23)
- ------------------------------------------------------------------------------------------
Net increase (decrease) (0.33) 1.20 (0.80) 0.33 (0.34) 1.18 (0.27)
- ------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 20.40 $ 20.73 $ 19.53 $ 20.33 $20.37 $20.71 $19.53
- ------------------------------------------------------------------------------------------
Total return (c) 1.01% 11.58% 0.84% 5.90% 0.80% 11.09% (0.38)%
Ratio to average net
assets of (d):
Expenses, net of
waivers and
reimbursements 0.36% 0.36% 0.36% 0.36% 0.75% 0.75% 0.75%
Expenses, before
waivers and
reimbursements 0.86% 0.91% 0.95% 1.00% 1.25% 1.30% 1.34%
Net investment income,
net of waivers and
reimbursements 5.32% 5.14% 4.84% 4.79% 4.98% 4.85% 4.42%
Net investment income,
before waivers and
reimbursements 4.82% 4.59% 4.25% 4.15% 4.48% 4.30% 3.83%
Portfolio turnover rate 19.14% 54.68% 48.67% 19.48% 19.14% 54.68% 48.67%
Net assets at end of
period (in thousands) $190,597 $158,678 $96,209 $107,550 $ 35 $ 13 $ 1
- ------------------------------------------------------------------------------------------
</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. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
20
<PAGE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. Government Securities Portfolio
-------------------------------------------------------------------------
Class A Class C Class D
------------------------------------ -------- -------------------------
1996 1995 1994 1993 (a) 1996 (b) 1996 1995 1994 (c)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 20.08 $ 19.05 $ 20.07 $ 20.00 $20.14 $20.04 $ 19.05 $19.43
Income from investment
operations:
Net investment income 0.49 1.05 0.91 0.55 0.40 0.46 0.96 0.22
Net realized and
unrealized gain (loss)
on investments (0.38) 1.02 (1.02) 0.05 (0.49) (0.38) 1.00 (0.38)
- ---------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.11 2.07 (0.11) 0.60 (0.09) 0.08 1.96 (0.16)
- ---------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.49) (1.04) (0.91) (0.53) (0.36) (0.46) (0.97) (0.22)
- ---------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.49) (1.04) (0.91) (0.53) (0.36) (0.46) (0.97) (0.22)
- ---------------------------------------------------------------------------------------------------
Net increase (decrease) (0.38) 1.03 (1.02) 0.07 (0.45) (0.38) 0.99 (0.38)
- ---------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 19.70 $ 20.08 $ 19.05 $ 20.07 $19.69 $19.66 $ 20.04 $19.05
- ---------------------------------------------------------------------------------------------------
Total return (d) 0.52% 11.18% (0.57)% 3.00% (0.40)% 0.36% 10.66% (0.89)%
Ratio to average net
assets of (e):
Expenses, net of
waivers and
reimbursements 0.36% 0.36% 0.36% 0.43% 0.60% 0.75% 0.75% 0.75%
Expenses, before
waivers and
reimbursements 0.95% 1.09% 1.12% 1.18% 1.19% 1.34% 1.48% 1.51%
Net investment income,
net of waivers and
reimbursements 5.15% 5.43% 4.62% 4.18% 4.88% 4.75% 5.08% 4.65%
Net investment income,
before waivers and
reimbursements 4.56% 4.70% 3.86% 3.43% 4.29% 4.16% 4.35% 3.89%
Portfolio turnover rate 94.87% 141.14% 45.55% 20.59% 94.87% 94.87% 141.14% 45.55%
Net assets at end of
period (in thousands) $87,793 $56,329 $25,293 $32,479 $3,644 $ 192 $ 67 $ 13
- ---------------------------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on April 5, 1993.
(b) Class C units were issued on January 2, 1996.
(c) Class D units were issued on September 15, 1994.
(d) 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. Total
return is not annualized for periods less than one year.
(e) Annualized for periods less than a full year.
See accompanying notes to financial statements.
21
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Six Months Ended May 31, 1996 (Unaudited) and Years Ended November 30,
<TABLE>
<CAPTION>
U.S. Treasury Index Portfolio
----------------------------------------------------------------
Class A Class D
------------------------------------- -------------------------
1996 1995 1994 1993 (a) 1996 1995 1994 (b)
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 20.78 $ 18.77 $ 21.05 $ 20.00 $20.75 $18.77 $18.80
Income from investment
operations:
Net investment income 0.62 1.11 1.15 0.95 0.59 1.00 0.09
Net realized and
unrealized gain (loss)
on investments (0.97) 2.01 (1.93) 1.02 (0.97) 2.03 (0.03)
- ------------------------------------------------------------------------------------------
Total income (loss) from
investment operations (0.35) 3.12 (0.78) 1.97 (0.38) 3.03 0.06
- ------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.61) (1.11) (1.14) (0.92) (0.57) (1.05) (0.09)
Net realized gain on
investments -- -- (0.36) -- -- -- --
- ------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.61) (1.11) (1.50) (0.92) (0.57) (1.05) (0.09)
- ------------------------------------------------------------------------------------------
Net increase (decrease) (0.96) 2.01 (2.28) 1.05 (0.95) 1.98 (0.03)
- ------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 19.82 $ 20.78 $ 18.77 $ 21.05 $19.80 $20.75 $18.77
- ------------------------------------------------------------------------------------------
Total return (c) (1.71)% 16.95% (3.80)% 9.94% (1.86)% 16.43% 0.58%
Ratio to average net as-
sets of (d):
Expenses, net of waiv-
ers and reimbursements 0.26% 0.26% 0.26% 0.26% 0.65% 0.65% 0.65%
Expenses, before waiv-
ers and reimbursements 1.06% 0.89% 0.79% 0.83% 1.45% 1.28% 1.18%
Net investment income,
net of waivers and
reimbursements 5.89% 5.09% 5.60% 5.11% 5.55% 5.41% 6.05%
Net investment income,
before waivers and
reimbursements 5.09% 4.46% 5.07% 4.54% 4.75% 4.78% 5.52%
Portfolio turnover rate 14.38% 80.36% 52.80% 77.75% 14.38% 80.36% 52.80%
Net assets at end of pe-
riod (in thousands) $16,305 $17,674 $37,305 $71,456 $ 583 $ 286 $ --
- ------------------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on January 11, 1993.
(b) Class D units were issued on November 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. Total
return is not annualized for periods less than one year.
(d) Annualized for periods less than a full year.
See accompanying notes to financial statements.
22
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
May 31, 1996
(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 Bond, International Bond, Short-Intermediate Bond, U.S. Government
Securities, and U.S. Treasury Index Portfolios have 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, 1996, Class A, Class
C and Class D units are outstanding.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Portfolios in the preparation of their financial statements.
These policies are in conformity with generally accepted accounting principles
("GAAP"). The presentation of financial statements in conformity with GAAP
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 revenues and expenses during the reporting period.
Actual results could differ from those estimates and assumptions.
(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 gains or losses on investments resulting from changes in foreign exchange
rates are included with net realized and unrealized gain (loss) on investments.
(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 Bond, International Bond and Short-Intermediate Bond Portfolios are
authorized to enter into forward foreign currency exchange contracts for the
purchase of
23
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
May 31, 1996
(Unaudited)
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
a specific foreign currency at a fixed price on a future date as a hedge or
cross-hedge against either specific transactions or portfolio positions. In
addition, the International Bond Portfolio may enter into foreign currency
contracts for speculative purposes. The objective of a Portfolio's foreign
currency hedging transactions is to reduce the risk that the U.S. dollar value
of the Portfolio's foreign currency denominated securities will decline in
value due to changes in foreign currency exchange rates. All forward foreign
currency contracts 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. At May 31, 1996, there were
no contracts outstanding.
(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, 1995, the Trust's most recent tax year end, the portfolios had
approximately the following amounts of capital loss carryforwards for U.S.
federal tax purposes:
<TABLE>
<CAPTION>
Amount Year(s) of Expiration
- ----------------------------------------------------------------
(in thousands)
<S> <C> <C>
Bond $5,273 2002 to 2003
International Bond 39 2002
Short Duration 610 2002 to 2003
Short-Intermediate Bond 26 2001 to 2002
U.S. Government Securities 248 2001 to 2003
U.S. Treasury Index 1,068 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 net assets.
(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>
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
Income dividends and capital gains distributions are determined in accordance
with income tax regulations. Such amounts may differ from income and capital
gains recorded in accordance with generally accepted accounting principles.
(j) Reclassifications
At November 30, 1995, the Bond Portfolio reclassified approximately $447,000
from accumulated net realized gain (loss) on investment transactions to
accumulated undistributed net investment income. The International Bond
Portfolio reclassified approximately $684,000 from accumulated net gain (loss)
on investment transactions, and $23,000 from net realized gain on foreign
currency transactions, to accumulated undistributed net investment income.
These reclassifications had no impact on the net asset value of the Portfolios
and are designed to present the Portfolios' capital accounts on a tax basis.
3. ADVISORY, TRANSFER AGENCY AND CUSTODIAN AGREEMENTS
The Trust has an investment advisory agreement with Northern whereby each
portfolio pays Northern a fee, computed daily and payable monthly, based on a
specified percentage of its average daily net assets. For the current fiscal
year, Northern voluntarily agreed to waive a portion of the advisory fee for
each portfolio. The annual advisory fees and waiver rates, expressed as a
percentage of average daily net assets, and the amount of fees waived by
Northern for the six months ended May 31, 1996, are as follows:
<TABLE>
<CAPTION>
Net Advisory
Advisory Less: Advisory Fees
Fee Waiver Fee Waived
- -------------------------------------------------------------
<S> <C> <C> <C> <C>
(in thousands)
Bond .60% .35% .25% $550
International Bond .90 .20 .70 32
Short Duration .40 .25 .15 55
Short-Intermediate Bond .60 .35 .25 295
U.S. Government Securities .60 .35 .25 143
U.S. Treasury Index .40 .25 .15 22
- -------------------------------------------------------------
</TABLE>
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
The Trust has an administration agreement with Goldman
Sachs whereby each portfolio pays the Administrator a fee, computed daily and
payable monthly, based on the average net assets of each portfolio at the rates
set forth below:
<TABLE>
<CAPTION>
Average net assets Rate
- ---------------------------------------
<S> <C>
For the first $100,000,000 .250%
For the next $200,000,000 .150
For the next $450,000,000 .075
For net assets over $750,000,000 .050
- ---------------------------------------
</TABLE>
For the current fiscal year, Goldman Sachs voluntarily agreed to limit
administration fees to .10% of average daily net assets for the Bond,
International Bond, Short-Intermediate Bond, U.S. Government Securities and
U.S. Treasury Index Portfolios. In addition, Goldman Sachs agreed to waive a
portion of its administrative fees should overall administration fees earned
during the preceding year exceed certain specified levels. Furthermore, Goldman
Sachs has agreed to reimburse each portfolio for certain expenses in the event
that such expenses, as defined, exceed on an annualized basis
25
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
May 31, 1996
(Unaudited)
4. ADMINISTRATION AND DISTRIBUTION AGREEMENTS (continued)
.10% of the average daily net assets for the Bond, Short Duration, Short-
Intermediate Bond, U.S. Government Securities and U.S. Treasury Index
Portfolios and .25% of the average daily net assets for the International Bond
Portfolio.
A summary of the administration fees waived and expense reimbursements for the
six months ended May 31, 1996 are as follows:
<TABLE>
<CAPTION>
Administration Expense
Fees Waived Reimbursements
- ---------------------------------------------------------
<S> <C> <C>
(in thousands)
Bond $123 $70
International Bond 24 31
Short Duration -- 79
Short-Intermediate Bond 78 50
U.S. Government Securities 61 35
U.S. Treasury Index 13 34
- ---------------------------------------------------------
</TABLE>
Goldman Sachs receives no compensation under the distribution agreement.
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 at an annual rate of up to .10%,
.15% and .25% of the average daily net asset value of the outstanding Class B,
C and D units, respectively. These fees are included in other expenses on the
Statements of Operations.
6. INVESTMENT TRANSACTIONS
Investment transactions for the six months ended May 31, 1996 (excluding short-
term investments) were as follows:
<TABLE>
<CAPTION>
Proceeds
from sales Proceeds
and from
Purchases maturities sales 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 $179,140 $24,721 $117,296 $18,478
International Bond -- 6,630 -- 7,443
Short Duration 26,648 12,000 26,641 18,026
Short-Intermediate Bond 51,677 12,135 24,104 4,823
U.S. Government Securities 102,431 -- 68,989 --
U.S. Treasury Index 2,421 -- 2,931 --
- -------------------------------------------------------------------------
</TABLE>
On May 31, 1996, the composition of unrealized appreciation (depreciation) of
investment securities based on the aggregate cost of investments for federal
income tax purposes were as follows:
<TABLE>
<CAPTION>
Cost for
Federal
Net Income
Appreciation Tax
Appreciation Depreciation (Depreciation) purposes
- -----------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond $4,665 $10,148 $(5,483) $332,355
International Bond 1,497 402 1,095 29,552
Short Duration 5 34 (29) 47,064
Short-Intermediate Bond 1,940 1,715 225 188,908
U.S. Government Securities 101 1,785 (1,684) 92,279
U.S. Treasury Index 105 220 (115) 16,963
- -----------------------------------------------------------------------------
</TABLE>
26
<PAGE>
- --------------------------------------------------------------------------------
7. BANK LOANS
The Trust maintains a $5,000,000 revolving bank credit line and a $15,000,000
conditional revolving credit line for liquidity and other purposes. Borrowings
under this arrangement bear interest at 1% above the Fed Funds rate and are
secured by pledged securities equal to or exceeding 120% of the outstanding
balance.
Interest expense for the sixth months ended May 31, 1996 was approximately
$1,000 for the International Bond Portfolio. This amount is included in other
expenses on the Statements of Operations.
As of May 31, 1996, there were no outstanding borrowings.
8. UNIT TRANSACTIONS
Transactions in Class A units for the six months ended May 31, 1996 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- ----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 3,361 421 1,061 2,721
International Bond 130 43 173 --
Short Duration 3,040 109 3,080 69
Short-Intermediate Bond 2,671 198 1,182 1,687
U.S. Government Securities 4,611 96 3,055 1,652
U.S. Treasury
Index 117 18 163 (28)
- ----------------------------------------------------------------------
</TABLE>
Transactions in Class A units for the year ended November 30, 1995 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- ----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 3,353 696 4,459 (410)
International Bond 297 97 243 151
Short Duration 4,868 388 9,707 (4,451)
Short-Intermediate Bond 4,158 285 1,714 2,729
U.S. Government Securities 2,965 77 1,564 1,478
U.S. Treasury Index 748 70 1,953 (1,135)
- ----------------------------------------------------------------------
</TABLE>
Transactions in Class C units for the six months ended May 31, 1996 were as
follows:
<TABLE>
<CAPTION>
Reinvested Net
Sales distributions Redemptions increase
- --------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 24 5 29 --
U.S. Government Securities 218 4 37 185
- --------------------------------------------------------------------
</TABLE>
Transactions in Class C units (in thousands) for the period ended November 30,
1995 were as follows:
<TABLE>
<CAPTION>
Reinvested Net
Sales distributions Redemptions increase
- ----------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 201 4 28 177
- ----------------------------------------------
</TABLE>
Transactions in Class D units for the six months ended May 31, 1996 were as
follows:
<TABLE>
<CAPTION>
Reinvested Net
Sales distributions Redemptions increase
- --------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 2 -- 1 1
International Bond -- -- -- --
Short-Intermediate Bond 1 -- -- 1
U.S. Government Securities 9 -- 2 7
U.S. Treasury Index 17 -- 2 15
- --------------------------------------------------------------------
</TABLE>
Transactions in Class D units for the period ended November 30, 1995 were as
follows:
<TABLE>
<CAPTION>
Reinvested Net
Sales distributions Redemptions increase
- --------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 5 -- -- 5
International Bond 1 -- -- 1
U.S. Government Securities 3 -- 1 2
U.S. Treasury Index 13 -- -- 13
- --------------------------------------------------------------------
</TABLE>
27
<PAGE>
THE BENCHMARK FUNDS
Investment Adviser, Transfer Agent and Custodian
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.
Frederick T. Kelsey
Richard P. Strubel
Officers
Paul W. Klug, Jr., 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
Legal Counsel
Drinker Biddle & Reath
1345 Chestnut Street
Philadelphia, PA 19107
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, 1996
