<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
MARKET VIEW
THE BENCHMARK DIVERSIFIED ASSETS PORTFOLIO
THE BENCHMARK GOVERNMENT PORTFOLIO
THE BENCHMARK GOVERNMENT SELECT PORTFOLIO
The Federal Reserve's monetary policy and expectations about where that policy
was headed had the largest influence on portfolio activity during the fiscal
year ended November 30, 1996.
The Diversified Assets Portfolio was heavily weighted in commercial paper,
where yields were the most attractive. We maintained a barbell maturity struc-
ture as we tried to anticipate Fed activity. Any opportunities to capture ad-
ditional yield by extending the portfolio's maturity were evaluated on a case-
by-case basis. At year end, the portfolio's average maturity was 35 days--con-
sistent with other money market funds with similar investment objectives.
During the first half of the fiscal year, the Government and Government Se-
lect Portfolios were heavily weighted in monthly agency securities. We ex-
pected the federal funds rate to go down, so we initiated this strategy to ex-
tend the portfolios and take advantage of higher yields. In the second half of
the year, as signs of a strengthening economy emerged, the consensus was that
the Fed would raise rates. We employed a barbell strategy, focusing on one-
year Treasury bills for yield and to maintain our average maturity and over-
night securities for liquidity.
Looking ahead, year-end pressures should push rates higher. After that, fi-
nal inflation numbers for 1996 may cause the Fed to take action. We will main-
tain our current portfolio structures and continue to act defensively in an-
ticipating the Fed's next move.
Mary Ann Flynn and Ed Kyritz, Portfolio Managers
THE BENCHMARK TAX-EXEMPT PORTFOLIO
Early in the fiscal year, our outlook was for a stable or declining interest
rate environment. Our strategy, therefore, was to keep the portfolio's average
maturity longer than other portfolios with a similar investment objective.
When short-term rates are stable or declining, it is better to have a rela-
tively longer maturity structure in order to capture incremental yield in-
creases.
As it turned out, interest rates remained relatively stable during the year,
and our strategy worked well. The portfolio's one-year performance was favora-
ble compared to industry averages.
Going forward, we plan to maintain the portfolio's relatively longer average
maturity. Currently, the consensus is split as to whether the Federal Re-
serve's next move will be a tightening or easing of rates. We believe that a
stable rate environment will prevail for at least the next quarter, and possi-
bly for the next six to 12 months. However, we will continue to monitor and
evaluate the country's economic data as it is released, and we will position
the portfolio accordingly.
Brad Snyder, Portfolio Manager
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
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
INVESTMENT ABBREVIATIONS AND NOTES:
AMBAC--American Municipal Bond Assurance Corp.
BAN --Bond Anticipation Note
BTP --Bankers Trust Partnership
Colld.
--Collateral
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
GNMA --Government National Mortgage Association
HDA --Housing Development Authority
IDA --Industrial Development Authority
IDR --Industrial Development Revenue
LOC
--Letter of Credit
MBIA --Municipal Bond Insurance Association
ML SG--Merrill Lynch/Societe Generale
P-Floats
--Puttable Floating Rate Security
PCR --Pollution Control Revenue
RAN --Revenue Anticipation Note
TAN --Tax Anticipation Note
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.
- --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.
- --Interest rates are reset daily and interest is payable monthly with respect
to all joint repurchase agreements.
See accompanying notes to financial statements.
2
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
DIVERSIFIED ASSETS PORTFOLIO
BANK NOTES--2.2%
Boatmen's National Bank of Kansas
City FRN
$ 50,000 5.580% 12/03/96 $ 49,995
Boatmen's National Bank of St. Louis
FRN
20,000 5.580 12/03/96 20,000
- -------------------------------------------------------------------------------------------------------
TOTAL BANK NOTES $ 69,995
- -------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT--10.9%
DOMESTIC DEPOSITORY INSTITUTIONS--1.1%
First Alabama Bank
$ 10,000 5.400% 03/07/97 $ 10,000
First Tennessee Bank
25,000 5.300 12/23/96 25,000
--------
35,000
FOREIGN DEPOSITORY INSTITUTIONS--9.8%
Abbey National PLC, London
100,000 5.510 04/15/97 100,009
ABN-Amro Bank, New York
35,000 5.690 04/17/97 35,002
Credit Agricole, New York
30,000 5.420 12/30/96 30,002
Deutsche Bank, London
25,000 5.420 12/27/96 25,001
Landesbank Hessen, New York
20,000 6.090 09/11/97 20,065
Norinchukin Bank, New York
25,000 5.540 12/06/96 25,001
Societe Generale, New York
26,000 5.840 10/06/97 26,057
Sumitomo Bank Ltd., New York
5,000 5.410 12/09/96 5,000
35,000 5.370 12/12/96 35,000
Swiss Bank Corp., New York
10,000 5.530 12/18/96 10,001
--------
311,138
- -------------------------------------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT $346,138
- -------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Maturity Amortized
Amount Interest Rate Date Cost
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMERCIAL PAPER--48.2%
ASSET-BACKED SECURITIES--9.5%
Ascot Capital Corp.
$ 22,100 5.373% 12/20/96 $ 22,038
Barton Capital Corp.
2,718 5.369 12/16/96 2,712
Centric Funding
13,000 5.344 12/04/96 12,994
5,000 5.405 12/05/96 4,997
Cooperative Association of Tractor
Dealers, Inc.
13,600 5.446 12/10/96 13,582
7,600 5.524 01/10/97 7,554
Crosby Head Funding Corp.
10,000 5.478 12/19/96 9,973
Eureka Securitization, Inc.
10,000 5.360 12/03/96 9,997
Jet Funding Corp. (Dai-Ichi Kangyo
Bank LOC)
18,916 5.452 12/02/96 18,913
30,563 5.506 12/30/96 30,429
SALTS (II) Cayman Islands Corp.
25,000 5.775 12/19/96 25,000
SALTS (III) Cayman Islands Corp.
48,000 5.681 01/23/97 48,000
30,000 5.974 01/23/97 30,000
Strategic Asset Funding Corp. (Sanwa
Bank LOC)
40,744 5.476 01/31/97 40,371
WCP Funding, Inc.
25,000 5.455 12/03/96 24,992
----------
301,552
COMMUNICATIONS--4.6%
GTE Financial Corp.
25,997 5.353 12/13/96 25,951
Lucent Technologies, Inc.
75,000 5.404 12/02/96 74,989
NYNEX Corp.
35,000 5.394 02/14/97 34,612
11,000 5.400 02/21/97 10,867
----------
146,419
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO--CONTINUED
DOMESTIC DEPOSITORY INSTITUTIONS--0.2%
Bankers Trust Corp.
<S> <C> <C> <C>
$ 7,300 5.463% 04/04/97 $ 7,166
ELECTRONIC AND OTHER ELECTRICAL COMPONENTS--4.5%
Cooper Industries, Inc.
50,000 5.404 12/02/96 49,993
Sanyo Electric Finance (USA) Corp.
2,000 5.432 02/07/97 1,980
5,000 5.446 02/25/97 4,936
Whirlpool Financial Corp.
1,440 5.350 12/02/96 1,440
27,000 5.420 12/04/96 26,988
10,000 5.360 12/20/96 9,972
33,000 5.370 12/20/96 32,907
15,000 5.474 02/24/97 14,809
----------
143,025
FOOD AND KINDRED PRODUCTS--2.2%
Pepsico, Inc.
20,000 5.405 12/03/96 19,994
Philip Morris Companies, Inc.
50,000 5.404 12/02/96 49,993
----------
69,987
FOOD STORES--0.5%
Big B, Inc. (NationsBank Georgia LOC)
17,000 5.495 12/18/96 16,956
FOREIGN DEPOSITORY INSTITUTIONS--2.7%
Halifax Building Society
1,550 5.469 03/13/97 1,527
National Australia Funding Inc.
1,000 5.445 02/12/97 989
Nationwide Building Society
39,052 5.474 04/07/97 38,315
San Paolo U.S. Financial Co.
11,000 5.484 04/16/97 10,778
Woolwich Building Society
35,000 5.412 12/13/96 34,938
----------
86,547
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
GENERAL MERCHANDISE STORES--0.8%
J.C. Penney Funding Corp.
<S> <C> <C> <C>
$ 25,000 5.415% 03/07/97 $ 24,645
HOLDING AND OTHER COMPANIES--3.5%
AESOP Funding Corp.
2,000 5.345 12/13/96 1,996
B.A.T. Capital Corp.
10,000 5.376 12/16/96 9,978
CSW Credit, Inc.
12,200 5.296 12/03/96 12,196
16,000 5.309 12/04/96 15,993
Green Tree Financial Corp.
23,143 5.413 12/12/96 23,105
2,000 5.418 12/12/96 1,997
7,000 5.424 12/19/96 6,981
25,000 5.441 12/23/96 24,917
National Rural Utilities Cooperative
15,000 5.370 12/09/96 14,982
----------
112,145
INSURANCE CARRIERS--0.5%
Copley Financing Corp.
7,537 5.372 12/17/96 7,519
Prudential Funding Corp.
8,400 5.277 12/02/96 8,399
----------
15,918
NONDEPOSITORY BUSINESS CREDIT INSTITUTIONS--9.4%
Associates Corp. of North America
150,000 5.424 12/02/96 149,977
FBA Properties, Inc. (NationsBank
Georgia LOC)
11,400 5.474 02/10/97 11,278
Finova Capital Corp.
30,000 5.332 12/02/96 29,995
20,000 5.404 12/02/96 19,997
PHH Corp.
16,300 5.327 12/16/96 16,264
Sanwa Business Credit Corp.
2,000 5.391 12/02/96 2,000
2,000 5.392 12/03/96 1,999
18,000 5.429 02/06/97 17,820
25,000 5.453 02/06/97 24,750
16,000 5.442 02/12/97 15,826
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
NONDEPOSITORY BUSINESS CREDIT INSTITUTIONS--CONTINUED
Showa Leasing (U.S.A.), Inc. Series:
C
(Industrial Bank of Japan Ltd. LOC)
<S> <C> <C> <C>
$10,000 5.457% 02/18/97 $ 9,882
----------
299,788
NONDEPOSITORY PERSONAL CREDIT INSTITUTIONS--0.8%
Countrywide Home Loans
25,000 5.347 12/09/96 24,971
TRANSPORTATION--8.7%
BMW US Capital Corp.
25,000 5.327 12/16/96 24,945
18,091 5.346 12/16/96 18,051
Chrysler Financial Corp.
25,000 5.378 12/19/96 24,933
20,000 5.423 02/20/97 19,759
20,000 5.425 02/20/97 19,759
45,000 5.427 02/25/97 44,425
Ford Motor Credit Corp.
50,000 5.404 12/02/96 49,992
General Motors Acceptance Corp.
2,806 5.580 12/16/96 2,800
28,000 5.626 02/12/97 27,689
11,000 5.467 05/01/97 10,754
35,000 5.478 05/15/97 34,144
----------
277,251
TRANSPORTATION EQUIPMENT--0.3%
PACCAR Financial Corp.
8,000 5.368 12/19/96 7,979
- ---------------------------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER $1,534,349
- ---------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
CORPORATE NOTES--6.1%
AT&T Capital Corp. FRN
<S> <C> <C> <C>
$50,000 5.415% 12/23/96 $ 50,000
Bear Stearns Companies FRN
10,100 5.913 12/18/96 10,101
FPL Capital Group
5,400 6.500 07/01/97 5,429
General Electric Engine Receivables
1995-1 Trust FRN
20,974 5.476 12/02/96 20,975
General Motors Acceptance Corp.
4,660 8.000 04/10/97 4,701
International Business Machines
Credit Corp.
55,000 5.000 02/24/97 54,985
10,000 5.450 11/10/97 9,982
PHH Corp.
40,000 4.950 02/10/97 39,940
- ---------------------------------------------------------------------------------------------------
TOTAL CORPORATE NOTES $ 196,113
- ---------------------------------------------------------------------------------------------------
EURODOLLAR TIME DEPOSITS--5.1%
Creditanstalt Bank, Grand Cayman
$75,000 5.625% 12/02/96 $ 75,000
Hong Kong & Shanghai Bank, Grand
Cayman
89,000 5.438 12/02/96 89,000
- ---------------------------------------------------------------------------------------------------
TOTAL EURODOLLAR TIME DEPOSITS $ 164,000
- ---------------------------------------------------------------------------------------------------
GUARANTEED INVESTMENT CONTRACTS--3.5%
General American Life Insurance Co.
FRN
$75,000 5.580% 12/23/96 $ 75,000
Transamerica Life Insurance and
Annuity Co. FRN
35,000 5.375 12/02/96 35,000
- ---------------------------------------------------------------------------------------------------
TOTAL GUARANTEED INVESTMENT CONTRACTS $ 110,000
- ---------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------
DIVERSIFIED ASSETS PORTFOLIO--CONTINUED
MUNICIPAL INVESTMENTS--2.8%
County of Broward (Florida)
Professional Sports Facilities
<S> <C> <C> <C>
$ 17,500 5.460% 12/01/96 $ 17,500
City of Minneapolis-St. Paul (Minnesota) Metro Airport G.O. Bond
20,000 5.475 12/01/96 20,000
City of Seattle (Washington) Ltd.G.O. Bond, Series: C
30,000 5.400 12/04/96 30,000
Hydro-Quebec Corp. Monthly Put TOB FRN
9,000 5.480 12/01/96 9,000
State of Virginia HDA Multi-Family
Housing Bond
12,745 5.475 12/01/96 12,745
- ---------------------------------------------------------------------------------------------
TOTAL MUNICIPAL INVESTMENTS $ 89,245
- ---------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY--1.6%
Federal Home Loan Bank Discount Note
$ 50,000 5.703% 12/02/96 $ 49,992
- ---------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY $ 49,992
- ---------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATION--1.6%
U.S. Treasury Bill
$ 50,000 5.005% 02/06/97 $ 49,556
- ---------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION $ 49,556
- ---------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--20.2%
REPURCHASE AGREEMENTS--18.6%
Bear Stearns & Co., Inc., Dated
11/29/96, Repurchase Price $260,123
(U.S. Government Securities Colld.)
$ 260,000 5.680% 12/02/96 $260,000
Donaldson, Lufkin & Jenrette
Securities, Inc., Dated 11/27/96,
Repurchase Price $200,149 (U.S.
Government Securities Colld.)
200,000 5.360 12/02/96 200,000
J.P. Morgan Securities, Inc., Dated
11/29/96, Repurchase Price $115,054
(U.S. Government Securities Colld.)
115,000 5.680 12/02/96 115,000
J.P. Morgan Securities, Inc., Dated
11/29/96, Repurchase Price $16,071
(U.S. Government Securities Colld.)
16,063 5.800 12/02/96 16,063
--------
591,063
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ----------------------------------------------------------------------------------------------------
JOINT REPURCHASE AGREEMENT--1.6%
Merrill Lynch Government Securities,
Inc., Dated 8/12/96 (U.S. Government
Securities Colld.) Accrued Interest
$143
<S> <C> <C> <C>
$ 50,000 5.726% 12/02/96 $ 50,000
- ----------------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $ 641,063
- ----------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--102.2% $3,250,451
- ----------------------------------------------------------------------------------------------------
Liabilities, less other assets--(2.2%) (70,922)
- ----------------------------------------------------------------------------------------------------
NET ASSETS--100.0% $3,179,529
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
GOVERNMENT PORTFOLIO
U.S. GOVERNMENT AGENCIES--66.5%
FEDERAL HOME LOAN BANK DISCOUNT NOTES--23.2%
<S> <C> <C> <C>
$213,000 5.703% 12/02/96 $212,966
25,000 5.318 12/17/96 24,942
11,000 5.652 01/09/97 10,934
17,000 5.638 01/17/97 16,878
20,000 5.451 01/21/97 19,851
9,000 5.445 01/22/97 8,932
--------
294,503
FEDERAL HOME LOAN BANK MEDIUM TERM
NOTE--1.3%
15,915 5.800 08/12/97 15,921
FEDERAL HOME LOAN MORTGAGE CORPORATION
DISCOUNT NOTES--14.2%
15,000 5.222 12/11/96 14,978
25,000 5.241 12/11/96 24,964
14,900 5.246 12/16/96 14,868
30,000 5.288 02/04/97 29,717
47,000 5.285 02/14/97 46,489
15,000 5.332 02/18/97 14,827
34,000 5.284 02/19/97 33,606
--------
179,449
FEDERAL NATIONAL MORTGAGE ASSOCIATION
DISCOUNT NOTES--15.9%
25,000 5.357 12/18/96 24,938
20,000 5.549 12/19/96 19,946
25,000 5.282 02/10/97 24,743
40,000 5.288 02/10/97 39,588
25,000 5.301 02/18/97 24,713
20,000 5.379 04/04/97 19,638
20,000 5.290 04/16/97 19,609
5,000 5.388 04/16/97 4,901
24,500 5.392 04/16/97 24,014
--------
202,090
FEDERAL NATIONAL MORTGAGE ASSOCIATION
MEDIUM TERM NOTES--3.9%
14,000 5.350 12/26/96 14,000
20,000 5.860 07/03/97 20,024
15,000 5.520 10/28/97 14,996
--------
49,020
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -----------------------------------------------------------------------------------------------
OVERSEAS PRIVATE INVESTMENT CORP. FRN--2.8%
<S> <C> <C> <C>
$ 35,800 5.390% 12/04/96 $ 35,800
STUDENT LOAN MARKETING ASSOCIATION FRN--3.5%
30,000 5.220 12/03/96 29,994
15,000 5.350 12/03/96 14,992
----------
44,986
STUDENT LOAN MARKETING ASSOCIATION MEDIUM TERM NOTE--1.7%
21,710 5.965 09/12/97 21,737
- -----------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES $ 843,506
- -----------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--2.7%
U.S. TREASURY BILLS
$ 5,000 5.005% 02/06/97 $ 4,956
10,000 5.134 02/06/97 9,909
20,000 5.458 11/13/97 19,003
- -----------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS $ 33,868
- -----------------------------------------------------------------------------------------------
REPURCHASE AGREEMENTS--31.4%
REPURCHASE AGREEMENTS--27.5%
Bear Stearns & Co., Inc., Dated 11/27/96, Repurchase Price $140,104 (U.S.
Government Securities Colld.)
$140,000 5.350% 12/02/96 $ 140,000
J.P. Morgan Securities, Inc, Dated 11/29/96, Repurchase Price
$8,708 (U.S. Government Securities Colld.)
8,704 5.800 12/02/96 8,704
Nomura Securities International, Dated 11/27/96, Repurchase Price
$200,149 (U.S. Government Securities Colld.)
200,000 5.375 12/02/96 200,000
----------
348,704
JOINT REPURCHASE AGREEMENT--3.9%
UBS Securities, Inc., Dated 08/26/96 (U.S. Government Securities Colld.)
Accrued Interest $144
50,000 5.710 12/02/96 50,000
- -----------------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS $ 398,704
- -----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.6% $1,276,078
- -----------------------------------------------------------------------------------------------
Liabilities, less other assets--(0.6)% (7,563)
- -----------------------------------------------------------------------------------------------
NET ASSETS--100.0% $1,268,515
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- ---------------------------------------------------------------------------------------------------
GOVERNMENT SELECT PORTFOLIO
U.S. GOVERNMENT AGENCIES--97.6%
FEDERAL FARM CREDIT BANK DISCOUNT NOTES--15.9%
<S> <C> <C> <C>
$23,560 5.205% 12/02/96 $ 23,557
18,000 5.159 12/04/96 17,992
15,000 5.223 12/05/96 14,991
20,000 5.173 12/09/96 19,977
10,000 5.214 12/09/96 9,989
7,255 5.248 12/12/96 7,243
9,400 5.214 12/13/96 9,384
15,735 5.210 12/18/96 15,696
5,000 5.375 08/14/97 4,816
10,000 5.403 09/25/97 9,572
----------
133,217
FEDERAL FARM CREDIT BANK--0.9%
7,500 5.850 08/01/97 7,505
FEDERAL HOME LOAN BANK--1.2%
10,000 5.800 08/12/97 10,004
FEDERAL HOME LOAN BANK DISCOUNT NOTES--55.3%
6,610 5.147 12/02/96 6,609
15,830 5.216 12/02/96 15,828
42,415 5.703 12/02/96 42,408
25,000 5.165 12/03/96 24,993
13,000 5.186 12/04/96 12,994
40,830 5.255 12/05/96 40,806
30,500 5.336 12/05/96 30,482
6,025 5.234 12/09/96 6,018
30,000 5.201 12/11/96 29,957
35,690 5.220 12/19/96 35,597
20,000 5.221 12/19/96 19,948
30,000 5.451 01/21/97 29,777
22,180 5.445 01/22/97 22,012
20,000 5.284 02/06/97 19,806
26,950 5.472 02/06/97 26,686
20,000 5.291 02/14/97 19,783
40,000 5.301 02/18/97 39,541
9,975 5.269 02/20/97 9,858
9,855 5.587 02/21/97 9,732
17,060 5.656 03/24/97 16,766
3,280 5.376 03/27/97 3,225
----------
462,826
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount/Shares Rate Date Cost
- --------------------------------------------------------------------------------------------------
STUDENT LOAN MARKETING ASSOCIATION DISCOUNT NOTES--7.9%
<S> <C> <C> <C>
$35,000 5.324% 12/02/96 $ 34,995
31,100 5.210 12/18/96 31,024
--------
66,019
STUDENT LOAN MARKETING ASSOCIATION FRN--5.7%
15,000 5.870 06/30/97 15,010
20,000 5.220 08/06/97 19,996
13,000 5.350 09/03/97 12,993
--------
47,999
TENNESSEE VALLEY AUTHORITY DISCOUNT NOTES--10.7%
10,000 5.245 12/10/96 9,987
20,000 5.227 12/12/96 19,968
10,000 5.242 12/12/96 9,984
20,000 5.229 12/20/96 19,945
10,000 5.268 01/24/97 9,922
20,000 5.279 02/03/97 19,814
--------
89,620
- --------------------------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES $817,190
- --------------------------------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--3.5%
U.S. TREASURY BILLS
$10,000 5.134% 02/06/97 $ 9,911
20,000 5.458 11/13/97 19,003
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION_______________________________________S$ 28,914
- --------------------------------------------------------------------------------
OTHER--0.1%
Dreyfus Treasury Prime Cash Management, Class A
542 $ 542
- --------------------------------------------------------------------------------------------------
TOTAL OTHER $ 542
- --------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--101.2% $846,646
- --------------------------------------------------------------------------------------------------
Liabilities, less other assets--(1.2)% (10,297)
- --------------------------------------------------------------------------------------------------
NET ASSETS--100.0% $836,349
- --------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO
MUNICIPAL INVESTMENTS--98.1%
ALABAMA--0.2%
City of Greenville IDR VRDN, Series:
1992,
Allied Signal Project (Allied-
Signal, Inc. Gtd.)
<S> <C> <C> <C>
$ 1,350 3.700% 12/06/96 $ 1,350
ALASKA--2.0%
Alaska Housing Finance Corp. VRDN,
Series: 1994,
Merrill P-Floats PT-37 (FNMA
Securities Colld.)
2,300 3.550 12/02/96 2,300
Valdez Marine Terminal Revenue VRDN,
Series: 1994 B,
ARCO Transportation Project
(Atlantic Richfield Co. Gtd.)
10,550 3.700 12/06/96 10,550
--------
12,850
ARIZONA--0.8%
County of Maricopa PCR VRDN, Series:
A, El Paso Electric Project (Westpac
Banking Corp. LOC)
5,000 3.700 12/06/96 5,000
CALIFORNIA--6.8%
California Statewide Community
Development Authority TRAN, Series:
A (California Statewide Communities
Program Pool Residual Fund Insured)
9,000 4.750 06/30/97 9,038
City of Los Angeles IDR VRDN, Series:
BTP-129,
(U.S. Government Securities Colld.)
2,500 3.250 12/12/96 2,500
City of San Marcos Public Facilities
Authority, Series: BTP-187, Civic
Center Project (U.S. Government
Securities Colld.)
6,000 3.750 03/06/97 6,000
City of Santa Rosa High School
District TRAN, Series: 1996-1997
3,000 4.500 07/03/97 3,008
County of Irvine Ranch Water District
VRDN, Series: 1993 B, Districts 2,
102, 103, & 206 (Morgan Guaranty
Trust Co. LOC)
9,800 3.950 12/02/96 9,800
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
County of Los Angeles Convention &
Exhibition Center VRDN, Series:
1993, Merrill P-Floats Series: PA-88
(MBIA Insured)
<S> <C> <C> <C>
$ 2,000 3.650% 12/06/96 $ 2,000
County of Orange VRDN, Irvine Coast
Assessment District #88-1 (Societe
Generale LOC)
3,600 4.050 12/02/96 3,600
County of Sacramento Multifamily
Housing Revenue VRDN, Series: 1985
E, River Oaks Apartments (Dai-Ichi
Kangyo Bank LOC)
1,600 3.550 12/06/96 1,600
State of California RAN, Series: A
6,000 4.500 06/30/97 6,018
--------
43,564
COLORADO--1.6%
Broomfield IDR VRDN, Series: 1984,
Buckeye Investment Project (Bank of
America NT & SA LOC)
1,500 3.600 12/06/96 1,500
City and County of Denver
Transportation VRDN, Series: 1991 B
(Sanwa Bank LOC)
8,000 3.700 12/06/96 8,000
County of Pitkin IDA VRDN, Series:
1994 B, Aspen Skiing Project (First
Chicago NBD Bank LOC)
1,000 4.100 12/02/96 1,000
--------
10,500
FLORIDA--5.2%
County of Broward Housing Finance
Authority Revenue VRDN Landings
Inverrary Apartments (PNC Bank LOC)
7,000 3.650 12/02/96 7,000
County of Dade School District GO
VRDN, Series: 1994, BTP-66 (MBIA
Insured)
5,535 3.750 12/06/96 5,535
County of Orange Housing Finance
Authority VRDN, Series: A (GNMA
Securities Colld.)
5,500 3.750 12/06/96 5,500
County of Palm Beach Housing Finance
Authority Revenue VRDN, Series: 1988
D, Cotton Bay (New England Mutual
Gtd.)
3,600 3.500 12/06/96 3,600
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
FLORIDA--CONTINUED
Florida State Board of Education
Capital Outlay Board VRDN, Series:
1990 B, BTP-52
<S> <C> <C> <C>
$ 5,000 3.750% 12/06/96 $ 5,000
Jacksonville Health Facilities
Authority VRDN, Series: 1990,
Baptist Health Project (Barnett
Banks NA LOC)
3,200 4.100 12/02/96 3,200
Orlando Utilities Commission VRDN,
Series: 1993, ML SG, Series: 1995
SG8 (Orlando Utilities Commission
Water and Electric-Senior Lien)
3,650 3.600 12/06/96 3,650
--------
33,485
GEORGIA--3.6%
County of DeKalb Development
Authority PCR VRDN, Series: 1987,
General Motors Project (General
Motors Corp. Gtd.)
6,300 3.650 12/06/96 6,300
County of Elbvert Development
Authority IDR VRDN, Series: 1992,
Allied-Signal Project (FMC Corp.
Gtd.)
2,430 3.700 12/06/96 2,430
County of Fulton Development
Authority IDR VRDN, General Motors
Project (General Motors Corp. Gtd.)
1,500 3.650 12/06/96 1,500
County of Fulton Resident Elderly
Authority VRDN, St. Anne's Terrace
Project (NationsBank Georgia LOC)
2,600 3.550 12/06/96 2,600
County of Monroe Development
Authority PCR VRDN, Series: 1995,
Scherer Plant Project (Georgia Power
Co. Gtd.)
4,000 4.100 12/02/96 4,000
Metro Atlanta Rapid Transit Authority
Revenue VRDN, Series: A, BTP-58
(AMBAC Insured)
5,965 3.750 12/06/96 5,965
--------
22,795
ILLINOIS--4.9%
City of Naperville IDR VRDN, General
Motors Project (General Motors Corp.
Gtd.)
1,480 3.650 12/06/96 1,480
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
Illinois HDA TOB, Series: 1987 B,
Residential Mortgage Program
<S> <C> <C> <C>
$ 4,645 3.950 02/01/97 $ 4,645
Illinois HDA TOB, Series: 1987 C,
Residential Mortgage Program
12,900 3.950 02/01/97 12,900
Illinois HDA TOB, Series: 1987 E,
Residential Mortgage Program
2,105 3.950 02/01/97 2,105
Illinois Health Facilities Authority
VRDN, Series: E, Hospital Sisters
Service Project (MBIA Insured)
300 3.550% 12/06/96 300
Illinois Health Facilities Authority
VRDN, Series: 1995, Healthcor
Project (Fuji Bank LOC)
5,950 4.050 12/06/96 5,950
Regional Transportation Authority
Revenue VRDN, Series: D (FGIC
Insured)
4,000 3.650 12/06/96 4,000
-------
31,380
KANSAS--2.7%
City of LaCygne Environmental Revenue
VRDN, Series: 1994 A, Kansas City
Power & Light Project (Kansas City
Power & Light Gtd.)
6,940 3.700 12/06/96 6,940
City of Lawrence GO, Series: 1996 C
9,820 4.000 10/01/97 9,820
City of Topeka Sewer System Revenue
VRDN, Series: 1984 (MBIA Insured)
500 3.550 12/01/96 500
-------
17,260
KENTUCKY--0.3%
City of Mayfield Lease Revenue VRDN,
Series: 1996, Kentucky League of
Cities Pooled Project (PNC Bank LOC)
1,700 3.700 12/06/96 1,700
LOUISIANA--1.4%
Parish of Caddo IDR VRDN, General
Motors Corp. Project (General Motors
Corp. Gtd.)
3,500 3.650 12/06/96 3,500
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
Parish of West Baton Rouge District
#3 PCR CP, Dow Chemical Project (Dow
Chemical Gtd.)
<S> <C> <C> <C>
$ 1,700 3.600% 01/15/97 $ 1,700
West Feliciana Parish PCR IDR VRDN,
Series: 1986, Gulf States Utilities
Project (Canadian Imperial Bank of
Commerce LOC)
3,300 4.050 12/02/96 3,300
West Feliciana Parish PCR VRDN,
Series: 1985 D, Gulf States
Utilities Project (Canadian Imperial
Bank of Commerce LOC)
700 4.050 12/02/96 700
--------
9,200
MARYLAND--7.5%
City of Baltimore IDA VRDN, Series:
1986, Capital Acquisition Program
(Dai-Ichi Kangyo Bank LOC)
7,300 3.700 12/06/96 7,300
County of Anne Arundel PCR Bond,
Baltimore Gas and Electric Project
(Baltimore Gas & Electric Gtd.)
2,685 3.950 07/01/97 2,685
County of Baltimore Consolidated CP,
Series: 1995, Public Improvement BAN
2,900 3.750 12/10/96 2,900
County of Montgomery CP BAN, Series:
1995
2,300 3.600 12/10/96 2,300
Maryland State Community Development
Administration, Series: PT-12,
Merrill P-Floats (Maryland Community
Development Administration)
7,720 3.550 12/02/96 7,720
Maryland State Economic Development
Authority VRDN, Series: 1995
(NationsBank NA LOC)
2,400 3.550 12/06/96 2,400
Maryland State Health & Higher
Education Facility Authority VRDN,
Series: A, Helix Health, Inc.
(NationsBank NA LOC)
16,300 3.550 12/06/96 16,300
Maryland State Health & Higher
Education Facility Authority VRDN,
Series: D, Pooled Loan Program
(NationsBank NA LOC)
5,915 3.550 12/06/96 5,915
--------
47,520
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
MASSACHUSETTS--1.2%
Massachusetts Housing Finance
Authority TOB, Series: 6, Single
Family Mortgage Program
(Massachusetts Housing Finance
Authority)
<S> <C> <C> <C>
$ 1,895 3.850% 12/01/96 $ 1,895
Massachusetts Municipal Electric Co.
Revenue VRDN, Series: 1994 B, BTP-67
(MBIA Insured)
5,760 3.750 12/06/96 5,760
--------
7,655
MICHIGAN--2.5%
City of Detroit School District,
Series: 1996, State School Aid Notes
(Detroit School District Gtd.)
8,000 4.500 05/01/97 8,018
Michigan State Strategic Fund IDR
VRDN, Allied-Signal Project (FMC
Corp. Gtd.)
6,700 3.650 12/06/96 6,700
Michigan State Strategic Fund PCR CP
(Dow Chemical Gtd.)
1,420 3.750 01/27/97 1,420
--------
16,138
MISSOURI--2.9%
City of St. Louis TRAN, Series: 1996
5,000 4.750 06/30/97 5,021
County of Callaway IDA Health System
VRDN, Series: 1995 (NationsBank
Tennessee LOC)
4,800 3.600 12/06/96 4,800
County of St. Louis IDA VRDN,
Friendship Village West Community
Project (LaSalle National Bank LOC)
4,370 3.600 12/06/96 4,370
Missouri Health & Education Facility
Authority Revenue VRDN, Series: 1996
A, Bethesda Barclay House Project
(Mercantile Bank of St. Louis NA
LOC)
4,200 4.250 12/02/96 4,200
--------
18,391
MONTANA--1.5%
City of Forsyth PCR VRDN, Series:
1988 A, Pacificorp Project
(Industrial Bank of Japan LOC)
9,400 4.400 12/02/96 9,400
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
NEVADA--0.2%
Nevada Housing Division Housing
Revenue Bonds Single Family Program
Senior Bonds, A-1
<S> <C> <C> <C>
$ 1,065 3.700% 04/01/97 $ 1,065
NEW YORK--8.4%
City of New York GO RAN, Series: B
(Bank of Nova Scotia LOC)
10,000 4.500 06/30/97 10,041
City of New York GO VRDN, Subseries:
1994 B-4 (Union Bank of Switzerland
LOC)
1,400 4.250 12/02/96 1,400
Marine Midland Premium Loan Trust
VRDN, Series: 1991 (Hong Kong &
Shanghai Banking Corp. LOC)
1,200 3.750 12/06/96 1,200
Marine Midland Premium Loan Trust
VRDN, Series: 1991 B (Hong Kong &
Shanghai Banking Corp. LOC)
1,492 3.850 12/06/96 1,492
New York State Environmental
Facilities Corp. PCR VRDN, Eagle
Trust Series: 943204 (FSAC Insured)
19,300 3.650 12/06/96 19,300
New York State Medical Care Finance
Agency Revenue Bond, Series: BTP-175
(U.S. Government Securities Colld.)
20,000 3.850 12/17/96 20,000
--------
53,433
NORTH CAROLINA--1.5%
County of Buncombe PCR IDR VRDN,
Series: 1996, Cooper Industries
Project (Cooper Industries Gtd.)
3,200 3.750 12/06/96 3,200
County of Wake Industrial Pollution
Finance Authority PCR VRDN, Carolina
Power & Light Project (Sumitomo Bank
Ltd. LOC)
1,400 3.650 12/06/96 1,400
North Carolina Medical Care
Commission Hospital Revenue VRDN,
Series: 1991 A, Pooled Financing
Project (NationsBank NA LOC)
4,700 4.050 12/02/96 4,700
--------
9,300
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
OHIO--4.3%
County of Mahoning Care Facility IDR
VRDN, Series: 1994, Assumption
Nursing Home Project (PNC Bank LOC)
<S> <C> <C> <C>
$ 1,400 3.650% 12/06/96 $ 1,400
State of Ohio Air Quality Development
Authority CP, Series: A, Pollution
Control-Duquesne (Union Bank of
Switzerland LOC)
4,000 3.950 07/16/97 4,000
State of Ohio GO VRDN, Series: 1994,
BTP-170
5,875 3.700 12/06/96 5,875
State of Ohio Higher Education
Capital Facilities VRDN, Series:
1990 A, BTP-29 (MBIA Insured)
3,000 3.750 12/06/96 3,000
State of Ohio Higher Education
Capital Facilities VRDN, Series:
1994 A, BTP-69 (AMBAC Insured)
8,745 3.750 12/06/96 8,745
Red Roof Inns Mortgage Bond Trust
VRDN (National City Bank LOC)
4,529 3.650 12/15/96 4,529
--------
27,549
OKLAHOMA--3.4%
State of Oklahoma Water Resources
Board, Series: 1994 A, State Loan
Program
21,725 3.750 03/01/97 21,725
OREGON--1.3%
City of Medford Hospital Facilities
Authority VRDN, Series: 1991, Rogue
Valley Project (Banque Paribas LOC)
8,400 3.700 12/06/96 8,400
</TABLE>
PENNSYLVANIA--11.3%
City of Philadelphia Hospital &
Higher Education Facilities
Authority VRDN, Series: A,
Children's Hospital Project
<TABLE>
<S> <C> <C> <C>
4,500 4.000 12/02/96 4,500
</TABLE>
City of Philadelphia IDR VRDN,
Series: 1988, Franklin Institute
Project (PNC Bank LOC)
<TABLE>
<S> <C> <C> <C>
2,800 3.650 12/06/96 2,800
City of Philadelphia School District
TRAN
17,000 4.500 06/30/97 17,047
City of Philadelphia TRAN, Series:
1995-96 A
18,000 4.500 06/30/97 18,055
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
County of Schuylkill IDA IDR VRDN,
Gilbert Power Project (Mellon Bank
NA LOC)
<S> <C> <C> <C>
$ 7,650 3.550% 12/06/96 $ 7,650
County of Warren Hospital Revenue
VRDN, Series: 1994 B (PNC Bank LOC)
1,000 3.650 12/06/96 1,000
Delaware Valley Regional Finance
Authority Pooled Revenue VRDN,
Series: 1985 A (Midland Bank PLC
LOC)
5,000 3.600 12/06/96 5,000
Delaware Valley Regional Finance
Authority Pooled Revenue VRDN,
Series: 1985 C (Midland Bank PLC
LOC)
2,400 3.600 12/06/96 2,400
Delaware Valley Regional Finance
Authority Pooled Revenue VRDN,
Series: 1985 A-D (Midland Bank PLC
LOC)
9,500 3.600 12/06/96 9,500
Delaware Valley Regional Finance
Authority Pooled Revenue VRDN,
Series: 1985 D (Midland Bank PLC
LOC)
1,900 3.600 12/06/96 1,900
State of Pennsylvania Higher
Education Facilities Authority VRDN,
Series: 1996, Allegheny College
Project (Mellon Bank NA LOC)
2,000 3.550 12/06/96 2,000
--------
71,852
RHODE ISLAND--0.4%
State of Rhode Island TAN, Series:
1996 A
2,500 4.500 06/30/97 2,507
SOUTH CAROLINA--1.9%
County of Lexington IDR VRDN, Series:
1992, Allied-Signal Project (FMC
Corp. Gtd.)
700 3.700 12/06/96 700
County of Lexington Pollution Control
Finance Authority IDR VRDN, Series:
1992 A, Allied-Signal Project (FMC
Corp. Gtd.)
1,880 3.700 12/06/96 1,880
South Carolina Public Service
Authority Revenue VRDN, Series: 1995
B ML SG, Series: SG-32 (FGIC
Insured)
9,855 3.650 12/06/96 9,855
--------
12,435
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
SOUTH DAKOTA--0.4%
State of South Dakota HDA Homeowner
Mortgage VRDN, Merrill P-Floats,
Series: PT-73-A
<S> <C> <C> <C>
$ 2,500 3.700% 12/06/96 $ 2,500
TENNESSEE--2.6%
City of Clarksville Public Building
Authority Revenue VRDN, Series:
1995, Tennessee Muni Bond Fund
(NationsBank of Florida LOC)
1,600 3.550 12/06/96 1,600
City of Memphis GO VRDN, Series: 1996
ML SG, Series: SGB-23
5,000 3.650 12/06/96 5,000
County of Chattanooga-Hamilton
Hospital Authority VRDN, Series:
1987, Erlanger Medical Center
Project
800 4.200 12/02/96 800
County of Hamilton IDA VRDN, Series:
1995, Tennessee Aquarium Project
(NationsBank Tennessee LOC)
5,350 3.550 12/06/96 5,350
County of Shelby GO, Series: B, BTP-
216
4,000 3.700 11/06/97 4,000
--------
16,750
TEXAS--6.9%
Brazos River Harbor Navigation
District PCR CP, Series: 1987 B, Dow
Chemical Project (Dow Chemical Gtd.)
3,000 3.750 01/27/97 3,000
Brazos River Harbor Navigation
District PCR CP, Series: 1990, Dow
Chemical Project (Dow Chemical Gtd.)
1,000 3.750 01/27/97 1,000
City of Austin School District
Building VRDN, Series: 1996 ML SG,
Series: SG-68 (Permanent School Fund
of Texas Gtd.)
7,300 3.650 12/06/96 7,300
City of Denton Independent School
District GO, Series: B, (Permanent
School Fund of Texas Gtd.)
10,000 3.980 08/15/97 10,000
City of Houston Water & Sewer System
CP, Series: A
5,000 3.650 01/23/97 5,000
City of Mansfield Independent School
District, Series: 1996 School
Building (Permanent School Fund of
Texas Gtd.)
7,500 4.140 07/01/97 7,500
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
TAX-EXEMPT PORTFOLIO--CONTINUED
TEXAS--CONTINUED
County of Bexar Multifamily Housing
Finance Authority VRDN, Series: 1988
A, Creighton's Mill Development
Project (New England Mutual Gtd.)
<S> <C> <C> <C>
$ 2,600 3.650% 12/06/96 $ 2,600
County of Harris Toll Road Unlimited
Tax Revenue VRDN, Series: 1994 A,
Citicorp Eagle Trust Series: 954302
5,500 3.700 12/06/96 5,500
State of Texas Water Development
Board Pooled VRDN, Series: 1992 A
Revolving Fund (Junior Lien)
2,100 4.200 12/02/96 2,100
--------
44,000
VIRGINIA--2.9%
City of Norfolk GO VRDN, Eagle Trust,
Series: 944601
4,800 3.700 12/06/96 4,800
City of Richmond Redevelopment &
Housing Authority VRDN, Series: 1995
A, Old Manchester Project (Wachovia
Bank of North Carolina NA LOC)
2,000 3.650 12/06/96 2,000
City of Roanoke IDR VRDN, Series:
1994, Cooper Industries Project
(Cooper Industries Gtd.)
2,000 3.700 12/06/96 2,000
State of Virginia GO VRDN, Series:
1994, Citicorp Eagle Trust, Series:
954601
7,000 3.700 12/06/96 7,000
Town of Louisa IDA PCR CP, Series:
1984 (Virginia Electric Power Gtd.)
1,000 3.550 12/17/96 1,000
Town of Louisa PCR CP, Series: 1987
(Virginia Electric Power Gtd.)
1,800 3.800 01/15/97 1,800
--------
18,600
WASHINGTON--4.6%
City of Kent Economic Development
Corp. IDR VRDN, Associated Grocers
Project (Seattle-First National Bank
LOC)
3,800 4.272 12/06/96 3,800
City of Seattle Metropolitan
Municipality GO (U.S. Government
Securities Colld.)
1,000 7.200 01/01/97 1,005
</TABLE>
<TABLE>
<CAPTION>
Principal Interest Maturity Amortized
Amount Rate Date Cost
- -------------------------------------------------------------------------------------------------------
Washington Public Power Supply System
Revenue Bond,
Series: 1996 A BTP-206 (AMBAC
Insured)
<S> <C> <C> <C>
$ 4,950 4.000% 08/21/97 $ 4,950
Washington Public Power Supply System
Revenue VRDN,
ML SG, Series: SG-15 (MBIA Insured)
6,595 3.650 12/06/96 6,595
Washington Public Power Supply System
Revenue VRDN,
Series: 1990 B BTP-85 (U.S.
Government Securities Colld.)
6,221 3.750 12/06/96 6,221
Washington State GO VRDN, Series:
1993 B
6,950 3.650 12/06/96 6,950
--------
29,521
WISCONSIN--0.8%
Wisconsin Health & Education Revenue
Bond, Series:
1996 B, Riverview Hospital
Association
(Firstar Bank of Milwaukee NA LOC)
500 4.150 12/02/96 500
Wisconsin Housing & Economic
Development Authority,
Home Ownership Revenue Bond, Series:
A
4,875 3.800 03/01/97 4,875
--------
5,375
WYOMING--0.4%
City of Green River PCR VRDN Allied
Signal Project
(FMC Corp. Gtd.)
2,225 3.700 12/06/96 2,225
OTHER MUNICIPAL INVESTMENTS--1.7%
IBM Tax-Exempt Grantor Trust Asset-
Back Lease VRDN, Series: IBM 1996 A,
Certificate Merrill P-Floats (Credit
Suisse Gtd.)
9,050 3.800 12/06/96 9,050
Pooled Puttable Floating Option VRDN,
Series: PPT2 (Alaska Housing Finance
Corp. Insured)
1,650 4.100 12/02/96 1,650
--------
10,700
- -------------------------------------------------------------------------------------------------------
TOTAL MUNICIPAL INVESTMENTS $626,125
- -------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Interest Maturity
Shares Rate Date Value
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OTHER INVESTMENTS--0.7%
AIM Tax Free Money Market Fund
105 -- -- $ 105
Dreyfus Tax Exempt Cash Management
Fund
400 -- -- 400
Federated Tax Free Trust Money Market
Fund #15
2,739 -- -- 2,739
Federated Tax-Free Trust Money Market
Fund #73
819 -- -- 819
Provident Municipal Fund
353 -- -- 353
- --------------------------------------------------------------------------------------------------------------
TOTAL OTHER $ 4,416
- --------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--98.8% $630,541
- --------------------------------------------------------------------------------------------------------------
Other assets, less liabilities--1.2% 7,966
- --------------------------------------------------------------------------------------------------------------
NET ASSETS--100.0% $638,507
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
November 30, 1996
(All amounts in thousands, except net asset value per unit)
<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 $2,609,388 $ 877,374 $846,646 $630,541
Repurchase agreements, at cost 641,063 398,704 -- --
Cash 1 1 15 --
Receivables:
Interest 10,425 2,750 1,256 5,502
Fund units sold 111,755 32,941 5,246 17,303
Investment securities sold -- -- -- 4,665
Administrator -- 23 28 33
Other assets 2 1 1 1
- -------------------------------------------------------------------------------
TOTAL ASSETS 3,372,634 1,311,794 853,192 658,045
- -------------------------------------------------------------------------------
LIABILITIES:
Payable for:
Fund units redeemed 179,676 37,728 13,167 17,523
Distributions to unitholders 12,481 5,147 3,488 1,768
Accrued expenses:
Advisory fees 605 253 68 134
Administration fees 163 93 76 67
Custodian fees 42 10 8 9
Transfer agent fees 5 3 2 3
Other liabilities 133 45 34 34
- -------------------------------------------------------------------------------
TOTAL LIABILITIES 193,105 43,279 16,843 19,538
- -------------------------------------------------------------------------------
NET ASSETS $3,179,529 $1,268,515 $836,349 $638,507
- -------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $3,181,103 $1,268,820 $836,425 $638,366
Accumulated net realized gain
(loss) on
investment transactions (1,574) (305) (76) 141
- -------------------------------------------------------------------------------
NET ASSETS $3,179,529 $1,268,515 $836,349 $638,507
- -------------------------------------------------------------------------------
Total units outstanding (no par
value),
unlimited units authorized 3,181,103 1,268,820 836,425 638,366
- -------------------------------------------------------------------------------
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.
16
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Year Ended November 30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Diversified Government
Assets Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME $173,018 $56,872 $41,631 $27,703
- ------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 7,832 2,618 1,930 1,885
Administration fees 2,079 1,036 897 885
Custodian fees 360 132 97 106
Transfer agent fees 65 31 22 15
Registration fees 47 29 26 32
Professional fees 139 50 36 50
Trustee fees 86 29 23 23
Other 102 45 36 28
- ------------------------------------------------------------------------------
TOTAL EXPENSES 10,710 3,970 3,067 3,024
Less: Voluntary waivers of in-
vestment advisory fees -- -- (1,158) --
Less: Expenses reimbursable by
Administrator -- (306) (365) (382)
- ------------------------------------------------------------------------------
Net expenses 10,710 3,664 1,544 2,642
- ------------------------------------------------------------------------------
NET INVESTMENT INCOME 162,308 53,208 40,087 25,061
Net realized gains on investment
transactions 327 133 97 102
- ------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RE-
SULTING FROM OPERATIONS $162,635 $53,341 $40,184 $25,163
- ------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
The Benchmark Funds
Money Market Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended November 30,
(All amounts in thousands)
<TABLE>
<CAPTION>
Diversified Assets Government Government Select Tax-Exempt
Portfolio Portfolio Portfolio Portfolio
-------------------------- -------------------------- ------------------------ ------------------------
1996 1995 1996 1995 1996 1995 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCREASE (DE-
CREASE) IN NET
ASSETS FROM:
OPERATIONS:
Net investment
income $ 162,308 $ 159,519 $ 53,208 $ 42,613 $ 40,087 $ 32,259 $ 25,061 $ 24,498
Net realized
gains (losses)
on investment
transactions 327 (1,460) 133 (828) 97 (73) 102 48
- ------------------------------------------------------------------------------------------------------------------------------
Net increase in
net assets re-
sulting from
operations 162,635 158,059 53,341 41,785 40,184 32,186 25,163 24,546
- ------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS:
Net investment
income (162,308) (159,519) (53,208) (42,613) (40,087) (32,259) (25,061) (24,498)
- ------------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to
unitholders (162,308) (159,519) (53,208) (42,613) (40,087) (32,259) (25,061) (24,498)
- ------------------------------------------------------------------------------------------------------------------------------
UNIT TRANSACTIONS
(AT $1.00 PER
UNIT):
Proceeds from
the sale of
units 42,285,142 43,084,716 12,329,359 10,203,042 4,712,236 3,588,011 5,526,968 5,729,794
Reinvested dis-
tributions 860 -- -- -- 963 -- 126 --
Cost of units
redeemed (41,717,147) (43,366,308) (11,911,641) (10,140,281) (4,562,089) (3,396,629) (5,692,419) (5,779,215)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (de-
crease) in net
assets resulting
from unit trans-
actions 568,855 (281,592) 417,718 62,761 151,110 191,382 (165,325) (49,421)
- ------------------------------------------------------------------------------------------------------------------------------
CAPITAL CONTRIBU-
TIONS RECEIVED
FROM NORTHERN
TRUST CORPORA-
TION -- 1,519 -- 915 -- 115 -- --
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (de-
crease) 569,182 (281,533) 417,851 62,848 151,207 191,424 (165,223) (49,373)
Net assets--be-
ginning of year 2,610,347 2,891,880 850,664 787,816 685,142 493,718 803,730 853,103
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS--END
OF YEAR $ 3,179,529 $ 2,610,347 $ 1,268,515 $ 850,664 $ 836,349 $ 685,142 $ 638,507 $ 803,730
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
Diversified Assets Portfolio
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992 1991 1990
- -----------------------------------------------------------------------------------------------------------------------------
<S> <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
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income 0.05 0.06 0.04 0.03 0.04 0.06 0.08
- -----------------------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.05 0.06 0.04 0.03 0.04 0.06 0.08
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS
FROM:
Net investment
income (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08)
- -----------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to
unitholders (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------------------------
Total return
(a)(b) 5.30% 5.78% 3.92% 3.00% 3.80% 6.19% 8.01%
Ratio to average
net assets of :
Expenses, net
of waivers and
reimbursements 0.34% 0.34% 0.35% 0.34% 0.34% 0.35% 0.35%
Expenses, be-
fore waivers
and
reimbursements 0.34% 0.34% 0.35% 0.36% 0.35% 0.36% 0.36%
Net investment income, net of waivers
and reimburse-
ments 5.18% 5.63% 3.74% 3.00% 3.79% 6.18% 8.01%
Net investment income, before waivers
and reimburse-
ments 5.18% 5.63% 3.74% 2.98% 3.78% 6.17% 8.00%
Net assets at end of year (in thousands) $3,179,529 $2,610,347 $2,891,880 $3,200,288 $2,801,744 $2,784,485 $2,192,756
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1989 1988 1987
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
YEAr $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment
income 0.09 0.07 0.06
- -----------------------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.09 0.07 0.06
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS
FROM:
Net investment
income (0.09) (0.07) (0.06)
- -----------------------------------------------------------------------------------------------------------------------------
Total distribu-
tions to
unitholders (0.09) (0.07) (0.06)
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE,
END OF YEAR $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------------------------------------
Total return
(a)(b) 8.98% 7.15% 6.30%
Ratio to average
net assets of :
Expenses, net
of waivers and
reimbursements 0.37% 0.39% 0.41%
Expenses, be-
fore waivers
and
reimbursements 0.37% 0.39% 0.41%
Net investment income, net of waivers
and reimburse-
ments 8.98% 7.15% 6.30%
Net investment income, before waivers
and reimburse-
ments 8.98% 7.15% 6.30%
Net assets at end of year (in thousands) $1,871,713 $1,528,203 $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.
See accompanying notes to financial statements.
19
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
Government 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, BE-
GINNING 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 0.05 0.06 0.04 0.03 0.04 0.06 0.08 0.09 0.07 0.06
- ---------------------------------------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 0.05 0.06 0.04 0.03 0.04 0.06 0.08 0.09 0.07 0.06
- ---------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08) (0.09) (0.07) (0.06)
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.08) (0.09) (0.07) (0.06)
- ---------------------------------------------------------------------------------------------------------------------------------
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)(b) 5.20% 5.64% 3.78% 2.91% 3.91% 6.18% 7.89% 8.63% 6.83% 6.15%
Ratio to average net
assets of:
Expenses, net of
waivers and
reimbursements 0.35% 0.35% 0.34% 0.34% 0.34% 0.35% 0.37% 0.50% 0.54% 0.44%
Expenses, before
waivers and
reimbursements 0.38% 0.40% 0.41% 0.38% 0.40% 0.40% 0.46% 0.50% 0.55% 0.55%
Net investment in-
come, net of waivers
and reimbursements 5.08% 5.49% 3.60% 2.92% 3.71% 6.03% 7.88% 8.63% 6.83% 6.15%
Net investment in-
come, before waivers
and reimbursements 5.05% 5.44% 3.53% 2.88% 3.65% 5.98% 7.79% 8.63% 6.82% 6.04%
Net assets at end of
year (in thousands) $1,268,515 $850,664 $787,816 $1,065,705 $1,163,905 $895,405 $971,720 $423,517 $335,301 $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.
See accompanying notes to financial statements.
20
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the 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 0.05 0.06 0.04 0.03 0.04 0.06 0.01
- -----------------------------------------------------------------------------------------------
Total income from in-
vestment operations 0.05 0.06 0.04 0.03 0.04 0.06 0.01
- -----------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.01)
- -----------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.05) (0.06) (0.04) (0.03) (0.04) (0.06) (0.01)
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
YEAR $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -----------------------------------------------------------------------------------------------
Total return (b)(c) 5.31% 5.82% 3.84% 3.00% 3.71% 5.82% 0.50%
Ratio 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 5.19% 5.67% 3.83% 2.99% 3.70% 5.78% 7.65%
Net investment income,
before waivers and re-
imbursements 4.99% 5.46% 3.60% 2.70% 3.38% 5.38% 6.52%
Net assets at end of
year (in thousands) $836,349 $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.
21
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the 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 0.03 0.04 0.02 0.02 0.03 0.05 0.06 0.06 0.05 0.04
- --------------------------------------------------------------------------------------------------------------------------------
Total income from in-
vestment operations 0.03 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 (0.03) (0.04) (0.02) (0.02) (0.03) (0.05) (0.06) (0.06) (0.05) (0.04)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.03) (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) 3.37% 3.71% 2.62% 2.27% 2.97% 4.57% 5.71% 6.04% 4.92% 4.00%
Ratio to average net
assets of :
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 re-
imbursements 3.32% 3.63% 2.40% 2.27% 2.95% 4.57% 5.71% 6.03% 4.92% 4.00%
Net investment income,
before waivers and re-
imbursements 3.27% 3.57% 2.39% 2.23% 2.90% 4.52% 5.64% 6.03% 4.92% 3.99%
Net assets at end of
year (in thousands) $638,507 $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.
See accompanying notes to financial statements.
22
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
November 30, 1996
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 manage-
ment 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. Pre-
sented herein are the financial statements of the money market portfolios.
The Trust includes four diversified money market portfolios: Diversified As-
sets Portfolio, Government Portfolio, Government Select Portfolio and Tax-Ex-
empt Portfolio (the "Portfolios").
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 re-
quires 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. Ac-
tual results could differ from those estimates. Certain amounts reported for
periods prior to the year ended November 30, 1996 have been restated to con-
form to the current financial statement presentation.
(a) Investment Valuation
Investments are valued at amortized cost, which approximates market value. Un-
der 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.
Each Portfolio may enter into joint repurchase agreements with non-affili-
ated counterparties through a master repurchase agreement with Northern.
Northern administers and manages these repurchase agreements in accordance
with and as part of its duties under its investment advisory agreements with
the Portfolios and does not collect any additional fees from the Portfolios.
The Diversified Assets and Government Portfolios had entered into such joint
repurchase agreements as of November 30, 1996, as reflected in the accompany-
ing Statements of Investments.
(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, 1996, the Trust's most recent tax year end, there were capi-
tal loss carryforwards for U.S. federal tax purposes of approximately
$1,574,000, $305,000 and $76,000 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 ap-
plicable laws or regulations. These capital loss carryforwards expire in 2002.
23
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
November 30, 1996
(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 average
net assets for the year.
(f) Distributions
Each Portfolio's net investment income is declared daily as a dividend to
unitholders of record as of 3:00 p.m., Chicago time. Net realized short-term
capital gains, if any in excess of net capital loss carryforwards, are de-
clared and distributed at least annually.
Distributions of net investment income with respect to a calendar month (in-
cluding 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 addi-
tional 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 year ended November
30, 1996 was to reduce advisory fees as shown on the accompanying Statements
of Operations.
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"), parent company
of Northern, entered into an agreement (the "Put Agreement") dated May 19,
1994 which provided the Trust the right to require the Corporation to pur-
chase, and the Corporation the right to require the Trust to sell, certain
Federal Home Loan and Federal Farm Credit Banks securities held by the Diver-
sified Assets, Government and Government Select Portfolios on or before June
19, 1995 (the "final purchase date"). Pursuant to the Put Agreement, the Cor-
poration, 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, re-
spectively. 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.
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 re-
ceive from each Portfolio a fee, computed daily and payable monthly, at an an-
nual 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 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 year ended November 30,
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,
24
<PAGE>
- --------------------------------------------------------------------------------
.10% of each portfolio's average daily net assets. The expenses reimbursed dur-
ing the year ended November 30, 1996, are shown on the accompanying Statements
of Operations.
Goldman Sachs receives no compensation under the Distribution Agreement.
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 se-
cured by pledged securities equal to or exceeding 120% of the outstanding bal-
ance.
There were no borrowings under this agreement during the year ended November
30, 1996.
25
<PAGE>
The Benchmark Funds
Money Market Portfolios
- -------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS
To the Unitholders and Trustees of
The Benchmark Funds
Money Market Portfolios
We have audited the accompanying statements of assets and liabilities,
including the statements of investments, of the Diversified Assets,
Government, Government Select and Tax-Exempt Portfolios, comprising the Money
Market Portfolios of The Benchmark Funds, as of November 30, 1996, and the
related statements of operations for the year then ended and changes in net
assets for each of the two years in the period then ended and financial
highlights for the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Portfolios' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of the
investments owned at November 30, 1996 by physical examination of the
securities held by the custodian and by correspondence with outside
depositories and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Diversified Assets, Government, Government Select and Tax-Exempt Portfolios,
comprising the Money Market Portfolios of The Benchmark Funds, at November 30,
1996, the results of their operations for the year then ended and the changes
in their net assets for each of the two years in the period then ended and
financial highlights for the periods indicated therein, in conformity with
generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
January 21, 1997
26
<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
John M. Perlowski, Assistant Treasurer
Michael J. Richman, Secretary
Howard B. Surloff, Assistant Secretary
Independent Auditors
Ernst & Young LLP
233 S. Wacker Dr.
Chicago, IL 60606
Legal Counsel
Drinker Biddle & Reath
1345 Chestnut Street
Philadelphia, PA 19107
This 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
Annual Report
November 30, 1996
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
THE BENCHMARK BOND PORTFOLIO
Yields on securities with two- to 30-year maturities remained relatively
stable, moving only 0.20% to 0.30% higher from the beginning of the fiscal year
to the end. Nevertheless, the interest rate environment during the fiscal year
was volatile, as investors tried to anticipate Federal Reserve activity. Two-
year securities traversed a 1.64% range, and the 30-year Treasury moved in a
1.24% range. The Fed, however, remained on hold after adjusting policy on
January 31, 1996. In this uncertain interest rate environment, investors
continued to reach for yield in their search for incremental return. As a
result, the corporate and mortgage sectors outperformed Treasuries, with the
best performance coming from lower-quality issues.
Before fees, the portfolio provided a marginally higher return than its
benchmark index. The portfolio's interest rate posture was neutral to its
index, which neither added nor detracted from performance. The portfolio's
outperformance was generated through overweightings in non-Treasury sectors
and, in particular, through exposure to surplus notes and perpetual floating
rate notes.
Moving into 1997, we continue to hold a normal interest rate posture. The
current inflation rate continues to make yields attractive from an historical
real yield perspective, though the tight labor market gives us pause. If
meaningful progress is made toward balancing the budget and entitlement reform,
we may become more constructive on the market. While corporate spreads remain
tight by historical standards, we continue to find opportunity to add value and
remain overweighted in the corporate and mortgage sectors.
Mark Wirth, Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF
$10,000 INVESTMENT IN BENCHMARK BOND
PORTFOLIO VS. THE LEHMAN BROTHERS
GOVERNMENT/CORPORATE BOND INDEX
[PERFORMANCE GRAPH APPEARS HERE]
Bond Portfolio Lehman Brothers Government/Corporate Bond Index
-------------- -----------------------------------------------
1/11/93 $10,000 $10,000
11/30/93 $11,060 $11,052
11/30/94 $10,613 $10,641
11/30/95 $12,900 $12,587
11/30/96 $13,619 $13,291
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Lehman Brothers
Average Annual Total Returns Government/
For Periods Ended Class A Corporate
November 30, 1996: Units Bond Index
- ---------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 5.57% 5.59%
- ---------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 8.26% 7.58%
- ---------------------------------------------------------------------------------------
</TABLE>
[PERFORMANCE GRAPH APPEARS HERE]
Bond Portfolio Lehman Brothers Government/Corporate Bond Index
-------------- -----------------------------------------------
7/3/95 $10,000 $10,000
11/30/95 $10,608 $10,499
11/30/96 $11,174 $11,086
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Lehman Brothers
Average Annual Total Returns Government/
For Periods Ended Class C Corporate
November 30, 1996: Units Bond Index
- -----------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 5.33% 5.59%
- -----------------------------------------------------------------------------------------
Since Commencement on 7/3/95: 8.17% 7.55%
- -----------------------------------------------------------------------------------------
</TABLE>
[PERFORMANCE GRAPH APPEARS HERE]
Bond Portfolio Lehman Brothers Government/Corporate Bond Index
-------------- -----------------------------------------------
9/14/94 $10,000 $10,000
11/30/94 $ 9,906 $ 9,891
11/30/95 $11,992 $11,700
11/30/96 $12,612 $12,354
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Lehman Brothers
Average Annual Total Returns Government/
For Periods Ended Class D Corporate
November 30, 1996: Units Bond Index
- ---------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 5.17% 5.59%
- ---------------------------------------------------------------------------------------
Since Commencement on 9/14/94: 11.05% 10.02%
- ---------------------------------------------------------------------------------------
</TABLE>
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
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
THE BENCHMARK INTERNATIONAL BOND PORTFOLIO
Total return performance of most non-U.S. bond markets was excellent for the
fiscal year ended November 30, 1996. Economic growth in these countries turned
out to be slower than expected and, as a result, monetary policy remained loose
during the year. In addition inflation was cooperative as it actually declined
in many markets.
The portfolio significantly outperformed its benchmark during the period, due
primarily to its 10% underweighting in the Japanese bond and currency markets.
Of the non-U.S. bond markets, Japan performed the worst during the year, and
the yen fell nearly 11% in value versus the U.S. dollar.
Whenever the dollar increases in value versus other currencies, such as the
yen, the portfolio's nominal return is likely to suffer. However, because the
portfolio was significantly underweighted in Japan throughout the year, we were
able to avoid some of the currency effects caused by the stronger dollar and
weaker yen.
In addition to underweighting the Japanese market, another strategy that
contributed to the portfolio's relative performance was overweighting the
Canadian and Australian markets, both of which performed exceptionally well
compared to other countries.
We recently reduced the portfolio's underweight in Japan and its overweight
in U.S. dollars. Even though the yen may continue to fall further, going
forward, we don't believe it's prudent to take as strong a stand as we did over
the past 12 months. From an overall interest rate sensitivity standpoint, the
portfolio is positioned near neutral versus its benchmark.
Mike Lannan, Portfolio Manager
COMPARISON OF CHANGE IN VALUE
OF $10,000 INVESTMENT IN BENCHMARK INTERNATIONAL BOND PORTFOLIO VS. THE J.P.
MORGAN NON-U.S. GOVERNMENT BOND INDEX
[PERFORMANCE GRAPH APPEARS HERE]
International Bond Portfolio J.P. Morgan Non-U.S. Government Bond Index
---------------------------- ------------------------------------------
3/28/94 $10,000 $10,000
11/30/94 $10,403 $10,521
11/30/95 $12,296 $12,589
11/30/96 $13,461 $13,487
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
J.P.
Morgan
Average Annual Total Returns Non-U.S.
For Periods Ended Class A Government
November 30, 1996: Units Bond Index
<S> <C> <C>
One Year: 9.47% 7.13%
- -------------------------------------------------------------------------------------------
Since Commencement on 3/28/94: 11.72% 11.80%
</TABLE>
[PERFORMANCE GRAPH APPEARS HERE]
Diversified Growth Portfolio J.P. Morgan Non-U.S. Government Bond Index
---------------------------- ------------------------------------------
11/20/95 $10,000 $10,000
11/30/95 $ 9,970 $ 9,912
11/30/96 $10,871 $10,619
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
J.P.
Morgan
Average Annual Total Returns Non-U.S.
For Periods Ended Class D Government
November 30, 1996: Units Bond Index
<S> <C> <C>
One Year: 9.04% 7.13%
- ------------------------------------------------------------------------------------------
Since Commencement on 11/20/95: 8.45% 6.02%
</TABLE>
2
<PAGE>
- --------------------------------------------------------------------------------
THE BENCHMARK SHORT DURATION PORTFOLIO
The portfolio's composition did not change much during the fiscal year ended
November 30, 1996. We continued to invest primarily in asset-backed and other
floating-rate securities, two-year Treasuries and commercial notes. We tended
to favor securities from the bank and finance sectors, as they offered the most
attractive yields without sacrificing quality.
Compared to the three-month LIBOR Index and the 90-day Treasury Bill Index,
the portfolio performed relatively poorly from February through April. However,
during the final three months of the fiscal year, the portfolio recovered
nicely, with its yield surpassing both indices.
The portfolio's duration was approximately 100 days at the beginning of the
fiscal year, peaked at approximately 160 days in June and decreased to
approximately 80 days by year end, reflecting the more defensive nature of the
portfolio.
With the economy continuing to show some strength, future Federal Reserve
actions are uncertain. As such, we expect to maintain a more defensive
position. We feel that the portfolio remains an attractive alternative to money
market funds for those who want to keep their investments in a short-term
strategy for more than three to six months.
Jerry Pearson, Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF
$10,000 INVESTMENT IN BENCHMARK
SHORT DURATION PORTFOLIO, THE LEHMAN
BROTHERS SHORT (1-3) INVESTMENT
GRADE DEBT INDEX AND THE 3 MONTH
LIBOR INDEX
[PERFORMANCE GRAPH APPEARS HERE]
Short Duration Lehman Brothers Short
Portfolio (1-3) Inv't. Grade Debt Index 3 Month LIBOR Index
-------------- ----------------------------- -------------------
6/2/93 $10,000 $10,000 $10,000
11/30/93 $10,173 $10,294 $10,157
11/30/94 $10,543 $10,422 $10,561
11/30/95 $11,191 $11,608 $11,193
11/30/96 $11,801 $12,362 $11,840
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total Returns
For Periods Ended Class A Lehman 3 Month
November 30, 1996: Units Brothers LIBOR
<S> <C> <C> <C>
One Year: 5.45% 6.49% 5.60%
- -------------------------------------------------------------------------------------------
Since Commencement on 6/2/93: 4.84% 6.24% 4.94%
</TABLE>
3
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
THE BENCHMARK SHORT-INTERMEDIATE BOND PORTFOLIO
Yields on securities with two- to five-year maturities remained relatively
stable, moving only 0.20% to 0.30% higher from the beginning of the fiscal year
to the end. Nevertheless, the interest rate environment during the fiscal year
was volatile, as investors tried to anticipate Federal Reserve activity. Two-
year securities traversed a 1.64% range, while five-year securities moved in a
1.72% range. The Fed, however, remained on hold after adjusting policy on
January 31, 1996. In this uncertain interest rate environment, investors
continued to reach for yield in their search for incremental return. As a
result, the corporate and mortgage sectors outperformed Treasuries, with the
best performance coming from lower-quality issues.
Before fees, the portfolio provided a marginally higher return than its
benchmark index. The portfolio's interest rate posture was neutral to its
index, which neither added nor detracted from performance. The portfolio's
outperformance was generated through overweightings in non-Treasury sectors.
Moving into 1997, we continue to hold a normal interest rate posture. The
current inflation rate continues to make yields attractive from an historical
real yield perspective, though the tight labor market gives us pause. If
meaningful progress is made toward balancing the budget and entitlement reform,
we may become more constructive on the market. While corporate spreads remain
tight by historical standards, we continue to find opportunity to add value and
remain overweighted in the corporate and mortgage sectors.
Mark Wirth, Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF
$10,000 INVESTMENT IN BENCHMARK
SHORT-INTERMEDIATE BOND PORTFOLIO VS.
THE MERRILL LYNCH 1-5
CORPORATE/GOVERNMENT INDEX
[PERFORMANCE GRAPH APPEARS HERE]
Short-Intermediate Merrill Lynch 1-5
Bond Portfolio Corporate/Government Index
------------------ --------------------------
1/11/93 $10,000 $10,000
11/30/93 $10,590 $10,641
11/30/94 $10,679 $10,596
11/30/95 $11,916 $11,893
11/30/96 $12,592 $12,582
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Merrill Lynch
Average Annual Total Returns 1-5 Corporate/
For Periods Ended Class A Government
November 30, 1996: Units Bond Index
<S> <C> <C>
One Year: 5.68% 5.79%
- ------------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 6.10% 6.08%
</TABLE>
[PERFORMANCE GRAPH APPEARS HERE]
Short-Intermediate Merrill Lynch 1-5
Bond Portfolio Corporate/Government Index
------------------ --------------------------
9/14/94 $10,000 $10,000
11/30/94 $ 9,970 $ 9,928
11/30/95 $11,076 $11,143
11/30/96 $11,654 $11,788
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Merrill Lynch
Average Annual Total Returns 1-5 Corporate/
For Periods Ended Class D Government
November 30, 1996: Units Bond Index
<S> <C> <C>
One Year: 5.22% 5.79%
- ------------------------------------------------------------------------------------------
Since Commencement on 9/14/94: 7.16% 7.72%
</TABLE>
4
<PAGE>
- --------------------------------------------------------------------------------
THE BENCHMARK U.S. GOVERNMENT SECURITIES PORTFOLIO
A static snapshot of the fiscal year would show short-term government bond
yields rising 0.25% higher during the year, on average. By most measures, this
movement would be considered modest. Nevertheless, this seeming stability does
not serve as an accurate portrayal of the volatility experienced. Two-year
Treasury bonds, for example, traded in a 1.75% range--from 4.75% to 6.50%--
during the fiscal year. Investors moved the market in this sideways fashion
based on ever-changing views of the future economic environment and its impact
on future interest rates. In general, the Federal Reserve was quiet during the
year, as it has not adjusted short-term rates since January 31, 1996.
As we have maintained since April 1996 (when two-year Treasury rates moved
above 6.00%), the current benign inflation outlook makes short-term interest
rates attractive from a "real" return standpoint for long-term investors. Thus,
the portfolio has been in a normal interest rate posture with respect to short-
term government bonds throughout the year, and it has correspondingly earned
market-type returns.
With the portfolio limited to investing in U.S. Treasury, government agency
and government agency mortgage-backed securities, we continually monitor the
agency/Treasury relative value trade-off. While government agency securities do
not typically compensate investors for the liquidity foregone relative to
Treasuries, we have found opportunities in mortgage securities to add
incremental yield with only a minimal level of call risk.
Steve Schafer, Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF
$10,000 INVESTMENT IN BENCHMARK
U.S. GOVERNMENT SECURITIES PORTFOLIO
VS. THE MERRILL LYNCH 1-5 GOVERNMENT
INDEX
[PERFORMANCE GRAPH APPEARS HERE]
U.S. Government Merrill Lynch 1-5
Securities Portfolio Government Index
-------------------- ------------------
4/5/93 $10,000 $10,000
11/30/93 $10,300 $10,346
11/30/94 $10,241 $10,295
11/30/95 $11,386 $11,538
11/30/96 $11,972 $12,192
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total Returns Merrill Lynch
For Periods Ended Class A 1-5 Government
November 30, 1996: Units Index
<S> <C> <C>
One Year: 5.15% 5.67%
- ------------------------------------------------------------------------------------------
Since Commencement on 4/5/93: 5.04% 5.57%
</TABLE>
[PERFORMANCE GRAPH APPEARS HERE]
U.S. Government Merrill Lynch 1-5
Securities Portfolio Government Index
-------------------- ------------------
12/29/95 $10,000 $10,000
11/30/96 $10,405 $10,476
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total Returns** Merrill Lynch
For Period Ended Class C 1-5 Government
November 30, 1996: Units Index
<S> <C> <C>
Since Commencement on 12/29/95: 4.05% 4.76%
</TABLE>
[PERFORMANCE GRAPH APPEARS HERE]
U.S. Government Merrill Lynch 1-5
Securities Portfolio Government Index
-------------------- ------------------
9/15/94 $10,000 $10,000
11/30/94 $ 9,910 $ 9,913
11/30/95 $10,966 $11,110
11/30/96 $11,490 $11,740
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total Returns Merrill Lynch
For Periods Ended Class D 1-5 Government
November 30, 1996: Units Index
<S> <C> <C>
One Year: 4.77% 5.67%
- ------------------------------------------------------------------------------------------
Since Commencement on 9/15/94: 6.48% 7.53%
</TABLE>
**Average Annual Total Returns are not annualized for periods less than one
year.
5
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
THE BENCHMARK U.S. TREASURY INDEX PORTFOLIO
On average, Treasury yields remained relatively stable from the beginning of
the fiscal year to the end. In between, however, there was significant short-
term volatility, as the ever-changing views on where the economy was headed and
what impact that would have on future interest rates caused yields to go up and
down.
Yields on two-year Treasury bonds, for example, moved in a 1.75% range, while
yields on the 30-year Treasury bond moved in a 1.24% range during the year.
As it is designed to do, the U.S. Treasury Index Portfolio performed in line
with the Lehman Brothers U.S. Treasury Bond Index during the period from
December 1, 1995, to November 30, 1996. We will continue to invest in
securities represented by the Index in our effort to provide returns that
closely approximate those of the Index.
Richard Steck, Portfolio Manager
COMPARISON OF CHANGE IN VALUE
OF $10,000 INVESTMENT IN BENCHMARK U.S. TREASURY INDEX PORTFOLIO VS. THE LEHMAN
BROTHERS U.S. TREASURY BOND INDEX
[PERFORMANCE GRAPH APPEARS HERE]
U.S. Treasury Lehman Brothers U.S.
Index Portfolio Treasury Bond Index
--------------- --------------------
1/11/93 $10,000 $10,000
11/30/93 $10,994 $11,019
11/30/94 $10,576 $10,625
11/30/95 $12,369 $12,473
11/30/96 $13,000 $13,127
Past preformance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total Returns Lehman Brothers
For Periods Ended Class A U.S. Treasury
November 30, 1996: Units Bond Index
<S> <C> <C>
One Year: 5.10% 5.24%
- ----------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 6.97% 7.24%
</TABLE>
[PERFORMANCE GRAPH APPEARS HERE]
[PLOT POINTS TO COME]
Past preformance is not predictive of future performance.
<TABLE>
<CAPTION>
Average Annual Total Returns Lehman Brothers
For Periods Ended Class D U.S. Treasury
November 30, 1996: Units Bond Index
<S> <C> <C>
One Year: 4.72% 5.24%
- -----------------------------------------------------------------------------------------
Since Commencement on 11/16/94: 10.40% 11.29%
</TABLE>
6
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
7
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- ----------------------------------------------
Principal Maturity
Amount Rate Date Value
- ----------------------------------------------
BOND PORTFOLIO
<C> <C> <S> <C>
ASSET-BACKED SECURITIES--0.2%
AUTOMOTIVE--0.2%
General Motors
Acceptance Corp.
Class A, Series:
1993-B
$ 827 4.000% 09/15/98 $ 819
HOME EQUITY LOANS--0.0%
U.S. Home Equity
Loan, Series: 1991-2
116 8.500 04/15/21 117
- ----------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $941) $ 936
- ----------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--
12.3%
Countrywide Funding
Corp.
Class A4, Series:
1993-1
$13,567 5.321% 10/25/23 $ 12,244
Delta Funding Corp.,
Interest Only
Stripped Security,
Class A-4, Series:
1991-1*
-- -- 01/01/06 202
Donaldson, Lufkin &
Jenrette, Inc.
Mortgage Acceptance
Corp.,
Series 1994-Q8,
Class 2A1
5,752 7.250 05/25/24 5,752
Donaldson, Lufkin &
Jenrette, Inc.
Mortgage Acceptance
Corp.,
Adjustable Rate,
Interest Only
Stripped Security,
Series 1995-QE9*
-- -- 11/25/25 1,698
GE Capital Mortgage
Services Inc.
Class A-23, Series:
1994-10
13,850 6.500 03/25/24 12,160
PaineWebber Mortgage
Acceptance Corp.
Class A15, Series:
1993-9
7,919 7.000 10/25/23 7,848
Prudential Home
Mortgage Securities,
Adjustable Rate,
Interest Only
Stripped Security
Class A-17,
Series: 1993-36*
-- -- 10/25/23 2,972
Class A-18,
Series: 1994-8*
-- -- 03/25/24 1,123
</TABLE>
<TABLE>
<CAPTION>
Description
- -------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- -------------------------------------------------------
<C> <C> <S> <C> <C> <C> <C> <C>
Residential
Funding Mortgage
Securities,
Adjustable Rate,
Interest Only
Stripped Security
Class A-14,
Series: 1993-S22*
$ -- --% 06/25/23 $ 2,140
- -------------------------------------------------------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS (Cost
$46,317) $ 46,139
- -------------------------------------------------------
CORPORATE BONDS--10.9%
BROKERAGE SERVICES--2.5%
Salomon Brothers,
Inc.
$ 9,450 8.000% 03/28/97 $ 9,515
FINANCIAL--1.4%
General Motors
Acceptance Corp.
4,285 8.875 06/01/00 5,119
INSURANCE SERVICES--1.8%
Lumberman's
Mutual Casualty
Co.
6,000 9.150 07/01/26 6,717
RETAIL--2.1%
Penney (J.C.) &
Co., Inc.
7,700 6.900 08/15/03 7,939
SANITARY SERVICES--3.1%
WMX Technologies
11,000 7.100 08/01/03 11,604
- -------------------------------------------------------
TOTAL CORPORATE BONDS (Cost
$38,843) $ 40,894
- -------------------------------------------------------
U.S. GOVERNMENT AGENCIES--
21.9%
COLLATERALIZED MORTGAGE OBLIGA-
TIONS--15.7%
FEDERAL HOME LOAN MORTGAGE
CORP. MULTICLASS
INTEREST ONLY STRIPPED SE-
CURITY*--0.0%
Class 1392-S,
Series: 1392
$ -- --% 09/15/18 $ 37
FEDERAL HOME LOAN MORTGAGE
CORP. MULTICLASS
PRINCIPAL ONLY STRIPPED
SECURITIES*--4.2%
Class B, Series:
G011
$ 912 -- 04/25/23 632
Class D, Series:
1571
13,511 -- 08/15/23 8,525
Class PD, Series:
1750-C
10,054 -- 03/15/24 6,550
--------
15,707
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ----------------------------------------
Principal Maturity
Amount Rate Date Value
- ----------------------------------------
<C> <C> <S> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION
REMIC TRUST--5.8%
Class 3-D, Series:
1990-3
$ 953 8.500% 07/25/18 $ 966
Class A, Series:
1996-M4
8,947 7.750 03/17/17 9,216
Class G, Series:
1992-73
7,500 7.500 04/25/21 7,660
Class SA, Series:
1991-127
660 12.661 09/25/98 671
Class SB, Series:
1994-59
6,364 2.880 03/25/24 3,304
--------
21,817
FEDERAL NATIONAL MORTGAGE
ASSOCIATION REMIC TRUST
INTEREST ONLY STRIPPED SE-
CURITY*--0.2%
Class S, Series:
G-12
-- -- 05/25/21 705
FEDERAL NATIONAL MORTGAGE
ASSOCIATION REMIC TRUST
PRINCIPAL ONLY STRIPPED SE-
CURITIES*--5.5%
Class B, Series:
1993-161
$ 4,732 -- 10/25/18 4,504
Class D, Series:
1993-132
1,947 -- 10/25/22 1,082
Class EA, Series:
1993-205
3,150 -- 09/25/23 2,165
Class G, Series:
1994-9
1,999 -- 11/25/23 1,870
Class L, Series:
1993-184
7,585 -- 09/25/23 4,982
Class PR, Series:
1996-14
9,000 -- 01/25/24 6,019
--------
20,622
MORTGAGE-BACKED SECURITIES--
6.2%
FEDERAL HOME LOAN MORTGAGE CORP.--
0.0%
1 6.500 06/01/04 1
GOVERNMENT NATIONAL MORTGAGE ASSOCIA-
TION--6.2%
7,615 8.000 11/15/26 7,852
Series: 2026
8,802 8.000 08/15/26 9,072
5,940 8.000 09/15/26 6,122
--------
23,046
- ----------------------------------------
TOTAL U.S. GOVERNMENT AGEN-
CIES
(Cost $76,677) $ 81,935
- ----------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- -------------------------------------------
Principal Maturity
Amount Rate Date Value
- -------------------------------------------
<C> <C> <S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--43.6%
U.S. TREASURY NOTES--41.4%
$12,310 6.750% 02/28/97 $ 12,352
25,000 5.875 10/31/98 25,125
13,600 6.750 05/31/99 13,942
38,745 6.875 08/31/99 39,901
14,000 7.750 01/31/00 14,807
8,450 5.750 08/15/03 8,363
37,000 7.500 02/15/05 40,486
--------
154,976
U.S. TREASURY BOND--2.2%
7,635 7.125 02/15/23 8,239
- -------------------------------------------
TOTAL U.S. GOVERNMENT OBLI-
GATIONS
(Cost $160,865) $163,215
- -------------------------------------------
FLOATING RATE BANK NOTES--
6.0%
Lloyds Bank PLC
$11,450 6.063% 12/13/96 $ 10,138
National
Westminster Bank
13,800 5.625 02/28/97 12,101
- -------------------------------------------
TOTAL FLOATING RATE BANK
NOTES
(Cost $21,480) $ 22,239
- -------------------------------------------
SHORT-TERM INVESTMENT--4.2%
Berliner Handels und
Frankfurter,
Grand Cayman
$15,853 5.688% 12/02/96 $ 15,853
- -------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $15,853) $ 15,853
- -------------------------------------------
TOTAL INVESTMENTS--99.1%
(Cost $360,976) $371,211
- -------------------------------------------
Other assets, less
liabilities--0.9% 3,201
- -------------------------------------------
NET ASSETS--100.0% $374,412
- -------------------------------------------
- -------------------------------------------
</TABLE>
*At November 30, 1996, effective yields on these securities ranged from
approximately 5.00% to 15.00%. Refer to notes to statements of investments for
a discussion of stripped securities.
See accompanying notes to financial statements.
9
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Local Currency Maturity
Principal Amount Rate Date Value
- ------------------------------------------------------
INTERNATIONAL BOND PORTFOLIO
<C> <C> <S> <C>
DEBT OBLIGATIONS--93.8%
AUSTRALIAN DOLLAR--4.3%
Commonwealth of
Australia
1,580 10.000% 10/15/02 $ 1,471
BELGIAN FRANC--1.9%
Kingdom of Belgium
18,275 7.500 07/29/08 641
BRITISH POUND STERLING--15.0%
Abbey National PLC
825 6.000 08/10/99 1,352
Lloyds Bank PLC
800 7.375 03/11/04 1,302
Treasury of United
Kingdom
1,420 8.000 06/10/03 2,490
-------
5,144
CANADIAN DOLLAR--8.4%
Dominion of Canada
1,075 7.500 12/01/03 880
Province of Ontario
1,050 7.250 09/27/05 826
Province of Quebec
1,325 10.250 10/15/01 1,187
-------
2,893
DANISH KRONE--5.5%
Kingdom of Denmark
10,100 8.000 03/15/06 1,872
FRENCH FRANC--8.9%
Electricite de
France
6,200 8.600 04/09/04 1,416
Republic of France
3,000 8.500 03/12/97 582
4,600 8.250 02/27/04 1,041
-------
3,039
GERMAN MARK--13.6%
Federal Republic of
Germany
1,795 6.250 01/04/24 1,117
LKB Global Bond
1,500 6.000 05/10/99 1,023
</TABLE>
<TABLE>
<CAPTION>
Description
- ----------------------------------------------
Local Currency Maturity
Principal Amount Rate Date Value
- ----------------------------------------------
<C> <C> <S> <C>
Republic of Austria
1,670 8.000% 01/30/02 $ 1,230
Republic of Finland
1,920 5.500 02/09/01 1,289
-------
4,659
ITALIAN LIRA--8.2%
Republic of Italy
4,000,000 8.500 04/01/04 2,808
JAPANESE YEN--13.5%
Asian Development
Bank
90,000 5.000 02/05/03 926
European Bank for
Reconstruction and
Development
95,000 5.875 11/26/99 953
International Bank
for
Reconstruction and
Development
100,000 4.500 03/20/03 1,010
Japan Development
Bank
160,000 6.500 09/20/01 1,721
-------
4,610
NETHERLANDS GUILDER--3.3%
Kingdom of the
Netherlands
1,675 8.500 03/15/01 1,118
SPANISH PESETA--4.1%
Kingdom of Spain
35,000 11.450 08/30/98 294
120,000 11.300 01/15/02 1,120
-------
1,414
SWEDISH KRONA--3.8%
Kingdom of Sweden
7,400 10.250 05/05/03 1,317
UNITED STATES DOLLAR--3.3%
U.S. Treasury Note
1,000 7.875 11/15/04 1,117
- ----------------------------------------------
TOTAL DEBT OBLIGATIONS
(Cost $29,495) $32,103
- ----------------------------------------------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- -----------------------------------------------------------
Local Currency Maturity
Principal Amount Rate Date Value
- -----------------------------------------------------------
INTERNATIONAL BOND PORTFOLIO--CONTINUED
<C> <C> <S> <C>
SHORT-TERM INVESTMENT--2.6%
UNITED STATES DOLLAR
Berliner Handels und
Frankfurter,
Grand Cayman
$ 895 5.688% 12/02/96 $ 895
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT (Cost
$895) $ 895
- -----------------------------------------------------------
TOTAL INVESTMENTS--96.4%
(Cost $30,390) $32,998
- -----------------------------------------------------------
Other assets, less liabilities--
3.6% 1,237
- -----------------------------------------------------------
NET ASSETS--100.0% $34,235
- -----------------------------------------------------------
- -----------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------------
<C> <C> <S> <C> <C> <C> <C> <C>
SHORT DURATION PORTFOLIO
ASSET-BACKED SECURITY--5.6%
Household Consumer
Loan Trust
Series: 96-2A
$ 2,324 5.545% 08/15/06 $ 2,324
- ------------------------------------------------------
TOTAL ASSET-BACKED SECURITY
(Cost $2,324) $ 2,324
- ------------------------------------------------------
FLOATING RATE NOTES--15.5%
Beneficial Corp.
$ 2,500 5.570% 11/04/99 $ 2,489
Household Finance
Co.
2,500 5.681 11/01/01 2,495
USL Capital Corp.
Series D
1,500 5.705 04/19/99 1,497
- ------------------------------------------------------
TOTAL FLOATING RATE NOTES
(Cost $6,499) $ 6,481
- ------------------------------------------------------
U.S. GOVERNMENT OBLIGATION--6.0%
U.S. Treasury Note
$ 2,500 5.733% 11/15/99 $ 2,512
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATION
(Cost $2,511) $ 2,512
- ------------------------------------------------------
COMMERCIAL PAPER--35.6%
ASSET-BACKED SECURITIES--13.5%
Ascot Capital
Corp.
$ 1,000 5.391% 02/10/97 $ 989
Cooperative
Association of
Tractor Dealers
500 5.376 12/10/96 499
Corporate
Receivables Corp.
400 5.317 12/09/96 399
Gotham Funding
Corp.
1,000 5.444 02/05/97 990
Old Line Funding
785 5.373 12/12/96 784
Strategic Asset
Funding Corp.
1,000 5.476 01/31/97 991
Wood Street
Funding Corp.
1,000 5.371 12/10/96 999
-------
5,651
COMMUNICATIONS--2.3%
NYNEX Corp.
1,000 5.375 12/16/96 998
</TABLE>
<TABLE>
<CAPTION>
Description
- --------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------
<C> <C> <S> <C> <C> <C> <C>
FOOD AND KINDRED PRODUCTS--
4.8%
Coca-Cola
Enterprises Inc.
$ 1,000 5.466% 12/05/96 $ 999
Thames Asset
Global
Securitization No.
1, Inc.
1,000 5.427 02/18/97 988
-------
1,987
HOLDING AND OTHER INVESTMENT
OFFICES--4.2%
CSW Credit, Inc.
900 5.309 12/04/96 899
400 5.314 12/10/96 399
Enterprise Funding
Corp.
466 5.354 12/13/96 465
-------
1,763
INSURANCE CARRIERS--4.8%
John Hancock
Capital Corp.
2,000 5.291 12/10/96 1,997
MISCELLANEOUS RETAIL--1.0%
Mont Blanc Capital
423 5.366 12/04/96 423
NONDEPOSITORY BUSINESS
CREDIT INSTITUTIONS--2.6%
PHH Corp.
1,000 5.327 12/16/96 999
Transamerica Corp.
100 5.261 12/05/96 100
-------
1,099
TRANSPORTATION--2.4%
General Motors
Acceptance Corp.
1,000 5.747 03/11/97 984
- --------------------------------------------------
TOTAL COMMERCIAL PAPER
(Cost $14,902) $14,902
- --------------------------------------------------
SHORT-TERM INVESTMENTS--15.6%
Federal Home Loan
Mortgage
Association
$ 4,525 5.703% 12/02/96 $ 4,524
Norinchukin Bank
1,000 5.340 12/06/96 1,000
Swiss Bank
1,000 5.520 12/18/96 1,000
- --------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $6,524) $ 6,524
- --------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------------------------
<C> <C> <S> <C>
REPURCHASE AGREEMENTS--23.9%
Bear Stearns & Co., Inc., Dated 11/29/96,
Repurchase Price $10,005
(U.S. Government Securities Colld.)
$10,000 5.680% 12/02/96 $10,000
Donaldson Lufkin & Jenrette Securities, Inc.,
Dated 11/29/96, Repurchase Price $3
(U.S. Government Securities Colld.)
3 5.920% 12/02/96 3
- --------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS
(Cost $10,003) $10,003
- --------------------------------------------------------------------
TOTAL INVESTMENTS--102.2%
(Cost $42,763) $42,746
- --------------------------------------------------------------------
Liabilities, less other assets--(2.2)% (933)
- --------------------------------------------------------------------
NET ASSETS--100.0% $41,813
- --------------------------------------------------------------------
- --------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- --------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- --------------------------------------------------------
SHORT-INTERMEDIATE BOND PORTFOLIO
ASSET-BACKED SECURITIES--8.2%
AUTOMOTIVE--8.2%
<C> <C> <S> <C>
Olympic Automobile
Receivables Trust
$4,000 5.950% 11/15/99 $4,017
2,627 7.875 07/15/01 2,693
Olympic Automobile
Receivables Trust,
Interest Only
Stripped Security*
-- -- 01/15/99 1,703
Premier Auto Trust
2,222 4.750 02/02/00 2,209
Western Financial
Automobile Loan
Trust
507 4.700 01/01/98 507
1,505 7.100 01/01/00 1,526
- --------------------------------------------------------
TOTAL ASSET-BACKED SECURI-
TIES
(Cost $12,880) $12,655
- --------------------------------------------------------
COLLATERALIZED MORTGAGE
OBLIGATION--1.6%
Donaldson, Lufkin
& Jenrette, Inc.
Mortgage
Acceptance Corp.,
Series 1994-Q8,
Class 2A1
$2,473 7.250% 05/25/24 $ 2,473
- --------------------------------------------------------
TOTAL COLLATERALIZED MORT-
GAGE
OBLIGATION (Cost $2,429) $ 2,473
- --------------------------------------------------------
CORPORATE OBLIGATIONS--9.7%
BROKERAGE SERVICES--7.4%
Donaldson Lufkin &
Jenrette, Inc.
Medium Term Note
$6,500 5.625% 02/15/16 $ 6,353
Salomon Brothers,
Inc. Medium Term
Notes
3,000 5.500 01/31/98 2,987
2,000 5.700 02/11/98 1,995
-------
11,335
FINANCIAL--2.3%
Greyhound
Financial Corp.
3,590 8.250 03/11/97 3,613
- --------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(Cost $15,075) $14,948
- --------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- ---------------------------------------
Principal Maturity
Amount Rate Date Value
- ---------------------------------------
<C> <C> <S> <C>
U.S. GOVERNMENT AGENCIES--
9.2%
COLLATERALIZED MORTGAGE OBLIGATIONS
FEDERAL HOME LOAN MORTGAGE
ASSOCIATION
REMIC TRUST PRINCIPAL ON-
LY*--3.3%
Class
BA, Series: 1571
$ 5,472 -- % 04/15/19 $ 5,098
FEDERAL NATIONAL MORTGAGE
ASSOCIATION
REMIC TRUST--4.0%
Class
A, Series: 1996-M4
5,965 7.750 03/17/17 6,144
FEDERAL NATIONAL MORTGAGE
ASSOCIATION
REMIC TRUST PRINCIPAL ON-
LY*--1.9%
Class B, Series:
1993-161
1,183 -- 10/25/18 1,126
Class G, Series:
1994-9
1,999 -- 11/25/23 1,870
--------
2,996
- ---------------------------------------
TOTAL U.S. GOVERNMENT AGEN-
CIES
(Cost $12,738) $ 14,238
- ---------------------------------------
U.S. GOVERNMENT OBLIGA-
TIONS--67.1%
U.S. TREASURY NOTES--67.1%
$ 5,000 5.375% 11/30/97 $ 4,996
7,000 5.625 01/31/98 7,010
12,000 5.125 03/31/98 11,942
8,000 5.375 05/31/98 7,983
2,000 5.125 11/30/98 1,982
26,600 6.750 05/31/99 27,269
13,675 6.875 08/31/99 14,083
18,000 7.750 01/31/00 19,038
4,000 5.500 12/31/00 3,958
4,890 6.625 06/30/01 5,046
- ---------------------------------------
TOTAL U.S. GOVERNMENT OBLI-
GATIONS
(Cost $102,332) $103,307
- ---------------------------------------
SHORT-TERM INVESTMENT--2.3%
Berliner Handels
und Frankfurter,
Grand Cayman
$ 3,537 5.688% 12/02/96 $ 3,537
- ---------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $3,537) $ 3,537
- ---------------------------------------
TOTAL INVESTMENTS--98.1%
(Cost $148,991) $151,158
- ---------------------------------------
Other assets, less other
liabilities--1.9% 2,860
- ---------------------------------------
NET ASSETS--100.0% $154,018
- ---------------------------------------
- ---------------------------------------
</TABLE>
*At November 30, 1996, the effective yields on these securities ranged from
approximately 5.00% to 7.00%. Refer to notes to statements of investments for a
discussion of stripped securities.
See accompanying notes to financial statements.
14
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description
- ----------------------------------------------
Principal Maturity
Amount Rate Date Value
- ----------------------------------------------
U.S. GOVERNMENT SECURITIES PORTFOLIO
U.S. GOVERNMENT AGENCIES--25.0%
COLLATERALIZED MORTGAGE OBLIGATIONS--15.0%
FEDERAL HOME LOAN MORTGAGE CORPORATION--0.8%
<C> <C> <S> <C>
Class F, Series:
1520
$ 750 5.650% 09/15/04 $ 745
FEDERAL NATIONAL MORTGAGE ASSOCIATION--14.2%
Class A, Series:
1996-M4
3,977 7.750 03/17/17 4,096
Class E, Series:
1992-200
1,000 6.250 06/25/17 1,000
Class EZ, Series:
1993-133
3,626 5.850 02/25/17 3,574
Class PD, Series:
1993-085
4,700 5.500 07/25/03 4,678
Class 14-F,
Series: 1988-14
297 9.200 12/25/17 308
-------
13,656
MORTGAGE-BACKED SECURITIES--7.9%
FEDERAL HOME LOAN MORTGAGE CORPORATION--0.6%
594 7.599 11/01/24 605
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--7.3%
6,632 8.000 08/15/26 6,835
179 8.000 11/15/26 184
-------
7,019
AGENCY OBLIGATIONS--2.1%
FEDERAL HOME LOAN MORTGAGE CORPORATION--0.5%
500 7.130 06/30/05 505
TENNESSEE VALLEY AUTHORITY NOTE--1.6%
1,500 6.235 07/15/45 1,524
-------
2,029
- ----------------------------------------------
TOTAL U.S. GOVERNMENT AGEN-
CIES
(Cost $23,881) $24,054
- ----------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- ------------------------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--72.3%
U.S. TREASURY NOTES
<C> <C> <S> <C>
$15,000 6.750% 02/28/97 $15,051
18,000 5.500 11/15/98 17,966
7,500 6.750 05/31/99 7,689
15,000 7.750 01/31/00 15,865
12,000 6.125 07/31/00 12,141
715 6.625 06/30/01 738
- ------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $69,274) $69,450
- ------------------------------------------------------
SHORT TERM INVESTMENT--1.3%
Federal Home Loan Bank
Discount Note
$ 1,225 5.700% 12/02/96 $ 1,225
- ------------------------------------------------------
TOTAL SHORT TERM INVESTMENT
(Cost $1,225) $ 1,225
- ------------------------------------------------------
TOTAL INVESTMENTS--98.6%
(Cost $94,380) $94,729
- ------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
Other assets, less liabilities--1.4% 1,382
- ------------------------------------------------------------------------------
NET ASSETS--100.0% $96,111
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands)
<TABLE>
<CAPTION>
Description
- ------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------
U.S. TREASURY INDEX PORTFOLIO
<C> <C> <S> <C>
U.S. GOVERNMENT OBLIGA-
TIONS--97.4%
U.S. TREASURY NOTES--63.7%
$1,500 5.500% 07/31/97 $ 1,502
1,115 9.250 08/15/98 1,181
6,100 5.000 01/31/99 6,024
1,400 5.500 02/28/99 1,396
2,350 7.875 11/15/99 2,487
2,900 6.375 01/15/00 2,954
1,700 6.250 02/15/03 1,730
-------
17,274
U.S. TREASURY BONDS--32.0%
435 13.875 05/15/11 673
660 14.000 11/15/11 1,040
490 13.250 05/15/14 781
1,000 7.250 05/15/16 1,089
900 8.125 05/15/21 1,078
1,100 6.250 08/15/23 1,067
2,800 6.875 08/15/25 2,954
-------
8,682
U.S. TREASURY INTEREST ONLY
STRIPPED SECURITY*--1.7%
475 -- 08/15/97 458
- ------------------------------------
TOTAL U.S. GOVERNMENT OB-
LIGATIONS
(Cost $25,857) $26,414
- ------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Description
- ------------------------------------
Principal Maturity
Amount Rate Date Value
- ------------------------------------
<C> <C> <S> <C>
SHORT TERM INVESTMENT--1.1%
Federal Home
Loan Bank
Discount Note
$ 310 5.700% 12/02/96 $ 310
- ------------------------------------
TOTAL SHORT TERM INVEST-
MENT
(Cost $310) $ 310
- ------------------------------------
TOTAL INVESTMENTS--98.5%
(Cost $26,167) $26,724
- ------------------------------------
Other assets, less liabil-
ities--1.5% 397
- ------------------------------------
NET ASSETS--100.0% $27,121
- ------------------------------------
- ------------------------------------
</TABLE>
*The effective yield on this Interest Only Stripped Security was 5.44% at
November 30, 1996. Refer to notes to statements of investments for a discussion
of stripped securities.
See accompanying notes to financial statements.
16
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
NOTES TO STATEMENTS OF INVESTMENTS
November 30, 1996
- --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.
17
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
November 30, 1996
(All amounts in thousands, except net asset value per unit)
<TABLE>
<CAPTION>
Short- U.S. U.S.
International Short Intermediate Government Treasury
Bond Bond Duration Bond Securities Index
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments in securi-
ties, at cost $360,976 $30,390 $32,760 $148,991 $94,380 $26,167
Repurchase agreements,
at cost -- -- 10,003 -- -- --
- ----------------------------------------------------------------------------------------------
Investments in securi-
ties, at value $371,211 $32,998 $32,743 $151,158 $94,729 $26,724
Repurchase agreements,
at value -- -- 10,003 -- -- --
Cash 196 141 -- 1,301 7 6
Receivables:
Interest 5,134 1,078 74 1,589 1,387 381
Foreign tax reclaims -- 17 -- -- -- --
Fund units sold 3 -- -- 36 -- --
Administrator 11 5 14 8 6 6
Deferred organization
costs, net 15 37 29 15 18 15
Other assets -- 2 2 -- -- --
- ----------------------------------------------------------------------------------------------
TOTAL ASSETS 376,570 34,278 42,865 154,107 96,147 27,132
- ----------------------------------------------------------------------------------------------
LIABILITIES:
Payable for:
Fund units redeemed 2,027 -- 1,000 30 -- --
Distributions to
unitholders -- -- 25 -- -- --
Accrued expenses:
Advisory fees 76 20 7 32 20 3
Administration fees 30 3 11 13 8 2
Custodian fees 4 5 4 2 2 2
Transfer agent fees 4 -- -- 1 1 --
Other liabilities 17 15 5 11 5 4
- ----------------------------------------------------------------------------------------------
TOTAL LIABILITIES 2,158 43 1,052 89 36 11
- ----------------------------------------------------------------------------------------------
NET ASSETS $374,412 $34,235 $41,813 $154,018 $96,111 $27,121
- ----------------------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $366,616 $31,072 $42,377 $151,156 $95,994 $27,538
Accumulated undistrib-
uted net investment in-
come -- 31 35 45 75 25
Accumulated net realized
gain (loss) on
investments (2,439) 529 (582) 650 (307) (999)
Net unrealized apprecia-
tion (depreciation) on
investments 10,235 2,608 (17) 2,167 349 557
Net unrealized loss on
translation of other
assets and liabilities
denominated in foreign
currencies -- (5) -- -- -- --
- ----------------------------------------------------------------------------------------------
NET ASSETS $374,412 $34,235 $41,813 $154,018 $96,111 $27,121
- ----------------------------------------------------------------------------------------------
Total units outstanding
(no par value), unlim-
ited units authorized
Class A 17,661 1,543 4,187 7,423 4,602 1,276
Class C 353 -- -- -- 176 --
Class D 11 2 -- 17 11 41
- ----------------------------------------------------------------------------------------------
Net asset value, offer-
ing and redemption price
per unit
Class A $ 20.77 $ 22.16 $ 9.99 $ 20.70 $ 20.07 $ 20.60
Class C $ 20.78 -- -- -- $ 20.06 --
Class D $ 20.76 $ 22.14 -- $ 20.66 $ 20.03 $ 20.57
- ----------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Year Ended November 30, 1996
(All amounts in thousands)
<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: $22,432 $2,199(a) $2,692 $10,435 $4,897 $1,082
- ---------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 1,993 288 194 1,011 527 70
Administration fees 575 80 121 353 220 44
Custodian fees 46 67 32 28 20 20
Transfer agent fees 38 3 -- 17 12 2
Registration fees 33 42 8 25 22 20
Professional fees 19 5 6 11 4 4
Trustee fees 12 2 2 7 2 2
Amortization of deferred
organization costs, net 14 17 20 14 13 13
Unitholder Servicing
Fees 7 -- -- -- 5 1
Other 19 2 12 12 8 8
- ---------------------------------------------------------------------------------------------
TOTAL EXPENSES 2,756 506 395 1,478 833 184
Less voluntary waivers
of:
Investment advisory
fees (1,163) (64) (121) (590) (307) (44)
Administration fees (243) (48) -- (184) (132) (26)
Less: Expenses reimburs-
able by Administrator (143) (87) (153) (97) (69) (67)
- ---------------------------------------------------------------------------------------------
Net expenses 1,207 307 121 607 325 47
- ---------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 21,225 1,892 2,571 9,828 4,572 1,035
Net realized gains
(losses) on:
Investment transactions 2,094 1,011 29 392 (58) 91
Foreign currency trans-
actions -- (35) -- -- -- --
Net change in unrealized
appreciation
(depreciation) on in-
vestments (3,905) 20 -- (1,308) (201) (239)
Net change in unrealized
gains on translation of
other assets and lia-
bilities denominated in
foreign currencies -- 6 -- -- -- --
- ---------------------------------------------------------------------------------------------
NET INCREASE IN NET AS-
SETS RESULTING FROM
OPERATIONS $19,414 $2,894 $2,600 $ 8,912 $4,313 $ 887
- ---------------------------------------------------------------------------------------------
</TABLE>
(a) Net of $49 in non-reclaimable foreign withholding taxes.
See accompanying notes to financial statements.
19
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended November 30, 1996 and 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 $ 21,225 $ 15,744 $ 1,892 $ 1,898
Net realized gains (losses) on invest-
ments and foreign currency transactions 2,094 1,622 976 731
Net change in unrealized appreciation
(depreciation) on investments (3,905) 34,676 20 2,711
Net change in unrealized gains (losses)
on translations of other assets and li-
abilities denominated in foreign cur-
rencies -- -- 6 (11)
- --------------------------------------------------------------------------------
Net increase in net assets resulting from
operations 19,414 52,042 2,894 5,329
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A UNITHOLDERS
FROM:
Net investment income (20,213) (15,211) (2,300) (2,605)
Return of capital (556) (347) -- --
- --------------------------------------------------------------------------------
Total distributions to Class A
unitholders (20,769) (15,558) (2,300) (2,605)
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS C UNITHOLDERS
FROM:
Net investment income (264) (82) -- --
Return of capital (7) (2) -- --
- --------------------------------------------------------------------------------
Total distributions to Class C
unitholders (271) (84) -- --
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS D UNITHOLDERS
FROM:
Net investment income (8) (4) (1) --
Return of capital (1) -- -- --
- --------------------------------------------------------------------------------
Total distributions to Class D
unitholders (9) (4) (1) --
- --------------------------------------------------------------------------------
CLASS A UNIT TRANSACTIONS:
Proceeds from the sale of units 143,593 65,433 5,918 6,142
Reinvested distributions 18,565 13,688 1,747 2,073
Cost of units redeemed (79,885) (86,462) (6,747) (5,213)
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets re-
sulting from Class A unit transactions 82,273 (7,341) 918 3,002
- --------------------------------------------------------------------------------
CLASS C UNIT TRANSACTIONS:
Proceeds from the sale of units 4,311 4,059 -- --
Reinvested distributions 271 84 -- --
Cost of units redeemed (1,032) (574) -- --
- --------------------------------------------------------------------------------
Net increase in net assets resulting from
Class C unit transactions 3,550 3,569 -- --
- --------------------------------------------------------------------------------
CLASS D UNIT TRANSACTIONS:
Proceeds from the sale of units 127 100 41 9
Reinvested distributions 9 4 1 --
Cost of units redeemed (37) (9) -- --
- --------------------------------------------------------------------------------
Net increase in net assets resulting from
Class D unit transactions 99 95 42 9
- --------------------------------------------------------------------------------
Net increase (decrease) 84,287 32,719 1,553 5,735
Net assets--beginning of year 290,125 257,406 32,682 26,947
- --------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $374,412 $290,125 $34,235 $32,682
- --------------------------------------------------------------------------------
UNDISTRIBUTED NET INVESTMENT INCOME: $ -- $ -- $ 31 $ 36
- --------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
20
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Short-
Short Duration 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>
$ 2,571 $ 4,196 $ 9,828 $ 6,272 $ 4,572 $ 1,688 $ 1,035 $ 1,675
29 (41) 392 735 (58) 60 91 823
-- 161 (1,308) 6,055 (201) 1,548 (239) 3,234
-- -- -- -- -- -- -- --
- --------------------------------------------------------------------------------
2,600 4,316 8,912 13,062 4,313 3,296 887 5,732
- --------------------------------------------------------------------------------
(2,571) (4,196) (9,596) (6,177) (4,393) (1,644) (1,005) (1,700)
-- -- -- -- -- -- -- --
- --------------------------------------------------------------------------------
(2,571) (4,196) (9,596) (6,177) (4,393) (1,644) (1,005) (1,700)
- --------------------------------------------------------------------------------
-- -- -- -- (159) -- -- --
-- -- -- -- -- -- -- --
- --------------------------------------------------------------------------------
-- -- -- -- (159) -- -- --
- --------------------------------------------------------------------------------
-- -- (3) (1) (9) (2) (26) (4)
-- -- -- -- -- -- -- --
- --------------------------------------------------------------------------------
-- -- (3) (1) (9) (2) (26) (4)
- --------------------------------------------------------------------------------
64,087 48,728 69,730 84,233 104,606 58,790 13,176 14,609
2,425 3,722 8,697 5,697 4,198 1,508 746 1,392
(70,201) (96,900) (82,742) (34,345) (72,555) (30,910) (5,169) (39,656)
- --------------------------------------------------------------------------------
(3,689) (44,450) (4,315) 55,585 36,249 29,388 8,753 (23,655)
- --------------------------------------------------------------------------------
-- -- -- -- 4,695 -- -- --
-- -- -- -- 159 -- -- --
-- -- -- -- (1,298) -- -- --
- --------------------------------------------------------------------------------
-- -- -- -- 3,556 -- -- --
- --------------------------------------------------------------------------------
-- -- 328 12 210 55 592 281
-- -- 3 -- 8 2 26 4
-- -- (2) -- (60) (5) (66) (3)
- --------------------------------------------------------------------------------
-- -- 329 12 158 52 552 282
- --------------------------------------------------------------------------------
(3,660) (44,330) (4,673) 62,481 39,715 31,090 9,161 (19,345)
45,473 89,803 158,691 96,210 56,396 25,306 17,960 37,305
- --------------------------------------------------------------------------------
$41,813 $45,473 $154,018 $158,691 $ 96,111 $ 56,396 $27,121 $17,960
- --------------------------------------------------------------------------------
$ 35 $ 35 $ 45 $ 206 $ 75 $ 75 $ 25 $ 21
- --------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the 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>
NET ASSET VALUE, BEGIN-
NING OF PERIOD $ 20.96 $ 18.29 $ 20.70 $ 20.00 $20.96 $20.21 $ 20.94 $ 18.29 $18.74
Income (loss) from in-
vestment operations:
Net investment income 1.29 1.17 1.42 1.42 1.25 0.47 1.22 1.08 0.28
Net realized and
unrealized gain (loss)
on investments (0.19) 2.66 (2.21) 0.66 (0.18) 0.74 (0.18) 2.66 (0.45)
- ---------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment
operations 1.10 3.83 (0.79) 2.08 1.07 1.21 1.04 3.74 (0.17)
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (1.26) (1.14) (1.46) (1.38) (1.22) (0.45) (1.19) (1.09) (0.28)
Net realized gain on
investments -- -- (0.15) -- -- -- -- -- --
Return of capital (.03) (0.02) (0.01) -- (.03) (0.01) (.03) -- --
- ---------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (1.29) (1.16) (1.62) (1.38) (1.25) (0.46) (1.22) (1.09) (0.28)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) (0.19) 2.67 (2.41) 0.70 (0.18) 0.75 (0.18) 2.65 (0.45)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 20.77 $ 20.96 $ 18.29 $ 20.70 $20.78 $20.96 $ 20.76 $ 20.94 $18.29
- ---------------------------------------------------------------------------------------------------------------
Total return (d) 5.57% 21.55% (4.04)% 10.60% 5.33% 6.08% 5.17% 21.06% (0.94)%
Ratio to average net as-
sets of (e):
Expenses, net of waiv-
ers and
reimbursements 0.36% 0.36% 0.36% 0.36% 0.60% 0.60% 0.75% 0.75% 0.75%
Expenses, before waiv-
ers and
reimbursements 0.84% 0.84% 0.87% 0.92% 1.08% 1.08% 1.23% 1.23% 1.26%
Net investment income,
net of waivers and re-
imbursements 6.39% 5.94% 7.31% 7.84% 6.09% 5.59% 5.99% 5.48% 6.31%
Net investment income,
before waivers and re-
imbursements 5.91% 5.46% 6.80% 7.28% 5.61% 5.11% 5.51% 5.00% 5.80%
Portfolio turnover rate 101.38% 74.19% 103.09% 89.06% 101.38% 74.19% 101.38% 74.19% 103.09%
Net assets at end of pe-
riod (in
thousands) $366,850 $286,301 $257,391 $245,112 $7,342 $3,704 $ 220 $ 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.
22
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Bond Portfolio Short Duration Portfolio
-------------------------------------------- -------------------------------------
Class A Class D Class A
-------------------------- ---------------- -------------------------------------
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, BEGIN-
NING OF PERIOD $ 21.74 $ 19.93 $ 20.00 $21.74 $22.17 $ 9.99 $ 9.97 $ 10.03 $ 10.00
Income (loss) from
investment operations:
Net investment income 1.54 1.26 0.79 1.37 0.02 0.53 0.59 0.40 0.14
Net realized and
unrealized gain (loss)
on investments and
foreign currency
transactions 0.43 2.28 0.01 0.51 (0.08) -- 0.01 (0.05) 0.03
- --------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.97 3.54 0.80 1.88 (0.06) 0.53 0.60 0.35 0.17
- --------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income
(d) (1.55) (1.73) (0.87) (1.48) (0.37) (0.53) (0.58) (0.40) (0.14)
Net realized gain on
investments
transactions -- -- -- -- -- -- -- (0.01) --
- --------------------------------------------------------------------------------------------------------------
Total distributions to
unitholders (1.55) (1.73) (0.87) (1.48) (0.37) (0.53) (0.58) (0.41) (0.14)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) 0.42 1.81 (0.07) 0.40 (0.43) -- 0.02 (0.06) 0.03
- --------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 22.16 $ 21.74 $ 19.93 $22.14 $21.74 $ 9.99 $ 9.99 $ 9.97 $ 10.03
- --------------------------------------------------------------------------------------------------------------
Total return (e) 9.47% 18.20% 4.03% 9.04% (0.30)% 5.45% 6.14% 3.64% 1.73%
Ratio to average net as-
sets 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 1.58% 1.47% 1.49% 1.97% 1.86% 0.81% 0.80% 0.77% 0.50%
Net investment income,
net of waivers and
reimbursements 5.91% 5.92% 5.93% 5.67% 3.26% 5.30% 5.80% 3.93% 3.00%
Net investment income,
before waivers and re-
imbursements 5.29% 5.41% 5.40% 5.05% 2.75% 4.74% 5.25% 3.41% 2.82%
Portfolio turnover rate 33.89% 54.46% 88.65% 33.89% 54.46% 828.58% 1,272.21% 1,364.00% 434.32%
Net assets at end of
period (in thousands) $34,183 $32,673 $26,947 $ 52 $ 9 $41,813 $ 45,473 $ 89,803 $186,765
- --------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on March 28, 1994.
(b) Class D units were issued on November 20, 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.
23
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the 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, BEGIN-
NING OF PERIOD $ 20.73 $ 19.53 $ 20.33 $ 20.00 $20.71 $19.53 $19.82
Income (loss) from in-
vestment operations:
Net investment income 1.14 1.02 0.97 0.85 1.07 0.94 0.23
Net realized and
unrealized gain (loss)
on investments (0.01) 1.19 (0.80) 0.31 (0.02) 1.18 (0.29)
- ------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.13 2.21 0.17 1.16 1.05 2.12 (0.06)
- ------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (1.16) (1.01) (0.97) (0.83) (1.10) (0.94) (0.23)
- ------------------------------------------------------------------------------------------
Total distributions to
unitholders (1.16) (1.01) (0.97) (0.83) (1.10) (0.94) (0.23)
- ------------------------------------------------------------------------------------------
Net increase (decrease) (0.03) 1.20 (0.80) 0.33 (0.05) 1.18 (0.29)
- ------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 20.70 $ 20.73 $ 19.53 $ 20.33 $20.66 $20.71 $19.53
- ------------------------------------------------------------------------------------------
Total return (c) 5.68% 11.58% 0.84% 5.90% 5.22% 11.09% (0.30)%
Ratio to average net as-
sets of (d):
Expenses, net of waiv-
ers and reimbursements 0.36% 0.36% 0.36% 0.36% 0.75% 0.75% 0.75%
Expenses, before waiv-
ers and reimbursements 0.88% 0.91% 0.95% 1.00% 1.27% 1.30% 1.34%
Net investment income,
net of waivers and re-
imbursements 5.83% 5.14% 4.84% 4.79% 4.96% 4.85% 4.42%
Net investment income,
before waivers and re-
imbursements 5.31% 4.59% 4.25% 4.15% 4.44% 4.30% 3.83%
Portfolio turnover rate 47.68% 54.68% 48.67% 19.48% 47.68% 54.68% 48.67%
Net assets at end of pe-
riod (in thousands) $153,675 $158,678 $96,209 $107,550 $ 343 $ 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.
24
<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, BEGIN-
NING OF PERIOD $ 20.08 $ 19.05 $ 20.07 $ 20.00 $ 20.13 $ 20.04 $ 19.05 $19.43
Income (loss) from in-
vestment operations:
Net investment income 1.02 1.05 0.91 0.55 0.91 0.96 0.96 0.22
Net realized and
unrealized gain (loss)
on investments (0.01) 1.02 (1.02) 0.05 (0.12) (0.03) 1.00 (0.38)
- ----------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.01 2.07 (0.11) 0.60 0.79 0.93 1.96 (0.16)
- ----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (1.02) (1.04) (0.91) (0.53) (0.86) (0.94) (0.97) (0.22)
- ----------------------------------------------------------------------------------------------------
Total distributions to
unitholders (1.02) (1.04) (0.91) (0.53) (0.86) (0.94) (0.97) (0.22)
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) (0.01) 1.03 (1.02) 0.07 (0.07) (0.01) 0.99 (0.38)
- ----------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 20.07 $ 20.08 $ 19.05 $ 20.07 $ 20.06 $ 20.03 $ 20.04 $19.05
- ----------------------------------------------------------------------------------------------------
Total return (d) 5.15% 11.18% (0.57)% 3.00% 4.05% 4.77% 10.66% (0.90)%
Ratio to average net as-
sets of (e):
Expenses, net of waiv-
ers and reimbursements 0.36% 0.36% 0.36% 0.43% 0.60% 0.75% 0.75% 0.75%
Expenses, before waiv-
ers and reimbursements 0.94% 1.09% 1.12% 1.18% 1.18% 1.33% 1.48% 1.51%
Net investment income,
net of waivers and
reimbursements 5.22% 5.43% 4.62% 4.18% 4.97% 4.83% 5.08% 4.65%
Net investment income,
before waivers and
reimbursements 4.64% 4.70% 3.86% 3.43% 4.39% 4.25% 4.35% 3.89%
Portfolio turnover rate 119.75% 141.14% 45.55% 20.59% 119.75% 119.75% 141.14% 45.55%
Net assets at end of pe-
riod (in thousands) $92,351 $56,329 $25,293 $32,479 $ 3,535 $ 225 $ 67 $ 13
- ----------------------------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on April 5, 1993.
(b) Class C units were issued on December 29, 1995.
(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.
25
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the 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, BEGIN-
NING OF PERIOD $ 20.78 $ 18.77 $ 21.05 $ 20.00 $20.75 $18.77 $18.80
Income (loss) from in-
vestment operations:
Net investment income 1.19 1.11 1.15 0.95 1.17 1.00 0.09
Net realized and
unrealized gain (loss)
on investments (0.18) 2.01 (1.93) 1.02 (0.24) 2.03 (0.03)
- --------------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.01 3.12 (0.78) 1.97 0.93 3.03 0.06
- --------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (1.19) (1.11) (1.14) (0.92) (1.11) (1.05) (0.09)
Net realized gain on
investments -- -- (0.36) -- -- -- --
- --------------------------------------------------------------------------------------
Total distributions to
unitholders (1.19) (1.11) (1.50) (0.92) (1.11) (1.05) (0.09)
- --------------------------------------------------------------------------------------
Net increase (decrease) (0.18) 2.01 (2.28) 1.05 (0.18) 1.98 (0.03)
- --------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 20.60 $ 20.78 $ 18.77 $ 21.05 $20.57 $20.75 $18.77
- --------------------------------------------------------------------------------------
Total return (c) 5.10% 16.95% (3.80)% 9.94% 4.72% 16.43% 0.37%
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 1.04% 0.89% 0.79% 0.83% 1.43% 1.28% 1.18%
Net investment income,
net of waivers and re-
imbursements 5.93% 5.09% 5.60% 5.11% 5.57% 5.41% 6.05%
Net investment income,
before waivers and re-
imbursements 5.15% 4.46% 5.07% 4.54% 4.79% 4.78% 5.52%
Portfolio turnover rate 42.49% 80.36% 52.80% 77.75% 42.49% 80.36% 52.80%
Net assets at end of pe-
riod (in thousands) $26,273 $17,674 $37,305 $71,456 $ 848 $ 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.
26
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
November 30, 1996
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 "Portfolios").
The Bond, International Bond, Short-Intermediate Bond, U.S. Government
Securities, and U.S. Treasury Index Portfolios may issue 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 November 30,
1996, Class A, Class C and Class D units are outstanding for certain
portfolios.
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.
Cost of purchases and proceeds from 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 International Bond Portfolio is authorized to enter into forward foreign
currency exchange contracts for the
27
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
November 30, 1996
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
purchase or sale 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 Bond Portfolio may enter
into foreign currency contracts for speculative purposes. The objective of the
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.
(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, 1996, 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 $1,398 2002 to 2003
Short Duration 581 2002 to 2003
U.S. Government Securities 168 2001 to 2003
U.S. Treasury Index 979 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.
28
<PAGE>
- -------------------------------------------------------------------------------
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.
Distributions of short-term and long-term capital gains were declared and
paid December 24, 1996 to unitholders of record on December 23, 1996, as
follows:
<TABLE>
<CAPTION>
Short-Term Long-Term
Capital Capital
Gain Gain Total
- -----------------------------------------------------
<S> <C> <C> <C>
International Bond $0.0872 $0.2491 $0.3363
Short-Intermediate Bond 0.0123 0.0426 0.0549
- -----------------------------------------------------
</TABLE>
(j) Reclassifications
At November 30, 1996, the Bond Portfolio reclassified approximately $740,000
from accumulated net realized loss on investment transactions to undistributed
net investment income. The International Bond Portfolio reclassified
approximately $439,000 from accumulated net realized gain (loss) on investment
transactions, and $35,000 from net realized loss on foreign currency
transactions, to accumulated undistributed net investment income. The Short-
Intermediate Bond Portfolio reclassified approximately $390,000 from
accumulated net realized gain (loss) on investment transactions to
undistributed net investment income, and the U.S. Government Securities
Portfolio reclassified approximately $11,000 from accumulated net realized
gain (loss) on investment transactions to 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 fees as
shown on the accompanying Statements of Operations. The annual advisory fees
and waiver rates, expressed as a percentage of average daily net assets for
the year ended November 30, 1996, are as follows:
<TABLE>
<CAPTION>
Net
Advisory Less: Advisory
Fee Waiver Fee
- ----------------------------------------------------
<S> <C> <C> <C>
Bond .60% .35% .25%
International Bond .90 .20 .70
Short Duration .40 .25 .15
Short-Intermediate Bond .60 .35 .25
U.S. Government Securities .60 .35 .25
U.S. Treasury Index .40 .25 .15
- ----------------------------------------------------
</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:
29
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
November 30, 1996
<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. No waiver was
required under this agreement during the year ended November 30, 1996.
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 the average daily net assets for the Bond, Short-Intermediate
Bond, Short Duration, U.S. Government Securities and U.S. Treasury Index
Portfolios and .25% of the average daily net assets for the International Bond
Portfolio.
The administration fees waived and expenses reimbursed during the year ended
November 30, 1996, are shown on the accompanying Statements of Operations.
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.
6. INVESTMENT TRANSACTIONS
Investment transactions for the year ended November 30, 1996 (excluding short-
term investments) were as follows:
<TABLE>
<CAPTION>
Proceeds
from sales Proceeds
and from sales
Purchases maturities and
of U.S. Purchases of U.S. maturities
Government of other Government of other
Obligations securities Obligations securities
- ------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond $299,522 $95,138 $230,507 $62,706
International Bond -- 10,260 -- 10,601
Short Duration 49,240 36,941 51,720 38,111
Short-Intermediate Bond 62,699 12,135 62,188 13,881
U.S.Government Securities 136,302 -- 95,525 --
U.S. Treasury Index 16,514 -- 7,346 --
- ------------------------------------------------------------------------
</TABLE>
As of November 30, 1996, the composition of unrealized appreciation
(depreciation) of investment securities (including the effects of foreign
currency translation) 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 $12,054 $2,860 $9,194 $362,017
International Bond 2,935 327 2,608 30,390
Short Duration 2 19 (17) 42,763
Short-Intermediate Bond 2,687 520 2,167 148,991
U.S. Government Securities 655 433 222 94,507
U.S. Treasury Index 571 14 557 26,167
- -----------------------------------------------------------------------------
</TABLE>
30
<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 year ended November 30, 1996 was approximately
$1,000 for the International Bond Portfolio. This amount is included in other
expenses on the Statements of Operations.
As of November 30, 1996, there were no outstanding borrowings.
8. UNIT TRANSACTIONS
Transactions in Class A units for the year ended November 30, 1996 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- ----------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 7,010 910 3,920 4,000
International Bond 272 81 313 40
Short Duration 6,424 243 7,034 (367)
Short-Intermediate Bond 3,372 424 4,028 (232)
U.S. Government Securities 5,223 211 3,637 1,797
U.S. Treasury
Index 642 37 254 425
- ----------------------------------------------------------------------
</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 year ended November 30, 1996 were as
follows:
<TABLE>
<CAPTION>
Reinvested Net
Sales distributions Redemptions increase
- -------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 214 13 51 176
U.S.Government Securities 234 8 66 176
- -------------------------------------------------------------------
</TABLE>
Transactions in Class C 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 201 4 28 177
- ----------------------------------------------
</TABLE>
Transactions in Class D units for the year ended November 30, 1996 were as
follows:
<TABLE>
<CAPTION>
Reinvested Net
Sales distributions Redemptions increase
- --------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Bond 6 -- 1 5
International Bond 1 -- -- 1
Short-Intermediate Bond 16 -- -- 16
U.S. Government Securities 10 1 3 8
U.S. Treasury Index 29 1 3 27
- --------------------------------------------------------------------
</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>
31
<PAGE>
The Benchmark Funds
Fixed Income Portfolios
- -------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS
To the Unitholders and Trustees of
The Benchmark Funds
Fixed Income Portfolios
We have audited the accompanying statements of assets and liabilities,
including the statements of investments, of the Bond, International Bond,
Short Duration, Short-Intermediate Bond, U.S. Government Securities and U.S.
Treasury Index Portfolios, comprising the Fixed Income Portfolios of The
Benchmark Funds, as of November 30, 1996, and the related statements of
operations for the year then ended and changes in net assets for each of the
two years in the period then ended and financial highlights for the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of the
investments owned at November 30, 1996 by physical examination of the
securities held by the custodian and by correspondence with outside
depositories and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Bond, International Bond, Short Duration, Short-Intermediate Bond, U.S.
Government Securities and U.S. Treasury Index Portfolios, comprising the Fixed
Income Portfolios of The Benchmark Funds, at November 30, 1996, the results of
their operations for the year then ended and the changes in their net assets
for each of the two years in the period then ended and financial highlights
for the periods indicated therein, in conformity with generally accepted
accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
January 21, 1997
32
<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
John M. Perlowski, Assistant Treasurer
Michael J. Richman, Secretary
Howard B. Surloff, Assistant Secretary
Independent Auditors
Ernst & Young LLP
233 S. Wacker Dr.
Chicago, IL 60606
Legal Counsel
Drinker Biddle & Reath
1345 Chestnut Street
Philadelphia, PA 19107
This 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
Annual Report
November 30, 1996
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
THE BENCHMARK BALANCED PORTFOLIO
The relative superiority of stock returns over bond returns had the largest in-
fluence on the portfolio's absolute performance during the fiscal year ended
November 30, 1996.
In general, the stock market environment was most favorable to larger-capi-
talization portfolios. The Benchmark Balanced Portfolio underperformed its com-
posite index, primarily due to the portfolio's less-aggressive stance toward
technology stocks. In addition, the underperformance of medium-capitalization
health care stocks also was a factor.
We implemented three primary equity strategies during the year. First, we fo-
cused on holding fewer companies. Second, as trades transpired, we raised the
capitalization of new issues. And third, we gave a little more emphasis to the
energy sector.
In addition to raising the energy weighting, we increased the portfolio's
technology and financial weightings, and we reduced the weightings in utili-
ties, cyclicals and capital goods. In the technology area, we are favoring PC
and networking stocks, while the financial area remains attractive due to pos-
sible easing by the Federal Reserve and low inflation.
Over the next 12 months we will continue to emphasize quality growth stocks,
particularly those in the technology and financial sectors. We believe that
these securities should do well as the economic climate remains favorable and
inflation and interest rates remain low.
In the portfolio's bond component, we continue to hold a neutral interest
rate posture. The current inflation rate continues to make yields attractive
from a historical real yield perspective. While corporate spreads remain tight
by historical standards, we continue to find opportunity to add value and re-
main overweighted in the corporate and mortgage sectors.
Kurt Anderson, Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BENCHMARK BALANCED
PORTFOLIO VS. S&P 500 COMPOSITE STOCK PRICE INDEX, THE LEHMAN BROTHERS
INTERMEDIATE GOVERNMENT/CORPORATE INDEX AND THE COMPOSITE INDEX
-l-Balanced Portfolio
- - + - -
Composite Index
- -c- -S&P 500 Index
- -2 - -Lehman Brothers
Intermediate Government/
Corporate Index (Lehman
Brothers)
<TABLE>
<CAPTION>
Balanced Lehman Composite
Portfolio S&P 500 Brothers Index
---------- --------- -------- ---------
<S> <C> <C> <C> <C>
7/1/93 $10,000 $10,000 $10,000 $10,000
11/30/93 $10,312 $10,372 $10,195 $10,290
11/30/94 $9,821 $10,485 $10,009 $10,304
11/30/95 $11,807 $14,365 $11,462 $12,981
11/30/96 $13,468 $18,369 $12,130 $15,261
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns
For Periods Ended Class A S&P 500 Lehman Composite
November 30, 1996: Units Index Brothers Index*
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
One Year: 14.07% 27.88% 5.83% 17.57%
- ---------------------------------------------------------------------------------
Since Commencement on 7/1/93: 9.09% 19.45% 5.80% 13.15%
- ---------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Balanced Composite Lehman
Portfolio S&P 500 Index Brothers
--------- ------- --------- --------
<S> <C> <C> <C> <C>
12/29/95 $10,000 $10,000 $10,000 $10,000
11/30/96 $11,272 $12,546 $11,582 $10,473
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns**
For Period Ended Class C S&P 500 Lehman Composite
November 30, 1996: Units Index Brothers Index*
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Since Commencement on 12/29/95: 12.72% 25.46% 4.73% 15.82%
- -----------------------------------------------------------------------------------
</TABLE>
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
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BENCHMARK BALANCED
PORTFOLIO VS. S&P 500 COMPOSITE STOCK PRICE INDEX, THE LEHMAN BROTHERS
INTERMEDIATE GOVERNMENT/CORPORATE INDEX AND THE COMPOSITE INDEX--CONTINUED
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
BALANCED S&P LEHMAN COMPOSITE
PORTFOLIO 500 INDEX BROTHERS INDEX
- ------------------- --------- --------- -------- ---------
<S> <C> <C> <C> <C>
2/20/96 $ 10,000 $ 10,000 $10,000 $10,000
11/30/96 $ 11,055 $ 12,026 $10,455 $11,227
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns**
For Period Ended Class D S&P 500 Lehman Composite
November 30, 1996: Units Index Brothers Index*
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Since Commencement on 2/20/96: 10.55% 20.26% 4.55% 12.27%
- -----------------------------------------------------------------------------------
</TABLE>
*The Composite Index consists of 55%, 40% and 5% of the S&P 500, The Lehman
Brothers Intermediate Government/Corporate Index and 91-Day Treasury Bills,
respectively.
**Average Annual Total Returns are not annualized for periods less than one
year.
2
<PAGE>
- --------------------------------------------------------------------------------
THE BENCHMARK DIVERSIFIED GROWTH PORTFOLIO
Several factors influenced the portfolio's fiscal-year performance, particu-
larly the portfolio's relative overweighting in selected financial and health
care issues and its overall exposure to larger-capitalization stocks, which
dominated this phase of the market cycle.
Compared to the return on the S&P 500 Index, the portfolio's performance
lagged. This was due to the portfolio's less-than-aggressive stance toward the
technology sector throughout most of the year. And, as we moved into the latter
part of the fiscal year, certain issues--such as Olsten and Electronic Data
Systems--fell short of anticipated earnings, which held back the portfolio's
performance.
Throughout the 12-month period, we reduced the number of issues in the port-
folio. Early on, the portfolio held as many as 75 stocks and was much more
broadly diversified across issues. By year-end, the portfolio held approxi-
mately 55 securities. We reduced the portfolio's exposure to more aggressive
stocks and focused instead on quality growth issues that had the potential to
reduce total portfolio risk.
We currently are not emphasizing any particular market sectors, but we are
focusing on specific issues that we believe will show favorable revenue compar-
isons and those that represent good value relative to their expected earnings
growth rates.
John Zielinski, Portfolio Manager
COMPARISON OF CHANGE IN VALUE
OF $10,000 INVESTMENT IN BENCHMARK DIVERSIFIED GROWTH PORTFOLIO VS. THE S&P 500
COMPOSITE STOCK PRICE INDEX
- -l- Diversified Growth Portfolio - -
c- - S&P 500 Index
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Diversified
Growth S&P
Portfolio 500 Index
---------- ---------
<S> <C> <C>
1/11/93 $10,000 $10,000
11/30/93 $10,738 $11,041
11/30/94 $ 9,988 $11,161
11/30/95 $12,441 $15,291
11/30/96 $15,032 $19,554
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns
For Periods Ended Class A S&P 500
November 30, 1996: Units Index
- -------------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 20.83% 27.88%
- -------------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 11.05% 18.81%
- -------------------------------------------------------------------------------------------
</TABLE>
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Diversified
Growth S&P
Portfolio 500 Index
---------- ---------
<S> <C> <C>
9/14/94 $10,000 $10,000
11/30/94 $ 9,486 $ 9,738
11/30/95 $11,781 $13,341
11/30/96 $14,183 $17,060
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns
For Periods Ended Class D S&P 500
November 30, 1996: Units Index
- -------------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 20.39% 27.88%
- -------------------------------------------------------------------------------------------
Since Commencement on 9/14/94: 17.10% 27.29%
- -------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
THE BENCHMARK EQUITY INDEX PORTFOLIO
The S&P 500 Index continued its strong performance, returning 27.9% for the
fiscal year ended November 30, 1996. This surpassed the performance of small-
capitalization stocks as measured by the Russell 2000 Index, which returned
16.5% for the year.
After adjusting for expenses, the portfolio, which is designed to replicate
the S&P 500 Index's performance in an efficient, cost-effective manner, pro-
vided a return that closely matched the return for the Index.
There were 23 additions and deletions to the Index throughout the fiscal
year, the most notable being the Chemical Bank/Chase merger and the
Disney/Capital Cities merger. These changes, as well as quarterly rebalancings,
were made in the portfolio at the time they were initiated in the Index.
During the next 12 months, we will continue to follow a passive index strat-
egy designed to provide equity market returns, as defined by the S&P 500 Index.
Susan French, Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF
$10,000 INVESTMENT IN BENCHMARK EQUITY INDEX PORTFOLIO VS. THE S&P 500
COMPOSITE STOCK PRICE INDEX
-l- Equity Index Portfolio - -
c- - S&P 500 Index
<TABLE>
[GRAPH APPEARS HERE]
<CAPTION>
Equity
Index S&P
Portfolio 500 Index
- ------------------- --------- ---------
<S> <C> <C>
1/11/93 $10,000 $10,000
11/30/93 $11,008 $11,041
11/30/94 $11,104 $11,161
11/30/95 $15,168 $15,291
11/30/96 $19,344 $19,554
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns
For Periods Ended Class A S&P 500
November 30, 1996: Units Index
- -------------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 27.53% 27.88%
- -------------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 18.48% 18.81%
- -------------------------------------------------------------------------------------------
</TABLE>
COMPARISON OF CHANGE IN VALUE OF
$10,000 INVESTMENT IN BENCHMARK EQUITY INDEX PORTFOLIO VS. THE S&P 500
COMPOSITE STOCK PRICE INDEX--CONTINUED
<TABLE>
[GRAPH APPEARS HERE]
<CAPTION>
Equity
Index S&P
Portfolio 500 Index
- ------------------- --------- ---------
<S> <C> <C>
9/28/95 $10000 $10000
11/30/95 $10394 $10402
11/30/96 $13225 $13302
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns
For Periods Ended Class C S&P 500
November 30, 1996: Units Index
- -------------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 27.24% 27.88%
- -------------------------------------------------------------------------------------------
Since Commencement on 9/28/95: 26.85% 27.61%
- -------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
[GRAPH APPEARS HERE]
<CAPTION>
Equity
Index S&P
Portfolio 500 Index
- ------------------- --------- ---------
<S> <C> <C>
9/14/94 $10000 $10000
11/30/94 $ 9732 $9738
11/30/95 $13255 $13341
11/30/96 $16860 $17060
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns
For Periods Ended Class D S&P 500
November 30, 1996: Units Index
- -------------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 27.20% 27.88%
- -------------------------------------------------------------------------------------------
Since Commencement on 9/14/94: 26.61% 27.29%
- -------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
- --------------------------------------------------------------------------------
THE BENCHMARK FOCUSED GROWTH PORTFOLIO
Activity in the technology sector, and how we invested in technology stocks at
certain points during the year, had the largest influence on the portfolio's
performance for the fiscal year ended November 30, 1996.
The portfolio's underperformance relative to its market index can be attrib-
uted to two specific periods of time. In December 1995 a number of sectors, in-
cluding business services, technology, financial and health care,
underperformed the index by a large margin. As a result, the portfolio's per-
formance was off by approximately 2.6% for the month. In the summer, technology
stocks suffered a setback, which was reflected in the portfolio's performance.
We then implemented a hedge against technology, which prevented the portfolio
from participating in the technology upswing that occurred late in the third
quarter.
Investors should keep in mind that the portfolio normally contains a limited
number of stocks, which may create some underperformance, relative to the S&P
500 Index, over shorter time periods. Our system of identifying fundamentally
sound companies strives to provide good long-term performance.
Going forward, we believe it's doubtful that returns from the technology and
financial sectors will continue to be so relatively strong. As such, we may
take some profits from stocks in strong sectors and reinvest the proceeds in
promising areas of the market that haven't performed quite as well over the
prior year.
Tom Kirkenmeier, Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF
$10,000 INVESTMENT IN BENCHMARK FOCUSED GROWTH
PORTFOLIO VS. THE S&P 500
COMPOSITE STOCK PRICE INDEX
-l- Focused Growth Portfolio - - c - - S&P 500 Index
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Focused
Growth 500 S&P 500
---------- -------
<S> <C> <C>
7/1/93 $10,000 $10,000
11/30/93 $10,433 $10,372
11/30/94 $ 9,791 $10,485
11/30/95 $12,570 $14,365
11/30/96 $14,811 $18,369
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns
For Periods Ended Class A S&P 500
November 30, 1996: Units Index
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 17.82% 27.88%
- ---------------------------------------------------------------------------------------------
Since Commencement on 7/1/93: 12.16% 19.45%
- ---------------------------------------------------------------------------------------------
</TABLE>
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
FOCUSED S&P
GROWTH 500 INDEX
------- ---------
<S> <C> <C>
6/14/96 $10,000 $10,000
11/30/96 $10,751 $11,481
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns**
For Period Ended Class C S&P 500
November 30, 1996: Units Index
- --------------------------------------------------------------------------------------------
<S> <C> <C>
Since Commencement on 6/14/96: 7.51% 14.81%
- --------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF
$10,000 INVESTMENT IN BENCHMARK FOCUSED GROWTH
PORTFOLIO VS. THE S&P 500
COMPOSITE STOCK PRICE INDEX--CONTINUED
-l- Focused Growth Portfolio - - c - - S&P 500 Index
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Focused
Growth S&P 500
------- -------
<S> <C> <C>
12/8/94 $10,000 $10,000
11/30/95 $13,097 $13,767
11/30/96 $15,378 $17,605
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns
For Periods Ended Class D S&P 500
November 30, 1996: Units Index
- -------------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 17.42% 27.88%
- -------------------------------------------------------------------------------------------
Since Commencement on 12/8/94: 24.27% 33.05%
- -------------------------------------------------------------------------------------------
</TABLE>
**Average Annual Total Returns are not annualized for periods less than one
year.
6
<PAGE>
- --------------------------------------------------------------------------------
THE BENCHMARK INTERNATIONAL GROWTH PORTFOLIO
The portfolio's exposure to the underperforming Japanese stock market and the
strength of the U.S. dollar were the primary factors influencing performance
during the fiscal year. The portfolio maintained a slightly greater-than-aver-
age weighting in the Japanese market, but, more important, the dollar rose
about 10% against the yen, which magnified the underperformance in U.S. dollar
terms.
Relative to its market index, the portfolio lagged somewhat, primarily due to
its position in Japan, its less-than-aggressive stance toward Hong Kong and a
slight underexposure to Europe.
Throughout the fiscal year, we tended to favor the Asian markets, lead by Ja-
pan, rather than the European markets. In general, Asia accounted for more than
50% of the fund's weighting. Asia, however, underperformed Europe during the
period, as strong bond market performance helped propel Europe's stock markets
upward.
Recently, we reduced the portfolio's position in Asia and increased its posi-
tion in Europe, which now accounts for a little more than half of the portfo-
lio. We also reduced the portfolio's Japanese exposure to about 30%, compared
to the EAFE Index weighting of 35%.
Looking ahead, we believe that the portfolio's repositioning toward Japan and
Europe should help future performance. We will continue to emphasize specific
countries rather than economic sectors.
Robert A. LaFleur, Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BENCHMARK INTERNATIONAL
GROWTH PORTFOLIO VS. THE MORGAN STANLEY EUROPE, AUSTRALIA AND FAR EAST (EAFE)
INDEX
-l- International Growth
Portfolio
- -c- - EAFE Index
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
International
Growth EAFE
Portfolio Index
------------- -------
<S> <C> <C>
3/28/94 $10,000 $10,000
11/30/94 $10,211 $10,204
11/30/95 $ 9,974 $10,976
11/30/96 $10,967 $12,267
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns
For Periods Ended Class A EAFE
November 30, 1996: Units Index
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 9.96% 11.76%
- ---------------------------------------------------------------------------------------------
Since Commencement on 3/28/94: 3.50% 7.91%
- ---------------------------------------------------------------------------------------------
</TABLE>
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
International
Growth EAFE
Portfolio Index
------------- -------
<S> <C> <C>
11/16/94 $10,000 $10,000
11/30/94 $ 9,744 $ 9,823
11/30/95 $ 9,474 $10,567
11/30/96 $10,382 $11,809
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns
For Periods Ended Class D EAFE
November 30, 1996: Units Index
- -------------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 9.59% 11.76%
- -------------------------------------------------------------------------------------------
Since Commencement on 11/16/94: 1.86% 8.49%
- -------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF PORTFOLIO PERFORMANCE
THE BENCHMARK SMALL COMPANY INDEX PORTFOLIO
Small-capitalization stocks, as represented by the Russell 2000 Index, returned
16.5% for the fiscal year ended November 30, 1996. Compared to large-cap
stocks, as measured by the S&P 500 Index, small-cap stocks underperformed by
11.4%.
As it is designed to do, the portfolio's performance nearly matched that of
the Russell 2000 Index during the fiscal year.
The major changes to the portfolio occurred in June, when the Russell 2000
Index was reconstituted. Once a year, all eligible securities in the Index are
re-ranked according to market capitalization. This activity resulted in the ad-
dition of approximately 450 stocks and the deletion of approximately 350. These
changes were incorporated into the portfolio at the end of June.
At the end of the current fiscal year, the market capitalization of the com-
panies in the Index, adjusted for cross holdings, ranged from $26.13 million to
$2.10 billion. The average market capitalization of the Index's companies was
$424 million.
Going forward, we will continue to stay aligned with the Russell 2000, with
our focus on closely approximating the Index's return.
Andrew Buchner, Portfolio Manager
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BENCHMARK SMALL COMPANY
PORTFOLIO VS. THE RUSSELL 2000 SMALL STOCK INDEX
-l- Small Company Portfolio - -c- -
Russell 2000 Index
<TABLE>
[GRAPH APPEARS HERE]
<CAPTION>
Small Company Russell
Portfolio 2000 INDEX
- ------------------- ---------- ---------
<S> <C> <C>
1/11/93 $10000 $10000
11/30/93 $11409 $11515
11/30/94 $11233 $11363
11/30/95 $14352 $14576
11/30/96 $16642 $16976
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns
For Periods Ended Class A Russell 2000
November 30, 1996: Units Index
- ------------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 15.96% 16.46%
- ------------------------------------------------------------------------------------------
Since Commencement on 1/11/93: 13.99% 14.57%
- ------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
[GRAPH APPEARS HERE]
<CAPTION>
Small Company Russell
Portfolio 2000 INDEX
- ------------------- ---------- ---------
<S> <C> <C>
12/08/94 $10000 $10000
11/30/95 $13162 $13263
11/30/96 $15295 $15447
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns
For Periods Ended Class D Russell 2000
November 30, 1996: Units Index
- ------------------------------------------------------------------------------------------
<S> <C> <C>
One Year: 16.20% 16.46%
- ------------------------------------------------------------------------------------------
Since Commencement on 12/8/94: 23.93% 24.55%
- ------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
BALANCED PORTFOLIO
<C> <S> <C>
COMMON STOCKS--54.4%
BANKING--1.2%
13,200 Banc One Corp. $ 629
BROKERAGE AND FINANCIAL SERVICES--1.2%
17,500 T. Rowe Price, Associates Inc.* 632
CHEMICALS AND ALLIED PRODUCTS--6.3%
9,100 American Home Products Corp. 585
9,400 Merck & Co., Inc. 780
14,211 Morton International, Inc. 574
11,800 Praxair, Inc. 574
6,400 Procter & Gamble Co. 696
-------
3,209
COMMUNICATIONS--1.2%
10,700 Ameritech Corp. 630
COMPUTERS AND OFFICE MACHINES--2.5%
9,300 Cisco Systems, Inc.* 631
4,300 Microsoft Corp.* 675
-------
1,306
COSMETICS AND PERSONAL CARE--1.3%
9,200 Gillette Co. 679
CREDIT INSTITUTIONS--2.5%
14,300 Green Tree Financial Corp. 599
16,300 MBNA Corp. 658
-------
1,257
ELECTRICAL SERVICES--1.1%
12,700 Duke Power Co. 589
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--5.8%
9,700 General Electric Co. 1,009
6,600 Intel Corp. 837
10,300 Linear Technology Corp. 485
11,400 Solectron Corp.* 667
-------
2,998
FOOD AND BEVERAGES--3.2%
14,400 PepsiCo, Inc. 430
4,900 Philip Morris Cos., Inc. 505
20,400 Starbucks Corp.* 706
-------
1,641
HEALTH SERVICES--3.4%
25,300 Health Management Associates, Inc.,
Class A* 560
10,898 Johnson & Johnson Co. 579
3,800 Invacare Corp. 103
7,700 Medtronic, Inc. 509
-------
1,751
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
INDUSTRIAL INSTRUMENTS--1.0%
11,100 Danaher Corp. $ 497
INSURANCE SERVICES--3.7%
5,400 American International Group, Inc. 621
3,500 General Re Corp. 591
6,700 MBIA, Inc. 678
-------
1,890
MORTGAGE AGENCIES--1.4%
17,900 Federal National Mortgage Association 738
OIL AND GAS--2.7%
6,400 Enron Corp. 293
9,900 Noble Affiliates, Inc. 466
5,900 Schlumberger Ltd. 614
-------
1,373
PAPER PRODUCTS--1.4%
7,200 Kimberly-Clark Corp. 704
PETROLEUM PRODUCTS--3.6%
9,100 Chevron Corp. 610
6,700 Exxon Corp. 634
3,400 Royal Dutch Petroleum Co. 577
-------
1,821
PROFESSIONAL SERVICES--5.3%
7,200 Cintas Corp. 437
6,800 Computer Sciences Corp.* 535
21,450 CUC International, Inc.* 566
13,800 First Data Corp. 550
12,700 Oracle Systems Corp.* 622
-------
2,710
RETAIL--4.5%
8,100 Home Depot, Inc. 422
22,700 Staples, Inc.* 448
5,000 Tommy Hilfiger Corp.* 270
10,900 Viking Office Products, Inc. 341
19,500 Walgreen Co. 814
-------
2,295
TRANSPORTATION PARTS AND EQUIPMENT--1.1%
5,900 Boeing Co. 586
- --------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $21,087) $27,935
- --------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Description Value
- -------------------------------------------------------------------------------
<C> <S> <C>
BALANCED PORTFOLIO--CONTINUED
ASSET-BACKED SECURITIES--3.1%
FINANCIAL--3.1%
Olympic Automobile Receivables Trust Series: 1995-D, Class
A3
$ 700 5.950%Due 11/15/99 $ 703
Premier Auto Trust
Series: 1994-1, Class A3
156 4.750%Due 02/02/00 155
Western Financial Grantor Trust
Series: 1994-4, Class A1
151 7.100%Due 01/01/00 153
Western Financial Grantor Trust
Series: 1995-5, Class A1
596 5.875%Due 03/01/02 597
- -------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(Cost $1,603) $ 1,608
- -------------------------------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATION--0.6%
Donaldson, Lufkin & Jenrette, Inc. Mortgage Acceptance
Corp.
Series: 1994-Q8, Class 2A1
$ 327 7.250% Due 05/25/24 $ 327
- -------------------------------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATION
(Cost $318) $ 327
- -------------------------------------------------------------------------------
CORPORATE BONDS--6.4%
FINANCIAL--4.3%
Equitable Life Assurance Co.
$ 400 6.950%Due 12/01/05 $ 402
Lehman Brothers Medium Term Note
475 6.875%Due 06/08/98 480
Lumbermens Mutual Casualty Co.
350 9.150%Due 07/01/26 392
Prudential Insurance Co. of America
400 7.650%Due 07/01/07 417
Salomon, Inc. Medium Term Note
500 5.500%Due 01/31/98 498
-------
2,189
RETAIL--0.8%
Penney (J. C.), Inc.
420 6.900%Due 08/15/26 433
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Description Value
- -----------------------------------------------
<C> <S> <C>
SANITARY SERVICES--1.3%
WMX Technologies, Inc.
$ 650 7.100%Due 08/01/26 $ 686
- -----------------------------------------------
TOTAL CORPORATE BONDS
(Cost $3,209) $ 3,308
- -----------------------------------------------
U.S. GOVERNMENT AGENCIES--6.0%
FEDERAL NATIONAL MORTGAGE ASSOCIATION REMIC
TRUST--3.0%
Series: 1991-37, Class G
$ 250 8.150% Due 08/25/05 $ 257
Series: 1996-M4, Class A
746 7.750% Due 03/17/17 768
Series: 1992-200, Class E
500 6.250% Due 06/25/17 500
--------
1,525
GOVERNMENT NATIONAL MORTGAGE ASSOCI-
ATION--3.0%
Pool # 432153
1,522 8.000% Due 11/15/26 1,570
- -----------------------------------------------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $3,048) $ 3,095
- -----------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--21.4%
U.S. TREASURY NOTES--21.4%
$ 1,550 8.125% Due 02/15/98 $ 1,596
750 5.375% Due 05/31/98 748
1,835 6.750% Due 05/31/99 1,881
640 6.875% Due 08/31/99 659
1,475 6.250% Due 05/31/00 1,498
1,325 7.750% Due 02/15/01 1,420
800 6.250% Due 02/15/03 814
1,000 5.750% Due 08/15/03 990
1,260 7.500% Due 02/15/05 1,379
- -----------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $10,792) $ 10,985
- -----------------------------------------------
FLOATING RATE BANK NOTE--1.6%
National Westminster Bank
$ 900 5.625%Due 02/28/97 $ 789
- -----------------------------------------------
TOTAL FLOATING RATE BANK NOTE
(Cost $762) $ 789
- -----------------------------------------------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Description Value
- -------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT--6.6%
Berliner Handels und Frankfurter,
Grand Cayman
$ 3,401 5.688%Due 12/02/96 $ 3,401
- -------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $3,401) $ 3,401
- -------------------------------------------------------
TOTAL INVESTMENTS--100.1%
(Cost $44,220) $51,448
- -------------------------------------------------------
Liabilities, less other assets--(0.1)% (62)
- -------------------------------------------------------
NET ASSETS--100.0% $51,386
- -------------------------------------------------------
- -------------------------------------------------------
</TABLE>
*Non-income producing security.
See accompanying notes to financial statements.
11
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
DIVERSIFIED GROWTH PORTFOLIO
<C> <S> <C> <C>
COMMON STOCKS--99.1%
BANKING--4.8%
68,640 Banc One Corp. $ 3,269
108,200 First USA, Inc. 3,557
--------
6,826
BROKERAGE SERVICES--2.1%
100,000 Schwab (Charles) Corp. 3,012
CHEMICALS AND ALLIED PRODUCTS--14.3%
41,000 Abbott Laboratories 2,286
50,800 Air Products and Chemicals, Inc. 3,531
40,000 American Home Products Corp. 2,570
31,200 Merck & Co., Inc. 2,590
72,437 Morton International, Inc. 2,925
17,000 Pfizer, Inc. 1,523
62,000 Praxair, Inc. 3,015
18,300 Procter & Gamble Co. 1,990
--------
20,430
COMMUNICATIONS--3.6%
50,000 Ameritech Corp. 2,944
55,000 AT&T Corp. 2,159
--------
5,103
COMPUTERS AND OFFICE MACHINES--3.7%
27,000 Cisco Systems, Inc.* 1,833
20,000 Electronic Data Systems Corp. 967
16,300 Microsoft Corp.* 2,557
--------
5,357
COSMETICS AND PERSONAL CARE--0.7%
14,100 Gillette Co. 1,040
CREDIT INSTITUTIONS--1.5%
50,000 Green Tree Financial Corp. 2,094
ELECTRONICS AND OTHER ELECTRICAL EQUIP-
MENT--9.7%
18,000 Emerson Electric Co. 1,766
49,600 General Electric Co. 5,158
22,900 Intel Corp. 2,905
44,000 Linear Technology Corp. 2,074
35,000 Motorola, Inc. 1,938
--------
13,841
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
FOOD AND BEVERAGES--4.1%
117,000 Brinker International, Inc.* $ 2,165
45,000 PepsiCo, Inc. 1,344
22,000 Philip Morris Cos., Inc. 2,269
--------
5,778
GLASS, CLAY AND STONE PRODUCTS--1.3%
58,700 Newell Co. 1,820
HEALTH SERVICES--2.0%
35,000 Health Management Associates, Inc.,
Class A* 774
40,000 Johnson & Johnson Co. 2,125
--------
2,899
HEAVY CONSTRUCTION--2.4%
51,000 Fluor Corp. 3,468
INDUSTRIAL INSTRUMENTS--3.1%
37,600 Hewlett-Packard Co. 2,026
60,000 Sundstrand Corp. 2,340
--------
4,366
INSURANCE SERVICES--3.6%
23,900 American International Group, Inc. 2,748
23,400 MBIA, Inc. 2,366
--------
5,114
MORTGAGE AGENCIES--2.8%
92,000 Federal National Mortgage Association 3,795
OIL AND GAS--2.9%
45,000 Noble Affiliates, Inc. 2,121
20,000 Schlumberger Ltd. 2,080
--------
4,201
PAPER PRODUCTS--2.1%
31,300 Kimberly-Clark Corp. 3,059
PETROLEUM PRODUCTS--9.1%
43,000 Chevron Corp. 2,881
37,300 Exxon Corp. 3,529
34,650 Mobil Corp. 4,193
14,000 Royal Dutch Petroleum Co. 2,378
--------
12,981
PROFESSIONAL SERVICES--7.5%
35,000 Cintas Corp. 2,126
17,000 Computer Sciences Corp.* 1,337
100,700 CUC International, Inc.* 2,656
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
32,736 First Data Corp. $ 1,305
71,900 Olsten Corp. 980
47,500 Oracle Systems Corp.* 2,327
--------
10,731
RECREATION AND LEISURE SERVICES--4.2%
88,100 Carnival Corp., Class A 2,786
88,000 Circus Circus Enterprises, Inc.* 3,212
--------
5,998
RETAIL--11.1%
58,200 Home Depot, Inc. 3,034
131,050 Staples, Inc.* 2,588
50,000 Tommy Hilfiger Corp.* 2,700
115,600 Wal-Mart Stores, Inc. 2,948
107,300 Walgreen Co. 4,480
--------
15,750
TRANSPORTATION PARTS AND EQUIPMENT--2.5%
36,000 Boeing Co. 3,578
- --------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $105,076) $141,241
- --------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Description Value
- -----------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT--1.1%
Berliner Handels und Frankfurter, Grand Cayman
$1,490 5.688%Due 12/02/96 $ 1,490
- -----------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $1,490) $ 1,490
- -----------------------------------------------------------------------
TOTAL INVESTMENTS--100.2%
(Cost $106,566) $142,731
- -----------------------------------------------------------------------
Liabilities, less other assets--(0.2)% (243)
- -----------------------------------------------------------------------
NET ASSETS--100.0% $142,488
- -----------------------------------------------------------------------
- -----------------------------------------------------------------------
</TABLE>
*Non-income producing security.
See accompanying notes to financial statements.
13
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
EQUITY INDEX PORTFOLIO
COMMON STOCKS--98.2%
AGRICULTURE--0.1%
10,400 Pioneer Hi-Bred International, Inc. $ 725
APPAREL--0.1%
9,200 Liz Claiborne, Inc. 390
8,000 V. F. Corp. 543
--------
933
BANKING--7.8%
13,500 Ahmanson (H.F.) & Co. 445
54,949 Banc One Corp. 2,617
19,200 Bank of Boston Corp. 1,342
48,600 Bank of New York Co., Inc. 1,744
45,376 BankAmerica Corp. 4,674
10,100 Bankers Trust New York Corp. 879
24,300 Barnett Banks, Inc. 1,069
19,800 Boatmen's Bancshares, Inc. 1,319
55,046 Chase Manhattan Corp. 5,202
60,600 Citicorp 6,620
14,500 Comerica, Inc. 848
28,100 Corestates Financial Corp. 1,514
13,300 Fifth Third Bancorp 931
17,800 First Bank System, Inc. 1,297
39,907 First Chicago NBD Corp. 2,345
34,815 First Union Corp. 2,659
7,300 Golden West Financial Corp. 493
17,300 Great Western Financial Corp. 538
29,000 Keycorp 1,519
16,350 Mellon Bank Corp. 1,181
23,500 Morgan (J.P.) & Co., Inc. 2,218
28,000 National City Corp. 1,298
36,668 NationsBank Corp. 3,800
46,700 Norwest Corp. 2,183
43,000 PNC Bank Corp. 1,698
7,000 Republic New York Corp. 618
28,100 Sun Trust Banks, Inc. 1,426
19,500 U.S. Bancorp 834
21,000 Wachovia Corp. 1,260
11,866 Wells Fargo & Co. 3,377
--------
57,948
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
BITUMINOUS COAL AND LIGNITE SURFACE MINING--0.1%
31,400 Houston Industries, Inc. $ 691
1,100 Nacco Industries, Inc. 52
--------
743
BROKERAGE AND FINANCIAL SERVICES--1.2%
59,800 American Express Co. 3,125
33,101 Fleet Financial Group, Inc. 1,833
17,300 Green Tree Financial Corp. 724
21,300 Merrill Lynch & Co., Inc. 1,709
19,100 Morgan Stanley Group, Inc. 1,148
13,300 Salomon Brothers, Inc. 607
--------
9,146
CHEMICALS AND ALLIED PRODUCTS--11.9%
98,400 Abbott Laboratories 5,486
14,100 Air Products and Chemicals, Inc. 980
8,200 Allergan, Inc. 263
10,600 Alza Corp.* 299
80,200 American Home Products Corp. 5,153
33,400 Amgen, Inc.* 2,033
16,800 Avon Products, Inc. 937
34,400 Baxter International, Inc. 1,462
63,200 Bristol-Myers Squibb Co. 7,189
6,500 Clorox Co. 678
18,500 Colgate-Palmolive Co. 1,714
30,900 Dow Chemical Co. 2,588
70,700 Du Pont (E.I.) de Nemours & Co., Inc. 6,663
9,875 Eastman Chemical Co. 564
8,100 Ecolab, Inc. 315
68,998 Eli Lilly & Co. 5,278
4,700 FMC Corp.* 363
6,800 Goodrich (B.F.) Co. 305
11,100 Grace (W.R.) & Co. 587
8,000 Great Lakes Chemical Corp. 429
13,500 Hercules, Inc. 655
14,000 International Flavors & Fragrances, Inc. 637
153,400 Merck & Co., Inc. 12,732
18,000 Morton International, Inc. 727
8,500 Nalco Chemical Co. 324
81,000 Pfizer, Inc. 7,260
64,120 Pharmacia & Upjohn, Inc. 2,477
23,500 PPG Industries, Inc. 1,439
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
19,600 Praxair, Inc. $ 953
86,400 Procter & Gamble Co. 9,396
8,200 Rohm & Haas Co. 653
46,600 Schering-Plough Corp. 3,320
10,800 Sherwin-Williams Co. 613
16,300 Union Carbide Corp. 752
34,200 Warner-Lambert Co. 2,445
--------
87,669
COMMUNICATIONS--7.4%
62,900 AirTouch Communications, Inc.* 1,612
23,900 Alltel Corp. 762
69,300 Ameritech Corp. 4,080
203,300 AT&T Corp. 7,979
55,200 Bell Atlantic Corp. 3,471
125,300 Bellsouth Corp. 5,059
41,200 Comcast Corp. 690
122,000 GTE Corp. 5,475
80,264 Lucent Technologies, Inc.* 4,114
9,300 Mallinckrodt, Inc. 409
86,700 MCI Communications Corp. 2,644
55,300 Nynex Corp. 2,564
54,000 Pacific Telesis Group 1,998
11,800 Providian Corp. 631
76,800 SBC Communications, Inc. 4,042
54,300 Sprint Corp. 2,274
22,500 Tellabs, Inc.* 894
78,700 U.S. West Media Group 1,505
60,200 U.S. West, Inc.* 1,881
45,000 Viacom, Inc., Class B* 1,699
48,900 Worldcom, Inc.* 1,131
--------
54,914
COMPUTERS AND OFFICE MACHINES--5.5%
15,200 Amdahl Corp.* 181
15,700 Apple Computer, Inc.* 379
23,700 Bay Network Inc.* 634
19,200 Cabletron Systems, Inc.* 775
8,600 Ceridian Corp.* 414
81,600 Cisco Systems, Inc.* 5,539
34,000 Compaq Computer Corp.* 2,694
4,900 Data General Corp.* 72
11,400 Dell Computer Corp.* 1,159
19,600 Digital Equipment Corp.* 720
29,200 EMC Corp.* 942
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------
<C> <S> <C>
5,900 Intergraph Corp.* $ 54
66,500 International Business Machines Corp. 10,598
75,400 Microsoft Corp.* 11,828
18,800 Pitney Bowes, Inc. 1,109
27,300 Seagate Technology Inc.* 1,078
21,700 Silicon Graphics, Inc.* 431
14,800 Tandem Computers, Inc.* 202
7,500 Tandy Corp. 316
21,300 3Com Corp.* 1,600
21,900 Unisys Corp.* 167
--------
40,892
CONSTRUCTION--0.2%
14,400 Dover Corp. 769
22,600 Dresser Industries, Inc. 740
--------
1,509
COSMETICS AND PERSONAL CARE--0.6%
56,200 Gillette Co. 4,145
CREDIT INSTITUTIONS--0.6%
6,800 Beneficial Corp. 422
20,672 Dean Witter Discover & Co. 1,413
12,200 Household International, Inc. 1,156
28,050 MBNA Corp. 1,133
7,400 MGIC Investment Corp. 554
--------
4,678
ELECTRICAL SERVICES--2.7%
23,600 American Electric Power Co., Inc. 979
18,600 Baltimore Gas and Electric Co. 518
19,200 Carolina Power & Light Co. 703
26,500 Central and South West Corp. 709
19,910 Cinergy Corp. 667
29,600 Consolidated Edison Co. of New York, Inc. 858
22,400 Dominion Resources, Inc. 854
18,300 DTE Energy Co. 586
25,600 Duke Power Co. 1,187
55,300 Edison International 1,099
28,800 Entergy Corp. 781
23,100 FPL Group, Inc. 1,066
15,200 General Public Utilities Corp. 511
18,200 Niagara Mohawk Power Corp.* 159
8,700 Northern States Power Co. 410
19,200 Ohio Edison Co. 442
52,400 Pacific Gas & Electric Co. 1,264
</TABLE>
See accompanying notes to financial statements.
15
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
EQUITY INDEX PORTFOLIO--CONTINUED
ELECTRICAL SERVICES--CONTINUED
37,100 PacifiCorp $ 779
28,100 Peco Energy Co. 717
20,400 PP&L Resources, Inc. 467
30,800 Public Service Enterprise Group, Inc. 882
84,900 Southern Co. 1,889
28,300 Texas Utilities Co. 1,118
27,200 Unicom Corp. 724
12,900 Union Electric Co. 513
--------
19,882
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--7.3%
17,000 Advanced Micro Devices, Inc.* 412
27,656 AMP, Inc. 1,058
7,587 Andrew Corp.* 439
13,600 Cooper Industries, Inc. 564
14,700 DSC Communications Corp.* 265
28,300 Emerson Electric Co. 2,777
208,200 General Electric Co. 21,653
17,300 General Instrument Corp.* 383
4,900 Harris Corp. 336
103,700 Intel Corp. 13,157
14,800 ITT Corp. * 683
16,300 LSI Logic Corp.* 491
12,800 Maytag Corp. 245
26,300 Micron Technology, Inc. 871
74,700 Motorola, Inc. 4,136
17,400 National Semiconductor Corp.* 426
6,000 National Service Industries, Inc. 210
32,600 Northern Telecom, Ltd. 2,143
5,600 Raychem Corp. 477
9,700 Scientific-Atlanta, Inc. 150
82,300 TeleCommunications, Inc.* 1,111
23,900 Texas Instruments, Inc. 1,524
5,100 Thomas & Betts Corp. 231
9,400 Whirlpool Corp. 470
--------
54,212
FOOD AND BEVERAGES--8.7%
62,500 Anheuser-Busch Cos., Inc. 2,649
68,809 Archer-Daniels-Midland Co. 1,514
8,700 Brown-Forman, Inc. 404
29,600 Campbell Soup Co. 2,446
314,300 Coca-Cola Co. 16,069
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------
<C> <S> <C>
30,650 ConAgra, Inc. $ 1,628
4,800 Coors (Adolph) Co. 95
18,300 CPC International, Inc. 1,524
20,000 General Mills, Inc. 1,270
46,600 Heinz (H.J.) Co. 1,765
19,400 Hershey Foods Corp. 968
26,700 Kellogg Co. 1,812
3,000 Luby's Cafeterias, Inc. 66
88,200 McDonalds Corp. 4,123
197,500 PepsiCo, Inc. 5,900
103,200 Philip Morris Cos., Inc. 10,643
17,100 Quaker Oats Co. 673
13,400 Ralston Purina Group 1,025
61,200 Sara Lee Corp. 2,402
47,200 Seagram Co., Ltd. 1,929
20,200 Unilever N.V. ADR 3,497
23,700 UST, Inc. 773
13,300 Whitman Corp. 306
14,600 Wrigley (WM) Jr. Co. 852
-------
64,333
FURNITURE AND FIXTURES--0.1%
20,200 Masco Corp. 737
GENERAL BUILDING CONTRACTORS--0.2%
3,600 Centex Corp. 130
16,000 Honeywell, Inc. 1,098
4,900 Kaufman & Broad Home Corp. 63
3,000 Pulte Corp. 92
-------
1,383
GLASS, CLAY AND STONE PRODUCTS--0.2%
29,000 Corning, Inc. 1,175
20,000 Newell Co. 620
-------
1,795
HEALTH SERVICES--1.9%
12,500 Beverly Enterprises, Inc.* 165
84,595 Columbia/HCA Healthcare Corp. 3,384
20,500 Humana, Inc.* 387
168,000 Johnson & Johnson Co. 8,925
7,950 Manor Care, Inc.* 201
10,200 St. Jude Medical, Inc.* 426
27,300 Tenet Healthcare Corp.* 611
-------
14,099
</TABLE>
See accompanying notes to financial statements.
16
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
HEAVY CONSTRUCTION--0.3%
10,500 Fluor Corp. $ 714
5,100 Foster Wheeler Corp. 184
15,800 Halliburton Co. 952
--------
1,850
INDUSTRIAL INSTRUMENTS--2.8%
7,200 Bard (C.R.), Inc. 202
7,100 Bausch & Lomb, Inc. 264
15,700 Becton Dickinson & Co. 659
14,600 Biomet, Inc.* 241
22,300 Boston Scientific Corp.* 1,302
42,500 Eastman Kodak Co. 3,442
128,900 Hewlett-Packard Co. 6,944
5,200 Johnson Controls, Inc. 403
30,200 Medtronic, Inc. 1,997
5,500 Millipore Corp. 225
5,500 Perkin-Elmer Co. 339
5,700 Polaroid Corp. 243
29,800 Raytheon Co. 1,523
4,100 Tektronix, Inc. 200
7,900 United States Surgical Corp. 317
41,000 Xerox Corp. 2,014
--------
20,315
INSURANCE SERVICES--4.1%
18,957 Aetna Life & Casualty Co. 1367
5,700 Alexander & Alexander Services, Inc. 83
56,065 Allstate Corp. 3,378
25,800 American General Corp. 1,061
59,175 American International Group, Inc. 6,805
13,600 AON Corp. 828
22,000 Chubb Corp. 1,193
9,600 CIGNA Corp. 1,357
10,400 General Re Corp. 1,755
14,800 ITT Hartford Group, Inc. 1,012
9,025 Jefferson-Pilot Corp. 526
13,100 Lincoln National Corp. 706
14,500 Loews Corp. 1,345
9,100 Marsh & McLennan Cos., Inc. 1,032
15,900 Safeco Corp. 662
10,600 St. Paul Cos., Inc. 624
9,050 Torchmark Corp. 471
8,300 Transamerica Corp. 659
80,716 Travelers Group, Inc. 3,632
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
23,200 United Healthcare Corp. $ 1,000
9,200 UNUM Corp. 654
14,900 USF & G Corp. 298
4,300 USLIFE Corp. 133
--------
30,581
JEWELRY AND PRECIOUS METALS--0.0%
4,900 Jostens, Inc. 104
LEATHER PRODUCTS--0.0%
6,300 Stride Rite Corp. 63
LUMBER AND WOOD PRODUCTS--0.1%
13,700 Louisiana-Pacific Corp. 310
MACHINERY--1.4%
22,600 Applied Materials, Inc.* 862
18,200 Baker Hughes, Inc. 666
11,100 Black & Decker Corp. 420
3,600 Briggs & Stratton Corp. 149
12,400 Brunswick Corp. 316
9,100 Case Equipment Corp. 478
24,300 Caterpillar, Inc. 1,923
5,000 Cincinnati Milacron, Inc. 104
5,000 Cummins Engine Co., Inc. 226
32,600 Deere & Co. 1,455
6,300 General Signal Corp. 272
4,400 Giddings & Lewis, Inc. 52
5,900 Harnischfeger Industries, Inc. 262
13,800 Ingersoll-Rand Co. 642
21,500 Tenneco, Inc. 1,096
4,000 Timken Co. 182
19,200 Tyco Laboratories, Inc. 1,051
--------
10,156
MANUFACTURING--0.1%
3,500 Alberto-Culver Co., Class B 166
14,900 ITT Industries 349
--------
515
MERCHANDISE--GENERAL--0.2%
16,400 Alco Standard Corp. 849
7,700 Snap-On, Inc. 279
11,200 Stanley Works 330
--------
1,458
</TABLE>
See accompanying notes to financial statements.
17
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
<C> <S> <C>
EQUITY INDEX PORTFOLIO--CONTINUED
METAL MINING--0.7%
45,000 Barrick Gold Corp. $ 1,350
28,300 Battle Mountain Gold Co. 205
11,750 Cyprus/Amax Minerals Co. 291
17,600 Echo Bay Mines Ltd. 109
24,600 Freeport-McMoran Copper & Gold, Inc. 775
18,500 Homestake Mining Co. 280
21,200 Inco Ltd. 739
12,539 Newmont Mining Corp. 600
30,200 Placer Dome, Inc. 713
16,580 Santa Fe Pacific Gold Corp. 191
--------
5,253
METAL PRODUCTS--0.3%
21,927 Allegheny Teledyne Corp. 512
3,800 Ball Corp. 93
3,800 Crane Co. 178
16,200 Crown Cork & Seal Co., Inc. 859
6,900 McDermott International, Inc. 122
9,350 Parker-Hannifin Co. 380
--------
2,144
MORTGAGE AGENCIES--1.1%
22,500 Federal Home Loan Mortgage Corp. 2,571
137,700 Federal National Mortgage Association 5,680
--------
8,251
NATURAL GAS TRANSMISSION--0.8%
13,300 Coastal Corp. 640
6,900 Columbia Gas System, Inc. 446
11,900 Consolidated Natural Gas Co. 680
2,600 Eastern Enterprises 98
32,000 Enron Corp. 1,464
8,700 Enserch Corp. 203
6,300 Nicor, Inc. 232
17,300 Norman Energy Corp. 268
3,400 Oneok, Inc. 94
10,700 Pacific Enterprises 328
4,400 Peoples Energy Corp. 159
10,900 Sonat, Inc. 564
13,200 Williams Company, Inc. 741
--------
5,917
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
OIL AND GAS--1.1%
15,800 Burlington Resources, Inc. $ 837
3,100 Helmerich & Payne, Inc. 167
4,300 Louisiana Land & Exploration Co. 257
40,700 Occidental Petroleum Corp. 977
13,200 Oryx Energy Co.* 274
19,000 Panenergy Corp. 836
10,700 Rowan Cos., Inc.* 253
11,400 Santa Fe Energy Resources, Inc.* 165
30,900 Schlumberger Ltd. 3,214
31,376 Union Pacific Resources Group, Inc.* 937
6,700 Western Atlas, Inc.* 472
--------
8,389
PAPER PRODUCTS--2.0%
6,600 Avery Dennison Corp. 466
6,600 Bemis Co., Inc. 235
6,100 Boise Cascade Co. 189
12,000 Champion International Corp. 516
11,500 Georgia-Pacific Corp. 837
37,835 International Paper Co. 1,608
10,700 James River Corp. 342
35,492 Kimberly-Clark Corp. 3,470
6,600 Mead Corp. 391
52,800 Minnesota Mining & Manufacturing Co. 4,422
12,504 Stone Container Corp. 192
7,000 Temple Inland, Inc. 376
8,600 Union Camp Corp. 423
12,850 Westvaco Corp. 363
25,000 Weyerhaeuser Co. 1,150
--------
14,980
PERSONAL SERVICES--0.6%
13,000 Block (H.& R.), Inc. 380
15,500 HFS Inc.* 1,004
24,600 Hilton Hotels Corp. 719
16,100 Marriott International Corp. 898
29,700 Service Corp. International 895
7,000 Willamette Industries, Inc. 476
--------
4,372
PETROLEUM PRODUCTS--7.4%
11,700 Amerada Hess Corp. 689
62,700 Amoco Corp. 4,867
8,100 Ashland Oil, Inc. 389
20,300 Atlantic Richfield Co. 2,824
</TABLE>
See accompanying notes to financial statements.
18
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
<C> <S> <C>
82,300 Chevron Corp. $ 5,514
156,600 Exxon Corp. 14,818
6,200 Kerr-McGee Corp. 434
49,700 Mobil Corp. 6,014
5,900 Pennzoil Co. 332
33,200 Phillips Petroleum Co. 1,498
67,600 Royal Dutch Petroleum Co. 11,484
9,300 Sun Co., Inc. 233
33,300 Texaco, Inc. 3,301
31,300 Unocal Corp. 1,275
36,200 USX-Marathon Group 828
--------
54,500
PRINTING AND PUBLISHING--1.3%
9,400 American Greetings Corp. 265
10,400 Deluxe Corp. 322
19,300 Donnelley (R.R.) & Sons Co. 647
12,200 Dow Jones & Co., Inc. 424
17,800 Gannett Co., Inc. 1,397
3,900 Harland (John H.) Co. 120
12,100 Knight-Ridder, Inc. 508
12,500 McGraw-Hill Cos., Inc. 569
3,400 Meredith Corp. 175
12,600 Moore Corp. Ltd. 265
12,300 New York Times Co. 460
71,700 Time Warner, Inc. 2,922
13,000 Times Mirror Co. 681
7,700 Tribune Co. 666
--------
9,421
PROFESSIONAL SERVICES--2.2%
5,800 Autodesk, Inc. 162
36,500 Automatic Data Processing, Inc. 1,565
45,950 Computer Associates International, Inc. 3,021
9,500 Computer Sciences Corp.* 747
49,625 CUC International, Inc.* 1,309
56,500 First Data Corp. 2,253
10,300 Interpublic Group of Cos., Inc. 510
44,500 Novell, Inc.* 490
82,500 Oracle Systems Corp.* 4,042
10,200 Ryder System, Inc. 310
7,300 Safety-Kleen Corp. 116
3,000 Shared Medical Systems Corp. 149
23,200 Sun Microsystems, Inc.* 1,351
--------
16,025
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
<C> <S> <C>
RECREATION AND LEISURE SERVICES--1.2%
6,400 Bally Entertainment Corp.* $ 186
85,500 Disney (Walt) Co. 6,306
9,200 Harcourt General, Inc. 503
13,000 Harrah's Entertainment, Inc.* 231
10,850 Hasbro, Inc. 446
4,700 King World Productions, Inc.* 179
34,445 Mattel, Inc. 1,063
--------
8,914
RESEARCH AND CONSULTING SERVICES--0.2%
21,400 Cognizant Corp.* 738
21,400 Dun & Bradstreet Corp. 484
6,000 EG&G, Inc. 110
--------
1,332
RETAIL--4.4%
31,800 Albertson's, Inc. 1,109
18,400 American Stores Co. 734
13,100 Charming Shoppes, Inc.* 67
12,300 Circuit City Stores, Inc. 411
13,300 CVS Corp 547
19,900 Darden Restaurants, Inc. 172
27,300 Dayton-Hudson Corp. 1,061
14,300 Dillard Department Stores, Inc. 438
26,200 Federated Department Stores, Inc.* 894
36,200 Gap, Inc. 1,163
7,500 Giant Food, Inc. 253
4,800 Great Atlantic & Pacific Tea Co., Inc. 157
60,400 Home Depot, Inc. 3,148
61,300 K-Mart Corp.* 682
15,800 Kroger Co.* 729
34,100 Limited, Inc. 614
2,500 Long Drug Stores Corp. 125
21,700 Lowe's Cos., Inc. 882
31,500 May Department Stores Co. 1,536
4,600 Mercantile Stores Co., Inc. 231
10,300 Nordstrom, Inc. 448
28,400 Penney (J.C.), Inc. 1,526
7,800 Pep Boys-Manny Moe & Jack 286
24,703 Price/Costco, Inc.* 574
10,600 Rite Aid Corp. 420
6,400 Ryan's Family Steak Houses, Inc.* 45
49,400 Sears, Roebuck & Co. 2,458
6,100 Shoney's, Inc.* 50
</TABLE>
See accompanying notes to financial statements.
19
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
EQUITY INDEX PORTFOLIO--CONTINUED
RETAIL--CONTINUED
9,200 TJX Cos., Inc. $ 415
34,500 Toys "R" Us, Inc.* 1,190
289,200 Wal-Mart Stores, Inc. 7,375
31,000 Walgreen Co. 1,294
16,200 Wendy's International, Inc. 346
19,100 Winn-Dixie Stores, Inc. 642
16,800 Woolworth Corp.* 403
--------
32,425
RUBBER AND PLASTICS--0.8%
4,600 Armstrong World Industries, Inc. 346
10,500 Cooper Tire & Rubber Co. 215
19,600 Goodyear Tire & Rubber Co. 951
73,900 Monsanto Co. 2,938
18,900 Rubbermaid, Inc. 454
7,800 Tupperware Corp. 413
--------
5,317
SANITARY SERVICES--0.5%
26,800 Browning-Ferris Industries, Inc. 720
39,500 Laidlaw, Inc. 484
61,900 WMX Technologies, Inc. 2,229
--------
3,433
SERVICE INDUSTRY MACHINERY--0.2%
14,566 Pall Corp. 381
3,600 Trinova Corp. 131
53,100 Westinghouse Electric Corp. 996
--------
1,508
STEEL PRODUCTS--0.8%
28,500 Alcan Aluminum Ltd. 1,004
22,000 Aluminum Co. of America 1,400
13,400 Armco, Inc.* 60
5,400 Asarco, Inc. 147
14,000 Bethlehem Steel Corp.* 126
18,187 Engelhard Corp. 355
6,100 Inland Steel Industries, Inc. 114
11,100 Nucor Corp. 604
6,500 Owens Corning Fiberglass Corp. 279
8,300 Phelps Dodge Corp. 603
8,000 Reynolds Metals Co. 476
10,600 USX-U.S. Steel Group 319
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
11,475 Worthington Industries, Inc. $ 228
--------
5,715
TEXTILES--0.1%
9,600 Fruit of the Loom, Inc.* 342
4,900 Russell Corp. 141
2,500 Spring Industries, Inc. 116
--------
599
TOBACCO PRODUCTS--0.1%
21,500 American Brands, Inc. 1,027
TRANSPORTATION PARTS AND EQUIPMENT--4.7%
35,600 Allied Signal, Inc. 2,608
43,900 Boeing Co. 4,362
91,900 Chrysler Corp. 3,262
12,800 Dana Corp. 398
9,800 Eaton Corp. 679
7,700 Echlin, Inc. 259
4,500 Fleetwood Enterprises, Inc. 137
149,100 Ford Motor Co. 4,883
7,900 General Dynamics Corp. 583
95,300 General Motors Corp. 5,492
15,400 Illinois Tool Works, Inc. 1,320
25,254 Lockheed Martin Corp.* 2,289
27,100 McDonnell Douglas Corp. 1,433
9,520 Navistar International. Corp.* 90
7,300 Northrop Grumman Co. 607
4,860 PACCAR, Inc. 323
27,500 Rockwell International Corp. 1,767
10,200 Textron, Inc. 973
8,100 TRW, Inc. 789
15,400 United Technologies Corp. 2,160
--------
34,414
TRANSPORTATION SERVICES--1.4%
11,500 AMR Corp.* 1,049
19,265 Burlington Northern Santa Fe Corp. 1,732
4,900 Caliber Systems Inc. 95
10,200 Conrail, Inc. 992
5,500 Consolidated Freightways, Inc. 133
26,700 CSX Corp. 1,248
10,000 Delta Air Lines, Inc. 753
14,400 Federal Express Corp.* 637
15,900 Norfolk Southern Corp. 1,431
18,200 Southwest Airlines Co. 450
</TABLE>
See accompanying notes to financial statements.
20
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- ---------------------------------------------------
<C> <S> <C>
30,700 Union Pacific Corp. $ 1,788
8,000 USAir Group* 186
--------
10,494
WHOLESALE--0.7%
4,800 Fleming Cos., Inc. 79
15,250 Genuine Parts Co. 686
6,400 Grainger (W.W.), Inc. 509
36,200 Nike, Inc. 2,059
3,600 Potlatch Corp. 159
7,100 Reebok International, Ltd.* 270
6,300 Sigma-Aldrich, Corp. 394
8,500 Supervalu Stores, Inc. 252
22,900 Sysco Corp. 781
--------
5,189
- ---------------------------------------------------
TOTAL COMMON STOCKS
(Cost $530,260) $724,714
- ---------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS--0.3%
U.S. Treasury Bills #
$180 5.095% Due 12/26/96 $ 177
100 4.906% Due 01/09/97 99
820 4.940% Due 01/09/97 809
400 4.990% Due 01/09/97 395
390 5.220% Due 01/09/97 383
- ---------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $1,863) $ 1,863
- ---------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Description Value
- ---------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENT--1.3%
Berliner Handels und Frankfurter,
Grand Cayman
$9,787 5.688% Due 12/02/96 $ 9,787
- ---------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $9,787) $ 9,787
- ---------------------------------------------------------
TOTAL INVESTMENTS--99.8%
(Cost $541,910) $736,364
- ---------------------------------------------------------
Other assets, less liabilities--0.2% 1,374
- ---------------------------------------------------------
NET ASSETS--100.0% $737,738
- ---------------------------------------------------------
- ---------------------------------------------------------
</TABLE>
OPEN FUTURES CONTRACTS:
<TABLE>
<CAPTION>
Number of Contract Contract Contract Unrealized
Type Contracts Amount Position Expiration Gain
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
S&P 500 30 $9,997 Long 12/20/96 $1,377
- -------------------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
#Securities pledged to cover margin requirements for open futures contracts.
See accompanying notes to financial statements.
21
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
FOCUSED GROWTH PORTFOLIO
COMMON STOCKS--98.3%
BANKING--5.2%
125,800 First USA, Inc. $ 4,136
26,500 State Street Bank Boston Corp. 1,792
-------
5,928
CHEMICALS AND ALLIED PRODUCTS--10.4%
34,400 American Home Products Corp. 2,210
25,000 Lilly (Eli) & Co. 1,913
44,900 Merck & Co., Inc. 3,727
81,400 Praxair, Inc. 3,958
-------
11,808
COMMUNICATIONS--3.0%
43,999 Lucent Technologies, Inc. 2,255
15,400 Reuters Holding PLC ADR 1,118
-------
3,373
COMPUTERS AND OFFICE MACHINES--3.6%
30,200 Cisco Systems, Inc.* 2,050
37,000 Parametric Technology Corp.* 2,012
-------
4,062
CREDIT INSTITUTIONS--4.0%
41,300 Associates First Capital Corp. 1,998
62,500 Green Tree Financial Corp. 2,617
-------
4,615
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--
18.7%
63,700 General Electric Co. 6,625
20,500 Intel Corp. 2,601
43,000 Linear Technology Corp. 2,026
64,900 Motorola, Inc. 3,594
110,000 Solectron Corp.* 6,435
-------
21,281
FOOD AND BEVERAGES--5.4%
43,000 Philip Morris Cos., Inc. 4,434
50,100 Starbucks Corp.* 1,735
-------
6,169
GLASS, CLAY AND STONE PRODUCTS--0.8%
33,000 Newell Co. 1,023
HEALTH SERVICES--4.2%
89,350 Health Management Associates, Inc.,
Class A* 1,977
53,600 Johnson & Johnson Co. 2,847
-------
4,824
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------------
<C> <S> <C> <C>
INDUSTRIAL INSTRUMENTS--4.0%
45,400 Hewlett-Packard Co. $ 2,446
41,800 Raytheon Co. 2,137
--------
4,583
INSURANCE SERVICES--4.1%
16,500 American International Group, Inc. 1,897
28,000 MBIA, Inc. 2,831
--------
4,728
MEDICAL PRODUCTS AND EQUIPMENT--2.1%
36,000 Medtronic, Inc. 2,380
MORTGAGE AGENCIES--2.0%
55,000 Federal National Mortgage Association 2,269
PROFESSIONAL SERVICES--13.4%
20,600 Cintas Corp. 1,251
34,100 Computer Associates International, Inc. 2,242
25,700 Computer Sciences Corp.* 2,021
135,150 CUC International, Inc.* 3,565
88,002 First Data Corp. 3,509
127,000 Olsten Corp. 1,730
15,500 Sun Microsystems, Inc.* 903
--------
15,221
RECREATION AND LEISURE SERVICES--10.3%
35,000 Callaway Golf Co. 1,063
120,500 Carnival Corp., Class A 3,811
104,100 Circus Circus Enterprises, Inc.* 3,800
41,600 Disney (Walt) Co. 3,068
--------
11,742
RETAIL--7.1%
65,000 Kohls Corp.* 2,592
18,300 Home Depot, Inc. 954
66,200 PETsMART, Inc.* 1,688
45,000 Staples, Inc.* 889
35,300 Tommy Hilfiger Corp.* 1,906
--------
8,029
- -------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $92,269) $112,035
- -------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
22
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Description Value
- -------------------------------------------------------------
<C> <S> <C> <C>
SHORT-TERM INVESTMENT--1.8%
Berliner Handels und Frankfurter,
Grand Cayman
$2,008 5.688% Due 12/02/96 $ 2,008
- -------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $2,008) $ 2,008
- -------------------------------------------------------------
TOTAL INVESTMENTS--100.1%
(Cost $94,277) $114,043
- -------------------------------------------------------------
Liabilities, less other assets--(0.1)% (144)
- -------------------------------------------------------------
NET ASSETS--100.0% $113,899
- -------------------------------------------------------------
- -------------------------------------------------------------
</TABLE>
*Non-income producing security.
See accompanying notes to financial statements.
23
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------------------
INTERNATIONAL GROWTH PORTFOLIO
<C> <S> <C>
COMMON STOCKS--89.0%
AUSTRALIA--2.8%
90,000 Broken Hill Proprietary Co. $ 1,321
270,000 News Corp. Ltd. 1,438
165,000 WMC Ltd. 1,048
--------
3,807
CZECH REPUBLIC--0.6%
90,000 Czechoslovakia & Slovak Investment Corp.* 756
12,000 Czechoslovakia & Slovak Investment Corp. Warrants * 12
--------
768
FINLAND--0.7%
16,000 Nokia Corp. ADR 898
FRANCE--7.3%
11,000 Cie Generale des Eaux 1,356
17,000 Elf Aquitaine S.A. 1,485
25,000 Havas S.A. 1,771
55,000 Lagardere S.C.A. 1,664
12,000 Lyonnaise Des Eaux S.A. 1,142
15,000 PSA Peugeot 1,844
27,000 Rhone-Poulenc, Class A 875
--------
10,137
GERMANY--6.0%
1,800 Bayerische Motoren Werke A.G. 1,168
45,000 Commerzbank A.G. 1,107
25,000 Hoechst A.G. 1,095
3,000 Mannesmann A.G. 1,252
33,000 VEBA A.G. 1,931
4,500 Volkswagen A.G. 1,805
--------
8,358
HONG KONG--3.3%
125,000 Citic Pacific Ltd. 652
80,000 Guoco Group Ltd. 437
600,000 Hong Kong Telecommunications Ltd. 1,040
140,000 Hutchison Whampoa Ltd. 1,082
135,000 Swire Pacific Ltd. 1,279
--------
4,490
ITALY--2.9%
1,000,000 Credito Italiano 1,096
225,000 Ente Nazionale Idrocarburi S.p.A. 1,185
675,000 Pirelli S.p.A. 1,234
125,000 Stet Societa' Finanziaria Telefonica S.p.A. 531
--------
4,046
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
<C> <S> <C>
JAPAN--27.2%
110,000 Asahi Bank Ltd. $ 1,073
5,000 Bellsystem 24, Inc. 620
45,000 CMK Corp. 637
40,000 CSK Corp. 1,128
60,000 Eisai Co. Ltd. 1,181
18,000 FamilyMart 712
14,000 Forval Corp. 578
280,000 Hitachi Zosen Corp. 1,297
30,000 Honda Motor Co., Ltd. 886
65,000 Industrial Bank of Japan 1,285
300,000 Ishikawajima-Harima Heavy Industries Co. 1,397
300,000 Isuzu Motors Ltd. 1,500
63,000 Japan Radio Co. 769
50,000 Laox 769
150,000 Long-Term Credit Bank of Japan 949
14,000 Mars Engineering Corp. 535
280,000 Marubeni Corp. 1,267
22,000 Matsumotokiyoshi 746
55,000 Matsushita Electric Industrial Co. Ltd. 952
30,000 Matsushita-Kotobuki Electron 770
120,000 Minebea Co. Ltd. 1,025
110,000 Mitsubishi Estate Co. Ltd. 1,392
13,000 Nichii Gakkan Co. 617
50,000 Nikko Securities Co. Ltd. 466
23,000 Nintendo Corp. Ltd 1,628
165 Nippon Telegraph & Telephone Corp. 1,177
575,000 NKK Corp.* 1,415
25,000 Nomura Securities Co. Ltd. 422
200,000 NSK Ltd. 1,278
24,000 Orix Corp. 915
120,000 Ricoh Co. Ltd. 1,286
30,000 Sagami Chain Co. Ltd. 535
20,000 Sony Corp. 1,281
80,000 Sumitomo Electric Industries 1,125
60,000 Takeda Chemical Industries 1,176
230,000 Teijin Ltd. 1,097
50,000 Tokyo Style 738
35,000 Toyota Motor Corp. 957
--------
37,581
MALAYSIA--2.4%
120,000 AMMB Holdings Berhad 954
200,500 Genting Berhad 1,428
100,000 Malayan Banking Berhad 989
--------
3,371
</TABLE>
See accompanying notes to financial statements.
24
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------------------
<C> <S> <C>
NETHERLANDS--4.5%
23,000 ABN AMRO Holding N.V. $ 1,490
17,000 Akzo Nobel 2,256
35,000 ING Groep N.V. 1,226
20,000 Koninklijke Ahold N.V. 1,251
--------
6,223
NORWAY--0.8%
70,000 Saga Petroleum A.S.A. 1,135
SINGAPORE--1.4%
67,000 Development Bank of Singapore Ltd. 865
140,000 Keppel Corp. Ltd. 1,088
--------
1,953
SOUTH AFRICA--0.5%
28,000 South African Breweries Ltd. 706
SOUTH KOREA--0.5%
80,000 Cho Hung Bank Co. Ltd. General Depository Receipt 652
368 Daewoo Corp. 3
--------
655
SPAIN--3.4%
23,000 Banco Santander S.A. 1,247
30,000 Empresa Nacional de Electricidad S.A. 2,027
40,000 Repsol S.A. ADR 1,465
--------
4,739
SWEDEN--1.0%
30,000 Astra AB 1,439
SWITZERLAND--4.9%
1,200 Ciba-Geigy A.G. 1,486
19,000 CS Holding A.G. 2,024
9,000 SMH A.G. 1,306
7,000 Zurich Versicherungsgesellschaft 1,989
--------
6,805
TAIWAN--0.8%
433,500 Far Eastern Department Stores Ltd. 577
625,000 Pacific Construction* 527
--------
1,104
UNITED KINGDOM--18.0%
115,000 Barclays PLC 1,978
200,000 Cable & Wireless PLC 1,600
135,000 Commercial Union PLC 1,497
350,000 General Electric Co. PLC 2,191
30,000 Glaxo Wellcome PLC ADR 986
120,000 Imperial Chemical Industries PLC 1,556
</TABLE>
<TABLE>
<CAPTION>
Shares/
Principal
Amount Description Value
- ------------------------------------------------------------
<C> <S> <C>
175,000 Kingfisher PLC $ 1,908
175,000 Marks & Spencer PLC 1,492
600,000 National Grid Group PLC 1,976
175,000 National Westminster Bank PLC 2,024
125,000 Pearson PLC 1,544
200,000 Rank Group PLC 1,462
70,000 RTZ Corp. PLC 1,177
425,000 Tomkins PLC 1,775
38,000 Vodafone Group PLC ADR 1,644
--------
24,810
- ------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $118,511) $123,025
- ------------------------------------------------------------
PREFERRED STOCK--1.0%
GERMANY--1.0%
29,000 Henkel KGaA-Vorzug $ 1,445
- ------------------------------------------------------------
TOTAL PREFERRED STOCK
(Cost $1,223) $ 1,445
- ------------------------------------------------------------
OTHER--4.2%
JAPAN--4.2%
2,200,000 Nikkei 300 Stock Index Fund* $ 5,761
- ------------------------------------------------------------
TOTAL OTHER
(Cost $6,274) $ 5,761
- ------------------------------------------------------------
SHORT-TERM INVESTMENT--6.7%
Berliner Handels und Frankfurter,
Grand Cayman
$ 9,249 5.688% Due 12/02/96 $ 9,249
- ------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $9,249) $ 9,249
- ------------------------------------------------------------
TOTAL INVESTMENTS--100.9%
(Cost $135,257) $139,480
- ------------------------------------------------------------
Liabilities, less other assets--(0.9)% (1,204)
- ------------------------------------------------------------
NET ASSETS--100.0% $138,276
- ------------------------------------------------------------
- ------------------------------------------------------------
</TABLE>
*Non-income producing security.
See accompanying notes to financial statements.
25
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
INTERNATIONAL GROWTH PORTFOLIO--CONTINUED
At November 30, 1996 the Portfolio's investments, excluding the short-term
investment, were diversified as follows:
<TABLE>
<CAPTION>
INDUSTRY/SECTOR
- --------------------------
<S> <C>
Auto 5.1%
Basic Industry 19.5
Capital Goods 8.1
Consumer Goods 14.1
Financial Services 19.5
Medical 5.3
Real Estate 1.5
Retail 6.1
Steel 1.0
Technology 5.0
Other 14.8
- --------------------------
TOTAL 100.0%
- --------------------------
</TABLE>
See accompanying notes to financial statements.
26
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO
<C> <S> <C>
COMMON STOCKS--93.5%
AGRICULTURE--0.5%
2,600 Barefoot, Inc. $ 33
2,700 DeKalb Genetics Corp. 101
2,999 Delta & Pine Land Co. 96
5,300 Dimon, Inc. 110
8,100 Longview Fibre Co. 148
2,400 Northland Cranberries, Inc. 53
1,500 Tejon Ranch Co. 24
--------
565
APPAREL--0.5%
1,600 Donnkenny, Inc.* 6
800 Fossil, Inc.* 10
1,500 Gadzooks, Inc.* 43
4,200 Genesco, Inc.* 43
4,300 Hartmarx Corp.* 23
3,250 Kellwood Co. 58
1,100 Kenneth Cole Productions, Inc.* 17
1,100 Marisa Christina, Inc.* 8
5,600 Nautica Enterprises, Inc.* 179
1,900 Oshkosh B' Gosh, Inc. 28
2,300 St. John Knits, Inc. 99
1,900 Starter Corp.* 12
1,650 Unitog Co. 45
1,500 Vans, Inc.* 23
--------
594
BANKING--7.9%
2,000 Aames Financial Corp. 86
1,880 Albank Financial Corp. 62
1,900 Amcore Financial, Inc. 42
1,900 American Federal Bank 36
1,000 Anchor Bancorp, Inc. 35
3,075 Associated Banc-Corp. 135
2,900 BancorpSouth, Inc. 76
1,302 Bank of Granite Corp. 42
1,200 BankAtlantic Bancorp, Inc. 15
2,264 Bankers Corp. 44
1,200 Banknorth Group, Inc. 46
1,100 Bay View Capital Corp. 45
990 Brenton Banks, Inc. 25
7,180 Cal Fed Bancorp* 174
1,400 CBT Corp. 33
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------
<C> <S> <C>
2,300 CCB Financial Corp. $ 153
3,600 Centura Banks, Inc. 164
1,787 Chittenden Corp. 45
900 CitFed Bancorp, Inc. 42
2,100 Citizens Bancorp 121
1,700 Citizens Banking Corp. 53
5,900 City National Corp. 122
2,978 CNB Bancshares, Inc. 107
2,900 Coast Savings Financial, Inc.* 103
1,400 Cole Taylor Financial Group, Inc. 40
3,100 Collective Bancorp, Inc. 110
1,700 Colonial BancGroup, Inc. 68
1,768 Commerce Bancorp, Inc. 51
2,300 Commercial Federal Corp. 111
2,654 Commonwealth Bancorp 38
1,800 Community First Bankshares, Inc. 49
800 CPB, Inc. 24
3,880 Cullen/Frost Bankers, Inc. 138
1,685 Downey Financial Corp. 48
1,080 F & M Bancorp 33
3,055 F & M National Corp. 60
1,607 Fidelity National Corp. 27
1,370 Financial Trust Corp.* 39
1,700 First Citizens Bancshares, Inc. 136
1,900 First Commercial Bancshares, Inc. 47
3,437 First Commercial Corp. 125
3,500 First Commonwealth Financial Corp. 64
1,700 First Federal Financial Corp.* 41
2,700 First Federal Savings Bank of Colorado 48
2,152 First Financial Bancorp 66
925 First Financial Bancshares, Inc. 33
4,700 First Financial Corp. 140
3,700 First Hawaiian, Inc. 120
1,039 First Indiana Corp. 26
4,054 First Michigan Bank Corp. 116
1,900 First Midwest Bancorp, Inc. 68
1,900 First Savings Bank of Washington Bancorp, Inc. 35
1,050 First United Bancshares, Inc. 29
1,388 First Western Bancorp, Inc. 37
1,800 Firstbank of Illinois Co. 61
2,025 FirstBank Puerto Rico 51
4,800 Firstmerit Corp. 167
1,559 FNB Corp. 36
</TABLE>
See accompanying notes to financial statements.
27
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
BANKING--CONTINUED
<C> <S> <C>
1,750 Fort Wayne National Corp. $ 66
5,159 Fulton Financial Corp. 107
6,876 Glendale Federal Bank FSB* 144
2,300 Great Financial Corp. 69
1,400 Hancock Holding Co. 59
1,113 Harleysville National Corp. 28
500 Harris Savings Bank 9
900 Heritage Financial Services, Inc. 19
3,897 Home Financial Corp. 67
1,000 Homeland Bankshares Corp. 41
2,529 Hubco, Inc. 62
2,556 Imperial Bancorp* 58
3,464 Imperial Credit Industries, Inc.* 74
69 Investors Financial Services Corp.,
Class A* 2
500 Irwin Financial Corp. 24
2,300 Jefferson Bancshares, Inc. 67
5,849 Keystone Financial, Inc. 158
2,100 Klamath First Bancorp 31
900 Liberty Bancorp, Inc. 37
3,900 Long Island Bancorp, Inc. 125
2,200 Magna Bancorp, Inc. 38
4,400 Magna Group, Inc. 134
2,250 Mark Twain Bancshares, Inc. 112
3,259 Mid-Am, Inc. 58
2,600 ML Bancorp, Inc. 38
600 National Bancorp of Alaska, Inc. 42
1,638 National City Bancshares, Inc. 48
3,950 National Commerce Bancorp 144
1,126 National Penn Bancshares, Inc. 29
1,651 New York Bancorp, Inc. 56
3,900 North Fork Bancorp, Inc. 133
729 North Side Savings Bank 38
3,900 Old National Bancorp 143
1,000 Omega Financial Corp. 34
2,195 ONBANCorp, Inc. 85
3,225 One Valley Bancorp of West Virginia, Inc. 121
600 Park National Corp. 30
2,000 Peoples Bank of Bridgeport, CT 56
4,000 Peoples Heritage Financial Group, Inc. 112
1,300 Pikeville National Corp. 28
1,100 Pinnacle Banc Group, Inc. 11
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
1,900 Provident Bancorp, Inc. $ 99
1,328 Provident Bankshares Corp. 51
1,200 Queen City Bancorp 56
1,900 RCSB Financial, Inc. 57
2,792 Republic Bancorp, Inc. 33
1,797 Resource Bancshares Mortgage Group, Inc.* 27
3,100 Riggs National Corp.* 54
5,414 Roosevelt Financial Group, Inc. 104
1,800 S & T Bancorp, Inc. 54
1,500 Security Capital Corp. 107
1,600 Silicon Valley Bancshares* 48
7,640 Sovereign Bancorp, Inc. 100
2,971 St. Paul Bancorp, Inc. 84
2,900 Standard Financial, Inc.* 57
700 Student Loan Corp. 27
700 Sumitomo Bank of California 17
2,075 Susquehanna Bancshares, Inc. 74
1,500 T.R. Financial Corp.* 44
3,100 Trust Co. of Jersey City 46
3,183 Trustco Bank Corp. 68
4,300 Trustmark Corp. 110
2,698 UMB Financial Corp. 106
2,100 United Bankshares, Inc. 67
3,800 United Carolina Bancshares Corp. 152
900 USBancorp, Inc. 37
2,800 UST Corp. 52
6,700 Washington Federal, Inc. 178
1,300 Wesbanco, Inc. 39
1,500 Westamerica Bancorp 87
1,718 Westcorp, Inc. 41
2,375 Whitney Holding Corp. 84
--------
8,985
BITUMINOUS COAL AND LIGNITE SURFACE MINING--0.1%
1,300 Addington Resources, Inc.* 39
1,200 Ashland Coal, Inc. 31
1,200 Nacco Industries, Inc. 57
--------
127
BROKERAGE AND FINANCIAL SERVICES--1.6%
2,200 Alex Brown, Inc. 132
2,200 Allied Capital Commercial Corp. 49
400 American Financial Enterprises, Inc. 11
2,300 Amresco, Inc. 49
2,900 Bankers Life Holding Corp. 71
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
867 BOK Financial Corp.* $ 23
700 CapMAC Holdings, Inc. 23
1,600 Carolina First Corp. 31
800 Cityscape Financial Corp.* 21
1,700 CMAC Investment Corp. 130
3,800 Crawford & Co., Class B 78
4,800 Crimmi Mae, Inc. 59
1,000 Cybercash, Inc.* 25
1,700 Financial Federal Corp.* 26
4,000 Insignia Financial Group, Inc., Class A* 91
1,900 Inter-Regional Financial Group, Inc. 67
600 Investment Technology Group, Inc.* 11
1,700 Jefferies Group, Inc. 61
2,100 Legg Mason, Inc. 82
1,540 McDonald & Co. Investments, Inc. 47
2,625 Morgan Keegan, Inc. 46
5,100 Olympic Financial Ltd. 71
3,600 Penncorp Financial Group, Inc. 124
7,550 Phoenix Duff & Phelps Corp. 53
3,300 Pioneer Group, Inc. 80
1,900 Piper Jaffray Cos., Inc. 28
1,857 Quick & Reilly Group, Inc. 53
600 RAC Financial Group, Inc.* 32
2,400 Raymond James Financial, Inc. 68
2,100 SEI Corp. 47
1,500 U.S. Trust Corp. 111
300 Value Line, Inc. 12
770 WFS Financial, Inc.* 18
500 Winthrop Resource Corp.* 14
--------
1,844
CHEMICALS AND ALLIED PRODUCTS--3.6%
2,600 Advanced Polymer Systems, Inc.* 20
4,300 Alliance Pharmaceutical Corp.* 54
2,300 Alpharma, Inc., Class A* 29
3,100 Amylin Pharmaceuticals, Inc.* 37
1,000 Aphton Corp.* 18
6,000 Arcadian Corp. 152
1,100 Bush Boake Allen, Inc.* 28
6,300 Calgon Carbon Corp. 73
2,100 Capstone Pharmacy Services, Inc.* 23
3,900 Carter-Wallace, Inc. 61
2,500 Cellpro, Inc.* 32
3,700 Cephalone, Inc.* 64
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------
<C> <S> <C>
1,500 Chemed Corp. $ 56
2,800 Church & Dwight, Inc. 63
1,500 Collagen Corp. 30
1,274 Copley Pharmaceutical, Inc.* 17
10,839 Crompton & Knowles Corp. 199
2,800 Cygnus, Inc.* 35
3,800 Dexter Corp. 124
1,700 Diagnostic Products Corp. 45
5,000 Dura Pharmaceuticals, Inc.* 185
2,200 Epitope, Inc.* 27
1,500 Ergo Science Corp.* 18
3,200 First Mississippi Corp. 92
2,200 Fuller (H.B.) Co. 104
2,100 GelTex Pharmaceuticals, Inc.* 38
5,100 Genelabs Technologies, Inc.* 20
3,600 Geon Co. 68
2,100 Herbalife International, Inc. 54
4,100 Hybridon, Inc. 33
5,101 ICN Pharmaceuticals, Inc. 99
5,200 ICOS Corp.* 40
3,200 Immulogic Pharmaceutical Corp.* 27
3,900 Isis Pharmaceuticals, Inc.* 64
2,500 Jones Medical Industries, Inc. 100
1,400 Kronos, Inc.* 40
500 Landec Corp.* 4
4,800 Lawter International, Inc. 58
1,200 Learonal, Inc. 28
1,771 Life Technologies, Inc. 39
2,975 Lilly Industrial, Inc. 55
900 MacDermid, Inc. 31
2,900 Matrix Pharmaceutical, Inc.* 25
1,100 McWhorter Technologies, Inc.* 22
2,100 Medimmune, Inc.* 32
3,500 Mineral Technologies, Inc. 137
3,300 Mississippi Chemical Corp. 84
2,700 NBTY, Inc.* 44
600 NCH Corp. 34
4,200 NL Industries, Inc.* 40
2,600 Noven Pharmaceuticals, Inc.* 35
2,000 OM Group, Inc. 83
1,000 PDT, Inc.* 31
1,000 Petrolite Corp. 44
1,800 Pharmacopeia, Inc.* 33
3,000 Regeneron Pharmaceuticals, Inc.* 57
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
CHEMICALS AND ALLIED PRODUCTS--CONTINUED
3,300 Rexene Corp.* $ 44
2,000 Roberts Pharmaceutical Corp.* 22
3,400 Ross Cosmetics Distribution Centers, Inc. 11
5,800 Schulman (A.), Inc. 138
3,000 Scotts Co.* 54
4,200 Sepracor, Inc.* 70
4,500 Sequus Pharmaceuticals, Inc.* 65
3,100 Somatogen, Inc.* 35
1,600 Stepan Co. 30
700 Systemix, Inc.* 10
1,500 Techne Corp.* 36
1,935 Tetra Tech, Inc.* 36
2,200 Tetra Technologies, Inc.* 56
1,000 USA Detergents, Inc.* 38
1,800 Valhi, Inc. 11
2,400 Valspar Corp. 138
2,800 Vertex Pharmaceuticals, Inc.* 90
1,065 WD-40 Co. 55
4,700 Wellman, Inc. 76
--------
4,100
COMMUNICATIONS--3.4%
1,800 ACC Corp.* 54
3,400 Ackerley Communications, Inc. 44
2,700 Adelphia Communications Corp.* 18
5,800 Aliant Communications, Inc. 93
2,700 American Mobile Satellite Corp.* 34
600 American Paging, Inc.* 3
2,300 American Radio Systems, Inc.* 63
1,700 American Telecasting, Inc.* 13
900 Ancor Communications, Inc.* 14
2,800 ANTEC Corp.* 27
2,100 Applied Digital Access, Inc.* 15
1,600 Applied Innovation, Inc.* 11
1,700 Argyle Television, Inc.* 44
2,800 ATC Communications Group, Inc.* 43
900 Atlantic Tele-Network, Inc.* 17
1,200 BET Holdings, Inc.* 33
2,600 Black Box Corp.* 107
2,321 Block Drug Co., Inc. 104
1,300 Brightpoint, Inc.* 47
1,500 Brite Voice Systems, Inc.* 22
1,900 Broadband Technologies, Inc.* 37
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------------
<C> <S> <C>
2,200 C-TEC Corp.* $ 54
2,450 Cable Design Technologies Corp.* 72
5,470 CAI Wireless Systems, Inc.* 14
1,600 Cellstar Corp.* 19
1,800 Cellular Communications International, Inc.* 47
2,980 Cellular Technical Services, Inc.* 49
900 Cellularvision USA, Inc.* 6
5,500 Century Communications Corp., Class A* 36
2,100 CFW Communications Co. 47
2,000 CIDCO, Inc.* 39
2,200 Commnet Cellular, Inc.* 62
1,000 Data Transmission Network Corp.* 22
800 Davox Corp.* 30
1,100 Desktop Data, Inc.* 25
1,000 Digital Systems International, Inc.* 15
3,400 DSP Communications, Inc.* 132
1,300 EIS International, Inc.* 11
1,200 Emmis Broadcasting Corp., Class A* 41
3,350 Evergreen Media Corp., Class A* 83
2,500 Executive Telecard Ltd.* 18
8,000 Executone Information Systems, Inc.* 20
1,100 EZ Communications, Inc., Class A* 38
1,700 FastComm Communications Corp.* 14
4,100 General Communications, Inc.* 29
1,700 Harmonic Lightwaves, Inc.* 34
2,100 Heartland Wireless Communications, Inc.* 25
400 Heftel Broadcasting Corp., Class A* 13
5,100 Heritage Media Corp.* 71
3,400 HighwayMaster Communications, Inc.* 71
900 Intercel, Inc.* 14
2,000 Intermedia Communications, Inc.* 59
4,733 International Cabletel, Inc.* 118
600 IPC Information Systems, Inc.* 10
1,100 Jacor Communications, Inc.* 26
3,278 Jones Intercable, Inc., Class A* 36
2,100 Level One Communications, Inc.* 72
2,000 Lin Television Corp* 80
1,200 Mastec, Inc.* 57
1,900 Media General, Inc. 60
3,903 Metrocall, Inc.* 21
5,057 Metromedia International Group, Inc.* 61
2,700 MIDCOM Communications, Inc.* 31
8,500 Mobile Telecommunications Technologies Corp.* 99
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
7,400 MobileMedia Corp.* $ 9
1,000 Ortel Corp.* 22
2,500 P-COM, Inc.* 79
1,100 Palmer Wireless, Inc.* 16
200 Paxson Communications Corp.* 1
1,800 People's Choice TV Corp.* 11
1,600 Periphonics Corp.* 32
1,500 Plantronics, Inc.* 61
1,500 ProNet, Inc.* 7
1,850 Renaissance Communications Corp.* 66
1,200 SAGA Communications, Inc.* 24
1,000 SFX Broadcasting, Inc., Class A* 31
1,600 Silver King Communications, Inc.* 40
2,500 TCA Cable TV, Inc. 73
1,300 Tel-Save Holdings, Inc.* 28
1,800 Telco Systems, Inc.* 32
1,000 Teltrend, Inc.* 28
1,250 Transaction Network Services, Inc.* 16
2,000 Trescom International, Inc.* 21
2,900 True North Communications, Inc. 65
2,500 U.S. Long Distance Corp.* 22
5,100 United International Holdings, Inc.,
Class A* 69
600 United Television, Inc. 55
1,800 United Video Satellite Group, Inc.* 27
4,500 Valuevision International, Inc.* 25
4,600 Vanguard Cellular Systems, Inc.* 78
2,100 VideoLan Technologies, Inc.* 4
4,600 Westwood One, Inc.* 76
4,000 WinStar Communications, Inc.* 83
2,000 Wireless One Corp.* 19
1,500 Young Broadcasting Corp.* 46
-------
3,890
COMPUTERS AND OFFICE MACHINES--3.7%
1,300 ACT Networks, Inc.* 36
2,800 Actel Corp.* 62
3,900 Alliance Semiconductor Corp.* 31
1,400 Applix, Inc.* 28
4,700 AST Research, Inc.* 21
3,800 Auspex Systems, Inc.* 45
3,300 Avid Technology, Inc.* 42
3,166 BancTec, Inc.* 63
900 Boca Research, Inc.* 11
5,400 Borland International, Inc.* 44
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
1,400 Brooktrout Technology, Inc.* $ 45
1,700 BT Office Products International, Inc.* 16
2,300 Caere Corp.* 20
1,796 Cambrex Corp. 57
1,800 Centennial Technologies, Inc.* 64
3,200 Chips & Technologies, Inc.* 67
2,100 Chronimed, Inc.* 30
4,000 Computer Network Technology Corp.* 24
3,300 Comverse Technology, Inc.* 112
2,200 Control Data Systems, Inc.* 44
6,900 Copytele, Inc.* 41
5,500 Data General Corp.* 80
900 Day Runner, Inc.* 22
1,300 Dialogic Corp.* 40
4,900 Diamond Multimedia Systems, Inc.* 63
2,000 Digi International, Inc.* 26
2,900 Dynatech Corp.* 136
1,100 Encad, Inc.* 41
2,000 EPIC Design Technology, Inc.* 50
1,600 Evans & Sutherland Computer Corp.* 41
3,400 Exabyte Corp.* 49
1,500 Excalibur Technologies Corp.* 24
2,300 Filenet Corp.* 83
4,900 FTP Software, Inc.* 39
1,100 General Binding Corp. 30
1,500 HMT Technology Corp.* 26
2,900 Hyperion Software Corp.* 63
4,300 Information Resources, Inc.* 49
5,300 Intelligent Electronics, Inc. 40
6,300 Intergraph Corp.* 57
1,800 Interpool, Inc.* 43
1,600 Itron, Inc.* 31
1,884 Logicon, Inc. 77
2,700 Mercury Interactive Corp.* 27
2,700 Microcom, Inc.* 31
1,400 Micros Systems, Inc.* 41
1,400 MicroTouch Systems, Inc.* 35
3,900 Miller (Herman), Inc. 183
3,000 Mylex Corp.* 37
2,200 National Computer Systems, Inc. 52
5,300 Netmanage, Inc.* 44
3,700 Nu-Kote Holding, Inc.* 39
1,500 Optical Data Systems, Inc.* 20
5,400 PHH Corp. 242
</TABLE>
See accompanying notes to financial statements.
31
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
COMPUTERS AND OFFICE MACHINES--CONTINUED
2,400 Phoenix Technologies Ltd.* $ 41
1,400 Planar Systems, Inc.* 14
7,998 Platinum Technology, Inc.* 96
1,500 Proxim, Inc.* 28
800 Radisys, Inc.* 37
7,400 S3, Inc.* 126
2,700 Sandisk Corp.* 37
3,400 Santa Cruz Operation, Inc.* 22
4,700 Sequent Computer Systems, Inc.* 79
3,300 Silicon Storage Technology, Inc.* 27
2,200 SMART Modular Technologies, Inc.* 50
2,300 Standard Microsystems Corp.* 25
500 Storage Computer Corp.* 6
3,000 StorMedia, Inc.* 38
3,800 Stratus Computer, Inc.* 98
2,000 SubMicron Systems, Inc.* 9
2,050 Sylvan Learning Systems, Inc.* 54
2,700 Synetic, Inc.* 125
1,200 3D Systems Corp.* 12
5,400 Tech Data Corp.* 162
2,100 Trident Microsystems, Inc.* 45
2,400 Tseng Laboratories, Inc.* 16
1,200 USDATA Corp., Inc* 8
1,300 Wall Data, Inc.* 19
5,400 Wang Labs, Inc.* 114
2,300 Wonderware Corp.* 22
500 Xpedite Systems, Inc.* 9
2,800 Zebra Technologies Corp.* 72
--------
4,155
CREDIT INSTITUTIONS--0.4%
2,200 Astoria Financial Corp. 83
3,200 Credit Acceptance Corp.* 83
902 First Financial Corp. 31
1,700 Jayhawk Acceptance Corp.* 21
1,500 JSB Financial, Inc. 54
2,200 National Auto Credit, Inc.* 23
2,400 North American Mortgage Co. 55
2,600 Ryland Group, Inc. 36
3,600 World Acceptance Corp.* 23
--------
409
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
ELECTRICAL SERVICES--2.6%
600 Advanced Lighting Technologies, Inc.* $ 13
8,200 Atlantic Energy, Inc. 145
2,200 Black Hills Corp. 57
2,800 Central Hudson Gas & Electric Corp. 85
3,500 Central Louisiana Electric Co., Inc. 99
5,000 Central Maine Power Co. 59
3,200 Checkfree Corp.* 54
2,100 CILCORP, Inc. 77
12,095 Citizens Utilities Co., Series B* 136
3,400 Commonwealth Energy Systems Cos. 82
3,200 Eastern Utilities Association 54
9,400 El Paso Electric Co.* 56
3,100 Electroglas, Inc.* 55
2,800 Empire District Electric Co. 53
1,900 Envoy Corp.* 71
4,600 IES Industries, Inc. 141
1,700 Interstate Power Co. 51
2,450 Madison Gas & Electric Co. 52
4,900 Minnesota Power & Light Co. 138
7,500 Nevada Power Co. 154
1,589 Northwestern Public Service Co. 55
2,200 Orange & Rockland Utilities, Inc. 79
1,700 Otter Tail Power Co. 55
3,600 PMT Services, Inc.* 77
5,800 Public Service Co. of New Mexico* 111
6,000 Rochester Gas & Electric Corp. 115
4,700 Sierra Pacific Resources 135
2,400 SIGCORP, Inc. 83
1,800 TNP Enterprises, Inc. 46
4,980 Tucson Electric Power Co.* 93
2,200 United Illuminating Co. 73
4,800 WPL Holdings, Inc. 135
3,800 WPS Resources Corp. 112
1,850 Yankee Energy System, Inc. 41
1,900 Zurn Industries, Inc. 54
--------
2,896
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--
5.7%
1,000 Advanced Energy Industries, Inc.* 7
2,500 Altron, Inc.* 47
5,100 Ametek, Inc. 108
4,300 Ampex Corp.* 44
800 ANADIGICS, Inc.* 30
6,200 Anixter International, Inc.* 104
</TABLE>
See accompanying notes to financial statements.
32
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
4,122 Applied Magnetics Corp.* $ 113
1,000 Associated Group, Inc.* 29
2,900 Augat, Inc. 82
2,275 Avant! Corp.* 67
3,120 Baldor Electric Co. 73
3,700 Belden, Inc. 126
1,000 Berg Electronics Corp.* 30
4,300 BMC Industries, Inc. 124
3,400 Boston Technology, Inc.* 67
2,500 Burr-Brown Corp.* 65
1,700 C-COR Electronics, Inc.* 25
1,700 C.P. Clare Corp.* 14
2,000 California Amplifier, Inc.* 16
2,800 California Microwave, Inc.* 42
1,000 Charter Power Systems, Inc. 27
750 Chicago Miniature Lamp, Inc.* 25
14,900 Chyron Corp.* 56
1,500 Coherent Communications Systems Corp.* 31
1,600 Cohu, Inc. 38
3,800 Computer Products, Inc.* 76
3,300 Credence Systems Corp.* 65
1,800 Cree Research, Inc.* 18
563 CTS Corp. 22
2,900 Cyrix Corp.* 55
4,200 Dallas Semiconductor Corp. 91
2,500 Digital Microwave Corp.* 60
1,600 DII Group* 40
1,500 Electro Scientific Industries, Inc.* 36
900 Eltron International, Inc.* 28
1,800 Energy Conversion Devices, Inc.* 27
2,900 ESS Technology, Inc.* 57
1,500 Esterline Technologies Corp.* 38
768 Franklin Electric Co., Inc.* 31
1,100 Galileo Corp.* 26
3,600 General DataComm Industries, Inc.* 40
1,200 General Scanning, Inc.* 12
2,800 Genus, Inc.* 19
4,500 Griffon Corp.* 48
1,400 HADCO Corp.* 65
2,310 Harman International Industries, Inc. 118
1,800 Holophane Corp.* 34
900 Hutchinson Technologies, Inc.* 47
11,100 Imatron, Inc.* 39
1,600 Imnet Systems, Inc.* 29
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C>
4,700 IMP, Inc.* $ 15
12,100 Integrated Device Technology, Inc.* 150
2,600 Integrated Silicon Solution, Inc.* 26
1,400 Inter-Tel, Inc.* 25
7,200 Interdigital Communications Corp.* 52
2,086 Intermagnetics General Corp.* 28
4,200 International Family Entertainment, Inc.* 65
2,700 Intervoice, Inc.* 34
1,500 ITI Technologies, Inc.* 19
2,900 Juno Lighting, Inc. 45
2,300 Kuhlman Corp.* 41
3,450 Lattice Semiconductor Corp.* 154
3,900 Lincoln Electric Co. 125
1,900 Littelfuse, Inc.* 83
3,800 Lojack Corp.* 36
1,200 LSI Industries, Inc. 14
6,100 LTX Corp.* 36
3,500 Magnetek, Inc.* 44
1,800 Mattson Technology, Inc.* 19
600 Merix Corp.* 10
4,950 Methode Electronics, Inc., Class A 95
5,400 Microchip Technology, Inc.* 258
2,100 MRV Communications, Inc.* 48
700 National Presto Industries, Inc. 26
4,100 NexGen, Inc. 57
2,840 Oak Industries, Inc.* 66
2,900 Palomar Medical Technologies, Inc.* 20
1,698 Park Electrochemical Corp.* 39
5,800 Pentair, Inc. 168
1,200 Perceptron, Inc.* 42
3,937 Pioneer Standard Electronics, Inc. 43
2,350 Pittway Corp. 127
3,875 PriCellular Corp.* 43
2,400 Quickturn Design Systems, Inc.* 41
4,700 Ramtron International Corp.* 35
1,698 Recoton Corp.* 25
1,700 Rival Co. 38
2,600 Robotic Vision Systems, Inc.* 34
2,700 Sammina Corp.* 118
1,100 SDL, Inc.* 25
1,150 Semitool, Inc.* 12
1,500 Sheldahl, Inc.* 29
4,300 Sierra Semiconductor Corp.* 62
4,700 Silicon Valley Group, Inc.* 100
</TABLE>
See accompanying notes to financial statements.
33
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
ELECTRONICS AND OTHER ELECTRICAL EQUIPMENT--CONTIN-
UED
1,700 Siliconix, Inc.* $ 37
700 Speedfam International, Inc.* 14
1,200 SPS Transaction Services, Inc.* 19
1,400 Standard Motor Products, Inc. 19
700 Stanford Telecommunications, Inc.* 20
1,200 Supertex, Inc.* 23
2,700 Symetricon, Inc. 51
2,600 3DO Co.* 17
1,200 Technitrol, Inc. 43
1,200 Tekelec* 16
4,800 Tencor Instruments* 128
500 ThermoSpectra Corp.* 7
1,800 Thomas Industries, Inc. 36
4,900 Top Source Technologies, Inc.* 17
2,000 TranSwitch Corp.* 12
1,300 Triquint Semiconductor, Inc.* 29
1,500 TSX Corp. 14
3,100 Ultratech Stepper, Inc.* 71
1,700 Uniphase Corp.* 101
1,800 Unitrode Corp.* 48
4,900 Vicor Corp.* 96
2,400 Vitesse Semiconductor Corp.* 115
7,200 VLSI Technology, Inc.* 166
2,700 Windmere Corp. 39
2,000 Wyle Electronics 72
3,200 Xicor, Inc.* 31
4,147 Zenith Electronics Corp.* 55
3,050 Zilog, Inc.* 68
700 Zygo Corp.* 28
800 Zytec Corp.* 9
--------
6,484
FOOD AND BEVERAGES--1.8%
4,900 Applebee's International, Inc. 143
6,700 Bob Evans Farms, Inc. 87
2,600 Boston Beer Co., Inc.* 30
5,300 Calgene, Inc.* 29
2,700 Canandaigua Wine Company, Inc.* 77
4,700 Chiquita Brands International, Inc. 62
1,000 Coca-Cola Bottling Co. 46
5,900 Coors (Adolph) Co., Class B 117
6,300 Dean Foods Co. 176
1,800 Dreyer's Grand Ice Cream, Inc. 48
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
1,600 Earthgrains Co. $ 83
5,800 Fleming Companies, Inc. 95
2,200 FoodBrands America, Inc.* 29
5,500 Host Marriott Services Corp.* 49
3,300 Hudson Foods, Inc. 60
1,400 IHOP Corp.* 34
2,300 International Dairy Queen, Inc.* 44
2,700 Lance, Inc. 48
2,300 Landry's Seafood Restaurants, Inc.* 55
1,000 Longhorn Steaks, Inc.* 20
3,700 Luby's Cafeterias, Inc. 81
400 Manhattan Bagel Co., Inc.* 3
2,100 Michael Foods, Inc. 24
1,400 Mondavi (Robert) Corp., Class A* 51
1,950 Papa Johns International, Inc.* 63
2,900 Pepsi-Cola Puerto Rico Bottling Co. 13
1,400 Pete's Brewing Co.* 9
900 Quality Dining, Inc.* 20
1,500 Rainforest Cafe, Inc.* 44
1,300 Redhook Ale Brewery, Inc.* 18
1,300 Riviana Foods, Inc. 23
2,500 Ruby Tuesday, Inc.* 40
8,200 Ryan's Family Steak Houses, Inc.* 57
1,950 Sbarro, Inc. 51
5,800 Shoney's, Inc.* 48
2,500 Smithfield Foods, Inc.* 81
3,920 Triarc Cos., Inc., Class A* 44
2,750 WLR Foods, Inc. 35
--------
2,037
FOOD AND MANUFACTURING--1.0%
1,500 Cheesecake Factory, Inc.* 30
2,000 Daka International, Inc.* 18
198 Farmer Bros. Co. 29
9,100 Flowers Industries, Inc., Class A 215
1,350 Performance Food Group Co.* 16
8,700 Premark International, Inc. 211
4,900 Ralcorp Holding, Inc.* 96
1,400 Riser Foods, Inc.* 43
1,200 Sanderson Farms, Inc. 19
3,200 Savannah Foods & Industries, Inc. 46
100 Seaboard Corp. 22
4,600 Smucker (J.M.) Co. 83
2,749 Tootsie Roll Industries, Inc. 105
700 TurboChef, Inc.* 6
</TABLE>
See accompanying notes to financial statements.
34
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
4,000 Universal Foods Corp. $ 148
--------
1,087
FURNITURE AND FIXTURES--0.6%
2,200 Bassett Furniture Industries, Inc. 50
1,500 Bush Industires, Inc. 27
1,800 CORT Business Services Corp.* 40
2,200 Ethan Allen Interiors, Inc.* 73
1,100 Falcon Building Products, Inc.* 14
7,700 Heilig-Meyers Co. 107
3,700 HON Industries, Inc. 115
2,900 Kimball International, Inc. 121
2,100 La-Z-Boy Chair Co. 63
2,200 Triangle Pacific Corp.* 48
--------
658
GENERAL BUILDING CONTRACTORS--0.9%
1,800 ABT Building Products Corp.* 43
3,000 AMCOL International Co. 42
2,100 AMRE, Inc.* 6
1,400 Blount, Inc. 52
11,600 Catellus Development Corp.* 116
4,500 Centex Corp. 162
1,200 Continental Homes Holding Corp. 25
3,000 Eagle Hardware & Garden, Inc.* 73
3,158 Horton (D.R.), Inc.* 33
6,100 Kaufman & Broad Home Corp. 79
1,100 NCI Building Systems, Inc.* 32
2,000 NVR, Inc.* 20
1,725 Palm Harbor Homes, Inc.* 46
3,000 Pulte Corp. 92
1,650 Southern Energy Homes, Inc.* 20
5,200 Standard Pacific Corp. 31
3,400 Toll Brothers, Inc.* 68
1,779 U.S. Home Corp.* 44
3,000 Webb (Del E.) Corp. 51
--------
1,035
GLASS, CLAY AND STONE PRODUCTS--0.5%
700 Ameron, Inc. 34
4,700 Ball Corp. 115
2,000 Centex Construction Products, Inc.* 32
1,200 Florida Rock Industries, Inc. 37
5,000 Gentex Corp.* 97
2,500 Medusa Corp. 87
1,290 Mikasa, Inc.* 14
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------
<C> <S> <C>
1,500 Photronics, Inc.* $ 47
800 Puerto Rican Cement Co. 23
2,700 Southdown, Inc.* 88
-------
574
HEALTH SERVICES--4.4%
1,900 Access Health Marketing, Inc.* 75
2,700 Alteon, Inc.* 20
1,200 American HomePatient, Inc.* 28
2,800 American Medical Response, Inc.* 84
1,300 Amisys Managed Care Systems* 19
3,300 Angeion Corp.* 11
2,100 Apogee, Inc. 93
1,000 Arbor Health Care Co.* 24
800 Barr Labs, Inc.* 20
1,500 Bio-Rad Labs, Inc.* 45
1,300 Carrington Laboratories, Inc.* 13
3,800 Cerner Corp.* 57
2,800 Coastal Physician Group, Inc.* 10
3,300 Cocensys, Inc.* 20
6,900 Community Psychiatric Centers* 62
1,700 Compdent Corp.* 47
3,400 COR Therapeutics, Inc.* 36
7,100 Coram Healthcare Corp.* 31
5,000 Creative BioMolecules, Inc.* 40
1,200 Cryolife, Inc.* 17
1,700 Curative Health Services, Inc.* 44
3,300 Cytel Corp.* 13
1,400 Emeritus Corp.* 19
3,123 Enzo Biochem, Inc.* 59
2,400 Equimed, Inc.* 10
4,000 Extended Stay America, Inc.* 83
2,100 Fuisz Technologies, Ltd.* 17
1,300 Fusion Systems Corp.* 25
1,200 Gelman Sciences, Inc.* 38
3,800 Genesis Health Ventures, Inc.* 106
4,400 Gensia, Inc.* 20
3,785 Grancare, Inc.* 67
2,000 Gulf South Medical Supply, Inc.* 58
3,600 Haemonetics Corp.* 63
2,200 Health Management Systems, Inc.* 33
2,121 Healthdyne Technologies, Inc.* 19
1,400 HealthPlan Services Corp.* 27
1,100 Henry Schien, Inc.* 45
8,092 Horizon Healthcare Corp.* 87
</TABLE>
See accompanying notes to financial statements.
35
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
HEALTH SERVICES--CONTINUED
2,900 Human Genome Sciences, Inc.* $ 108
2,000 I-STAT Corp.* 49
1,300 ICU Medical, Inc.* 11
1,900 IDEC Pharmaceuticals Corp.* 46
900 IDX Systems Corp.* 22
2,600 Immune Response Corp.* 21
3,600 Immunomedics, Inc.* 24
1,575 INBRAND Corp.* 38
1,100 Incyte Pharmaceuticals, Inc.* 42
1,800 Inhale Therapeutic Systems* 27
1,900 Inphynet Medical Management, Inc.* 34
4,400 Integra Lifesciences Corp.* 25
3,500 Integrated Health Services, Inc. 77
400 Intercardia, Inc.* 7
4,700 Invacare Corp. 127
2,100 KeraVision, Inc.* 30
2,800 Kinetic Concepts, Inc. 35
400 Labone, Inc. 6
13,200 Laboratory Corporation of America Holdings* 36
1,500 Landauer, Inc. 31
400 LCA-Vision, Inc.* 1
1,800 Lifecore Biomedical, Inc.* 28
3,458 Ligand Pharmaceuticals, Inc.* 42
2,200 Living Centers of America, Inc.* 56
4,600 Magellan Health Services, Inc.* 96
4,300 Mariner Health Group, Inc.* 32
2,100 Martek Biosciences Corp.* 37
5,700 Matria Healthcare, Inc.* 34
3,000 Maxicare Health Plans, Inc.* 62
1,600 MedCath, Inc.* 24
1,600 Meridian Diagnostics, Inc. 18
600 MiniMed, Inc.* 16
1,600 MMI Cos., Inc. 49
1,633 Morrison Health Care, Inc. 23
2,200 Multicare Cos., Inc.* 43
1,500 Myriad Genetics, Inc.* 38
4,900 NABI, Inc.* 45
1,200 National Surgery Centers, Inc.* 38
3,000 Neoprobe Corp.* 43
1,400 Neose Technologies, Inc.* 21
2,500 Neurex Corp.* 32
2,100 Neurogen Corp.* 39
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
4,300 Neuromedical Systems, Inc.* $ 58
2,100 Northfield Laboratories, Inc.* 28
10,300 NovaCare, Inc.* 88
3,200 OccuSystems, Inc.* 93
3,100 OIS Optical Imaging Systems, Inc.* 8
3,000 Oncogene Science, Inc.* 21
2,200 OrthoLogic Corp.* 13
2,000 Owen Healthcare, Inc.* 51
1,900 PathoGenesis Corp.* 48
1,300 Pediatrix Medical Group* 50
1,300 Perclose, Inc.* 22
10,500 Perrigo Co.* 97
1,800 PHP Healthcare Corp.* 41
6,000 Physician Corporation Of America* 64
1,200 Physicians Health Services, Inc.* 18
1,500 Prime Medical Services, Inc.* 17
2,900 Regency Health Services, Inc.* 30
3,900 Renal Treatment Centers, Inc.* 101
700 RES-CARE, Inc.* 11
1,700 Research Medical, Inc.* 35
2,500 Resound Corp.* 22
1,450 Rexall Sundown, Inc.* 37
600 RightCHOICE Managed Care, Inc.,
Class A* 5
3,900 RoTech Medical Corp.* 66
1,600 Rural/Metro Corp.* 56
1,300 Safeskin Corp.* 67
1,300 Serologicals Corp.* 44
3,300 Sofamor/Danek Group, Inc.* 93
3,700 Somatix Therapy Corp.* 13
6,280 Sun Healthcare Group, Inc.* 78
1,600 Target Therapeutics, Inc.* 56
3,100 TheraTx, Inc.* 32
1,400 Universal Health Realty Income Trust 27
4,600 Universal Health Services, Inc.* 130
3,300 Uromed Corp.* 30
2,300 Veterinary Centers of America, Inc.* 24
2,500 Vical, Inc.* 46
400 Vitalink Pharmacy Services, Inc.* 9
2,300 Vivus, Inc.* 79
4,600 XOMA Corp.* 18
3,800 Zila, Inc.* 28
--------
5,052
</TABLE>
See accompanying notes to financial statements.
36
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
HEAVY CONSTRUCTION--0.3%
420 Diana Corp.* $ 14
1,750 Granite Construction, Inc. 35
2,500 Greenfield Industries, Inc. 73
3,716 Instituform Technologies, Inc.* 29
4,200 Lennar Corp. 109
1,900 Lone Star Industries, Inc.* 70
1,591 Morrison Knudsen Corp.* 14
--------
344
INDUSTRIAL INSTRUMENTS--3.4%
3,300 Acuson Corp.* 75
2,800 ADAC Laboratories 62
2,300 Advanced Technology Laboratories, Inc.* 66
2,400 Alkermes, Inc.* 34
3,600 Allen Group, Inc. 80
1,300 Analogic Corp. 36
1,800 Arrow International, Inc.* 48
900 ArthroCare Corp. 9
2,600 ATS Medical, Inc.* 20
4,200 Ballard Medical Products 79
2,100 Barnett, Inc.* 52
1,200 Biomatrix, Inc.* 18
2,700 Buckeye Cellulose Corp.* 73
1,751 Chad Therapeutics, Inc.* 28
6,200 Cincinnati Milacron, Inc.* 129
1,800 Circon Corp.* 29
3,100 CNS, Inc. 44
5,200 Cognex Corp.* 103
1,700 Coherent, Inc.* 74
7,900 Coltec Industries, Inc.* 146
400 Conceptus, Inc.* 4
2,450 CONMED Corp.* 43
876 Cubic Corp. 19
700 Cytyc Corp.* 18
1,800 Daniel Industries, Inc. 25
2,400 Datascope Corp.* 44
2,000 DepoTech Corp.* 28
2,100 Dionex Corp.* 73
2,200 Endosonics Corp. 25
2,300 Etec Systems, Inc. 68
4,200 Ferro Corp. 121
2,500 Fisher Scientific International, Inc. 114
1,000 Fluke (John) Manufacturing Co., Inc.* 43
3,300 Genrad, Inc.* 73
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
4,400 Gilead Sciences, Inc.* $ 113
575 Hach Co. 9
1,700 Hologic, Inc.* 42
1,900 InControl, Inc.* 17
3,900 Isolyser Company, Inc.* 31
4,100 Kennametal, Inc. 148
4,800 Keystone International, Inc. 94
900 Lunar Corp.* 28
1,300 Marquette Medical Systems, Inc.* 24
4,900 Mascotech, Inc. 81
2,200 Measurex Corp. 54
3,564 Mentor Corp. 98
600 Mine Safety Appliances Co. 30
1,600 MTS Systems Corp. 33
700 OnTrak Systems, Inc.* 13
1,600 Ostex International, Inc.* 10
101 PerSeptive Biosystems 1
2,600 Physio-Control International Corp.* 48
2,100 Possis Corp.* 37
3,600 Power Control Technologies, Inc.* 28
1,200 Protocol Systems, Inc.* 16
3,400 R.P. Scherer Corp.* 156
2,600 Respironics, Inc.* 38
1,900 SangStat Medical Corp.* 43
1,700 Spine-Tech, Inc. 45
2,200 Staar Surgical Co.* 25
1,200 Starrett (L.S.) Co. 33
2,900 Sunrise Medical, Inc.* 42
1,100 Tech-Sym Corp.* 32
2,650 TECNOL Medical Products, Inc.* 35
1,600 Theragenics Corp.* 36
2,500 Theratech, Inc.* 28
3,400 Thoratec Laboratories, Inc.* 32
3,100 Trimble Navigation Ltd.* 43
1,700 UROHEALTH Systems, Inc.* 15
3,000 Ventritex, Inc.* 70
1,000 Vital Signs, Inc. 22
3,800 Waters Corp.* 103
1,396 Watkins-Johnson Co. 36
1,800 Watsco, Inc. 45
2,300 X-Rite, Inc. 43
1,300 Zoltek Companies, Inc.* 46
--------
3,826
</TABLE>
See accompanying notes to financial statements.
37
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
INSURANCE SERVICES--4.3%
2,100 Acceptance Insurance Cos., Inc.* $ 43
2,200 Acordia, Inc. 65
6,500 Alexander & Alexander Services, Inc. 94
3,500 Alfa Corp. 39
2,250 Allied Group, Inc. 100
1,524 American Annuity Group, Inc.* 20
3,200 American Bankers Insurance Group, Inc. 156
1,450 American Heritage Life Investment Corp. 32
2,200 American Travelers Corp.* 78
4,000 Amerin Corp.* 91
2,200 Amvestors Financial Corp. 32
2,800 Argonaut Group, Inc. 83
2,000 Baldwin & Lyons, Inc. 36
2,200 Berkley (W.R.) Corp. 115
1,800 Blanch (E.W.) Holdings, Inc. 35
1,700 Capital RE Corp. 65
700 Capitol American Financial Corp. 25
1,200 Citizens Corp. 26
3,100 Commerce Group, Inc. 74
4,500 Coventry Corp.* 44
1,960 Delphi Financial Group, Inc.* 55
1,900 Enhance Financial Services Group, Inc. 65
1,800 Executive Risk, Inc. 72
4,974 Financial Security Assurance International 158
1,700 First American Financial Corp. 62
1,400 Foremost Corp. of America 78
3,112 Fremont General Corp. 97
1,684 Frontier Insurance Group, Inc. 64
1,100 Fund American Enterprises Holdings, Inc.* 101
3,285 Gainsco, Inc. 31
2,200 Gallagher (Arthur J.) & Co. 68
1,700 Guarantee Life Companies, Inc. 33
2,600 Guaranty National Corp. 43
1,100 Harleysville Group, Inc. 34
3,100 Hartford Steam Boiler 141
3,900 HCC Insurance Holdings, Inc.* 109
1,800 Highlands Insurance Group, Inc.* 35
2,400 Hilb, Rogal & Hamilton Co. 32
1,900 Home Beneficial Corp. 47
3,700 Horace Mann Educators Corp. 140
2,300 Integon Corp. 44
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
3,600 John Alden Financial Corp. $ 63
500 Kansas City Life Insurance Co. 29
2,300 Liberty Corp. 88
800 Liberty Financial Cos., Inc. 28
1,700 Life Reinsurance Corp. 63
2,700 Life USA Holding, Inc.* 27
1,414 MAIC Holdings, Inc.* 47
600 Markel Corp.* 51
800 Meadowbrook Insurance Group, Inc. 17
2,300 NAC RE Corp. 84
400 National Western Life Insurance Co.* 33
900 Nymagic, Inc. 16
2,190 Orion Capital Corp. 137
1,300 Pioneer Financial Services, Inc. 24
950 Poe & Brown, Inc. 25
4,000 Presidential Life Corp. 47
1,400 PXRE Corp. 34
2,600 Reinsurance Group of America, Inc. 122
9,500 Reliance Group Holdings, Inc. 85
2,900 Risk Capital Holdings, Inc.* 51
1,065 RLI Corp. 34
800 Seafield Capital Corp. 27
1,500 Security Connecticut Corp. 52
2,200 Selective Insurance Group, Inc. 74
2,200 Sierra Health Services, Inc.* 54
1,050 State Auto Financial Corp. 17
7,000 20th Century Industries* 105
900 Transnational Re Corp., Class A 23
900 Trenwick Group, Inc. 44
5,300 UICI* 148
3,820 United Cos. Financial Corp. 114
900 United Dental Care, Inc. 25
1,650 United Fire & Casualty Co. 51
1,100 United Wisconsin Services, Inc. 28
3,000 Vesta Insurance Group, Inc. 97
1,700 Washington National Corp. 47
1,800 Zenith National Insurance Corp. 49
1,700 Zurich Reinsurance Centre Holdings, Inc. 52
--------
4,874
JEWELRY AND PRECIOUS METALS--0.0%
1,600 Oneida, Ltd. 27
700 Syratech Corp.* 22
--------
49
</TABLE>
See accompanying notes to financial statements.
38
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
LEATHER PRODUCTS--0.2%
2,800 Brown Group, Inc. $ 53
3,300 Justin Industries, Inc. 35
1,400 Timberland Co.* 54
4,287 Wolverine World Wide, Inc. 115
--------
257
LUMBER AND WOOD PRODUCTS--0.2%
1,500 Fibreboard Corp.* 52
1,900 Ply-Gem Industries, Inc. 25
2,300 Pope & Talbot, Inc. 37
2,600 TJ International, Inc. 57
--------
171
MACHINERY--2.0%
700 Ag-Chem Equipment Co., Inc.* 11
1,400 Alamo Group, Inc. 23
1,600 Allied Products Corp. 38
2,000 Avondale Industries, Inc.* 35
2,100 Borg-Warner Security Corp.* 22
1,700 Cascade Corp. 24
700 Columbus McKinnon Corp. 11
3,300 Donaldson Co., Inc. 101
900 DT Industries, Inc. 31
3,800 Duriron Co., Inc. 103
2,900 Figgie International Holdings, Inc.* 37
3,900 FSI International, Inc.* 57
1,450 Gasonics International Corp.* 16
5,400 Giddings & Lewis, Inc. 63
600 Gleason Corp. 18
3,500 Global Industrial Technologies, Inc.* 72
3,300 Goulds Pumps, Inc. 81
2,197 Graco, Inc. 57
1,300 Helix Technology Corp. 41
2,650 IDEX Corp. 104
3,100 Indentix, Inc. 25
2,500 Integrated Process Equipment Corp.* 43
2,400 Ionics, Inc.* 116
2,600 Kaydon Corp. 106
3,400 Kulicke & Soffa Industries, Inc.* 69
1,000 Lindsay Manufacturing Co.* 41
1,750 Manitowoc Co., Inc. 77
6,300 Marine Drilling Co., Inc.* 100
3,400 Modine Manufacturing Co. 85
3,250 Mohawk Industries, Inc.* 77
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
2,400 Molten Metal Technology, Inc.* $ 36
1,300 Morningstar Group, Inc.* 22
1,600 Osmonics, Inc.* 34
3,100 Outboard Marine Corp. 50
699 Pilgrims Pride Corp. 6
3,200 Regal-Beloit Corp. 62
2,200 Rexel, Inc.* 31
1,348 Robbins & Myers, Inc. 32
2,000 Roper Industries, Inc. 86
1,700 Specialty Equipment Cos., Inc.* 20
100 Spinnaker Industries* 6
1,700 SPX Corp. 54
800 Thermo Power Corp.* 7
1,900 Toro Co. 68
800 Tractor Supply Co.* 17
3,000 Varco International, Inc.* 69
--------
2,284
MANUFACTURING--GENERAL--1.1%
500 Bacou U.S.A., Inc.* 8
3,380 Brady (W.H.) Co. 74
3,150 Cuno, Inc. 49
9,300 Furniture Brands International, Inc.* 115
5,800 Hexcel Corp.* 105
1,400 Hunt Manufacturing Co. 25
1,600 Insilico Corp.* 62
1,000 Jabil Circuit, Inc.* 25
6,000 Kemet Corp.* 138
1,300 Matthews International Corp., Class A 37
2,500 Novellus Systems, Inc.* 144
1,700 Optical Coating Laboratory, Inc. 19
1,800 Paragon Trade Brands, Inc.* 50
2,000 Samsonite Corp.* 76
1,400 Seattle Filmworks, Inc.* 27
700 Simpson Manufacturing Co.* 15
850 Simula, Inc.* 13
3,000 Toy Biz, Inc.* 55
2,400 Tracor, Inc.* 53
800 Tremont Corp.* 29
700 Trigen Energy Corp. 19
2,000 U.S. Can Corp.* 33
700 Visioneer, Inc.* 4
2,400 Wireless Telecom Group, Inc. 24
--------
1,199
</TABLE>
See accompanying notes to financial statements.
39
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
MERCHANDISE--GENERAL--0.4%
1,200 Action Performance Companies, Inc.* $ 21
3,700 Amerisource Corp.* 146
2,200 Cross (A.T.) Co. 24
3,300 Department 56, Inc.* 77
5,300 Jostens, Inc. 113
2,200 Libbey, Inc. 59
6,200 Playtex Products, Inc.* 50
1,900 Strategic Distribution, Inc.* 13
--------
503
METAL MINING--0.6%
20,200 Battle Mountain Gold Co. 146
1,700 Cleveland Cliffs, Inc. 75
3,300 Coeur D'Alene Mines Corp. 48
4,200 Freeport-McMoran Copper and Gold Inc. 128
4,017 Getchell Gold Corp.* 157
8,000 Hecla Mining Co.* 47
2,600 Stillwater Mining Co. 45
33,600 Sunshine Mining Co.* 38
--------
684
METAL PRODUCTS--0.9%
1,400 Alltrista Corp.* 35
7,800 Amax Gold, Inc.* 47
800 American Buildings Co.* 17
2,800 Aptargroup, Inc. 97
600 Barnes Group, Inc. 34
1,050 Butler Manufacturing Co. 33
1,600 Chase Brass Industries, Inc.* 29
1,200 Citation Corp.* 12
2,300 Clarcor, Inc. 51
1,000 Greenbriar Cos., Inc. 10
1,100 Hardinge, Inc. 29
2,700 Material Sciences Corp.* 45
1,800 Miller Industries, Inc.* 50
1,500 NN Ball & Roller, Inc. 20
1,100 Oregon Meetallurgical Corp.* 39
1,100 Penn Engineering & Manufacturing Corp. 22
1,900 Quanex Corp. 51
964 SPS Technologies, Inc.* 60
2,400 TriMas Corp. 61
3,100 Watts Industries, Inc., Class A 68
1,600 Whittaker Corp.* 22
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -------------------------------------------------------
<C> <S> <C>
2,200 Wolverine Tube, Inc.* $ 82
3,000 Wyman-Gordon Co.* 64
2,600 Zero Corp. 51
--------
1,029
MINING, QUARRYING OF NONMETALLIC MINERAL--
0.2%
1,100 Cliff's Drilling Co.* 57
2,300 Dravo Corp.* 30
1,800 RMI Titanium Corp.* 42
2,600 Solv-Ex Corp.* 34
2,600 Zeigler Coal Holding Co. 48
--------
211
MISCELLANEOUS INVESTING INSTITUTIONS--3.0%
5,424 BRE Properties, Inc. 120
3,000 Burnham Pacific Properties, Inc. 39
200 Capital Southwest Corp. 14
5,575 Capstead Mortgage Corp. 135
9,104 Champion Enterprises, Inc.* 190
1,619 Chemical Financial Corp. 59
1,400 Corus Bankshares, Inc. 45
3,200 Crescent Real Estate Equities, Inc.* 140
6,900 CWM Mortgage Holdings, Inc. 142
4,800 Dauphin Deposit Corp. 156
3,100 Deposit Guaranty Corp. 179
6,300 Franchise Finance Corp. 160
8,700 Geotek Communications, Inc.* 61
2,708 Horizon Group, Inc. 53
3,400 Hospital Properties Trust 92
4,500 IRT Property Co. 48
1,000 John Nuveen and Company, Inc. 27
4,200 Kimco Realty Corp. 122
2,700 Koger Equity, Inc.* 44
2,900 LTC Properties, Inc. 50
1,873 MAF Bancorp, Inc. 64
1,800 Meridian Industrial Trust, Inc. 34
5,500 Merry Land & Investment Co., Inc. 110
2,000 MGI Properties, Inc. 40
6,500 Mid Atlantic Medical Services, Inc.* 76
6,200 Nationwide Health Properties, Inc. 138
3,500 Noel Group, Inc.* 23
2,600 Patriot American Hospitality, Inc. 98
1,000 PEC Israel Economic Corp.* 17
1,433 Peoples First Corp. 32
6,000 Public Storage, Inc. 152
</TABLE>
See accompanying notes to financial statements.
40
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------------
<C> <S> <C>
3,600 Realty Income Corp. $ 86
1,600 Reckson Associates Realty Corp. 61
1,400 Redwood Trust, Inc. 53
3,100 Resource Mortgage Capital, Inc. 83
1,100 Seacor Holdings, Inc.* 70
1,000 Sirrom Capital Corp. 36
1,700 Smith, (Charles E.) Residential
Realty, Inc. 43
1,800 Trans Financial Bancorp, Inc. 38
1,000 Union Acceptance Corp.* 20
2,300 Vallicorp Holdings, Inc. 46
3,700 Weingarten Realty Investors 145
--------
3,341
NATURAL GAS TRANSMISSION--1.9%
2,450 Atmos Energy Corp. 60
2,100 Bay State Gas Co. 61
1,500 Colonial Gas Co. 34
1,600 Connecticut Energy Corp. 35
1,700 Connecticut Natural Gas Corp. 40
3,100 Eastern Enterprises 116
1,700 Energen Corp. 46
3,100 Indiana Energy, Inc. 75
12,300 Kelley Oil and Gas Corp.* 35
3,151 KN Energy, Inc. 128
2,700 Laclede Gas Co. 64
2,800 New Jersey Resources Corp. 83
1,100 North Carolina Natural Gas Corp. 32
3,500 Northwest Natural Gas Co. 88
1,700 NUI Corp. 34
3,700 Oneok, Inc. 102
4,576 Piedmont Natural Gas Co. 115
3,700 Primark Corp.* 97
2,950 Public Service Co. of North Carolina, Inc. 56
1,320 South Jersey Industries, Inc. 32
2,184 Southeastern Michigan Gas Enterprises, Inc. 39
1,420 Southern Union Co.* 35
3,900 Southwest Gas Corp. 76
3,900 Southwestern Energy Co. 62
1,957 Tejas Gas Corp.* 86
1,700 TransTexas Gas Corp.* 23
5,100 UGI Corp. 112
2,000 United Cities Gas Co. 47
3,800 Washington Energy Co. 73
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
6,700 Washington Gas Light Co. $ 160
2,900 Wicor, Inc. 105
--------
2,151
OIL AND GAS--2.9%
8,600 AGL Resources, Inc. 182
900 Aquila Gas Pipeline Corp. 13
800 Atwood Oceanics, Inc.* 44
4,040 Barrett Resources Corp.* 165
1,000 Belco Oil & Gas Corp.* 29
1,800 Belden & Blake Corp.* 45
4,100 Benton Oil & Gas Co.* 105
3,400 Berry Petroleum Co. 45
4,543 BJ Services Co.* 217
3,200 Box Energy Corp.* 27
2,900 Brown (Tom), Inc.* 55
3,200 Cabot Oil & Gas Corp. 57
2,600 Cairn Energy USA, Inc.* 31
3,000 Calmat Co. 55
2,000 Capsure Holdings Corp.* 19
2,400 Cross Timbers Oil Co. 58
2,400 Destec Energy, Inc.* 37
3,000 Devon Energy Corp. 109
1,900 Energy Ventures, Inc.* 93
1,800 Falcon Drilling Co., Inc.* 72
1,700 Flores & Rucks, Inc.* 84
1,600 Forcenergy, Inc.* 49
3,700 Forest Oil Corp.* 57
1,200 Giant Industries, Inc. 18
11,500 Harken Energy Corp.* 34
3,900 Helmerich & Payne, Inc. 210
499 Hondo Oil & Gas Co.* 6
2,100 Hugoton Energy Corp.* 23
1,700 KCS Energy, Inc. 57
1,800 KFX, Inc.* 11
11,800 Mesa, Inc.* 60
5,800 Mitchell Energy & Development Corp. 126
1,500 Nuevo Energy Co.* 75
3,600 Oceaneering International, Inc.* 60
5,600 Parker & Parsley Petroleum Co. 185
7,900 Parker Drilling Co.* 74
2,800 Plains Resources, Inc.* 46
2,400 Pool Energy Services Co.* 35
4,100 Pride Petroleum Services, Inc.* 74
1,400 Production Operators Corp. 63
</TABLE>
See accompanying notes to financial statements.
41
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
OIL AND GAS--CONTINUED
9,336 Seagull Energy Corp.* $ 214
4,300 Snyder Oil Corp. 74
2,100 Swift Energy Co.* 66
4,100 Tuboscope Vetco International Corp.* 63
1,800 Vintage Petroleum, Inc. 60
2,500 Western Gas Resources, Inc. 47
--------
3,329
ORDNANCE AND ACCESSORIES--0.1%
1,400 Alliant Techsystems, Inc.* 75
3,100 Sturm Ruger & Co., Inc. 55
--------
130
OTHER SERVICES--0.6%
800 Central Parking Corp. 27
400 CKS Group, Inc.* 8
1,600 Integrated Packaging Assembly Corp.* 13
1,100 McGrath Rentcorp 28
7,700 Ogden Corp. 149
1,400 Pixar, Inc.* 21
1,100 Quick Response Services, Inc.* 34
3,300 Rollins, Inc. 61
1,300 Sovran Self Storage, Inc. 37
700 Summit Care Corp.* 11
750 Thermo Ecotek Corp.* 12
250 Thermo Remediation, Inc. 3
5,600 United Waste Systems, Inc.* 188
800 Wackenhut Corrections Corp.* 14
6,000 Walter Industries, Inc.* 80
--------
686
PAPER PRODUCTS--0.7%
3,200 Chesapeake Corp. 98
8,500 Gaylord Container Corp.* 54
2,500 Greif Bros. Corp. 73
1,653 Mosinee Paper Corp. 57
4,000 P.H. Glatfelter Co. 73
3,646 Paxar Corp.* 62
5,270 Rock-Tenn Co. 111
2,500 Schweitzer-Mauduit International, Inc. 83
2,500 Shorewood Packaging Corp.* 47
2,100 Universal Forest Products, Inc. 27
4,400 Wausau Paper Mills Co. 90
--------
775
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
PERSONAL SERVICES--0.5%
1,600 Angelica Corp. $ 31
2,600 Bristol Hotel Co.* 70
2,900 Catalina Marketing Corp.* 148
2,400 CPI Corp. 41
1,300 Craig (Jenny), Inc.* 12
1,500 Equity Corp. International 32
3,150 G & K Services, Inc. 114
1,873 Marcus Corp. 43
1,700 Red Roof Inns, Inc.* 27
3,200 Unifirst Corp. 68
--------
586
PETROLEUM PRODUCTS--1.0%
3,800 Camco International, Inc. 159
1,200 Crown Central Petroleum Corp.* 17
3,700 Diamond Shamrock, Inc. 120
1,500 Elcor Corp. 32
2,300 Lomak Petroleum, Inc. 38
1,300 Louis Dreyfus Natural Gas Corp.* 22
2,700 Newfield Exploration, Inc.* 135
1,690 Newpark Resources, Inc.* 59
5,300 Quaker Chemical Corp. 91
2,000 Royal Gold, Inc.* 26
1,100 RPC, Inc.* 17
1,700 Seitel, Inc.* 69
1,500 Stone Energy Corp.* 35
4,100 Tesoro Petroleum Corp.* 59
4,210 United Meridian Corp.* 215
--------
1,094
PRINTING AND PUBLISHING--1.5%
1,800 American Business Information, Inc.* 31
1,950 American Business Products, Inc. 43
7,300 American Media, Inc., Class A 42
2,500 Big Flower Press Holdings, Inc.* 44
2,800 Bowne & Co., Inc. 69
1,200 CSS Industries, Inc.* 29
1,100 Devon Group, Inc.* 28
1,290 DH Technology, Inc.* 31
1,050 Edmark Corp.* 16
2,900 Ennis Business Forms, Inc. 29
2,500 Express Scripts, Inc.* 89
1,400 Franklin Electronic Publishers, Inc.* 18
2,800 Gibson Greetings, Inc.* 53
</TABLE>
See accompanying notes to financial statements.
42
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
3,000 Golden Books Family
Entertainment, Inc.* $ 35
4,800 Harland (John H.) Co. 148
2,457 Harte-Hanks Communications, Inc. 63
4,000 Hollinger International, Inc. 44
2,200 Houghton Mifflin Co. 115
4,700 McClatchy Newspapers, Inc., Class A 145
954 Merrill Corp. 22
2,250 Nelson (Thomas), Inc. 28
2,100 New England Business Service, Inc. 41
2,900 Playboy Enterprises, Inc.* 34
966 Pulitzer Publishing Co. 44
1,900 Scholastic Corp.* 142
2,100 Standard Register Co. 59
400 Steck-Vaughn Publishing Corp.* 4
7,300 Topps, Inc.* 31
3,400 Valassis Communications, Inc.* 61
400 Waverly, Inc.* 10
2,100 Wiley (John) & Sons, Inc. 62
5,300 World Color Press, Inc.* 127
--------
1,737
PROFESSIONAL SERVICES--7.0%
2,520 ABM Industries, Inc. 43
1,550 ADR Information Services, Inc.* 67
5,100 Acclaim Entertainment, Inc.* 26
2,000 Activision, Inc.* 23
7,200 Acxiom Corp.* 165
600 Advent Software, Inc.* 19
3,725 Advo, Inc. 47
3,600 Affiliated Computer Services, Inc.* 104
5,800 Allwaste, Inc.* 25
2,200 Alternative Resources Corp.* 38
2,700 AMERCO* 128
4,400 American Oncology Resources, Inc.* 43
2,474 Analysts International Corp. 67
1,700 Arbor Software Corp.* 49
1,400 Aspen Technologies, Inc.* 117
600 Astea International, Inc.* 3
4,800 Banta Corp. 114
800 Barra, Inc.* 21
3,200 BBN Corp.* 74
2,300 BDM International* 108
2,600 BE Aerospace, Inc.* 60
2,200 Bell & Howell Co.* 57
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------
<C> <S> <C>
700 Billing Information Concepts* $ 21
3,800 Bisys Group, Inc.* 142
1,856 Boole & Babbage, Inc.* 53
900 BRC Holdings, Inc.* 38
2,700 Broderbund Software, Inc.* 81
3,800 BWIP Holding, Inc. 58
1,700 Casino Data Systems* 22
1,700 CDI Corp.* 50
100 Cheyenne Software, Inc.* 3
1,300 Ciber, Inc.* 43
2,800 Citrix Systems, Inc.* 128
1,600 Clarify, Inc.* 72
1,200 ClinTrials Research, Inc.* 26
1,200 CMG Information Services, Inc.* 19
500 COMFORCE Corp.* 7
2,200 Computer Horizons Corp.* 74
600 Computer Language Research, Inc. 6
1,500 Computer Task Group, Inc. 63
9,900 Computervision Corp.* 94
1,700 Comshare, Inc.* 25
1,000 Cooper & Chyan Technology, Inc.* 33
1,900 COREStaff, Inc.* 49
500 CRA Managed Care, Inc.* 23
500 CSG Systems International, Inc.* 9
1,200 Data Translation, Inc.* 14
700 Datastream Systems, Inc.* 16
1,300 DecisionOne Corp.* 20
1,500 Dendrite International, Inc.* 36
1,600 Documentum, Inc.* 61
1,100 Elcom International, Inc.* 9
1,284 Electro Rent Corp.* 31
1,100 EmCare Holdings, Inc. 22
2,900 Employee Solutions, Inc.* 54
700 Enterprise Systems, Inc.* 11
600 Excite, Inc.* 6
1,200 Fair Isaac & Co. 42
2,900 Franklin Quest Co.* 62
2,300 General Magic, Inc.* 7
1,600 Geoworks* 35
3,000 Gerber Scientific, Inc. 47
3,400 Global Industries Ltd.* 60
200 Grey Advertising, Inc. 46
800 HA-LO Industries, Inc.* 31
1,500 Harbinger Corp.* 39
</TABLE>
See accompanying notes to financial statements.
43
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
PROFESSIONAL SERVICES--CONTINUED
400 HCIA, Inc.* $ 12
1,300 Henry (Jack) & Associates, Inc. 49
2,300 HNC Software, Inc.* 68
978 Holly Corp. 26
2,200 HPR, Inc.* 33
800 IDT Corp.* 11
1,300 IKOS Systems, Inc.* 25
1,600 Inacom Corp.* 50
400 Individual, Inc.* 2
600 Indus Group, Inc.* 13
1,300 Inference Corp.* 8
1,600 Infocus Systems* 34
1,300 Inso Corp.* 55
500 Integrated Measurement Systems, Inc.* 9
2,400 Integrated Systems Consulting
Group, Inc.* 52
3,500 InteliData Technologies Corp.* 26
400 IntelliQuest Information Group, Inc.* 10
2,400 Interim Services, Inc.* 94
1,200 International Imaging Materials, Inc.* 29
3,400 Intersolv, Inc.* 31
500 Intevac, Inc.* 8
800 Iron Mountain, Inc.* 25
750 ITT Educational Services, Inc.* 15
500 JDA Software Group, Inc.* 13
2,400 Katz Media Group* 24
2,475 Keane, Inc.* 131
2,000 Kinder Care Learning Centers, Inc.* 40
2,000 Landstar Systems, Inc.* 46
800 Learning Tree International, Inc.* 36
2,000 Legato Systems, Inc.* 70
1,200 Logic Works, Inc.* 7
1,200 Manugistics Group, Inc.* 45
1,100 Maxis, Inc.* 17
1,200 May & Speh, Inc.* 16
1,300 MDL Information Systems, Inc.* 22
4,450 MDU Resources Group, Inc. 100
1,400 MetaTools, Inc.* 26
2,000 Metricom, Inc.* 27
900 Microware Systems Corp.* 14
3,900 National Data Corp. 156
3,000 National Health Investors, Inc. 107
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------------
<C> <S> <C>
1,400 National Instruments Corp.* $ 45
1,900 NETCOM On-Line Communication Services, Inc.* 33
2,500 Network Data Processing Corp. 90
3,200 Network Equipment Technologies, Inc.* 49
1,700 Network Peripherals, Inc.* 27
1,200 NHP, Inc.* 21
1,350 Nichols Research Corp.* 33
2,300 Nimbus CD International, Inc.* 20
2,000 Norrell Corp. 46
1,900 Novadigm, Inc.* 20
5,500 Oak Technology, Inc.* 54
400 On Assignment, Inc.* 12
2,300 Orthodontic Centers of America, Inc.* 29
1,700 Personnel Group of America, Inc.* 38
1,200 PhyMatrix Corp.* 18
2,700 Physician Resource Group, Inc.* 56
3,100 Physician Computer Network, Inc.* 26
1,000 Pinkertons, Inc.* 25
5,050 Players International, Inc.* 33
2,400 Policy Management Systems Corp.* 96
3,700 Pre-Paid Legal Services, Inc.* 51
2,400 Precision Systems, Inc.* 13
1,000 Premenos Technology Corp.* 10
1,100 Premiere Technologies, Inc.* 26
800 Prism Solutions, Inc.* 6
800 Profit (The) Recovery Group
International, Inc.* 11
1,900 Progress Software Corp.* 38
1,000 Project Software & Development, Inc.* 42
1,700 Protein Design Labs, Inc.* 41
4,200 PSINET, Inc.* 53
3,862 Pure Atria Corp.* 108
5,100 Quarterdeck Corp.* 34
1,000 Rainbow Technologies, Inc.* 20
500 Raptor Systems, Inc.* 11
1,800 Red Brick Systems, Inc.* 42
1,800 Remedy Corp.* 81
500 Renaissance Solutions, Inc.* 19
5,500 RISCORP, Inc.* 24
5,900 Rollins Truck Leasing Corp. 71
900 Romac International, Inc.* 22
1,800 RTW, Inc.* 29
2,300 7th Level, Inc.* 11
</TABLE>
See accompanying notes to financial statements.
44
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
300 Sapient Corp.* $ 12
1,300 Scopus Technologies, Inc.* 49
1,500 Secure Computing Corp.* 14
500 Seque Software, Inc.* 6
2,300 Sitel Corp.* 45
600 Smith Micro Software, Inc.* 3
1,300 Software 2000, Inc.* 11
6,700 Sotheby's Holdings, Inc., Class A 118
4,300 Spectrum Holobyte, Inc. 22
1,000 SPSS, Inc.* 29
1,900 Spyglass, Inc.* 20
500 SQA, Inc.* 14
3,600 Stac, Inc.* 24
1,600 State of the Art, Inc.* 21
5,000 Structural Dynamics Research Corp.* 97
1,000 Summit Medical Systems* 8
3,800 SunRiver Corp.* 9
2,400 Sync Research, Inc.* 47
4,450 System Software Associates, Inc. 62
2,400 Systems & Computer Technology Corp.* 35
2,900 Systemsoft Corp.* 53
1,800 TCSI Corp.* 16
2,800 Telxon Corp. 34
565 Thermo TerraTech, Inc.* 6
1,650 Thermotrex Corp.* 56
3,400 Transaction Systems Architects, Inc.* 123
3,000 Transcend Services, Inc.* 18
500 Unison Software, Inc.* 12
2,300 Vanstar Corp.* 63
1,300 Vantive Corp. 45
1,600 Veritas DGC, Inc.* 34
1,550 Veritas Software Corp.* 72
1,400 Verity, Inc.* 23
2,600 Viasoft, Inc.* 118
2,000 VideoServer, Inc.* 98
2,800 Viewlogic Systems, Inc.* 28
1,100 Visio Corp.* 54
1,800 VISX Corp.* 42
800 Volt Information Sciences, Inc.* 28
1,697 Wackenhut Corp. 28
1,350 Wind River Systems* 66
600 Workgroup Technology Corp.* 3
2,800 Xircom, Inc.* 56
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- --------------------------------------------------------
<C> <S> <C>
400 Yahoo!, Inc.* $ 8
800 Zoran Corp.* 17
--------
8,049
REAL ESTATE--4.9%
3,300 American Health Properties, Inc. 73
700 American Homestar Corp.* 13
1,400 AMLI Residential Properties 30
2,000 Apartment Investment & Management Co. 50
1,800 Associated Estates Realty Corp. 40
4,600 Avalon Properties, Inc. 118
1,200 Avatar Holdings, Inc.* 37
1,800 Bay Apartment Communities, Inc. 59
3,700 Beacon Properties Corp. 117
4,000 Berkshire Realty, Inc. 38
2,403 Bradley Real Estate Trust 42
2,300 Cali Realty Corp. 65
2,200 Camden Property Trust 61
3,200 Carr Realty Corp. 83
2,700 Castle & Cooke, Inc.* 43
2,000 Cavalier Homes, Inc. 23
2,600 CBL & Associates Properties, Inc. 64
1,900 Centerpoint Properties Corp. 52
1,800 Chelsea GCA Realty, Inc. 57
2,800 Colonial Property Trust* 75
1,800 Columbus Realty Trust 38
2,700 Commercial Net Lease Realty, Inc. 39
3,600 Cousins Properties, Inc. 84
4,200 Crown American Realty Trust 32
3,000 Developers Diversified Realty Corp. 101
4,834 Doubletree Corp.* 203
4,500 Duke Realty Investments, Inc. 161
3,900 Equity Inns, Inc. 46
2,900 Evans Withycombe Residential, Inc. 59
2,200 Excel Realty Trust, Inc. 50
5,000 Federal Realty Investment Trust 130
3,600 FelCor Suite Hotel, Inc. 128
3,800 First Industrial Realty Trust, Inc. 109
600 Forest City Enterprises, Inc. 32
2,400 Gables Residential Trust 64
4,200 General Growth Properties, Inc. 117
3,400 Glimcher Realty Trust 66
4,500 Health Care Property Investors, Inc. 154
2,200 Health Care REIT, Inc. 55
1,800 Healthcare Realty Trust 46
</TABLE>
See accompanying notes to financial statements.
45
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
REAL ESTATE--CONTINUED
3,600 Highwoods Properties, Inc. $ 111
2,000 Irvine Apartment Communities, Inc. 49
1,700 JDN Realty Co. 44
2,100 JP Realty, Inc. 51
4,400 Liberty Property Trust 102
2,900 Macerich Co. 67
3,800 Manufactured Home Communities, Inc. 76
900 Maxxam, Inc.* 42
1,800 Mid-America Apartment Communities, Inc. 46
2,300 Mills Corp. 48
1,800 National Golf Properties, Inc. 51
2,400 Oasis Residential, Inc. 50
2,600 Paragon Group, Inc. 41
1,300 Pennsylvania REIT 30
3,400 Post Properties, Inc. 131
1,100 PRI Automation, Inc.* 53
2,500 Price Enterprises, Inc.* 43
1,400 Price REIT, Inc. 49
1,600 Regency Realty Corp.* 38
3,800 RFS Hotel Investors, Inc. 64
1,800 ROC Communities, Inc. 45
1,700 Saul Centers, Inc. 26
3,600 Shurguard Storage Centers, Inc. 99
3,125 South West Property Trust, Inc. 50
4,800 Spieker Properties, Inc. 147
1,400 Storage Trust Realty 34
3,100 Storage USA, Inc. 117
2,500 Summit Property, Inc. 49
1,900 Sun Communities, Inc. 61
4,800 Taubman Centers, Inc. 56
2,700 Thornburg Mortgage Asset Corp. 47
2,700 Town & Country Trust 39
1,900 Trinet Corporate Realty Trust 65
8,800 United Dominion Realty Trust 130
2,100 Urban Shopping Centers, Inc. 55
3,900 Vornado Realty Trust 176
1,700 Walden Residential Properties, Inc. 39
4,900 Washington Real Estate Investment Trust 81
1,700 Weeks Corp. 48
2,700 Wellsford Residential Property Trust 65
3,000 Western Investment Real Estate Trust 39
--------
5,508
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------------
<C> <S> <C>
RECREATIONAL AND LEISURE SERVICES--1.3%
500 AMC Entertainment, Inc.* $ 10
500 Ameristar Casinos, Inc.* 3
1,100 Anchor Gaming* 46
2,500 Argosy Gaming Corp.* 14
1,000 Ascent Entertainment Group, Inc. 17
3,100 Authentic Fitness Corp. 34
6,300 Aztar Corp.* 46
200 Bally's Grand, Inc.* 7
4,200 Boyd Gaming Corp.* 34
1,700 Carmike Cinemas, Inc.* 46
3,150 Casino America, Inc.* 11
4,300 Casino Magic Corp.* 12
2,300 Galoob (Lewis) Toys, Inc.* 67
1,000 GC Cos., Inc.* 35
1,000 Harvey's Casino Resorts 17
2,600 Hollywood Casino Corp., Class A* 31
2,217 K2, Inc. 58
2,700 Lydall, Inc.* 61
800 Movie Gallery, Inc.* 11
500 Penn National Gaming, Inc.* 19
1,400 Primadonna Resorts, Inc.* 26
4,900 Prime Hospitality Corp.* 81
600 Quintel Entertainment, Inc.* 5
3,662 Regal Cinemas, Inc.* 119
2,900 Rio Hotel & Casino, Inc.* 44
5,200 Savoy Pictures Entertainment, Inc.* 18
2,100 Scientific Games Holdings Corp.* 55
2,500 Showboat, Inc. 47
1,950 Shuffle Master, Inc.* 19
1,600 Skyline Corp. 42
1,500 Sodak Gaming, Inc.* 24
2,300 Spelling Entertainment Group, Inc.* 18
3,400 Sports & Recreation, Inc.* 29
3,800 Starsight Telecast Co.* 29
3,200 Station Casinos, Inc.* 34
1,700 Stratosphere Corp.* 2
1,650 Studio Plus Hotels* 29
3,000 Trump Hotels and Casino Resorts, Inc.* 42
6,100 Tyco Toys, Inc.* 72
800 White River Corp.* 43
2,900 WMS Industries, Inc.* 73
--------
1,430
</TABLE>
See accompanying notes to financial statements.
46
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------
<C> <S> <C>
RESEARCH AND CONSULTING SERVICES--1.3%
5,800 Advance Tissue Science, Inc.* $ 70
1,700 Agouron Pharmaceuticals, Inc.* 93
3,200 Air & Water Technologies Corp.* 20
2,600 Alliance Entertainment Corp.* 6
10,400 Aura Systems, Inc.* 26
7,100 Bio-Technology General Corp.* 65
4,300 Columbia Laboratories, Inc.* 52
675 Computer Management Sciences, Inc.* 11
7,700 Cytogen Corp.* 42
2,800 Dames & Moore, Inc. 38
4,300 Data Broadcasting Corp.* 33
500 Data Processing Resources Corp.* 9
700 Eagle River Interactive, Inc.* 4
1,600 GRC International, Inc.* 24
3,300 ImCrone Systems, Inc.* 34
3,300 Jacobs Engineering Group, Inc.* 80
4,900 Liposome Technology, Inc.* 88
2,100 Mercer International, Inc.* 25
3,000 Mycogen Corp.* 50
1,900 NeoPath, Inc.* 34
1,500 NFO Research, Inc.* 33
3,400 OHM Corp.* 29
1,980 Organogenesis, Inc.* 41
1,200 Parexel International Corp.* 62
2,345 Pharmaceutical Product
Development, Inc.* 52
6,000 Scios-Nova, Inc.* 35
1,800 Spacelabs Medical, Inc.* 36
1,300 Stone & Webster, Inc. 42
5,050 Summit Technology, Inc.* 27
8,500 Symantec Corp.* 126
2,400 Technology Solutions Co.* 108
3,200 U.S. Bioscience, Inc.* 38
--------
1,433
RETAIL--4.5%
1,900 Aaron Rents, Inc. 27
570 Alexander's, Inc.* 41
700 American Eagle Outfitters, Inc.* 17
4,500 Americredit Corp.* 89
3,600 AnnTaylor Stores, Inc.* 73
3,912 Apple South, Inc. 58
2,800 Arbor Drugs, Inc. 72
1,800 Baby Superstores, Inc.* 50
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
<C> <S> <C>
4,900 Best Buy, Inc.* $ 62
1,400 Blair Corp. 27
6,500 Bombay Company, Inc.* 31
1,800 Books-a-Million, Inc.* 12
300 Buckle, Inc.* 8
7,540 Buffets, Inc.* 70
2,800 Burlington Coat Factory Warehouse* 34
2,500 Carson Pirie Scott & Co.* 65
5,000 Cash America International, Inc. 39
4,100 Cato Corp. 20
14,700 Charming Shoppes, Inc.* 75
2,900 CKE Restaurants, Inc. 89
7,450 Claire's Stores, Inc. 120
8,600 CML Group, Inc. 34
1,800 Cole National Corp.* 47
1,930 Consolidated Products, Inc.* 35
268 Dart Group Corp. 25
983 Delchamps, Inc. 20
2,800 Dress Barn, Inc.* 40
3,100 Duty Free International, Inc. 49
2,500 Fabri-Centers of America, Inc., Class A* 39
6,500 Family Dollar Stores, Inc. 122
7,000 Fedders Corp. 40
7,200 Fingerhut Cos., Inc. 90
6,000 Foodmaker, Inc.* 55
2,200 Friedmans, Inc., Class A* 30
2,200 Garden Ridge Corp.* 18
3,900 Gymboree Corp.* 110
3,700 Hancock Fabrics, Inc. 34
9,000 HEARx Ltd.* 17
5,300 Hechinger Co. 15
3,300 Hollywood Entertainment Corp.* 66
1,200 Ingles Markets, Inc. 17
2,950 Just For Feet, Inc.* 70
1,100 L.L. Knickerbocker Co.* 10
2,500 Lands' End, Inc. 68
2,200 Longs Drug Stores, Inc. 110
4,000 Mac Frugal's Bargains Close-Outs, Inc.* 99
800 Mafco Consolidated Group* 23
1,300 Mail Boxes Etc.* 29
1,775 Men's (The) Warehouse, Inc.* 41
4,100 Meyer (Fred), Inc.* 137
3,100 Michael's Stores, Inc.* 31
2,300 National Media Corp.* 18
</TABLE>
See accompanying notes to financial statements.
47
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
RETAIL--CONTINUED
2,623 Natures Sunshine Products, Inc. $ 53
2,900 NPC International, Inc.* 24
800 O'Reilly Automotive, Inc.* 27
6,900 Payless Cashways, Inc.* 12
2,150 Petco Animal Supplies, Inc.* 47
4,400 Petroleum Heat & Power, Inc. 31
6,435 Pier I Imports, Inc. 88
2,400 Proffitt's, Inc.* 97
1,500 Quality Food Centers, Inc.* 57
1,600 Regis Corp.* 40
2,400 Renters Choice, Inc.* 44
3,800 Ross Stores, Inc. 193
15,700 Service Merchandise Co., Inc.* 86
3,000 Shopko Stores, Inc. 47
2,750 Showbiz Pizza Time, Inc.* 45
3,098 Smith Food & Drug Centers, Inc., Class B 94
2,100 Sonic Corp.* 48
4,900 Sports Authority, Inc.* 121
2,900 Stanhome, Inc. 79
1,550 Stein Mart, Inc.* 30
1,220 Strawbridge & Clothier, Class A 20
7,700 Stride Rite Corp. 77
9,300 Thrifty PayLess Holdings, Inc.* 238
3,800 U.S. Office Products Co.* 118
5,500 Universal Corp. 158
1,200 Urban Outfitters, Inc.* 18
1,500 Valmont Industries, Inc. 59
1,700 Value City Department Stores, Inc.* 22
4,900 Waban, Inc.* 129
1,200 West Marine, Inc.* 40
900 Wet Seal, Inc.* 20
2,200 Whole Foods Market, Inc.* 50
2,900 Williams-Sonoma, Inc.* 101
1,300 Wilmar Industries, Inc.* 30
5,000 Zale Corp.* 99
--------
5,060
RUBBER AND PLASTICS--0.7%
2,200 ACX Technologies, Inc.* 40
2,100 Carlisle Cos., Inc. 121
2,500 Foamex International, Inc.* 42
1,500 Furon Co. 31
800 Liqui-Box Corp. 26
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
<C> <S> <C> <C>
2,195 Myers Industries, Inc.* $ 33
2,200 O'Sullivan Corp. 24
1,300 Park Ohio Industries, Inc.* 19
1,200 Rogers Corp.* 33
3,500 Sola International, Inc.* 123
2,500 Spartech Corp. 27
1,300 Tredegar Industries, Inc. 52
4,200 TRINOVA Corp. 153
2,000 West Co., Inc. 57
--------
781
SANITARY SERVICES--0.3%
9,400 Allied Waste Industries, Inc.* 85
2,800 Centennial Cellular Corp.* 33
1,500 Continental Waste Industries, Inc.* 40
10,500 Rollins Environmental Services, Inc.* 21
9,100 Safety-Kleen Corp. 144
600 Superior Services, Inc.* 10
--------
333
SERVICE INDUSTRY MACHINERY--0.4%
1,900 Applied Power, Inc. 69
2,450 Commercial Intertech Corp. 25
600 Greenwich Air Services, Inc. 15
1,600 Scotsman Industries, Inc. 37
1,500 Tennant Co. 37
5,675 United States Filter Corp.* 194
1,575 Wynn's International, Inc. 46
--------
423
SOCIAL SERVICES--0.3%
547 Berlitz International, Inc.* 11
2,100 DeVry, Inc.* 94
5,600 National Education Corp.* 79
2,618 Omega Healthcare Investors, Inc. 85
1,000 Youth Services International, Inc.* 13
--------
282
STEEL PRODUCTS--1.3%
2,000 Acme Metals, Inc.* 42
1,500 Amcast Industrial Corp. 35
13,700 Armco, Inc.* 62
4,500 Birmingham Steel Corp. 79
2,800 Brush Wellman, Inc. 47
2,400 Carpenter Technology Corp. 85
1,000 Chaparral Steel Co. 13
1,100 Coastcast Corp.* 17
</TABLE>
See accompanying notes to financial statements.
48
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- ---------------------------------------------------
<C> <S> <C>
1,600 Commonwealth Aluminum Corp. $ 26
400 Curtiss Wright Corp. 20
2,200 Geneva Steel Co.* 8
500 Gibraltar Steel Corp.* 12
2,400 Handy & Harman 40
1,000 Huntco, Inc., Class A 16
1,800 IMCO Recycling, Inc. 29
3,100 Intermet Corp.* 41
3,100 J & L Specialty Steel, Inc. 38
1,700 Kaiser Aluminum Corp.* 18
3,100 Lone Star Technologies, Inc. 55
2,600 Lukens, Inc. 48
2,700 Mueller Industries, Inc.* 106
3,700 National Steel Corp., Class B* 35
3,200 Oregon Steel Mills, Inc. 55
3,150 Precision Castparts Corp. 148
1,300 Reliance Steel & Aluminum Co. 49
1,500 Rouge Steel Co. 32
700 Schnitzer Steel Industries, Inc. 19
900 Shiloh Industries, Inc.* 15
1,900 Standex International Corp. 59
1,250 Steel Technologies, Inc. 16
1,700 Texas Industries, Inc. 97
4,000 UNR Industries, Inc. 28
1,000 WCI Steel, Inc.* 10
4,000 WHX Corp.* 38
--------
1,438
TEXTILES--0.6%
4,000 Albany International Corp. 89
9,800 Burlington Industries, Inc.* 107
3,400 Cone Mills Corp.* 28
800 Fab Industries, Inc. 21
1,582 Fieldcrest Cannon, Inc.* 23
1,898 Guilford Mills, Inc. 49
3,000 Interface, Inc. 59
4,100 Phillips-Van Heusen 53
1,200 Quiksilver, Inc.* 24
4,100 Ruddick Corp. 54
2,200 Springs Industries, Inc. 102
2,700 West Point Stevens, Inc.* 81
--------
690
TRANSPORTATION PARTS AND EQUIPMENT--2.3%
2,500 AAR Corp. 75
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------------
<C> <S> <C>
1,400 ABC Rail Products Corp.* $ 28
2,200 APS Holding Corp. 42
3,850 Arctic Cat, Inc. 37
1,700 Armor All Products Corp. 32
3,500 Arvin Industries, Inc. 83
2,700 Aviall, Inc. 27
2,200 Borg Warner Automotive, Inc. 88
2,200 Breed Technologies, Inc. 59
1,100 Cannondale Corp.* 21
2,700 Chancellor Corp.* 78
2,300 Coachmen Industries, Inc. 59
10,800 Collins & Aikman Corp.* 65
1,300 Copart, Inc.* 23
1,500 Detroit Diesel Corp.* 30
1,200 Eaton Vance Corp. 52
2,900 Exide Corp. .74
2,300 Fairchild Corp.* 38
5,500 Federal-Mogul Corp. 122
4,100 Gencorp, Inc. 76
2,300 Huffy Corp. 32
4,700 Mesa Airlines, Inc.* 46
11,800 Navistar International Corp.* 112
2,600 OEA, Inc. 105
4,200 Orbital Sciences Corp.* 81
2,104 Pacific Scientific Co. 24
4,300 Polaris Industries, Inc. 94
3,300 Rohr, Inc.* 58
1,300 Sequa Corp.* 52
2,800 Simpson Industries, Inc. 29
2,400 Smith (A.O.) Corp. 71
2,225 Standard Products Co. 51
2,800 Stant Corp. 35
4,900 Stewart & Stevenson Services, Inc. 121
3,300 Superior Industries International, Inc. 83
2,700 Teleflex, Inc. 134
2,900 Thiokol Corp. 133
889 Thor Industries, Inc. 21
2,525 Titan Wheel International, Inc. 33
900 Tower Automotive, Inc. 29
3,000 Wabash National Corp. 53
1,500 Walbro Corp. 30
3,200 Westinghouse Air Brake Co. 36
2,500 Winnebago Industries, Inc. 19
--------
2,591
</TABLE>
See accompanying notes to financial statements.
49
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF INVESTMENTS
November 30, 1996
(All amounts in thousands, except shares)
<TABLE>
<CAPTION>
Shares Description Value
- ------------------------------------------------------------
SMALL COMPANY INDEX PORTFOLIO--
CONTINUED
<C> <S> <C>
TRANSPORTATION SERVICES--1.8%
2,600 Air Express International Corp. $ 85
3,100 Airborne Freight Corp. 67
2,200 Alaska Air Group, Inc.* 53
7,630 America West Airlines, Inc.* 112
3,600 American Freightways, Inc.* 37
3,500 APL Ltd. 84
3,100 Arnold Industries, Inc. 49
3,700 Atlantic Southeast Airlines, Inc. 84
1,800 Covenant Transportation, Inc., Class A* 27
400 Eagle USA Airfreight, Inc.* 11
1,900 Expeditors International of
Washington, Inc. 85
1,458 First Source Corp. 34
600 Florida East Coast Industries, Inc. 53
1,553 Frozen Food Express Industries, Inc. 15
3,100 GATX Corp. 155
7,900 Greyhound Lines, Inc.* 31
1,800 Harper Group, Inc. 41
2,739 Heartland Express, Inc.* 65
3,600 Hunt (J.B.) Transportation Services, Inc. 50
4,100 Kirby Corp.* 81
400 Knight Transportation, Inc.* 9
1,500 M.S. Carriers, Inc.* 29
900 Midwest Express Holdings, Inc.* 30
3,100 Offshore Logistics, Inc.* 62
4,800 OMI Corp.* 37
4,400 Overseas Shipholding Group, Inc. 70
900 Oxford Resources Corp., Class A* 23
3,200 Pittston Burlington Group 63
1,600 Railtex, Inc.* 40
2,300 Roadway Express, Inc. 38
1,300 Skywest, Inc. 19
1,800 Swift Transportation Co., Inc.* 43
2,900 Trans World Airlines, Inc.* 22
3,450 USFreightways, Corp.* 89
5,600 ValuJet, Inc.* 50
3,350 Werner Enterprises, Inc. 54
1,300 Western Pacific Airlines, Inc.* 11
1,900 Xtra Corp. 80
3,500 Yellow Corp.* 53
--------
2,041
</TABLE>
<TABLE>
<CAPTION>
Shares Description Value
- ----------------------------------------------------
<C> <S> <C>
WATER SUPPLY--0.4%
1,200 Aquarion Co. $ 30
1,063 California Water Service Co. 42
2,600 Culligan Water Technologies, Inc.* 97
1,300 E'Town Corp. 39
700 Pennsylvania Enterprises, Inc.* 31
2,700 Philadelphia Suburban Corp. 50
1,360 Southern California Water Co. 32
3,852 United Water Resources, Inc. 59
1,200 Western Water Co.* 22
-------
402
WHOLESALE--1.4%
3,185 Arch Communications Group, Inc.* 35
1,900 Bearings, Inc. 52
1,400 Bindley Western Industries, Inc. 25
1,750 BMC West Corp.* 21
4,000 Caraustar Industries, Inc. 136
4,000 Casey's General Stores, Inc. 69
1,756 Castle (A. M.) & Co. 32
Cellular Communications of Puerto
1,900 Rico, Inc.* 40
1,866 Commercial Metals Co. 59
3,700 Compucom Systems, Inc.* 43
400 Culbro Corp.* 23
600 Daisytek International Corp.* 21
1,500 Discount Auto Parts, Inc.* 38
2,600 Egghead, Inc.* 16
2,838 Foxmeyer Corp.* 6
1,162 Getty Petroleum Corp. 19
5,800 Handleman Co. 48
900 Hughes Supply, Inc. 39
3,100 Immunex Corp.* 42
2,800 International Multifoods Corp. 44
1,800 JP Foodservice, Inc.* 44
3,200 Kaman Corp. 40
3,800 Kent Electronics Corp.* 99
1,200 Lawson Products, Inc. 26
2,700 Marshall Industries* 84
2,450 Microage, Inc.* 55
1,900 Nash-Finch Co. 36
</TABLE>
See accompanying notes to financial statements.
50
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Description Value
- -----------------------------------------------------------------
<C> <S> <C>
4,400 Owens & Minor, Inc. $ 46
1,800 Patterson Dental Co.* 47
1,500 Peak (The) Technologies Group* 17
1,700 Russ Berrie & Co., Inc. 30
4,075 Rykoff-Sexton, Inc. 59
2,400 Sciclone Pharmaceuticals, Inc.* 20
1,700 Smart & Final, Inc. 37
4,100 TBC Corp.* 30
2,300 United Stationers, Inc.* 47
3,100 VWR Corp.* 48
--------
1,573
- -----------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost $93,126) $105,786
- -----------------------------------------------------------------
WARRANTS--0.0%
247 Aquila Biopharmaceuticals, Inc., Exp.12/03/96* $ 0
Milicom American Satellite Corp.,
350 Exp. 06/30/99* 0
PerSeptive Biosystems, Inc.,
57 Exp. 08/08/97* 0
- -----------------------------------------------------------------
TOTAL WARRANTS
(Cost $0) $ 0
- -----------------------------------------------------------------
OTHER--0.0%
2,000 Escrow CFS Group, Inc.* $ 0
1,400 Escrow Millicom, Inc.* 0
900 Escrow Northeast Bancorp, Inc.* 0
2,790 Escrow Statesman Group, Inc.* 0
1,700 Escrow Takecare, Inc.* 0
- -----------------------------------------------------------------
TOTAL OTHER
(Cost $0) $ 0
- -----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal Amount Description Value
- --------------------------------------------------------------
<C> <S> <C>
U.S. GOVERNMENT OBLIGATIONS--0.2%
U.S. Treasury Bills #
$ 70 4.89% Due 01/09/97 $ 69
25 4.93% Due 01/09/97 25
80 4.96% Due 01/09/97 79
40 5.11% Due 01/09/97 39
- --------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Cost $212) $ 212
- --------------------------------------------------------------
SHORT-TERM INVESTMENT--6.1%
Berliner Handels und Frankfurter,
Grand Cayman
$6,868 5.688% Due 12/02/96 $ 6,868
- --------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT
(Cost $6,868) $ 6,868
- --------------------------------------------------------------
TOTAL INVESTMENTS--99.8%
(Cost $100,206) $112,866
- --------------------------------------------------------------
Assets, less other liabilities--0.2% 259
- --------------------------------------------------------------
NET ASSETS--100.0% $113,125
- --------------------------------------------------------------
- --------------------------------------------------------------
</TABLE>
OPEN FUTURES CONTRACTS:
<TABLE>
<CAPTION>
Number of Contract Contract Contract Unrealized
Type Contracts Amount Position Expiration Gain
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
RUSSELL 2000 40 $6,935 Long 12/20/96 $172
- ---------------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
#Securities pledged to cover margin requirements for open futures contracts.
See accompanying notes to financial statements.
51
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
November 30, 1996
(All amounts in thousands, except net asset value per unit)
<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 securities, at cost $44,220 $106,566 $541,910 $ 94,277 $135,257 $100,206
- --------------------------------------------------------------------------------------------------------------------------
Investments in securities, at value $51,448 $142,731 $736,364 $114,043 $139,480 $112,866
Cash 143 2 7 2 -- 4
Receivables:
Dividends and interest 293 200 1,557 65 143 109
Foreign tax reclaims -- -- -- -- 217 --
Fund units sold 15 -- 108 24 5 --
Investment securities sold 143 -- -- -- 4,297 158
Administrator 6 8 23 7 2 8
Deferred organization costs, net 20 15 15 27 33 14
Other assets 1 -- 2 -- 1 1
- --------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 52,069 142,956 738,076 114,168 144,178 113,160
- --------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Due to custodian -- -- -- -- 684 --
Payable for:
Fund units redeemed 52 -- 119 27 5 --
Investment securities purchased 596 382 27 150 5,075 --
Accrued expenses:
Advisory fees 21 63 58 73 89 18
Administration fees 4 11 58 9 11 9
Custodian fees 2 2 23 1 13 --
Transfer agent fees 1 1 11 1 1 1
Other liabilities 7 9 42 8 24 7
- --------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 683 468 338 269 5,902 35
- --------------------------------------------------------------------------------------------------------------------------
NET ASSETS $51,386 $142,488 $737,738 $113,899 $138,276 $113,125
- --------------------------------------------------------------------------------------------------------------------------
ANALYSIS OF NET ASSETS:
Paid-in capital $42,854 $90,550 $508,982 $82,474 $130,284 $86,770
Accumulated undistributed net investment income 49 1,355 468 111 720 1,159
Accumulated net realized gain on investments, options
and futures 1,255 14,418 32,457 11,548 3,034 12,364
Net unrealized appreciation on investments and futures 7,228 36,165 195,831 19,766 4,223 12,832
Net unrealized gain on translation of other assets and
liabilities denominated in foreign currencies -- -- -- -- 15 --
- --------------------------------------------------------------------------------------------------------------------------
NET ASSETS $51,386 $142,488 $737,738 $113,899 $138,276 $113,125
- --------------------------------------------------------------------------------------------------------------------------
Total units outstanding (no par value), unlimited units
authorized
Class A 3,690 9,892 40,255 7,337 12,998 8,081
Class C 490 -- 3,213 483 -- --
Class D 19 30 477 46 9 19
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption price per unit
Class A $12.24 $14.36 $16.79 $14.48 $10.63 $13.97
Class C $12.24 -- $16.79 $14.47 -- --
Class D $12.23 $14.26 $16.77 $14.37 $10.54 $13.96
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
52
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the Year Ended November 30, 1996
(All amounts in thousands)
<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 $ 397 $ 2,151 $ 12,910 $ 927 $ 2,149 $ 1,638
Interest 1,256 146 1,191 116 293 141
- --------------------------------------------------------------------------------------------
TOTAL INCOME 1,653 2,297 14,101 1,043 2,442(a) 1,779
- --------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 363 1,118 1,810 1,116 1,362 424
Administration fees 114 310 780 250 305 258
Custodian fees 21 27 154 22 170 67
Transfer agent fees 9 14 92 13 14 12
Registration fees 17 25 42 23 46 27
Professional fees 5 15 45 5 14 9
Trustee fees 2 4 18 2 6 5
Amortization of deferred
organization costs 10 13 13 17 15 13
Unitholder Servicing
Fees 7 1 54 4 -- --
Other 10 16 86 14 17 20
- --------------------------------------------------------------------------------------------
TOTAL EXPENSES 558 1,543 3,094 1,466 1,949 835
Less voluntary waivers
of:
Investment advisory
fees (136) (349) (1,207) (305) (272) (212)
Administration fees (69) (171) (176) (148) (169) (152)
Less: Expenses reimburs-
able by Administrator (66) (98) (307) (80) (55) (135)
- --------------------------------------------------------------------------------------------
Net expenses 287 925 1,404 933 1,453 336
- --------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,366 1,372 12,697 110 989 1,443
Net realized gains on:
Investment transactions 1,703 14,070 30,814 11,332 8,918 12,772
Futures transactions -- -- 5,198 140 -- 74
Foreign currency trans-
actions -- -- -- -- 24 --
Options 131 383 -- 76 -- --
Net change in unrealized
appreciation on
investments and futures 2,874 10,529 100,945 5,017 3,186 976
Net change in unrealized
losses on translation
of other assets and li-
abilities denominated
in
foreign currencies -- -- -- -- (22) --
- --------------------------------------------------------------------------------------------
NET INCREASE IN NET AS-
SETS RESULTING FROM
OPERATIONS $6,074 $26,354 $149,654 $16,675 $13,095 $15,265
- --------------------------------------------------------------------------------------------
</TABLE>
(a) Net of $119 in non-reclaimable foreign withholding taxes.
See accompanying notes to financial statements.
53
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the Years Ended November 30, 1996 and 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 $ 1,366 $ 1,217 $ 1,372 $ 1,779
Net realized gains (losses) on invest-
ments, options,
futures, and foreign currency transac-
tions 1,834 587 14,453 3,960
Net change in unrealized appreciation
(depreciation) on:
Investments and futures transactions 2,874 4,957 10,529 27,492
Forward foreign currency contracts -- -- -- --
Net change in unrealized gains (loss-
es) on translations of other assets
and liabilities denominated in for-
eign currencies -- (5) -- 364
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 6,074 6,756 26,354 33,595
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS A UNITHOLDERS
FROM:
Net investment income (1,231) (1,221) (1,750) (1,361)
Net realized gain on investment and
futures transactions -- -- (1,919) --
- --------------------------------------------------------------------------------
Total distributions to Class A
unitholders (1,231) (1,221) (3,669) (1,361)
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS C UNITHOLDERS:
Net investment income (132) -- -- --
Net realized gain on investment and
futures transactions -- -- -- --
- --------------------------------------------------------------------------------
Total distributions to Class C
unitholders (132) -- -- --
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO CLASS D UNITHOLDERS:
Net investment income (2) -- (2) (1)
Net realized gain on investment and
futures transactions -- -- (3) --
- --------------------------------------------------------------------------------
Total distributions to Class D
unitholders (2) -- (5) (1)
- --------------------------------------------------------------------------------
CLASS A UNIT TRANSACTIONS:
Proceeds from the sale of units 11,431 10,695 14,860 32,849
Reinvested distributions 1,076 1,179 3,424 1,264
Cost of units redeemed (10,419) (9,974) (45,585) (84,547)
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from Class A unit transac-
tions 2,088 1,900 (27,301) (50,434)
- --------------------------------------------------------------------------------
CLASS C UNIT TRANSACTIONS:
Proceeds from the sale of units 6,132 -- -- --
Reinvested distributions 132 -- -- --
Cost of units redeemed (797) -- -- --
- --------------------------------------------------------------------------------
Net increase in net assets resulting
from Class C unit transactions 5,467 -- -- --
- --------------------------------------------------------------------------------
CLASS D UNIT TRANSACTIONS:
Proceeds from the sale of units 232 -- 227 185
Reinvested distributions 2 -- 5 --
Cost of units redeemed (9) -- (75) (35)
- --------------------------------------------------------------------------------
Net increase in net assets resulting
from Class D unit transactions 225 -- 157 150
- --------------------------------------------------------------------------------
Net increase (decrease) 12,489 7,435 (4,464) (18,051)
Net assets--beginning of year 38,897 31,462 146,952 165,003
- --------------------------------------------------------------------------------
NET ASSETS--END OF YEAR $51,386 $38,897 $ 142,488 $ 146,952
- --------------------------------------------------------------------------------
ACCUMULATED UNDISTRIBUTED NET INVEST-
MENT INCOME $49 $48 $1,355 $1,735
- --------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
54
<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>
$ 12,697 $ 9,656 $ 110 $ 349 $ 989 $ 1,794 $ 1,443 $ 1,130
36,012 13,989 11,548 5,691 8,942 (4,915) 12,846 5,913
100,945 94,961 5,017 13,082 3,186 754 976 13,771
-- -- -- -- -- (62) -- --
-- -- -- (24) (22) 35 -- --
- ---------------------------------------------------------------------------------
149,654 118,606 16,675 19,098 13,095 (2,394) 15,265 20,814
- ---------------------------------------------------------------------------------
(11,982) (9,464) (317) (147) (2,919) (684) (1,002) (1,027)
(15,194) (5,459) (1,293) -- -- (510) (5,764) (3,919)
- ---------------------------------------------------------------------------------
(27,176) (14,923) (1,610) (147) (2,919) (1,194) (6,766) (4,946)
- ---------------------------------------------------------------------------------
(603) (93) -- -- -- -- -- --
(570) -- -- -- -- -- -- --
- ---------------------------------------------------------------------------------
(1,173) (93) -- -- -- -- -- --
- ---------------------------------------------------------------------------------
(60) (6) (2) -- (1) -- (1) --
(26) -- (8) -- -- -- (2) --
- ---------------------------------------------------------------------------------
(86) (6) (10) -- (1) -- (3) --
- ---------------------------------------------------------------------------------
338,095 216,653 32,348 27,342 28,193 63,136 28,946 17,266
24,880 13,649 1,413 100 2,297 962 6,297 4,615
(279,296) (135,290) (27,923) (18,063) (51,182) (45,016) (25,770) (19,967)
- ---------------------------------------------------------------------------------
83,679 95,012 5,838 9,379 (20,692) 19,082 9,473 1,914
- ---------------------------------------------------------------------------------
52,571 18,118 6,934 -- -- -- -- --
1,029 94 -- -- -- -- -- --
(25,869) (427) (598) -- -- -- -- --
- ---------------------------------------------------------------------------------
27,731 17,785 6,336 -- -- -- -- --
- ---------------------------------------------------------------------------------
6392 762 168 459 71 24 223 43
86 6 10 -- -- -- 3 --
(332) (6) (96) (2) (2) (6) (13) (2)
- ---------------------------------------------------------------------------------
6,146 762 82 457 69 18 213 41
- ---------------------------------------------------------------------------------
238,775 217,143 27,311 28,787 (10,448) 15,512 18,182 17,823
498,963 281,820 86,588 57,801 148,724 133,212 94,943 77,120
- ---------------------------------------------------------------------------------
$ 737,738 $ 498,963 $113,899 $ 86,588 $138,276 $148,724 $113,125 $94,943
- ---------------------------------------------------------------------------------
$468 $416 $111 $320 $720 $2,579 $1,159 $724
- ---------------------------------------------------------------------------------
</TABLE>
55
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
<TABLE>
<CAPTION>
Balanced Portfolio
---------------------------------------------------------
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, BEGIN-
NING OF PERIOD $ 11.05 $ 9.50 $ 10.22 $ 10.00 $ 11.12 $ 11.34
Income (Loss) from in-
vestment operations:
Net investment income 0.34 0.34 0.24 0.09 0.29 0.22
Net realized and
unrealized gain (loss)
on investments and op-
tions 1.19 1.55 (0.72) 0.22 1.12 0.96
- -----------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.53 1.89 (0.48) 0.31 1.41 1.18
- -----------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.34) (0.34) (0.22) (0.09) (0.29) (0.29)
Net realized gain on
investments and op-
tions -- -- (0.02) -- -- --
- -----------------------------------------------------------------------------------
Total distributions to
unitholders (0.34) (0.34) (0.24) (0.09) (0.29) (0.29)
- -----------------------------------------------------------------------------------
Net increase (decrease) 1.19 1.55 (0.72) 0.22 1.12 0.89
- -----------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 12.24 $ 11.05 $ 9.50 $ 10.22 $ 12.24 $ 12.23
- -----------------------------------------------------------------------------------
Total return (d) 14.07% 20.22% (4.76)% 3.12% 12.72% 10.55%
Ratio to average net as-
sets of: (e)
Expenses, net of waiv-
ers and reimbursements 0.61% 0.61% 0.61% 0.61% 0.85% 1.00%
Expenses, before waiv-
ers and reimbursements 1.20% 1.28% 1.50% 1.62% 1.44% 1.59%
Net investment income,
net of waivers and re-
imbursements 3.03% 3.36% 2.56% 2.20% 2.80% 2.78%
Net investment income,
before waivers and re-
imbursements 2.44% 2.69% 1.68% 1.19% 2.21% 2.19%
Portfolio turnover rate 104.76% 93.39% 75.69% 35.03% 104.76% 104.76%
Average commission rate
per share $0.0718 NA NA NA $0.0718 $0.0718
Net assets at end of pe-
riod (in thousands) $45,157 $38,897 $ 31,462 $15,928 $ 5,997 $ 232
- -----------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on July 1, 1993.
(b) Class C units were issued on December 29, 1995.
(c) Class D units were issued on February 20, 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.
NA--Disclosure not applicable to prior periods.
See accompanying notes to financial statements.
56
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
<TABLE>
<CAPTION>
Diversified Growth 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, BEGIN-
NING OF PERIOD $ 12.20 $ 9.88 $ 10.65 $ 10.00 $ 12.16 $ 9.88 $10.41
Income (Loss) from in-
vestment operations:
Net investment income 0.14 0.15 0.09 0.09 0.11 0.11 0.01
Net realized and
unrealized gain (loss)
on investments
and options 2.33 2.26 (0.83) 0.65 2.29 2.25 (0.54)
- ---------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 2.47 2.41 (0.74) 0.74 2.40 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 and op-
tions (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) 2.16 2.32 (0.77) 0.65 2.10 2.28 (0.53)
- ---------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 14.36 $ 12.20 $ 9.88 $ 10.65 $ 14.26 $12.16 $ 9.88
- ---------------------------------------------------------------------------------------------
Total return (c) 20.83% 24.55% (6.98)% 7.38% 20.39% 24.19% (5.14)%
Ratio to average net as-
sets of: (d)
Expenses, net of waiv-
ers and reimbursements 0.66% 0.69% 0.67% 0.71% 1.05% 1.08% 1.05%
Expenses, before waiv-
ers and reimbursements 1.10% 1.12% 1.08% 1.13% 1.49% 1.51% 1.46%
Net investment income,
net of waivers and
reimbursements 0.98% 1.16% 0.77% 1.04% 0.59% 0.73% 0.94%
Net investment income,
before waivers and
reimbursements 0.54% 0.73% 0.35% 0.62% 0.15% 0.30% 0.53%
Portfolio turnover rate 59.99% 81.65% 78.94% 140.88% 59.99% 81.65% 78.94%
Average commission rate
per share $ 0.0655 NA NA NA $0.0655 NA NA
Net assets at end of pe-
riod (in thousands) $142,055 $146,731 $164,963 $199,053 $ 433 $ 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.
NA--Disclosure not applicable to prior periods.
See accompanying notes to financial statements.
57
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
<TABLE>
<CAPTION>
Equity Index 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>
NET ASSET VALUE, BEGIN- $ 13.86 $ 10.60 $ 10.78 $ 10.00 $ 13.86 $ 13.43 $ 13.83 $10.60 $10.96
NING OF PERIOD
Income (Loss) from in-
vestment
operations:
Net investment income 0.31 0.30 0.27 0.22 0.28 0.05 0.27 0.25 0.02
Net realized and
unrealized gain (loss)
on investments and
futures 3.36 3.47 (0.18) 0.78 3.35 0.45 3.36 3.47 (0.31)
- ---------------------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 3.67 3.77 0.09 1.00 3.63 0.50 3.63 3.72 (0.29)
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.31) (0.30) (0.27) (0.22) (0.27) (0.07) (0.26) (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 (0.74) (0.51) (0.27) (0.22) (0.70) (0.07) (0.69) (0.49) (0.07)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) 2.93 3.26 (0.18) 0.78 2.93 0.43 2.94 3.23 (0.36)
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 16.79 $ 13.86 $ 10.60 $ 10.78 $ 16.79 $ 13.86 $ 16.77 $13.83 $10.60
- ---------------------------------------------------------------------------------------------------------------
Total return (d) 27.53% 36.60% 0.87% 10.08% 27.24% 3.94% 27.20% 36.20% (2.68)%
Ratio to average net
assets of: (e)
Expenses, net of
waivers and
reimbursements 0.22% 0.22% 0.23% 0.21% 0.46% 0.46% 0.61% 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
reimbursements 2.12% 2.54% 2.62% 2.62% 1.89% 2.29% 1.78% 2.07% 2.67%
Net investment income,
before waivers and
reimbursements 1.84% 2.22% 2.25% 2.17% 1.61% 1.97% 1.50% 1.75% 2.31%
Portfolio turnover rate 18.02% 15.27% 71.98% 2.06% 18.02% 15.27% 18.02% 15.27% 71.98%
Average commission rate
per share $ 0.0228 NA NA NA $0.0228 NA $0.0228 NA NA
Net assets at end of
period (in thousands) $675,804 $479,763 $281,817 $219,282 $53,929 $18,390 $ 8,005 $ 810 $ 3
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on January 11, 1993.
(b) Class C units were issued on September 28, 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.
NA--Disclosure not applicable to prior periods.
See accompanying notes to financial statements.
58
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
<TABLE>
<CAPTION>
Focused Growth Portfolio
-----------------------------------------------------------------------
Class A Class C Class D
--------------------------------------- -------- ------------------
1996 1995 1994 1993 (a) 1996 (b) 1996 1995 (c)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD: $12.53 $9.79 $10.43 $10.00 $ 13.46 $ 12.48 $9.55
Income (Loss) from in-
vestment operations:
Net investment income
(loss) 0.02 0.05 0.02 0.01 (0.01) (0.03) 0.02
Net realized and
unrealized gain (loss)
on investments,
futures and options 2.17 2.71 (0.66) 0.43 1.02 2.15 2.93
- --------------------------------------------------------------------------------------------------
Total income (loss) from
investment operations 2.19 2.76 (0.64) 0.44 1.01 2.12 2.95
- --------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.05) (0.02) -- (0.01) -- (0.04) (0.02)
Net realized gain on
investments, futures
and options (0.19) -- -- -- -- (0.19) --
- --------------------------------------------------------------------------------------------------
Total distributions to
unitholders (0.24) (0.02) -- (0.01) -- (0.23) (0.02)
- --------------------------------------------------------------------------------------------------
Net increase (decrease) 1.95 2.74 (0.64) 0.43 1.01 1.89 2.93
- --------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $14.48 $12.53 $9.79 $10.43 $14.47 $14.37 $12.48
- --------------------------------------------------------------------------------------------------
Total return (d) 17.82% 28.38% (6.15)% 4.33% 7.51% 17.42% 30.97%
Ratio to average net as-
sets of: (e)
Expenses, net of waiv-
ers and reimbursements 0.91% 0.91% 0.91% 0.91% 1.15% 1.30% 1.30%
Expenses, before waiv-
ers and reimbursements 1.43% 1.47% 1.55% 1.88% 1.67% 1.82% 1.86%
Net investment income
(loss), net of waivers
and reimbursements 0.12% 0.46% 0.24% 0.14% (0.12)% (0.28)% (0.11)%
Net investment loss,
before waivers and
reimbursements (0.40)% (0.10)% (0.39)% (0.83)% (0.64)% (0.80)% (0.67)%
Portfolio turnover rate 116.78% 85.93% 74.28% 27.48% 116.78% 116.78% 85.93%
Average commission rate
per share $ 0.0730 NA NA NA $0.0730 $0.0730 NA
Net assets at end of pe-
riod (in thousands) $106,250 $86,099 $57,801 $32,099 $6,993 $656 $489
- --------------------------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on July 1, 1993.
(b) Class C units were issued on June 14, 1996.
(c) Class D units were issued on December 8, 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.
NA--Disclosure not applicable to prior periods.
See accompanying notes to financial statements.
59
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
<TABLE>
<CAPTION>
International Growth Portfolio
--------------------------------------------------------
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 (loss) from in-
vestment operations:
Net investment income 0.10 0.12 0.05 0.01 0.19 --
Net realized and
unrealized gain (loss)
on investments
and foreign currency
transactions 0.87 (0.36) 0.16 0.92 (0.48) (0.26)
- -----------------------------------------------------------------------------------
Total income (loss) from
investment operations 0.97 (0.24) 0.21 0.93 (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) 0.75 (0.33) 0.21 0.71 (0.38) (0.26)
- -----------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 10.63 $ 9.88 $ 10.21 $ 10.54 $ 9.83 $10.21
- -----------------------------------------------------------------------------------
Total return (c) 9.96% (2.32)% 2.11% 9.59% (2.78)% (2.56)%
Ratio to average net as-
sets of: (d)
Expenses, net of waiv-
ers and reimbursements 1.06% 1.06% 1.04% 1.45% 1.45% 1.35%
Expenses, before waiv-
ers and reimbursements 1.43% 1.38% 1.47% 1.82% 1.77% 1.78%
Net investment income,
net of waivers and re-
imbursements 0.73% 1.22% 0.76% 0.44% 2.01% --
Net investment income
(loss), before waivers
and reimbursements 0.36% 0.90% 0.33% 0.07% 1.69% (0.43)%
Portfolio turnover rate 202.47% 215.31% 77.79% 202.47% 215.31% 77.79%
Average commission rate
per share $ 0.0292 NA NA $0.0292 NA NA
Net assets at end of pe-
riod (in thousands) $138,182 $148,704 $133,212 $ 94 $ 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.
NA--Disclosure not applicable to prior periods.
See accompanying notes to financial statements.
60
<PAGE>
The Benchmark Funds
Equity Portfolios
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
For the Years Ended November 30,
<TABLE>
<CAPTION>
Small Company Index Portfolio
--------------------------------------------------------
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 $ 10.51
Income (Loss) from in-
vestment operations:
Net investment income 0.19 0.16 0.14 0.11 0.13 0.18
Net realized and
unrealized gain (loss)
on investments and
futures 1.75 2.67 (0.30) 1.29 1.83 2.96
- ----------------------------------------------------------------------------------
Total income (loss) from
investment operations 1.94 2.83 (0.16) 1.40 1.96 3.14
- ----------------------------------------------------------------------------------
DISTRIBUTIONS TO
UNITHOLDERS FROM:
Net investment income (0.14) (0.15) (0.02) (0.11) (0.14) (0.14)
Net realized gain on
investments 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) 0.99 2.12 (0.43) 1.29 1.01 2.44
- ----------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 13.97 $ 12.98 $ 10.86 $ 11.29 $ 13.96 $ 12.95
- ----------------------------------------------------------------------------------
Total return (c) 15.96% 27.76% (1.54)% 14.09% 16.20% 31.62%
Ratio to average net as-
sets of: (d)
Expenses, net of waiv-
ers and reimbursements 0.32% 0.32% 0.33% 0.31% 0.71% 0.71%
Expenses, before waiv-
ers and reimbursements 0.79% 0.81% 0.86% 1.02% 1.18% 1.20%
Net investment income,
net of waivers and re-
imbursements 1.36% 1.31% 1.27% 1.25% 1.02% 0.90%
Net investment income,
before waivers and re-
imbursements 0.89% 0.82% 0.74% 0.54% 0.55% 0.41%
Portfolio turnover rate 46.26% 38.46% 98.43% 26.31% 46.26% 38.46%
Average commission rate
per share $ 0.0257 NA NA NA $0.0257 NA
Net assets at end of pe-
riod (in thousands) $112,856 $94,899 $77,120 $54,763 $ 269 $ 44
- ----------------------------------------------------------------------------------
</TABLE>
(a) Commenced investment operations on January 11, 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.
NA--Disclosure not applicable to prior periods.
See accompanying notes to financial statements.
61
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
November 30, 1996
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 manage-
ment 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. Pre-
sented herein are the financial statements of the equity portfolios ("the
Portfolios").
Each of the equity portfolios may issue 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 November 30, 1996, Class A, Class C and
Class D units are outstanding for certain portfolios.
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 re-
quires 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. Ac-
tual results could differ from those estimates.
(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 securi-
ties are not traded on a valuation date, at the last quoted bid price. Securi-
ties 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 set-
tlement price as established by the exchange on which they are traded. Index
futures are marked to market on a daily basis. Any securities, including re-
stricted securities, for which current quotations are not readily available
are valued at fair value as determined in good faith by Northern under the su-
pervision of the Board of Trustees ("Board"). Short-term investments are val-
ued at amortized cost which Northern has determined, pursuant to Board autho-
rization, 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.
Cost of purchases and proceeds from sales of investments and dividend income
are translated into U.S. dollars using the spot market rate of exchange pre-
vailing 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 invest-
ments.
(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 re-
corded on the accrual basis and includes amortization of discounts and premi-
ums. Dividends from foreign securities are recorded on the ex-date, or as soon
as the information is available.
62
<PAGE>
- -------------------------------------------------------------------------------
(e) Forward Foreign Currency Exchange Contracts
Certain portfolios are authorized to enter into forward foreign currency ex-
change 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 the Portfolio's foreign currency hedging transac-
tions is to reduce the risk that the U.S. dollar value of the Portfolio's for-
eign 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 port-
folio 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 inabil-
ity of counterparties to meet the terms of their contracts and from unantici-
pated movements in the value of a foreign currency relative to the U.S. dol-
lar.
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 re-
lated and offsetting transactions are considered.
(f) Federal Taxes
It is each portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
each year substantially all of its taxable income and capital gains to its
unitholders. Therefore, no provision is made for federal taxes.
At November 30, 1996, the Trust's most recent tax year end, there were no
capital loss carryforwards for U.S. federal tax purposes.
(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>
- -------------------------------
<S> <C>
Balanced Quarterly
Diversified Growth Annually
Equity Index Quarterly
Focused Growth Annually
International Growth Annually
Small Company Index Annually
- -------------------------------
</TABLE>
Each portfolio's net realized capital gains are distributed at least annual-
ly. Income dividends and capital gain distributions are determined in accor-
dance with income tax regulations. Such amounts may differ from income and
capital gains recorded in accordance with generally accepted accounting prin-
ciples.
Distributions of short-term and long-term capital gains were declared and
paid December 24, 1996 to unitholders of record on December 23, 1996, as fol-
lows:
<TABLE>
<CAPTION>
Short-Term Long-Term
Capital Capital
Gain Gain Total
- --------------------------------------------------
<S> <C> <C> <C>
Balanced -- $0.3085 $0.3085
Diversified Growth $0.5764 0.8847 1.4611
Equity Index 0.0188 0.8107 0.8295
Focused Growth 0.3562 1.3199 1.6761
International Growth 0.3956 0.0519 0.4475
Small Company Index 0.4540 1.1386 1.5926
- --------------------------------------------------
</TABLE>
63
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
November 30, 1996
(j) Reclassifications
The International Growth Portfolio reclassified approximately $48,000 from ac-
cumulated net realized gain on investment transactions, and $24,000 from net
realized gain on foreign currency transactions to accumulated undistributed
net investment income. The Small Company Index Portfolio reclassified approxi-
mately $5,000 from undistributed net investment income to accumulated net re-
alized gain on investment transactions. These reclassifications had no impact
on the net asset value of the Portfolios and are designed to present those
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 fees as
shown on the accompanying Statements of Operations. The annual advisory fees
and waiver rates expressed as a percentage of average daily net assets for the
year ended November 30, 1996, are as follows:
<TABLE>
<CAPTION>
Net
Advisory Less: Advisory
Fee Waiver Fee
- ----------------------------------------------
<S> <C> <C> <C>
Balanced .80% .30% .50%
Diversified Growth .80 .25 .55
Equity Index .30 .20 .10
Focused Growth 1.10 .30 .80
International Growth 1.00 .20 .80
Small Company Index .40 .20 .20
- ----------------------------------------------
</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 assump-
tion by Northern of the expenses related thereto, Northern receives compensa-
tion 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 be-
low:
<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 admin-
istration fees to .10% of average daily net assets for each portfolio. In ad-
dition, Goldman Sachs agreed to waive a portion of its administrative fees
should overall administration fees earned during the preceding year exceed
certain specified levels. No waiver was required under this agreement during
the year ended November 30, 1996. Furthermore, Goldman Sachs has agreed to re-
imburse 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 the average daily net assets for the In-
ternational Growth Portfolio.
The administration fees waived and expenses reimbursed during the year ended
November 30, 1996 are shown on the accompanying Statements of Operations.
Goldman Sachs receives no compensation under the distribution agreement.
64
<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 serv-
ices for their customers or other investors who beneficially own Class B, C
and D units. As compensation under the Unitholder Servicing Plan, the institu-
tion 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.
6. FUTURES CONTRACTS
Each portfolio may invest in long equity index or currency futures 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 instru-
ments. 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 ba-
sis, between the portfolio and the broker. The Statements of Operations re-
flects gains and losses as realized for closed futures contracts and as
unrealized for open futures contracts.
At November 30, 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 November 30, 1996 was approximately $1,863,000 and $212,000 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 securi-
ties that are traded on U.S. and foreign securities exchanges and over-the-
counter markets. These transactions are for hedging (or cross-hedging ) pur-
poses or for the purposes 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 se-
curities acquired through the exercise of call options is increased by the
premiums paid. The proceeds from securities sold through the exercise of put
options are decreased by the premiums paid.
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
selling or buying a security or currency at a price different from the current
market value. Transactions in written call options for the year ended November
30, 1996 for the Balanced, Diversified Growth and Focused Growth Portfolios
were as follows:
<TABLE>
<CAPTION>
Diversified Focused
Premiums Balanced Growth Growth
- ----------------------------------------------------------------------
(In thousands)
<S> <C> <C> <C>
Options outstanding, beginning of period $ -- $ -- $ --
Options written 169 383 1,203
Options terminated in closing purchase
transactions (38) -- (1,127)
Options expired (131) (383) (76)
- ----------------------------------------------------------------------
Options outstanding, end of period $ -- $ -- $ --
- ----------------------------------------------------------------------
</TABLE>
The Portfolios did not write put options during the year ended November 30,
1996.
65
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS--CONTINUED
November 30, 1996
8. INVESTMENT TRANSACTIONS
Investment transactions for the year ended November 30, 1996 (excluding short-
term investments) were as follows:
<TABLE>
<CAPTION>
Proceeds
from sales Proceeds
and from sales
Purchases maturities and
of U.S. Purchases of U.S. maturities
Government of other Government of other
Obligations securities Obligations securities
- -------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Balanced $25,380 $ 26,459 $20,152 $ 24,199
Diversified Growth -- 82,570 -- 112,306
Equity Index -- 211,463 -- 104,654
Focused Growth -- 126,812 -- 116,129
International Growth -- 264,292 -- 291,224
Small Company Index -- 47,979 -- 48,418
- -------------------------------------------------------------------
</TABLE>
As of November 30, 1996, the composition of unrealized appreciation (depreci-
ation) of investment securities (including the effects of foreign currency
translation) based on the aggregate cost of investments for federal income tax
purposes were as follows:
<TABLE>
<CAPTION>
Cost for
Federal
Income
Net Tax
Appreciation Depreciation Appreciation Purposes
- ---------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Balanced $ 7,396 $ 196 $ 7,200 $ 44,248
Diversified Growth 38,097 1,944 36,153 106,578
Equity Index 203,920 10,500 193,420 542,944
Focused Growth 22,474 2,733 19,741 94,302
International Growth 8,829 6,914 1,915 137,565
Small Company Index 23,090 10,430 12,660 100,206
- ---------------------------------------------------------------------
</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 year ended November 30, 1996 was approximately
$2,000, $53,000, $3,000, $9,000 and $7,000 for the Diversified Growth, Equity
Index, Focused Growth, International Growth, and Small Company Index Portfo-
lios, respectively. These amounts are included in other expenses on the State-
ments of Operations.
As of November 30, 1996, there were no outstanding borrowings.
10. UNIT TRANSACTIONS
Transactions in Class A units for the year ended November 30, 1996 were as
follows:
<TABLE>
<CAPTION>
Net
Reinvested increase
Sales distributions Redemptions (decrease)
- -----------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Balanced 989 93 911 171
Diversified Growth 1,187 290 3,615 (2,138)
Equity Index 22,992 1,743 19,101 5,634
Focused Growth 2,500 117 2,151 466
International Growth 2,737 230 5,018 (2,051)
Small Company Index 2,188 516 1,933 771
- -----------------------------------------------------------------
</TABLE>
66
<PAGE>
- --------------------------------------------------------------------------------
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 year ended November 30, 1996 were as
follows:
<TABLE>
<CAPTION>
Reinvested Net
Sales distributions Redemptions increase
- --------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Balanced 548 11 69 490
Equity Index 3,499 70 1,685 1,884
Focused Growth 529 0 46 483
- --------------------------------------------------------
</TABLE>
Transactions in the Class C units for the year ended November 30, 1995 were as
follows:
<TABLE>
<CAPTION>
Reinvested Net
Sales distributions Redemptions increase
- ------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Equity Index 1,353 7 31 1,239
</TABLE>
- --------------------------------------------------------------------------------
Transactions in Class D units for the year ended November 30, 1996 were as
follows:
<TABLE>
<CAPTION>
Reinvested Net
Sales distributions Redemptions increase
- --------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
Balanced 20 -- 1 19
Diversified
Growth 17 1 6 12
Equity Index 436 6 24 418
Focused Growth 13 1 7 7
International Growth 7 -- -- 7
Small Company Index 17 -- 1 16
</TABLE>
- --------------------------------------------------------------------------------
Transactions in Class D units for the year 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>
- --------------------------------------------------------------------------------
67
<PAGE>
The Benchmark Funds
Equity Portfolios
- -------------------------------------------------------------------------------
REPORT OF INDEPENDENT AUDITORS
To the Unitholders and Trustees of
The Benchmark Funds
Equity Portfolios
We have audited the accompanying statements of assets and liabilities,
including the statements of investments, of the Balanced, Diversified Growth,
Equity Index, Focused Growth, International Growth and Small Company Index
Portfolios, comprising the Equity Portfolios of The Benchmark Funds, as of
November 30, 1996, and the related statements of operations for the year then
ended and changes in net assets for each of the two years in the period then
ended and financial highlights for the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Portfolios' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of the
investments owned at November 30, 1996 by physical examination of the
securities held by the custodian and by correspondence with outside
depositories and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Balanced, Diversified Growth, Equity Index, Focused Growth, International
Growth and Small Company Index Portfolio, comprising the Equity Portfolios of
The Benchmark Funds, at November 30, 1996, the results of their operations for
the year then ended and the changes in their net assets for each of the two
years in the period then ended and financial highlights for the periods
indicated therein, in conformity with generally accepted accounting
principles.
Ernst & Young LLP
Chicago, Illinois
January 21, 1997
68
<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
John M. Perlowski, Assistant Treasurer
Michael J. Richman, Secretary
Howard B. Surloff, Assistant Secretary
Independent Auditors
Ernst & Young LLP
233 S. Wacker Drive
Chicago, IL 60606
Legal Counsel
Drinker Biddle & Reath
1345 Chestnut Street
Philadelphia, PA 19107
This 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
Annual Report
November 30, 1996
